Darden University of Virginia (USA)
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The Pelayo Family Plays Roulette: The Prequel
Pfeifer, Phillip E.; Bodily, Samuel E.; Baucells, ManelCase DARDEN-QA-0847-EDecision AnalysisThe case presents data from 70,340 spins of four roulette wheels: three of which are real ("imperfect") and one of which is simulated ("perfect"). The challenge posed is to identify which of the four is the simulated wheel. After weeks spent recording spin results at their local casino, the members of the Pelayo family think they have identified three imperfect wheels. Before they start betting, they want to be certain that the three wheels they ...Starting at €8.20
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A GLUM Primer: The Risk-Adjusted Expected Value
Pfeifer, Phillip E.; Bodily, Samuel E.; Baucells, ManelTechnical Note DARDEN-QA-0849-EDecision AnalysisThe purpose of this note is to improve on the expected value criterion by incorporating the willingness and capability to take risk of a rational decision maker. First, this note will review the concept of expected net present value (ENPV) and demonstrate its limitations. Next, we introduce the notion of play capital, or the most one is willing to put at risk in view of one’s life circumstances, goals, and resources. Then, we introduce the genera...Starting at €8.20
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Vitaliy’s Purchase Decision
Baucells, Manel; Dydyshka, VitaliyExercise DARDEN-QA-0861-EDecision AnalysisThis short case presents the trade-offs that Vitaliy faces before purchasing a car. The case contains a consequence table showing five different cars and how they fare on six attributes, including price, user ratings, torque, fuel consumption, and engine power. The case is ideal to introduce the multiattribute methodology.Starting at €8.20
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To LED or Not to LED?
Baucells, Manel; Yemen, GerryCase DARDEN-QA-0862-EDecision AnalysisA director of marketing at a major big-box retailer in the United States finds herself overhearing a customer and a lighting specialist discuss the replacement of incandescent and halogen lightbulbs with LEDs in his house. The case provides sufficient data to perform the economic analysis of which lightbulb is more cost effective in terms of net present value. The results are at odds with the student’s intuitions. This case uses a durable consume...Starting at €8.20
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The Elevator Saga
Baucells, Manel; Yemen, GerryCase DARDEN-QA-0866-EDecision AnalysisThis case describes a common situation in old buildings, namely the decision as to whether intall an elevator. In this armchair case, we have an apartment building in Budapest with 3 towers, each containing 24 homeowners, with a possible interest in adding an elevator to each tower of the walk-up building. The case begins by discussing serveral ways to fairly distribute the cost if the elevators are approved. One way is an equal split. The second...Starting at €8.20
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Balance-Statement Reporting at Premium Capital Funds (B)
Lopez-Jimenez, Liliana; Orozco, Luis Antonio; Gentile, MaryCase DARDEN-OB-1307-ELeadership and People ManagementThis case is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. This B case contains a video and a transcript of an interview the case authors conducted with Ricardo Martinez on July 15, 2019, concerning his reflections on the ethical conflict described in the case and what he actually did about it.Starting at €5.74
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Balance-Statement Reporting at Premium Capital Funds (A)
Lopez-Jimenez, Liliana; Orozco, Luis Antonio; Martinez-Gomez, Ricardo Emilio; Gentile, MaryCase DARDEN-OB-1306-ELeadership and People ManagementThis case is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. In 2009, Ricardo Martinez, management assistant at Premium Capital Investment Advisors (PCIA), was asked to fabricate some of the information to be included in the monthly account balance statements addressed to five shareholders in Premium Capital Funds (Premium), a p...Starting at €8.20
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Resolving Trade-Offs: From Simple Heuristics to Multicriteria Analysis
Baucells, ManelTechnical Note DARDEN-QA-0914-EDecision AnalysisThis note discusses a variety of methods to assist intuition in complex situations with multiple objectives and a potentially large set of alternatives. It begins with heuristic rules, which are relatively simple ways to sort out alternatives without thinking too much about trade-offs. After discussing the reliability of such rules, it moves to multicriteria analysis, which is a more rational method of balancing conflicting objectives.Starting at €8.20
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Interbolsa’s Repo Trading: How to Stop an Insolvency Ticking Time Bomb (A)
Gentile, Mary; Lopez-Jimenez, Liliana; Arabia-Wartenberg, Jorge; Orozco, Luis AntonioCase DARDEN-OB-1356-ELeadership and People ManagementIn August 2004, Interbolsa’s risk management committee had to decide upon a request to double the authorized quota for repurchase agreements (repos) on Interbolsa’s own stock. Two months earlier, Jorge Arabia had joined Interbolsa, the largest stock brokerage firm in Colombia, as CFO. In this role, he had a seat in the risk management committee. Arabia had noticed that these repos carried large and diverse risks, not only for the firm but also f...Starting at €8.20
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Interbolsa’s Repo Trading: How to Stop an Insolvency Ticking Time Bomb (B)
Gentile, Mary; Lopez-Jimenez, Liliana; Orozco, Luis AntonioCase DARDEN-OB-1357-ELeadership and People ManagementIn August 2004, Interbolsa’s risk management committee had to decide upon a request to double the authorized quota for repurchase agreements (repos) on Interbolsa’s own stock. Two months earlier, Jorge Arabia had joined Interbolsa, the largest stock brokerage firm in Colombia, as CFO. In this role, he had a seat in the risk management committee. Arabia had noticed that these repos carried large and diverse risks, not only for the firm but also f...Starting at €5.74