scholarly journals Resource Allocation Among Competing Innovators

2021 ◽  
Author(s):  
Pin Gao ◽  
Xiaoshuai Fan ◽  
Yangguang Huang ◽  
Ying-Ju Chen
Keyword(s):  
Resource Allocation ◽  
Social Welfare ◽  
Consumer Surplus ◽  
Product Market ◽  
Limited Resources ◽  
Trade Off ◽  
Rent Dissipation ◽  
Specific Target ◽  
For Profit ◽  
Innovative Products

Many innovative products are designed to satisfy the demand of specific target consumers; thus, the innovators will inevitably compete with each other in the product market. We investigate how a profit-maximizing principal should properly allocate her limited resources to support the innovations of multiple potentially competing innovators. We find that, as the available resources increase, the optimal diversification of investment may first increase and then decrease. This interesting nonmonotone pattern is driven by a trade-off between the risk of innovation failure and rent dissipation because of competition. Using this framework, we also analyze a nonprofit principal seeking to maximize the total number of successful innovations, the probability of at least one innovator succeeding, consumer surplus, and total social welfare. A nonprofit principal tends to invest more diversely compared with a for-profit counterpart. This paper was accepted by Sridhar Tayur, entrepreneurship and innovation.

scholarly journals R&D Activities in Oligopoly and Social Welfare

2015 ◽  
Vol 46 (1) ◽  
pp. 134-146 ◽  
Author(s):  
Jacek Prokop ◽  
Bartłomiej Wiśnicki
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Product Market ◽  
Cournot Competition ◽  
Production Costs ◽  
Cost Functions ◽  
Firm Competition ◽  
Research Level ◽  
The Impact ◽  
Total Welfare

Abstract This paper analyzes the impact of R&D activities in an oligopoly on consumer surplus and social welfare. We use a two-stage model to analyze the behavior of duopolists at the research level, and in the final-product market, under the assumption of linear and quadratic cost functions. Three options for firm competition are considered: 1) Cournot competition at both stages; 2) cooperation at the R&D stage and Cournot competition in the final-product market; and 3) cooperation at both stages. Numerical simulations for various levels of R&D spillovers are conducted to analyze the welfare effects of firm decisions. We conclude that for high levels of technological spillovers, total welfare is highest when firms engage in cooperation at the R&D stage, and compete in the final product market, independent of the shape of cost functions. However, the functional form of production costs has a qualitative impact on welfare when firms fully compete.

scholarly journals Externalities and Regulation in Card Payment Systems

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Jean-Charles Rochet ◽  
Jean Tirole
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Welfare Analysis ◽  
Payment Systems ◽  
Interchange Fees ◽  
Regulatory Approach ◽  
Innovative Thinking ◽  
Card Payment ◽  
Economic Thinking

The paper offers a roadmap to the current economic thinking concerning interchange fees. After describing the fundamental externalities inherent in payment systems and analysing merchant resistance to interchange fee increases and the associations' determination of this fee, it derives the externalities' implications for welfare analysis. It then discusses whether consumer surplus or social welfare is the proper benchmark for regulatory purposes. Finally, it offers a critique of the current regulatory approach, and concludes with a call for more novel and innovative thinking about how to reconcile regulators' concerns and the industry legitimate desire to perform its balancing act.

scholarly journals Best Trade-Off Point Method for Efficient Resource Provisioning in Spark

Algorithms ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 190
Author(s):  
Peter Nghiem
Keyword(s):  
Resource Allocation ◽  
Cluster Computing ◽  
High Energy ◽  
Optimal Number ◽  
Resource Provisioning ◽  
Trade Off ◽  
Energy Efficient Computing ◽  
Hadoop Mapreduce ◽  
Efficient Resource ◽  
Mathematical Formulas

