The focus of this paper is to analyze the effect that ambiguity will have on the buyer's reservation price and the value of the option to purchase the durable good with an embedded option to resell it. The agent is assumed to be risk neutral and ambiguity averse. The problem is formulated as an...

Adjustable Robust Optimization (ARO) yields, in general, better worst-case solutions than static Robust Optimization (RO). However, ARO is computationally more difficult than RO. In this paper, we derive conditions under which the worst-case objective values of ARO and RO problems are equal. We...

In this paper we propose a methodology for constructing decision rules for integer and continuous decision variables in multiperiod robust linear optimization problems. This type of problems finds application in, for example, inventory management, lot sizing, and manpower management. We show...

We consider decision making problems under uncertainty, assuming that only partial distributional information is available - as is often the case in practice. In such problems, the goal is to determine here-and-now decisions, which optimally balance deterministic immediate costs and worst-case...

In this paper we consider ambiguous stochastic constraints under partial information consisting of means and dispersion measures of the underlying random parameters. Whereas the past literature used the variance as the dispersion measure, here we use the mean absolute deviation from the mean...

We construct a theoretical model of labor markets with human capital accumulation to understand and quantify the earnings losses for young workers generated by unemployment: unemployment represents time forgone in terms of human capital accumulation, which adversely affects long-term income...

We use a novel data set on firm vacancies and job seekers from a Mexican government job placement service to analyze whether changes in matching frictions can explain the large and persistent increase in Mexican unemployment after the 2008 global financial crisis. We find evidence of a...

Using administrative data from the Spanish Social Security Administration, we analyse the nature and stability of job matches starting during the economic boom in 2005 and during the recession in 2009. We compare the individual, job and firm characteristics in the two samples and estimate a...

This paper examines whether unemployment of non-western immigrant workers in the Netherlands was disproportionally affected by the Great Recession. We analyze unemployment data covering the period November 2007 to February 2013 finding that the Great Recession affected unemployment rates of...

In an experimental setting some Danish unemployed workers were assigned to an activation program while others were not. Unemployed who were assigned to the activation program found a job more quickly. We show that the activation effect increases with the distance between the place of residence...