We consider a single-period inventory model in which a risk-averse retailer faces uncertain customer demand and makes a purchasing-order-quantity and a selling-price decision with the objective of maximizing expected utility. This problem is similar to the classic newsvendor problem, except: (a) the distribution of demand is a function of the selling price, which is determined by the retailer; ...

only with price risk (Ward and Fletcher; Peck). Subsequently, research has considered Incorporation of futures markets into the Peck) Subseqently, research has considered theory of the firm under uncertainty has reproduction and price risks (Rolfo), price and ceived considerable attention in risk manrisks (Harris and Baker) and price agement. A theoretical model of optimal firm production, and ...

This paper shows that a market price of nominal risk plays an important role in the determinacy of the price of money under a stochastic continuous−time monetary economy. It is presented that a sufficient condition for the determinacy of the price of money is either an exogenously given nominal short rate or an exogenously given market price of nominal risk, which implies that a different marke...

This paper examines the competitiveness of winner-take-all price competition in homogeneous product oligopoly environments where underlying buyer demands and/or firms’ costs need not be continuous. Our analysis is motivated by the observation that a variety of economic settings have these features. For example, in 1996 an Ivy League university solicited bids from several vendors for its initiat...

This paper addresses quantity risk in the electricity market and explores several ways of managing such risk. The paper also addresses the hedging problem of a load-serving entity, which provides electricity service at a regulated price in electricity markets with price and quantity risk. Exploiting the correlation between consumption volume and spot price of electricity, an optimal zero-cost h...

the purpose of this research was identifying socio-economic characteristics affected on respondents’ participation in contract farming. the survey was conducted using structured questionnaire in populous states namely kedah, kelantan, terengganu, pahang, perak, selangor and johor in peninsular malaysia. a total of one-hundred and sixty seven ffv farmers were randomly selected and personally int...

According to static models of industrial organization, a rise in competition decreases prices. In this paper, I test whether this conclusion can be reversed in the mobile telecommunications markets where dynamic e ciency e ects might be signi cant. The empirical test relies on the change in the intensity of competition introduced by the entry of the fourth mobile operator in France and the merg...

Production timing is an essential element in fresh vegetable growers’ efforts to maximize profitability and reduce income risks. The present study uses biophysical simulation modeling coupled with a dual crop (tomatoes, sweet corn) whole-farm economic formulation to analyze the effects of growers’ risk aversion levels and price consideration (seasonal or annual price consideration) in expected ...

In this paper we propose a jump-diffusion type model which recovers the main characteristics of electricity spot price dynamics in the Nordic market, including seasonality, mean-reversion and spiky behavior. We show how the calibration of the market price of risk to actively traded futures contracts allows for efficient valuation of Nord Pool's Asian-style options written on the spot electricit...