We consider the effect on profitability of using increasingly sophisticated regression-based methods of estimating and interpreting the parameters of the demand curve facing the neoclassical firm that newly enters an existing product market. Through simulation it is shown that in this particular...

An extensive North American pipeline grid that physically integrates individual natural-gas markets, in conjunction with economic ties binding the California markets to those at Henry Hub, Louisiana and the New York mercantile exchange via an array of financial instruments, suggests that the...

Hong Kong has almost perfect electricity reliability, the result of substantial investments ultimately financed by electricity consumers who may be willing to accept lower reliability in exchange for lower bills. But consumers with high outage costs are likely to reject the reliability...

We explore three voluntary service options—real-time pricing, time-of-use pricing, and curtailable/interruptible service—that a local distribution company might offer its customers in order to encourage them to alter their electricity usage in response to changes in the...

A large sample of daily electricity consumption and pricing data are available from a pilot study conducted by BC Hydro in British Columbia (Canada) of its residential customers under optional time-varying pricing and remotely-activated load-control devices for the four winter months of November...

This review is motivated by our recognition that an adequate and reliable electricity supply is a critical element in economic growth. From a customer’s perspective, electricity has several distinct attributes: quality, reliability, time of use, consumption (kWh) volume, maximum demand (kW),...

Japan׳s Fukushima nuclear disaster, triggered by the March 11, 2011 earthquake, has led to calls for shutting down existing nuclear plants. To maintain resource adequacy for a grid׳s reliable operation, one option is to expand conventional generation, whose marginal unit is typically fueled by...

Renewable portfolio standards (RPSs) and mandates to invest in cost-effective energy efficiency (EE) are increasingly popular policy tools to combat climate change and dependence on fossil fuels. These supply-side and demand-side policies, however, are often uncoordinated. Using California as a...

An important aspect of management is the periodic performance appraisal (PA) of subordinates. This paper focuses on inferring the criteria employed and weights attached to them by an assessor in any PA process. Linear programming (LP) is proposed as an alternative to policy capturing (PC) as the...

In this paper we develop a normative model that is built on an empirically relevant foundation. We observe that decision makers, among them advertisers, rely on estimated relationships in reaching resource allocation decisions, and we investigate the normative implications of this process. In...