Numerous examples of real time services arise in the service industry that can be modeled as loss systems. These include agent staffing for call centers, provisioning bandwidth for private line services, making rooms available for hotel reservations and congestion pricing for parking spaces. Given that arriving customers make their decision to join the system based on the current service price,...

This paper attempts to determine the certainty equivalent of an uncertain future cash flow or value through the option pricing method, and builds models of certainty equivalent and certainty equivalent coefficient. Based on the model of certainty equivalent coefficient, this paper further derives models of risk premium and risk-adjusted discount rate. The latter is a new capital asset pricing m...

It is known that the Capital Asset Pricing Model (CAPM) provides an expression which relates the expected return of an asset to its systematic risk. In a decision making problem involving financial data however, we have to take in account the uncertainty given by the imprecision and the incompleteness of the information. Uncertainty in the data may be treated by considering, rather than a singl...

Based on the theory of real options, this paper establishes a investment decision-making model that could evaluate the development of CCS considering some uncertainties: feed-in tariff, the clean price, carbon price, incentives and subsidies from the government and the progress of technology. This model calculates the investment value of CCS project by studying the binomial tree model of real o...

Firms often have imperfect information about demand for their products. We develop an integrated econometric and theoretical framework to model firm demand assessment and subsequent pricing decisions with limited information. We introduce a panel data discrete choice model whose realistic assumptions about consumer behavior deliver partially identified preferences and thus generates ambiguity i...

INTRODUCTION The pricing and reimbursement process in Bulgaria is based on different approaches implemented by NCPR among which is external and internal reference pricing A pharmacoeconomic guidelines (PE) with a HTA approach for assessment of submitted dossiers was implemented y the competent authority (CA) in Bulgaria in April 2015. Requirements for efficacy, safety, benefits, adverse events,...

Making the “right” pricing decision in sales or procurement is a complex task. While the types of pricing policies/methods used in the exchange of goods and services vary greatly, we can divide these mechanisms under two broad categories: posted price mechanisms and price discovery mechanisms. Under a posted price mechanism, a good is sold at a take-it-or-leave-it price determined by the seller...

This paper studies the impacts of foreign exchange risk and competition intensity on supply chain companies who are involved in offshore outsourcing activities. In particular, we develop a variational inequality model that considers firms’ decision-making regarding pricing, offshore outsourcing, transportation, and in-house production under competition and foreign exchange uncertainty. We also ...

Decision-making problems, in general, are ill defined as several times their objectives and model parameters are not precisely known. As a result there has been growing interest in using fuzzy algebra in such models. Historically, probability theory is presented as forming theoretical foundations for reasoning and decision making in situations involving uncertainty. However, often one is faced ...

knowledge of the relationship between two phenomena (inflation and unemployment) is crucial to any economic and political decision-making process. an investigation of this relationship helps economists and policy-makers to be aware of the economy’s performance. in the present research, new-keynesians’ philips hybrid curve has been derived by using the pricing models and the assumption of price ...