Making the most of short-term flexibility in the balancing market: Opportunities and challenges of voluntary bids in the new balancing market design

Small and medium-sized enterprises (SMEs) have been the target of supportive government policies since economic transformation began in Hungary although the birth of a strong and healthy layer of SMEs has not been observed in the country up to now. In this article the issue of why this has not happened is addressed. Empirical evidence suggested that Hungarian SMEs are not usually driven by the corporate values of Max Weber’s “protestant ethics”; instead, they aim at short-term financial enrichment. Hungarian SMEs cannot usually “climb the ladder” and turn into large enterprises – indeed, their survival period is relatively short. Nickell (1996) argued that (total factor) productivity rather than profitability would reflect a company’s efficiency level. Using frontier production and frontier profit functions there is an attempt here to prove that “technical (or allocative) efficiency” and “profit efficiency” both have a distinct role to play in explaining a firm’s economic performance; and by applying limited information maximum likelihood models of SME profit gaps it will be shown that cost inefficiencies and unfavourable market conditions — alongside the inefficient allocation of factors of production — inevitably lead to the fairly low level of SME profitability. The most important finding of the analysis is that employment has been a crucial factor in explaining the profit deviation of companies. Building on the results of Köllő (2001) the article argues that SMEs regard labour as flexible stock. Companies will seek out new labour if they find new market opportunities — but until these appear, they tend to remain in the arena of diminishing returns, this being the easiest way for them to maximise profits. Downgraded production activities do not attract substantial external financing. Yet a lack of financial resources when new market opportunities do emerge will prevent an SME from exploiting the chance.

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Next Generation B2B Commerce Using Software Agents

Electronic Commerce ◽

10.4018/978-1-59904-943-4.ch168 ◽

2011 ◽

pp. 2177-2199

Author(s):

Kaushal Chari ◽

Saravanan Seshadri

Keyword(s):

Information Technology ◽

21St Century ◽

Enterprise Systems ◽

It Infrastructure ◽

Next Generation ◽

Short Term ◽

Business Partners ◽

Market Opportunities ◽

Business To Business

Enterprises in the 21st century are striving to be agile in order to take advantage of the transient market opportunities. Enterprises are engaging in business-to-business (B2B) commerce with business partners by entering into short-term as well as long-term business arrangements using various technologies such as electronic exchanges. In order for the enterprises to be successful in their business endeavors, a key requirement is that the underlying information technology (IT) infrastructure in enterprises be intelligent and flexible enough to adapt to various changes in the market opportunities quickly. In this chapter, we first examine the information technology (IT) infrastructure requirements for intelligent enterprises in supporting B2B commerce. We then review agents technology and propose an agents-based architecture to support B2B commerce. This architecture covers electronic exchanges and enterprise systems for B2B commerce. Finally, we present some workflows to show how B2B commerce can be conducted using the agents-based architecture.

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Brazilian electricity market: Problems, dilemmas and a new market design aiming to enhance flexibility while ensuring the same level of efficiency and security of supply

Revista Econômica ◽

10.22409/economica.16i2.p232 ◽

2015 ◽

Vol 16 (2) ◽

Author(s):

Felipe A. Calabria ◽

J. Tomé Saraiva

Keyword(s):

Electricity Market ◽

Market Design ◽

Energy Resources ◽

Security Of Supply ◽

Short Term ◽

Market Participants ◽

System A ◽

Generation Capacity ◽

Supply Level ◽

Oriented Approach

The Brazilian electricity market contains certain particularities that distinguish it from other markets. With a continental interconnected transmission system, a large and growing demand, and a total installed generation capacity around 137 GW, from which around70% comes fromhydropower plants withmultipleownerscoexisting in hydro cascades, this electricity market has gone through two large institutional and regulatory reforms in the last twenty years. Nevertheless, currently the conciliation between the commercial commitments of the market participants and the physical dispatch is not smooth. There is a lack of “trading opportunities” to encourage participants to comply with their contracts. Moreover, the Brazilian short-term market actsas a mechanismto settle differences rather thana true market and,neither the short-term price northe dispatch schedule is determined by the market. This paper discusses these problems, brings out some dilemmas that should be examined in order to implement a more market-oriented approach, and proposes a new market design to overcome these issues. The proposed market design is based on the concept of energy right accounts as virtual reservoirs and aims at enhancing the flexibility to enable market participants to comply with their contracts, while still ensuring the efficient use of the energy resources and maintaining the current security supply level.

