Read, Simon
1989-01-01
Describes a game that illustrates the effects of pricing on profit. Students compete against each other in an imaginary industry and become familiar with decision-making processes. Depicts the gameboard, how to make it, and how to use it. (GG)
Ethical aspect price decision making
Grubor Aleksandar
2007-01-01
Full Text Available Price decision making in a marketing program framework creatings is a complicated and delicated part of marketing management, especially to keep in sight culminating of mass external factors. In a market economies price policy as a marketing mix instrument rarely is regulated by the law, which opening the ethical aspect questions of price decision making process. The ethics in the price decision making means consideration of the inner law of the individual (marketing managers and/or consumers, whose irreverence does not entail any juridical sanctions, rather its application is sanctioned by the self - awareness. The acception and stability of the ethical aspect price decision making are determined by the characteristic of selected marketing environment.
Dynamic bi-product bundle pricing problem
Rafiei Hamed
2014-01-01
Full Text Available This paper addresses bundle pricing problem of two products in a stochastic environment so as to maximize net profit of a retailer. In the considered problem, it is assumed that customers are received upon a Poisson distribution and their demands follow a bi-variant distribution function. Also, it is assumed that products are sold individually or in the form of a bundle, which are offered from an initial stock of the products. To tackle the problem, a stochastic dynamic program is developed in which optimum values of the initial stock and order quantities of every planning period are determined. Moreover, prices of the individual products and their bundle are optimized. Also, the proposed dynamic program tackles bundling/ unbundling decisions taken in every planning period. A numerical example of a two planning period horizon is considered to validate the proposed model.
Option Strike Price and Managerial Investment Decisions
刘鸿雁; 张维
2003-01-01
The manager′s investment decisions is modeled when the manager is risk-averse and has stock options as compensation. It is found that the strike price of options is crucial to the investment incentives of managers, and that the correct value, or interval of values, of managerial stock option strike price can bring stockholder and manager interests in agreement.
Zhu, Stuart X.
2013-01-01
We study a joint decision problem for replenishment, production, pricing strategies in the face of both supply and demand uncertainties. The supply of the raw material suffers from a potential supply disruption while the demand for the finished goods is price-sensitive and random. We assume that the
INTEGRATED DECISION ON PRICING, PROMOTION AND INVENTORY MANAGEMENT
JU-LIANG ZHANG
2012-01-01
Firms often utilize promotion (such as coupons, advertisements, recruitment of excellent salespeople, and leafleting etc.) and dynamic adjustment of price to manage customers as well as proper production/inventory plan to satisfy the customers to get maximal profit in a firm. The decision on promotion and pricing and the decision on production/inventory must support each other. This paper addresses coordinated decision on pricing, promotion(non-price promotion) and inventory management. Speci...
Probability, Problem Solving, and "The Price is Right."
Wood, Eric
1992-01-01
This article discusses the analysis of a decision-making process faced by contestants on the television game show "The Price is Right". The included analyses of the original and related problems concern pattern searching, inductive reasoning, quadratic functions, and graphing. Computer simulation programs in BASIC and tables of…
Approximation Preserving Reductions among Item Pricing Problems
Hamane, Ryoso; Itoh, Toshiya; Tomita, Kouhei
When a store sells items to customers, the store wishes to determine the prices of the items to maximize its profit. Intuitively, if the store sells the items with low (resp. high) prices, the customers buy more (resp. less) items, which provides less profit to the store. So it would be hard for the store to decide the prices of items. Assume that the store has a set V of n items and there is a set E of m customers who wish to buy those items, and also assume that each item i ∈ V has the production cost di and each customer ej ∈ E has the valuation vj on the bundle ej ⊆ V of items. When the store sells an item i ∈ V at the price ri, the profit for the item i is pi = ri - di. The goal of the store is to decide the price of each item to maximize its total profit. We refer to this maximization problem as the item pricing problem. In most of the previous works, the item pricing problem was considered under the assumption that pi ≥ 0 for each i ∈ V, however, Balcan, et al. [In Proc. of WINE, LNCS 4858, 2007] introduced the notion of “loss-leader, ” and showed that the seller can get more total profit in the case that pi < 0 is allowed than in the case that pi < 0 is not allowed. In this paper, we derive approximation preserving reductions among several item pricing problems and show that all of them have algorithms with good approximation ratio.
Joint Ordering and Pricing Decisions for New Repeat-Purchase Products
Xiang Wu
2015-01-01
Full Text Available This paper studies ordering and pricing problems for new repeat-purchase products. We incorporate the repeat-purchase rate and price effects into the Bass model to characterize the demand pattern. We consider two decision models: (1 two-stage decision model, in which the sales division chooses a price to maximize the gross profit and the purchasing division determines an optimal ordering decision to minimize the total cost under a given demand subsequently, and (2 joint decision model, in which the firm makes ordering and pricing decisions simultaneously to maximize the profit. We combine the generalized Bass model with dynamic lot sizing model to formulate the joint decision model. We apply both models to a specific imported food provided by an online fresh produce retailer in Central China, solve them by Gaussian Random-Walk and Wagner-Whitin based algorithms, and observe three results. First, joint pricing and ordering decisions bring more significant profits than making pricing and ordering decisions sequentially. Second, a great initiative in adoption significantly increases price premium and profit. Finally, the optimal price shows a U-shape (i.e., decreases first and increases later relationship and the profit increases gradually with the repeat-purchase rate when it is still not very high.
Optimal pricing decision model based on activity-based costing
王福胜; 常庆芳
2003-01-01
In order to find out the applicability of the optimal pricing decision model based on conventional costbehavior model after activity-based costing has given strong shock to the conventional cost behavior model andits assumptions, detailed analyses have been made using the activity-based cost behavior and cost-volume-profitanalysis model, and it is concluded from these analyses that the theory behind the construction of optimal pri-cing decision model is still tenable under activity-based costing, but the conventional optimal pricing decisionmodel must be modified as appropriate to the activity-based costing based cost behavior model and cost-volume-profit analysis model, and an optimal pricing decision model is really a product pricing decision model construc-ted by following the economic principle of maximizing profit.
Smart Pricing: Linking Pricing Decisions with Operational Insights
M. Fleischmann (Moritz); J.M. Hall (Joseph); D.F. Pyke (David)
2003-01-01
textabstractThe past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, compa
Smart Pricing: Linking Pricing Decisions with Operational Insights
M. Fleischmann (Moritz); J.M. Hall (Joseph); D.F. Pyke (David)
2003-01-01
textabstractThe past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, compa
Wei, Jie; Govindan, Kannan; Li, Yongjian;
2015-01-01
The optimal decision problem of a closed-loop supply chain with symmetric and asymmetric information structures is considered using game theory in this paper. The paper aims to explore how the manufacturer and the retailer make their own decisions about wholesale price, retail price, and collection....... The optimal strategies in closed form are given under the decision scenarios with symmetric information; moreover, the first order conditions that the optimal retail price, optimal wholesale price, and optimal collection rate satisfy are given under the decision scenarios with asymmetric information...... rate under symmetric and asymmetric information conditions. Four game models are established, which allow one to examine the strategies of each firm and explore the role of the manufacturer and the retailer in four different game scenarios under symmetric and asymmetric information structures...
Wei, Jie; Govindan, Kannan; Li, Yongjian
2015-01-01
The optimal decision problem of a closed-loop supply chain with symmetric and asymmetric information structures is considered using game theory in this paper. The paper aims to explore how the manufacturer and the retailer make their own decisions about wholesale price, retail price, and collection...... rate under symmetric and asymmetric information conditions. Four game models are established, which allow one to examine the strategies of each firm and explore the role of the manufacturer and the retailer in four different game scenarios under symmetric and asymmetric information structures....... The optimal strategies in closed form are given under the decision scenarios with symmetric information; moreover, the first order conditions that the optimal retail price, optimal wholesale price, and optimal collection rate satisfy are given under the decision scenarios with asymmetric information...
The Impact of Price Disclosure on Dynamic Shopping Decisions
B.G.C. Dellaert (Benedict); V.Y. Golounov (Vladislav); J. Prabhu (Jaideep)
2005-01-01
textabstractA potentially powerful way to assist consumers in making dynamic shopping decisions is to disclose price information to them before they shop, for example by posting prices on the Internet. This paper addresses the differential impact of disclosing either only current, or both current
The Impact of Price Disclosure on Dynamic Shopping Decisions
B.G.C. Dellaert (Benedict); V.Y. Golounov (Vladislav); J. Prabhu (Jaideep)
2005-01-01
textabstractA potentially powerful way to assist consumers in making dynamic shopping decisions is to disclose price information to them before they shop, for example by posting prices on the Internet. This paper addresses the differential impact of disclosing either only current, or both current an
Activity Based Costing and Product Pricing Decision: the Nigerian Case
Ebipanipre Gabriel Mieseigha
2014-01-01
This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability...
On three-level problem of competitive pricing
Plyasunov, A.; Panin, A.
2016-10-01
We propose a new pricing model that are designed for the study of competitive pricing. As pricing strategies we use the uniform and discriminatory pricing. We formulate the model as a three-level quadratic programming problem with integer and boolean variables. To solve few cooperative formulations of this model we develop polynomial-time algorithms.
How Should they Affect Pricing Decisions? Difficult Comparison Effect
Angela Eliza MICU
2007-01-01
Full Text Available In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting and managers in charge of satisfying customers (marketing and sales. Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing involves an integration of costs and customer value. To achieve that integration, however, both need to let go of misleading ideas and form a common vision of what drives profitability.
Pricing Decision Support System for Generation Companies in Electricity Market
FangDebin; WangXianjia
2005-01-01
In order to meet the requirement of separating power plants from power network and that of the competition based power transaction in power market, the pricing decision support system for generation companies (GCPDSS) is built in electricity market. This paper introduces the conception of intelligent decision support system (IDSS) and puts emphasis on the systematical structural framework,work process, design principal, and fundamental function of GCPDSS. The system has the module to analyze the cost, to forecast the demand of power, to construct the pricing strategies, to manage the pricing risk, and to dispatch giving the pricing strategies.The case study illustrates that the friendly window-based user interface of the system enables the user to take full advantage of the capabilities of the system in order to make effective real-time decisions.
Rent pricing decision support mathematical model for finance leases under effective risks
Rabbani Masoud
2015-01-01
Full Text Available Nowadays, leasing has become an increasingly important and popular method for equipment acquisition. But, because of the rent pricing difficulties and some risks that affect the lessor and lessee's decision making, there are many people that still tend to buy equipment instead of lease it. In this paper we explore how risk can affect the leasing issue support mathematical model. For this purpose, we consider three types of risk; Credit risk, Transaction risk and Risk based pricing. In particular, our focus was on how to make decision about rent pricing in a leasing problem with different customers, various quality levels and different pricing methods. Finally, the mathematical model has been solved by Genetic Algorithm that is a search heuristic to optimize the problem. This algorithm was coded in MATLAB® R2012a to provide the best set of results.
Joint pricing and inventory replenishment decisions with returns and expediting
Zhu, Stuart X.
2012-01-01
We study a single-item periodic-review model for the joint pricing and inventory replenishment problem with returns and expediting. Demand in consecutive periods are independent random variables and their distributions are price sensitive. At the end of each period, after the demand is realized, a
Assorted Methods of Making of Pricing Decisions in an Enterprise
Wnorowski Henryk
2014-08-01
Full Text Available Decisions concerning price development are best visible in view of their direct impact on the market activities of the company and the general level of profitability. In every activity, the success is measured by an excess of sales revenue over the costs of used resources. In an ideal case, a determined price provides the highest margin resulting from an analysis of the sales volume, takes into consideration the customer's evaluation of the product/service, and allows to react to competitive threats and to fend off the competition's attacks. There is no single universal way to develop prices for various enterprise types, regardless of the conditions of demand, the specific character of the sector they operate in, or the competitive situation, even if we assume that the enterprise has only one goal of activity. That's why, Author recommends three price determination methods. The ways of price determination presented in this article are just the first step on the way to reach the optimal prices. The prices determined in such way, as well as product or service prices already functioning in the market, are subject to modification depending on the assumed goals, taking into consideration the character of demand for a given commodity and the behaviour of the competition.
Pricing decisions in an experimental dynamic stochastic general equilibrium economy
Noussair, C.N.; Pfajfar, D.; Zsiros, J.
2015-01-01
We construct experimental economies, populated with human subjects, with a structure based on a nonlinear version of the New Keynesian dynamic stochastic general equilibrium (DSGE) model. We analyze the behavior of firms’ pricing decisions in four different experimental economies. We consider how we
Pricing decisions in an experimental dynamic stochastic general equilibrium economy
Noussair, C.N.; Pfajfar, D.; Zsiros, J.
We construct experimental economies, populated with human subjects, with a structure based on a nonlinear version of the New Keynesian dynamic stochastic general equilibrium (DSGE) model. We analyze the behavior of firms’ pricing decisions in four different experimental economies. We consider how
Bilevel Model for Pricing and Production Planning Decision with Fuzzy Parameters
HuijunSun; ZiyouGao
2004-01-01
With the deepen of market competition, product pricing and production decision problem in many firms have become more and more important. A bilevel model is proposed to describe the pricing and production decisions with fuzzy demand and fuzzy cost parameters. The upper level is to determine the optimal price and production quantity with capacity constraints. Using this information, the lower level problem tries to structure a response (the distribution pattern of customers (or markets)) that will satisfy his demand at minimum cost. And after transforming the fuzzy numbers into the crisp value by Graded Mean Integration Representation method, the solution algorithm based on difference method is given. Finally, the application of the model and its algorithm are illustrated with a simple example.
Food prices and food shopping decisions of black women.
DiSantis, Katherine I; Grier, Sonya A; Oakes, J Michael; Kumanyika, Shiriki K
2014-06-01
Identifying food pricing strategies to encourage purchases of lower-calorie food products may be particularly important for black Americans. Black children and adults have higher than average obesity prevalence and disproportionate exposure to food marketing environments in which high calorie foods are readily available and heavily promoted. The main objective of this study was to characterize effects of price on food purchases of black female household shoppers in conjunction with other key decision attributes (calorie content/healthfulness, package size, and convenience). Factorial discrete choice experiments were conducted with 65 low- and middle-/higher-income black women. The within-subject study design assessed responses to hypothetical scenarios for purchasing frozen vegetables, bread, chips, soda, fruit drinks, chicken, and cheese. Linear models were used to estimate the effects of price, calorie level (or healthfulness for bread), package size, and convenience on the propensity to purchase items. Moderating effects of demographic and personal characteristics were assessed. Compared with a price that was 35% lower, the regular price was associated with a lesser propensity to purchase foods in all categories (β = -0.33 to -0.82 points on a 1 to 5 scale). Other attributes, primarily calorie content/healthfulness, were more influential than price for four of seven foods. The moderating variable most often associated with propensity to pay the regular versus lower price was the reported use of nutrition labels. Price reductions alone may increase purchases of certain lower-calorie or more healthful foods by black female shoppers. In other cases, effects may depend on combining price changes with nutrition education or improvements in other valued attributes.
ANTECEDENTS OF THE IMPORTANCE OF PRICE PURCHASE DECISIONS
Isabel Maria Rosa Diaz
2011-07-01
Full Text Available This paper analyses the commercial and sociodemographic antecedents of the importance of price in buyers’ decisions. The study uses ordinal regression in order to analyze the data obtained from a random sample of consumers of frequently purchased products; these consumers were surveyed in different stores. The results demonstrate that shopping enjoyment and brand loyalty have an influence over the importance of price. However, responsibility for shopping (purchase frequency does not show a significant relationship. Furthermore, some interesting socio-demographic characteristics were found in the context of the study that can be analyzed in future research
Theory of the decision/problem state
Dieterly, D. L.
1980-01-01
A theory of the decision-problem state was introduced and elaborated. Starting with the basic model of a decision-problem condition, an attempt was made to explain how a major decision-problem may consist of subsets of decision-problem conditions composing different condition sequences. In addition, the basic classical decision-tree model was modified to allow for the introduction of a series of characteristics that may be encountered in an analysis of a decision-problem state. The resulting hierarchical model reflects the unique attributes of the decision-problem state. The basic model of a decision-problem condition was used as a base to evolve a more complex model that is more representative of the decision-problem state and may be used to initiate research on decision-problem states.
Manna S.K.
2008-01-01
Full Text Available In this paper, we consider the problem of simultaneous determination of retail price and lot-size (RPLS under the assumption that the supplier offers a fixed credit period to the retailer. It is assumed that the item in stock deteriorates over time at a rate that follows a two-parameter Weibull distribution and that the price-dependent demand is represented by a constant-price-elasticity function of retail price. The RPLS decision model is developed and solved analytically. Results are illustrated with the help of a base example. Computational results show that the supplier earns more profits when the credit period is greater than the replenishment cycle length. Sensitivity analysis of the solution to changes in the value of input parameters of the base example is also discussed.
China Report, Economic Affairs Socialist Price Problems
2007-11-02
setting of prices in individual price zones had been instituted, imbalances could possibly exist in small areas within a large region. In remedying...were dards! Differences In staS^f y °5 F°°d Set Uniform ^location stan- others tendingbe liteT.l // ^ °f Jhem tendinS to be «riet and...by proportional imbalances , decline in the larger produc- tivity rate, too much social apportionment, etc. were all objective reasons for cost rises
Optimal advertising and pricing decisions for complementary products
Taleizadeh, Ata Allah; Charmchi, Masoud
2015-02-01
Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon supply chain consisting of one manufacturer and one retailer with two complementary goods. The demand of each good is influenced not only by its price but also by the price of the other product. We use two game theory approaches to model this problem; Stackelberg manufacturer and Stackelberg retailer.
Decision Problems For Convex Languages
Brzozowski, Janusz; Xu, Zhi
2008-01-01
In this paper we examine decision problems associated with various classes of convex languages, studied by Ang and Brzozowski (under the name "continuous languages''). We show that we can decide whether a given language L is prefix-, suffix-, factor-, or subword-convex in polynomial time if L is represented by a DFA, but that the problem is PSPACE-hard if L is represented by an NFA. In the case that a regular language is not convex, we prove tight upper bounds on the length of the shortest words demonstrating this fact, in terms of the number of states of an accepting DFA. Similar results are proved for some subclasses of convex languages: the prefix-, suffix-, factor-, and subword-closed languages, and the prefix-, suffix-, factor-, and subword-free languages.
On the complexity of a bundle pricing problem
Grigoriev, Alexander; Loon, van Joyce; Uetz, Marc
2011-01-01
We consider the problem of pricing items in order to maximize the revenue obtainable from a set of single minded customers. We relate the tractability of the problem to structural properties of customers’ valuations: the problem admits an efficient approximation algorithm, parameterized along the in
A multi-phase algorithm for a joint lot-sizing and pricing problem with stochastic demands
Jenny Li, Hongyan; Thorstenson, Anders
2014-01-01
item over a ﬁnite multi-period planning horizon. Thece-dependent demands. The stochastic demand is captured by the scenario analysis approach, and this leads to a multiple-stage stochastic programming problem. Given the complexity of the stochastic programming problem, it is hard to determine optimal...... prices and lot sizes simultaneously. Therefore, we decompose the joint lot-sizing and pricing problem with stochastic demands and capacity constraints into a multi-phase decision process. In each phase, we solve the associated sub-problem to optimality. The decomposed decision process corresponds...... that the multi-phase heuristic algorithm solves the example problems effectively....
Pricing Decisions of a Two-Echelon Supply Chain in Fuzzy Environment
Jie Wei
2013-01-01
Full Text Available Pricing decisions of a two-echelon supply chain with one manufacturer and duopolistic retailers in fuzzy environment are considered in this paper. The manufacturer produces a product and sells it to the two retailers, who in turn retail it to end customers. The fuzziness is associated with the customers’ demand and the manufacturing cost. The purpose of this paper is to analyze the effect of two retailers’ different pricing strategies on the optimal pricing decisions of the manufacturer and the two retailers themselves in MS Game scenario. As a reference model, the centralized decision scenario is also considered. The closed-form optimal pricing decisions of the manufacturer and the two retailers are derived in the above decision scenarios. Some insights into how pricing decisions vary with decision scenarios and the two retailers’ pricing strategies in fuzzy environment are also investigated, which can serve as the basis for empirical study in the future.
Pricing Decisions of Competing Tobacco Enterprises with Online Channel
Rong Zhang
2015-01-01
Full Text Available According to the new measurement of launching online distribution channels of tobacco enterprises in China, this paper investigates the tobacco firm’s pricing decisions on the supply chain which consists of two manufacturers and one retailer under three dual-channel structures. Three dual-channel structures include no online channel, only one online channel by one manufacture, and two online channels by two manufacturers. We apply the Stackelberg game to analyze the equilibrium pricing strategies under different structures and try to explore the necessity and advantages of launching online sales channels. The results demonstrate that the substitutability of a product has significant impact on introducing online sales channels, and the online dual-channel structure could result in less profit for manufacturers compared to the traditional retail channel structure; and thus, a dual-channel structure with online sales is not the best strategy for traditional manufacturers. Moreover, when the product is less substitutable, the effect of the tobacco control on the online sales channel is inferior to the traditional channels and vice versa.
Price Intransparency, Consumer Decision Making and European Consumer Law
W.H. van Boom (Willem)
2011-01-01
textabstractPrice comparison is a basic element of competition. For comparison to work, at least prices need to be transparent. Moreover, price is usually a focal point in consumer thinking and deciding on transactions. Hence, obfuscating prices can be detrimental to consumers. Therefore, it is vita
Decision of numerical problems with symbolic methods
I. S. Kashirsky
2010-01-01
Full Text Available Modern methods for numerical decision of linear systems guarantee successful results only for good systems. Decision of bad systems (bad conditional, singular is already problem. This paper describes using symbol methods for decision of bad conditional and singular systems.
Optimal decisions and comparison of VMI and CPFR under price-sensitive uncertain demand
Yasaman Kazemi
2013-06-01
Full Text Available Purpose: The purpose of this study is to compare the performance of two advanced supply chain coordination mechanisms, Vendor Managed Inventory (VMI and Collaborative Planning Forecasting and Replenishment (CPFR, under a price-sensitive uncertain demand environment, and to make the optimal decisions on retail price and order quantity for both mechanisms. Design/ methodology/ approach: Analytical models are first applied to formulate a profit maximization problem; furthermore, by applying simulation optimization solution procedures, the optimal decisions and performance comparisons are accomplished. Findings: The results of the case study supported the widely held view that more advanced coordination mechanisms yield greater supply chain profit than less advanced ones. Information sharing does not only increase the supply chain profit, but also is required for the coordination mechanisms to achieve improved performance. Research limitations/implications: This study considers a single vendor and a single retailer in order to simplify the supply chain structure for modeling. Practical implications: Knowledge obtained from this study about the conditions appropriate for each specific coordination mechanism and the exact functions of coordination programs is critical to managerial decisions for industry practitioners who may apply the coordination mechanisms considered. Originality/value: This study includes the production cost in Economic Order Quantity (EOQ equations and combines it with price-sensitive demand under stochastic settings while comparing VMI and CPFR supply chain mechanisms and maximizing the total profit. Although many studies have worked on information sharing within the supply chain, determining the performance measures when the demand is price-sensitive and stochastic was not reported by researchers in the past literature.
Bandwidth allocation and pricing problem for a duopoly market
You Peng-Sheng
2011-01-01
Full Text Available This research discusses the Internet service provider (ISP bandwidth allocation and pricing problems for a duopoly bandwidth market with two competitive ISPs. According to the contracts between Internet subscribers and ISPs, Internet subscribers can enjoy their services up to their contracted bandwidth limits. However, in reality, many subscribers may experience the facts that their on-line requests are denied or their connection speeds are far below their contracted speed limits. One of the reasons is that ISPs accept too many subscribers as their subscribers. To avoid this problem, ISPs can set limits for their subscribers to enhance their service qualities. This paper develops constrained nonlinear programming to deal with this problem for two competitive ISPs. The condition for reaching the equilibrium between the two competitive firms is derived. The market equilibrium price and bandwidth resource allocations are derived as closed form solutions.
Yancong Zhou
2016-01-01
Full Text Available The life spans of durable goods are longer than their warranty periods. To satisfy the service demand of spare parts and keep the market competition advantage, enterprises have to maintain the longer inventory planning of spare parts. However, how to obtain a valid number of spare parts is difficult for those enterprises. In this paper, we consider a spare-part inventory problem, where the inventory can be replenished by two ways including the final production order and the remanufacturing way. Especially for the remanufacturing way, we consider the acquisition management problem of used products concerning an acquisition pricing decision. In a multiperiod setting, we formulate the problem into a dynamic optimization problem, where the system decisions include the final production order and acquisition price of used products at each period. By stochastic dynamic programming, we obtain the optimal policy of the acquisition pricing at each period and give the optimal policy structure of the optimization problem at the first period. Then, a recursion algorithm is designed to calculate the optimal decisions and the critical points in the policy. Finally, the numerical analyses show the effects of demand information and customer’s sensitive degree on the related decisions and the optimal cost.
Tsourougiannis, Dimitrios
2017-01-01
Background: Cost-containment initiatives are re-shaping the pharmaceutical business environment and affecting market access as well as pricing and reimbursement decisions. Effective price management procedures are too complex to accomplish manually. Prior to February 2013, price management within Astellas Pharma Europe Ltd was done manually using an Excel database. The system was labour intensive, slow to update, and prone to error. An innovative web-based pricing information management system was developed to address the shortcomings of the previous system. Development: A secure web-based system for submitting, reviewing and approving pricing requests was designed to: track all pricing applications and approval status; update approved pricing information automatically; provide fixed and customizable reports of pricing information; collect pricing and reimbursement rules from each country; validate pricing and reimbursement rules monthly. Several sequential phases of development emphasized planning, time schedules, target dates, budgets and implementation of the entire system. A test system was used to pilot the electronic (e)-pricing system with three affiliates (four users) in February 2013. Outcomes: The web-based system was introduced in March 2013, currently has about 227 active users globally and comprises more than 1000 presentations of 150 products. The overall benefits of switching from a manual to an e-pricing system were immediate and highly visible in terms of efficiency, transparency, reliability and compliance. Conclusions: The e-pricing system has improved the efficiency, reliability, compliance, transparency and ease of access to multinational drug pricing and approval information.
Tsourougiannis, Dimitrios
2017-01-01
ABSTRACT Background: Cost-containment initiatives are re-shaping the pharmaceutical business environment and affecting market access as well as pricing and reimbursement decisions. Effective price management procedures are too complex to accomplish manually. Prior to February 2013, price management within Astellas Pharma Europe Ltd was done manually using an Excel database. The system was labour intensive, slow to update, and prone to error. An innovative web-based pricing information management system was developed to address the shortcomings of the previous system. Development: A secure web-based system for submitting, reviewing and approving pricing requests was designed to: track all pricing applications and approval status; update approved pricing information automatically; provide fixed and customizable reports of pricing information; collect pricing and reimbursement rules from each country; validate pricing and reimbursement rules monthly. Several sequential phases of development emphasized planning, time schedules, target dates, budgets and implementation of the entire system. A test system was used to pilot the electronic (e)-pricing system with three affiliates (four users) in February 2013. Outcomes: The web-based system was introduced in March 2013, currently has about 227 active users globally and comprises more than 1000 presentations of 150 products. The overall benefits of switching from a manual to an e-pricing system were immediate and highly visible in terms of efficiency, transparency, reliability and compliance. Conclusions: The e-pricing system has improved the efficiency, reliability, compliance, transparency and ease of access to multinational drug pricing and approval information. PMID:28740622
Scrap Value Functions in Dynamic Decision Problems
Ikefuji, M.; Laeven, R.J.A.; Magnus, J.R.; Muris, C.H.M.
2010-01-01
We introduce an accurate, easily implementable, and fast algorithm to compute optimal decisions in discrete-time long-horizon welfaremaximizing problems. The algorithm is useful when interest is only in the decisions up to period T, where T is small. It relies on a flexible parametrization of the re
The menu-setting problem and subsidized prices: drug formulary illustration.
Olmstead, T; Zeckhauser, R
1999-10-01
The menu-setting problem (MSP) determines the goods and services an institution offers and the prices charged. It appears widely in health care, from choosing the services an insurance arrangement offers, to selecting the health plans an employer proffers. The challenge arises because purchases are subsidized, and consumers (or their physician agents) may make cost-ineffective choices. The intuitively comprehensible MSP model--readily solved by computer using actual data--helps structure thinking and support decision making about such problems. The analysis uses drug formularies--lists of approved drugs in a plan or institution--to illustrate the framework.
IMOLEAYO OBIGBEMI
2010-01-01
Full Text Available Pricing decision has been a crucial decision made by all business enterprises at all levels and has posed a great challenge for Small and Medium Enterprises in Nigeria. This research work treats the role of competition on the pricing decision of an organisation and the attainment of the Organisational Objective, a study of SMEs in Nigeria. The methodology adopted was the survey and empirical approach, with the administration of questionnaires to some SMEs in Nigeria, evaluating the effect competition has on pricing decision (change in product price and its overall effect on the attainment of organizational objective (profitability. Primary and secondary sources were used in collecting data. It was discovered that competition plays a major role in pricing decision and that there is a relationship between pricing decision and the attainment of organizational objective. Recommendations were made for the close monitoring of SMEs and that SMEs should employ the service of price experts when making pricing decisions.
Factors Influencing Pricing Decision: Evidence from Non-Financial Firms in Nigeria
Luqman Olawale
2017-02-01
Full Text Available This study examines the significant factors influencing pricing decision in Nigeria. The study is based on the appraisal of the factors that influence pricing decision using 100 non-financial companies listed on the Nigeria Stock Exchange (NSE in 2013. The cross sectional data was obtained from annual reports of the sampled firms which were analyzed based on OrdinaryRegression model. The results revealed that cost of sales has an insignificant positive effect on pricing policy, while company’s objective and consumer perception has significant positive relationship on pricing policy. On the external determinants, market demand and availability of close substitute has a significant negative effect on pricing policy while macroeconomic trend and market segment has insignificant negative effect on pricing policy. This study therefore suggests among others that, effort should be made on reducing cost of production in order to maximize profit.
A review on water pricing problem for sustainable water resource
Hek, Tan Kim; Ramli, Mohammad Fadzli; Iryanto
2017-05-01
A report that presented at the World Forum II at The Hague in March 2000, said that it would be water crisis around the world and some countries will be lack of water in 2025, as a result of global studies. Inefficient using of water and considering water as free goods which means it can be used as much as we want without any lost. Thus, it causes wasteful consumption and low public awareness in using water without effort to preserve and conserve the water resources. In addition, the excessive exploitation of ground water for industrial facilities also leads to declining of available freshwater. Therefore, this paper reviews some problems arise all over the world regarding to improper and improving management, policies and methods to determine the optimum model of freshwater price in order to avoid its wasteful thus ensuring its sustainability. In this paper, we also proposed a preliminary model of water pricing represents a case of Medan, North Sumatera, Indonesia.
Integration of capacity, pricing, and lead-time decisions in a decentralized supply chain
Zhu, Stuart X.
We consider a decentralized supply chain consisting of a supplier and a retailer facing price- and lead-time-sensitive demand. The decision process is modelled by a Stackelberg game where the supplier, as a leader, determines the capacity and the wholesale price, and the retailer, as a follower,
Integration of capacity, pricing, and lead-time decisions in a decentralized supply chain
Zhu, Stuart X.
2015-01-01
We consider a decentralized supply chain consisting of a supplier and a retailer facing price- and lead-time-sensitive demand. The decision process is modelled by a Stackelberg game where the supplier, as a leader, determines the capacity and the wholesale price, and the retailer, as a follower, det
Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain
Wang, Yongzhao
2017-01-01
This paper considers the optimal decisions of pricing and warranty level for substitutable products in a fuzzy supply chain environment, where the consumer demands, manufacturing costs, and warranty...
Making objective decisions in mechanical engineering problems
Raicu, A.; Oanta, E.; Sabau, A.
2017-08-01
Decision making process has a great influence in the development of a given project, the goal being to select an optimal choice in a given context. Because of its great importance, the decision making was studied using various science methods, finally being conceived the game theory that is considered the background for the science of logical decision making in various fields. The paper presents some basic ideas regarding the game theory in order to offer the necessary information to understand the multiple-criteria decision making (MCDM) problems in engineering. The solution is to transform the multiple-criteria problem in a one-criterion decision problem, using the notion of utility, together with the weighting sum model or the weighting product model. The weighted importance of the criteria is computed using the so-called Step method applied to a relation of preferences between the criteria. Two relevant examples from engineering are also presented. The future directions of research consist of the use of other types of criteria, the development of computer based instruments for decision making general problems and to conceive a software module based on expert system principles to be included in the Wiki software applications for polymeric materials that are already operational.
73 Activity Based Costing and Product Pricing Decision: the Nigerian Case
Ebipanipre Gabriel Mieseigha
2014-01-01
This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved ...
Decision Analysis of Advertising and Price for Bilateral Competing Supply Chain
Cheng-Tang Zhang
2013-01-01
Full Text Available The outcome of centralized equilibrium, prisoner's dilemma equilibrium, and decentralized equilibrium under different decision models has been provided with regards to bilateral competing supply chain system, either side of which is composed of one manufacturer and one retailer. Theoretical analysis indicates a positive correlation between price and one's own advertising investment level and a negative correlation between price and the opponent's advertising investment level. Through analysis of numerical examples, the results reveal a first mover advantage that leads to prisoner's dilemma in the system as well as the impact that price and advertising competition intensity has on the supply chain's choice of decision model.
Pricing and Capacity Planning Problems in Energy Transmission Networks
Villumsen, Jonas Christoffer
Efficient use of energy is an increasingly important topic. Environmental and climate concerns as well as concerns for security of supply has made renewable energy sources a viable alternative to traditional energy sources. However, the intermittent nature of for instance wind and solar energy...... necessitates a radical change in the way we plan and operate energy systems. Another paradigm change which began in the 1990’s for electricity systems is that of deregulation. This has led to a variety of different market structures implemented across the world. In this thesis we discuss capacity planning...... and transmission pricing problems in energy transmission networks. Although the modelling framework applies to energy networks in general, most of the applications discussed concern the transmission of electricity. A number of the problems presented involves transmission switching, which allows the operator...
Search versus Decision for Election Manipulation Problems
Hemaspaandra, Edith; Hemaspaandra, Lane A.; Menton, Curtis
2012-01-01
Most theoretical definitions about the complexity of manipulating elections focus on the decision problem of recognizing which instances can be successfully manipulated, rather than the search problem of finding the successful manipulative actions. Since the latter is a far more natural goal for manipulators, that definitional focus may be misguided if these two complexities can differ. Our main result is that they probably do differ: If integer factoring is hard, then for election manipulati...
Agency Problems in Political Decision Making
P.T. Wrasai (Phongthorn)
2005-01-01
textabstractDue to a lack of time and expertise, policy makers often rely on others, such as bureaucrats, experts, or advisers, when policy decisions have to be made. A nontrivial problem is that those who possess information have a vested interest in the policy outcome; this gives them an incenti
Vodafone Transfer Pricing Decision: A Mistake of Judgment
Sanghavi, D.
2015-01-01
On 10 October 2014, the Bombay High Court exercised its non-appellate jurisdiction to quash a transfer pricing claim in the case of Vodafone, in which the tax authorities sought to apply the arm’s length principle to equity financing transactions. This interpretation has been accepted by the Governm
Using the Price Elasticity of Demand in Educational Decision Making.
Smith, Joseph D.; Moracco, Judy N.
1984-01-01
Describes a study and methods used by Navy Campus to choose a funding arrangement that would make the best use of the money available for voluntary educational purposes. Discusses modifying the economic concept of price elasticity to the interests of educationally oriented audiences. (JOW)
Using the Price Elasticity of Demand in Educational Decision Making.
Smith, Joseph D.; Moracco, Judy N.
1984-01-01
Describes a study and methods used by Navy Campus to choose a funding arrangement that would make the best use of the money available for voluntary educational purposes. Discusses modifying the economic concept of price elasticity to the interests of educationally oriented audiences. (JOW)
Joint Inventory, Pricing, and Advertising Decisions with Surplus and Stockout Loss Aversions
Bing-Bing Cao
2016-01-01
Full Text Available The newsvendor models considering decision-makers’ behavioral factors remain a fruitful research area in operation management field in past decade. In this paper, we further extend the current literatures to look into joint inventory, pricing, and advertising decisions considering loss aversion effects under the newsvendor setting. The purpose is to explore how the loss aversions affect the optimal policy of order quantity, price, and advertising effort level. We present an integrated utility model to measure both economic payoff and loss aversion utility of the newsvendor, where surplus loss aversion and stockout loss aversion are first separately defined and quantified. Then, we analyze the optimal solution conditions of the integrated model under exogenous and endogenous price cases, respectively. Under exogenous price case, we find that the uniquely optimal policy exists and is presented in the closed form. Under endogenous price case, the optimal policy is determined under mild conditions; we also provide the solutions when order quantity factor or advertising effort level is fixed in this case. In addition, the sensitivity analysis shows that the loss aversions affect the optimal decisions of order quantity, price, and advertising effort level in a systematic way.
A Branch-and-Price Algorithm for the Capacitated Arc Routing Problem with Stochastic Demands
Christiansen, Christian Holk; Lysgaard, Jens; Wøhlk, Sanne
2009-01-01
We address the Capacitated Arc Routing Problem with Stochastic Demands (CARPSD), which we formulate as a Set Partitioning Problem. The CARPSD is solved by a Branch-and-Price algorithm, which we apply without graph transformation. The demand's stochastic nature is incorporated into the pricing...... problem. Computational results are reported....
Beheshti, Rahmatollah; Igusa, Takeru; Jones-Smith, Jessica
2016-11-01
The price of food has long been considered one of the major factors that affects food choices. However, the price metric (e.g., the price of food per calorie or the price of food per gram) that individuals predominantly use when making food choices is unclear. Understanding which price metric is used is especially important for studying individuals with severe budget constraints because food price then becomes even more important in food choice. We assessed which price metric is used by low-income individuals in deciding what to eat. With the use of data from NHANES and the USDA Food and Nutrient Database for Dietary Studies, we created an agent-based model that simulated an environment representing the US population, wherein individuals were modeled as agents with a specific weight, age, and income. In our model, agents made dietary food choices while meeting their budget limits with the use of 1 of 3 different metrics for decision making: energy cost (price per calorie), unit price (price per gram), and serving price (price per serving). The food consumption patterns generated by our model were compared to 3 independent data sets. The food choice behaviors observed in 2 of the data sets were found to be closest to the simulated dietary patterns generated by the price per calorie metric. The behaviors observed in the third data set were equidistant from the patterns generated by price per calorie and price per serving metrics, whereas results generated by the price per gram metric were further away. Our simulations suggest that dietary food choice based on price per calorie best matches actual consumption patterns and may therefore be the most salient price metric for low-income populations. © 2016 American Society for Nutrition.
Wei Li
2013-03-01
Full Text Available Purpose: With the rapid development of economy and the support of government policy, the development of the logistics industry has become a new economic growth engine. As we all know, the reasonable price of logistics service is the most critical factor for logistics enterprises to win market share and make profit. At the same time, the service level is one of the most important factors which will influence the size of the market share. Therefore, this paper constructs a pricing model considering a situation that the logistics service level affects the market demand. This model helps the enterprises to make scientific decisions.Methodology: To achieve this objective, this paper constructs the TPL service and the pricing decision models based on the game theory.Findings: The conclusion shows that under the situation of independent decision-making, the enterprise which has strong ability of logistics service does not necessarily have a competitive advantage, while pricing equilibrium under the situation of joint decision-making, not only make both sides get more income, but also be conducive to improve the level of service.Research limitations: In this research, there are some assumptions that might affect the accuracy the model such as there are only two TPL enterprises to participate in, and considerations are taken under the condition of complete information environment. These assumptions can be relaxed in the future work.Originality: In this research, logistics service level is taken account into the areas of logistics service pricing, which makes the models more practical and more perfect. And this paper constructs game models based on game theory to make up the limitations of traditional pricing theories in logistics service pricing.
Pricing postselection: the cost of indecision in decision theory
Combes, Joshua
2015-01-01
Postselection is the process of discarding outcomes from statistical trials that are not the event one desires. Postselection can be useful in many applications where the cost of getting the wrong event is implicitly high. However, unless this cost is specified exactly, one might conclude that discarding all data is optimal. Here we analyze the optimal decision rules and quantum measurements in a decision theoretic setting where a pre-specified cost is assigned to discarding data. We also relate our formulation to previous approaches which focus on minimizing the probability of indecision.
SUPPLY CHAIN DECISION-MAKING AND COORDINATION UNDER PRICE-DEPENDENT DEMAND
Guangming HUANG; Lu LIU
2006-01-01
This paper studies the decision-making and coordination of supply chain (SC) considering the effect of price-dependent demand. By assuming demand decreases as the price increases, we analyse the impacts of the dependence on the SC in three different models: decentralized without coordination,centralized coordination and decentralized with coordination by revenue sharing contract. The existence of the best solution in the different models is proved, and the performance of revenue sharing coordination SC is similar to the centralized one. We find that the more evidently the price affects the demand, the more revenue sharing contract improves the performance of SC. The dependence affects the decision-making and the parameter setting of revenue sharing contract is also found.
Price Discrepancy Between Sellers and Buyers When Making Decisions for the Self and Others.
Zhang, Ziyuan; Zhang, Baojun; Li, Zhongquan
2016-06-01
In daily life, people make decisions not only for themselves but also on behalf of others. There may be differences in terms of the endowment effect when making decisions in these two situations. In Study 1, this question was investigated with an existing dataset exploring the traditional endowment effect, in which 86 students (M age = 20.8 years, SD = 5.0) at Harvard University were asked to make a decision on selling or buying a coffee mug for themselves or for others as brokers. When making decisions for the self, the average price demanded by sellers was much higher than that offered by buyers; while making decisions for others, the price discrepancy disappeared. In Study 2, a similar study was conducted with a sample of 42 Chinese university students (M age = 22.3 years, SD = 2.5), and a similar pattern of results was obtained. Further analysis indicated that when making decisions for others, only buyers increased their valuations, therefore mitigating the seller-buyer price discrepancy. Finally, the findings were interpreted from the perspective of Construal Level Theory.
The impact of climate and price risks on agricultural land use and crop management decisions
Lehmann, N.; Finger, R.
2013-01-01
This article aims to investigate the impacts of climate change and of lower and more volatile crop price levels as currently observed in the European Union (EU) on optimal management decisions, average income and income risks in crop production in Western Switzerland. To this end, a bioeconomic
POUZO; Demian
2009-01-01
This paper considers the estimation of an unknown function h that can be characterized as a solution to a nonlinear operator equation mapping between two infinite dimensional Hilbert spaces. The nonlinear operator is unknown but can be consistently estimated, and its inverse is discontinuous, rendering the problem ill-posed. We establish the consistency for the class of estimators that are regularized using general lower semicompact penalty functions. We derive the optimal convergence rates of the estimators under the Hilbert scale norms. We apply our results to two important problems in economics and finance: (1) estimating the parameters of the pricing kernel of defaultable bonds; (2) recovering the volatility surface implied by option prices allowing for measurement error in the option prices and numerical error in the computation of the operator.
CHEN XiaoHong; POUZO Demian
2009-01-01
This paper considers the estimation of an unknown function h that can be characterized as a solution to a nonlinear operator equation mapping between two infinite dimensional Hilbert spaces.The nonlinear operator is unknown but can be consistently estimated, and its inverse is discontinuous,rendering the problem ill-posed. We establish the consistency for the class of estimators that are regularized using general lower semicompact penalty functions. We derive the optimal convergence rates of the estimators under the Hilbert scale norms. We apply our results to two important problems in economics and finance: (1) estimating the parameters of the pricing kernel of defaultable bonds; (2)recovering the volatility surface implied by option prices allowing for measurement error in the option prices and numerical error in the computation of the operator.
[Utilities: a solution of a decision problem?].
