This work studies the deployment of the ship‐from‐store omnichannel strategy and the pricing and inventory decisions for an online retailer. Robust optimization models are constructed for the online‐only and the ship‐from‐store modes under a budgeted uncertainty set. The ARIMA model is used to predict the parameter values of the budgeted uncertainty set using historical demand data. The closed‐form optimal solution for the online‐only mode is obtained. The robust counterpart model for the ship‐from‐store mode is converted to a mixed integer quadratic programming model. Numerical studies are conducted to validate the theoretical results and to verify the effectiveness and practicality of the developed robust optimization solution approach. The results show that adopting a ship‐from‐store strategy may hurt the retailer's profit if a significant proportion of consumers are time‐sensitive with high travel cost. The ship‐from‐store strategy is optimal if it significantly boosts market growth.
{"title":"Robust pricing and inventory decisions in ship‐from‐store omnichannel operations","authors":"Yue Sun, Ruozhen Qiu, Minghe Sun","doi":"10.1002/mde.4348","DOIUrl":"https://doi.org/10.1002/mde.4348","url":null,"abstract":"This work studies the deployment of the ship‐from‐store omnichannel strategy and the pricing and inventory decisions for an online retailer. Robust optimization models are constructed for the online‐only and the ship‐from‐store modes under a budgeted uncertainty set. The ARIMA model is used to predict the parameter values of the budgeted uncertainty set using historical demand data. The closed‐form optimal solution for the online‐only mode is obtained. The robust counterpart model for the ship‐from‐store mode is converted to a mixed integer quadratic programming model. Numerical studies are conducted to validate the theoretical results and to verify the effectiveness and practicality of the developed robust optimization solution approach. The results show that adopting a ship‐from‐store strategy may hurt the retailer's profit if a significant proportion of consumers are time‐sensitive with high travel cost. The ship‐from‐store strategy is optimal if it significantly boosts market growth.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191048","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates how product modularity affects a manufacturer's recovery strategy by constructing two trade‐in models: one with a module market and another without. Our results reveal that opening a module market is not always profitable for the manufacturer, except when the module production cost is extremely low. When opening it is less profitable, the manufacturer can boost profits by raising the module price, increasing salvage value, and reducing costs through remanufacturing. Regarding collection quantity, our findings reveal that a module market, particularly with high module costs and durability, increases trade‐in quantity, challenging the conventional expectations of market share erosion.
{"title":"Harnessing the power of module markets for effective product recovery strategies","authors":"Xuxin Lai, Li Zhou, Nengmin Wang, Tao Jia","doi":"10.1002/mde.4375","DOIUrl":"https://doi.org/10.1002/mde.4375","url":null,"abstract":"This paper investigates how product modularity affects a manufacturer's recovery strategy by constructing two trade‐in models: one with a module market and another without. Our results reveal that opening a module market is not always profitable for the manufacturer, except when the module production cost is extremely low. When opening it is less profitable, the manufacturer can boost profits by raising the module price, increasing salvage value, and reducing costs through remanufacturing. Regarding collection quantity, our findings reveal that a module market, particularly with high module costs and durability, increases trade‐in quantity, challenging the conventional expectations of market share erosion.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191064","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigates effects of imported intermediate inputs on firms' productivity in the Indian manufacturing. We use a panel data of manufacturing firms from 2001 to 2021 and adopt the production function approach for analysis. Our results confirm the crucial role of all three imported input types at aggregated and disaggregated levels. However, the productivity effect of imported raw materials is the largest, followed by finished goods and capital inputs. Results show the role of imports is marginally higher for high innovation, specialist‐suppliers and science‐based industries. We also show that spillover effects of foreign technology embodied in imported capital goods.
{"title":"Imported inputs and productivity: Unraveling the dynamics in India's manufacturing sector","authors":"Rupika Khanna, Chandan Sharma","doi":"10.1002/mde.4382","DOIUrl":"https://doi.org/10.1002/mde.4382","url":null,"abstract":"This study investigates effects of imported intermediate inputs on firms' productivity in the Indian manufacturing. We use a panel data of manufacturing firms from 2001 to 2021 and adopt the production function approach for analysis. Our results confirm the crucial role of all three imported input types at aggregated and disaggregated levels. However, the productivity effect of imported raw materials is the largest, followed by finished goods and capital inputs. Results show the role of imports is marginally higher for high innovation, specialist‐suppliers and science‐based industries. We also show that spillover effects of foreign technology embodied in imported capital goods.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191050","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Sports leagues are traditionally considered natural monopolies. Understanding how they interact with one another is important. It is unclear how participation in a closed supra league affects competition in domestic leagues. This paper studies the effect of participating in basketball's Euroleague on team performance in national leagues. We find that Euroleague participation reduces the probability of victory by around 9% in ‘big’ leagues (i.e. those with the strongest teams). However, no significant effect was found in other leagues. A possible transmission channel is the reduction in the number of days between matches. We discuss the policy implications of this result.
