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This paper applies a volume-price probability wave differential equation to propose a conceptual theory and has innovative behavioral interpretations of intraday dynamic market…
Abstract
Purpose
This paper applies a volume-price probability wave differential equation to propose a conceptual theory and has innovative behavioral interpretations of intraday dynamic market equilibrium price, in which traders' momentum, reversal and interactive behaviors play roles.
Design/methodology/approach
The authors select intraday cumulative trading volume distribution over price as revealed preferences. An equilibrium price is a price at which the corresponding cumulative trading volume achieves the maximum value. Based on the existence of the equilibrium in social finance, the authors propose a testable interacting traders' preference hypothesis without imposing the invariance criterion of rational choices. Interactively coherent preferences signify the choices subject to interactive invariance over price.
Findings
The authors find that interactive trading choices generate a constant frequency over price and intraday dynamic market equilibrium in a tug-of-war between momentum and reversal traders. The authors explain the market equilibrium through interactive, momentum and reversal traders. The intelligent interactive trading preferences are coherent and account for local dynamic market equilibrium, holistic dynamic market disequilibrium and the nonlinear and non-monotone V-shaped probability of selling over profit (BH curves).
Research limitations/implications
The authors will understand investors' behaviors and dynamic markets through more empirical execution in the future, suggesting a unified theory available in social finance.
Practical implications
The authors can apply the subjects' intelligent behaviors to artificial intelligence (AI), deep learning and financial technology.
Social implications
Understanding the behavior of interacting individuals or units will help social risk management beyond the frontiers of the financial market, such as governance in an organization, social violence in a country and COVID-19 pandemics worldwide.
Originality/value
It uncovers subjects' intelligent interactively trading behaviors.
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Christopher Amaral, Ceren Kolsarici and Mikhail Nediak
The purpose of this study is to understand the profit implications of analytics-driven centralized discriminatory pricing at the headquarter level compared with sales force price…
Abstract
Purpose
The purpose of this study is to understand the profit implications of analytics-driven centralized discriminatory pricing at the headquarter level compared with sales force price delegation in the purchase of an aftermarket good through an indirect retail channel with symmetric information.
Design/methodology/approach
Using individual-level loan application and approval data from a North American financial institution and segment-level customer risk as the price discrimination criterion for the firm, the authors develop a three-stage model that accounts for the salesperson’s price decision within the limits of the latitude provided by the firm; the firm’s decision to approve or not approve a sales application; and the customer’s decision to accept or reject a sales offer conditional on the firm’s approval. Next, the authors compare the profitability of this sales force price delegation model to that of a segment-level centralized pricing model where agent incentives and consumer prices are simultaneously optimized using a quasi-Newton nonlinear optimization algorithm (i.e. Broyden–Fletcher–Goldfarb–Shanno algorithm).
Findings
The results suggest that implementation of analytics-driven centralized discriminatory pricing and optimal sales force incentives leads to double-digit lifts in firm profits. Moreover, the authors find that the high-risk customer segment is less price-sensitive and firms, upon leveraging this segment’s willingness to pay, not only improve their bottom-line but also allow these marginalized customers with traditionally low approval rates access to loans. This points out the important customer welfare implications of the findings.
Originality/value
Substantively, to the best of the authors’ knowledge, this paper is the first to empirically investigate the profitability of analytics-driven segment-level (i.e. discriminatory) centralized pricing compared with sales force price delegation in indirect retail channels (i.e. where agents are external to the firm and have access to competitor products), taking into account the decisions of the three key stakeholders of the process, namely, the consumer, the salesperson and the firm and simultaneously optimizing sales commission and centralized consumer price.
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This theoretical study aims to clarify the (a priori) ambiguous effect of homeownership on unemployment. In general, in fact, homeownership discourages job mobility, but…
Abstract
Purpose
This theoretical study aims to clarify the (a priori) ambiguous effect of homeownership on unemployment. In general, in fact, homeownership discourages job mobility, but homeowners are less likely to be unemployed than tenants, since homeownership would seem to be positively related to human capital.
Design/methodology/approach
This study develops a modified version of the benchmark theoretic model of the labour market – the well-known “equilibrium unemployment theory” – where homeownership affects both the “Beveridge Curve” (BC, by means of job immobility) and the “Job Creation Condition” (JCC, by means of human capital).
Findings
The general result is that an increase in homeownership increases unemployment. Therefore, policymakers could encourage job mobility, before facilitating homeownership. This policy implication, however, may not apply in the case of high inflation and/or low nominal interest rate, and when the job destruction rate depends on the homeownership rate.
Research limitations/implications
The model studies the steady-state equilibrium of the labour market, so the policy implications only relate to the long-run. The model, therefore, does not consider the short-run effects of homeownership on unemployment (which may differ from the long-term results).
Practical implications
The model suggests a public policy characterised by large investment in rail lines and subsidised commuter fares. By promoting a more efficient allocation of workers across regions (and, thus, job mobility), indeed, this policy can be a good way to increase employment, without harming homeownership.
Social implications
The practical implication of this model is also a social implication, since it relates to homeownership and housing tenure.
