We argue that the complex interactions of competitive heterogeneous firms lead to a statistical equilibrium distribution of firms? profit rates, which turns out to be an exponential power (or Subbotin) distribution. Moreover, we construct a diffusion process that has the Subbotin distribution as...

The principles of smooth and continuous pasting play an important role in the study of optimal stopping problems with jump processes. These principles state that the optimal stopping boundary is selected so that the value function is smooth and continuous, respectively (depending on the behavior...

Let X1, X2, . . . be i.i.d. with finite mean (formula). For (formula) we consider the stopping times Tc (formula) with overshoot (formula). For (formula) we give a bound for (formula) in the spirit of Lorden's well-known inequality for f = 0

In the standard models for optimal multiple stopping problems it is assumed that between two exercises there is always a time period of deterministic length $\delta$, the so called refraction period. This prevents the optimal exercise times from bunching up together on top of the optimal...