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1 – 10 of over 38000Gary D. Schnitkey, Bruce J. Sherrick and Scott H. Irwin
This study evaluates the impacts on gross revenue distributions of the use of alternative crop insurance products across different coverage levels and across locations with…
Abstract
This study evaluates the impacts on gross revenue distributions of the use of alternative crop insurance products across different coverage levels and across locations with differing yield risks. Results are presented in terms of net costs, values‐at‐risk, and certainty equivalent returns associated with five types of multi‐peril crop insurance across different coverage levels. Findings show that the group policies often result in average payments exceeding their premium costs. Individual revenue products reduce risk in the tails more than group policies, but result in greater reductions in mean revenues. Rankings based on certainty equivalent returns and low frequency VaRs generally favor revenue products. As expected, crop insurance is associated with greater relative risk reduction in locations with greater underlying yield variability.
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David Ray, John Gattorna and Mike Allen
Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The…
Abstract
Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.
Sahil Kansal, Harish Kumar and Sakshi Kaushal
As the storage and processing requirement of digital information is increasing on the cloud, it is very difficult for the single cloud provider (CP) to meet the resource…
Abstract
Purpose
As the storage and processing requirement of digital information is increasing on the cloud, it is very difficult for the single cloud provider (CP) to meet the resource requirement. Multiple providers form a federation for the execution of users’ requests. For the federated cloud, this paper aims to address the issue distribution of users’ request for resources and revenue among the providers by offering fair and stable distribution models for the federated cloud.
Design/methodology/approach
This paper uses cooperative game (CG)-theoretical models, i.e. Shapley–Shubik power index (SSPI) and Banzhaf power index (BPI) for distribution. Performance is analysed using variance and monotonicity using a case study.
Findings
Numerical analysis is done using two scenarios. Monotonicity is evaluated. Results show that SSPI performs better as compared to BPI in terms of fairness accuracy and the framework provide the fair distribution of revenue among providers in the federated cloud.
Research limitations/implications
The proposed framework works efficiently under the specific defined conditions.
Social implications
Paper provides the fair distribution. It assist the centralised cloud exchange in managing the users’ request in such a way every CPs, in the federated cloud will get an equal chance of serving the users’ request. The framework also provides the stable federation. Proposed work provides less rejection rate of users’ request. Finally, it assists the providers in increasing their profits in the federation.
Originality/value
This paper presents a CG theoretic-based framework for the distribution of resources required and revenue. The framework analysed the performance of distribution models by considering the variance and monotonicity for multiple users’ requests.
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The total or integrated approach to physical distribution places an emphasis upon integrating those activities which are involved either directly or indirectly with the provision…
Abstract
The total or integrated approach to physical distribution places an emphasis upon integrating those activities which are involved either directly or indirectly with the provision of customer service. As such, it contrasts with the traditional approach to physical distribution which emphasises the separate individual activities and the cost minimisation of such individual activities, while ignoring the interaction between the activities and their impact on revenue. While the total distribution concept has seemingly gained wide acceptance, Ray, Gattorna and Allen claim that the reason why it is rarely implemented is “lack of adequate cost data”. This view is shared by Shirley who states “particularly needed are new ways of thinking about distribution costs; to consider their interdependence and contribution to profit”. This monograph attempts to respond to this need by providing a consideration of the Mission Approach to Physical Distribution, and how physical distribution accounting systems may utilise this approach to provide information not only on the costs but also on the revenue aspects of providing varying levels of customer service.
Justin Ehrlich, Shankar Ghimire and Shane Sanders
Revenue sharing is ubiquitous among North American professional sports leagues. Under pool revenue sharing, above-average revenue teams of a league effectively transfer revenues…
Abstract
Purpose
Revenue sharing is ubiquitous among North American professional sports leagues. Under pool revenue sharing, above-average revenue teams of a league effectively transfer revenues to below-average revenue teams. Herein, the authors find and prove that a league will vote into policy a pool revenue sharing arrangement if and only if mean team revenue is greater than presharing median revenue, where this condition is equivalent to the presence of positive nonparametric skewness in a league’s distribution of team revenues. This represents a median voter theorem for league revenue sharing.
