This paper compares internationally-tradeable permits with a uniform carbon price, as seen through the lens of an individual country. To ensure a level playing field, these two approaches are initially calibrated to be welfare-equivalent for the country in a deterministic setting. While both price and quantity instruments have identical consequences under perfect certainty, outcomes differ subs...

In this paper‎, ‎the impacts of premium bounds of put option contracts on the operation of put option and day-ahead electricity markets are studied‎. ‎To this end‎, ‎first a comprehensive equilibrium model for a joint put option and day-ahead markets is presented‎. ‎Interaction between put option and day-ahead markets‎, ‎uncertainty in fuel price, impact of premium bounds, and elasticity of con...

In many power markets around the world the energy generation decisions result from two-sided auctions in which producing and consuming agents submit their price-quantity bids. The determination of optimal bids in power markets is a complicated task that has to be undertaken every day. In the present work, we propose an optimization model for a price-taker hydropower producer in Nord Pool that t...

Gray markets, also known as parallel imports, have created fierce competition for manufacturers in many industries. We analyze the impact of parallel importation on a price-setting manufacturer that serves two markets with uncertain demand, and characterize her policy against parallel importation. We show that ignoring demand uncertainty can take a significant toll on the manufacturer’s profit,...

In cloud computing, provisioning an optimal resource to consumer gets more and more crucial. Cloud computing consumers are able to use the set of computing resources by net. Cloud providers will receive some amount for these computational resources depending on usage of cloud resource. The provisional resource plans are reservation and also on demand. The computing resources will be provided ba...

Ongoing regulatory reforms have led to several novel spectrum sharing models under the general umbrella of dynamic spectrum sharing. The private commons model introduced by FCC in 2004 allows spectrum licensees to provide secondary access to spectrum on an opportunistic basis while retaining ownership. Since wireless communication systems are typically overprovisioned in order to deliver servic...

This paper investigates the incentives to commit price or retain price flexibility in a model in which exporting firms face different degrees of exchange rate uncertainty. The result shows that introducing exchange rate uncertainty can lead to the endogenous emergence of an unique leader-follower equilibrium; which firm emerges as price leader depends on the substitutability of products, the ma...

Uncertainty about long-term climate policy is a major driving force in the evolution of the carbon market price. Since this price enters the investment decision process of regulated firms, this uncertainty increases the cost of capital for investors and might deter investments into new technologies at the company level. We apply a real options-based approach to assess the impact of climate chan...

This paper examines how and why stock price synchronicity responds to accounting restatements in China. Using a matching sample, we document that accounting restatements drive down price synchronicity. A set of regression analyses show that the declined price synchronicity reflects the increased firm-level noise/uncertainty rather than firm-level information. Further investigations with PIN and...