The Perception of Subjective Surfaces

It is proposed that subjective contours are an artifact of the perception of natural three-dimensional surfaces. A recent theory of surface interpolation implies that "subjective surfaces" are constructed in the visual system by interpolation between three-dimensional values arising from interpretation of a variety of surface cues. We show that subjective surfaces can take any form, including singly and doubly curved surfaces, as well as the commonly discussed fronto-parallel planes. In addition, it is necessary in the context of computational vision to make explicit the discontinuities, both in depth and in surface orientation, in the surfaces constructed by interpolation. It is proposed that subjective surfaces and subjective contours are demonstrated. The role played by figure completion and enhanced brightness contrast in the determination of subjective surfaces is discussed. All considerations of surface perception apply equally to subjective surfaces.

Risk Aversion in Inventory Management

Traditional inventory models focus on risk-neutral decision makers, i.e., characterizing replenishment strategies that maximize expected total profit, or equivalently, minimize expected total cost over a planning horizon. In this paper, we propose a framework for incorporating risk aversion in multi-period inventory models as well as multi-period models that coordinate inventory and pricing strategies. In each case, we characterize the optimal policy for various measures of risk that have been commonly used in the finance literature. In particular, we show that the structure of the optimal policy for a decision maker with exponential utility functions is almost identical to the structure of the optimal risk-neutral inventory (and pricing) policies. Computational results demonstrate the importance of this approach not only to risk-averse decision makers, but also to risk-neutral decision makers with limited information on the demand distribution.