Risk Aversion in Travel Mode Choice with Rank-Dependent Utility

Using 2004 stated preference data on travel mode collected in the Zürich area, different parametric specifications of the rank-dependent utility function in a logit mixture model show that commuters are weakly averse to small-time losses. The results also justify Yaari's dual theory of choice under risk, that the utility function is linear on outcomes but that the perception of corresponding probabilities is biased. For leisure travel, the travelers are risk neutral to small losses of time.     

The queuing theory machine interference model: use and application

This paper aims at making the queuing theory machine interference model a usable tool for process designers, production managers, and others who face decisions regarding the number of machines and the size of crew to operate/maintain them. The model is presented conceptually and compared with other existing models. Next, the model is analysed, and parameter calculations are detailed: a ready-to-implement procedure is given to carry out these calculations. Finally, the use of the model and its application in the work-study context are illustrated by examples.     

AN EXTENSION OF LERNER'S MONOPOLY INDEX FOR MARKETS WITH A DISPARITY BETWEEN LONG- AND SHORT-RUN DEMAND ELASTICITIES

This paper develops a theoretical analysis of steady state monopoly pricing in markets with a disparity between long- and short-run demand elasticities, based on a separation between the long-run demand schedule and the adjustment process that underlies actual demand levels. This sheds light, in a practical context, on the impact of the speed of adjustment and the firm's discount rate on its equilibrium markup; and on the measurement of realized monopoly power. An illustrative application of the analysis to existing empirical data supplements the theoretical presentation.