optimal investments in power generation under centralized and decentralized decision making this work presents a novel model for optimization of investments in new power generation under uncertainty the model can calculate optimal investment strategies under both centralized social welfare and decentralized profit objectives the power market is represented with linear supply and demand curves a stochastic dynamic programming algorithm is used to solve the investment problem where uncertainty in demand is represented as a discrete markov chain the stochastic dynamic model allows us to evaluate investment projects in new base and peak load power generation as real options and determine optimal timing of the investments in a case study we use the model to compare optimal investment strategies under centralized and decentralized decision making a number of interesting results follow by varying the assumptions about market structure and price response on the demand side

control and performance of international joint ventures control is a critical concept for successful management and performance of international joint ventures ijvs this paper reviews and synthesizes prior studies addressing the conceptualization and operationalization of control within ijvs as well as the ijv control performance relationship the paper also presents a new conceptualization of ijv control as well as a conceptual frame work for studying control of ijvs

distributed utility planning using probabilistic production costing and generalized benders decomposition summary form only given as follows regulatory changes and advances in distributed resources dr technology have lead utilities to consider drs as alternatives to central station generation and t d investments this paper presents a comprehensive planning and production simulation model that simultaneously evaluates central and local investments to determine the optimal mix for long term expansion the model can also be viewed as optimizing drs while simulating a perfectly competitive wholesale power market the model is a mixed integer linear stochastic program that enforces kirchhoff s current and voltage laws and is solved using generalized benders decomposition gbd the formulation includes multiarea probabilistic production costing as a subproblem drs and local distribution reinforcements are modeled as integer variables while transmission and central generation options are represented as continuous variables the model is applied to a ten year multi area example that suggests that drs are able to modify capacity additions and production costs by changing demand and power flows

a managerial decision model of international cooperative venture formation this paper develops a model of international cooperative venture formation that is centered on the decisionmaking process of mne executives central issues for managerial decisions are developed from the organizational studies literature a framework delineating the sequence and criteria used in the decision to form international cooperative ventures is developed from these defined issues and from existing models propositions pertaining to the venture formation decision process are outlined

the influence of parent control structure on parent conflict in vietnamese international joint ventures an organizational justice based contingency approach there has been significant interest in understanding how the distribution of parental control over international joint ventures ijv influences ijv outcomes e g parent conflict survival performance yet the accumulation of research on the relationship between control structure and ijv outcomes has been somewhat inconclusive and even contradictory we contribute to this research stream by developing an organizational justice based contingency model relating parental control structure to parent conflict we suggest that the level of conflict between ijv parents will depend on the consistencies between the control structure and parents contribution of proprietary resources and between control structure and the parents abilities to effectively monitor operations our analysis of vietnamese joint ventures provides some support for our model and suggests that the relationship between parent control structure and ijv outcomes is perhaps more complex than previously thought

welfare effects of expansions in equilibrium models of an electricity market with fuel network the welfare of electricity producers and consumers depends on congestion in the transmission grid generation costs that consist mainly of fuel costs and strategic behavior we formulate a game theoretic model of an oligopolistic electricity market where generation costs are derived from a fuel supply network the game consists of a fuel dispatcher that transports fuels at minimum cost to meet generator demands generators that maximize profit in cournot competition and an independent system operator iso that sets nodal prices to balance electricity supply with linear demand functions we prove the existence of an equilibrium if fuel supplies are unlimited the same equilibria hold in a simplified version of the game in which each generator optimizes its fuel acquisition from the network in some very simple examples under different assumptions about the rationality of generators with respect to iso decisions paradoxical effects on total welfare can occur from expanding either electricity transmission capacity or the transportation capacity of low cost fuel we find some instances in which the paradox occurs only under bounded rationality of the generators others where it occurs only if the generators are fully rational and still others where it occurs to different degrees under the two rationality assumptions

investment in electricity networks with transmission switching we consider the application of dantzig wolfe decomposition to stochastic integer programming problems arising in the capacity planning of electricity transmission networks that have some switchable transmission elements the decomposition enables a column generation algorithm to be applied which allows the solution of large problem instances the methodology is illustrated by its application to a problem of determining the optimal investment in switching equipment and transmission capacity for an existing network computational tests on ieee test networks with 73 nodes and 118 nodes confirm the efficiency of the approach

coalition formation in transmission expansion planning the study of a decentralized coalition formation scheme in a specific power systems transmission expansion scenario is the purpose of this paper the authors define first who are the agents in the expansion game and provide a decentralized coalition scheme based on bilateral shapley values finally they allocate the total costs of expansion amongst the agents based on the coalition history and they compare their method with a centralized scheme

marginal loss modeling in lmp calculation this paper discusses the pricing of marginal transmission network losses in the locational marginal pricing approach recently deployed in the iso new england iso ne standard market design smd project implemented by alstom s t d energy automation and information eai business the traditional loss model is studied and a new model is proposed the new model achieves more defendable and predictable market clearing results by introducing loss distribution factors to explicitly balance the consumed losses in the lossless dc power system model the distributed market slack reference is also introduced and discussed the lmp components produced by the two models are studied and compared under changes in slack reference numerical examples are presented to further compare the two models

