About Contributors

WOLFGANG BALLWIESER (* 1948) is professor of accounting and auditing

at the Universitat Hannover. He got three degrees from the Johann

Wolfgang Goethe Universitat in Frankfurt am Main: Diplom-Kaufmann

1974, Dr. rer. pol. 1977, Habilitation in business administration

1981. Since 1982 he is full professor in Hannover. He was visiting

professor at the Universitat Wien 1983/84. His publications deal with

various topics of accounting, auditing, commercial and capital market

law, the valuation of the firm and liquidity management.

GUNTE~ BAMBERG (* 1940) studied mathematics at the U.niversities of

Saarbrlicken and Bonn. He got his diploma degree at the University of

Saarbrlicken in 1966, his doctoral degree at the same University in

1968 (thesis on game theory), and his Habilitation at the Technical

University of Karlsruhe in 1970. Since 1970 he is full professor of

statistics, University of Augsburg, where he stayed despite calls to

Osnabrlick and Heidelberg. He is co-editor of the Statistical Papers

and Mathematical Systems in Economics. His books and articles deal

with statistics, econometrics, Operations Research, and decision theory.

MARTIN J. BECKMANN studied mathematics at the University of Gottingen

1945 - 1948 and economics at the University of Freiburg i.B. 1948 -

1950, receiving his doctorate from Walter Eucken with a thesis on

"Distribution under Alternative Economic Systems". He was a Post­

doctoral Fellow at the University of Chicago 1950 - 1951 and a

Research Associate of the Cowles Commission for Research in Economics,

the University of Chicago 1951 - 1955 working under T.C. Koopmans and

J. Marschak. He moved with the Cowles Foundation to Yale University

(1956 - 1959). Since 1959 he has been teaching economics (mathematical

economics, managerial economics, economics of organizations) at Brown

University, Providence R.I. Concurrently he was Professor of economics

at the University of Bonn (1962 - 1969) and is Professor of Applied

Mathematics at the Technical University of Munich. His research in­

terests are in the economics of transportation and location, dynamic

programming, and the economics of organizations.

512

HELMUT BESTER (* 1953) is assistant at the Department of Economics,

University of Bonn. He studied economics in Bonn (Diplom-Volkswirt

1979) and at the London School of Economics (M.Sc. 1981). He re­

ceived his doctoral degree (1984) and his Habilitation (1987) from

the University of Bonn. His research interests include the economics

of uncertainty and information and non-cooperative bargaining theory.

MARINA BLICKLE (* 1960) studied mathematics and economics at the

University of Ulm. She received her Diplom-Wirtschaftsmathematiker

degree at the University of Ulm in 1985. Since 19~6 she has a

research and teaching position at the Department of Economics,

University of Ulm. Her current interests of research are agency

theory and information economics.

RALF EWERT (* 1957) is currently working as Akademischer Rat at the

University of Passau. He first studied music at the Robert-Schumann­

Institut, Dusseldorf, and then business administration at the Univer­

sity of Cologne, from which he received the "Diplom-Kaufmann"-degree

in 1982. He got his "Dr. rer. polo"-degree from the University of

Passau (1936), and his doctoral thesis deals with the application of

the financial theory of agency in the field of external accounting.

He has published several papers on decision theory (jointly with

'l'homas Schildbach) and finance. His current research interests are

in the above mentioned areas as well as in the fields of managerial

accounting, information economics and the economic analysis of law.

GUSTAV FEICHTINGER (*1940) is full professor for operations research at the Technical University of Vienna. He studied mathematics and physics at the University of Vienna, where he got his doctoral degree in 1963 (thesis in group theory). He was assistant professor for statistics at the University of Bonn between 1965 and 1972. His Habilitation 1969 was on stochastic models in demography. He published numerous papers on population mathematics, applied optimal control and the dynamics of the firm. He is author and editor of 7 books on demometrics and economic applications of control theory. Recently he wrote a comprehensive monographie on optimal

control of economic processes (coauthored by R.F. Hartl).

513

VOLKER FIRCHAU (* 1949) is Privatdozent at the Department of Economics,

University of Augsburg. He received the Diplom-Mathematiker degree from

the University of Mlinster (1974), whereas he passed his doctoral pro­

motion (1978) and his Habilitation (1984) in Augsburg. His current

interest of research include decision theory, problems of insurance,

and statistical methods. Two monographies on advanced topics on infor­

mational economics were recently published.

FRIEDRICH FRICKE (* 1928) is a member of the Vorstand of the Sliddeut­

sche Treuhand Gesellschaft AG in Munich and is lecturing on Auditing

and Taxes at the University of Ulm. He got his Diplom-Kaufmann degree

from the University of Munich in 1951, and he is holding the additional

degrees of Qualified Auditor (WP) and of Tax Advisor (StB). Friedrich

Fricke published articles and comments on the German Accounting Legis­

lation. His current fields of interest include auditing problems re­

lated to insurance companies and statistical methods applied to audit­

ing.

HELMUT FUNKE (*1947) is Privatdozent at the Department of Economics,

University of Ulm. He received his diploma degree 1973 from the

University of Wlirzburg, whereas he passed his doctoral promotion

1977 and his Habilitation 1985 at the Faculty of Economics of the

University of Karlsruhe. His papers cover topics such as price

theory, economic indices, aggregation problems, and income-tax.

