Risk-averse entrepreneurs contract with financiers to fund their projects. Projects can be operated under green or dirty technologies. We explore the role of limited commitment in determining the adoption of green technologies when governments enact carbon taxes and/or directed investment...

A renewable energy asset manager can expand the power generation capacity of a particular site by an endogenous amount but may also want to shut down the location to save on fixed operating costs if the market prospects deteriorate. The site manager does not exercise these real options in a set...

Risk-averse entrepreneurs contract with financiers to fund their projects. Projects can be operated under green or dirty technologies. We explore the role of limited commitment in determining the adoption of green technologies when governments enact carbon taxes and/or directed investment...

Ai and Li [2015] introduced a problem at the interface of the neoclassical investment and dynamic contract theories. Specifically, the authors consider the optimal design of a contract that provides sufficient incentives to the management for it to implement the shareholder’s investment plan...

Managing product availability in a cost effective way has always been a major challenge faced by inventory managers. We study the problem of a firm selling a perishable product with short-term demand patterns and a long-term service target using the newsvendor framework. The newsvendor...

Managing customer satisfaction in a cost effective way has always been a major challenge faced by inventory managers. We study the problem of a newsvendor selling a perishable product with short-term demand patterns and a long-term service target. The newsvendor determines his long-term order at...

We deal with the problem of a profit-maximizing vendor selling a perishable product. At the beginningof a planning cycle, the vendor determines a minimum committed order per period. During the cycle, he may also place a supplemental order in each period based on the observed demand signal in...