Dual Market Research Articles

Machine Learning Valuation in Dual Market Dynamics: A Case Study of the Formal and Informal Real Estate Market in Dar es Salaam

The housing market in Dar es Salaam, Tanzania, is expanding and with it a need for increased market transparency to guide investors and other stakeholders. The objective of this paper is to evaluate machine learning (ML) methods to appraise real estate in formal and informal housing markets in this nascent market sector. Various advanced ML models are applied with the aim of improving property value estimates in a market with limited access to information. The dataset used included detailed property characteristics and transaction data from both market types. Regression, decision trees, neural networks, and ensemble methods were employed to refine property appraisals across these settings. The findings indicate significant differences between formal and informal market valuations, demonstrating ML’s effectiveness in handling limited data and complex market dynamics. These results emphasise the potential of ML techniques in emerging markets where traditional valuation methods often fail due to the scarcity of transaction data.

Charging change: Analysing the UK's electric vehicle infrastructure policies and market dynamics

Over the past decades, there has been a rapid adoption of electric vehicles (EVs) and a gradual reduction in the number of Gas Stations, aligning with carbon neutrality objectives. Major oil companies, like Shell, are transferring Gas Stations to Charging Stations, supported by UK government incentives to stimulate the charging infrastructure. This paper systematically investigates three key stakeholders: government, investors, and end-users, examining their interactions and the transition of stations, and evaluating the economic intrinsic competition relationships. Integrating the complex networks, it spatially represents the relative positions of stations and designates Gas Stations as potential future locations for Charging Stations. Meanwhile, this paper comprehensively analyses various policies targeting the UK market, applies dual market analysis to compare the simple and complex market structures among policy scenarios, emphasising the necessity for applying complex interactive markets in industrial evaluation. The findings reveal that direct policies targeting Charging Stations exert immediate and positive effects, while indirect policies targeting Gas Stations and consumers demonstrate marginal diminishing effects. Furthermore, subsidies on the EV prices are less effective compared with other policies, like construction subsidies, operation subsidies, etc., highlighting the need for targeted policy designs, to maximise the expansion and efficacy of EVs and Charging infrastructure.

Optimizing the potential of Indonesian coffee: a dual market approach

Optimizing the potential of Indonesian coffee: a dual market approach

Production decision analysis of China's fossil fuel power enterprises in dual market conditions

At present, China and some other countries and regions are adopting both electricity and carbon trading markets to optimize the resource allocation of the power industry. The aim of this research is to explain the production behaviors of fossil fuel power enterprises in these complex dual market conditions and then evaluate the market effects. On the basis of the real market rules of China and the production characteristics of these enterprises, we describe the production decision process of enterprises with different market positions (leader, follower, and taker), obtain their optimal yield, and then offer market equilibrium results (total electricity supply, clearing price, total CO2 emissions, and carbon intensity level). Besides, we evaluate the impacts of government interventions (market condition changes) on regional market equilibrium situations by numerical simulation. Our results indicate that the direction (positive or negative) of the above impacts is determined by the level of the allocation coefficients of the carbon emission quota, and the degree of these impacts is determined by the level of fine for unit excess carbon emissions. Moreover, our research also proves that enterprise collusion behaviors aggravate market failure but lower the carbon intensity level.

The Feasibility of Introducing an Alternative Dual Market for Tradeable Pollution Permits to Improve its Economic Efficiency in Addressing Global Warming

Under growing public awareness of global warming, economists proposed a system that marketises the cost of pollution to firms in the form of tradable permits, aiming to discourage carbon emissions. In this system, pollution cost is determined by a free market force, making it more efficient than the government directly taxing producers. Nevertheless, the system’s efficiency still can be improved, and the urgent situation of climate change calls for policyholders to take a more effective and comprehensive approach, one of which is a regulated, online, dual market with the involvement of both producers and individuals around the world. The thesis, thereby, aims to examine whether this self-proposed system, with a higher market efficiency, can trigger more joint efforts to carbon reduction. The analysis will include a description of the new system and a comparison between the current and new system. The paper will then use mathematical modelling to determine key figures for the new scheme. The primary objective set for the model, which determines the market's feasibility, is achieving the Paris Agreement's 2-degree goal and restoring the atmosphere's carbon emissions to the pre-industrial level.

