Incentive Costs Research Articles

Pathogen genomics in healthcare: overcoming barriers to proactive surveillance.

Pathogen genomic surveillance in healthcare has the potential to enhance patient safety by detecting outbreaks earlier, thereby reducing morbidity and mortality. Despite benefits, there are barriers to adoption, including cost, expertise, and lack of standardized methodologies and incentives. This commentary advocates for 1) investment from healthcare payors, public health, and regulatory bodies and 2) additional research on genomic surveillance for improving patient outcomes and reducing infections. Effective implementation will require strategic investment and cross-sector collaboration.

Economic impacts of federal reserve policies on taxation and corporate finance

Federal Reserve policies play a pivotal role in shaping the U.S. economy, influencing not only macroeconomic stability but also the financial strategies and tax implications for corporations. Broadly, the Federal Reserve's use of monetary tools—such as interest rate adjustments, Quantitative Easing (QE), and inflation targeting—affects the economic environment within which businesses operate, impacting costs of capital, investment incentives, and overall corporate behaviour. Through mechanisms like lowering interest rates, the Federal Reserve reduces borrowing costs, which encourages companies to adjust their capital structures and debt levels, with significant implications for tax planning due to interest deductibility. QE, on the other hand, drives asset prices higher, promoting increased investment activity, stock buybacks, and changes in dividend policies that indirectly influence corporate taxation. This article examines the nuanced relationships between Federal Reserve decisions and corporate finance, analysing how shifts in policy impact tax revenue and how governments adapt tax policies to manage economic conditions such as inflation. By presenting case studies from the 2008 financial crisis and the COVID-19 pandemic, this analysis illustrates the practical effects of the Federal Reserve's actions on corporate financial decisions and the broader tax landscape. The article concludes by addressing the future of Federal Reserve policies in light of technological advances in finance and the adaptive strategies that corporate and regulatory bodies may adopt to navigate an increasingly dynamic economic environment.

Cost and cost-effectiveness of abstinence-contingent wage supplements for adults experiencing homelessness and alcohol use disorder

BackgroundAlcohol use disorder, unemployment, and risk of homelessness are linked and often co-occurring, but most interventions do not address both alcohol use disorder and unemployment. The Abstinence-Contingent Wage Supplement (ACWS) model of the Therapeutic Workplace offers participants stipends or wage supplements contingent on both their abstaining from alcohol and engaging with an employment specialist or working in a community job. Wearable biosensors continuously tracked alcohol use. Methods and dataThe study randomized participants to Usual Care (UC) (n = 57) and ACWS (n = 62). We used micro-costing methods to identify the resources and costs of the 6-month ACWS intervention. The study team tracked the cost of incentives for wearing biosensors, stipends, and wage supplements. We used 6-month cost and effectiveness data to calculate incremental cost-effectiveness ratios and cost-effectiveness acceptability curves. ResultsOver the 6-month study period, average intervention costs per participant were $7282, with contingent stipends and wage supplements accounting for 50 % of intervention costs. We also reported average per participant costs for healthcare (UC: $17,785; ACWS: $26,734), justice system (UC: $131; ACWS: $153), and public welfare (UC: $1107; ACWS: $1275). The incremental cost-effectiveness ratios (ICERs) at 6 months were $80,911 for an additional participant abstinent, $3894 for an additional drinking free day, $22,756 for an additional participant employed, and $1514 for an additional day worked. ConclusionsThe ACWS intervention for adults with an alcohol use disorder and experiencing homelessness increased costs and improved alcohol use and employment outcomes compared with Usual Care. For policymakers seeking a solution to alcohol use and unemployment with populations experiencing homelessness, ACWS may be a cost-effective solution.

