Efficiency and sustainability often clash if limited-tenure use rights for renewable natural resources are rented to private resource managers. We introduce a mechanism reconciling these two issues for a stochastically developing natural resource. The mechanism selects the most patient and,...

Inventory management and pricing decisions based on quantitative models both in industrial practice and academic works often rely on minimizing expected cost or maximizing expected revenues or profits, which refers to the concept of risk-neutrality of the decision maker. Although many useful...

Probabilistic design of wind turbines requires definition of the structural elements to be included in the probabilistic basis: e.g., blades, tower, foundation; identification of important failure modes; careful stochastic modeling of the uncertain parameters; recommendations for target...

Accidents forecast of various nature with sufficient economic damage, maximal loss enhancement, elimination of their consequences is a national wide problem It is an important concern of authorities and all levels management In order to solve this problem we need a forecast system for...

Uncertainty about the riskiness of new financial products was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateral constraint in which agents learn "by...