Power market models for the clean energy transition: State of the art and future research needs

As power systems around the world are rapidly evolving to achieve decarbonization objectives, it is crucial that power system planners and operators use appropriate models and tools to analyze and address the associated challenges. This paper provides a detailed overview of the properties of power market models in the context of the clean energy transition. We review common power market model methodologies, their readiness for low- and zero‑carbon grids, and new power market trends. Based on the review, we suggest model improvements and new designs to increase modeling capabilities for future grids. The paper highlights key modeling concepts related to power system flexibility, with a particular focus on hydropower and energy storage, as well as the representation of grid services, price formation, temporal structure, and the importance of uncertainty. We find that a changing resource mix, market restructuring, and growing price uncertainty require more precise modeling techniques to adequately capture the new technology constraints and the dynamics of future power markets. In particular, models must adequately represent resource opportunity costs, multi-horizon flexibility, and energy storage capabilities across the full range of grid services. Moreover, at the system level, it is increasingly important to consider sub-hourly time resolution, enhanced uncertainty representation, and introduce co-optimization for dual market clearing of energy and grid services. Likewise, models should capture interdependencies between multiple energy carriers and demand sectors.

Present and future of radio in Spain: an application of the Life Cycle Model to the industry

Radio in Spain has been losing audience and advertising year after year since 2012. Never before had the sector been through a moment like this, and it is especially relevant for Prisa Radio, Ábside Media and Atresmedia Radio. The theoretical framework of media economics, media management and ILC (Industry Life Cycle), applied to market data, has served to illuminate the resistant variables (dependent dual market, oligopolistic structure and use of star system appeal) that explain this moment in the sector’s life cycle. In this context, the improvement in the economic results of these companies that are in transition from the stage of maturity to defensive resistance, and which can lead to adaptation or obsolescence, is not a paradox. The findings of this research may help companies awaken to the fact that through strategic actions, there is still time to respond to the variables which lead to obsolescence.

Present and future of radio in Spain: an application of the Life Cycle Model to the industry

Radio in Spain has been losing audience and advertising year after year since 2012. Never before had the sector been through a moment like this, and it is especially relevant for Prisa Radio, Ábside Media and Atresmedia Radio. The theoretical framework of media economics, media management and ILC (Industry Life Cycle), applied to market data, has served to illuminate the resistant variables (dependent dual market, oligopolistic structure and use of star system appeal) that explain this moment in the sector’s life cycle. In this context, the improvement in the economic results of these companies that are in transition from the stage of maturity to defensive resistance, and which can lead to adaptation or obsolescence, is not a paradox. The findings of this research may help companies awaken to the fact that through strategic actions, there is still time to respond to the variables which lead to obsolescence.

Does geographical decentralisation harm the total factor productivity of firms in China?

ABSTRACT Under dual market and policy forces, industries vacated central business districts in Chinese cities, showing a decentralised layout. Using Chinese industrial firms’ micro-data (2004–12), with township-level division as the unit, we describe urban industrial decentralisation and polycentric layout, exploring their impact on firms’ total factor productivity (TFP). We found that: (1) industrial decentralisation negatively impacted TFP during the early and middle stages of urbanisation; (2) the polycentric layout can alleviate the firms’ TFP losses caused by decentralisation; and (3) industrial decentralisation reduces diversified agglomeration, lowering TFP. The conclusions of this study provide policy recommendations for urban industrial spatial planning.

Market driving, market driven, or both? toward a concept of dual market orientation

Although the literature suggests that firms choose between a market-driving and market-driven approach, observation suggests that firms often employ both approaches simultaneously. In this paper, I explore the concept of a dual market orientation and explore its implications for developing marketing strategy, measuring market orientation, and competition between firms.

