Search

Financial Transmission Rights (FTRs) are financial derivatives in wholesale electricity markets that are sold in auctions. The revenue collected from FTR auctions is passed through to electricity customers to reimburse them for transmission congestion payments they make in the spot energy market. On average, electricity customers' congestion payments greatly exceed auction reimbursements in electricity markets across the United States. We study the issue of auction revenue deficiency through the lens of Auction Revenue Rights (ARRs), which is the predominant mechanism used in U.S. electricity markets to distribute auction revenue to electricity customers. We demonstrate how the ARR process influences fundamental supply conditions in the FTR auction market and show how divergent auction equilibria emerge under different ARR decision-making regimes. Using market data from PJM, we find empirical evidence that variation in ARR management strategies helps explain differences between an FTR's auction price and its realized ex post value. Keywords: Financial transmission rights, Electricity markets, PJM, Congestion, Price discovery, 1. INTRODUCTION Since the passage of FERC Order 888 in 1996, competitive electricity markets have expanded in the United States to serve roughly two-thirds of electricity consumers in the country. [...]

This study examines firms' strategic decisions in the competitive market regarding whether to engage in marketing activities to assist consumers in finding the fit between their personal tastes and products' horizontal attributes. We find that competitive firms' strategies to facilitate fit revelation critically depend on the product qualities they offer. In particular, a firm offering a high-quality product is more likely to facilitate fit revelation in the competitive market than it would as a market monopolist, whereas a firm offering a low-quality product is less likely to do so. In addition, the firm offering the high-quality product implements fit-revealing activities in a greater intensity than its rival that offers the low-quality product, if the quality difference between the two products is small and both products' qualities are sufficiently high. Key words: consumer fit uncertainty; fit revelation; competitive strategies; game theory History: Received May 13, 2011; accepted May 11, 2012, by J. Miguel Villas-Boas, marketing. Published online in Articles in Advance November 5, 2012., 1. Introduction In many product categories, such as food, drugs, cosmetics, books, and magazines, a consumer's purchase decision largely depends on how well a product's horizontal attributes fit her personal [...]

Abstract Purpose--This paper is a case study of a cooperative whose involvement in the retail business was exemplary of a successful cooperative, bold enough to venture into the retail business. [...]

We thank Dominique Hanssens, Devavrat Purohit, and Richard Staelin for their insightful commentaries on our paper on dealer networks and demand shocks in the car industry. Jointly, the commentaries raise [...]

In their 2012 article, Albuquerque and Bronnenberg (hereafter, AB) develop an empirical model of the automobile market by specifically accounting for consumer, dealer, and manufacturer behavior. This is a provocative [...]

The purpose of this paper is to integrate the literature on deception, highlight the key variables, and provide a decision-making framework that leads to deception. The rationale and context for strategic deception are examined. Uncertainty provides the context for deception. Bounded rationality and opportunity exploitation by corporate executives facilitate deception. Enactment of strategic deception is moderated by the firm's ethical orientation. Relative stakes may create ethical dilemmas and weaken the effectiveness of ethical orientation. While deception has short-term strategic advantage, there are deleterious unintended consequences in the long-term., '... All warfare is the way (Tao) of deception. Therefore, when capable, feign incapacity; when active, inactivity. When near, make it appear that you are far away; when far away, [...]

Abstract Purpose--This is a theoretical paper, which aims to consider the role of strategic human resource management (SHRM) in the development of 'gross national happiness' (GNH) in Bhutan. Design/methodology/approach--The paper [...]

IMAGINE THE PULSATING ENERGY AND collaborative creativity at some of world's most renowned design studios: for example, the iPhone studio at Apple; or the design studio of an inspired architect [...]

The article discusses the entrepreneurial studies that have been done by Ludwig Lachmann for explaining the different activities and routines that should be undertaken in a disequilibrium world. The various strategic goals that should be focused on by an entrepreneur are also explained.

Family firms are embedded in social structures that differ substantially from those of nonfamily firms. While these social structures can be sources of strength, they can also lead to dysfunctional [...]

Le Breton-Miller and Miller argue that as the family becomes more embedded in the firm, the firm's decision makers become more susceptible to influence by the family, and agency problems [...]

Abstract This article summarizes the literature on inventory management flexibility from a competence perspective, and it classifies the work according to inter-firm and intra-firm flexibilities. It also explores the relationships [...]

Within the entrepreneurship and strategic management domains there has been a movement by scholars to combine certain aspects of both areas to create a new concept of strategic entrepreneurship. To [...]

The author investigates real options reasoning from an attention-based view, using several propositions on the effects of a firm's specific concrete and contextual attention structures on managerial decisions.

In an electricity market cleared by a merit-order economic dispatch we make use of the mixed-integer linear programming (MILP) scheme derived in Part I to find the market outcomes supported by a pure strategy Nash equilibria (NE). From these NE, we identify offer strategies in terms of gaming or not gaming that best meet the risk/benefit expectations of the participating Gencos. To do this, a number of measures of potential profit gain and loss are developed that quantify the notion of risk/benefit under the possible multiple NE. The NE identification scheme is tested on several systems of up to 30 generating units, each with four incremental cost blocks, also showing how market power is influenced by the number and size of the competing Gencos as well as by the imposed price cap. Index Terms--Dominant strategy, electricity market, gaming, market power, merit order, mixed-integer linear programming, multiple pure strategy Nash equilibra, strategic offers, supply function equilibrium.

