21,942 research outputs found

    Trade disclosure and price dispersion

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    This paper determines the effects of post-trade opaqueness on market performance. We find that the degree of market transparency has important effects on market equilibria. In particular, we show that dealers operating in a transparent structure set regret-free prices at each period making zero expected profits in each of the two trading rounds, whereas in the opaque market dealers invest in acquiring information at the beginning of the trading day. Moreover, we obtain that if there is no trading activity in the first period, then market makers only change their quotes in the opaque market. Additionally, we show that trade disclosure increases the informational efficiency of transaction prices and reduces volatility. Finally, concerning welfare of market participants, we obtain ambiguous results

    Trade disclosure and price dispersion

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    This paper studies the implications of trade reporting in a two-stage trade model similar to Journal of Financial Economics 14, 71–100. We find that the degree of market transparency has important effects on market equilibria. In particular, we show that dealers operating in a transparent structure set regret-free prices at each period. In contrast, dealers in an opaque market invest in acquiring information at the beginning of the trading day. Moreover, we show that in equilibrium there is price dispersion in the opaque market, whereas this is not the case if orders are reported. Additionally, we show that trade disclosure increases the informational efficiency of transaction prices and reduces volatility. Finally, concerning the welfare of market participants, we obtain ambiguous results.Publicad

    An exact approach for single machine scheduling with quadratic earliness and tardiness penalties

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    In this paper, we consider the single machine scheduling problem with quadratic earliness and tardiness costs, and no machine idle time. We propose two different lower bounds, as well as a lower bounding procedure that combines these two bounds. Optimal branch-and-bound algorithms are then presented. These algorithms incorporate the proposed lower bound, as well as an insertion-based dominance test. The lower bounding procedure and the branch-and-bound algorithms are tested on a wide set of randomly generated problems. The computational results show that the branch-and-bound algorithms are capable of optimally solving, within reasonable computation times, instances with up to 20 jobs.scheduling, single machine, quadratic earliness and tardiness, lower bounds, branch-and-bound

    Options for International Financing of Climate Change Mitigation in Developing Countries

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    This paper provides a model-based analysis of the potential macro-economic impacts of different options for international financing of climate change mitigation in developing countries. The model used is the multi-region and multi-sector climate change version of the WorldScan model. Following the outcome of the UNFCCC conference in Copenhagen, it makes no specific assumptions about the future international climate regime. The analysis shows that the environmental prospects systematically improve in a transition from the Clean Development Mechanism projects towards a global carbon market, while the opposite is foreseen for the economic costs. The more of a carbon market we have when moving from the project-based CDM to sectoral crediting mechanisms and internationally linked cap-and-trade, the more finance the carbon market will channel to developing countries.european union eu annex I non-annex I climate conference in Copenhagen climate change mitigation clean development mechanism emission trading system the US brazil china india own participation of developing countries sectoral crediting mechanisms hayden Veenendaal Zarnic

    Mergers and Dynamic Oligopoly

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    Static oligopoly theories disagree on whether mergers are profitable. The Cournot model says that many potential mergers would be unprofitable whereas the Bertrand model says that all mergers are profitable. We show that, for economically sensible parameter values, mergers are profitable for merging firms when firms choose both price and output, using inventories to absorb differences between output and sales. Furthermore, substantial cost advantages are necessary for a merger to benefit consumers. The merger predictions of our dynamic model are most similarto predictions of static Bertrand analyses of differentiated products even though our model often behaves like the Cournot model in the long run.oligopoly, dynamic games, mergers

    Spectrum sharing models in cognitive radio networks

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    Spectrum scarcity demands thinking new ways to manage the distribution of radio frequency bands so that its use is more effective. The emerging technology that can enable this paradigm shift is the cognitive radio. Different models for organizing and managing cognitive radios have emerged, all with specific strategic purposes. In this article we review the allocation spectrum patterns of cognitive radio networks and analyse which are the common basis of each model.We expose the vulnerabilities and open challenges that still threaten the adoption and exploitation of cognitive radios for open civil networks.L'escassetat de demandes d'espectre fan pensar en noves formes de gestionar la distribuciĂł de les bandes de freqĂŒĂšncia de rĂ dio perquĂš el seu Ășs sigui mĂ©s efectiu. La tecnologia emergent que pot permetre aquest canvi de paradigma Ă©s la rĂ dio cognitiva. Han sorgit diferents models d'organitzaciĂł i gestiĂł de les rĂ dios cognitives, tots amb determinats fins estratĂšgics. En aquest article es revisen els patrons d'assignaciĂł de l'espectre de les xarxes de rĂ dio cognitiva i s'analitzen quals sĂłn la base comuna de cada model. S'exposen les vulnerabilitats i els desafiaments oberts que segueixen amenaçant l'adopciĂł i l'explotaciĂł de les rĂ dios cognitives per obrir les xarxes civils.La escasez de demandas de espectro hacen pensar en nuevas formas de gestionar la distribuciĂłn de las bandas de frecuencia de radio para que su uso sea mĂĄs efectivo. La tecnologĂ­a emergente que puede permitir este cambio de paradigma es la radio cognitiva. Han surgido diferentes modelos de organizaciĂłn y gestiĂłn de las radios cognitivas, todos con determinados fines estratĂ©gicos. En este artĂ­culo se revisan los patrones de asignaciĂłn del espectro de las redes de radio cognitiva y se analizan cuales son la base comĂșn de cada modelo. Se exponen las vulnerabilidades y los desafĂ­os abiertos que siguen amenazando la adopciĂłn y la explotaciĂłn de las radios cognitivas para abrir las redes civiles

    Transboundary Pollution, R&D Spillovers and International Trade

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    We consider a symmetric three-stage game played by a pair of regulator-firm hierarchies to capture the scale and technology effects. Each firm produces one good sold on the market. The production process generates pollution characterized by a fixed emission/output ratio, and cross-borders. Firms can invest in R&D in order to lower their emission/output ratio, and this activity is characterized by positive R&D spillovers. We show that R&D spillovers and the competition of firms on the common market help non-cooperating countries to internalize transboundary pollution more efficiently. Consequently, in most cases, when the positive externality increases, the levels of R&D and production increase while pollution decreases, implying an increase of the social welfare. However, in some other cases, pollution under common market increases with the R&D externality implying a decrease of the social welfare. Opening markets to the international trade leads to more investment in R&D and more production. In most cases, pollution under common market is lower than under autarky, implying a greater social welfare. Nevertheless, in some other cases, pollution under common market is higher than under autarky implying that opening markets deteriorates social welfare.Transboundary pollution, R&D spillovers, common market, social welfare
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