In standard models of experimentation, the costs of project development consist of (a) the direct cost of running trials as well as (b) the implicit opportunity cost of leaving alternative projects idle. Another natural type of experimentation cost, the cost of holding on to the option of...

We consider a sequential decision problem where the decision maker is informed of the actual payoff with delay. We introduce a new condition, which generalizes the condition given by Blackwell and ensures that the decision maker can approach a fixed closed and convex set under delay. We show how...

In this paper, the origins and development of behavioural economics, beginning with the pioneering works of Herbert Simon (1953) and Ward Edwards (1954), is traced, described and (critically) discussed, in some detail. Two kinds of behavioural economics – classical and modern – are...

This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors' information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the...

We assume that an impatient decision maker (DM) runs variable-size experiments at an increasing, strictly convex cost before choosing an irreversible action. We introduce and solve a tractable continuous time version of this problem - a control of variance of a diffusion with uncertain mean....

Trust and trust management represent the very foundations of Computer and Network Security Protocols enabling all cyber activities. The recent spate of national and global high-impact cyber security compromises threats, vulnerabilities and exposures leads to fundamental questioning of trust as...

What is the origin of Strategic Management leading towards national Welfare planning, development and optimisation all over the World? This question opens a "Pandora's Box". It is significant that it is a key question to open up the knowledge of a world of ignorance, with some believing that...

We assume that an impatient decision maker (DM) runs variable-size experiments at an increasing, strictly convex cost before choosing an irreversible action. We introduce and solve a tractable continuous time version of this problem --- a control of variance of a diffusion with uncertain mean....

This paper deals with the problem of the cost of uncertainty associated with the utility maximization problem in a complete market with multiple risky assets and unobservable dividends. This leads naturally to a partial information setup from which filtering techniques can be applied. Using a...

This paper introduces a flexible method based on dynamic programming to calculate the quantitative value of any approach to managing the innovation process. The quantification lets managers precisely compare the values of different approaches, and so identify those that are optimised for their...