MARTIN GAYNOR (*1955) is Senior Economist at the Center for Health Economics

Research in Needham, Massachusetts, U.S.A., and Faculty Research Fellow at the

National Bureau of Economic Research, Cambridge, Massachusetts, U. S .A. He has

taught economics at several universities in the United States, including the

State University of New York at Binghamton, and Virginia Polytechnic Institute

and State University. He received the B.A. and Ph.D. degrees from the University

of California, San Diego and Northwestern University, respectively. His primary

research interests are in the economics of organizations and the economics of

health care.

514

ANDREAS GRUBER (*1960) studied mathematics and economics at the

University of Ulm/FRG and the University of Wisconsin-Milwaukee/USA.

He got his Diplom-Wirtschaftsmathematiker degree at the University

of Ulm in 1985. Since that time he has a research and teaching

position in the Department of Economics at the University of Ulm.

His current field of interest cover finance, market equilibria,

and information economics.

THOMAS HARTMANN-WENDELS (* 1957) is Wissenschaftlicher Mitarbeiter at the Lehrstuhl fUr Finanzierungslehre, Universitat zu Koln. He received his Diplom-Kaufmann degree (1981) and his doctoral degree (1985) from the University of Cologne. In 1986 he was an exchange researcher at the School of Organization and Management, Yale University. His publications deal with advanced topics of capital market theory and his current inte­

rests of research are informational aspects in the theory of finance and in accounting.

MARTIN HELLWIG (* 1949) is currently Professor of Economics

at the University of Bonn. He studied economics and history

in Marburg and Heidelberg (Diplom-Volkswirt 1970) and at the

Massachusetts Institute of Technology (Ph.D. 1973). He has

held research and teaching positions at Stanford and Princeton

Universities and at the University of Bonn, where he has been

since 1977. His research interests concentrate on monetary theory

and on the economics of information, in part~cular in application

to financial and insurance markets.

THOMAS KAULMANN (* 1958) is research assistant at the Technical

University of Munich, Institute for Business Administration and

Industrial Engeneering. He studied economics at the University of

Hannover, where he received his Diplom Oekonom degree in 1982.

Occupations as research assistant at the Institute for Statistics and

Econometrics and the Institute for Management and Organization at the

University of Hannover followed. His 1986 doctoral dissertation was an

empirical work on the property rights-theory of the firm. Current

areas of interest for research include transaction cost economics,

corporate innovation, entrepreneurship and office automation through

new information technologies.

PAUL KLEINDORFER (>"1940) is Professor of Decision Sciences and Economics at

the University of Pennsylvania. Dr. Kleindorfer received his Ph.D. from

Carnegie-Mellon University in 1970, and has taught at the Massachusetts Institute

of Technology before coming to The Wharton School at the University of

Pennsy·l vania. Dr. Kleindorfer has also been a visiting scholar at the

International Institute of Management, West Berlin, at the International

Institute for Applied Systems Analysis, Vienna, and, in the summer of 1986, at

the University of Ulm. His primary research interests are incentives, regulation

and managerial economics.

JAN PIETER KRAHNEN (*1954) is Hochschulassistent at the Faculty of

Economics, Freie Universitat Berlin.He studied in Paris (Universite

Dauphine, 1979), Rochester (Graduate School of Management, 1981/82)

515

and Frankfurt (Johann-Wolfgang-Goethe Universitat), where he gradua­

ted (Dipl. Kfm., 1980 and Dr.rer.pol., 1984). Since 1980 he teaches

financial economics in Berlin.Current work concerns research on finan­

cial intermediation and the theory of investment, as well as consulting

assignments on financial development.

GEORG MERAN (*1953) is wissenschaftlicher Mitarbeiter at the Faculty

of Economics, Freie Universitat Berlin, where he received his doctoral

degree (1985). After studying political science and economics at the

University of Munchen he got the diploma degree (Dipl.Vw., 1978) at

the University of Konstanz, where he was employed as wissenschaftlicher

Mitarbeiter.Cur~ent work and interest are in the field of industrial

and financial economics,enviromental economics and ths theory of labor

managed firms (comparative economics). He has authored (and co-authored)

various papers in these fields.

HELLMUTH MILDE (*1941) is Associate Professor of Finance at the Faculty of

Management, McGill University, Montreal (Quebec), Canada. He received his degrees

from Hamburg University (Dipl. Volkswirt 1968) and Konstanz University (Dr.rer.soc.

1913; Habilitation 1919). He has been a visiting professor at the University of

California, Los Angeles. He is author and co-author of several articles on

commercial banking and credit markets in scholarly journals. A (German written)

monograph on commercial banking behavior (co-authored with Ernst Baltensperger,

Bern University) will be published shortly by Springer-Verlag.

516

ANDREAS PFINGSTEN (*1957) is working for the Institut fur Wirtschafts­

theorie und Operations Research (Universitat Karlsruhe) and for the

Landeskreditbank Baden-Wurttemberg. He studied in Karlsruhe (Diplom­

Wirtschaftsingenieur 1982) and at the University of British Columbia,

Vancouver B.C., Canada. In 1985 he got his doctoral degree in eco­

nomics at Karlsruhe. His thesis on "The Measurement of Tax Progression"

as well as a number of papers in the fields of index numbers, natural

resource economics, and public finance were published in the past few

years.

ERICH SCHANZE (* 1942) studied law at Frankfurt, Edinburgh and Harvard

Universities. He received his first and second law degree in 1967 and

1972 respectively, a Master of Laws at Harvard University in 1969

(thesis on information liability), his Dr. iur. in 1975 (thesis on

one-man corporation and piercing the corporate veil) and the Habili­

tation in 1984 at Frankfurt. He teaches civil law, business law, law

and economics and comparative law in various capacities since 1972,

including visitorships at Stanford Law School in 1978 and at the Uni­

versity of Chicago Law School in 1980. Since 1987 he is a Professor

of Law at Ruprecht-Karls-Universitat Heidelberg. His recent books and

articles focus on international investment, long-term contracting,

regulation, and law and economics.

