A mathematical model of competitive selection of the applicants for a post is considered. There are N applicants of similar qualifications on an interview list. The applicants come in a random order and their salary demands are distinct. Two managers, I and II, will interview them one at a time....

We introduce a closed form behavioural stochastic Arrow-Pratt risk process, decomposed into discrete asymmetric risk seeking and risk averse components that run on different local times in ϵ-disks centered at risk free states. Additionally, we embed Arrow-Pratt (“AP”) risk measure in a...