This paper provides a simple proof of the result that if a production function is homogeneous, displays non-increasing returns to scale, is increasing and quasiconcave, then it is concave. If the function is strictly quasiconcave or one-to-one, homogeneous, displays decreasing returns to scale...

We propose a linear bi-objective optimization approach to the problem of finding a portfolio that maximizes average excess return with respect to a benchmark index while minimizing underperformance over a learning period. We establish some theoretical results linking classical No Arbitrage...

In the early 1990s, Mongolia initiated a transition from a command to a market economy; accordingly, significant changes took place in the livestock sector, including decollectivization, privatization, and greater exposure to international trade. Taking into account these changes, this study...

We show that Stiglitz's (1974) principal-agency theory of share tenancy does not imply, as alleged, that the optimal tenant share is less than one for risk-averse tenants nor that the share decreases monotonically with tenant risk aversion. Tenants may self insure by working harder increasingly...

This paper examines a pre-firm environment where agents who are potentially to become employees of a firm exert influence over one another. I argue that the manner in which they do so and the level of information an entrepreneur has on the agents' influence affects what is the most and least...

The present paper is concerned with addressing the issue of firms competing in both prices and quantities (capacity levels) within a simple differentiated duopoly where products are asymmetrically differentiated by quality location. A three-stage competitive model is investigated such that firms...

Economists have offered a number of explanations on the introduction of monetary incentives within firms. These range from the classical agency model to the impact exerted by factors such as monitoring technology, influence activity and organizational structure. Numerous empirical contributions...

We show that Stiglitz's (1974) principal-agency theory of share tenancy does not imply, as alleged, that the optimal tenant share is less than one for risk-averse tenants nor that the share decreases monotonically with tenant risk aversion. Tenants may self insure by working harder increasingly...

We present a model of optimal monitoring expenditures. For any technology that yields a conventional ``S-shaped''' production function for monitoring, the optimal level of monitoring is shown to be higher in medium-sized firms than in both small and large firms. Further, the interaction between...

The impact of flexibility upon hedging decision is examined for a competitive firm under demand uncertainty. We show that if the firm can adapt its production subsequently to its hedging decision, the standard minimum variance hedge ratio from Ederington (Journal of Finance 34, 1979) is...