To understand the pricing and performance of private equity (PE), we analyze the incomplete-markets portfolio choice problem facing a risk-averse limited partner (LP) investing in liquid stocks and bonds along with an illiquid PE investment. A general partner (GP) manages the PE asset and generates alpha on it and charges management and performance fees via carried interest in return. Our compl...

In a preceding paper (Montesano, 1999b) a systematic set of definitions on risk and uncertainty aversion was introduced with regard to unidimensional lotteries and acts. Taking into account only the preference preordering over the set of all possible lotteries and acts represented by the certainty equivalent function, many propositions were introduced and demostrated on global and local risk an...

This paper studies the iterative learning control of robotic systems with repetitive tasks. A fuzzy neural network is applied to design a direct adaptive iterative learning controller. The fuzzy neural network is introduced for compensation of the unknown certainty equivalent controller. A new adaptive law using mixed time-domain and iteration-domain adaptation is developed. It is shown that th...

Real-world constraint problems abound with uncertainty. Problems with incomplete or erroneous data are often simplified at present to tractable deterministic models, or modified using error correction methods, with the aim of seeking a solution. However, this can lead us to solve the wrong problem because of the approximations made, an outcome of little help to the user who expects the right pr...

Experimental economists have discovered various violations of expected utility theory and offered alternative models that can explain laboratory results. This study discovers a new violation in risky choices that cannot be explained by theories like Prospect Theory, Disappointment or Regret Theory. In an experimental setting using a between-subject design, the influence of a dominated alternati...