Table of Content

28 May 2015, Volume 24 Issue 3 Previous Issue    Next Issue

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Officials Behavior，Information Structure and the Local Protection 2015, 24 (3):  305-313.  doi: F 016 Abstract ( )   With an objective function of local officials, consists of social welfare, political promotion and rent seeking, and using duopoly model with asymmetric participators, we investigate the economic and welfare effects of local protection under different information structure and explain why local protectionism prevails in China. Under complete information, local protection improves local producer’s profits, but reduces the welfare and causes resources misallocation. In contrast, the existence of smuggling under incomplete information changes the equilibrium of the original game and not only local protection improves the utility of local officials but also local social welfare under a suitable punishment level and supervising effort. Therefore, protection isn’t good-for-nothing, proper protection exists due to both theoretical and practical reasons. References | Related Articles

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Contribution of Intellectual Property Protection to the Technological Progresses in China 2015, 24 (3):  314-320.  doi: F 404.3 Abstract ( )   The indicators in Ginart & Park (1997) are adjusted by implementation intensity of the law, and the actual intellectual property rights are estimated for China. Meanwhile, the total R&D stocks formatted by domestic R&D investment and technology purchases are estimated using the perpetual inventory method. By incorporating the actual property rights and the total R&D stocks in the TFP model, we investigate the effect of intellectual property protection on the technological progresses in China through international trade and R&D activity. Two results stand out. First, the elasticity of the total factor productivity with respect to intellectual property rights are between 0.114 and 0.190, indicating that intellectual property rights are positively correlated with the total factor productivity in China. Second, the main channels by which intellectual property rights contribute to technological progresses are the international trade and R&D activities. References | Related Articles

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New Technology Shock, Industry Evolution and Public Policy Choice: the Case of New Energy Vehicle 2015, 24 (3):  321-332.  doi: F 426 Abstract ( )   With growing constraints on resources and environments, strategic emerging industries are regarded as a key to the plan of future industries by governments. With the case of new energy car, we extend the N-W model and history friendly model, and characterize the old and new technology paradigms via product performance, sale price and consumer expenditure, and construct the market selection mechanism with business decision, consumer choice and market competition. Using system simulation, we simulate the car industry evolution process under the new technology shock, and study the support effect of public policy for new energy car companies. The results show that, when traditional cars enter the market first, they can become the market leader with the advantages of product performance and sale price, only a small part of the new energy car companies can survive in the market, but the profit level and market share are very limited; consumer subsidies help reduce the price threshold of new energy car and stimulate the purchase of new energy car in the short term, and the effect of policy is responsive; infrastructure construction through improved consumer satisfaction of subsequent use to expand the scale of demand, although the effect being relatively slow, enhances the competitiveness of new energy car companies fundamentally. References | Related Articles

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Effectiveness of Investment Strategy based-on (α, H): The Evidence from International Investment 2015, 24 (3):  333-341.  doi: F 830.91 Abstract ( )   -based investment strategy is a strategy to maximize expected portfolio return subject to a specified maximum probability of failing to reach a pre-specified threshold return H. This paper investigates the effectiveness of the strategy via a simulation and an empirical analysis using the data of 26 market indexes. The simulation results show that, compared with equally weighted portfolio and minimum variance portfolio strategy, -based strategy can help investors gain higher expected return and Sharpe ratio, and the empirical results confirm that specifically, -based strategy can bring higher expected return for investors and it also can bring higher Sharpe ratio if no-short-selling constraints is imposed. However, the selection of the combination has a significant impact on the portfolio performance of the strategy. References | Related Articles