a multiyear dynamic approach for transmission expansion planning and long term marginal costs computation this paper presents a multicriteria formulation for multiyear dynamic transmission expansion planning problems this formulation considers three criteria investment costs operation costs and the expected energy not supplied the solution algorithm adopts an interactive decision making approach that starts at a nondominated solution of the problem this solution is identified transforming two of the three criteria in constraints specifying aspiration levels and using afterwards simulated annealing to deal with the integer nature of investment decisions after obtaining this first solution the decision maker can alter the aspiration levels and run the application again to obtain a new solution once an expansion plan is accepted the algorithm computes long term marginal costs reflecting both investment and operation costs these costs are more stable than short term ones and inherently address the revenue reconciliation problem well known in short term approaches the developed algorithm is tested using a case study based on the portuguese 400 220 150 kv transmission network

differences in managerial values a study of u s hong kong and prc managers in this study of convergence divergence of managerial values four western developed measures machiavellianism locus of control intolerance of ambiguity and dogmatism and the four dimensions of the eastern developed chinese value survey confucian dynamism human heartedness integration and moral discipline were the measures used the findings indicate that often times both culture and the business environment interact to create a unique set of managerial values in a country

market based transmission expansion planning restructuring and deregulation has exposed transmission planner to new objectives and uncertainties therefore new criteria and approaches are needed for transmission planning in deregulated environments a new market based approach for transmission planning in deregulated environments is presented in this paper the main contribution of this research is i introducing a new probabilistic tool named probabilistic locational marginal prices for computing the probability density functions of nodal prices ii defining new market based criteria for transmission expansion planning in deregulated environments and iii presenting a new approach for transmission expansion planning in deregulated environments using the above tool and criteria the advantages of this approach are i it encourages and facilitates competition among all participants ii it provides nondiscriminatory access to cheap generation for all consumers iii it considers all random and nonrandom power system uncertainties and selects the final plan after risk assessment of all solutions and iv it is value based and considers investment cost operation cost congestion cost load curtailment cost and cost caused by system unreliability the presented approach is applied to ieee 30 bus test system

microgrid based co optimization of generation and transmission planning in power systems this paper presents an algorithm for the microgrid planning as an alternative to the co optimization of generation and transmission expansion planning in electric power systems the integration of microgrids in distribution systems will offer a decentralized control of local resources for satisfying the network reliability and the power quality required by local loads the objective in this paper is to minimize the total system planning cost comprising investment and operation costs of local microgrids the co optimized planning of large generating units and transmission lines and the expected cost of unserved energy the cost of unserved energy reflects the cost of load shedding which is added to the objective function for reliability considerations the microgrid based co optimization planning problem is decomposed into a planning problem and annual reliability subproblem the optimal integer planning decisions calculated in the planning problem will be examined against the system reliability limits in the subproblem and the planning decisions will be revised using proper feasibility cuts if the annual reliability limits are violated numerical simulations demonstrate the effectiveness of the proposed microgrid based co optimization planning in power systems and explore the economic and reliability merits of microgrid planning as compared to grid based generation and transmission upgrades

inflation real interest rates and the bond market a study of uk nominal and index linked government bond prices this paper estimates expected future real interest rates and inflation rates from observed prices of uk government nominal and index linked bonds the estimation method takes account of imperfections in the indexation of uk index linked bonds it assumes that expected log returns on all bonds are equal and that expected real interest rates and inflation follow simple time series processes whose parameters can be estimated from the cross section of bond prices the extracted inflation expectations forecast actual future inflation more accurately than nominal yields do the estimated real interest rate is highly variable at short horizons but comparatively stable at long horizons changes in real rates and expected inflation are strongly negatively correlated at short horizons but not at long horizons

optimal generation mix with short term demand response and wind penetration demand response defined as the ability of load to respond to short term variations in electricity prices plays an increasingly important role in balancing short term supply and demand especially during peak periods and in dealing with fluctuations in renewable energy supplies however demand response has not been included in standard models for defining the optimal generation technology mix three different methodologies are proposed to integrate short term responsiveness into a generation technology mix optimization model considering operational constraints elasticities are included to adjust the demand profile in response to price changes including cross price elasticities that account for load shifts among hours as energy efficiency programs also influence the load profile interactions of efficiency investments and demand response are also modeled comparison of model results for a single year optimization with and without demand response shows peak reduction and valley filling effects impacting the optimal amounts and mix of generation capacity increasing demand elasticity also increases the installed amount of wind capacity suggesting that demand response yields environmental benefits by facilitating integration of renewable energy

deregulation privatization and competition transmission planning under uncertainty competitive markets expose transmission planners to new uncertainties these are handled using a decision analysis approach whose key contribution is quantifying and minimizing risk the method is applied using existing and generally available software tools the result is transmission plan which is robust in the face of uncertainties a study of a major proposed central american interconnection illustrates the problem and the method

transmission expansion planning in electricity markets this paper presents a mixed integer linear programming lp formulation for the long term transmission expansion planning problem in a competitive pool based electricity market to achieve optimal expansion planning while modeling market functioning we define a number of scenarios based on the future demand in the system and we simulate the maximization of the aggregate social welfare investment and operating costs transmission losses and generator offers and demand bids are considered we propose to use a set of metrics to rate the effect of the expansion on the generators demands and the system as a whole the proposed model is applied to the garver six bus system and to the ieee 24 bus reliability test system simulation results can be interpreted in economic terms based on the values of the metrics obtained for different scenarios parameters and topologies

