Fuzzy risk assessment of a deeply buried tunnel under incomplete information

Affine credit risk models under incomplete information

We consider the problem of computing some basic quantities such as defaultable bond prices and survival probabilities in a credit risk model according to the intensity based approach. We let the default intensities depend on an external factor process that we assume is not observable. We use stochastic filtering to successively update its distribution on the basis of the observed default histor...

Privatization Under Incomplete Information and Bankruptcy Risk

We study privatization under moral hazard and adverse selection. We show that if the fraction of efficient investors is either insignificant or productivity differences between efficient and inefficient investors are negligible, the government would offer a pooling contract and sell the same fraction of equity to both types of investors. The lower the productivity difference, the greater the eq...

A New Extended Analytical Hierarchy Process Technique with Incomplete Interval-valued Information for Risk Assessment in IT Outsourcing

Information technology (IT) outsourcing has been recognized as a new methodology in many organizations. Yet making an appropriate decision with regard to selection and use of these methodologies may impose uncertainties and risks. Estimating the occurrence probability of risks and their impacts organizations goals may reduce their threats. In this study, an extended analytical hierarchical proc...

Regulating a Risk-Averse Firm Under Incomplete Information

We examine the optimal regulatory policy for a risk-averse …rm when the …rm is imperfectly informed about its e¢ ciency parameter for a project at the time of contracting. The …rm’s risk aversion shifts the optimal regulatory policy from a …xed-price contract to a cost-plus contract. The optimal regulatory policy entails undere¤ort by an ine¢ cient …rm as in Lafont and Tirole (1986) and the e¤o...

Bargaining under Incomplete Information