I identify assumptions under which policies that maximize expected surplus are Pareto Optimal–even when expected consumer surplus does not even locally represent preferences over price-income lotteries. Besides the oft-made partial equilibrium assumptions that only one price varies, and that income changes do not affect demand, the two other assumptions are that every consumer’s indirect utilit...

An optimising model of price adjustment with missing information is developed where firms choose the speed of price adjustment to minimise the expected loss in disequilibrium. The loss is due to lost profits and the expected cost of failing to coordinate price changes with competitors. Assuming that a higher speed of price adjustment decreases the former and increases the latter, it is shown th...

We study competitive bidding with an explicit bid floor, motivated by minimum wage legislation and minimum labor standard. We derive the equilibrium strategies in, and compare the expected procurement costs among, the firstprice, second-price, English, and Dutch auctions in a private-cost model. For the English auction, we also consider a variant in which each seller can terminate the auction b...

Production timing is an essential element in fresh vegetable growers’ efforts to maximize profitability and reduce income risks. The present study uses biophysical simulation modeling coupled with a dual crop (tomatoes, sweet corn) whole-farm economic formulation to analyze the effects of growers’ risk aversion levels and price consideration (seasonal or annual price consideration) in expected ...

Price return and P/E are two important factors for a lot of investors based on the latest studies by researchers in Tehran Stock market; however, it is expected that the price and the variation of that affect the return and the P/E of any given market as a complicated system. The Bohmian quantum mechanics used referring to the time correlation of return and P/E of the stock market under conside...

Stock price has been found to provide important information about future economic activities. Fama (1981), Fischer and Merton (1984), and Barro (1990), among many others, document a positive relation between stock market return and subsequent growth in investment and output. These findings are consistent with rational expectations asset pricing models, in which stock price is equal to the sum o...

In this paper, we are interested in the relationship between final prices of online auctions and possible shill activities during those auctions. We conduct experiments on real auction data from eBay to exam the hypotheses that (1) A lower-than-expected final auction price indicates that shill bidding was less likely to occur in that auction; and (2) A higher-than-expected auction final price i...

This paper employs the state-space model to reexamine the fundamental issue in finance about whether it is the expected returns or the expected dividends growth that is primarily responsible for the stock price variations. We use Bayesian methods to conduct inference and show that there is a substantial uncertainty about the contributions of expected returns and expected dividends to the fluctu...

In this paper, we explore the impact of input price variability and correlation in the context of an inventory system with stochastic demand and stochastic input prices. For a general class of such systems, we show that the expected cost function is concave in the input price. From this, it follows that higher input price variability in the sense of the convex order always leads to lower expect...