In this paper we introduce the optimal solution for a simple and yet practical inventory policy with the important characteristic which eliminates the uncertainty in demand for suppliers. In this new policy which is different from the classical inventory policies, the time interval between any two consecutive orders is fixed and the quantity of each order is one. Assuming the fixed ordering cos...

In this paper, asymptotic results in a long-term growth rate portfolio optimization model under both fixed and proportional transaction costs are obtained. More precisely, the convergence of the model when the fixed costs tend to zero is investigated. A suitable limit model with purely proportional costs is introduced and the convergence of optimal boundaries, asymptotic growth rates, and optim...

Bidders in procurement auctions often face avoidable fixed costs. This can make bidding decisions complex and risky, and market outcomes volatile. If bidders deviate from risk neutral best responses, either due to faulty optimization or risk attitudes, then equilibrium predictions can perform poorly. In this paper, we confront laboratory bidders with three auction formats that make bidding diff...

This paper develops a framework to analyze the impacts on resource development of e cient management practices that account for possible resource conserving technological, institutional and taste changes. Compared with traditional resource management that ignores these future possibilities, e cient management may not delay or reduce resource development. Under e cient management, higher probabi...

The paper studies equilibria for economies with imperfect competition and non-convex technologies. Following Negishi, firms maximise profits under downward-sloping perceived demand functions. Negishi’s assumptions, in particular the assumption of a single monopolistic competitor in each market, are relaxed. Existence of equilibria is obtained, under otherwise standard assumptions, for productio...

In this paper we first (trivially) show that data envelopment analysis can be viewed as maximising the sum of the efficiencies of the decision-making units (DMU's) in the organisation. Building upon this we present nonlinear models for: (a) allocating fixed costs to DMU's and (b) allocating resources to DMU's. Simultaneous to allocating resources output targets are also decided for each DMU. Nu...

Article history: Received 28 January 2008 Available online xxxx JEL classification: C91 D03 D90 In this paper we elicit preferences for money–time pairs via experimental techniques. We estimate a general specification of discounting that nests exponential and hyperbolic discounting, as well as various forms of present bias, including quasi-hyperbolic discounting. We find that discount rates are...

A continuous single-facility location problem, where the fixed cost (or installation cost) depends on the region where the new facility is located, is studied by mean of cooperative Game Theory tools. Core solutions are proposed for the total cost allocation problem. Sufficient conditions in order to have a nonempty core are given, then the Weber problem with regional fixed costs is studied.