Koller, Michael; Ohmann, Christian; Lorenz, Wilfried
2008-01-01
Utility is a concept that originates from utilitarianism, a highly influential philosophical school in the Anglo-American world. The cornerstone of utilitarianism is the principle of maximum happiness or utility. In the medical sciences, this utility approach has been adopted and developed within the field of medical decision making. On an operational level, utility is the evaluation of a health state or an outcome on a one-dimensional scale ranging from 0 (death) to 1 (perfect health). By adding the concept of expectancy, the graphic representation of both concepts in a decision tree results in the specification of expected utilities and helps to resolve complex medical decision problems. Criticism of the utility approach relates to the rational perspective on humans (which is rejected by a considerable fraction of research in psychology) and to the artificial methods used in the evaluation of utility, such as Standard Gamble or Time Trade Off. These may well be the reason why the utility approach has never been accepted in Germany. Nevertheless, innovative concepts for defining goals in health care are urgently required, as the current debate in Germany on "Nutzen" (interestingly translated as 'benefit' instead of as 'utility') and integrated outcome models indicates. It remains to be seen whether this discussion will lead to a re-evaluation of the utility approach.
IMOLEAYO OBIGBEMI
2010-01-01
Pricing decision has been a crucial decision made by all business enterprises at all levels and has posed a great challenge for Small and Medium Enterprises in Nigeria. This research work treats the role of competition on the pricing decision of an organisation and the attainment of the Organisational Objective, a study of SMEs in Nigeria. The methodology adopted was the survey and empirical approach, with the administration of questionnaires to some SMEs in Nigeria, evaluating the effect co...
Abolfazl Kazemi
2016-02-01
Full Text Available Coordinating the supply chain is among the most important subjects that is extensively addressed in the related literature. If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed to engage in cooperative and non-cooperative games. The current study aims to coordinate a two-level supply chain consisting of a manufacturer and a retailer. This will be achieved using cooperative advertisement along with pricing decisions such that the manufacturer offers a price discount to the retailer and the demand is affected by pricing and advertisement. Cooperative advertisement is a coordinated effort made by all the members of the supply chain to increase the customer demand, in which the retailer does the local advertisement and the manufacturer pays for a portion or all the costs of the retailer advertisement. We consider two models for manufacturer-retailer relation using the game theory: the manufacturer-Stackelberg and the retailer-Stackelberg games with asymmetric power distribution.
OpenTide China’s Pricing Decision-making Support System 2.0 for Digital Industry in China
Yeisun Lee; Wonsang Youn; Jongwook Lim; Yongsik Nam; Youngsik Kwak
2010-01-01
The purpose of this research is to develop a comprehensive pricing decision-making support system that marketers in digital industry can use to set price level and quantity for digital products including mobile phone, TV, computer, mp3 player and monitor. TheOpenTide China’s pricing Decision-making Support System (OTC’s PDSS) consists of the price response function for each product, the promotion response function, the cost function, mixture modeling, Kane’s regency modeling and Brian’s compe...
Boiteux's solution to the shifting-peak problem and the equilibrium price density in continuous time
Horsley, A.; Wrobel, A.J.
2002-01-01
Bewley's condition on production sets, imposed to ensure the existence of an equilibrium price density when L∞ is the commodity space, is weakened to allow applications to continuous-time problems, and especially to peak-load pricing when the users' utility and production functions are Mackey contin
Structuring and assessing large and complex decision problems using MCDA
Barfod, Michael Bruhn
This paper presents an approach for the structuring and assessing of large and complex decision problems using multi-criteria decision analysis (MCDA). The MCDA problem is structured in a decision tree and assessed using the REMBRANDT technique featuring a procedure for limiting the number of pair...
The two-model problem in rational decision making
Boumans, Marcel
2011-01-01
A model of a decision problem frames that problem in three dimensions: sample space, target probability and information structure. Each specific model imposes a specific rational decision. As a result, different models may impose different, even contradictory, rational decisions, creating choice ‘an
The Price Normalization Problem in Imperfect Competition and the Objective of the Firm
Dierker, Egbert; Grodal, Birgit
of the shareholders. This problem is overcome by relating the profits of a firm to the aggregate demand of its shareholders. We propose a definition of the objective of a firm, called maximization of shareholders' real wealth, which does not depend on any price normalizaion. Real wealth maxima are shown to exist......General equilibrium models of oligopolistic competition give rise to relative prices only without determining the price level. It is well known that the choice of a numéraire or, more generally, of a normalization rule converting relative prices into absolute prices entails drastic consequences...... for the Nash equilibria. In this paper we show that, given a firm has chosen a particular profit function as its objective, profit maximization can be expressed in such a way that it depends on relative prices only. However, the choice of such an objective function need not be in the interest...
Joint Decisions on Production and Pricing with Strategic Consumers for Green Crowdfunding Products.
Chen, Yuting; Zhang, Rong; Liu, Bin
2017-09-20
Green crowdfunding is developing as a novel and popular transaction method, which can largely improve the efficiency of raising initial funds and selling innovative green products or services. In this paper, we explore the creator's joint decisions regarding green crowdfunding products of different quality levels that can sufficiently satisfy consumer preferences. Firstly, considering the characteristics of a green crowdfunding product, we present four pricing strategies when substitutes exist. Then we propose the optimal pricing strategies to maximize the total profit for the creator under different circumstances, facing strategic and myopic consumers. Finally, for the heterogeneity of consumer valuations, we compare the total profits of the four pricing strategies under different values of the substitution coefficient to obtain the optimal pricing and product strategies under the coexistence of strategic and myopic consumers. According to the result, we find that when the fraction of high-type consumers and the gap between high and low valuations is big, or when they are both small, traditional single pricing shows its benefit. However, when the green crowdfunding products are better than their substitute, a line of green products is more likely to be optimal.
OpenTide China’s Pricing Decision-making Support System 2.0 for Digital Industry in China
Yeisun Lee
2010-03-01
Full Text Available The purpose of this research is to develop a comprehensive pricing decision-making support system that marketers in digital industry can use to set price level and quantity for digital products including mobile phone, TV, computer, mp3 player and monitor. TheOpenTide China’s pricing Decision-making Support System (OTC’s PDSS consists of the price response function for each product, the promotion response function, the cost function, mixture modeling, Kane’s regency modeling and Brian’s competitive algorithm. Then we have applied the OTC’s PDSS to the digital industry and yielded the profit maximization price point, revenue maximization price point, and the predicted quantity level for each week for each product category.
Branch and price for the time-dependent vehicle routing problem with time windows
Dabia, Said; Van Woensel, Tom; De Kok, Ton
2013-01-01
solution methods to the DM-TDVRPTW are based on (meta-)heuristics. The decomposition of an arc-based formulation leads to a setpartitioning problem as the master problem, and a time-dependent shortest path problem with resource constraints as the pricing problem. The master problem is solved by means...... of column generation, and a tailored labeling algorithm is used to solve the pricing problem. We introduce new dominance criteria that allow more label dominance. For our numerical results, we modified Solomon's data sets by adding time dependency. Our algorithm is able to solve about 63% of the instances......This paper presents a branch-and-price algorithm for the time-dependent vehicle routing problem with time windows (TDVRPTW). We capture road congestion by considering time-dependent travel times, i.e., depending on the departure time to a customer, a different travel time is incurred. We consider...
A branch-and-cut-and-price algorithm for the mixed capacitated general routing problem
Bach, Lukas; Wøhlk, Sanne; Lysgaard, Jens
2016-01-01
In this paper, we consider the Mixed Capacitated General Routing Problem which is a combination of the Capacitated Vehicle Routing Problem and the Capacitated Arc Routing Problem. The problem is also known as the Node, Edge, and Arc Routing Problem. We propose a Branch-and-Cut-and-Price algorithm...... for obtaining optimal solutions to the problem and present computational results based on a set of standard benchmark instances....
ALTERNATE PRICING STRATEGIES IN CONSTRUCTION
Krishna Mochtar
2000-01-01
Full Text Available Recent research findings on pricing strategies both in general and in construction are reviewed and explored. First%2C pricing strategy in general%2C mostly in the manufacturing industry%2C is reviewed. It includes the concepts of pricing strategy%2C predatory pricing%2C price wars%2C and price policy development. Second%2C pricing strategy in construction is explored. It includes various pricing models for bid price determination%2C such as the Friedman-Gates models%2C expected utility models%2C risk-pricing model%2C and the crew-day%2C multiple regression%2C and fuzzy-set pricing models. In conclusion%2C pricing strategies in construction are still predominantly based on a cost-based approach. More recent models try to close the gap between the models and the real life conditions of a bidder%5C%27s decision-making process. It appears that there are more problems in cost-based pricing as opposed to market-based pricing. Consequently%2C it is highly recommended that%2C alternative pricing approach such as that are closer to the proposed market-based pricing model need to be explored and developed for use in the construction industry. Abstract in Bahasa Indonesia : Pricing+strategy%2C+cost-based+pricing%2C+market-based+pricing.
A branch-and-price algorithm for the long-term home care scheduling problem
Gamst, Mette; Jensen, Thomas Sejr
2012-01-01
propose a branchand-price algorithm for the long-term home care scheduling problem. The pricing problem generates a one-day plan for an employee, and the master problem merges the plans with respect to regularity constraints. The method is capable of generating plans with up to 44 visits during one week.......In several countries, home care is provided for certain citizens living at home. The long-term home care scheduling problem is to generate work plans such that a high quality of service is maintained, the work hours of the employees are respected, and the overall cost is kept as low as possible. We...
Mapping the Domain of Career Decision Problems.
Kelly, Kevin R.; Lee, Wei-Chien
2002-01-01
Factor analysis of data from the Career Decision Scale, Career Factors Inventory, and Career Decision Difficulties Questionnaire for 434 undecided college students resulted in six factors: lack of information, need for information, trait indecision, disagreement, identity diffusion, and choice anxiety. Cluster analysis yielded three clusters:…
73 Activity Based Costing and Product Pricing Decision: the Nigerian Case
Ebipanipre Gabriel Mieseigha
2014-06-01
Full Text Available This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability and cost control can be achieved by implementing activity based costing approach by manufacturing firms. The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately. Thus, it was recommended amongst others that activity based costing need to be practiced, maintained and implemented by manufacturing firms since it has a broad range of uses for a wide variety of company functions and operations in the area of process analysis, strategy support, time-based accounting, monitoring wastage, as well as quality and productivity management.
THE APPLICATION OF MONTE CARLO SIMULATION FOR A DECISION PROBLEM
Çiğdem ALABAŞ
2001-01-01
Full Text Available The ultimate goal of the standard decision tree approach is to calculate the expected value of a selected performance measure. In the real-world situations, the decision problems become very complex as the uncertainty factors increase. In such cases, decision analysis using standard decision tree approach is not useful. One way of overcoming this difficulty is the Monte Carlo simulation. In this study, a Monte Carlo simulation model is developed for a complex problem and statistical analysis is performed to make the best decision.
Locational Pricing to Mitigate Voltage Problems Caused by High PV Penetration
Sam Weckx
2015-05-01
Full Text Available In this paper, a locational marginal pricing algorithm is proposed to control the voltage in unbalanced distribution grids. The increasing amount of photovoltaic (PV generation installed in the grid may cause the voltage to rise to unacceptable levels during periods of low consumption. With locational prices, the distribution system operator can steer the reactive power consumption and active power curtailment of PV panels to guarantee a safe network operation. Flexible loads also respond to these prices. A distributed gradient algorithm automatically defines the locational prices that avoid voltage problems. Using these locational prices results in a minimum cost for the distribution operator to control the voltage. Locational prices can differ between the three phases in unbalanced grids. This is caused by a higher consumption or production in one of the phases compared to the other phases and provides the opportunity for arbitrage, where power is transferred from a phase with a low price to a phase with a high price. The effect of arbitrage is analyzed. The proposed algorithm is applied to an existing three-phase four-wire radial grid. Several simulations with realistic data are performed.
Jie Gao
2016-01-01
Full Text Available The dual-channel closed-loop supply chain (CLSC which is composed of one manufacturer and one retailer under uncertain demand of an indirect channel is constructed. In this paper, we establish three pricing models under decentralized decision making, namely, the Nash game between the manufacturer and the retailer, the manufacturer-Stackelberg game, and the retailer-Stackelberg game, to investigate pricing decisions of the CLSC in which the manufacturer uses the direct channel and indirect channel to sell products and entrusts the retailer to collect the used products. We numerically analyze the impact of customer acceptance of the direct channel (θ on pricing decisions and excepted profits of the CLSC. The results show that when the variable θ changes in a certain range, the wholesale price, retail price, and expected profits of the retailer all decrease when θ increases, while the direct online sales price and manufacturer’s expected profits in the retailer-Stackelberg game all increase when θ increases. However, the optimal recycling transfer price and optimal acquisition price of used product are unaffected by θ.
Common ground, complex problems and decision making
Beers, P.J.; Boshuizen, H.P.A.; Kirschner, P.A.; Gijselaers, W.H.
2006-01-01
Organisations increasingly have to deal with complex problems. They often use multidisciplinary teams to cope with such problems where different team members have different perspectives on the problem, different individual knowledge and skills, and different approaches on how to solve the problem. I
The Students Decision Making in Solving Discount Problem
Abdillah; Nusantara, Toto; Subanji; Susanto, Hery; Abadyo
2016-01-01
This research is reviewing students' process of decision making intuitively, analytically, and interactively. The research done by using discount problem which specially created to explore student's intuition, analytically, and interactively. In solving discount problems, researcher exploring student's decision in determining their attitude which…
Qinqin Li
2014-01-01
Full Text Available This paper investigates optimal price and quality decisions of a manufacturer-retailer supply chain under demand uncertainty, in which players are both risk-averse decision makers. The manufacturer determines the wholesale price and quality of the product, and the retailer determines the retail price. By means of game theory, we employ the constant absolute risk aversion (CARA function to analyze two different supply chain structures, that is, manufacturer Stackelberg model (MS and retailer Stackelberg model (RS. We then analyze the results to explore the effects of risk aversion of the manufacturer and the retailer upon the equilibrium decisions. Our results imply that both the risk aversion of the manufacturer and the retailer play an important role in the price and quality decisions. We find that, in general, in MS and RS models, the optimal wholesale price and quality decrease with the risk aversion of the manufacturer but increase with the risk aversion of the retailer, while the retail price decreases with the risk aversion of the manufacturer as well as the retailer. We also examine the impact of quality cost coefficient on the optimal decisions. Finally, numerical examples are presented to illustrate the different degree of effects of players’ risk aversion on equilibrium results and to compare results in different models considered.
Modal and Mixed Specifications: Key Decision Problems and their Complexities
Antonik, Adam; Huth, Michael; Larsen, Kim Guldstrand;
2010-01-01
Modal and mixed transition systems are specification formalisms that allow mixing of over- and under-approximation. We discuss three fundamental decision problems for such specifications: whether a set of specifications has a common implementation, whether a sole specification has an implementation......, and whether all implementations of one specification are implementations of another one. For each of these decision problems we investigate the worst-case computational complexity for the modal and mixed case. We show that the first decision problem is EXPTIME-complete for modal as well as for mixed...... specifications. We prove that the second decision problem is EXPTIME-complete for mixed specifications (while it is known to be trivial for modal ones). The third decision problem is furthermore demonstrated to be EXPTIME-complete for mixed specifications....
A branch-and-cut-and-price algorithm for the cumulative capacitated vehicle routing problem
Wøhlk, Sanne; Lysgaard, Jens
2014-01-01
The paper considers the Cumulative Capacitated Vehicle Routing Problem (CCVRP), which is a variation of the well-known Capacitated Vehicle Routing Problem (CVRP). In this problem, the traditional objective of minimizing total distance or time traveled by the vehicles is replaced by minimizing the...... the sum of arrival times at the customers. A branch-and-cut-and-price algorithm for obtaining optimal solutions to the problem is proposed. Computational results based on a set of standard CVRP benchmarks are presented....
Policy Decisions for a Price Dependent Demand Rate Inventory Model with Progressive Payments Scheme
Rajat Kumar; Mukesh Kumar
2012-01-01
Problem statement: In this proposed research, we developed an inventory model to formulate an optimal ordering policies for supplier who offers progressive permissible delay periods to the retailer to settle his/her account. We assumed that the annual demand rate as a decreasing function of price with constant rate of deterioration and time-varying holding cost. Shortages in inventory are allowed which is completely backlogged. Approach: The main objective of this study to frame an inventory ...
Jixiang Zhou; Yong Wang; Xiaoming Yan
2014-01-01
We investigate a joint pricing and purchasing problem for the dual-channel newsvendor model with the assumption that only the mean and variance of the demand are known. The newsvendor in our model simultaneously distributes a single product through traditional retail and Internet. A robust optimization approach that maximizes the worst-case profit is adapted under the aforementioned conditions to model demand uncertainty and linear clearing functions that characterize the relationship between...
A Theoretical Approach to Multiobjective Decision Problems
1974-11-01
Formal Theory of Value, I, " Philosophy of Science, Vol. 22(1955), pp. 14^-160. 2. Dorfman, R., "Operations Research," American Economic Review , Vol...34 American Economic Review , Vol. 49(1959), pp. 253-293. 16. , The new Science of Management Decision, Harper & Row, N. Y., 1960. 21 17. Thompson, G. E
Code Calibration as a Decision Problem
Sørensen, John Dalsgaard; Kroon, I. B.; Faber, M. H.
1993-01-01
Calibration of partial coefficients for a class of structures where no code exists is considered. The partial coefficients are determined such that the difference between the reliability for the different structures in the class considered and a target reliability level is minimized. Code...... calibration on a decision theoretical basis is discussed. Results from code calibration for rubble mound breakwater designs are shown....
Effective decision making 10 steps to better decision making and problem solving
Kourdi, Jeremy
2011-01-01
Decisions and problems can often leave people with a dilemma: knowing that a decision is required, but uncertain how to ensure that it is the best one and that it will be successfully executed. The paradox is that the very pressure for a decision often breeds indecisiveness.
Problems in Decentralized Decision making and Computation.
1984-12-01
Wald ) problem [Teneketzis, 1983], as well as problems involving communication of zero-one messages from certain sensors to others [Ekchian and Tenney...that the development of results for pseudo-gradient algorithms leads easily to results for broader classes of algorithms, such as Kiefer- Wolfowitz ...Decentralized Wald Problem," Proceedings of the 1983 American Control Conference, San Francisco, CA. Teneketzis, D., P. Varaiya, (1984), "Consensus in
Pricing and Warranty Level Decisions for New and Remanufactured Short Life-Cycle Products
Gan Shu San
2017-06-01
Full Text Available Remanufacturing has become more prominent as a recovery process to mitigate the massive disposal of short life-cycle product at its end-of-use. However, remanufactured product is often perceived to be inferior to new product, and it has lower value in consumer’s willingness to pay. To increase the perceived quality of the remanufactured product, manufacturer offers a warranty, since one of the three roles possessed in warranty is being a signal to product reliability. This paper studies the pricing decisions and warranty level decision for new and remanufactured products in a closed-loop supply chain consists of a manufacturer and a retailer. The optimization modeling is performed under Stackelberg game with manufacturer as the leader. We found that higher expansion effectiveness coefficient would increase the supply chain profit. Also, there is an interval of demand’s speed of change, where the total profit would be at its highest. The optimum warranty level can be achieved regardless the initial warranty level set at the beginning of retailer’s optimization. Furthermore, the remanufactured product’s wholesale and retail prices are influenced by the expansion effectiveness coefficient.
Branch-and-Cut-and-Price for the Pickup and Delivery Problem with Time Windows
Røpke, Stefan; Cordeau, Jean-Francois
2009-01-01
-and-cut-and-price algorithm in which lower bounds are computed by solving through column generation the linear programming relaxation of a set partitioning formulation. Two pricing subproblems are considered in the column generation algorithm: an elementary and a non-elementary shortest path problem. Valid inequalities......In the pickup and delivery problem with time windows (PDPTW), vehicle routes must be designed to satisfy a set of transportation requests, each involving a pickup and a delivery location, under capacity, time window, and precedence constraints. This paper introduces a new branch...
Baldin, Andrea; Bille, Trine; Ellero, Andrea
The implementation of Revenue Management (RM) techniques in non profit performing arts organizations presents new challenges compared to other sectors, such as transportion or hospitality industries, in which these techniques are more consolidated. Indeed, performing arts organizations are charac......The implementation of Revenue Management (RM) techniques in non profit performing arts organizations presents new challenges compared to other sectors, such as transportion or hospitality industries, in which these techniques are more consolidated. Indeed, performing arts organizations...... is to incentive the customers to discriminate among themselves according to their reservation price, offering a schedule of different prices corresponding to different seats in the venue. In this context, price and allocation of the theatre seating area are decision variables that allow theatre managers to manage...... of heterogeneity among customer categories in both choice and demand. The proposed model is validated with booking data referring to the Royal Danish Theatre during the period 2010-2015....
Baldin, Andrea; Bille, Trine; Ellero, Andrea
The implementation of Revenue Management (RM) techniques in non profit performing arts organizations presents new challenges compared to other sectors, such as transportion or hospitality industries, in which these techniques are more consolidated. Indeed, performing arts organizations...... are characterized by a multi-objective function that is not solely limited to revenue. On the one hand, theatres aim to increase revenue from box office as a consequence of the systematic reduction of public funds; on the other hand they pursue the objective to increase its attendance. A common practice by theatres...... is to incentive the customers to discriminate among themselves according to their reservation price, offering a schedule of different prices corresponding to different seats in the venue. In this context, price and allocation of the theatre seating area are decision variables that allow theatre managers to manage...
Jixiang Zhou
2014-01-01
Full Text Available We investigate a joint pricing and purchasing problem for the dual-channel newsvendor model with the assumption that only the mean and variance of the demand are known. The newsvendor in our model simultaneously distributes a single product through traditional retail and Internet. A robust optimization approach that maximizes the worst-case profit is adapted under the aforementioned conditions to model demand uncertainty and linear clearing functions that characterize the relationship between demand and prices. We obtain a close-form expression for the robust optimal policy. Illustrative simulations and numerical experiments show the effects of several parameters on the optimal policy and on newsvendor performance. Finally, we determine that the gap between newsvendor performance under demand certainty and uncertainty is minimal, which shows that the robust approach can significantly improve performance.
Lau, Chun Sing
This thesis studies two types of problems in financial derivatives pricing. The first type is the free boundary problem, which can be formulated as a partial differential equation (PDE) subject to a set of free boundary condition. Although the functional form of the free boundary condition is given explicitly, the location of the free boundary is unknown and can only be determined implicitly by imposing continuity conditions on the solution. Two specific problems are studied in details, namely the valuation of fixed-rate mortgages and CEV American options. The second type is the multi-dimensional problem, which involves multiple correlated stochastic variables and their governing PDE. One typical problem we focus on is the valuation of basket-spread options, whose underlying asset prices are driven by correlated geometric Brownian motions (GBMs). Analytic approximate solutions are derived for each of these three problems. For each of the two free boundary problems, we propose a parametric moving boundary to approximate the unknown free boundary, so that the original problem transforms into a moving boundary problem which can be solved analytically. The governing parameter of the moving boundary is determined by imposing the first derivative continuity condition on the solution. The analytic form of the solution allows the price and the hedging parameters to be computed very efficiently. When compared against the benchmark finite-difference method, the computational time is significantly reduced without compromising the accuracy. The multi-stage scheme further allows the approximate results to systematically converge to the benchmark results as one recasts the moving boundary into a piecewise smooth continuous function. For the multi-dimensional problem, we generalize the Kirk (1995) approximate two-asset spread option formula to the case of multi-asset basket-spread option. Since the final formula is in closed form, all the hedging parameters can also be derived in
Team Decision Problems with Convex Quadratic Constraints
Gattami, Ather
2015-01-01
In this paper, we consider linear quadratic team problems with an arbitrary number of quadratic constraints in both stochastic and deterministic settings. The team consists of players with different measurements about the state of nature. The objective of the team is to minimize a quadratic cost subject to additional finite number of quadratic constraints. We first consider the problem of countably infinite number of players in the team for a bounded state of nature with a Gaussian distributi...
Integrating routing decisions in public transportation problems
Schmidt, Marie E
2014-01-01
This book treats three planning problems arising in public railway transportation planning: line planning, timetabling, and delay management, with the objective to minimize passengers’ travel time. While many optimization approaches simplify these problems by assuming that passengers’ route choice is independent of the solution, this book focuses on models which take into account that passengers will adapt their travel route to the implemented planning solution. That is, a planning solution and passengers’ routes are determined and evaluated simultaneously. This work is technically deep, with insightful findings regarding complexity and algorithmic approaches to public transportation problems with integrated passenger routing. It is intended for researchers in the fields of mathematics, computer science, or operations research, working in the field of public transportation from an optimization standpoint. It is also ideal for students who want to gain intuition and experience in doing complexity proofs ...
Branch-and-cut-and-price for the traveling salesman problem with time windows
Røpke, Stefan; Madsen, Oli B.G.
In the traveling salesman problem with time windows (TSPTW) one is given a depot and a set of nodes to be visited by a salesman. The salesman starts his trip at the depot and must visit all nodes while respecting time windows at the nodes. The objective of the problem is to minimize the total...... distance traveled by the salesman. The TSPTW is formulated as a set-partitioning problem which is solved by using combined cut and column generation. The pricing sub problem in the column generation procedure is a shortest path problem with time window constraints and 2-cycle elimination. A standard column...
A study on pricing decision of supply chain based on fairness concern
Yang, Hongxiong; Sun, Xiongle
2017-03-01
The fairness concern is introduced into a closed-loop supply chain, which includes a manufacturer and a retailer. This paper study the effect of fairness concern on wholesale price, retail price, recycling prices, manufacturer profits and retails profits under two situation: only the manufacturer is fairness concern and only the retailer is fairness concern. Studies show that: Retailer's fairness concern will reduce the price of the wholesale price, while the retail price and the recycling price unchanged, which led to the retailer to get more supply chain profits. Manufacturers' fairness concerns will raise the wholesale price, thereby increasing the manufacturer's supply chain profit, and the retailer's profit is compromised.
A problem solving framework for group decision support system
陈晓红; 周艳菊; 胡东滨
2002-01-01
A new problem solving framework for group decision support system using layer model approach is proposed. This kind of framework includes four basic layers, namely, application layer, task layer, logical layer and physical layer. Based on indicating the respective meanings of those layers a task skeleton of group decision support system and a logical structure of group decision support system generator are put forward and discussed in detail. The framework provides theoretical guidance for developing group decision support system to lower systematic development complexity and support reuse of software.
Stackelberg Network Pricing Games
Briest, Patrick; Krysta, Piotr
2008-01-01
We study a multi-player one-round game termed Stackelberg Network Pricing Game, in which a leader can set prices for a subset of $m$ priceable edges in a graph. The other edges have a fixed cost. Based on the leader's decision one or more followers optimize a polynomial-time solvable combinatorial minimization problem and choose a minimum cost solution satisfying their requirements based on the fixed costs and the leader's prices. The leader receives as revenue the total amount of prices paid by the followers for priceable edges in their solutions, and the problem is to find revenue maximizing prices. Our model extends several known pricing problems, including single-minded and unit-demand pricing, as well as Stackelberg pricing for certain follower problems like shortest path or minimum spanning tree. Our first main result is a tight analysis of a single-price algorithm for the single follower game, which provides a $(1+\\epsilon) \\log m$-approximation for any $\\epsilon >0$. This can be extended to provide a ...
Solution to multiple attribute group decision making problems with two decision makers
Fangwei Zhang; Wei Wang; Xuedong Hua
2015-01-01
A kind of multiple attribute group decision making (MAGDM) problem is discussed from the perspective of statistic decision-making. Firstly, on the basis of the stability theory, a new idea is proposed to solve this kind of problem. Secondly, a con-crete method corresponding to this kind of problem is proposed. The main tool of our research is the technique of the jackknife method. The main advantage of the new method is that it can identify and determine the reliability degree of the existed decision making information. Final y, a traffic engineering example is given to show the effectiveness of the new method.
Clarification process: Resolution of decision-problem conditions
Dieterly, D. L.
1980-01-01
A model of a general process which occurs in both decisionmaking and problem-solving tasks is presented. It is called the clarification model and is highly dependent on information flow. The model addresses the possible constraints of individual indifferences and experience in achieving success in resolving decision-problem conditions. As indicated, the application of the clarification process model is only necessary for certain classes of the basic decision-problem condition. With less complex decision problem conditions, certain phases of the model may be omitted. The model may be applied across a wide range of decision problem conditions. The model consists of two major components: (1) the five-phase prescriptive sequence (based on previous approaches to both concepts) and (2) the information manipulation function (which draws upon current ideas in the areas of information processing, computer programming, memory, and thinking). The two components are linked together to provide a structure that assists in understanding the process of resolving problems and making decisions.
Two Quantum Protocols for Oblivious Set-member Decision Problem
Shi, Run-Hua; Mu, Yi; Zhong, Hong; Cui, Jie; Zhang, Shun
2015-10-01
In this paper, we defined a new secure multi-party computation problem, called Oblivious Set-member Decision problem, which allows one party to decide whether a secret of another party belongs to his private set in an oblivious manner. There are lots of important applications of Oblivious Set-member Decision problem in fields of the multi-party collaborative computation of protecting the privacy of the users, such as private set intersection and union, anonymous authentication, electronic voting and electronic auction. Furthermore, we presented two quantum protocols to solve the Oblivious Set-member Decision problem. Protocol I takes advantage of powerful quantum oracle operations so that it needs lower costs in both communication and computation complexity; while Protocol II takes photons as quantum resources and only performs simple single-particle projective measurements, thus it is more feasible with the present technology.
A Stochastic Decision Support System for Economic Order Quantity Problem
Amir Yousefli
2012-01-01
Full Text Available Improving decisions efficiency is one of the major concerns of the decision support systems. Specially in the uncertain environment, decision support systems could be implemented efficiently to simplify decision making process. In this paper stochastic economic order quantity (EOQ problem is investigated in which decision variables and objective function are uncertain in nature and optimum probability distribution functions of them are calculated through a geometric programming model. Obtained probability distribution functions of the decision variables and the objective function are used as optimum knowledge to design a new probabilistic rule base (PRB as a decision support system for EOQ model. The developed PRB is a new type of the stochastic rule bases that can be used to infer optimum or near optimum values of the decision variables and the objective function of the EOQ model without solving the geometric programming problem directly. Comparison between the results of the developed PRB and the optimum solutions which is provided in the numerical example illustrates the efficiency of the developed PRB.
Chang, Shin-Shin; Chang, Chung-Chau; Su, Wei-Gan
2015-08-01
People perceive price as a cue of monetary sacrifice, a quality signal, or both. However, this research proposed that the relative salience of these two roles varies with different decision tasks (i.e., selection and rejection). Furthermore, the effect of decision task type on price perception differs by product type (i.e., tangible goods or services). Two experiments show that (1) the price-quality perception under the selection task is higher than that of a rejection task for tangible goods but not for services; and (2) for goods and services, the sacrifice perception is greater in the rejection task than that in a selection task. These findings have important implications for formulating product assortment and marketing communications strategies.
The database search problem: a question of rational decision making.
Gittelson, S; Biedermann, A; Bozza, S; Taroni, F
2012-10-10
This paper applies probability and decision theory in the graphical interface of an influence diagram to study the formal requirements of rationality which justify the individualization of a person found through a database search. The decision-theoretic part of the analysis studies the parameters that a rational decision maker would use to individualize the selected person. The modeling part (in the form of an influence diagram) clarifies the relationships between this decision and the ingredients that make up the database search problem, i.e., the results of the database search and the different pairs of propositions describing whether an individual is at the source of the crime stain. These analyses evaluate the desirability associated with the decision of 'individualizing' (and 'not individualizing'). They point out that this decision is a function of (i) the probability that the individual in question is, in fact, at the source of the crime stain (i.e., the state of nature), and (ii) the decision maker's preferences among the possible consequences of the decision (i.e., the decision maker's loss function). We discuss the relevance and argumentative implications of these insights with respect to recent comments in specialized literature, which suggest points of view that are opposed to the results of our study.
R. Freling (Richard); R.M. Lentink (Ramon); A.P.M. Wagelmans (Albert)
2001-01-01
textabstractThis paper discusses a decision support system for airline and railway crew planning. The system is a state-of-the-art branch-and-price solver that is used for crew scheduling and crew rostering. We briefly discuss the mathematical background of the solver, of which most part is covered
Complexity of Decision Problems for Mixed and Modal Specifications
Antonik, Adam; Huth, Michael; Nyman, Ulrik Mathias;
2008-01-01
We consider decision problems for modal and mixed transition systems used as specifications: the common implementation problem (whether a set of specifications has a common implementation), the consistency problem (whether a single specification has an implementation), and the thorough refinement...... problem (whether all implementations of one specification are also implementations of another one). Common implementation and thorough refinement are shown to be PSPACE-hard for modal, and so also for mixed, specifications. Consistency is PSPACE-hard for mixed, while trivial for modal specifications. We...... also supply upper bounds suggesting strong links between these problems....
MULTIPLE CRITERIA DECISION MAKING:DISCORDANT PREFERENCES AND PROBLEM DESCRIPTION
Alexey B.PETROVSKY
2007-01-01
There are many practical decision problems where decision makers' preferences may be inconsistent and contradictory.In this paper,new methods for ordering and classifying multi-attribute objects by discordant collective preferences are suggested.These methods are based on the theory of multiset metric spaces.The proposed techniques are applied to ranking companies and a competitive selection of projects,which are estimated by several experts upon multiple qualitative criteria.
李建启; 路立浩
2016-01-01
研究需求受价格和商誉共同影响下易逝品动态定价与广告投资策略的联合决策问题. 在初始库存确定的情形下,在某待定销售周期内,企业通过投入广告提升自身商誉从而拓宽市场,以企业利润最大化为目标,建立联合最优动态定价及广告投资策略模型. 应用庞特里亚金极大值原理,求得不同系统参数下最优动态定价和广告投资策略及最优的销售周期. 通过数值算例验证方法的有效性,结合参数灵敏度分析检验系统参数对最优策略的影响并给出相应管理意义.%The joint decision problem is studied of dynamic pricing and advertising decision of perishable item with demand influenced by price and goodwill. The model of joint optimal dynamic pricing and advertising investment strategy is established under the conditions that the initial inventory is defined, the sales period is predetermined, the enterprise can expand the market by putting into advertising to enhance its goodwill, and the aim is maximizing profit. The optimal dynamic pricing and advertising investment strategy and the optimal sales cycle are obtained under different system parameters by applying Pontryagin maximum principle. The validity of the model is verified through numerical example method. The influence of system parameters on the optimal strategy is analyzed combining parameter sensitivity analysis, and the corresponding management significance is also given.
Branch-and-cut-and-price for the traveling salesman problem with time windows
Røpke, Stefan; Madsen, Oli B.G.
In the traveling salesman problem with time windows (TSPTW) one is given a depot and a set of nodes to be visited by a salesman. The salesman starts his trip at the depot and must visit all nodes while respecting time windows at the nodes. The objective of the problem is to minimize the total...... distance traveled by the salesman. The TSPTW is formulated as a set-partitioning problem which is solved by using combined cut and column generation. The pricing sub problem in the column generation procedure is a shortest path problem with time window constraints and 2-cycle elimination. A standard column...... generation process converges slowly for the problem and therefore a stabilization procedure is implemented. Valid inequalities expressed in the original, arc-based variables are added to the LP relaxation to strengthen the lower bound. The proposed algorithm is compared to exact algorithms based on other...
A Conjugate Class of Utility Functions for Sequential Decision Problems.
Houlding, Brett; Coolen, Frank P A; Bolger, Donnacha
2015-09-01
The use of the conjugacy property for members of the exponential family of distributions is commonplace within Bayesian statistical analysis, allowing for tractable and simple solutions to problems of inference. However, despite a shared motivation, there has been little previous development of a similar property for using utility functions within a Bayesian decision analysis. As such, this article explores a class of utility functions that appear to be reasonable for modeling the preferences of a decisionmaker in many real-life situations, but that also permit a tractable and simple analysis within sequential decision problems. © 2015 Society for Risk Analysis.
An Efficient Method for Solving Spread Option Pricing Problem: Numerical Analysis and Computing
R. Company
2016-01-01
Full Text Available This paper deals with numerical analysis and computing of spread option pricing problem described by a two-spatial variables partial differential equation. Both European and American cases are treated. Taking advantage of a cross derivative removing technique, an explicit difference scheme is developed retaining the benefits of the one-dimensional finite difference method, preserving positivity, accuracy, and computational time efficiency. Numerical results illustrate the interest of the approach.
A Branch-and-Price Approach to the Feeder Network Design Problem
Santini, Alberto; Plum, Christian Edinger Munk; Røpke, Stefan
2017-01-01
transit times. Realistic instances are generated from the LinerLib benchmark suite. The problem is solved with a branch-and-price algorithm, which can solve most instances to optimality within one hour. The results also provide insights on the cost structure and desirable features of optimal routes....... These insights were obtained by means of an analysis where scenarios are generated varying internal and external conditions, such as fuel costs and port demands....
Shu San Gan
2015-12-01
Full Text Available In this study we develop a model that optimizes the price for new and remanufactured short life-cycle products where demands are time-dependent and price sensitive. While there has been very few published works that attempt to model remanufacturing decisions for products with short life cycle, we believe that there are many situations where remanufacturing short life cycle products is rewarding economically as well as environmentally. The system that we model consists of a retailer, a manufacturer, and a collector of used product from the end customers. Two different scenarios are evaluated for the system. The first is the independent situation where each party attempts to maximize his/her own total profit and the second is the joint profit model where we optimize the combined total profit for all three members of the supply chain. Manufacturer acts as the Stackelberg leader in the independently optimized scenario, while in the other the intermediate prices are determined by coordinated pricing policy. The results suggest that (i reducing the price of new products during the decline phase does not give better profit for the whole system, (ii the total profit obtained from optimizing each player is lower than the total profit of the integrated model, and (iii speed of change in demand influences the robustness of the prices as well as the total profit gained.
Real-Time Pricing Decision Making for Retailer-Wholesaler in Smart Grid Based on Game Theory
Yeming Dai
2014-01-01
Full Text Available Real-time pricing DSM (demand side management is widely used to dynamically change or shift the electricity consumption in the smart grid. In this paper, a game decision making scheme is proposed in the smart grid with DSM. The interaction between two retailers and their wholesaler is modeled as a two-stage game model. Considering the competition between two retailers, two different game models are developed in terms of the different action order between retailers and their wholesaler. Through analyzing the equilibrium revenues of the retailers for different situations we find that although the wholesaler expects to decentralize certain management powers to the retailers, it has retained the right to change the rules of the game and frequently reneged on the promises. More specifically, the law should ensure that any change of the revenue-sharing formula must go through certain legal procedures. Imposing legal restrictions on the wholesaler’s discretionary policy suggests that the time-inconsistency problem is mitigated. Numerical simulation shows the effectiveness of proposed scheme.
A Decision Support System for Solving Multiple Criteria Optimization Problems
Filatovas, Ernestas; Kurasova, Olga
2011-01-01
In this paper, multiple criteria optimization has been investigated. A new decision support system (DSS) has been developed for interactive solving of multiple criteria optimization problems (MOPs). The weighted-sum (WS) approach is implemented to solve the MOPs. The MOPs are solved by selecting different weight coefficient values for the criteria…
Claudio Hoffmann Sampaio
2016-01-01
Full Text Available This paper examines the influence of price bundling on decision to buy and consume soccer match tickets in Brazil, also testing the effect that pride and involvement play in purchase decisions. The marketing literature shows solid evidence that price bundling influences consumers decisions. Therefore, studies found the occurrence of a phenomenon called transaction decoupling which involves the level of coupling of costs and benefits of consumption situations and could be a strong motivational factor moderating in this relationship. In the sports context, another variable that may influence on fans is pride. This sentiment is the keystone of sports consumption and the fans are driven by it. Thereby, the involvement and pride variables are tested as possible moderating effects on soccer matches tickets consumption. We designed an experiment to test these relationships. Results indicate a direct effect of involvement on transaction decoupling, but not of price bundling or pride. People more highly involved with soccer game were more likely to attend matches due to their greater attention to irrecoverable costs, and experience more pain, regret, repurchase intention and sense of waste than less involved individuals. Performance does not seem to influence people’s decision-making process, as it is merely one of the antecedents in rooting for a team. The main contribution of this paper is show that coupling of transaction costs and benefits can be motivated by the intensity of the relationship between an individual and a sports objective.
Option pricing, Bayes risks and Applications
Yatracos, Yannis G.
2013-01-01
A statistical decision problem is hidden in the core of option pricing. A simple form for the price C of a European call option is obtained via the minimum Bayes risk, R_B, of a 2-parameter estimation problem, thus justifying calling C Bayes (B-)price. The result provides new insight in option pricing, among others obtaining C for some stock-price models using the underlying probability instead of the risk neutral probability and giving R_B an economic interpretation. When logarithmic stock p...
73 Activity Based Costing and Product Pricing Decision: the Nigerian Case
Ebipanipre Gabriel Mieseigha
2014-01-01
.... The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately...
Lillo, F
2006-01-01
I consider the problem of the optimal limit order price of a financial asset in the framework of the maximization of the utility function of the investor. The analytical solution of the problem gives insight on the origin of the recently empirically observed power law distribution of limit order prices. In the framework of the model, the most likely proximate cause of this power law is a power law heterogeneity of traders' investment time horizons .
Sheng Li
2016-07-01
Full Text Available In recent years, with the reforms to the land use system and the development of urbanization in China, land price evaluation has tended towards marketization. Prices are determined by the government, the land transaction market and the public. It is necessary to propose higher standards to be used in the evaluation process. This paper presents an online land price evaluation approach for convenience in evaluation. In a network environment, taking advantage of the data services provided by various departments, we propose two models to assist in decision-making: (1 a geographic information system (GIS- and fuzzy set-based location factor quantification model, which adopts dynamic data, rules and quantification measures (based on the road network to dynamically quantify location factors, thus transforming fuzzy sets into appropriate values; and (2 a neartude-based transaction sample push model, which quantifies the similarity between a given land and other samples, thus providing a basis for decision-making by an appraiser. This approach is applied in Shenzhen to evaluate its ability to simplify the work of appraisers and make their decisions more intuitive and objective in a real case.
Kaiser, Steven M.; Woodman, Richard W.
1985-01-01
In placement decisions necessitated by PL 94-142, the multidimensional team approach may be hindered by group problems. The more structured nominal group technique (NGT) is suggested. NGT has six steps: silent, written generation of ideas; round robin reporting; group discussion for clarification; preliminary priority vote; discussion; and final…
Freeland, M S; Hunt, S S; Luft, H S
1987-01-01
There is a burgeoning interest in selective contracting for specialized hospital services based on volume, price, and quality. The systematic exclusion or inclusion of particular institutions has been extolled by some as an arrangement to reduce costs and by others as a means to increase quality of care. However, little is known about the issues and problems associated with selective contracting based on objective criteria rather than negotiations. Identification of individual institutions with performance significantly better or poorer than expected based on statistical norms is difficult and should be viewed as no more than a first step in evaluating quality and price performance. Actual data on 37 hospitals that provide coronary artery bypass graft surgery in a metropolitan region are used to illustrate some major prospects, problems, and situations arising when certain institutions are considered for exclusion from or inclusion in third-party payment programs. Selective contracting in local areas can potentially decrease duplication of services, reduce cost to purchasers, and lower expected mortality and morbidity for some patient groups. However, these gains must be evaluated against reductions in continuity of care and access to care, potential increases in mortality and morbidity for certain segments of the population, and substantial political problems.
On a price formation free boundary model by Lasry & Lions: The Neumann problem
Caffarelli, Luis A; Wolfram, Marie-Therese
2011-01-01
We discuss local and global existence and uniqueness for the price formation free boundary model with homogeneous Neumann boundary conditions introduced by Lasry & Lions in 2007. The results are based on a transformation of the problem to the heat equation with nonstandard boundary conditions. The free boundary becomes the zero level set of the solution of the heat equation. The transformation allows us to construct an explicit solution and discuss the behavior of the free boundary. Global existence can be verified under certain conditions on the free boundary and examples of non-existence are given.