Design/methodology/approach
The authors consider the case of revenue sharing for the National Football League (NFL), a league that pools and equally shares national revenues among member teams.
Findings
The authors find evidence of positive and significant nonparametric skewness in NFL team revenue distributions for the 2004–2016 seasons. This distribution is observed amid annual majority rule votes of League owners in favor of maintaining the incumbent pool revenue sharing model (as opposed to no team revenue sharing). Distribution of revenues – namely the existence of outlying large market NFL teams – appears to consistently explain the historical popularity of NFL revenue sharing.
Originality/value
The median voter theorem uncovered in the case of NFL applies to all professional sports leagues and can be used predictively as well as descriptively.
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The purpose of this paper is to study the impact of differentiation price which has been utilized to segment demand, but results in imperfect segmentation. The use of a…
Abstract
Purpose
The purpose of this paper is to study the impact of differentiation price which has been utilized to segment demand, but results in imperfect segmentation. The use of a differentiation price is among the most widely used Revenue Management (RM) techniques to segment a firm’s demand to augment profitability.
Design/methodology/approach
Mathematical models are developed for a firm’s RM which use a differentiation price to categorize its market demand into two segments. Three distinct demand situations are considered: price-dependent deterministic demand, price-dependent stochastic demand whose distribution is known and price-dependent stochastic demand whose distribution is unknown. Models are analyzed to determine optimal joint control of a firm’s pricing and inventory decisions for each market segment.
Findings
The analysis of the firm’s RM model has shown that revenue is jointly concave in pricing and order quantity. In most demand situations, closed-form mathematical expressions for optimal pricing and inventory are obtained.
Research limitations/implications
In RM models developed in this paper, a firm only selects a differentiation price. Thus, an optimal selection of the differentiation price along with the pricing and inventory decisions may lead to an additional profitability which has not been explored in this research.
Practical implications
The findings reported are relevant to RM managers and practitioners and help them to calibrate their optimal revenues by segmenting markets using a differentiation price.
Social implications
This paper provides a quantitative perspective of a firm’s decision on the use of the differentiation price and the market response.
Originality/value
The paper provides a firm’s optimal decision on pricing and inventory when it experiences demand leakage due to categorizing its market demand into two segments using a differentiation price.
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Rory Bishop, Aaron C.T. Smith and Daniel Read
This article provides a plain language commentary on the distributive equity structure of the English Premier League (EPL) with the aim of introducing sport business practitioners…
Abstract
Purpose
This article provides a plain language commentary on the distributive equity structure of the English Premier League (EPL) with the aim of introducing sport business practitioners to a foundational challenge facing professional leagues as they grow financially with market opportunities, namely financial inequality between clubs.
Design/methodology/approach
Introducing and discussing data from seasons 2009/10–2018/19, the article reveals that despite maintaining a consistent distribution of the EPL prize fund over time, the financial imbalance within the league has grown throughout the period.
Findings
The EPL's financial distributive equity is exacerbated by growing imparity in the acquisition of sponsorship revenues, the distribution of broadcasting revenues and the implications of policies concerning financial fair play and parachute payments, leading to a problematic differential in the talent distribution and win–wage relationship experienced by the top six teams and the remainder.
Practical implications
The EPL's market-driven continuation of its revenue allocation policies has led to a broadening financial imbalance, in favour of the top clubs, which could paradoxically undermine the financial security of the teams and league. Sport business practitioners should be familiar with this fundamental challenge for sport leagues that accompanies financial growth.
Originality/value
Whilst the percentage difference in prize fund allocation between top and bottom clubs appears minor, there is a significant financial variation across the league, primarily due to the large increase in broadcasting income. This is compounded by positive feedback via the relative dominance of the top six clubs receiving the larger share allocated to higher finishing teams.
