This paper establishes some asymptotic properties of the finite state and action space Markovian decision model. For the discounted case, a turnpike theorem is proven which states that an optimal immediate decision when the planning horizon is sufficiently large is to choose one of the decisions...

Lagrangean techniques have had wide application to the optimization of discrete optimization problems. Inverse optimization refers to the fact that each time a Lagrangean calculation is made for a specific problem with a given resources vector, an optimal solution is obtained for a related...

This paper reports on the application of stochastic programming with recourse to strategic planning decisions regarding resource acquisition. A resource directed decomposition method, which simultaneously exploits stochastic programming and mixed integer programming model structures, is...

Group theory is used to integrate a wide variety of integer programming methods into a common computational process. Included are group optimization algorithms, Lagrangian methods, the cutting plane method, and the method of surrogate constraints. These methods are controlled by a supervisor...

The usefulness of group theoretic methods in solving integer programming (IP) problems is extended by procedures for controlling the size of the groups. The main procedure given shows how an optimal linear programming basis can be altered to reduce the magnitude of its determinant thereby...

Production and capacity expansion decisions are difficult to analyze when there is learning. Later production is less costly, and maybe more profitable, but the company must endure high initial production costs. Mixed integer programming models are presented for optimizing coordinated production...

Anand (Anand, P. 1985. Testing regret. Management Sci. 31 114--116.) has suggested that measuring the sacrifice a person is prepared to make to avoid regret may be more difficult than I suggest in Bell (Bell, D. E. 1983. Risk premiums for decision regret. Management Sci. 29 1156--1166.). Though...

Some people find decision making under uncertainty difficult because they fear making the "wrong decision," wrong in the sense that the outcome of their chosen alternative proves to be worse than could have been achieved with another alternative. These people may be willing to pay a premium to...

Expected utility theory is widely acknowledged to be a rational approach to making decisions involving risk. Yet the methodology gives no explicit role to measures of risk and return. In this paper we identify those families of utility functions that are compatible with a risk-return...

Consider the relative attractiveness to a decision maker of two financial gambles as the wealth of that individual varies. It may seem reasonable that either one alternative should be preferred for all wealth levels or that there exists a unique critical wealth level at which the decision maker...