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Acknowledgments<br />

Many Ph.D. students said that their thesis would not be completed if not for their<br />

thesis advisors. What is even more true for me is that my thesis would not even<br />

be started if not for my thesis advisor, Professor Richard W. Cottle. When I first<br />

came to Stanford, all I knew about optimization was from an undergraduate linear<br />

programming course. I did not have much research or any teaching experience,<br />

either. Professor Cottle did not mind to work <strong>with</strong> a rookie like me. He greatly<br />

encouraged me to transfer from the Master to the Ph.D. program after I took<br />

two Ph.D.-level courses <strong>with</strong> him (one of which being the famous two-person class<br />

on linear complementarity <strong>problems</strong>). Over the years, he patiently taught me<br />

everything I know, not only on optimization theory, but also the right attitude on<br />

conducting research and toward life. He diligently and carefully read my weekly<br />

research reports for almost two years, and after that, read each of my three working<br />

papers uncountably many times. His critical thinking and invaluable guidance<br />

helped me improve the quality of my research. His support of my discussions and<br />

collaboration <strong>with</strong> other researchers has been tremendous. My work has been<br />

constantly motivated by one goal: to achieve the high standards he has set for<br />

me, and it will continue to be so in my future academic career. For everything<br />

that they have done for me during my years at Stanford, I am deeply indebted to<br />

him and his wife, Sue Cottle.<br />

I would like to express my gratitude to Professor Michael A. Saunders, who<br />

always makes his time for me from his busy schedule. His exceptionally careful<br />

readings of my papers and this thesis and his detailed comments greatly helped<br />

to polish my work. I will always remember his cheerful spirit and will miss his<br />

companionship in the late night hours, even during the Christmas and New Year<br />

holidays!<br />

I thank Professor Hung-Po Chao for serving on my oral and reading committee.<br />

His expertise on electric power industry and his insights on economic models in<br />

general provided a different perspective on my research. I am also grateful for the<br />

vii

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