The maximum entropy principle can be used to assign utility values when only partial information is available about the decision maker’s preferences. In order to obtain such utility values it is necessary to establish an analogy between probability and utility through the notion of a utility...

Solutions to a series of apparent paradoxes arising in problems dealing with resources allocation under mutually altruistic conditions are presented. In particular, Bergstrom's lovers’ dilemma (J. Econ. Perspect. 3 (1989) 165) is dealt with as an explicit example of such apparent paradoxes....

Many researchers and industrial professionals recognize new product development (NPD) as a potential alternative for improving and sustaining competitive position in the market and made attempt to identify factors and variables that contribute to the capability of a firm in new product...

This paper employs numerical means to examine: (i) the expected return-beta plot in power utility Linear Risk Tolerance (LRT) economies, and (ii) whether, in the power utility economies, a valuation equation containing covariance and coskewness terms might better explain expected returns than...

The linear plus exponential utility function has received increasing attention of late as a particularly attractive family for evaluating additive gambles for wealth. In addition to its ability to reflect increasing appreciation for money, risk aversion, and decreasing risk aversion, it is...

With the increased awareness of productivity problems in healthcare operations, many researchers have proposed the implementation of tools and methods developed in other fields to benefit healthcare delivery. Accordingly, we present in this paper an exploratory work using a hypothetical example...

We provide an economic interpretation of the practice consisting in incorporating risk measures as constraints in a classic expected return maximization problem. For what we call the infimum of expectations class of risk measures, we show that if the decision maker (DM) maximizes the expectation...

Effective coordination is a hallmark of successful supply chain management. Without such coordination, vendors and buyers will act independently to make decisions that optimize their own objectives (e.g., maximize their respective profits or minimize their costs). This non-coordinated approach...