Decision-makers who usually face model/parameter risk may prefer to act prudently by identifying optimal contracts that are robust to such sources of uncertainty. In this paper, we tackle this issue under a finite uncertainty set that contains a number of probability models that are candidates...

A financial model is a model designed to represent in mathematical terms the relationships among the variables of a financial problem so that it can be used to make projections and/or answer ‘what if' questions. In particular, financial modeling can be combined with optimization modeling to...