Digital Commons Network^™

Simulation Of The Colombian Firm Energy Market, Peter Cramton, Steven Stoft

Peter Cramton

We present a simulation analysis of the proposed Colombian firm energy market. The main purpose of the simulation is to assess the risk to suppliers of participation in the market. We also are able to consider variations in the market design, and assess the impact of alternative auction parameters. Three simulation models are developed and analyzed. The first model (Model 1) uses historical price data from October 1995 through May 2006 to assess the performance risk of hypothetical thermal and hydro generating units. The second model (Model 2) uses historical price and operating data to assess performance risk of the …

Household Heterogeneity And Optimal Inter-Temporal Pricing For A Durable-Good Monopoly, Winston T. H. Koh

Research Collection School Of Economics

In this paper, I extend the analysis in Koh (2006) to examine the optimality of inter-temporal price discrimination for a durable-good monopoly in a model where infinitely-lived households consume both durable goods and a stream of non-durable goods subject to different inter-temporal budget constraints. I also consider the multi-dimensional setting where households differ in both inter-temporal budget constraints and the utilities they derive from the consumption of the durable good.

Vertical Integration In Unregulated Industries With Essential Facilities, Felipe Balmaceda Assoc Prof., Eduardo Savedra Prof

Felipe Balmaceda

In this paper, we consider a market that is operated by a non-integrated monopoly upstream that owns an important essential facility and an duopolistic market downstream that is facing entry in the monopolistic upstream market. We show that: (i) for small fixed costs of building a new facility the unique equilibrium entails vertical integration for all firms and duplication of essential facilities; (ii) for an intermediate range, the unique equilibrium entails full vertical integration and a shared-facility; and (iii) for large fixed costs, the unique equilibrium entails vertical integration by the incumbent, no integration by the entrant and a shared-facility. …

De Movimiento Político A Cooperativa Una Investigación De La Evolución Del Mtd-La Matanza, Will Greene

Independent Study Project (ISP) Collection

This paper is an investigation of how one group of unemployed workers in Argentina, the MTD-La Matanza, responded to the economic and social deterioration wrought by the market liberalization of the Nineties. This investigation examines the emergence of the MTD-La Matanza as part of the larger political movement of “piqueteros” in the mid-Nineties, the division and neutralization of this movement by the Government’s “Planes Trabajar,” and the resulting transformation of the MTD-La Matanza to a self-managed cooperative. Through this examination, I highlight the way in which the cooperative crystallizes as an alternative response to the changes of the nineties, particularly …

Regímenes Especiales De Importación En El Paraguay, Francisco Carlos Ruiz Diaz

Francisco Carlos Ruiz Diaz

La aplicación de los Regímenes Especiales de Importación no armonizados, las listas de excepción al AEC y los acuerdos comerciales de preferencias arancelarias afectan la libre circulación de mercancías en el MERCOSUR e impiden avanzar hacia la consolidación institucional de la Unión Aduanera. Sin embargo, el hecho de que estos mecanismos sigan teniendo un perfil activo en propósitos de desarrollo productivo y de fomento a las exportaciones en cada uno de los países, revela las preferencias de los miembros por seguir manejando con cierta autonomía su propia Política Comercial Externa. El caso de Paraguay es el más significativo en términos …

No More Baseball Giveaways, Scott J. Wallsten

Scott J. Wallsten

No abstract provided.

Broadband And Unbundling Regulations In Oecd Countries, Scott J. Wallsten

Scott J. Wallsten

Broadband penetration and available speeds vary widely across OECD countries. Policymakers around the world, and especially in countries like the U.S. that lag in the rankings, are searching for policies to narrow those gaps. Relatively little empirical work tests possible reasons for these differences. In this paper I test the impacts of regulations and demographics on broadband development in a panel dataset across countries. In addition to adding to the meager empirical literature on broadband across countries, this paper is novel in two ways. First, it explicitly takes into account the many different types of unbundling regulations that countries have …

New England’S Forward Capacity Auction, Peter Cramton

Peter Cramton

This note provides a brief description of New England’s Forward Capacity Auction (FCA) for the procurement of electricity capacity. The description is based on the 6 March 2006 Settlement Agreement. The description here presents a simpler description of the auction mechanics, and limits the presentation to the key elements relevant to someone providing software and other support to implement the primary auction. In addition, some motivation for the approach is given. The description here is not a software specification, but rather a high-level description of the auction. Many implementation details are yet to be resolved. These details will be resolved …

Projecting The Economic Impact Of The Fayetteville Shale Play For 2005-2008, Jeffery T. Collins, Katherine A. Deck

Publications and Presentations

This study projects the general economic impact from exploration and development activities related to the Fayetteville Shale. The Fayetteville Shale is an unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, ranging in thickness from 50 to 325 feet and ranging in depth from 1,500 to 6,500 feet. The Fayetteville Shale is aerially extensive and may be present across numerous counties in central and eastern Arkansas, including the counties of Cleburne, Conway, Faulkner, Independence, Johnson, St. Francis, Prairie, Van Buren, White, and Woodruff.

