We examine the value of price commitment for a nonprofit organization using individual level purchases over a series of concert performances. To decide on a pricing policy, the performing arts organization must be able to accurately measure when each ticket will be sold and what type of audience will purchase the tickets for each performance. We use a competing hazards framework to model the ti...

In estimating the cost-effectiveness of diagnostic procedures, it is helpful to treat diagnostic information as a commodity with a unit price. The amount of useful information provided by a test result can be measured in binary units (bits), and the unit price of the information produced by the test result can be expressed in dollars per bit in much the same way that the price of gold is given ...

We investigate the effect of sequential commitment in the decentralized newsvendor model with price-dependent demand. Sequential commitment allows the self-profit maximizing parties to commit to contract parameters (e.g., wholesale price, retail price, buyback price and order quantity) sequentially and alternately, and we investigate its effect on the equilibrium profits of the channel and its ...

This paper developed a stochastic programming model that integrated the most recent regulation rules of the Spanish peninsular system for bilateral contracts in the day-ahead optimal bid problem. Our model allows a price-taker generation company to decide the unit commitment of the thermal and combined cycle programming units, the economic dispatch of the bilateral contracts between all the pro...

A commonly observed two-stage pricing strategy for a custom-made product involves a prepurchase entry fee for a potential consumer and a purchase price if he decides to buy the product. We solve and compare two settings: In the first, the firm does not commit in advance to the second-stage price and in the second, the firm does. We show that without a commitment mechanism, the two price points ...

We examine the effects of competition and decentralized ownership on resource scheduling. We show that centralized scheduling of multi-owned resources under imperfect information m y face dificulties that do not arise when resources are centrally owned. We pelfomz a simulation case study using a Lagrangian relaxation-based unit commitment algorithm modified to simulate proposed second-price poo...

We examine the effects of competition and decentralized ownership on resource scheduling. We show that centralized scheduling of multi-owned resources under imperfect information may face difficulties that do not arise when resources are centrally owned. We perform a simulation case study using a Lagrangian relaxation-based unit commitment algorithm modified to simulate proposed second-price po...