The Profitability of Revenue-Based Quotas Under Price Negotiation

2021 ◽  
Author(s):  
Pranav Jindal ◽  
Peter Newberry
Keyword(s):  
Reduced Form ◽  
Demand Model ◽  
Total Compensation ◽  
Price Negotiation ◽  
Level Data ◽  
Bargaining Position ◽  
Transaction Level ◽  
The Impact

We study how the presence of a monthly revenue-based quota impacts a retailer’s profits when prices are negotiated by a salesperson. Using transaction level data for refrigerators, we first provide reduced-form evidence that prices are impacted by the quota: the negotiated discounts are approximately 3.8% higher if the salesperson is 10% closer to reaching the quota in the final week of the month. Guided by this result, we specify and estimate a demand model that identifies the impact of the quota through two forces: the effort salespeople expend in order to sell the product and their bargaining position. Results indicate that, as salespeople get closer to reaching their quota, their effort increases regardless of the week, and their bargaining position weakens (i.e., they offer lower prices), but only in the final week of the month. We use these results to analyze the impact of the quota and find that, holding salespeoples’ total compensation fixed, eliminating quotas results in 8% lower profit for the retailer. This decrease stems primarily from the reduction in effort that outweighs any benefit from strengthening the salespeoples’ bargaining position. The change in profit is economically meaningful because eliminating both price negotiation (i.e., moving to fixed pricing) and the quota results in an up to 36% reduction in profit. This paper was accepted by Matthew Shum, marketing.

What's Happening to Profits at Cazenovia Creations?

2013 ◽  
Vol 8 (1) ◽  
pp. 24-29 ◽  
Author(s):  
Margaret Garnsey ◽  
Andrea Hotaling
Keyword(s):  
Financial Analysis ◽  
Financial Statements ◽  
Internal Controls ◽  
Net Income ◽  
Database Query ◽  
Microsoft Access ◽  
Level Data ◽  
Query Tool ◽  
Transaction Level

ABSTRACT In this case, students assume the role of an accounting professional asked by a client to investigate why net income is not as strong as expected. The students must first analyze a set of financial statements to identify areas of possible concern. After determining the areas to investigate, the students use a database query tool to see if they can determine causes by examining transaction level data. Finally, the students are asked to professionally communicate their findings and recommendations to their client. The case provides students with experience in using query-based approaches to answering business questions. It is appropriate for students with basic query and financial analysis skills and knowledge of internal controls. A Microsoft Access database with transaction details for the final seven months of the current year as well as financial statements for the current and prior year are provided.

The impact of regulations on labor markets in the U.S.

2019 ◽  
Vol 1 (1) ◽  
pp. 36-40
Author(s):  
Souad Adnane
Keyword(s):  
Supply And Demand ◽  
Demand Model ◽  
Lead Teachers ◽  
Associate's Degree ◽  
Childcare Workers ◽  
Educational Requirements ◽  
The Cost ◽  
Women's Labor Force Participation ◽  
The Impact ◽  
The U.S

The District of Columbia (DC) Office of the Superintendent of Education (OSSE) issued in December 2016 new educational requirements for childcare workers, according to which, all childcare center directors in the District must earn a bachelor’s degree by December 2022 and all lead teachers an associate’s degree by December 2020 (Institute for Justice, 2018). Moreover, DC has one of the lowest staff-child ratios in the country. How are regulations pertaining to childcare workers’ qualifications and staff-child ratio affecting the childcare market in DC? The present paper is an attempt to answer this question first by analyzing the effects of more stringent regulations on the cost and availability of childcare in the U.S based on existing studies. It also uses the basic supply and demand model to examine the possible impact of the new DC policy on the cost, quality and supply of childcare in the District and how it will affect working parents, especially mothers. Next, the paper discusses the impact of deregulation based on simulations and regressions conducted by studies covering the U.S., and implications for quality. It concludes that more stringent childcare regulations, regarding educational requirements and staff-child ratios, are associated with a reduced number of childcare centers and a higher cost, and eventually affects women’s labor force participation.

scholarly journals Anthropogenic drought dominates groundwater depletion in Iran

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Samaneh Ashraf ◽  
Ali Nazemi ◽  
Amir AghaKouchak
Keyword(s):  
Economic Security ◽  
Groundwater Depletion ◽  
Groundwater Storage ◽  
Rates Of Change ◽  
Level Data ◽  
Basin Scale ◽  
Storage Basin ◽  
Groundwater Reserves ◽  
The Impact ◽  
Hydrological Droughts

AbstractUsing publicly-available average monthly groundwater level data in 478 sub-basins and 30 basins in Iran, we quantify country-wide groundwater depletion in Iran. Natural and anthropogenic elements affecting the dynamics of groundwater storage are taken into account and quantified during the period of 2002–2015. We estimate that the total groundwater depletion in Iran to be ~ 74 km3 during this period with highly localized and variable rates of change at basin and sub-basin scales. The impact of depletion in Iran’s groundwater reserves is already manifested by extreme overdrafts in ~ 77% of Iran’s land area, a growing soil salinity across the entire country, and increasing frequency and extent of land subsidence in Iran’s planes. While meteorological/hydrological droughts act as triggers and intensify the rate of depletion in country-wide groundwater storage, basin-scale groundwater depletions in Iran are mainly caused by extensive human water withdrawals. We warn that continuation of unsustainable groundwater management in Iran can lead to potentially irreversible impacts on land and environment, threatening country’s water, food, socio-economic security.