Water flow algorithm decision support tool for travelling salesman problem
Kamarudin, Anis Aklima; Othman, Zulaiha Ali; Sarim, Hafiz Mohd
2016-08-01
This paper discuss about the role of Decision Support Tool in Travelling Salesman Problem (TSP) for helping the researchers who doing research in same area will get the better result from the proposed algorithm. A study has been conducted and Rapid Application Development (RAD) model has been use as a methodology which includes requirement planning, user design, construction and cutover. Water Flow Algorithm (WFA) with initialization technique improvement is used as the proposed algorithm in this study for evaluating effectiveness against TSP cases. For DST evaluation will go through usability testing conducted on system use, quality of information, quality of interface and overall satisfaction. Evaluation is needed for determine whether this tool can assists user in making a decision to solve TSP problems with the proposed algorithm or not. Some statistical result shown the ability of this tool in term of helping researchers to conduct the experiments on the WFA with improvements TSP initialization.
ON MANAGERIAL DECISION PROBLEM OF THE AUCTION SITES
Kin Keung LAI; Jun MA; Shouyang WANG
2006-01-01
This paper studies one managerial decision problem of the auction sites: how to combine penalties with commissions? It is shown that when there exists secondary auction market, the auction whose penalty is a linear function of the seller's commission will be more efficient than the auction with only commissions but no penalties. It has also been proven that using this strategy can maximize the expected revenue for the seller, the auction site and their total expected revenues.
Shaopeng Zhong
2013-01-01
Full Text Available Focusing on the first-best marginal cost pricing (MCP in a stochastic network with both travel demand uncertainty and stochastic perception errors within the travelers’ route choice decision processes, this paper develops a perceived risk-based stochastic network marginal cost pricing (PRSN-MCP model. Numerical examples based on an integrated method combining the moment analysis approach, the fitting distribution method, and the reliability measures are also provided to demonstrate the importance and properties of the proposed model. The main finding is that ignoring the effect of travel time reliability and travelers’ perception errors may significantly reduce the performance of the first-best MCP tolls, especially under high travelers’ confidence and network congestion levels. The analysis result could also enhance our understanding of (1 the effect of stochastic perception error (SPE on the perceived travel time distribution and the components of road toll; (2 the effect of road toll on the actual travel time distribution and its reliability measures; (3 the effect of road toll on the total network travel time distribution and its statistics; and (4 the effect of travel demand level and the value of reliability (VoR level on the components of road toll.
On Profit-Maximizing Pricing for the Highway and Tollbooth Problems
Elbassioni, Khaled; Ray, Saurabh
2009-01-01
In the \\emph{tollbooth problem}, we are given a tree $\\bT=(V,E)$ with $n$ edges, and a set of $m$ customers, each of whom is interested in purchasing a path on the tree. Each customer has a fixed budget, and is willing to pay at most her budget to purchase her path. The objective of the problem is to price the edges of $\\bT$ such that the total revenue made by selling the paths to the customers that can afford them is maximized. An important special case of this problem, known as the \\emph{highway problem}, is when $\\bT$ is restricted to be a path. In this paper, we study the tollbooth and highway problems. For the tollbooth problem, we present a randomized $O(\\log n)$-approximation, improving on the current best $O(\\log m)$-approximation, since $n$ can be assumed to be at most $3m$. We also study a special case of the tollbooth problem, when all the paths that customers are interested in purchasing go towards a fixed root of $\\bT$. In this case, we present an algorithm that returns a $(1-\\epsilon)$-approxima...
Policy Decisions for a Price Dependent Demand Rate Inventory Model with Progressive Payments Scheme
Rajat Kumar
2012-01-01
Full Text Available Problem statement: In this proposed research, we developed an inventory model to formulate an optimal ordering policies for supplier who offers progressive permissible delay periods to the retailer to settle his/her account. We assumed that the annual demand rate as a decreasing function of price with constant rate of deterioration and time-varying holding cost. Shortages in inventory are allowed which is completely backlogged. Approach: The main objective of this study to frame an inventory model in real life situations. In this study, we introduced a new idea of trade credits, namely, the supplier charges the retailer progressive interest rates if the retailer prolongs its unpaid balance. By offering progressive interest rates to the retailers, a supplier, can secure competitive market advantage over the competitors and possibly improve market share profit. This study has two main purposes, first the mathematical model of an inventory system are establish under the above conditions and second demonstrate that the optimal solution not only exists but also feasible. We developed theoretical results to obtain the optimal replenishment interval by examine the explicit condition. An algorithm is given to find the flow of optimal ordering policy. Results: The results is illustrated with the help of numerical example using Mathematica software and the optimal solution of the problem is Z (p, T1 = 76.8586 at (p, T1 = (0.952656, 0.128844. Conclusion: We proposed an algorithm to find the optimal ordering policy. A numerical study has been performed to observe the sensitivity of the effect of demand parameter changes.
Decoding Problem Gamblers' Signals: A Decision Model for Casino Enterprises.
Ifrim, Sandra
2015-12-01
The aim of the present study is to offer a validated decision model for casino enterprises. The model enables those users to perform early detection of problem gamblers and fulfill their ethical duty of social cost minimization. To this end, the interpretation of casino customers' nonverbal communication is understood as a signal-processing problem. Indicators of problem gambling recommended by Delfabbro et al. (Identifying problem gamblers in gambling venues: final report, 2007) are combined with Viterbi algorithm into an interdisciplinary model that helps decoding signals emitted by casino customers. Model output consists of a historical path of mental states and cumulated social costs associated with a particular client. Groups of problem and non-problem gamblers were simulated to investigate the model's diagnostic capability and its cost minimization ability. Each group consisted of 26 subjects and was subsequently enlarged to 100 subjects. In approximately 95% of the cases, mental states were correctly decoded for problem gamblers. Statistical analysis using planned contrasts revealed that the model is relatively robust to the suppression of signals performed by casino clientele facing gambling problems as well as to misjudgments made by staff regarding the clients' mental states. Only if the last mentioned source of error occurs in a very pronounced manner, i.e. judgment is extremely faulty, cumulated social costs might be distorted.
Durham, Catherine A; Bouma, Andrea; Meunier-Goddik, Lisbeth
2015-12-01
Artisan cheese makers lack access to valid economic data to help them evaluate business opportunities and make important business decisions such as determining cheese pricing structure. The objective of this study was to utilize an economic model to evaluate the net present value (NPV), internal rate of return, and payback period for artisan cheese production at different annual production volumes. The model was also used to determine the minimum retail price necessary to ensure positive NPV for 5 different cheese types produced at 4 different production volumes. Milk type, cheese yield, and aging time all affected variable costs. However, aged cheeses required additional investment for aging space (which needs to be larger for longer aging times), as did lower yield cheeses (by requiring larger-volume equipment for pasteurization and milk handling). As the volume of milk required increased, switching from vat pasteurization to high-temperature, short-time pasteurization was necessary for low-yield cheeses before being required for high-yield cheeses, which causes an additional increase in investment costs. Because of these differences, high-moisture, fresh cow milk cheeses can be sold for about half the price of hard, aged goat milk cheeses at the largest production volume or for about two-thirds the price at the lowest production volume examined. For example, for the given model assumptions, at an annual production of 13,608kg of cheese (30,000 lb), a fresh cow milk mozzarella should be sold at a minimum retail price of $27.29/kg ($12.38/lb), whereas a goat milk Gouda needs a minimum retail price of $49.54/kg ($22.47/lb). Artisan cheese makers should carefully evaluate annual production volumes. Although larger production volumes decrease average fixed cost and improve production efficiency, production can reach volumes where it becomes necessary to sell through distributors. Because distributors might pay as little as 35% of retail price, the retail price needs
An inverse problem of determining the implied volatility in option pricing
Deng, Zui-Cha; Yu, Jian-Ning; Yang, Liu
2008-04-01
In the Black-Scholes world there is the important quantity of volatility which cannot be observed directly but has a major impact on the option value. In practice, traders usually work with what is known as implied volatility which is implied by option prices observed in the market. In this paper, we use an optimal control framework to discuss an inverse problem of determining the implied volatility when the average option premium, namely the average value of option premium corresponding with a fixed strike price and all possible maturities from the current time to a chosen future time, is known. The issue is converted into a terminal control problem by Green function method. The existence and uniqueness of the minimum of the control functional are addressed by the optimal control method, and the necessary condition which must be satisfied by the minimum is also given. The results obtained in the paper may be useful for those who engage in risk management or volatility trading.
Enhancing decision-making effectiveness in problem-solving teams.
Bazan, S
1998-01-01
Active participation by all group members as well as the generation, presentation, and critical evaluation of a wide range of perspectives and alternatives are hallmarks of effective problem-solving teams. Diverse groups with an odd number of participants (five to seven members are generally best) are manageable and provide an adequate range of perspectives and alternatives. Several problems limit the effectiveness of problem-solving teams. Dysfunctional concurrence or "groupthink" occurs when concurrence seeking in cohesive groups overrides the realistic appraisal of alternative courses of action. Managers initially should withhold their own opinions, assign members the role of critical evaluators, and bring in people from outside the initial group to minimize this problem. Domination by a select few is also a problem because it can squelch the presentation of diverse opinions. Brainstorming and nominal group technique can mitigate this problem. In nominal group technique, a manager guides the group through steps involving brainstorming, recording, and voting on the merits of various alternatives before open discussion is allowed. Decision-making dropouts are group members who withdraw from active participation in the group. Managers can reduce this problem by emphasizing the importance of active participation and by monitoring performance.
Decision criteria under uncertainty and the climate problem
Bretteville, Camilla
1999-11-01
This working paper examines some of the decision criteria suggested by theories on decision making under uncertainty. This is done by applying the criteria to the problem of global warming. It is shown that even if there was a benevolent planner who is both supranational and supra generational and even if he had a well defined inter generational welfare function, there are still remaining problems. The question asked is: If there were a benevolent planner, would he know the best climate policy for the world today. The main discussion abstracts from all other complications and focuses on the lack of certainty regarding impacts of greenhouse gas emissions and the effectiveness of policy. A very simplified example of a game against nature is constructed. It has two possible policy choices. One can either try to prevent global warming, or one can choose to do nothing. The future state of the world is uncertain and the chosen policy might affect the outcome in each state. The framing of the example is such that one should expect a policy of action to be preferred rather than a no-action policy, however this is not always the case. It is shown that the preferred policy choice is very much dependent on the choice of decision criterion, the magnitude of costs and of the framing. 3 tabs., 23 refs
Decision support system for the operating room rescheduling problem.
van Essen, J Theresia; Hurink, Johann L; Hartholt, Woutske; van den Akker, Bernd J
2012-12-01
Due to surgery duration variability and arrivals of emergency surgeries, the planned Operating Room (OR) schedule is disrupted throughout the day which may lead to a change in the start time of the elective surgeries. These changes may result in undesirable situations for patients, wards or other involved departments, and therefore, the OR schedule has to be adjusted. In this paper, we develop a decision support system (DSS) which assists the OR manager in this decision by providing the three best adjusted OR schedules. The system considers the preferences of all involved stakeholders and only evaluates the OR schedules that satisfy the imposed resource constraints. The decision rules used for this system are based on a thorough analysis of the OR rescheduling problem. We model this problem as an Integer Linear Program (ILP) which objective is to minimize the deviation from the preferences of the considered stakeholders. By applying this ILP to instances from practice, we determined that the given preferences mainly lead to (i) shifting a surgery and (ii) scheduling a break between two surgeries. By using these changes in the DSS, the performed simulation study shows that less surgeries are canceled and patients and wards are more satisfied, but also that the perceived workload of several departments increases to compensate this. The system can also be used to judge the acceptability of a proposed initial OR schedule.
Wei Li; Xuehui He; Kai Nie
2013-01-01
Purpose: With the rapid development of economy and the support of government policy, the development of the logistics industry has become a new economic growth engine. As we all know, the reasonable price of logistics service is the most critical factor for logistics enterprises to win market share and make profit. At the same time, the service level is one of the most important factors which will influence the size of the market share. Therefore, this paper constructs a pricing model conside...
Decision theory for computing variable and value ordering decisions for scheduling problems
Linden, Theodore A.
1993-01-01
Heuristics that guide search are critical when solving large planning and scheduling problems, but most variable and value ordering heuristics are sensitive to only one feature of the search state. One wants to combine evidence from all features of the search state into a subjective probability that a value choice is best, but there has been no solid semantics for merging evidence when it is conceived in these terms. Instead, variable and value ordering decisions should be viewed as problems in decision theory. This led to two key insights: (1) The fundamental concept that allows heuristic evidence to be merged is the net incremental utility that will be achieved by assigning a value to a variable. Probability distributions about net incremental utility can merge evidence from the utility function, binary constraints, resource constraints, and other problem features. The subjective probability that a value is the best choice is then derived from probability distributions about net incremental utility. (2) The methods used for rumor control in Bayesian Networks are the primary way to prevent cycling in the computation of probable net incremental utility. These insights lead to semantically justifiable ways to compute heuristic variable and value ordering decisions that merge evidence from all available features of the search state.
Uchoa, Eduardo; Fukasawa, Ricardo; Lysgaard, Jens
2008-01-01
This paper presents a robust branch-cut-and-price algorithm for the Capacitated Minimum Spanning Tree Problem (CMST). The variables are associated to q-arbs, a structure that arises from a relaxation of the capacitated prize-collecting arborescence problem in order to make it solvable in pseudo-p...
Uchoa, Eduardo; Fukasawa, Ricardo; Lysgaard, Jens
This paper presents a robust branch-cut-and-price algorithm for the Capacitated Minimum Spanning Tree Problem (CMST). The variables are associated to q-arbs, a structure that arises from a relaxation of the capacitated prize-collecting arborescence problem in order to make it solvable in pseudo...
An Elite Decision Making Harmony Search Algorithm for Optimization Problem
Lipu Zhang
2012-01-01
Full Text Available This paper describes a new variant of harmony search algorithm which is inspired by a well-known item “elite decision making.” In the new algorithm, the good information captured in the current global best and the second best solutions can be well utilized to generate new solutions, following some probability rule. The generated new solution vector replaces the worst solution in the solution set, only if its fitness is better than that of the worst solution. The generating and updating steps and repeated until the near-optimal solution vector is obtained. Extensive computational comparisons are carried out by employing various standard benchmark optimization problems, including continuous design variables and integer variables minimization problems from the literature. The computational results show that the proposed new algorithm is competitive in finding solutions with the state-of-the-art harmony search variants.
方国敏; 徐玖平
2015-01-01
针对大型垄断厂商在商品生产、运输、定价决策中独立考虑生产定价和运输两个环节的弊端，提出一种将产量决策、运输决策和定价决策3个环节作为一个系统进行考虑的综合决策模型.借助利润网络图，构建同时考虑生产及运输成本以及市场需求的商品生产、运输和定价综合决策模型，并探讨模型的解法及其理论基础.通过给出的应用案例表明，相比传统决策模型，利用综合决策模型可以提高15.50%的利润.%For the drawbacks that research on production, transportation and pricing decision problems has typically focused on considering individual production/pricing problems, or on considering individual transportation problems, the integrated decision-making model is proposed. The production decisions, transportation decisions and pricing decision are considered as a system, and an integrated decision-making model considering simultaneously production cost, transportation cost and the market demand is proposed by using the profit network graph. The solution and its theoretical basis are discussed. An application example is given to illustrate that, by using the mode, the increase in total operating profit from tradition model is up to 15.50%.
A multi objective geometric programming approach for electronic product pricing problem
Mohsen Fathollah Bayati
2011-07-01
Full Text Available Nowadays electronic commerce plays an important role in many business activities, operations, and transaction processing. The recent advances on e-businesses have created tremendous opportunities to increase profitability. This paper presents a multi-objective marketing planning model which simultaneously determines efficient marketing expenditure, service cost and product's selling price in two competitive markets. To solve the proposed model, we discuss a multi-objective geometric programming (GP approach based on compromise programming method. Since our proposed model is a signomial GP and global optimality is not guaranteed for the problem, we transform the model to posynomial form. Finally, the solution procedure is illustrated via a numerical example and a sensitivity analysis is presented.
Robust Branch-and-Cut-and-Price for the Capacitated Vehicle Routing Problem
Fukasawa, R.; Longo, H.; Lysgaard, Jens
2006-01-01
The best exact algorithms for the Capacitated Vehicle Routing Problem (CVRP) have been based on either branch-and-cut or Lagrangean relaxation/column generation. This paper presents an algorithm that combines both approaches: it works over the intersection of two polytopes, one associated...... with a traditional Lagrangean relaxation over q-routes, the other defined by bound, degree and capacity constraints. This is equivalent to a linear program with exponentially many variables and constraints that can lead to lower bounds that are superior to those given by previous methods. The resulting branch......-and-cut-and-price algorithm can solve to optimality all instances from the literature with up to 135 vertices. This more than doubles the size of the instances that can be consistently solved....
Applications of decision analysis and related techniques to industrial engineering problems at KSC
Evans, Gerald W.
1995-01-01
This report provides: (1) a discussion of the origination of decision analysis problems (well-structured problems) from ill-structured problems; (2) a review of the various methodologies and software packages for decision analysis and related problem areas; (3) a discussion of how the characteristics of a decision analysis problem affect the choice of modeling methodologies, thus providing a guide as to when to choose a particular methodology; and (4) examples of applications of decision analysis to particular problems encountered by the IE Group at KSC. With respect to the specific applications at KSC, particular emphasis is placed on the use of the Demos software package (Lumina Decision Systems, 1993).
Approximation Algorithms for Optimal Decision Trees and Adaptive TSP Problems
Gupta, Anupam; Nagarajan, Viswanath; Ravi, R
2010-01-01
We consider the problem of constructing optimal decision trees: given a collection of tests which can disambiguate between a set of $m$ possible diseases, each test having a cost, and the a-priori likelihood of the patient having any particular disease, what is a good adaptive strategy to perform these tests to minimize the expected cost to identify the disease? We settle the approximability of this problem by giving a tight $O(\\log m)$-approximation algorithm. We also consider a more substantial generalization, the Adaptive TSP problem. Given an underlying metric space, a random subset $S$ of cities is drawn from a known distribution, but $S$ is initially unknown to us--we get information about whether any city is in $S$ only when we visit the city in question. What is a good adaptive way of visiting all the cities in the random subset $S$ while minimizing the expected distance traveled? For this problem, we give the first poly-logarithmic approximation, and show that this algorithm is best possible unless w...
Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
Yongmei Liu
2014-01-01
Full Text Available Under dual-channel structure, the free-riding behavior based on different service levels between online channel and offline channel cannot be avoided, which would lead to channel unfairness. This study implies that the dual-channel supply chain is built up by online channel controlled by manufacturer and traditional channel controlled by retailer, respectively. Under this channel structure, we rebuild the linear demand function considering free-riding behavior and modify the pricing model based on channel fairness. Then the influences of fair factor and free-riding behavior on manufacturer and retailer pricing and performance are discussed. Finally, we propose some numerical analysis to provide some valuable recommendations for manufacturer and retailer improving channel management performance.
Ciccarelli, Maria; Griffiths, Mark D; Nigro, Giovanna; Cosenza, Marina
2016-12-01
In the psychological literature, many studies have investigated the neuropsychological and behavioral changes that occur developmentally during adolescence. These studies have consistently observed a deficit in the decision-making ability of children and adolescents. This deficit has been ascribed to incomplete brain development. The same deficit has also been observed in adult problem and pathological gamblers. However, to date, no study has examined decision-making in adolescents with and without gambling problems. Furthermore, no study has ever examined associations between problem gambling, decision-making, cognitive distortions and alcohol use in youth. To address these issues, 104 male adolescents participated in this study. They were equally divided in two groups, problem gamblers and non-problem gamblers, based on South Oaks Gambling Screen Revised for Adolescents scores. All participants performed the Iowa gambling task and completed the Gambling Related Cognitions Scale and the alcohol use disorders identification test. Adolescent problem gamblers displayed impaired decision-making, reported high cognitive distortions, and had more problematic alcohol use compared to non-problem gamblers. Strong correlations between problem gambling, alcohol use, and cognitive distortions were observed. Decision-making correlated with interpretative bias. This study demonstrated that adolescent problem gamblers appear to have the same psychological profile as adult problem gamblers and that gambling involvement can negatively impact on decision-making ability that, in adolescence, is still developing. The correlations between interpretative bias and decision-making suggested that the beliefs in the ability to influence gambling outcomes may facilitate decision-making impairment.
Feng Wang
2014-01-01
Full Text Available This paper studies a single-period supply chain with a buy-back contract under a Stackelberg game model, in which the supplier (leader decides on the wholesale price, and the retailer (follower responds to determine the retail price and the order quantity. We analytically investigate the decentralized retailer’s optimal decision. Our results demonstrate that the retailer has a unique optimal simultaneous decision on the retail price and the order quantity, under a mild restriction on the demand distribution. Moreover, as it can be shown that the decentralized supply chain facing price-sensitive random demand cannot be coordinated with buy-back contract, we propose a scheme for the system to achieve Pareto-improvement. Theoretical analysis suggests that there exists a unique Pareto-equilibrium for the supply chain. In particular, when the Pareto-equilibrium is reached, the supply chain is coordinated. Numerical experiments confirm our results.
Comparing branch-and-price algorithms for the Multi-Commodity k-splittable Maximum Flow Problem
Gamst, Mette; Petersen, Bjørn
2012-01-01
-Protocol Label Switching. The problem has previously been solved to optimality through branch-and-price. In this paper we propose two exact solution methods both based on an alternative decomposition. The two methods differ in their branching strategy. The first method, which branches on forbidden edge sequences...
Decision-Making and Problem-Solving as a Well-Being Indicator among Adolescents
Cenkseven-Onder, Fulya; Colakkadiaglu, Oguzhan
2013-01-01
The purpose of this study is to examine subjective well-being with respect to problem solving, self-esteem in decision-making and decision-making styles in adolescents. For this purpose, "Positive and Negative Affect Scale", "Satisfaction with Life Scale", "Adolescent Decision Making Scale" and "Problem Solving…
GDP核算中的价格指数及存在问题研究%The Research of Price Indexes of GDP Accounting and the Existing Problems
赵红
2005-01-01
This paper briefly introduces the price indices and their compilation methods employed in estimating constant GDP by production approach, together with a presentation of various Chinese style price indices of year-on-year type, year-to-year type and fixed-base type published in the China Statistical Yearbook. Through comparative analysis, difference between the above Chinese style price indices and theircounterparts corresponding to the relevant international standard terminology is revealed through presenting the price index formula respectively. In addition, this paper also summarizes the method of constant GDP estimation and the system of price statistics implemented in China and shows the underlying problems accompanied with the existing system and practice of the price statistics in the National Bureau of Statistics of China (NBS). Finally, recommendations and suggestions on the improvement of the international comparability of GDP at constant prices and price index compilation exercises are proposed for special consideration by the authorities concerned.
Strategy Design on Online Leasing Problem with Decreasing Purchasing Price%购买价格递减的在线租赁问题策略设计
胡茂林; 徐维军
2015-01-01
In this paper, we use the method of competitive analysis for online problem to study an online leasing problem with decreasing price for purchasing.By analyzing the properties of cost functions concerned, the opti-mal offline strategy and an online strategy are given.By way of the analysis of competitive rate, we prove online strategy to be the unique optimal strategy for this problem, and competitive rate of this strategy is strictly decrea-sing with the preferential rate of purchasing price.The result shows that taking the factors of the decreasing of purchasing price will improve the competitive rate of online strategy and thereby increase the decision-making ef-ficiency.%运用在线问题与竞争分析的方法研究了购买价格递减的在线租赁问题。通过揭示相关费用函数的性质，先后给出了最优离线策略以及在线策略。通过竞争比分析，证明了我们给出的在线策略是该问题唯一最优策略，而且该策略的竞争比随购买价格的优惠率的增加呈严格递减趋势。竞争分析结果表明考虑购买价格递减因素能够改进在线策略的竞争比从而提高决策效率。
Liu Lingli; Lü Jiahuan
2006-01-01
This article has suggested that high oil price could loom many years in the future and has analyzed the impact of this trend on the oil product mix and petroleum refining industry in China. This article has also put forward measures for sharpening the international competitive edge of China's petroleum refining industry to cope with the challenges of high oil price.
Rimoldi, Horacio J. A.; And Others
A technique using information and decision-making theories to evaluate problem solving tactics is presented. In problem solving, the process of solution is evaluated by investigating the questions that the subject doing the problem solving asks. The sequence of questions asked is called a tactic. It is assumed that: (1) tactics are the observable…
Rimoldi, Horacio J. A.; And Others
A technique using information and decision-making theories to evaluate problem solving tactics is presented. In problem solving, the process of solution is evaluated by investigating the questions that the subject doing the problem solving asks. The sequence of questions asked is called a tactic. It is assumed that: (1) tactics are the observable…
Baimei Yang; Chunyan Gao; Na Liu; Liang Xu
2015-01-01
We consider a dynamic inventory control and pricing optimization problem in a periodic-review inventory system with price adjustment cost. Each order occurs with a fixed ordering cost; the ordering quantity is capacitated. We consider a sequential decision problem, where the firm first chooses the ordering quantity and then the sale price to maximize the expected total discounted profit over the sale horizon. We show that the optimal inventory control is partially charac...
Multi-unit price promotions and their impact on purchase decisions and sales
Drechsler, Salome; Leeflang, Peter S. H.; Bijmolt, Tammo H. A.; Natter, Martin
2017-01-01
Purpose - The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level purchase probability and quantity decision. Design/methodology/approach - The paper combines two empirical studies. Study 1
A Major New Court Decision: Are Blurred Boundaries Worth the Price on the Eligibility Side?
Zirkel, Perry A.
2017-01-01
Legally, the ultimate criterion for eligibility under the Individuals with Disabilities Education Act (IDEA) is whether the child needs special education. A new decision by the Ninth Circuit Court of Appeals suggests that providing various interventions and accommodations in general education might mean that a child who meets the criteria for any…
Kleijnen, S; Lipska, I; Leonardo Alves, T; Meijboom, K; Elsada, A; Vervölgyi, V; d'Andon, A; Timoney, A; Leufkens, H G; De Boer, A; Goettsch, W G
2016-01-01
BACKGROUND: There is a debate on the added clinical value of new, expensive, anticancer treatments. Among European decision makers, the relevance of commonly used endpoints in trials, especially overall survival (OS), progression-free survival (PFS) and quality of life (QoL) varies, leading to the a
Pricing and ordering decisions of two competing supply chains with different composite policies
Taleizadeh, Ata Allah; Noori-Daryan, Mahsa; Govindan, Kannan
2016-01-01
(QPR) policy, which is the combination of quantity discount and partial-refund customer return policies, to the retailers. The main objective of the paper is to determine the optimal selling prices and the order quantities of the manufacturer and the retailers in each chain in presence of different...... chains. Here, we consider two competing supply chains where both chains launch the same product under different brands to the market by applying different composite coordinating strategies. Each supply chain comprises one manufacturer and a group of non-competing retailers where the manufacturer receives...... raw materials from an outside supplier and transforms them into a finished product; then, the products are sold to the retailers to satisfy the demands of market. In the first chain, a composite (QFF) policy, which is the combination of quantity and freight discount, as well as free shipping quantity...
Samuelson, Paul A.
1971-01-01
Because a commodity like wheat can be carried forward from one period to the next, speculative arbitrage serves to link its prices at different points of time. Since, however, the size of the harvest depends on complicated probability processes impossible to forecast with certainty, the minimal model for understanding market behavior must involve stochastic processes. The present study, on the basis of the axiom that it is the expected rather than the known-for-certain prices which enter into all arbitrage relations and carryover decisions, determines the behavior of price as the solution to a stochastic-dynamic-programming problem. The resulting stationary time series possesses an ergodic state and normative properties like those often observed for real-world bourses. PMID:16591903
Problems in the decision making process: a review.
Evans, D
1990-12-01
Decision making is an integral part of the intensive care nurse's role, but many factors can disrupt this process. It is important that the nurse has an understanding of how defective decision making patterns can develop. Experience, the role of the nurse, uncertainty and conflict all exert major influences on the decision making process. The conditions that determine what type of decision making pattern emerges are; the seriousness of the risks as a result of the decision; if there is hope of finding a better solution; and how much time is available to search for the solution. The patterns that may emerge include vigilance, complacency, defensive avoidance and hypervigilance. Vigilance is said to be the optimum pattern, this is when all alternatives to the decision are analysed and interpreted in an unbiased manner. Defensive avoidance is the decision makers attempt to avoid or postpone the stress of the decision. It is manifested by procrastination, shifting of responsibility or rationalisation. Hypervigilance, or panic, represents a frantic search for a solution and a shifting back and forth between alternatives with a failure to see obvious faults in the possible solutions.
Robenek, Tomáš; Umang, Nitish; Bierlaire, Michel
2014-01-01
the integrated problem. In the proposed model, the master problem is formulated as a set-partitioning problem, and subproblems to identify columns with negative reduced costs are solved using mixed integer programming. To obtain sub-optimal solutions quickly, a metaheuristic approach based on critical......In this research, two crucial optimization problems of berth allocation and yard assignment in the context of bulk ports are studied. We discuss how these problems are interrelated and can be combined and solved as a single large scale optimization problem. More importantly we highlight...... the differences in operations between bulk ports and container terminals which highlights the need to devise specific solutions for bulk ports. The objective is to minimize the total service time of vessels berthing at the port. We propose an exact solution algorithm based on a branch and price framework to solve...
Luboš Bartoš
2009-01-01
Full Text Available The concept of harvester technology is understood as a fully mechanized harvesting technology for the purpose of timber logging, which means timber handling, extraction and forwarding or skidding. This complete harvesting technology consists of two different assignments of accommodated, specialized logging machines – harvester and forwarder.This timber harvesting technology currently represents a state-of-the-art technology in logging and transport of timber in forestry. This is because the efficiency of the “harvester and forwarder” combination is several times higher than that of the commonly used technology of “power saw and tractor” (Lukáč, T., 2005. Other important elements that prevail with harvester technologies are a not negligible and high degree of labour hygiene as well as a significant decrease of environmental load influencing the environment.This paper analyzes prices of works related to timber harvesting and skidding in the selected forest stands of concerned workplaces.
Titus SUCIU
2013-01-01
In individual companies, price is one significant factor in achieving marketing success. In many purchase situations, price can be of great importance to customers. Marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Management should decide whether to charge the same price to all similar buyers of identical quantities of a product (a one-price strategy) or to set different prices (a flexible price strategy). Many organizations, especially retai...
Titus SUCIU
2013-01-01
In individual companies, price is one significant factor in achieving marketing success. In many purchase situations, price can be of great importance to customers. Marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Management should decide whether to charge the same price to all similar buyers of identical quantities of a product (a one-price strategy) or to set different prices (a flexible price strategy). Many organizations, especially retai...
Kurdhi, N. A.; Irsanianto, S. T.; Sutanto
2017-01-01
In this paper, we consider a production-inventory supply chain system with single-manufacturer and single-retailer. There are many types of contract that guarantee the supply chain. However, the administrative costs of the contract are usually neglected in real situation. The additional gain from integration may not cover the extra administrative costs may not addressed to supply chain. Therefore, a Stackelberg game and RFM policy are examined in order to investigate its performance on supply chain. The RFM policy is applied because its administrative costs are lower than othe policies. Although RFM policy is not capable of coordinating the channel, it leads to considerable improvements over the channel. The purpose of this research is to present a model of integrated policy, in which the goal is to maximize the whole system profit, and to evaluate decentralized-Stackelberg and RFM policies, in which individual firms in the supply chain have their own objectives and decisions to optimize.
Optimization-based decision support systems for planning problems in processing industries
Claassen, G.D.H.
2014-01-01
Summary Optimization-based decision support systems for planning problems in processing industries Nowadays, efficient planning of material flows within and between supply chains is of vital importance and has become one of the most challenging problems for decision support in practice. The
Optimization-based decision support systems for planning problems in processing industries
Claassen, G.D.H.
2014-01-01
Summary Optimization-based decision support systems for planning problems in processing industries Nowadays, efficient planning of material flows within and between supply chains is of vital importance and has become one of the most challenging problems for decision support in practice. The tremendo
Optimization-based decision support systems for planning problems in processing industries
Claassen, G.D.H.
2014-01-01
Summary Optimization-based decision support systems for planning problems in processing industries Nowadays, efficient planning of material flows within and between supply chains is of vital importance and has become one of the most challenging problems for decision support in practice. The tremendo
Geodemografic segmentation as instrument of social problems decision (on an example Sumy
L.M. Khomenko
2011-01-01
Full Text Available The article is devoted the decision of social problems with the help of geodemografic segmentation. The factors of consumer grouping are considered. It was conducted the research with the purpose of determination of population knowledge level about infectious diseases. It was developed recommendation to the decision of the problem taking into account the geodemografic features of regions.
Uchoa, Eduardo; Fukasawa, Ricardo; Lysgaard, Jens
2008-01-01
This paper presents a robust branch-cut-and-price algorithm for the Capacitated Minimum Spanning Tree Problem (CMST). The variables are associated to q-arbs, a structure that arises from a relaxation of the capacitated prize-collecting arborescence problem in order to make it solvable in pseudo...... or the size of the LPs that are actually solved. Computational results on benchmark instances from the OR-Library show very significant improvements over previous algorithms. Several open instances could be solved to optimality....
Uchoa, Eduardo; Fukasawa, Ricardo; Lysgaard, Jens;
This paper presents a robust branch-cut-and-price algorithm for the Capacitated Minimum Spanning Tree Problem (CMST). The variables are associated to q-arbs, a structure that arises from a relaxation of the capacitated prize-collecting arborescence problem in order to make it solvable in pseudo-p...... or the size of the LPs that are actually solved. Computational results on benchmark instances from the OR-Library show very signicant improvements over previous algorithms. Several open instances could be solved to optimality....
R.P. Faber (Riemer)
2010-01-01
textabstractThis thesis studies price data and tries to unravel the underlying economic processes of why firms have chosen these prices. It focuses on three aspects of price setting. First, it studies whether the existence of a suggested price has a coordinating effect on the prices of firms. Second
Fazil, A; Rajic, A; Sanchez, J; McEwen, S
2008-11-01
In the food safety arena, the decision-making process can be especially difficult. Decision makers are often faced with social and fiscal pressures when attempting to identify an appropriate balance among several choices. Concurrently, policy and decision makers in microbial food safety are under increasing pressure to demonstrate that their policies and decisions are made using transparent and accountable processes. In this article, we present a multi-criteria decision analysis approach that can be used to address the problem of trying to select a food safety intervention while balancing various criteria. Criteria that are important when selecting an intervention were determined, as a result of an expert consultation, to include effectiveness, cost, weight of evidence, and practicality associated with the interventions. The multi-criteria decision analysis approach we present is able to consider these criteria and arrive at a ranking of interventions. It can also provide a clear justification for the ranking as well as demonstrate to stakeholders, through a scenario analysis approach, how to potentially converge toward common ground. While this article focuses on the problem of selecting food safety interventions, the range of applications in the food safety arena is truly diverse and can be a significant tool in assisting decisions that need to be coherent, transparent, and justifiable. Most importantly, it is a significant contributor when there is a need to strike a fine balance between various potentially competing alternatives and/or stakeholder groups.
供应中断风险下采购与定价决策分析%Analysis of Outsourcing and Pricing Decisions Under Supply Disruption
何波; 张霞
2015-01-01
供应中断是供应链上的企业可能面临的问题，运用合理的采购策略可以帮助企业有效缓解供应中断风险。本文研究了供应中断下供应商和制造商之间的纵向竞争和两个制造商之间的横向竞争问题。供应商制定批发价，两个制造商采用不同的采购策略进行产量博弈，其中一个制造商采用紧急双源订货策略，另一个采用可靠单源订货策略。论文采用了多阶段博弈模型，分析了制造商之间的合谋与竞争两种行为，求出了供应商和制造商的最优决策，比较了这两种行为对供应商和制造商的影响。通过数值分析，讨论了成本参数和可靠性参数对于最优订货量的影响以及对于采用不同订货策略的制造商期望利润的影响。%Supply disruptions often appear in supply chain.Using appropriate outsourcing strategy can help firms to mitigate supply disruption risks effectively.In this paper, we study a supply chain with vertical competition between upstream suppliers and downstream manufacturers and horizontal competition between downstream manu-facturers under supply disruption.The suppliers make wholesale price first, and then two manufacturers imple-ment different outsourcing strategies to manage supply disruption risks and compete with each other.One manu-facturer implements contingency dual sourcing strategy while the other uses sole sourcing strategy.We propose a multi-stage game model to solve this problem.We analyze two behaviors-Collusion and Cournot between manu-facturers.The optimal pricing decision of supplier and optimal ordering decisions of manufacturers are derived. The effects of two behaviors-Collusion and Cournot between manufacturers on supplier and manufacturer are investigated.Through numerical computation, the impact of cost and reliability on optimal ordering and expected profits of two manufacturers are analyzed.
Anghileri, D.; Giuliani, M.; Castelletti, A.
2012-04-01
There is a general agreement that one of the most challenging issues related to water system management is the presence of many and often conflicting interests as well as the presence of several and independent decision makers. The traditional approach to multi-objective water systems management is a centralized management, in which an ideal central regulator coordinates the operation of the whole system, exploiting all the available information and balancing all the operating objectives. Although this approach allows to obtain Pareto-optimal solutions representing the maximum achievable benefit, it is based on assumptions which strongly limits its application in real world contexts: 1) top-down management, 2) existence of a central regulation institution, 3) complete information exchange within the system, 4) perfect economic efficiency. A bottom-up decentralized approach seems therefore to be more suitable for real case applications since different reservoir operators may maintain their independence. In this work we tested the consequences of a change in the water management approach moving from a centralized toward a decentralized one. In particular we compared three different cases: the centralized management approach, the independent management approach where each reservoir operator takes the daily release decision maximizing (or minimizing) his operating objective independently from each other, and an intermediate approach, leading to the Nash equilibrium of the associated game, where different reservoir operators try to model the behaviours of the other operators. The three approaches are demonstrated using a test case-study composed of two reservoirs regulated for the minimization of flooding in different locations. The operating policies are computed by solving one single multi-objective optimal control problem, in the centralized management approach; multiple single-objective optimization problems, i.e. one for each operator, in the independent case
Interactive operational decision making : Purchasing situations & mutual liability problems
Groote Schaarsberg, M.
2014-01-01
Three chapters of this dissertation deal with three different types of interactive purchasing situations, in which multiple buying organizations interact with similar (or possibly the same) suppliers for the procurement of the same commodity. Decisions to be made in interactive purchasing concern if
Effects of Problem Frame and Gender on Principals' Decision Making
Miller, Paul M.; Fagley, Nancy S.; Casella, Nancy E.
2009-01-01
Research indicates people's decisions can sometimes be influenced by seemingly trivial differences in the "framing" (i.e., wording) of alternative options. The tendency to prefer risk averse options when framed positively and risky options when framed negatively is known as the framing effect. The current study examined the susceptibility of…
Mammalian Toxicology Testing: Problem Definition Study, AMTR Protocol/Pricing Report.
1981-04-01
and water must be provided ad used in the reproductive study. Strains cesarean section approximately I day libitum. Pregnant females must be with low...justification for not providing such specific stain tested must be submitted. be sacrificed at time of cesarean section material must be submitted...This approach allows for comparisons of costs between various performance alternatives and uses a standardized pricing approach that can be updated
Software Support for Multiple Criteria Decision Making Problems
Josef Jablonský
2009-12-01
Full Text Available Data envelopment analysis (DEA and multiple criteria decision making (MCDM models are one of the most often used modelling techniques in managerial practice. Both techniques evaluate the given set of alternatives by several decision making criteria. Availability of appropriate simple software tools for mentioned models is a necessary condition for their wider real application. The paper presents two freeware software systems that are available for downloading on the author's web pages. The first system is the DEA Excel solver and the second one is Sanna - application of multi-criteria evaluation of alternatives. DEA Excel solver covers all basic DEA models and uses internal MS Excel optimization solver. The application includes standard envelopment models with constant and variable returns to scale including superefficiency models. As the second software system the paper presents a simple MS Excel based application Sanna for multiple criteria evaluation of alternatives using several main MCDM methods (WSA, ELECTRE I and III, PROMETHHEE, ORESTE, TOPSIS and MAPPAC.
Fetene, Gebeyehu Manie
such as electricity, transport (con- gestion), water and telecommunication. Linear and non-linear peak load pricing alternatives have been suggested to curb this problem, particularly when demand is cyclical (Mohsenian-Rad and Leon-Garcia, 2010; Tan and Varaiya, 1993; Chao et al., 1986; Finsinger; Roberts, 1979...... of electricity. The electric vehicle (EV) users choice of time of charging problem under PLP is different from that of general households using energy for house appliances since there is uncertain cost to the former as- sociated with likelihood occurrence of unanticipated trips such as visiting hospital...... and commuting to lately informed social events, etc. In this paper, we consider EV user’s choice of time of charging problem when there is PLP of electricity used for charging the battery of EVs. Specifically, this paper aims to present a model of optimal time of charging when EV users have to trade-of between...
Florina Guadalupe Arredondo Trapero
2010-10-01
Full Text Available The articles objective is to demonstrate that a socially responsible consumer is interested of being informed about Corporate Social Responsibility (CSR practices and is also willing to pay a higher price for a product made with CSR. Criteria of price as well as the interest of being informed about CSR practices were the two variables analyzed for the Chi-Square test. Even though CSR was declared as an important issue for the majority of participants, products made with CSR hasn’t achieved much influence in the buying decision making or in the need of being informed about the CSR practices. The need to create social consciousness for consumers to promote CSR practices through the buying decision making was also demonstrated.
Junio Andret
2013-11-01
Full Text Available This research aim to analyze why the number of convenience store keep increasing by identify the dominant factors which are product, price, place, promotion and service quality that affect customer buying decision of convenience store in Bekasi. This research also as an input to help smaller traders in having better performance in future market. This research involves 300 Bekasi populations to obtain the required data. Then the questionnaire result analyzed with SPPS statistics which are frequency, descriptive statistics, validity and reliability test, multi regression analysis, correlation analysis, F- Test and Analysis of Variance (ANOVA in order to see the extend factors influential to customer buying decision. At the end, researcher proves that the most of customers comes to convenience store because of the price offered, kind of promotion, and also service quality provided.
Modelling, Transformations, and Scaling Decisions in Constrained Optimization Problems
1976-03-01
applied nonlinear programming /2§/ , and are given in Appendix A of this thesis along with the original source. They will be referred to as Himmelblau ...j (19) 44 Therefore z=v . In x. can be replaced in the formulation by: 3 i z=Y i "Yj (20) Himmelblau problem 16 has numerous cross product terms in...optimum point, and thus are not recommended. 69 APPENDIX A Test Problems Used with GRG and SUMT Codes A. HIMMELBLAU PROBLEM 16 Source: J.D. Pearson
A Bayesian analysis of human decision-making on bandit problems
Steyvers, M.; Lee, M.D.; Wagenmakers, E.-J.
2009-01-01
The bandit problem is a dynamic decision-making task that is simply described, well-suited to controlled laboratory study, and representative of a broad class of real-world problems. In bandit problems, people must choose between a set of alternatives, each with different unknown reward rates, to ma
Analogical Reasoning as a Decision Support Principle for Weakly-Structured Marketing Problems
N.A.P. Althuizen (Niek)
2006-01-01
textabstractMany marketing problems are weakly-structured. From the psychological literature, we know that analogical reasoning is an effective problem-solving method in weakly-structured decision situations. That is, when confronted with such a problem, one of the first things managers will natural
ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING
TÜNDE VERES
2011-01-01
Full Text Available The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from management accounting aspects to show out the role of the accounting system in the short term and long term pricing and transfer pricing decisions.
