The proliferation of both online and bricks and mortar outlet stores underscores the observation that secondary markets are readily accessible to retailers of short−life−cycle products. These secondary markets provide recourse channels for retailers to sell excess inventory of out of favor items at reduced prices when overstocking occurs in a primary market. We study the problem of determining ...

The implementation of margin trading and securities lending mechanism offers us a unique circumstance to analyze the impact of short selling regulations in China. We define the addition events as the stocks are included to the designated securities list and therefore can be sold short. By focusing on the 30 trading days around the addition events, the results document statistically significant ...

Companies in a variety of industries (e.g., airlines, hotels, theaters) often use last-minute sales to dispose of unsold capacity. Although this may generate incremental revenues in a short term, the long-term consequences of such a strategy are not immediately obvious: more discounted last-minute tickets may lead to more consumers anticipating the discount and delaying the purchase rather than...

We study a financial market with incompleteness arising from two sources: stochastic volatility and portfolio constraints. The latter are given in terms of bounds imposed on the borrowing and short-selling of a ‘hedger’ in this market, and can be described by a closed convex set K . We find explicit characterizations of the minimal price needed to super-replicate European-type contingent claims...

We analyze the intertemporal portfolio problem of an investor who has access to both taxable and tax-deferred (retirement) accounts and is subject to borrowing and short-selling constraints. We provide conditions under which the commonly used location rule of preferring higher-taxed assets in the tax-deferred account might not be optimal. We also derive analytical solutions for the optimal port...

The paper describes the use of an advanced optimization tool for short term scheduling of hydro power systems. The tool takes into account mixed-integer formulation and hence, startup costs for the start-up of units can be accounted for. The goal has been to quantify the improvements in cost reduction by using such a tool, and to see how this will influence upon the daily production planning. T...

Baseball cards exhibit anomalies that are analogous to those that have been documented in financial markets, namely, momentum, price drift in the direction of past fundamental performance, and IPO underperformance. Momentum profits are higher among active players than retired players, and among newer sets than older sets. Regarding IPO underperformance, we find newly issued rookie cards underpe...