Browsing by Subject "Transaction costs"
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ItemQuantification of transactional dispute resolution costs for the U.S. construction industry(2006) Gebken, Richard John; Gibson, G. Edward (George Edward), 1958-The construction industry has been a paradoxical leader in both dispute occurrences and dispute resolution systems for many years. While this may or may not be an enviable position, the industry has managed to develop and adopt many unique ways to address the potential risks of disputes. However, the justification for implementing these procedures has been based primarily upon contractual requirements, governmental regulations, court orders, limited previous experience, or basic reactionary instinct, and not on measured cost savings. This dissertation presents an exploratory effort to collect some of the first data on the true costs of resolving disputes in the construction industry. A methodology to capture these costs through transactional dispute resolution costs is proposed and a framework for dispute risk management is also explored. Data from approximately 80 individuals, representing 57 organizations, were used in this multi-disciplinary research study focusing on the quantification of transactional costs (direct, indirect, and hidden sources) as a criterion for evaluating various dispute resolution and prevention methodologies. Quantitative questionnaires, qualitative case studies, and a comprehensive literature review are presented in an effort to identify efficient dispute resolution methodologies. The results indicate that resolving a dispute in the construction industry is an expensive endeavor no matter which dispute resolution methodology is selected. While direct inferences to the industry as a whole is limited by the relatively small sample size, the identification and quantification of transactional dispute resolution costs may provide sufficient encouragement towards both the further adoption of cost efficient dispute resolution/prevention methodologies and the reduction of the antagonistic environment for which the construction industry is known. ItemA shadow-price approach of the problem of optimal investment/consumption with proportional transaction costs and utilities of power type(2012-08) Choi, Jin Hyuk, 1983-; Žitković, Gordan; Sirbu, Mihai; Larsen, Kasper; Tompaidis, Stathis; Zariphopoulou, ThaleiaWe revisit the optimal investment and consumption model of Davis and Norman (1990) and Shreve and Soner (1994), following a shadow-price approach similar to that of Kallsen and Muhle-Karbe (2010). Making use of the completeness of the model without transaction costs, we reformulate and reduce the Hamilton-Jacobi-Bellman equation for this singular stochastic control problem to a non-standard free-boundary problem for a first-order ODE with an integral constraint. Having shown that the free boundary problem has a smooth solution, we use it to construct the solution of the original optimal investment/consumption problem in a self-contained manner and without any recourse to the dynamic programming principle. By analyzing the properties of the free boundary problem, we provide an explicit characterization of model parameters for which the value function is finite. Furthermore, we prove that the value function, as well as the slopes of the lines demarcating the no-trading region, can be expanded as a series of integer powers of [lambda superscript 1/3]. The coefficients of arbitrary order in this expansion can be computed.