A Note on Simple Strategic Bargaining for Models of Money or Credit

Many papers on liquidity have bilateral trade with buyers constrained by their money holdings or debt limits. Axiomatic bargaining, typically Nash, determines the terms of trade. However, there are reasons to prefer strategic bargaining. I analyze a bargaining game that is useful in models of liquidity. Advantages include (i) it has simple microfoundations, both in and out of steady state; (ii) it is more tractable than Nash, but the outcomes share interesting features; (iii) the benchmark version is consistent with axiomatic approaches in the literature, while another version is not, but can still be used; and (iv) it is arguably realistic.     

关于Riemann可积性的注记

本文用测度论讨论了一元非连续函数的可积性,给出了一元非连续函数Riemann可积的充分条件.     

A Note on Bonus Scales

We revisit the optimal bonus scales introduced by Norberg (Norberg, R., 1976, Scandinavian Actuarial Journal (2): 92‐107), Borgan, Hoem, and Norberg (Borgan, O., J. Hoem, and R. Norberg, 1981, Scandinavian Actuarial Journal (2): 165‐178), and Gilde and Sundt (Gilde, V., and B. Sundt, 1989, Scandinavian Actuarial Journal (1): 13‐22) and underline some potential problems of the linear scales. As a possible solution we propose the use of geometric scales.     

A Note on Interaction between Financial Markets

This paper investigates the interaction between thestock market and the stock option market. When thepredictions of the future stock price distributionsare different between markets,there is a chance that the option pricing method ofBlack and Scholes with its application to anarbitrage trading strategy may lead to substantialmarket turmoil. We will also investigatethe conditions of market stability.     

A Note on Computation of Implied Volatility

This is a note on computation of the implied volatility in theBlack–Scholes formula to evaluate an accuracy of the computation.     

A Note on Deductible Insurance and Production

This paper examines the optimal production decision of a firm facing revenue risk. We show that the purchase of actuarially fair deductible insurance unambiguously induces the firm to produce more if the firm is not only risk averse but also prudent. If the firm's perferences satisfy constant absolute risk aversion, buying actuarially unfair deductible insurance unambiguously enhances production should the positive loading factor be sufficiently small. When there are moral hazard problems in that the firm's output cannot be contracted upon, we show that the purchase of actuarially fair deductible insurance unambiguously induces the firm to produce more if the firm's utility function is quadratic.     

A Note on Compound Generalized Distributions: A Comment on the Article by B. Kling and M. Goovaerts

Abstract

In this paper, the recursion for Generalized Power Series Distributions (GPSD) recently developed by Kling & Goovaerts (1993) is reviewed. Some errors are discovered in their results. Corrected and slightly more general results are proposed here.     

致读者——关于期刊有关情况的说明

关于有读者反映不能如期收到期刊的问题．近期我们作了期刊有关情况的汇总和调研．特向广大读者汇报如下：     

Derivation of the Capital Asset Pricing Model without Normality or Quadratic Preference: A Note

Derivation of the capital asset pricing model requires various assumptions including normality or quadratic preference. The objective of this note is to show that the normality or quadratic preference assumption can be replaced by the fair game condition that assets' residual returns have zero mean conditional upon the return of the market portfolio.     

A Research Note on Bargain Purchase Gains on Acquisition

This research note explores the incidence, amounts, disclosure and potential sources of bargain purchase gains reported by an Australian sample of firms during 2013–15. It finds that 7.58% of the sample acquirers reported bargain purchase gains during this period. The median gain as a percentage of consideration transferred was 18.90%. In contravention of IFRS 3 Business Combinations, not all acquirers with material bargain purchase gains disclosed in notes why the gain arose. Finally, the note reports preliminary evidence suggesting uncertainty about the sources of the gain.