scholarly journals The Quota-Based Compensation Plan in Fashion Retailing Industry under Asymmetric Information

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Mingzhu Yu ◽  
Ruina Yang ◽  
Lijun Ma
Keyword(s):  
Asymmetric Information ◽  
Market Demand ◽  
Compensation Plans ◽  
Best Response ◽  
Risk Neutral ◽  
Demand Information ◽  
Compensation Plan ◽  
The Impact ◽  
Selling Effort ◽  
Production Decision

We study a compensation plan problem in the fashion retailing industry, which involves a risk-neutral fashion retailer and a risk-neutral salesperson, in a two-stage game framework with asymmetric information. In the first stage, the fashion retailer provides a menu of compensation plans to the salesperson who decides which plan to sign based on his superior market demand information. Confronted with the asymmetric demand information, the fashion retailer could observe market information from the salesperson's response by designing a menu of compensation plans rather than a single one to the salesperson. In the second stage, the fashion retailer then makes production decision and the salesperson determines his selling effort. We consider both adverse selection and moral hazard. We adopt the quota-based plan to derive the fashion retailer’s optimal compensation plan design and the salesperson's best response. We emphasize the impact of the quota level on the system outcomes. The results reveal that a higher quota level is disadvantageous to the fashion retailer but advantageous to the salespersons.

scholarly journals The Incentive Model in Supply Chain with Trade Credit and Default Risk

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-11
Author(s):  
Hong Cheng ◽  
Yingsheng Su ◽  
Jinjiang Yan ◽  
Xianyu Wang ◽  
Mingyang Li
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Moral Hazard ◽  
Private Information ◽  
Default Risk ◽  
Trade Credit ◽  
Uncertain Demand ◽  
Market Demand ◽  
Incentive Contract ◽  
Risk Neutral

Trade credit is widely used for its advantages. However, trade credit also brings default risk to the manufacturer due to the uncertain demand. And moral hazard may aggravate the default risk. The purpose of this paper is to investigate the role of moral hazard in trade credit and explore incentive contract under uncertain demand and asymmetric information. We consider a two-echelon supply chain consisting of a risk-neutral retailer ordering a single product from a risk-neutral manufacturer. Market demand is stochastic and is influenced by retailer’s sales effort which is his private information. Incentive theory is used to develop the principal-agent model and get the incentive contract from the manufacturer’s perspective. Results show that the retailer will reduce his effort level to get more profit and the manufacturer’s profit will be reduced, in the case of asymmetric information. Facing this result, the manufacturer will reduce the order quantity in incentive contract to lessen his losses. Numerical examples are provided to illustrate all these theoretical results and to draw managerial insights.

scholarly journals Information Acquisition and Its Incentives in an E-Commerce Supply Chain under the Offline Showroom Model

2021 ◽  
Vol 16 (5) ◽  
pp. 1791-1804
Author(s):  
Mengli Li ◽  
Xumei Zhang
Keyword(s):  
Supply Chain ◽  
Information Acquisition ◽  
Incentive Contracts ◽  
Demand Forecast ◽  
Competition Intensity ◽  
Demand Information ◽  
Optimal Information ◽  
Acquisition Strategy ◽  
The One ◽  
The Impact

Recently, the showroom model has developed fast for allowing consumers to evaluate a product offline and then buy it online. This paper aims at exploring the optimal information acquisition strategy and its incentive contracts in an e-commerce supply chain with two competing e-tailers and an offline showroom. Based on signaling game theory, we build a mathematical model by considering the impact of experience service and competition intensity on consumers’ demand. We find that, on the one hand, information acquisition promotes supply chain members to obtain demand information directly or indirectly, which leads to forecast revenue. On the other hand, information acquisition promotes supply chain members to distort optimal decisions, which results in signal cost. The optimal information acquisition strategy depends on the joint impact of forecast revenue, signal cost and demand forecast cost. Notably, in some conditions, the offline showroom will not acquire demand information even when its cost is equal to zero. We also design two different information acquisition incentive contracts to obtain Pareto improvement for all supply chain members.

