In this paper we consider an optimal design problem, where the goal is to find the layout of two conductors that minimize a given quadratic objective functional. The most important feature of the objective functional is that it is weakly discontinuous. In that case the tools of homogenization that were traditionally used in order to study such problems, are helpful but not sufficient. In this p...

This paper considers the implementation of an economic outcome under complete information when the strategic and informational details of the participation game are partially-specified. This means that full participation is required to be a subgame-perfect equilibrium for a large variety of extensive modifications of the simultaneous-move participation game in the same vein as Kalai [Large Robu...

Problem statement. According to state regulations, the main method of ensuring reliability steel vertical above-ground tanks for long-term storage oil and petroleum products is limit states method. This ensures under conditions modes operation envisaged by relevant standards. However, issues relating whose service life exceeds normative one, as well economic efficiency project decisions, requir...

AI and reinforcement learning (RL) have improved many areas, but are not yet widely adopted in economic policy design, mechanism or economics at large. At the same time, current methodology is limited by a lack of counterfactual data, simplistic behavioral models, opportunities to experiment with policies evaluate responses. Here we show that machine-learning-based simulation powerful des...

In this research, we propose a bi-objective model for the economic-statistical design of the X-bar and S control charts. The model minimizes out-of-control average time to signal as well as minimizing mean hourly loss-cost where it incorporates the Taguchi loss function. Statistical constraint is considered in the model to achieve desired in-control time to signal. A non-dominated sort...

In economic models where uncertainty is driven by a diffusion process, the smoothness of agents’ value functions and the existence of optimal strategies play a crucial role in the analysis. This paper shows, firstly, that the value function for the optimal control of any timehomogeneous, one-dimensional diffusion is twice continuously differentiable under Lipschitz, growth, and non-vanishing vo...