Commitment Costs Research Articles

A novel robust security constrained unit commitment model considering HVDC regulation

To further improve the robustness and economic efficiency of the conventional security-constrained unit commitment (SCUC) problem when confronting system uncertainties, we propose a novel robust SCUC model considering the prompt and flexible controllability of high voltage direct current (HVDC) in asynchronous interconnected systems. Unlike the conventional method, the proposed model minimizes the total cost of pre-day commitment for the base case and real-time dispatch under extreme uncertainties when guaranteeing the generation units and HVDC can be adjusted adaptively and securely. The robustness and economic efficiency of the model are enhanced by optimizing their trade-off when integrating HVDC regulation. As the method involves unit commitment, short-term dispatch, and power rescheduling, an improved tri-level Benders decomposition algorithm is developed according to the structure of the model to solve this mixed-integer nonlinear programming problem. In computational experiments, the effectiveness of the proposed model was validated in a two-area HVDC interconnected asynchronous system under various uncertainties. Additionally, the superior cooperation between a day-ahead commitment plan and real-time dispatch in the novel SCUC model with HVDC regulation was verified.

Attempts, Successes, and Failures of Distance Learning in the Time of COVID-19

Over 1.7 billion students around the world have had their education disrupted by the spread of the Coronavirus disease worldwide. Schools and universities have not faced this level of disruption since World War II. The COVID-19 pandemic presented a colossal challenge for teachers to urgently and massively adapt all their classes to distance learning in order to maintain educational continuity with the same quality. Even if some teachers and certain classes were ready to face the situation, a large majority had to adapt their teaching and learning in a very short time without training, with insufficient bandwidth, and with little preparation. This unexpected and rapid transition to online learning has led to a multiplication of teachers’ strategies for distance learning in lectures, tutorials, project groups, lab works, and assessments. The purpose of this paper is to present the feedback from students and teachers who participated in the lockdown semester of two different groups of a 5-year program in Chemistry, Environment and Chemical Engineering (100 students) at INSA Toulouse (France). The analysis has highlighted some great successes and some failures in the solutions proposed. Consequently, some guidelines can be given to help us all to learn the lessons of such a singular experience in order to face the unexpected future with more knowledge and more successful distance learning. Teachers have shown very strong resilience during this crisis, at the cost of significant personal commitment. They admit that they have learned more about distance education in two months than in the last 10 years.

Budgeting for federal insurance and retirement programmes: Cash or Accrual

Federal retirement programmes and some federal insurance programmes have long-term effects on the budget. But the federal budget process typically uses cash-based accounting measures that cover a 10-year period, which may be too short to accurately report those programmes’ net budgetary effects over the long term. In contrast, using accrual accounting for such programmes would accelerate the recognition of long-term costs and would display the expected costs of new commitments when they were incurred and thus were most controllable. However, such estimates are less transparent and verifiable than cash-based estimates, involve more uncertainty, and can complicate budget reporting.

THE EFFECT OF ATTITUDES, ORGANIZATIONAL COMMITMENTS, SEVERITY OF CHEATING LEVELS, PERSONAL COST OF REPORTING AND JOB COMMITMENT TO WHISTLEBLOWING INTENTIONS

This study aims to determine the effect of Attitudes, Organizational Commitments, Severity of Cheating Levels, Personal Cost of Reporting and Professional Commitment to whistleblowing intentions. Data collection techniques are questionnaires. The population in this study were all Village government apparatus in Subang Regency and the sample in this study were 200 respondents. Hypothesis testing uses multiple regression analysis. The results of this study indicate: (1) attitude influences the intention to conduct whistleblowing; (2) organizational commitment does not affect the intention to conduct whistleblowing; (3) Fraud severity level influences the intention to conduct whistleblowing; Personal Cost of Reporting has a negative effect on the intention to do a whistleblowing; (5) Job commitment influences the intention to conduct whistleblowing