Evolutionary decision-makings for the dynamic weapon-target assignment problem
CHEN Jie; XIN Bin; PENG ZhiHong; DOU LiHua; ZHANG Juan
2009-01-01
The dynamic weapon-target assignment (DWTA) problem is an important issue In the field of military command and control.An asset-based DWTA optimization model was proposed with four kinds of constraints considered,including capability constraints,strategy constraints,resource constraints and engagement feasibility constraints.A general "virtual"representation of decisions was presented to facilitate the generation of feasible decisions.The representation is in essence the permutation of all assignment pairs.A construction procedure converts the permutations into real feasible decisions.In order to solve this problem,three evolutionary decision-making algorithms,Including a genetic algorithm and two memeitc algorithms,were developed.Experimental results show that the memetic algorithm based on greedy local search can generate obviously better DWTA decisions,especially for large-scale problems,than the genetic algorithm and the memetic algorithm based on steepest local search.
Feng Junwen
2006-01-01
To overcome the limitations of the traditional surrogate worth trade-off (SWT) method and solve the multiple criteria decision making problem more efficiently and interactively, a new method labeled dual worth trade-off (DWT) method is proposed. The DWT method dynamically uses the duality theory related to the multiple criteria decision making problem and analytic hierarchy process technique to obtain the decision maker's solution preference information and finally find the satisfactory compromise solution of the decision maker. Through the interactive process between the analyst and the decision maker, trade-off information is solicited and treated properly, the representative subset of efficient solutions and the satisfactory solution to the problem are found. The implementation procedure for the DWT method is presented. The effectiveness and applicability of the DWT method are shown by a practical case study in the field of production scheduling.
Efficient protocols for point-convex hull inclusion decision problems
Yun Ye
2010-05-01
Full Text Available Secure Multi-party Computation (SMC is dedicated to solve trust problems in cooperative computing with each participant’s private data. Privacy Preserving Computational Geometry (PPCG is a special area in SMC and being widely researched. In the real world, PPCG theories can be found being used in various occasions such as military cooperation, commercial competitions and so on. Point-convex hull inclusion problem is a practical case in PPCG and has its profound values. This paper firstly investigates the point inclusion problem with static convex hull, and then marches on to the cases of active convex hull, including the parallel moving and rotating ones. To solve the problems above, we propose a secure protocol to determine the relative position of a private point and a private convex hull in the first place. Compared with previous solutions, our protocols perform better in efficiency, especially when the number of the convex hull’s point is large.
On the dynamic consistency of hierarchical risk-averse decision problems
Befekadu, Getachew K.; Pasiliao, Eduardo L.
2016-01-01
In this paper, we consider a risk-averse decision problem for controlled-diffusion processes, with dynamic risk measures, in which there are two risk-averse decision makers (i.e., {\\it leader} and {\\it follower}) with different risk-averse related responsibilities and information. Moreover, we assume that there are two objectives that these decision makers are expected to achieve. That is, the first objective being of {\\it stochastic controllability} type that describes an acceptable risk-exp...
Strategic and non-strategic problem gamblers differ on decision-making under risk and ambiguity.
Lorains, Felicity K; Dowling, Nicki A; Enticott, Peter G; Bradshaw, John L; Trueblood, Jennifer S; Stout, Julie C
2014-07-01
To analyse problem gamblers' decision-making under conditions of risk and ambiguity, investigate underlying psychological factors associated with their choice behaviour and examine whether decision-making differed in strategic (e.g., sports betting) and non-strategic (e.g., electronic gaming machine) problem gamblers. Cross-sectional study. Out-patient treatment centres and university testing facilities in Victoria, Australia. Thirty-nine problem gamblers and 41 age, gender and estimated IQ-matched controls. Decision-making tasks included the Iowa Gambling Task (IGT) and a loss aversion task. The Prospect Valence Learning (PVL) model was used to provide an explanation of cognitive, motivational and response style factors involved in IGT performance. Overall, problem gamblers performed more poorly than controls on both the IGT (P = 0.04) and the loss aversion task (P = 0.01), and their IGT decisions were associated with heightened attention to gains (P = 0.003) and less consistency (P = 0.002). Strategic problem gamblers did not differ from matched controls on either decision-making task, but non-strategic problem gamblers performed worse on both the IGT (P = 0.006) and the loss aversion task (P = 0.02). Furthermore, we found differences in the PVL model parameters underlying strategic and non-strategic problem gamblers' choices on the IGT. Problem gamblers demonstrated poor decision-making under conditions of risk and ambiguity. Strategic (e.g. sports betting, poker) and non-strategic (e.g. electronic gaming machines) problem gamblers differed in decision-making and the underlying psychological processes associated with their decisions. © 2014 Society for the Study of Addiction.
Criteria for assessing problem solving and decision making in complex environments
Orasanu, Judith
1993-01-01
Training crews to cope with unanticipated problems in high-risk, high-stress environments requires models of effective problem solving and decision making. Existing decision theories use the criteria of logical consistency and mathematical optimality to evaluate decision quality. While these approaches are useful under some circumstances, the assumptions underlying these models frequently are not met in dynamic time-pressured operational environments. Also, applying formal decision models is both labor and time intensive, a luxury often lacking in operational environments. Alternate approaches and criteria are needed. Given that operational problem solving and decision making are embedded in ongoing tasks, evaluation criteria must address the relation between those activities and satisfaction of broader task goals. Effectiveness and efficiency become relevant for judging reasoning performance in operational environments. New questions must be addressed: What is the relation between the quality of decisions and overall performance by crews engaged in critical high risk tasks? Are different strategies most effective for different types of decisions? How can various decision types be characterized? A preliminary model of decision types found in air transport environments will be described along with a preliminary performance model based on an analysis of 30 flight crews. The performance analysis examined behaviors that distinguish more and less effective crews (based on performance errors). Implications for training and system design will be discussed.
Children's Use of Meta-Cognition in Solving Everyday Problems: Children's Monetary Decision-Making
Lee, Chwee Beng; Koh, Noi Keng; Cai, Xin Le; Quek, Choon Lang
2012-01-01
The purpose of this study was to understand how children use meta-cognition in their everyday problem-solving, particularly making monetary decisions. A particular focus was to identify components of meta-cognition, such as regulation of cognition and knowledge of cognition observed in children's monetary decision-making process, the roles of…
Shopping Context and Consumers' Mental Representation of Complex Shopping Trip Decision Problems
B.G.C. Dellaert (Benedict); T.A. Arentze (Theo); H.J.P. Timmermans (Harry)
2008-01-01
textabstractDepending on the shopping context, consumers may develop different mental representations of complex shopping trip decision problems to help them interpret the decision situation that they face and evaluate alternative courses of action. To investigate these mental representations and h
Children's Use of Meta-Cognition in Solving Everyday Problems: Children's Monetary Decision-Making
Lee, Chwee Beng; Koh, Noi Keng; Cai, Xin Le; Quek, Choon Lang
2012-01-01
The purpose of this study was to understand how children use meta-cognition in their everyday problem-solving, particularly making monetary decisions. A particular focus was to identify components of meta-cognition, such as regulation of cognition and knowledge of cognition observed in children's monetary decision-making process, the roles of…
Use of decision trees to value investigation strategies for soil pollution problems
Okx, J.P.; Stein, A.
2000-01-01
Remediation of a contaminated site usually requires costly actions, and several clean-up and sampling strategies may have to be compared by those involved in the decision-making process. In this paper several common environmental pollution problems have been addressed by using probabilistic decision
Use of decision trees to value investigation strategies for soil pollution problems
Okx, J.P.; Stein, A.
2000-01-01
Remediation of a contaminated site usually requires costly actions, and several clean-up and sampling strategies may have to be compared by those involved in the decision-making process. In this paper several common environmental pollution problems have been addressed by using probabilistic decision
Shopping Context and Consumers' Mental Representation of Complex Shopping Trip Decision Problems
B.G.C. Dellaert (Benedict); T.A. Arentze (Theo); H.J.P. Timmermans (Harry)
2008-01-01
textabstractDepending on the shopping context, consumers may develop different mental representations of complex shopping trip decision problems to help them interpret the decision situation that they face and evaluate alternative courses of action. To investigate these mental representations and
Shopping Context and Consumers' Mental Representation of Complex Shopping Trip Decision Problems
B.G.C. Dellaert (Benedict); T.A. Arentze (Theo); H.J.P. Timmermans (Harry)
2008-01-01
textabstractDepending on the shopping context, consumers may develop different mental representations of complex shopping trip decision problems to help them interpret the decision situation that they face and evaluate alternative courses of action. To investigate these mental representations and h
Systemic decision making fundamentals for addressing problems and messes
Hester, Patrick T
2017-01-01
This expanded second edition of the 2014 textbook features dedicated sections on action and observation, so that the reader can combine the use of the developed theoretical basis with practical guidelines for deployment. It also includes a focus on selection and use of a dedicated modeling paradigm – fuzzy cognitive mapping – to facilitate use of the proposed multi-methodology. The end goal of the text is a holistic, interdisciplinary approach to structuring and assessing complex problems, including a dedicated discussion of thinking, acting, and observing complex problems. The multi-methodology developed is scientifically grounded in systems theory and its accompanying principles, while the process emphasizes the nonlinear nature of all complex problem-solving endeavors. The authors’ clear and consistent chapter structure facilitates the book’s use in the classroom.
A modified interactive procedure to solve multi-objective group decision making problem
Mohammad Izadikhah
2014-01-01
Multi-objective optimization and multiple criteria decision making problems are the process of designing the best alternative by considering the incommensurable and conflicting objectives simultaneously. One of the first interactive procedures to solve multiple criteria decision making problems is STEM method. In this paper we propose a modified interactive procedure based on STEM method by calculating the weight vector of objectives which emphasize that more important objectives be closer to...
An Efficient Imperialist Competitive Algorithm for Solving the QFD Decision Problem
Xue Ji
2016-01-01
Full Text Available It is an important QFD decision problem to determine the engineering characteristics and their corresponding actual fulfillment levels. With the increasing complexity of actual engineering problems, the corresponding QFD matrixes become much huger, and the time spent on analyzing these matrixes and making decisions will be unacceptable. In this paper, a solution for efficiently solving the QFD decision problem is proposed. The QFD decision problem is reformulated as a mixed integer nonlinear programming (MINLP model, which aims to maximize overall customer satisfaction with the consideration of the enterprises’ capability, cost, and resource constraints. And then an improved algorithm G-ICA, a combination of Imperialist Competitive Algorithm (ICA and genetic algorithm (GA, is proposed to tackle this model. The G-ICA is compared with other mature algorithms by solving 7 numerical MINLP problems and 4 adapted QFD decision problems with different scales. The results verify a satisfied global optimization performance and time performance of the G-ICA. Meanwhile, the proposed algorithm’s better capabilities to guarantee decision-making accuracy and efficiency are also proved.
Assessing the impact of global price interdependencies.
Richter, Anke
2008-01-01
Documented launch delays and the ensuing debate over their underlying causes have focused on assessment from the individual country's perspective. Seen in a larger game theoretical framework this may cause problems, because although the countries see an individual game, the pharmaceutical firm sees a repeated linked game. The links are due to external reference pricing and parallel trade. Behaviours that are optimal in the single, individual game (for either the country or the pharmaceutical firm) may no longer be optimal when considering the global repeated game. A theoretical mixed integer linear model of the firm's launch and pricing decisions is presented along with examples wherein international price dependencies most likely played a role. This model can help countries understand the implication of their external reference pricing policies on the global repeated pricing game. Understanding the behaviour of the pharmaceutical firm in this global context aids countries in designing policies to maximize the welfare of their citizens.
Solving SAT problem by heuristic polarity decision-making algorithm
无
2007-01-01
This paper presents a heuristic polarity decision-making algorithm for solving Boolean satisfiability (SAT). The algorithm inherits many features of the current state-of-the-art SAT solvers, such as fast BCP, clause recording, restarts, etc. In addition, a preconditioning step that calculates the polarities of variables according to the cover distribution of Karnaugh map is introduced into DPLL procedure, which greatly reduces the number of conflicts in the search process. The proposed approach is implemented as a SAT solver named DiffSat. Experiments show that DiffSat can solve many "real-life" instances in a reasonable time while the best existing SAT solvers, such as Zchaff and MiniSat, cannot. In particular, DiffSat can solve every instance of Bart benchmark suite in less than 0.03 s while Zchaff and MiniSat fail under a 900 s time limit. Furthermore, DiffSat even outperforms the outstanding incomplete algorithm DLM in some instances.
Beachfront nourishment decisions: the "sucker-free rider" problem
Balcerak, Ernie
2013-06-01
Coastal communities and beachfront property owners often respond to erosion by adding sand to restore local beaches. However, beach nourishment alters shoreline dynamics, not only at the replenishment site but also in adjacent coastal regions, as natural coastal processes shift sand from one location to another. The result is that "sucker" communities pay to build up their beaches, but that replenishment also helps protect the coastlines of "free rider" communities. The sucker-free rider situation is an example of a classic problem studied in economics and game theory frameworks.
基于感知质量的自有品牌产品定价决策%Pricing decision of the private label based on perceived quality
王华清; 李静静
2011-01-01
零售商能否实现开发自有品牌的目的,取决于如何对自有品牌产品的定价决策,而产品实际质量和消费者感知质量是影响该问题的关键因素,据此从新的角度分别构建了只存在制造商品牌、制造商品牌和零售商自有品牌共存的Stackelberg博弈模型,研究表明:当零售商采取绝对定价时,其定价决策不受制造商品牌的影响,只跟感知质量、产品成本以及消费者忠诚度有关；当零售商采取跟随定价时,定价差异取决于消费者对两类品牌感知质量差异和实际质量差异的共同作用,且感知质量差异的影响幅度较大；同时,零售商可根据自有品牌的感知质量、消费者忠诚度及生产成本,对制造商产品采取不同的定价决策.%Whether the retailer can achieve the purpose of private label development depends on the pricing decisions on products of private label. And actual quality and consumer perceived quality are the key factors impact the price of it. So this article constructed Stackelberg models in cases of only existence of manufacturing brands and coexistence of manufacturing brand and private label respectively from a new viewpoint. The research shows that: when the retailer prices the private label all by it's own factors, the price is affected by its perceived quality, the average cost and the consumer's loyalty, not the factors of manufacturing brand. When the retailer prices the private label following the manufacturing brand, the price is determined by the differences of the actual quality and consumer perceived quality between the two brands. Besides, the affection of perceived quality is bigger. Furthermore, the retailer will adopt different pricing decisions based on different perceived quality, consumer's loyalty and the cost of private label.
A branch-and-price algorithm for the capacitated vehicle routing problem with stochastic demands
Christiansen, Christian Holk; Lysgaard, Jens
2007-01-01
This article introduces a new exact algorithm for the Capacitated Vehicle Routing Problem with Stochastic Demands (CVRPSD). The CVRPSD can be formulated as a Set Partitioning Problem and it is shown that the associated column generation subproblem can be solved using a dynamic programming scheme...
A Branch-and-Price Algorithm for Two Multi-Compartment Vehicle Routing Problems
Mirzaei, Samira; Wøhlk, Sanne
2016-01-01
Despite the vast body of literature on vehicle routing problems, little attention has been paid to multi-compartment vehicle routing problems that investigate transportation of different commodities on the same vehicle, but in different compartments. In this project, we present two strategically...
Kowatsch, Tobias; Maass, Wolfgang
2010-01-01
Several studies have investigated the relevance of Decision Support Systems (DSS) on purchase behaviour. Even though these studies show several aspects of the utility of DSS, they are limited to online purchase situations, the use of one DSS strategy and one DSS technology. In this paper, we therefore develop a theoretical model that measures the impact of DSS strategies relative to a given purchase problem and an adequate use of DSS technology on consumers' perceived confidence in purchase d...
A branch-and-price algorithm for the capacitated facility location problem
Klose, Andreas; Görtz, Simon
2007-01-01
to compute optimal solutions to large or difficult problem instances by means of a branch-and-bound procedure information about such a primal fractional solution can be advantageous. In this paper, a (stabilized) column generation method is, therefore, employed in order to solve a corresponding master......The capacitated facility location problem (CFLP) is a well-known combinatorial optimization problem with applications in distribution and production planning. It consists in selecting plant sites from a finite set of potential sites and in allocating customer demands in such a way as to minimize...... operating and transportation costs. A number of solution approaches based on Lagrangean relaxation and subgradient optimization has been proposed for this problem. Subgradient optimization does not provide a primal (fractional) optimal solution to the corresponding master problem. However, in order...
The computer-aided design of a servo system as a multiple-criteria decision problem
Udink ten Cate, A.J.
1986-01-01
This paper treats the selection of controller gains of a servo system as a multiple-criteria decision problem. In contrast to the usual optimization-based approaches to computer-aided design, inequality constraints are included in the problem as unconstrained objectives. This considerably simplifies
Dynamic and stochastic planning problems with online decision making : a novel class of models
Cremers, M.L.A.G.
2009-01-01
In this thesis we study planning problems in the area of routing and scheduling by means of mathematical models and (numerical) optimization. Characteristic for this class of problems is that here-and-now decisions have to be made while only probabilistic information is available on the relevant
Dynamic and stochastic planning problems with online decision making : a novel class of models
Cremers, M.L.A.G.
2009-01-01
In this thesis we study planning problems in the area of routing and scheduling by means of mathematical models and (numerical) optimization. Characteristic for this class of problems is that here-and-now decisions have to be made while only probabilistic information is available on the relevant pla
Mathematics at economic university: problems and ways of their decision
Sergei Udin
2015-02-01
Full Text Available In article problems of teaching of mathematical disciplines at economic universities are considered. The analysis of a state of preparation of entrants last years on the basis of researches PISA and the report of UNESCO on formation in the world is carried out. It is shown that in the conditions of an insufficient financ-ing of education in the Russian Federation and low level of preparation of entrants in the basic subjects, it is necessary to optimize curriculums and to use new educational technologies. It is offered to use the free software designed for carrying out mathematical and econometrics calculations, unique system of genera-tion of examinations and tests, the modern language of programming optimized for use by students of economic specialties, profound studying of tabular processor Microsoft Excel.
Assessing ecosystem services for informing land-use decisions: a problem-oriented approach
Johannes Förster
2015-09-01
Full Text Available Assessments of ecosystem services (ES, that aim at informing decisions on land management, are increasing in number around the globe. Despite selected success stories, evidence for ES information being used in decision making is weak, partly because ES assessments are found to fall short in targeting information needs by decision makers. To improve their applicability in practice, we compared existing concepts of ES assessments with focus on informing land use decisions and identified opportunities for enhancing the relevance of ES assessments for decision making. In a process of codesign, building on experience of four projects in Brazil, China, Madagascar, and Vietnam, we developed a step-wise approach for better targeting ES assessments toward information needs in land use decisions. Our problem-oriented approach aims at (1 structuring ES information according to land use problems identified by stakeholders, (2 targeting context-specific ES information needs by decision makers, and (3 assessing relevant management options. We demonstrate how our approach contributes to making ES assessments more policy relevant and enhances the application of ES assessments as a tool for decision support.
Problems of engineering education and their decision involving industry
R. P. Simonyants
2014-01-01
Full Text Available In Russia, the problems of engineering education are connected with political and economic upheavals of the late last century. At the same time, some leading engineering universities in Russia, such as the Bauman Moscow State Technical University (BMSTU were resistant to the damaging effects of the crisis. But the methodology and experience of their effective work are insufficiently known.The problems of international engineering school development are also known. The first UNESCO World Report on Engineering (2010 assesses the state of engineering education as follows: worldwide shortage of engineers is a threat to the development of society.Based on the analysis of the current state of engineering education in the world and tendencies of development an urgency of its modernization with the focus on the enhancement of practical component has been shown.Topical problems associated with innovations and modernization in engineering education in the field of aerospace technology were discussed at the first international forum, which was held in Beijing Beyhanskom University (BUAA on 8 - 9 September 2012. The author attended this forum and presented his impressions of its work. It was noted that the role of Russia in the global process to form and develop engineering education is ignored. This opinion sounded, generally, in all speakers' reports, apart from ours.The President BUAA, a Professor Jinpeng Huai, and a Professor Qiushi Li. talked about the problems of building the engineering education system in China. It was emphasized that in China a study of engineering education techniques was motivated by the fact that quality assurance of engineering education at U.S. universities does not meet requirements.Attention is drawn to Dr. David Wisler's report who is a representative of the U.S. aerospace industry (General Electric Aviation corporation, actively promoting networking technology "initiative CDIO».The assessment of the engineering education
A comparison of representations for discrete multi-criteria decision problems.
Gettinger, Johannes; Kiesling, Elmar; Stummer, Christian; Vetschera, Rudolf
2013-01-01
Discrete multi-criteria decision problems with numerous Pareto-efficient solution candidates place a significant cognitive burden on the decision maker. An interactive, aspiration-based search process that iteratively progresses toward the most preferred solution can alleviate this task. In this paper, we study three ways of representing such problems in a DSS, and compare them in a laboratory experiment using subjective and objective measures of the decision process as well as solution quality and problem understanding. In addition to an immediate user evaluation, we performed a re-evaluation several weeks later. Furthermore, we consider several levels of problem complexity and user characteristics. Results indicate that different problem representations have a considerable influence on search behavior, although long-term consistency appears to remain unaffected. We also found interesting discrepancies between subjective evaluations and objective measures. Conclusions from our experiments can help designers of DSS for large multi-criteria decision problems to fit problem representations to the goals of their system and the specific task at hand.
Decision trees and decision committee applied to star/galaxy separation problem
Vasconcellos, Eduardo Charles
Vasconcellos et al [1] study the efficiency of 13 diferente decision tree algorithms applied to photometric data in the Sloan Digital Sky Digital Survey Data Release Seven (SDSS-DR7) to perform star/galaxy separation. Each algorithm is defined by a set fo parameters which, when varied, produce diferente final classifications trees. In that work we extensively explore the parameter space of each algorithm, using the set of 884,126 SDSS objects with spectroscopic data as the training set. We find that Functional Tree algorithm (FT) yields the best results by the mean completeness function (galaxy true positive rate) in two magnitude intervals:14=19 (82.1%). We compare FT classification to the SDSS parametric, 2DPHOT and Ball et al (2006) classifications. At the faintest magnitudes (r > 19), our classifier is the only one that maintains high completeness (>80%) while simultaneously achieving low contamination ( 2.5%). We also examine the SDSS parametric classifier (psfMag - modelMag) to see if the dividing line between stars and galaxies can be adjusted to improve the classifier. We find that currently stars in close pairs are often misclassified as galaxies, and suggest a new cut to improve the classifier. Finally, we apply our FT classifier to separate stars from galaxies in the full set of 69,545,326 SDSS photometric objects in the magnitude range 14 train six FT classifiers with random selected objects from the same 884,126 SDSS-DR7 objects with spectroscopic data that we use before. Both, the decision commitee and our previous single FT classifier will be applied to the new ojects from SDSS data releses eight, nine and ten. Finally we will compare peformances of both methods in this new data set. [1] Vasconcellos, E. C.; de Carvalho, R. R.; Gal, R. R.; LaBarbera, F. L.; Capelato, H. V.; Fraga Campos Velho, H.; Trevisan, M.; Ruiz, R. S. R.. Decision Tree Classifiers for Star/Galaxy Separation. The Astronomical Journal, Volume 141, Issue 6, 2011.
Erick S. Lee
2008-01-01
The United States Supreme Court in recent years has taken an increased interest in patent law, making a number of key decisions in the areas of injunctions1, licensing2, patentable subject matter3, and the standards of determining obviousness.4 In the current 2007-2008 term, the Court has already granted certiorari to consider the boundaries of the patent exhaustion doctrine; a case closely watched by legal commentators and observers.5 The Court's attention has also been drawn to the intersec...
Magnolia Tilca
2014-10-01
Full Text Available The aim of this paper is to study the existence of the solution for the overlapping generations model, using fixed point theorems in metric spaces endowed with a graph. The overlapping generations model has been introduced and developed by Maurice Allais (1947, Paul Samuelson (1958, Peter Diamond (1965 and so on. The present paper treats the case presented by Edmond (2008 in (Edmond, 2008 for a continuous time. The theorem of existence of the solution for the prices fixed point problem derived from the overlapping generations model gives an approximation of the solution via the graph theory. The tools employed in this study are based on applications of the Jachymski fixed point theorem on metric spaces endowed with a graph (Jachymski, 2008
Decision-Making and Problem-Solving Approaches in Pharmacy Education.
Martin, Lindsay C; Donohoe, Krista L; Holdford, David A
2016-04-25
Domain 3 of the Center for the Advancement of Pharmacy Education (CAPE) 2013 Educational Outcomes recommends that pharmacy school curricula prepare students to be better problem solvers, but are silent on the type of problems they should be prepared to solve. We identified five basic approaches to problem solving in the curriculum at a pharmacy school: clinical, ethical, managerial, economic, and legal. These approaches were compared to determine a generic process that could be applied to all pharmacy decisions. Although there were similarities in the approaches, generic problem solving processes may not work for all problems. Successful problem solving requires identification of the problems faced and application of the right approach to the situation. We also advocate that the CAPE Outcomes make explicit the importance of different approaches to problem solving. Future pharmacists will need multiple approaches to problem solving to adapt to the complexity of health care.
Cargo Revenue Management: Bid-Prices for a 0-1 Multi Knapsack Problem
K. Pak; R. Dekker (Rommert)
2004-01-01
textabstractRevenue management is the practice of selecting those customers that generate the maximum revenue from a fixed and perishable capacity. Cargo revenue management differs from the well-known passenger revenue management problem by the fact that its capacity constraint is 2-dimensional, i.e
Disjunctive cuts in a branch-and-price algorithm for the capacitated vehicle routing problem
Røpke, Stefan
This talk presents computational results that show the usefulness of the general-purpose valid inequalities disjunctive cuts when applied to the CVRP. Results indicate that the disjunctive cuts are able to reduce the gap between lower bound and upper bound more than state-of-the-art problem speci...
Cargo Revenue Management: Bid-Prices for a 0-1 Multi Knapsack Problem
K. Pak; R. Dekker (Rommert)
2004-01-01
textabstractRevenue management is the practice of selecting those customers that generate the maximum revenue from a fixed and perishable capacity. Cargo revenue management differs from the well-known passenger revenue management problem by the fact that its capacity constraint is 2-dimensional,
ERDOS 1.0. Emergency response decisions as problems of optimal stopping
Pauwels, N
1998-11-01
The ERDOS-software is a stochastic dynamic program to support the decision problem of preventively evacuating the workers of an industrial company threatened by a nuclear accident taking place in the near future with a particular probability. ERDOS treats this problem as one of optimal stopping: the governmental decision maker initially holds a call option enabling him to postpone the evacuation decision and observe the further evolution of the alarm situation. As such, he has to decide on the optimal point in time to exercise this option, i.e. to take the irreversible decision to evacuate the threatened workers. ERDOS allows to calculate the expected costs of an optimal intervention strategy and to compare this outcome with the costs resulting from a myopic evacuation decision, ignoring the prospect of more complete information at later stages of the decision process. Furthermore, ERDOS determines the free boundary, giving the critical severity as a function of time that will trigger immediate evacuation in case it is exceeded. Finally, the software provides useful insights in the financial implications of loosing time during the initial stages of the decision process (due to the gathering of information, discussions on the intervention strategy and so on)
The Communicative Multiagent Team Decision Problem: Analyzing Teamwork Theories and Models
Pynadath, D V; 10.1613/jair.1024
2011-01-01
Despite the significant progress in multiagent teamwork, existing research does not address the optimality of its prescriptions nor the complexity of the teamwork problem. Without a characterization of the optimality-complexity tradeoffs, it is impossible to determine whether the assumptions and approximations made by a particular theory gain enough efficiency to justify the losses in overall performance. To provide a tool for use by multiagent researchers in evaluating this tradeoff, we present a unified framework, the COMmunicative Multiagent Team Decision Problem (COM-MTDP). The COM-MTDP model combines and extends existing multiagent theories, such as decentralized partially observable Markov decision processes and economic team theory. In addition to their generality of representation, COM-MTDPs also support the analysis of both the optimality of team performance and the computational complexity of the agents' decision problem. In analyzing complexity, we present a breakdown of the computational complexit...
Reconciliation as a tool for decision making within decision tree related to insolvency problems
Tomáš Poláček
2016-05-01
Full Text Available The paper draws on the results of previous studies recoverability of creditor’s claims, where it was research from debtor’s point of view and his/her debts on the Czech Republic financial market. The company, which fell into a bankruptcy hearing, has several legislatively supported options by Insolvency act how to deal with this situation and repay creditors claim. Each of the options has been specified as a variant of a decision-making tree. This paper is focused on last option of evaluation (the first was solving evaluation with already known probabilities, and the second with co called water probability with ignorance of previous statistical findings – The reconciliation. The reconciliation is the concept of the total ignorance represented by metaheuristics helps to incorporate a set of isolated specific information items within a general framework of metaheuristics which generates all missing information items. The result is then focused on the comparison and evaluation of the best ways to repay the debt, also including solution for the future continuation of the company currently in liquidation and quantification of percentage refund of creditors claim. A realistic case study is presented in full details.
High Drug Prices Hurt Everyone
Halpenny, Genevieve M.
2016-01-01
Turing Pharmaceuticals raised the price of Daraprim 5,500%, illustrating how the absence of competition in the sale of low-volume, low-price drugs can lead to price gouging. For patented medicines, society allows supracompetitive pricing to incentivize innovation. However, Gilead���s decision to sell Sovaldi for $84,000 per course of treatment raised the question whether society must accept any price set by the patent holder. Unfortunately, these incidents illustrate a br...
The marketing innovative decisions justification based on the diagnosis of management problem areas
O.F. Gryshchenko
2015-06-01
Full Text Available The aim of the article. The aim of the article is to develop the theoretical and methodical bases of the process of development, acceptance and implementation of marketing innovative decisions based on a diagnosis of the management problem areas of the enterprise. The results of the analysis. A scientific and methodical approach to the stages formation of the process of development, acceptance and implementation of marketing innovative decisions is developed. The author proposes to distinguish three enlarged stages (problematic, inventive and executive. Each stage has it’s formalized result: problematic – cause-and-result map of managerial problems; inventive – marketing innovative decision; executive – the effect of marketing innovative decision market implementation. A scientific and methodical approach to marketing innovative decisions selecting by the results of problem areas diagnostics based on the integrated risk and quality levels indicators is offered. The choice of marketing innovative decisions from a set of alternatives is proposed to carry out on the basis of criteria-based assessment. In the framework of this methodological approach the criterion is seen as measure of validity and compliance of the marketing innovative decision to objective reality. For the formation the system of the decision selection indicators the author proposes to carry out the division of criteria into two groups: criteria for assessing the level of risk and criteria for assessing the level of quality. The list of criteria is not fixed, it’s selection is carried out depending on the specific requirements of the economic situation in which the process of development, acceptance and implementation of marketing innovative decisions takes place. The number of indicators also isn’t regulated – it may be reduced or supplemented. The final selection of marketing innovative decision from the list of alternatives is proposed to carry out by building the
Erick S. Lee
2008-04-01
Full Text Available The United States Supreme Court in recent years has taken an increased interest in patent law, making a number of key decisions in the areas of injunctions1, licensing2, patentable subject matter3, and the standards of determining obviousness.4 In the current 2007-2008 term, the Court has already granted certiorari to consider the boundaries of the patent exhaustion doctrine; a case closely watched by legal commentators and observers.5 The Court's attention has also been drawn to the intersection of intellectual property law and antitrust law, with two cases in that legal realm having been recently decided. In Illinois Tool Works v. Independent Ink, the Court considered whether the presumption that patent owners have market power in the subject matter of their patents is "applicable in the antitrust context when a seller conditions its sale of a patented product . . . on the purchase of a second product."6
Tough decisions faced by people living with HIV: a literature review of psychosocial problems.
Bravo, Paulina; Edwards, Adrian; Rollnick, Stephen; Elwyn, Glyn
2010-01-01
People living with HIV have faced a new situation since the arrival of the antiretroviral treatments. HIV has become a long-term condition, which not only affects physical health, but also causes psychological and social problems because of stigma and discrimination. These challenges present many decisions and dilemmas for people living with HIV, which involve complex emotional and psychological issues. The aim of this study was to examine the psychosocial decision needs of people living with HIV. To undertake the literature review, a search strategy was designed. Sources included databases (Web of Science, Scopus, ProQuest, and PubMed) as well as electronic journals (AIDS and Behavior, AIDS Care, and Social Science and Medicine). The following search terms were used: (HIV) AND (decision making; OR decision need; OR decision) AND (psychosocial; OR psychological; OR social). All languages were included, using articles from 1990 to 2009. The search was conducted from September 2008 to November 2009, and identified 123 articles. After analysis, 46 articles were included for detailed assessment. The results show that people living with HIV face three key decisions: (i) whether or not to disclose their diagnosis to others; (ii) decisions about adherence to treatments; and (iii) decisions about sexual activity and desires about parenthood. Problems associated with these decisions often result in isolation and mental illness such as depression and anxiety, lack of access to social support, and refusal to seek treatment. Despite the importance of HIV and its public health impact, few studies have considered the psychosocial needs of people living with HIV, but the results demonstrated the burden as a consequence of those needs and that greater support would be of benefit to face them in an effective way. Therefore, the results of this review highlight the requirement to develop interventions to support the psychosocial needs of people living with HIV, to accurately reflect
Achillas, Charisios; Moussiopoulos, Nicolas; Karagiannidis, Avraam; Banias, Georgias; Perkoulidis, George
2013-02-01
Problems in waste management have become more and more complex during recent decades. The increasing volumes of waste produced and social environmental consciousness present prominent drivers for environmental managers towards the achievement of a sustainable waste management scheme. However, in practice, there are many factors and influences - often mutually conflicting - criteria for finding solutions in real-life applications. This paper presents a review of the literature on multi-criteria decision aiding in waste management problems for all reported waste streams. Despite limitations, which are clearly stated, most of the work published in this field is reviewed. The present review aims to provide environmental managers and decision-makers with a thorough list of practical applications of the multi-criteria decision analysis techniques that are used to solve real-life waste management problems, as well as the criteria that are mostly employed in such applications according to the nature of the problem under study. Moreover, the paper explores the advantages and disadvantages of using multi-criteria decision analysis techniques in waste management problems in comparison to other available alternatives.
DEFINING ASPECTS OF SETTING THE PRICE ACCORDING TO THE CUSTOMER AND THE COMPETITION
Adrian MICU
2006-01-01
Full Text Available Few managers, even those specializing in marketing, think strategically aboutpricing. Consider your experiences and observations. Were the pricingdecisions you encountered made in reaction to a pricing problem, or werethey planned to exploit an opportunity? Did the company arrive at thosedecisions by analyzing only the immediate impact on profitability, or did it alsoconsider how the reactions of customers or competitors might change thepicture? Did the decisions focus purely on price, or did they involve alignmentof a marketing program to support the pricing decision? Few companiesproactively manage their business to create the conditions that foster moreprofitable pricing.
初始排污权定价的分散决策模型%Decentralized Decision Model of Initial Emission Permit Pricing
张坤; 孙涛; 戴红军
2013-01-01
This paper uses the decentralized decision model to price emission permit in primary market,and proves the reasonableness of this method.It uses 'trial and error method' which is characterized by multi-object and multi-round to get the price of emission permit when knowing total emission permit quantity,and gives the steps of this method.The method has the advantages of good operability and low cost,and is a reasonable way for pricing emission permit in a perfectly competitive market.%提出利用分散决策模型进行排污权在一级市场的定价,并证明了其合理性.在明确排污权总量的条件下,利用“多对象、多轮次”的“试错法”得到排污权的价格,并给出具体的实施步骤.结果显示:该方法具有操作性强、成本低的优点,是一种可在完全竞争市场中进行排污权定价的合理方法.
New empirical generalizations on the determinants of price elasticity
Bijmolt, THA; Van Heerde, HJ; Pieters, RGM
The importance of pricing decisions for firms has fueled an extensive stream of research on price elasticities. In an influential meta-analytical study, Tellis (1988) summarized price elasticity research findings until 1986. However, empirical generalizations on price elasticity require
Expert Team Decision-Making and Problem Solving: Development and Learning
Simona Tancig
2009-12-01
Full Text Available Traditional research of decision-making has not significantly contributed towards better understanding of professional judgment and decisions in practice. Researchers dealing with decision-making in various professions and natural settings initiated new perspectives called naturalistic, which put the expert in the focus of research and the expertise thus entered the core of decision-making research in natural situations.Expert team is more than a group of experts. It is defined as a group of interdependent team members with a high level of task related expertise and the mastering of team processes.There have been several advances in understanding of expertise and the team. By combining theories, models, and empirical evidence we are trying to explain effectiveness and adaptation of expert teams in problem-solving and decision-making in complex and dynamic situations.A considerable research has been devoted to finding out what are the characteristics of experts and expert teams during their optimal functioning. These characteristics are discussed as input, process and output factors. As input variables the cognitive, social-affective, and motivational characteristics are presented. Process variables encompass individual and team learning, problem solving and decision-making as presented in Kolb’s cycle of learning, in deeper structures of dialogue and discussion, and in phenomena of collaboration, alignment, and distributed cognition. Outcome variables deal with task performance – activities.
ERCAN, Merve; YILDIRIM, Meral; OTURAK, Çiğdem; EREN, Tamer
2017-01-01
Strategy games occupy a very important place in gaming industry. In this study, characterselection is made according to the rival team which is created by developing scenarios for Summoner's Rift inLeague of Legends (LOL) strategy game and Howling Abyss modes. In order to solve the problem, AnalyticalHierarchy Process (AHP), TOPSIS and PROMETHEE methods are utilized from multicriteria decision makingmethods in Summoner's Rift and Howling Abyss mode. For the problem, five alternative...
Breast cancer therapy planning - a novel support concept for a sequential decision making problem.
Scherrer, Alexander; Schwidde, Ilka; Dinges, Andreas; Rüdiger, Patrick; Kümmel, Sherko; Küfer, Karl-Heinz
2015-09-01
Breast cancer is the most common carcinosis with the largest number of mortalities in women. Its therapy comprises a wide spectrum of different treatment modalities a breast oncologist decides about for the individual patient case. These decisions happen according to medical guide lines, current scientific publications and experiences acquired in former cases. Clinical decision making therefore involves the time-consuming search for possible therapy options and their thorough testing for applicability to the current patient case.This research work addresses breast cancer therapy planning as a multi-criteria sequential decision making problem. The approach is based on a data model for patient cases with therapy descriptions and a mathematical notion for therapeutic relevance of medical information. This formulation allows for a novel decision support concept, which targets at eliminating observed weaknesses in clinical routine of breast cancer therapy planning.
A modified interactive procedure to solve multi-objective group decision making problem
Mohammad Izadikhah
2014-08-01
Full Text Available Multi-objective optimization and multiple criteria decision making problems are the process of designing the best alternative by considering the incommensurable and conflicting objectives simultaneously. One of the first interactive procedures to solve multiple criteria decision making problems is STEM method. In this paper we propose a modified interactive procedure based on STEM method by calculating the weight vector of objectives which emphasize that more important objectives be closer to ideal one. We use the AHP and TOPSIS method to find these weights and develop a multi-objective group decision making procedure. Therefore the presented method tries to increase the rate of satisfactoriness of the obtained solution. Finally, a numerical example for illustration of the new method is given to clarify the main results developed in this paper.
Toman, David; Weddel, Grant Edwin
2001-01-01
We present a decision procedure for the logical implication problem of a boolean complete DL dialect that includes attributes roles inverse roles and a new concept constructor that is capable of expressing a variety of equality and order generating dependencies The procedure underlies a mapping...
Archbald, Doug
2010-01-01
This article offers lessons from an initiative refashioning the doctoral thesis in an education leadership program. The program serves a practitioner clientele; most are teachers and administrators. The new model for the thesis emphasizes leadership, problem solving, decision making, and organizational improvement. The former model was a…
The Computer-Aided Design of a Servo System as a Multiple-Criteria Decision Problem
Udink ten Cate, A.J.
1984-01-01
The task of selecting the controller gains of a servo system is formulated as a multiple-criteria decision problem. The criteria are based on the unit step response of the system. The approach described here differs from the usual approach in that design constraints on the trajectories are included as additional criteria. Simulation runs are used to evaluate the criteria.
Archbald, Doug
2010-01-01
This article offers lessons from an initiative refashioning the doctoral thesis in an education leadership program. The program serves a practitioner clientele; most are teachers and administrators. The new model for the thesis emphasizes leadership, problem solving, decision making, and organizational improvement. The former model was a…
Myopic Loss Aversion: Demystifying the Key Factors Influencing Decision Problem Framing
Hardin, Andrew M.; Looney, Clayton Arlen
2012-01-01
Advancement of myopic loss aversion theory has been hamstrung by conflicting results, methodological inconsistencies, and a piecemeal approach toward understanding the key factors influencing decision problem framing. A series of controlled experiments provides a more holistic view of the variables promoting myopia. Extending the information…
Monika Kukar-Kinney
2015-01-01
Full Text Available Marketers frequently use promotions to enhance sales and increase consumers’ perceptions of value. However, most promotions usually come with restrictions, such as time expiration, quantity or product model restriction, etc. In the present research, the effect of the stage in the purchase process when the consumer finds out about the restriction is investigated. The findings indicate that the later in the purchase process the consumer discovers the restriction, the greater is the perception that the effort invested into the purchase is wasted, consequently resulting in lower promotion and price fairness. This effect is mediated through the feeling of entitlement to the promotional price and the inferred negative retailer’s motive for the promotion. Theoretical and managerial implications are also discussed.
Ruppel, H. [Ovag Energie AG, Friedberg (Germany); Lerch, F. [Carl Kliem Energy GmbH, Kelkheim (Germany)
2008-10-06
It is important to master the current challenges in energy and cost management together with the customer. Prices have increased, as has volatility. Not even small enterprises can escape the necessity of thinking about suitable strategies. In this situation modern energy suppliers with their portfolio of services can present themselves as a partner and lay the foundation for a long-term cooperation. This will go far beyond merely debating about prices. Thus energy suppliers can rid themselves of their scapegoat image and present themselves as what they are: problem solvers.
Nikša Jajac
2013-02-01
Full Text Available The aim of this paper is to present Decision Support Concept (DSC for management of construction projects. Focus of our research is in application of multicritera methods (MCM to decision making in planning phase of construction projects (related to the problem of construction sites selection. The problem is identified as a significant one from many different aspects such as economic aspect, civil engineering aspect, etc. what indicates the necessity for evaluation of multiple sites by several different criteria. Therefore, DSC for construction site selection based on PROMETHEE method is designed. In order to define the appropriate criteria, their weights and preference functions for the concept, three groups of stakeholders are involved (investors, construction experts and experts for real estate market in its design. AHP method has been used for determination of criteria weights. The model has been tested on the problem of site selection for construction of residential-commercial building in four largest cities in Croatia.
2004-01-01
Before one can talk about solutions to the “milk pricing problem” one needs to identify its many dimensions and then target solutions to specific aspects of the problem. Is the problem one of supply outpacing demand on the national level? Is it the importation of milk components and products from other countries? Is it the importation of dairy replacement heifers from Canada? For the Northeast is it the loss of the class 1 fluid differential relative to the upper Midwest in the federal milk m...
Vidal, Rene Victor Valqui
2009-01-01
making processes related to the agreement on action plans. Learning to design, plan, manage and facilitate conferences and workshops have also being another central activity. The main purpose of these conferences and workshops was not only problem structuring and decision making in connection...... contribute to long-term and sustainable development in these regions. The main tasks have been the organisation and facilitation of conferences and workshops to structure the problematic situation of identifying and designing innovative projects for the development of the community and to support decision...
Klibanov, Michael V.; Kuzhuget, Andrey V.; Golubnichiy, Kirill V.
