Our last example differs from those above, because it involves a situation where the defendant holds information that affects the plaintiff's

expected payoff at trial but not his own.

Thus, the social cost of financial distress is the

expected payoff in case of bankruptcy.

The main difficulty with operationalizing this equation and connecting it to the economy is that the LTD

expected payoff, LTD payments, and expected future wealth for the whole economy, its sectors, or even an individual are unobservable.

Similarly, a good borrower will enter the match, if and only if, his

expected payoff from entering the match equals or exceeds [R.

liability rules: Multiple rounds of potential takings keep the laundry's

expected payoff constant (at $50) and systematically reduce risk.

i](k) denote the

expected payoff of player i if he leads and chooses k and let [[DELTA].

This difference of focus is meaningful because, although both an increase in the audit probability or outside sanction reduces the

expected payoff when cheating, the effects are not identical.

This would give depositors an

expected payoff of 0.

The model assumes that R and D investments depend upon the expected value of an invention: this itself is a function of expected premium if the innovation is patented, assuming that the firm will choose to patent optimally (that is, only if the

expected payoff from patenting an invention is greater than the expected cost).

Delta]E - [Delta][Pi], where [Delta]E is the change in

expected payoff resulting from experiment Y, [Mathematical Expression Omitted] and [Delta][Pi] as the corresponding change in risk premium [Mathematical Expression Omitted]

One loan is not

expected payoff at maturity and incurred a loss when compared to Fitch's stressed value.

We show that, in equilibrium, the delegate hired by the higher-valuation player chooses his effort level after observing his counterpart' s, and his

expected payoff is greater than that of his counterpart.