Application of adversarial risk analysis model in pricing strategies with remanufacturing

Purpose: Purpose: This paper mainly focus on the application of adversarial risk analysis (ARA) in pricing strategy with remanufacturing. We hope to obtain more realistic results than classical model. Moreover, we also wish that our research improve the development of ARA in pricing strategy of manufacturing or remanufacturing. Approach: In order to gain more actual research, combining adversarial risk analysis, we explore the pricing strategy with remanufacturing based on Stackelberg model. Especially, we build OEM’s 1-order ARA model and further study on manufacturers and remanufacturers’ pricing strategy. Findings: We find the OEM’s 1-order ARA model for the OEM’s product cost C. Besides, we get according manufacturers and remanufacturers’ pricing strategies. Besides, the pricing strategies based on 1-order ARA model have advantage over than the classical model regardless of OEMs and remanufacturers. Research implications: The research on application of ARA imply that we can get more actual results with this kind of modern risk analysis method and ARA can be extensively in pricing strategies of supply chain. Value: Our research improves the application of ARA in remanufacturing industry. Meanwhile, inspired by this analysis, we can also create different ARA models for different parameters. Furthermore, some results and analysis methods can be applied to other pricing strategies of supply chain.Peer Reviewe

One-period pricing strategy of 'money doctors' under cumulative prospect theory

We focus on the interaction between investors and portfolio managers, employing a cumulative prospect theory approach to the investor's preferences. ln an original way, we model trust in the manager and the relative anxiety about investing in a risky asset. Moreover, we investigate how tmst and anxiety affect the manager's fee and the portfolios of cumulative prospect theory investors. The novelty of our contribution relative to previous work is that we rely on cumulative prospect theory(CPT) rather than the classical mean-variance framework. Moreover, our research differs from traditional CPT work through an improved value function that accurately characterizes the reduction in anxiety suffered by the CPT investors from bearing risk when assisted by the portfolio managers' help relative to when they lack such assistance. Our results differ in several respects from those obtained when using on classical preferences. First, the optimal fees are not symmetric. Specially, the dominant managers obtain higher fees than subordinate managers regardless of changes in risk of risky assets (a risky asset) and changes in the dispersion of trust in the population. Another difference is that these fees are not proportional to expected returns. ln particular, the optimal fees increase nonlinearly as risk of risky assets (a risky asset) increases and the dispersion of trust in the population increases.info:eu-repo/semantics/publishedVersio

Different subsidies’ impact on equilibrium decision-making of closed-loop supply chain

Purpose: An electronic product recycling not only needs the waste treatment company, but also involves recycler and remanufacturer. It is significance for increasing subsidy modes and promoting waste recycling to research the effect of government subsidies for recycler and remanufacturer on the equilibrium of closed-loop supply chain. Design/methodology/approach: In view of service competition, we build a Stackelberg model which contains an original manufacturer, a recycler and remanufacturer and further obtain the equilibrium decision of closed-loop supply chain. Based on this strategy model, we analyze how two different subsidies to utilization rate of raw materials, the service level and the demand of product affect on the terminal decision. Findings: We compared the two different subsidy ways in closed-loop supply chain. Subsidy to utilization rate of raw materials has no effect on the whole market demand for electronic product; and subsidy on utilization rate of raw materials has no effect on the whole market demand for electronic product. Research implications: Under the conditions in which government can observe the information of raw material utility and remanufacturing service level, if government decides to expand the market size, it could subsidize remanufacturer for different service level; Under the conditions in which government can observe the information of raw material utility and remanufacturing service level, if government want to improve utilization rate of raw materials, stimulate sustainable development of industries of electronic product, it can subsidizes recycler based on different utilization rate of raw materials. Originality/value: We analyzed the closed-loop supply chain equilibrium, compared the effects on it under different subsidy mechanism and offered some advises in order to provide scientific support to promote electronic products recycling.Peer Reviewe

Pricing Strategies in the Remanufacturing Market for the Uncertain Market Size in the Second Period