REINHARD H. SCHMIDT (* 1946) studied business administration and eco­

nomics in Frankfurt (Main). He received his degrees (Diplom-Kaufmann,

1971, Dr. rer. pol., 1974, and Habilitation, 1980) at the University

of Frankfurt. In 1975/76, he was a visiting scholar at the Graduate

School of Business, stanford, Cal •. Since 1983 he is full professor of

business administration and finance at the University of Trier (Fach­

bereich IV). His books and articles cover topics in financial eco­

nomics, methodology and decision science.

DIETER SCHNEIDER (* 1935) is professor of business economics,

especially taxation at the Ruhr-Universitat Bochum. He got three

degrees from the university of Frankfurt: Diplom-Kaufmann 1957, Dr.

rer. pol. 1960, Habilitation in business administration 1965. Since

1965 he was full professor in Munster, since 1970 in Frankfurt, and

since 1973 in Bochum. His publications in professional journals as

well as his books deal with various topics esp. of taxation, account­

ing, finance and investment, and the history of microeconomics and

business economics.

GERHARD SORGER (* 1961) is research assistant at the Technical University of

Vienna, Institute for Econometrics and Operations Research. He received both the Dipl. Ing. (1983) and the Dr.techn. (1986) degrees at the Technical Uni­

versity of Vienna. In his doctoral thesis he investigated the influence of a reference price on the optimal marketing strategies of a firm. His current

interests of research are control theory and its applications to proble~s of economics.

517

KLAUS SPREMANN (* 1947) studied mathematics at the Technical Univer­

sity Munich, where he received his Diplom-Mathematiker degree in 1972

and where he wrote his doctoral dissertation on dynamic optimization

in 1973. His Habilitation was at the Department of Economics at the

University of Karlsruhe in 1975. Since 1978 he is full professor of

Economics at the University of Ulm. Klaus Spremann was Visiting Pro­

fessor at the University of British Columbia, Vancouver, in 1932 and

at the National Taiwan University, Taipei, 1937. He wrote a book on

modern finance, co-edited volumes on capital market theory, and pub­

lished numerous papers. His main fields of interest are risk theory

and information economics.

PETER SWOBODA (* 1937) is Professor at the University of Graz, Austria.

He studied at the University of Commerce, Vienna, where he got the

PH.D. in 1959. After the Habilitation (1964, University of Commerce,

Vienna) he became full Professor at the University of Frankfurt, BRD.

1970 he moved from the University of Frankfurt to the University of

Graz. He was Visiting Associate Professor at the University of Illinois,

Urbana-Champaign (1965-1966). In 1976 he declined an offer from the

University of Hamburg, BRD. He published two books on finance and

numerous articles on cost accounting, capital budgeting, taxes and fi­

nance.

JOACHIM VOELLER (*1946) is professor of Economics at the University

of Ulm. He received three degrees from the University of Karlsruhe:

Diplom-Wirtschaftsingenieur (1971), Dr. rer. pol. (1974), Habili­

tation in Economics (1981). In 1982 he became professor of Economics

at Karlsruhe and since 1985 he teaches in Ulm. His main fields of

interest are: Theory of index numbers, money and credit, "Ordnungs­politik".

518

ALFRED WAGENHOFER (* 1959) is assistant professor of Business

Administration at the University of Technology of Vienna. He received

his Magister degree (1982) and his doctoral degree (1984) at the

University of Vienna. His publications deal mainly with accounting and

taxation issues, current interests of research are applications of

agency models in accounting and auditing.

JOCHEN E.M. WILHELM (* 1945) is currently full professor of finance

at the University of Passau. He studied mathematics and economics

at the University of Bonn where he got his Diplom-Mathematiker de­

gree in 1970; his doctoral dissertation 1973 was on multi-objective

decision making under uncertainty, his Habilitation 1981 on dynamic

capital market theory. 1982 - 1984 he taught as professor of business

administration at the University of Bonn. He published three books

and numerous papers on decision theory and on various topics in

finance and banking.

Author Index

AHARONY, J. AKERLOF, G. ALBERS, W. ALCHIAN, A.A.

ALESSI, L. ALTMAN, E. I. ANG, J.S. ANTLE, R.L. ARROW, K.J.

ASHENFELTER, O. AUMANN, R.

BADURA, P. BAETGE, J. BAILEY, A.D. BAlMAN, S.

BALLWIESER, W. BALTENSPERGER, E. BAMBERG, G. BARNEA, A. BARON, D.P. BARRETT, R.J. BASAR, T. BAUMOL, W:J. BAUR, F. BAUTISTA, A. BEBERHOLD, M. BECKMANN, M.J. BERGER, K.H. BERGSTROM, T. BERLE, A. BESTER, H. BHATTACHARYA, S. BIEG, H. BINMORE, K. BITZ, M. BLACK, F. BLACKWELL, D. BLANNING, R.W. BLICKLE, M. BLUMERS, W. BOBEL, I. BODIE, Z. BOHR, K. BOURDREAUX, K.J.

