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Monopoly Pricing and Capacity Choice under Uncertainty

Robert A Meyer
- 01 Jan 1975 - 
- Vol. 65, Iss: 3, pp 326-337
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This article is published in The American Economic Review.The article was published on 1975-01-01 and is currently open access. It has received 84 citations till now. The article focuses on the topics: Average cost pricing & Investment theory.

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Citations
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A Theoretical Analysis of Transnational Terrorism

TL;DR: In this article, the authors present some "rational-actor" models that depict the negotiation process between terrorists and government policymakers for those incidents where hostages or property are seized and demands are issued.
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Robust capacity planning under uncertainty

TL;DR: In this article, a robust capacity planning approach is described for solving problems in which robustness to likely errors is needed, and a robust approach is adopted to minimize an augmented objective function that penalises the sensitivity of the objective function to various types of uncertainty.
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An integrated evaluation of facility location, capacity acquisition, and technology selection for designing global manufacturing strategies

TL;DR: In this article, the authors review the literature in order to contribute to a better understanding of global manufacturing strategies and observe that an integrated analysis of the location, capacity and technology decisions is vital for the design of effective global manufacturing strategy.
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Efficient pricing and investment in electricity markets with intermittent resources

TL;DR: In this article, the authors present an updated economic model of pricing and investment in a restructured electricity market and use the model in a simulation study for an initial assessment of renewable energy strategy and alternative pricing mechanisms.
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Valuing Water Supply Reliability

TL;DR: In this article, a nonzero probability of water supply shortfall is considered for municipal water systems, and the consistency of these measures is gauged using an expected utility model, which is used to evaluate consumer preferences pertaining to water supply reliability.
References
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Behavior of the firm under regulatory constraint

TL;DR: In this paper, the authors discuss several of Takayama's criticisms in addition to showing that the so-called "A-J Effect" cannot be derived from the basic assumptions made by both Averch and Johnson and also present a new formulation which leads to the A-J result quoted above.
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Behavior of the Firm Under Regulatory Constraint

TL;DR: Averch and Johnson as mentioned in this paper argued that the introduction of an "active" constraint of a fair rate of return type would induce the firm to invest more than the original profit maximizing value of capital, and this would create an inefficient allocation of inputs.
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Uncertainty and Price Theory

TL;DR: In this article, the fundamental theorem of marginal cost and uncertain demand has been proved, and alternative specifications have been proposed, such as constant marginal cost, linear riskless demand, and rectangular distribution.
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Peak Loads and Efficient Pricing

TL;DR: In this article, the authors proposed a two-period peak load problem under simplifying assumptions and showed that purely cost-based prices can be used to achieve optimal results, and some policy implications are discussed.