Valuation networks have been proposed as graphical representations of valuation-based systems (VBSs). The VBS framework is able to capture many uncertainty calculi including probability theory, Dempster-Shafer’s belief-function theory, Spohn’s epistemic belief theory, and Zadeh’s possibility theory. In this paper, we show how valuation networks encode conditional independence relations. For the...

Proposition algebra is based on Hoare’s conditional connective, which is a ternary connective comparable to if-then-else and used in the setting of propositional logic. Conditional statements are provided with a simple semantics that is based on evaluation trees and that characterizes so-called free valuation congruence: two conditional statements are free valuation congruent if, and only if, t...

Let D be a division ring with centre K and dim, D< ? a valuation on K and v a noninvariant extension of ? to D. We define the initial ramfication index of v over ?, ?(v/ ?) .Let A be a valuation ring of o with maximal ideal m, and v , v ,…, v noninvariant extensions of w to D with valuation rings A , A ,…, A . If B= A , it is shown that the following conditions are equivalent: (i) B i...

We investigate the value of past performance information in the context of keyword advertising auctions, where advertisers differ both in valuation-per-click and in the numbers of clicks they can generate (their performance). We focus on weighted unitprice-contract (UPC) auctions, in which bidders bid unit prices and pay accordingly if they win, and their bids are weighted by factors based on t...

We propose a simple generalization of the Brennan-Schwartz approach to real option valuation of a mining project that incorporates disaster risk using a Poisson point process to model arrivals. Using techniques from the field of robust performance analysis, we are able to calculate upper and lower bounds over all the probability models within a certain distance from the original model. We sugge...

Based on a supply chain framework, we study the stocking decision of a downstream buyer who receives private demand information and has the incentive to influence her capital market valuation. We first characterize a market equilibrium under a general, single buy-back contract. We show that the buyer’s stocking decision can be distorted in equilibrium. Such a downstream stocking distortion hurt...

Classical single-factor comparable company valuation (CCV) like e.g. valuation using the price-earnings ratio is associated with several shortcomings. The two most important are the non-applicability of negative values in the basis of reference and the high requirements to the qualitative characteristics of comparable companies. This paper develops a multi-factor CCV model based on substance an...

We compare the behaviour of students and professional traders from an influential German bank in an experiment involving financial options. The arbitrage free option price is independent of the probability distribution of the underlying asset. The experimental data uncover a probability dependent option valuation of the students, however, they learn to exploit more arbitrage as they gain experi...

This study applies functional Benefit Transfer via Meta-Regression Modeling to derive valuation estimates for wetlands in an actual policy setting of proposed groundwater transfers in Eastern Nevada. We illustrate how Bayesian estimation techniques can be used to overcome small sample problems notoriously present in Meta-functional Benefit Transfer. The highlights of our methodology are (i) The...

let d be a division ring with centre k and dim, d< ? a valuation on k and v a noninvariant extension of ? to d. we define the initial ramfication index of v over ?, ?(v/ ?) .let a be a valuation ring of o with maximal ideal m, and v , v ,…, v noninvariant extensions of w to d with valuation rings a , a ,…, a . if b= a , it is shown that the following conditions are equivalent: (i) b is a finite...