Originality/value
To the best of author’s knowledge, this is the first model that introduces the key role of homeownership in the so-called “Equilibrium unemployment theory”. Precisely, the model uses a modified version of both the BC (which includes the negative effect of homeownership on the overall job search intensity of unemployed workers) and the JCC (which includes the positive effect of homeownership on both the business start-up and the human capital of workers). By comparing these two opposite effects, this theoretical work makes clearer the net effect of homeownership on unemployment.
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Tai-Guang Gao, Qiang Ye, Min Huang and Qing Wang
This paper mainly focuses on how to induce all members to represent members' true preferences for supply and demand matching of E-commerce platform in order to generate stable…
Abstract
Purpose
This paper mainly focuses on how to induce all members to represent members' true preferences for supply and demand matching of E-commerce platform in order to generate stable matching schemes with more social welfare of Multi-agent Matching Platform (MMP) and individually stable advantages than traditional methods.
Design/methodology/approach
An MMP is designed. Meanwhile, a true preference inducing method, Lower-Bid Ranking (LBR), is proposed to reduce the number of false preferences, which is helpful to solve the problem that too much false preferences leads to low efficiency of platform operation and supply and demand matching. Then, a systematic model of LBR-based Stable Matching (SM-LBR) is proposed.
Findings
To obtain an ideal transaction partner, the adequate preference ordering and modifying according to market environment is needed for everyone, and the platform should give full play to the platforms' information advantages and process historical transaction and cooperation data. Meanwhile, the appropriate supply and demand matching is beneficial to improve the efficiency and quality of platform operation, and the design of matching guidance mechanism is essential.
Originality/value
The numerical experiments show that, the proposed model (SM-LBR) can induce members to represent the model's true preferences for stable matching and generate effective matchings with more social welfare of MMP and individually stable advantages than traditional methods, which may provide necessary method and model reference for the research of stable matching and E-commerce platform operation.
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Ning Zhang, Hong Zheng, Chi Yuan and Wenan Wu
This article aims to present a direct solution to handle linear constraints in finite element (FE) analysis without penalties or the Lagrange multipliers introduced.
Abstract
Purpose
This article aims to present a direct solution to handle linear constraints in finite element (FE) analysis without penalties or the Lagrange multipliers introduced.
Design/methodology/approach
First, the system of linear equations corresponding to the linear constraints is solved for the leading variables in terms of the free variables and the constants. Then, the reduced system of equilibrium equations with respect to the free variables is derived from the finite-dimensional virtual work equation. Finally, the algorithm is designed.
Findings
The proposed procedure is promising in three typical cases: (1) to enforce displacement constraints in any direction; (2) to implement local refinements by allowing hanging nodes from element subdivision and (3) to treat non-matching grids of distinct parts of the problem domain. The procedure is general and suitable for 3D non-linear analyses.
Research limitations/implications
The algorithm is fitted only to the Galerkin-based numerical methods.
Originality/value
The proposed procedure does not need Lagrange multipliers or penalties. The tangential stiffness matrix of the reduced system of equilibrium equations reserves positive definiteness and symmetry. Besides, many contemporary Galerkin-based numerical methods need to tackle the enforcement of the essential conditions, whose weak forms reduce to linear constraints. As a result, the proposed procedure is quite promising.
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Quanli Deng, Chunhua Wang, Yazheng Wu and Hairong Lin
The purpose of this paper is to construct a multiwing chaotic system that has hidden attractors with multiple stable equilibrium points. Because the multiwing hidden attractors…
Abstract
Purpose
The purpose of this paper is to construct a multiwing chaotic system that has hidden attractors with multiple stable equilibrium points. Because the multiwing hidden attractors chaotic systems are safer and have more dynamic behaviors, it is necessary to construct such a system to meet the needs of developing engineering.
Design/methodology/approach
By introducing a multilevel pulse function into a three-dimensional chaotic system with two stable node–foci equilibrium points, a hidden multiwing attractor with multiple stable equilibrium points can be generated. The switching behavior of a hidden four-wing attractor is studied by phase portraits and time series. The dynamical properties of the multiwing attractor are analyzed via the Poincaré map, Lyapunov exponent spectrum and bifurcation diagram. Furthermore, the hardware experiment of the proposed four-wing hidden attractors was carried out.
Findings
Not only unstable equilibrium points can produce multiwing attractors but stable node–foci equilibrium points can also produce multiwing attractors. And this system can obtain 2N + 2-wing attractors as the stage pulse of the multilevel pulse function is N. Moreover, the hardware experiment matches the simulation results well.
Originality/value
This paper constructs a new multiwing chaotic system by enlarging the number of stable node–foci equilibrium points. In addition, it is a nonautonomous system that is more suitable for practical projects. And the hardware experiment is also given in this article which has not been seen before. So, this paper promotes the development of hidden multiwing chaotic attractors in nonautonomous systems and makes sense for applications.
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Youjie Chen, Rong Fu, Junying Yang, En Zhang, Linlin Su and Fei Gao
This study aims to clarify the relationship between the coefficient of friction (COF) and temperature of aluminum-based brake discs.
