作者：SNELL, A; TONKS, I
作者单位：University of London; London School Economics & Political Science
摘要：This paper investigates the determinants of price quote revisions on the London Stock Exchange for a sample of highly liquid stocks over a two-week settlement period in September 1990. In our theoretical model the level of optimal price quotes set by market makers are a function of the expected fundamental price, the expected number of liquidity trades and the lagged level of inventories. The model is used to test for the existence of adverse selection, inventory control and anticipated liquid...
作者：MOOKHERJEE, D; PNG, IPL
作者单位：Hong Kong University of Science & Technology; University of California System; University of California Los Angeles
摘要：We study the optimal compensation policy for a corruptible inspector, charged with monitoring pollution from a factory. Our utilitarian approach focuses on the trade-off among corruption, pollution, and enforcement effort. Owing to the strategic interaction between factory and inspector, changes in compensation policy have surprising effects, e.g., raising the penalty for corruption may cause pollution to increase. We find that bribery is an inefficient way of encouraging the inspector to moni...
