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Abstract

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Freight Transport Modelling
Type: Book
ISBN: 978-1-78190-286-8

Article
Publication date: 30 October 2018

Marjan Raoufinia, Vahid Baradaran and Reza Shahrjerdi

The purpose of this study is to analyze comparatively the properties of open-loop and closed-loop equilibria in a dynamic oligopoly model with price dynamics and reflexive…

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Abstract

Purpose

The purpose of this study is to analyze comparatively the properties of open-loop and closed-loop equilibria in a dynamic oligopoly model with price dynamics and reflexive behavior of market agents.

Design/methodology/approach

To consider dynamic competitive markets, the authors focus on a differential game theory in oligopolistic structures, using analytical models to illustrate how advertising effort, good differentiation and price stickiness interact simultaneously in the open-loop and the closed-loop Nash equilibria. The comparative assessment of these equilibria obtains some significant results.

Findings

An optimization model that enriches the continuous time is presented. Under the open-loop and the closed-loop, Nash equilibrium showed an increase in the total output, advertising in price stickiness and promotional efficiency, while there was a decrease in product differentiation and advertising promotional efficiency. However, the open-loop equilibrium levels are larger than the closed-loop equilibrium. Under the closed-loop information, the long-run equilibrium was faster than the opened-loop in a dynamic oligopoly. The graphical illustration was used to present the behavior of the model parameters.

Practical implications

This study helps managers to choose an appropriate price and advertising adjustment to maximize profit. The obtained results may help firms to make the smart decision and may provide managers the valuable tool for making decisions in the competitive market environments.

Originality/value

This is a first attempt to analyze a dynamic oligopoly in the differentiated market environment. It considers a joint action of the output and advertising in shaping the closed-loop and the open-loop equilibria with N competitors in a dynamic competitive setting.

Details

Kybernetes, vol. 48 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 16 February 2022

Shan Yu and Qiang Hou

This study considered the dynamic equilibrium decision-making problem in a three-level supply chain comprising a manufacturer, a recycler and an echelon utilization (EchU…

Abstract

Purpose

This study considered the dynamic equilibrium decision-making problem in a three-level supply chain comprising a manufacturer, a recycler and an echelon utilization (EchU) enterprise under the condition of cost-sharing coordination.

Design/methodology/approach

This study constructed a differential game model based on cost-sharing coordinated decision-making among a manufacturer, a recycler and an EchU enterprise operating under a cost subsidy. The study determined the optimal equilibrium strategies and evolutionary characteristics of subsidy mechanisms in a closed-loop supply chain. Finally, this study numerically simulated the path evolution process of vehicle battery EchU, the profit of each stakeholder and the sensitivity of parameters and verified the influences of various parameters on the overall structure and path.

Findings

The results show that a cost subsidy policy has a moderating effect on the EchU decision-making process and supply chain profit. The effect of that policy increases over time.

Practical implications

This study determined the equilibrium decision-making of enterprises in a closed-loop vehicle battery supply chain from a dynamic perspective, as well as the combined effects of government subsidy policies and cost-sharing coordination mechanisms.

Social implications

The results have important guiding significance for coordination and cooperation between enterprises in closed-loop supply chains, for their decision-making and for the development of government subsidies.

Originality/value

This study considered the effects of government subsidies on closed-loop supply chains and the introduction of an EchU market to a closed-loop vehicle battery supply chain.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Abstract

Details

Optimal Growth Economics: An Investigation of the Contemporary Issues and the Prospect for Sustainable Growth
Type: Book
ISBN: 978-0-44450-860-7

Article
Publication date: 14 October 2021

Hui Yu, Wei Yang, Na Xu and Yang Du

After receiving advertising messages, most consumers rarely purchase the advertised products at once, which results in a delay between advertising exposure and its effect…

Abstract

Purpose

After receiving advertising messages, most consumers rarely purchase the advertised products at once, which results in a delay between advertising exposure and its effect. This paper is devoted to exploring the advertising decision and coordination issues for a supply chain system subject to advertising immediate and delayed effects.

Design/methodology/approach

By applying the game theory, the differential game models with delay are constructed for the supply chain to examine the equilibrium advertising efforts, brand goodwill and the optimal profits under the different cooperation situations. A class of transfer payment contracts is designed to achieve the best outcome of the supply chain. Illustrative examples are given to demonstrate the effectiveness of addressed results and provide some managerial perspectives.

Findings

It can be found that the complete cooperation situation can stimulate the advertising investment, drive the product demand and improve the economic profit. Also, a class of transfer payment contracts is designed in this paper, such that the supply chain can perfectly realize the profit maximization, and each member can achieve the Pareto improvement.

