This paper investigates a portfolio approach to multi-product newsboy problem with budget constraint, in which the procurement strategy for each newsboy product is designed as portfolio contract. A portfolio contract consists of a fixed-price contract and an option contract. We model the problem as a profit-maximization model, and propose an efficient solution procedure after investigating the ...

For the Internet advertisement market, we consider a contract problem between advertisers and publishers. Among several ways of pricing online advertisements, the methods based on cost-per-impression (CPM) and cost-per-click (CPC) are the two most popular. The CPC fee is proportional to the click-through rate (CTR), which is uncertain and makes decisions of advertisers and publishers difficult....

   Tendon transfers in hand patients are a commonly performed procedure after extensor tendon rupture. However, the standard side to side technique is not applicable in every patient. We present a case of a musician with unique demands to demonstrate the option to customize surgical technique and therapy regimen to the unique needs of each patient. An extensor indicis proprius to extensor digit...

When an insurance company sells a mutual fund with death and maturity guarantees to its client, it may consider allowing the client to extend the guarantee for some more years. If the renewal only happens once, a so-called rollover option is implied in the contract. In this paper, we show how the generalized Bermudan option can be applied to the special case of the rollover option. By avoiding ...

This paper studies a dynamic equilibrium model of financial innovation with heterogeneous beliefs and competition among sellers of a new security. We show that both volume and price of the security after it is introduced are sensitive to the differing beliefs of participating players. We present conditions for the innovator to continue issuing the new security and for the imitator to enter the ...