We argue that the root cause behind the recent corporate scandals associated with CEO pay is the technology bubble of the latter half of the 1990s. Far from rejecting the optimal incentive contracting theory of executive compensation, the recent evidence on executive pay can be reconciled with classical agency theory once one expands the framework to allow for speculative stock markets.
This paper develops a stochastic general equilibrium model for an oligopoly, in which all inventory constraint parameters are endogenously determined. We propose several systems of demand processes whose distributions are dunctions of all retailers' prices and all retailers' service levels. We proceed with the investigation of the equilibrium behavior of infinite-horizon models for industries facing this type of generalized competition, under demand uncertainty.
Previously we demonstrated a method, Quantized Surface Complementarity Diversity (QSCD), of defining molecular diversity by measuring shape and functional complementarity of molecules to a basis set of theoretical target surfaces [Wintner E.A. and Moallemi C.C., J. Med. Chem., 43 (2000) 1993]. In this paper we demonstrate a method of mapping actual protein pockets to the same basis set of theoretical target surfaces, thereby allowing categorization of protein pockets by their properties of shape and functionality.
We develop a protocol for optimizing dynamic behavior of a network of simple electronic components, such as a sensor network, an ad hoc network of mobile devices, or a network of communication switches. This protocol requires only local communication and simple computations which are distributed among devices. The protocol is scalable to large networks. As a motivating example, we discuss a problem involving optimization of power consumption, delay, and buffer overflow in a sensor network. Our approach builds on policy gradient methods for optimization of Markov decision processes.
Many Strategic Account Programs are disconnected from the firm's strategic objectives and market place realities. If the Strategic Account Program is not central to your company's strategy formulation and implementation processes, it will have difficulty securing active senior management sponsorship and support. The Strategic Account Program then degenerates into a sales program and salespeople have difficulty getting alignment and commitment from other company functions.
Despite the obvious importance of understanding how business cycle fluctuations affect both individual companies and whole industries, not much marketing research focuses on the subject. Often, one only has aggregate information on the state of the national economy, even though cyclical contractions and expansions generally do not have an equal impact on every industry, nor on all firms in any given industry.
Previous studies on international marketing have typically asked the question: "how is the demand characterized across countries?" Such analysis is then used to provide guidelines for firms to enter new markets and/or to allocate marketing resources across countries.
We present a simple model where a firm will commit to a strictly positive hurdle rate on investment proposals by managers even though the two parties are symmetrically informed about the investments' profitability. Facing a positive hurdle rate, a manager who derives partial benefits from the investment profits will have more incentive to collect information about the projects. The optimal hurdle rate trades off the benefit of more information with the cost of foregoing ex post positive Net Present Value (NPV) projects.
This paper analyzes the role of jumps in continuous-time short rate models. I first develop a test to detect jump-induced misspecification and, using Treasury bill rates, find evidence for the presence of jumps. Second, I specify and estimate a nonparametric jump-diffusion model. Results indicate that jumps play an important statistical role. Estimates of jump times and sizes indicate that unexpected news about the macroeconomy generates the jumps. Finally, I investigate the pricing implications of jumps.