On granting credit in a random environment

The paper extends the Bierman-Hausman credit granting model by incorporating economic factors, which may vary randomly over time. Sufficient conditions are found for the optimality of simple credit policies. The monotonicity results are based on nonstandard orderings induced by the probability of collection. Moreover, monotonicity of the credit policy with respect to the prior information is studied. Copyright Physica-Verlag 1998

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Year of publication:	1998
Authors:	Waldmann, Karl
Published in:	Mathematical Methods of Operations Research. - Springer. - Vol. 47.1998, 1, p. 99-115
Publisher:	Springer
Subject:	Markovian decision processes \| Bierman-Hausman credit granting model \| nonstandard order relations

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010949937