Research limitations/implications

This work does not address the random market environment, which can be filled in the future. Furthermore, this paper has been done in a single supply chain structure. It is an interesting future line of research when taking competitive behavior (e.g. competition among manufacturers, retailers or supply chains) into account.

Practical implications

This study will help managers make advertising strategies, advise an optimal cooperation way and design the coordination contracts to ensure the economic development of the supply chain. These obtained conclusions may provide a valuable decision-support for marketing management.

Originality/value

For a supply chain, the most previous literature about dynamic advertising models focused on a single advertising effect-immediate effect. This work explores advertising strategy with double advertising effects and investigates the coordinating power of new transfer payment contracts.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 27 July 2021

Shuwen Guo, Junwu Wang and Han Wu

This paper examines the profit distribution of engineering projects in the integrated project delivery (IPD) mode. IPD is a new delivery method that can ameliorate many of…

Abstract

Purpose

This paper examines the profit distribution of engineering projects in the integrated project delivery (IPD) mode. IPD is a new delivery method that can ameliorate many of the disadvantages of traditional delivery methods and improve project results. In the implementation of IPD, the profit distribution is key for ensuring the success of IPD projects.

Design/methodology/approach

This paper described a new method for characterizing profit distribution in the IPD mode. The payment function and Shapley value of the cooperative fuzzy game of fuzzy alliance were defined by considering the Choquet integral of the fuzzy measure. The participation of each player was considered, and the influence of participation on the profit distribution was discussed. Lastly, changes in the profit distribution of core participants under different alliance combinations were studied.

Findings

A case from a report of The American Institute of Architects (AIA) was used to verify the fuzzy alliance model. There was a significant correlation between the degree of participation of the owner, architect and builder and the profit distribution among these three participants.

Research limitations/implications

The theoretical research in this paper has some limitations. Initially, this paper selects a case with only three key participants in order to simplify the research. When there are many core participants, how to establish the alliance in the IPD mode and how to establish the corresponding profit distribution model, further work is certainly required to disentangle these complexities in models. Second, in this case, BIM technology has little impact on the income of the whole project. Therefore, this paper does not consider the impact of BIM technology on the marginal effect of the IPD project. Third, the contract type in the case is a custom tri-party based on IFOA. There is no classified discussion of the impact of different contracts on the profit distribute in the paper.

Practical implications

Based on the in-depth study of cooperative game with alliance structure, this paper promotes the classic cooperative game with alliance structure. The authors define the payoff function of fuzzy cooperative games by Choquet integral of fuzzy measure, and introduce the idea into the field of IPD. It aims at extending the solution to a cooperative game without a core. It can be obtained through a simple calculation. In the IPD alliance, the fuzziness and uncertainty of the participation degree of each participant will affect the profit of the whole project. The authors find that the higher the participation rate of players, the more profit each participant has. The greater the influence weight of the designer on the alliance, the lower the influence weight of the contractor on the alliance, the lower the participation of the contractor and the designer, and the lower the income distribution value of the three core participants. It shows a monotonous decline status.

Social implications

For any construction enterprise, it can make more profits if it joins the grand alliance. In the IPD alliance, each participant can maximize their own interests, which can also promote the enthusiasm of construction enterprises to participate in the alliance and increase the application of IPD mode in AEC industry. This research method provides a new fast, effective, and more realistic solution method for cooperative countermeasures. It can be further extended to other cooperative game fields and advance a new research perspective and solution for the distribution of cooperative interests.

Originality/value

The contribution of this paper is the development of a fuzzy alliance model that provides a tool for measuring the profit distribution in IPD. This is the first quantitative model to connect the degree of participation with the profit distribution in IPD using fuzzy alliance.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 8
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 April 2003

Seow Eng Ong, Fook Jam Cheng, Boaz Boon and Tien Foo Sing

Real estate developers often operate in oligopolistic environments. Pricing strategies must be made in an interactive framework that makes empirical evaluation difficult…

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Abstract

Real estate developers often operate in oligopolistic environments. Pricing strategies must be made in an interactive framework that makes empirical evaluation difficult. This study appeals to economic experiments to examine how developers price their properties, especially when there is an option to market pre‐completed units. In addition, the interaction between bidding for land and pricing the end product is examined. The results indicate that competitor actions are important considerations in pricing decisions. In particular, the profit maximizing pricing strategy depends critically on being competitive, not necessarily being the most aggressive. Interestingly, pre‐completed units sell only at prices that incorporate future price expectations, and successful bids tend to precipitate more aggressive pricing. Finally, competitive bidding and pricing strategies appear to the best profit maximizing strategy.

