We question the broad applicability of the assumption of profit maximization as the goal of the firm and investigate how variance in objective functions across different ownership structures affects competitive behavior. While prior work in agency theory has argued that firms may fail to engage in profit maximizing behaviors due to misalignment between the goals of owners and managers, we conte...

Despite the enormous commercial importance of on-line advertisements (ads), there has been little work done to clarify the basis for ranking and displaying them. Most existing methods rank ads as if the user views each of them in isolation. We will consider a more realistic user model that induces three mutual influences between displayed ads: (i) positional bias (for viewing ads placed higher ...

EBITA (earnings before interest, taxes, and amortization of intangible assets) has increased at a compound annual rate of 26%. The Class A Common Stock price has grown in value at a compound annual rate of 27%. By effectively implementing our strategies and delivering value, we have achieved one of the strongest growth records in the publishing industry. How does a firm's optimal output choice ...

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We propose a novel approach to modeling advertising dynamics for a firm operating over distributed market domain based on controlled partial differential equations of diffusion type. Using our model, we consider a general type of finite-horizon profit maximization problem in a monopoly setting. By reformulating this profit maximization problem as an optimal control problem in infinite dimension...

Profit maximization is an important issue to the firms that pursue the largest economic profit possible. In this paper, we consider the profit-maximization problem with the known CobbDouglas production function. Its equivalent geometric programming form is given. Then due to the presence of uncertainties in real world modeling, we have assumed interval uncertainties on the model parameters. The...

In this paper we develop an economic order quantity model to investigate the optimal replenishment policies for instantaneous deteriorating items under inflation and trade credit. Demand rate is a linear function of selling price and decreases negative exponentially with time over a finite planning horizon. Shortages are allowed and partially backlogged. Under these conditions, we model the ret...

We developed an inventory model for decaying items with selling price dependent demand in inflationary environment. Deterioration rate is taken as two parameter Weibull distribution. Shortages in inventory are allowed with partial backlogging. Backlogging rate is taken as exponential decreasing function of time. Profit maximization technique is used in this study.

This paper addresses a rationing problem in a two-level, vertically integrated distribution system composed of one manufacturer and several retail points. The motivating case, developed in the vending machine sector and modeled as a newsvendor-like problem, is representative of many real settings where short-term changes in demand can be substantial while capacity modification is not a viable o...