Abstract: This paper determines the optimal timing of dike heightenings as well as the corresponding optimal dike heightenings to protect against floods. To derive the optimal policy we design an algorithm based on the Impulse Control Maximum Principle. In this way the paper presents one of the...

This paper defines models of cooperation among players partition- ing a completely divisible good (such as a cake or a piece of land). The novelty of our approach lies in the players' ability to form coalitions before the actual division of the good with the aim to maximize the average utility...

The paper addresses the following question: how efficient is the market system in allocating resources if trade takes place at prices that are not necessarily competitive?Even though there are many partial answers to this question, an answer that stands comparison to the rigor by which the first...

Conventional wisdom tells us that with no market failure and local non-satiation of preferences, the core is at least as large as the collection of competitive equilibrium allocations.We con.rm this for a standard model featuring land.Next we consider the public land ownership version of the...

The division of a cake by n players is modeled as a game of timing. We show that such games admit a unique Nash equilibrium.

We consider the allocation of a finite number of indivisible objects to the same number of agents according to an exogenously given queue.We assume that the agents collaborate in order to achieve an efficient outcome for society.We allow for side-payments and provide a method for obtaining...

In this paper we present an axiomatic analysis of several ranking methods for tournaments. We find that two of them exhibit a very good behaviour with respect to the set of properties under consideration. One of them is the maximum likelihood ranking, the most common method in statistics and...

The paper investigates the incentive effects of performance-vested stock options (PVSOs) in aligning management interests with shareholder wealth. Performance targets attached to option vesting would prevent executives from receiving rewards from outcomes that are unaffected by their effort.Such...

This paper considers the impact of investment cost asymmetry on the value and optimal real option exercise strategies of firms under imperfect competition.Both firms have an opportunity to invest in a project enhancing (ceteris paribus) the profit now.We show that three types of equilibria exist...