This paper examines a two-period mixed market model in which a welfaremaximizing public firm and a profit-maximizing private firm can use inventory investment as a strategic device. It is then demonstrated that the equilibrium in the second period coincides with the Stackelberg solution where the private firm is the leader, and at equilibrium, both social welfare and the private firm’s profit a...

Recent natural gas price increases have resulted in acutely higher fertilizer prices. Profit and environmental concerns have increased interest in identifying optimal nitrogen application rates. Previous estimates of the profit maximizing nitrogen rate (PMNR) have been estimated assuming that price is fixed and exogenous of yield. We construct a model in which price is correlated to yield shock...

Team Orienteering with Decreasing Profits (DP-TOP) extends the classical Team Orienteering problem (TOP) by considering the profit of each client as a decreasing function of time. It consists of maximizing the sum of collected profit by a fixed number K of vehicles, visiting each client at most once. In this work, we present lower bounds based on a Dantzig-Wolfe decomposition and column generat...

In this paper, a multi-objective multi-period multi-product supply chain network design problem is introduced. This problem is modeled using a multi-objective mixed integer mathematical programming. The objectives are maximizing the total profit of logistics, maximizing service level, and minimizing inconsistency of operations. Several sets of constraints are considered to handle the real situa...

This paper analyses capital tax competition between jurisdictions of different size when multinational firms can shift some fraction of their tax base between them. For the case of revenue maximizing governments, we show that introducing profit shifting will not generally increase downward pressure on tax rates. We find that profit shifting decreases the tax-base elasticity of the low tax juris...

We develop and implement a model for a profit maximizing firm that provides an intermediation service between commodity producers and commodity end-users distributed over a realistic spatial network. Producers and end-users trade with the firm through contracts for delivery of grain during the marketing season. The firm begins the marketing season with a portfolio of prearranged purchase and sa...

We study the ability of banks and merchants to influence the consumer’s payment instrument choice. Consumers participate in payment card networks to insure themselves against three types of shocks— income, theft, and their merchant match. Merchants choose which payment instruments to accept based on their production costs and increased profit opportunities. Our key results can be summarized as ...

In this paper, we study the dynamics of competition in the payment card market. This is done through a multi-agent based model, which captures explicitly the commercial transactions at the point of sale between consumers and merchants. Through simulation, we attempt to model the demand for payment instruments on both sides of the market. Constrained by this complex demand, a Generalised Populat...

We use a statistical model to estimate impulse responses of sectoral price indices to aggregate shocks and to sector-specific shocks. In the median sector, 100 percent of the long-run response of the sectoral price index to a sector-specific shock occurs in the month of the shock. The Calvo model and the sticky-information model match this finding only under extreme assumptions concerning the p...

D the payment scheme have an effect on inventory decisions in the newsvendor problem? Keeping the net profit structure constant, we examine three payment schemes that can be interpreted as the newsvendor’s order being financed by the newsvendor herself (scheme O), by the supplier through delayed order payment (scheme S), and by the customer through advanced revenue (scheme C). In a laboratory s...