Modeling regional electric power markets and market power

This paper develops a nonlinear, mathematical programming model for estimating production decisions in an open access, regional power market. Our approach allows one to estimate competitive power market equilibrium prices, which in turn offers empirical conclusions about marginal generation facilities, transmission interconnection congestion, and most importantly, load pockets and market power. Sensitivity analyses are conducted by subjecting the model to changes in production costs, peak hour demand, power imports, and transmission interconnection price assumptions. We then consider the issue of a firm's ability to exercise market power and the implications it may have on regional equilibrium power prices. The Louisiana power market is used as a case study for our work. Copyright © 2001 John Wiley & Sons, Ltd.     

Using 'hard' and 'soft' technologies for global new product development

This paper reports on a study of the use of 'hard' and 'soft' technologies as tools for managing global new product teams. 'Hard' technologies consist of electronic mail, teleconferencing, fax, video conferencing, and other electronic means of facilitating communication. 'Soft' technologies, on the other hand, reflect managerial behaviors that are necessary to deal with the social and behavioral aspects of global new product development. Our study suggests that:
The frequency of use of hard technologies is greater for higher versus lower performing global teams.
The set of hard technologies perceived to be important is different for higher versus lower performing global teams.
How well soft technologies are used is greater for higher performing global teams.
Soft technologies are seen as more important than hard technologies.
Implications of these findings for managers and future research are discussed.     

A learning-based model of repeated games with incomplete information

This paper tests a learning-based model of strategic teaching in repeated games with incomplete information. The repeated game has a long-run player whose type is unknown to a group of short-run players. The proposed model assumes a fraction of ‘short-run’ players follow a one-parameter learning model (self-tuning EWA). In addition, some ‘long-run’ players are myopic while others are sophisticated and rationally anticipate how short-run players adjust their actions over time and “teach” the short-run players to maximize their long-run payoffs. All players optimize noisily. The proposed model nests an agent-based quantal-response equilibrium (AQRE) and the standard equilibrium models as special cases. Using data from 28 experimental sessions of trust and entry repeated games, including 8 previously unpublished sessions, the model fits substantially better than chance and much better than standard equilibrium models. Estimates show that most of the long-run players are sophisticated, and short-run players become more sophisticated with experience.     

Alcune formule valide per lo studio di collettività aperte con rimpiazzo

Si dimostrano due formule relative, l'una, al calcolo del v.a.m. delle retribuzioni (o dei trattamenti pensionistici) percepite da una collettività aperta di «attivi», nell'ipotesi che gli uscenti da questa vengano via via rimpiazzati da un pari numero di individui aventi caratteristiche note; l'altra, alla determinazione degli ammontari annualmente pagati nelle stesse ipotesi.     

Equity Rights Issues in Spain: Flotation Costs and Wealth Effects

This paper analyses the flotation costs and the share price reaction of equity offerings in Spain. The results report a positive relationship between relative flotation costs and the underwriting of an issue, and a negative relationship between such costs and ownership concentration. Fixed flotation costs and a negative relationship with the gross offer proceeds are also observed. On average, there is a negative share price reaction on the date of the 'previous communication' to the Comisión Nacional del Mercado de Valores . The different sub-samples analysed according to the underwriting of the issue and the discount offered reveal no statistical differences.     

Towards an analysis of tax effects on labour market and allocation: A micro/macro approach

Summary Tax effects on labour market and allocation are analysed with a sectoral model which is based on the microeconomic theory of the behaviour of economic agents. The model contains a highly disaggregated household sector, an enterprise sector, equilibrium unemployment on the labour market and a detailed modelling of institutional aspects of the tax and social security system. The model is calibrated for 1985. Simulation results show that temporary increases of world trade and higher value-added tax rates do not affect the equilibrium unemployment rate in the long run. A higher replacement rate of unemployment benefits increases unemployment and a tax reform containing lower marginal and average tax rates reduces unemployment.The authors thank F.J.H. Don, C.J.J. Eijgenraam, F.H. Huizinga and R.M. van Opstal for assistance on the household model, the cumulated production structure approach, the wage model and the model of firm behaviour respectively, and other colleagues of the Central Planning Bureau for useful comments.See Shoven and Whalley (1984) and Borges (1986) for reviews, and Keller (1980) for an application to The Netherlands.See, for instance, Abel (1980), Summers (1981), Bruno and Sachs (1985), Van de Klundert and Peters (1986).Ginsburgh and Mercenier (1988) review AGE modelling and the disequilibrium approach.