Pub Date : 2024-11-23DOI: 10.1007/s10479-024-06358-x
Bin Cao, Chao Xu
The aircraft landing problem (ALP) is an important issue of assigning an airport’s runways to the arrival aircrafts as well as to schedule the landing time of these aircrafts in practice. A large number of the extant studies have tried to address such a practical problem with using various algorithms for one or more runways. For a static single-runway of the ALP, this paper proposes a new approach to develop an alternative powerful algorithm. For a given sequence of planes, we develop a faster algorithm for solving the ALP with the running time (O(n log n)), where n is the number of aircrafts in the schedule. Alternatively, we reduce the proposed problem of minimizing the total cost by determining the landing times for a given landing sequence into a min-cost flow problem. We conduct a set of experimental studies to compare the performance of our near-linear time algorithm to the quadratic time algorithm whose time complexity is (O(n^2)), for computing the optimal landing times. The computational results show that the proposed heuristic based on our algorithm could be much faster than both such quadratic time algorithm and the one using linear programming.
{"title":"A near-linear time algorithm and a min-cost flow approach for determining the optimal landing times of a fixed sequence of planes","authors":"Bin Cao, Chao Xu","doi":"10.1007/s10479-024-06358-x","DOIUrl":"10.1007/s10479-024-06358-x","url":null,"abstract":"<div><p>The aircraft landing problem (ALP) is an important issue of assigning an airport’s runways to the arrival aircrafts as well as to schedule the landing time of these aircrafts in practice. A large number of the extant studies have tried to address such a practical problem with using various algorithms for one or more runways. For a static single-runway of the ALP, this paper proposes a new approach to develop an alternative powerful algorithm. For a given sequence of planes, we develop a faster algorithm for solving the ALP with the running time <span>(O(n log n))</span>, where <i>n</i> is the number of aircrafts in the schedule. Alternatively, we reduce the proposed problem of minimizing the total cost by determining the landing times for a given landing sequence into a min-cost flow problem. We conduct a set of experimental studies to compare the performance of our near-linear time algorithm to the quadratic time algorithm whose time complexity is <span>(O(n^2))</span>, for computing the optimal landing times. The computational results show that the proposed heuristic based on our algorithm could be much faster than both such quadratic time algorithm and the one using linear programming.</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"344 1","pages":"479 - 498"},"PeriodicalIF":4.4,"publicationDate":"2024-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142912890","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-21DOI: 10.1007/s10479-024-06343-4
Mehrdad Maghsoudi, Sajjad Shokouhyar, Nafiseh Sanaee, Sina Shokoohyar
This study adopts a multidimensional approach to examining sustainability reporting practices among notebook manufacturers, integrating traditional corporate sustainability reports with social media data from platforms like Twitter, Facebook, and Reddit. Using advanced machine learning techniques, including multi-label classification and BERT-based sentiment analysis, the research highlights the key environmental, social, and economic dimensions that consumers prioritize. The findings reveal a significant misalignment between consumer concerns, reflected in social media discourse, and the focus of corporate sustainability reports. While companies emphasize environmental impacts and supply chain management, consumers prioritize product reliability, community obligations, and educational initiatives. This gap indicates a need for companies to realign their sustainability strategies to better meet consumer expectations, emphasizing trust-building, community engagement, and educational efforts. Despite these differences, the study also identifies shared concerns between consumers and producers, such as environmental impacts, supply chain sustainability, and transparency in sustainability claims. Based on these insights, the study recommends fostering transparent communication, engaging in inclusive dialogue, and committing to accountable actions across all sustainability dimensions. By aligning corporate reporting with consumer expectations, this research provides guidance to help companies advance towards a circular economy and enhance Extended Producer Responsibility (EPR) in the electronics industry, ultimately benefiting both companies and consumers in the pursuit of a more sustainable future.
