scholarly journals Frictional Intermediation in Over-the-Counter Markets

2019 ◽  
Vol 87 (3) ◽  
pp. 1432-1469 ◽  
Author(s):  
Julien Hugonnier ◽  
Benjamin Lester ◽  
Pierre-Olivier Weill
Keyword(s):  
Closed Form ◽  
Empirical Studies ◽  
Asset Markets ◽  
Solution Technique ◽  
Theoretic Model ◽  
Municipal Bonds ◽  
Over The Counter ◽  
Inventory Costs ◽  
Dealer Market ◽  
Total Welfare

Abstract We extend Duffie et al.’s (2005) search-theoretic model of over-the-counter (OTC) asset markets, allowing for a decentralized inter-dealer market with arbitrary heterogeneity in dealers’ valuations (or, equivalently, inventory costs). We develop a solution technique that makes the model fully tractable and allows us to derive, in closed form, theoretical formulas for key statistics analysed in empirical studies of the intermediation process in OTC markets. A calibration to the market for municipal bonds allows us to quantify important unobservable characteristics of this market, including the severity of search and bargaining frictions and the nature of heterogeneity across dealers. We use our calibrated model to study the effect of these market characteristics on total welfare and the distribution of gains from trade across customers and dealers.

scholarly journals Key determinants of quality in the pharmaceutical supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Tayyab ◽  
Muhammad Usman Awan ◽  
Nadeem Irfan Bukhari ◽  
Ehsan Sabet
Keyword(s):  
Supply Chain ◽  
Process Integration ◽  
Empirical Studies ◽  
Group Discussion ◽  
World Health ◽  
Pharmaceutical Sector ◽  
Pharmaceutical Supply Chain ◽  
Content Type ◽  
Inventory Costs ◽  
Health Organization

PurposeEmpirical studies on the supply chain quality management (SCQM) of the pharmaceutical sector are scarce and scattered. This paper investigates a set of key quality determinants in the pharmaceutical sector to offer a holistic quality control framework for its supply chain (SC).Design/methodology/approachA mixed-method design was used. A focused group discussion with seven pharmaceutical SC managers summarized the narratives of the SCQM in this sector and helped to develop a questionnaire. The survey data were collected from the managers of 299 pharmaceutical firms.FindingsThe statistical results show the key determinants are leadership (LS), customer focus (CF), process integration and management (PIM), supplier relations (SR), quality practice (QP), human resource practices (HRP) and safety (SF). Unlike many other sectors, in the pharmaceutical SC, logistics and inventory costs have been proved to be not as important as other measures in the eyes of the SC managers and as part of SCQM performance measures, which can be a result of the priority systems influenced by the World Health Organization standards.Originality/valueThe study is distinctive in its scope as is carried out in a developing country with focus on concept of SCQM with reference to pharmaceutical SC. It shows great potential for further studies and improvements in logistics and warehousing in this sector, for the interest of the pharmaceutical SC managers and regulators who aim to ensure safety and quality in the health-care sector.

Extended Producer Responsibility for Pharmaceuticals

2021 ◽  
Author(s):  
Işıl Alev ◽  
Atalay Atasu ◽  
L. Beril Toktay ◽  
Can Zhang
Keyword(s):  
Social Impact ◽  
Health Impact ◽  
Problem Definition ◽  
Theoretic Model ◽  
Extended Producer Responsibility ◽  
Source Reduction ◽  
Implementation Model ◽  
Producer Responsibility ◽  
Implementation Models ◽  
Total Welfare

Problem definition: We investigate the effectiveness of different extended producer responsibility (EPR) implementation models for pharmaceuticals. In particular, we study two viable and prevalent models: (1) source reduction (SR), where a form of fee on sale is imposed on producers, and (2) end-of-pipe control (EC), where producers are made responsible for the collection of unused pharmaceuticals. Academic/practical relevance: The existing literature on EPR implementation models has focused primarily on nonconsumable products (e.g., electronics), whereas there is limited research on the effectiveness of different EPR implementation models for pharmaceuticals used in practice. We aim to fill this gap in this study. Methodology: We develop a game-theoretic model to characterize the equilibrium strategies of different stakeholders under both the SR and EC models and compare the resulting producer profit, environmental/social impact, and total welfare. Results: In contrast to the nonconsumable contexts where the SR model is shown to maximize total welfare, the EC model leads to a higher total welfare for certain categories of pharmaceuticals because of its effectiveness in eliminating overprescription. Moreover, we characterize conditions under which stakeholder (e.g., producer, environmental/social advocacy groups) preferences toward EPR implementation model choices are (mis-)aligned. We further show that limiting the social planner’s budget surplus under SR can eliminate the preference misalignment but leads to a loss of total welfare. Managerial implications: (1) Policymakers should be cautious about directly applying preferred EPR models from other product categories to the pharmaceutical setting. (2) The EC model maximizes the objectives of all stakeholders for a salient category of pharmaceuticals with high health benefits, high collection costs, and high environmental/social costs. (3) Policymakers should give thought to differentiating EPR implementation models across pharmaceutical categories. (4) It is important to carefully quantify the health impact of the pharmaceuticals and the operational cost parameters to inform policymaking.

