A new methodology is presented to solve an important model of dynamic decision-making with a continuous unknown parameter (or state). The methodology centers on the concepts of “continuation-value function” (which gives the expected value-to-go as a function of the parameter under a feasible...

Reducing greenhouse gas (GHG) emissions is an ongoing and increasingly urgent policy agenda in China, particularly in light of external pressure from international negotiations and the internal drive to enhance energy efficiency. The legal and policy developments with respect to GHG emissions in...

Problems concerning dynamic learning and decision-making are difficult to solve, especially analytically. We study an infinite-horizon discrete-time model with a constant unknown state that has two possible values and strive to derive an analytical solution. As a special partially observable...

This paper uses a real options approach to analyze investments in process improvement. We develop a simple, stochastic model of a firm making investment decisions in process improvement. Our analysis offers several interesting insights into investments in process improvement. First, early...

With the proliferation of digital social networks and social media like Facebook, Twitter, and Instagram, businesses increasingly used referral programs to increase market exposure and sales. We study the interactions between social learning and referral programs and examine their impact on...