High Administrative Costs Research Articles

The present and future of digital-community currencies: RAMICS 2019 in Hida–Takayama keynote speech

In this paper, we consider what globalization means in the deepest sense and traced back the recent trends of socio-economic and technological changes in the 21st century, and try to figure out what is the new possibility of community currencies. Modern financial capitalism only seeking more profits in free investment creates such problems as disparities of income and assets, unequal opportunities, dissolution of communities. Modern community currencies emerged and diffused mainly in developed countries in the 1980s. They were expected to solve such problems caused by globalization in modern capitalism but never succeeded in terms of scale and sustainability because of high administrative costs and low motivation of participants. Recent digital technologies such as blockchain, mining, proof of work and QR code scanning that are used in digital payment and cryptocurrencies have opened up a wide range of non-fiat, decentralized private money and created new possibilities for community currencies. Such technologies have both positive and negative effects on natural, ecological and cultural environments surrounding us. They also have changed the basic concepts of a geographically ‘local community’ to a virtual ‘community of interest’ in value space. If we are aware of such aspects, we can make the best use of Digital-Community Currencies assisted by ICT and AI for creating a diverse, decentralized, and sustainable socio-economy. In diversity and evolution of money, the principle that ‘Good money drives out bad’ holds. We must find the criteria for ‘good money’ in terms of quality in a trial–error process through competition, because it is not as given.

EFFECTS OF THE DIFFERENT ANESTHETIC METHODS ON POSTOPERATIVE HOSPITALIZATION AND USE OF ANALGESIA IN VARICOCELE SURGERY

Objective: The aim of this study was to evaluate the effect of different anesthetic methods used in varicocele surgery on postoperative pain relief needs and duration of hospitalization.Material and Methods: This study included 299 patients operated with varicocele between 2014 and 2018. patients were divided into general anesthesia+local anesthesia (20 ml prilocaine (2%)) skin infiltration [general anesthesia group (Group 1, n=50)], patients only administered spinal anesthesia [spinal anesthesia group (Group 2, n=142)], patients administered spinal anesthesia+TAP block [spinal+TAP block group (Group 3, n=52)] and patients administered spinal anesthesia and intrathecal morphine [spinal+ITM group (Group 4, n=55)].Results: The analgesic use in the general anesthesia group was not different from the spinal anesthesia group (p>0.05), but was different compared to the spinal+TAP group and spinal+ITM group (p<0.05, for both). Postoperative analgesic use is assessed for patients, the general anesthesia group was observed to have significantly shorter time for first analgesic use compared to the other groups (p=0.001). When patients are assessed in terms of the cost of anesthetic method, the highest cost method was in the spinal+TAP group. Conclusion: Despite relatively high cost of administration of spinal anesthesia+TAP block for varicocele surgery, it is an effective and reliable method with lower analgesic requirements and shorter duration of hospital stay.

Agriculture insurance for disaster risk reduction: A case study of Malaysia

Malaysia is one of the countries in the Asia-Pacific region that is most vulnerable to hazards such as floods, landslides, droughts, and climate change. Disaster risk continues to grow as a result of unplanned urbanization, persistent poverty, and ecosystem degradation. In this context, insurance is a risk financing mechanism, part of acomprehensive disaster risk management strategy, which plays an important role in disaster risk reduction. Being an economy in transition, Malaysia is in a unique position in relation to agriculture insurance. Based on primary and secondary sources of information and literature review, the present study analyzed the potential effects of agriculture insurance for disaster risk reduction (DRR) in Malaysia. The proposed framework of agriculture insurance suggests the involvement of policy makers and implementers, marketing channels, and micro users for DRR in Malaysia. The study identified challenges for agriculture insurance in Malaysia, such as lack of experience from international practices, limited products, lack of necessary data, limited financial capacity, and high administrative operational costs. Suitable recommendations that aim to promote agriculture insurance and reduce disaster risk in agro-production are offered. These recommendations emphasize proper government initiatives and public-private partnership of insurance companies to assist the market and the designing of suitable insurance products.