Tractable Compensation Plan under Asymmetric Information

2020 ◽  
Vol 29 (5) ◽  
pp. 1212-1218
Author(s):  
Ruina Yang ◽  
Yinhua Mai ◽  
Chung‐Yee Lee ◽  
Chung‐Piaw Teo
Keyword(s):  
Asymmetric Information ◽  
Compensation Plan

scholarly journals Prognostic Significance of Tumor Response at the End of Therapy in Group III Rhabdomyosarcoma: A Report From the Children's Oncology Group

2009 ◽  
Vol 27 (22) ◽  
pp. 3705-3711 ◽  
Author(s):  
David A. Rodeberg ◽  
Julie A. Stoner ◽  
Andrea Hayes-Jordan ◽  
Simon C. Kao ◽  
Suzanne L. Wolden ◽  
...  
Keyword(s):  
Alternative Therapy ◽  
Prognostic Significance ◽  
Complete Response ◽  
Disease Recurrence ◽  
Radiographic Measurement ◽  
Clinical Group ◽  
Group Iii ◽  
Best Response ◽  
Pathology Reports ◽  
The Impact

Purpose Some patients with rhabdomyosarcoma (RMS) achieve less than a complete response (CR) despite receiving all planned therapy. We assessed the impact of best response at the completion of all therapy on patient outcome. Patients and Methods We studied 419 clinical group III participants who completed all protocol therapy without developing progressive disease for Intergroup Rhabdomyosarcoma Study (IRS) IV. Response (complete resolution [CR], partial response [PR; ≥ 50% decrease], or no response [NR; < 50% decrease and < 25% increase]) was determined by radiographic measurement and categorized by the best response. Results At the end of therapy, 341 participants (81%) achieved a best response of CR and 78 (19%) had a best response of PR/NR. Five-year failure-free survival was similar for participants achieving CR (80%) and PR/NR (78%). After adjustment for age, nodal status, primary site, and histology, there was no significant indication of lower risk of failure (hazard ratio [HR], 0.77; 95% CI, 0.46 to 1.27; P = .3) nor death (HR, 0.63; 95% CI, 0.36 to 1.09; P = .1) for CR versus PR/NR participants. Seventeen participants with a best response of PR/NR had surgical procedures; eight (50%) of 16 with available pathology reports had residual viable tumor and only three achieved a complete resection. Resection of residual masses was not associated with improved outcome. Conclusion CR status at the end of protocol therapy in clinical group III participants was not associated with a reduction of disease recurrence and death. Aggressive alternative therapy may not be warranted for RMS patients with a residual mass at the end of planned therapy.

scholarly journals Does the Prevalence of Obesity Affect the Demand for Soft Drinks? Evidence from Cross-Country Panel Data

2022 ◽  
Vol 19 (2) ◽  
pp. 938
Author(s):  
Fabrizio Ferretti ◽  
Michele Mariani ◽  
Elena Sarti
Keyword(s):  
Nutrition Education ◽  
Least Squares Method ◽  
Soft Drink ◽  
Soft Drinks ◽  
Market Demand ◽  
Reverse Causality ◽  
Soft Drink Consumption ◽  
Variable Approach ◽  
Prevalence Of Obesity ◽  
The Impact

The impact of soft drinks on obesity has been widely investigated during the last decades. Conversely, the role of obesity as a factor influencing the demand for soft drinks remains largely unexplored. However, understanding potential changes in the demand for soft drinks, as a result of changes in the spread of obesity, may be useful to better design a comprehensive strategy to curb soft drink consumption. In this paper, we aim to answer the following research question: Does the prevalence of obesity affect the demand for soft drinks? For this purpose, we collected data in a sample of 97 countries worldwide for the period 2005–2019. To deal with problems of reverse causality, an instrumental variable approach and a two-stage least squares method were used to estimate the impact of the age-standardized obesity rate on the market demand for soft drinks. After controlling for several demographic and socio-economic confounding factors, we found that a one percent increase in the prevalence of obesity increases the consumption of soft drinks and carbonated soft drinks by about 2.37 and 1.11 L per person/year, respectively. Our findings corroborate the idea that the development of an obesogenic food environment is a self-sustaining process, in which obesity and unhealthy lifestyles reinforce each other, and further support the need for an integrated approach to curb soft drink consumption by combining sugar taxes with bans, regulations, and nutrition education programs.

scholarly journals Benefits of implementing IT tools and procedures for the estimation and measurement uncertainty in testing laboratories

2020 ◽  
Vol 2 (7) ◽  
pp. 317-323
Author(s):  
Maria Cristina Dijmarescu
Keyword(s):  
Measurement Uncertainty ◽  
Rapid Expansion ◽  
Market Demand ◽  
Destructive Testing ◽  
Continuous Increase ◽  
Testing Laboratories ◽  
Quality Of Products ◽  
The Impact ◽  
Non Destructive