Abstract
Purpose
This study aims to clarify the relationship between the coefficient of friction (COF) and temperature of aluminum-based brake discs.
Design/methodology/approach
Three friction blocks with different COFs are examined by a TM-I-type reduced-scale inertial braking dynamometer. On this basis, the thermo-mechanically coupled model of friction pairs is established to study the evolution of brake disc temperature under different COFs using ADINA software.
Findings
Results indicate that the calculated disc temperature field matches the experimental well. The effect of COF on the peak temperature is magnified by the braking speed. With the COF increasing, the rise rate of instantaneous peak temperature is accelerated, and the dynamic equilibrium period and cooling-down period are observed in advance. The increase in COF promotes the area ratio of the high-temperature zone and the maximum radial temperature difference. When the COF is increased from 0.245 to 0.359 and 0.434 at 140 km/h, the area ratio of high-temperature zone increases from 12% to 44% and 49% and the maximum radial temperature difference increases from 56°C to 75°C and 83°C. The sensitiveness of the axial temperature difference to the COF is related to the braking time. The maximum axial temperature difference increases with COF in the early stages of braking, while it is hardly sensitive to the COF in the later stages of braking.
Originality/value
The effect of COF on the aluminum-based brake disc temperature is revealed, providing a theoretical reference for the popularization of aluminum-based brake discs and the selection of matching brake pads.
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The author develops a bilateral Nash bargaining model under value uncertainty and private/asymmetric information, combining ideas from axiomatic and strategic bargaining theory…
Abstract
The author develops a bilateral Nash bargaining model under value uncertainty and private/asymmetric information, combining ideas from axiomatic and strategic bargaining theory. The solution to the model leads organically to a two-tier stochastic frontier (2TSF) setup with intra-error dependence. The author presents two different statistical specifications to estimate the model, one that accounts for regressor endogeneity using copulas, the other able to identify separately the bargaining power from the private information effects at the individual level. An empirical application using a matched employer–employee data set (MEEDS) from Zambia and a second using another one from Ghana showcase the applied potential of the approach.
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Luca Sciacovelli, Aron Cannici, Donatella Passiatore and Paola Cinnella
The purpose of the paper is to analyse the performances of closures and compressibility corrections classically used in turbulence models when applied to highly-compressible…
Abstract
Purpose
The purpose of the paper is to analyse the performances of closures and compressibility corrections classically used in turbulence models when applied to highly-compressible turbulent boundary layers (TBLs) over flat plates.
Design/methodology/approach
A direct numerical simulation (DNS) database of TBLs, covering a wide range of thermodynamic conditions, is presented and exploited to perform a priori analyses of classical and recent closures for turbulent models. The results are systematically compared to the “exact” terms computed from DNS.
Findings
The few compressibility corrections available in the literature are not found to capture DNS data much better than the uncorrected original models, especially at the highest Mach numbers. Turbulent mass and heat fluxes are shown not to follow the classical gradient diffusion model, which was shown instead to provide acceptable results for modelling the vibrational turbulent heat flux.
Originality/value
The main originality of the present paper resides in the DNS database on which the a priori tests are conducted. The database contains some high-enthalpy simulations at large Mach numbers, allowing to test the performances of the turbulence models in the presence of both chemical dissociation and vibrational relaxation processes.
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Weak repeatability is observed in handcrafted keypoints, leading to tracking failures in visual simultaneous localization and mapping (SLAM) systems under challenging scenarios…
Abstract
Purpose
Weak repeatability is observed in handcrafted keypoints, leading to tracking failures in visual simultaneous localization and mapping (SLAM) systems under challenging scenarios such as illumination change, rapid rotation and large angle of view variation. In contrast, learning-based keypoints exhibit higher repetition but entail considerable computational costs. This paper proposes an innovative algorithm for keypoint extraction, aiming to strike an equilibrium between precision and efficiency. This paper aims to attain accurate, robust and versatile visual localization in scenes of formidable complexity.
Design/methodology/approach
SiLK-SLAM initially refines the cutting-edge learning-based extractor, SiLK, and introduces an innovative postprocessing algorithm for keypoint homogenization and operational efficiency. Furthermore, SiLK-SLAM devises a reliable relocalization strategy called PCPnP, leveraging progressive and consistent sampling, thereby bolstering its robustness.
Findings
Empirical evaluations conducted on TUM, KITTI and EuRoC data sets substantiate SiLK-SLAM’s superior localization accuracy compared to ORB-SLAM3 and other methods. Compared to ORB-SLAM3, SiLK-SLAM demonstrates an enhancement in localization accuracy even by 70.99%, 87.20% and 85.27% across the three data sets. The relocalization experiments demonstrate SiLK-SLAM’s capability in producing precise and repeatable keypoints, showcasing its robustness in challenging environments.
Originality/value
The SiLK-SLAM achieves exceedingly elevated localization accuracy and resilience in formidable scenarios, holding paramount importance in enhancing the autonomy of robots navigating intricate environments. Code is available at https://github.com/Pepper-FlavoredChewingGum/SiLK-SLAM.
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