Indirect Evolution and Aggregate-Taking Behavior in a Football League: Utility Maximization, Profit Maximization, and Success

Ownership Structure, Profit Maximization, and Competitive Behavior

We question the broad applicability of the assumption of profit maximization as the goal of the firm and investigate how variance in objective functions across different ownership structures affects competitive behavior. While prior work in agency theory has argued that firms may fail to engage in profit maximizing behaviors due to misalignment between the goals of owners and managers, we conte...

Customer Selection and Profit Maximization

Profit Maximization and Supermodular Technology

A dataset is a list of observed factor inputs and prices for a technology; profits and production levels are unobserved. We obtain necessary and sufficient conditions for a dataset to be consistent with profit maximization under a monotone and concave revenue based on the notion of cyclic monotonicity. Our result implies that monotonicity and concavity cannot be tested, and that one cannot deci...

Utility Maximization and Duality

In an arbitrage free incomplete market we consider the problem of maximizing terminal isoelastic utility. The relationship between the optimal portfolio, the optimal martingale measure in the dual problem and the optimal value function of the problem is described by an BSDE. For a totally unhedgeable price for instantaneous risk, isoelastic utility of terminal wealth can be maximized using a po...

Profit Maximization in Cloud Computing

Cloud computing is a novel paradigm for the provision of computing infrastructure, which aims to shift the location of the computing infrastructure to the network in order to reduce the costs of management and maintenance of hardware and software resources. To maximize the profit, a service provider should understand both service charges and business costs. Our pricing model takes such factors ...