{"title":"Does a super league tournament harm domestic leagues? Evidence from basketball's Euroleague","authors":"Babatunde Buraimo, Jing Guan, J. D. Tena","doi":"10.1002/mde.4376","DOIUrl":"https://doi.org/10.1002/mde.4376","url":null,"abstract":"Sports leagues are traditionally considered natural monopolies. Understanding how they interact with one another is important. It is unclear how participation in a closed supra league affects competition in domestic leagues. This paper studies the effect of participating in basketball's Euroleague on team performance in national leagues. We find that Euroleague participation reduces the probability of victory by around 9% in ‘big’ leagues (i.e. those with the strongest teams). However, no significant effect was found in other leagues. A possible transmission channel is the reduction in the number of days between matches. We discuss the policy implications of this result.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191057","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study presents a vertical supply chain model that considers bargaining power to explore independent innovation and co‐innovation decisions and their impacts and analyzes the optimal subsidy strategy for co‐innovation. We find that collaboration promotes technology innovation. Increases in consumer innovation preferences and government subsidies are conducive to co‐innovation. Both independent and co‐innovation can promote Pareto improvements under limiting conditions. Government subsidies can improve co‐innovation performance, but the subsidy parameter needs to be regulated. The optimal subsidy strategy is influenced by the subsidy target and budget. Governments prefer an innovative degree subsidy or a production cost subsidy.
{"title":"Technology innovation decision‐making and optimal government subsidy strategy with endogenous bargaining power in a vertical supply chain","authors":"Junlong Chen, Zuli Han, Xiaomin Sun, Jiali Liu","doi":"10.1002/mde.4351","DOIUrl":"https://doi.org/10.1002/mde.4351","url":null,"abstract":"This study presents a vertical supply chain model that considers bargaining power to explore independent innovation and co‐innovation decisions and their impacts and analyzes the optimal subsidy strategy for co‐innovation. We find that collaboration promotes technology innovation. Increases in consumer innovation preferences and government subsidies are conducive to co‐innovation. Both independent and co‐innovation can promote Pareto improvements under limiting conditions. Government subsidies can improve co‐innovation performance, but the subsidy parameter needs to be regulated. The optimal subsidy strategy is influenced by the subsidy target and budget. Governments prefer an innovative degree subsidy or a production cost subsidy.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191052","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Extended warranties (EWs) are common in online sales, available from various providers. Manufacturers are typically perceived as better repairers, making their EWs more valuable than retailers'. We explore four cases: no provider (Model N), manufacturer‐provided (Model M), retailer‐provided (Model R), and dual‐provider (Model B). Initially, we analyze exogenous quality, then consider endogenous quality with variable failure rates (Models VN, VM, VR, and VB). While product demand is consistent, EW demand varies across models. Dual‐channel EWs (Model B/VB) maintain manufacturer EW demand but reduce retailer EW demand. They increase profits under exogenous quality but may not under endogenous quality.
延长保修(EW)在网上销售中很常见,有各种供应商提供。制造商通常被认为是更好的维修商,因此他们的延长保修比零售商的更有价值。我们探讨了四种情况:无提供商(模型 N)、制造商提供(模型 M)、零售商提供(模型 R)和双提供商(模型 B)。我们首先分析外生质量,然后考虑故障率可变的内生质量(模型 VN、VM、VR 和 VB)。虽然产品需求是一致的,但不同模式下的 EW 需求却各不相同。双渠道 EW(模型 B/VB)维持了制造商的 EW 需求,但减少了零售商的 EW 需求。在外生性质量条件下,它们会增加利润,但在内生性质量条件下可能不会。
{"title":"Optimal extended warranty strategy considering channel perception and endogenous quality","authors":"Keang Zhang, Tao Zhang, Shang Gao","doi":"10.1002/mde.4371","DOIUrl":"https://doi.org/10.1002/mde.4371","url":null,"abstract":"Extended warranties (EWs) are common in online sales, available from various providers. Manufacturers are typically perceived as better repairers, making their EWs more valuable than retailers'. We explore four cases: no provider (Model N), manufacturer‐provided (Model M), retailer‐provided (Model R), and dual‐provider (Model B). Initially, we analyze exogenous quality, then consider endogenous quality with variable failure rates (Models VN, VM, VR, and VB). While product demand is consistent, EW demand varies across models. Dual‐channel EWs (Model B/VB) maintain manufacturer EW demand but reduce retailer EW demand. They increase profits under exogenous quality but may not under endogenous quality.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142224850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recently, the use of pass‐through as an economic tool has garnered increasing interest. This paper explores the relationship between CO2 cost pass‐through and market power within emission trading schemes characterized by vertical relations. Our study finds that increased competition in the wholesale market can mitigate pass‐through under mild conditions, while countervailing buyer power at the retail level can partially neutralize the effects of CO2 cost pass‐through. Furthermore, our numerical tests reveal pass‐through overshifting, occurring even under non‐convex market demand conditions. Our results generalize and update some known findings in literature (e.g. Wang and Zhou, 2017; Yu et al., 2021; and Chen et al., 2023) and carry some important implications for energy policy, environmental regulation, and welfare analysis.