Destructive and non-destructive testing of materials present a rapid expansion given by the increase in market demand caused by the desire to obtain an increasingly better quality of products. The continuous increase in quality demands leads directly to the need to implement and modernize the techniques, methods, and equipment used for quality control. Consequently, the need for product testing services has a rapid growth. This paper presents the strength and weaknesses of implementing IT tools for the estimation of the measurement uncertainty in testing laboratories and the impact of these tools on the economic part

scholarly journals The impact of FDI on environmental technology innovation from the perspective of environmental regulation

2020 ◽  
Vol 206 ◽  
pp. 02001
Author(s):  
Ziting Wei
Keyword(s):  
Environmental Regulation ◽  
Technology Innovation ◽  
Negative Impact ◽  
Positive Impact ◽  
Inhibitory Effect ◽  
Market Demand ◽  
Environmental Technology ◽  
Industrial Enterprises ◽  
Threshold Regression Model ◽  
The Impact

Based on the perspective of environmental regulation, this paper selects panel data of 30 provinces in China from 2011 to 2016, establishes Hansen panel threshold regression model, and investigates the impact of FDI on environmental technology innovation of industrial enterprises in China under the threshold of environmental regulation. The results show that FDI has a significant inhibitory effect on the environmental technological innovation of industrial enterprises; the effect has a significant dual threshold of environmental regulation, with the intensity of environmental regulation across the threshold, the negative impact of FDI gradually weakened; market demand and industry scale have a significant positive impact, the role of technological progress is not significant. The findings of this paper provide a certain reference for the rational use of environmental regulation policies, the maximization of FDI technology spillover, the promotion of environmental technology innovation of industrial enterprises, and the realization of “win-win” of environment and economy.

scholarly journals Simulation Research on Information-Sharing Value of Two-Level Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Xiaheng Zhang ◽  
Zekai Lin ◽  
Lin Xiao
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
Information Sharing ◽  
Chain Model ◽  
Simulation Research ◽  
Incentive Effect ◽  
Actual Evaluation ◽  
Demand Information ◽  
And Performance ◽  
The Impact

In the two-stage supply chain model, the incentive effect to the supplier’s sharing of demand information and performance evaluation and the effect of various parameters on the incentive effect of the supply chain are studied through a multiagent simulation model constructed for the purpose. It is found that the incentive coefficient of demand information-sharing degree, the number of selected suppliers, the order allocation coefficient, and the order proportion are positively related to the incentive effect of demand information sharing. So, the greater the demand information sharing is, the greater the impact of these parameters on the incentive effect is. Based on the demand information sharing, the supplier performance evaluation rules are shared, and when the actual evaluation rules are inconsistent with the supplier’s expectations, the incentive effect is further enhanced. Other parameters do not affect the incentive effect of demand information sharing and performance evaluation rule sharing.

scholarly journals Learning Losses Caused by the Covid-19 Pandemic - A Significant Threat to Economic Development

2021 ◽  
Vol 4 (1) ◽  
pp. 92
Author(s):  
Tea Kasradze ◽  
Nino Zarnadze
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Organizations ◽  
Positive Impact ◽  
Secondary Data ◽  
Market Demand ◽  
Local Policy ◽  
Education Systems ◽  
Increase Productivity ◽  
The Impact

Numerous studies show that there is a positive correlation between education and the economic development of the country. Strong education systems have a positive impact not only on the success of individuals but also on the economy of the entire country. Graduates equipped with the skills required by the labor market can easily find a place in this market. Knowledge and skills relevant to market demand increase productivity have a positive impact on economic growth and development. Unfortunately, Covid Pandemic has severely damaged the education systems. Governments, scientists, and experts provide us with statistical information daily around the world about both the slowdown in economic growth as a whole and the problems of individual sectors of the economy. These are the problems and numbers that are already visible and it can be said that the losses are easily measurable. However, the damage caused to the economy by education systems affected by the pandemic will be felt by countries and humanity years later, nor will it be easy to calculate. The problem is even more difficult in poor and developing countries. This paper aims to study the impact of the Covid Pandemic on the education system and economy in Georgia. The research examines the reports and studies of various international organizations, analyzing the secondary data obtained from them. Local policy documents, government reports and regulations, and papers of different researchers have also been studied, conclusions have been made and relevant recommendations have been developed.

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