The saliency of returns in today’s business world is unquestionable, in such items as toys, Christmas decorations, books, seasonal/fashion items and the like. This is largely due to the high economic benefits prevalent in some industries today and to the increasing opportunities for resale in secondary and global markets. This paper attempts to model the profitability of returns policy in prese...

Models of endogenous growth have not been able to account for the variety of empirically observed distributional properties of the returns to innovation, in part, because of the limitations necessarily imposed on competition to cope with increasing returns to scale. Exponential growth, fat tails, Pareto–Levy distributed upper tails, and upper value outliers, are associated with increasing retur...

This paper characterizes the class of Pareto optimal returns policies between a manufacturer and a retailer who receives consumer returns. The manufacturer may take a costly hidden action that reduces the expected number of products returned by consumers, which when realized is hidden information known only to the retailer. When faced with consumer returns, the retailer must decide whether to s...

How important are oil price fluctuations and oil price volatility on equity market performance? What are the policy implications if volatility turns out to be significant? We assess this issue in an economics/finance nexus for Korea using a VEC model including interest rates, economic activity, real stock returns, real oil prices and oil price volatility. Results indicate the dominance of oil p...

This note is a complementary material for the solution of optimal real-time bidding function in paper [1], where the estimated cost is taken as the bid price, i.e., the upper bound of the true cost. Here we discuss a more general bid optimisation framework with various utility and cost functions. 1 Preliminaries Define the bidding function as b(r) which returns the bid price given the estimated...

This paper studies transmission of international energy price shocks to various sectors in the Australian stock market. We take the multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) approach to modeling volatility and gather evidence that energy price shocks transmit to the price indices of various sectors classified by the global industry classification standard (...

Abstract This paper examines whether adding expected dividend yields implied by analyst forecasts to capital gains target prices improves the portfolio strategy of buying stocks with highest returns and selling lowest returns. We find that based on total performs only slightly better at 1-month horizon because short-term return predictability yield is weak. generates significant abnormal regard...