Information acquisition and disclosure by firms in the presence of additional available information

In this paper we analyze a model which addresses two stylized facts which have received little attention in disclosure theory. (a) Information that is acquired for internal decision-making can subsequently be disclosed to outside investors who can use it to update their assessment of the firm’s prospects. Thus, the decision to gather information in the first place does not only depend on the decision value of information. (b) Information disclosed by firms is only one element of the information environment upon which investors can draw. This setting creates an interaction between firms’ information gathering and disclosure decisions as well as alternative sources of information. We identify an equilibrium structure which we call a Countersignaling equilibrium in which only average firms acquire information whereas good and bad firms do not. We show that while several equilibria can coexist, a Countersignaling equilibrium is often the economically most efficient one.     

Supply function equilibria for uniform price auction in oligopolistic markets

We consider game-theoretic models related to the supply function auction for electricity markets. We determine the set of supply function equilibria (SFE), introduced by Klemperer and Mayer (Econometrica 57:1243–1277, 1989), for a symmetric oligopoly with linear demand, fixed marginal cost and capacity constraint. This set depends on the maximum random shock of the demand function. We also study the best response dynamics and show that in general it does not converge to any SFE. We find out sufficient conditions for the convergence and conclude on the optimal parameters of the auction.     

A Necessary and Sufficient Proximity Condition for Smoothness Equivalence of Nonlinear Subdivision Schemes

In the recent literature on subdivision methods for approximation of manifold-valued data, a certain “proximity condition” comparing a nonlinear subdivision scheme to a linear subdivision scheme has proved to be a key analytic tool for analyzing regularity properties of the scheme. This proximity condition is now well known to be a sufficient condition for the nonlinear scheme to inherit the regularity of the corresponding linear scheme (this is called smoothness equivalence). Necessity, however, has remained an open problem. This paper introduces a smooth compatibility condition together with a new proximity condition (the differential proximity condition). The smooth compatibility condition makes precise the relation between nonlinear and linear subdivision schemes. It is shown that under the smooth compatibility condition, the differential proximity condition is both necessary and sufficient for smoothness equivalence. It is shown that the failure of the proximity condition corresponds to the presence of resonance terms in a certain discrete dynamical system derived from the nonlinear scheme. Such resonance terms are then shown to slow down the convergence rate relative to the convergence rate of the corresponding linear scheme. Finally, a super-convergence property of nonlinear subdivision schemes is used to conclude that the slowed decay causes a breakdown of smoothness. The proof of sufficiency relies on certain properties of the Taylor expansion of nonlinear subdivision schemes, which, in addition, explain why the differential proximity condition implies the proximity conditions that appear in previous work.     

The pos/neg-weighted 2-medians in balanced trees with subtree-shaped customers

This paper deals with the pos/neg-weighted p-median problem on tree graphs where all customers are modeled as subtrees. We present a polynomial algorithm for the 2-median problem on an arbitrary tree. Then we improve the time complexity to O(n log n) for the problem on a balanced tree, where n is the number of the vertices in the tree.     

On the optimization of two-class work-conserving parameterized scheduling policies

Numerous scheduling policies are designed to differentiate quality of service for different applications. Service differentiation can in fact be formulated as a generalized resource allocation optimization towards the minimization of some important system characteristics. For complex scheduling policies, however, optimization can be a demanding task, due to the difficult analytical analysis of the system at hand. In this paper, we study the optimization problem in a queueing system with two traffic classes, a work-conserving parameterized scheduling policy, and an objective function that is a convex combination of either linear, convex or concave increasing functions of given performance measures of both classes. In case of linear and concave functions, we show that the optimum is always in an extreme value of the parameter. Furthermore, we prove that this is not necessarily the case for convex functions; in this case, a unique local minimum exists. This information greatly simplifies the optimization problem. We apply the framework to some interesting scheduling policies, such as Generalized Processor Sharing and semi-preemptive priority scheduling. We also show that the well-documented \(c\mu \)-rule is a special case of our framework.     

Levitin–Polyak well-posedness by perturbations for the split inverse variational inequality problem

In this paper, we extend the notion of Levitin–Polyak wellposedness by perturbations to the split inverse variational inequality problem. We derive metric characterizations of Levitin–Polyak wellposedness by perturbations. Under mild conditions, we prove that the Levitin–Polyak well-posedness by perturbations of the split inverse variational inequality problem is equivalent to the existence and uniqueness of its solution.     

Automating Change of Representation for Proofs in Discrete Mathematics (Extended Version)

Representation determines how we can reason about a specific problem. Sometimes one representation helps us to find a proof more easily than others. Most current automated reasoning tools focus on reasoning within one representation. There is, therefore, a need for the development of better tools to mechanise and automate formal and logically sound changes of representation. In this paper we look at examples of representational transformations in discrete mathematics, and show how we have used tools from Isabelle’s Transfer package to automate the use of these transformations in proofs. We give an overview of a general theory of transformations that we consider appropriate for thinking about the matter, and we explain how it relates to the Transfer package. We show a few reasoning tactics we developed in Isabelle to improve the use of transformations, including the automation of search in the space of representations. We present and analyse some results of the use of these tactics.     

Scheduling products with subassemblies and changeover time

We revisit the problem, previously studied by Coffman et al, of scheduling products with two subassemblies on a common resource, where changeovers consume time, under the objective of flow-time minimization. We derive some previously unidentified structural properties that could be important to researchers working on similar batch scheduling problems. We show that there exists a series of base schedules from which optimal schedules can be easily derived. As these base schedules build on each other, they are easy to construct as well. We also show that the structure of these base schedules is such that batch sizes decrease over time in a well-defined manner. These insights about the general form of the schedules might also be important to practitioners wanting some intuition about the schedule structure that they are implementing.     

The dependency diagram of a linear programme

The Dependency Diagram of a Linear Programme (LP) shows how the successive inequalities of an LP depend on former inequalities, when variables are projected out by Fourier–Motzkin Elimination. It is also explained how redundant inequalities can be removed, using the method attributed to Chernikov and to Kohler. Some new results are given. The procedure also leads to a transparent explanation of Farkas’ Lemma, LP Duality, the dual form of Caratheodory’s Theorem as well as generating all vertices and extreme rays of the Dual Polytope.     

Cutting and packing problems for irregular objects with continuous rotations: mathematical modelling and non-linear optimization

We further improve our methodology for solving irregular packing and cutting problems. We deal with an accurate representation of objects bounded by circular arcs and line segments and allow their continuous rotations and translations within rectangular and circular containers. We formulate a basic irregular placement problem which covers a wide spectrum of packing and cutting problems. We provide an exact non-linear programming (NLP) model of the problem, employing ready-to-use phi-functions. We develop an efficient solution algorithm to search for local optimal solutions for the problem in a reasonable time. The algorithm reduces our problem to a sequence of NLP subproblems and employs optimization procedures to generate starting feasible points and feasible subregions. Our algorithm allows us to considerably reduce the number of inequalities in NLP subproblems. To show the benefits of our methodology we give computational results for a number of new challenger and the best known benchmark instances.