An Evolutionary Game Study of Collaborative Innovation across the Whole Industry Chain of Rural E-Commerce under Digital Empowerment

With the profound integration of digital technology and traditional agriculture, the whole industry chain of rural e-commerce, as an advanced system, is reshaping the production, sales, and management models of agriculture and is emerging as a new catalyst for the advancement of digital agriculture through significant innovation. This paper focuses on the digital empowerment attributes and strategic attributes of the whole industrial chain of rural e-commerce, and evolutionary game models under market mechanisms and regulations are constructed. It examines the influence of various elements, such as the digital technology empowerment coefficient, on collaborative innovation within the whole industry chain of rural e-commerce. Using case simulations, this paper discusses the role of government regulation and intervention when market mechanisms are inadequate. The study reveals that factors such as the digital technology empowerment coefficient, technology absorptive capacity, and the amount of technology and information stored in collaborative innovation positively influence the whole industry chain. Potential risk losses and free-rider gains have negative effects on the evolution of the system toward collaborative innovation. When market mechanisms are inadequate, a combination of operational cost subsidies and incentive measures can yield more effective policy synergy, with the incentive impact of cost subsidies being particularly notable. The strategic application of enterprise-liquidated damage and government penalties will aid in regulating and directing corporate behavior. The findings of this research not only offer a new microlevel explanation for understanding the decision-making mechanism behind collaborative innovation in the whole industrial chain of rural e-commerce but also serve as a reference for government policy formulation to ensure the stability of the whole rural e-commerce industry chain.

O27 DEVELOPMENT OF A CONCEPTUAL EVALUATION MODEL AND TESTING ITS PERFORMANCE IN HYPOTHETICAL PAY-FOR-PERFORMANCE INTERVENTIONS TO IMPROVE HYPERTENSION CONTROL

Background and Objective: Hypertension is a growing concern, particularly in low- and middle-income countries. Financial incentives, such as pay-for-performance, have shown promise in improving non-hypertension outcomes. However, their efficacy and cost-effectiveness in hypertension management, especially in low-resource contexts, remain uncertain. Our objectives were to 1) document studies exploring health financial interventions for hypertension management 2) develop a conceptual model which can facilitate future research on health financing approaches for hypertension management, and 3) assess the model's performance in hypothetical pay-for-performance interventions. Methods: Our literature review identified few studies evaluating finance interventions on hypertension management with somewhat more evidence for pay-for-performance strategies. Thus, we developed a conceptual model and assessed its performance in hypothetical scenarios of pay-for-performance schemes to enhance public hypertension care in Bangladesh. Using a state-transition modeling framework, we estimated the incentive costs and impact on cardiovascular disease burden in 18 scenarios with varying intervention coverage, blood pressure effects, and incentive rates (Figure 1). Key model inputs were derived from the 2019 Global Burden of Disease Study, the 2018 WHO STEPS survey, and WHO-CHOICE. Our primary outcome was incentive costs per health-adjusted life year (HALY) gained. Results: Based on our model, the incentive costs per HALY gained depended on the intervention coverage, intervention effect and incentive rate (Figure). If only currently treated patients were included, the most optimistic scenario (i.e., the largest blood pressure reduction with the lowest incentive rate) was estimated to cost 11,043 USD in incentives per HALY gained (Figure). If the intervention also included new, previously untreated patients while maintaining the same total incentives, the estimated incentive costs per HALY gained was 5,515 USD. Conclusions: Our model suggests that pay-for-performance interventions for hypertension care may demand substantial financial resources, but that the intervention could become more favorable with increased treatment coverage. While more studies on the impact of financial interventions in hypertension care are necessary, our model can guide planning and designing such a study.

Analisis Faktor-Faktor yang Mempengaruhi Biaya Transaksi Nasabah pada PT Bank Perkreditan Rakyat Nusuma Gondang Legi Malang

This study aims to analyze the factors that affect customer transaction costs at PT Bank Perkreditan Rakyat Nusuma Gondang Legi, Malang, using qualitative methods through library research using secondary data from sources such as the bank's official website, books, journals, and related articles. The results show that the cost of obtaining third-party funds has a significant positive effect on transaction costs, while bank operational costs do not. Target profit margin and timely payment incentive costs have a significant positive effect, but loan risk costs and asset depreciation are not significant. In conclusion, factors related to bank management and operations, including cost of obtaining funds, operational costs, target profit margin, timely payment incentive costs, and asset depreciation costs, have a significant effect on customer transaction costs. Effective management is needed to minimize transaction costs and improve the efficiency of the banking industry, providing additional insights for further analysis development in supporting the growth of the banking sector

Analysis of low-carbon technology transfer strategies based on a quadrilateral evolutionary game

