In this article we study the effect of uncertainty on an entrepreneur who must choose the capacity of his business before knowing the demand for his product. The unit profit of operation is known with certainty but there is no…

We instillate rational cognition and learning in seemingly riskless choices and judgments. Preferences and possibilities are given in a stochastic sense and based on revisable expectations. the theory predicts experimental preference reversals and passes a sharp econometric test of the…

The paper investigates the pricing of derivative securities with calendar-time maturities.

This paper offers an explanation of rationally contracts where incompeteness refers to unforeseen contingencies. Agents enter a relationship with two-sided moral hazard in which a commitment to discard parts of the joint resources may be ex ante efficient.

In the presence of moral hazard, received agency theory predicts the Marshallian inefficiency of agricultural tenancy contracts, meaning that inputs per hectare on sharecropped land will differ from that on owned land. in this paper, we test for the presence…

Los moluscos son muy apreciados como alimento para el hombre y en Venezuela se aprovechan comercialmente almejas (Asaphis deflorata), ostras (Pinctada imbricata y Crassostrea rhizophorae), pepitonas (Arca zebra), pulpos (Optopus vulgaris), calamares (Loligo plei), vieiras (Amusium papyraceum), mejillones (Perna perna…

Despite earlier evidence to the contrary, recent inquiries appear to reach a consensus that the poor
pay more for food. However, these studies utilize samples drawn on the basis of prior
knowledge of unfair pricing strategies, proximity of volunteer surveyors,…