In this paper, we consider a new corporate bond-pricing model with credit-rating migration risks and a stochastic interest rate. In the new model, the criterion for rating change is based on a predetermined ratio of the corporation’s total asset and debt. Moreover, the rating changes are...

A multi-agent model of travelers competing to utilize a roadway in time and space is presented in this paper to illustrate the effect of congestion and pricing on traveler behaviors and network equilibrium. To realize the spillover effect among travelers, N-player games are constructed in which...

Abstract: Driving behaviors at intersection are complex because drivers have to perceive more traffic events than normal road driving and thus are exposed to more errors with safety consequences. Drivers make real-time responsesin a stochastic manner. This paper presents our study using Hidden...