Housing Prices and Government Approval: The Impact of Housing Booms on Left- and Right-Wing Governments in 16 Advanced Industrialized Countries

2021 ◽  
Vol 54 (1) ◽  
pp. 163-185
Author(s):  
Sung Min Han ◽  
Mi Jeong Shin
Keyword(s):  
Housing Prices ◽  
Right Wing ◽  
Industrialized Countries ◽  
Left Wing ◽  
Approval Ratings ◽  
The United Kingdom ◽  
Level Data ◽  
Left And Right ◽  
The Government ◽  
The Impact

AbstractIn this article, we argue that rising housing prices increase voter approval of incumbent governments because such a rise increases personal wealth, which leads to greater voter satisfaction. This effect is strongest under right-wing governments because those who benefit from rising prices—homeowners—are more likely to be right-leaning. Non-homeowners, who are more likely to vote for left-leaning parties, will view rising housing prices as a disadvantage and therefore feel the government does not serve them well, which will mitigate the advantage to left-wing governments. We find support for our arguments using both macro-level data (housing prices and government approval ratings in 16 industrialized countries between 1960 and 2017) and micro-level data (housing prices and individuals’ vote choices in the United Kingdom using the British Household Panel Survey). The findings imply that housing booms benefit incumbent governments generally and right-wing ones in particular.

scholarly journals Imaging NAD(H) Redox Alterations in Cryopreserved Alveolar Macrophages from Ozone-Exposed Mice and the Impact of Nutrient Starvation during Long Lag Times

Antioxidants ◽  
2021 ◽  
Vol 10 (5) ◽  
pp. 767
Author(s):  
He N. Xu ◽  
Joanna Floros ◽  
Lin Z. Li ◽  
Shaili Amatya
Keyword(s):  
Oxidative Stress ◽  
Alveolar Macrophages ◽  
Redox State ◽  
Redox Status ◽  
Nutrient Starvation ◽  
Ozone Exposure ◽  
Reduced Form ◽  
Time Period ◽  
Lag Times ◽  
The Impact

Employing the optical redox imaging technique, we previously identified a significant redox shift of nicotinamide adenine dinucleotide (NAD and the reduced form NADH) in freshly isolated alveolar macrophages (AM) from ozone-exposed mice. The goal here was twofold: (a) to determine the NAD(H) redox shift in cryopreserved AM isolated from ozone-exposed mice and (b) to investigate whether there is a difference in the redox status between cryopreserved and freshly isolated AM. We found: (i) AM from ozone-exposed mice were in a more oxidized redox state compared to that from filtered air (FA)-exposed mice, consistent with the results obtained from freshly isolated mouse AM; (ii) under FA exposure, there was no significant NAD(H) redox difference between fresh AM that had been placed on ice for 2.5 h and cryopreserved AM; however, under ozone exposure, fresh AM were more oxidized than cryopreserved AM; (iii) via the use of nutrient starvation and replenishment and H2O2-induced oxidative stress of an AM cell line, we showed that this redox difference between cryopreserved and freshly isolated AM is likely the result of the double “hit”, i.e., the ozone-induced oxidative stress plus nutrient starvation that prevented freshly isolated AM from a full recovery after being on ice for a prolonged time period. The cryopreservation technique we developed eliminates/minimizes the effects of oxidative stress and nutrient starvation on cells. This method can be adopted to preserve lung macrophages from animal models or clinical patients for further investigations.

Financial Access of Latin America and Caribbean Firms: What Are the Roles of Institutional, Financial, and Economic Development?

2021 ◽  
pp. 097265272110153
Author(s):  
Lan Khanh Chu
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Jel Classification ◽  
Caribbean Region ◽  
Country Level ◽  
Level Data ◽  
Latin America And Caribbean ◽  
The Impact ◽  
Moderating Role

This article examines the impact of institutional, financial, and economic development on firms’ access to finance in Latin America and Caribbean region. Based on firm- and country-level data from the World Bank databases, we employ an ordered logit model to understand the direct and moderating role of institutional, financial, and economic development in determining firms’ financial obstacles. The results show that older, larger, facing less competition and regulation burden, foreign owned, and affiliated firms report lower obstacles to finance. Second, better macro-fundamentals help to lessen the level of obstacles substantially. Third, the role of institutions in promoting firms’ inclusive finance is quite different to the role of financial development and economic growth. JEL classification: E02; G10; O16; P48

scholarly journals How does area-level deprivation depress an individual’s self-rated health and life satisfaction? Evidence from a nationwide population-based survey in Japan

