This paper discusses the way that different operational characteristics including existing capacity, scale economies, and production policy have an important influence on the capacity outcomes when firms compete in the market place. We formulate a game-theoretical model where each firm has an...

This paper presents some convex stochastic programming models for single and multi-period inventory control problems where the market demand is random and order quantities need to be decided before demand is realized. Both models minimize the expected losses subject to risk aversion constraints...

Inspired by the successful applications of the stochastic optimization with second order stochastic dominance (SSD) model in portfolio optimization, we study new numerical methods for a general SSD model where the underlying functions are not necessarily linear. Specifically, we penalize the SSD...

We consider price competition with a linear demand function and compare two cases. In the first case each distribution channel is vertically integrated, while in the second, decentralised, case the manufacturers and retailers act independently. We explore the effect of varying the level of price...

This paper explores the way that retail petrol prices may vary in a cyclical way as a result of competitive behavior by petrol retailers when some drivers choose to fill up early when a low petrol price is available. We include a stochastic model for an individual driver's use of petrol and...