The aim of this paper is to describe the state-of-the-art in simulation and to illustrate benefits and problems of linking micro and macro models by analysing flat tax proposals for Germany. The analysis shows that a personal income flat tax can indeed overcome the fundamental equity efficiency trade-off while simultaneously increasing the tax revenue. However, this result does not hold for a f...

We study a comprehensive framework for sponsored search which incorporates advertiser budgets, query frequency forecasts, and pricing and ranking schemes. We propose a linear program for optimizing revenue (or the total value to advertisers) that has an exponential number of variables; however, we describe how it can be solved efficiently using column generation. The formulation is easily exten...

Traditional auction theory assumes that bidders possess values defined solely on the auctioned object. There may, however, be cases in which bidders possess preferences over the revenue achieved by the auctioneer. We present here a comprehensive framework of price preference valuations, unifying several phenomenon ranging from preference for charitable giving to shill bidding. We compare expect...

This paper presents a revenue maximisation model for sales channel allocation based on dynamic programming. It helps the media seller to determine how to distribute the sales volume of page views between guaranteed and nonguaranteed channels for display advertising. The model can algorithmically allocate and price the future page views via standardised guaranteed contracts in addition to real-t...

One of the main priorities of companies involved in supply chains is improving the quality of their products. However, as in other parts of supply chain management, decentralized decision-making in supply quality management is prevalent, which causes inefficiencies such as the well-known double marginalization phenomenon. Coordinating schemes, such as the revenue sharing contract, can contribut...

T coordination of supply chains by means of contracting mechanisms has been extensively explored theoretically but not tested empirically. We investigate the performance of three commonly studied supply chain contracting mechanisms: the wholesale price contract, the buyback contract, and the revenue-sharing contract. The simplified setting we consider utilizes a two-echelon supply chain in whic...

We consider a decentralized two-period supply chain in which a manufacturer produces a product and sells it through a retailer facing a price-dependent demand. We assume that the secondperiod production cost declines linearly in the first-period production, but with a random learning rate. As the mean and/or the standard deviation of the learning rate increase, the traditional double marginaliz...

This paper develops a payoff equivalence theorem for mechanisms with ambiguity averse participants with preferences of the Maxmin Expected Utility (MEU) form (Gilboa and Schmeidler [8]). We use our payoff equivalence result to explicitly characterize the revenue maximizing private value auction mechanism for agents with arbitrary forms of ambiguous beliefs. We also show that the revenue ranking...

We study the problem of selling n items to a single buyer with an additive valuation function. We consider the valuation of the items to be correlated, i.e., desirabilities of the buyer for the items are not drawn independently. Ideally, the goal is to design a mechanism to maximize the revenue. However, it has been shown that a revenue optimal mechanism might be very complicated and as a resul...

Improving energy efficiency is one of the most important energy policies in many countries. This study mainly focused on the economic and environmental effects of energy efficiency improvements in Iran’s electricity sector on Iran’s economy using a computable general equilibrium framework. Furthermore, the potential benefits of carbon reduction were explored. The results showed that the most si...