Economic theory presumes that individuals respond to true marginal prices when deciding on the amount of goods and services they buy and many other economic decisions. However, learning about these marginal prices is often costly in terms of search time, cognitive effort or monetary outlays....

The insurance coverage for natural disasters remains low in many exposed areas, particularly in Latin America and the Caribbean. Reduced availability or unaffordability of insurance are commonly identified as the primary causes for this low insurance coverage. The French overseas departments...

We consider a “tenure-clock problem” in which a principal may set a deadline by which she needs to evaluate an agent's ability and decides whether to promote him or not. We embed this problem in a continuous-time model with both hidden action and hidden information, where the principal must...

How to avoid project failures driven by overoptimistic schedules? Managers often attempt to mitigate the duration underestimation and improve the accuracy of project schedules by providing their planners with excessively detailed project specifications. While this traditional approach may be...

We study the maintenance of a machine which deteriorates according to a Markov process until it fails. When failure occurs (which is observable), corrective replacement is made. Otherwise, the machine can be in one of two unobservable working states, and the decision maker can choose production,...

PRECON S.A is a manufacturing company dedicated to produce prefabricated concrete parts to several industries as rail transportation and agricultural industries.Recently, PRECON signed a contract with RENFE, the Spanish National Rail Transportation Company to manufacture pre-stressed concrete...

Establishing realistic project plans and completing the resulting business projects on schedule is crucial for organizations striving to effectively utilize their resources. However, incentivizing on-time project delivery may introduce moral hazard, as people may respond to estimation accuracy...