Our main endeavor is to investigate the effect of the uncertain market size in the second period on the pricing strategies in the remanufacturing market. Observing the previous research, we find that the market size in the second period is always supposed to be certain. However, there is substantial empirical and experimental evidence that the market size in reality deviates from this assumption. In fact, though the market size in the first period is definitized, it is difficult to confirm the change of the market scale in the second period, since this change is affected by all kinds of elements, such as the awareness of environmental protection, some consumers’ psychological factors, and the related governments’ policies. Hence, we pay attention to the case in which the change rate of the market scale in the second period is random variable. We suppose that this rate satisfies uniform distribution on [0,2]. Underlying this assumption, we further provide an insight into the game-playing relationship between original equipment manufacturers (OEMs) and remanufacturers. Moreover, we delicately and subtly incorporate the game theory, stochastic analysis, adversarial risk analysis (ARA), and optimization methods into the pricing strategies in the remanufacturing market. Last but not least, considerable efforts and attempts have been made to subtly test the sensitivity of an optimal solution to the different parameters

Multi-period Investment Strategies with Transaction Costs Under Cumulative Prospect Theory

This paper focuses on optimal investment strategies under cumulative prospect theory (CPT). Considering transaction costs, we investigate CPT investors multi-period optimal portfolios. Our main contributions relative to previous work are expanding a single-period optimization problem to a multi-period optimization problem and investigating the impact of transaction costs on optimal portfolio selections. In a numerical analysis that applied original data on four stocks from the NASDAQ, we examine the effects of different risks on the optimal portfolio. Moreover, in contrast with the results without transaction costs, we come to conclusion that the optimal strategy with transaction costs is less sensitive to risk

Decision-Making Based on Consumers’ Perceived Value in Different Remanufacturing Modes

We investigate how the diversity of consumers’ perceived value in different remanufacturing modes affects remanufacturing decision-making. We establish a two-stage optimal decision-making model of original equipment manufacturer (OEM) remanufacturing and a noncooperative game model of third party remanufacturer (TPR) remanufacturing and then analyze the optimal decisions of OEM and TPR. Comparing the effects of consumers’ perceived value on remanufacturing decision-making in different modes, we find that when OEM remanufactures products, consumers’ perceived value has a negative effect on new products’ price and quantity and has a positive effect on remanufactured products’ quantity and when TPR remanufactures products, consumers’ perceived value has a positive effect on new products price and quantity and has a negative effect on remanufactured products’ quantity. Compared with OEM remanufacturing, TPR remanufacturing can raise the profits of OEM and whole closed-loop supply chain, but it will lower the quantity of remanufacturing products

How Does a Portfolio Manager Balance the Relationship Between Money Management and Investment?

A portfolio manager can obtain profits from charging management fees to individual investors for helping them to invest. Moreover, as an insider, the portfolio manager can obtain proportional brokerage charges on the return on investment by investing the individual investors’ money that he manages. How does the manager balance money management and investment to maximize his total profits? This is the problem that we study in this article. We model the relationship between money management fees and the amount invested. In addition, we investigate how to determine money management fees and the amount of investment needed to maximize the manager’s total profits, including from management fees and brokerage charges

The Optimal Insurance Policy for the General Fixed Cost of Handling an Indemnity under Rank-Dependent Expected Utility

Based on Bernard et al.’s research, we focus on the Pareto optimal insurance design with the insured’s Rank-Dependent Expected Utility (RDEU). Compared with their previous work, our novelties are the more general fixed cost function of the insurer and the discussion of adverse selection and moral hazard. In particular, Bernard et al. only consider the case in which the fixed cost function of handling an indemnity is the linear function. However, the fixed cost function is not just linear functions in real insurance market. So, we explore the more general fixed cost function including both the linear and nonlinear functions. On the other hand, we consider adverse selection and moral hazard which are involved by Bernard et al. Leading adverse selection and moral hazard into our research makes our results more practical and meaningful. Moreover, we provide an insight into the sensitivity of an optimal solution for the insured’s initial wealth and the parameters related to the fixed cost function of handling an indemnity. We further compare the two different utility functions of the insured in terms of influence of optimal policy analysis

Almost Everywhere Convergence of Riesz Means Related to Schrödinger Operator with Constant Magnetic Fields

We study almost everywhere convergence for Riesz means related to Schrödinger operator with constant magnetic fields. Through researching the weighted norm estimates for the maximal operator with power-weight functions, we obtain the desired result, which is similar to the work given by Anthony Carbery, Jose L. Rubio de Francia, and Luis Vega