Managers of research and development (R&D) programs are often confronted with questions of what determines R&D spending (i.e. R&D search intensity) and when R&D spending is unprofitable (i.e. Reservation Technology Level). Three determinants of R&D spending are identified: the current technology...

This paper considers the consumption behavior of a risk-averse consumer with a preference for immediate consumption who faces an uncertain income stream and plans for a finite or infinite number of periods. The consumer may borrow up to a limit or save, where both saving and borrowing are...

A stochastic consumer behavior model is constructed transforming Nicosia's (Nicosia, F. M., 1966. Consumer Decision Processes. Prentice-Hall, Englewood Cliffs, New Jersey.) postulates into probability hypotheses. Nicosia's deterministic model is obtained in the mean evolutions and...