We define what is a replacement policy for a system that fails randomly in time and its main characteristics. There are several parameters that drive the structure of the optimal policy. We provide a detailed discussion of the time horizon, objective functions, and failure time distributions as part of any replacement policy. Encyclopedia of Statistics in Quality and Reliability, Eds: Ruggeri F...

We consider a frictional labor market in which firms want to insure their senior employees against income fluctuations and, at the same time, want to recruit new employees to fill their vacant positions. Firms can commit to a wage schedule, i.e. a schedule that specifies the wage paid by the firm to its employees as function of their tenure and other observables. However, firms cannot commit to...