最近,将转嫁作为一种经济工具的做法越来越受到关注。本文探讨了以纵向关系为特征的排放交易计划中二氧化碳成本转嫁与市场力量之间的关系。我们的研究发现,在温和的条件下,批发市场竞争的加剧可以缓解转嫁,而零售层面的买方力量可以部分中和二氧化碳成本转嫁的影响。此外,我们的数值测试表明,即使在非凸的市场需求条件下,转嫁也会发生。我们的结果概括并更新了一些已知的文献结论(如 Wang 和 Zhou,2017 年;Yu 等,2021 年;Chen 等,2023 年),并对能源政策、环境监管和福利分析产生了一些重要影响。
{"title":"The CO2 cost pass‐through and market power in emission trading schemes with vertical relations","authors":"Wenya Liu, Xusen Zhu, Zhe Chen","doi":"10.1002/mde.4356","DOIUrl":"https://doi.org/10.1002/mde.4356","url":null,"abstract":"Recently, the use of pass‐through as an economic tool has garnered increasing interest. This paper explores the relationship between CO2 cost pass‐through and market power within emission trading schemes characterized by vertical relations. Our study finds that increased competition in the wholesale market can mitigate pass‐through under mild conditions, while countervailing buyer power at the retail level can partially neutralize the effects of CO2 cost pass‐through. Furthermore, our numerical tests reveal pass‐through overshifting, occurring even under non‐convex market demand conditions. Our results generalize and update some known findings in literature (e.g. Wang and Zhou, 2017; Yu et al., 2021; and Chen et al., 2023) and carry some important implications for energy policy, environmental regulation, and welfare analysis.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191059","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, the dynamic pledge financing decision problem of a borrowing enterprise is studied in the context of a supply chain finance system that includes a financial institution and a borrowing enterprise (small and medium‐sized enterprises [SMEs]). The optimal Inventory pledge, as well as redemption decisions of the borrowing enterprise, are analyzed under the consideration of constant and changing redemption prices, respectively, and the effects of the main parameters on the optimal decisions are discussed. It found that (1) when the redemption price is constant, the borrowing enterprise's optimal quantity of inventory pledge increases as the initial inventory quantity increases or the redemption price decreases; (2) when the redemption price varies, the borrowing enterprise's optimal inventory redemption quantity decreases as the initial inventory pledge and the redemption price increase; and (3) the borrowing enterprise's redemption decision is affected by the previous period's redemption quantity and the actual sales quantity. The conclusions of this paper not only provide suggestions for SMEs to make inventory pledge financing decisions but also provide references for financial institutions to formulate relevant financing rules.
