The finite horizon cash balance problem with charges levied against the cash balance is considered. Conditions, sufficient to show that a two-sided (s, S) policy is optimal, are given. We consider transactions cost functions which include no fixed costs, and are linear in the amount of change....

The value of information is used to evaluate the worth of a forecast to the recipient. The basic concepts of information economics are augmented by modern Bayesian statistical methods to provide a means of learning about the true, but unknown, information structure and distribution of state...

The stochastic cash balance problem is an inventory problem in which the stochastic cash (or inventory) change can either be positive or nonpositive, and in which decisions to increase or decrease the inventory are permitted at the beginning of each time period. The paper studies problems in...

This paper examines stochastic dominance relations among discrete random variables defined on a common integer domain. While these restrictions are minimal, they lead both to new theoretical results and to simpler proofs of existing one. The new results, obtained for dominance criteria of any...

This paper uses simulation experiments to compare optimal and adaptive decision mechanisms for firms modelled as operating in a duopoly. Optimal decision policies are derived using a dynamic programming approach based on the Cyert-DeGroot (Cyert, R. M., M. H. DeGroot. 1970. Muhiperiod decision...