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The economic reliability of a performance metric depends on its consistency with the Net Present Value (NPV). We use the new notion of strong NPV-consistency for comparing the Straight-Line rate of return (belonging to the class of AIRR metrics) and the traditional Internal Rate of Return (IRR)....
Persistent link: https://www.econbiz.de/10012855417
approximation theory, we show that market shares converge to an equilibrium. We also derive the market shares at equilibrium in …
Persistent link: https://www.econbiz.de/10014180550
Owing to a variety of factors, the total forage consumed by grazing animals on a rangeland is a random variable. Although this fact has been recognized in the extant literature, to the best of our knowledge, there are no studies that have analyzed the statistical properties of this random...
Persistent link: https://www.econbiz.de/10014048330
Owing to a variety of factors, the total forage consumed by grazing animals on a rangeland is a random variable. Although this fact has been recognized in the extant literature, to the best of our knowledge, there are no studies that have analyzed the statistical properties of this random...
Persistent link: https://www.econbiz.de/10014048478
One of the challenging issues in developing analytical tools to assist the multi-product (item) procurement decisions is how attributes (features) of products can be accommodated to address the substitution effect. It is challenging because the historical sales data seldomly captures whether a...
Persistent link: https://www.econbiz.de/10013491647
In confidence theory, the decision maker relies on statistical regularities from the economic environment to adopt … formation in choice under risk. Three novel experiments are presented that demonstrate the ability of the new theory to explain … confidence theory is an elaboration of Viscusi's prospective reference theory and accounts for the robust violations of expected …
Persistent link: https://www.econbiz.de/10013061467
Inventory management for a new product is challenging due to the lack of historical data, and sales data cannot fully capture the actual demand as excess demand is usually unobservable. Meanwhile, demand-related features are available in the era of big data. We study how to determine the...
Persistent link: https://www.econbiz.de/10014344544
We propose a dynamic framework for durable-goods with consumers who have different valuations and an arbitrary number of firms which compete in quantities in each period. Consumers' ability to behave strategically about the timing of consumption differs in the three environments that we analyze....
Persistent link: https://www.econbiz.de/10014345066
We consider the dynamic pricing problem a monopolistic seller faces when customers arrive in heterogeneous time periods and their purchase decisions are affected by reference prices formed from their past purchase experiences. We illustrate that a new form of price discrimination opportunity...
Persistent link: https://www.econbiz.de/10013034142
Many studies in operations management started to explicitly model customer behavior. However, it is typically assumed that customers are fully rational decision-makers and maximize their utility perfectly. Recently, modelling customer bounded rationality has been gaining increasing attention and...
Persistent link: https://www.econbiz.de/10012959968