Details

Journal of Property Investment & Finance, vol. 21 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 10 August 2010

Shuping Wan

The purpose of this paper is to research stochastic dynamic investment games with stochastic interest rate model in continuous time between two investors. The market…

Abstract

Purpose

The purpose of this paper is to research stochastic dynamic investment games with stochastic interest rate model in continuous time between two investors. The market interest rate has the dynamics of Duffie‐Kan interest rate.

Design/methodology/approach

Recently, there has been an increasing interest in financial market models whose key parameters, such as the bank interest rate, stocks appreciation rates, and volatility rates, are modulated by stochastic interest rate. This paper uses the Duffie‐Kan stochastic interest rate model to develop stochastic differential portfolio games. By the HJB optimality equation, a general result in optimal control for a stochastic differential game with a general utility payoff function is obtained.

Findings

Derive a general result in optimal control for a stochastic differential game with a general utility payoff function. The explicit optimal strategies and value of the games are obtained for the constant relative risk aversion utility games of fixed duration.

Research limitations/implications

Accessibility and availability of stochastic interest rate data are the main limitations, which apply.

Practical implications

The results obtained in this paper could be used as a guide to actual portfolio games.

Originality/value

This paper presents a new approach for the optimal portfolio model under compound jump processes. The paper is aimed at actual portfolio games.

Article
Publication date: 7 December 2020

Olanike Akinwunmi Adeoye, Sardar MN Islam and Adeshina Israel Adekunle

Determining the optimal capital structure becomes more complicated by the presence of an agency problem. The issuance of debt as a corporate governance mechanism…

Abstract

Purpose

Determining the optimal capital structure becomes more complicated by the presence of an agency problem. The issuance of debt as a corporate governance mechanism introduces the asset substitution problem – the agency cost of debt. Thus, there is a recognized need for models that can resolve the agency problem between the debtholder and the manager who acts on behalf of the shareholder, leading to optimal capital structure choice, and enhanced firm value. The purpose of this paper is to model the debtholder-manager agency problem as a dynamic game, resolve the conflicts of interests and determine the optimal capital structure.

Design/methodology/approach

As there is no satisfactory model for dealing with the above issues, this paper uses a differential game framework to analyze the incongruity of interests between the debtholder and the manager as a non-cooperative dynamic game and further resolves the conflicts of interests as a cooperative game via a Pareto-efficient outcome.

Findings

The optimal capital structure required to minimize the marginal cost of the agency problem is a higher use of debt, lower cost of equity and withheld capital distributions. The debtholder is also able to enforce cooperation from the manager by providing a lower and stable cost of debt and a greater debt facility in the overtime framework.

Originality/value

The study develops a new dynamic contract theory model based on the integrated issues of capital structure, corporate governance and agency problems and applies the differential game approach to minimize the agency problem between the debtholder and the manager.

Details

Journal of Modelling in Management, vol. 16 no. 4
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 29 October 2021

Junyi Wei and Chuanxu Wang

The objective of this paper is to investigate the impact of the information sharing of the dynamic demand on green technology innovation and profits in supply chain from a…

Abstract

Purpose

The objective of this paper is to investigate the impact of the information sharing of the dynamic demand on green technology innovation and profits in supply chain from a long-term perspective.

Design/methodology/approach

The authors consider a supply chain consisting of a manufacturer and a retailer. The retailer has access to the information of dynamic demand of the green product, whereas the manufacturer invests in green technology innovation. Differential game theory is adopted to establish three models under three different scenarios, namely (1) decentralized decision without information sharing of dynamic demand (Model N-D), (2) decentralized decision with information sharing of dynamic demand (Model S-D) and (3) centralized decision with information sharing of dynamic demand (Model S-C).

Findings

The optimal equilibrium results show that information sharing of dynamic demand can improve the green technology innovation level and increase the green technology stocks only in centralized supply chain. In the long term, the information sharing of dynamic demand can make the retailer more profitable. If the influence of green technology innovation on green technology stocks is great enough or the cost coefficient of green technology innovation is small enough, the manufacturer and decentralized supply chain can benefit from information sharing. In centralized supply chain, the value of demand information sharing is greater than that of decentralized supply chain.

Originality/value

The authors used game theory to investigate demand information sharing and the green technology innovation in a supply chain. Specially, the demand information is dynamic, which is a variable that changes over time. Moreover, our research is based on a long-term perspective. Thus, differential game is adopted in this paper.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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