In MMP-elections for legislatures, political parties compete for a voter’s support in two ways: for a first vote to the party’s candidate in a single-seat constituency and for a second vote to the party’s list of candidates. ...

We address the twin puzzles of anomalously low returns for high idiosyncratic volatility and high distress risk stocks, documented by Ang, Hodrick, Xing and Zhang (2006) and Campbell, Hilscher and Szilagyi (2005), respectively. ...

We discuss the cost allocation problem faced by a network operator, where the fixed (residual) cost of the network has to be allocated among its users. Usage-based methods, such as the postage stamp rate method and the ...

A theory is proposed where the pay policy and size of established firms are determined together with individual workers' entrepreneurship decision. The main results are twofold. First, taking the firm size as given, larger ...

We present a continuous, nonlinear, stochastic and dynamic model for capital investment in the exploitation of a renewable resource. Both the resource stock and capital stock are treated as state variables. The resource ...

Due to the increase in renewable energy production and global socioeconomic turmoil, the volatility in electricity prices has considerably increased in recent years, leading to extreme positive and negative price spikes ...

We address key issues that a foreign investor needs to evaluate when deciding whether to enter into a joint venture with a local partner. We explicitly show how the values depend on the valuation methodology, i.e., the ...

The purpose of this paper is to investigate the forward curve dynamics in an electricity market. Six years of price data on futures and forward contracts traded in the Nordic electricity market are analysed. For the forward ...

The role of certifiers is to test products for quality, and to communicate the test results to the market. We construct a free-entry model of certification, where each certifier chooses a test standard and a price for ...