PCN70 HEALTHCARE RESOURCE UTILIZATION AND COSTS IN METASTATIC PANCREATIC CANCER: A SYSTEMATIC LITERATURE REVIEW

Metastatic pancreatic cancer (mPC) is a leading cause of cancer-related deaths and morbidity worldwide. Objectives of this systematic literature review include identifying healthcare resource utilization (HCRU) and costs associated with mPC. Studies of economic burden associated with mPC were identified from searches of MEDLINE® and Embase® databases (2008–2019), relevant cancer registries, and conference abstracts (2015–2019). Nineteen studies reporting costs of mPC management and 13 HCRU studies were included in the final analysis. mPC was associated with high hospitalization rates (84.1%) and emergency department visits (73.3%). In the US, inpatient stays were the highest contributor (57.8%) to the total cost of first-line mPC treatment. In one study, total overall monthly costs (US$) for mPC (across all therapy lines) ranged between $9,478–$12,042 (cost years: 2008–2012), most of which was due to inpatient, outpatient, and office visits. Administration costs for nab-paclitaxel+gemcitabine (nab-P/GEM) and folinic acid+fluorouracil+irinotecan+oxaliplatin (FOLFIRINOX) ranged between $900–$1,900 and $1,200–$3,010, respectively. nab-P/GEM and FOLFIRINOX for mPC were associated with substantial HCRU, including high rates of supportive care utilization (87.4% and 95.3% of patients undergoing first-line nab-P/GEM and FOLFIRINOX, respectively); supportive care costs ranged between $1,600–$3,000 and $4,500–$8,800, respectively (cost years: 2011–2015). Total monthly per-patient costs for first-line nab-P/GEM and FOLFIRINOX ranged from $16,600–$23,600 and $17,700–$26,600, respectively (cost years: 2011–2015). Chemotherapy use among patients aged ≥66 years with mPC was associated with substantially increased HCRU and higher patient out-of-pocket costs near death, as well as a higher median Medicare payment versus no chemotherapy ($17,959 vs $14,032; cost years: 2006–2011). mPC and mPC treatments are associated with frequent hospitalizations and emergency room visits. Furthermore, nab-P/GEM and FOLFIRINOX were associated with high administration and supportive care costs.

Assessing the Benefits of Long‐Run Weather Forecasting for the Rural Poor: Farmer Investments and Worker Migration in a Dynamic Equilibrium Model

The livelihoods of the majority of the world's poor depend on agriculture. They face substantial risk from fluctuations in weather conditions. Better risk, credit and savings markets can improve productivity and welfare in rural areas but entail high administrative costs. We consider a classic public good with benefits that theoretically exceed those of perfect insurance contracts – improving the skill of long-run weather forecasts. We use an equilibrium model of agricultural production and labor migration, and a variety of Indian panel datasets to assess quantitatively the effects of improvements in seasonal forecasts of monsoon weather. We find that in areas where the forecast is accurate (has “skill”) that investment, migration and rural wages respond to forecasts. We calculate that if such skill were pervasive across India, the total value of an accurate forecast for farmers and wage workers is in the tens of billions of rupees.

Moral Hazard in Agricultural Yield Insurance

In agricultural yield insurance practices, there are two main categories of insurance products which differed from the targeted insured yield, namely area-yield based insurance and individual-based insurance. A common knowledge is that individual-yield based insurance has more flexibility that could meet the real demand of insureds, while having much more severity of moral hazard and higher administration costs. Relatively, area-yield based insurance has lower risk of moral hazard, but obtaining bias, or so-called basis risk at the same time. In this paper, we use an improved modified Miranda Decomposition Model to establish a theoretical framework of farmers behaviors when assuming their goals are to maximize the expected rate of return in agricultural production process under both individual-yield and area-yield insurance. The results show that these two distinct arrangements may cause different motivation to farmers, seducing them act or not act in moral hazard manner.

Effects and Choices of Environmental Pollution Liability Insurance in Provinces of China

China began a pilot application for environmental pollution liability insurance in 2008. Although implementation situations vary substantially in different regions in China, it is appropriate to test how much contribution pollution insurance may make to environmental risk mitigation and other factors. Based on an analysis of pollutant emissions and investment completed in the treatment of industrial pollution, we find that pollution liability insurance, both compulsory and voluntary, does not work as expected in reducing environmental pollution. The value of this insurance mainly lies on the concern of the government for victims in environmental disasters. Considering the high administrative costs, it is not proper to push compulsory insurance across the country indiscriminately. Thus, this paper further classifies all 31 provinces in mainland China according to their economy and pollution characteristics and establishes guidelines for adopting pollution insurance for each province. The result shows that compulsory insurance is unnecessary for most provinces, while voluntary insurance can match their needs better.

