Transshipment is an effective method for reducing mismatches between supply and demand among retailers. Consumers attempting to purchase out-of-stock items may wait for transshipment, purchase at another store, or choose not to buy. In this paper, the consumer behavioral heterogeneity is...

Empirical studies show that the most successful continuous-time models of the short term rate in capturing the dynamics are those that allow the volatility of interest changes to be highly sensitive to the level of the rate. However, from the mathematics, the high sensitivity to the level...