toward fully renewable electric energy systems renewable energy sources are here to stay for a number of important reasons including global warming and the depletion of fossil fuels we explore in this paper how a thermal dominated electric energy system can be transformed into a renewable dominated one this study relies on a stochastic programming model that allows representing the uncertain parameters plaguing such long term planning exercise being the final year of our analysis 2050 we represent the transition from today to 2050 by allowing investment in both production and transmission facilities with the target of achieving a renewable dominated minimum cost system the methodology developed is illustrated using a realistic large scale case study finally policy conclusions are drawn

congestion driven transmission expansion in competitive power markets a framework for transmission planning in a deregulated power market environment is discussed the level of congestion in the network is utilized as the driving signal for the need of network expansion a compromise between the congestion cost and the investment cost is used to determine the optimal expansion scheme the long term network expansion problem is formed as the decoupled combination of 1 the master problem minimization of investment costs subject to investment constraints and the benders cuts generated by the operational problem power pool and 2 the operational problem whose solution provides congestion details and associated multipliers a proper power pool model is developed and solved for congestion cost congestion revenue and transmission shadow prices linear programming is utilized to solve the investment subproblem while the quadratic programming technique has been used to solve the operational problem the algorithm has been developed for the complete planning process which provides the expansion schemes for the planning horizon the technique has been applied to illustrate the network planning study for a modified ieee 24 bus test system

the economics of planning electricity transmission to accommodate renewables using two stage optimisation to evaluate flexibility and the cost of disregarding uncertainty abstract aggressive development of renewable electricity sources will require significant expansions in transmission infrastructure we present a stochastic two stage optimisation model that captures the multistage nature of transmission planning under uncertainty and use it to evaluate interregional grid reinforcements in great britain gb in our model a proactive transmission planner makes investment decisions in two time periods each time followed by a market response uncertainty is represented by economic technology and regulatory scenarios and first stage investments must be made before it is known which scenario will occur the model allows us to identify expected cost minimising first stage investments as well as estimate the value of information the cost of ignoring uncertainty and the value of flexibility our results show that ignoring risk in planning transmission for renewables has quantifiable economic consequences and that considering uncertainty can yield decisions that have lower expected costs than traditional deterministic planning methods in the gb case the value of information and cost of disregarding uncertainty in transmission planning were of the same order of magnitude approximately 100 m in present worth terms further the best plan under a risk neutral decision criterion can differ from the best under risk aversion finally a traditional sensitivity analysis based robustness analysis also yields different results than the stochastic model although the former s expected cost is not much higher

border flow rights and contracts for differences of differences models for electric transmission property rights in this paper a property rights model for electric transmission is proposed and its properties analyzed the proposed rights called border flow rights support financial hedging of transmission risk and merchant transmission expansion through associated financial rights called contracts for differences of differences these financial rights allow for forward trading of both energy and transmission by a unified exchange avoiding the bifurcation in current markets between decentralized long term energy trading and centralized long term transmission trading such long term trading can help to support the financing of both generation and transmission assets we consider incentive properties of such a right in the absence of lumpiness economies of scale and market power

the eclectic paradigm of international production a restatement and some possible extensions this article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade and restates its main tenets the second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to mne activity as well

optimal transmission switching sensitivity analysis and extensions in this paper we continue to analyze optimal dispatch of generation and transmission topology to meet load as a mixed integer program mip with binary variables representing the state of the transmission element line or transformer previous research showed a 25 savings by dispatching the ieee 118 bus test case this paper is an extension of that work it presents how changing the topology affects nodal prices load payment generation revenues cost and rents congestion rents and flowgate prices results indicate that changing the topology to cut costs typically results in lower load payments and higher generation rents for this network computational issues are also discussed

a bilevel approach to transmission expansion planning within a market environment we present a bilevel model for transmission expansion planning within a market environment where producers and consumers trade freely electric energy through a pool the target of the transmission planner modeled through the upper level problem is to minimize network investment cost while facilitating energy trading this upper level problem is constrained by a collection of lower level market clearing problems representing pool trading and whose individual objective functions correspond to social welfare using the duality theory the proposed bilevel model is recast as a mixed integer linear programming problem which is solvable using branch and cut solvers detailed results from an illustrative example and a case study are presented and discussed finally some relevant conclusions are drawn

the trap of continual ownership change in international equity joint ventures this article examines how multiple ownership changes unfold in international equity joint venture iejv evolution and how such repeated changes impact short term performance and long term survival by theorizing a new concept the trap of continual change in the iejv context we challenge the adaptive viewpoint assumed in alliance dynamics research we propose that partners sometimes respond to an initial dissatisfaction with the venture result with a dysfunctional repetition of rearranging the ownership control structure this continual change locks the organization into bad choices and sends it into a downward spiral acknowledging the mixed motive nature of inter partner relationships we incorporate cooperative versus competitive dynamics manifested in shared control arrangements we propose that shared ownership control lends stability to the iejv until the initial iejv agreement is renegotiated this stability is a result of the cooperative forces of mutual interdependence and mutual forbearance between the partners however when the power balance breaks down the potential for inter partner conflict increases when the ownership control structure of the iejv is restructured especially multiple times shared control arrangements become increasingly unstable as behavioral cultural and managerial differences are amplified