Generalization of Tools for Internalization of Negative Externalities in the European Union: Conclusions for Ukraine

A comparative analysis of the tools of internalization of negative external. Based on the generalization and assessment of the possibilities of using the tools of internalization of negative externalities, the areas of application, as well as the strengths and weaknesses of direct regulation, economic (market) and institutional tools are identified. The tools of direct regulation are characterized, and it is found that they do not minimize economic costs and have high administrative costs. The economic (market) instruments of regulation are analyzed and it is revealed that in European practice such instruments as trade in permits (market instrument) and emission charges (Pig tax) are widely used. Institutional regulatory tools such as disclosure strategies and voluntary initiatives are considered and analyzed. It is substantiated that there is no universal tool that would provide full internalization of negative externalities. It is revealed that in modern conditions, the most successful solution will be the development and improvement of tools of direct state regulation of negative externalities in combination with economic (market) instruments, because both economic and market instruments can work effectively and purposefully only if environmental standards are established and observed. environmental quality. The characteristic of application of tools of internalization of negative external effects on an example of slag dumps is given.

Comparing Internet Experiences and Prosociality in Amazon Mechanical Turk and Population-Based Survey Samples

Given the high cost of traditional survey administration (postal mail, phone) and the limits of convenience samples such as university students, online samples offer a much welcomed alternative. Amazon Mechanical Turk (AMT) has been especially popular among academics for conducting surveys and experiments. Prior research has shown that AMT samples are not representative of the general population along some dimensions, but evidence suggests that these differences may not undermine the validity of AMT research. The authors revisit this comparison by analyzing responses to identical survey questions administered to both a U.S. national sample and AMT participants at the same time. The authors compare the two samples on sociodemographic factors, online experiences, and prosociality. The authors show that the two samples are different not just demographically but also regarding their online behaviors and standard survey measures of prosocial behaviors and attitudes. The authors discuss the implications of these findings for data collected on AMT.

Реальні та гіпотетичні ризики майбутнього накопичувального рівня пенсійного страхування в Україні

No decisive steps have been taken in Ukraine to introduce a cumulative level of pension provision. The significant number of risks is one of the reasons for this. The purpose of the article is to study the theoretical foundations of hypothetical and real risks of the cumulative level of the pension system in Ukraine, which is expected to be introduced. A number of methods were used in the study, including abstract-logical, methods of analysis and synthesis and comparative analysis. It is argued that the cumulative level of pension provision will be characterized by a number of real risks: organizational and managerial risk, risk of high administrative costs, risk of depreciation of pension savings, selective risk, and risk of insufficient contributions. Hypothetical risks include market volatility risk and criminal risk. The cumulative level of pension provision is significantly affected by the risk of depreciation of pension savings, because given the high inflation rate and devaluation of the national currency, one should not expect a decent level of pensions in the long term, even taking into account the investment component of the cumulative level. It has been established that the domestic legal framework does not specify a mechanism for protection against such a risk, which undermines credibility to the functioning of the entire cumulative component of the pension system. Selective risk and the risk of financial market volatility are closely related to financial market trends and, under adverse conditions, may manifest themselves in the investment component of pension savings. It has been determined that the mechanism for overcoming such risks has not been defined in regulatory legal acts yet. Jointly, these risks determine the lack of principal steps in the process of reforming the modern pension system. In the case of the introduction of the cumulative level of pension provision, a system should be provided to prevent the risks of depreciation of pension savings and selective risks. Further studies will address the mechanisms that can prevent or reduce selective risks and risks of depreciation of pension savings.

Targeting Trypanothione Reductase of Leishmanial major to Fight Against Cutaneous Leishmaniasis.