Assessing The Economic Impact Of The Fayetteville, Arkansas Smoking Ban, Jeffery T. Collins

Publications and Presentations

This report is the third in a series of studies examining the impact of the implementation of the smoke-free ordinance in Fayetteville, Arkansas in March of 2004. The ban on smoking in public places in Fayetteville provides an opportunity to scientifically investigate the economic impact of this change in public policy. By comparing pre-ban historical economic growth rates to post-ban growth rates both within the city of Fayetteville and in comparable communities, some measure of the impact can be developed. Variables of interest include hotel, motel, and restaurant (HMR) taxes, employment, and sales taxes. The changes in these variables need …

The Convergence Of Market Designs For Adequate Generating Capacity, Peter Cramton, Steven Stoft

Peter Cramton

This paper compares market designs intended to solve the resource adequacy (RA) problem, and finds that, in spite of rivalrous claims, the most advanced designs have nearly converged. The original dichotomy between approaches based on long-term energy contracts and those based on short-term capacity markets spawned two design tracks. Long-term contracts led to call-option obligations which provide market-power control and the ability to strengthen performance incentives, but this approach fails to replace the missing money at the root of the adequacy problem. Hogan’s energy-only market fills this gap. On the other track, the short-term capacity markets (ICAP) spawned long-term capacity …

The Impact Of The Defense Industry Consolidation On The Aerospace Industry, Judy B. Davis

Theses and Dissertations

The purpose of this research was to investigate the impact of the defense industry consolidation on the aerospace industry. The defense industry is comprised of twelve sectors that impact different industries. This research focused on the formal aspects of the aerospace industry which supports six of the twelve defense sectors. The aerospace industry is identified by six North American Industry Classification System (NAICS) or Standard Industrial Classification (SIC) codes. Using the structure-conduct- performance paradigm, a method in industrial organization, this thesis focused on how the defense consolidation affected the structure and behavior of the aerospace industry. For structure, this study …

Telecommunications Regulation In U.S. States: Its Rise And Impacts In The Early Twentieth Century, Scott J. Wallsten

Scott J. Wallsten

No abstract provided.

Affidavit Of Peter Cramton, Peter Cramton

Peter Cramton

Affidavit in support of the settlement agreement defining the New England Forward Capacity Market. For ISO New England.

Ex Parte Of Peter Cramton, Peter Cramton

Peter Cramton

Ex parte communication on various auction rules for the AWS auction.

Economic Impacts Of The 2004 Services Directive, Henk Lm Kox

Henk LM Kox

#1; About CPB #1; Our research on Services Directive #1; Policy differences as market-entry barrier #1; Effects of Services Directive on trade and FDI #1; Macroeconomic effects #1; Role country-of-origin principle #1; The way ahead

Declaration Of Peter Cramton On The Aws Auction, Peter Cramton

Peter Cramton

Declaration on various auction rules for the AWS auction. On behalf of T-Mobile US.

Reply Declaration Of Peter Cramton On The Aws Auction, Peter Cramton

Peter Cramton

Reply declaration on various auction rules for the AWS auction. On behalf of T-Mobile US.

Assessing The Economic Impact Of The 6th Annual Bikes, Blues, And Bbq Festival On The City Of Fayetteville, Jeffery T. Collins

Publications and Presentations

This report presents the results of the surveys used to develop estimates of the economic impact of the Bikes, Blues and BBQ (BBBBQ) festival on the city of Fayetteville in 2005. In order to fully estimate the economic impact of the festival, its influence was assessed on three different constituent groups: Fayetteville residents, local businesses, and BBBBQ visitors.

The visitor survey was developed by the Center for Business and Economic Research and was administered September 28-October 1, 2005 by University of Arkansas students who were hired and trained by the Center for Business and Economic Research. The resident and local …

¿Es La Pobreza La Causa Del Terrorismo?, Víctor Pavón-Villamayor, Jorge Velázquez-Roa

Víctor Pavón-Villamayor

No abstract provided.