Analytical and Graphical Solutions to the Forward Position Problem of Two Robots Manipulating a Spatial Linkage Payload

1997 ◽  
Vol 119 (3) ◽  
pp. 349-358
Author(s):  
G. R. Pennock ◽  
K. G. Mattson
Keyword(s):  
Closed Form ◽  
Orthogonal Transformation ◽  
Solution Technique ◽  
Closed Form Solutions ◽  
Transformation Matrices ◽  
Kinematic Geometry ◽  
Order Polynomial ◽  
Position Problem ◽  
Four Bar Linkage ◽  
Insight Into

This paper presents a solution to the forward position problem of two PUMA-type robots manipulating a spatial four-bar linkage payload. To simplify the kinematic analysis, the Bennett linkage, which is a special geometry spatial four-bar, will be regarded as the payload. The orientation of a specified payload link is described by a sixth-order polynomial and a specified joint displacement in the wrist subassembly of one of the robots is described by a second-order polynomial. A solution technique, based on orthogonal transformation matrices with dual number elements, is used to obtain closed-form solutions for the remaining unknown joint displacements in the wrist subassembly of each robot. An important result is that, for a given set of robot input angles, twenty-four assembly configurations of the robot-payload system are possible. Repeated roots of the polynomials are shown to correspond to the stationary configurations of the system. The paper emphasizes that an understanding of the kinematic geometry of the system is essential to verify the number of possible solutions to the forward position problem. Graphical methods are also presented to provide insight into the assembly and stationary configurations. A numerical example of the two robots manipulating the Bennett linkage is included to demonstrate the importance of the polynomial and closed-form solutions.

WHEN ALTRUISM LOWERS TOTAL WELFARE

2006 ◽  
Vol 22 (1) ◽  
pp. 1-18 ◽  
Author(s):  
KENNETH S. CORTS
Keyword(s):  
Social Welfare ◽  
Simple Game ◽  
Theoretic Model ◽  
Ethical Theories ◽  
Coordination Problems ◽  
Game Theoretic ◽  
Game Theoretic Model ◽  
Selfish Agents ◽  
Total Welfare

Ethical theories grounded in utilitarianism suggest that social welfare is improved when agents seek to maximize others' welfare in addition to their own (i.e., are altruistic). However, I use a simple game-theoretic model to demonstrate two shortcomings of this argument. First, altruistic preferences can generate coordination problems where none exist for selfish agents. Second, when agents care somewhat about others' utility but weight their own more highly, total social welfare may be lower than with selfish agents even in the absence of coordination problems.

scholarly journals Drivers learn city-scale dynamic equilibrium

2021 ◽  
Author(s):  
Ruda Zhang ◽  
Roger Ghanem
Keyword(s):  
New York ◽  
Search Strategy ◽  
Dynamic Equilibrium ◽  
Empirical Studies ◽  
Theoretic Model ◽  
Globally Asymptotically Stable ◽  
Oligopoly Model ◽  
On Demand ◽  
Heuristic Learning ◽  
Taxi Industry

Abstract Understanding driver behavior in on-demand mobility services is crucial for designing efficient and sustainable transport models. Drivers' delivery strategy is well understood, but their search strategy and learning process still lack an empirically validated model. Here we provide a game-theoretic model of driver search strategy and learning dynamics, interpret the collective outcome in a thermodynamic framework, and verify its various implications empirically. We capture driver search strategies in a multi-market oligopoly model, which has a unique Nash equilibrium and is globally asymptotically stable. The equilibrium can therefore be obtained via heuristic learning rules where drivers pursue the incentive gradient or simply imitate others. To help understand city-scale phenomena, we offer a macroscopic view with the laws of thermodynamics. With 870 million trips of over 50k drivers in New York City, we show that the equilibrium well explains the spatiotemporal patterns of driver search behavior, and estimate an empirical constitutive relation. We find that new drivers learn the equilibrium within a year, and those who stay longer learn better. The collective response to new competition is also as predicted. Among empirical studies of driver strategy in on-demand services, our work examines the longest period, the most trips, and is the largest for taxi industry.

