Cost allocation problems arise in many contexts in economics and management science. In a typical problem that we have in mind, a decision maker must decide how to allocate the joint cost of production among several commodities using prices. Furthermore, these prices must satisfy certain reasonable postulates among which is the requirement that total revenue associated with these prices must co...

Data Envelopment Analysis (DEA) is an appropriate tool for estimating various types of efficiency including Cost Efficiency (CE). Identifying and identifying inefficiency resources plays an important role in analyzing unit performance in order to plan for improving the status of Decision Making Units (DMUs). Now , if information on the inputs and outputs and pricing information of the evaluated...

We introduce a dynamic pricing model for a monopolistic company selling a perishable product to a finite population of strategic consumers (customers who are aware that pricing is dynamic and may time their purchases strategically). This problem is modeled as a stochastic dynamic game in which the company’s objective is to maximize total expected revenues, and each customer maximizes the expect...

This article studies two types of flexibility used by firms to better respond to uncertain market conditions: resource flexibility and responsive pricing. We consider a situation in which a single flexible resource can be used to satisfy two distinct demand classes. While the resource capacity must be decided based on uncertain demand functions, the resource allocation as well as the pricing de...

This paper surveys the research on the influence of investor feelings on equity pricing and also develops a theoretical basis with which to understand the emerging findings of this area. The theoretical basis is developed with reference to research in the fields of economic psychology and decision-making. Recent advancements in understanding how feelings affect the general decision-making of in...

I examine an investor’s portfolio allocation problem across multiple risky assets in the presence of return predictability when, in addition to the predictability evidence, the investor uses conditional asset pricing models to guide him in the portfolio selection decision. I also explore how the uncertainty associated with the model dynamics affects the investor’s optimal portfolio. To analyze ...

This paper focuses on inconsistencies arising from the use of NPV and CAPM for capital budgeting. It shows that (i) CAPM capital budgeting decision-making based on disequilibrium NPV is deductively inferred by the Capital Asset Pricing Model, (ii) the use of the disequilibrium NPV is widespread in finance both as a decision rule and as a valuation tool, (iii) the disequilibrium NPV does not gua...

A monopolist sells informative experiments to heterogeneous buyers who face a decision problem. Buyers differ in their prior information, and hence in their willingness to pay for additional signals. The monopolist can profitably offer a menu of experiments. Even under costless acquisition and degrading of information, the optimal menu is quite coarse. The seller offers at most two experiments,...

1567-4223/$ see front matter 2011 Elsevier B.V. A doi:10.1016/j.elerap.2011.12.001 ⇑ Corresponding author. Tel.: +972 3 5026628; fax: E-mail addresses: [email protected] (E. Rubin), bmant When people shop for airline tickets, the effort-demanding cognitive process of assessing alternative travel dates may have significant effects on consumer decisions. With the advent of the Internet, consumers a...