scholarly journals The Incentive and Supervision Mechanism of Banks on Third-Party B2B Platforms in Online Supply Chain Finance Using Big Data

2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Kun Tian ◽  
Xintian Zhuang ◽  
Beibei Yu
Keyword(s):  
Big Data ◽  
Numerical Analysis ◽  
Risk Aversion ◽  
Expected Utility ◽  
Third Party ◽  
Effort Level ◽  
Cost Coefficient ◽  
Expected Benefits ◽  
The Cost ◽  
The Impact

The incentive and supervision design of cooperation between banks and B2B platforms was studied under the electronic warehouse receipt pledge financing model. Under the assumptions of B2B platform risk, neutrality, and risk aversion, a principal-agent model for cooperation was established between banks and B2B platforms. Its purpose was to expand and compare the models by adding supervision variables. It also helps to analyze the effects of risk aversion coefficients on effort level, fixed payment, incentive coefficients, and the impact of bank income. This paper has analyzed the banking system’s incentives and supervision mechanisms by performing numerical analysis on big data. We have used MATLAB for numerical analysis. The results show that banks’ expected benefits when cooperating with risk-neutral B2B platforms are always greater than the expected benefits obtained when cooperating with risk-averse B2B platforms. But when banks act, the increase in profits exceeds the cost of regulatory measures. Besides, when the bank takes supervisory measures, the profit will be greater than the profit without supervisory measures. Hence, the B2B platform’s ability to recover losses is positively correlated with the bank’s expected utility. The cost coefficient of the B2B platform is negatively correlated with the bank’s expected utility. The risk aversion degree does not affect the optimal effort level of the B2B platform, but it affects the optimal fixed payment and the optimal incentive coefficient.

Contracting around International Uncertainty

2005 ◽  
Vol 99 (4) ◽  
pp. 549-565 ◽  
Author(s):  
BARBARA KOREMENOS
Keyword(s):  
Relative Risk ◽  
International Relations ◽  
Risk Aversion ◽  
Random Sample ◽  
Common Ground ◽  
International Agreements ◽  
Relative Risk Aversion ◽  
Expected Benefits ◽  
The Cost ◽  
Available Information

International cooperation is plagued by uncertainty. Although states negotiate the best agreements possible using available information, unpredictable things happen after agreements are signed that are beyond states' control. States may not even commit themselves to an agreement if they anticipate that circumstances will alter their expected benefits. Duration provisions can insure states in this context. Specifically, the use of finite duration depends positively on the degree of uncertainty and states' relative risk aversion and negatively on the cost. These formally derived hypotheses strongly survive a test with data on a random sample of agreements across all four of the major issue areas in international relations. Not only do the results, highlighting evidence on multiple kinds of flexibility provisions, strongly suggest that the design of international agreements is systematic and sophisticated; but also they call attention to common ground among various subfields of political science and law.

scholarly journals MODELING OF INFORMATION SECURITY SYSTEM IN COMPUTER NETWORK

2019 ◽  
pp. 36-41
Author(s):  
Bogdan Korniyenko ◽  
Liliya Galata
Keyword(s):  
Information Security ◽  
Computing System ◽  
Security System ◽  
Third Party ◽  
Virtual Network ◽  
Service Reliability ◽  
Network Simulator ◽  
Network Bandwidth ◽  
The Cost ◽  
The Impact

This article presents simulation modeling process as the way to study the behavior of the Information Security system. Graphical Network Simulator is used for modeling such system and Kali Linux is used for penetration testing and security audit. To implement the project GNS3 package is selected. GNS3 is a graphical network emulator that allows you to simulate a virtual network of more than 20 different manufacturers on a local computer, connect a virtual network to a real one, add a full computer to the network, Third-party Applications for network packet analysis are supported. Depending on the hardware platform on which GNS3 will be used, it is possible to build complex projects consisting of routers Cisco, Cisco ASA, Juniper, as well as servers running network operating systems. Using modeling in the design of computing systems, you can: estimate the bandwidth of the network and its components; identify vulnerability in the structure of computing system; compare different organizations of a computing system; make a perspective development forecast for computer system; predict future requirements for network bandwidth; estimate the performance and the required number of servers in the network; compare various options for computing system upgrading; estimate the impact of software upgrades, workstations or servers power, network protocols changes on the computing system. Research computing system parameters with different characteristics of the individual components allows us to select the network and computing equipment, taking into account its performance, quality of service, reliability and cost. As the cost of a single port in active network equipment can vary depends on the manufacturer's equipment, technology used, reliability, manageability. The modeling can minimize the cost of equipment for the computing system. The modeling becomes effective when the number of workstations is 50-100, and when it more than 300, the total savings could reach 30-40% of project cost

scholarly journals The impact of ECB loan valuation metrics on third-party loan pricing: A EU firm perspective

2020 ◽  
Vol 10 (2) ◽  
pp. 45-52
Author(s):  
Federico Beltrame ◽  
Luca Grassetti ◽  
Maurizio Polato ◽  
Giulio Velliscig
Keyword(s):  
Third Party ◽  
Cost Of Debt ◽  
Loan Pricing ◽  
Loan Portfolio ◽  
Prediction Ability ◽  
Debt Pricing ◽  
Default Prediction ◽  
Loan Quality ◽  
The Cost ◽  
The Impact

