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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. [...]

EXECUTIVE DIRECTOR CORNER My First Few Months: Meeting Our Community and Developing Context Here we are in late spring, and I am wrapping up my initial deep dive into the [...]

develop the thesis that in related diversified firms, the core business (in my analysis, the largest business) may provide benefits such as scope economies to a related segment, but it [...]

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 [...]

Franchising is normally viewed as a governance mechanism and/or a distribution medium. Most of the existing literature on franchising takes the view of the parent corporation (Franchisor) in order to explain behavior from the corporate level. Measures used in many studies are firm level performance metrics which capture profitability and efficiency. In this paper, I attempt to find if there are differences between franchised firms and independent firms in the residential real estate brokerage industry. In essence, franchising in a fragmented industry such as real estate brokerage is an attempt at a strategic marketing plan. This plan includes a branding element which can be an important motivator to franchise. I find, in a sample of 158 real estate transactions, that there are no differences between the two types of firms by using three statistical techniques--T Test, Regression, and Probit Analysis--and five variables--Listing Agent Type, Days on Market, Original Asking Price, Sale to Asking Price Ratio, and Commission Rate. The results put in doubt the use of franchising for strategic marketing purposes in that independent firms fared as well as franchised firms. These findings have implications for studies in Marketing, Entrepreneurship and Strategy., BACKGROUND Differences in industry structure can help to explain divergences in the strategic planning that new ventures undertake. Considering that entry barriers are lower in highly fragmented industries, one would [...]

We maintain that human resources are strategically significant in at least three cases, when these resources (1) help create traditional Ricardian rents; (2) function as components of organizational capabilities that [...]

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.

Study proposes that the motives for acquisitions are specific to whether assign entries are made through full or partial ownership. Findings offer new insights into the role of ownership structures in determining the choice of entry ownerships.

This paper introduces Family Firm Boundary Management Theory to the family firm literature to help researchers better understand why family firms prefer to safeguard information about their businesses and are so private about internal operations. FFBM has four interrelated dimensions, which are ownership, control, permeability, and levels. These dimensions, and other aspects of FFBM, are presented in the paper to help researchers better understand privacy issues in family firms, and more importantly to better plan for and develop family firm research projects., INTRODUCTION While the family firm is the most prevailing type of organization in the United States and throughout the world (Shanker & Astrachan; Dyer, 2003), the number of studies conducted [...]

ABSTRACT The paper presents an investigation of the structural characteristics of firms with differing strategic orientations, as conceptualized by Miles & Snow (1978). The associated relationships to perceived performance are [...]

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 [...]

CASE DESCRIPTION The primary subject matter of this case concerns the strategic direction of a not-for-profit organization. Secondary issues include international trade theory and economic development. The case has a [...]

CASE DESCRIPTION The primary focus of this case is on the problem solving processes and tools used by a large retail organization as it attempts to reduce legal expenses and [...]

CASE DESCRIPTION The primary subject matter of this case concerns developing an action plan to attempt to save an old line Argentine manufacturing and service firm in the face of [...]

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.

CASE DESCRIPTION The primary subject matter of this case concerns the viability of the transformation being undertaken in a large, widely diversified company with a storied past. Secondary issues include [...]

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 [...]

CASE DESCRIPTION The primary subject matter of this case is entrepreneurship, including the topics of industry analysis, legal structure, patents, raw material suppliers, and growth strategies. The case has a [...]