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Juan David Cortes, Jonathan E. Jackson and Andres Felipe Cortes
Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business…
Abstract
Purpose
Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business management and entrepreneurship has mostly neglected the agricultural context, leaving many of these farms' business challenges unexplored. The authors focus on informing a specific decision faced by small farm managers: selling directly to consumers (i.e. farmer's markets) versus selling through aggregators. By collecting historical data and a series of interviews with industry experts, the authors employ simulation methodology to offer a framework that advises how small-scale farmers can allocate their product across these two channels to increase revenue in a given season. The results, which are relevant for operations management, small business management and entrepreneurship literature, can help small-scale farmers improve their performance and compete against their larger counterparts.
Design/methodology/approach
The authors rely on historical and interview data from key industry players (an aggregator and a small farm manager) to design a simulation analysis that determines which factors influence season-long farm revenue performance under varying strategies of channel allocation and commodity production.
Findings
The model suggests that farm managers should plan to evenly split their production between the two distribution channels, but if an even split is not possible, they should plan to keep a larger percentage in the nonaggregator (farmers' market/direct) channel. Further, the authors find that farmers can benefit significantly from a strong aggregator channel customer base, which suggests that farmers should promote and advertise the aggregator channel even if they only use it for a limited amount of their product.
Originality/value
The authors integrate small business management and operations management literature to study a widely understudied context and present practical implications for the performance of small-scale farms.
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This paper aims to analyse the risk and return trade‐off in the film industry, and to explain the managerial decisions justifying significant investments in such a risky and…
Abstract
Purpose
This paper aims to analyse the risk and return trade‐off in the film industry, and to explain the managerial decisions justifying significant investments in such a risky and uncertain sector.
Design/methodology/approach
An extensive dataset of movies released in US theatres over a period of 12 years along with descriptive statistics, frequency analysis and scatter plot methodology are used.
Findings
The findings highlight: a positive relationship, although with high levels of variance, between production budgets and revenues; and a random association between costs and rates of return.
Practical implications
Differently from other commodities, whose demand can be quite accurately estimated, the success of a new film production is extremely uncertain. Therefore, the reason why major film companies have been successful over the last decades, in spite of the extreme variance that is characteristic of the industry, must be found in the management decision approach that they employ to deal with this uncertainty.
Originality/value
The paper uses statistical evidence to draw management implications, rather than only identifying the economic and financial behaviour of the firms running the film industry, in recognising that correct management decision approaches are behind the success of such an uncertain and volatile industry.
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The purpose of this study is to use a steady-state model structure to investigate earnings management (EM) theoretically in the context of different expense theories. Empirically…
Abstract
Purpose
The purpose of this study is to use a steady-state model structure to investigate earnings management (EM) theoretically in the context of different expense theories. Empirically, the objective is to apply the theoretical model to investigate the implicit choice of expense theories for reporting expenses. The study aims to present a new approach to analyze EM.
Design/methodology/approach
The study makes use of ten-year time-series data originally from 1,015 Finnish public and private firms to estimate the parameters of the steady-state model, and to investigate which expense theories the firms implicitly follow in financial reporting. The parameters are estimated using the restricted least squares regression method. The final sample included data from 631 firms fulfilling restrictions for the consistency of estimates.
Findings
The paper provides empirical insights about expense theories that Finnish firms implicitly follow in financial reporting. Evidence shows that the reporting of expenses mainly follows the units-of-revenue and the rate-of-return theories. Only a small number of firms follow the interest expense theory.
Research limitations/implications
The study is based on a steady-state approach, and therefore, the research results may lack generalizability as only 62% of the original sample firms obtained consistent estimates. Therefore, researchers are encouraged to use more general models for further theoretical and empirical work.
Practical implications
The paper includes implications for a new approach to EM. It also gives implications how to analyze different expense theories in the context of EM both theoretically and empirically.
Originality/value
This paper develops a new approach to investigate EM.
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