Flexible and Committed Advertising Contracts in Electronic Retailing

2020 ◽  
Vol 31 (2) ◽  
pp. 323-339
Author(s):  
Dengpan Liu ◽  
Subodha Kumar ◽  
Vijay S. Mookerjee
Keyword(s):  
Advertising Campaign ◽  
Electronic Retailing ◽  
Operational Costs ◽  
Optimal Value ◽  
Advertising Spending ◽  
Differential Pricing ◽  
Pricing Schemes

Many advertising agents offer flexible advertising contracts wherein firms have the flexibility of adjusting their level of advertising during the advertising campaign, whereas some agents also offer committed contracts wherein firms do not have this flexibility. Based on our analysis, we would recommend that e-retailing firms choose the flexible contracts, which give them the flexibility of adjusting their advertising spending during the advertising campaign and make them better off. We also send a clear message to e-retailers that their leverage of engaging in flexible competition is contingent on the size of their operational costs. In particular, as operational costs decrease, they should be more mindful of engaging in the flexible competition. However, from the standpoint of advertising agents (e.g., Facebook.com ), because firms’ advertising efforts are lower in flexible than committed competition, we would recommend that the advertising agents adopt differential pricing schemes under the two modes of competition. In particular, the agents need to offer discounts to the e-retailers signing flexible advertising contracts so as to step up the advertising competition. In addition, our findings also provide the advertising agents with guidance on how to determine the optimal value for the discounts to be offered.

scholarly journals Welfare and research and development incentive effects of uniform and differential pricing schemes

2021 ◽  
Author(s):  
Giorgio Gnecco ◽  
Fabio Pammolli ◽  
Berna Tuncay
Keyword(s):  
Research And Development ◽  
Marginal Cost ◽  
Optimization Problems ◽  
Parallel Trade ◽  
Uniform Pricing ◽  
Pricing Scheme ◽  
Global Welfare ◽  
Distribution Chain ◽  
Differential Pricing ◽  
Pricing Schemes

AbstractThis paper is about the application of optimization methods to the analysis of three pricing schemes adopted by one manufacturer in a two-country model of production and trade. The analysis focuses on pricing schemes—one uniform pricing scheme, and two differential pricing schemes—for which there is no competition coming from the so-called parallel trade. This term denotes the practice of buying a patented product like a medicine in one market at one price, then re-selling it in a second so-called gray market at a higher price, on a parallel distribution chain where it competes with the official distribution chain. The adoption of pricing schemes under which parallel trade does not arise can prevent the occurrence of its well-documented negative effects. In the work, a comparison of the optimal solutions to the optimization problems modeling the three pricing schemes is performed. More specifically, conditions are found under which the two differential pricing schemes are more desirable from several points of view (e.g., incentive for the manufacturer to do Research and Development, product accessibility, global welfare) than the uniform pricing scheme. In particular, we prove that, compared to the uniform pricing scheme, the two differential pricing schemes increase the incentive for the manufacturer to invest in Research and Development. We also prove that they serve both countries under a larger range of values for the relative market size, making the product more accessible to consumers in the lower price country. Moreover, we provide a sufficient condition under which price discrimination is more efficient from a global welfare perspective than uniform pricing. The analysis applies in particular to the case of the European Single Market for medicines. Compared to other studies, our work takes into account also the possible presence in all the optimization problems of a positive constant marginal cost of production, showing that it can have non-negligible effects on the results of the analysis. As an important contribution, indeed, our analysis clarifies the conditions—which have been overlooked in the literature about the mechanisms adopted to prevent parallel trade occurrence—that allow/do not allow one to neglect the presence of this factor. Such conditions are related, e.g., to the comparison between the positive constant marginal cost of production, the parallel trade cost per-unit, and the maximal price that can be effectively charged to the consumers in the lower price country.

EXAMINING THE USE OF WEATHER FORECASTS IN DIFFERENTIAL PRICING FOR SKI RESORTS

2018 ◽  
Vol 2018 ◽  
pp. 1299-1299
Author(s):  
Cindy Yoonjoung Heo ◽  
◽  
Mara Leidi ◽  
Seob Gyu Song
Keyword(s):  
Weather Forecasts ◽  
Ski Resorts ◽  
Differential Pricing

Optimization of K Value in KNN Algorithm for Spam and Ham Email Classification

2020 ◽  
Vol 4 (2) ◽  
pp. 377-383
Author(s):  
Eko Laksono ◽  
Achmad Basuki ◽  
Fitra Bachtiar
Keyword(s):  
Frequency Distribution ◽  
Confusion Matrix ◽  
High Accuracy ◽  
K Value ◽  
A Value ◽  
Optimal Value ◽  
Classification Evaluation ◽  
Email Spam ◽  
Email Classification

There are many cases of email abuse that have the potential to harm others. This email abuse is commonly known as spam, which contains advertisements, phishing scams, and even malware. This study purpose to know the classification of email spam with ham using the KNN method as an effort to reduce the amount of spam. KNN can classify spam or ham in an email by checking it using a different K value approach. The results of the classification evaluation using confusion matrix resulted in the KNN method with a value of K = 1 having the highest accuracy value of 91.4%. From the results of the study, it is known that the optimization of the K value in KNN using frequency distribution clustering can produce high accuracy of 100%, while k-means clustering produces an accuracy of 99%. So based on the results of the existing accuracy values, the frequency distribution clustering and k-means clustering can be used to optimize the K-optimal value of the KNN in the classification of existing spam emails.

