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Online portfolio selection focuses on maximizing cumulative wealth and outputs a portfolio in each period. Anticor is a state-of-the-art algorithm in this area, but the similarity calculation method between long-period time series of different assets in the Anticor algorithm cannot effectively reflect the correlation of long-period time series with different stocks. The new algorithm(Anticor-DTW) proposed in this paper improves the original similarity distance calculation method of the algorithm by introducing dynamic time warping(DTW), which can identify similar shapes and spatial differences between different series by aligning the shortest paths. We not only simulated Anticor-DTW and Anticor on four classic stock datasets, NYSE(N), NYSE(O), TSE, and MSCI but also conducted experiments on new untested stock datasets HuShen300 and NASDAQ. All experiments indicated that Anticor-DTW outperforms Anticor. Moreover, we conducted a transaction costs experiment with exponential Ornstein-Uhlenbeck process, and the result also proved the great practicability of the Anticor-DTW algorithm in the real asset market. [ABSTRACT FROM AUTHOR]

• We revisit the question of whether investors can benefit from consensus recommendations of stock market analysts in US equity markets. • To examine the profitability net of transactions cost, we calculate various measures of transactions costs and find that transactions costs has declined significantly from 2001 when decimal stock quotes started. • The strategy of purchasing strong buy stocks and selling strong sell stocks earns the annualized abnormal returns of 4.7–5.8% during the period of 2001–2016, even after accounting for transactions cost. • Strong buy stocks behave like growth firms and short-term winners while strong sell stocks do like value firms and short-term losers. • We discuss our finding in the context of market efficiency. This paper revisits the question of whether investors can benefit from consensus recommendations of stock market analysts in US equity markets. To examine the profitability net of transactions cost, we calculate several measures of transactions costs based on effective tick spreads and others. We find that transactions cost becomes noticeably lower from 2001 and the strategy of purchasing 'strong buy' stocks and shorting 'strong sell' stocks yields the abnormal returns of 4.7–5.8% per year during the period of 2001–2016, even after accounting for transactions cost. We also find that 'strong buy (sell)' stocks are growth (value) firms and short-term winners (losers). We discuss our empirical results in the context of market efficiency. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to open new horizons for decision-making and resource allocation system in Iran in order to meet the national development goals. To this end, we have relied on theoretical framework of institutionalism and the important finding of historical institutionalists that “History of development is the economic history of institutional innovations that reduce transactions cost” to analize underlying factors of institutional changes and significant role of government and historical context in path of institutional innovations of reducing transaction cost and features of said innovations that result in development and reduction of transaction cost in developed societies. Also,by referring to the economic history of our country, we have tried to render and study important evidence of prominent achievements to reduce transactions cost. To achieve such purpose, we have presented two samples of said innovations in post-revolution Iran "clarification of costs and sources that are based on dollar unit " and "clarification of foreign trade rules" and we have compared the situation before and after these innovations. The result of this research indicates that in the context of the political economy of Iran, it is possible to increase the speed of realization of national development goals trough institutional innovations of increasing opportunity cost for rent seeking and drowing up manufacturers’s trust.

This study examines the role of perceived risk and access device type on consumers' on-line purchase decisions. We use a two-step hurdle approach to estimate consumer behavior. In the first step, the decision of whether to engage in eCommerce is estimated and in the second step, how many orders to place is estimated. We use a large multi-year survey sample of households from Canada's national statistical agency-Statistics Canada. The sample size is such that we are able to conduct sub-sample analysis of PC-only users, mobile-only users, and other-users. We show that online security and price significantly influence mobile eCommerce. We also show that there is a statistically significant difference in the intensity of eCommerce engagement across device type and consumer risk type (high/low). One of our main findings is that perceived risk affects purchase decisions for mobile users more than PC users, however additional comparisons are carried out with our analysis. [ABSTRACT FROM AUTHOR]

The EU Emissions Trading System (EU ETS) is the cornerstone of the European Union's climate policy and covers just under half of the EU's greenhouse gas emissions. More than ten years since the EU ETS was first introduced, there continues to be substantial research interest regarding its functioning and the behavior of participating companies. DIW Berlin conducted three econometric studies based on microdata at company and/or installation level. The findings suggest that, overall, there are only minor distortions in the behavior of companies regulated by the EU ETS. However, the studies also show that small companies exhibit distinctive behavior which could result in inefficiencies. For instance, during Trading Phase I, small companies participated less actively in trading allowances than companies with a higher turnover. Moreover, the emissions produced by small power plants depend, to a certain extent, on the allocation rules. Small companies also often fail to take full advantage of the cost reduction potential of international offset credits: for a total of 22 percent of all companies (predominantly small emitters), an average of 31,000 euros in cost reduction potential remained unused. The barriers causing this loss may be interpreted as fixed transaction costs. For further ex-post analyses, the timely provision of user-friendly emissions trading data at the installation level would be very beneficial. [ABSTRACT FROM AUTHOR]

