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James K. Hammitt, and Lisa A. Robinson
vol. 35, n. 6, June 2015, pp. 963–970
To estimate the effects of a policy change, analysts must often rely on available data as time and resource constraints limit their ability to commission new primary research. Research synthesis methods—including systematic review, meta-analysis, and expert elicitation—play an important role in...
Josh Lerner, and Jean Tirole
vol. 123, n. 3, June 2015, pp. 547–586
A major policy issue in standard setting is that patents that are ex-ante not that important may, by being included into a standard, become standard-essential patents (SEPs). In an attempt to curb the monopoly power that they create, most standard-setting organizations require the owners of patents...
Jean-Pierre Florens, and Sébastien Van Bellegem
vol. 186, n. 2, June 2015, pp. 465–476
In an increasing number of empirical studies, the dimensionality measured e.g. as the size of the parameter space of interest, can be very large. Two instances of large dimensional models are the linear regression with a large number of covariates and the estimation of a regression function with...
Igor Makarov, and Guillaume Plantin
vol. 70, n. 3, June 2015, pp. 952–962
This paper develops a model of active asset management in which fund managers may forego alpha-generating strategies, preferring instead to make negative-alpha trades that enable them temporarily to manipulate investors' perceptions of their skills. We show that such trades are optimally generated...
Jean Tirole
vol. 105, n. 6, June 2015, pp. 1665–1682
Christian Gollier, and Jean Tirole
vol. 4, n. 2, June 2015, pp. 5–27
In environmental matters, the free riding generated by the lack of collective action is aggravated by concerns about leakages and by the desire to receive compensation in future negotiations. The dominant “pledge-and-review” approach to mitigation will deliver appealing promises and renewed victory...
Diego Amaya, Geneviève Gauthier, and Thomas-Olivier Léautier
vol. 82, n. 2, June 2015, pp. 359–399
This paper develops a dynamic risk management model to determine a firm's optimal risk management strategy. The risk management strategy has two elements: first, until leverage is very high, the firm fully hedges its operating cash how exposure, due to the convexity in its cost of capital. When...
Christophe Bisière, Jean-Paul Décamps, and Stefano Lovo
vol. 61, n. 6, June 2015, pp. 1378–1397
We conduct a series of experiments that simulate trading in financial markets. We find that the information content of the order flow varies with the strength of subjects' prior beliefs about fundamentals. The presence of intrinsic uncertainty about the asset's fundamentals reduces informational...
Miriam Beblo, Denis Beninger, François Cochard, Hélène Couprie, and Astrid Hopfensitz
Paris, n. 117-118, June 2015, pp. 233–252
We present the results of an experiment measuring social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off and implement a cross-country...
Philipp Krüger, Augustin Landier, and David Thesmar
vol. 70, June 2015, pp. 1253–1285
We document investment distortions induced by the use of a single discount rate within firms. According to textbook capital budgeting, firms should value any project using a discount rate determined by the risk characteristics of the project. If they use a unique company-wide discount rate, they...
