Providing the foundations needed for managers who have to make decisions in an uncertain and risky environment, Business Risk Management brings together the fundamental ideas of utility theory and at the same time puts them alongside prospect theory which describes how people actually make...

Using the concept of market-distribution functions, we derive general optimality conditions for discriminatory divisible-good auctions, which are also applicable to Bertrand games and non-linear pricing. We introduce the concept of offer distribution function to analyze randomized offer curves,...