Big Decisions in Small Business Ecosystems: Stakeholder Priority

In an increasingly competitive environment, engaging with stakeholders is no longer an option but a necessity to ensure short-term and long-term success. This is particularly true in small business, yet little is known about how small business managers make those decisions, often under uncertainty and time pressure. Small businesses operate in networks of interdependent entities (ecosystems) where individuals are known to each other. This supports building of relationships, trust and reputation and removes the separation between 'business' and 'ethics' by promoting a long-term focus. Yet, limited resources and conflicting demands result in a need to prioritise some stakeholder demands. As suggested by Stakeholder Salience, decision makers may prioritise stakeholder claims based on perceived levels of power, legitimacy and urgency. The key decision makers of nine Australian small businesses were asked about their relationships with important stakeholders, how decisions regarding the priority of various stakeholders and their expectations were made and what factors may affect such decisions. Relationships with stakeholders were identified as dynamic and strategic resources, interviewees invested considerable time and effort to build and maintain positive relationships. Consistent with Stakeholder Salience model, decisions were affected by perceptions of stakeholders' level of power, legitimacy and urgency. This research also found that intuitive perceptions about the stakeholder affected the decision-making process, and identified the following additional factors: commitment, dependence and potential exit costs as well as the decision maker's perception of alignment with own values, thereby introducing a moral and ethical consideration that would sometimes take priority over other considerations.

An Optimal Multivariable Constrained Nonlinear (MVCNL) Stochastic Microgrid Planning and Operation Problem With Renewable Penetration

Microgrids (MGs) are promising archetypes for the penetration of renewable energy sources (RES) into the system for reducing carbon footprints. This article presents a cost-based optimization model using a stochastic programming to obtain the optimal size of distributed energy resources including RES. Uncertainties in the solar output and the load demand data are considered using multiple scenarios with random variations, which are based on beta distribution. The objective function is formulated as a cost-based multivariable constrained nonlinear convex programming problem. Other than planning costs, the objective function also includes per day running or operational costs such as unit commitment costs as well as the switching costs associated with the dispatchable units. The overall problem is simulated under MATLAB environment. Quantitative results indicate the impact of operational paradigm along with the planning of an MG in the form of cost analysis with different reliability conditions. An assessment of results in tabular form is presented, which incorporates the optimal sizing of MG under the different system reliability conditions and constraints. Some additional cases pertain to the generation and the load demand scenarios have also been included in the article.

Identification and ranking of factors affecting customer loyalty – a case study: Mehre-e-Eghtesad bank customers

One of the most important changes in the business is changes in the values provided for customers. Customers' satisfaction is not enough for them to remain the same bank's customers and we should also ensure their loyalty in addition to the satisfaction. Therefore the aim of this study is to identify and rank factors affecting customer loyalty of Mehre-e-eghtesad bank. The research population is clients of all the branches of Mehre-e-eghtesad bank. Sample size was estimated by Cochran method and simple random sampling was used. Structural equation modelling includes confirmatory factor analysis and path analysis were used for analysing the data. Conclusions confirmed that all assumptions of the research are true. It was concluded that variables including costs of switching, satisfaction, perceived quality, commitment, trust, credibility, reputation, brand, and physical facilities, quality of service, communication, advertising, e-banking, staff and price have positive impact on the customer loyalty of Mehre-e-eghtesad bank.

Identification and ranking of factors affecting customer loyalty – a case study: Mehre-e-Eghtesad bank customers

One of the most important changes in the business is changes in the values provided for customers. Customers' satisfaction is not enough for them to remain the same bank's customers and we should also ensure their loyalty in addition to the satisfaction. Therefore the aim of this study is to identify and rank factors affecting customer loyalty of Mehre-e-eghtesad bank. The research population is clients of all the branches of Mehre-e-eghtesad bank. Sample size was estimated by Cochran method and simple random sampling was used. Structural equation modelling includes confirmatory factor analysis and path analysis were used for analysing the data. Conclusions confirmed that all assumptions of the research are true. It was concluded that variables including costs of switching, satisfaction, perceived quality, commitment, trust, credibility, reputation, brand, and physical facilities, quality of service, communication, advertising, e-banking, staff and price have positive impact on the customer loyalty of Mehre-e-eghtesad bank.