Considering the recent exponential growth in the amount of information processed in Big Data, the high energy consumed by data processing engines in datacenters has become a major issue, underlining the need for efficient resource allocation for more energy-efficient computing. We previously proposed the Best Trade-off Point (BToP) method, which provides a general approach and techniques based on an algorithm with mathematical formulas to find the best trade-off point on an elbow curve of performance vs. resources for efficient resource provisioning in Hadoop MapReduce. The BToP method is expected to work for any application or system which relies on a trade-off elbow curve, non-inverted or inverted, for making good decisions. In this paper, we apply the BToP method to the emerging cluster computing framework, Apache Spark, and show that its performance and energy consumption are better than Spark with its built-in dynamic resource allocation enabled. Our Spark-Bench tests confirm the effectiveness of using the BToP method with Spark to determine the optimal number of executors for any workload in production environments where job profiling for behavioral replication will lead to the most efficient resource provisioning.

scholarly journals Cost of reproduction in the Queensland fruit fly: Y-model versus lethal protein hypothesis

2012 ◽  
Vol 279 (1749) ◽  
pp. 4893-4900 ◽  
Author(s):  
Benjamin G. Fanson ◽  
Kerry V. Fanson ◽  
Phillip W. Taylor
Keyword(s):  
Side Effects ◽  
Egg Production ◽  
Fruit Fly ◽  
Cost Of Reproduction ◽  
Limited Resources ◽  
Differential Allocation ◽  
Trade Off ◽  
Protein Ingestion ◽  
Model Versus ◽  
Allocation Strategies

The trade-off between lifespan and reproduction is commonly explained by differential allocation of limited resources. Recent research has shown that the ratio of protein to carbohydrate (P : C) of a fly's diet mediates the lifespan–reproduction trade-off, with higher P : C diets increasing egg production but decreasing lifespan. To test whether this P : C effect is because of changing allocation strategies (Y-model hypothesis) or detrimental effects of protein ingestion on lifespan (lethal protein hypothesis), we measured lifespan and egg production in Queensland fruit flies varying in reproductive status (mated, virgin and sterilized females, virgin males) that were fed one of 18 diets varying in protein and carbohydrate amounts. The Y-model predicts that for sterilized females and for males, which require little protein for reproduction, there will be no effect of P : C ratio on lifespan; the lethal protein hypothesis predicts that the effect of P : C ratio should be similar in all groups. In support of the lethal protein hypothesis, and counter to the Y-model, the P : C ratio of the ingested diets had similar effects for all groups. We conclude that the trade-off between lifespan and reproduction is mediated by the detrimental side-effects of protein ingestion on lifespan.

Endogenous Timing in Vertically-Related Markets

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Hong-Ren Din ◽  
Chia-Hung Sun
Keyword(s):  
Social Welfare ◽  
Price Competition ◽  
Consumer Surplus ◽  
The Other ◽  
Endogenous Timing ◽  
Price Strategy ◽  
Quantity Competition ◽  
Sequential Game ◽  
Product Substitutability

Abstract This paper investigates the theory of endogenous timing by taking into account a vertically-related market where an integrated firm competes with a downstream firm. Contrary to the standard results in the literature, we find that both firms play a sequential game in quantity competition and play a simultaneous game in price competition. Under mixed quantity-price competition, the firm choosing a price strategy moves first and the other firm choosing a quantity strategy moves later in equilibrium. Given that the timing of choosing actions is determined endogenously, aggregate profit (consumer surplus) is higher (lower) under price competition than under quantity competition. Lastly, social welfare is higher under quantity competition than under price competition when the degree of product substitutability is relatively low.

