An Extension of the Bierman-Hausman Model for Credit Granting

Yvo M. I. Dirickx and Lee Wakeman
Additional contact information
Yvo M. I. Dirickx: Katholieke Universiteit, Leuven
Lee Wakeman: University of Rochester

Management Science, 1976, vol. 22, issue 11, 1229-1237

Abstract: This paper extends the Bierman-Hausman credit-granting model by proving that although the distribution on the probability of collection in the case of failure is no longer a conjugate Beta, it remains tractable; the model therefore need no longer be terminated in the case of failure. Further theorems on the structure of optimal policies, which result in a considerable reduction of the dynamic programming state space, are then presented, and the paper concludes with a discussion of extensions and applications.

Date: 1976
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.22.11.1229 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:22:y:1976:i:11:p:1229-1237

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().