{"title":"Enhancing sustainability reporting practices in the notebook manufacturing industry: a multifaceted analysis integrating traditional reports and social media data","authors":"Mehrdad Maghsoudi, Sajjad Shokouhyar, Nafiseh Sanaee, Sina Shokoohyar","doi":"10.1007/s10479-024-06343-4","DOIUrl":"10.1007/s10479-024-06343-4","url":null,"abstract":"<div><p>This study adopts a multidimensional approach to examining sustainability reporting practices among notebook manufacturers, integrating traditional corporate sustainability reports with social media data from platforms like Twitter, Facebook, and Reddit. Using advanced machine learning techniques, including multi-label classification and BERT-based sentiment analysis, the research highlights the key environmental, social, and economic dimensions that consumers prioritize. The findings reveal a significant misalignment between consumer concerns, reflected in social media discourse, and the focus of corporate sustainability reports. While companies emphasize environmental impacts and supply chain management, consumers prioritize product reliability, community obligations, and educational initiatives. This gap indicates a need for companies to realign their sustainability strategies to better meet consumer expectations, emphasizing trust-building, community engagement, and educational efforts. Despite these differences, the study also identifies shared concerns between consumers and producers, such as environmental impacts, supply chain sustainability, and transparency in sustainability claims. Based on these insights, the study recommends fostering transparent communication, engaging in inclusive dialogue, and committing to accountable actions across all sustainability dimensions. By aligning corporate reporting with consumer expectations, this research provides guidance to help companies advance towards a circular economy and enhance Extended Producer Responsibility (EPR) in the electronics industry, ultimately benefiting both companies and consumers in the pursuit of a more sustainable future.</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"345 1","pages":"317 - 349"},"PeriodicalIF":4.4,"publicationDate":"2024-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://link.springer.com/content/pdf/10.1007/s10479-024-06343-4.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143108994","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-13DOI: 10.1007/s10479-024-06392-9
Zhe Yang
Our paper develops the work of cooperative oligopoly TU markets. Inspired by Zhao (Int J Game Theory 28(1):25–34, 1999) and Zhao (Games Econ Behav 27(1):153–168, 1999), our paper investigates the TU stable profit allocations of cooperative oligopoly TU markets with countably many firms. We first show that the set of (alpha -)TU stable profit allocations coincides with the set of (beta -)TU stable profit allocations. Furthermore, under some regular conditions, we shall prove the existence theorem of (alpha -)TU stable profit allocations for oligopoly TU markets with countably many firms.
{"title":"The cooperative analysis of oligopoly TU markets with infinitely many firms","authors":"Zhe Yang","doi":"10.1007/s10479-024-06392-9","DOIUrl":"10.1007/s10479-024-06392-9","url":null,"abstract":"<div><p>Our paper develops the work of cooperative oligopoly TU markets. Inspired by Zhao (Int J Game Theory 28(1):25–34, 1999) and Zhao (Games Econ Behav 27(1):153–168, 1999), our paper investigates the TU stable profit allocations of cooperative oligopoly TU markets with countably many firms. We first show that the set of <span>(alpha -)</span>TU stable profit allocations coincides with the set of <span>(beta -)</span>TU stable profit allocations. Furthermore, under some regular conditions, we shall prove the existence theorem of <span>(alpha -)</span>TU stable profit allocations for oligopoly TU markets with countably many firms.</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"345 1","pages":"517 - 532"},"PeriodicalIF":4.4,"publicationDate":"2024-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143108547","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-12DOI: 10.1007/s10479-024-06278-w
Khaled Belahcène, Vincent Mousseau, Wassila Ouerdane, Marc Pirlot, Olivier Sobrie
Multiple criteria sorting methods assign objects into ordered categories while objects are characterized by a vector of n attributes values. Categories are ordered, and the assignment of the object is monotonic w.r.t. to some underlying order on the attributes scales (criteria). Our goal is to offer a survey of the literature on multiple criteria sorting methods, since the origins, in the 1980’s, focusing on the underlying models. In the first part of the paper, we start by recalling two main models, one based on additive value functions (UTADIS) and the other one an outranking relation (Electre Tri). Then we draw a (structured) picture of multiple criteria sorting models and the methods designed for eliciting their parameters or learning them based on assignment examples. In a second part of the paper, we attempt to provide a theoretical view of the field and position some existing models within it. We then discuss issues related to imperfect or insufficient information.