2016-01-01
A new empirical mathematical model for the Black-Scholes equation is proposed to forecast option prices. This model includes new interval for the price of the underlying stock, new initial and new boundary conditions. Conventional notions of maturity time and strike prices are not used. The Black-Scholes equation is solved as a parabolic equation with the reversed time, which is an ill-posed problem. Thus, a regularization method is used to solve it. To verify the validity of our model, real market data for 368 randomly selected liquid options are used. A new trading strategy is proposed. Our results indicates that our method is profitable on those options. Furthermore, it is shown that the performance of two simple extrapolation-based techniques is much worse. We conjecture that our method might lead to significant profits of those financial insitutions which trade large amounts of options. We caution, however, that further studies are necessary to verify this conjecture.
Pricing for finished products of the enterprise: accounting and analytical aspect
N.L. Pravdyuk
2017-03-01
Full Text Available The pricing policy chosen by the enterprise in respect of goods and finished products of own production, has a decisive influence on the formation of financial results. In modern economic conditions we need to strengthen managerial decisions on the choice and carrying out price policy and a means of solving this problem is accounting. To determine the boundaries and competence of decision-making we analyzed the regulation of these terms and processes, as well as the dynamics of the stocks across sectors of the economy, the consumer price index, producer price index, the price index of realization of industrial products. Widely used data analytical reviews of the national Bank of Ukraine, enterprises' expectations regarding efficiency, the analysis of financial market indicators, etc. Established that the provision of information management pricing of goods shall conform to the requirements of the economy, by deepening complexity of accounting, to ensure the needs of consumers. According to the study substantiates the basics of accounting and analytical aspect of the pricing policy for finished products businesses. In the study of pricing policies in respect of goods in accounting and analytical aspect, we have established the following. The existing normative-legal acts and definitions of researchers on economic and accounting analysis of the concept give a sufficiently wide interpretation, which depends on the orientation and activity of the enterprise. Factors and points of influence on the efficiency of the pricing policy are: information support of process of pricing assessment of pricing factors, establish the objectives of price policy, assessment of customer demand, cost analysis, competition analysis, selecting a pricing method that measures the price adjustment, the evaluation price risk. The economic impact of the market environment is the most significant to the pricing policy of agricultural enterprises, which revealed the analysis
Internet resource pricing models
Xu, Ke; He, Huan
2013-01-01
This brief guides the reader through three basic Internet resource pricing models using an Internet cost analysis. Addressing the evolution of service types, it presents several corresponding mechanisms which can ensure pricing implementation and resource allocation. The authors discuss utility optimization of network pricing methods in economics and underline two classes of pricing methods including system optimization and entities' strategic optimization. The brief closes with two examples of the newly proposed pricing strategy helping to solve the profit distribution problem brought by P2P
基于物价指数上涨的最优在线租赁决策模型%Optimal online rental decision model with increasing price index
徐维军; 胡茂林
2013-01-01
In actual rental market, based on the inflation characteristics that the rental cost each period and purchase price of an equipment generally continue to rise as time goes, we propose online rental decision model with increasing price index. By using online algorithm, we first investigate optimal offline strategies, and then present deterministic optimal online strategy and its competitive ratio. From the view of improving competitive performance of online strategy, basing on the idea of risk control, we propose randomized online strategy and its competitive ratio, and strictly prove that this strategy' is an only randomized optimal online strategy for this problem by using analysis technique of two person zero-sum game. Moreover, we further point out that the competitive performance of deterministic and randomized optimal strategies are declined as the purchasing price of the equipment and the price index increase, respectively. Finally, numerical analysis illustrates that when there is inflation, the optimal decision date is relatively advanced, but the competitive performance of online strategy decreases significantly. Thus, it shows that the changes of price index have a significant effect on online rental decision.%考虑到现实租赁市场设备租金费用及购买价格随着时间推移总体呈现出持续性上涨特征,建立了基于物价指数上涨的在线租赁决策模型,首先分析了该问题的最优离线策略,其次运用在线算法理论给出了该问题的确定性最优在线租赁策略及其竞争比.从提高策略的竞争性能角度出发,基于风险控制思想,给出了该问题的随机性最优在线租赁策略及其竞争比,并运用两人零和博弈分析技巧严格证明了此策略是该问题的唯一随机性最优竞争策略.进一步指出了确定性和随机性最优策略的竞争性能均随着购买价格上涨而下降,也随着物价指数上涨而降低.最后,结合数值分析发现当存在通货
Thinking strategically about electricity pricing
Toulson, D. (Barakat and Chamberlin, Inc., Oakland, CA (United States))
1992-12-01
This report describes an approach by which utilities can view pricing from a strategic, market-oriented perspective. It begins by reviewing pricing practices found in private industry and develops a framework for utility rate design that incorporates both customer value and cost of service. A market intelligence system for gathering data relevant to pricing decisions is also briefly outlined.
2009-01-01
China adheres to a more flexible oil pricing mechanismBy ordering a hefty 9-percent price increase in gasoline and diesel, China is lending credibility to its pledges of a more market-oriented pricing system. The decision, announced by the National Development and Reform Commission
Novel combinatorial algorithm for the problems of fuzzy grey multi-attribute group decision making
Rao Congjun; Xiao Xinping; Peng Jin
2007-01-01
To study the fuzzy and grey information in the problems of multi-attribute group decision making, the basic concepts of both fuzzy grey numbers and grey interval numbers are given firstly, then a new model of fuzzy grey multi-attribute group decision making based on the theories of fuzzy mathematics and grey system is presented. Furthermore, the grey interval relative degree and deviation degree is defined, and both the optimistic algorithm of the grey interval relational degree and the algorithm of deviation degree minimization for solving this new model are also given. Finally, a decision making example to demonstrate the feasibility and rationality of this new method is given, and the results by using these two algorithms are uniform.
LI Tong; TENG Chun-xian; LI Hao-bai
2002-01-01
In the paper, it is discussed that the method on how to transform the multi-person bilevel multi-objective decision making problem into the equivalent generalized multi-objective decision making problem by using Kuhn-Tucker sufficient and necessary condition. In order to embody the decision maker's hope and transform it into single-objective decision making problem with the help of e-constraint method.Then we can obtain the global optimal solution by means of simulated annealing algorithm.
NP-completeness of weakly convex and convex dominating set decision problems
Joanna Raczek
2004-01-01
Full Text Available The convex domination number and the weakly convex domination number are new domination parameters. In this paper we show that the decision problems of convex and weakly convex dominating sets are \\(NP\\-complete for bipartite and split graphs. Using a modified version of Warshall algorithm we can verify in polynomial time whether a given subset of vertices of a graph is convex or weakly convex.
Multi-valued Neutrosophic Sets and its Application in Multi-criteria Decision-making Problems
Juan-juan Peng
2015-12-01
Full Text Available In recent years, hesitant fuzzy sets and neutrosophic sets have aroused the interest of researchers and have been widely applied to multi-criteria decisionmaking problems. The operations of multi-valued neutrosophic sets are introduced and a comparison method is developed based on related research of hesitant fuzzy sets and intuitionistic fuzzy sets in this paper. Furthermore, some multi-valued neutrosophic number aggregation operators are proposed and the desirable properties are discussed as well. Finally, an approach for multi-criteria decision-making problems was explored applying the aggregation operators. In addition, an example was provided to illustrate the concrete application of the proposed method.
Specialists and Generalists: Equilibrium Skill Acquisition Decisions in Problem-solving Populations
Anderson, Katharine A
2011-01-01
Many organizations rely on the skills of innovative individuals to create value, including academic and government institutions, think tanks, and knowledge-based firms. Roughly speaking, workers in these fields can be divided into two categories: specialists, who have a deep knowledge of a single area, and generalists, who have knowledge in a wide variety of areas. In this paper, I examine an individual's choice to be a specialist or generalist. My model addresses two questions: first, under what conditions does it make sense for an individual to acquire skills in multiple areas, and second, are the decisions made by individuals optimal from an organizational perspective? I find that when problems are single-dimensional, and disciplinary boundaries are open, all workers will specialize. However, when there are barriers to working on problems in other fields, then there is a tradeoff between the depth of the specialist and the wider scope of problems the generalist has available. When problems are simple, havi...
A risk-averse competitive newsvendor problem under the CVaR criterion
Wu, Meng; Zhu, Stuart X.; Teunter, Ruud H.
2014-01-01
We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand spli
A risk-averse competitive newsvendor problem under the CVaR criterion
Wu, Meng; Zhu, Stuart X.; Teunter, Ruud H.
2014-01-01
We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand
Zied Hajej
2015-01-01
Full Text Available Due to the expensive production equipment, many manufacturers usually lease production equipment with a warranty period during a finite leasing horizon, rather than purchasing them. The lease contract contains the possibility of obtaining an extended warranty for a given additional cost. In this paper, based on the forecasting production/maintenance optimization problem, we develop a mathematical model to study the lease contract with basic and extended warranty based on win-win relationship between the lessee and the lessor. The influence of the production rates in the equipment degradation consequently on the total cost by each side during the finite leasing horizon is stated in order to determine a theoretical condition under which a compromise-pricing zone exists under different possibilities of maintenance policies.
Developing a consumer pricing strategy.
Sturm, Arthur; Tiedemann, Frank
2013-05-01
Healthcare providers can learn a variety of pricing lessons from the retail market: For providers, wholesale pricing--"the price to play"--alone is not enough. Once a hospital or health system chooses a market position, the provider creates an expectation that must be met-consistently. Consumer loyalty is fluid, and the price of care or service is not always the motivator for choosing one organization over another; intangibles such as location and level of customer service also drive purchasing decisions.
Brand the Pricing: Critical Critique
Alam Kazmi, Syed Hasnain
2015-01-01
Brand pricing decision models and established theories in the marketing and econometrics focus typically on assuming the symmetric competing businesses. The empirical generalities are key for strategic marketplace planning. The significance of pricing to customer store and brand choices are always regarded as a widely known truth among marketing scholars and explains consumer’s role responding to their psychological representations of price rather than price itself. Scholars have ...
Cem Mehmet BAYDUR
2013-07-01
Full Text Available Buying a house is an important decision whether it is for investment or for accommodation. Every decision of investment means taking risks. When buying a flat is taken into consideration, it could be clearly seen that there is considerable difference between financially capitalized price and market price of it. In this article, I will be shown that this difference arises from growth expectation in future cash flows. In this article the buying decisions of three different groups of investors are investigated depending on their attitude towards risk taking, based on the growth expectation. Samples of this research are taken from Kötekli and Akçaova, districts of Muğla. The article discusses the actual growth expectations of investors and their buying decisions.
International Menu Costs and Price Dynamics
Raphael Schoenle
2010-01-01
In this paper, I analyze how the pricing behavior of firms systematically differs across domes- tic and export markets in terms of frequency, timing and size of price changes. First, I contrast domestic and export pricing decisions for the same products showing that (i) domestic producer prices change approximately twice as often as export producer prices, (ii) the probability of syn- chronized price adjustment across markets is 21% for upwards adjustments and 14% for downwards adjustments, (...
叶飞; 李彦平; 李怡娜
2012-01-01
"Price/delivery" competition decision-making issue under the demand price and time-sensitive between two risk aversion retailers is studied in this paper. First,"price/delivery" competition decision-making behavior is studied under Bertrand Game model. Then, "price/ delivery" competition decision-making behavior is studied under Stackelberg Game model. Finally,through numerical analysis we get the following conclusions: excessive risk aversion will put retailers at a competitive disadvantage (the prices are higher under Stackelberg duopoly Game than Bertrand duopoly Game.%研究了需求具有价格和时间均敏感条件下两个具有风险规避特性的零售商间价格与交货期竞争决策问题.首先,分析了Bertrand博弈模式下两个风险规避零售商间的价格与交货期决策行为；其次,分析了Stackelberg博弈模式下两个风险规避零售商间的价格与交货期决策行为；最后,通过数值分析发现零售商过度风险规避会导致在竞争中处于劣势,并发现在Stackelberg双寡头博弈下的价格高于Bertrand双寡头博弈下.
Gennady Ivanovich PerminovI; Leonova Nina Vjacheslavna
2014-01-01
Multicriteria group decision-making problems （DMP） require criteria weights. Assigning weights of importance of the criteria Face Decision-maker （DM） means, in essence, a priori purpose variant of the winner. There are a number of problematic situations involving a large number of criteria： （1） problems where the evaluation of alternatives represent the degree of satisfaction of basic performance requirements object bidders. Matrix estimates with different low variability and a very large number of requirements （criteria）; （2） the use of cognitive maps for modeling problem situations. If the alternatives are considered not only divisible strategy （options impact on concepts）, matrix estimates accepts small size. If the task is allowed to use an alternative strategy mixtures fraction （e.g., 25% influences on the concept 1, 50% influences on the concept 2, 10% influences on the concept 3, etc.）, the matrix ratings also gaining greater dimension. It is clear that in such cases the appointment criteria weights DMP becomes a problem.
Morteza Parhizkari
2013-07-01
Full Text Available Selection of an appropriate supplier along with planning a good inventory system has become an area of open research for the past few years. In this paper, we present a multi objective decision making supplier and inventory management model where two objectives including the quality and offering price of supplier are minimized, simultaneously. The proposed model is formulated as mixed integer programming and it is converted into an ordinary single objective function using Lp-Norm. In order to find efficient solution, we use NSGA-II as meta-heuristic technique and the performance of the proposed model is examined using some instances. The preliminary results indicate that both Lp-Norm and NSGA-II methods can be used to handle problems in various sizes.
Bisheng He
2014-01-01
Full Text Available A time-space network based optimization method is designed for high-speed rail train timetabling problem to improve the service level of the high-speed rail. The general time-space path cost is presented which considers both the train travel time and the high-speed rail operation requirements: (1 service frequency requirement; (2 stopping plan adjustment; and (3 priority of train types. Train timetabling problem based on time-space path aims to minimize the total general time-space path cost of all trains. An improved branch-and-price algorithm is applied to solve the large scale integer programming problem. When dealing with the algorithm, a rapid branching and node selection for branch-and-price tree and a heuristic train time-space path generation for column generation are adopted to speed up the algorithm computation time. The computational results of a set of experiments on China’s high-speed rail system are presented with the discussions about the model validation, the effectiveness of the general time-space path cost, and the improved branch-and-price algorithm.
[Terminally-ill patients' end of life problems and related decisions].
Sarmiento-Medina, María I; Vargas-Cruz, Sandra L; Velásquez-Jiménez, Claudia M; Sierra de Jaramillo, Margarita
2012-01-01
Describing terminally-ill patients and their relatives' preferences regarding end of life decisions, the underlying problems and reasons leading to them requesting support. This was a descriptive, exploratory analysis of the secondary sources in an NGO providing support for patients at the end of their lives. The most frequent choice was dying with dignity (43 %), followed by euthanasia (12 %). Some people asked for guidance on legal and ethical aspects regarding appropriate care for the terminally-ill. The pathologies accounting for 75 % of the diagnoses were chronic degenerative diseases, cancer and coma. The worsening of symptoms was the main reason for requesting support and uncontrollable pain more often led to the choice of euthanasia. Only 14 % of the patients had formalised their wills regarding their end of life decisions. The choice of dying with dignity was related to rejecting futile measures and therapeutic cruelty. Euthanasia was seen as an autonomous intentional action to end suffering. The family plays an essential role in making end of life decisions. End of life decisions are motivated by a perception of undignified conditions for patients due to progressive deterioration, poorly controlled pain, abandoning of chronic patients, therapeutic obstinacy and unnecessary measures that postpone death. They are taken within a complex context concerning religious dilemmas and ethical or legal concerns.
An application of prospect theory to a SHM-based decision problem
Bolognani, Denise; Verzobio, Andrea; Tonelli, Daniel; Cappello, Carlo; Glisic, Branko; Zonta, Daniele
2017-04-01
Decision making investigates choices that have uncertain consequences and that cannot be completely predicted. Rational behavior may be described by the so-called expected utility theory (EUT), whose aim is to help choosing among several solutions to maximize the expectation of the consequences. However, Kahneman and Tversky developed an alternative model, called prospect theory (PT), showing that the basic axioms of EUT are violated in several instances. In respect of EUT, PT takes into account irrational behaviors and heuristic biases. It suggests an alternative approach, in which probabilities are replaced by decision weights, which are strictly related to the decision maker's preferences and may change for different individuals. In particular, people underestimate the utility of uncertain scenarios compared to outcomes obtained with certainty, and show inconsistent preferences when the same choice is presented in different forms. The goal of this paper is precisely to analyze a real case study involving a decision problem regarding the Streicker Bridge, a pedestrian bridge on Princeton University campus. By modelling the manager of the bridge with the EUT first, and with PT later, we want to verify the differences between the two approaches and to investigate how the two models are sensitive to unpacking probabilities, which represent a common cognitive bias in irrational behaviors.
Problems on Solving Matrix Aggregation in Group Decision-Making by Glowworm Swarm Optimization
Yaping Li
2016-01-01
Full Text Available Judgment matrix aggregation, as an important part of group decision-making, has been widely and deeply studied due to the universality and importance of group decision-making in the management field. For the variety of judgment matrix in group decision-making, the matrix aggregation result can be obtained by using the mode of glowworm swarm optimization. First, this paper introduces the basic principle of the glowworm swarm optimization (GSO algorithm and gives the improved GSO algorithm to solve the matrix aggregation problems. In this approach, the consistency ratio is introduced to the objective function of the glowworm swarm optimization, thus reducing the subjectivity and information loss in the aggregation process. Then, the improved GSO algorithm is applied to the solution of the deterministic matrix and the fuzzy matrix. The method optimization can provide an effective and relatively uniform aggregation method for matrix aggregation. Finally, through comparative analysis, it is shown that the method of this paper has certain advantages in terms of adaptability, accuracy, and stability to solving the matrix aggregation problems.
Application of Multi Criteria Decision Making approaches for personnel selection problem: A survey
Mahdi Khorami
2015-05-01
Full Text Available Personnel selection is the critical stage of human resource management (HRM. It is undeniable fact that qualified personnel is one of the necessary building blocks for organization success because improper personnel might cause many obstacles for an organization and dissipates it resource as time, effort, and money. Indeed, complexity and the important role of personnel selection problem require the application of robust and equitable methods. An effective, helpful, and reliable approach has been developed to deal with personnel selection problem is multi criteria decision making (MCDM methods. In this paper, we focus on the application of MCDM methods for personnel selection problem and review numerous international journal articles accessible on famous academic databases.
Bouchaud, Jean-Philippe; Sornette, Didier
1994-06-01
The ability to price risks and devise optimal investment strategies in thé présence of an uncertain "random" market is thé cornerstone of modern finance theory. We first consider thé simplest such problem of a so-called "European call option" initially solved by Black and Scholes using Ito stochastic calculus for markets modelled by a log-Brownien stochastic process. A simple and powerful formalism is presented which allows us to generalize thé analysis to a large class of stochastic processes, such as ARCH, jump or Lévy processes. We also address thé case of correlated Gaussian processes, which is shown to be a good description of three différent market indices (MATIF, CAC40, FTSE100). Our main result is thé introduction of thé concept of an optimal strategy in the sense of (functional) minimization of the risk with respect to the portfolio. If the risk may be made to vanish for particular continuous uncorrelated 'quasiGaussian' stochastic processes (including Black and Scholes model), this is no longer the case for more general stochastic processes. The value of the residual risk is obtained and suggests the concept of risk-corrected option prices. In the presence of very large deviations such as in Lévy processes, new criteria for rational fixing of the option prices are discussed. We also apply our method to other types of options, `Asian', `American', and discuss new possibilities (`doubledecker'...). The inclusion of transaction costs leads to the appearance of a natural characteristic trading time scale. L'aptitude à quantifier le coût du risque et à définir une stratégie optimale de gestion de portefeuille dans un marché aléatoire constitue la base de la théorie moderne de la finance. Nous considérons d'abord le problème le plus simple de ce type, à savoir celui de l'option d'achat `européenne', qui a été résolu par Black et Scholes à l'aide du calcul stochastique d'Ito appliqué aux marchés modélisés par un processus Log
Interval Neutrosophic Sets and Their Application in Multicriteria Decision Making Problems
Hong-yu Zhang
2014-01-01
Full Text Available As a generalization of fuzzy sets and intuitionistic fuzzy sets, neutrosophic sets have been developed to represent uncertain, imprecise, incomplete, and inconsistent information existing in the real world. And interval neutrosophic sets (INSs have been proposed exactly to address issues with a set of numbers in the real unit interval, not just a specific number. However, there are fewer reliable operations for INSs, as well as the INS aggregation operators and decision making method. For this purpose, the operations for INSs are defined and a comparison approach is put forward based on the related research of interval valued intuitionistic fuzzy sets (IVIFSs in this paper. On the basis of the operations and comparison approach, two interval neutrosophic number aggregation operators are developed. Then, a method for multicriteria decision making problems is explored applying the aggregation operators. In addition, an example is provided to illustrate the application of the proposed method.
Nazliben, Kamil
2015-01-01
The dissertation consists of three chapters that represent separate papers in the area of asset pricing. The ﬁrst chapter studies investors optimal asset allocation problem in which mean reversion in stock prices is captured by explicitly modeling transitory and permanent shocks. The second chapter
Hybrid aggregation operator and its application to multiple attribute decision making problems
XuZeshui; DaQingli
2003-01-01
By combining the advantages of the additive weighted mean (AWM) operator and the ordered weighted averaging (OWA) operator, this paper first presents a hybrid operator for aggregating data information, and then proposes a hybrid aggregation (HA) operator-based method for multiple attribute decision making (MADM) problems. The theoretical analyses and the numerical results show that the HA operator generalizes both the AWM and OWA operators, and reflects the importance of both the given argument and the ordered position of the argument. Thus, the HA operator can reflect better real situations in practical applications. Finally, an illustrative example is given.
Dynamic Pricing for Airline Revenue Management under Passenger Mental Accounting
Yusheng Hu
2015-01-01
Full Text Available Mental accounting is a far-reaching concept, which is often used to explain various kinds of irrational behaviors in human decision making process. This paper investigates dynamic pricing problems for single-flight and multiple flights settings, respectively, where passengers may be affected by mental accounting. We analyze dynamic pricing problems by means of the dynamic programming method and obtain the optimal pricing strategies. Further, we analytically show that the passenger mental accounting depth has a positive effect on the flight’s expected revenue for the single flight and numerically illustrate that the passenger mental accounting depth has a positive effect on the optimal prices for the multiple flights.
Heidari, Mohammad; Shahbazi, Sara
2016-01-01
The aim of this study was to determine the effect of problem-solving training on decision-making skill and critical thinking in emergency medical personnel. This study is an experimental study that performed in 95 emergency medical personnel in two groups of control (48) and experimental (47). Then, a short problem-solving course based on 8 sessions of 2 h during the term, was performed for the experimental group. Of data gathering was used demographic and researcher made decision-making and California critical thinking skills questionnaires. Data were analyzed using SPSS software. The finding revealed that decision-making and critical thinking score in emergency medical personnel are low and problem-solving course, positively affected the personnel' decision-making skill and critical thinking after the educational program (P problem-solving in various emergency medicine domains such as education, research, and management, is recommended.
Simplified neutrosophic sets and their applications in multi-criteria group decision-making problems
Peng, Juan-juan; Wang, Jian-qiang; Wang, Jing; Zhang, Hong-yu; Chen, Xiao-hong
2016-07-01
As a variation of fuzzy sets and intuitionistic fuzzy sets, neutrosophic sets have been developed to represent uncertain, imprecise, incomplete and inconsistent information that exists in the real world. Simplified neutrosophic sets (SNSs) have been proposed for the main purpose of addressing issues with a set of specific numbers. However, there are certain problems regarding the existing operations of SNSs, as well as their aggregation operators and the comparison methods. Therefore, this paper defines the novel operations of simplified neutrosophic numbers (SNNs) and develops a comparison method based on the related research of intuitionistic fuzzy numbers. On the basis of these operations and the comparison method, some SNN aggregation operators are proposed. Additionally, an approach for multi-criteria group decision-making (MCGDM) problems is explored by applying these aggregation operators. Finally, an example to illustrate the applicability of the proposed method is provided and a comparison with some other methods is made.
VĂDUVA MARIA
2014-08-01
Full Text Available Studying the consumer’s behavior by the ordinal approach of utility with the help of indifference curves allows us to deduce the two “movement laws of demand” in this chapter: the demand for a “normal” good is decreasing function of its price and an increasing function of income. We will use the elasticity concept to measure the intensity of the relation that is established between the demand, on the one hand, and prices or income, on the other hand: elasticity – price, direct and crossed, and elasticity – income. We can classify the goods in many categories, depending on the values that this elasticity takes. The demand elasticity can be determined depending on price and income. It reflects the proportion in which the demand for different products changes with the modification of the consumers’ income, the other factors remaining constant. The elasticity compared to the income is a demonstration of legality from the consumer’s sphere, which determines a certain hierarchy of the needs of each population category in a certain level of income. The movement of prices orients both the options and decisions of producers, namely the most useful productions and the most efficient investments, as well as the consumers’ options and decisions on the most advantageous buying of goods and services that they need. The prices appear as a “signal system” coordinating and making coherence the economic agents’ decisions – producers, consumers and population.
Ng, T.; Eheart, J.; Cai, X.; Braden, J. B.
2010-12-01
Agricultural watersheds are coupled human-natural systems where the land use decisions of human agents (farmers) affect surface water quality, and in turn, are affected by the weather and yields. The reliable modeling of such systems requires an approach that considers both the human and natural aspects. Agent-based modeling (ABM), representing the human aspect, coupled with hydrologic modeling, representing the natural aspect, is one such approach. ABM is a relatively new modeling paradigm that formulates the system from the perspectives of the individual agents, i.e., each agent is modeled as a discrete autonomous entity with distinct goals and actions. The primary objective of this study is to demonstrate the applicability of this approach to agricultural watershed management. This is done using a semi-hypothetical case study of farmers in the Salt Creek watershed in East-Central Illinois under the influence markets for carbon and second-generation bioenergy crop (specifically, miscanthus). An agent-based model of the system is developed and linked to a hydrologic model of the watershed. The former is based on fundamental economic and mathematical programming principles, while the latter is based on the Soil and Water Assessment Tool (SWAT). Carbon and second-generation bioenergy crop markets are of interest here due to climate change and energy independence concerns. The agent-based model is applied to fifty hypothetical heterogeneous farmers. The farmers' decisions depend on their perceptions of future conditions. Those perceptions are updated, according to a pre-defined algorithm, as the farmers make new observations of prices, costs, yields and the weather with time. The perceptions are also updated as the farmers interact with each other as they share new information on initially unfamiliar activities (e.g., carbon trading, miscanthus cultivation). The updating algorithm is set differently for different farmers such that each is unique in his processing of
供应商选择不同技术下的研发决策问题%Development decision problem under supplier's different technology choice
邓鳞波; 刘伟
2012-01-01
针对面向多制造商的供应商研发决策问题，分别构造了供应商在选择共性技术和专用性技术研发决策情形下与两个制造商组成的两阶段非合作博弈模型，得到了供应商在这两种情形下各自的最优研发决策，通过对这两种最优决策情形下供应商最大化利润进行比较，给出了这两种情形下供应商最大化利润相等的条件和各自的占优区间。进一步讨论了供应部件单位成本、供应部件价格、最终产品替代率、单位研发成本变动对这两种情形下供应商最优研发决策的影响，并给出了相应的数值解，表明供应商采用不同技术研发决策时最优研发程度和最大化利润与供应部件单位成本、单位研发成本、最终产品替代率负相关，供应商最优研发程度与供应部件价格正相关；随着供应部件价格的递增，供应商最大化利润先增加后减少。%Aiming at the supplier's development decision problem oriented to multi-manufacturer, a two-stage noncooperative game model which composed of a supplier and two manufacturers was proposed under the situations that the supplier made the optimal development decision based on generic technologies and specific technologies. By comparing the supplier's maximum profits of these two optimal decisions, the respective dominant intervals as well as the conditions which made the two maximum profits be equal were obtained. Furthermore, the influence of supplied component's unit cost, supplied component's price, products' substitution rate and development cost fluctuation on supplier's optimal development decision under these two situations was discussed, and the corresponding numerical solutions were given. It showed that the optimal development degree and the maximum profits with different development decisions were negative correlated with supplied component's unit cost, supplied component's price, products' substitution rate and
IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY
Andrea Erika NYÁRÁDI
2007-01-01
Full Text Available The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitability many are abandoning traditional reactive pricing procedures in favor of proactive pricing, making explicit corporate decisions to change their focus to growth in top-line sales to growth in profitability. The long-term implications of price strategies are still under-researched, and managers should be aware of shifts in customer reactions that may result from frequent adoption of certain strategies. The company pricing strategy should be seen in relation to developments in the company variables, internal ones (capital strength, competencies, organizational conditions, efficiency of the work force etc. as well as external ones (customers, competitors, the technological development etc., adopting strategic pricing. In this paper I will present the most effective pricing strategies leading to long term profitability, and also suggest practical conditions for pricing strategies to maximize profit in the long run.
新产品定价决策的影响因素分析%Analysis Factors Influencing Pricing Decision of New Products
蒋紫艳; 赵军
2015-01-01
The sales of new product depend on two important factors: one is the engineering variables with pro-duction characteristics, such as the level of reliability; the other one is the market factors, such as price and warranty policy.A higher reliability results in a higher manufacturing cost and higher sale price.Consumers are willing to gain a higher reliability only if the price may be higher.They often judge the level of products reliabili-ty by the information of warranty policy, in order to decide whether to buy or not.Manufacturer increases demand by establishing better warranty strategy, but at the same time bears additional costs.Therefore, with price as the exogenous variable, the paper proposes a model to determine the optimal product reliability and warranty strate-gies which are decision variables, for the maximum benefit.Moreover, when the sensitivity parameters of the dif-ferent variables change, the model will discuss the regulation of the optimal warranties strategy and product relia-bility.Finally, the example analyses the basic characteristics of the revenue function.The conclusion shows that consumers always judge the reliability level of products from the signal of warranty policy , which is significant for selling new products.%新产品的成功销售取决于两个重要的因素：一是具有生产特性的工程变量，比如产品的可靠性水平；一是具有市场特征的影响因素，比如价格和保障机制。为了实现收益，制造商必须认真审视价格、产品可靠性和保障机制的选择。因此，本文将价格作为外生变量，将保障机制与可靠性作为决策变量，建立了以最大化为目标的收益模型，分析可靠性与保障机制的最优策略。另外，探讨当不同变量的敏感性参数发生变化时，最优保障机制与产品可靠性的变化规律。最后，通过算例分析收益函数的基本特性，结论显示消费者总是从产品保障机制的信号
Stahl, Cynthia; Cimorelli, Alan
2013-01-01
Because controversy, conflict, and lawsuits frequently characterize US Environmental Protection Agency (USEPA) decisions, it is important that USEPA decision makers understand how to evaluate and then make decisions that have simultaneously science-based, social, and political implications. Air quality management is one category of multidimensional decision making at USEPA. The Philadelphia, Pennsylvania metropolitan area experiences unhealthy levels of ozone, fine particulate matter, and air toxics. Many ozone precursors are precursors for particulate matter and certain air toxics. Additionally, some precursors for particulate matter are air toxics. However, air quality management practices have typically evaluated these problems separately. This approach has led to the development of independent (and potentially counterproductive) implementation strategies. This is a methods article about the necessity and feasibility of using a clumsy approach on wicked problems, using an example case study. Air quality management in Philadelphia is a wicked problem. Wicked problems are those where stakeholders define or view the problem differently, there are many different ways to describe the problem (i.e., different dimensions or levels of abstraction), no efficient or optimal solutions exist, and they are often complicated by moral, political, or professional dimensions. The USEPA has developed the multicriteria integrated resource assessment (MIRA) decision analytic approach that engages stakeholder participation through transparency, transdisciplinary learning, and the explicit use of value sets; in other words, a clumsy approach. MIRA's approach to handling technical indicators, expert judgment, and stakeholder values makes it a potentially effective method for tackling wicked environmental problems.
Pawlikowski, Mirko; Brand, Matthias
2011-08-15
The dysfunctional behavior of excessive Internet gamers, such as preferring the immediate reward (to play World of Warcraft) despite the negative long-term consequences may be comparable with the dysfunctional behavior in substance abusers or individuals with behavioral addictions, e.g. pathological gambling. In these disorders, general decision-making deficits have been demonstrated. Hence, the aim of the present work was to examine decision-making competences of excessive World of Warcraft players. Nineteen excessive Internet gamers (EIG) and a control group (CG) consisting of 19 non-gamers were compared with respect to decision-making abilities. The Game of Dice Task (GDT) was applied to measure decision-making under risky conditions. Furthermore psychological-psychiatric symptoms were assessed in both groups. The EIG showed a reduced decision-making ability in the GDT. Furthermore the EIG group showed a higher psychological-psychiatric symptomatology in contrast to the CG. The results indicate that the reduced decision-making ability of EIG is comparable with patients with other forms of behavioral addiction (e.g. pathological gambling), impulse control disorders or substance abusers. Thus, these results suggest that excessive Internet gaming may be based on a myopia for the future, meaning that EIG prefer to play World of Warcraft despite the negative long-term consequences in social or work domains of life. 2011 Elsevier Ltd. All rights reserved.
1979-01-01
The use of probabilistic, and especially Bayesian, methods is explained. The concepts of risk and decision, and probability and frequency are elucidated. The mechanics of probability and probabilistic calculations is discussed. The use of the method for particular problems, such as the frequency of aircraft crashes at a specified nuclear reactor site, is illustrated. 64 figures, 20 tables. (RWR)
Intelligent Search Method Based ACO Techniques for a Multistage Decision Problem EDP/LFP
Mostefa RAHLI
2006-07-01
the algorithm getting to him a rate preferably more or less justifiable. In operational research, this subject is known under the name of CPO [14] (combinatory problem optimization.The choice of a numerical method to use for a merged case study and calculation of the LFP/Fitting/EDP what is [7, 8, 9, 10, 18, 19, 20] (in theoretical form of a problem compensates the final decision to adopt and a strategy of optimal production (which is a practical problem form and the final task most wanted.Each method is imposed by:· The algorithm complexity.· In an application gathering all calculations, the number of uses of method compared to the total number of later issues.· The maximum number of iterations for a given use.· The maximum iterations count allowed for this algorithm kind.· The limitations of the algorithm such as: applicability of a method (algorithm adapted or not to the problem; does the problem constrained or not; problem dimension or order N (N ≤ Nmax; the algorithm stability.It's well-known that for an approached calculation method, the propagation of errors strongly conditions the need of making its adequate choice and if it can be adopted compared to others for the same area.More is the number of the elementary operations is large more the final result misses precision and especially if the finality of the study is a responsible decision to make and a satisfaction of constraints and multiple conditions. Our study proposes an inference based solution (AI with the use of ACO technique (Ant colony Optimization2.
Bayesian Information-Gap Decision Analysis Applied to a CO2 Leakage Problem
O'Malley, D.; Vesselinov, V. V.
2014-12-01
We describe a decision analysis in the presence of uncertainty that combines a non-probabilistic approach (information-gap decision theory) with a probabilistic approach (Bayes' theorem). Bayes' theorem is one of the most popular techniques for probabilistic uncertainty quantification (UQ). It is effective in many situations, because it updates our understanding of the uncertainties by conditioning on real data using a mathematically rigorous technique. However, the application of Bayes' theorem in science and engineering is not always rigorous. There are two reasons for this: (1) We can enumerate the possible outcomes of dice-rolling, but not the possible outcomes of real-world contamination remediation; (2) We can precisely determine conditional probabilities for coin-tossing, but substantial uncertainty surrounds the conditional probabilities for real-world contamination remediation. Of course, Bayes' theorem is rigorously applicable beyond dice-rolling and coin-tossing, but even in cases that are constructed to be simple with ostensibly good probabilistic models, applying Bayes' theorem to the real world may not work as well as one might expect. Bayes' theorem is rigorously applicable only if all possible events can be described, and their conditional probabilities can be derived rigorously. Outside of this domain, it may still be useful, but its use lacks at least some rigor. The information-gap approach allows us to circumvent some of the highlighted shortcomings of Bayes' theorem. In particular, it provides a way to account for possibilities beyond those described by our models, and a way to deal with uncertainty in the conditional distribution that forms the core of Bayesian analysis. We have developed a three-tiered technique enables one to make scientifically defensible decisions in the face of severe uncertainty such as is found in many geologic problems. To demonstrate the applicability, we apply the technique to a CO2 leakage problem. The goal is to
How Do Companies Use the Price Strategies
赵亚男; 赵翠玲
2011-01-01
@@ 1 .Introduction With the development of the globalization, companies face many challenges.Pricing strategy is a part of their marketing efforts.Price is the only element in the marketing mix that produces revenues; all other elements re present cost.So pricing and price competition is the number-one problem facing many marketing executives.To select an initial price, companies should using pricing
Armstrong, Mark
2008-01-01
This paper surveys recent economic research on price discrimination, both in monopoly and oligopoly markets. Topics include static and dynamic forms of price discrimination, and both final and input markets are considered. Potential antitrust aspects of price discrimination are highlighted throughout the paper. The paper argues that the informational requirements to make accurate policy are very great, and with most forms of price discrimination a laissez-faire policy may be the best availabl...
Is problem-based learning an ideal format for developing ethical decision skills?
Peter H. Harasym
2013-10-01
Full Text Available Ethical decision making is a complex process, which involves the interaction of knowledge, skills, and attitude. To enhance the teaching and learning on ethics reasoning, multiple teaching strategies have to be applied. A medical ethical reasoning (MER model served as a framework of the development of ethics reasoning and their suggested instructional strategies. Problem-based learning (PBL, being used to facilitate students' critical thinking, self-directed learning, collaboration, and communication skills, has been considered effective on ethics education, especially when incorporated with experiential experience. Unlike lecturing that mainly disseminates knowledge and activates the left brain, PBL encourages “whole-brain” learning. However, PBL has several disadvantages, such as its inefficiency, lack of adequately trained preceptors, and the in-depth, silo learning within a relatively small number of cases. Because each school tends to utilize PBL in different ways, either the curriculum designer or the learning strategy, it is important to maximize the advantages of a PBL session, PBL then becomes an ideal format for refining students' ethical decisions and behaviors.
Pricing and cooperative advertising decision models in dual-channel supply chain%双渠道供应链中定价与合作广告决策模型
黄松; 杨超; 张曦
2011-01-01
To study the influence of cooperative advertising strategy on channel supply chain pricing decision,the two-echelon supply chain system composed of one manufacturer and one retailer was considered.The manufacturer sold the products to end customers both through the direct channel and the traditional retail channel.The demands in two channels were influenced by both prices and advertising investment level.The pricing strategy and cooperative advertising decisions in a centralized dual-channel supply chain and in a decentralized dual-channel supply chain based on Stackelberg game were analyzed.The two-stage optimization technique was utilized to obtain the optimal pricing decisions and advertising investment level.The numerical studies revealed that the manufacturers and the retailers pricing decisions were largely influenced by advertising investment.Customers preferences for the retail channel and the cooperative advertising ratio were closely related to both the optimal pricing decisions and the optimal advertising investment.%为研究合作广告决策对渠道供应链定价决策的影响,考虑由单一制造商和单一零售商组成的两级供应链系统,制造商可以通过直销渠道将产品销售给顾客,也可以通过传统的零售渠道将产品销售给顾客,两种渠道的需求都受到价格和广告投入水平的影响。分析了集中式双渠道供应链的定价与合作广告决策,以及基于Stack-elberg博弈时分散式双渠道供应链的定价与合作广告决策。利用两阶段优化技术得到了供应链的最优定价决策和广告投入水平。数值算例表明,广告投入对于制造商和零售商的定价决策有重要影响,制造商和零售商的最优定价决策和最优广告投入水平与顾客对零售渠道的偏好程度以及合作广告的分担比例密切相关。
Nielsen, Søren Bo
2014-01-01
Against a background of rather mixed evidence about transfer pricing practices in multinational enterprises (MNEs) and varying attitudes on the part of tax authorities, this paper explores how multiple aims in transfer pricing can be pursued across four different transfer pricing regimes. A MNE h...
Dynamic Price Dispersion of Storable Goods
Gao, Cixiu
2015-01-01
In this paper I provide an analytical model for the rationale behind supermarket pricing patterns characterized by long-term high prices and temporary price reductions. Based on the understanding that temporary price reductions serve the role of price discrimination between consumers with different...... search costs and willingness to wait, I construct a dynamic model of oligopoly retailers selling a homogeneous storable good. The model takes into account consumer heterogeneity with respect to search cost, inventory cost, and store loyalty. I demonstrate that the high-price-low-price pattern is rational...... for storable goods. In a Markov-perfect equilibrium, agents’ actions depend on consumer inventory, and purchase decisions are characterized by a critical price. The equilibrium price series consists of one-time price reductions and several consecutive periods in which all retailers offer the regular price...
Dynamic Price Dispersion of Storable Goods
Gao, Cixiu
2014-01-01
In this paper I provide an analytical model for the rationale behind supermarket pricing patterns characterized by long-term high prices and temporary price reductions. The model is based on the understanding that temporary price reductions serve the role of price discrimination between consumers...... with different search costs and willingness to wait. I demonstrate that the high-price-low-price pattern is rational for storable goods. In a Markov-perfect equilibrium, agents’ actions depend on consumer inventory, and purchase decisions are characterized by a critical price. The equilibrium price series...... consists of one-time price reductions and several consecutive periods in which all retailers offer the regular price. The model predicts that competition is the hardest when consumer inventories are zero, and that at high inventory levels the probability of holding a sale is low....
Need-based Communication for Smart Grid: When to Inquire Power Price?
Li, Husheng
2010-01-01
In smart grid, a home appliance can adjust its power consumption level according to the realtime power price obtained from communication channels. Most studies on smart grid do not consider the cost of communications which cannot be ignored in many situations. Therefore, the total cost in smart grid should be jointly optimized with the communication cost. In this paper, a probabilistic mechanism of locational margin price (LMP) is applied and a model for the stochastic evolution of the underlying load which determines the power price is proposed. Based on this framework of power price, the problem of determining when to inquire the power price is formulated as a Markov decision process and the corresponding elements, namely the action space, system state and reward function, are defined. Dynamic programming is then applied to obtain the optimal strategy. A simpler myopic approach is proposed by comparing the cost of communications and the penalty incurred by using the old value of power price. Numerical resul...
Mechanical vs. informational components of price impact
Doyne Farmer, J.; Zamani, N.
2007-01-01
We study the problem of what causes prices to change. It is well known that trading impacts prices — orders to buy drive the price up, and orders to sell drive it down. We introduce a means of decomposing the total impact of trading into two components, defining the mechanical impact of a trading order as the change in future prices in the absence of any future changes in decision making, and the informational impact as the remainder of the total impact once mechanical impact is removed. This decomposition is performed using order book data from the London Stock Exchange. The average mechanical impact of a market order decays to zero as a function of time, at an asymptotic rate that is consistent with a power law with an exponent of roughly 1.7. In contrast the average informational impact builds to approach a constant value. Initially the impact is entirely mechanical, and is about half as big as the asymptotic informational impact. The size of the informational impact is positively correlated to mechanical impact. For cases where the mechanical impact is zero for all times, we find that the informational impact is negative, i.e. buy market orders that have no mechanical impact at all generate strong negative price responses.
The Nominal Share Price Puzzle
William C. Weld; Roni Michaely; Richard H. Thaler; Shlomo Benartzi
2009-01-01
... investigate in this paper is whether vestigial norms and customs affect corporate decision making. Consider the following fact: The average nominal price for a share of stock on the New York Stock exchange has remained roughly constant (about $35) since the Great Depression. The mechanism that has allowed share prices to remain remarkably con...
