This paper considers a modified principal-agent environment, where principals have options to either incentivize agents, or trigger agents' reciprocity. Because the production is uncertain, principals' fixed rate transfer can be easily interpreted as good intention. Theory suggests that...

A river carries pollutants to people living along it if it is polluted. To make the water in the river clean, some costs are incurred. This poses a question of how to split the costs of cleaning the whole river among the agents located along it. To answer this question, we resort to the two main...

A polluted river network is populated with agents (e.g., firms, villages, municipalities, or countries) located upstream and downstream. This river network must be cleaned, the costs of which must be shared among the agents. We model this problem as a cost sharing problem on a tree network....

A polluted river network is populated with agents (e.g., firms, villages, municipalities, or countries) located upstream and downstream. This river network must be cleaned, the costs of which must be shared among the agents. We model this problem as a cost sharing problem on a tree network....

This paper considers the cost sharing problem on a fixed tree network. It provides a characterization of the family of cost sharing methods satisfying the axioms of Additivity and the Independence of Irrelevant Costs. Additivity is a classical axiom. The Independence of Irrelevant Costs axiom is...

We analyze how the precision of a firm’s product safety testing affects its pricing strategies and the associated profit implications under strict product liability with a partial liability specification. We consider a signaling game where a firm with private product safety information chooses...

This note investigates a set of dynamic versions of the level-k (LK) and cognitive hierarchy (CH) models in repeated normal-form games. Conventional LK and CH models assume a reasoning process that does not allow learning. This can be a restrictive assumption: When facing a repeated game,...

Removal of aluminum ion from rare earth ions solution by selective adsorption was one of the promising methods for green enrichment of the acidic rare earth solution containing aluminum ions. Herein, a series of zinc sulfide/halloysite composites with different phases and content of wurtzite...

We propose a new newsvendor model with the focus theory of choice. Instead of calculating the expected utility, the model conceives that a retailer evaluates each order quantity by examining the most salient demand for him/her. The proposed model is a bilevel optimization problem with maximin...

In this dissertation, we consider an inventory sharing and rationing problem in continuous-review, infinite-horizon, distribution networks. Unlike previous literature on inventory sharing, we model inventory sharing as a multiple demand classes problem in which each dealer faces two classes of...