多重标准排序法将对象分配到有序的类别中,而对象的特征是由 n 个属性值组成的向量。类别是有序的,对象的分配与属性标尺(标准)上的某些基本顺序是单调的。我们的目标是对 20 世纪 80 年代以来有关多重标准排序方法的文献进行梳理,重点关注基本模型。在本文的第一部分,我们首先回顾了两个主要模型,一个是基于加值函数的模型(UTADIS),另一个是基于排序关系的模型(Electre Tri)。然后,我们(有条理地)描绘了多重标准排序模型,以及根据赋值示例激发参数或学习参数的方法。在本文的第二部分,我们试图提供该领域的理论观点,并对其中的一些现有模型进行定位。然后,我们将讨论与信息不完善或不充分有关的问题。
{"title":"A guided tour of multiple criteria sorting models and methods","authors":"Khaled Belahcène, Vincent Mousseau, Wassila Ouerdane, Marc Pirlot, Olivier Sobrie","doi":"10.1007/s10479-024-06278-w","DOIUrl":"10.1007/s10479-024-06278-w","url":null,"abstract":"<div><p>Multiple criteria sorting methods assign objects into ordered categories while objects are characterized by a vector of <i>n</i> attributes values. Categories are ordered, and the assignment of the object is monotonic w.r.t. to some underlying order on the attributes scales (criteria). Our goal is to offer a survey of the literature on multiple criteria sorting methods, since the origins, in the 1980’s, focusing on the underlying models. In the first part of the paper, we start by recalling two main models, one based on additive value functions (UTADIS) and the other one an outranking relation (<span>Electre Tri</span>). Then we draw a (structured) picture of multiple criteria sorting models and the methods designed for eliciting their parameters or learning them based on assignment examples. In a second part of the paper, we attempt to provide a theoretical view of the field and position some existing models within it. We then discuss issues related to imperfect or insufficient information.\u0000</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"343 2021-2023)","pages":"785 - 845"},"PeriodicalIF":4.4,"publicationDate":"2024-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142826235","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-08DOI: 10.1007/s10479-024-06374-x
Luigi D’Ambra, Rosella Castellano, Pierpaolo D’Urso, Sandra De Iaco
{"title":"Statistical methods for decision making in public sector: from the quality assessment to the citizen satisfaction","authors":"Luigi D’Ambra, Rosella Castellano, Pierpaolo D’Urso, Sandra De Iaco","doi":"10.1007/s10479-024-06374-x","DOIUrl":"10.1007/s10479-024-06374-x","url":null,"abstract":"","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"342 3","pages":"1369 - 1377"},"PeriodicalIF":4.4,"publicationDate":"2024-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142714439","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-07DOI: 10.1007/s10479-024-06367-w
Bruce I. Jacobs, Kenneth N. Levy
{"title":"Correction: Portfolio insurance, portfolio theory, market simulation, and risks of portfolio leverage","authors":"Bruce I. Jacobs, Kenneth N. Levy","doi":"10.1007/s10479-024-06367-w","DOIUrl":"10.1007/s10479-024-06367-w","url":null,"abstract":"","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"344 1","pages":"563 - 563"},"PeriodicalIF":4.4,"publicationDate":"2024-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142912767","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-01DOI: 10.1007/s10479-024-06366-x
Madjid Tavana, Tobias Schoenherr, Yang Cheng, Ajay Kumar, Eric W. T. Ngai
{"title":"Digital operations research models for intelligent machines (industry 4.0) and man-machine (industry 5.0) systems","authors":"Madjid Tavana, Tobias Schoenherr, Yang Cheng, Ajay Kumar, Eric W. T. Ngai","doi":"10.1007/s10479-024-06366-x","DOIUrl":"10.1007/s10479-024-06366-x","url":null,"abstract":"","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"342 2","pages":"1041 - 1047"},"PeriodicalIF":4.4,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142600531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-30DOI: 10.1007/s10479-024-06312-x
Anastasia Cozarenco, Ariane Szafarz, Mike Tsionas
We use structural modeling to address the allocation process of a microcredit provider granting loans to a heterogeneous pool of applicants. Our theoretical model accounts for technology, risk preferences, and information asymmetry. We test the model with a hand-collected database that includes detailed information on the applicants of a microcredit institution funding European micro-enterprises. Non-parametric Bayesian methodology is used to unpack between-group differences in approval probabilities associated with gender and country of origin and identify (demand-side differences), while differences in unexplained approval probabilities would suggest supply-side biases. The empirical analysis shows that applicants coming from outside of the European Union tend to be more productive than EU-born citizens. They also enjoy a higher approval probability, except for applicants from Latin America, which appear to be riskier borrowers. This result suggests that the microcredit provider treats immigrants fairly. By contrast, the higher productivity and the lower risk of female entrepreneurial projects is only partially compensated by easier access to credit.
