This paper presents a deterministic and a stochastic mathematical model for maximizing the profits obtained by selling electricity produced through a cascade of dams and reservoirs in a spot market. The first model is based on deterministic electricity prices while the other integrates stochasticity through the management of a tree of potential price scenarios. Numerical results based on histor...

Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Please do not copy or distribute without explicit permission of the authors. Abstract Customer defection or churn is a widespread phenomenon that threatens fir...

In this paper we analyze the economic effects of implementing EPA’s newly proposed regulations for carbon dioxide (CO2) on existing U.S. coal-fired power plants using nonparametric methods on a sample of 144 electricity generating units. Moreover, we develop an approach for evaluating the economic gains from averaging emission intensities among the utilities’ generating units, compared to imple...

Area Editor: John H. Roberts Despite conventional wisdom that firm profits decrease with competitive entry, the empirical literaturefinds a number of situationswhere the entry of an equivalent-quality competitor into amarket led to higher profits for the incumbents. Our paper uses a standard linear Hotelling (1929)market to study how location choices affect the possibility that profits increase...

Retailers have long recognized that some categories aremore important than others in consumers’ store choice decisions. The overall profitability of a store requires careful categorylevel merchandising decisions to draw the most desirable consumers into the store. However, the traditional accounting measure of category profits offers imperfect helpmaking these decisions since it does not take i...