7,085 research outputs found
Privatization and Restructuring in Concentrated Markets
This paper examines the restructuring of state assets in markets deregulated by privatizations and investment liberalizations. We show that the government has a stronger incentive to restructure than the buyer: A firm restructuring only takes into account how much its own profit will increase. The government internalizes that restructuring increases the sales price not only from the increase in the acquirer’s profit, but also from a reduced profit for the non-acquirer, whose profits decrease due to its rival’s restructuring. We also identify situations where a slow sale can significantly reduce the sales price because of strategic investment and product market effects.Privatization, Asset ownership, Restructuring
Finite Horizon Q-learning: Stability, Convergence, Simulations and an application on Smart Grids
Q-learning is a popular reinforcement learning algorithm. This algorithm has
however been studied and analysed mainly in the infinite horizon setting. There
are several important applications which can be modeled in the framework of
finite horizon Markov decision processes. We develop a version of Q-learning
algorithm for finite horizon Markov decision processes (MDP) and provide a full
proof of its stability and convergence. Our analysis of stability and
convergence of finite horizon Q-learning is based entirely on the ordinary
differential equations (O.D.E) method. We also demonstrate the performance of
our algorithm on a setting of random MDP as well as on an application on smart
grids
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