1.2-2.0 million cases of leishmaniasis occur annually throughout the world. The available drugs like Amphotericin B, antimonials and miltefosine are unable to fulfill the need due to less effectiveness, high toxicity, resistance, high cost and complex route of administration. Leishmania survives inside the macrophages through different evasion mechanisms; one of that is activation of its trypanothione reductase enzyme which neutralizes the reactive oxygen species generated inside the macrophages to kill the parasites. This enzyme is unique and absent in human, therefore in this study I targeted it for screening of new inhibitors to fight against leishmaniasis. Homology modeling of Leishmania major trypanothione reductase was performed using Phyre2 server. The homology based modelled protein was validated with PROCHECK analysis. Ligplot analysis was performed to predict the active residues inside the binding pocket. Further, virtual screening of ligand library containing 113 ligands from PubChem Bioassay was performed against the target using AutoDock Vina Tool. Top five ligands showed best binding affinity. The molecule having PubChem CID: 10553746 showed highest binding affinity of -11.3 kcal/mol. Over all this molecule showed highest binding affinity and moderate number of hydrogen bonds. Hopefully, this molecule will be able to block the activity of target enzyme, trypanothione reductase of Leishmania major effectively and may work as new molecules to fight against cutaneous leishmanaisis. This study will help the researchers to identify the new molecules which can block the activity of leishmanial-trypanothione reductase, a novel enzyme of trypanosomatids. These screened inhibitors may also be effective not only in leishmaniasis but also other trypanosomatid-mediated infectious diseases.

Locating Forced Migrants’ Resources: Residency Status and the Process of Family Reunification in Finland

This article investigates how forced migrants residing in Finland utilise different types of resources in their efforts to reunite with their families. The data includes 36 group and individual interviews (2018–2019) with 43 Iraqi, Afghan, Somali, and Ethiopian forced migrants holding residence permits in Finland, who were either seeking to reunite with their families, or had already brought their families to Finland, or had attempted but failed to achieve family reunification. The results show that a variety of resources are needed to navigate the bureaucracies involved in family reunification. Economic resources in one’s country of origin may be used to pay the high administrative and travel costs, as well as other fees required by government officials to obtain visas for family members. Cultural resources, such as education, are useful when one is trying to make sense of the complicated application process, or seeking work or educational opportunities in the new country. Different forms of social resources can be utilised to seek advice. However, the resources at the disposal of migrants are not the determining factor in attempts to successfully reunite with one’s family. Although they are important, the success of the reunification process depends more on one’s residency status and whether it allows family reunification without a high-income requirement.

Prior authorization as a utilization management tool for elective superficial venous procedures results in high administrative cost and low efficacy in reducing utilization

ObjectivePrior authorization (PA) is a process used by payers for safety and cost savings purposes, but it has received criticism for being time-consuming and costly because of administrative burden. Our study evaluated efficacy of PA applied to in-office lower extremity superficial venous procedures. MethodsAll in-office lower extremity venous procedures scheduled to be performed at our institution in 2017 were included in the study. Variables of interest were type of procedure, initial PA status (approved or denied), rationale for the decision, and final status after appeal. Cost analysis was performed using Centers for Medicare and Medicaid Services allowable rates to approximate billing and reimbursement data (proprietary) as well as calculated using industry averages. ResultsFor 2017, of 1959 procedures scheduled, 57.9% (n = 1134) required PA. Of these, only 6.1% (n = 69) received initial PA denial, and nearly 40% of the denials (n = 27) were overturned after appeal. Of the 42 denials that were upheld, 15 resulted in cancellations; the remainder were performed by patient self-pay (n = 11) or by the provider pro bono (n = 16). Overturned denials were a result of either submission of incomplete clinical data on initial PA request or insufficient documentation of clinical necessity. When Centers for Medicare and Medicaid Services allowable rates were applied for cost analysis, the denials resulted in <$60,000 payer savings. Administrative expenses totaled >$110,000 when industry standards were applied, which far exceeds any calculated payer savings using the same methods. The 15 denials resulting in procedure cancellations (1.3% of all PAs) could be considered a net savings to the health care system but only approximated a mere $30,000. ConclusionsOur study demonstrates that PA is not a cost-effective measure for utilization management of outpatient superficial venous procedures when surgeon practices are already well aligned with insurance guidelines. For these physicians and physician groups, the administrative cost associated with the PA process exceeds the savings seen by the insurance companies.

Does Government Punish Nonprofits for High Administrative Costs in Contracting Decisions?

As government financing of nonprofit organizations to deliver services and implement policies has become a common practice in the public administration landscape, the question of what factors affect government’s source selection has emerged as a significant one. Within this strand of research, how nonprofits’ administrative costs affect their receipt of government contracts is still not fully understood. This article explores that relationship using a large panel data set of U.S.-based international development nonprofits from 1967 to 2014. Different model specifications consistently demonstrate an inverted U-shaped relationship between a nonprofit’s level of administrative costs and its amount of government contracts. In particular, as a nonprofit’s level of administrative costs increases, its amount of government contracts will initially increase, but after its level of administrative costs reaches approximately 16% to 18% of total expenses, further increases in the nonprofit’s level of administrative costs will reduce its amount of government contracts. These findings have implications for both public and nonprofit management.

