channel coordination and profit distribution in a social responsible three layer supply chain abstract this paper analyzes coordination of a manufacturer distributer retailer supply chain where the manufacturer exhibits corporate social responsibility csr in manufacturer stackelberg game setting the paper proposes a contract bargaining process to resolve channel conflict and to distribute surplus profit among the channel members the contract bargaining process consists of two wholesale price discount nash bargaining one between the distributer and the retailer based on the outcome of that between the distributer and the manufacturer although the contract bargaining process cuts out channel conflict and distributes surplus profit the wholesale prices are quite different from those of a pure profit maximizing supply chain the wholesale price of the manufacturer is less than its marginal production cost above a threshold of csr even it is negative for the manufacturer s heavy csr practice so the manufacturer s profit may be negative the behavior of the wholesale price of the distributer is same as that of the manufacturer but for higher threshold of csr

exchange traded funds a new investment option for taxable investors exchange traded funds etfs are a new variety of mutual fund that first became available in 1993 etfs have grown rapidly and now hold nearly 80 billion in assets etfs are sometimes described as more tax efficient than traditional equity mutual funds since in recent years some large etfs have made smaller distributions of realized and taxable capital gains than most mutual funds this paper provides an introduction to the operation of exchange traded funds it also compares the pre tax and post tax returns on the largest etf the spdr trust that invests in the s p500 with the returns on the largest equity index fund the vanguard index 500 the results suggest that between 1994 and 2000 the before and after tax returns on the spdr trust and this mutual fund were very similar both the after tax and the pre tax returns on the fund were slightly greater than those on the etf these findings suggest that etfs offer taxable investors a method of holding broad baskets of stocks that deliver returns comparable to those of low cost index funds this abstract was borrowed from another version of this item

transmission congestion relief using privately owned large scale energy storage systems in a competitive electricity market the trend of integrating more nondispatchable renewable sources into the electric grid and phasing out dispatchable fossil fueled power plants in the near future reduces the operational flexibility increases the chance of transmission congestion and endangers the stability of electric system utilities are investigating the application of large scale energy storage systems esss to address some of these imminent challenges to their power systems in this paper the application of privately owned large scale esss for the purpose of congestion relief in transmission systems as an ancillary service is investigated it is demonstrated that in conventional optimal dispatch algorithms for an ess the storage system cannot effectively contribute to congestion relief since the dispatch algorithm has not prepared the ess in advance hence a new real time optimal dispatch rtod algorithm is proposed that aims to generate revenue primarily by exploiting electricity price arbitrage opportunities in the day ahead electricity market while optimally preparing the ess to maximize its contribution to congestion relief as an ancillary service a compressed air ess is sized and employed for evaluations of the proposed rtod algorithm the efficacy and feasibility of the proposed algorithm are validated using real world price data from ontario s wholesale electricity market an analysis is presented regarding the appropriate amount of financial compensation for the ess owner due to this contribution to congestion relief in the studied electricity market

supply chain coordination for the joint determination of order quantity and reorder point using credit option abstract decisions regarding order quantity and reorder point are two major challenges in supply chain inventory management in this paper a coordination model of the joint determination of these two decision variables is proposed a decentralized supply chain consisting of one buyer and one supplier in a multi period setting is investigated demand and lead times are uncertain in our model an incentive scheme based on credit option has been developed to encourage the buyer to participate in the coordination model in this model the downstream member has the option of using credit to purchase goods during the credit time subject to its commitment to a jointly agreed order quantity and reorder point the credit time is determined in such a way that the two parties have incentives to participate the proposed incentive scheme can share the benefits of coordination between the two members based on their bargaining power the proposed model shows that the coordination of the reorder point together with order quantity can increase the overall chain profitability as well as each member s profitability

optimal tax timing with asymmetric long term short term capital gains tax we develop an optimal tax timing model that takes into account asymmetric long term and short term tax rates for positive capital gains and limited tax deductibility of capital losses in contrast to the existing literature this model can help explain why many investors not only defer short term capital losses to long term but also defer large long term capital gains and losses because the benefit of tax deductibility of capital losses increases with the short term tax rates effective tax rates can decrease as short term capital gains tax rates increase

do after tax returns affect mutual fund inflows abstract this paper explores the relationship between the after tax returns that taxable investors earn on equity mutual funds and the subsequent cash inflows to these funds previous studies have documented that funds with high pretax returns attract greater inflows this paper presents evidence based on a large sample of retail equity mutual funds over the period 1993 1999 that after tax returns have more explanatory power than pretax returns in explaining inflows in addition funds with large overhangs of unrealized capital gains experience smaller inflows all else equal than funds without such unrealized gains a large capital gain overhang discourages both gross fund inflows and gross outflows but the inflow effect dominates the outflow effect