231,251 40,59,256,280 414 2,5,25,35,391,392,412,440,443,456,462,471, 487,493 35 307 231,251,272,280 331,334,338,339,340,343,344 2,5,10,30,34,35~167,177,329,342,344,345,412,

484,493 411,412 394,412

478,479 294,305 345,345 329,333,334,338,339,343,345,349,351,353,354, 369,377 323,324,327,328,333,345,509,511 137,166,272,280 1,17,35,36,44,59,66,77,102,128,133,308,347,511 5,35,41,59,256,280,283,288,291,292,305 63,77 44,59 416,438 441,442,456 128,133 257,280 64,78 35,117,133,379,381,385,388,511 509 110,115 391,412,440,456,493 135,144,166,512 237,251 297,305 346 300,305 285,305 84,92 61,63,64,78 25,35,93,512 323 450,453,456 291,305 458 453,456

520

BOWEN, R.M. BRANDI, E.H. BREALEY, R. BRECHLING, F. BRICKLEY, J.A. BRITO, N.O. BUCHANAN, J.M. BUHLER, W. BUHNER, R.

CABLE, J .R. CANES, M.E. CHEUNG, S.N.S. CHILD, J. CHIU, J.S. CHRISTENSEN, J. CHUNG, K.L. CLARK, R. CLARKE, E.H. CLEMENZ, G. COASE, R.H. COENENBERG, A.G. COOLEY, D.E. COOPER, C.L. CROSS, J.G. CRUM, R.L. CUMMINS, M.T. CYERT, R.

DAINTITH, T. DALEY, L.A. DARROUGH, M.N. DASGUPTA, P. DEAKIN, E.B. DeALESSI, L. DeANGELO, H. DEBREU, G. DeGHELLINCK, E. DEMSETZ, H.

DEMSKI, J.S. DERKINDEREN, F.J DEVINNEY, T. DHALIWAL, D.S. DILL, D. DIRRHEIMER, M. DOCKNER, E. DRUKARCZYK, J. DRUMM, H.J. DURIG, G. DUTTHORN, C. DYE, R.A.

EINHORN, H. ELLERICH, M. ELLIOT, J.W. EMMERICH, G.

296,305 231 255,256,280 126,133 231,251 188,203 493 509 450,453,456

404,412 63,78 487,493 453,456 449,453,458 87,88,90,92 226 464,471 110,115 137,166 247,252,389,392,412,461,462,465,471,493 293,305,306,323,324 449,453,458 402,412 61,74,78,78 177 61 389,404,412

471 296,306 251,252 346 296,306 445,456 181,203 484,494,497,508 450,453,457 2,5,25,35,391,392,412,440,443,445,456,457,462, 471,487 328,333,343,345,348,353,354,369,377,508 177 137,166,272,280 296,306 257,280 450,453,456 438 170,177,286,297,306,458 458 477,480 447,449,458 J49,369,371,377

395,412 282,294,306 453,457 324

ENKE, S. EPPS, T.W. ESWARAN, M. EVANS III, J.H. EWERT, R.

FAMA, E.F.

FEICHTINGER, G. FELLINGHAM, J.C. FELTHAM, A. FINE, T.L. FIRCHAU, V FISCHHOFF, B. FISHER, I.N. FITZROY, F. FLATH, D. FLORENCE, P.S. FOX, J.R. FRANCE, A. FRANKE, G. FRIAUF, K. FRICKE, F. FRIEDMAN, J.W. FUDENBURG, D.D. FUNKE, H. FURUBOTN, E.G.

GAFGEN, G. GALAI, D. GALE, D. GAVISH, B. GAYNOR, M. GERHARDT, G.R. GEUER, H. GIRSHICK, M.A. GJESDAL, F. GMELIN, H.J. GOLBE, D.L. GOLDBERG, V.P. GOLLERT, K. GONEDES, N.J. GOPPL, H. GORDON, R.A. GRAY, M.R. GREEN, J. GREEN, R.C. GREENWOOD, P.R. GROSSMAN, S.J. GROVES, T. GRUBER, A. GUNDERSON, M. GUPTA, K.

78 66,78 401,412 338,339,345,348,377 281,288,289,290,295,297,299,302,303,304,305, 306,512

35,94,102,195,203,226,284,286,302,306,341,345, 462,470,471,481,494,508 415,421,438,512 341,342,345,373,377 349,377 494 66,78,81,513 414 61,64,78 404,412 256,280 447,457 61,78 474 168,172,177,230,252 324 311,513 401,402,412 411,412 105,513 445,457

443,457 286,306 153,157,158,166,167,177 286,306 389,395,401,404,412,513 118,133 323,324 84,92 25,35,85,87,90,91,92,95,282,306 324 286,306 465,471 323,324 231,252 306 391,412,447,457 44,59 392,393,394,412 286,291,306 286,306 5,4,35,137,159,212,226,394,412,481,494 110,115,391,412 205,514 411,413 287,306

521

522

HADAR, J. HAKANSSON, N.H. HALEY, C.W. HARMS, J. HARRIS, M.

HARRISON, J.M. HART, O.D. HARTL, R.F. HARTMANN-WENDELS, T. HAUGEN, R.A.

HAX, H. HAYEK, F.A. HAYES, B. HEALY, P.M. HEATHFIELD, D.J. HEINKEL, R. HELLWIG, M. HEMMERDE, W. HENN, R. HERDER-DORNEICH, P. HERZOG, R. HESSE, K. HEUBECK, K. HEY, J. HEYDKAMP, W. HILTON, R. HINDLEY, B. HIRSHLEIFER, J. HODGMAN, D. HOFER, R. HOFFMANN, W.D. HOGARTH, R. HOLL, P. HOLMSTROM, B.

HOLTHAUSEN, R.W. HOPWOOD, A.G. HORST, M. HURWICZ, L.

INTRILLIGATOR, M.D. IRELAND, N.J.

