Entry and Exit Decision Problem with Implementation Delay

2008 ◽  
Author(s):  
Marius Costeniuc ◽  
Michaela Schnetzer ◽  
Luca Taschini
Keyword(s):  
Decision Problem ◽  
Entry And Exit ◽  
Implementation Delay

scholarly journals Entry and Exit Decision Problem with Implementation Delay

2008 ◽  
Vol 45 (04) ◽  
pp. 1039-1059 ◽  
Author(s):  
Marius Costeniuc ◽  
Michaela Schnetzer ◽  
Luca Taschini
Keyword(s):  
Decision Problem ◽  
Analytic Solution ◽  
Time Lag ◽  
Probabilistic Approach ◽  
Stopping Time ◽  
Stopping Times ◽  
Maximization Problem ◽  
Entry And Exit ◽  
Brownian Motion With Drift ◽  
Implementation Delay

We study investment and disinvestment decisions in situations where there is a time lagd> 0 from the timetwhen the decision is taken to the timet+dwhen the decision is implemented. In this paper we apply the probabilistic approach to the combined entry and exit decisions under the Parisian implementation delay. In particular, we prove the independence between Parisian stopping times and a general Brownian motion with drift stopped at the stopping time. Relying on this result, we solve the constrained maximization problem, obtaining an analytic solution to the optimal ‘starting’ and ‘stopping’ levels. We compare our results with the instantaneous entry and exit situation, and show that an increase in the uncertainty of the underlying process hastens the decision to invest or disinvest, extending a result of Bar-Ilan and Strange (1996).

scholarly journals Entry and Exit Decision Problem with Implementation Delay

2008 ◽  
Vol 45 (4) ◽  
pp. 1039-1059 ◽  
Author(s):  
Marius Costeniuc ◽  
Michaela Schnetzer ◽  
Luca Taschini
Keyword(s):  
Decision Problem ◽  
Analytic Solution ◽  
Time Lag ◽  
Probabilistic Approach ◽  
Stopping Time ◽  
Stopping Times ◽  
Maximization Problem ◽  
Entry And Exit ◽  
Brownian Motion With Drift ◽  
Implementation Delay

We study investment and disinvestment decisions in situations where there is a time lagd> 0 from the timetwhen the decision is taken to the timet+dwhen the decision is implemented. In this paper we apply the probabilistic approach to the combined entry and exit decisions under the Parisian implementation delay. In particular, we prove the independence between Parisian stopping times and a general Brownian motion with drift stopped at the stopping time. Relying on this result, we solve the constrained maximization problem, obtaining an analytic solution to the optimal ‘starting’ and ‘stopping’ levels. We compare our results with the instantaneous entry and exit situation, and show that an increase in the uncertainty of the underlying process hastens the decision to invest or disinvest, extending a result of Bar-Ilan and Strange (1996).

Business processes in the insurance company: The method of operation through separating the key areas of activities

2020 ◽  
Vol 23 (11) ◽  
pp. 1269-1290
Author(s):  
A.A. Turgaeva
Keyword(s):  
Business Process ◽  
Business Processes ◽  
Systems Approach ◽  
Insurance Company ◽  
Entry And Exit ◽  
Control Procedures ◽  
Selection Of

Subject. This article analyzes the business processes in the insurance company, using the method of their operation with the selection of key areas of activity. Objectives. The article aims to describe certain business processes in insurance, highlighting participants, lines of activity, and the sequence of procedures. It analyzes the business process Settlement of Losses, which is one of the significant business processes in the insurance company. Methods. For the study, I used the methods of induction and deduction, analogy, and the systems approach. Results. Based on the analysis and description of business processes in the insurance company and the identification of key elements and steps in terms of the effectiveness of decisions, the article identifies the checkpoints of Entry and Exit, activity direction, and resources of the Settlement of Losses process. Conclusions. The application of the categories that split business processes makes it possible to develop step regulation for all processes and acceptable control procedures for different operations. The presented checkpoints at different steps of the business process will help identify weaknesses and eliminate them by re-checking the point.

Special Cases of the Decision Problem

1951 ◽  
Vol 49 (22) ◽  
pp. 203-221 ◽  
Author(s):  
Alonzo Church
Keyword(s):  
Decision Problem ◽  
Special Cases
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