scholarly journals Long-run Strategic Advertising and Short-run Bertrand Competition

2015 ◽  
Vol 17 (02) ◽  
pp. 1540014 ◽  
Author(s):  
Reinoud Joosten
Keyword(s):  
Strategic Interaction ◽  
Bertrand Competition ◽  
Average Reward ◽  
Sequential Decisions ◽  
Long Run ◽  
Short Run ◽  
Average Reward Criterion ◽  
Uniqueness Of Equilibrium ◽  
Over Time ◽  
Reward Criterion

We model and analyze strategic interaction over time in a duopoly. Each period the firms independently and simultaneously take two sequential decisions. First, they decide whether or not to advertise, then they set prices for goods which are imperfect substitutes. Not only the own, but also the other firm's past advertisement efforts affect the current "sales potential" of each firm. How much of this potential materializes as immediate sales, depends on current advertisement decisions. If both firms advertise, "sales potential" turns into demand, otherwise part of it "evaporates" and does not materialize. We determine feasible rewards and equilibria for the limiting average reward criterion. Uniqueness of equilibrium is by no means guaranteed, but Pareto efficiency may serve very well as a refinement criterion for wide ranges of the advertisement costs.

Semi-Markov decision processes with polynomial reward

1982 ◽  
Vol 19 (2) ◽  
pp. 301-309 ◽  
Author(s):  
Zvi Rosberg
Keyword(s):  
Transition Period ◽  
Queueing Network ◽  
Decision Processes ◽  
Average Reward ◽  
Network Scheduling ◽  
Long Run ◽  
Markov Decision ◽  
Average Reward Criterion ◽  
Long Run Average Reward ◽  
Reward Criterion

A semi-Markov decision process, with a denumerable multidimensional state space, is considered. At any given state only a finite number of actions can be taken to control the process. The immediate reward earned in one transition period is merely assumed to be bounded by a polynomial and a bound is imposed on a weighted moment of the next state reached in one transition. It is shown that under an ergodicity assumption there is a stationary optimal policy for the long-run average reward criterion. A queueing network scheduling problem, for which previous criteria are inapplicable, is given as an application.

Semi-Markov decision processes with polynomial reward

1982 ◽  
Vol 19 (02) ◽  
pp. 301-309
Author(s):  
Zvi Rosberg
Keyword(s):  
Transition Period ◽  
Queueing Network ◽  
Decision Processes ◽  
Average Reward ◽  
Network Scheduling ◽  
Long Run ◽  
Markov Decision ◽  
Average Reward Criterion ◽  
Long Run Average Reward ◽  
Reward Criterion

A semi-Markov decision process, with a denumerable multidimensional state space, is considered. At any given state only a finite number of actions can be taken to control the process. The immediate reward earned in one transition period is merely assumed to be bounded by a polynomial and a bound is imposed on a weighted moment of the next state reached in one transition. It is shown that under an ergodicity assumption there is a stationary optimal policy for the long-run average reward criterion. A queueing network scheduling problem, for which previous criteria are inapplicable, is given as an application.

Long-Run Effects in Dynamic Systems: New Tools for Cross-Lagged Panel Models

2021 ◽  
pp. 109442812199322
Author(s):  
Ali Shamsollahi ◽  
Michael J. Zyphur ◽  
Ozlem Ozkok
Keyword(s):  
Recent Work ◽  
Dynamic Systems ◽  
Quantitative Methods ◽  
Simulated Dataset ◽  
Impulse Responses ◽  
Panel Models ◽  
Long Run ◽  
Short Run ◽  
User Friendly ◽  
Over Time

Cross-lagged panel models (CLPMs) are common, but their applications often focus on “short-run” effects among temporally proximal observations. This addresses questions about how dynamic systems may immediately respond to interventions, but fails to show how systems evolve over longer timeframes. We explore three types of “long-run” effects in dynamic systems that extend recent work on “impulse responses,” which reflect potential long-run effects of one-time interventions. Going beyond these, we first treat evaluations of system (in)stability by testing for “permanent effects,” which are important because in unstable systems even a one-time intervention may have enduring effects. Second, we explore classic econometric long-run effects that show how dynamic systems may respond to interventions that are sustained over time. Third, we treat “accumulated responses” to model how systems may respond to repeated interventions over time. We illustrate tests of each long-run effect in a simulated dataset and we provide all materials online including user-friendly R code that automates estimating, testing, reporting, and plotting all effects (see https://doi.org/10.26188/13506861 ). We conclude by emphasizing the value of aligning specific longitudinal hypotheses with quantitative methods.

