We study the abilities of competitive markets to produce sufficient energy capacities to meet a fixed energy demand. Renewable energy producers with stochastic outputs and no variable costs compete against conventional energy producers with deterministic, pollutant outputs and increasing...

We investigate how capacity payments in combination with scarcity pricing of energy can ensure resource adequacy in electricity markets, defined as the ability of supply and other resources to provide enough energy and capacity to meet demand under steady-state operating conditions. This work...

There are many economic parameters that may affect environmental degradation. At the forefront of these parameters is the productive economic structures of the countries The present paper discusses the dynamic relationship between carbon dioxide (CO2) emissions, economic growth and productive...

An economy’s ability to provide food, energy, and manufactured goods for its population to consume reduces the chance that it experiences high consumer price inflation. However, no research has been done on exactly how much of these critical goods a country needs to be able to produce to keep...

This study builds on recent research giving the notion of capacity utilization clearer economic foundations. In this research optimal output Y* is defined as the minimum point on the firm's short-run average total cost curve, and capacity utilization is then computed as CU=Y/Y*, where Y is...

Many production systems cannot produce to stock and utilize capacity management to cope with variability in demand, for example Make-to-order (MTO) systems. Often, regular capacity can be increased through a flexible workforce, but the decision about the additional capacity must be made before...

We study an infinitely repeated oligopoly game in which firms compete on quantity and one of them is capacity constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little incentive to deviate from a cartel. We also present...

Additive manufacturing (AM), originally used for prototyping, is increasingly adopted for custom final part production across different industries. This usage brings new manufacturing opportunities for mass customization (MC). However, printing speed and production volume are two barriers to AM...

A stochastic two-country neoclassical rational expectations model with sticky prices -- optimally set by monopolistically competitive firms -- and possible excess capacity is developed to examine international spillover effects on output of monetary disturbances. The Mundell-Fleming model...

In this paper, we consider a supplier serving two competing manufacturers who produce and sell their products in the same market faced with the uncertain demand. The manufacturers can either participate in the supplier development programme by reserving their capacities from the supplier before...

High-Growth Enterprises (HGEs) have a large economic impact, but are notoriously hard to predict. Previous research has linked high-growth episodes to the configuration of lumpy indivisible resources inside firms, such that high capacity utilisation levels might stimulate future growth. We...

Investment decisions in competitive power markets are based upon thorough profitability assessments. Thereby, investors typically show a high degree of risk aversion, which is the main argument for capacity mechanisms being implemented around the world. In order to investigate the...

This paper presents a macroeconomics-friendly Post Keynesian model of the firm describing both an inventory theoretic approach and an entry deterrence approach to choice of excess capacity. The model explains why firms may rationally choose to have excess capacity. It also shows the two...

Delays in the availability of vaccines are costly as the pandemic continues. However, in the presence of adjustment costs firms have an incentive to increase production capacity only gradually. The existing contracts specify only a fixed quantity to be supplied over a certain period and thus...

Die Bundesregierung und die Europäische Kommission mussten in den letzten Wochen viel Kritik bezüglich ihrer Impfstoffbeschaffungsstrategie zur Eindämmung der Corona-Pandemie einstecken. Vor dem Hintergrund zu schleppend erscheinender Impfstofflieferungen und der zunehmenden Gefahr durch die...

For serial multi-echelon systems subject to production capacity limits at every stage, we consider a class of modified echelon base stock (MEBS) policies. To evaluate information requirements of such systems, we consider two separate inventory management mechanisms operated in a decentralized...

Manufacturers that utilize capacitated flexible resources to produce a variety of products are often exposed to large mismatches between supply and demand due to some irregularities in their demand patterns. These irregularities arise from (1) uncertainty about the number of orders received from...

In the European Union, energy markets are increasingly being liberalized. A case in point is the European natural gas industry. The general expectation is that more competition will lead to lower prices and higher volumes, and hence higher welfare. This paper indicates that this might not happen...

We present an equilibrium model of the prices of crude oil and refined products that accounts for supply and demand shocks, the elasticity of the supply and demand markets, and the characteristics of the production and adjustment costs of refiners. We use the model to examine the relation...

The article examines in detail the main areas and methodological features of a comprehensive analysis of movement and use of fixed capital of machine building enterprises. The fixed capital of enterprises is particularly important in the process of economic activity and it requires considerable...

The article examines in detail the main areas and methodological features of a comprehensive analysis of movement and use of fixed capital of machine building enterprises. The fixed capital of enterprises is particularly important in the process of economic activity and it requires considerable...

Renewable energy generation at the point of consumption (i.e., distributed generation) reducesconsumer's electricity expenditure, and eliminates the cost, complexity, and inefficiency associatedwith power transmission and distribution. In this paper, we address the problem of how aconsumer...

Motivated by the persistent lack of testing capacity in the COVID-19 pandemic, we study the question "who should be tested?" when capacity is limited, tests have errors, and patients differ in their prior probability of being infected. While health offcials initially prioritized testing patients...

Price promotion wars have been commonly observed in the online retail industry. One intuitive explanation is that firms cut their prices in the current period, hoping for locking in customers for future profit. While such practice is prevalent, our understanding of the role of service capacity...

We examine how the effects of incentivizing individuals to use healthcare depend on the capacity of the health system. We study a conditional cash transfer program (JSY) in India that paid women to give birth in medical facilities. We find that JSY doubled the number of deliveries for which the...

It is widely believed that cartels with too many members are destined to fail. The standard argument is that as the number of cartel members increases, shares of collusive profit diminish relative to deviation profits. We show that this argument is built on unreasonable assumptions about plant...

Chapter 1. Introduction -- Chapter 2. Are Current Policies on Track to Eliminate Poverty? -- Chapter 3. How Mainstream Economics Works -- Chapter 4. Basic Principles to Understand Macroeconomics -- Chapter 5. Markets Alone Make No Development -- Chapter 6. Developing Countries in Global...

Initially created as afterthoughts to competitive electricity markets, capacity markets were intended to enhance system reliability. They have evolved into massive, highly controversial, and poorly understood billion-dollar institutions. Electricity Capacity Markets examines the rationales for...

Financial crises are particularly severe and lengthy when banks fail to recapitalize after bearing large losses. We present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets with information asymmetries. Large equity losses...

Financial crises are particularly severe and lengthy when banks fail to recapitalize after bearing large losses. We present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets with information asymmetries. Large equity losses...