host country policies and mne management control in ijvs evidence from china in international joint ventures ijvs partner firms exert three types of management control output process and social since management control critically influences ijv success it is essential to understand what factors drive the development of the control system prior studies have focused mainly on ijvs internal conditions and have largely neglected external institutional influences on ijv control in this study we explore how host country policies affect mne partners control over their ijvs using a sample of ijvs in china we find that mne partners tend to exercise less output and process control when minority equity restriction is present greater process control when they receive government incentives and less social control when they are required to partner with state owned enterprises in contrast the results of a post hoc analysis show that local partners control activities are not significantly influenced by these policies our findings provide new insights into ijv management by demonstrating the impacts of regulatory institutions on partners control activities

real interest rates expected inflation and the inflation uncertainty premium abstract two index linked bond prices can be used to measure current ex ante real interest rates and expected inflation these values can then be substituted into a nominal bond price equation to solve for the inflation uncertainty premium

pricing energy and ancillary services in integrated market systems by an optimal power flow a detailed ac opf based formulation for procuring pricing and settling energy and ancillary service in simultaneous auctions by integrated market systems is presented the paper provides clear definitions of locational marginal prices for energy and ancillary service marginal prices in terms of lagrange multipliers the characteristics of the prices are analyzed especially when economic substitution among ancillary services is required the paper also evaluates the conditions under which opportunity costs are incurred to units that provide ancillary services it is particularly shown that the intuitive belief that the provision of regulation down service does not incur opportunity cost to the provider in general is not true

control and performance in international joint ventures the authors examine the meaning of control in international joint ventures ijvs and the relationships of potential means of control in such organizations to the performance satisfaction of the foreign partner they propose a conceptual model that provides both a traditional ownership focused internalization perspective on those issues and an integrated approach combining a broader transaction cost interpretation of control with a resource input based bargaining power model a set of simultaneous structural equations with endogenous explanatory variables provides multiple possible paths from various resource and power inputs through different means of control to perceived performance satisfaction in such a model intermediate variables act both as dependent and independent variables thus the complex theoretical interactions of the variables are modeled more comprehensively and realistically than in single equation models to test the model and compare the theoretical relationships the authors used dat

transmission rights and transmission expansions in this paper we propose a new method of defining rights that may be assigned to the developer of a transmission expansion project they include a right to collect the value of the capacity provided by the expansion project as well as the value arising from the admittance of the expansion project this approach not only ties the rights allocation to actual physical characteristics of the transmission project but also allows such allocation to remain independent both of the order in which the projects are treated and of any previously allocated transmission rights

an assessment of the measurement of performance in international business research a sizeable body of international business ib research is devoted to building knowledge about the determinants of organizational performance a key precursor to accurately diagnosing why some organizations succeed in the international marketplace while others struggle is operationalizing performance appropriately yet to date no systematic investigation has considered how well ib research measures performance we examine the measurement of performance in 96 articles published in the academy of management journal administrative science quarterly journal of marketing journal of marketing research journal of international business studies management science organization science a nd thestrategic management journal between 1995 and 2005 the findings reveal that most studies do not measure performance in a manner that captures the multifaceted nature of the construct we describe the implications of these results and offer suggestions for improving future practice journal of international business studies 2008 39 1064 1080

probabilistic midterm transmission planning in a liberalized market this paper shows a midterm transmission planning methodology for liberalized electricity markets this methodology evaluates expansions and reinforcements using a transmission adequacy linear programming model this type of modeling solves efficiently taking into account power exchange deviations n 1 network preventive adequacy level and nonsupply demand statistical results are obtained sampling power exchange scenarios and computing transmission investment sensitivities after each sample of generation and consumption bidding and generator and circuit failures means ranges and confidence intervals of transmission investment sensitivities are updated these sensitivities are computed using dual variables and reduced costs of the transmission adequacy model this statistical sensitivity information and additional information are evaluated jointly using multicriteria decision theory an extended garver s six bus and the spanish system cases are analyzed

the gilts market as an on line window on expected inflation it is argued that government policy could be greatly improved by the existence of a gilts market window on expected inflation the indexed gilts method for measuring expected inflation developed by levin and copeland 1993 is described and extended this extended method is applied to the 41 market days between 20 august 1992 and 15 october 1992 in order to observe how the developing crisis associated with britain s departure from the european exchange rate mechanism affected real interest rates expected inflation and the inflation uncertainty premium the estimates for this period demonstrate that it is technically possible with the indexed gilts method to read the financial markets forecast of the future path of inflation in the uk in addition the estimates show quite clearly that the expected inflation path alters in response to external shocks and to subsequent policy reactions

market based coordination of transmission and generation capacity planning we propose an iso model for coordinating transmission expansion planning with competitive generation capacity planning in electricity markets the purpose of the model is a holistic simulation of generation and transmission capacity expansion in the market environment the solution represents an iterative process for simulating the interactions among gencos transcos and the iso which might be terminated by the iso based on a pre specified stopping criterion the proposed model adopts a joint energy and transmission auction market and a capacity mechanism the joint auction market enables competition to occur among generation and transmission resources the capacity mechanism offers incentives for market participant investments that reflect the locational values of additional capacity transmission capacity expansion decisions are made by merchant transmission lines that recover their capacity investments through transmission marginal pricing and capacity payments transmission network security is reflected in the proposed competitive resource planning model the examples illustrate a coordinated planning of generation and transmission in restructured power systems