{"title":"Supply chain financing decision with installment redemption under dynamic pledge","authors":"Xin Cai, Dongdong Li, Jiaojie Chu, Xueyong Liu","doi":"10.1002/mde.4373","DOIUrl":"https://doi.org/10.1002/mde.4373","url":null,"abstract":"In this paper, the dynamic pledge financing decision problem of a borrowing enterprise is studied in the context of a supply chain finance system that includes a financial institution and a borrowing enterprise (small and medium‐sized enterprises [SMEs]). The optimal Inventory pledge, as well as redemption decisions of the borrowing enterprise, are analyzed under the consideration of constant and changing redemption prices, respectively, and the effects of the main parameters on the optimal decisions are discussed. It found that (1) when the redemption price is constant, the borrowing enterprise's optimal quantity of inventory pledge increases as the initial inventory quantity increases or the redemption price decreases; (2) when the redemption price varies, the borrowing enterprise's optimal inventory redemption quantity decreases as the initial inventory pledge and the redemption price increase; and (3) the borrowing enterprise's redemption decision is affected by the previous period's redemption quantity and the actual sales quantity. The conclusions of this paper not only provide suggestions for SMEs to make inventory pledge financing decisions but also provide references for financial institutions to formulate relevant financing rules.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191061","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The present study aims to provide valuable insights into the impact of research and development (R&D) spending on firm value, considering both short‐term and long‐term dynamics while also considering any potential asymmetries in this relationship. This work is conducted using a sample of 185 listed Indian manufacturing firms over a time span of 18 years, that is, from 2006 to 2023. Both symmetric and asymmetric autoregressive distributed lag (ARDL) are employed on a final sample of 3330 firm‐year observations to unravel the intricacies of the aforementioned relationship. Based on the empirical findings from the symmetric ARDL model, it is revealed that R&D spending positively impacts the value of firms in the long run while showing no significant effect in the short run. On the contrary, the results from the asymmetric ARDL model present interesting insights. In the short run, positive (negative) changes in R&D spending appear to reduce (increase) the value of firms. However, in the long run, positive (negative) changes tend to increase (reduce) the value of companies. The key differentiator of the study is the identification of the asymmetrical impact of R&D spending on firm value. The paper argues that while R&D spending does influence firm value, the relationship between them is not inherently symmetrical. In particular, the impact of R&D spending changes from being statistically insignificant when using symmetric ARDL estimation to becoming significant when applying asymmetrical estimation methods. The findings remain largely consistent across different subsamples and alternative measurements of variables.
{"title":"Exploring asymmetric dynamics of R&D spending and firm value nexus: Insights from panel autoregressive distributed lag analysis","authors":"Navjot Kaur, Balwinder Singh","doi":"10.1002/mde.4362","DOIUrl":"https://doi.org/10.1002/mde.4362","url":null,"abstract":"The present study aims to provide valuable insights into the impact of research and development (R&D) spending on firm value, considering both short‐term and long‐term dynamics while also considering any potential asymmetries in this relationship. This work is conducted using a sample of 185 listed Indian manufacturing firms over a time span of 18 years, that is, from 2006 to 2023. Both symmetric and asymmetric autoregressive distributed lag (ARDL) are employed on a final sample of 3330 firm‐year observations to unravel the intricacies of the aforementioned relationship. Based on the empirical findings from the symmetric ARDL model, it is revealed that R&D spending positively impacts the value of firms in the long run while showing no significant effect in the short run. On the contrary, the results from the asymmetric ARDL model present interesting insights. In the short run, positive (negative) changes in R&D spending appear to reduce (increase) the value of firms. However, in the long run, positive (negative) changes tend to increase (reduce) the value of companies. The key differentiator of the study is the identification of the asymmetrical impact of R&D spending on firm value. The paper argues that while R&D spending does influence firm value, the relationship between them is not inherently symmetrical. In particular, the impact of R&D spending changes from being statistically insignificant when using symmetric ARDL estimation to becoming significant when applying asymmetrical estimation methods. The findings remain largely consistent across different subsamples and alternative measurements of variables.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
It develops a differential game model of a fuel car supply chain in which consumers' low fuel consumption, green preferences, and government subsidies promote manufacturers' investment in fuel‐consumption reduction technologies (FCRT); the price, the fuel consumption per mile, and the retailer's marketing efforts jointly determine the demand for the product. There are four game scenarios constituted by ex ante or ex post government that subsidizes and shares or does not share marketing costs. The results show that ex ante and ex post subsidies can incentivize investment in FCRT. However, the preferable subsidy model depends on the parameter values; the manufacturer‐led marketing cost‐sharing contract results in supply chain coordination.
{"title":"Investment in fuel‐consumption reduction technologies in a vehicle supply chain under different subsidy policies: A dynamic framework","authors":"Yongxi Yi, Meng Zhang, Yuqiong Li, Chunyan Fu","doi":"10.1002/mde.4365","DOIUrl":"https://doi.org/10.1002/mde.4365","url":null,"abstract":"It develops a differential game model of a fuel car supply chain in which consumers' low fuel consumption, green preferences, and government subsidies promote manufacturers' investment in fuel‐consumption reduction technologies (FCRT); the price, the fuel consumption per mile, and the retailer's marketing efforts jointly determine the demand for the product. There are four game scenarios constituted by ex ante or ex post government that subsidizes and shares or does not share marketing costs. The results show that ex ante and ex post subsidies can incentivize investment in FCRT. However, the preferable subsidy model depends on the parameter values; the manufacturer‐led marketing cost‐sharing contract results in supply chain coordination.","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142191060","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}