Currently, the average person spends 80–90 % of their workday in an airtight indoor environment. Under such conditions, the presence of organic chemical pollutants in the air can compromise the health of workers and undermine work efficiency. Many researchers have demonstrated that plants can...

Abstract We consider a model in which shareholders provide a risk-averse CEO with risk-taking incentives in addition to effort incentives. We show that the optimal contract protects the CEO from losses for bad outcomes and is convex for medium outcomes and concave for good outcomes. We calibrate...

A growing segment of the revenue management and pricing literature assumes "strategic" customers who are forward-looking in their pursuit of utility. Recognizing that such behavior may not be directly observable by a seller, we examine the implications of seller uncertainty over strategic...

We consider dynamic pricing competition between two firms offering vertically differentiated products to strategic customers who are intertemporal utility maximizers. We show that price skimming arises as the unique pure-strategy Markov perfect equilibrium in the game under a simple condition....

Advertising plays an important role in affecting consumer demand. Socially responsible firms are expected to use advertising judiciously, limiting advertising of “bad” products. An example is the advertising initiative adopted by several major food manufacturers to limit the advertising of...

Northeast China as an important agricultural zone for commercial and economic crop in China suffered from increased drought risk that seriously threatened agricultural production and food security in recent decades. Based on precipitation datasets from 71 stations from 1960 to 2009 and on the...

We develop a Markov decision process formulation of a dynamic pricing problem for multiple substitutable flights between the same origin and destination, taking into account customer choice among the flights. The model is rendered computationally intractable for exact solution by its...

We consider a nonlinear nonseparable functional approximation to the value function of a dynamic programming formulation for the network revenue management (RM) problem with customer choice. We propose a simultaneous dynamic programming approach to solve the resulting problem, which is a...

We analyze several proposals to restrict CEO compensation and calibrate two models of executive compensation that describe how firms would react to different types of restrictions. We find that many restrictions would have unintended consequences. Restrictions on total realized (ex-post) payouts...