{"title":"Women, immigrants, and microcredit in Europe: a Bayesian approach","authors":"Anastasia Cozarenco, Ariane Szafarz, Mike Tsionas","doi":"10.1007/s10479-024-06312-x","DOIUrl":"10.1007/s10479-024-06312-x","url":null,"abstract":"<div><p>We use structural modeling to address the allocation process of a microcredit provider granting loans to a heterogeneous pool of applicants. Our theoretical model accounts for technology, risk preferences, and information asymmetry. We test the model with a hand-collected database that includes detailed information on the applicants of a microcredit institution funding European micro-enterprises. Non-parametric Bayesian methodology is used to unpack between-group differences in approval probabilities associated with gender and country of origin and identify (demand-side differences), while differences in unexplained approval probabilities would suggest supply-side biases. The empirical analysis shows that applicants coming from outside of the European Union tend to be more productive than EU-born citizens. They also enjoy a higher approval probability, except for applicants from Latin America, which appear to be riskier borrowers. This result suggests that the microcredit provider treats immigrants fairly. By contrast, the higher productivity and the lower risk of female entrepreneurial projects is only partially compensated by easier access to credit.</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"344 1","pages":"103 - 134"},"PeriodicalIF":4.4,"publicationDate":"2024-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142912747","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-30DOI: 10.1007/s10479-024-06282-0
Cyrille Vessaire, Pierre Carpentier, Jean-Philippe Chancelier, Michel De Lara, Alejandro Rodríguez-Martínez
Partially Observed Markov Decision Processes (Pomdp) share the structure of Markov Decision Processs (Mdp) — with stages, states, actions, probability transitions, rewards — but for the notion of solutions. In a Pomdp, observation mappings provide partial and/or imperfect knowledge of the state, and a policy maps observations (and not states like in a Mdp) towards actions. Theroretically, a Pomdp can be solved by Dynamic Programming (DP), but with an information state made of probability distributions over the original state, hence DP suffers from the curse of dimensionality, even in the finite case. This is why, authors like (Littman, M. L. 1996). Algorithms for Sequential Decision Making. PhD thesis, Brown University) and (Bonet, B. 2009). Deterministic POMDPs revisited. In Proceedings of the Twenty-Fifth Conference on Uncertainty in Artificial Intelligence, UAI ’09 (pp. 59-66). Arlington, Virginia, USA. AUAI Press) have studied the subclass of so-called Deterministic Partially Observed Markov Decision Processes (Det-Pomdp), where transitions and observations mappings are deterministic. In this paper, we improve on Littman’s complexity bounds. We then introduce and study a more restricted class, Separated Det-Pomdps, and give some new complexity bounds for this class.
部分可观察马尔可夫决策过程(Pomdp)共享马尔可夫决策过程(Mdp)的结构——有阶段、状态、行动、概率转移、奖励——但对于解决方案的概念。在Pomdp中,观察映射提供了状态的部分和/或不完善的知识,策略将观察(而不是Mdp中的状态)映射到操作。理论上,动态规划(DP)可以解决Pomdp问题,但其信息状态是由原始状态上的概率分布构成的,因此即使在有限情况下,动态规划也会受到维数诅咒的影响。这就是为什么,作者喜欢(Littman, m.l. 1996)。顺序决策算法。博士论文,布朗大学)和(Bonet, B. 2009)。重新审视确定性的pomdp。第25届人工智能不确定性会议论文集,UAI ' 09(第59-66页)。阿灵顿,弗吉尼亚州,美国。AUAI出版社)研究了所谓的确定性部分可观察马尔可夫决策过程(Det-Pomdp)的子类,其中转换和观察映射是确定性的。在本文中,我们改进了Littman的复杂度界。然后,我们引入并研究了一个更受限制的类——分离的dep - pomdps,并给出了该类的一些新的复杂度界限。
{"title":"Complexity Bounds for Deterministic Partially Observed Markov Decision Processes","authors":"Cyrille Vessaire, Pierre Carpentier, Jean-Philippe Chancelier, Michel De Lara, Alejandro Rodríguez-Martínez","doi":"10.1007/s10479-024-06282-0","DOIUrl":"10.1007/s10479-024-06282-0","url":null,"abstract":"<div><p>Partially Observed Markov Decision Processes (<span>Pomdp</span>) share the structure of Markov Decision Processs (<span>Mdp</span>) — with stages, states, actions, probability transitions, rewards — but for the notion of solutions. In a <span>Pomdp</span>, observation mappings provide partial and/or imperfect knowledge of the state, and a policy maps observations (and not states like in a <span>Mdp</span>) towards actions. Theroretically, a <span>Pomdp</span> can be solved by Dynamic Programming (DP), but with an information state made of probability distributions over the