a probabilistic approach for determining the optimal amount of transmission system usage over the past decade electric power systems have been restructured based on different models to introduce competition among market participants transmission open access for suppliers and customers is one of the most prevailing unbundling services usually a connection tariff is established based on different market factors including the actual usage of the transmission network in brazil most vertically integrated companies owned by the federal and state governments were unbundled and new transmission companies are being created these companies make their assets available to the independent system operator designated as operador nacional do sistema eleacutetrico ons one of the main objectives of ons is to manage transmission services over a certain voltage level to ensure nondiscriminatory access to the grid all transmission users including regional distribution companies pay wheeling transmission charges at each delivery or connection point with the major brazilian network administrated by ons this paper presents a methodology for determining the optimal amount of transmission system usage atsu that must be contracted by a regional distribution company at each connection point in the proposed approach the maximum flow at each connection is represented as a random variable in order to obtain the distribution probability of the transmission charges as a function of the atsu parameter besides providing the optimal amounts to be contracted the proposed probabilistic methodology allows quantifying the risks of violation of each contract and estimating possible penalties all methodology development steps are described and illustrated through numerical examples an application to a typical brazilian regional distribution company is also discussed

transmission congestion management in an electricity market managing transmission congestion in an unbundled electric power system poses a challenge to an independent system operator iso this paper considers an open transmission dispatch environment in which pool and bilateral multilateral dispatches coexist and proceeds to develop a congestion management strategy for this scenario prioritization of electricity transactions and related curtailment strategies are explored and a mechanism for coordination between market participants to achieve additional economic advantages is described

a zonal congestion management approach using real and reactive power rescheduling in a deregulated electricity market it may always not be possible to dispatch all of the contracted power transactions due to congestion of the transmission corridors system operators try to manage congestion which otherwise increases the cost of the electricity and also threatens the system security and stability in this paper a new zonal cluster based congestion management approach has been proposed the zones have been determined based on lines real and reactive power flow sensitivity indexes also called as real and reactive transmission congestion distribution factors the generators in the most sensitive zones with strongest and nonuniform distribution of sensitivity indexes are identified for rescheduling their real power output for congestion management in addition the impact of optimal rescheduling of reactive power output by generators and capacitors in the most sensitive zones has also been studied the proposed new zonal concept has been tested on 39 bus new england system and a 75 bus indian system

combined pool bilateral dispatch i performance of trading strategies this three paper series deals with the dispatch of power networks under mixed pool bilateral trading the major questions examined are i to what degree does the relative level of pool versus bilateral trading influence performance in terms of individual power levels costs prices revenues and expenditures ii what is the comparative performance of mixed trading with firm and nonfirm bilateral contracts under various curtailment strategies and iii is the revenue derived from the pool and bilateral trading consistent with the corresponding unbundled costs the above issues are sequentially addressed in each of the three parts the eventual goal of these results is to help generator and load serving entities choose appropriate relative levels of pool versus bilateral trades while considering risk economic performance as well as physical constraints this paper proposes a one step optimal power flow model that dispatches the pool in combination with the privately negotiated bilateral contracts while minimizing cost and accounting for both losses and congestion in part i notions of pool bilateral demand and generation as well as a number of technical and economic performance measures for each competing entity are defined this dissection of total and individual financial measures according to pool or bilateral trading allows the market participant to evaluate the profitability of each component of its chosen pool bilateral mix a number of simulation results illustrate the effect of varying the relative levels of pool bilateral trading on the values of individual performance measures

priority service pricing investment and market organization tingent forward delivery contracts offered by a seller each customer s selection of one contract from the menu determines the customer s service order or priority in each contingency the seller rations supplies by serving customers in order of their selected priorities until the supply is exhausted or all customers are served various forms of priority service are widely

coordination of social responsibility and order quantity in a two echelon supply chain a collaborative decision making perspective abstract regarding globalization growing trend and sustainability concerns the need for paying attention to the issues of corporate social responsibility csr not only applies to individual firms but also extends to the whole supply chain sc networks assisting csr issues in one individual firm will thoroughly influence other supply chain members in this paper a supplier retailer sc is considered in a newsvendor setting it is possible for the supplier to invest in csr activities which could improve the popularity of products and subsequently market demand firstly both members decisions under decentralized and centralized decision making models are investigated afterwards a novel collaborative model is proposed to determine optimal order quantity and csr investment thus maximizing the whole sc profits and also motivating members to participate finally the results of decentralized centralized and collaborative models are compared and some managerial insights are provided numerical experiments indicate that under some circumstances alongside the increment of sc profits more csr investment and better csr performance level will be achieved through the collaborative model than other decision making structures