transmission and wind power investment this paper jointly considers wind power investment and transmission reinforcement the proposed model is a mathematical program with equilibrium constraints mpec that seeks to identify the optimal wind projects to be developed and the required network reinforcements under the transmission system operator perspective this mpec seeks to minimize consumer payments and is constrained by investment conditions and the equilibria of the market under different operating conditions an array of subsidies is considered to promote independent wind power investment an example and two case studies illustrate the characteristics of the proposed model

timing of investment and international expansion performance in china this study examines the multivariate and univariate performance effects of timing of fdi in an emerging economy at the business unit level a longitudinal analysis of industry wide firm specific data on fdi timing and foreign venture performance in china reveals that timing has a significant influence on overall as well as on individual aspects of venture performance it is observed that early entrants outperform late movers in terms of local market expansion and asset turnover whereas late movers are superior to early entrants with regard to risk reduction and accounting return during the initial period of international expansion factor analysis confirms that the importance of timing in affecting fdi decisions is as significant as that of internalization ownership or location factors

transmission switching in expansion planning transmission switching ts is introduced to add flexibility to the transmission and generation capacity expansion planning problem ts could improve the performance of the capacity expansion planning model and reduce the total planning cost the capacity expansion planning problem is decomposed into a master problem and two subproblems the master problem utilizes the candidate set for additional generating unit and transmission capacity investments to find the optimal plan throughout the planning horizon the subproblems use the optimal plan apply transmission switching to relieve any transmission flow violations and calculate the optimal dispatch of generating units the transmission network contingencies are also considered in the subproblems the case studies exhibit the effectiveness of the proposed expansion planning approach

on the future of international joint venture research international joint ventures ijvs are an important type of international strategic alliance isa and have been studied by scholars for decades resulting in a plethora of empirical studies publications and reviews yet an inadequate accumulation of knowledge exists as a closer look reveals much more than providing a summary and critical assessment of past contributions this paper develops an expansive research agenda based upon a deep understanding of past research and comprehensive frameworks that distill this research we identify a number of research opportunities that would not only advance ijv research but also closely related literatures and disciplines such as isas theories of the multinational firm international business research and strategic management

tractable transmission topology control using sensitivity analysis the standard economic generation dispatch ed minimizes generation costs subject to transmission constraints where the status of each line i e open or closed is fixed recent research shows that by optimally dispatching the network topology along with generation resources significant congestion costs may be avoided optimal topology control i e appropriate changes of transmission line status for real sized power networks requires the solution of a computationally intractable mixed integer linear program however it appears that much of the cost savings may be attained by changing the status of just a few lines this paper proposes tractable transmission topology control policies which employ sensitivity information readily available from the ed to select candidate lines to change status while maintaining system connectivity implementation on the ieee 118 bus test system found that our best performing policy captured an average of 96 of the potential cost savings moreover the limited computational effort required suggests that these policies could be employed in real system operations

security constrained resource planning in electricity markets we propose a security based competitive generation resource planning model in electricity markets the objective of the model is to introduce the impact of transmission security in a multi genco generation resource planning the proposed approach is based on effective decomposition and coordination strategies lagrangian relaxation and benders decomposition are applied to decompose the original planning problem into tractable optimization subproblems locational price signal and security signal are defined for the simulation of competition among gencos and the coordination of security between gencos and the regulatory body iso the numerical examples exhibit the effectiveness of the proposed generation planning model in electricity markets

control cooperation interfaces in global strategic alliances a situational typology and strategic responses this article applies the dialectical logic of loose coupling to interpartner exchanges in order to analyze the dynamics of global strategic alliances we develop a typology of control and cooperation that defines alliance states or situations according to their level of cooperation under private and collective control in the private control cooperation interplay contending honeymoon and coopetition situations arise depending on the levels of private control and cooperation in the collective control cooperation interplay the loosely connected the equity hostage the tightly integrated and the trusting states emerge according to the levels of collective control and cooperation we illustrate how an individual partner strategically responds to the control cooperation interplay under each situation or state and develop hypotheses explicating how these strategic responses are influenced by relational characteristics such as goal congruity resource complementarity and bargaining asymmetry between foreign and local partners

equity joint ventures and the theory of the multinational enterprise this paper extends the internalization approach to the theory of the multinational enterprise mne to include an expanded role for equity joint ventures using the transaction cost paradigm of williamson this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries also presented is empirical work on joint venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment

the policy anticipation hypothesis and the expected inflation hypothesis some new evidence using index linked bonds abstract using price index linked and conventional bonds issued by the uk government estimates of expected inflation and the expected real interest rate are derived these estimates are employed to investigate the relationship between components of the nominal interest rate and surprise monetary change the empirical results support the expected inflation hypothesis rather than the policy anticipation hypothesis

an analysis of the marginal value of electricity transmission lines in the dispatch possible applications the marginal value of transmission lines in the dispatch is widely used in the literature and has relevant practical applications related to planning the expansion of the transmission grid and computing the remuneration of merchant lines this paper presents a general formulation of the marginal value of a line in the dispatch that highlights the dependence of this value on the link between line admittance and capacity we discuss the value of a line according to marginal principles following a general approach and prove that only if the admittance of a line can be expressed as a linear function of its capacity or when admittance and capacity can be deemed independent is this value equal to the product of the difference between marginal electricity prices at both ends of the line and the flow through this line afterwards we show that under a set of stylized conditions the remuneration of efficient network investments according to their marginal value in the dispatch should result in an exact recovery of their cost finally we compute the marginal value of lines in a stylized though representative system for several relationships between line capacities and admittances to illustrate the theoretical results obtained

