Vacancy chains and equilibration in senior-level labor markets
Article Abstract:
Senior level labor markets can be shown as two-sided matching markets that are made unstable by retirements and can return to stability by a mechanism of offers and deferred acceptances. Result differs from the existing treatment of two-sided matching models, since the model is generalized to include matching beginning from arbitrary firm-quasi-stable matchings. Decentralized game has more schemes than the centralized game, thus there are lesser dominant strategies and lesser dominated strategies and possibly more equilibria in undominated schemes than in the centralized game.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1997
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Private information and the design of securities
Article Abstract:
A study examined if a hypothetical statement considered by a Grossman and Stiglitz-like model is acceptable. The argument claims that entrepreneurs who decide on issuing new securities will have to compromise between speculative gains and insurance motives. Speculative gains result from privileged information while insurance motives are related to stock market insurance. The trade-off is explicitly discussed in terms of its relationship with aggregate risk, risk tolerance and information precision.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1995
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Diversification and equilibrium in securities markets
Article Abstract:
An analysis of the effects of diversification on company portfolios in the stock market reveals that perfectly diversified investments in the stock market can enable a company to reduce risks to zero. Diversification of investments enable a company to share investment risks and every diversification reduces the exposure of a company's investments. Increasing diversification reduces risk up to a point where risk may be close to or equal to zero.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1997
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