Closed sets of finitely-additive probabilities are statistical laws of statistically unstable random phenomena. Decision theory, adapted to such random phenomena, is applied to the problem of valuation of European options. Embedding of the Arrow-Debreu state preference approach to options pricing into decision theoretical framework is achieved by means of considering option prices as decision v...

the main objective of this article is to present a comparative study of capital assets pricing models (capm) with extrapolating capital assets pricing models (x-capm) of companies admitted in tehran exchange market which is accomplished for the first time by investigators of this research in iran. accordingly, the statistical population under study of this research includes all companies admitt...

This paper considers advertising, collection and pricing decisions simultaneously for a closed-loop supplychain(CLSC) with one manufacturer(he) and two retailers(she). A multiplicatively separable new demand function is proposed which influenced by pricing and advertising. In this paper, three well-known scenarios in the game theory including the Nash, Stackelberg and Cooperative games are expl...

In an asset-pricing model calibrated to match the standard asset pricing empirical properties –in particular, the time-variation in the equity premium – we calculate the welfare (value) implications of sub-optimal capital budgeting decisions. Specifically, we calculate that an investment policy that ignores the timevariation in the equity premium, such as would occur with a cost of capital foll...

Advances in technology enable sellers to price discriminate based upon a customer’s revealed purchasing intentions. E-tailers can track items already in a “shopping cart” and item level RFID tags enable retailers to do the same in bricks and mortar stores. As retailers attempt to leverage the information made available from these technologies, it is important to understand how this new visibili...

Consumer review systems have become an important marketing communication tool through which consumers share and learn product information. This paper aims to analyze the review system design as firms’ strategic decision to facilitate consumer sharing and learning about their products. We show that firms’ optimal pricing and review system design decisions critically depend on contextual characte...

This paper presents polynomially solvable stochastic models to tackle the Vehicle Sharing System (VSS) pricing problem. We focus on optimizing the average number of trips sold with static demands, infinite station capacities and null transportation times. The stochastic VSS pricing problem is modeled as a closed queuing network with infinite buffers and continuous controls on transition rates f...

Designing a global pricing strategy for a new pharmaceutical product has become increasingly difficult as geographic reference pricing and parallel trade have introduced global price interdependencies between different nations. What may have been an optimal pricing strategy in a single country may no longer be optimal when considering the international ramifications of this price. The prices se...

Concepts of constant absolute risk aversion and constant relative risk aversion have proved useful in the analysis of choice under uncertainty, but are quite restrictive, particularly when they are imposed jointly. A generalization of constant risk aversion, referred to as invariant risk aversion is developed. Invariant risk aversion is closely related to the possibility of representing prefere...