In this paper we discuss recent progress in the turnpike theory which is one of our primary areas of research. Turnpike properties are well known in mathematical economics. The term was first coined by Samuelson (see [1]) who showed that an efficient expanding economy would for most of the time be in the vicinity of a balanced equilibrium path. These properties were studied by many researches f...

Leakage through microscale or nanoscale cracks is usually hard to observe, difficult to control, and causes significant economic loss. In the present research, the leakage in a pipe was evaluated by the virtual entropy generation (VEG) method. In virtual entropy generation method, the “measured entropy generation” is forced to follow the “experimental second law of thermodynamics”. Taking the l...

We analyze the valuation of American options under the forward performance criterion introduced by Musiela and Zariphopoulou (2008). In this framework, the performance criterion evolves forward in time without reference to a specific future time horizon. Moreover, risk preferences change with stochastic market conditions, which is natural as investors are clearly more risk averse in economic do...

The paper argues that the notion of Pareto efficiency builds on two normative assumptions: the more general consequentialist norm of any efficiency criterion, and the strong no-harm principle of the prohibition of any redistribution during the economic process that hurts at least one person. These normative concerns lead to a constrained and static notion of efficiency in mainstream economics, ...

We consider a cooperative model of bargaining where the location of the disagreement point may be uncertain. Based on the maximin criterion, we formulate an ex ante efficiency condition and characterize the class of bargaining solutions satisfying this axiom. These solutions are generalizations of the monotone path solutions. Adding individual rationality yields a subclass of these solutions. B...

Decision theory dealing with uncertainty is usually considering criteria such as expected, minimum or maximum values. In economic areas, the quantile criterion is commonly used and provides significant advantages. This paper gives interest to the quantile optimization in decision making for designing irrigation strategies. We developed P2q, a hierarchical decomposition algorithm which belongs t...

In this paper a new concept for control and performance assessment of compressed air energy storage (CAES) systems in a hybrid energy system is introduced. The proposed criterion, based on the concept of energy harvest index (HEI), measures the capability of a storage system to capture renewable energy. The overall efficiency of the CAES system and optimum control and design from the technical ...