Dynamic analysis of dual-market low-carbon supply chain: Considering government intervention and joint promotion

The increasingly severe global environmental problems have urged most people to incorporate environmental protection into their daily lives. Therefore, low-carbon supply chain management has become crucial. This paper studies a dual-market low-carbon supply chain operation in urban and rural markets with one manufacturer and two retailers. Three scenarios are considered: no government intervention, government intervention and joint promotion under government intervention. By establishing and solving three differential game models, we give the dynamic technological innovation, advertising and store promotion strategies of the manufacturer and two retailers and show the impact of government intervention and joint promotion on emissions reduction and performance. The results show that: first, government intervention can increase technology innovation efforts and decrease advertising efforts, while joint store promotion under government intervention has a positive effect on manufacturer's advertising and technological innovation efforts; second, government intervention may increase the profits of the manufacturer, although it will undoubtedly reduce the profits of the retailers, while joint store promotion under government intervention can further improve the profits of the manufacturer and retailers; third, compared to the preferences of rural consumers, manufacturer's technological innovation strategy relies more on the price and promotion preferences of urban consumers. Moreover, the preference differences between the two types of consumers have a weak impact on the manufacturer's advertising strategy, while the price preference of rural consumers has a more significant impact on the advertising efforts of the manufacturer. Overall, the research results can provide valuable suggestions for the members of the low-carbon supply chain in the dual market to improve the economic and environmental performance of the low-carbon supply chain.

Segmented and unequal: evidence on the dual labor market and youth unemployment from the Korea youth survey

ABSTRACT Empirical studies of the dual labor market, particularly those employing the endogenous switching regression model, are rare, and few studies appear to have considered youth unemployment, which may have negative long-term effects on economic growth and social equality. Using data from South Korea, we test the proposition that the dual structure of the labor market is one of the main causes that make the youth unemployment rate higher and worsens social inequality. The results strongly support the labor market hypothesis, suggesting that the dual market model is more relevant for the youth labor market; the findings also indicate that the social inequality structure may be strengthened by the dual market structure that excludes youth with socially disadvantaged conditions from the primary labor market.

Long-Lasting Legacy of Rent Controls: Perspectives on the Private Rental Market in Malta within the Context of a Dual Market

Up to a few years ago, the private rental market in Malta was a classic example of the dysfunction created by two diametrically opposed regimes – a rigidly-controlled one and a completely liberal one – co-existing side by side. Two recent reforms have sought to address this situation. The objective of this paper is to describe the state-of-play in the private rental market in Malta by providing a historical background to these recent developments. In addition to the distortions in the housing market that rent controls introduce, controls also contributed to the deterioration of the statistical infrastructure to collect data on this sector. From this perspective, the introduction of the 2020 rent reform for the post-1995 sector, in addition to providing a set of minimum standards to professionalize the market, also facilitated data collection efforts through the introduction of a rent register. This information provided an alternative source of information to complement the other data sources, which tend to be outdated, inadequate, or focus solely on specific segments of the market, thus allowing for a more detailed and complete view of the private rental market in Malta.

Trading and Volatility in Dual Market: Theory and Evidence from Real Estate

This article investigates the informational role of trading volume and the impact of transaction costs on trading volume and the return dynamics in public and private markets, using real estate as an application. The model extends Kyle (1985) in a framework with two markets associated with asymmetric transaction costs across markets and over time. It derives equilibrium and predicts that at the market downtime, investors’ incentive to trade in the public market increases while that in the private market declines based on a return-cost trade-off, which is when transaction cost in the private market accelerates. Trading volume induces return volatility. The marginal effect of trading volume on price increases monotonically with uncertainty in asset values and transaction costs. An assessment using a simulation method and data on public and private real estate markets in the United States from 1996 to 2014 validates the model’s propositions. We offer two explanations for the increased real estate investment trust (REIT) return volatility during the financial crisis: increased trading volume in the REIT market and a larger marginal impact of volume on price during market downtime.

