The design of optimal conservation programs by electric utilities considering strategic consumer behavior
Article Abstract:
Many electric utilities are offering demand side conservation programs to promote energy conservation and improve load management. According to one study, US utilities invested $2 billion on such programs in 1992 alone. However, despite the huge amounts of money pouring to demand side management (DSM) schemes, many of these programs continue to be inefficient and to provoke strategic consumer reactions. A study is conducted to explore the relationship between a utility and its consumers, and to examine incentive compatible, optimal conservation programs that minimize strategic consumer behavior. The incentive schemes considered differ significantly from actual, DSM programs in that in these schemes, conservation costs may exceed the avoided costs and efficient, high-demand consumers are preferred over inefficient consumers.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1996
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Contracting for software development
Article Abstract:
An examination of the general structure of software development outsourcing contracts reveals that three basic issues underlie each contract, namely payment structure, intellectual property protection and product definition. This general structure is further studied using a game-theoretic model that analyzes the differences between software development outsourcing and in-house development of software. The model is then used to construct a viable outsourcing contract that achieves results that are as good as an in-house development program.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1992
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