Towards equilibrium offers in unit commitment auctions with nonconvex costs

We compare two types of uniform-price auction formats commonly used in wholesale electricity markets—centrally committed and self-committed markets. Auctions in both markets are conducted by an independent system operator that collects generator bids and determines which generators will operate and how much electricity each will produce. In centrally committed markets, generators submit two-part bids consisting of a startup cost and a variable energy cost. Self-committed markets force generators to incorporate their startup costs into a one-part energy bid. The system operator in a centrally committed system ensures that each generator recovers the startup and energy costs stated in its two-part bid, while no such guarantees are made in self-committed markets. The energy cost ranking and incentive properties of these market designs remains an open question. While the system operator can determine the most efficient dispatch with a centralized market, the auction mechanism used to solicit generator data compels generators to overstate costs. Self commitment might involve less efficient dispatch but have better incentive properties. We derive Nash equilibria for both market designs in a symmetric duopoly setting. We also derive simple conditions under which the two market designs will be expected cost-equivalent.     

IMPACT OF THE MINIMUM WAGE ON THE INCIDENCE OF SECOND JOB HOLDING IN BRITAIN

The advent of any earnings boost, such as provided by the introduction of a minimum wage, might be expected to reduce the supply of low‐paid individuals wanting to hold a second job. This paper uses difference‐in‐differences estimation on a panel of individuals matched across successive Labour Force Surveys around the time of the introduction of the national minimum wage in the United Kingdom in order to estimate the impact of the minimum wage and its subsequent upratings on second job working. There is little evidence to suggest that the extra pay provided by the introduction of the minimum wage was sufficient to affect the incidence of second job holding significantly. However, hours worked in the main job by second job holders may have risen relative to those not covered by the minimum wage; and hours worked in second jobs may have fallen for those whose second job was initially below the minimum.     

The Effect of Overconfidence and Underconfidence on Consumer Value

Although the effect of knowledge miscalibration (i.e., the inaccuracy in subjective knowledge relative to objective knowledge) on consumer purchase decisions has been investigated, its effect in the usage stage of consumption is little understood. This paper examines the effect of knowledge miscalibration in terms of both overconfidence (i.e., when subjective knowledge is inflated) and underconfidence (i.e., when subjective knowledge is deflated) on the dimensions of consumer value (i.e., efficiency, excellence, play, and aesthetics). The paper makes the case that overconfidence and underconfidence should be treated separately as they trigger different consumption consequences. Several hypotheses are tested through two studies: a covariance‐based study (Study 1) and an experimental study (Study 2). In Study 1, overconfidence and underconfidence are measured, while in Study 2 they are experimentally manipulated. Findings of both studies show that underconfidence negatively influences efficiency, excellence, and aesthetics, and overconfidence negatively influences play. Also, Study 1 finds a negative effect of underconfidence on play and Study 2 finds a negative effect of overconfidence on excellence and aesthetics. Findings reveal that knowledge miscalibration negatively impacts consumers’ usage experiences. This implies that in designing product or service experiences suppliers benefit from ensuring that consumers achieve a reduced level of knowledge miscalibration.     

Interest rate volatility,asymmetric interest rate pass through and the monetary transmission mechanism in the Caribbean compared to US and Asia

