We study the effects of credit risk in a supply chain where one retailer deals with competing risky suppliers who may default during their production lead-times. The suppliers, who compete for business with the retailer by establishing wholesale prices, are leaders in a Stackelberg game with the retailer. The retailer, facing uncertain future demand, chooses order quantities while weighing the ...

I study U.S. gasoline prices following Hurricane Rita to show that short-lived geographical differences in the severity of wholesale gasoline price spikes are associated with long-lasting geographical differences in retail prices. In most U.S. cities, wholesale prices spiked significantly for roughly two weeks following the hurricane. However, in cities where this spike was particularly large, ...

Producers in a perfectly competitive industry compete to obtain shelf space at the retail level. Barring contract observability problems, slotting allowances are observed in equilibrium. Producers charge a high wholesale price, but give back their profits via up-front payments to retailers. However, if the individual supplier retailer wholesale price terms are unobservable by competitors, then ...

This paper argues that many determinants of generic oligopoly market outcomes can be studied in bidbased wholesale electricity markets under much weaker assumptions than in other oligopoly industries because of their rich data, regulatory history, and clearly specified market rules. These methods are compared to those used in existing studies of oligopolistic industries where the best data avai...

rice production in most of asian countries has been increased more rapidly than population and this has been led to increase in supply and proportionately decrease in the real price of rice in world and domestic markets. furthermore, together with growth in production and national gross income of the country per-capita income has been increased and also demand for rice at national and internati...

This paper proposes an economic dispatch strategy for the electricity system with one generation company, multiple utility companies and multiple consumers, which participate in demand response to keep the electricity real-time balance. In the wholesale markets, multiple utility companies will commonly select a reliable agent to negotiate with the generation company on the wholesale price. It i...

Analyses were conducted to develop and test the efficacy of beef carcass cutability prediction equations. Data from 1,602 calf-fed steer carcasses (Germplasm Utilization Project; GPU) were used to develop the equations and an additional 1,160 calf-fed steer carcasses (Germplasm Evaluation Project; GPE) were used to validate the equations. In both experimental groups, USDA yield grade ranged fro...

We study a supply chain consisting of an upstream supplier who invests in innovation, which increases the value of products to end users, and downstream manufacturers who sell to end users. We analyze the supplier’s optimal innovation decision and show that the supplier’s optimal innovation level is higher with the wholesale price contract than with bilateral bargaining. Moreover, with the whol...

This paper explores the relationship between the structure of the market for the reÞning and distribution of gasoline and the wholesale price of unbranded gasoline sold to independent gasoline retailers. Theoretically, the effect of an increase in vertical integration is ambiguous because opposing forces act to increase and decrease wholesale prices. We empirically examine the effects of vertic...