Promoting low-carbon technology transfer is crucial for reducing global greenhouse gas emissions, combating climate change, and fostering sustainable development. Based on the “efficient market” and “active government” concepts, a “government-intermediary-receiver-sender” game model was constructed, identifying evolutionary stable strategies and key factors affecting strategy selection. It was found that (1) receiver and sender needs and government policy incentives increase intermediaries' willingness to participate, reducing input costs and shifting government support from incentives to compensatory regulations; (2) optimal strategies emerge when incentives for low-carbon technology senders, receivers, and intermediaries, and penalties for serious defaults by senders and receivers exceed a threshold, fostering high participation willingness and leading to government implementation of compensatory regulations; (3) differentiated penalties are necessary to avoid a sender-receiver prisoner's dilemma but only ensure one side's willingness to participate, while government incentive-based regulation can overcome negative constraints and promote active participation from both sender and receiver. Compensatory regulations encourage sustained technology transfer costs and reduce incentive costs, with optimization focusing on lowering government publicity costs and increasing economic benefits for intermediaries.

Contractual provisions, governance, and maintaining sales leadership: Evidence from franchise systems

Annual sales revenue is one of the most critical indicators of franchise performance not only for the business stakeholders but also for prospective franchisees who are exploring their investment opportunities. Accordingly, Franchise Times ranks and reports the 200 top franchisors annually based on sales performance. Historically, some franchisors have successfully maintained their position among top-ranking firms for years in this credible ranking. Understanding factors associated with such achievement is pivotal for the success and improvement of franchise firms. Despite its importance, the impact of franchise contract provisions on maintaining their sales leadership remains unexplored. In this research, we examine various contract provisions, including cost structure, incentives, and governance, among top franchise firms over time to shed light on factors affecting their sales leadership and continued presence among top-ranking firms. Using the survival analysis, we empirically address this gap by analyzing an unbalanced panel dataset of 153 franchise firms from 2013 to 2020 (1172 firm-year observations). We find that franchisors with contract provisions specifying higher royalty rates, financing support for franchisees, multi-unit or master-franchise-only options, and a primary focus on franchising for expansion are more likely to maintain sales leadership within the industry.

Incentive contract design for reducing carbon emissions in the supply chain under asymmetric information

AbstractIn light of the volatility of market demand and carbon trading prices, this study examines the effects of two carbon policies—the carbon tax policy and the cap‐and‐trade policy—as well as various information structures on the supply chain's carbon emission reduction incentives. A brand incentivizes the carbon abatement effort of an upstream supplier through a two‐part contract in the form of a fixed salary and a proportional incentive. We discover that, under some circumstances, the brand may benefit more from the unobservability of supply chain information. The brand bundles the risk of uncertainty with the supplier through the proportional incentive. In classical incentive contracts, only the cost is considered and the positive effect of risk conveyance is often ignored. In our study, the brand needs to investigate a trade‐off between the benefit of risk conveyance and the drawback of the incentive cost. On one hand, the proportional incentive characterizes the incentive cost. The brand increases the incentive intensity due to the unobservable effort of the supplier. On the other hand, it also has a risk conveyance effect. Specifically, the proportional incentive decreases with the correlation coefficient under the cap‐and‐trade policy. Additionally, there are situations in which consumer surplus benefits from the observability of supply chain information. However, supply chain information transparency is harmful to consumer surplus as supplier risk aversion increases.

Snake swarm optimization‐based deep reinforcement learning for resource allocation in edge computing environment

SummaryMobile edge computing has become popular in the past few years as a means of creating computing resources close to end‐user nodes at the network edge. Nodes—end users—demand work offloading to improve service utilization. Furthermore, when the number of users in mobile edge computing increases, the minimal resources deployed at the edge become a problem. Develop the idea of reinforcement learning using a metaheuristic technique intended to achieve effective resource allocation and resolve offloading issues to handle this issue. The ideal way to manage the implementation of mobile edge computing with a cognitive agent's help is to request compensation for all client necessities. To complete the infrastructure type for the Internet of Things (IoT), the operator information is combined with its distinctive methodology. Neural caching during task execution is provided by reinforcement learning based on snake swarm optimization (SSO). Neural caching during task execution is provided by reinforcement learning based on SSO. In the process of creating the cost mapping table and incentive factor‐based optimal resource allocation, this suggested method is applied to a contract with effective resource allocation among the end manipulators. Using performance metrics like delivery ratio, energy consumption, throughput, and delay, the suggested approach is put into practice and examined. It is also contrasted with traditional methods like Gray Wolf Optimization (GWO) ant colony optimization (ACO) and genetic algorithms (GA).

