In this communication, we develop suitable valuation techniques for a with-profit/unitized with profit life insurance policy providing interest rate guarantees, when a jump-diffusion process for the evolution of the underlying reference portfolio is used. Particular attention is given to the mispricing generated by the misspecification of a jumpdiffusion process for the underlying asset as a pu...

In this communication, we develop suitable valuation techniques for a with-profit/unitized with profit life insurance policy providing interest rate guarantees, when a jump-diffusion process for the evolution of the underlying reference portfolio is used. Particular attention is given to the mispricing generated by the misspecification of a jumpdiffusion process for the underlying asset as a pu...

We formalize a cumulative interest compliant conservation requirement for pure financial products proposed by Wesseling and van den Bergh to make financial issues relating to these products amenable to mathematical analysis. The formalization is given in a timed extension of tuplix calculus and abstracts from the idiosyncrasies of time measurement. We also use the timed tuplix calculus to show ...

When designing a new product, developers must balance the expected profit of improving the design against the cost and time requirements of doing so. We investigate this tradeoff by modeling the prototyping stage of product development as a probabilistic search process. We study optimal policies for single-period and infinitehorizon problems and derive closed-form solutions for the case of prof...

Crossbreeding can improve the profit for most dairy producers if economically similar breeds are used. However, it is important to stress that crossbreeding cannot replace pure breeding. Pure breeding is a prerequisite for crossbreeding. The heterosis obtained from crossbreeding is an added bonus on top of the genetic gain created by pure breeding. The size of the bonus depends on the number an...

This paper uses a mechanism design framework to characterize how an intermediary can design profit-maximizing matching markets when agents have private information about their quality. When match surpluses are supermodular, sufficient conditions are provided that ensure positive assortative matching is profit maximizing. Under these conditions, two-sided position auctions are characterized that...

Massive structural change is occurring in health care provision in the United States, significantly reducing the number of not-for-profit suppliers. This trend is fueled in part by government policies. To evaluate these policies one must know about the motives of not-for-profit health care providers. The theory of not-for-profit hospitals suggests buyers may prefer dealing with sellers who are ...

The phenomenal success of East Asian economies has centered attention on the source of their economic growth. Recent studies based on neoclassical theory have produced controversial results: the most important source of economic growth of the East Asian countries (except Japan) is capital accumulation, and the estimated rate of technological progress is very small and, in some cases, substantia...

Conventional data envelopment analysis (DEA) assists decision makers in distinguishing between efficient and inefficient decision making units (DMUs) in a homogeneous group. However, DEA does not provide more information about the efficient DMUs. One of the interesting research subjects is to discriminate between efficient DMUs. The aim of this paper is ranking all efficient (extreme and non-ex...

Industry in Ukraine is among the world’s most energy intensive. Energy was plentiful and cheap in Soviet times and little effort was made to conserve it. Rising energy prices have had a major impact on profits and production, which also creates a tremendous market potential for energy efficient products and services. Yet Ukrainian industry has not implemented significant energy efficiency measu...