In this paper, we examine the joint consumption-portfolio decision of an agent with limited information-processing capacity (rational inattention or RI) in the sense of Sims (2003) within a non-linear-quadratic (non-LQ) setting. Our model predicts that, as processing capacity falls, agents...

This paper explores a class of Stackelberg differential games in which the open-loop strategies of the leader satisfies time consistency. We show that in this class of games the open-loop equilibrium coincides with the corresponding feedback equilibrium. The analytical framework used in this...

This paper studies models where the optimal response functions under consideration are non-increasing in endogenous variables, and weakly increasing in exogenous parameters. Such models include games with strategic substitutes, and include cases where additionally, some variables may be...

Exploitation of non–renewable resources is an intensively studied field of environmental economics in the last century. Since the influential Hotelling’s paper a huge progress is made in the depletable resources literature. Although a variety of methodologies is used in that problem’s...

Our paper presents an original method named The Optimum Limit of the Profitability (O.L.P.), for the characterization of the optimum physical output for one enterprise. On our research paper for the definition of this concept we have started with the exploration of the mathematical models which...

Replacing a real process which we are concerned in with other more convenient for the study is called modeling. After the replacement, the model is analyzed and the results we get are expanded on that process. Mathematical models being more abstract, they are also more general and so, more...

Any linear programming problem marked as P and called ”primal” can be seen in connection with another linear programming problem marked as D and called ”dual”. The economic interpretation of the dual model brings about new information when analyzing such phenomena and when substantiating...

This study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating banks’ performance issues from a potential merger. By using a sample of 29 Greek commercial banks the paper provides a six step procedure in order to evaluate...

This paper studies models where the optimal response functions under consideration are non-increasing in endogenous variables, and weakly increasing in exogenous parameters. Such models include games with strategic substitutes, and include cases where additionally, some variables may be...

In this paper the issue of mathematical programming and optimization has being revisited. The theory of optimization deals with the development of models and methods that determine optimal solutions to mathematical problems defined. Mathematical model must be some function of any solution that...