Wholesale electricity markets are becoming ubiquitous, offering consumers access to competitively-priced energy. The cost of energy is often correlated with its environmental impact; for example, environmentally sustainable forms of energy might benefit from subsidies, while the use of high-carbon sources might be discouraged through taxes or levies. Reacting to real-time electricity price fluc...

This paper provides a new metric, knowledge management performance index (KMPI), for assessing the performance of a firm in its knowledge management (KM) at a point in time. Firms are assumed to have always been oriented toward accumulating and applying knowledge to create economic value and competitive advantage. We therefore suggest the need for a KMPI which we have defined as a logistic func...

Price cap regulation (PCR) has now been employed in the telecommunications industry for more than a quarter century. We review the experience with PCR and offer an explanation for its popularity. PCR‟s design flexibility, its ability to limit undesirable strategic behavior, declining industry costs, and developing competition all enhanced the appeal of PCR. We also review some surprises that ha...

The paper considers the use of a Consumer Price Index (CPI) for three possible purposes: (1) as a Cost of Living Index (COLI); i.e., as a measure of the relative cost of achieving the standard of living when facing two different sets of prices for the same group of commodities; (2) as a consumption deflator; i.e., the price change component for a decomposition of a value ratio into price and qu...

for useful discussions, comments, and suggestions. Of course, all remaining errors are our own. Abstract This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors' information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the like...

T paper provides a model of the competitive newsvendor problem in which there is price competition following the inventory decisions. Using the biform game formalism of Brandenburger and Stuart (2004), the price competition is modeled by considering the core of the induced cooperative game. Such an analysis allows price competition to be modeled without a priori assumptions about price-setting ...

A number of studies have considered the evaluation of efficiency in higher education institutions. In this paper we focus on the issue of revenue efficiency, in particular ascertaining the extent to which, given output prices, producers choose the revenue maximising vector of outputs. Following Johnson and Ruggiero (2011), we then relax the price taking assumption to consider the case in which ...

I recent years, the issue of copyright protection for intellectual properties such as computer software, music CDs, and videos has become increasingly important. It is often claimed that illegal copying of intellectual property costs companies billions of dollars in lost revenues and reduces firms’ incentives to innovate. Some researchers have shown that copying can be beneficial to firms when ...

We analyze models of product differentiation with perfect price discrimination and free entry. With a fixed number of firms, and in the absence of coordination failures, perfect price discrimination provides incentives for firms to choose product characteristics in a socially optimal way. However, with free entry, the number of firms is always excessive. Our results apply to a large class of mo...

A firm facing price dependent stochastic demand aims to maximize its total expected profit over a planning horizon. In addition to the regular unit selling price, the firm can utilize quantity discounts to increase sales. We refer to this dual-pricing strategy as quantity-based price differentiation. At the beginning of each period, the firm needs to make three decisions: replenish the inventor...