the real thing a dynamic profile of the term structure of real interest rates and inflation expectations in the united kingdom 1982 89 this article estimates real interest rates and inflation expectations from market observable data without assuming anything about the form of agents expectation formation mechanism by examining prices of index linked and conventional gilt edged securities form the u k bond market real interest rates and inflation expectations are computed quarterly beginning 1982 2 for up to fourteen maturities ranging from 1988 to 2024 copyright 1990 by the university of chicago

transfer capability improvement through market based operation of series facts devices traditionally electric system operators have dispatched generation to minimize total production costs ignoring the flexibility of the transmission system implementation of smart grid systems could allow operators to co optimize flexible transmission alongside generation dispatch the technologies that would enable such co optimization are still regulated as part of the monopoly transmission system one particular flexible transmission asset is variable impedance flexible ac transmission system facts this paper 1 points out the positive externality problem existing in a recent market design proposal with active transmission participation and 2 proposes a sensitivity based method to estimate the marginal market value of facts adjustments to overcome this positive externality problem the marginal value would suggest efficient impedance adjustments to the operator and provide the right financial incentives for the facts owners to operate their assets in a socially optimal way revenue adequacy is demonstrated under specific conditions and more broadly investigated through simulation studies an analytical example on a two bus system as well as a numerical study on the ieee 118 bus system are presented the results suggest that inclusion of a price signal for facts devices would lead to significant social welfare improvements in competitive power markets

a game theoretic model for generation expansion planning problem formulation and numerical comparisons this paper presents an application of noncooperative game theory to generation expansion planning gep in a competitive electricity industry the authors apply the cournot model of oligopoly behavior to formulate a gep model that may characterize expansion planning in a competitive regime particularly in pool dominated generation supply industries numerical experiments are conducted on a test system to analyze generation investment and market participation decisions of candidate expansion units that vary in costs and forced outage rates the numerical results point to 1 greater industry expansion and system reliability under cournot competition than under centralized expansion planning and 2 higher probabilistic measures of reliability from multi player expansion than from expansion by a traditional monopolist with an equivalent reserve margin requirement furthermore the authors summarize analytical results involving a simplified version of the gep game

the impacts of transmission topology control on the european electricity network the european union is targeting a 20 share of energy from renewable resources by 2020 and this increase is in turn expected to lead to operational challenges that will require various congestion management actions by system operators in this paper we deal with topology control of the transmission network as a congestion management resource and evaluate the impacts of topology control on the european electricity network to do this we co optimize unit commitment and transmission switching over 24 h and we use a decomposition scheme to tackle the resulting large scale problem our analysis is conducted on different scenarios of load and renewable power generation we find that topology control results in significant cost savings within europe which tend to be inversely related to net load the robustness of our results is supported by an extensive sensitivity analysis

optimal investment plan for dynamic thermal rating using benders decomposition abstract the dynamic thermal rating is a new technology that utilizes the capacity of power transmission lines based on the ambient factors and the line condition it usually offers higher thermal capacity than the traditional static rating we propose a multi stage mixed integer programming model and find the optimal investment plan for the dynamic ratings using benders decomposition the investment plan includes when and which line should be upgraded to dynamic rating and which line should be switched out of service the problem is decomposed into a master problem and three sub problems the master problem explores the candidate lines for both the investment plan and the switching plan throughout the planning horizon the sub problems evaluate the proposed plans in terms of unmet demand and generation cost generation and transmission contingencies are also included in the model we use our model on garver s system and ieee 118 bus power systems to demonstrate our solution approach we conduct sensitivity analyses and study the uncertainty in real time thermal ratings loads and the discounting rate our studies show that the utilization of the dynamic ratings and the practice of transmission switching are complementary and can reduce the cost on the 118 bus system up to 30 percent

smart flexible just in time transmission and flowgate bidding there is currently a national push to create a smarter grid currently the full control of transmission assets is not built in network optimization models with more sophisticated modeling of transmission assets it is possible to better utilize the current infrastructure to improve the social welfare co optimizing the generation with the network topology has been shown to reduce the total dispatch cost in this paper we propose the concept of just in time transmission this concept is predicated on the fact that transmission that is a detriment to network efficiency can be kept offline when not needed and with the proper smart grid advanced technology can be switched back into service once there is a disturbance we determine which lines to have offline based on the optimal transmission switching model previously proposed a secondary topic of this paper focuses on flowgate bidding approved by the federal energy regulatory commission and implemented within the spp and nyiso networks flowgate bidding is defined as allowing a line s flow to exceed its rated capacity for a short period of time for a set penalty i e price we demonstrate the effectiveness of these models by testing them on large scale iso network models

modeling competition in transmission expansion a transmission network plays a key role in allowing access to the most efficient generators to all consumers in most cases the new transmission projects are defined by a system operator which focuses on improving the bulk system s reliability and reducing short term operating problems because electricity market participants are prevented from investing in transmission facilities that may benefit them transmission expansion may not have been sufficient to stimulate competition within the market in this paper the authors show formally through a mathematical formulation based on the lagrangian relaxation technique that the investment on transmission capacity can be a profitable activity and therefore the introduction of competition in the transmission expansion could be possible such a competitive expansion of transmission capacity would allow the participants to improve the efficiency of the electricity market

