This paper explores rational decision making for investment in the stock market. The first part is concerned with problems of a methodological nature, mainly dealing with the relationship between normative models and operations research. The major part explores a particular model and the various...

A sufficient condition for the optimality of myopic policies is derived for a class of sequential decision problems. A necessary condition is also derived. The usefulness of the sufficient condition is illustrated in the context of a dynamic portfolio selection problem, a matched sampling...

Quantitative approaches to the design of incentives in business firms are surveyed by drawing on writings from management science, finance, decision analysis, and mathematical economics. Two general incentive design situations are considered: How should incentives for the company president be...