The ascendance of a novel academic field as an admittance-seeking social movement is described by a generalized sociological model. The dramatic rise of the field of strategic management and its success in the administrative sciences is also discussed.

Managers have long been challenged by an abundance of internal and external demands and uncertainties in their operating environments. Anecdotal evidence and a growing number of research studies have advocated [...]

This research examines the strategic performance of sixty-one large international engineering and construction (E&C) firms from the regions of North America, Europe, and East Asia. The primary objective is to identify critical factors of corporate strategy that potentially affect the prospects of a large E&C firm. The research methodology relies on financial analysis and strategic management theories to draw meaningful conclusions. Statistical tests are selectively conducted to assess various aspects, including profitability, capital structure and asset liquidity. This paper documents the research findings for the first aspect--profitability. The first part of the findings suggests that there is no significant correlation between firm size and profitability. Large firms, which are endowed with greater resources and prowess, are not guaranteed to be more profitable. However, firm size has some influence on generic strategies, as large firms tend to adopt either a broadly targeted or a nonrelated diversification strategy. Regional trends of revenue growth of firms are subsequently presented. Despite strong forces of globalization experienced in many other industries, the growth trends suggest that the construction business remains largely localized in nature. Consequently, domestic and regional economic outlook, rather than global trends, should be given more weights in strategic planning. DOI: 10.1061/(ASCE)0742-597X(2006)22:4(203) CE Database subject headings: Engineering firms; Financial management; Construction management.

1. Introduction Standard information-sharing models contain no capacity restrictions; in essence, capacity and output choices are made simultaneously. This article studies the role of capacity and capacity choice in the [...]

Agency, strategic choice, and cognitive perspectives are used to examine the conditions under which chief executive officers (CEOs) of small private corporations involve the board of directors in strategic decisions. [...]

Strategic management has been the subject of a substantial literature since the 1950s but has principally focused on the large corporation. By contrast the literature relating to strategic management within the small firms sector has remained limited. Much of the existing literature has dealt with business planning rather than strategic management, or the process of strategy within the smaller firm. This paper outlines a proposed framework for understanding the strategic management of small entrepreneurial firms and draws upon the literature to illustrate aspects of the proposed model. Future directions for research using the framework are discussed., The Importance of Strategic Thinking Strategic management is largely associated with the large corporation and most of the theories associated with the subject have been developed for large firms. Small [...]

The Miles and Snow strategic type framework is re-examined with respect to interrelationships with several theoretically relevant batteries of variables, including SBU strategic capabilities, environmental uncertainty, and performance. With respect to both variable battery associations and objective statistical criteria, it is shown that the empirically derived solution dominates the traditional P-A-D-R typology of Miles and Snow.

In today's contemporary business environment, gaining competitive advantage continues to be the focus of most firms. Strategy alternatives that can provide new ways of achieving strategic advantage are gaining increased attention. Cooperation is an example of such a strategy. Specifically, cooperative marketing (co-marketing) is one of many cooperative strategies alternatives that is gaining increased consideration as a strategy alternative that has the potential to make an enduring and practical contribution to organisational performance Despite increased interest in cooperative marketing, there is little research relating to classificatory frameworks, patterns of cooperative marketing strategy use and the basic performance outcomes that result from its implementation. By building on literature in the field or study, a classificatory discussion provides clarity regarding cooperative marketing, while empirical findings allow conclusions to be drawn and future research directions to be outlined., Introduction In mastering environmental challenges, there are two strategies open to firms. Firstly, competition, where firms act independently of each other and secondly, cooperation, where firms believe that their goals [...]

The strategic management process is examined by placing the interaction between management power and action at the heart of the empirical and theoretical enterprise. Case studies on the restructuring process and outcome in four large Czech enterprises are presented.

A social theory framework is developed to explain the common themes of recursive and adaptive practice underpinning the existing strategic management literature. The concept of management practices-in-use into a research agenda is developed along with nine broad research questions that may be used to investigate empirically strategy as practice.

Operating exposure is identified as the most crucial and difficult component to manage in foreign exchange (FX) risk. The other components of FX, their dependence on the international market structure and firm strategies for their size and relative importance and the implications for managing FX exposure is discussed.

Informal Internet networks, known as elusive ensembles, are valuable due to the strategic social capital embedded in them. A methodology to review and estimate the value of the informal Internet networks and a guidance to improve the strategic efficacy of these elusive ensembles is presented.

Outsourcing has become a popular method for firms to organize their production. An investigation regarding the market structure in the input-producing industry, will have a impact on the subgame-perfect outsourcing decisions of oligopoly firms.

The four congruent configurations, to address the processes of corporate value creation are explained. Mintzberg's configurations approach explores the organizational structures and processes connected with each strategy like financial control, scale, leverage, and creativity.

This paper shows that where a firm temporarily withholds investing in research and development as a strategic incentive, the asymmetry between competiting firms disappears over time.

An argument is presented supporting a correlation between structures of corporate control and management strategy toward unrelated risk diversification and mergers. Evidence is also presented demonstrating that corporate diversification tends to produce value loss, while focusing tends to increase value.