霍艳芳; 何莹
2015-01-01
On the premise of quality improvement,e-commerce supply chain led by logistics enterprises is analyzed,taking the influence of quality improving degree on demand and cost into consideration.This paper aims at the goods return problem in online shopping,and constructs the profit functions of e-commerce enterprises and logistics enterprises under decentralized and centralized decision respectively,which takes mark-up rate of goods and price of logistics service as decision variables.After analyzing the case,the result shows that cooperation between e-commerce and logistics enterprises will raise the total profit of supply chain,and obtain the service price fixing interval to realize Pareto improving.However,too high quality improving degree will lead to a sharply increasing,which will compress the increased profit space brought by cooperation between e-commerce and logistics enterprises.The reduction of the service pricing interval will lead to a partly loss of discourse power of logistics enterprises in the bargain with e-commerce enterprises.%在质量改善的前提下，以物流企业主导的电子商务供应链为研究对象，考虑了质量改善程度对需求量和成本的影响，针对网络购物商品的退货问题，构建了以商品加价率以及物流服务价格为决策变量的电子商务企业和物流企业在分散决策和集中决策下的利润函数，并在此基础上进行算例分析，得到价格与质量改善程度的关系。结果表明：通过双方企业的合作可以提高供应链的总利润，并得到实现帕累托改进的服务定价区间；然而，过高的质量改善程度将会导致成本大幅度上升，压缩了电子商务企业与物流企业合作所提高的利润空间，服务定价区间的缩小使得物流企业在与电子商务企业的讨价还价中丧失一部分话语权。
Price elasticity and pharmaceutical selection: the influence of managed care.
Domino, Marisa Elena; Salkever, David S
2003-07-01
State Medicaid programs are turning increasingly to managed care to control expenditures, although the types of managed care programs in use have changed dramatically. Little is known about the influence of the shifting Medicaid managed care arena on treatment decisions. This paper investigates factors affecting the selection of treatments for depression by providers participating in either of two Medicaid managed care programs. Of particular interest is the influence of medication price on the choice of treatment, since one vehicle through which managed care organizations can reduce total expenditures is by increasing the price sensitivity of participating providers. We take a new approach by phrasing the problem as a discrete choice, using a nested multinomial logit model for the analyses. Contrary to earlier literature, we find some evidence that physicians in both programs do take price into consideration when selecting among treatment options. HMO providers in particular demonstrate increased price sensitivity in the two most commonly prescribed categories of antidepressants.
李帮义; 李宁; 孙春艳
2016-01-01
EOL产品的回收、再制造及其商业化是发展循环经济、解决资源与环境问题的重要途径，消费者的类型分布影响着生产者的定价策略，定价策略又影响着再制造品的市场结构与战略决策。为此，导入消费者的类型划分与分布，定量构建了消费者类型划分对生产者定价策略的影响，并给出了分界点；同时，评估了定价策略对生产者战略决策的影响机制，确定了阈值分布，绘制了决策路线图。%Recycling, remanufacturing and commercialization of end of life(EOL) product are significant way to develop recycling economy and handle the issues of the resource and the environment protect. Distribution of the customer type influences pricing decision of the remanufacturing, while the pricing decision also influences the market structure and the strategy decision. The division and distribution of the customer type are introduced, the effects on costumer type division to the pricing decision making are studied, and the threshold is given. Besides, the influence mechanism of pricing decision to remanufacturing strategy decision is evaluated and the decision route map is given.
周颖
2011-01-01
以MTO制造企业为研究对象,分析服务水平高低对制造商定价和交货期决策的影响.分别建立不考虑和考虑服务水平约束时定价和交货期联合决策模型,以最大化期望收益为目标,得到制造商的最优定价、最优承诺交货期和最大期望收益.并且通过分析可知,服务水平高低对最优决策的影响是分段的;其中对最优价格的分段影响,还与持有成本以及价格和交货期敏感系数的大小有关;并且当服务水平等于不考虑服务水平约束下最优承诺交货期的概率分布值时,期望收益达到最大.%We analyze the impact of the service level on the manufacturer's decision on pricing and the delivery date in MTO manufacturing enterprises. In order to maximize the expected profit, we model both pricing and delivery date respectively under two conditions: with service level constraints and without service level constraints. We gain the manufacturer's optimal pricing, optimal delivery date and the maximum expected profit. We present that the impact of the service level on optimal decision is segmented ; the segmented impact on pricing, has relationship with the holding costs and the size of price and delivery date sensitivity coefficient; and when the service level is equal to the value of the probability distribution of the optimal commitment delivery date without considering service level constraint, the expected profit is maximum.
Hansen, Anders Dohn; Kolind, Esben; Clausen, Jens
2009-01-01
In this paper, we consider the Manpower Allocation Problem with Time Windows, Job-Teaming Constraints and a limited number of teams (m-MAPTWTC). Given a set of teams and a set of tasks, the problem is to assign to each team a sequential order of tasks to maximize the total number of assigned task...
Groupthink: Effects of Cohesiveness and Problem-Solving Procedures on Group Decision Making.
Callaway, Michael R.; Esser, James K.
1984-01-01
Tested Janis' groupthink formulation with 126 students by manipulating group cohesiveness and adequacy of decision procedures in a factorial design. Results showed highest quality decisions were produced by groups of intermediate cohesiveness. Highly cohesive groups without adequate decision procedures (the groupthink condition) tended to make the…
无
2006-01-01
Market-based reform of energy prices is the most effective approach to enhancing energy efficiency. The policies of energy conservation and enhancing energy efficiency in the 1 lth Five-year Plan period (2006-2010) work directly to set up a series of reform measures related to energy pricing by market mechanism. Energy price reform will deeply influence China's industrial interest pattern, and its development in the next five years and even 10 or 20 years.This paper analyzes the significance, timing, present status and problems related to energy price reform, and discusses the goal, principle and measures of coal, electricity, oil and gas price reform separately.
Bilevel linear programming model of charging for effluent based on price control
LI Yu-hua; LI Lei; HU Yun-quan; SHAO Hai-hong
2007-01-01
For the optimum price problem of charging for effluent, this paper analyzes the optimal Pigovian Tax and the serious information asymmetry problem existing in the application process of optimal Pigovian Tax,which is predominant in theory. Then the bilevel system optimizing decision-making theory is applied to give bilevel linear programming decision-making model of charging for effluent, in which the government (environmental protection agency) acts as the upper level decision-making unit and the polluting enterprises act as the lower level decision-making unit. To some extent, the model avoids the serious information asymmetry between the government and the polluting enterprises on charging for effluent.
Factorization Method for Asset Pricing in Regime Switching Problems%状态转换问题中资产定价的因子分解方法
周璟华; 何春雄
2011-01-01
当支付流既依赖于基础资产价格又受外界干预时,资产的定价问题通常用状态转换模型来刻画.以对数布朗运动为基础资产模型,通过对期望现值算子进行Wiener-Hopf分解,给出了计算永久支付流的期望现值的具体步骤,并针对具跌停和涨停两种具体情形,得到了资产价格的闭形式表达式.%If a payoff stream depends on both a fundamental and possible interventions of an authority, the asset pricing problem is usually characterized by regime switching models. The fundamental is modeled as geometric Brownian motion. By Wiener-Hopf factorization of an EPV (expected present value) operator, concrete steps are provided to calculate the EPV of a perpetual payoff stream. Furthermore, the closed-form expressions of asset prices with surged limit and decline limit are given.
陈星
2011-01-01
From the point of view of the retailers, firstly, retailer's decentralized decisions with profit-maximization are analyzed. Secondly, two centralized decision models are studied for maximizing profits of the whole supply chain system and the allied channel consisting of the supplier and retailer respectively. And then, the contract of subsidy on the basis of wholesale price which is relevant with display quantity and retail price is mentioned. which obtains decentralized decisions of coordinating retailer, and achieve the result that is consistent with the decision of maximizing profits of the system.%本文从零售商的角度,首先分析了零售商自身利润最大化的分散式决策,然后分别研究了供应链系统利润最大化、供应商和零售商联盟下的渠道利润最大化的集中式决策模型.进而提出了与展示量和零售价格相关的批发价加补贴合同,得到协调零售商的分散式决策,达到与系统利润最大化决策一致的结果.
Ma, Yanfang; Xu, Jiuping
2015-06-01
This article puts forward a cloud theory-based particle swarm optimization (CTPSO) algorithm for solving a variant of the vehicle routing problem, namely a multiple decision maker vehicle routing problem with fuzzy random time windows (MDVRPFRTW). A new mathematical model is developed for the proposed problem in which fuzzy random theory is used to describe the time windows and bi-level programming is applied to describe the relationship between the multiple decision makers. To solve the problem, a cloud theory-based particle swarm optimization (CTPSO) is proposed. More specifically, this approach makes improvements in initialization, inertia weight and particle updates to overcome the shortcomings of the basic particle swarm optimization (PSO). Parameter tests and results analysis are presented to highlight the performance of the optimization method, and comparison of the algorithm with the basic PSO and the genetic algorithm demonstrates its efficiency.
Competitive Analysis of the Online Inventory Problem
Larsen, Kim Skak; Wøhlk, Sanne
2010-01-01
We consider a real-time version of the inventory problem with deterministic demand in which decisions as to when to replenish and how much to buy must be made in an online fashion without knowledge of future prices. We suggest online algorithms for each of four models for the problem and use...
José Mateo
2017-01-01
Full Text Available Numerous contemporary problems that project managers face today can be considered as unstructured decision problems characterized by multiple actors and perspectives, incommensurable and/or conflicting objectives, and important intangibles. This work environment demands that project managers possess not only hard skills but also soft skills with the ability to take a management perspective and, above all, develop real leadership capabilities. In this paper, a family of problem structured methods for decision support aimed at assisting project managers in tackling complex problems are presented. Problem structured methods are a family of soft operations research methods for decision support that assist groups of diverse composition to agree a problem focus and make commitments to consequential action. Project management programs are challenged to implement these methodologies in such a way that it is organized around the key competences that a project manager needs in order to be more effective, work efficiently as members of interdisciplinary teams and successfully execute even a small project.
Kolkman, M.J.; Kok, M.; Veen, van der A.; Douben, N.; Os, van A.G.
2004-01-01
The solution of complex, unstructured problems in integrated water management is faced with policy controversy and dispute, unused and misused knowledge, project delay and failure, and decline of public trust in governmental decisions. Concept mapping is a technique to analyse these difficulties on
Hansen, Anders Dohn; Kolind, Esben; Clausen, Jens
. Both teams and tasks may be restricted by time windows outside which operation is not possible. Some tasks require cooperation between teams, and all teams cooperating must initiate execution simultaneously. We present an IP-model for the problem, which is decomposed using Dantzig-Wolfe decomposition......In this paper, we consider the Manpower Allocation Problem with Time Windows, Job-Teaming Constraints and a limited number of teams (m-MAPTWTC). Given a set of teams and a set of tasks, the problem is to assign to each team a sequential order of tasks to maximize the total number of assigned tasks...... instances. The main contribution of this article is the addition of synchronization between teams in an exact optimization context....
A branch-and-cut-and-price approach for the pickup and delivery problem with shuttle routes
Masson, Renaud; Røpke, Stefan; Lehuédé, Fabien
2014-01-01
The Pickup and Delivery Problem with Shuttle routes (PDPS) is a special case of the Pickup and Delivery Problem with Time Windows (PDPTW) where the trips between the pickup points and the delivery points can be decomposed into two legs. The first leg visits only pickup points and ends at some...... delivery point. The second leg is a direct trip – called a shuttle – between two delivery points. This optimization problem has practical applications in the transportation of people between a large set of pickup points and a restricted set of delivery points.This paper proposes three mathematical models...... the quality of linear relaxations. The method is evaluated on generated and real-world instances containing up to 193 transportation requests. Instances with up to 87 customers are solved to optimality within a computation time of one hour....
Tourism Equilibrium Price Trends
Mohammad Mohebi
2012-01-01
Full Text Available Problem statement: A review of the tourism history shows that tourism as an industry was virtually unknown in Malaysia until the late 1960s. Since then, it has developed and grown into a major industry, making an important contribution to the country's economy. By allocating substantial funds to the promotion of tourism and the provision of the necessary infrastructure, the government has played an important role in the impressive progress of the Malaysian tourism industry. One of the important factors which can attract tourists to Malaysia is the tourism price. Has the price of tourism decreased? To answer this question, it is necessary to obtain the equilibrium prices as well as the yearly trend for Malaysia during the sample period as it will be useful for analysis of the infrastructure situation of the tourism industry in this country. The purpose of the study is to identify equilibrium tourism price trends in Malaysian tourism market. Approach: We use hotel room as representative of tourism market. Quarterly data from 1995-2009 are used and a dynamic model of simultaneous equation is employed. Results: Based on the result during the period of 1995 until 2000, the growth rate of the equilibrium price was greater than consumer price index and producer price index. Conclusion: In the Malaysian tourism market, new infrastructure during this period had not been developed to keep pace with tourist arrivals.
工程量清单报价结算审核中存在的问题%On problems in the engineering volume listing price settlement and check
李美玲
2015-01-01
结合工程实例，介绍了工程量清单报价结算审核方案的确定方法，对工程量的确定、单价录入、价格审核等工程量清单报价结算审核中存在的问题进行了研究，以真正发挥清单审核的作用。%Combining with the engineering examples,the paper introduces the identification methods for the engineering volume listing price set-tlement and check,and researches some problems in the price settlement and check from the identification of the engineering volume,unit price entry,and price checking,so as to play the full role of the listing checking.
Problems on Solving Matrix Aggregation in Group Decision-Making by Glowworm Swarm Optimization
Yaping Li
2016-01-01
Judgment matrix aggregation, as an important part of group decision-making, has been widely and deeply studied due to the universality and importance of group decision-making in the management field. For the variety of judgment matrix in group decision-making, the matrix aggregation result can be obtained by using the mode of glowworm swarm optimization. First, this paper introduces the basic principle of the glowworm swarm optimization (GSO) algorithm and gives the improved GSO algorithm to ...
Pricing and Allotment in a Sea-Cargo Supply Chain with Reference Effect: A Dynamic Game Approach
Lei Xu
2013-01-01
Full Text Available The contract between the carrier and forwarder is a long-term issue, and the repeated contract business makes the forwarder develop a reference point based on the contract prices, and this reference effect, to a large extent, affects the forwarder’s contract purchasing decisions. Based on that, this paper introduces the reference effect in the sea-cargo supply chain and studies a multiple-period contract problem between the carrier and the forwarder. It is found that when the capacity price in the spot market is less than the forwarder’s willingness-to-pay, the forwarder’s contract purchasing decision is not affected by the reference effect, only by the capacity price in the spot market, and the multiple-period contract problem can be simplified into a single-period game. In addition, the carrier’s optimal contract wholesale price approaches the capacity price in the spot market. Although, the forwarder’s contract purchasing decision depends upon the reference effect, it is difficult to derive the closed-form solution. Moreover, because of the risk in the spot market, the carrier tends to sell his/her capacity in the contract market. Finally, we employ the numerical simulation to study the carrier’s contract pricing decisions and the forwarder’s capacity purchasing decisions in two cases.
Application Service Program (ASP Price Elasticities
Hong Jaeweon
2010-06-01
Full Text Available Although the price elasticities for off-line industry are well documented in academic field, the report of price elasticities for on-line to a given brand or industry in practice have beenrelatively rare. The researcher aims to try to full this gap by applying a price response function to Home Trading System’s on-line transaction data for the first time in Korean securities market. The different price elasticities among seven brands were found from -0.819 to -1.811. These results suggested that marketers should understand the price elasticity of their own HTS, before making a price decision.
Rohde, Carsten; Rossing, Christian Plesner
trade internally as the units have to decide what prices should be paid for such inter-unit transfers. One important challenge is to uncover the consequences that different transfer prices have on the willingness in the organizational units to coordinate activities and trade internally. At the same time...
Tenopir, Carol
1998-01-01
Presents results of a recent survey of over 100 public and academic libraries about pricing options from online companies. Most options fall into three categories: pay-as-you-go, fixed-rate, and user-based. Results are discussed separately for public and academic libraries and for consortial discounts. Trends in pricing options preferred by…
Lassman, F; Henderson, R Claire; Dockery, L; Clement, S; Murray, J; Bonnington, O; Farrelly, S; Thornicroft, G
2015-06-01
Background Decisions about whether to disclose mental health problems to employers are complex, with potential personal, employment and legal implications. Decision aids are evidence based tools, designed to help individuals make specific choices between treatment options. We previously developed a decision aid-Conceal Or ReveAL (CORAL)-to assist service users with decisions about disclosure to employers. As part of a mixed methods exploratory RCT, which demonstrated that the CORAL decision aid was effective in reducing decisional conflict, we aimed to explore its mechanism of action and to optimise the intervention for a future full scale trial. Methods In depth interviews were conducted with individuals receiving vocational support from a mental health trust and participating in the intervention arm of the pilot trial. Thematic analysis was conducted to identify the main themes relating to participants' perceptions of the CORAL decision aid. Results Thirteen participants were interviewed and five main themes were identified: sense of self and values; sense of control; anticipation of disclosure; experience of disclosure; and mechanism of action of the decision aid. Conclusions Data from our 13 participants suggest that the CORAL decision aid acts on several dimensions of decisional conflict: clarifying the pros and cons of different choices; increasing knowledge; structuring the decision making process; and clarifying needs and values. The current study indicated that it would be most effective when delivered by a professional well versed in employment and mental health matters such as a vocational adviser. The need for employers and policymakers to reduce the negative impact of disclosure is also highlighted.
Trading Network Predicts Stock Price
Sun, Xiao-Qian; Shen, Hua-Wei; Cheng, Xue-Qi
2014-01-01
Stock price prediction is an important and challenging problem for studying financial markets. Existing studies are mainly based on the time series of stock price or the operation performance of listed company. In this paper, we propose to predict stock price based on investors' trading behavior. For each stock, we characterize the daily trading relationship among its investors using a trading network. We then classify the nodes of trading network into three roles according to their connectivity pattern. Strong Granger causality is found between stock price and trading relationship indices, i.e., the fraction of trading relationship among nodes with different roles. We further predict stock price by incorporating these trading relationship indices into a neural network based on time series of stock price. Experimental results on 51 stocks in two Chinese Stock Exchanges demonstrate the accuracy of stock price prediction is significantly improved by the inclusion of trading relationship indices.
Trading network predicts stock price.
Sun, Xiao-Qian; Shen, Hua-Wei; Cheng, Xue-Qi
2014-01-16
Stock price prediction is an important and challenging problem for studying financial markets. Existing studies are mainly based on the time series of stock price or the operation performance of listed company. In this paper, we propose to predict stock price based on investors' trading behavior. For each stock, we characterize the daily trading relationship among its investors using a trading network. We then classify the nodes of trading network into three roles according to their connectivity pattern. Strong Granger causality is found between stock price and trading relationship indices, i.e., the fraction of trading relationship among nodes with different roles. We further predict stock price by incorporating these trading relationship indices into a neural network based on time series of stock price. Experimental results on 51 stocks in two Chinese Stock Exchanges demonstrate the accuracy of stock price prediction is significantly improved by the inclusion of trading relationship indices.
Pankaj Khanna
2014-04-01
Full Text Available An integrated information system based DSS is developed for Open and Distance Learning (ODL institutions in India. The system has been web structured with the most suitable newly developed modules. A DSS model has been developed for solving semi-structured and unstructured problems including decision making with regard to various programmes and activities operating in the ODLIs. The DSS model designed for problem solving is generally based on quantitative formulas, whereas for problems involving imprecision and uncertainty, a fuzzy theory based DSS is employed. The computer operated system thus developed would help the ODLI management to quickly identify programmes and activities that require immediate attention. It shall also provide guidance for obtaining the most appropriate managerial decisions without any loss of time. As a result, the various subsystems operating in the ODLI are able to administer its activities more efficiently and effectively to enhance the overall performance of the concerned ODL institution to a new level.
Chizuru eShikishima
2015-11-01
Full Text Available Why does decision making differ among individuals? People sometimes make seemingly inconsistent decisions with lower expected (monetary utility even when objective information of probabilities and rewards are provided. It is noteworthy, however, that a certain proportion of people do not provide anomalous responses, choosing the alternatives with higher expected utility, thus appearing to be more rational. We investigated the genetic and environmental influences on these types of individual differences in decision making using a classical Allais problem task. Participants were 1,199 Japanese adult twins aged 20–47. Univariate genetic analysis revealed that approximately a third of the Allais problem response variance was explained by genetic factors and the rest by environmental factors unique to individuals and measurement error. The environmental factor shared between families did not contribute to the variance. Subsequent multivariate genetic analysis clarified that decision making using the expected utility theory was associated with general intelligence and that the association was largely mediated by the same genetic factor. We approach the mechanism underlying two types of rational decision making from the perspective of genetic correlations with cognitive abilities.
Shikishima, Chizuru; Hiraishi, Kai; Yamagata, Shinji; Ando, Juko; Okada, Mitsuhiro
2015-01-01
Why does decision making differ among individuals? People sometimes make seemingly inconsistent decisions with lower expected (monetary) utility even when objective information of probabilities and reward are provided. It is noteworthy, however, that a certain proportion of people do not provide anomalous responses, choosing the alternatives with higher expected utility, thus appearing to be more "rational." We investigated the genetic and environmental influences on these types of individual differences in decision making using a classical Allais problem task. Participants were 1,199 Japanese adult twins aged 20-47. Univariate genetic analysis revealed that approximately a third of the Allais problem response variance was explained by genetic factors and the rest by environmental factors unique to individuals and measurement error. The environmental factor shared between families did not contribute to the variance. Subsequent multivariate genetic analysis clarified that decision making using the expected utility theory was associated with general intelligence and that the association was largely mediated by the same genetic factor. We approach the mechanism underlying two types of "rational" decision making from the perspective of genetic correlations with cognitive abilities.
Chalasani, P.; Saias, I. [Los Alamos National Lab., NM (United States); Jha, S. [Carnegie Mellon Univ., Pittsburgh, PA (United States)
1996-04-08
As increasingly large volumes of sophisticated options (called derivative securities) are traded in world financial markets, determining a fair price for these options has become an important and difficult computational problem. Many valuation codes use the binomial pricing model, in which the stock price is driven by a random walk. In this model, the value of an n-period option on a stock is the expected time-discounted value of the future cash flow on an n-period stock price path. Path-dependent options are particularly difficult to value since the future cash flow depends on the entire stock price path rather than on just the final stock price. Currently such options are approximately priced by Monte carlo methods with error bounds that hold only with high probability and which are reduced by increasing the number of simulation runs. In this paper the authors show that pricing an arbitrary path-dependent option is {number_sign}-P hard. They show that certain types f path-dependent options can be valued exactly in polynomial time. Asian options are path-dependent options that are particularly hard to price, and for these they design deterministic polynomial-time approximate algorithms. They show that the value of a perpetual American put option (which can be computed in constant time) is in many cases a good approximation to the value of an otherwise identical n-period American put option. In contrast to Monte Carlo methods, the algorithms have guaranteed error bounds that are polynormally small (and in some cases exponentially small) in the maturity n. For the error analysis they derive large-deviation results for random walks that may be of independent interest.
Two tier pricing system recommendation and summary
None
1974-06-01
In both the U.S. and the world today the most critical price system problem is the spectacular crude price set by the OPEC monopoly. In the U.S. this $10.00 plus price currently sets the price of 60% of our crude petroleum input. Therefore, the most powerful method available to reduce U.S. crude input price inflation is to reduce the OPEC monopoly price by at least $2 or 20%. At this price, it would supposedly approximate the long run cost of such energy. The situation is reviewed and recommendations and a summary are provided.
Celuch, Kevin; Saxby, Carl
2013-01-01
The present study extends understanding of the self-regulatory aspects of ethical decision making by integrating and exploring relationships among counterfactual thinking, attribution, anticipatory emotions, and ethical decision-making constructs and processes. Specifically, we examine the effects of a manipulation designed to stimulate a…
The Interplay between Information and Control Theory within Interactive Decision-Making Problems
Gorantla, Siva Kumar
2012-01-01
The context for this work is two-agent team decision systems. An "agent" is an intelligent entity that can measure some aspect of its environment, process information and possibly influence the environment through its action. In a collaborative two-agent team decision system, the agents can be coupled by noisy or noiseless interactions…
Celuch, Kevin; Saxby, Carl
2013-01-01
The present study extends understanding of the self-regulatory aspects of ethical decision making by integrating and exploring relationships among counterfactual thinking, attribution, anticipatory emotions, and ethical decision-making constructs and processes. Specifically, we examine the effects of a manipulation designed to stimulate a…
The Interplay between Information and Control Theory within Interactive Decision-Making Problems
Gorantla, Siva Kumar
2012-01-01
The context for this work is two-agent team decision systems. An "agent" is an intelligent entity that can measure some aspect of its environment, process information and possibly influence the environment through its action. In a collaborative two-agent team decision system, the agents can be coupled by noisy or noiseless interactions…
Cohen, Jonathan
1999-01-01
Discusses curriculum decision making, drawing on Joseph Schwab's framework of deliberation and explaining three foundations upon which the deliberative orientation to the justification of curriculum decisions is predicated. The paper examines what might happen to Schwab's framework of deliberation if it were exposed to various questions raised by…
Operation of Distributed Generation Under Stochastic Prices
Siddiqui, Afzal S.; Marnay, Chris
2005-11-30
We model the operating decisions of a commercial enterprisethatneeds to satisfy its periodic electricity demand with either on-sitedistributed generation (DG) or purchases from the wholesale market. Whilethe former option involves electricity generation at relatively high andpossibly stochastic costs from a set of capacity-constrained DGtechnologies, the latter implies unlimited open-market transactions atstochastic prices. A stochastic dynamic programme (SDP) is used to solvethe resulting optimisation problem. By solving the SDP with and withoutthe availability of DG units, the implied option values of the DG unitsare obtained.
Studying the Effects of Negative and Positive Perceptions of Price on Price Mavenism
Hossein Vazifedoost
2013-04-01
Full Text Available Despite the importance of price mavens, little empirical research exists on understanding its theoretical and marketing drivers; especially in different cultural contexts Buyers in Iran often communicate positive and negative purchasing experiences through Word-of-Mouth (WOM, which creates special problems and opportunities for marketers. Price mavenism, which is associated with price-information searching and price-sharing behavior, is often considered as negative dimension of price. The purpose of this study, however, is to propose price mavenism as an outcome variable arising from both positive perceptions of price (prestige sensitivity and negative perceptions (price and value consciousness. For this purpose structured questionnaire was developed to collect data and totaling 206 questionnaires of Iranian consumers were analyzed. The conceptual model was tested using structural equation modeling. This study found that prestige sensitivity, price consciousness and value consciousness shaped price mavenism among the Iranians, supporting the idea that price mavenism arises from both positive and negative perceptions of price.
Martin Tetaz
2014-06-01
Full Text Available This paper discusses two different alternatives to deal with the problem of multiple objectives in decision making. Even Swaps and Choice Based Conjoint are analyzed using an election between hypothetical jobs as a frame of decision. We show that not only Choice Based Conjoint Analysis can be used to value the different tradeoffs associated, but it can also be used to predict people choices even when they are not aware of the trades involved between objectives. Finally a tailored pilot survey is used to show the Choice Based Method in practice, allowing us to obtain important conclusions regarding people willingness to pay for several Labor Formality aspects.
Cost minimization and asset pricing
Robert G. Chambers; John Quiggin
2005-01-01
A cost-based approach to asset-pricing equilibrium relationships is developed. A cost function induces a stochastic discount factor (pricing kernel) that is a function of random output, prices, and capital stockt. By eliminating opportunities for arbitrage between financial markets and the production technology, firms minimize the current cost of future consumption. The first-order conditions for this cost minimization problem generate the stochastic discount factor. The cost-based approach i...
DeMeo, Stephen
2007-01-01
Common examples of graphic organizers include flow diagrams, concept maps, and decision trees. The author has created a novel type of graphic organizer called a decision map. A decision map is a directional heuristic that helps learners solve problems within a generic framework. It incorporates questions that the user must answer and contains…
The Impact of Market Reform Programmes on Coffee Prices in ...
To mitigate these problems there is a need to: improve coffee quality through harnessing the ... possible through commodity agreements adapted to stabilize prices of ... during this period and it resulted into low prices as well as high price ...
2006-01-01
Please take note that after five years of stable prices at Restaurant No 1 a price increase will come into force on 1st January 2006. This increase has been agreed after discussions between the CSR (Comité de Surveillance des Restaurants) and the catering company Novae and will reflect the inflation rate of the last few years. In addition, a new children's menu will be introduced, as well as 'Max Havelaar' fair-trade coffee at a price of 1.70 CHF.
2005-01-01
Please take note that after five years of stable prices at Restaurant No 1 a price increase will come into force on 1st January 2006. This increase has been agreed after discussions between the CSR (Comité de Surveillance des Restaurants) and the catering company Novae and will reflect the inflation rate of the last few years. In addition, a new children's menu will be introduced as well as 'Max Havelaar' fair-trade coffee at a price of 1.70 CHF.
Flexible Demand Management under Time-Varying Prices
Liang, Yong
In this dissertation, the problem of flexible demand management under time-varying prices is studied. This generic problem has many applications, which usually have multiple periods in which decisions on satisfying demand need to be made, and prices in these periods are time-varying. Examples of such applications include multi-period procurement problem, operating room scheduling, and user-end demand scheduling in the Smart Grid, where the last application is used as the main motivating story throughout the dissertation. The current grid is experiencing an upgrade with lots of new designs. What is of particular interest is the idea of passing time-varying prices that reflect electricity market conditions to end users as incentives for load shifting. One key component, consequently, is the demand management system at the user-end. The objective of the system is to find the optimal trade-off between cost saving and discomfort increment resulted from load shifting. In this dissertation, we approach this problem from the following aspects: (1) construct a generic model, solve for Pareto optimal solutions, and analyze the robust solution that optimizes the worst-case payoffs, (2) extend to a distribution-free model for multiple types of demand (appliances), for which an approximate dynamic programming (ADP) approach is developed, and (3) design other efficient algorithms for practical purposes of the flexible demand management system. We first construct a novel multi-objective flexible demand management model, in which there are a finite number of periods with time-varying prices, and demand arrives in each period. In each period, the decision maker chooses to either satisfy or defer outstanding demand to minimize costs and discomfort over a certain number of periods. We consider both the deterministic model, models with stochastic demand or prices, and when only partial information about the stochastic demand or prices is known. We first analyze the stochastic
New empirical generalizations on the determinants of price elasticity
Bijmolt, THA; Van Heerde, HJ; Pieters, RGM
2005-01-01
The importance of pricing decisions for firms has fueled an extensive stream of research on price elasticities. In an influential meta-analytical study, Tellis (1988) summarized price elasticity research findings until 1986. However, empirical generalizations on price elasticity require modification
Janssen, R.; Rietveld, P.
1989-01-01
Inclusion of evaluation methods in decision support systems gives way to extensive sensitivity analysis. In this article new methods for sensitivityanalysis are developed and applied to the siting of nuclear power plants in the Netherlands.
EMPIRICAL GENERALIZATIONS ABOUT THE IMPACT OF ADVERTISING ON PRICE SENSITIVITY AND PRICE
KAUL, A; WITTINK, DR
1995-01-01
Consumers' sensitivities to price changes are an important input to strategic and tactical decisions. It has been argued that price sensitivities depend on factors such as advertising Prior studies on the effect of advertising on consumer price sensitivity have found seemingly conflicting results. W
EMPIRICAL GENERALIZATIONS ABOUT THE IMPACT OF ADVERTISING ON PRICE SENSITIVITY AND PRICE
KAUL, A; WITTINK, DR
1995-01-01
Consumers' sensitivities to price changes are an important input to strategic and tactical decisions. It has been argued that price sensitivities depend on factors such as advertising Prior studies on the effect of advertising on consumer price sensitivity have found seemingly conflicting results.
The Use Of Business Games In Problem Solving And Decision Making
Skiltere, D.; Bausova, I.
2004-01-01
The purpose of the research is to demonstrate possibilities of simulation games in education process; in managerial ability compliance tests; for training of managers in small and middle business; in decision-making. The use of simulation games in decision making gives an opportunity to prevent these drawbacks, although this kind of the use of the games is not the most complicated, labour–consuming and eventually the most expensive.
A multi-objective decision-making approach to the journal submission problem.
Wong, Tony E; Srikrishnan, Vivek; Hadka, David; Keller, Klaus
2017-01-01
When researchers complete a manuscript, they need to choose a journal to which they will submit the study. This decision requires to navigate trade-offs between multiple objectives. One objective is to share the new knowledge as widely as possible. Citation counts can serve as a proxy to quantify this objective. A second objective is to minimize the time commitment put into sharing the research, which may be estimated by the total time from initial submission to final decision. A third objective is to minimize the number of rejections and resubmissions. Thus, researchers often consider the trade-offs between the objectives of (i) maximizing citations, (ii) minimizing time-to-decision, and (iii) minimizing the number of resubmissions. To complicate matters further, this is a decision with multiple, potentially conflicting, decision-maker rationalities. Co-authors might have different preferences, for example about publishing fast versus maximizing citations. These diverging preferences can lead to conflicting trade-offs between objectives. Here, we apply a multi-objective decision analytical framework to identify the Pareto-front between these objectives and determine the set of journal submission pathways that balance these objectives for three stages of a researcher's career. We find multiple strategies that researchers might pursue, depending on how they value minimizing risk and effort relative to maximizing citations. The sequences that maximize expected citations within each strategy are generally similar, regardless of time horizon. We find that the "conditional impact factor"-impact factor times acceptance rate-is a suitable heuristic method for ranking journals, to strike a balance between minimizing effort objectives and maximizing citation count. Finally, we examine potential co-author tension resulting from differing rationalities by mapping out each researcher's preferred Pareto front and identifying compromise submission strategies. The explicit
1993-01-01
a method called "Ramsey pricing." 7 4 The basic concepts underlying activity-based costing were proposed first in Miller and Vollman , 1985. For a...154. Miller, Jeffrey, and Thomas Vollman , "The Hidden Factory," Harvard Business Review, September-October 1985. Mitchell, Bridger M., Willard G
Krugon, Seelam; Nagaraju, Dega
2017-05-01
This work describes and proposes an two echelon inventory system under supply chain, where the manufacturer offers credit period to the retailer with exponential price dependent demand. The model is framed as demand is expressed as exponential function of retailer’s unit selling price. Mathematical model is framed to demonstrate the optimality of cycle time, retailer replenishment quantity, number of shipments, and total relevant cost of the supply chain. The major objective of the paper is to provide trade credit concept from the manufacturer to the retailer with exponential price dependent demand. The retailer would like to delay the payments of the manufacturer. At the first stage retailer and manufacturer expressions are expressed with the functions of ordering cost, carrying cost, transportation cost. In second stage combining of the manufacturer and retailer expressions are expressed. A MATLAB program is written to derive the optimality of cycle time, retailer replenishment quantity, number of shipments, and total relevant cost of the supply chain. From the optimality criteria derived managerial insights can be made. From the research findings, it is evident that the total cost of the supply chain is decreased with the increase in credit period under exponential price dependent demand. To analyse the influence of the model parameters, parametric analysis is also done by taking with help of numerical example.
Masoud Rabbani
2013-09-01
Full Text Available Integration of various logistical components in supply chain management, such as transportation, inventory control and facility location are becoming common practice to avoid sub-optimization in nowadays’ competitive environment. The integration of transportation and inventory decisions is known as inventory routing problem (IRP in the literature. The problem aims to determine the delivery quantity for each customer and the network routes to be used in each period, so that the total inventory and transportation costs are to be minimized. On the contrary of conventional IRP that each retailer can only provide its demand from the supplier, in this paper, a new multi-period, multi-item IRP model with considering lateral trans-shipment, back-log and financial decisions is proposed as a business model in a distinct organization. The main purpose of this paper is applying an applicable inventory routing model with considering real world setting and solving it with an appropriate method.
Kameda, Tatsuya; Tsukasaki, Takafumi; Hastie, Reid; Berg, Nathan
2011-01-01
We introduce a game theory model of individual decisions to cooperate by contributing personal resources to group decisions versus by free riding on the contributions of other members. In contrast to most public-goods games that assume group returns are linear in individual contributions, the present model assumes decreasing marginal group production as a function of aggregate individual contributions. This diminishing marginal returns assumption is more realistic and generates starkly different predictions compared to the linear model. One important implication is that, under most conditions, there exist equilibria where some, but not all, members of a group contribute, even with completely self-interested motives. An agent-based simulation confirmed the individual and group advantages of the equilibria in which behavioral asymmetry emerges from a game structure that is a priori perfectly symmetric for all agents (all agents have the same payoff function and action space but take different actions in equilibria). A behavioral experiment demonstrated that cooperators and free riders coexist in a stable manner in groups performing with the nonlinear production function. A collateral result demonstrated that, compared to a dictatorial decision scheme guided by the best member in a group, the majority/plurality decision rules can pool information effectively and produce greater individual net welfare at equilibrium, even if free riding is not sanctioned. This is an original proof that cooperation in ad hoc decision-making groups can be understood in terms of self-interested motivations and that, despite the free-rider problem, majority/plurality decision rules can function robustly as simple, efficient social decision heuristics.
SEDERBURG, J.P.
2000-04-03
This document describes the background, concerns, and issues associated with continued use of the 244-S DCRT. A problem statement is defined such that management may in the future make a decision about the preferred path forward on this DCRT. Influences and potential answers are outlined and presented such that costs, waste volume projections, projects (such as W-314), and other facilities (such as 222-S and PFP) are accurately represented.
Pricing structures in US coal supply contracts
Kacker, Kanishka
The subject of my dissertation is the study of coal procurement by electric utilities in the US over 2 decades, from 1979 to 2000. Energy markets are typically characterized by severe contracting problems. Buyers and sellers therefore employ various instruments, such as contract length or complex pricing arrangements, to restrict these problems. Relationship specific investment, wherein buyers make investments specific to their suppliers, has been advanced as a prominent explanation for contractual length. Investment decisions are however endogenous in length or pricing, making causal identification of the role of investment specificity difficult. In my first chapter, I attempt a resolution. I use the 1990 Clean Air Act Amendment as an exogenous shifter of the extent of relationship specific investment. A key feature of the Amendment's design helps me define a difference-in-difference model arguably free of the endogeneity issues discussed above. I find that the plants forced into switching - Phase I plants located in the US Midwest - are more likely to choose fixed price contracts than those that were not. Further they also write contracts of shorter terms, with the reduction being approximately 30%. Considerably little is known about the performance implications of contractual choices. These form the basis for Chapter 2. Here I find prices to be lower, by between 5% to 20% of the total transaction price, but the probability of renegotiation higher, under fixed price contracts than under escalator or cost-plus contracts. Contract choices appear consistent with a trade-off between establishing incentives ex-ante and lowering negotiation costs ex-post, with relationship specific investments in particular making such a trade-off compelling. Chapter 3 considers the regulatory environment these utilities were subject to. Both incentive based regulation as well as the restructuring of electricity generation are smaller in comparison to relationship specific investment
Optimizing Wellfield Operation in a Variable Power Price Regime
Bauer-Gottwein, Peter; Schneider, Raphael; Davidsen, Claus
2016-01-01
of operating the combined wellfield-storage-demand system over the course of a 2-year planning period based on a time series of observed price on the Danish power market and a deterministic, time-varying hourly water demand. In the SDP setup, hourly pumping rates are the decision variables. Constraints include......-rate pumping benchmark. Minor savings up to 10% were found in the baseline scenario, while the scenario with constant EFP and unlimited pumping rate resulted in savings up to 40%. Key factors determining potential cost savings obtained by flexible wellfield operation under a variable power price regime......Wellfield management is a multiobjective optimization problem. One important objective has been energy efficiency in terms of minimizing the energy footprint (EFP) of delivered water (MWh/m3). However, power systems in most countries are moving in the direction of deregulated markets and price...
Lu, Lihao; Zhang, Jianxiong; Tang, Wansheng
2016-04-01
An inventory system for perishable items with limited replenishment capacity is introduced in this paper. The demand rate depends on the stock quantity displayed in the store as well as the sales price. With the goal to realise profit maximisation, an optimisation problem is addressed to seek for the optimal joint dynamic pricing and replenishment policy which is obtained by solving the optimisation problem with Pontryagin's maximum principle. A joint mixed policy, in which the sales price is a static decision variable and the replenishment rate remains to be a dynamic decision variable, is presented to compare with the joint dynamic policy. Numerical results demonstrate the advantages of the joint dynamic one, and further show the effects of different system parameters on the optimal joint dynamic policy and the maximal total profit.
Artificial Shortages and Strategic Pricing
Partha Gangopadhyay
2012-01-01
Full Text Available Problem statement: We consider a monopolist who manipulates the market by artificially creating shortages that result in an increase in current price that, in turn, boosts demand for the product in subsequent periods. The approach is to develop an intertemporal model of pricing strategy for a monopolist. Approach: The postulated pricing strategy creates an incentive for producers to reduce current supply and raise current prices and sacrifice current profits in order to increase future profits. The main problem is to explain the precise mathematical conditions under which the pricing strategy will be chosen by a monopolist. Results: We derive the optimal pricing strategy to argue that the monopolist has an incentive to adopt simple market manipulation that calls forth a close examination of issues concerning deregulation. Conclusion: The paper examines two possible strategies for a typical monopolist-strategic pricing vis-a-vis a myopic pricing. The intuition is that the monopolist can manipulate the market by artificially creating shortages that result in an increase in current price that, in turn, boosts demand for the product in subsequent periods.
张克勇
2015-01-01
The optimal pricing decisions and profit of the manufacturer and retailer under the reciprocal preference behavior are studied, and the effect of this reciprocity preference on the decision behavior and channel efficiency is analyzed. The results show that the mutual reciprocity preference degree has a positive effect on the waste materials recycling proportion of manufacturer. The retailer’s reciprocity preference degree has a negative impact on the manufacturer’s wholesale price. The sales price of the retailer declines and the market demand expands with the mutual reciprocity preference increasing. At the same time, with the reciprocity preference degree of each member increasing, its own profit is diminishing, and other members’ profit is increasing. The mutual reciprocity preference behaviors can improve the channel profit and efficiency of the closed-loop supply chain.%研究制造商和零售商互惠偏好行为下的最优定价策略和利润，以及这种互惠偏好对决策行为和渠道效率的影响。研究发现，双方的互惠偏好程度对制造商废旧品回收比例呈正面影响；零售商互惠偏好程度对制造商产品批发价格呈负面影响；双方互惠偏好程度增加会导致零售商产品售价降低，从而产品市场需求量增加；系统成员的互惠偏好程度增加会导致自身收益减少和对方收益增加；互惠偏好行为有利于闭环供应链系统收益和渠道效率的提高。
Liu, Dong-sheng; Fan, Shu-jiang
2014-01-01
In order to offer mobile customers better service, we should classify the mobile user firstly. Aimed at the limitations of previous classification methods, this paper puts forward a modified decision tree algorithm for mobile user classification, which introduced genetic algorithm to optimize the results of the decision tree algorithm. We also take the context information as a classification attributes for the mobile user and we classify the context into public context and private context classes. Then we analyze the processes and operators of the algorithm. At last, we make an experiment on the mobile user with the algorithm, we can classify the mobile user into Basic service user, E-service user, Plus service user, and Total service user classes and we can also get some rules about the mobile user. Compared to C4.5 decision tree algorithm and SVM algorithm, the algorithm we proposed in this paper has higher accuracy and more simplicity.
Fair pricing, and pricing paradoxes
Barbara Swart
2016-05-01
Full Text Available The St Petersburg Paradox revolves round the determination of a fair price for playing the St Petersburg Game. According to the original formulation, the price for the game is infinite, and, therefore, paradoxical. Although the St Petersburg Paradox can be seen as concerning merely a game, Paul Samuelson (1977 calls it a “fascinating chapter in the history of ideas”, a chapter that gave rise to a considerable number of papers over more than 200 years involving fields such as probability theory and economics. In a paper in this journal, Vivian (2013 undertook a numerical investigation of the St Petersburg Game. In this paper, the central issue of the paradox is identified as that of fair (risk-neutral pricing, which is fundamental in economics and finance and involves important concepts such as no arbitrage, discounting, and risk-neutral measures. The model for the St Petersburg Game as set out in this paper is new and analytical and resolves the so-called pricing paradox by applying a discounting procedure. In this framework, it is shown that there is in fact no infinite price paradox, and simple formulas for obtaining a finite price for the game are also provided.
