This paper extends previous works that view transit systems as minimizing their after-subsidy costs. The paper uses the expense preference behavior model in economics and derives ®rst-order conditions for the manager. From the ®rst-order conditions, the paper formally shows that the decomposition of relative price ineciency between management behavior and subsidies found in the work of Sakano ...

This paper investigates an optimal capacity expansion policy for innovative product in a context of one supplier and one retailer. With a fully deductible contract, we employ the Stackelberg game model to examine the negotiation process of capacity expansion in a single period. We first derive the retailer’s optimal reservation strategy and then characterize the optimal capacity expansion polic...

The rent of shelter accounts for approximately a third of the Consumer Price Index (CPI). Using a new housing rent index (RRI) developed by Ambrose, Coulson, and Yoshida (2014), we modify the CPI and compute the Taylor rule for the period from 2000 to 2010. With this timely rent index, Taylor rule becomes more consistent with the Federal funds rate than the conventional calculations. However, t...

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...

We study a model with local public goods in which agents’ crowding e¤ects are formally distinguished from their taste types. It has been shown that the core of such an economy can be decentralized with anonymous admission prices (which are closely related to cost share prices). Unfortunately, such a price system allows for an arbitrary relationship between the public goods level in a given juri...

The classical synthesis problem for reactive systems asks, given a proponent process A and an opponent process B, to refine A so that the closed-loop system A||B satisfies a given specification Φ. The solution of this problem requires the computation of a winning strategy for proponent A in a game against opponent B. We define and study the co-synthesis problem, where the proponent A consists i...

Jones’ rely-guarantee calculus [1] for shared variable concurrency is extended to include probabilistic behaviours. We use an algebraic approach which combines and adapts probabilistic Kleene algebras with concurrent Kleene algebra. Soundness of the algebra is shown relative to a general probabilistic event structure semantics [21]. The main contribution of this paper is a collection of rely-gu...

The use of shared mutable state, commonly seen in object-oriented systems, is often problematic due to the potential conflicting interactions between aliases to the same state. We present a substructural type system outfitted with a novel lightweight interference control mechanism, rely-guarantee protocols, that enables controlled aliasing of shared resources. By assigning each alias separate r...