We partition takeover bids into two groups: those that are deferred from the date of a toehold purchase, and those that are coincident with a toehold purchase. Coincident bids alone have approximately zero abnormal returns at bid/toehold, but deferred bids have negative abnormals both in the pre-bid interval (representing bid anticipation) and at announcement. Negative returns are puzzling beca...

Are there option values for transport services? A few studies have tried to answer this question through various stated preference methods, but we do not know much about its magnitude in different contexts. In paper, summarize the theory on value, present previous empirical work concerning transport, and discuss links accessibility. Accessibility can be seen as end product of system, argument p...

A quantitative framework is developed to bring forward the insurance motive for holding international reserves. The insurance value of reserves is quantified as the market price of an equivalent option that provides the same insurance coverage as the reserves. This quantitative framework is applied to calculating the cost of a regional insurance arrangement (e.g. an Asian Monetary Fund) and to ...

In a widely cited series of papers, Hassett and Metcalf argue that the slow diffusion of energy saving technology may be due to a high option value to waiting. While the authors clarify that this is relevant for yes/no decisions (such as whether to add insulation to a home), this argument has been widely cited even in investment decisions that involve a choice over multiple appliances or vehicl...

The network benefits of new technologies are often modeled as depending on the total number of users in a network. However, it is common in networks for only small subsets of network users to interact. Therefore for network benefits to depend on the total network size requires network benefits which are derived outside of actual interactions. One possibility is that network users place an optio...

When a product’s price fluctuates at a store, how should rational, cost-minimizing shoppers shop for it? Specifically, how frequently should they visit the store, and how much of the product should they buy when they get there? Would this rational shopping behavior differ across Every Day Low Price (EDLP) and Promotional Pricing (HILO) stores? If shoppers are rational, which retail price format...