Experimentation and optimal output decisions: the cooperative versus the entrepreneurial firm
Article Abstract:
Comparison of the experimentation and optimal output strategies of entrepreneurial and cooperative firms is made in the context of uncertain demand. Short-term sacrifices for long-term payoffs in this context comes in the form of larger inventories of a perishable good on the assumption that greater output may yield more information on the demand-generating process and thus, prepare the supplier for future demand. The validity of this proposition is tested for the expected-profit-maximizing entrepreneurial firm and the expected-dividend-maximizing cooperative enterprise. The results indicate that while the enthusiasm of both types of firms for such experimentation is difficult to contain, the returns from such a strategy are not nearly as impressive as expected.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Optimal use and the value of water resources in electricity generation
Article Abstract:
Optimum operating conditions for a hydroelectric power plant in Greece are determined and compared to actual operating conditions. The plan is a mixed system, with interconnected thermal and hydroelectric generators. Short-term marginal costs and water values are derived to help determine costs of new plants and the necessary pricing of both electric power and water supply.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: An Analysis of Optimal Advertising Under Uncertainty. A Note on Optimal and Near Optimal Price and Advertising Strategies
- Abstracts: Capacity Expansion of Power Generation Systems with Uncertainty in the Prices of Primary Energy Resources
- Abstracts: The Recruiting, Training, and Professional Involvement of Tax Personnel of Large Corporations
- Abstracts: The financial effects of fuel adjustment clauses on electric utilities. Ride Sharing Packs Them in and Saves Money
- Abstracts: The Capital Asset Pricing Model and Strategic Planning: Response to Wernerfelt. Influence activities and strategic coordination: two distinctions of internal and external markets