A Model of Queue Scalping

2021 ◽  
Author(s):  
Luyi Yang ◽  
Zhongbin Wang ◽  
Shiliang Cui
Keyword(s):  
Social Welfare ◽  
Service Provider ◽  
Operations Management ◽  
Consumer Surplus ◽  
System Throughput ◽  
Theoretic Model ◽  
Material Interest ◽  
Long Run ◽  
Short Run ◽  
Primary Service

Recent years have witnessed the rise of queue scalping in congestion-prone service systems. A queue scalper has no material interest in the primary service but proactively enters the queue in hopes of selling his spot later. This paper develops a queueing-game-theoretic model of queue scalping and generates the following insights. First, we find that queues with either a very small or very large demand volume may be immune to scalping, whereas queues with a nonextreme demand volume may attract the most scalpers. Second, in the short run, when capacity is fixed, the presence of queue scalping often increases social welfare and can increase or reduce system throughput, but it tends to reduce consumer surplus. Third, in the long run, the presence of queue scalping motivates a welfare-maximizing service provider to adjust capacity using a “pull-to-center” rule, increasing (respectively, reducing) capacity if the original capacity level is low (respectively, high). When the service provider responds by expanding capacity, the presence of queue scalping can increase social welfare, system throughput, and even consumer surplus in the long run, reversing its short-run detrimental effect on customers. Despite these potential benefits, such capacity expansion does little to mitigate scalping and may only generate more scalpers in the queue. Finally, we compare and contrast queue scalping with other common mechanisms in practice—namely, (centralized) pay-for-priority, line sitting, and callbacks. This paper was accepted by Victor Martínez de Albéniz, operations management.

Load Balancing pada Cloud Computing dengan Sumber Daya Terbatas Menggunakan Penggabungan Algoritma ESCE dan Throttled

2015 ◽  
Vol 7 (1) ◽  
Author(s):  
Endang Wahyu Pamungkas ◽  
Divi Galih Prasetyo Putri
Keyword(s):  
Resource Allocation ◽  
Cloud Computing ◽  
Load Balancing ◽  
High Reliability ◽  
Cloud Service ◽  
The Other ◽  
Limited Resources ◽  
Resource Quality ◽  
Cloud Computing Environment ◽  
Load Balancing Algorithm

Recently cloud computing technology has been implemented by many companies. This technology requires a really high reliability that closely related to hardware specification and management resource quality used. Adequate hardware would make resource allocation easier. On the other hand, resource allocation will be harder if the resources are limited. This is a common condition in a developing cloud service provider. In this paper, a load balancing algorithm to allocate resources in cloud computing environment that has limited resources has been proposed. This algorithm is developed by taking the advantages of the existing algorithms, Equally Spread Current Execution and Throttled. We merge those algorithm without losing the advantages and we try to eliminate the shortcoming of each algorithm. The result shows that this algorithm is able to give a significant improvement in the limited resources environment. In addition, the algorithm also able to compete with the other algorithm in the more adequate resource environment. Based on the consistent results, this algorithm is expected to be more adaptive in different resources environment.

STORE PROMOTION, MANUFACTURER COMPETITION AND WELFARE

2021 ◽  
pp. 1-18
Author(s):  
HAO WANG ◽  
XUNDONG YIN ◽  
ALICE Y. OUYANG
Keyword(s):  
Social Welfare ◽  
Consumer Preferences ◽  
Consumer Surplus ◽  
Weighted Average ◽  
Brand Name ◽  
Price Distortion ◽  
Online Platforms ◽  
Brand Competition ◽  
The Social ◽  
Partial Exclusion

This study evaluates the partial exclusion effects of store promotion. We find that a manufacturer with a better brand name has a higher willingness-to-pay for promotion services offered by retail stores or online platforms. The promotion results in higher sales-weighted average prices (wholesale and retail) and a larger inter-brand price gap. The stores or platforms extract more profits from manufacturers and consumers through the promotion services. The effects on consumer surplus and social welfare depend on whether the promotion alters consumer preferences. If it does, more consumers would be choosing their less-preferred brands because of the larger inter-brand price gap, which would be socially inefficient. If it does not, the promotion may help to correct the price distortion, but the social welfare effect is positive only when the promotion effect is small enough. In both cases, the promotion services reduce the total consumer surplus by softening inter-brand competition.

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