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I study coordination failures in housing development markets with network effects, where the value of building depends on aggregate supply. When network effects are sufficiently strong and convex, multiple equilibria arise: a low-supply…

Theoretical Economics · Economics 2026-05-14 Vaibhav Rangan

Motivated by electricity markets, this paper studies the impact of forward contracting in situations where firms have capacity constraints and heterogeneous production lead times. We consider a model with two types of firms - leaders and…

Optimization and Control · Mathematics 2016-06-29 Desmond Cai , Anish Agarwal , Adam Wierman

"Net neutrality" often refers to the policy dictating that an Internet service provider (ISP) cannot charge content providers (CPs) for delivering their content to consumers. Many past quantitative models designed to determine whether net…

Computer Science and Game Theory · Computer Science 2016-10-18 Xiaotie Deng , Zhe Feng , Christos H. Papadimitriou

Market power exercise in the electricity markets distorts market prices and diminishes social welfare. Many markets have implemented market power mitigation processes to eliminate the impact of such behavior. The design of mitigation…

Optimization and Control · Mathematics 2022-11-08 Yiqian Wu , Jip Kim , James Anderson

A coordinated trading process is proposed as a design for an electricity market with significant uncertainty, perhaps from renewables. In this process, groups of agents propose to the system operator (SO) a contingent buy and sell trade…

Optimization and Control · Mathematics 2017-08-28 Junjie Qin , Ram Rajagopal , Pravin Varaiya

The effectiveness of utility-maximization techniques for portfolio management relies on our ability to estimate correctly the parameters of the dynamics of the underlying financial assets. In the setting of complete or incomplete financial…

Portfolio Management · Quantitative Finance 2008-12-10 Kasper Larsen , Gordan Zitkovic

Suppliers of differentiated goods make simultaneous pricing decisions, which are strategically linked. Because of market power, the equilibrium is inefficient. We study how a policymaker should target a budget-balanced tax-and-subsidy…

Theoretical Economics · Economics 2022-06-29 Andrea Galeotti , Benjamin Golub , Sanjeev Goyal , Eduard Talamàs , Omer Tamuz

Globally operating suppliers face the rising challenge of wholesale pricing under scarce data about retail demand, in contrast to better informed, locally operating retailers. At the same time, as local businesses proliferate, markets…

Computer Science and Game Theory · Computer Science 2021-07-19 Costis Melolidakis , Stefanos Leonardos , Constandina Koki

Traditional communication theory focuses on minimizing transmit power. However, communication links are increasingly operating at shorter ranges where transmit power can be significantly smaller than the power consumed in decoding. This…

Information Theory · Computer Science 2011-02-17 Pulkit Grover , Kristen Ann Woyach , Anant Sahai

This paper focuses on the operation of an electricity market that accounts for participants that bid at a sub-minute timescale. To that end, we model the market-clearing process as a dynamical system, called market dynamics, which is…

Optimization and Control · Mathematics 2021-12-14 Pengcheng You , Yan Jiang , Enoch Yeung , Dennice F. Gayme , Enrique Mallada

Decentralized electricity systems increasingly emerge where centralized grids fail to provide reliable supply. In such settings, privately operated neighborhood microgrids, often based on diesel generators, exhibit significant market power,…

Systems and Control · Electrical Eng. & Systems 2026-05-05 Elsa Bou Gebrael , Majd Olleik , Sebastian Zwickl-Bernhard

We study the role of a market maker (or market operator) in a transmission constrained electricity market. We model the market as a one-shot networked Cournot competition where generators supply quantity bids and load serving entities…

Computer Science and Game Theory · Computer Science 2014-03-31 Subhonmesh Bose , Desmond Cai , Steven Low , Adam Wierman

Electricity markets typically operate in two stages, day-ahead and real-time. Despite best efforts striving efficiency, evidence of price manipulation has called for system-level market power mitigation (MPM) initiatives that substitute…

Optimization and Control · Mathematics 2023-08-11 Rajni Kant Bansal , Yue Chen , Pengcheng You , Enrique Mallada

We consider unreliable multi-hop networks serving multiple flows in which packets not delivered to their destination nodes by their deadlines are dropped. We address the design of policies for routing and scheduling packets that optimize…

Networking and Internet Architecture · Computer Science 2021-04-27 Rahul Singh , P. R. Kumar

An optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with a Distribution Market Operator (DMO) is proposed in this paper. The DMO administers the established electricity market in…

Systems and Control · Computer Science 2016-11-15 Sina Parhizi , Amin Khodaei , Mohammad Shahidehpour

This paper investigates the endogenous formation of supply chains and its consequences for disruption propagation. In production networks where upstream risk is highly correlated and supplier relationships are not observable, the marginal…

Theoretical Economics · Economics 2024-05-24 Andrea Titton

As the number of prosumers with distributed energy resources (DERs) grows, the conventional centralized operation scheme may suffer from conflicting interests, privacy concerns, and incentive inadequacy. In this paper, we propose an energy…

Computer Science and Game Theory · Computer Science 2022-06-29 Yue Chen , Changhong Zhao , Steven H. Low , Adam Wierman

We study the optimal pricing strategy of a monopolist selling homogeneous goods to customers over multiple periods. The customers choose their time of purchase to maximize their payoff that depends on their valuation of the product, the…

Computer Science and Game Theory · Computer Science 2018-06-28 Ali Makhdoumi , Azarakhsh Malekian , Asuman Ozdaglar

We consider a sequential decision model over multi-tier supply chain networks and show that in particular, for series parallel networks, there is a unique equilibrium. We provide a linear time algorithm to compute the equilibrium and study…

Computer Science and Game Theory · Computer Science 2020-09-29 Tao Jiang , Young-San Lin , Thanh Nguyen

We formulate an equilibrium model of intraday trading in electricity markets. Agents face balancing constraints between their customers consumption plus intraday sales and their production plus intraday purchases. They have continuously…

Computational Finance · Quantitative Finance 2020-10-20 René Aid , Andrea Cosso , Huyên Pham
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