Optimal Hiring and Firing Strategy for Maximizing Time- discounted Total Impulse Dividend Profits
The major purpose of this paper is to discuss an optimal hiring, firing and dividend strategy of a corporation for maximizing the total dividend profits, in which the total profits is time-discounted impulse dividend amounts from present to bankruptcy. The work of Larry Shepp and Albert Shiryaev in 1996 has discussed this problem, but the goal in their work is to maximize the total singular dividend profits, and the singular dividend is hard to manipulate in the real world. In fact, the dividend should be discrete form even if the amounts of dividend are small, and impulse dividend process is easier to implement in practice. So, we consider the impulse dividend form of the problem, i.e., the dividend amounts is carried out by the approach that the fortune jumps from the upper point jumps to a lower point. Based on this, we analysis the optimal hiring, firing and dividend strategy. We give a simple stochastic model for the optimal size of staff as a function of its wealth and provide a quantitative theory with explicit prescriptions for increasing, decreasing or leaving constant the number of personnel. The model is extremely simple and it should be useful for guiding or, at the least, stimulating thought about corporate sizing strategy. Finally, we give some numerical examples for some explicit parameter values.
Hiring and Firing Strategy Impulse Dividend Strategy Brownian Motion Quasi-variational Inequality Solution
YANG Ruicheng QIN Xuezhi
School of Management Science, Dalian University of Technology Dalian, China
国际会议
The Fifth InternationalSymposium on Management of Technology(ISMOT07)(第五届技术与创新管理国际研讨会)
杭州
英文
504-507
2007-06-01（万方平台首次上网日期，不代表论文的发表时间）