In a problem of decision making under uncertainty, the payoff is random, obeying some probability distribution. The distribution depends upon both the problem faced and the action taken by the decision maker. For example, in the selection of a portfolio, funds are allocated among securities,...

A problem of optimal machine maintenance policy is studied. The value of the machine's output is independent of age, but the natural probability of machine failure increases with age. Preventive maintenance can be applied to reduce the probability of machine failure (but a failed machine can...

We propose a model in which subcontracting can be explicitly considered as a production planning strategy. Possible market and nonmarket subcontracting mechanisms and their costs are discussed. We show that a class of feasible subcontracting mechanisms in which firms coordinate their production...

This is a study of the economic behavior of vendors of service in competition. A simple model with two competing exponential servers and Poisson arrivals is considered. Each server is free to choose his own service rate at a cost (per time unit) that is strictly convex and increasing. There is a...