original state, hence DP suffers from the curse of dimensionality, even in the finite case. This is why, authors like (Littman, M. L. 1996). Algorithms for Sequential Decision Making. PhD thesis, Brown University) and (Bonet, B. 2009). Deterministic POMDPs revisited. In <i>Proceedings of the Twenty-Fifth Conference on Uncertainty in Artificial Intelligence, UAI ’09</i> (pp. 59-66). Arlington, Virginia, USA. AUAI Press) have studied the subclass of so-called Deterministic Partially Observed Markov Decision Processes (<span>Det-Pomdp</span>), where transitions and observations mappings are deterministic. In this paper, we improve on Littman’s complexity bounds. We then introduce and study a more restricted class, Separated <span>Det-Pomdp</span>s, and give some new complexity bounds for this class.</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"344 1","pages":"345 - 382"},"PeriodicalIF":4.4,"publicationDate":"2024-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142912746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-28DOI: 10.1007/s10479-024-06225-9
Bin Wei, Nengmin Wang, Bin Jiang, Zhengwen He
Environmental regulations have led to firms considering offshoring their production to avoid compliance costs. However, overseas production comes with yield uncertainty. This study examines optimal environmental regulations and firms’ responses under three production scenarios. The government’s objective is to maximize social welfare by selecting the type and intensity of regulatory instruments, while firms seek to optimize profits by adjusting their optimal production quantities. Our analysis finds that price and quantity regulation instruments have similar impacts on social welfare, but firms prefer quantity instruments despite price instruments being more beneficial for consumers. Furthermore, both pollution damage coefficient and yield uncertainty are important factors affecting social welfare and firms’ location choice and there exist win–win situations that benefit the government, firms, and consumers. Additionally, offshoring tends to be more environmentally friendly to the local environment. To further validate the main model, we examine various extensions. Results show that the hybrid instrument does not significantly enhance social welfare, but it does offer flexibility in adjusting firms’ production transfer motivations. Additionally, factors such as positive production and fixed costs, as well as multi-market issues, do not alter the government’s preference for regulatory instruments.
{"title":"Optimal environmental regulation and firms’ location choice under yield uncertainty","authors":"Bin Wei, Nengmin Wang, Bin Jiang, Zhengwen He","doi":"10.1007/s10479-024-06225-9","DOIUrl":"10.1007/s10479-024-06225-9","url":null,"abstract":"<div><p>Environmental regulations have led to firms considering offshoring their production to avoid compliance costs. However, overseas production comes with yield uncertainty. This study examines optimal environmental regulations and firms’ responses under three production scenarios. The government’s objective is to maximize social welfare by selecting the type and intensity of regulatory instruments, while firms seek to optimize profits by adjusting their optimal production quantities. Our analysis finds that price and quantity regulation instruments have similar impacts on social welfare, but firms prefer quantity instruments despite price instruments being more beneficial for consumers. Furthermore, both pollution damage coefficient and yield uncertainty are important factors affecting social welfare and firms’ location choice and there exist win–win situations that benefit the government, firms, and consumers. Additionally, offshoring tends to be more environmentally friendly to the local environment. To further validate the main model, we examine various extensions. Results show that the hybrid instrument does not significantly enhance social welfare, but it does offer flexibility in adjusting firms’ production transfer motivations. Additionally, factors such as positive production and fixed costs, as well as multi-market issues, do not alter the government’s preference for regulatory instruments.</p></div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"344 1","pages":"413 - 456"},"PeriodicalIF":4.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142913067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}