JACQUEMIN, A. JAFFEE, D. JARROW, R. JENSEN, M.C.

JOHN, K. JOHNSON, G.E. JOHNSON, H. JOYCE, W.F.

45,59 282,307 230,252 323,324 25,36,87,90,91,92,95,102,261,266,280,333, 345,400,413 185,203,206,208,210,211,226 5,14,35,137,155,159,166,394,412,481,494 421,438 229,234,242,252,514 5,35,41,59,169,177,192,203,256,280,283,288,291, 292,305,306 177,230,252 494 411,413 296,306 59 238,249,252 135,153,157,158,166,167,177,347,514 300,305,306 306 509 477,480 477,480,509 323,324,325 395,413 323,325 59 453,457 36,214,226,230,252 137,166 323,325 323,325 395,412 453,457 5,25,36,41,59,86,87,90,92,95,102,333,336,343, 345,363,377,389,392,393,394,399,400,509 296,297,306 306 509 110,116

35,344 404,413

453,457 137,152,166,226 66,78 5,8,22,36,94,102,157,166,192,193,203,230,243, 252,282,283,283,285,286,293,296,307,462,463, 470,471,481,486,494,508,509 239,244,252,289,296,302,305,307 411 288,297,308 397,414

KAHNEMAN, D. KAHR, D. KALAY, A.

KAMERSCHEN, D.R. KANIA, J.J. KANODIA, C.S. KAUFER, E. KAULMANN, Th. KAWASAKI, S. KEETON, W.R. KERVIN, J. KEYNES, J.M. KIM, E.H. KIRZNER, I.M. KLEIN, F. KLEINDORFER, P.R.

KOSHAL, R.K. KOTWAL, A. KRAHNEN, J.P. KRAINER, R.F. KREPS, D.M. KRIPPENDORF, K. KROMSCHRODER, B. KRONMAN, A.T. KUDLA, R.J. KUGEL, B. KUNNEMANN, M. KUNREUTHER, H. KUTING, K.

LACEY, J.M. LAMBERT, R.A. LANCASTER, K. LARCKER, D.F. LARNER, R.J. LAUB, M. LAUX, H. LAVALLE, I.H. LAW, P.J. LAZEAR, E.P. LEDYARD, J. LEFFSON, U. LEFTWICH, R. LEIBENSTEIN, H. LEIPOLD, H. LEMITZ, H.G. LEVINE, D.K. LEVINTHAL, D.A. LEWELLEN, W. LICHTENSTEIN, S. LILIEN, S. LINDAHL, E. LINTNER, J. LIU, P.-T. LONG, M. LUDEWIG, R. LYS, T.

222,226,413,414 347 230,232,237,239,243,244,252,286,296,297,299, 302,305,306,307 453,457 453,457,458 90,92,349,371,377 451,457 439,445,449,452,453,454,457,458,514 62,78 137,152,166 411,413 206,226 286,296,304,307 494

523

477,480 61,63,64,78,78,389,395,397,399,400,402,404,413, 414,515 453,457 401,412 78,255,280,509,515 306 185,203,206,208,210,211,226 413 227 465,471 192,203,291,307 323,325 324 395,413 306,323,324,325

296,305 341,342,345,349,377 433,438 296,306 453,457 231,252 505,506,509 84,92 404 36,393,413 110,115,391,412 323,325 294,296,297,306,307,308 391,413 443,457 325 411,412 334,345 257,280,286,307 414 296,308 107,116 66,78,230,252 418,430,438 257,280 325 296,308

524

MACDONALD, G. M. MACNEIL, I.R. MAJLUF, N. S . MAKOWSKI, L. MANGOLDT v., H. MARCH, J. MARRIS, R. MARSCHAK, J. MARSCHDORF, H.J MARSH, R.C. MASSON, R.T. MASULIS, R.W. MATTESSICH, R. MAUNZ, Th. MAY, R.G. MAYERS, D. McCALL, J.J. McCONNELL, J. McEACHERN, W.A. McKEAN, R.N. McMILLAN, J. MEANS, G. MECKLING, W.H.

MERAN, G. MEYER, W. MICHAELIS, E. MILDE, H. MILL, J.S. MILLER, M.H.

MIRRLEES, J. MODIGLIANI, F. MOLLER, P. MONSEN, R.J. MOOKHERJEE, D. MOORE, F.T. MOXTER, A. MUENCH, R. MUHLBRADT, F.W. MULLER, U. MYERS, S.C.

MYERSON, R.B.

NACHMAN, D.C. NALEBUFF, B. NAMAZI, M. NASH, J.F. NERLOVE, M. NEUMANN, M. NEWMAN, D.P. NG, D.S. NIEHUS, R. NOEL, J.C. NOREEN, E.W.

78 465,471 199,204 181,187,204 477,480 389,404,412 391,413,442,457 391,413 177 471 458 286,306 82,85,90,92,345 477,480 294,308 188,204 63,78 257,280,286,307 453,457 79,453,457,458 62,78 391,412,440,456,493 5,22,36,94,102,157,166,192,193,203,230,243,282, 283,284,286,306,462,463,471,481,486,494,509 255,280,285,515 443,458 445,449,458 39,515 486,494 229,238,239,248,249,253,257,258,265,270,280, 284,286,302,306,308 19,25,36,92 229,253,265,270,308 293,306 449,453,458 343,346,349,370,373,377,392,393,394,413 61,64,78 305 111,116 219,225,227 323,325 199,204,242,253,255,256,257,280,285,287, 288,308 334,346,363,377

289,307 392,394,413 329,346 401,413 411,413 456,457 341,342,345 328,333,334,336,346 325 337,338,339,345,346 296,305

OLSDER, G.J. OROSEL, G.O.

