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1 – 10 of 101Kurtis Swope, Ryan Wielgus, Pamela Schmitt and John Cadigan
Purpose – Land assembly can mitigate the negative environmental impacts of land fragmentation on urban areas, agriculture, and wildlife. However, the assembler faces several…
Abstract
Purpose – Land assembly can mitigate the negative environmental impacts of land fragmentation on urban areas, agriculture, and wildlife. However, the assembler faces several obstacles including transactions costs and the strategic bargaining behavior of landowners. The purpose of this chapter is to examine how the order of bargaining and the nature of contracts may impact the land assembler's problem.
Methodology – We develop theoretical predictions of subjects' behavior and compare these to behavior in a laboratory land-assembly game with monetary incentives.
Findings – Sellers bargain more aggressively when bargaining is sequential compared to simultaneous. Noncontingent contracts increase bargaining delay and the likelihood of failed agreements. Buyers and sellers act more aggressively when there are multiple bargaining periods, leading to significant bargaining delay. When a seller has an earnings advantage in the laboratory, it is the first seller to bargain in noncontingent contract treatments. In sequential bargaining treatments, most sellers preferred to be the first seller to bargain.
Research limitations – Our laboratory experiments involved only two sellers, complete information, and costless delay. Land assembly in the field may involve many sellers, incomplete information, and costly delay.
Practical implications – Some of our results contradict conventional wisdom and a common result from the land-assembly literature that it is advantageous to be the last seller to bargain, a so-called “holdout.” Our results also imply that fully overcoming the holdout problem may require subsidies or compulsory acquisition.
Originality – This chapter is one of the first to experimentally investigate the land-assembly problem, and the first to specifically examine the role of bargaining order and contract type.
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This chapter presents selected multiobjective methods for multiperiod portfolio optimization problem. Portfolio models are formulated as multicriteria mixed integer programs…
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This chapter presents selected multiobjective methods for multiperiod portfolio optimization problem. Portfolio models are formulated as multicriteria mixed integer programs. Reference point method together with weighting approach is proposed. The portfolio selection problem considered is based on a multiperiod model of investment, in which the investor buys and sells securities in successive investment periods. The problem objective is to allocate the wealth on different securities to optimize the portfolio expected return, the probability that the return is not less than a required level. Multiobjective methods were used to find tradeoffs between risk, return, and the number of securities in the portfolio. In computational experiments the data set of daily quotations from the Warsaw Stock Exchange were used.
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Bastian Chlond, Matthias Wirtz and Dirk Zumkeller
Purpose — The paper aims at an improvement of the understanding, how mobility is reported in longitudinal surveys and to develop ideas how to assess the completeness of the…
Abstract
Purpose — The paper aims at an improvement of the understanding, how mobility is reported in longitudinal surveys and to develop ideas how to assess the completeness of the reported mobility.
Methodology/approach — Analyses of data quality and completeness are performed on the multiday and multiperiod data of the German Mobility Panel. Distinctions are made between differing reporting behaviours of individuals who either reported three times, two times or only once.
Findings — It can be shown that the reporting behaviours are different depending on the number of repetitions. The results illustrate that on the one hand individuals who repeat the survey in a consecutive wave tend to report with greater motivation, endurance and accuracy. On the other hand, participants who have not reported completely and accurately are more likely to drop out. These effects positively influence the quality and completeness and therefore the reliability of recorded mobility figures in multiperiod mobility surveys.
Practical implications — The analytical possibilities of combined multiday and multiperiod data in terms of the assessment of data quality will be demonstrated. Hints to identify such types of survey artefacts are presented.
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Ammar Y. Alqahtani and Surendra M. Gupta
Economic incentives, government regulations, and customer perspective on environmental consciousness (EC) are driving more and more companies into product recovery business, which…
Abstract
Economic incentives, government regulations, and customer perspective on environmental consciousness (EC) are driving more and more companies into product recovery business, which forms the basis for a reverse supply chain. A reverse supply chain consists a series of activities that involves retrieving used products from consumers and remanufacturing (closed-loop) or recycling (open-loop) them to recover their leftover market value. Much work has been done in the areas of designing forward and reverse supply chains; however, not many models deal with the transshipment of products in multiperiods. Linear physical programming (LPP) is a newly developed method whose most significant advantage is that it allows a decision-maker to express his/her preferences for values of criteria for decision-making in terms of ranges of different degrees of desirability but not in traditional form of weights as in techniques such as analytic hierarchy process, which is criticized for its unbalanced scale of judgment and failure to precisely handle the inherent uncertainty and vagueness in carrying out pair-wise comparisons. In this chapter, two multiperiod models are proposed for a remanufacturing system, which is an element of a Reverse Supply Chain (RSC), and illustrated with numerical examples. The first model is solved using mixed integer linear programming (MILP), while the second model is solved using linear physical programming. The proposed models deliver the optimal transportation quantities of remanufactured products for N-periods within the reverse supply chain.
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The new Basel Accord (known as Basel II) attempts to introduce more risk-sensitive capital requirements. We propose a multiperiod deposit insurance pricing model that incorporates…
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The new Basel Accord (known as Basel II) attempts to introduce more risk-sensitive capital requirements. We propose a multiperiod deposit insurance pricing model that incorporates specific regulatory capital requirements and the possibility of capital forbearance and moral hazard. We estimate the cost of deposit insurance under alternative regulation regimes based on the building block approach of the 1988 Basel Accord (known as Basel I) and internal model-based (IMB) capital regulation. In contrast to the building block of Basel I, Basel II's IMB capital regulation links more closely the capital requirement to a bank's actual risk. We develop a multiperiod pricing model while incorporating the effects of capital forbearance and moral hazard. The fairly-priced premium rates are computed by assuming that a bank's asset value follows a GARCH process. In contrast to previous studies based on the building block capital standard, we find that forbearance and the potential moral hazard behavior will not increase the cost of deposit insurance in the scheme of Basel II's IMB capital regulation.