This paper delves into the implications for the bank behaviour about firm loan pricing conditions of the new direction undertaken by supervisory and regulatory authorities in the aftermath of the deterioration of the loan portfolio quality that hit EU banks. The 2014 AQR exercise embraces the new direction and extensively uses debt service coverage measures to assess a firm’s loan quality. We, therefore, check whether the DSCR has influenced debt pricing conditions by analysing a panel of 655 listed EU firms from 2009 to 2017. Our findings show that Z-score is unable to discriminate between high and low credit risk firms. The DSCR becomes significant only after 2014, highlighting the incremented importance of this ratio in the bank’s loan pricing determination. Our work contributes to the literature investigating third-party interdependencies with the interplay between lender-borrower relationship and loan pricing and further extends the literature on creditworthiness metrics beyond their mere default-prediction ability (Beaver, 1966; Houghton & Woodliff, 1987). Our results highlight the relevance of the DSCR in the bank’s loan pricing determination and inform firm managers about the drivers that influence the cost of debt thereby enhancing their operational and financial planning.

scholarly journals Impact of Risk Aversion on Price and Quality Decisions under Demand Uncertainty via the CARA Utility Function

2014 ◽  
Vol 2014 ◽  
pp. 1-15 ◽  
Author(s):  
Qinqin Li ◽  
Zhiying Liu ◽  
Yi He
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Demand Uncertainty ◽  
Absolute Risk ◽  
Wholesale Price ◽  
Retail Price ◽  
Cost Coefficient ◽  
Stackelberg Model ◽  
Cara Utility ◽  
The Impact

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.

scholarly journals Cost-sharing strategy for recycling and service investment in a closed-loop supply chain

2021 ◽  
Vol 55 (5) ◽  
pp. 2963-2990
Author(s):  
Renbang Shan ◽  
Li Luo ◽  
Ran Kou
Keyword(s):  
Cost Sharing ◽  
Stackelberg Game ◽  
Sensitivity Coefficient ◽  
Third Party ◽  
Government Subsidy ◽  
Service Cost ◽  
Cost Coefficient ◽  
Sharing Strategy ◽  
Investment Cost ◽  
The Impact

This paper investigates the cost-sharing strategies of a manufacturer, a retailer and a third-party recycler in a Stackelberg game considering government subsidy and retailer’s service effort. Next, we construct profit functions of the manufacturer, the retailer and the third-party recycler considering government subsidy and service effort for four scenarios: no cost-sharing (N), service investment cost-sharing (I), recycling investment cost-sharing (II), and both service and recycling investment cost-sharing (III). Furthermore, we obtain the optimal results and discuss the impact of cost-sharing ratio, service cost coefficient, government subsidy and service sensitivity coefficient on profits and social net benefits. The results show that the service investment cost-sharing strategy cannot achieve profit coordination, and under certain conditions, the recycling investment cost-sharing strategy and the service and recycling investment cost-sharing strategy can achieve profit coordination. In addition, changes in different factors such as government subsidy, service cost coefficients, and service sensitivity coefficients will affect the effectiveness of cost-sharing strategies.

scholarly journals Design of Principal-agent Incentive Mechanism between Government and NPO

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Honglian Guo ◽  
Zhenzhen Wu ◽  
Han Li
Keyword(s):  
Risk Aversion ◽  
Expected Utility ◽  
Absolute Risk ◽  
Principal Agent ◽  
Output Level ◽  
Principal Agent Theory ◽  
Absolute Risk Aversion ◽  
Output Coefficient ◽  
The Impact ◽  
Society Research

Based on principal-agent theory, this paper establishes an incentive contract mechanism between government and NPO under asymmetric information, and analyzes the impact of absolute risk aversion and output level on the expected utility of government, NPO and society. Research shows that risk aversion is negatively correlated with the expected utility of government, NPO and society. The output coefficient is positively correlated with the expected utility of government, NPO and society. Reducing absolute risk aversion, increasing output coefficient and increasing government incentives can effectively motivate NPO to actively participate in social rescue activities.

scholarly journals Big Data and the Essential Facilities Doctrine: A Law and Economics Approach to Fostering Competition and Innovation in Creative Industries

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Deirdre Ryan
Keyword(s):  
Big Data ◽  
Intellectual Property ◽  
Market Power ◽  
Law And Economics ◽  
Creative Industries ◽  
Streaming Services ◽  
Economic Functioning ◽  
The Cost ◽  
The Impact ◽  
Innovation Incentives

This article examines the growing market power of global streaming services in creative industries for video and music, and the intellectual property investments and inputs in these services. The author considers the prevalence of big data in these industries, enabling the development of highly targeted content, thereby dramatically reducing the potential of failure and mitigating the cost of investment. The author examined the suitability of traditional intellectual property laws for creative works driven largely by data inputs. The possibility of utilising the essential facilities doctrine to impose a duty to licence on these undertakings and the impact that could have on competition, innovation, incentives, and the economic functioning of creative industries is explored. 

Demonstrating Nutrient Cost Gradients: A Brooklyn Case Study

2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi
Keyword(s):  
Low Income ◽  
Energy Content ◽  
Food Selection ◽  
The United States ◽  
United States Department ◽  
Micronutrient Deficiencies ◽  
Caloric Density ◽  
Low Income Families ◽  
The Cost ◽  
The Impact

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.

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