In critical energy infrastructure sectors (e.g. electric power generation, natural gas transportation, oil refining capacity) maintaining certain level of excess capacity is socially valuable (as it serves to protect against unexpected market conditions) but not necessarily compatible with the incentives for individual firms in the market. In this paper, we develop a dynamic oligopoly model wit...

In a model with endogenous number of innovating firms, we show that whether patent protection increases R&D investment is ambiguous, and depends on the market demand function and the cost of R&D. If the market size increases with number of firms, patent protection reduces R&D investment if the cost of R&D is sufficiently high, and higher product differentiation increases the possibility of lowe...

This paper presents the case for and the evidence in favour of passive investment strategies and examines the major criticisms of the technique. I conclude that the evidence strongly supports passive investment management in all markets—smallcapitalisation stocks as well as large-capitalisation equities, US markets as well as international markets, and bonds as well as stocks. Recent attacks on...

The approval by FERC of a regulated natural gas pipeline’s market-based rate application depends upon the availability of substitute pipelines with sufficient capacity to maintain the current transport price. But how much alternate capacity is enough? Clearly, the price will not increase when alternate pipelines have unsubscribed capacity equal to the capacity of the applicant pipeline, since t...

Cyclic overlays may provide multiple paths between a publisher and a subscriber, an advertisement-tree and a matching subscription enables only one path for notifications routing in Publish/Subscribe (PS) systems. This poses serious challenges in offering dynamic routing when network conditions like congestion, and link or broker failures are detected. We argue that the tight coupling between a...

Group membership regulation is a useful mechanism for multicast congestion control: RLM, RLC, FLID-DL, and WEBRC form a promising line of multi-group protocols where receivers provide no feedback to the sender but control congestion via group subscription. Unfortunately, the group subscription mechanism also offers receivers an opportunity to elicit self-beneficial bandwidth allocations. In par...

This paper quantifies the economic benefits associated with the introduction of greater spatial granularity in short-term pricing in the California wholesale electricity market. On April 1, 2009, California switched to a nodalpricing market with an integrated day-ahead forward market and real-time imbalance market from its original zonal market design with bilateral day-ahead scheduling, a real...

This paper demonstrates a method to how reserve capacity and cost allocation could be determined in a pool-based and disaggregated market model. The method considers both the spinning reserve and interruptible loads as the operating reserve services. In the proposed market, generators and consumers (including participation of interruptible loads) submit offers and bids to the independent system...