In our proposed scheme, SBSs individually take account of previous price strategies to update their beliefs about what is the best-response price strategy in the future.
Alternatively, the ISO could iteratively compute the 'best response' price for each generator, but this would require knowledge of each generator's net utility.
Note that the three conditions can be expressed in terms of best-response price (p^_{i}) (recall S i ∘ is also known function of p).
If there is a lag between demand growth and supply response, prices will be volatile.
In response, prices have remained in check, in part because the federal government has given in to demands from California to maintain caps on market prices.
2) Uniform standards for demand response pricing and incentives have not been established.
To assess consumer responses to price promotions, it is essential to measure the number of price promotions available for each product.
Based on the responses, a price reduction by half would result in a notable reduction in the existing price barrier.
However, each apparel product has its own characteristics, and consumers' responses to price discounts may vary when consumers shop for different types of apparel products.
Via a firm-union bargaining modelling structure, the question is examined as to likely earnings responses to price shocks under the two payment systems.
