In this paper we extend a reduced form model for the valuation of employee share options (ESOs) to incorporate employee departure, and company takeover. We also allow for performance linked vesting and other exotic features specific to ESOs. We clarify the assumptions underlying the reduced form...

Luenberger [8] introduced the so-called benefit function that converts preferences into a numerical function that has some cardinal meaning. This measure has a number of remarkable properties and is a powerful tool in analyzing welfare issues ([10], [12], [13], [14]). This paper studies the...

An aspect of casino games that in general leads to discussions among both participants and spectators, is the relative extent to which a player can positively influence his results by making appropriate strategic choices. This question is closely related to the issue of how to distinguish...

The introduction of a {0,1}-valued game associated to a connected graph allows us to assign to each vertex a value of weighted connectivity according to the different solutions that for cooperative games are obtained by means of semivalues. The marginal contributions of each vertex to the...

We introduce the concept of locally acting distributed players into sequential stochastic games with general compact state and action spaces. The state transition function for the system is of local structure as well and this results in Markov properties in space and time for the describing...

Understanding the behavior of an idle time of a limited resource is the key to increase productivity in service operations. When the system consists of nonexponential properties of time distributions it becomes difficult to provide results for the general case. We derive the MacLaurin series for...

This paper addresses an optimal inventory control in a supply chain in which customers arrive at a facility according to a Poisson process and the facility provides service which takes exponential amounts of time, using items supplied by an outside supplier with exponential lead time process....