Income inequality and the existence of rural areas where access is difficult may mean that the entire population does not have access to a network facility. The reasons are the existence of large sunk costs and low service affordability. The former strongly depends on geography and historical circumstances. The latter is also positively correlated with GDP per capita. We present a model in whic...

We introduce a simple strategic dynamic model with random demand growth to investigate the incentives for capacity investments. We study Markovian equilibria where the firms’ decisions depend on the current capacity stock only. For these non-collusive equilibria, unexpected investments allow the firms to increase their market share, but they also generate excess capacity that drastically depres...

Responsiveness to dynamic market changes in a cost-effective manner is becoming a key success factor for any manufacturing system in today’s global economy. Reconfigurable manufacturing systems (RMSs) have been introduced to react quickly and effectively to such competitive market demands through modular and scalable design of the manufacturing system on the system level, as well as on the mach...

Efficient wholesale markets should drive preference revealing bidding where generators offer the majority of their power at short run marginal cost (SRMC). However, most renewables have very low SRMCs, which in a competitive market is likely to lead to an increasing proportion of low priced periods. This has led to suggestions that a capacity market may be required in the Australian National El...

1 First released in April 2003. Abstract – This paper proposes a scheme for the management of network congestion in the Internal Electricity Market (IEM) of the European Union. This scheme tries to combine the rigor in the treatment of the energy and transmission capacity transactions with the flexibility and pragmatism that are necessary to make the scheme compatible with the current diversity...

We consider a market in which capacity-constrained generators compete in scalar-parameterized supply functions to servean inelastic demand spread throughout a transmission constrained power network. The market clears according to a locationalmarginal pricing mechanism, in which the independent system operator (ISO) determines the generators’ production quantities tominimize the reve...

In the new digital age, information is available in large quantities. Since information consumes primarily the attention of its recipients, the scarcity of attention is becoming the main limiting factor. In this study, we investigate the impact of advertisement pressure on a cultural market where consumers have a limited attention capacity. A model of competition for attention is developed and ...