Purpose Our result of this paper aims to indicate that the beta pricing formula could be applied in a long-term model setting as well. Design/methodology/approach In this paper, we show that the capital asset pricing model can be derived from a three-period general equilibrium model. Findings We...

We study the criminal networks that will emerge in the long run when criminals are neither myopic nor completely farsighted but have some limited degree of farsightedness. We adopt the horizon-K farsighted set to answer this question. We find that in criminal networks with n criminals, the set...