Toward the late 1990s, several research groups independently began developing new, related theories in mathematical finance. These theories did away with the standard stochastic geometric diffusion "Samuelson" market model (also known as the Black-Scholes model because it is used in that most...

This paper investigates the issue of channel coordination for a two-stage supply chain with one retailer and one manufacturer. The demand is influenced by the retailer's sales effort and manufacturer's quality improvement efforts. We found that using the traditional two-part tariff contract...

As policy makers seek to draw lessons from the growth of Chinese manufacturing, we need to better understand the evolving strategies adopted by Chinese manufacturers since the economic reforms of the 1980s. Focusing on the apparel and electronics sectors, we look at how Chinese manufacturers...

This paper tests whether strategic uncertainty employs circuits in the brain that encode risk and utility, or circuits that are involved in Theory of Mind (ToM). We compare participants’ decisions in a stag-hunt game with an equivalent choice between Bernoulli lotteries where the probabilities...

Emission trading schemes such as the European Union Emissions Trading System (EUETS) attempt to reconcile economic efficiency with ecological efficiency by creating financial incentives for companies to invest in climate-friendly innovations. Using real options methodology, we demonstrate that...

In this paper, we study how an informal, long-term relationship between a manufacturer and a retailer performs in turbulent market environments characterized by uncertain demand. We show that the long-term partnership based on repeated interaction is sustainable under price-only contracts when...

Following the original interpretation of the Shapley value (Shapley, 1953a) as a priori evaluation of the prospects of a player in a multi-person iteraction situation, we propose a group value, which we call the Shapley group value, as a priori evaluation of the prospects of a group of players...

Game theory was used to analyze the extraction behavior of fishermen around the Southern Sonkhla Lake in Southern Thailand. The field experiments were designed based on the concept of non-cooperative game theory for investigating fishermen’s behavior in response to four management policy...

How to achieve the innovation is becoming more urgent for the firms, in general, process innovation and product innovation are two primary types of innovation which firms adopt. This paper aims to describe a mechanism on the choice between cost reduction and quality improvement in a duopoly. In...