Established in 1984, the Wharton Risk Management and Decision Processes Center develops and promotes effective corporate and public policies for low‐probability events with potentially catastrophic consequences through the integration of risk assessment, and risk perception with risk management strategies. Natural disasters, technological hazards, and national and international security issues ...

We introduce a measure of elasticity of stochastic demand, called the elasticity of the lost-sales rate, which offers a unifying perspective on the well-known newsvendor with pricing problem. This new concept provides a framework to characterize structural results for coordinated and uncoordinated pricing and inventory strategies. Concavity and submodularity of the profit function, as well as s...

We consider the pricing/lead-time menu design problem for a monopoly service where time-sensitive customers have demand on multiple occasions. Customers differ in their demand rates and valuations per use. We compare a model where the demand rate is the private information of the buyers to a model where the firm has full information. The model assumes that customers queue for a finite-capacity ...

We consider the setting in which an electric power utility seeks to curtail its peak electricity demand by offering a fixed group of customers a uniform price for reductions in consumption relative to their predetermined baselines. The underlying demand curve, which describes the aggregate reduction in consumption in response to the offered price, is assumed to be affine and subject to unobserv...

Yujie Xiao 1, Shuai Yang 2, Lianmin Zhang 3,* and Yong-Hong Kuo 4 1 Jiangsu Key Laboratory of Modern Logistics, School of Marketing and Logistic Management, Nanjing University of Finance and Economics, Nanjing 210046, China; [email protected] 2 School of Economics and Management, Changshu Institute of Technology, Changshu 215500, China; [email protected] 3 School of Management and Engineer...

In contrast to single-product pricing models, multi-product pricing models have been much less studied because of the complexity of multi-product demand functions. It is highly nontrivial to construct a multi-product demand function on the entire set of nonnegative prices, not to mention approximating the real market demands to a desirable accuracy. Thus, many decision-makers use incomplete dem...

Recently, several Web-scale knowledge harvesting systems have been built, each of which is competent at extracting information from certain types of data (e.g., unstructured text, structured tables on the web, etc.). In order to determine the response to a new query posed to such systems (e.g., is sugar a healthy food?), it is useful to integrate opinions from multiple systems. If a response is...

Residential loads have great potential to enhance the efficiency and reliability of electricity systems via demand response (DR) programs. One major challenge in residential DR is how learn handle unknown uncertain customer behaviors. In this letter, we consider problem where load service entity (LSE) aims select an optimal subset customers optimize some performance, such as maximizing expected...