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Takashi Oshio ◽  
Hiromi Kimura ◽  
Toshimi Nishizaki ◽  
Takashi Omori
Keyword(s):  
Life Satisfaction ◽  
Health Behavior ◽  
Well Being ◽  
Population Based ◽  
Internet Survey ◽  
Subjective Well Being ◽  
Individual Level ◽  
Self Rated Health ◽  
Level Data ◽  
The Impact

Abstract Background Area-level deprivation is well known to have an adverse impact on mortality, morbidity, or other specific health outcomes. This study examined how area-level deprivation may affect self-rated health (SRH) and life satisfaction (LS), an issue that is largely understudied. Methods We used individual-level data obtained from a nationwide population-based internet survey conducted between 2019 and 2020, as well as municipality-level data obtained from a Japanese government database (N = 12,461 living in 366 municipalities). We developed multilevel regression models to explain an individual’s SRH and LS scores using four alternative measures of municipality-level deprivation, controlling for individual-level deprivation and covariates. We also examined how health behavior and interactions with others mediated the impact of area-level deprivation on SRH and LS. Results Participants in highly deprived municipalities tended to report poorer SRH and lower LS. For example, when living in municipalities falling in the highest tertile of municipality-level deprivation as measured by the z-scoring method, SRH and LS scores worsened by a standard deviation of 0.05 (p < 0.05) when compared with those living in municipalities falling in the lowest tertile of deprivation. In addition, health behavior mediated between 17.6 and 33.1% of the impact of municipality-level deprivation on SRH and LS, depending on model specifications. Conclusion Results showed that area-level deprivation modestly decreased an individual’s general health conditions and subjective well-being, underscoring the need for public health policies to improve area-level socioeconomic conditions.

scholarly journals Islamist Women as Candidates in Elections: A Comparison of the Party of Justice and Development in Morocco and the Muslim Brotherhood in Egypt

2017 ◽  
Vol 57 (3-4) ◽  
pp. 329-359 ◽  
Author(s):  
Katarína Škrabáková
Keyword(s):  
Supply And Demand ◽  
Muslim Brotherhood ◽  
Candidate Selection ◽  
Demand Model ◽  
Mena Region ◽  
External Interference ◽  
Female Candidates ◽  
The Muslim Brotherhood ◽  
Supply And Demand Model ◽  
The Impact

This paper examines the legislative recruitment of women from conservative Islamist parties. It questions the common assumption that generally all Islamist parties are equally hostile to political participation and representation of women. For this purpose, two of the electorally most successful Islamist groups in the MENA region are compared, namely the Egyptian Muslim Brotherhood (MB) and its Moroccan offshoot, the Party of Justice and Development (PJD). The article seeks an explanation for diverging trends in female candidacy between these conservative religious movements, using the traditional supply and demand model of candidate selection. It argues that the less centralized and the more institutionalized parties (as is the case with the PJD) seem to be better equipped to facilitate women’s candidacy than the more oligarchic ones (the MB). In order to fully grasp the reasons behind the diverging trends in the nomination of female candidates from both Islamist parties, cultural factors are scrutinized as well. The article highlights the limits of the supply and demand model of candidate selection, which cannot explain instances of unexpected change in recruitment strategies based on external interference. Furthermore, it does not provide us the means to assess the impact of individual candidates’ ‘feminist credentials’ on overall female representation.


scholarly journals Gaseous chemistry and aerosol mechanism developments for version 3.5.1 of the online regional model, WRF-Chem

2014 ◽  
Vol 7 (6) ◽  
pp. 2557-2579 ◽  
Author(s):  
S. Archer-Nicholls ◽  
D. Lowe ◽  
S. Utembe ◽  
J. Allan ◽  
R. A. Zaveri ◽  
...  
Keyword(s):  
Gas Phase ◽  
Chemical Mechanism ◽  
Reduced Form ◽  
Sea Spray ◽  
Wind Fields ◽  
Aerosol Composition ◽  
Aerosol Emission ◽  
Sea Spray Aerosol ◽  
The Impact ◽  
Phase Chemical

Abstract. We have made a number of developments to the Weather, Research and Forecasting model coupled with Chemistry (WRF-Chem), with the aim of improving model prediction of trace atmospheric gas-phase chemical and aerosol composition, and of interactions between air quality and weather. A reduced form of the Common Reactive Intermediates gas-phase chemical mechanism (CRIv2-R5) has been added, using the Kinetic Pre-Processor (KPP) interface, to enable more explicit simulation of VOC degradation. N2O5 heterogeneous chemistry has been added to the existing sectional MOSAIC aerosol module, and coupled to both the CRIv2-R5 and existing CBM-Z gas-phase schemes. Modifications have also been made to the sea-spray aerosol emission representation, allowing the inclusion of primary organic material in sea-spray aerosol. We have worked on the European domain, with a particular focus on making the model suitable for the study of nighttime chemistry and oxidation by the nitrate radical in the UK atmosphere. Driven by appropriate emissions, wind fields and chemical boundary conditions, implementation of the different developments are illustrated, using a modified version of WRF-Chem 3.4.1, in order to demonstrate the impact that these changes have in the Northwest European domain. These developments are publicly available in WRF-Chem from version 3.5.1 onwards.

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