We study the problem of jointly optimizing the price and order quantity for a perishable product, also known as the pricing-newsvendor problem. We consider the case with demand ambiguity where the demand is a function of the price and an uncertain factor, of which only the support information is...

Risk Adjusted Return On Capital (RAROC) is a loan-pricing criterion that has become increasingly prevalent in the banking industry since the 1990s. Under RAROC, a bank sets the loan term such that a certain rate of return is achieved on the regulatory capital required by the Basel capital...