Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry the covariance of income and loan repayments may explain higher household borrowings than in the case without default option. Under ex post information asymmetry and positive...

We propose a Hidden Markov Model (HMM) approach to identifying on-shelf out-of-stock (OOS) by detecting changes in sales patterns due to unobserved states of the shelf. We calibrate our model using point-of-sales (POS) data from a big-box retailer. We validate our approach using visual...

We study a dynamic assortment selection problem where arriving customers make purchase decisions among offered products from a universe of $N$ products under a Markov-chain-based choice (MCBC) model. The retailer observes only the assortment and the customer's single choice per period. Given...