Refurbished products and supply chain incentives

The emergence of online retail platforms and new retail technologies have enabled retailers to sell refurbished products to different markets, which exposes manufacturers to new challenges to control refurbished product market. This study investigates the incentives of supply chain members for refurbished products in a dual-channel supply chain. We examine the conditions under which the retailer is willing to sell refurbished products and the impact of refurbished products on manufacturer’s profits in three different cases, i.e., local market selling, across market selling, and dual market selling. Our results reveal that the manufacturer can effectively control the selling of refurbished products by a wholesale price contract when the retailer can only deliver refurbished products to her local market. However, when the retailer has the ability to deliver refurbished products into a cross-border market, supply chain members encounter different incentives for refurbished products.

White Paper series: Technical assistance support for health innovations in low and middle-income countries

Innovation serves as an important tool in addressing Sustainable Development Goals (SDGs) in new and accelerated ways. Particularly in the case of SDG 3 (which is dedicated to “Good Health and Well-being”), significant issues such as equity and impact are at stake in low- and middle-income countries (LMICs), that critically translate to actual lives and the quality of these lives. This makes the scaling of innovations beyond the proof-of-concept stage a crucial priority. However, to scale beyond the proof-of-concept stage, innovators must overcome multiple barriers related to fragmented and immature markets, varying expectations of partnerships and customers, regulatory and legal barriers, team bandwidth, capability and expertise. To successfully unlock these barriers, innovations in global health require funds. This four-paper series focuses on the different tools available, as well as organizational decisions innovators need to make regarding financing opportunities and strategies. While critical to each and every step of scaling an organization, the financing plan – as a strategy to scale innovations – often receives little attention in the early stages of growth. In most cases, decisions about accelerators to attend, initial financing mechanisms to use and organizational structures to implement are opportunistic, as opposed to strategic. Lacking both a full understanding of financing tools and approaches available as well as access to experts and/or networks to secure the appropriate form of financing, innovators often end up with ad hoc or suboptimal financing strategies, which in turn limit their opportunity to scale. Their struggle often becomes evident when attempts are made to move between growth stages and/or types of financing. Funders and stakeholders in the innovation ecosystem are representative of the interests and risk appetites of a wide variety of actors, ranging from governments to private sector corporations, donors and foundations, return-motivated investors and banks, or researchers, academic and multilaterals. To succeed, innovators must meet the expectations of multiple groups that do not always agree on the ranking or emphasis of priorities. At the same time, the landscape and strategies of funders are continuously evolving. Who will serve as an innovator’s guide through this journey with multiple critical partners? What is at stake if an innovator is not supported? The Every Woman Every Child Innovation “Marketplace” is a collaborative, ecosystem platform that works across the spectrum of innovators, funders and partners to help global health innovations grow and scale their impact and success. Since 2016, the Marketplace – supported by Grand Challenges Canada, the Norwegian Agency for Development (Norad), the United States Agency for International Development (USAID) and the Bill & Melinda Gates Foundation – has provided innovators with support during critical transition-to-scale stages and helped mobilize funding for innovations ($42M USD, at the time of this report) that serve beneficiaries in 62 countries. This white paper series shares insights of the Marketplace approach of hands-on support to mobilize capital. In the first paper, we discuss the barriers to scale that programmatic technical assistance support platforms can help overcome, including insights on when and how to leverage these programs to support a strong and intentional financing strategy. In the second paper, we provide an overview of the unique financial landscape in the global health sector and address opportunities for blended financing for innovations transitioning to scale. The third paper covers the business models available to technology innovators in global health, and the bidirectional relationship between these choices and opportunities for financing growth. Finally, the fourth paper dives deeper into the dual market approach and its underutilized potential to unlock financing for many innovations with aims of global reach and impact.

