ARCH

Autoregressive Conditional Heteroskedasticity (ARCH) is a model of dynamic heteroskedasticity where the variance of the error term, given past information, depends linearly on the past squared errors.

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Search costs
Costs associated with locating a counterparty to a trade, including explicit costs (such as advertising) and implicit costs (such as the value of time).

Hierarchy
The levels of management within a business organisation, from the lowest to the highest.

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Agent

The decision-maker in a principal-agent relationship.


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