Optimization of Cutting Parameters in Milling Process Using Genetic Algorithm and ANOVA (March 2020)

2020 ◽  
Vol 38 (10A) ◽  
pp. 1489-1503
Author(s):  
Marwa Q. Ibraheem
Keyword(s):  
Genetic Algorithm ◽  
Tool Wear ◽  
Material Removal Rate ◽  
Material Removal ◽  
Removal Rate ◽  
Cutting Speed ◽  
Cutting Parameters ◽  
Depth Of Cut ◽  
Optimal Value ◽  
Optimization Of Cutting Parameters

In this present work use a genetic algorithm for the selection of cutting conditions in milling operation such as cutting speed, feed and depth of cut to investigate the optimal value and the effects of it on the material removal rate and tool wear. The material selected for this work was Ti-6Al-4V Alloy using H13A carbide as a cutting tool. Two objective functions have been adopted gives minimum tool wear and maximum material removal rate that is simultaneously optimized. Finally, it does conclude from the results that the optimal value of cutting speed is (1992.601m/min), depth of cut is (1.55mm) and feed is (148.203mm/rev) for the present work.

FORMULATION AND SOLUTION OF OPTIMIZATION PROBLEM REDUNDANCY SYSTEM COMPRISING SITUATION CENTER

2019 ◽  
pp. 44-50
Author(s):  
A.V. Alekseev
Keyword(s):  
Analytical Model ◽  
Quality Indicators ◽  
Significant Influence ◽  
Optimization Problem ◽  
Sampling Theorem ◽  
Sampling Frequency ◽  
Generalized Sampling ◽  
Optimal Value ◽  
Situation Center ◽  
Situation Centers

The analysis of the concept, properties and features of heterogeneous redundancy in modern complex ergatic systems, including those included in the situation centers (SC). On the basis of the qualimetric paradigm, the generalized analytical model of quality and optimization of quality by private, group, summary and aggregated quality indicators is justified. Practical ways of realization of the model and methods of optimization of the objects which are a part of SC and them as a whole at the expense of reduction of structural, functional and other types of redundancy under the obligatory condition of non-reduction of the required value of quality are given. On the example of the generalized sampling theorem when choosing the optimal value of the sampling frequency of the real bandpass signal, the criticality and significant influence on the redundancy of data in their further processing in the SC is shown.

Neutrophil/lymphocyte Ratio after Flow Citometry Periferic Blood Cell Detection - Predictive Marker of Anastomotic Fistula in Colorectal Cancer Surgery

2020 ◽  
Vol 71 (6) ◽  
pp. 295-306
Author(s):  
Dumitru Radulescu ◽  
Vlad Dumitru Baleanu ◽  
Andrei Nicolaescu ◽  
Marius Lazar ◽  
Marius Bica ◽  
...  
Keyword(s):  
Colorectal Cancer ◽  
Cancer Patients ◽  
Rectal Surgery ◽  
Predictive Marker ◽  
Fistula Formation ◽  
Cell Detection ◽  
Colon And Rectal Surgery ◽  
Optimal Value ◽  
Anastomotic Fistula ◽  
Colorectal Cancer Patients

Anastomotic fistula is a dreadful complication of colon and rectal surgery that can put life into danger, being common after colorectal surgery. The preoperative lymphocyte neutrophil ratio (NLR) is known as a prognostic marker for colorectal cancer patients. The existence of a predictive marker of anastomotic fistula in colorectal cancer patients is not fully undestood, so we proposed to investigate the utility of preoperative NLR as a predictor of anastomotic fistula formation. This study the Neutrophils and lymphocytes were detected from periferic blood using flow citometry. We retrospectively evaluated 161 patients with colorectal cancer, who were treated curatively, in which at least one anastomosis was performed, comparing NLR values between patients who had fistula and those with normal healing, then comparing the group with low NLR, with the group with increased NLR, after finding the optimal value of NLR using the ROC curve.The optimal value of the NLR after establishing the cutoff value was 3.07. Between the low NLR group (n=134) and the high NLR group (n=27), were observed statistically significant differences in fistula (p [0.001) and death (p=0.001). The odds ratio for failure in the group with increased NLR was 10.37, which means that patients with NLR]3.54 have a chance of developing anastomotic fistula greater than 10.37 comparable to patients with lower NLR. We suggest the preoperative use of NLR can be used as a predictive marker of anastomotic fistula than can increase the quality of preoperative preparation and therefore the establishment of the optimal surgical technique that can lead to anastomotic fistula risk decrease.

Sign in / Sign up

Export Citation Format

Share Document