Pricing of cap insurance contracts is considered for political mortgage rates. A simple stochastic process for mortgage rates is proposed. The process is based on renewal processes for modelling the length of periods with downward and upward trend respectively. Prices are calculated by...

Pricing of cap insurance contracts is considered for political mortgage rates. A simple stochastic process for mortgage rates is proposed. The process is based on renewal processes for modelling the length of periods with downward and upward trend respectively. Prices are calculated by...

Abstract In this paper a Bounded Intensity Process (BIP) reliability growth model is used to analyze the failure data from repairable systems undergoing a Test-Find-Test growth program, in a Bayes-decision framework. Such an analysis is helpful in improving system reliability. Several identical...

We consider a game of strategic experimentation in the presence of competition between two agents. Each agent faces a two-armed bandit problem in which she continually chooses between her private, risky arm and a common, safe arm. An agent has exclusive access to her private arm. However, only...