The reputation of an individual is the aggregate opinion of them. Reputation is usually explained by attributes of the one reputed, not the motivation of those doing the reputing. In this paper, we develop a model of reputation where the opinions are assets that leverage the reputation of...

This paper constructs a new theory of social networks based on the options individuals buy on each other. The model assumes that when an individual connects with another it is equivalent to buying options on the other's reputation. The option model confers advantages not present in existing...

The basic assumption of the Black-Scholes option pricing is that volatility is constant over the time to maturity of the option. We consider how the estimation of volatility is affected by the time to maturity. In particular, we consider the empirical distribution of volatility as a function of...