Showing 1 - 10 of 19
Choice models today are ubiquitous across a range of applications in operations and marketing. Real-world implementations of many of these models face the formidable stumbling block of simply identifying the "right" model of choice to use. Because models of choice are inherently high-dimensional...
Persistent link: https://www.econbiz.de/10010990440
We introduce the pathwise optimization (PO) method, a new convex optimization procedure to produce upper and lower bounds on the optimal value (the "price") of a high-dimensional optimal stopping problem. The PO method builds on a dual characterization of optimal stopping problems as...
Persistent link: https://www.econbiz.de/10010990541
This paper deals with a basic issue: How does one approach the problem of designing the "right" objective for a given resource allocation problem? The notion of what is right can be fairly nebulous; we consider two issues that we see as key: efficiency and fairness. We approach the problem of...
Persistent link: https://www.econbiz.de/10010990603
Persistent link: https://www.econbiz.de/10005389232
Persistent link: https://www.econbiz.de/10005408675
We characterize environmental quality as a stock, and its rate of deterioration as a flow. We consider a class of problems, which we call “SFQ” problems, in which both stocks and flows can be controlled to promote the quality of a resource stock. Abatement (curbing the flow) and restoration...
Persistent link: https://www.econbiz.de/10005002350
Oblivious equilibrium is a new solution concept for approximating Markov perfect equilibrium in dynamic models of imperfect competition among heterogeneous firms and has recently been used in multiple economic studies. In this paper, we present algorithms for computing oblivious equilibrium and...
Persistent link: https://www.econbiz.de/10005553395
We propose an approximation method for analyzing Ericson and Pakes (1995)-style dynamic models of imperfect competition. We develop a simple algorithm for computing an "oblivious equilibrium," in which each firm is assumed to make decisions based only on its own state and knowledge of the long...
Persistent link: https://www.econbiz.de/10005553511
This paper explores the connection between three important threads of economic research offering different approaches to studying the dynamics of an industry with heterogeneous firms. Finite models of the form pioneered by Ericson and Pakes (1995) capture the dynamics of a finite number of...
Persistent link: https://www.econbiz.de/10009318594
We propose an approximation method for analyzing Ericson and Pakes (1995)-style dynamic models of imperfect competition. We develop a simple algorithm for computing an ``oblivious equilibrium,'' in which each firm is assumed to make decisions based only on its own state and knowledge of the long...
Persistent link: https://www.econbiz.de/10004977905