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Short-term overreaction in equity ETFs following extreme one-day returns

Revista Contabilidade & Finanças ◽

10.1590/1808-057x201807630 ◽

2019 ◽

Vol 30 (81) ◽

pp. 352-367

Author(s):

Júlio Lobão ◽

Ana Isabel Costa

Keyword(s):

Cross Section ◽

Extended Period ◽

Stock Exchanges ◽

Short Term ◽

Price Reversal ◽

Market Opportunities ◽

After Hours ◽

The Cross ◽

Price Movements ◽

Extreme Returns

Abstract This paper investigates the short-term price predictability of US equity Exchange Trade Funds (ETFs) in reaction to one-day extreme returns. We also assess the cross-section features associated to price overreaction following extreme price movements. The literature on the short-term overreaction of ETFs is rather scarce. Furthermore, existing studies tend to focus on delimited historical periods, which makes their results difficult to generalize. Our paper fills this gap by considering a comprehensive sample of ETFs over an extended period of time. In addition, we are the first to study the effect of the prevailing market trend and of liquidity on the patterns of overreaction and subsequent price reversal of ETFs. Being the major ETFs the most actively traded equity securities on the US stock exchanges, their performance and characteristics are of interest by themselves. Our findings suggest that market regulators should concentrate their resources on overseeing the ETF pricing that occurs after-hours. For market practitioners, our results indicate the existence of profitable market opportunities after large price movements. In the present study, we tested the significance of the mean returns for the period immediately after extreme returns. We also conducted a multivariate analysis where the price reversal was regressed against the cross section features of the ETFs under study. We contribute to the literature on ETF price formation as we document, for the first time, the existence of a stark contrast in the reaction to extreme price movements in these assets during normal hours and after-hours periods. On average, the extreme returns that occur in the after-hours period represent an overreaction, leading to a price reversal in the following period. In addition, we show that both tax-motivated trading and noise trading play a role in the pattern of ETF overreaction and reversal.

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Rethinking short-term electricity market design: Options for market segment integration

2017 14th International Conference on the European Energy Market (EEM) ◽

10.1109/eem.2017.7981931 ◽

2017 ◽

Cited By ~ 1

Author(s):

Susanne Riess ◽

Christoph Neumann ◽

Samuel Glismann ◽

Michael Schoepf ◽

Gilbert Fridgen

Keyword(s):

Electricity Market ◽

Market Design ◽

Market Segment ◽

Short Term ◽

Design Options

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Next Generation B2B Commerce Using Software Agents

Intelligent Enterprises of the 21st Century ◽

10.4018/978-1-59140-160-5.ch005 ◽

2011 ◽

pp. 67-91

Author(s):

Kaushal Chari ◽

Saravanan Seshadri

Keyword(s):

Information Technology ◽

21St Century ◽

Enterprise Systems ◽

It Infrastructure ◽

Next Generation ◽

Short Term ◽

Business Partners ◽

Market Opportunities ◽

Business To Business

Enterprises in the 21st century are striving to be agile in order to take advantage of the transient market opportunities. Enterprises are engaging in business-to-business (B2B) commerce with business partners by entering into short-term as well as long-term business arrangements using various technologies such as electronic exchanges. In order for the enterprises to be successful in their business endeavors, a key requirement is that the underlying information technology (IT) infrastructure in enterprises be intelligent and flexible enough to adapt to various changes in the market opportunities quickly. In this chapter, we first examine the information technology (IT) infrastructure requirements for intelligent enterprises in supporting B2B commerce. We then review agents technology and propose an agents-based architecture to support B2B commerce. This architecture covers electronic exchanges and enterprise systems for B2B commerce. Finally, we present some workflows to show how B2B commerce can be conducted using the agents-based architecture.

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Adult Education, Stratification, and Regime Change: Upgrading and Sidestepping in Russia, 1965–2005

Sociology of Education ◽

10.1177/0038040718823192 ◽

2019 ◽

Vol 92 (2) ◽

pp. 124-149 ◽

Cited By ~ 1

Author(s):

Yuliya Kosyakova ◽

Theodore P. Gerber

Keyword(s):

Adult Education ◽

Later Life ◽

Political Regime ◽

The Political ◽

Short Term ◽

Educational History ◽

Selection Processes ◽

Market Opportunities ◽

The Impact

Adult education influences how labor market opportunities are structured in the later life course. We propose a theoretical framework for understanding the stratifying role of adult education resting on the distinction between two forms of adult education—upgrading and sidestepping: Resources, incentives, and selection processes systematically structure rates of participation. Using educational history data from Russia, we test hypotheses derived from our framework and examine the impact of the Soviet collapse and the ensuing economic recovery. Upgrading exacerbates patterns of socioeconomic stratification by delivering better credentials to individuals with higher levels of initial resources. Sidestepping is less common than upgrading and less related to socioeconomic origins and previous attainment. The Soviet collapse produced short-term declines in the rates of both upgrading and sidestepping. However, once growth resumed, market institutions proved durable, and the political regime stabilized, rates of upgrading soared to levels exceeding those of the Soviet era.

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The Growth of the Firm—A Case Study: The Hercules Powder Company

The Business History Review ◽

10.2307/3111776 ◽

1960 ◽

Vol 34 (1) ◽

pp. 1-23 ◽

Cited By ~ 134

Author(s):

Edith T. Penrose

Keyword(s):

Supply And Demand ◽

Dynamic Interaction ◽

Short Term ◽

Product Demand ◽

Market Opportunities ◽

Available Resources

Growth is governed by a creative and dynamic interaction between a firm's productive resources and its market opportunities. Available resources limit expansion; unused resources (including technological and entrepreneurial) stimulate and largely determine the direction of expansion. While product demand may exert a predominant short-term influence, over the long term any distinction between “supply” and “demand” determinants of growth becomes arbitrary.

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