transmission expansion in an oligopoly considering generation investment equilibrium abstract transmission expansion planning tep is a sophisticated decision making problem especially in an oligopolistic electricity market in which a number of strategic price maker producers compete together a transmission system planner who is in charge of making tep decisions requires considering the future generation investment actions however in such an oligopolistic market each producer makes its own strategic generation investment decisions this motivates the transmission system planner to consider the generation investment decision making problem of all producers within its tep model the strategic generation investment problem of each producer can be represented by a complementarity bi level model the joint consideration of all bi level models one per producer characterizes the generation investment equilibrium that identifies the future evolution of generation investment in the market this paper proposes a tri level tep decision making model to be solved by the transmission system planner whose objective is to maximize the social welfare of the market minus the expansion costs and whose constraints are the transmission expansion limits as well as the generation investment equilibrium problem this model is then recast as a mixed integer linear programming problem and solved numerical results from an illustrative example and a case study based on the ieee 14 bus test system demonstrate the usefulness of the proposed approach

developed country mnes investing in developing economies progress and prospect this study reviews research from 1970 through 2016 on developed country multinational enterprises dmnes entering and competing in developing economies to identify the current state of knowledge of this research and push it further we review the literature using bibliometric and qualitative content analyses covering leading journals and books we articulate frontier issues that are understudied yet critical to both theorization and practice of dmnes in developing economies we discuss the findings and conclusions from prior research along five key areas 1 entering developing economies 2 organizing local activities 3 managing alliances and joint ventures 4 competing in dynamic environments and 5 dealing with institutions governments and society we offer prospective insights into future agenda that have important implications for mne strategies and decisions and propose frontier directions that encompass strategic localization reverse transfer and adaptation co evolution with local business ecosystems reorganizing and restructuring and strategic responses to institutional and market complexity

a new strategy for transmission expansion in competitive electricity markets it will be important to develop a transmission network capable of handling future generation and load patterns in a deregulated unbundled and competitive electricity market a new strategy for transmission expansion under a competitive market environment is therefore presented in this paper in the proposed strategy a new transmission planning model is developed to consider a variety of market driven power flow patterns while a decision analysis scheme is incorporated to minimize the risk of the selected plan numerical examples are given to illustrate the potential of the proposed strategy to make a significant contribution to transmission planning in competitive markets

transmission and generation investment in electricity markets the effects of market splitting and network fee regimes abstract we propose an equilibrium model that allows to analyze the long run impact of the electricity market design on transmission line expansion by the regulator and investment in generation capacity by private firms in liberalized electricity markets the model incorporates investment decisions of the transmission system operator and private firms in expectation of an energy only market and cost based redispatch in different specifications we consider the cases of one vs multiple price zones market splitting and analyze different approaches to recover network cost in particular lump sum generation capacity based and energy based fees in order to compare the outcomes of our multilevel market model with a first best benchmark we also solve the corresponding integrated planner problem using two test networks we illustrate that energy only markets can lead to suboptimal locational decisions for generation capacity and thus imply excessive network expansion market splitting heals these problems only partially these results are valid for all considered types of network tariffs although investment slightly differs across those regimes

split management control and international joint venture performance a framework is presented to characterize four different ways in which management control is partitioned between a multinational enterprise mne and local partners within international joint ventures jvs split control management shared management mne partner dominant management and local partner dominant management the framework was tested using a sample of international jvs in korea we found that jvs following the split control management performed better than any other approach no performance differences were found among the remaining three types of management control this suggests that mnes and local partners should split control that is choose the activities to control so that those chosen activities can be matched with their respective firm specific advantages

ceo hubris and firm risk taking in china the moderating role of managerial discretion this study linked ceo hubris to firm risk taking and examined the moderating role of managerial discretion in this relationship drawing on upper echelons theory and behavioral decision theory we

the interdependence between transmission switching and variable impedance series facts devices high congestion costs and new congestion patterns formed by intermittent renewable generation demand for more efficient utilization of the transmission system transmission switching ts and variable impedance series facts devices are two technologies that provide such efficiency gains through controlling the power flows as the system operators begin to utilize these tools it is essential to understand the interdependence between them at various stages such as planning and operation this paper develops an optimal power flow framework that incorporates both facts and ts to study the link between the two power flow control technologies the simulation results on an rts 96 bus system suggest that 1 substantial economic savings can be achieved through utilization of both ts and facts beyond the independent capabilities of each technology 2 performing ts actions affect the optimal location and set point of facts devices and 3 operation of facts devices affect the location and frequency of ts actions it is thus essential to acknowledge the interdependence between the two technologies both at the planning and operation stage failure to do so will lead to economic inefficiencies that can be avoided through co optimization of generation dispatch ts and facts

economic criteria for planning transmission investment in restructured electricity markets from an economic perspective a common criterion for assessing the merits of a transmission investment is its impacts on social welfare the underlying assumption in using this criterion is that side payments may be used to distribute the social gains among all market players in reality however since the impacts of an electricity transmission project on different players may vary such side payments are rather difficult to implement this paper focuses on different economic criteria that should be considered when planning electricity transmission investments we propose an electricity transmission investment assessment methodology that is capable of evaluating the economic impacts on the various effected stakeholders and account for strategic responses that could enhance or impede the investment s objectives we formulate transmission planning as an optimization problem under alternative conflicting objectives and investigate the policy implications of divergent expansion plans resulting from the planner s level of anticipation of strategic responses we find that optimal transmission expansion plans may be very sensitive to supply and demand parameters we also show that the transmission investments have significant distributional impact creating acute conflicts of interests among market participants we use a 32 bus representation of the main chilean grid to illustrate our results

