In the last two decades, Internet technologies, such as cloud computing, mobile communications, social media, and big data analytics, have brought tremendous changes to our society and reshaped the business in various industries. Specifically, the mushrooming innovations in the financial area...

We solve the problem of optimal securitization for an issuer facing heterogeneous investors with arbitrary time and risk preferences. We show that the optimal securitization is characterized by multiple nonlinear tranches, and each investor gets a portfolio of these tranches. In particular, when...

We solve the general problem of optimal risk sharing among a nite number of agents with limited liability. We show that the optimal allocation is characterized by endogenously determined ranks assigned to the participating agents and a hierarchical structure of risk sharing, where all agents...

We study optimal securitization of defaultable assets in a continuous time setting. A financial intermediary can create a portfolio of defaultable assets and then sell it to outside investors. The default risk of the assets in the portfolio is determined by the unobservable costly effort exerted...

Strategic sellers on some online selling platforms have been recently using a conditional-rebate strategy to manipulate product reviews under which only purchasing consumers who post positive reviews online are eligible to redeem the rebate. A key concern for the conditional rebate is that it...

Frequent new product releases pose significant challenges for firms as they manage successive generations of product diffusion. We develop an analytical model to study the effect of different purchase options by strategic consumers on a firm's profit and the firm's strategies for the timing and...

The rapidly growing sharing economy is characterized by improved resource utilization through peer-to-peer transactions. Sharing platforms usually adopt three rental models: long-term, on-demand, and hybrid, where the long-term rental requires full dedication of resources to market over a...

Rapid expansion of e-commerce, along with rising domestic and cross-border payments, has fueled the demand among financial institutions for a cost-effective means to expedite clearing and settlement of low-value retail payments. These are called faster payments settlement systems. Traditionally,...

Many studies have shown that decision tree induction methods could be used to determine rules for expert systems. Pruning techniques are often used to increase the accuracy of an induced decision tree over the instance space. While recent results of decision tree induction show that large...