PALMER, J. P. PARKIN, J.M. PASTENA, V. PATELL, J.M. PECK, M.J. PEJOVICH, S. PENNO, M. PEPALL, L. PETERSON, P. PETTIT, R.R. PFINGSTEN, A. PFLEGER, G. PICOT, A. PNG, I. POHJOLA, M. POLINSKY, A. POPPER, K.R. POSNER, R.A. PRATT, J.W.

QUALLS, D.P.

RADICE, H.K. RADNER, R. RAMAKRISHNAN, R.T.S. RAUSCH, W. RAVIV, A.

REES, R. REID, F. REVSINE, L. RILEY, J.G. ROBERTS, D.M. ROBERTSON, W.P. ROCK, K. ROGERSON, W.P. ROSCHER, W. ROSEN, S. ROSS, S.A.

RUDOLPH, B. RUSSEL, T. RUSSEL, W.J. RUSSELL, B. RUUD, P.A.

SAHLING, C. SAMUELSON, P.A. SANKAR, C. S. SAPPINGTON, D. SCHALL, L.D. SCHANZE, E. SCHERER, F.M.

416,438 206,213,224,227

453,458 44,59 296,308 231,253,328,333,345 61,79 445,453,457 90,92,333,336,346 181,187,203 272,280 231,253 117,516 323,325 443,445,449,458 349,370,373,377 418,427,438 395,413 486,494 465,471 5,13,36,167,177,344,464,471

453,458

453,458 341,342,346,391,394,398,402,413,414,481,494 90,92 300,305 25,36,87,90,91,92,95,102,261,266,280,298,308, 333,345,400 5,36,93,102,117,118,133,329,334,346,481,494 411,413 296,306 36,234,236,253 335,346

238,239,248,249,253 341,342,346,351,377,395,413 481,494 36,393,413 5,36,40,41,59,93,102,185,204,237,253,266,280, 283,308,392,414,509 297,308 137,152,166,462 45,59 471 411,412

231,253 113,116,211,227 61,63,64,78 343,345,363,377 230,252,284,308 461,469,471,516 61,63,79,451,458

525

526

SCHERRER, G. SCHILDBACH, T. SCHMIDT, F. SCHMIDT, R.H. SCHMIEDEBERG, A. SCHNEELOCH, D. SCHNEIDER, D. SCHOENFELD, A. SCHOLES, M. SCHOR, G. SCHREDELSEKER, K. SCHREUDER, H. SCHREYOGG, G. SCHRODER, J. SCHULLER, A. SCHUMPETER, J.A. SCHWALBACH, J. SCHWING, R. SEN, A.K. SENBET, L.W.

SERTEL, M.R. SHAVELL, S. SHEVRIN, . SIEGEL, T. SIMON, H.A. SINGH, N. SLOVIC, P. SMITH, C.W. SORENSEN, E.H. SORGER, G. SPENCE, A.M. SPREMANN, K.

STANO, M. STATMAN, . STEINMANN, H. STIGLITZ, J.E.

STOECKENIUS, J. STOKEY, N. ST6PPLER, S. STOUGHTON, N.M. STULZ, R.M. SUBRAHMANYAM, M. G. SUH, Y.S. SUNDEM, G.L. SWARY, I. SWOBODA, P.

458 294,297,308 293,306 22,36,78,227,495,509,516 480 323,325 22,36,305,345,481,494 ff.,503 ff.,508,509,516 323,325 285,305 495,509 225,227 306 447,449,458 269,280 458 483,494 456 414 494 5,35,41,59,169,177,192,203,256,283,288,291,292, 305,306 78,395,397,399,400,402,413,414 5,25,36,79,90,92,95,102,333,346,509 222 325 82,92,111,115,389,404,414 36,90,92,95,102 395,414 192,204,230,253,283,285,286,288,290,296,297,308 296,307,453,458 415,517 9,36,94,102,227,231,235,236,253,395,414 1,3,17,35,36,59,66,77,95,102,308,323,325,475, 480,517 453,458 222 447,449,458 5,36,41,59,94,102,135,137,139,140,149,154,161, 166,230,253,267,280,284,308,388,392,394,413,494 333,334,336 392,393,394,412 345 251,252 288,297,308 307 341,342,345 294,308 231 36.,167,177,227,255,256,280,285,297,308,517

TAGGART, R.A. TALMOR, E. TASHJIAN, M.T. TERBERGER, E. TEUBNER, G. THAKOR, A.V. THATCHER, J.S. THIRLBY, G.F. THONET, P.J. TIETZEL, M. TILLMANN, E. TITMAN, S. TITUS, C.J. TOMER, J.F. TOWNSEND, R.M. TRUEMAN, B. TVERSKY, A.

UPTON, C.

VAN DE VEN, A.H. VERRECCHIA, R.E VIGELAND, R.L. VILLAREJO, D. VOELLER,J.

WAGENHOFER, A. WALKER, M. WARE, R.F. WARNER, J.B. WATTS, R. WEBER, H.K. WEISS, A. WEITZMAN, M. WEYAND, S. WICKSELL, K. WILHELM, J.E.M. WILLIAMSON, O.E.

WITTE, E. WOHE, G. WOLFSON, M.A. WOLFSTETTER, E. WOLTMANN, A. WOODLAND, B.M.

YANDELL, D.S. YOUNG, R.A.