P018 Understanding Patients’ Perceptions of Fecal Microbiota Transplant

BACKGROUND: Fecal microbiota transplantation (FMT) is becoming popular treatment option for a variety of diseases, including ulcerative colitis (UC). Despite increasing evidence for its role as a therapeutic, currently available literature is limited in its scope to assess firsthand patient experiences. We explored perceptions, attitudes, and experiences of patients who chose to pursue FMT and patients who declined FMT in favor of conventional medications. METHODS: This study used a qualitative descriptive design, embedded within a larger randomized controlled trial (RCT) of adult patients diagnosed with UC enrolled in accessing efficacy of FMT (NCT02606032). Patients were invited to participate in face-to-face semi-structured interviews before and after treatment. Perceptions about FMT were compared to patients who were eligible to participate in the RCT but chose to pursue conventional medications. Interviews were audiotaped, transcribed, and analyzed using thematic analysis. RESULTS: We interviewed 9 patients who underwent FMT treatment and 8 patients who declined FMT treatment. The main themes across the two groups at baseline included: (i) knowledge of FMT, (ii) attitudes around FMT, and (iii) factors contributing to the decision to pursue FMT. Post-FMT, prominent themes included: (i) experiences with FMT, and (ii) perceived response to treatment. We uncovered a poor general understanding of FMT across both cohorts of patients, suggesting a need for improved patient education. Compared to FMT patients, non-FMT patients were less likely to have heard or researched FMT in the past due to feelings of “it just sounds weird”. Similar hesitations with FMT were felt across both groups, including fear of transmissible infections, cost of commitment to an experimental therapy, and inherent aversion to stool. Expectations of FMT varied between the two groups, with feelings of hope in the treatment and a sense of “last resort” driving patients to pursue FMT. In contrast, the non-FMT cohort felt a need to further research FMT and explore other treatment options before committing to FMT and were more likely to minimise their disease activity as “not at the severe end”. This demonstrates that FMT may be perceived as a “last ditch effort” for many patients. Despite initial aversion, the non-FMT patients demonstrated interest in learning more about FMT and expressed having felt more open to the possibility of pursuing FMT in the future. Those that underwent FMT viewed FMT as a natural treatment and were more eager to explore alternative medicine in comparison to the non-FMT cohort who expressed “I’m not really into the weird stuff”. Post-FMT, some patients expressed delight in the perceived change in their symptoms, voicing an improved quality of life, decreased bowel urgency, and less concerns with soiling accidents. CONCLUSION(S): We explored perceptions and experiences with FMT in UC patients who chose to pursue FMT to patients who declined FMT for conventional treatments. While many of the pre-FMT perceptions are comparable across the two groups, important motivating factors in favor of FMT appears to be a perception of naturality and a last resort option. These results suggest that with improved education, FMT may pose an acceptable and tolerable treatment options for patients with UC.

Cross-sector collaboration in times of crisis: findings from a study of the Funing tornado in China

ABSTRACTThe recent occurrence of several large-scale crises, such as the Wenchuan and Yaan earthquakes, the Gansu mudslides, the Tianjin port blast, and the Funing tornado, has led decision makers in China to increasingly recognise the need to engage non-government organizations (NGOs) in responding to crises. In this study, we establish a framework to analyse collaboration between government and NGOs during crises. This framework consists of four levels for cross-sector collaboration, and six conditions explaining them. The framework is used to analyse a case study on collaboration between local government and NGOs during the Funing tornado. Collaboration occurred at the information sharing and action coordination levels. We conclude the formal collaboration between government and NGOs in this case was still limited and it was not based on negotiations and interactions. Instead, it was essentially hierarchical and control-oriented. This type of collaboration might have the advantage of responding to crises in an effective way, but it comes at the cost of trust, commitment and reciprocity.

Elections, Heterogeneity of Central Bankers and Inflationary Pressure: The case for staggered terms for the president and the central banker

Abstract This paper analyzes a signaling model of monetary policy when inflation targets are not set by the monetary authority. The most important implication of the model’s solution is that a higher ex-ante dispersion in central bankers’ preferences, referred to as heterogeneity in policy orientation, increases the signaling cost of commitment to inflation targets. The model allows for a comparison of two distinct institutional arrangements regarding the tenure in office of the central banker and the head of government. We find that staggered terms yield superior equilibria when opportunistic political business cycles can arise from presidential elections. This is a consequence of a reduction of information asymmetry about monetary policy, and gives theoretic support to the observed practice of staggered terms among independent central banks.

