If short sellers can destroy firm value by manipulating prices down, an informed blockholder has a powerful natural incentive to protect the value of his stake by trading against them. However, he also has a potentially conflicting incentive to use his information to generate trading profits. We show that a speculator can exploit this conflict and force the blockholder to buy a disproportionate...

The water of the Colorado River of the southwestern United States (U.S.) is presently used beyond its reliable supply, and the flow of this river is forecast to decrease significantly due to climate change. A recent interim report of the Colorado River Basin Water Supply and Demand Study is the first acknowledgment of these facts by U.S. federal water managers. In light of this new stance, we e...

Competition among stock exchanges has increased dramatically over the last decade. To attract trading volume, most exchanges introduced makertaker fees, an incentive scheme that rewards liquidity suppliers and charges liquidity demanders. Using a change in fees on the Toronto Stock Exchange, we analyze how the breakdown of trading fees between liquidity demanders and suppliers affects market ou...

The purpose of this paper is to analyze the real–time trading of electricity. We address a model for an auction–like trading which captures key features of the real–world electricity markets. Our main result establishes that, under certain conditions, the expected total payment to the electricity producers is independent on particular auction type. This result is analogous to the revenue equiva...

Considering the mismatch in supply of and demand for industrial process wastes, we investigate when interfirm waste utilisation can be both economically environmentally superior to no utilisation. The Nash bargaining approach is employed resolve incentive misalignment problem. Our analysis suggests that conversion strategy changes from over-conversion, full conversion, then partial with increas...

The smart grid is widely considered as an efficient and intelligent power system. With the aid of communication technologies, the smart grid can enhance the efficiency and reliability of the grid system through intelligent energy management. However, with the development of new energy sources, storage and transmission technologies together with the heterogeneous architecture of the grid network...