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Even in the face of deteriorating and highly volatile demand, firms often invest in, rather than discard, aging technologies. In order to study this phenomenon, we model the firm's profit stream as a Brownian motion with negative drift. At…

Optimization and Control · Mathematics 2019-01-08 H. Dharma Kwon

We consider a ranking and selection (R&S) problem with the goal to select a system with the largest or smallest expected performance measure among a number of simulated systems with a pre-specified probability of correct selection. Fully…

Methodology · Statistics 2021-04-20 A. B. Dieker , Seong-Hee Kim

We introduce a dynamic model in which a developer incrementally improves a product of uncertain quality over time, with the quality evolving as a controlled Brownian motion. At each moment in time, the developer can continue exploring by…

Theoretical Economics · Economics 2025-07-22 Santiago Oliveros

Software startups face with multiple technical and business challenges, which could make the startup journey longer, or even become a failure. Little is known about entrepreneurial decision making as a direct force to startup development…

Computers and Society · Computer Science 2017-12-05 Anh Nguven Duc , Yngve Dahle , Martin Steinert , Pekka Abrahamsson

Over the last 20 years, a very large number of startups have been launched, ranging from mobile application and game providers to enormous corporations that have started as tiny startups. Startups are an important topic for research and…

Software Engineering · Computer Science 2021-08-21 Juhani Risku

By drawing on large-scale online data we construct and analyze the time-varying worldwide network of professional relationships among start-ups. The nodes of this network represent companies, while the links model the flow of employees and…

Physics and Society · Physics 2019-04-18 Moreno Bonaventura , Valerio Ciotti , Pietro Panzarasa , Silvia Liverani , Lucas Lacasa , Vito Latora

Motivated by the interplay between structural and reduced form credit models, we propose to model the firm value process as a time-changed Brownian motion that may include jumps and stochastic volatility effects, and to study the first…

Pricing of Securities · Quantitative Finance 2009-04-16 T. R. Hurd

We address the issue of the factors driving startup success in raising funds. Using the popular and public startup database Crunchbase, we explicitly take into account two extrinsic characteristics of startups: the competition that the…

General Finance · Quantitative Finance 2019-06-10 Clement Gastaud , Theophile Carniel , Jean-Michel Dalle

Randomized controlled experiments assess new policy impacts on performance metrics to inform launch decisions. Traditional approaches evaluate metrics independently despite correlations, and mixed results (e.g., positive revenue impact,…

Applications · Statistics 2026-01-29 Hoiyi Ng , Guido Imbens

Predicting startup success presents a formidable challenge due to the inherently volatile landscape of the entrepreneurial ecosystem. The advent of extensive databases like Crunchbase jointly with available open data enables the application…

Machine Learning · Computer Science 2023-09-28 Mark Potanin , Andrey Chertok , Konstantin Zorin , Cyril Shtabtsovsky

We construct a Bayesian sequential test of two simple hypotheses about the value of the unobservable drift coefficient of a Brownian motion, with a possibility to change the initial decision at subsequent moments of time for some penalty.…

Probability · Mathematics 2020-07-28 Mikhail Zhitlukhin

Startup companies solve many of today's most complex and challenging scientific, technical and social problems, such as the decarbonisation of the economy, air pollution, and the development of novel life-saving vaccines. Startups are a…

We study a generalized geometric Brownian motion framework that incorporates both entries of new units and exit mechanisms for the current population, extending earlier stochastic resetting models where these rates are treated as identical.…

General Economics · Economics 2026-05-20 Suvam Pal , Viktor Stojkoski , Arnab Pal , Trifce Sandev

Online review communities are dynamic as users join and leave, adopt new vocabulary, and adapt to evolving trends. Recent work has shown that recommender systems benefit from explicit consideration of user experience. However, prior work…

Artificial Intelligence · Computer Science 2017-08-10 Subhabrata Mukherjee , Stephan Guennemann , Gerhard Weikum

We begin by exploring the intuition of Brownian motion by explaining its birth through the observations of Robert Brown and later through Bachelier's work on its applications to the financial market and finally its rigorous and concretized…

Statistical Finance · Quantitative Finance 2021-10-26 Yorgos Protonotarios , Pantelis Tassopoulos

Startups often represent newly established business models associated with disruptive innovation and high scalability. They are commonly regarded as powerful engines for economic and social development. Meanwhile, startups are heavily…

Computational Finance · Quantitative Finance 2024-06-11 Lele Cao , Vilhelm von Ehrenheim , Sebastian Krakowski , Xiaoxue Li , Alexandra Lutz

In this paper, we focus on multiple sampling problems for the estimation of the fractional Brownian motion when the maximum number of samples is limited, extending existing results in the literature in a non-Markovian framework. Two classes…

Methodology · Statistics 2023-04-18 Xiang Cui , Alexandra Chronopoulou

Investors are interested in predicting future success of startup companies, preferably using publicly available data which can be gathered using free online sources. Using public-only data has been shown to work, but there is still much…

Machine Learning · Computer Science 2023-12-12 Emily Gavrilenko , Foaad Khosmood , Mahdi Rastad , Sadra Amiri Moghaddam

This paper presents a new prediction model for time series data by integrating a time-varying Geometric Brownian Motion model with a pricing mechanism used in financial engineering. Typical time series models such as Auto-Regressive…

Applications · Statistics 2020-01-01 Abdullah AlShelahi , Jingxing Wang , Mingdi You , Eunshin Byon , Romesh Saigal

This paper introduces a method for linking technological improvement rates (i.e. Moore's Law) and technology adoption curves (i.e. S-Curves). There has been considerable research surrounding Moore's Law and the generalized versions applied…

Econometrics · Economics 2018-05-17 Christopher L. Benson , Christopher L. Magee
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