Ronald Coase's work presents a continuing challenge to the established neoclassical paradigm. His incorporation of transactions cost into economic theory enables many questions of organisational structure to be addressed but also implies a world of continuing evolutionary change rather than static equilibrium. This article reviews some of Coase's most influential papers and considers their implications for the future of public policy and economic theory. [ABSTRACT FROM AUTHOR]

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We examine the determinants of corporate cash holdings in Australia and the impact on shareholder wealth of holding excess cash. Our results show that a trade-off model best explains the level of a firm's cash holdings in Australia. We find that 'transitory' excess cash firms earn significantly higher risk-adjusted returns compared to 'persistent' excess cash firms, suggesting that the market penalises firms that hoard cash. The marginal value of cash also declines with larger cash balances, and the longer firms hold on to excess cash. The results are consistent with agency costs associated with persistence in excess cash holdings. [ABSTRACT FROM AUTHOR]

The question of whether or not the agricultural sector should be covered in a GHG ETS is prominent in policy debates surrounding the design and implementation of such proposed schemes in many developed nations. This paper identifies two key economic elements that determine both the costs and the benefits of mandating agriculture in an ETS. These are: the costs of reducing GHG emissions in agriculture, and the transactions costs pertinent to covering agriculture in an ETS. Published data on these elements is used to derive a likely range of the overall social costs of mandating the agricultural sector in a GHG ETS. Current indicators of those costs for agriculture, and for the other sectors of the economy, do not offer evidence that mandating agriculture in an ETS would be socially beneficial. Alternative approaches to engaging the agricultural sector in GHG emission reduction, e.g. through voluntary opt-in or through offsetting credits, are likely to be more beneficial. [ABSTRACT FROM AUTHOR]

Business groups play an important role in emerging economies. The transactions cost perspective, which has dominated our understanding of such groups, argues that the emergence of business groups is a natural response to market failures in developing countries. In this paper, we propose an alternate theoretical perspective – the rent-seeking view – that takes these groups as engaging in coordinated lobbying for the capture of rents created by governments. We develop and implement an empirical strategy to test for the rent-seeking view drawing from the property rights theory of corporate finance. We find strong empirical support for the rent-seeking view using a large cross-sectional data-set of firms in India. [ABSTRACT FROM AUTHOR]

Discretely rebalanced options arbitrage strategies in the presence of transaction costs have path dependent returns that are difficult to model analytically. I instead use a quasi-analytic procedure that combines the computational efficiency of analytical solutions with the flexibility of simulations. The central feature is the estimation of the distribution of returns of the arbitrage strategy by mapping simulated returns percentiles and the input parameter set. Using the estimated density, I evaluate the tradeoff between transaction costs and risk exposure under generalized transaction costs structures that includes bid-ask spread and brokerage commission. I show that the optimal strategy depends on transaction costs, volatility, and option moneyness. Strategies such as rebalancing when the hedge ratio changes by 0.25, balances transaction costs and risk exposure, and can be optimal. [ABSTRACT FROM AUTHOR]

Contracting is a contentious issue in agriculture. Competing theories assert that risk or transactions cost drive contracting decisions, with some argument that autonomy also plays a role. We examine preferences for different contract attributes using a choice-based conjoint experiment. Results of a study of agricultural producers show that both risk and transactions cost play a role in contracting decisions. Autonomy also plays a role, especially to the extent that producers wish to avoid total loss of autonomy. These results suggest that the effects of risk and transactions cost are relative and should both be considered when analyzing contracting decisions. [ABSTRACT FROM AUTHOR]

The transactions cost approach and the functional approach are two typical approaches to the design of marketing channels in an international context. While the transactions cost approach has been adopted very often and hasmany empirical supports, the functional approach has not yet attracted much empirical research interest in spite of its long history and applicability. This study combines these two approaches, which have been used separately in previous researches, and empirically tests the combined approach using a sample of foreign-owned firms in the Korean market. Using a single logit model, this study found that the combined approach could explain a firm's selection between an integrated channel and an independent outside distributor in a foreign market. [ABSTRACT FROM PUBLISHER]