Randomly available outside options in bargaining

We consider an extension of the standard Rubinstein model where both players are randomly allowed to leave the negotiation after a rejection, in which case they obtain a payoff of known value. We show that, when the value of the outside opportunities is of intermediate size, there exist a continuum of subgame-perfect equilibrium outcomes, including some with delayed agreements. Considering outside opportunities of significant value, we prove that efficient delays arise caused by the bargainers' aspirations, in waiting for their outside, option rather than by threats. Moreover, if taking the outside option decreases the probability that the opponent receives an outside option in the future, then it is possible that exactly two equilibrium payoffs coexist. In this latter case, inefficiencies may be created by agreeing too early.     

Real-time price discovery in global stock, bond and foreign exchange markets

Using a unique high-frequency futures dataset, we characterize the response of U.S., German and British stock, bond and foreign exchange markets to real-time U.S. macroeconomic news. We find that news produces conditional mean jumps; hence high-frequency stock, bond and exchange rate dynamics are linked to fundamentals. Equity markets, moreover, react differently to news depending on the stage of the business cycle, which explains the low correlation between stock and bond returns when averaged over the cycle. Hence our results qualify earlier work suggesting that bond markets react most strongly to macroeconomic news; in particular, when conditioning on the state of the economy, the equity and foreign exchange markets appear equally responsive. Finally, we also document important contemporaneous links across all markets and countries, even after controlling for the effects of macroeconomic news.     

What drives bank securitisation? The Spanish experience

This paper analyses the reasons why Spanish banks securitised in the period 2000–2007 on such a large scale that Spain has become the European country with the second-largest issuance volume after the UK.     

Advertising self-regulation (ASR) in Spain. An analysis of complaints and resolutions

The present work analyses the total of complaints received by the advertising self-regulation (ASR) system in Spain from 2010 to 2015. Based on their processing, a matrix of variables has been developed to study the existence or absence of significant relationships between the type and nature of resolutions and the type of offending advertisers. The variables analysed are: source of complaint, type of offending advertiser, infraction of the law, breach of the code of conduct, complaint resolution, nature of the resolution, source of appeal and appeal resolution. Results show that multinationals are the companies that most often infringe the law and codes of conduct, and also that in many cases the complaints against them are dismissed. The system mainly rejects complaints that are binding, that is, those against members of ASR. This work identifies severe flaws in the self-regulation process and questions its independence to conclude that Spanish ASR tends to protect advertisers rather than defend the rights of consumers. The implications of this work point towards an urgent need to implement structural changes to Spanish ASR, starting with the funding system and the selection of the Advertising Jury, as well as mechanisms that ensure the fulfilment of resolutions.