Self-adaptive resource allocation for cloud-based software services based on iterative QoS prediction model

Emerging cloud-based software services have proposed request for self-adaptive resource allocation that provides to dynamically adjust resources on demand. Traditional self-adaptive resource allocation methods are rule-driven that they combine expert knowledge with a separate set of management rules for each software, leading to high implementation complexity and administrative cost. Recent researches on self-adaptive resource allocation mainly focus on machine learning and control theory. However, machine learning techniques require plenty training data, which in many cases is insufficient and leads to low accuracy of QoS prediction model as well as the ineffectiveness of resource allocation, while resource allocation based on control theory needs a large number of iterations, resulting in a high overhead such as frequent virtual machine switches.This paper proposes a self-adaptive resource allocation method that is actually a framework composed of feedback loops, each of which goes through our designed iterative QoS prediction model and PSO-based runtime decision algorithm. In contrast to previous QoS prediction models which predict a QoS value once and for all, ours improves the predicted QoS value in iterations towards the best one. In the prediction, we first use the workload, the allocated resource, the real QoS value and an operation of resource allocation to produce a QoS value. Then we employ PSO-based runtime decision algorithm together with the predicted QoS value to determine future resource allocation operations. The loops iterate until the PSO-based algorithm suggests no further improvement over the current resource allocation. We evaluate our approach on RUBiS benchmark, illustrating that based on the same historical data, our method can achieve a better QoS prediction accuracy that is 15% higher than the current state of the art. Moreover, it is also shown the effectiveness of cloud application resource allocation is improved by roughly 5%–6%.

Social Parking: Applying the Citizens as Sensors Paradigm to Parking Guidance and Information

Nowadays, the problem of parking guidance information (PGI) is one of the great challenges of smart cities. Sensor networks have been traditionally used, but they sometimes constitute a high administrative cost. For this reason, this paper presents social parking, a system that is based on the citizens as sensors paradigm, where data are collected by users and are processed using data mining techniques. Moreover, an ontology is used to enable the standardization of information. This way, social parking is compatible with the FIWARE platform. A forecast algorithm was also designed and verified to estimate the number of free parking spots inside a parking lot. With this aim, we used public parking data from eight parking lots in the city of Zaragoza. Client applications allowed testing of all the functions of the parking system. These tests were carried out in three experimental parking lots in the city of Málaga.

A Bootstrap Simulation for comparison of Group Risk Plan and Multi-Peril Crop Insurance Policy

Agricultural insurance is one of the solutions for farmers to avoid risks such as climate change, pest, disease and price fall which increase the risk of crop failure. Indonesian Ministry of Agriculture (MoA) and Jasindo have been using subsidized Multi-Perils Crop Insurance (MPCI) and faced some disadvantages that mainly due to high risk moral hazard, adverse selection, and high administrative costs. Our research provides an alternative policy area yield index insurance known as Group Risk Plan (GRP) to handle this problem. To find homogeneous basis risk in GRP, the data was classified into two categories: up to and above two hectares. Bootstrapping approach was used to find MPCI and GRP indemnity amount for each term of harvesting period. In addition, both parametric estimation and goodness of fit test indicated appropriate distribution used by MPCI and GRP in each term of harvesting period as well. To compare the aggregate loss distribution, the conditional value at risk CV aR(X) measures the mean of excess loss exceeding V aR(X). It reflects how risky and measures the amount of money insurance company should retain. Simulations indicated that MPCI has greater CV aR(X) than GRP, which implies the higher likelihood of loss. The insurance company should have enough reserve for MPCI to cover that loss. On the other hand, the GRP policy that minimizes moral hazard and adverse selection thereby reduces administrative costs and offers potential to market at lower costs, may encourage farmers to do good farming practices that will result in the lower likelihood of loss. Therefore, GRP could be considered as an alternative crop insurance policy in Indonesia.

