Incorporating Strategic Consumer Behavior into Customer Valuation

2005 ◽  
Vol 69 (4) ◽  
pp. 230-238 ◽  
Author(s):  
Michael Lewis
Keyword(s):  
Customer Value ◽  
Programming Model ◽  
Consumer Learning ◽  
Structural Dynamic ◽  
Managerial Flexibility ◽  
Estimated Parameters ◽  
Policy Experiments ◽  
Dynamic Programming Model ◽  
Marketing Variables ◽  
The Impact

The calculation of customer value without regard to marketing policy is problematic because the value of managerial flexibility and the impact of consumer learning are neglected. This article develops a structural dynamic programming model of consumer demand that includes marketing variables and consumer expectations of promotions. The author uses the estimated parameters to conduct policy experiments that yield more accurate forecasts of customer value and to study the impact of alternative marketing policies.

Individual Team Incentives and Managing Competitive Balance in Sports Leagues: An Empirical Analysis of Major League Baseball

2008 ◽  
Vol 45 (5) ◽  
pp. 535-549 ◽  
Author(s):  
Michael Lewis
Keyword(s):  
Programming Model ◽  
Major League Baseball ◽  
Revenue Sharing ◽  
Local Market ◽  
Competitive Balance ◽  
Structural Dynamic ◽  
Local Revenue ◽  
Major League ◽  
Sports Leagues ◽  
The Impact

Major League Baseball and other professional sports leagues have long been concerned with competitive imbalances caused by differences in local revenues. The fear is that in the absence of salary caps or other regulatory mechanisms, smaller-market teams will be unable to remain competitive. This research uses a structural dynamic programming model to analyze ownership's payroll investment decisions. This model estimates the relationship between optimal payrolls and local-market populations and the influence of long-term customer equity dynamics on payroll investments. In addition, the author analyzes the impact of a recent policy intervention that implemented revenue transfers from high-local-revenue markets to low-local-revenue markets. The statistical results indicate that market population has a significant impact on the value of a team's payroll investments. For example, optimal payrolls double as the population increases from 2.5 million to 7.5 million. Furthermore, rather than improving competitive balance, the adoption of revenue sharing has decreased the incentives for small-market teams to remain competitive. The author uses the estimation results to evaluate alternative approaches to managing competitive balance. Specifically, the results suggest that basing revenue-sharing payments on local-market population and (higher) attendance rates reduces payroll dispersion.

Property Size and Rangeland Degradation in the Queensland Mulga Rangelands.

1992 ◽  
Vol 14 (1) ◽  
pp. 9 ◽  
Author(s):  
JGI Passmore ◽  
CG Brown
Keyword(s):  
Dynamic Programming ◽  
Programming Model ◽  
Stochastic Dynamic ◽  
Cross Sectional ◽  
Rangeland Degradation ◽  
Financial Benefits ◽  
Programming Techniques ◽  
Dynamic Programming Model ◽  
The Impact ◽  
Stocking Rates

Small property size is often cited as one of the major causes of rangeland degradation in Australia. However, there is some conjecture as to the importance of this effect and the process by which small property sizes lead to rangeland degradation. Relatively little empirical analysis of these issues has been undertaken, especially in a dynamic context which is all important in the case of rangeland degradation. Regression and dynamic programming techniques are employed in this study to investigate and measure the impact of property sizes on the use and state of one of Australia's most important rangelands, the Queensland mulga rangeland. Regression analysis of cross sectional data reveals significant correlations between property size, stocking rate and degradation. These correlations are confirmed in a normative stochastic dynamic programming model which demonstrates that it is economically optimal for graziers managing smaller properties to adopt higher stocking rates. For these graziers, the longterm costs of land degradation are exceeded by short-term financial benefits of heavier stocking. Thus government policy aimed at arresting the serious degradation occurring in the mulga rangelands should focus on measures to facilitate property build-up..

scholarly journals Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Qingren He ◽  
Ranran Shi ◽  
Guofeng Tang
Keyword(s):  
Programming Model ◽  
The Other ◽  
Switching Rate ◽  
Model Framework ◽  
Numerical Examples ◽  
Time Dynamic ◽  
Switching Behaviour ◽  
Customer Switching ◽  
Dynamic Programming Model ◽  
The Impact

The interaction of a hybrid transshipment policy and customer switching behaviour will exacerbate the complexity of the structure of a hybrid transshipment policy. To cope with this problem, a discrete-time dynamic programming model framework with customer switching behaviour is developed. Based on this framework, we demonstrate that the retailer can obtain more profits with a hybrid transshipment than without one. Next, the existence of a reactive and preventive transshipment policy is shown, respectively. We further analyse the structural property of the holdback policy of reactive transshipment and give the threshold of customer switching rate when always rejecting the request. Meanwhile, a dominant preventive transshipment policy is formulated by which the retailer can control the inventory regardless of the influence of the preventive transshipment policy of the other as long as the inventory is observed by developing an easy-to-implement optimal hybrid transshipment strategy. In addition, the existence of an ordering Nash equilibrium of two retailers is proven. Then, we also illustrate the existence of a transshipment area and analyse the impact of the transshipment cost and switching rate on ordering, the hybrid transshipment policy, and profit by using numerical examples. Finally, we find that the retailer is more willing to adjust inventory by ordering when there is a lower transshipment price and adjust inventory by hybrid transshipment when there is a higher transshipment price.

