1  2  For example, Erik Brynjolfsson and Shinkyu Yang, “The Intangible Costs and Benefits of Computer Investments: Evidence from the Financial Markets,” MIT Sloan School, mimeo, April 1999. The Financial Accounting Standards Board (FASB) will require that the cost of repricing of options be charged against income starting later this year.
BIS Review 90/1999  2  The translation of value judgments into market prices is, of course, rooted in how people discount uncertain future outcomes. An individual’s degree of risk aversion may vary through time and possibly be subject to herd instincts. Nonetheless, certain stable magnitudes are inferable from the process of discounting of future claims and values.