Facing an Arbitrage Opportunity: Trade or Wait?

In traditional thinking, an arbitrageur will trade immediately once an arbitrage opportunity appears. Is this the best strategy for the arbitrageur or it is even better to wait for the best time to trade so as to achieve the maximum pro fit? To answer this question, this paper studies the optimal trading strategies of an arbitrageur … Read more

Sensitivity analysis of the optimal solutions to Huff-type competitive location and design problems

A chain wants to set up a single new facility in a planar market where similar facilities of competitors, and possibly of its own chain, are already present. Fixed demand points split their demand probabilistically over all facilities in the market proportionally with their attraction to each facility, determined by the different perceived qualities of … Read more

Formulation of Oligopolistic Competition in AC Power Networks: An NLP Approach

In this paper, oligopolistic competition in a centralized power market is characterized by a multi-leader single-follower game, and formulated as a nonlinear programming (NLP) problem. An AC network is used to represent the transmission system and is modeled using rectangular coordinates. The follower is composed of a set of competitive suppliers, demands, and the system … Read more