scholarly journals Cross-Correlations in Meat Prices in Brazil: A Non-Linear Approach Using Different Time Scales

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 133
Author(s):  
Derick Quintino ◽  
José Telo da Gama ◽  
Paulo Ferreira
Keyword(s):  
Time Scales ◽  
Cross Correlation ◽  
Positive Association ◽  
Recent Period ◽  
Linear Approach ◽  
Long Run ◽  
Short Run ◽  
Cross Correlations ◽  
Over Time ◽  
Different Time Scales

Brazil is one of the world’s largest producers and exporters of cattle, chicken and swine. Therefore, co-movements of Brazilian meat prices are important for both domestic and foreign stakeholders. We propose to analyse the cross-correlation between meat prices in Brazil, namely, cattle, swine and chicken, including also in the analysis information from some commodities, namely maize, soya beans, oil, and the Brazilian exchange rate. Our sample covers the recent period which coincided with extensive macroeconomic and institutional changes in Brazil, from 2011 to 2020, and is divided in two periods: (i) presidential pre-impeachment (P1), occurring in August 2016, and; (ii) post-impeachment (P2). Our results indicate that in P1, only the prices of swine and chicken showed a positive and strong correlation over time, and that cattle showed some positive correlation with chicken only in the short run. In P2, there was also a positive and consistent correlation between swine and chicken, and only a positive association with swine and cattle in the long run. For more spaced time scales (days), the changes in the degree of correlation were significant only in the long run for swine and cattle.

A NOTE ON OPTIMAL DEBT REDUCTION POLICIES

2019 ◽  
Vol 24 (7) ◽  
pp. 1850-1860 ◽  
Author(s):  
Davide la Torre ◽  
Simone Marsiglio
Keyword(s):  
Economic Policy ◽  
Real World ◽  
Optimal Policy ◽  
Social Costs ◽  
Social Planner ◽  
Long Run ◽  
The Social ◽  
Reduction Problem ◽  
Short Run ◽  
Over Time

We analyze the optimal debt reduction problem in an uncertainty context. The social planner has a finite horizon and seeks to minimize the social costs associated with debt repayment by taking into account not only the short-run costs of the policy, but also the long-run costs associated with the outstanding level of debt. We characterize the optimal policy and the dynamics of the debt-to-GDP ratio, showing that it will decrease over time if economic policy is effective enough. We characterize how the evolution of the debt-to-GDP ratio depends on the main parameters and we present a simple calibration based on Greek data to illustrate the implications of our analysis in real-world setups.

scholarly journals Sample-Path Optimal Stationary Policies in Stable Markov Decision Chains with the Average Reward Criterion

2015 ◽  
Vol 52 (2) ◽  
pp. 419-440
Author(s):  
Rolando Cavazos-Cadena ◽  
Raúl Montes-De-Oca ◽  
Karel Sladký
Keyword(s):  
Sample Path ◽  
Point Of View ◽  
Average Reward ◽  
Stationary Policy ◽  
Optimality Equation ◽  
Markov Decision ◽  
Average Reward Criterion ◽  
Compact Action Sets ◽  
Path Point ◽  
Reward Criterion

This paper concerns discrete-time Markov decision chains with denumerable state and compact action sets. Besides standard continuity requirements, the main assumption on the model is that it admits a Lyapunov function ℓ. In this context the average reward criterion is analyzed from the sample-path point of view. The main conclusion is that if the expected average reward associated to ℓ2 is finite under any policy then a stationary policy obtained from the optimality equation in the standard way is sample-path average optimal in a strong sense.

Sign in / Sign up

Export Citation Format

Share Document