Supervisory Efficiency and Collusion in a Multiple-Agent Hierarchy

We analyze a principal-supervisor-two-agent hierarchy with inefficient supervision. The su-pervisor may collects a wrong signal on each agent’s unobservable effort level. When reportingto the principal, the supervisor can collude with one or both agents to manipulate the signalin exchange for a bribe. In contract design, we identify a new trade-off between the loss fromsupervisor-agent collusion and the risk from inefficient supervision: Although allowing collu-sion makes shirking more attractive to the agents, it brings in a benefit because it can “correct”an incorrect negative signal when the agent has exerted effort. Such collusive supervision savesrisk premiums that the principal has to pay for incentive provision. We characterize the princi-pal’s optimal contract choice among no-supervision, collusion-proof, and collusive-supervisioncontracts. We show that the collusive-supervision contract dominates when the supervisory ef-ficiency is at an intermediate level

Willingness to Pay for Brand Reputation: Lessons from the Volkswagen Diesel Emissions Scandal

In this study, we use the announcement of the Volkswagen emissions scandalon September 18, 2015, as an exogenous shock to measure consumers’ willing-ness to pay (WTP) for brand reputation. Only Volkswagen diesel cars producedin2009-2015were announced as emissions violators. Using eBay car auction data,we estimate the impacts of the scandal on the prices of Volkswagen emissionsnon-violatingcars. Our difference-in-differences estimates show that final bid prices decreased by 14% and 9% in diesel and gasoline car markets, respectively, whichpurely reflected a decline in consumers’ WTP for Volkswagen’s brand reputation.Additionally, the difference in price-drops between the violating and non-violating diesel cars is statistically insignificant. This may be due to the fact that consumers rationally adjust their WTP by expecting compensation which will almost surely be provided by Volkswagen for violating models

Survey of grid resource monitoring and prediction strategies.

This literature focuses on grid resource monitoring and prediction, representative monitoring and prediction systems are analyzed and evaluated, then monitoring and prediction strategies for grid resources are summarized and discussed, recommendations are also given for building monitoring sensors and prediction models. During problem definition, one-step-ahead prediction is extended to multi-step-ahead prediction, which is then modeled with computational intelligence algorithms such as neural network and support vector regression. Numerical simulations are performed on benchmark data sets, while comparative results on accuracy and efficiency indicate that support vector regression models achieve superior performance. Our efforts can be utilized as direction for building online monitoring and prediction system for grid resources

Competition Between Sports Leagues: Theory and Evidence on Rival League Formation in North America

We analyze the formation of rival leagues and deterrence by incumbent leagues in professional team sports, which is one of the least studied forms of competition in sports. We first survey the economic history of professional sport leagues in North America and develop stylized facts about rival league formation. We then develop a game-theoretical model to explain some of these interesting stylized facts, showing that if the bargaining power of the incumbent league is sufficiently small—i.e., less than a certain cutoff—the incumbent should choose expansion to deter the rival league formation; otherwise, it is optimal for the incumbent league to allow a rival league formation and then merge with it, conditional on rival league success. We further show that the incumbent league may pay players relatively high salaries as an alternative way to deter formation by a rival league

Effects of nano-void density, size, and spatial population on thermal conductivity: a case study of GaN crystal

The thermal conductivity of a crystal is sensitive to the presence of surfaces and nanoscale defects. While this opens tremendous opportunities to tailor thermal conductivity, a true "phonon engineering" of nanocrystals for a specific electronic or thermoelectric application can only be achieved when the dependence of thermal conductivity on the defect density, size, and spatial population is understood and quantified. Unfortunately, experimental studies of effects of nanoscale defects are quite challenging. While molecular dynamics simulations are effective in calculating thermal conductivity, the defect density range that can be explored with feasible computing resources is unrealistically high. As a result, previous work has not generated a fully detailed understanding of the dependence of thermal conductivity on nanoscale defects. Using GaN as an example, we have combined physically-motivated analytical model and highly-converged large scale molecular dynamics simulations to study effects of defects on thermal conductivity. An analytical expression for thermal conductivity as a function of void density, size, and population has been derived and corroborated with the model, simulations, and experiments

Effects of Cutoff Functions of Tersoff Potentials on Molecular Dynamics Simulations of Thermal Transport

Past molecular dynamics studies of thermal transport have predominantly used Stillinger-Weber potentials. As materials continuously shrink, their properties increasingly depend on defect and surface effects. Unfortunately, Stillinger-Weber potentials are best used for diamond-cubic-like bulk crystals. They cannot represent the energies of many metastable phases, nor can they accurately predict the energetics of defective and surface regions. To study nanostructured materials, where these regions can dominate thermal transport, the accuracy of Tersoff potentials in representing these structures is more desirable. Based upon an analysis of thermal transport in a GaN system, we demonstrate that the cutoff function of the existing Tersoff potentials may lead to problems in determining the thermal conductivity. To remedy this issue, improved cutoff schemes are proposed and evaluated

PLC and configuration software based supervisory and control system for oil tanks area

Author name used in this publication: K. W. E. ChengVersion of RecordPublishe