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The Research of VC Contracts based on the Game Analysis of Venture Capital Firms’ Quitting in Midway 2015, 24 (3):  342-354.  doi: F 830.91 Abstract ( )   From the perspective of entrepreneurial companies, this paper studies the potential behavior that venture capital firms (VC) quit in halfway, which may affect the investment, and analyzes the characteristics of the corresponding incentive venture capital contracts. The results are as follows. Under the pooling equilibrium, the sale price of a company's shares of venture capital firms in the first phase should be equal to the investment amount in the first phase. Under the separating equilibrium, if VC in the first phase chooses not to quit, when investment state in the first phase is not good and liquidation is implemented, VC gets full liquidation value. When VC in the first phase chooses to quit, at the end of the first phase, the total cost of the sale of shares held by VC has the positive relationship with overall investment in the first stage, negatively related with the liquidation value, while new VC which enters into the second stage, whose optimal shareholding ratio is decreasing with the probability of VC’s quitting in halfway in the first stage. VC contracts under the separating equilibrium can change the low efficiency level brought by VC contracts under the pooling equilibrium, the former has the greater preventing role in the risk of investment brought by venture capital firms’ quitting in halfway. References | Related Articles

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Value of Patents in the Development of High Technology Firms: Modelling and Simulation with Real Option Pricing driven by the Jump-Diffusion Process 2015, 24 (3):  355-364.  doi: F 270 Abstract ( )   Based on jump-diffusion option pricing model, and considering the micro-structure of market and the flexible management of the firms, we establish the option pricing model for patents in three typical markets: the monopoly market, the monopolistic competition market, and the perfect competition market, and analyze the value of patents in the monopolistic competition market of optics connection system. According to the order of the patent authorization and dividing the firms into the Leader and the Follower, we discuss their decision-making modes; and differentiating the Leader into the Growing firm and the Mature firm by the firms’ market positions. We then establish the real option pricing models of patents driven by jump-diffusion process with different decision-making structures. Finally, we provide the simulation values of patents using optics connection system industry as an example. References | Related Articles

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Analysis of the Competence of Crowdsourcing Talents using Text Mining 2015, 24 (3):  365-371.  doi: F 272.3 Abstract ( )   Since the talent is involved in blind task competition in crowdsourcing, it is necessary to analyze the competence of talents in crowdsourcing. Meanwhile, there are a lot of online communities where talents can exchange experience. With the massive empirical data, an effective way is urgently needed to obtain the talent competence. Using the experience communication data in an online crowdsourcing community, we adopt the text mining technology to analyze the talent competence in crowdsourcing. To identify the competence from unstructured text in crowdsourcing talents communication communities, we use topic identification method based on text clustering. The sentences in talent exchange text are clustered as different themes, each cluster representing a competence. A keyword-based clustering result representation method is used to analyze each cluster. By analyzing the clustering results, we identify five crowdsourcing talent competences: learning and innovation, service awareness, online social skills, achievement -oriented and competitive spirit. The effectiveness of the method is evaluated by experiments. We finally analyze the reasons of differentiation of crowdsourcing talent competency. References | Related Articles

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Hybrid Recommendation Algorithms based on Symbolic Data and Non-negative Matrix Factorization 2015, 24 (3):  372-378.  doi: TP 391；TP 301 Abstract ( )   The efficiency and accuracy of traditional recommendation algorithms decrease significantly when dealing with massive data. To overcome these disadvantages we propose a hybrid algorithm combining content-based algorithms and user-based collaborative filtering. To better cope with the increasing dimensionality and sparseness of the feature matrix, we construct the user profile by symbolic data and smooth the feature matrix of items with non-negative matrix factorization. The experimental results using the data set of MOVEILENS indicate that the new algorithm is more efficient and accurate compared with traditional user-based collaborative filtering. References | Related Articles

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Bi-objective Robust Project Scheduling based on Intelligent Algorithms 2015, 24 (3):  379-388.  doi: F 224 Abstract ( )   Robust project scheduling, dealing with all sorts of uncertainties in project execution, includes two sides: makespan and plan stability, also called quality robustness and solution robustness. In order to ensure both the completion time and the stability of project plan for cost saving, two robust indicators are proposed based-on STC scattered buffer method, and a bi-objective robust scheduling model is set up. A two-stage intelligent algorithm involving both the simulated annealing and tabu search is proposed to solve the problem. The results show that the proposed algorithm integrates the advantages of the two algorithms, and obtains more reasonable project plans than a single algorithm. The project plans are tested by a simulation experiment, and the results confirm that plans generated by the algorithm are effective and feasible with regard to both the two sides of robustness. References | Related Articles

