2016
DOI: 10.1016/j.orl.2016.04.008
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Optimal dynamic resource allocation to prevent defaults

Abstract: We consider a resource allocation problem, where a rational agent has to decide how to share a limited amount of resources among different companies that might be facing financial difficulties. The objective is to minimize the total long term cost incurred by the economy due to default events. Using the framework of multiarmed restless bandits and, assuming a two-state evolution of the default risk, the optimal dynamic resource sharing policy is determined. This policy assigns an index value to each company, w… Show more

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Cited by 12 publications
(5 citation statements)
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References 18 publications
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“…Ayesta et al used the gap analysis framework as a tool to find out the gaps in human resource allocation in California school districts. After literature analysis and comparison, qualitative research uses formative evaluation methods to simulate the practice of manpower allocation [10]. Witteveen et al used the genetic algorithm (GA) to solve the problem of human resource allocation.…”
Section: Related Workmentioning
confidence: 99%
“…Ayesta et al used the gap analysis framework as a tool to find out the gaps in human resource allocation in California school districts. After literature analysis and comparison, qualitative research uses formative evaluation methods to simulate the practice of manpower allocation [10]. Witteveen et al used the genetic algorithm (GA) to solve the problem of human resource allocation.…”
Section: Related Workmentioning
confidence: 99%
“…For resource allocation in distributed scheduling, Xu et al [5] present a nondominated sorting genetic algorithm-based multi-objective method (NSGA-II) [10]. They aimed at minimizing the time and cost in load balancing using resources to achieve Pareto optimal front.…”
Section: Related Workmentioning
confidence: 99%
“…Several methods are available for a multi-objective scheduling problem [4]. The current methods of allocation of resources, such as FIFO [1] and Round-Robin [5] which are used in the cloud, do unfair allocation regardless of priority between tasks.…”
Section: Introductionmentioning
confidence: 99%
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“…The main objective of the allocation techniques is to minimize the waiting time and execution time of a submitted job to minimize allocation cost. Popular allocation schemes like FIFO [2] and Round-Robin [7] are implemented in the data centers. However, these techniques are not able to allocate resources (virtual machines) efficiently regardless of task priority [8].…”
Section: Introductionmentioning
confidence: 99%