A commonly observed two-stage pricing strategy for a custom-made product involves a prepurchase entry fee for a potential consumer and a purchase price if he decides to buy the product. We solve and compare two settings: In the first, the firm does not commit in advance to the second-stage price and in the second, the firm does. We show that without a commitment mechanism, the two price points ...

Several interconnected power systems worldwide have largely thermal and hydro production along with CO2 cap-and-trade (C&T) variable renewable energy sources (VRES). C&T policies increase VRES generation, socially optimal storage deployment could integrate output. However, reservoirs may be used strategically due to market power. We investigate these distortions assess measures for their mitiga...

This research project attempts to quantify the subjective quality of color vision that artists like Josef Albers have explored through their art. It is widely understood by artists and scientists that the appearance of a surface color is affected by its context. However, there are many questions yet to be answered about the specific spatial relationships between colors. This experiment uses an ...

We develop a version of the fundamental theorem of asset pricing for discrete-time markets with proportional transaction costs and model uncertainty. A robust notion of no-arbitrage of the second kind is defined and shown to be equivalent to the existence of a collection of strictly consistent price systems.