On granting credit in a random environment

Karl Waldmann

Mathematical Methods of Operations Research, 1998, vol. 47, issue 1, 99-115

Abstract: The paper extends the Bierman-Hausman credit granting model by incorporating economic factors, which may vary randomly over time. Sufficient conditions are found for the optimality of simple credit policies. The monotonicity results are based on nonstandard orderings induced by the probability of collection. Moreover, monotonicity of the credit policy with respect to the prior information is studied. Copyright Physica-Verlag 1998

Keywords: Markovian decision processes; Bierman-Hausman credit granting model; nonstandard order relations (search for similar items in EconPapers)
Date: 1998
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DOI: 10.1007/BF01193839

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