We study a two-period duopoly game with capacity accumulation under demand uncertainty, production and time-to-build constraints. These considerations are relevant in network industries such as electricity markets and hot spot markets.We characterize and compare open-loop, Markov perfect and closed-loop Nash equilibrium investments.

We consider the stochastic subscriber line model as a spatial stochastic model for telecommunication networks and we are interested in the evaluation of the required capacities at different locations of the network in order to provide, in fine, an estimation of the cable system which has to be installed. In particular, we consider hierarchical telecommunication networks with higher–level compon...

The paper introduces a new understanding of freeway capacity. Here capacity is understood as the traffic volume below which traffic still flows and above which the flow breaks down into stop-and-go or even standing traffic. It is easy to understand that a capacity in this sense is by no means a constant value. Empirical analysis of traffic flow patterns, counted at 5minute intervals over severa...

We describe a multistage, stochastic, mixed-integer programming model for planning capacity expansion of production facilities. A scenario tree represents uncertainty in the model; a general mixed-integer program defines the operational submodel at each scenario-tree node, and capacity-expansion decisions link the stages. We apply “variable splitting” to two model variants, and solve those vari...

This paper dedicates to exploring and exploiting the hidden resource in wireless channel. We discover that the stochastic dependence in wireless channel capacity is a hidden resource, specifically, if the wireless channel capacity bears negative dependence, the wireless channel attains a better performance with a smaller capacity. We find that the dependence in wireless channel is determined by...

Concepts of temperature, heat, and entropy are extended to packet routing on multiclass wireless networks with particular challenges including network directionality, channel interference, channel capacity, time-varying topology, and stochastic arrivals. Applying thermodynamic principles in the framework of combinatorial geometry, a novel physics-oriented multiclass diffusion process is develop...

This paper summarizes recent contributions on the transmission capacity of ad hoc networks. Although it is notoriously difficult to derive general end-to-end capacity results for ad hoc networks, the transmission capacity framework allows for quantification of achievable single-hop rates by focusing on a simplified physical/MAC-layer model. By using stochastic geometry to quantify the multi-use...

We develop a model of budget allocation for permanent and contingent workforce under stochastic demand. The level of permanent capacity is determined at the beginning of the horizon and is kept constant throughout whereas the number of temporary workers to be hired must be decided in each period. Compared to existing budgeting models, this paper explicitly considers a budget constraint. Under t...

This paper examines the reliability-based stochastic transit assignment problem with elastic demand. A Variational Inequality (VI) model for this problem is developed. The VI model considers capacity, waiting time and in-vehicle travel time as stochastic variables, and includes Spiess and Florian’s (1989) and de Cea and Fernández’s (1993) models as special cases. A reliability-based stochastic ...