ZACHER, H.F. ZECHNER, J. ZECKHAUSER, R.J. ZILIAS, M. ZIMMER, I. ZIMMERMAN, J. L. ZINK, A.

291,305 286,306 61,79 78,495,509 471 90,92 296,308 493 449,452,453,454,458 443,458 325 167,172,173,174,176,177,285,308 111,115 403,414 341,346,348,349,370,377 251,253 222,226,395,414

257,258,280

397,414 328,346 296,306 447,458 473,517

347,518 110,111,116 453,458 192,204,230,253,286,288,290,296,297,308 231,253,343,346 300,306,308 36,135,137,139,140,149,154,161,166 118,133 323,325 107,116 179,181,185,190,200,204,518 61,79,391,392,414,442,443,446,458,462,465,471, 494 450,453,458 323,325,326 231,253,261,280,328,333,345 256,280 326 333,336,336,346

333,336,346 349,377

478,479,480 286,308 5,9,36,36,167,177,344,464,471 323,326 296,308 343,346 475,480

527

Subject Index

Accounting 281,282,292,293,311 cost 72 Directives Law 311,312,319

Adjustment costs 124,126,131 Agency 461,462,463,466,468,470

cost 8,22,24,172,245,385,481,482,483,495,496,499,503 Agency information 85,90 Agent 2,28,283,312,330,379 Arbitrage 181,210,212,215,216

equilibrium 185,190 Armed Services Procurement Regulations 62 Arrow-Debreu-markets 484 ASC (= Action Selection constraint) 352 Asymmetric information 6,229,258,261,262,271,288,311 Auditing 281,312,327,333,338,343

Bankruptcy 138,145,168,171,260,263 regulations 170

Bargaining 401,402,418,429 Bayesian 410,411 Blackwell's theorem 84,86,91 Bonding expenditure 483,489 Bonus-penalty scheme 18 Boss 224,226 Bounded rationality 404,411

Call 256 capital structure 315 CARA (= Constant Absolute Risk Aversion) 41,42,44,66,96 Cash flow 316 certainty equivalent 13,15,17,44,51,66 cheating 156,341 Coalition 399,340,343 Cobb-Douglas production function 382 Collateral 143,144,146,291 communication 354,363,366 compensation scheme 194,195,197,351,352,357,366 Competition 1,341,446 Competitive bidding 63 Competitivity 186,187,289 Complex scenario 298,299,300,302 Consolidated balanced sheet 311 Consumption opportunity (set) 181,183,184,185,187,188,189,198,199,200,

201,202 Contingent claim 186 Contract 461,462,463,470 Control problem 429 cooperation 3

530

Coordination 379,443 Core 107,109,114 Cost of investigation 354,357,359,362,366 Cost-plus-fixed-fee contract 62,70 cost-plus-incentive-fee contract 75 Covenant 289,292 Credit 258,259 Credit rationing 135,136,137,140,143,145,157 Creditor 192,197,302

Debt contract 138,157,163,168 Debt financed dividend payments 286 Decision function 83 Decreasing returns to scale 152 Defense contracting 61

budget 61 Department 62

Delegation 9,461,463,464 Depreciation 244 Differential game 415 Disclosure requirement 311,319,320 Discretion 446,464 Diversification 24 Dividend constraint 243,244,247 Dividends 205,215,216,226,229,231,236,239,243,247,286 Doob's optional sampling theorem 211 Double moral hazard 157,162

Effort 12,14,19,21,24,53,56,65,67,76,98,158,162,264,330,381,386 Equilibrium credit rationing 140,142,143,150 Exponential utility function 3,17 External effect 2,5

Fairness 439,474,475,476,479 Financial statement 311,318,320,321 First order stochastic dominance 44 First-best 6,22,23,56,57,162,163,263 Fixed-fee arrangement 22 Fixed-price contract 62,70 Fixed-price-incentive-fee contract 74 Follower 420 Free rider 105 FTA (= Financial Theory of Agency) 282,283,284,292,293,294,295,300

GAAP (= Generally Accepted Accounting Principles) 328 Game 82,113,392,393,396,415 Group incentive 404 Growth maximizing 442

Hamiltonian 419,430 Herfindahl Index 448 Heterogeneous expectations 75,206,208,226 HGB (= Handelsgesetzbuch) 328 Hidden effort 10,11

characteristics 10,11 Hierarchy 9,462,487,488,493 HK (= Harrison-Kreps)-model 206,207,213,217 Holmstrom's theorem 399,402 Homogeneous expectations 85 Hybrid approach 66

Incentive contract 62 compatibility 106,108,156,262,364 constraint 149,156,158,159,364 effect 145,149 signalling approach 237

Increasing returns to scale 151,386,388 Information asymmetry 12,16,168

costs 84,89,347 system 83,84,94,505 value 84,89

Initial endowment 182,187,188,189,190,198 Intertemporal 415 Interval investigation 349,350 Investigation strategy 347,348,350,354,366,376 Investment 148,153,302,303

Kakutani's fixed point theorem 407

Labor-managed 403,404 Leader 420 Leasing 255,256,257,258,259,266,270 Leibnitz-rule 273 Leisure 380,383,384,388 LEN-Model 3,17,19,27 Limited liability company 313,315,318,319 Liu's theorem 430 Lindahl equilibrium 107 Lindahl's proposal 106,114 Linear homogeneous 381,385 Liquidation decision 167

value 169 Loan contract 143 Loan size rationing 150,152,153,154 Loanable funds 140,142

