We introduce and analyze an inter-temporal choice model where customer valuations are uncertain and evolve over time. The model leads directly to the study of call options on capacity that are similar to partially refundable fares. We show that the capacity provider earns significantly higher revenues by selling real options on capacity than low-to-high pricing. We also investigate the social i...

A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is partially motivated by neurophysiological evidence. The optimal information-constrained model is found to offer a better...

This paper studies the Gaussian wiretap channel with correlated sources available not only at the transmitter and legitimate receiver, but also the eavesdropper. In particular, we are interested in the open problem of finding the optimal auxiliary random variable, which provides a closed-form solution to the secret-message and secret-key capacity region. To do that, we first take a deterministi...

In this paper we employ a stated preference environmental valuation technique, namely the choice experiment method, to estimate local public's willingness to pay (WTP) for improvements in the capacity and technology of a sewage treatment plant (STP) in Chandernagore municipality, located on the banks of the River Ganga in India. A pilot choice experiment study is administered to 150 randomly se...

wetlands as a situ for the growth of native plants, as a habitat for certain species of fish and aquatic birds, and because of their potential economic, cultural and recreational services, are valuable heritage so their protection and conservation is very essential. mostly due to the absence of wetlands services’ valuation, lack of special regulations, and lack of guarantee for these properties...

This paper studies the flexible-versus-dedicated technology choice and capacity investment decisions of a multi-product firm under demand uncertainty in the presence of budget constraints. The firm operates under a capital budget for financing the capacity investment, and an operating budget, which is uncertain in the capacity investment stage, for financing the production. We investigate how t...