Opportunities for Managing Incremental and Radical Innovation in Production

Manufacturing companies constantly strive towards better quality and more cost-efficient production. This development is mainly managed through continuous improvement, somewhat limiting the organization to incremental changes. Meanwhile, existing literature emphasizes the need of managing both incremental and radical innovations to face dual market demands. This paper present proposals that can support an increased understanding of the context in which innovation management could be applied to further improve capabilities of a production organization, towards ambidexterity. Topics of proposals are 1) definitions of innovation in production, 2) innovation management with continuous improvement, and 3) alternative perspective on types of innovations.

The concept of minimization of transaction costs of functioning of the dual market of agricultural lands

This article provides the concept of minimizing transaction expenses for farmland market functioning, based on principles for minimizing transaction expenses on the property rights market developed by R. Coase, O. Williamson, D. North, J. Hodgson, E. Furubotn, original provisions on the dual structure of Russian agricultural land market with full and limited property rights transactions. The comparative institutional analysis of the dual market, transactors of various property types and transaction expense types demonstrates that three stages of full and limited property rights market transaction are characterized by high permanent transaction expenses related to providing data on property rights transaction, negotiations, preparing and signing contracts, as well as formal regulations. Due to high rates of transaction formalization, the full property rights market demonstrates higher expenses than the limited rights market, where expenses for long-term contractual relations are caused mainly by subjective factors and informal restrictions. The amount of expenses is unevenly distributed between transactors depending on land ownership type and form: expenses for state and municipal lands transaction, as well as for shared land ownership, are higher compared to transaction of private property rights. Some high transaction expenses are permanent and establish property rights specification and value, possible to be minimized only with time by amending legal standards and regulations in order to improve market transaction terms. Other expenses are established independently by transactors during the market exchange and can be minimized through indirect regulators changing behavioral aspects of market participants and direct regulators aimed at developing institutional and infrastructural market elements to enhance more effective usage of land resources and improve adaptive efficiency and flexibility of farmland market.

Inducing information transparency: The roles of gray market and dual-channel

Information asymmetry is particularly common in the supply chain framework. As we know, the downstream retailer usually knows more about the market demand information than the upstream manufacturer because of her proximity to consumers. This paper considers a supply chain that a manufacturer sells products to consumers via a retailer in a local market. Besides, the manufacturer has an option to establish a direct online channel in the overseas market, in which the retailer can sell products as a gray marketer to earn an extra profit. Both markets’ demand information is transparent to the retailer but asymmetric to the manufacturer. There are two side an opposite effects of information sharing on the retailer. The positive effect is that when she withholds demand information she can possess an information advantage. However, the negative effect is that when the retailer shares her private demand information, especially when the manufacturer enters the overseas market, the retailer’s profit may be negatively affected because of the competition. Therefore, whether the retailer has motivation to share her private demand information with the manufacturer is an intriguing yet unanswered question. We first characterize the tradeoff in three supply chain structures, Local Market, Dual Market and Gray Market. Then, we obtain the equilibrium results of each case and find that a co-opetition strategy may arise because of competition when considering gray market and dual-channel. Finally, we uncover the underlying reasons and develop valuable insights.

Mapping of Waste Management Planning Based on Society and Geographic Conditions

Household solid waste is the major environmental issue, not only in big cities but also in the suburban areas. Setia Asih Village location is in Kecamatan Tarumajaya, Kabupaten Bekasi. Bekasi is closed with Jakarta and it has unique characteristics, such as dual market economy; administration system; and social culture of the local people. Setia Asih Village has tremendous unmanaged household solid waste. It covers the land and river. This research paper used qualitative approach due to the limited of statistical data on the village level in Indonesia. The preliminary observation showed that local people do not have any knowledge or information about managing their household solid waste. Their local government does not have any responsibility to manage the household solid waste on the village level. It becomes local people responsibility. There is lack coordination among stakeholders in household solid waste management at Setia Asih Village. I conducted the solid waste management training to 300 people and Focus Group Discussion (FGD) with each Dusun (lower level than village) representatives. I found that local people have solutions to solve their household solid waste problem. Local government builds a new waste bank as Corporate Social Responsibility (CSR) from one of the state-owned enterprise.