Decision Making & Negotiations

Monetary models based on cash-in-advance constraints make strong predictions about the stochastic properties of endogeneous variables such as the velocity of circulation of money, the rate of inflation, and real and nominal interest rates. We develop numerical methods to understand these predictions because the models cannot be characterized analytically. We calibrate some cash-in-advance models using driving processes estimated from U. S. time-series data to generate model predictions that are compared to sample statistics.

A conceptual model is developed that describes the relationships among consumer values, utility, and ownership of durables. These relationships are tested empirically using data on a variety of discretionary durables collected from a sample of 735 adults. Results support the model structure and suggest that augmenting the List of Values (Kahle 1983) with a measure of materialism improves prediction of value-related consumer behavior.

Bernard Frieden and Lynne Sagalyn provide an in-depth analysis of public-private partnerships that have resulted in several large downtown retail redevelopment projects. These projects were dependent in part on an improvement in underlying factors such as the revitalization of the downtown office market. But, more important, these projects owe their existence to innovative entrepreneurial urban policy. This essay shows how current city policies evolved from the experience gained from redevelopment efforts launched under federal auspices.

In this paper, a new algorithm for computing optimal (s, S) policies is derived based upon a number of new properties of the infinite horizon cost function c(s, S) as well as a new upper bound for optimal order-up-to levels S* and a new lower bound for optimal reorder levels s*. The algorithm is simple and easy to understand. Its computational complexity is only 2.4 times that required to evaluate a (specific) single (s, S) policy. The algorithm applies to both periodic review and continuous review inventory systems.

We analyze a continuous-time, two-stage production/inventory system. In the first stage, a common intermediate product is produced in batches, and possibly stored. In the second phase, the intermediate product is fabricated into n distinct finished products. Several finished products may be included in a single production batch of limited capacity to exploit economies of scale. We propose a planning methodology to address the combined problem of joint setup costs and capacity limits (per setup).

In many important combinatorial optimization problems, such as bin packing, allocating customer classes to queueing facilities, vehicle routing, multi-item inventory replenishment and combined routing/inventory control, an optimal partition into groups needs to be determined for a finite collection of objects; each is characterized by a single attribute. The cost is often separable in the groups and the group cost often depends on the cardinality and some aggregate measure of the attributes, such as the sum or the maximum element.

We empirically explore the accuracy of an easily computed approximation for long run, average performance measures such as expected delay and probability of delay in multiserver queueing systems with exponential service times and periodic (sinusoidal) Poisson arrival processes. The pointwise stationary approximation is computed by integrating over time (that is taking the expectation of) the formula for the stationary performance measure with the arrival rate that applies at each point in time.

We examine the effects of nonstationarity on the performance of multiserver queueing systems withe exponential service times and sinusoidal Poisson input streams. Our primary objective is to determine when and how a stationary model may be used as an approximation for a nonstationary system. We focus on a particular quesion: How nonstationary can an arrival process be before a simple stationary approximation fails? Our analysis reveals that stationary models can seriously underestimate delays when the actual system is only modestly nonstationary.

Observers viewed random-dot optical flow displays that simulated self-motion on a circular path and judged whether they would pass to the right or left of a target at 16 m. Two dots in 2 frames are theoretically sufficient to specify circular heading if the orientation of the rotation axis is known. Heading accuracies were better than 1.5° with a ground surface, wall surface, and 3-dimensional cloud of dots and were constant over densities down to 2 dots, consistent with the theory.