We consider a model in which production of a downstream good requires access to an excludable upstream resource owned by a vertically integrated firm. The quality of the resource depends on an investment made by the owner and impacts the demand curve in the downstream market. Under open access, the owner must share the resource with downstream competitors at a regulated tariff, determined after...

The emergence of budget airlines, the advent of new sales channels, the disappearance of traditional fare-class fences, and other on-going changes in the airline industry pose serious challenges to traditional revenue management models, which make some rigid and unrealistic assumptions. One of these is that passengers who do not get the fare they want book and travel on other airlines or do not...

In the future Internet, different applications such as Voice over IP (VoIP) and Video-on-Demand (VoD) arise with different demands on Quality of Service (QoS). Different kinds of service classes (e.g. gold, silver, bronze) should be supported in a network node. In the network node, packets are queued using a multiqueue system, where each queue corresponds to one service class. The customers of ...

This paper examines a revenue neutral green tax reform along the lines of the Double Dividend hypothesis. Using a dynamic general equilibrium model calibrated to the US economy, we find that increasing gasoline taxes and using the revenue to reduce capital income taxes does indeed deliver both types of welfare gains: from higher consumption of market goods ( an efficiency dividend), and from a ...

We examine the problem of designing a strategy-proof auction in an online setting. This means that agents can arrive and depart dynamically. Thus, the auction mechanism must be able to decide on the optimal allocation of goods based only on bid information from the agents that have already arrived and not on future arrivals. If a good is to be allocated to an agent, the mechanism must do so bef...

We study the tradeoff between efficiency and service quality in tandem systems. We reward efficiency by assuming that a revenue is earned each time a job is completed, and we penalize poor service quality by incorporating positive holding costs. We study the dynamic assignment of servers to tasks with the objective of maximizing the long-run average profit. For systems of arbitrary size, genera...

In the management of container sea-rail intermodal transportation, dynamic pricing problem with uncertain conditions has significant impacts on the benefit and competitiveness of a multimodal transport operator. Based on the revenue management theory and the features of container sea-rail intermodal transport, this paper develops a two stages optimal model which integrates dynamic pricing and s...

This paper discusses how the effects of taxes on economic behavior are important for revenue estimation, for calculating efficiency effects, and for understanding short-term macroeconomoic consequences. The primary focus is on taxes on labor income but some attention is given to taxes on income from saving. Specific calculations illustrate the importance of behavioral responses for accurate cal...

Governments are in the early stages of providing constituents with information and services online over the Internet. E-government service decisions should be rooted in solid finance principles, such as efficiency, equity and revenue adequacy. Pricing decisions should be tailored to meet the demands of particular constituent groups and the revenue needs of government. By so doing, governments c...

The Internet is heading towards efficiency with the continued deployment of technologies such as Content Distribution Networks (CDN) and with the introduction of Peer-toPeer (P2P) localization. These technologies reduce the amount of costly traffic that Internet Service Providers (ISPs) must send to other ISPs. While these advances will undoubtedly cause many residential ISPs to gain profit, th...