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Convex Costs (convex + cost)
Selected AbstractsThe Effects of a Baby Boom on Stock Prices and Capital Accumulation in the Presence of Social SecurityECONOMETRICA, Issue 2 2003Andrew B. Abel Is the stock market boom a result of the baby boom? This paper develops an overlapping generations model in which a baby boom is modeled as a high realization of a random birth rate, and the price of capital is determined endogenously by a convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of capital. The price of capital is mean,reverting so the initial increase in the price of capital is followed by a decrease. Social Security can potentially affect national saving and investment, though in the long run, it does not affect the price of capital. [source] Technology and Cartel Stability under Vertical DifferentiationGERMAN ECONOMIC REVIEW, Issue 4 2000Luca Lambertini The interplay between R&D activity and cartel stability is investigated in a vertical differentiation framework with convex costs. The behaviour of firms' critical discount factors as the curvature of the cost function varies is investigated, considering either price- or quantity-setting behaviour. In order to stabilize collusion, firms are better off playing à la Cournot and supplying the non-cooperative qualities. There emerges a tradeoff between the reduction of the convexity of the cost function and the associated increase in marginal cost. The decision to carry out joint or independent ventures in research is also investigated, showing that such a decision is non-monotone in intertemporal discounting. Policy measures are then briefly discussed. [source] The surprising benefits of a parallel universeMANAGERIAL AND DECISION ECONOMICS, Issue 2 2009Manfredi M.A. La Manna Suppose that the successful completion of a project requires performing n tasks, each of which has a probability of success p. The paper establishes under what conditions it may be profitable to engage in parallel multi-tasking, i.e. tackling each task by following two independent routes. It is found that for ,n>1 parallel multi-tasking is profitable for a wide range of parameters when costs are linear and is always profitable for convex costs. Copyright © 2008 John Wiley & Sons, Ltd. [source] Cycle-based algorithms for multicommodity network flow problems with separable piecewise convex costsNETWORKS: AN INTERNATIONAL JOURNAL, Issue 2 2008Mauricio C. de Souza Abstract We present cycle-based algorithmic approaches to find local minima of a nonconvex and nonsmooth model for capacity expansion of a network supporting multicommodity flows. By exploiting complete optimality conditions for local minima, we give the convergence analysis of the negative-cost cycle canceling method. The cycle canceling method is embedded in a tabu search strategy to explore the solution space beyond the first local optimum. Reaching a local optimum, the idea is to accept a cost-increasing solution by pushing flow around a positive-cost cycle, and then to make use of the cycle cancelling method incorporating tabu search memory structures to find high quality local optima. Computational experiments on instances of the literature show that the tabu search algorithm can significantly improve feasible solutions obtained by the local optimization procedure, and it outperforms the capacity and flow assignment heuristic in terms of solution quality. © 2007 Wiley Periodicals, Inc. NETWORKS, 2008 [source] | ||||||||||