Evaluating and selecting the right contractors can increase the chances of success of a project and the organization. Considering the intense competition faced by organizations today, proper cost management to enhance profitability and customer satisfaction has attracted a lot of attention. The evaluation of contractors is usually a process thatis based on various criteria.By the end of it, the...

In this paper we consider the exogenous indifference classes model of Barberá and Ehlers (2011) and Sato (2009) and analyze further the relationship between the structure of indifference classes across agents and dictatorship results. The key to our approach is the pairwise partition graph. We provide necessary conditions on these graphs for strategy-proofness and unanimity (or efficiency) to i...

We relate burstiness (or indifference) curves for stochastic traffic flows to the quality they experience under the allocation of the resources of bandwidth and buffer space. We use this relation to explore the quality experienced by merged flows under various rules for allocating resources to them, including one motivated by the Controlled Load service specification. We show how cost structure...

A primal index of productivity change is introduced which decomposes exactly in three components: technical change, technical efficiency change and average scale economies (radial scale change). The proposed index is invariant to movement along indifference surfaces and it collapses to the Malmquist index if the technology is locally constant returns to scale. It is the best linear approximatio...

We generalize the classical expected-utility criterion by weakening transitivity to the conjunction of transitive indifference and Suzumura consistency. In the absence of full transitivity, completeness no longer follows as a consequence of the system of axioms employed and a richer class of rankings of probability distributions results. This class is characterized by means of standard expected...

We study the exponential utility indifference value h for a contingent claim H in an incomplete market driven by two Brownian motions. The claim H depends on a nontradable asset variably correlated with the traded asset available for hedging. We provide an explicit sequence that converges to h, complementing the structural results for h known from the literature. Our study is based on a converg...

This note provides a positive answer to the following question. Is it possible to define a set of preference relations, one for each node of a decision tree, such that these preferences satisfy the reduction of compound lotteries axiom and dynamic consistency, and yet do not converge to expected utility? It is argued that updated preferences necessarily have one affine indifference curve but th...