Demand response (DR) can be very useful for an industrial facility, since it allows noticeable reductions in the electricity bill due to the significant value of energy demand. Although most industrial processes have stringent constraints in terms of hourly active power, DR only becomes...

In this paper a new Bayesian approach is proposed to test a point null hypothesis based on the deviance in a decision-theoretical framework. The proposed test statistic may be regarded as the Bayesian version of the likelihood ratio test and appeals in practical applications with three desirable...

Several management accounting studies have investigated the behavioural impact of evaluative style, a concept that generally refers to the manner in which supervisors use accounting information to evaluate the performance of subordinates. Although most studies study this behavioural impact at...

In the rational choice problem Zutler (2011) proposed a model of choice by continuous Markov random walk on a set of alternatives to find the best. In this paper we investigate the optimal properties of obtained solutions. It is shown that the result of this choice is the maximal element on a...

We report experimental findings about subjects’ behavior in dynamic decision problems involving multistage lotteries with different timings of resolution of uncertainty. Our within-subject design allows us to study violations of the independence and dynamic axioms: Dynamic Consistency,...

Empirical research often requires a method how to convert a deterministic economic theory into an econometric model. A popular method is to add a random error term on the utility scale. This method, however, ignores stochastic dominance. A modification of this method is proposed to account for...

Railway interlocking systems are apparatuses that prevent conflicting movements of trains through an arrangement of tracks. A railway interlocking system takes into consideration the position of the switches (of the turnouts) and does not allow trains to be given clear signals unless the routes...

An inspection game models a conflict situation between an inspector and an inspectee. The mathematical analysis aims to generate optimal behavior of the inspectee under the assumption that an undesirable action of the inspectee could otherwise be carried out strategically. In this paper the...

I analyze optimal natural resource use in an intergenerational model with the risk of a catastrophe. Each generation maximizes a weighted sum of discounted utility (positive) and the probability that a catastrophe will occur at any point in the future (negative). The model generates time-...

An important reason why people violate expected utility theory is probability weighting. Previous studies on the probability weighting function typically assume a specific parametric form, exclude heterogeneity in individual preferences, and exclusively consider monetary decision making. This...