For the renewal risk model with subexponential claim sizes, we established for the finite time ruin probability a lower asymptotic estimate as initial surplus increases, subject to the demand that it should hold uniformly over all time horizons in an infinite interval. In the case of Poisson model, we also obtained the upper asymptotic formula so that an equivalent formula was derived. These ex...

It has been established that categorical discrimination based on observable characteristics such as gender, age, or ethnicity enhances efficiency. We consider a different form of risk classification where there exists some costless yet imperfectly informative test on risk types, with the test outcome unknown to the agents ex-ante. We show that a voluntary risk classification where agents are gi...

We are interested in mechanisms that maximize social welfare. In [1] this problem was studied for multi-unit auctions with unit demand bidders and for the public project problem, and in each case social welfare undominated mechanisms in the class of feasible and incentive compatible mechanisms were identified. One way to improve upon these optimality results is by allowing the players to move s...

This paper offers new support for the Porter Hypothesis within the context of a quality competition framework. We use a duopoly model of vertical product differentiation in which two firms simultaneously choose to produce either a high (environmentally friendly) quality or low (standard) quality variant of a good, before engaging in price competition. In this simple setting, we show that a Nash...

We derive optimal bidding strategies for a global bidder who participates in multiple, simultaneous second-price auctions with perfect substitutes. We first consider a model where all other bidders are local and participate in a single auction. For this case, we prove, somewhat surprisingly, that the global bidder should always place non-zero bids in all available auctions, irrespective of the ...

T widespread implementation of customer relationship management technologies in business has allowed companies to increasingly focus on both acquiring and retaining customers. The challenge of designing incentive mechanisms that simultaneously focus on customer acquisition and customer retention comes from the fact that customer acquisition and customer retention are usually separate but intert...

Although small, medium and micro enterprises (SMEs, mEs) play a decisive role in the European digital economy, they have been identified as one of the weakest links in information security. Identifying these security weaknesses and needs we parameterize our open collaborative environment STORM in order to offer a cost-efficient tool to the SMEs and mEs for self-managing their security.

Mistakenly-tagged low prices are harmful to online merchants but difficult to avoid completely, thus it is meaningful to track shoppers' abnormal response to them and develop resolutions accordingly. In light of relevant issues received rare attention from both practitioners and researchers, this work aimed to identify shoppers’ typical behavioural reactions to ultra-low prices at Internet merc...

Using recent financial and traffic data on a large sample of airports worldwide, we develop a composite non-standard profit function approach to estimate cost and revenue efficiencies of Spanish airports. Results show that, while profit margins under cost-efficient conditions are consistent with the existing literature, the important losses experienced by small airports in Spain are largely due...

Risk shifting is a well-known agency problem in corporate finance which also exists between policyholders and shareholders of insurance companies. Shareholders engage in excessive risk taking at the expense of policyholders who, in turn, are less willing to pay for insurance coverage. Solvency regulation addresses this incentive problem by restricting the set of investment strategies and premiu...