The adoption of ecological fiscal transfers: An empirical analysis

The ecological fiscal transfers (EFT) from states to municipalities were adopted by 16 of the 26 Brazilian states since 1990s to stimulate and compensate districts for achieving some environmental goals. This study aims to understand the adoption of this economic-policy instrument by Brazilian states and argues that the vertical relations between the federal and state governments increase the EFT adoption. The hypotheses are derived from the transaction-costs politics and the institutional collective action frameworks, namely built in legislative decision-making costs and commitment costs, and are empirically tested using event history analysis for the period of 1990–2015. The conclusions point to the idea that the adoption rate increases in non-electoral years, suggesting that politicians tend to avoid conflicts during electoral years. They tend to minimize the costs related to the legislative decision-making process. Also, the coordination of the central government has the potential for facilitating the adoption of EFT. More broadly, the transaction cost-politics framework and the institutional collective action framework can explain EFT adoption partially.

Optimal control policies for assemble-to-order systems with commitment lead time

In this article, we study a preorder strategy which requires customers to place orders ahead of their actual need. We characterize the preorder strategy by a commitment lead time. We define the commitment lead time as the time that elapses between the moment an order is communicated by the customer and the moment the order must be delivered to the customer. We investigate the value of using this preorder strategy in managing assemble-to-order systems. For this purpose, we consider a manufacturer, who operates an assemble-to-order system with two components and a single end product. The manufacturer uses continuous-review base-stock policies for replenishing component inventories. Customer demand occurs for the end product only and unsatisfied customer demands are backordered. Since customers provide advance demand information by preordering, they receive a bonus. We refer to this bonus from the manufacturer’s perspective as a commitment cost. We determine the optimal component base-stock levels and the optimal length of the commitment lead time, which minimize the sum of long-run average component inventory holding, backordering and commitment costs. We find that the optimal commitment lead time is either zero or equals the replenishment lead time of one of the components. When the optimal commitment lead time is zero, the preorder strategy is not beneficial and the optimal control strategy for both components is buy-to-stock. When the optimal commitment lead time equals the lead time of the component with the shorter lead time, the optimal control strategy for this component is buy-to-order and it is buy-to-stock for the other component. On the other hand, when the optimal commitment lead time equals the lead time of the component with the longer lead time, the optimal control strategy is the buy-to-order strategy for both components. We find the unit commitment cost thresholds which determine the conditions under which one of these three cases hold.

Inferred valuation versus conventional contingent valuation: A salinity intrusion case study

People's willingness-to-pay values may be inflated by a variety of influences (e.g. hypothetical bias), which means that stated preference validity tests remain relevant. Recently developed inferred valuation approaches may serve to identify and/or reduce inflated stated preference values. However, economic applications of inferred valuation approaches are relatively limited in the literature, and the evidence remains mixed. This paper examines farmers' willingness-to-pay for salinity intrusion mitigation programs in the Mekong River Delta of Vietnam using both conventional contingent and inferred valuation approaches. Inferred valuation estimates were as much as 31 per cent lower than conventional estimates of willingness-to-pay, and averaged about 24 per cent lower across the groups. We discuss these findings, and the role that commitment costs and provision point mechanism payment vehicles may play. Public policy implications for any future salinity intrusion mitigation program are also outlined.

Optimal control policies for an inventory system with commitment lead time

AbstractWe consider a firm which faces a Poisson customer demand and uses a base‐stock policy to replenish its inventories from an outside supplier with a fixed lead time. The firm can use a preorder strategy which allows the customers to place their orders before their actual need. The time from a customer's order until the date a product is actually needed is called commitment lead time. The firm pays a commitment cost which is strictly increasing and convex in the length of the commitment lead time. For such a system, we prove the optimality of bang‐bang and all‐or‐nothing policies for the commitment lead time and the base‐stock policy, respectively. We study the case where the commitment cost is linear in the length of the commitment lead time in detail. We show that there exists a unit commitment cost threshold which dictates the optimality of either a buy‐to‐order (BTO) or a buy‐to‐stock strategy. The unit commitment cost threshold is increasing in the unit holding and backordering costs and decreasing in the mean lead time demand. We determine the conditions on the unit commitment cost for profitability of the BTO strategy and study the case with a compound Poisson customer demand.