A hierarchical coordinated control strategy of air‐conditioning loads for peak regulation service

AbstractThe increased penetration of renewable energy sources and the intensification of peak‐valley differences present challenges to peak regulation in the power system. Fulfilling the peak regulation needs of the power system solely through generation‐side resources proves to be challenging. Large‐scale fixed frequency air‐conditioning (FFAC) and inverter air‐conditioning (IAC) are high‐quality flexible load resources. This paper proposes a hierarchical coordinated control strategy of air‐conditioning (AC) loads for peak regulation service. In the first layer of the control strategy, the load aggregator collaborates with multiple AC groups to ensure the completion of peak regulation tasks with specific power‐constrained requirements. In the second layer of the control strategy, the control centre of each group optimizes the temperature adjustment values for each AC load, aiming to reduce incentive costs. Finally, the proposed method is validated through simulations, demonstrating its capability to achieve coordinated control of FFAC and IAC loads under various power‐constrained requirements. Furthermore, the simulation demonstrates the effectiveness of the control strategy in reducing user discomfort and the AC's incentive costs.

TB-HQ: An Incentive Mechanism for High-Quality Cooperation in Crowdsensing

Crowdsensing utilizes a range of sensing resources and participants, including mobile device sensors, to achieve collaborative sensing and information fusion. This enables it to handle complex social sensing tasks and provide more intelligent and real-time environment sensing services. Incentive mechanisms in crowdsensing are employed to address issues related to insufficient user participation and low-quality data submission. However, existing mechanisms fail to adequately consider reference points in user decision-making and uncertainty in the decision-making environment. This results in high incentive costs for the platform and limited effectiveness. On the one hand, the probabilities and utilities in the actual decision environment are defined based on user preferences, and uncertainty can lead to unpredictable impacts on users’ future gains or losses. On the other hand, users identify their choices based on certain known values, namely reference points. The factors influencing user decisions are not solely the absolute final result level but rather the relative changes or differences between the final result and the reference point. Therefore, to resolve this problem, we propose TB-HQ, an incentive mechanism for high-quality cooperation in crowdsensing, which simultaneously considers the reference points adopted by users in decision-making and the uncertainty caused by their preferences. This mechanism includes a task bonus-based incentive mechanism (TBIM) and a high quality-driven winner screening mechanism (HQWSM). TBIM motivates users to participate in tasks by offering task bonuses, which alter their reference points. HQWSM enhances data quality by reconstructing utility functions based on user preferences. Simulation results indicate that the proposed incentive mechanism is more effective in improving data quality and platform utility than the comparative incentive mechanisms, with a 32.7% increase in data quality and a 77.3% increase in platform utility.

Mobility-as-a-Service and unsustainable travel behaviour: Exploring the car ownership and public transport trip replacement side-effects of the MaaS paradigm

Car-centred development adds significantly to the climate change threat our planet faces. Mobility-as-a-Service (MaaS) is a concept looking to generate modal shift via the digital and physical integration of alternative on-demand transport services. Recent research raises concerns, however, that contrary to the hype, MaaS may result in unsustainable travel behaviour. On the one hand, future MaaS users that are now primarily drivers may not be ready to shift away from their cars, while, on the other hand, people regularly using public transport may substitute some of these journeys with MaaS-enabled car-sharing, ride-sharing and ride-hailing services. Herein, we study the effects of MaaS on intentions to own a car and to substitute public transport trips with car-centric services, via a UK-based quantitative survey. We use Principal Component Analysis and Ordinal Regression Modelling to see how MaaS-related perceptions referring to Added Value, Car Use Convenience and Enjoyment, Human Element Externalities, Trust in Functionality, Cost Incentives, Car Use Morality, Trust in Enabling Technology and Car Ownership Necessity affect usage intentions. Our results highlight some, typically less discussed, grey areas of MaaS and inform the design of policies, including car service disincentivitisation, responsible user benefits, MaaS rebranding and public transport investment prioritisation.