Economic analysis of integrated management of wild oats involving fallow, herbicide and crop rotational options

1997 ◽  
Vol 37 (6) ◽  
pp. 683 ◽  
Author(s):  
R. Jones ◽  
R. Medd
Keyword(s):  
Dynamic Programming ◽  
Seed Bank ◽  
Programming Model ◽  
Economic Benefits ◽  
Integrated Weed Management ◽  
Economic Losses ◽  
Management Approach ◽  
Wild Oats ◽  
Dynamic Programming Model ◽  
The Impact

Summary. The primary objective of this study was to estimate the economic benefits associated with an integrated weed management approach for wild oats (Avena fatua and A. ludoviciana) in northern New South Wales involving chemical and non-chemical controls. The paper presents a framework for assessing the population dynamics of wild oats and the economics of a range of control options over 15 years. Wild oats is a weed primarily of winter crops which, as a consequence of its persistence and its impact upon yields, leads to significant economic losses in the grain growing regions of Australia. In this study, a dynamic programming model is developed to examine the impact of a range of management strategies for the control of wild oats in wheat. The strategies evaluated include conventional herbicide control to reduce weed densities, the use of selective herbicides to reduce seed set of the weed, and summer crop and winter fallow rotational options which provide a break in the cereal cycle and allow accelerated control of wild oat populations. The hypothesis for the study, that strategies which involve measures that directly reduce seed production and minimise wild oats seed bank populations will yield the greatest economic benefit, is acceptable based on the findings of the study. The work also shows that a dynamic programming model provides a means of determining the optimal combination of strategies over time for various initial values of the seed bank. The methodology is considered to have general application as a framework for evaluating the economics of weed control problems in annual cropping systems.

scholarly journals Efficient Operative Cost Reduction in Distribution Grids Considering the Optimal Placement and Sizing of D-STATCOMs Using a Discrete-Continuous VSA

2021 ◽  
Vol 11 (5) ◽  
pp. 2175
Author(s):  
Oscar Danilo Montoya ◽  
Walter Gil-González ◽  
Jesus C. Hernández
Keyword(s):  
Objective Function ◽  
Reactive Power ◽  
Programming Model ◽  
Search Algorithm ◽  
Solution Space ◽  
Distribution Networks ◽  
Optimal Placement ◽  
Mixed Integer ◽  
Solution Vector ◽  
The Impact

The problem of reactive power compensation in electric distribution networks is addressed in this research paper from the point of view of the combinatorial optimization using a new discrete-continuous version of the vortex search algorithm (DCVSA). To explore and exploit the solution space, a discrete-continuous codification of the solution vector is proposed, where the discrete part determines the nodes where the distribution static compensator (D-STATCOM) will be installed, and the continuous part of the codification determines the optimal sizes of the D-STATCOMs. The main advantage of such codification is that the mixed-integer nonlinear programming model (MINLP) that represents the problem of optimal placement and sizing of the D-STATCOMs in distribution networks only requires a classical power flow method to evaluate the objective function, which implies that it can be implemented in any programming language. The objective function is the total costs of the grid power losses and the annualized investment costs in D-STATCOMs. In addition, to include the impact of the daily load variations, the active and reactive power demand curves are included in the optimization model. Numerical results in two radial test feeders with 33 and 69 buses demonstrate that the proposed DCVSA can solve the MINLP model with best results when compared with the MINLP solvers available in the GAMS software. All the simulations are implemented in MATLAB software using its programming environment.

scholarly journals The Impact of Alternative Payment Arrangements on the Performance of Florida Sugarcane Cooperatives

1984 ◽  
Vol 16 (2) ◽  
pp. 99-108
Author(s):  
Rigoberto A. Lopez ◽  
Thomas H. Spreen
Keyword(s):  
Collective Behavior ◽  
Programming Model ◽  
Critical Role ◽  
Payment Systems ◽  
Cooperative Play ◽  
The Impact

AbstractPayment arrangements among members of a cooperative play a critical role in the performance of the cooperative. The impact of three payment systems is assessed for Florida sugarcane cooperatives through a bi-level programming model which incorporates both individual and collective behavior.

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