The effects of multi-track year-round education on the delivery of senior high school education in Ghana. Lessons from global MT-YRE systems

The debate on the effects of Multi Track Year-Round Education (MT-YRE) on educational outcomes remains unresolved in the conventional literature. Nevertheless, Ghana has introduced an MT-YRE in 400 schools to allow graduates from Junior High Schools, who for space constraints, would not have continued their formal educational journey, to enrol in Senior High Schools. The purpose of this study was to examine the prospects and challenges of the MT-YRE on educational outcomes and discuss their implications for educational policy in Ghana. The data used in the study were obtained through a review of literature from databases such as the Educational Resources Information Centre (ERIC), Ebsco, ProQuest and JSTOR and from grey sources such as institutional websites and online media publications. The results from a synthesis of the literature show that the MT-YRE has the prospects of increasing student enrolment while cutting down the cost of infrastructure provision. For instance, the literature indicates that student enrolment at the Senior High School level in Ghana has increased significantly with the introduction of the MT-YRE. However, other literature indicate that the MT-YRE affects educational outcomes negatively. It results in scheduling difficulties among families and denies students the opportunities to take summer jobs. A review of the Ghanaian MT-YRE reveals other challenges, which inlcude high administrative cost (employing more teachers) and poor academic performance of students (as a result of increased contact hours leading to behavioural problems caused by fatigue and boredom). The authors argue that poor academic performance among students is likely to defeat the government’s Free SHS policy. This is because parents are likely to pay higher fees to enrol their non-performing wards in remedial classes. The cost of the lost years for these students may be difficult to quantify. Following the challenges identified, there is the need for educational policy makers to strategically plan towards the development of technical and vocational education to help accommodate the increasing students’ enrolment. Finally, the progress of the MT-YRE should be carefully monitored and evaluated to guide future decision making.

Are farmers in Ethiopia ready to embrace cost-sharing agricultural extension approach?

PurposeThe purpose of this paper is to investigate perceptions of smallholder farmers toward the cost-sharing agricultural extension service provision.Design/methodology/approachThe study used data from a cross-sectional survey, key informants interviews and focused group discussions conducted on 384 farm households from six Kebeles of Eastern Ethiopia.FindingsThe authors find that flexibility and credibility, ability of development agents to address neglected aspects in agricultural production, and reaching diversified groups of farmers as the perceived advantages of the cost-sharing approach. Furthermore, improved knowledge and attitude, enhanced research–extension–farmer linkages, and improved food security and poverty reduction are found to be the three most important impact areas associated with the approach. On the contrary, poor economic status of farmers, high cost of administration and absence of a clear guideline/legislation are found to be the most important constraints. The authors find that increasing farmers’ awareness about the cost-sharing approach and preparing a clear definition of the form, modalities and principles of the cost-sharing extension approach can be a part of the practical solutions to overcome the challenges.Research limitations/implicationsThe current research is limited to the investigation of farmers’ perceptions toward paid extension services. The willingness to pay for extension services – using discrete choice experiments – is dealt with in another paper.Originality/valueThe first of its kind in the country, the paper tried to assess farmers’ readiness to try a new extension service delivery. The findings have important implications for policy makers and local level implementers of extension programs.

Reward‐Based Participant Management for Crowdsourcing Rainfall Monitoring: An Agent‐Based Model Simulation

AbstractCrowdsourcing incorporates common citizens as rich sources of data and is promising for environmental monitoring. In this paper, we propose and test the idea of incorporating incentives to crowdsourcing management for rainfall monitoring. Specifically, we model the allocation of incentives (quantitatively measurable and limited rewards) among crowdsourcing participants for a theoretical rainfall monitoring case. For this purpose, we develop an integrated model comprising a reward allocation component to represent the decision‐making process of a central manager, an agent‐based model to simulate the interactions between the manager and participants, and a rainfall simulation model to evaluate the effectiveness of various reward allocation policies. We simulate six reward allocation policies of varying levels of administrative cost, and consideration of participant and rainfall spatial heterogeneities. The results suggest the performance of each policy to improve with the reward budget and their spatial uniformity. Among the six policies tested, we find that the participant density weighted maximum participation policy yields the most accurate estimation of rainfall intensity due to its more explicit consideration of the spatial distribution of participants; however, this policy associates with a high administrative cost. This highlights the trade‐off between performance and cost in designing effective reward allocation policies. This paper provides a physical and behavior simulation modeling tool to study the feasibility and complexity of reward‐based participant management for crowdsourcing rainfall monitoring. The proposed crowdsourcing method is beneficial for a wide range of applications that require rainfall data with fine resolution, such as storm water management and water availability and biomass assessment for food and energy crops.