Chih-Yu Ting, Chung-Huang Huang and Allen H. Hu
More than 30 legal recyclables were proclaimed by Environmental Protection Administration (EPA) in Taiwan of those producers and importers are liable for paying a Resource…
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More than 30 legal recyclables were proclaimed by Environmental Protection Administration (EPA) in Taiwan of those producers and importers are liable for paying a Resource Recycling Fee (RRF). The Resource Recycling Management Fund determines both the tariff of RRF and the subsidy rate for recycling activities based on a predetermined pricing formula and collects the revenue to finance its collection and disposal. While contemplating on whether to proclaim waste mattress as a legal recyclable, EPA is facing several critical challenges, particularly the lack of data required for setting a tariff–subsidy mix. In this chapter we critically review the formula and propose an innovative pricing rule. Also, we develop a science-based approach to demonstrate how a tariff–subsidy mix could be determined under the circumstance of data deficiency. By doing so, we avoid not only the difficulty in solving the nonhomogeneous and nonautonomous first-order difference equation that governs the stock accumulation of waste mattress but also the distributed lag model of multiperiods linking quantity of mattress discarded and the quantity of new mattress sold. Such an approach could be applied to the durables for recycling pricing particularly when relevant data are limited.
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We develop a multiperiod contest theory model to formulate the role of decentralization in coups decision and outcome. In our model the coup plotter chooses between carrying out a…
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We develop a multiperiod contest theory model to formulate the role of decentralization in coups decision and outcome. In our model the coup plotter chooses between carrying out a coup and subordination, the central government responds by fighting against the plotter, and the local government chooses whether to confront the military government after a successful coup. The model shows that more decentralized countries will experience longer military regime after a successful coup, but the relationship between decentralization and the risk of coups is nonmonotonic. We suggest that there may exist negative consequences of decentralization: Depending on the initial conditions, decentralization may increase the coup risks and jeopardize political stability.
Martín Almuzara, Gabriele Fiorentini and Enrique Sentana
The authors analyze a model for N different measurements of a persistent latent time series when measurement errors are mean-reverting, which implies a common trend among…
Abstract
The authors analyze a model for N different measurements of a persistent latent time series when measurement errors are mean-reverting, which implies a common trend among measurements. The authors study the consequences of overdifferencing, finding potentially large biases in maximum likelihood estimators (MLE) of the dynamics parameters and reductions in the precision of smoothed estimates of the latent variable, especially for multiperiod objects such as quinquennial growth rates. The authors also develop an R2 measure of common trend observability that determines the severity of misspecification. Finally, the authors apply their framework to US quarterly data on GDE and GDI, obtaining an improved aggregate output measure.
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Kerk L. Phillips and Renee Barlow
Purpose – This chapter examines the risk of a hostile incursion as perceived by Fremont farmers living in the Range Creek area of Utah, 700–1700 years ago.Methodology/approach …
Abstract
Purpose – This chapter examines the risk of a hostile incursion as perceived by Fremont farmers living in the Range Creek area of Utah, 700–1700 years ago.
Methodology/approach – We build two simple financial portfolio models where agents (Fremont farmers) choose optimal locations to store grain based on a trade-off between ease of access during normal times and difficulty of confiscation during a hostile incursion. We calibrate our model using the observed distances and difficulty of access to granaries measured in caloric costs.
Findings – We find that even low or moderate probabilities of an incursion rationalize the use of cliff granaries. Risk on the order of a 5–25% chance per year makes building, maintaining, and transporting grain to a cliff granary worthwhile.
Social implications – Our research does not rule out other motives for granary construction. However, it does show that a small threat of hostilities can explain the observed location of granaries in Range Creek and other areas of Fremont habitation.
Originality/value of chapter – This research is unique in its application of standard financial portfolio theory (normally dealing with optimal holdings of risky financial assets) to the problem of deducing perceived risk. To our knowledge, this is the first use of these rational financial models in the context of a human population that has left no explicit economic evidence such as prices or transaction records.
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Hemantha S. B. Herath, Wayne G. Bremser and Jacob G. Birnberg
Empirical evidence indicates that effective management of resources to implement strategy in a balanced scorecard (BSC) system is essential. We present a mathematical model for…
Abstract
Purpose
Empirical evidence indicates that effective management of resources to implement strategy in a balanced scorecard (BSC) system is essential. We present a mathematical model for allocating limited resources in the BSC strategy implementation process.
Methodology/approach
The proposed facilitated negotiation model provides a systematic approach to prioritizing strategic initiatives in the design and implementation of a BSC.
Findings
Our joint decision model prioritizes strategic initiatives and concurrently calculates the optimal (or approximately optimal) set of BSC targets and weights, given multiyear resource restrictions.
Practical Implications
The model assumes full, open, and truthful exchange of information between the parties; an assumption that may exclude many organizations.
Social Implications
We address an important gap in the BSC literature on how organizations can effectively link strategy to the potential constraint of resource budgets.
Originality/value
Quantitative models are being used in practice for allocating resources, but we are not aware of their use by organizations for allocating resources in a BSC application.
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