A periodic pricing model considering reference effect
Yang Hui
2016-01-01
Full Text Available The purpose of this paper is to investigate the optimal pricing strategies with reference effects in revenue management settings. We firstly propose a static pricing model with the properties of stochastic demand, finite horizon and fixed capacity, and prove the existence and uniqueness of the solution. Secondly, we extend the fixed pricing model to a periodic pricing model and incorporate a memory-based reference price in the demand function to investigate how the reference effect impacts on traditional revenue management decisions. We present numerical examples in both low demand situations and high demand situations for different levels of reference effects and different updating frequencies. The results show that the dynamic pricing strategies are superior to a static one even when reference effects are taken into consideration. We also provide some manage-rial insights including pricing directions, pricing dispersion and the optimal updating frequency for both demand situations.
Pay-what-you-want pricing schemes
Kahsay, Goytom Abraha; Samahita, Margaret
decisions and optimal prices across individuals. When a good is sold at a fixed price higher than a threshold value, a price that the individual thinks is fair, the adoption of PWYW increases his utility and hence results in a weakly higher purchase rate. When a good is sold at a fixed price lower than...... this threshold, however, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, in line with previously unexplained evidence from field experiments. Moreover, an increase in the threshold value decreases the buyer's utility and may further lower the purchase rate...
Balder, E.J.
1980-01-01
By employing fundamental results from “geometric” functional analysis and the theory of multifunctions we formulate a general model for (nonsequential) statistical decision theory, which extends Wald's classical model. From central results that hold for the model we derive a general theorem on the e
Zisk, Daniel S.; Owyar-Hosseini, Marion M.; DuBose, Philip B.
2015-01-01
Companies face many challenges as they staff managerial positions in overseas operations, including decisions on whether to staff using expatriates, host-country nationals, or third-country nationals. We developed an exercise--designed to help students understand the differences between these three groups of employees--that requires students to…
Brevers, Damien; Noël, Xavier; He, Qinghua; Melrose, James A; Bechara, Antoine
2016-05-01
The aim of this study was to examine the impact of different neural systems on monetary decision making in frequent poker gamblers, who vary in their degree of problem gambling. Fifteen frequent poker players, ranging from non-problem to high-problem gambling, and 15 non-gambler controls were scanned using functional magnetic resonance imaging (fMRI) while performing the Iowa Gambling Task (IGT). During IGT deck selection, between-group fMRI analyses showed that frequent poker gamblers exhibited higher ventral-striatal but lower dorsolateral prefrontal and orbitofrontal activations as compared with controls. Moreover, using functional connectivity analyses, we observed higher ventral-striatal connectivity in poker players, and in regions involved in attentional/motor control (posterior cingulate), visual (occipital gyrus) and auditory (temporal gyrus) processing. In poker gamblers, scores of problem gambling severity were positively associated with ventral-striatal activations and with the connectivity between the ventral-striatum seed and the occipital fusiform gyrus and the middle temporal gyrus. Present results are consistent with findings from recent brain imaging studies showing that gambling disorder is associated with heightened motivational-reward processes during monetary decision making, which may hamper one's ability to moderate his level of monetary risk taking.
Optimal dynamic pricing for deteriorating items with reference-price effects
Xue, Musen; Tang, Wansheng; Zhang, Jianxiong
2016-07-01
In this paper, a dynamic pricing problem for deteriorating items with the consumers' reference-price effect is studied. An optimal control model is established to maximise the total profit, where the demand not only depends on the current price, but also is sensitive to the historical price. The continuous-time dynamic optimal pricing strategy with reference-price effect is obtained through solving the optimal control model on the basis of Pontryagin's maximum principle. In addition, numerical simulations and sensitivity analysis are carried out. Finally, some managerial suggestions that firm may adopt to formulate its pricing policy are proposed.
Spatial price dynamics: From complex network perspective
Li, Y. L.; Bi, J. T.; Sun, H. J.
2008-10-01
The spatial price problem means that if the supply price plus the transportation cost is less than the demand price, there exists a trade. Thus, after an amount of exchange, the demand price will decrease. This process is continuous until an equilibrium state is obtained. However, how the trade network structure affects this process has received little attention. In this paper, we give a evolving model to describe the levels of spatial price on different complex network structures. The simulation results show that the network with shorter path length is sensitive to the variation of prices.
赵一洁
2012-01-01
In the market economy, real estate prices play an important function and role in the economic development and economic operation of the real estate, therefore, forecasting price the changes in housing price and how to rationally develop housing prices is particularly important. Price forecast, in essence, is the decision-making activity which reflects on the numerical value. This paper conducted predicted study on housing prices, combing with multi-attribute decision model and regression analysis. Through the selection of parts of macroscopical factors of affecting housing prices to build entropy-based multi-attribute decision-making model, the relationships between various factors and housing prices are obtained, and housing prices are predicted by regression analysis.%在市场经济条件下,房地产价格在房地产经济发展和房地产经济运行中有着重要的功能和作用,因此,对房价变动的预测以及如何能够合理制定房价,显得尤为重要.价格的预测,究其本质,是一种体现在数值上的决策活动,本文结合了多属性综合决策模型与回归分析对房价进行了预测研究.通过选取影响房价的部分宏观因素,建立基于熵的多属性综合决策模型,得到各因素与房价之间的关系,并通过回归分析,对房价进行预测.
梁玉玲
2012-01-01
There are a lot of problems existing in the bidding controlling price under the mode of BOQ (bill of quantity). After analyzing the causes of the problems like inaccurate calculation of quantities and wrong aggregative unit price, countermeasures to solve these problems were suggested.%工程量清单模式下编制的招标控制价,存在的问题很多.本文通过工程案例对招标控制价出现工程量计算不准确、综合单价不对的问题,进行分析其原因;并提出解决问题对策.
Ellaway, Rachel H; Poulton, Terry; Jivram, Trupti
2015-01-01
In 2009, St George's University of London (SGUL) replaced their paper-based problem-based learning (PBL) cases with virtual patients for intermediate-level undergraduate students. This involved the development of Decision-Problem-Based Learning (D-PBL), a variation on progressive-release PBL that uses virtual patients instead of paper cases, and focuses on patient management decisions and their consequences. Using a case study method, this paper describes four years of developing and running D-PBL at SGUL from individual activities up to the ways in which D-PBL functioned as an educational system. A number of broad issues were identified: the importance of debates and decision-making in making D-PBL activities engaging and rewarding; the complexities of managing small group dynamics; the time taken to complete D-PBL activities; the changing role of the facilitator; and the erosion of the D-PBL process over time. A key point in understanding this work is the construction and execution of the D-PBL activity, as much of the value of this approach arises from the actions and interactions of students, their facilitators and the virtual patients rather than from the design of the virtual patients alone. At a systems level D-PBL needs to be periodically refreshed to retain its effectiveness.
OPTIMAL PRICING OF A PERSONALIZED PRODUCT
Suresh P.SETHI
2008-01-01
This paper deals with optimal pricing of a personalized product such as a personal portrait or photo.A new model of the pricing structure inspired by two real-life cases is introduced to the literature and solved to obtain optimal photo sitting fees and the final product price.A sensitivity analysis with respect to the problem parameters is performed.
Pricing Strategy versus Heterogeneous Shopping Behavior under Market Price Dispersion
Francisco Álvarez
2016-01-01
Full Text Available We consider the ubiquitous problem of a seller competing in a market of a product with dispersed prices and having limited information about both his competitors’ prices and the shopping behavior of his potential customers. Given the distribution of market prices, the distribution of consumers’ shopping behavior, and the seller’s cost as inputs, we find the computational solution for the pricing strategy that maximizes his expected profits. We analyze the seller’s solution with respect to different exogenous perturbations of parametric and functional inputs. For that purpose, we produce synthetic price data using the family of Generalized Error Distributions that includes normal and quasiuniform distributions as particular cases, and we also generate consumers’ shopping data from different behavioral assumptions. Our analysis shows that, beyond price mean and dispersion, the shape of the price distribution plays a significant role in the seller’s pricing solution. We focus on the seller’s response to an increasing diversity in consumers’ shopping behavior. We show that increasing heterogeneity in the shopping distribution typically lowers seller’s prices and expected profits.
Mustafa Ahmet Beyazıt Ocaktan
2013-06-01
Full Text Available Real life problems are generally large-scale and difficult to model. Therefore, these problems can't be mostly solved by classical optimisation methods. This paper presents a reinforcement learning algorithm using a multi-layer artificial neural network to find an approximate solution for large-scale semi Markov decision problems. Performance of the developed algorithm is measured and compared to the classical reinforcement algorithm on a small-scale numerical example. According to results of numerical examples, a number of hidden layer are the key success factors, and average cost of the solution generated by the developed algorithm is approximately equal to that generated by the classical reinforcement algorithm.
First Responder Problem Solving and Decision Making in Today’s Asymmetrical Environment
2008-03-01
Intuitive and Analytical Approaches.68 67 Klein, Sources, 96. 26 Thomas Karp , a Ph.D. candidate at...New York: Currency Doubleday, 2004): 67. 69Thomas Karp , “Intuitive Decision Making in Strategy Management,” Research Paper-Rushmore University...ed) Roberta Calderwood et al, (Norwood, New Jersey: Ablex Publishing Corporation, 1993) 140. 168 Stanley C. Collyer and Gerald S. Malecki, “Tactical
Álvarez-Falconí, Pedro P.; Médico Farmacólogo, Bachiller en Derecho, Doctor en Medicina. Centro Nacional de Salud Pública, Instituto Nacional de Salud. Lima, Perú. Laboratorio de Investigación en Plantas Medicinales, Instituto Nacional de Salud. Lima, Perú.
2007-01-01
This review evaluates the relevant information on a variety of adverse drug reactions serious, real or potential, attributed to some drugs relatively recent introduction into the world market, in addition, on some intoxications by contaminated medicines, all of which contributed to decision-making in the past and present, by regulatory authorities in drugs in several countries. It explores the broad strategies related to the pillars of the drug policies, the historical and current events ...
Technical Decisions on Several Key Problems in VHDL High Level Synthesis System
LIU Mingye; ZHANG Dongxiao; XU Qingping
1999-01-01
This paper studies the realization ofthe high level synthesis from system behavioral (algorithmic orfunctional) description of circuits to structural description of RTL andlogic level. Based on Xilinx-FPGA library, the structural description ismapped to technology-dependent ASIC, and FPGA chips are generated. Themain points in this paper include the technical decision of eachsub-system in a VHDL high level synthesis system HLS/BIT. The system isrealized on SUN SPARC 2, and correct running results are given.
R. Roostaee
2012-01-01
Full Text Available Decisions in the real-world contexts are often made in the presence of multiple, conflicting, and incommensurate criteria. Multiobjective programming methods such as multiple objective linear programming (MOLP are techniques used to solve such multiple-criteria decision-making (MCDM problems. One of the first interactive procedures to solve MOLP is STEM method. In this paper we try to improve STEM method in a way that we search a point in reduced feasible region whose criterion vector is closest to positive ideal criterion vector and furthest to negative ideal criterion vector. Therefore the presented method tries to increase the rate of satisfactoriness of the obtained solution. Finally, a numerical example for illustration of the new method is given to clarify the main results developed in this paper.
Grover, Jeff
2016-01-01
This book is an extension of the author’s first book and serves as a guide and manual on how to specify and compute 2-, 3-, & 4-Event Bayesian Belief Networks (BBN). It walks the learner through the steps of fitting and solving fifty BBN numerically, using mathematical proof. The author wrote this book primarily for naïve learners and professionals, with a proof-based academic rigor. The author's first book on this topic, a primer introducing learners to the basic complexities and nuances associated with learning Bayes’ theory and inverse probability for the first time, was meant for non-statisticians unfamiliar with the theorem - as is this book. This new book expands upon that approach and is meant to be a prescriptive guide for building BBN and executive decision-making for students and professionals; intended so that decision-makers can invest their time and start using this inductive reasoning principle in their decision-making processes. It highlights the utility of an algorithm that served as ...
Mühlbacher, Axel C; Kaczynski, Anika
2016-02-01
Healthcare decision making is usually characterized by a low degree of transparency. The demand for transparent decision processes can be fulfilled only when assessment, appraisal and decisions about health technologies are performed under a systematic construct of benefit assessment. The benefit of an intervention is often multidimensional and, thus, must be represented by several decision criteria. Complex decision problems require an assessment and appraisal of various criteria; therefore, a decision process that systematically identifies the best available alternative and enables an optimal and transparent decision is needed. For that reason, decision criteria must be weighted and goal achievement must be scored for all alternatives. Methods of multi-criteria decision analysis (MCDA) are available to analyse and appraise multiple clinical endpoints and structure complex decision problems in healthcare decision making. By means of MCDA, value judgments, priorities and preferences of patients, insurees and experts can be integrated systematically and transparently into the decision-making process. This article describes the MCDA framework and identifies potential areas where MCDA can be of use (e.g. approval, guidelines and reimbursement/pricing of health technologies). A literature search was performed to identify current research in healthcare. The results showed that healthcare decision making is addressing the problem of multiple decision criteria and is focusing on the future development and use of techniques to weight and score different decision criteria. This article emphasizes the use and future benefit of MCDA.
对我国矿业权价款评估中几个主要问题的思考%Study on several main problems of the mining rights price evaluation in China
孟刚; 郭会山; 赵亚利; 吴韫婧
2015-01-01
This paper introduced the present status in the price of mining rights evaluation management ,analyzed the current our country the main problems existing in the price of mining rights evaluation .In view of these problems ,put forward to establishing "the price of mining rights"connotation , mining right price formation mechanism ,build system of classification of grading evaluation institutions , optimization of mineral resources development and utilization plan ,strengthen the compliance evaluation report ,improve the rationality of the evaluation results such as suggestions .%本文介绍了我国矿业权价款评估管理的基本现状，分析了当前我国矿业权价款评估中存在的主要问题。针对这些问题，提出了进一步明确矿业权价款内涵，统一矿业权价款形成机制，建立评估机构分类分级制度，优化矿产资源开发利用方案，加强评估报告的合规性审查，提高评估结果的合理性等建议。
Pricing strategies in online & offline retailing
Gruber, Gottfried
2008-01-01
The thesis deals with pricing strategies for multichannel retailers, especially traditional stores which additionally manage an online shop. The problem of integrating two sales channels and applying a well-suited pricing strategy is still an emergent question. This work develops a stochastic model to represent consumer behavior on pricing. On the one hand the model contains two probability functions which render consumers' reservation prices for each individual channel. On the other hand the...
A Decision Support Method for Truck Scheduling and Storage Allocation Problem at Container
CAO Jinxin; SHI Oixin; Der-Horng Lee
2008-01-01
Truck scheduling and storage allocation, as two separate subproblems in port operations, have been deeply studied in past decades. However, from the operational point of view, they are highly interde-pendent. Storage allocation for import containers has to balance the travel time and queuing time of each container in yard. This paper proposed an integer programming model handling these two problems as a whole. The objective of this model is to reduce congestion and waiting time of container trucks in the termi-nal so as to decrease the makespan of discharging containers. Due to the inherent complexity of the prob-lem, a genetic algorithm and a greedy heuristic algorithm are designed to attain near optimal solutions. It shows that the heuristic algorithm can achieve the optimal solution for small-scale problems. The solutions of small- and large-scale problems obtained from the heuristic algorithm are better than those from the ge-netic algorithm.
2015-09-24
19. Colloquium lecture at College of Management , National Chiao Tung University, June 22, 2012. Title: Unified Framework in Global Supply Chain and...the well-known logistic equation in population dynamical systems can be reformulated as a global optimization problem, which could have at most 2n...making, supply chain , scheduling problems, and computational mechanics, etc. Impacts to the communities: The canonical duality theory is now
Hubert, Jerzy Z.; Lenda, Andrzej
2003-08-01
The presented model takes account of the fact that any decision process-involving choosing at least between two options, in order to be physically realisable, needs to be coupled to some information negentropy source. This is in accordance with Brillouin's Principle (of information). In social decision processes the source of this information negentropy must function in any system that is subject to the decision process. Thermodynamically, such a process can be understood as an inside on-going continuous process of transformation of an internal thermodynamic quantity into informational quantity, or, more precisely: as a transformation of thermodynamic negentropy generated in various metabolic processes going in human body into information negentropy or information tout court. Initial probabilities of selection and choice are defined as in the Weidlich-Haag social synergetics model. Its connection to the negentropy balance equation is made via the traditional quantity, widely used in economics, i.e., the utility value. Thus, in our approach we try to synthesise the Weidlich-Haag social synergetics probabilistic approach with Brillouin's information-thermodynamics method of reasoning. From this model stems an idea of mathematical modelling and physical explanation of one of the basic human and social phenomena: the need of change-change for the sake of change, i.e., without any visible motivations and reasons that would be external to the system. The computations make use of Monte Carlo method in which the time stories of each individual are followed. The results of computations are discussed also in terms of other really observed social phenomena. It seems that the presented method is ample and versatile and can explain-at least qualitatively-many of such phenomena.
2010-01-01
Huddleston T k P id t t i l i thas : rov e a u or a n e leading methodology for making decisions with multiple competing objectives, demonstrate...mathematical manipulation Constructed – some alteration of original measurement Example Fundamental Objective The Mission of the United States Military...mathematical manipulation Constructed – some alteration of original measurement Affinity Diagramming Identifying the functions that matter
A Study on Transfer Pricing Decisions of Multinational Enterprises in China%我国跨国公司转移定价决策之目标规划模型应用研究
万寿义; 崔健波
2012-01-01
我国跨国公司内部各国（地区）子单元之间进行产品转移时,总部由于要权衡经济、政治、市场等多种因素,实现公司管理层预先设定的多个目标,常面临转移价格如何确定以使得目标优化的难题。在考虑需同时实现满足定价范围要求、全球利润最大化及子公司利润计划等多重且相互冲突的目标,目标有着优先顺序的情况下,跨国公司应适时、正确作出转移定价决策,以确保经营目标达成。%When there is product transfer among sub--units of multinational companies in Chi- na, due to economic, political and market factors, the headquarter is faced with the difficulty how to price the intermediate goods transferred among its subsidiaries throughout the world in order to realize the designed goals by the managers. And we should also consider to satisfy the demand of pricing, global profit maximization and profit plans of subsidiaries, and under the condition that the goals has a sequence, the multinationals should make a correct decision to transfer pricing, in order to secure the achievement of business goals.
Podinovski, V. V.
2008-01-01
A set of interrelated methods is presented for analyzing multicriteria decision-making problems on the basis of an information on the criteria importance and change of the preferences along their scales. Computer systems of decision-making support, implementing these methods within the methodology o
XIAO Jian; CHEN Yi-hua
2005-01-01
Based on genetic algorithms, a solution algorithm is presented for the bi-level decision making problem with continuous variables in the upper level in accordance with the bi-level decision making principle. The algorithm is compared with Monte Carlo simulated annealing algorithm, and its feasibility and effectiveness are verified with two calculating examples.
Elaheh Abazarian
2015-01-01
Conclusion: The results showed that teaching problem solving and decision making skills was very effective in reducing diabetic patients′ depression and anxiety and resulted in reducing their depression and anxiety.
Essays on International Finance and Asset Pricing
Eiling, E.
2007-01-01
The second part of this dissertation takes a more general asset pricing perspective. In particular, it investigates the impact of human capital on asset pricing. Investors' portfolio decisions may be affected by their human capital. For instance, an investor who works in the IT sector may want to
Framing of decision problem in short and long term and probability perception
Anna Wielicka-Regulska
2010-01-01
Full Text Available Consumer preferences are dependent on problem framing and time perspective. For experiment’s participants avoiding of losses was less probable in distant time perspective than in near term. On the contrary, achieving gains in near future was less probable than in remote time. One may expect different reactions when presenting problem in terms of gains than in terms of losses. This can be exploited in promotion of highly desired social behaviours like savings for retirement, keeping good diet, investing in learning, and other advantageous activities that are usually put forward by consumers.
Ecological Knowledge: Acquisition and Use in Problem Solving and in Decision Making.
Spada, Hans; And Others
1987-01-01
The ecological knowledge of university students was analyzed under psychological and educational aspects via a computer simulation, an environmental game consisting of a variant of the Commons Dilemma, and a computerized text base on an actual environmental problem. Conditions impairing acquisition and use of ecological knowledge were discovered.…
Hesitant fuzzy soft sets with application in multicriteria group decision making problems.
Wang, Jian-qiang; Li, Xin-E; Chen, Xiao-hong
2015-01-01
Soft sets have been regarded as a useful mathematical tool to deal with uncertainty. In recent years, many scholars have shown an intense interest in soft sets and extended standard soft sets to intuitionistic fuzzy soft sets, interval-valued fuzzy soft sets, and generalized fuzzy soft sets. In this paper, hesitant fuzzy soft sets are defined by combining fuzzy soft sets with hesitant fuzzy sets. And some operations on hesitant fuzzy soft sets based on Archimedean t-norm and Archimedean t-conorm are defined. Besides, four aggregation operations, such as the HFSWA, HFSWG, GHFSWA, and GHFSWG operators, are given. Based on these operators, a multicriteria group decision making approach with hesitant fuzzy soft sets is also proposed. To demonstrate its accuracy and applicability, this approach is finally employed to calculate a numerical example.
A hybrid model using decision tree and neural network for credit scoring problem
Amir Arzy Soltan
2012-08-01
Full Text Available Nowadays credit scoring is an important issue for financial and monetary organizations that has substantial impact on reduction of customer attraction risks. Identification of high risk customer can reduce finished cost. An accurate classification of customer and low type 1 and type 2 errors have been investigated in many studies. The primary objective of this paper is to develop a new method, which chooses the best neural network architecture based on one column hidden layer MLP, multiple columns hidden layers MLP, RBFN and decision trees and ensembling them with voting methods. The proposed method of this paper is run on an Australian credit data and a private bank in Iran called Export Development Bank of Iran and the results are used for making solution in low customer attraction risks.
Willis, Janese M; Edwards, Rex; Anstrom, Kevin J; Johnson, Fred S; Del Fiol, Guilherme; Kawamoto, Kensaku; Lapointe, Nancy M Allen; Eisenstein, Eric L; Lobach, David F
2013-01-01
Although evidence-based pharmacotherapies are a principal component of patient care, 30-50% of patients do not take their medications as prescribed. We conducted a randomized trial of two clinical decision support (CDS) interventions in 2219 patients: patient adherence reports to providers (n=744), patient adherence reports to providers + email notices to care managers (n=736), and controls (739). At 18-month follow-up, there were no treatment-related differences in patient medication adherence (overall, by medication class, and by medical condition). There also were no treatment-related differences in patient clinical and economic outcomes. Thus, while this study's CDS information interventions were successfully delivered to providers and care managers, and were effective in identifying medication adherence deficits and in increasing care manager responses to medication adherences issues, these interventions were not able to alter patient medication behavior.
Tavakkoli-Moghaddam, Reza; Forouzanfar, Fateme; Ebrahimnejad, Sadoullah
2013-07-01
This paper considers a single-sourcing network design problem for a three-level supply chain. For the first time, a novel mathematical model is presented considering risk-pooling, the inventory existence at distribution centers (DCs) under demand uncertainty, the existence of several alternatives to transport the product between facilities, and routing of vehicles from distribution centers to customer in a stochastic supply chain system, simultaneously. This problem is formulated as a bi-objective stochastic mixed-integer nonlinear programming model. The aim of this model is to determine the number of located distribution centers, their locations, and capacity levels, and allocating customers to distribution centers and distribution centers to suppliers. It also determines the inventory control decisions on the amount of ordered products and the amount of safety stocks at each opened DC, selecting a type of vehicle for transportation. Moreover, it determines routing decisions, such as determination of vehicles' routes starting from an opened distribution center to serve its allocated customers and returning to that distribution center. All are done in a way that the total system cost and the total transportation time are minimized. The Lingo software is used to solve the presented model. The computational results are illustrated in this paper.
Baumberger-Henry, Mary
2005-04-01
The purpose of this study was to investigate the effectiveness of cooperative learning techniques combined with case study on nursing students' self-perception of problem-solving and decision making skills in comparison with other teaching-learning methods. A quasi-experimental pre-test to post-test static group comparison design was used to determine the influence of the different teaching methodologies. Three associate degree colleges provided a convenience sample of nursing students (N=123). An experimental group (n=31) was taught through cooperative learning and case study. One comparison group, was taught through lecture and large group case study (n=46) and another comparison group was taught through lecture only (n=24). A third comparison group taught through lecture and occasional use of non-cooperative learning groups using continuing case study (n=22) was used as a post-test only control group. No two groups were significantly different at the 0.5 level. The results, however, showed that the experimental group obtained scores indicating somewhat better self-perception of both problem-solving and decision making skills.
Price Strategies between a Dominant Retailer and Manufacturers
Cho, Hsun Jung; Mak, Hou Kit
2009-08-01
Supply chain-related game theoretical applications have been discussed for decades. This research accounts for the emergence of a dominant retailer, and the retailer Stackelberg pricing models of distribution channels. Research in the channel pricing game may use different definitions of pricing decision variables. In this research, we pay attentions to the retailer Stackelberg pricing game, and discuss the effects when choosing different decision variables. According the literature it was shown that the strategies between channel members depend critically on the form of the demand function. Two different demand forms—linear and non-linear—will be considered in our numerical example respectively. Our major finding is the outcomes are not relative to manufacturers' pricing decisions but to the retailer's pricing decision and choosing percentage margin as retailer's decision variable is the best strategy for the retailer but worst for manufacturers. The numerical results show that it is consistence between linear and non-linear demand form.
马战宝; 汪晓华
2014-01-01
In this paper, we proposed the pricing decision model for the logistics services on the basis of the improved artificial fish swarm algorithm. First we built the mathematic model of the pricing decisions for logistics services, then solved it using the artificial fish swarm algorithm after improving it by correcting its tendency toward local optimization, and next in connection with the feedback strategy, improved the efficiency of the artificial fish swarm algorithm in solving the logistics parameters to reduce cost and realize maximum revenue. At the end, through a simulation, we found that the artificial fish swarm algorithm could satisfactorily provide service pricing solutions for the logistics enterprises.%在物流资金既定的情况下，不同的定价方案，物流企业的获利不同，为了获得更优的物流服务定价决策方案，提高收益率，提出一种改进人工鱼群算法的物流服务定价决策模型。首先建立物流服务定价决策数学模型，模型对物流企业各环节设置参数，定量地衡量这些指标对资金的消耗，然后采用人工鱼群算法对模型进行求解，在求解过程中，利用混沌运动的遍历性，对物流车辆的增加、仓库动态容量的优化、物流人员培训的最佳人数进行了混沌遍历分析，解决了人工鱼群算法对这些物流参数分析时易陷入局部最优的难题，并结合反馈策略，提高了人工鱼群算法对物流参数的求解效率，节约了成本，实现了利益最大化。仿真结果表明，改进人工鱼群算法可以获得使物流企业更加满意的服务定价决策方案，提高了收益率，降低了风险。
Female employment in regions of the North of Russia: problems and decision ways
Vera Eduardovna Toskunina
2013-12-01
Full Text Available This article is devoted to the analysis of condition of female employment in regions of North of Russia. The research hypothesis is an assumption that the possibilities of female employment in northern regions of Russia are considerably reduced because of branch structure of economy with its raw trend. It increase a problem of female unemployment and causes necessity to take the additional measures for its adjustment by the executive authority The authors allocated the major factors influencing on the possibilities of women’s employment in a region. The tools are proved, and recommendations about decreasing the existing problems in the field of female employment in subjects of the Northern part of the Russian Federation are given on the basis of the analysis of statistical data, standard regulation, and policy documents.
Zied Hajej; Nidhal Rezg; Ali Gharbi
2015-01-01
Due to the expensive production equipment, many manufacturers usually lease production equipment with a warranty period during a finite leasing horizon, rather than purchasing them. The lease contract contains the possibility of obtaining an extended warranty for a given additional cost. In this paper, based on the forecasting production/maintenance optimization problem, we develop a mathematical model to study the lease contract with basic and extended warranty based on win-win relationship ...
Pricing Mechanism in Power Market Construction
无
2005-01-01
The reform on electricity pricing mechanism is a critical problem in power market construction in China, and is in mutual supplementation and promotion with the latter. In particular, the pricing mechanism for electricity fed into network and that for electricity transmission and distribution as well as the relationship between coal and electricity prices, etc. Have to be studied in depth. This paper presents several solutions and suggestions to these problems.
International drug price comparisons: quality assessment.
Machado, Márcio; O'Brodovich, Ryan; Krahn, Murray; Einarson, Thomas R
2011-01-01
To quantitatively summarize results (i.e., prices and affordability) reported from international drug price comparison studies and assess their methodological quality. A systematic search of the most relevant databases-Medline, Embase, International Pharmaceutical Abstracts (IPA), and Scopus, from their inception to May 2009-was conducted to identify original research comparing international drug prices. International drug price information was extracted and recorded from accepted papers. Affordability was reported as drug prices adjusted for income. Study quality was assessed using six criteria: use of similar countries, use of a representative sample of drugs, selection of specific types of prices, identification of drug packaging, different weights on price indices, and the type of currency conversion used. Of the 1 828 studies identified, 21 were included. Only one study adequately addressed all quality issues. A large variation in study quality was observed due to the many methods used to conduct the drug price comparisons, such as different indices, economic parameters, price types, basket of drugs, and more. Thus, the quality of published studies was considered poor. Results varied across studies, but generally, higher income countries had higher drug prices. However, after adjusting drug prices for affordability, higher income countries had more affordable prices than lower income countries. Differences between drug prices and affordability in different countries were found. Low income countries reported less affordability of drugs, leaving room for potential problems with drug access, and consequently, a negative impact on health. The quality of the literature on this topic needs improvement.
牛志勇; 高维和; 江若尘
2013-01-01
公平偏好行为成为渠道成员决策的重要考虑因素,利用实验的方法研究公平偏好下渠道成员的价格决策.通过博弈实验方法研究渠道成员的价格决策并做进一步的动态检验,分别设定控制条件、公平关系和权势关系3个条件研究不同环境下的价格决策,并对价格决策的动态性进行检验,最后通过Logit模型估计偏好参数.研究结果表明,实验中决策者制定的价格低于传统理论分析的结果,接近于公平偏好理论下的结果,证明存在公平偏好；权势关系下渠道的整体收益最低,公平关系下的收益最高,说明公平偏好确实在渠道交易中起正面效用；激烈的竞争导致公平偏好下降,实验者经济目标和公平偏好随时问变动有互动关系.研究结果可对渠道价格契约的设计提出指导性建议,相关的数值计算为进一步研究提供理论支持.%We draw on experimental methods to study channel members' price decision since fairness preference is becoming a major consideration for such behavior. The gme testing method is used to dynamically test channel members' price decision in three setting conditions; control, fair and power. Then we estimate preference parameters by the Logit model. The results of our analysis prove the existence of fairness preference since the price of maker's decision is lower than that of traditional theoretical results and closes to that of fairness preference theoretical results. The overall revenue is lowest in power condition and highest in fair condition, which demonstrates that fairness preference plays a positive role in channel transactions. Fierce competition will lead to the decline of fairness preference and over time there exists interactive relationship between subjects' economic objective and fairness preference. Our research results propose instructive suggestion to the design of channel price contract, while related numerical calculation provides
Tahvili, Sahar [Mälardalen University (Sweden); Österberg, Jonas; Silvestrov, Sergei [Division of Applied Mathematics, Mälardalen University (Sweden); Biteus, Jonas [Scania CV (Sweden)
2014-12-10
One of the most important factors in the operations of many cooperations today is to maximize profit and one important tool to that effect is the optimization of maintenance activities. Maintenance activities is at the largest level divided into two major areas, corrective maintenance (CM) and preventive maintenance (PM). When optimizing maintenance activities, by a maintenance plan or policy, we seek to find the best activities to perform at each point in time, be it PM or CM. We explore the use of stochastic simulation, genetic algorithms and other tools for solving complex maintenance planning optimization problems in terms of a suggested framework model based on discrete event simulation.
当前矿业权出让若干问题的探讨%The discussions of some problems about the current remising price of mining right
龚兴祥
2011-01-01
矿业权出让是国家对矿业权处置的一种方式,是矿业权市场建设中的一个重要方面。针对当前矿业权出让实际操作中存在的矿业权价款数额的确定、矿业权价款的决定程序等问题进行了探讨,以实现矿业权出让市场的公平、公正,对矿业权市场建设有所借鉴。%The remising of mining right is a way of selling out mining rights on behalf of a country.And it is an important aspect of the mining right＇s market construction.Presently there were some problems in its operation such as how to decide the payment amount of the mining right cost,and what is the decision procedure for the mining right＇s price？ Which have an immediate effect on the the essence of mining right cost and the fairness of mining right market.This article attempts to be helpful to the operation of the mining right market construction.
Pay-what-you-want pricing schemes
Kahsay, Goytom Abraha; Samahita, Margaret
2015-01-01
Pay-What-You-Want (PWYW) pricing schemes are becoming increasingly popular. We develop a model incorporating self-image into the buyer’s utility function and introduce heterogeneity in consumption utility and image-sensitivity, generating different purchase decisions and optimal prices across...... individuals. When a good’s fixed price is lower than a threshold fair value, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, accounting for previously unexplained field experimental evidence. An increase in the threshold value decreases the buyer’s utility...
Crop price indemnified loans for farmers
Karlan, Dean; Kutsoati, Ed; McMillan, Margaret; Udry, Chris
2010-01-01
Farmers face a particular set of risks that complicate the decision to borrow. We use a randomized experiment to investigate (1) the role of crop-price risk in reducing demand for credit among famers and (2) how risk mitigation changes farmers’ investment decisions. In rural Ghana, we offer farmers loans with an indemnity component that forgives 50 percent of the loan if crop prices drop below a threshold price. A control group is offered a standard loan product at the same interest rate. We ...
谭建; 王先甲
2014-01-01
With the impact of the advertising for both market demand and recovery , using game theory , established the integrated decision models (centralized decision-making , manufacturer recovery and advertising , retailer recovery and advertising ) and manufac-turer advertising decision models (manufacturer recycling , retailer recycling ) , we got the profit of each members , total profit , optimal advertising level , products wholesale price , retail price in the supply chain , and comparative analysis and simulation analysis were given at last . Research results show that , the higher efficiency of advertising in the two aspects of recovery and marketing , advertising invest-ment is more , and it makes the market demand and product recovery rate increasing , ultimately improve profits of manufacturer , retailer , and the overall . According to different market target , the manufacture can adopt different channel strategy .%在广告既能影响市场需求又能影响回收的条件下，本文运用博弈论，建立了一体化决策模式（集中决策、制造商回收广告、零售商回收广告）与制造商广告决策模式（制造商广告时制造商回收、零售商回收），得出最优广告水平、产品批发价、产品零售价及供应链中各成员的利润与总体利润，并对结果进行了比较与仿真分析。研究结果表明广告在回收与营销两个方面的效率越高，则广告投入也就越多，使得市场需求量与产品回收率增加，最终提高了制造商、零售商、总体利润。针对不同的市场目标，可以采用不同的渠道策略。
Optimal Enterprise Decision Based on Competition of Price and Quality of PSS%产品服务系统中价格、质量竞争下的最优决策
韩亚娟; 谢会
2014-01-01
Based on the fact that , in product service systems ( PSS ) , products have dual properties of physics and service , which influences the revenue of an enterprise through pricing strategy .The demand function and revenue model are constructed by considering the three factors simultaneously .First, the problem of finding the maximum profit by determining the price , product quality level , and service quality level is analyzed and solved .Then, the influence of price sensitive factor , the product quality sensitive factor, and the service quality sensitive factor to the revenue model is discussed .The results show that an enterprise should adjust the most sensitive factors to obtain the maximum benefit .%针对产品服务系统具有实物产品和服务的双重属性，并与价格一起影响企业收益的问题，建立了同时考虑这3个因素的顾客需求函数和系统收益模型。首先，证明了使收益最大化的价格、产品质量和服务质量的最优解的存在。其次，分析了价格、产品质量、服务质量的敏感系数对收益的影响，结果表明：企业应通过优先调整顾客最敏感的因素来获得最大收益。
Corporate Income Taxation: Selected Problems and Decisions. The Case of Ukraine
Kateryna Proskura
2016-04-01
Full Text Available This paper is devoted to the issues of corporate income taxation in Ukraine and finding ways to resolve them in the context of European integration. The aim of this paper is demonstrate ways to improve corpo- rate income taxation on the basis of balancing the interests of taxpayers against those of the government. The paper will highlight the key issues of corporate income taxation in Ukraine with its large share of unprofitable enterprises, unequal regulations for different corporate taxpayers and the requirement to pay tax advances even where there is an absence of taxable income. Based on our analysis, the causes of the origin and deepening problems of corporate income taxation in Ukraine will be demonstrated. A compar- ative analysis of income taxation in Poland and Ukraine was performed. It is believed that some elements of the Polish experience in the taxation of income can be applied to Ukraine.
A. V. Skrypnikov
2015-01-01
working out in detail of them as far as development and clarification of other subsystems of management information, i.e. decision of questions of development of complex hardware in the conditions of incompleteness of data about the info-base of the system.
THE CLASSIFICATION OF UNCERTAINTY OF THE KEY FACTORS PRICING IN TOURISM SPHERE
N. Sagalakova
2015-10-01
Full Text Available Specific characteristics of non-productive processes in the sphere of tourism and their difference from processes of the production sphere are investigated. Features of the pricing process at the tourism enterprise are analyzed. The main problems at implementation of model of the optimum price formation of a tourism product are identified. Classification of factors of pricing at the tourism enterprise is constructed. For the comparative analysis all factors of influence on pricing process, it is possible to divide into groups on the following classification signs: controllability (controllable and uncontrollable; accessory to system (internal and external; quantification (quantitative and qualitative; stability (stable and unstable. Interpretation to the main types of uncertain parameters, which exert impact on the price of a tourism product, is given. The accounting of uncertainty of the price when forming a tourism product will allow to construct adequate forecasts on the basis of which effective decisions concerning management of the pricing process at the tourism enterprise will be made.
霍明华
2015-01-01
The paper interprets the definition of the fixed unit price contract,introduces its features reference and applied scopes,illustrates its operation and requirements by combining with its significance in practice,and points out respective measures for some problems in the fixed unit price contract.%解释了固定单价合同的定义，对固定单价合同的特点、依据及适用范围作了介绍，结合固定单价合同的使用意义，阐述了固定单价合同的操作和要求，并针对固定单价合同容易出现的问题提出了应对措施。
Pricing of Claims in Discrete Time with Partial Information
Rognlien Dahl, Kristina, E-mail: kristrd@math.uio.no [University of Oslo, Department of Mathematics (Norway)
2013-10-15
We consider the pricing problem of a seller with delayed price information. By using Lagrange duality, a dual problem is derived, and it is proved that there is no duality gap. This gives a characterization of the seller's price of a contingent claim. Finally, we analyze the dual problem, and compare the prices offered by two sellers with delayed and full information respectively.
Wood, Nathan; Jones, Jeanne; Schelling, John; Schmidtlein, Mathew
2014-01-01
Tsunami vertical-evacuation (TVE) refuges can be effective risk-reduction options for coastal communities with local tsunami threats but no accessible high ground for evacuations. Deciding where to locate TVE refuges is a complex risk-management question, given the potential for conflicting stakeholder priorities and multiple, suitable sites. We use the coastal community of Ocean Shores (Washington, USA) and the local tsunami threat posed by Cascadia subduction zone earthquakes as a case study to explore the use of geospatial, multi-criteria decision analysis for framing the locational problem of TVE siting. We demonstrate a mixed-methods approach that uses potential TVE sites identified at community workshops, geospatial analysis to model changes in pedestrian evacuation times for TVE options, and statistical analysis to develop metrics for comparing population tradeoffs and to examine influences in decision making. Results demonstrate that no one TVE site can save all at-risk individuals in the community and each site provides varying benefits to residents, employees, customers at local stores, tourists at public venues, children at schools, and other vulnerable populations. The benefit of some proposed sites varies depending on whether or not nearby bridges will be functioning after the preceding earthquake. Relative rankings of the TVE sites are fairly stable under various criteria-weighting scenarios but do vary considerably when comparing strategies to exclusively protect tourists or residents. The proposed geospatial framework can serve as an analytical foundation for future TVE siting discussions.
Pasi Luukka
2011-01-01
Full Text Available It is proposed to use fuzzy similarity in fuzzy decision-making approach to deal with the supplier selection problem in supply chain system. According to the concept of fuzzy TOPSIS earlier methods use closeness coefficient which is defined to determine the ranking order of all suppliers by calculating the distances to both fuzzy positive-ideal solution (FPIS and fuzzy negative-ideal solution (FNIS simultaneously. In this paper we propose a new method by doing the ranking using similarity. New proposed method can do ranking with less computations than original fuzzy TOPSIS. We also propose three different cases for selection of FPIS and FNIS and compare closeness coefficient criteria and fuzzy similarity criteria. Numerical example is used to demonstrate the process. Results show that the proposed model is well suited for multiple criteria decision-making for supplier selection. In this paper we also show that the evaluation of the supplier using traditional fuzzy TOPSIS depends highly on FPIS and FNIS, and one needs to select suitable fuzzy ideal solution to get reasonable evaluation.
A Study on the Current Oil and Gas Price Formula and Its Improvement
Park, Chang Won; Lee, Young Koo [Korea Energy Economics Institute, Euiwang (Korea)
2000-12-01
The object of this study is to suggest some improvements on current price formulas on oil and gas which have been pivotal roles in the process of Korean economic growth. This study first examines basic frames and transition of oil and gas pricing in Korea and then finds some suggestions on them by scrutinizing their theoretical backgrounds. This study finds several problems on oil and gas pricing formulas. (a) In a model that is now studied to evaluate the current domestic oil price, the costs associated with oil security such as oil stockpile are fully penetrated into oil price without their fair evaluations. There is no evaluation principle on the costs occurred in oil supply security. (b) The Rate Of Equity(ROE), a crucial factor in town-gas pricing which is strictly controlled, is directly connected to the average interest rate on saving accounts of domestic commercial banks. Some arguments may have rise about inclusion a risk factor on ROE in order to compensate the uncertainty of town-gas business. (c) New demand for natural gas which is generated by new technologies or machinery and tools can help reduce the costs occurred from seasonal imbalance between power sector and gas sector. So it is also important to decide how to include the beneficiary of cost reduction in town-gas pricing. In order to evaluate the proper price levels, this study tests energy supply security by adopting methodologies such as Herfindahl Index and Portfolio Variance Risk. They can help develop the method to effectively improve the energy security and include the proper energy security costs into energy prices. This study also provides some suggestions for betterment of current ROE decision rule in town-gas business and for improvement of current town-gas policy that government subsidizes newly developed demand for strengthening price competitiveness in the early stage. (author). 145 refs., 16 figs., 49 tabs.
Garland, Ann F; Taylor, Robin; Brookman-Frazee, Lauren; Baker-Ericzen, Mary; Haine-Schlagel, Rachel; Liu, Yi Hui; Wong, Sarina
2015-06-01
Race/ethnic disparities in utilization of children's mental health care have been well documented and are particularly concerning given the long-term risks of untreated mental health problems (Institute of Medicine, 2003; Kessler et al. Am J Psychiatry 152:10026-1032, 1995). Research investigating the higher rates of unmet need among race/ethnic minority youths has focused primarily on policy, fiscal, and individual child or family factors that can influence service access and use. Alternatively, this study examines provider behavior as a potential influence on race/ethnic disparities in mental health care. The goal of the study was to examine whether patient (family) race/ethnicity influences physician diagnostic and treatment decision-making for childhood disruptive behavior problems. The study utilized an internet-based video vignette with corresponding survey of 371 randomly selected physicians from across the USA representing specialties likely to treat these patients (pediatricians, family physicians, general and child psychiatrists). Participants viewed a video vignette in which only race/ethnicity of the mother randomly varied (non-Hispanic White, Hispanic, and African American) and then responded to questions about diagnosis and recommended treatments. Physicians assigned diagnoses such as oppositional defiant disorder (48 %) and attention deficit disorder (63 %) to the child, but there were no differences in diagnosis based on race/ethnicity. The majority of respondents recommended psychosocial treatment (98 %) and/or psychoactive medication treatment (60 %), but there were no significant differences based on race/ethnicity. Thus, in this study using mock patient stimuli and controlling for other factors, such as insurance coverage, we did not find major differences in physician diagnostic or treatment decision-making based on patient race/ethnicity.