What Affects The Quality Of Economic Analysis For Life-Saving Investments?, Robert Hahn, Katrina Kosec, Peter Neumann, Scott J. Wallsten

Scott J. Wallsten

No abstract provided.

Universal Telecommunications Service In India, Roger G. Noll, Scott J. Wallsten

Scott J. Wallsten

No abstract provided.

Contratação E Investimento Em Capacidade De Geração Na Indústria De Energia Elétrica: Uma Abordagem Baseada Na Teoria De Jogos, Gladstone B. Alves

Gladstone B. Alves

No abstract provided.

Introduction To Combinatorial Auctions, Peter Cramton, Yoav Shoham, Richard Steinberg

Peter Cramton

Combinatorial auctions are those auctions in which bidders can place bids on combinations of items, called “packages,” rather than just individual items. The study of combinatorial auctions is inherently interdisciplinary. Combinatorial auctions are in the first place auctions, a topic extensively studied by economists. Package bidding brings in operations research, especially techniques from combinatorial optimization and mathematical programming. Similarly, computer science is concerned with expressiveness of various bidding languages, and algorithmic aspects of the combinatorial problem. The study of combinatorial auctions thus lies at the intersection of economics, operations research, and computer science. In this book, we look at combinatorial …

The Clock-Proxy Auction: A Practical Combinatorial Auction Design, Lawrence M. Ausubel, Peter Cramton, Paul Milgrom

Peter Cramton

We propose the clock-proxy auction as a practical means for auctioning many related items. A clock auction phase is followed by a last-and-final proxy round. The approach combines the simple and transparent price discovery of the clock auction with the efficiency of the proxy auction. Linear pricing is maintained as long as possible, but then is abandoned in the proxy round to improve efficiency and enhance seller revenues. The approach has many advantages over the simultaneous ascending auction. In particular, the clock-proxy auction has no exposure problem, eliminates incentives for demand reduction, and prevents most collusive bidding strategies.

Combinatorial Auctions, Peter Cramton, Yoav Shoham, Richard Steinberg

Peter Cramton

A comprehensive book on combinatorial auctions―auctions in which bidders can bid on packages of items. The book consists of original material intended for researchers, students, and practitioners of auction design. It includes a foreword by Vernon Smith, an introduction to combinatorial auctions, and twenty-three cross-referenced chapters in five parts. Part I covers mechanisms, such as the Vickrey auction and the ascending proxy auction. Part II is on bidding and efficiency issues. Part III examines computational issues and algorithmic considerations, especially the winner determination problem―how to identify the (tentative) winning set of bids that maximizes revenue. Part IV discusses implementation and …

Dynamic Auctions In Procurement, Peter Cramton, Lawrence M. Ausubel

Peter Cramton

We study the theory and practical implementation of dynamic procurement auctions. We consider the procurement of many related items. With many related items, price discovery is important not only to reduce the winner’s curse, but more importantly, to simplify the bidder’s decision problem and to facilitate the revelation of preferences in the bids. Three auction formats are considered: simultaneous descending auctions are preferred if the items are not divisible, simultaneous clock auctions are desirable for procuring many divisible goods, and the clock-proxy auction is best if complementarities among items are strong and varied across the suppliers. We examine the properties …

Simultaneous Ascending Auctions, Peter Cramton, Yoav Shoham, Richard Steinberg

Peter Cramton

The simultaneous ascending auction has proved to be a successful method of auctioning many related items. Simultaneous sale and ascending bids enable price discovery, which helps bidders build desirable packages of items. Although package bids are not allowed, the auction format does handle mild complementarities well. I examine the auction design and its performance in practice.

Game Theory, David A. Weiskopf, James F. Nieberding, Susan C.S. Lee

David A Weiskopf

No abstract provided.

Have Cafe Standards Reduced The Effect Of Gasoline Prices On Domestic Automobile Manufacturers’ Market Share Of The Us Market?, Abdelwahed Tazi

Gettysburg Economic Review

One of macroeconomists’ major concerns is GDP volatility, and understanding what causes this volatility is essential when attempting to reduce it. For decades, the automotive industry has been a major component of US GDP. Therefore, understanding the driving forces behind this industry indirectly contributes to the study of GDP volatility. This paper focuses on CAFE standards and how they change the effect of oil prices on US automobile sales.

What motivates this paper is the fact that during the mid-to-late 80s, fluctuations in the market share of domestic automobile manufacturers diminished substantially. Figure 1 presents the sales of domestic automakers’ …