volatility spillovers for spot futures and etf prices in agriculture and energy abstract the agricultural and energy industries are closely related both biologically and financially the paper discusses the relationship and the interactions on price and volatility and on the covolatility spillover effects for these two industries the interaction and covolatility spillovers or the delayed effect of a returns shock in one asset on the subsequent volatility or covolatility in another asset between the energy and agricultural industries is the primary emphasis of the paper although there has already been significant research on biofuel and biofuel related crops only a few published papers have been concerned with volatility spillovers it must be emphasized that there have been numerous technical errors in the theoretical and empirical research which need to be addressed the paper considers futures prices as a widely used hedging instrument and also considers an interesting new hedging instrument etf which is regarded as index futures when investors manage their portfolios in the empirical analysis multivariate conditional volatility diagonal bekk models are estimated for comparing patterns of covolatility spillovers the paper provides a new way of analyzing and describing the patterns of covolatility spillovers which should be useful for the future empirical analysis of estimating and testing covolatility spillover effects

wheeling of power under deregulated environment of power system a bibilographical survey the power industry is moving rapidly from regulated conventional setup to a deregulated environment there is an urgent need to keep a track of international experiences and activities taking place in this emerging field this paper gives a bibliographical survey and general backgrounds of research and development in the field of power system wheeling under deregulated environment based on over 170 published articles wheeling in general and the establishment of wheeling rate in particular are subjects of extensive debate today this will be very much useful for all countries especially those developing countries which are moving toward the unbundling of electricity supply industry esi the collected literature have been divided into many section so that new researchers do not face any difficulty for obtaining literature particularly in the area of wheeling of power under deregulated environment

supply chain coordination with green technology under cap and trade regulation abstract cap and trade regulation is generally accepted as one of the most effective market based mechanisms to curb carbon emissions in this paper we study the production and emission abatement decisions of a make to order supply chain consisting of a manufacturer and a retailer under cap and trade regulation specifically the manufacturer can reduce unit product carbon emission by using green technology with the cooperation of a retailer by certain contracts who sell the products to environment concerned consumers wholesale price and cost sharing contracts are considered in the supply chain we list some main conclusions here first as carbon trading price increases the optimal production quantities the optimal abatement levels firstly decrease increase and then remain constant second both wholesale price and cost sharing contracts can coordinate the supply chain last combining the optimal operational decisions under the two contracts with two part tariff agreement we design a contract in which the retailer pays a lump fee to the manufacturer and find that there is an interval of the lump fee to achieve pareto improvement for the two firms

transition to an electricity market a model for developing countries market oriented restructuring of the electricity supply industry esi in the west has led to a realization of the need for reform and competition in developing countries as well however there are fundamental differences between the two cases regarding the maturity of the esi structure economic priorities and the role of the state in development this paper therefore synthesizes a model of reform which is sensitive to these realities consequently the outlook is different from the prevailing tendency to simply transpose experience from elsewhere the core issue that we identify is the approach to the transmission system thailand since it is of medium size and reform oriented is used as the main reference point but short sections on sri lanka and china are included to widen the relevance of the discussion

buyback contracts with price dependent demands effects of demand uncertainty chapter 2 examines buyback contracts in a supplier retailer supply chain where the retailer faces a price dependent downward sloping demand curve subject to uncertainty compared with classical research a fundamental difference of this research lies in its analytical examination of the effects of demand uncertainty on the applicability of buyback contracts to this end the research seeks to characterize the buyback contract model in terms of only demand uncertainty level with such a new research perspective some new and interesting findings are obtained for such issues as how demand uncertainty level affects the applicability of buyback practice and how to apply this practice to improve supply chain members own interests or the supply chain system s efficiency the research in this chapter demonstrates that the uncertainty level inherent in market demand can be a critical factor influencing the applicability of supply chain contracts as well as the contract s administrative cost cachon 2003 and the uncertainty type marvel and peck 1995

