We analyze investors’ trading behavior, particularly their coping with fundamental shocks in asset value, depending on individual differences in the sensitivity of two basic neurophysiological systems—the Behavioral Approach System (BAS), the ‘driving force’ of human...

This paper discusses reasons why politicians still favor hosting mega events despite the discouraging evidence regarding their financial benefits: (1) early political enthusiasm, (2) tying side-projects to the bid to raise political support, (3) biased reading of history, (4) the winners curse,...

In this paper we introduce an alternative version of the trust game by Dasgupta (1988) and Kreps (1990) that allows for asymmetric information. We use this version to study the effect of checking on the trustee’s behaviour, checking is a control option the trustor can decide to use and...

This study examines whether the introduction of SFAS 141 “Business Combinations†(2001) and SFAS 142 “Goodwill and other Intangible Assets†(2001) has led to more precise information about accounting goodwill in the financial statements of acquirers. Acquisitions in the...

We analyze vertical relationships between a manufacturer and competing retailers when consumers have reference-dependent preferences. Consumers adopt the manufacturer’s suggested retail price as their reference price and perceive losses when purchasing above the suggested price and gains...

In this paper, we contribute to the literature by including a knock-out barrier option in a compound real option model to take account of immediate project failure, a so-called sudden death. We apply the model to the case of hydrogen infrastructure development. In our case study, we find that...

High quality child care has been consistently linked with child development and future life outcomes. We examine how process quality in child care centers is influenced by the reduction of child care subsidies. The analysis is based on a 2012 reduction in subsidies for Dutch parents. Exploiting...