We consider a market game with a continuum of consumers, where the measure of each type is stochastic. Nature selects the set of active consumers, who make bids and o¤ers on ` ¡ 1 spot market trading posts. Existence of type-symmetric Nash equilibrium is proven. When facing price uncertainty, best responses are unique, and a Nash equilibrium to the sell-all game is typically not a Nash equilibr...

The integration of intermittent resources of power generation, such as wind and solar, will lead to unprecedented energy price fluctuations and increasing price uncertainty. Besides improving forecasting, electricity retailers can meet this challenge by partly adopting the demand side of the electricity markets to the fluctuating supply side. The necessary communication infrastructure for this ...

Measuring demand uncertainty is a key activity in supply chain planning. Of various methods of estimating the standard deviation of demand, one that has been employed successfully in the recent literature uses dispersion among experts’ forecasts. However, there has been limited empirical validation of this methodology. In this paper we provide a general methodology for estimating the standard d...

I n this research, we apply robust optimization (RO) to the problem of locating facilities in a network facing uncertain demand over multiple periods. We consider a multi-period fixed-charge network location problem for which we find (1) the number of facilities, their location and capacities, (2) the production in each period, and (3) allocation of demand to facilities. Using the RO approach w...

We develop a two-stage model of the LNG market to determine the incentives to enter long-term contracts vs. spot trade and to understand the causes of new contract terms. First we study how LNG importers and exporters negotiate long-term supply contracts and make investments under demand uncertainty. Second we analyze spot trade when demand is known, capacities and long-term supplies are fixed....

Acknowledgments The authors would like to thank Midori Tanino and Ved Sud of the FAA for their support and encouragement. Within the Volpe Center, we would like to thank Dick Bair, Rick Oiesen and Ken Howard for reviewing the report and their valuable comments and suggestions that improved its content. We also thank Mary Costello for editing this report. The Enhanced Traffic Management System (...

uncertainty is undoubtedly an inevitable part of programming process. a lot of effective factors in the water resources’ performance are not deterministic while their values are surely needed for the design and implantation of water systems. since an optimal design of water distribution systems is in demand of a just evaluation of the costs, efficient operation of such systems calls for a prope...

Transport network pricing schemes are an integral traffic management strategy that can be implemented to reduce congestion, among other network impacts. However, the problem of determining tolls becomes much more complex when multiple sources of demand uncertainty are considered. This work proposes a novel tolling model based on a particular variant of strategic user equilibrium in which users ...