Political decision-making and the decline of Canadian peacekeeping

ABSTRACTThis article explores the reasons behind Canada’s declining participation in United Nations peacekeeping operations. It proposes a decision-making model that explains how politicians assess opportunities to commit personnel to peacekeeping missions by balancing their policy objectives with the pressures of electoral politics. Emphasizing the importance of voters in political decision-making processes, it argues that participation in peacekeeping is dependent on three key factors: a belief in the value of peacekeeping in principle; a belief in the value of a given peacekeeping operation; and risk aversion in response to the potential costs of peacekeeping. Tracing Canada’s declining participation in peacekeeping operations since the 1990s, it particularly focuses on how this calculus has, in different ways, limited Canada’s involvement in peacekeeping under Stephen Harper’s Conservative government and Justin Trudeau’s Liberal government, arguing that the former undervalued peacekeeping as a means of obtaining its foreign policy objectives and as a feature of national identity, minimizing the perceived benefits of participation, while the latter has focused on the inherent risks of peacekeeping despite a professed commitment to peacekeeping in principle, maximizing the perceived costs of further personnel commitments. The decisions of successive Canadian governments have led to a free-rider problem in which Canada is willing to enjoy the benefits of peacekeeping but unwilling to bear the costs.

Procedural invariance as a result of commitment costs: evidence from an economic experiment on farmers’ willingness to pay for digestate

ABSTRACTWe offer a conceptual explanation for some of the procedural invariance witnessed in experimental studies related to the concept of commitment costs, which is confirmed in a field experiment with Sicilian farmers valuing a renewable soil conditioner.

Factors affecting purchasing process of digestate: evidence from an economic experiment on Sicilian farmers\u2019 willingness to pay

In this study, we evaluate from the perspective of the theory of commitment costs if the level of farmer understanding about digestate attributes could influence the willingness to pay (WTP) for it. For this purpose, we carried out a research on a sample of 223 Sicilian farmers to correlate their WTP for digestate with a set of eight attributes which usually characterise organic soil conditioners. An experimental design was set up so that participants were given different waiting times to decide on their WTP and different levels of information on the attributes of organic soil conditioners. The results highlight a positive WTP, but farmers are strongly influenced by how much information is available on digestate. Without it, farmers’ WTP decreases drastically probably due to phenomena correlated to what economic theory calls commitment costs.

The electoral costs of policy commitments

AbstractExisting arguments across political science posit that parties in government use domestic and international institutions to lock in their own policy preferences by tying the hands of successors. I demonstrate that these arguments contrast with the assumption of office-seeking parties and therefore portray an incomplete picture of the incentives of governments. The paper emphasizes the trade-off between implementing policy preferences, on the one hand, and exploiting partisan differences for electoral success, on the other hand: locking in a policy takes an issue off the table, but it also undermines a party’s ability to leverage differences to the opposition in elections. Because office-seeking parties need to take into account these electoral consequences, they have a disincentive to tie their successors’ hands. I advance this argument in the context of the establishment of independent central banks, provide empirical evidence, and suggest implications for the literature on international institutions.

Estimation of the cost of greenhouse gas reduction in Korea under the global scenario of 1.5 °C temperature increase

ABSTRACTThis paper assesses the feasibility of reducing greenhouse gas (GHG) emissions in Korea to pursue efforts to limit the global temperature increase to 1.5 °C above pre-industrial levels, as considered in the Paris Agreement. Economic cost, risk and possibility of climate commitment are examined using different burden-sharing schemes and using a computable general equilibrium model based on assumptions of future socioeconomic conditions. Four scenarios are used for 2050, including a Nationally Determined Contribution (NDC) extended scenario and one of almost zero emissions. Then, the simulation results are analyzed under different scenarios, including several policy implications. In order to meet a goal of zero emissions around 2050, the use of fossil fuels for power generation should be replaced with renewable energy sources, such as solar, wind and hydro. The results show that, regardless of the scenario of burden-sharing schemes using the global carbon budget, the Korean economy can bear the marginal cost of a GHG reduction, ranging between USD 100 and 350 in 2050, compared to the NDC extended scenario. It is evident that without a transformative change in the Korean economic structure and energy systems, the cost of reducing GHG emissions will be enormous.