An investigation of the pricing attitudes and practices of Korean business
Hyun, Soeun
1988-01-01
The purpose of this study was to explore issues related to the development of pricing strategies. Important questions addressed included the importance of this topic and a description of how prices are set or why prices are set. Also, the concern of whether these issues are general across major types of pricing decisions, or specific to certain pricing decisions was investigated. Particularly, this study reviewed the descriptive survey research or case studies that have been do...
Value of information and pricing new healthcare interventions.
Willan, Andrew R; Eckermann, Simon
2012-06-01
Previous application of value-of-information methods to optimal clinical trial design have predominantly taken a societal decision-making perspective, implicitly assuming that healthcare costs are covered through public expenditure and trial research is funded by government or donation-based philanthropic agencies. In this paper, we consider the interaction between interrelated perspectives of a societal decision maker (e.g. the National Institute for Health and Clinical Excellence [NICE] in the UK) charged with the responsibility for approving new health interventions for reimbursement and the company that holds the patent for a new intervention. We establish optimal decision making from societal and company perspectives, allowing for trade-offs between the value and cost of research and the price of the new intervention. Given the current level of evidence, there exists a maximum (threshold) price acceptable to the decision maker. Submission for approval with prices above this threshold will be refused. Given the current level of evidence and the decision maker's threshold price, there exists a minimum (threshold) price acceptable to the company. If the decision maker's threshold price exceeds the company's, then current evidence is sufficient since any price between the thresholds is acceptable to both. On the other hand, if the decision maker's threshold price is lower than the company's, then no price is acceptable to both and the company's optimal strategy is to commission additional research. The methods are illustrated using a recent example from the literature.
International Transfer Pricing in Multinational Enterprises
Rossing, Christian Plesner; Cools, Martine; Rohde, Carsten
2017-01-01
Current curricula in management accounting stress the role of transfer pricing as a tool for measuring the performance of responsibility centers and their managers. Recently, however, multinational enterprises (MNEs) have felt increasing pressure to comply with transfer pricing tax regulation....... As a result, tax risk management considerations play a key role in the transfer pricing decisions of MNEs today. This case seeks to provide you with examples of the core principles of international transfer pricing, as well as to allow you to discuss international transfer pricing in the context...... of responsibility accounting. Specifically, the case study is a fictional MNE, allowing you to apply the OECD Guidelines in practice to cross-border transfers within an MNE, and to discuss the implications of tax-based transfer pricing for responsibility accounting. As a basis for working on the case study...
Pay-what-you-want pricing schemes
Kahsay, Goytom Abraha; Samahita, Margaret
Pay-What-You-Want (PWYW) pricing schemes are becoming increasingly popular in a wide range of industries. We develop a model incorporating self-image into the buyer's utility function and introduce heterogeneity in consumption utility and image-sensitivity, which generates different purchase...... decisions and optimal prices across individuals. When a good is sold at a fixed price higher than a threshold value, a price that the individual thinks is fair, the adoption of PWYW increases his utility and hence results in a weakly higher purchase rate. When a good is sold at a fixed price lower than...... this threshold, however, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, in line with previously unexplained evidence from field experiments. Moreover, an increase in the threshold value decreases the buyer's utility and may further lower the purchase rate...
涂智寿; 艾兴政
2012-01-01
Combined ordering and pricing is an attractive issue for researchers, but current literature overlooks the characteristics of both perishable products and increasing replenishment cost, which has a broad application perspective in decision making of perishable products, .service, and sales promotion of manufacturers. However, the increase of replenishment cost makes the objective function non-concave, and changes the characteristics of solution structure. As a result, this paper proposes a two-stage model for ordering and pricing under increasing cost, discloses the uniqueness and structure of solution, and compares the current related results. Finally, we make numerical analysis and give explanation to the management implication.%组合订货与定价是近年运作与营销交叉领域的研究热点问题,目前关于订货与定价组合决策研究忽略了易逝性产品特征及补货成本上升的问题,该问题在易逝性产品、服务、渠道促销决策方面具有广泛的应用背景,而成本上升使目标函数变为非凹性,并改变了解的结构特征。本文构建了在成本上升环境下两阶段不同残值产品订货与定价模型,揭示了不同条件下解的存在与唯一性条件及其解的结构,并与相关结论进行了比较,最后给出了数值分析和管理意义的解释。
黄妍
2015-01-01
As consumers’environmental awareness is growing,the impact of carbon emission on the demand is increasingly apparent. Based on price-and-carbon-emission dependent demand ,we construct a two-echelon decision model consists of a manufacturer and a retailer. In this model,the manufacturer decides the wholesale price and emissions per unit of output produced,while the retailer decides the retail price and order quantity. We solve the model under the centralized and decentralized scenarios and propose a coordination contract that can improve profits of both sides and realize the perfect coordination of both sides. Through numerical examples we find that as the impact of carbon emission on demand increases,the strategies of both the manufacturer and retailer change obviously,also we validate the effectiveness of the contract.%随着消费者环保意识的增强，产品碳排放量对需求的影响愈发显著。基于价格和碳排放量灵敏需求，构造了一个由制造商和零售商组成的两层决策模型。模型中，上游制造商决策批发价格和产品碳排放水平，而下游零售商决策零售价格和订货批量。在分散和集中决策模式下，分别求解该模型并基于集中决策模式提出了协调契约，以实现两方利润的帕累托改善。最后，在实例数据下，发现在上述两种情形下，随着碳排放对需求影响的增大，上下游的决策都有明显的变化，并且验证了契约的有效性。
A Case Study of Pharmaceutical Pricing in China: Setting the Price for Off-Patent Originators.
Hu, Shanlian; Zhang, Yabing; He, Jiangjiang; Du, Lixia; Xu, Mingfei; Xie, Chunyan; Peng, Ying; Wang, Linan
2015-08-01
This article aims to define a value-based approach to pricing and reimbursement for off-patent originators using a multiple criteria decision analysis (MCDA) approach centered on a systematic analysis of current pricing and reimbursement policies in China. A drug price policy review was combined with a quantitative analysis of China's drug purchasing database. Policy preferences were identified through a MCDA performed by interviewing well-known academic experts and industry stakeholders. The study findings indicate that the current Chinese price policy includes cost-based pricing and the establishment of maximum retail prices and premiums for off-patent originators, whereas reference pricing may be adopted in the future. The literature review revealed significant differences in the dissolution profiles between originators and generics; therefore, dissolution profiles need to be improved. Market data analysis showed that the overall price ratio of generics and off-patent originators was around 0.54-0.59 in 2002-2011, with a 40% price difference, on average. Ten differentiating value attributes were identified and MCDA was applied to test the impact of three pricing policy scenarios. With the condition of implementing quality consistency regulations and controls, a reduction in the price gap between high-quality off-patent products (including originator and generics) seemed to be the preferred policy. Patents of many drugs will expire within the next 10 years; thus, pricing will be an issue of importance for off-patent originators and generic alternatives.
Pricing Policy and Strategies for Consumer High-Tech Products
Dovleac, L.
2014-06-01
Full Text Available This paper highlights the complex process of price setting for consumer high-tech products. These prices are highly influenced by some external factors from the economic and social environment. The main objective of this paper is to establish the most effective pricing policies and strategies used by high-tech companies of various sizes. Decisions about price fixing for consumer high-technology products are largely influenced by consumer behaviour, too.
PRICE TRANSMISSION IN SELECTED MALAYSIAN FRUITS MARKETS
Fatimah Mohamed Arshad
2014-01-01
Full Text Available The market for fresh produce such as fruits in Malaysia is alleged to be inefficient due to poor flow of information between market levels and uncompetitive market particularly at the wholesale and retail levels. Due to these structural problems, pricing efficiency is questionable, in that they are not integrated. This study intends to examine the cointegration and causality relationships between the farm and retail prices in the Malaysian market of fruits. To that end, the bivariate cointegration approach, using Granger causality tests, is applied. The study uses monthly data from January 2000 through December 2010. The results show that there is evidence of long run bidirectional causal relationship between farm and retail prices for banana and watermelon. However, the analysis revealed a long run unidirectional relationship from farm prices to retail prices with no evidence of reverse or feedback causality running from farm price to retail prices for jackfruit and durian.
European attitudes to water pricing
Jensen, Anne Kejser
2016-01-01
Efficient use of the water resource requires internalization of all costs in the price of water, including environmental and resource costs. However, water resource management tends to be highly political and increasing water prices are a sensitive and complicated policy matter. Hence......, there is a need for increased understanding of the implementation process and the attitudes towards implementation among the general public. This paper explores the spatial heterogeneity in the public attitude towards internalizing environmental and resource costs in the price of water across the EU regions....... Within an extensive spatial dataset constructed for the purpose, we estimate the effect of individual information levels and affordability concerns on the attitude towards environmental water pricing. Information about water problems is found to have a significant and positive effect on attitudes...
Decision-Making for Supply Chain Integration Supply Chain Integration
Lettice, Fiona; Durowoju, Olatunde
2012-01-01
Effective supply chain integration, and the tight co-ordination it creates, is an essential pre-requisite for successful supply chain management. Decision-Making for Supply Chain Integration is a practical reference on recent research in the area of supply chain integration focusing on distributed decision-making problems. Recent applications of various decision-making tools for integrating supply chains are covered including chapters focusing on: •Supplier selection, pricing strategy and inventory decisions in multi-level supply chains, •RFID-enabled distributed decision-making, •Operational risk issues and time-critical decision-making for sensitive logistics nodes, Modelling end to end processes to improve supply chain integration, and •Integrated systems to improve service delivery and optimize resource use. Decision-Making for Supply Chain Integration provides an insight into the tools and methodologies of this field with support from real-life case studies demonstrating successful application ...
Optimal pricing and marketing planning for deteriorating items
Moosavi Tabatabaei, Seyed Reza; Sadjadi, Seyed Jafar; Makui, Ahmad
2017-01-01
Optimal pricing and marketing planning plays an essential role in production decisions on deteriorating items. This paper presents a mathematical model for a three-level supply chain, which includes one producer, one distributor and one retailer. The proposed study considers the production of a deteriorating item where demand is influenced by price, marketing expenditure, quality of product and after-sales service expenditures. The proposed model is formulated as a geometric programming with 5 degrees of difficulty and the problem is solved using the recent advances in optimization techniques. The study is supported by several numerical examples and sensitivity analysis is performed to analyze the effects of the changes in different parameters on the optimal solution. The preliminary results indicate that with the change in parameters influencing on demand, inventory holding, inventory deteriorating and set-up costs change and also significantly affect total revenue. PMID:28306750
Optimal pricing and marketing planning for deteriorating items.
Moosavi Tabatabaei, Seyed Reza; Sadjadi, Seyed Jafar; Makui, Ahmad
2017-01-01
Optimal pricing and marketing planning plays an essential role in production decisions on deteriorating items. This paper presents a mathematical model for a three-level supply chain, which includes one producer, one distributor and one retailer. The proposed study considers the production of a deteriorating item where demand is influenced by price, marketing expenditure, quality of product and after-sales service expenditures. The proposed model is formulated as a geometric programming with 5 degrees of difficulty and the problem is solved using the recent advances in optimization techniques. The study is supported by several numerical examples and sensitivity analysis is performed to analyze the effects of the changes in different parameters on the optimal solution. The preliminary results indicate that with the change in parameters influencing on demand, inventory holding, inventory deteriorating and set-up costs change and also significantly affect total revenue.
无
2011-01-01
The Chinese Government faces the task of stabilizing vegetable prices to avoid steep increases and dips Fluctuations of vegetable prices in China have recently caused near panic in the domestic market.Purchase prices for farm produce are decreasing dramatically
Farxaneh Bahrami
2013-05-01
Full Text Available Aim: The purpose of this study was to examine the effect of the training of problem-solving and decision-making skills on the reduction of addicts’ positive attitudes to narcotics. Method: The design of this study was experimental design namely: pre and post test with control group. The population included all addicts referring to Sanandaj self-report centers (500 addicts. By random sampling, 60 addicts were selected and completed the attitude questionnaire to narcotics use. Each of experimental groups was under problem-solving and decision-making skills training for ten 90 minute sessions. No training given to control group. Results: After training, two experimental groups significantly had lower levels of positive attitude to narcotics use. No difference was observed between two experimental groups. Conclusion: The results of this study indicated that the training of problem-solving and decision-making skills can reduce the addicts’ positive attitudes to narcotics.
Managing risks of market price uncertainty for a microgrid operation
Raghavan, Sriram
After deregulation of electricity in the United States, the day-ahead and real-time markets allow load serving entities and generation companies to bid and purchase/sell energy under the supervision of the independent system operator (ISO). The electricity market prices are inherently uncertain, and can be highly volatile. The main objective of this thesis is to hedge against the risk from the uncertainty of the market prices when purchasing/selling energy from/to the market. The energy manager can also schedule distributed generators (DGs) and storage of the microgrid to meet the demand, in addition to energy transactions from the market. The risk measure used in this work is the variance of the uncertain market purchase/sale cost/revenue, assuming the price following a Gaussian distribution. Using Markowitz optimization, the risk is minimized to find the optimal mix of purchase from the markets. The problem is formulated as a mixed integer quadratic program. The microgrid at Illinois Institute of Technology (IIT) in Chicago, IL was used as a case study. The result of this work reveals the tradeoff faced by the microgrid energy manager between minimizing the risk and minimizing the mean of the total operating cost (TOC) of the microgrid. With this information, the microgrid energy manager can make decisions in the day-ahead and real-time markets according to their risk aversion preference. The assumption of market prices following Gaussian distribution is also verified to be reasonable for the purpose of hedging against their risks. This is done by comparing the result of the proposed formulation with that obtained from the sample market prices randomly generated using the distribution of actual historic market price data.
7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.
2010-01-01
... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing... advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent butterfat, component prices, and advanced pricing factors shall be as follows. The prices and pricing factors...
Dearfield, Kerry L; Hoelzer, Karin; Kause, Janell R
2014-08-01
Stakeholders in the public health risk analysis community can possess differing opinions about what is meant by "conduct a risk assessment." In reality, there is no one-size-fits-all risk assessment that can address all public health issues, problems, and regulatory needs. Although several international and national organizations (e.g., Codex Alimentarius Commission, Office International des Epizooties, Food and Agricultural Organization, World Health Organization, National Research Council, and European Food Safety Authority) have addressed this issue, confusion remains. The type and complexity of a risk assessment must reflect the risk management needs to appropriately inform a regulatory or nonregulatory decision, i.e., a risk assessment is ideally "fit for purpose" and directly applicable to risk management issues of concern. Frequently however, there is a lack of understanding by those not completely familiar with risk assessment regarding the specific utility of different approaches for assessing public health risks. This unfamiliarity can unduly hamper the acceptance of risk assessment results by risk managers and may reduce the usefulness of such results for guiding public health policies, practices, and operations. Differences in interpretation of risk assessment terminology further complicate effective communication among risk assessors, risk managers, and stakeholders. This article provides an overview of the types of risk assessments commonly conducted, with examples primarily from the food and agricultural sectors, and a discussion of the utility and limitations of these specific approaches for assessing public health risks. Clarification of the risk management issues and corresponding risk assessment design needs during the formative stages of the risk analysis process is a key step for ensuring that the most appropriate assessment of risk is developed and used to guide risk management decisions.
Determining Price Reasonableness in Federal ESPCs
Shonder, J.A.
2005-03-08
services obtained through conventional procurements. While claims of excessive prices are largely unsubstantiated and based on anecdotal evidence, the perception that there is a problem is shared by many in the ESPC community and has been noted by auditors and oversight organizations. The Price Reasonableness Working Group determined that a more formal emphasis on FAR 15.404-1 in the ESPC process could remove much of the doubt about price reasonableness determinations. The working group's recommended consensus policy on price reasonableness stresses the price analysis techniques described in the FAR that are applicable to ESPCs and includes guidance for agencies use of these techniques in determining price reasonableness for their ESPC delivery orders. The recommended policy and guidance, if communicated to federal ESPC stakeholders, can ensure that agencies will comply with the FAR in awarding ESPCs, obtain fair and reasonable prices and best value for the government, and follow procedures that provide auditable documentation of due diligence in price reasonableness determinations.
Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas
2015-01-01
Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug...... prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures...
Huck, Steffen; Ruchala, Gabriele K.; Tyran, Jean-Robert
We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non-competitive...... (monopolistic) markets. We then introduce a regulated intermediate price above the oligopoly price and below the monopoly price. The effect in monopolies is more or less in line with standard intuition. As price falls volume increases and so does quality, such that overall efficiency is raised by 50%. However...
Product-line selection and pricing with remanufacturing under availability constraints
Aras, Necati; Esenduran, G.÷k.‡e.; Altinel, I. Kuban
2004-12-01
Product line selection and pricing are two crucial decisions for the profitability of a manufacturing firm. Remanufacturing, on the other hand, may be a profitable strategy that captures the remaining value in used products. In this paper we develop a mixed-integer nonlinear programming model form the perspective of an original equipment manufacturer (OEM). The objective of the OEM is to select products to manufacture and remanufacture among a set of given alternatives and simultaneously determine their prices so as to maximize its profit. It is assumed that the probability a customer selects a product is proportional to its utility and inversely proportional to its price. The utility of a product is an increasing function of its perceived quality. In our base model, products are discriminated by their unit production costs and utilities. We also analyze a case where remanufacturing is limited by the available quantity of collected remanufacturable products. We show that the resulting problem is decomposed into the pricing and product line selection subproblems. Pricing problem is solved by a variant of the simplex search procedure which can also handle constraints, while complete enumeration and a genetic algorithm are used for the solution of the product line selection problem. A number of experiments are carried out to identify conditions under which it is economically viable for the firm to sell remanufactured products. We also determine the optimal utility and unit production cost values of a remanufactured product, which maximizes the total profit of the OEM.
Statistical Theory of Hedonic Price Indices
Brachinger, Hans Wolfgang
2002-01-01
In the economic literature, essentially, hedonic techniques either are applied straightforwardly or the economic foundations of the hedonic hypothesis are discussed. In this paper, the statistical foundations of hedonic price indices are developed. After a short overview on well-known functional forms of hedonic equations, first, precise hedonic notions of a good and its price are specified. These specifications allow a clear-cut definition of true hedonic price indices. Then, the problem of ...
崔强; 王秀丽; 曾平良; 姚力; 武泽辰; 唐伦
2015-01-01
Aiming at improving the capability of wind power accommodation and reducing the wasted wind, this paper proposed demand response (DR) to solve the difficulty of peak regulation and lack of peak power. The multi-objective decision model of time-variable critical peak pricing (CPP) was established, which comprehensively considered the interests of the wind farms, power users and power supply company. The improved non-dominated sorting genetic algorithm (NSGA-Ⅱ) was used in external electricity price decisions, while the minimum technical output was translated into the inner unit commitment (UC) optimization problem. From UC perspective, the effects of CPP to capability of wind power accommodation were evaluated. The simulation results show that CPP cut down the peak load, reduce the number of online thermal power unit and effectively improve the capability of wind power accommodation. Based on NSGA-Ⅱ, a series of Pareto solutions were worked out as the references for policy maker.%针对以火电为主、调峰难、缺少尖峰电力的电源结构,提出需求响应下的系统风电接纳能力不足问题的解决途径.综合考虑风电场、电力用户和供电公司利益,建立了多目标变时段尖峰电价决策模型.外层电价决策采用带精英策略的非支配排序遗传算法(non-dominated sorting genetic algorithm,NSGA-Ⅱ)求解,将系统最小开机方式下的最小技术出力转化为确定负荷下的内层机组组合优化问题,从机组组合角度评价了尖峰电价对系统风电消纳能力的影响.仿真结果显示,尖峰电价有效地削减了研究周期系统的尖峰负荷,减少了在线火电机组数量,有效提高了系统接纳风电的能力.基于非支配排序遗传算法,得到一系列帕累托解供决策者参考.
Anuta Porutiu
2010-12-01
Full Text Available In the current economic context, decision making requires complex and multiple actions on the part of the policy makers, who are more challenged than in previous situations, due to the crisis that we are facing. Decision problems cannot be solved by focusing on manager’s own experience or intuition, but require constant adaptation of the methods used effectively in the past to new challenges. Thus, a systemic analysis and modeling of arising issues is required, resulting in the stringent use of Decision Support Systems (DSS, as a necessity in a competitive environment. DSS optimize the situation by getting a timely decision because the decision making process must acquire, process and interpret an even larger amount of data in the shortest possible time. A solution for this purpose is the artificial intelligence systems, in this case Decision Support Systems (DSS, used in a wider area due to expansion of all the new information technologies in decisionmaking processes. These substantial cyber innovations have led to a radical shift in the relationship between enterprise success and quality of decisions made by managers.
Behrmann, Gerd; Larsen, Kim Guldstrand; Rasmussen, Jacob Illum
2004-01-01
This contribution reports on the considerable effort made recently towards extending and applying well-established timed automata technology to optimal scheduling and planning problems. The effort of the authors in this direction has to a large extent been carried out as part of the European proj...... projects VHS [22] and AMETIST [17] and are available in the recently released UPPAAL CORA [12], a variant of the real-time verification tool UPPAAL [20,5] specialized for cost-optimal reachability for the extended model of priced timed automata....
Pricing and inventory policies for Hi-tech products under replacement warranty
Tsao, Yu-Chung; Teng, Wei-Guang; Chen, Ruey-Shii; Chou, Wang-Ying
2014-06-01
Companies, especially in the Hi-tech (high-technology) industry (such as computer, communication and consumer electronic products), often provide a replacement warranty period for purchased items. In reality, simultaneously determining the price and inventory decisions under warranty policy is an important issue. The objective of this paper is to develop a joint pricing and inventory model for Hi-tech products under replacement warranty policy. In the first model, we consider a Hi-tech product feature in which the selling price is declining in a trend. We determine the optimal inventory level for each period and retail price for the first period while maximising the total profit. In the second model, we further determine the optimal retail price and inventory level for each period in the dynamic demand market. This study develops solution approaches to solve the problems described above. Numerical analysis discusses the influence of system parameters on the company's decisions and behaviours. The results of this study could serve as a reference for business managers or administrators.
The Hierarchical Trend Model for property valuation and local price indices
M.K. Francke; G.A. Vos
2002-01-01
This paper presents a hierarchical trend model (HTM) for selling prices of houses, addressing three main problems: the spatial and temporal dependence of selling prices and the dependency of price index changes on housing quality. In this model the general price trend, cluster-level price trends, an
Why do Economic Instruments Fail? The role of Water trading and Pricing at a River Basin Scale
Pérez-Blanco, C. D.; Gomez, C.; Loch, A. J.; Adamson, D. C.
2016-12-01
Water management problems stem from the mismatch between a multitude of individual decisions, on the one hand, and the current and projected status of water resources, on the other. Economics provides valuable information on the incentives that drive individual decisions and can be used to design instruments that address the problem. Yet, proposals from economists regarding instruments like water pricing or trading are mostly based upon basic and general principles of welfare economics that are not straightaway applicable to assets as complex as water. For example, while water markets clearly serve to the parts directly involved in the transaction, the unique characteristics of water often leads to Pareto inefficient allocations that affect the environment and related economic uses. The flaw in this approach lies in the understanding that water prices and water trading schemes may be good or bad on their own (e.g. finding the "right" price). This vision changes radically when we focus on the problem, instead of the instrument. In this case addressing water management challenges is equivalent to making the multitude of decisions people do about water compatible with collective water governance goals such as curbing degradation trends or building water security for the future. These ideas provide both the basis for assessing existing incentives such as pricing and trading schemes and reshaping economic instruments to serve the objectives of an integrated water resources management.
Mechanical vs. informational components of price impact
Farmer, J D; Zamani, Neda
2006-01-01
We study the problem of what causes prices to change. We define the mechanical impact of a trading order as the change in future prices in the absence of any future changes in decision making, and its it informational impact as the remainder of the total impact once mechanical impact is removed. We introduce a method of measuring mechanical impact and apply it to order book data from the London Stock Exchange. The average mechanical impact of a market order decays to zero as a function of time, at an asymptotic rate that is consistent with a power law with an exponent of roughly 1.7. In contrast the average informational impact builds to approach a constant value. Initially the impact is entirely mechanical, and is about half as big as the asymptotic informational impact. The size of the informational impact is positively correlated to mechanical impact. For cases where the mechanical impact is zero for all times, we find that the informational impact is negative, i.e. buy market orders that have no mechanica...
申成然
2013-01-01
The pricing problem for a supply chain system composed of a supplier and one online retailer under E-commerce environment is discussed.Two consumer returns processing modes are considered:processing returns by the manufacturer (M-mode) or by the retailer (R-mode).Based on game theory,the optimal price,the optimal return price,and optimal profits of the supply chain are analyzed.The difference of two modes is compared with numerical simulation.Results show that R-mode is better than M-mode under E-commerce environment.By the use of revenue-and-expense sharing contracts,the coordination of supply chain about consumer returns can be achieved and enhance supply chain profit and customer utility.%构建了电子商务环境下单一制造商和单一网络零售商的供应链系统,考虑两种消费者退货处理模式:制造商处理模式(M模式)和网络零售商处理模式(R模式).通过博弈理论,求得两种模式下最优销售价格、退货价格及供应链各方利润.结合数值算例,比较分析了两种退货处理模式的差异及优劣.结果表明,在电子商务环境下,网络零售商处理退货要优于制造商处理退货.最后,通过设计收益分享-费用分担契约,实现了考虑消费者退货的供应链系统的整体协调,同时提高了制造商和零售商的利润及消费者效应.
Decision rules for decision tables with many-valued decisions
Chikalov, Igor
2011-01-01
In the paper, authors presents a greedy algorithm for construction of exact and partial decision rules for decision tables with many-valued decisions. Exact decision rules can be \\'over-fitted\\', so instead of exact decision rules with many attributes, it is more appropriate to work with partial decision rules with smaller number of attributes. Based on results for set cover problem authors study bounds on accuracy of greedy algorithm for exact and partial decision rule construction, and complexity of the problem of minimization of decision rule length. © 2011 Springer-Verlag.
Pricing products: juxtaposing affordability with quality appeal.
1984-01-01
Choosing appropriate product prices is 1 of the most crucial steps in creating an effective contraceptive social marketing (CSM) sales campaign. The Social Marketing Forum conducted an informal survey of social marketing project managers, international contractors, and marketing consultants to determine how CSM programs cope with pricing problems and ways to circumvent some obstacles. According to Diana Altman, a family planning consultant, low prices that make products available to needy individuals are more important than the program's self sufficiency, yet if prices are too low, consumers think the products were unusable in the US and thus were dumped on local markets. Other key factors include commercial competition, spiraling inflation rates, and problems with rising prices and retailer/distributor margins. A sampling of per capita gross national products indicates the poverty level of most CSM projects' target market. Consequently, CSM projects must set low pices, regardless of program operating costs. The goal often is to increase the demand and availability for contraceptives. The fact that social marketing products must pass through retail networks to reach consumers complicates the pricing equation. To deal with the problem, India's Nirodh program gives a 25% margin to distributors/wholesalers, compared to 6% offered on most other goods. Retailers also receive a 25% margin, more than double the commercial rate. Once prices are set, increases pose hazards. Local government approval often is a prerequisite and can require lengthy negotiations. Market studies remain a valuable approach to effective pricing, according to PNA's Mallamad and other research consultants. They cite such effective research strategies as test marketing products and asking consumers how prices affect buying habits. Further, CSM projects can jump over some pricing hurdles through creative marketing. An effective pricing strategy alone cannot produce a successful CSM program. Pricing
Dynamic Pricing and Learning with Finite Inventories
Zwart, A.P.; Boer, A.V. den
2015-01-01
We study a dynamic pricing problem with finite inventory and parametric uncertainty on the demand distribution. Products are sold during selling seasons of finite length, and inventory that is unsold at the end of a selling season perishes. The goal of the seller is to determine a pricing strategy t
Dynamic pricing and learning with finite inventories
Boer, den Arnoud V.; Zwart, Bert
2015-01-01
We study a dynamic pricing problem with finite inventory and parametric uncertainty on the demand distribution. Products are sold during selling seasons of finite length, and inventory that is unsold at the end of a selling season perishes. The goal of the seller is to determine a pricing strategy t
Dynamic pricing and learning with finite inventories
Boer, den Arnoud; Zwart, Bert
2013-01-01
We study a dynamic pricing problem with finite inventory and parametric uncertainty on the demand distribution. Products are sold during selling seasons of finite length, and inventory that is unsold at the end of a selling season, perishes. The goal of the seller is to determine a pricing strategy
Jinzhao Shi
2016-01-01
Full Text Available With a stochastic price-dependent market demand, this paper investigates how demand uncertainty and capital constraint affect retailer’s integrated ordering and pricing policies towards seasonal products. The retailer with capital constraint is normalized to be with zero capital endowment while it can be financed by an external bank. The problems are studied under a low and high demand uncertainty scenario, respectively. Results show that when demand uncertainty level is relatively low, the retailer faced with demand uncertainty always sets a lower price than the riskless one, while its order quantity may be smaller or larger than the riskless retailer’s which depends on the level of market size. When adding a capital constraint, the retailer will strictly prefer a higher price but smaller quantity policy. However, in a high demand uncertainty scenario, the impacts are more intricate. The retailer faced with demand uncertainty will always order a larger quantity than the riskless one if demand uncertainty level is high enough (above a critical value, while the capital-constrained retailer is likely to set a lower price than the well-funded one when demand uncertainty level falls within a specific interval. Therefore, it can be further concluded that the impact of capital constraint on the retailer’s pricing decision can be influenced by different demand uncertainty levels.
Darnton-Hill, Ian; Cogill, Bruce
2010-01-01
Rising food prices, resulting from the ongoing global economic crisis, fuel price volatility, and climate change, have an adverse impact upon the poor, especially those in food-importing, resource-limited countries. The conventional approach by large organizations has been to advocate for increased staple crop yields of mainly cereals. High food prices are predicted to continue to at least 2015. Past shocks and their known impacts upon nutrition were reviewed. Price instability and increases have long been an existing global problem, which has been exacerbated by recent macroeconomic shocks such as acute emergencies due to war and civil strife, acute climatic events, increase in food prices, fuel price volatility, dysfunction of the global financial systems, long-term climate change, and the emergence of failed states. The FAO estimated that there were 815 million "hungry" people in 2006, with a now additional 75-135 million with increased vulnerability, and currently it is estimated that there are one billion people at risk of food insecurity. The shocks initially compromise maternal and child nutrition, mainly through a reduction in dietary quality and an increase in micronutrient deficiencies and concomitant increases in infectious disease morbidity and mortality. A further reduction in the quantity of diet may follow with greater underweight and wasting. Recent macroeconomic shocks have greatly increased the number of people who are vulnerable to hunger in developing countries. Nutritional surveillance systems need to be strengthened and expanded to inform policy decisions.
Jäkel, Ina Charlotte; Sørensen, Allan
-cut prediction on the sign of the exporter price premium. However, the model unambiguously predicts a negative exporter price premium in terms of quality-adjusted prices, i.e. prices per unit of quality. This prediction is broadly borne out in the Danish data: while the magnitude of the premium varies across...
Huck, Steffen; Ruchala, Gabriele K.; Tyran, Jean-Robert
We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non...
Oil-import contracts, prices discussed
Nedeljkovic, D.
1986-01-01
The author accuses Yugoslavia of a sluggish response to changing world oil markets that will repeat the situation of 1973, when Yugoslavia's failure to raise oil prices led to increased consumption. Reviewing the composition of imports and their sources, the author suggests that Yugoslavia cannot be buying on the spot market at such low prices. Instead, intergovernmental agreements set prices which are independent of the market, and these contracts remain in effect until new ones are concluded. The high value of the dollar relative to the dinar and the high cost of refining are other components of the current price problem.
Optimal pricing of capacitated networks
Grigoriev, Alexander; Loon, van Joyce; Sitters, René; Uetz, Marc
2009-01-01
We address the algorithmic complexity of a profit maximization problem in capacitated, undirected networks. We are asked to price a set of $m$ capacitated network links to serve a set of $n$ potential customers. Each customer is interested in purchasing a network connection that is specified by a si
Price Changes, Resource Adjustments and Rational Expectations
Hoffmann, Kira
This study investigates the relationship between the accuracy of managerial demand expectations, resource adjustment decisions and selling price changes. In line with rational expectation theory, it is argued that managers adjust resources and selling prices differently in response to expected...... that cost elasticity is higher when a demand decrease is expected among companies with similar exposure to demand uncertainty. Overall, this implies that managerial competences in predicting future demand significantly determines firms’ profitability; especially when demand uncertainty is high...
Spot Pricing When Lagrange Multipliers Are Not Unique
Feng, Donghan; Xu, Zhao; Zhong, Jin
2012-01-01
Classical spot pricing theory is based on multipliers of the primal problem of an optimal market dispatch, i.e., the solution of the dual problem. However, the dual problem of market dispatch may yield multiple solutions. In these circumstances, spot pricing or any standard pricing practice based...... on multipliers cannot generate a unique clearing price. Although such situations are rare, they can cause significant uncertainties and complexities in market dispatch. In practice, this situation is solved through simple empirical methods, which may cause additional operations or biased allocation. Based...... the results of the theoretical analysis, and further demonstrate that the method performs effectively in both uniform-pricing and nodalpricing markets....
Price System for Water Supply and its Economic Impact Analysis
Jing Zhao
2015-04-01
Full Text Available In light of the actual economic circumstances and water price level, the CGE model to simulate the price policy for multiple water sources is modified and expanded. A water price reform plan is proposed to meet water-saving requirements and water resources allocation. The affected scale and scope for implementing the water price policy is evaluated on a quantitative basis. Research results indicate that a reasonable water price system in Tianjin in 2020 should be set up as follows: the comprehensive tap water price stands at 4$/m3, the tap water price for industrial, administrative and business service sectors is 2.4$/m3, and the tap water price for special industry and domestic use are 8.8$/m3 and 1.4$/m3 respectively. The adjusted water price will bring about tangible results to water resources allocation optimization and water conservation. Although most sectors are negatively affected to varying degrees after raising the water price, particularly the lodging and catering sectors, a 100% water price rising will produce only little impact on price index, and sectoral output and employment will not cause economic fluctuations or social instability. Water price adjustments, as long as it is reasonable, will be more positive than negative on the whole. Research outcomes will provide a scientific decision-making basis for formulating the local water price policy.
Nonlinear Pricing in Energy and Environmental Markets
Ito, Koichiro
This dissertation consists of three empirical studies on nonlinear pricing in energy and environmental markets. The first investigates how consumers respond to multi-tier nonlinear price schedules for residential electricity. Chapter 2 asks a similar research question for residential water pricing. Finally, I examine the effect of nonlinear financial rewards for energy conservation by applying a regression discontinuity design to a large-scale electricity rebate program that was implemented in California. Economic theory generally assumes that consumers respond to marginal prices when making economic decisions, but this assumption may not hold for complex price schedules. The chapter "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing" provides empirical evidence that consumers respond to average price rather than marginal price when faced with nonlinear electricity price schedules. Nonlinear price schedules, such as progressive income tax rates and multi-tier electricity prices, complicate economic decisions by creating multiple marginal prices for the same good. Evidence from laboratory experiments suggests that consumers facing such price schedules may respond to average price as a heuristic. I empirically test this prediction using field data by exploiting price variation across a spatial discontinuity in electric utility service areas. The territory border of two electric utilities lies within several city boundaries in southern California. As a result, nearly identical households experience substantially different nonlinear electricity price schedules. Using monthly household-level panel data from 1999 to 2008, I find strong evidence that consumers respond to average price rather than marginal or expected marginal price. I show that even though this sub-optimizing behavior has a minimal impact on individual welfare, it can critically alter the policy implications of nonlinear pricing. The second chapter " How Do
Michael Alles; Srikant Datar
1998-01-01
Most research into cost systems has focused on their motivational implications. This paper takes a different approach, by developing a model where two oligopolistic firms strategically select their cost-based transfer prices. Duopoly models frequently assume that firms game on their choice of prices. Product prices, however, are ultimately based on the firms' transfer prices that communicate manufacturing costs to marketing departments. It is for this reason that transfer prices will have a s...
Krueger, Malte
2009-01-01
The pricing of payments has received increasing attention of regulators. In many cases, regulators are concerned that consumers do not face cost based prices. They argue that without cost based prices consumers will make inefficient choices. In this paper, it is argued that both, economics of scale and the particular laws governing pricing in two-sided markets provide a case against cost based pricing.
PRICING STRATEGY IN THE INDONESIAN CONSTRUCTION INDUSTRY
Krishna Mochtar
2002-01-01
Full Text Available Issues related to pricing strategy in the Indonesian construction industry are covered%2C including problems of current pricing strategy in construction%2C exploration of pricing strategies with a market-based approach%2C and survey findings of the top Indonesian contractors regarding their current pricing practices and the applicability of market-based pricing strategy models developed by Mochtar and Arditi. Comparisons with similar survey findings of the top U.S. contractors are conducted whenever possible. In conclusion%2C the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings%3B indeed%2C in setting the markup%2C most contractors rely on subjective assessment of the competition. Using simulated bidding scenarios%2C it is discovered that Indonesian contractors tend to be more market-based as they know more about the owner%5C%27s characteristics%2C competitors%5C%27 characteristics%2C and market demand. Consequently%2C the implementation of bidding procedure proposed by Mochtar and Arditi is supported. To maximize the benefits of market-based pricing strategies%2C the bidding procedure change should be explored by all parties involved in the Indonesian construction industry. Abstract in Bahasa Indonesia : Cost-based+pricing%2C+market-based+pricing%2C+pricing+variables%2C+bidding+procedure.
Cannabis Prices and Dynamics of Cannabis Use
J. C. VAN OURS; Williams, J
2005-01-01
This paper uses duration models and self-reported cannabis histories from young Australians to study the dynamics of cannabis use. We find that low cannabis prices are associated with early initiation into cannabis use. While the decision to quit does not appear to be directly influenced by price, we find that the younger an individual is when they start using cannabis the less likely they are to quit. Therefore, low cannabis prices lead to early use and because of that they lead to a low qui...
PRICING STRATEGIES – ASPECTS, TYPES AND CHARACTERISTICS
Căruntu Roxana Corina
2011-09-01
Full Text Available Companies that want to maximize their profits must decide on several elements that influence this aspect. An important role is pricing the product or service offered by the company. In determining the best price for the product, management must take into account several factors such as cost / unit, market characteristics where the product is intended to be placed, consumer needs. Those that make this type of decisions often use price strategies which help enter a particular market. Economists state that there are many types of strategies out of which I will present those strategies that are based on marginal cost, incremental costs, break even and mark-up.
The importance of price for the sale of ecological products
Hansen, Jesper Kirkeby; Sørensen, Hans Christian
1993-01-01
level for ecological products is indeed a decisive obstacle to the sale of ecological prducts. 2. The survey indicated that the market share for ecological products cannot be increased at the present price level. Hence, there is good reason to focus on the price parameter. 3. An experiment with price...... increase for milk can be estimated at about 6% at a DKK 1.00 price reduction. 4. In general, if prices are lowered, it seems that the market shares will increase noticably, with between 3 and 8% increased market shares per 1.00 DKK reduction depending on the present price level and product type. 5. However......, such results can be obtained only if a store that reduces prices also directs attention to the reduction through heavy in-store marketing. The survey clearly indicated that most consumers have no or little knowledge of the prices of ecological products, and that generally, the investigated p markets...
Investment and Non-fundamental Movements in Asset prices: is there a role for monetary policy?
Fernando Alexandre; Pedro Bacao
2006-01-01
... in consumption and investment decisions. Using a sticky price model with endogenous investment driven by non-fundamental movements in asset prices, we discuss the potential benefits, in terms of output and inflation stabilisation...
ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING
TÜNDE VERES
2011-01-01
The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from m...
Accounting Aspects of Pricing and Transfer Pricing
TÜNDE VERES
2011-01-01
The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from m...
Price strategy and pricing strategy: terms and content identification
Panasenko Tetyana
2015-01-01
The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.
Benetti Carlo
2001-12-01
Full Text Available Este artículo propone un modelo de equilibrio general idéntico en todo al modelo walrasiano, salvo que incorpora un mecanismo endógeno de variación de los precios. Este modelo permite eliminar al subastador walrasiano, lo que resuelve el problema de K. Arrow sin que sea necesario introducir la competencia imperfecta. Muestra también que la regla simple y de terminista de variación de los precios según la ley de la oferta y la demanda, exógena en la teoría estándar, está lógicamente relacionada con la noción walrasiana de agentes tomadores de precio. Estas dos propiedades del modelo walrasiano sólo se verifican en condiciones particulares, exageradamente restrictivas.
This paper propases a general equilibrium model in all respects identical to the Walrasian one, except that it includes a mechanism by which prices change endogeneously. In this model the Walrasian auctioneer is eliminated and, consequently the problem put forward by K. Arrow is sol ved without introducing imperfect competition. This model also shows that the simple and deterministic rule of price change according to the law of supply and demand, which is exogeneous in the standard general equilibrium theory, is logically related to the Walrasian price taker individual behaviour. These two properties of the Walrasian model depend on particular and very restrictive conditions.
Kameda, Tatsuya; Tsukasaki, Takafumi; Hastie, Reid; Berg, Nathan
2011-01-01
We introduce a game theory model of individual decisions to cooperate by contributing personal resources to group decisions versus by free riding on the contributions of other members. In contrast to most public-goods games that assume group returns are linear in individual contributions, the present model assumes decreasing marginal group…
Henry Jordaan
2010-12-01
Full Text Available Price risk associated with maize production became a reason for concern in South Africa only after the deregulation of the agricultural commodities markets in the mid-1990s, when farmers became responsible for marketing their own crops. Although farmers can use, inter alia, the cash forward contracting and/or the derivatives market to manage price risk, few farmers actually participate in forward pricing. A similar reluctance to use forward pricing methods is also found internationally. A number of different model specifications have been used in previous research to model forward pricing behaviour which is based on the assumption that the same variables influence both the adoption and the quantity decision. This study compares the results from a model specification which models forward pricing behaviour in a single-decision framework with the results from modelling the quantity decision conditional to the adoption decision in a two-step approach. The results suggest that substantially more information is obtained by modelling forward pricing behaviour as two separate decisions rather than a single decision. Such information may be valuable in educational material compiled to educate farmers in the effective use of forward pricing methods in price risk management. Modelling forward pricing behaviour as two separate decisions is thus a more effective means of modelling forward pricing behaviour than modelling it as a single decision.
Garrick, B.J.; Tagart, S.W. Jr. (eds.)
1984-08-01
This volume presents background resource material on the field of structural reliability assessment and its relationship to the discipline of probabilistic risk analysis and decision analysis. First, general background material is presented on the field of structural reliability assessment. Next, some sample applications of probabilistic and decision analysis methods are presented. A hypothetical example illustrates how a probabilistic approach could be used in structural design, and a brief description is given of how the results of structural reliability analyses can be used as input to a PRA. A case study is described on the use of decision analysis to select strategies for dealing with intergranular stress corrosion cracking. The use of decision analysis to evaluate the merits of different possible research tasks is also discussed. A discussion of decision analysis is then presented. Finally, the document presents a discussion of open issues in the area of structural reliability.