combined pool bilateral dispatch part ii curtailment of firm and nonfirm contracts this paper deals with the dispatch of power networks under mixed pool bilateral trading the major questions that are examined are the following 1 to what degree does the relative level of pool versus bilateral trading influence performance in terms of individual power levels costs prices and revenues 2 what is the comparative performance of mixed trading with firm and nonfirm bilateral contracts under various curtailment strategies 3 is the revenue derived from the pool and bilateral trading consistent with the corresponding unbundled costs the above questions are sequentially addressed in separate parts of this three part paper the eventual goal of these results is to help generator and load serving entities choose appropriate relative levels of pool versus bilateral trades while considering risk economic performance and physical constraints in part ii two types of bilateral contracts firm and nonfirm are introduced together with their respective curtailment and noncurtailment bids the optimal power flow problem from part i is now modified to accommodate this new type of operation technical and economical performance measures defined in part i namely generation revenues from bilateral and pool sales pool demand payments plus generation and load expenditures to cover transmission loss and congestion management attributed to bilateral exchanges are also used here together with revenues from contract curtailment and expenditures due to noncurtailment bidding simulation results illustrate the effects of firm and nonfirm contracts and their bidding strategies on the relative levels of pool bilateral trading as well as on economic performance of market participants

market plurality and manipulation performance comparison of independent system operators in this paper the authors present three different models that represent the coordinating functions of existing independent system operators isos and discuss their advantages and disadvantages max iso is a centralized operator based on the pool model and min iso is a decentralized operator based on the bilateral model mix iso is positioned in between having multiple power exchanges or bilateral contracts the performance of the different isos is compared by the total social welfare and the vulnerability to market manipulation a numerical example is presented to compare the performance of different isos the max iso is considered to be the most efficient model theoretically but it does not necessarily provide the best market in terms of vulnerability to market manipulation

the quantity flexibility contract and supplier customer incentives consider a supply chain consisting of two independent agents a supplier e g a manufacturer and its customer e g a retailer the latter in turn serving an uncertain market demand to reconcile manufacturing procurement time lags with a need for timely response to the market such supply chains often must commit resources to production quantities based on forecasted rather than realized demand the customer typically provides a planning forecast of its intended purchase which does not entail commitment benefiting from overproduction while not bearing the immediate costs the customer has incentive to initially overforecast before eventually purchasing a lesser quantity the supplier must in turn anticipate such behavior in its production quantity decision this individually rational behavior results in an inefficient supply chain this paper models the incentives of the two parties identifying causes of inefficiency and suggesting remedies particular attention is given to the quantity flexibility qf contract which couples the customer s commitment to purchase no less than a certain percentage below the forecast with the supplier s guarantee to deliver up to a certain percentage above under certain conditions this method can allocate the costs of market demand uncertainty so as to lead the individually motivated supplier and customer to the systemwide optimal outcome we characterize the implications of qf contracts for the behavior and performance of both parties and the supply chain as a whole

economic inefficiencies and cross subsidies in an auction based electricity pool this paper compares two contrasting yet often used electricity market clearing procedures i an auction based algorithm including congestion management and transmission loss cost allocation and ii an optimal power flow the auction procedure produces a single period unit commitment and hence can be compared directly to an optimal power flow solution these algorithms are compared in terms of the economic efficiency of the solution attained and in terms of cross subsidies among generators and demands the purpose of this comparison is to quantify the actual cost to market participants of using a simple seemingly transparent procedure such as an auction based algorithm versus an integrated but computationally intensive one such as an optimal power flow

multiperiod effects of corporate social responsibility on supply chain networks transaction costs emissions and risk abstract this paper develops a framework for the analysis of the optimal levels of corporate social responsibility csr activities in a multiperiod supply chain network consisting of manufacturers retailers and consumers manufacturers and retailers determine their production quantities transaction quantities and the amount of social responsibility activities they want to pursue that maximize net return minimize emission and minimize risk over the planning horizon we investigate the interplay of the heterogeneous decision makers and compute the equilibrium pattern of product outputs transactions prices and levels of social responsibility activities the paper provides insights concerning the optimal allocation of resources to csr activities when considering a multiperiod time frame

supply chain coordination contracts with inventory level and retail price dependent demand abstract in this paper three unlike coordinating contracts namely i joint rebate contract ii wholesale price discount contract and iii cost sharing contract are proposed for two echelon supply chain coordination perspective under stock and price induced demand it is found analytically that the manufacturer s and the retailer s preferences among three contractual forms are not always aligned by applying bargaining theory it is established that stock elasticity plays an important role to select coordination contract and a threshold value stock elasticity is also determined below which cost sharing contract is not feasible it is also found that the retailer with higher bargaining power always prefers wholesale price discount contract among considered three contracts results are illustrated analytically as well as numerically