We analyse asymmetric interest rate pass through, the impact of interest rate volatility on interest rates and the monetary transmission mechanism in the countries of the CSME² using the Asymmetric TAR and MTAR cointegration models by Enders and Siklos (2001) and the EC-EGARCH(1, 1)-M model by Wang and Lee (2009), who examined the same issue for the US and nine Asian countries. The CSME is a unique case of study given that it contains within it a monetary union: the OECS². First, our results show that there is complete pass through in the retail lending rate for Trinidad and Tobago and for St. Lucia and therefore, by extension, in all the countries of the OECS³ but not the other countries of the CSME. In contrast, Wang and Lee (2009) found complete pass through for the US deposit rate but not in the rates of the other nine Asian countries. Second, in Wang and Lee (2009) the results of the TAR and MTAR models show asymmetric cointegrating relationships in the lending rate of three Asian countries and the deposit rate of five Asian countries. Comparatively, our results show asymmetric cointegrating relationship in the lending and deposit rate of only three countries out of six: Jamaica, Guyana and St. Lucia. Third, the results from the conditional mean equation in the EC-EGARCH(1, 1)-M model in Wang and Lee (2009) show that for the countries with asymmetric cointegrating relationships, the lending rate displays downward adjustment rigidity and the deposit rate displays upward adjustment rigidity. In contrast, our results show that both rates for Jamaica display upward adjustment rigidity and both rates for Guyana and St. Lucia display downward adjustment rigidity. Finally, similarly to Wang and Lee (2009), our results from the EC-EGARCH(1, 1)-M models show that the effect of interest rate volatility on interest rates varies among countries. Three out of the Asian countries from Wang and Lee (2009) support the collusive pricing arrangement hypothesis while in our case it happens only in two countries out of six from the CSME: Guyana and St. Lucia. Moreover, the leverage effect exists in the lending rate for two out six countries in the CSME as it happens in Wang and Lee (2009) in two out of their Asian countries. Along the same lines, the leverage effect exists in the deposit rate of three countries in the CSME, contrary to Wang and Lee (2009), who do not find any evidence at all. This shows evidence of an important heterogeneity in the behaviour of the CSME countries and that Trinidad and Tobago and St. Lucia (showing the effect of belonging to a monetary union) are our only analysed countries where, as in the US, there is complete pass through and the central bank can transfer all the cost associated with an increase in its policy rate to the retail rates.     

‘Devolution’ of transport powers to Local Government: Impacts of the 2004 Traffic Management Act in England

The concept of ‘Devolution’—the transfer of powers away from the Central Government to more local bodies of Government, has been used across many different areas of policy and by many different national governments. This paper examines the devolution of transport powers to the existing Local Traffic Authorities in England via the 2004 Traffic Management Act. The paper first presents a summary of how several different nations have undertaken this process of devolving transport powers and responsibilities to either new or existing bodies. It then presents research from an electronic survey concerning how English Local Traffic Aut`horities are choosing to use some of the new powers available to them and their opinion on complementary areas of transport policy. Research is also presented from structured telephone interviews, concerning how individual Local Authorities perceive the efficacy and equity of the new legislation. Overall, the results show that only some of these new powers are likely to be used by English Local Authorities, with limited variation in how different types of LTA are choosing to implement these new powers. The structured telephone interviews provided some evidence that rural Authorities in particular are more dissatisfied with the legislation and consider some of the measures unhelpful. The results provide some insights on the formulation of devolved policy applicable to existing Local Government bodies and the varying benefits that can be perceived to apply to different types of Local Authority. Conclusions are drawn on some of the practical difficulties arising from the English experience, and lessons of relevance are drawn for other nations considering a similar devolution of transport powers.     

Cooperation or resistance? Representing workers' health and safety in a hazardous industry

This study considers the actions of worker health and safety representatives in coalmines in Queensland, where there is little evidence of the facilitating role of management previous studies have associated with the successful operation of worker representation in occupational health and safety. It examines how worker representatives deliver their pluralist representational role in a context characterised by essentially unitary thinking amongst their employers and the effectiveness of the strategies they use.     

Laying the foundations of international careers research

As an editorial to the special issue “new avenues in international careers research” this article discusses the roots of the international careers research stream, which sits at the intersection between career studies, HRM and international management. In order to support future studies in this emerging area of enquiry, we attempt to lay down the foundations of a research agenda based around what we see as the three core areas of interest: contextualised careers research, comparative careers research and careers research in internationally operating organisations. After providing some suggestions for the kinds of theoretical and methodological tools that will be required to build on these foundations, we introduce the five empirical papers that comprise this special issue.