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On the Determinants and its Influencing Mechanism of Trustworthiness in County-level e-government 2015, 24 (3):  389-396.  doi: G 350.7 Abstract ( )   Based on extensive literature review, we develop three hypotheses concerning motivation and willingness for public participation, perceived service quality and the information quality of civil servants, which influence trustworthiness in e-government. Quantitative methods such as structural equation modeling are used to analyze the determinants and its influencing mechanism of trustworthiness in e-government. The results show that motivation and willingness for public participation has the strongest overall impact on trustworthiness in e-government. The overall impact of quality perception of service, information quality of civil servants on trustworthiness in e-government become weak in turn. Perceived service quality and information quality of civil servants indirectly influence trustworthiness in e-government. References | Related Articles

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Stable Matching with Fairness for Two-sided Agents 2015, 24 (3):  397-404.  doi: F 270；C 934 Abstract ( )   For the one to one two-sided matching problem, a new two-sided matching method based on multiple criteria information of two-sided agents is proposed. Firstly, the concept of stable matching and fair matching in two-sided matching are introduced, and the computing method of two-sided matching agents’ satisfaction is developed. Secondly, a mathematical model of two-sided matching considering stability, fairness and satisfaction is constructed. A multi-objective genetic algorithm is designed to solve the model. An example of students and teachers matching in educational institution is used to illustrate feasibility and validity of the proposed method. References | Related Articles

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Incentives and Monitoring in E-waste Pollution Control at Sources 2015, 24 (3):  405-412.  doi: F 273；F 224.32 Abstract ( )   We study the Incentives and Monitoring of government on electronic products manufacturers using principle-agent theory. We introduce the monitoring cost and penalty, construct an optimal incentive contract, and build a model to maximize the expected revenue for government. By analyzing the potential benefits from electronic products manufacturers and the supervision mechanism of the government department, we find that the preference of green consumption is the driving force for the manufacturers taking part in the activity of electronic wastes pollution control, hence the roles of government in electronic waste source pollution control are to impel and supervise the electronic products manufacturers, and furthermore, to inspire customers adopt green consumption.However, the special attention should be paid to is that government should design appropriate penalty for electronic products manufacturers so to avoid ratcheting effect. References | Related Articles

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Dual Channel Pricing Strategy based-on the Acceptance Difference of Online Channels 2015, 24 (3):  413-420.  doi: F 713 Abstract ( )   Online channel provides a chance for a manufacturer to increase its sales and reduce its costs. Meanwhile, online channel causes the conflict between the manufacturer and the retailer. The core of the conflict is price competition. Based on the acceptance difference of online channels by consumers, we discuss the dual pricing problem after online channel introduction in a system with a single manufacturer and a single retailer. We find that: Online channel helps the retailer reduce retail price and increase sales. When the acceptance rate of online channel is high enough, online channel increases the profit for the manufacturer. The best pricing strategy for the manufacturer is to set a reasonable wholesale price and a direct price to ensure no online sale. When the proportion of consumers with high acceptance of online channel is big, online channel benefits both the manufacturer and retailer if the acceptance rate of online channel is high enough. However, when the proportion of consumers with high acceptance of online channel is low, if online channel increases the manufacturer profit, then it reduces the retailer profit. References | Related Articles

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Organizational Adaptive Learning, Alliance Network Structure and the Evolution of Market with Network Externalities 2015, 24 (3):  421-427.  Abstract ( )   Based on the diffusion of two incompatible technologies, we study the technological evolution in the market with network externalities by analyzing the interaction between organizational adaptive learning and organizational network structure. The simulation results show that: the equilibrium market share of the new technology is determined by two key factors, namely, the characteristics of organizational learning behavior and the strength of local network externalities. When the organizations adopt reinforcement learning, the outcome of market evolution equilibrium is two coexisted technologies; when the organizations take belief-based learning behavior, in case of learning effect is strong and the strength of local network externalities is moderate, market evolves to winner-take-all, or otherwise, the two kinds of technologies coexist. These results are helpful for firms to further understand the internal mechanism and boundary conditions of winner-take-all in markets with network externalities. References | Related Articles

