Energy companies with commitments to meet customers’ daily electricity demands face the problem of hedging load and price risk. We propose a joint model for load and price dynamics, which is motivated by the goal of facilitating optimal hedging decisions, while also intuitively capturing the key features of the electricity market. Driven by three stochastic factors including the load process, o...

Utility-based choice models are often used to determine a consumer’s purchase decision among a list of available products, to provide an estimate of product demands, and when data on purchase decisions or market shares are available, to infer consumers’ preferences over observed product characteristics. They also serve as a building block in modeling firms’ pricing and assortment optimization p...

water markets are instrumental in efficient allocation and pricing of scarce water by enhancing allocative and price efficiency of water use. the prerequisites for water market formation are tradable water rights independent from ownership of the land, extensive water canals, water use associations, and adequate market regulations. mojen water market has been facilitating exchange of alternativ...

a r t i c l e i n f o In competitive product markets, repeated interaction among producers with similar economic characteristics would be expected to result in convergence of their behaviors. If convergence does not occur, it raises fundamental questions related to the sustainability of heterogeneous competitive strategies. This paper examines the prices submitted to the British wholesale elect...

E®ective competition in wholesale electricity markets is a necessary feature of a successful electricity supply industry restructuring. We examine the degree of competition in the California wholesale electricity market during the period June 1998 to September 1999 by comparing the market prices with estimates of the prices that would have resulted if owners of instate fossil fuel generating fa...

This article addresses the supply and pricing of backup power to be provided by local distribution companies to industrial self-generators. Optimal self-generation investment and backup power contracting strategies for self-generators are characterized. The paper characterizes welfare-optimal pricing and second-best pricing for a local distribution company (Disco). The paper shows that optimal ...

Introduction In the early 1990's the power supply industries worldwide started to undergo a period of extensive changes. Electricity markets moved away from vertically integrated monopolies towards liberalized structures with power delivery being a bundle of several services mainly including generation, transmission and distribution. One reason for restructuring lied in the expectation that com...