Economics

Permanent URI for this collectionhttps://hdl.handle.net/10679/316

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Now showing 1 - 8 of 8

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Damaged durable goods, upgrades, and the coase conjecture
(Mohr Siebeck, 2018-12) Özener, Başak Altan; Economics; ÖZENER, Başak Altan
This study analyzes a damaged-goods market for a perfectly durable good in an infinite-horizon, discrete-time game. We characterize Markov perfect equilibria of this game under different buyer upgrade possibilities as a function of the common discount factor, the length of the time period between successive price changes, and the quality levels of the goods. We establish that introducing a lower-quality good (or equivalently, damaging a good) works as a commitment device only if consumers holding a durable good cannot reenter the market. When a buyer can upgrade the product, we establish that for all parameter values the Coase conjecture survives.
Open Access
Dynamic durable goods monopoly and market power
(MDPI, 2020-06) Özener, Başak Altan; Economics; ÖZENER, Başak Altan
We analyze a vertically differentiated market for an imperfectly durable good served by a monopolist in an infinite-horizon, discrete-time game. Our goal is to identify the Markov perfect stationary equilibria where the seller can maintain his monopoly power. We establish that the set of parameters supporting a monopoly outcome is larger when the seller offers different quality versions of the same product. Hence, our results suggest that, when the innate durability of a product is high, the seller should offer different quality versions of the product.
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Dynamic moral hazard with sequential tasks
(Elsevier, 2019-10) Özener, Başak Altan; Economics; ÖZENER, Başak Altan
We study a sequential agency problem with hidden actions in an infinite horizon dynamic setting. The principal has a project that requires completion of two sequential tasks where the predecessor must be finished before the successor can be started. We characterize the efficient outcome as well as the optimal full commitment contract.
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A game theoretical approach for improving the operational efficiencies of less-than-truckload carriers through load exchanges
(Springer, 2021-09) Özener, Başak Altan; Özener, Okan Örsan; Economics; Industrial Engineering; ÖZENER, Başak Altan; ÖZENER, Okan Örsan
Less-than-truckload (LTL) transportation offers fast, flexible and relatively low-cost transportation services to shippers. In order to cope with the effects of economic recessions, the LTL industry implemented ideas such as reducing excess capacity and increasing revenues through better yield management. In this paper, we extend these initiatives beyond the reach of individual carriers and propose a collaborative framework that facilitates load exchanges to reduce the operational costs. Even though collective solutions are proven to provide benefits to the participants by reducing the inefficiencies using a system-wide perspective, such solutions are often not attainable in real-life as the negotiating parties are seeking to maximize their individual profits rather than the overall profit and also they are unwilling to share confidential information. Therefore, a mechanism that enables collaboration among the carriers should account for the rationality of the individual participants and should require minimal information transfer between participants. Having this in mind, we propose a mechanism that facilities collaboration through a series of load exchange iterations and identifies an equilibrium among selfish carriers with limited information transfer among the participants. Our time-efficient mechanism can handle large instances with thousands of loads as well as provide significant benefits over the non-collaborative management of LTL networks.
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Optimal peer-to-peer network for streaming multimedia broadcast
(Elsevier, 2020-11) Özener, Başak Altan; Sunay, M. O.; Economics; ÖZENER, Başak Altan
This study identifies optimal transmission mechanisms for a streaming video service in a peer-to-peer network structure as a function of the number of active peers, a common service value, a common discount factor, and costs accumulated by the server and peers under two different peer participation settings: no peer churn and with peer churn. We calculate a uniform service price for every possible peer-to-peer distribution tree and identify the optimal transmission mechanism under different cost structures.
Open Access
Price and quality decisions of a service provider under heterogeneous demand
(Boğaziçi Üniversitesi, 2019) Özener, Başak Altan; Atahan, Pelin; Economics; Sectoral Education and Professional Development; ÖZENER, Başak Altan; DEMİRCİLER, Pelin Atahan
A monopolist service provider's quality and price decisions are analyzed in a vertically differentiated market where customers demand different quantities of a service. We find that depending on the relative sizes of the market segments and the difference in the valuations of different customers, the service provider may find it optimal to either offer a non-discriminating service or a discriminating service serving only high-valuation customers. The service provider never finds it optimal to serve the market segments that have low-valuation for quality when the discrimination strategy is optimal. © 2019 Bogazici Universitesi. All rights reserved.
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Production planning with flexible manufacturing systems under demand uncertainty
(Taylor & Francis, 2024) Elyasi, M.; Özener, Başak Altan; Ekici, Ali; Özener, Okan Örsan; Economics; Industrial Engineering; ÖZENER, Başak Altan; EKİCİ, Ali; ÖZENER, Okan Örsan
This paper delves into the impacts of an ongoing global crisis on the resilience of supply chains. Furthermore, it proposes measures to address and mitigate the disruptions caused by the prevailing uncertainties. For example, while the economy has started to recover after the pandemic and demand has increased, companies have not fully returned to their pre-pandemic levels. To enhance their supply chain resilience and effectively manage disruptions, one viable strategy is the implementation of flexible/hybrid manufacturing systems. This research is motivated by the specific requirements of Vestel Electronics, a household appliances company, which seeks a flexible/hybrid manufacturing production setup involving dedicated machinery to meet regular demand and the utilisation of flexible manufacturing system (FMS) to handle surges in demand. We employ a scenario-based approach to model demand uncertainty, enabling the company to make immediate and adaptive decisions that take advantage of the cost-effectiveness of standard production and the responsiveness of FMS. To solve the problem, we propose a heuristic algorithm based on column generation. The numerical results demonstrate that our optimisation model provides solutions with an average optimality gap of less than 6% while also reducing the average cost of standard production schemes without FMS by over 12%.
Open Access
Stochastic production planning with flexible manufacturing systems and uncertain demand: A column generation-based approach
(Elsevier, 2022) Elyasi, Milad; Özener, Başak Altan; Ekici, Ali; Özener, Okan Örsan; Yanıkoğlu, İhsan; Economics; Industrial Engineering; ÖZENER, Başak Altan; EKİCİ, Ali; ÖZENER, Okan Örsan
The ongoing pandemic, namely COVID-19, has rendered widespread economic disorder. The deficiencies have delayed production at manufacturers in several industries on the supply side. The effects of disruption were more notable for industries with longer supply chains, especially reaching East Asia. Regarding the demand, sectors can be divided into three categories: i) the ones, like e-commerce companies, that experienced augmented demand; ii) the ones with a plunged demand, like what hotels and restaurants experience; iii) the companies experiencing a roller-coaster-ride business. After mitigation efforts, the economy started recovering, resulting in increased demand. However, regardless of their struggles, the companies have not fully returned to their pre-pandemic levels. One of the strategies to gain resilience in its supply chain and manage the disruptions is to employ flexible/hybrid manufacturing systems. This paper considers a flexible/hybrid manufacturing production setting with typically dedicated machinery to satisfy regular demand and a flexible manufacturing system (FMS) to handle surge demand. We model the uncertainty in demand using a scenario-based approach and allow the business to make here-and-now and wait-and-see decisions exploiting the cost-effectiveness of the standard production and responsiveness of the FMS. We propose a column generation-based algorithm as the solution approach. Our computational analysis shows that this hybrid production setting provides highly robust response to the uncertainty in demand, even with high fluctuations.

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