~aintenance 173,258,259,261,263,265 Manager 180,192,195,198,379

controlled 447,450,453,454 Managerialism 439 Market imperfection 488 Me-first-rule 302 Miller-Upton-et al proposition 257,258,269,270 Misperception 389,395,404,407,408,411 Modigliani-Miller theorem 147,229,230,236,265,270 Monitoring signal 7,10,26,27

device 25 expenditure 22,483,489

Moral hazard 54,67,139,142,157,158,162,240,348,349,352,392 Motivation 1,218 MSC (= Message Selection Constraint) 364 Multi-level organization 385

Nash equilibrium 109,112,113,115,331,398,402,416,418,427 bargaining 401,402,418

Noncooperative 404,406,433 NPV (= Net Present Value) 287,290,291,298 NYSE (= New York Stock Exchange) 219,225

531

532

Observation error 26 Open loop 415,416 Operative 379,380 opportunity set 180,181

cost 482,489 optimal Control 418 optimal life 174,175 Organization 379,385,389,397,487 Owner 180,181,182,190,192,195,198

controlled 447,450,453,454 manager 284

Parameter information 85,86 Pareto efficiency (= Pareto optimality) 47,51,67,68,331,400,402,

418,428 PCI (= Protection of Creditor's Interests) 282,294,295,300 Penalty 18,19,25,347,349,350,354,363,366,490 Perfect information 168,348,350,351,399 Performance evaluation 349 Perk consumption 195,197 PRC (= Pure Rental Contract) 352,355,356,361 Preference-free 190 Preferred stock 173 Principal 2,28,312,330,379 Principle of caution 300,301 priority 176 Private information 39,52,56 Production function 45,148,151,380,381,385,399,405 Property rights 439,443,456,470 Prospect theory 222 Public good 105

information 39,45,56 Publicly-held corporation 440,455 Put 256,259,260,266 PWC (= Pure Wage Contract) 351,356,359,361,362

Random investigation 348,359,361,363,376 Rational expectations 234,238,239,289 Reaction function 417,419 Regulation 1 Rent 18,19,258,266 Reservation level 85,89,354,358,359,398

constraint 15,16,20,28 Residual loss 483 Revelation principle 364 Reward scheme 7,14,27 RIC (= Random Investigation Contract) 355,359 Risk aversion 17,18,20,21,22,42,47,71,330,349 Risk neutrality 20,71,96,126,127,138,208,245,261,397 Risk premium 13,20 Risk sharing 11,58,348,352,358 Roman Law 490,491 RWE 226

Saddle-point 430 Sa1e-and-1ease-back 286 Sales maximizing 441,442 Screening 11,30 Second-best 8,56,57

Self selection 11,30,32 Separation 187,188 Separation of ownership and control 439,440,445,482,488 Share contract 155,156,157,162,163 Sharecropping 415,430 sharing rule 42,43,283,284,332

incentive 399 rate 62,63

Shirking 16,366,380,381 Siemens 226 Signal 95,98,102,213,215,332 signalling 205,213,218,231,232,233,236,237,247 Simple scenario 298,299 Social risk 54,57,58 Socialization 1 sorting device 11 Sozialstaatsprinzip 477 Span of control 380,381 Spanning (condition) 186,187,188,289 spence-criterion 235 stackelberg, see Von Stackelberg Stakeholder 179,181,191 stopping Time 211 Subcontracting 61,62,320 Submartingale 211 Supreme Court 478,479

Target profit 62 cost 62,72 function 441

Tax 107,111,112,255,267,268,269,270,271 shield 255,257

Team 9,25,392 Technical analysis 206 Threat strategy 416,430 Tournament 393 Transaction costs 444,481,482,487,496 Transversality condition 421,423 True and fair view 320 Type I credit rationing 152,153,154

Underinvestment 287,288,289,297 US 257,268,272

Value of perfect information 8 of auditing 333

Veba 226 Von stackelberg

equilibrium 415,427 leader 390 solution 420,424,433

Von Thunen's wage formula 384

VVage income 182,184,185,187,188,190,191,193 Walrasian goods market 152

price 152 Welfare economics 402 West-Germany 257,282,293,294,299

533

Springer -Verlag Berlin Heidelberg New York London Paris Tokyo

G. Bamberg, K. Spremann (Eds.)

Capital Market Equilibria 1986. 4 figures, 12 tables. X, 228 pages.

ISBN 3-540-16248-8

Contents: G. Bamberg, K. Spremann: Prologue. - G. Bam­berg: The Hybrid Model and Related Approaches to Capi­

tal Market Equilibria. - V. Firchau: Portfolio Decisions and Capital Market Equilibria under Incomplete Information. -R. Geske, S. Trautmann: Option Valuation: Theory and Empirical Evidence. - B. Rudolph: The Value of Security Agreements. - E. Schwartz, M. Brennan: Asset Pricing in a

Small Economy: A Test of the Omitted Assets Model. -

K. Spremann: The Simple Analytics of Arbitrage. - About Contributors. - Author Index. - Subject Index.

This book contains introductory surveys and research

results on the following six basic issues of modem busi­ness finance: decision-theoretic approaches to capital market equilibria, portfolio decisions under incomplete information, option valuation (theory and empirical evi­dence), the value of security agreements, asset pricing and

testing, and arbitrage analysis. The aim of this book is to bridge the gap between text­books and professional journals in the field of business finance. The volume covers modem concepts such as hete­rogeneous and incomplete information, arbitrage theory, and contracting on security agreements, which are rarely found in textbooks. Furthermore, the topics of the book were selected in order to give a sound and diversified presentation of current lines of knowledge in the theory of business finance. The book reflects the cooperation between eight authors from the USA, Canada, and West Germany.