Load Scheduling of Smart Net-Zero Residential Buildings Based on Pandemic Situation

Load scheduling is an effective way of utilizing loads of smart residential buildings according to the preferences of the inhabitants or grid demands, while reducing the cost of energy. This work proposes objective functions for load scheduling to confine the cost of energy within the consumers’ preference range while keeping the load consumption closer to the load demand as possible, to minimize system loss during normal and pandemic condition such as COVID-19 periods, fulfilling the unique features of a net-zero energy building. The proposed objective function is implemented by considering the realistic grid power cost, levelized cost of renewable sources, battery, and incentives offered by the utility system existing in California, USA. In addition to three different types of days such as normal working days, weekends and pandemic situations, brown out power outages are considered as operating conditions. Particle swarm optimization (PSO) is utilized in all considered operating conditions. Two terms that account for the total energy cost savings and the total delayed/scheduled load over a fixed time horizon are formulated as performance indices to illustrate the effectiveness of the proposed objective functions for load scheduling. All of the cases are optimized by the Paticle Swarm Optimization (PSO) and non-optimized systems are simulated in the MATLAB environment. It is evident from the simulation results that the proposed objective function is very efficient in tackling the energy resources, loads and grid power to maximize cost savings and minimize shifting of loads for later hours for normal and pandemic situations in net-zero energy buildings. Moreover, it is equally effective in responding to any emergency situations such as brown out energy crisis situations, which are not considered in the literature so far. In all cases, the performance index also validates the effectiveness of the proposed objective function-based scheduling system for net-zero energy buildings.

Evolutionary Game Analysis of Enterprises' Green Production Behavior in the Context of China's Economic Green Transformation

<p>In the context of China's critical economic transition towards sustainability, this research employs a tripartite evolutionary game model involving government, enterprises, and environmental protection social organizations to investigate the evolutionary trajectory of enterprises' green production behaviors. By elucidating the equilibrium solution of the model and validating its local stability, the study aims to identify the key factors that contribute to steering the game towards a favorable state. The findings reveal that enterprises' decisions to adopt green production practices are primarily driven by cost-benefit considerations. Meanwhile, government interventions in regulating green production are influenced by factors such as resource input, punitive measures for non-compliance, and reward incentives. Additionally, the decisions of environmental protection social organizations to monitor enterprises' green production are shaped by factors like cost, financial support, and subsidy incentives. Ultimately, the study provides policy recommendations, emphasizing stakeholder perspectives, to encourage corporate green production. These insights not only aim to foster sustainable development among enterprises but also serve as a theoretical foundation for government policy formulation.</p>

Moderating role of policy incentive and perceived cost in relationship of environmental awareness and green consumption behavior.

Over time, environmental concerns have gained much importance and main debatable issue. Green products are becoming popular due to their positive impact on environment and their role in the green economy. However, the significance of environmental awareness, perceived cost, face culture and policy incentives on green consumption behavior is not fully examined in prior research. This research aimed to analyze the various dimensions impacting behavior regarding green consumption in China. Moreover, the moderating impact of policy incentives, perceived cost, and face culture is also explored. An internet-based survey was undertaken and findings indicate that environmental awareness serves as foundation for eco-friendly consumption. The transition from awareness to action is influenced by various factors. Among these, the perceived cost by consumers represents a significant barrier to green consumption, while face culture has a significant impact in encouraging green consumption. Interestingly, policy incentives do not exhibit any notable direct effect or moderating influence on green consumption practices of consumers.