stochastic unit commitment with topology control recourse for power systems with large scale renewable integration in this paper we model topology control through transmission switching as a recourse action in the day ahead operation of power systems with large scale renewable generation resources we prove that transmission switching could only reduce the linear objective value of direct current optimal power flow when congestion exists however we also show through a simple example that unit commitment cost could be reduced by transmission switching even in the absence of congestion to solve the stochastic unit commitment with topology control within reasonable computational time we proposed a heuristic that first decomposes a practical system into zones and then solves the problem for each zone in parallel the benefit of topology control recourse is demonstrated on a network representing the central european system we compare the costs of the network with different loading and renewable generation conditions the cost reduction of the test system can reach 3 34 with heavy load and large scale renewable generation while in a single zone the cost reduction can be above 7

economic consequences of alternative solution methods for centralized unit commitment in day ahead electricity markets many wholesale electricity markets call on the independent system operator iso to determine day ahead schedules for generators based on a centralized unit commitment up until recently the lagrangian relaxation lr algorithm was the only practical means of solving an iso scale unit commitment problem and it was the solution technique used by most isos johnson et al 1 demonstrate however that equity incentive and efficiency issues will arise from use of lr solutions because different commitments that are similar in terms of total system costs can result in different surpluses to individual units recent advances in computing capabilities and optimization algorithms now make solution of the mixed integer programming mip formulation by means of branch and bound b b tractable often with optimality gaps smaller than those of lr algorithms which has led some isos to adopt b b algorithms and others proposing to do so with the move towards b b one obvious question is whether the use of mip will eliminate or reduce the issues with lr raised by johnson et al using actual market data from an iso we demonstrate that both lr and mip solutions will suffer the same equity issues unless the iso unit commitment problems can be solved to complete optimality within the allotted timeframe which is beyond current computational capabilities our results further demonstrate that the size of the payoff deviations are not monotone in the size of the optimality gap meaning smaller optimality gaps from b b will not necessarily mitigate the issues johnson et al raise we show that the use of make whole payments which ensure units recover any startup and no load costs not recovered by inframarginal energy rents can help to reduce surplus volatility and differences to some extent

a transmission planning framework considering future generation expansions in electricity markets this paper proposes a transmission planning framework in a market environment in which only the generation sector is deregulated the proposed framework is based on modeling generation companies gencos strategic behavior and anticipating their expansion patterns from the viewpoint of a transmission system planner the transmission expansion planning problem in this paper is modeled as a four level optimization problem a solution method based on agent based systems and search based optimization techniques is proposed to determine the optimal transmission expansion plan

public and private information about short and long lived assets using an overlapping generations model this paper considers the impact of an improvement in the technology that investors use to obtain signals about future payouts of a risk asset it is shown that the effects of such a change on the predictability of the gross return on the asset and on the welfare of the agents depend on whether the asset will make multiple future payouts is long lived or a single future payout is short lived and whether the signals about the payoffs are public or private copyright 1990 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

congestion driven transmission planning considering the impact of generator expansion this paper presents a multi year transmission expansion planning tep model which considers the transmission congestion and the impact of generation investment cost in the planning horizon the benders decomposition approach is utilized which decomposes tep into a master problem and two subproblems representing security and optimal operation the operation cost due to congestion occ is considered in the proposed model given that the congestion level is a proper criterion for measuring the degree of competitiveness in an electricity market the model evaluates sensitivity of the optimal tep to congestion level planning horizon and financial constraints regulators can utilize the proposed results to provide long term tep to market players and to develop incentive mechanisms to trigger generation investments the proposed approach is applied to a hypothetical system and turkish power system

a dual parent perspective on control and performance in international joint ventures lessons from a developing economy this study compares the control performance relationship for foreign versus local parents in international joint ventures in china transaction cost analysis is found more applicable to foreign than to chinese parents both overall and specific controls are associated with performance for foreign parents while only specific control is for chinese parents under goal incongruity chinese parent control is associated with foreign parent dissatisfaction with venture performance but not vice versa having a majority stake improves performance from a foreign parent perspective but not from that of the chinese parent

transmission network planning under security and environmental constraints this paper explores the impact of co2 emission trading on capacity planning of electric power transmission systems two different models for annual emission costs are assumed the co2 emission price is modeled as a probability density function in the transmission network planning problem the monte carlo technique is deployed to simulate the co2 emission price volatility the transmission network planning problem is formulated as a mixed integer optimization whose objective is to minimize the sum of annual generator operating costs and annuitized transmission investment costs over different demand levels subject to n 1 network security constraints as well as operating limits on system components the overall problem is formulated within the framework of a linear dc optimal power flow incorporating binary decision variables to model the lumpy nature of transmission investment a linear model of losses is also proposed and included in the dc power flow model the proposed approach can be used to determine the most probable optimal transmission capacity the methodology is demonstrated through case studies simulated on the ieee 24 bus network