Languages and cultures are mediums of transmitting information. Their value rests on their ability to lower variable costs in communication. Lower variable cost systems in general entail higher fixed costs. Each culture or language has evolved to adapt to the local environment. As environment...

To investigate the competitive dynamics of dominant-fringe firm competition, this paper considers a new analytical theory of production and competition, which incorporates the relationships amongst fixed costs, variable costs, market uncertainty and product value. In particular, we examine the...

Some recent empirical works indicate that investor performance and market patterns are primarily information driven instead of a behavioral phenomenon. However, Grossman and Stiglitz information theory and its variations offer little guidance in identifying informed investors and in...

Purpose – The paper seeks to develop an analytical theory of project investment. Design/methodology/approach – The authors derive a partial differential equation that the variable cost of a project should satisfy, determine a proper initial condition through a thought experiment, and solve...

We address the twin puzzles of anomalously low returns for high idiosyncratic volatility and high distress risk stocks, documented by Ang, Hodrick, Xing and Zhang (2006) and Campbell, Hilscher and Szilagyi (2005), respectively. We accomplish two objectives in this study. First, we investigate...

In this paper, we address the simultaneous determination of price and inventory replenishment when customers return product to the firm. We examine cases when the quantity of returned product is a function of both the quantity sold and the price, in single and multi-period problems, with and...