João Correia-da-Silva

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The mainstream theory of choice under uncertainty in economics has been assuming that uncertainty faced by economic agents can be represented by a single probability distribution. This means that for economic agents the uncertainty they face is a known unknown, i.e., they have a perfect knowledge about it. However, as rst pointed out by Frank Knight [33],(More)
We study general equilibrium with private and incomplete state verification. Trade is agreed ex ante, that is, before private information is received. It is useful to define a list of bundles as a derivative good that gives an agent the right to receive one of the bundles in the list. Enforceable trade agreements can be described by P i-measurable plans of(More)
We derive a closed-form solution for the price of a European call option in the presence of ambiguity about the stochastic process that determines the variance of the underlying asset's return. The option pricing formula of Heston (1993) is a particular case of ours, corresponding to the case in which there is no ambiguity (uncertainty is exclusively risk).(More)
We study optimal regulation of a monopolist when intrinsic efficiency (intrinsic cost) and empire-building tendency (marginal utility of output) are private information but actual cost (difference between intrinsic cost and effort level) is observable. This is a problem of multidimensional screening with complementary activities. Results are not only driven(More)
The notion of uncertain delivery is extended to study exchange economies in which agents have different abilities to distinguish between goods (for example a car in good condition versus a car in bad condition). In this setting , it is useful to distinguish goods not only by their physical characteristics, but also by the agent that is bringing them to the(More)
The notion of uncertain delivery is extended to study exchange economies in which agents have different abilities to distinguish between goods (for example a car in good condition versus a car in bad condition). Existence of equilibrium is established. Several examples are presented as an illustration. João Correia-da-Silva (joao@fep.up.pt) acknowledges(More)
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