Principal-Agent Problem with Minimum Performance Insurance

A minimum performance insurance in the Principal-Agent problem is wealth reducing to the principal. This result points to further inefficiencies in mandatory individual Pension Funds' contracts, particularly the one established in the 1993's 100th Law in Colombia.Incentives, Agency Theory, Pensions. Classification JEL: D86; D82; G23.

Infinite-Horizon Mechanism Design

These notes examine the problem of how to extend envelope theorems to infinite-horizon dynamic mechanism design settings, with an application to the design of "bandit auctions."asymmetric information, stochastic processes, incentives, mechanism design JEL Classification Numbers: D82, C73, L1.

The Relevance of Information Sources on Adoption of Precision Farming Technologies by Cotton Producers

Replaced with revised version of paper 02/16/11.strategic communication, competitiveness, extension, economics of information, technology diffusion, technology supply, communication methods, knowledge management, Production Economics, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, D22, D80, D82, D83, Q12, Q16,

Private Monitoring and Communication in Cartels: Explaining Recent Collusive Practices

Motivated by recent cartel practices, a stable collusive agreement is characterized when firms' prices and quantities are private information. Conditions are derived whereby an equilibrium exists in which firms truthfully report their sales and then make transfers within the cartel based on these reports. The properties of this equilibrium fit well with the cartel agreements in a number of markets including citric acid, lysine, and vitamins. (JEL D43, D82, K21, L12, L61, L65)

Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis

We are the first paper to analyse and confirm the existence and extent of rational informational herding and rational informational contrarianism in a financial market experiment, and to compare and contrast these with the equivalent irrational phenomena. In our study, subjects generally behaved according to benchmark rationality. Moreover, traders who should herd or be contrarian in theory are the significant source of both. Behavioural modifications or allowing risk aversion add little to performance and insight. JEL Classification: C91, D82, G14

Target dependence of the annual modulation in direct dark matter searches

Due to Earth's revolution around the Sun, the expected scattering rate in direct dark matter searches is annually modulated. This modulation is expected to differ between experiments when given as a function of recoil energy $E_\text{R}$, e.g. due to the gravitational focusing effect of the Sun. A better variable to compare results among experiments employing different targets is the minimum speed $v_\text{min}$ a dark matter particle must have to impart a recoil energy $E_\text{R}$ to a target nucleus. It is widely believed that the modulation expressed as a function of $v_\text{min}$ is common to all experiments, irrespective of the dark matter distribution. We point out that the annual modulation as a function of $v_\text{min}$, and in particular the times at which the rate is maximum and minimum, could be very different depending on the detector material. This would be an indication of a scattering cross section with non-factorizable velocity and target material dependence. Observing an annual modulation with at least two different target elements would be necessary to identify this type of cross section.Comment: 6 pages, 4 figures. Version accepted for publicatio

Light dark matter and Z′Z' dark force at colliders

Light Dark Matter, $<10$ GeV, with sizable direct detection rate is an interesting and less explored scenario. Collider searches can be very powerful, such as through the channel in which a pair of dark matter particle are produced in association with a jet. It is a generic possibility that the mediator of the interaction between DM and the nucleus will also be accessible at the Tevatron and the LHC. Therefore, collider search of the mediator can provide a more comprehensive probe of the dark matter and its interactions. In this article, to demonstrate the complementarity of these two approaches, we focus on the possibility of the mediator being a new $U(1)'$ gauge boson, which is probably the simplest model which allows a large direct detection cross section for a light dark matter candidate. We combine searches in the monojet+MET channel and dijet resonance search for the mediator. We find that for the mass of $Z'$ between 250 GeV and 4 TeV, resonance searches at the colliders provide stronger constraints on this model than the monojet+MET searches.Comment: 23 pages and 14 figure