자동차 부품업체의 TDABC 적용사례 연구

[Purpose]If activity－based cost calculation is a cost calculation method that can be applied to blue－chip companies with advanced ERP systems, TDABC is a relatively easy and simple cost calculation method that can be applied even to a small number of SMEs. This study attempted to confirm the usefulness of TDABC by analyzing the difference between the time－active cost calculation (TDABC) method and the existing cost calculation method based on the cost data of S, a case company in the automobile parts manufacturing industry. [Methodology]Unlike the traditional cost calculation of case company S, the process time was calculated by applying the TDABC system by the time equation. Through this, not only the actual operation level was divided into usage time and idle time, but also cost reduction and profit rate improvement measures were prepared by dividing the cost into usage cost and idle cost. [Findings]Summarizing the analysis results of this study, for case companies, the operating margin based on traditional cost calculations was 2.8%, whereas the TDABC system was analyzed as 6.7% of the operating margin for the cost of use, excluding idle costs. In other words, the cost of the TDABC system is a way to increase the operating margin along with the reduction of the idle cost sector. Therefore, it was confirmed that the introduction of the TDABC system for case companies can increase the efficiency of cost management. [implications]Unlike previous studies that calculated the cost incentive rate in the dedicated facility system, this study is significant in that it analyzed the usefulness of TDABC by applying time－driven cost calculation in the multi－species production system because case company S is building a system of general－purpose facilities.

Common institutional ownership and stock price crash risk

AbstractThis paper presents new evidence on the economic benefits arising from common institutional ownership. We find a negative and significant effect of common institutional ownership on stock price crash risk. This effect is robust to a battery of robustness checks and is causal according to some identification tests, including difference‐in‐differences analyses on financial institution mergers. We find evidence that the negative effect is attributable to the monitoring role of common institutional owners—a role that is enabled by common owners' lower information processing cost and greater monitoring incentives owing to governance externalities. We also find that common owners negatively influence crash risk through constraining bad news hoarding and that common owners are more likely to force CEO turnover when a firm has higher crash risk. Overall, our results suggest that common institutional shareholders play a unique and effective monitoring role that fends off stock price crashes.

Implementation of industrial enterprises’ green innovation strategy under technology spillover

ABSTRACT In recent years, advanced emerging technologies have paved the way for new opportunities in green innovation strategies within industrial enterprises. This research aims to examine the impact of technology spillover on the strategic management of industrial enterprises’ green innovation initiatives and evaluate the role of government intervention. By employing an evolutionary game model and simulation approach, we identify a direct relationship between industrial enterprises’ strategic choices in green innovation and the degree of technology spillover. With significant technology spillover, industrial enterprises demonstrate an increased tendency to access innovation resources and technical support, leading to a preference for breakthrough green innovation strategies. Enhanced innovation capabilities and a higher innovation cost elasticity coefficient help reduce the risks associated with breakthrough green innovation, further amplifying the positive effects of technology spillover on such initiatives. Moreover, when the government provides considerable cost subsidies and incentive funds, industrial enterprises show a stronger predilection towards breakthrough green innovation strategies. This research adds to the body of knowledge concerning technology analysis, strategic management of green innovation, and the sustainable progression of industrial enterprises.

Technoeconomic assessment for the viable exploitation of biomass residues by an innovative pyrolysis-anaerobic digestion processing plant

In Greece, there is no organized practice in agricultural and animal wastes management. Their exploitation is still set aside, due mainly to economic reasons and lack of incentives for their efficient utilization. Therefore, in the present work a technoeconomic assessment for the environmentally friendly useful exploitation of biomass residues produced in the Prefectures of Ilia and Achaia (Western Greece) for the generation of energy by an integrated anaerobic digestion (AD)-pyrolysis processing plant was carried out. The processed biomass of the AD unit is corn residues and cattle manure, while the feedstock of pyrolysis unit is olive tree prunings. The residues will be transferred to collection areas by field tractors. Then an integrated harvester is used and afterwards, the residues are discharged from the lifting bin of the harvester to trucks and are transported to the processing unit. The total fixed capital for a capacity of 328,716 t/y is equal to 11.5 M€, while the initial working capital is equal to 2.1 M€. The total operational cost of this investment is estimated at 18.3 M€/y, the projected revenues amount to 21.4 M€/y and the net profit is equal to 3.1 M€/y. The return on investment is estimated at 23% and the payback period becomes equal to 4.4 years. From the sensitivity analysis becomes apparent that the capacity, the incentive cost, the fuel price, the products price and the total fixed capital affect significantly the investment characteristics of the proposed AD-pyrolysis processing unit. The amount of the expected profit is considered quite significant, and the evaluation criteria (return on investment and payback period) advocate for a more detailed examination of the investment plan, in the direction of undertaking the project.