Effect of Nonlinear Temperature Gradient on Curling Stress in Concrete Pavements

1997 ◽  
Vol 1568 (1) ◽  
pp. 65-71 ◽  
Author(s):  
Ashraf R. Mohamed ◽  
Will Hansen
Keyword(s):  
Temperature Gradient ◽  
Boundary Conditions ◽  
Closed Form ◽  
Cross Section ◽  
Solution Technique ◽  
Internal Stresses ◽  
Slab Thickness ◽  
Concrete Pavements ◽  
Linear Temperature ◽  
Highly Nonlinear

Temperature and moisture gradients can lead to significant tensile stresses at the slab top and bottom. Current techniques for assessing the internal stresses due to such gradients are based on the assumption that temperature and moisture distributions through the slab thickness are linear. However, the actual distributions of such gradients have been found to be highly nonlinear. A new closed form solution technique for calculating the stresses in a pavement slab due to nonlinear gradients is introduced. The analysis is separated into two parts. In the first, an expression is presented for calculating the self-equilibrated stresses within a cross section due to internal restraint (i.e., satisfying equilibrium conditions and continuity of the strain field within the cross section). These stresses are independent of slab dimensions and boundary conditions. In the second, the stresses due to external restraint (i.e., self-weight and subgrade reaction) are calculated using an equivalent linear temperature gradient obtained from the first part and existing closed form solutions by Westergaard or Bradbury. The solution to this step includes slab length and boundary conditions. Total internal stresses due to nonlinear gradients are obtained by using the superposition principle. The methodology has been applied to field data from two studies in which the temperature profiles were recorded throughout a 24-hr period. Linear gradient solution methods cannot accurately predict the curling stresses in concrete pavements. This is especially pronounced during nighttime and early morning hours, during which nonlinear analysis predicts tensile stress in both the slab bottom and top before the application of any traffic loading.

A Survey of the Microstructure of Fixed-Income Markets

2019 ◽  
Vol 55 (1) ◽  
pp. 1-45 ◽  
Author(s):  
Hendrik Bessembinder ◽  
Chester Spatt ◽  
Kumar Venkataraman
Keyword(s):  
Search Costs ◽  
Municipal Bonds ◽  
Fixed Income ◽  
Over The Counter ◽  
Treasury Securities ◽  
The Face ◽  
Slow Evolution ◽  
Structured Credit ◽  
Compare And Contrast ◽  
Fixed Income Markets

In this article, we survey the literature that studies fixed-income trading rules and outcomes, including Treasury securities, corporate and municipal bonds, and structured credit products. We compare and contrast the microstructure and regulation of fixed-income markets with equity markets. We highlight the nature of over-the-counter trading in the face of search costs and the associated slow evolution of electronically facilitated intermediation. We discuss the databases available to study fixed-income microstructure, as well as measures and determinants of trading costs, and the important roles dealer networks and limited transparency play. We also highlight unresolved issues.

scholarly journals Closed-form pricing formula for foreign equity option with credit risk

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
Donghyun Kim ◽  
Ji-Hun Yoon ◽  
Geonwoo Kim
Keyword(s):  
Credit Risk ◽  
Closed Form ◽  
Distribution Functions ◽  
Cumulative Distribution ◽  
Transform Method ◽  
Equity Options ◽  
Over The Counter ◽  
3 Dimensional ◽  
Numerical Result ◽  
Pricing Formula

AbstractSince credit risk in the over-the-counter (OTC) market has undoubtedly become very important issue, credit risk has to be considered when the options in the OTC market are priced. In this paper, we consider the valuation of foreign equity options with credit risk. In order to derive a closed-form pricing formula of this option, we adopt the partial differential equation (PDE) approach and use the Mellin transform method to solve the PDE. Specifically, triple Mellin transforms are used, and the pricing formula is presented as 3-dimensional normal cumulative distribution functions. Finally, we verify that our closed-form formula is accurate by comparing it with the numerical result from the Monte-Carlo simulation.

scholarly journals On the Capacity of Densely Packed Arrays with Mutual Coupling and Correlated Noise

2015 ◽  
Vol 2015 ◽  
pp. 1-12
Author(s):  
Vahid Dehghanian ◽  
John Nielsen
Keyword(s):  
Closed Form ◽  
Mutual Coupling ◽  
Antenna System ◽  
Wireless Channel ◽  
Theoretic Model ◽  
Correlated Noise ◽  
Capacity Enhancement ◽  
Size Constraints ◽  
Close Proximity ◽  
The Impact

Capacity of a wireless link can be enhanced by increasing the number of receive antennas. However, imposed receiver physical size constraints necessitate that the antenna elements be in close proximity, which typically reduces the overall link capacity of the wireless channel. Counterintuitively, under certain conditions the capacity of the overall link can be enhanced by decreasing antenna spacings. The focus of this paper is that of identifying the fundamental mechanisms and the conditions that give rise to this excess capacity. Closed-form expressions that directly quantify this capacity gain are derived based on a representative circuit theoretic model. Interesting insights are developed about the impact of different noise and interference sources and the limiting effect of heat losses in the antenna system. The capacity analysis is subsequently generalized to encompass the effect of antenna current deformation and load mismatch due to mutual coupling, based on the standard Method of Moments (MoM) analysis, demonstrating similar capacity enhancement behavior as predicted by the closed-form expressions.

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