Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly taken the form of a capacity obligation, efficient markets...

The COVID-19 pandemic has inflicted structural shocks on the global economic system by raising high economic uncertainty. Policymakers are exploring alternative measures and incentivizing foreign direct investment for the restoration of global economic operations to achieve short- and long-term...

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...

We propose a new model formulation for a three-echelon supply network design problem incorporating the concept of relocatable modular capacities. A robust supply network configuration must be determined based on uncertain demand. Furthermore, by incorporating the conditional value at risk...

Motivated by conversations with practitioners, this experimental paper considers (1) the production decisions (e.g., late stage Rejection, production by In-House Capacity, and production by Unauthorized Capacity) of a capacity constrained Supplier who faces a portfolio of different Buyer firms...

To what extent can accessing desired information transform our views, shape our behavior, or influence our wellbeing? What does occur in our mind when we find the information we need? Building upon these questions, what emotions arise in our consciousness when we encounter unexpected or...

Capacity utilization, and its role in inflation and inequality, has been at the center of the policy discussion in recent times. We study cyclical and distributional dynamics in an economy where capacity utilization choices are explicitly introduced and modeled. In the model, firms face...

This study delves into the origins of excess capacity by examining the reactions of capital, labor, and capital intensity. To achieve this, we have employed a novel three-layered production function model, estimating the elasticity of substitution between capital and labor as a nested layer,...

When dynamic production capacity is considered in production lot-sizing plans, it becomes very challenging to efficiently determine the optimal production plan. Many papers apply “at most one fractional production period” to develop efficient algorithms, but those algorithms are still...

This study focuses on the lot sizing problem with setup carry-over in multi-item multi-echelon capacitated production systems under uncertain customer demand. We investigate budget-uncertainty robust optimization and scenario-based stochastic programming, to address the uncertainty in customer...

We develop an original method for identifying the structural parameters of the production function and estimate the rate of capacity utilization in 12 EU countries. Our results provide evidence of persistent excess capacity and hysteresis in many EU countries, especially after the 2008’s...

This paper studies behavioural responses to a discontinuous (‘notched’) revenue scheme for renewable energy production, in which support the scheme depends on the installed capacity. We present a simple model demonstrating that this discontinuous revenue function causes capacity bunching...

Overlapping ownership has contrasting effects on capacity investments if duopoly firms invest sequentially. The follower’s reaction is less aggressive, but the leader acts more aggressively, either by choosing larger capacities or by shifting from accommodation to deterrence. If it shifts the...

Proponents of Bitcoin argue that demand for electricity from Bitcoin miners can lead to an increase in renewable electricity capacity. We rigorously evaluate this claim by estimating a Bitcoin electricity demand curve and include this demand curve in a long-run model of the Texas electricity...

The liberalization policies in the eighties and in the nineties governed the transition to market competition in the electricity sector of many countries. However, many of these markets experienced a wave of capacity-related regulatory reforms, driven by a growing concern regarding the capacity...

Problem definition: Price promotion is an efficient way to gain the market share due to the fact that all consumers are price sensitive. Even so, consumers are also sensitive to the service satisfaction, e.g., logistic service. Fierce price promotion can boost demand, but also makes the system...

General upgrading is a strategy that a firm can upgrade a customer with any higher-end product whenever a lower-end product is out-of-stock. In this paper, we consider the capacity planning problem to decide the initial capacity for multiple products to maximize the expected total profit when...

We study a new variant of the school choice problem in which capacities can be altered by distributing additional seats across schools in response to students’ reported preferences. We show that heuristic solutions to this capacity design problem can be inefficient, even if they focus on...

Proponents of Bitcoin argue that demand for electricity from Bitcoin miners can lead to an increase in renewable electricity capacity. We rigorously evaluate this claim by estimating a Bitcoin electricity demand curve and include this demand curve in a long-run model of the Texas electricity...

We study how overlapping ownership affects the timing and size of capacity investments in duopoly. In addition to standard accommodation and delay strategies, internalization allows a leader to block follower entry. Follower timing and capacity reactions are less aggressive, making outcomes less...

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...

The food processing industry has been confronted with unprecedented challenges as the costs of raw materials have risen rapidly, owing in part to the increased use of grains for ethanol. It is critical to comprehend how these trends affect the industry and potential coping techniques. This study...

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...

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...

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...

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...

The Spanish economy was the most hit by the Great Recession. It suffered a greater decrease in the gross domestic product (GDP) (affecting especially internal demand). However, it suffered a greater increase in exports (the so-called Spanish "miracle"). Particularly, Spanish SMEs incorporation...