This paper extends Hotelling's model of price competition with quadratic transportation costs from a line to graphs. I propose an algorithm to calculate firm-level demand for any given graph, conditional on prices and firm locations. One feature of graph models of price competition is that...

This discussion provides several explanations for the evidence presented in Balachandran and Mohanram (2010) that are consistent with efficient contracting. I also show that - contrary to the suggestion of the title - CEOs do not benefit from value destroying growth in earnings. Finally, I argue...

This paper is interested to show the limitations that the 2-Dimensional and 3-Dimensional graphs are showing when we try to visualize the behavior of large number of variables, equations and functions in the same graphical space. Therefore, we suggest the application of multi-dimensional graphs...

We find that student performance on questions posed in the standard heterogeneous combination of algebraic direct demand and graphic inverse demand is significantly worse than their performance on questions posed in homogeneous combinations. Since this performance deficit persists with advanced...

Este es material de curso para un curso introductorio a la Probabilidad y la Estadistica en Ingenieria y Administracion. Es parte de algunas notas de clases de mis cursos en Español sobre esos temas. Cuando se toman decisiones y existen eventos futuros y desconocidos la unica razon por la cual...

Some economy theories assume that human is rational and when they make a decision in uncertainty conditions, they will prefer the best choice. Many evidences have been given against these theories. Especially psychology professor Daniel Kahneman’s studies provide evidence that human behave...

Bank profits are high in Sub-Saharan Africa (SSA) compared to other regions. This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. We find that apart from credit risk, higher returns on assets are associated with larger bank size, activity...

The recent housing bust has reignited interest in psychological theories of speculative excess (Shiller, 2007). I investigate this issue by identifying a segment of the U.S. population-evangelical protestants-that may be less prone to speculative motives, and uncover a significant negative...

This paper constructs new indicators of liquidity for equity, bond and money markets in major advanced and emerging market countries, documents their evolution and comovements, and assesses the extent to which such measures are determinants of selected spreads and proxy measures of countries'...