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Insurance Risk Management due to Distrusted Demand 2015, 24 (3):  428-435.  doi: F 272.3 Abstract ( )   We consider a supply chain consisting of a supplier and a manufacturer, which operates on the reported demand from the manufacturer, and there may be a gap between it and supplier’s own demand estimate for deciding production capacity, due to potential distrust. We model this distrust as a random variable and use insurance to mitigate the risk due to the distrust. We then use game theory to rigorously analyze the issue with insurance premium. Numerical examples show that the insurance charge becomes less when the demand order is smaller (and the gap becomes smaller). References | Related Articles

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Hunger Marketing Strategy of Dual-channel Supply Chain with the Demand Affected by Quality and Price 2015, 24 (3):  436-443.  doi: F 272 Abstract ( )   We study the hunger marketing strategy for a supply chain, taking both the quality and pricing into account, where the manufacturer has two sales channels: online and retailing. We analyze the optimal decisions under the two scenarios: centralized decision-making and decentralized decision-making, and discuss how the supply of online channel affects the decision variables and the interactive effects between the decision variables. The results show that, under decentralized decision-making, the retailer’s willingness to join the dual-channel supply chain which implements hunger marketing strategy is not high. The Retailing channel provides the lowest performance-to-price ratio products under decentralized decision-making, and the highest performance-to-price ratio products under the centralized decision-making. Dual-channel supply chain which implements hunger marketing strategy cannot lead to higher profits. However, if the quality sensitivity of the two channels satisfies certain conditions, implementing hunger marketing strategy under centralized decision-making is beneficial for the supply chain. References | Related Articles

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Dynamics of Resources Integration in Regional Inland Transportation System 2015, 24 (3):  444-451.  doi: F 252 Abstract ( )   Resources integration in Regional Inland Transportation System (RITS) is an important way to improve the system efficiency. A nonlinear dynamical model which reflects interactions among resources elements is built, and the stability conditions of the model is analyzed. It is found that there are two important premises before implementing resources integration in RITS. First, the right resources elements should be chosen and secondly, the intensity of resources integration should be appropriate. The results of Caofeidian RITS show that resources integration on railway transport subsystem can make the system stable and two integration measures are suggested, namely, integrating infrastructure resources by constructing local railways and integrating organization resources by establishing transport coordination department. It is also found that if integration measures are first taken in terminals handling subsystem, inappropriate intensity of integration will make Caofeidian RITS unstable. The results provide helpful insights for the research and practice in RITS resources integration. References | Related Articles

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Incentive Contract Design with the Influence of Business Process Modularity in Two Business Processes Outsourcing 2015, 24 (3):  452-456.  doi: F 270 Abstract ( )   Considering the influence of business process modularity in the design of incentive contract may improve its viability thus facilitate BPO success. Using multi-task principal-agent model, we devise, under the situation of two business processes being outsourced to a vendor, the optimal incentive contract considering the influence of business process modularity. The comparative static analysis and numerical analysis show that, as one business process modularity gets higher, the incentive intensity coefficient on the other business process increases; when the level of the vendor’s operational techniques on one business process is high enough, as the modularity of such business process gets higher, the incentive intensity coefficient on such business process gets larger at first and then becomes smaller; otherwise, the incentive intensity coefficient on such business process increases. The uncertainty of the outcomes of each business process lowers both two incentive intensity coefficients. As the level of vendor’s operational technique on one business process gets higher, the incentive intensity coefficient on such business process increases first and then decreases. The influence of business process modularity on the fixed reward is affected by the levels of vendor’s operational techniques and risk aversion. The expected profit of client enterprise is an increasing function of business process modularity and the levels of vendor’s operational techniques and managerial skill, and a decreasing function of vendor’s cost coefficient. References | Related Articles