Incentive Mechanism Research Articles

Optimizing Transfer Pricing in Indonesia: An exploring of Tax Minimization, Tunneling incentive, and Audit Committee

Transfer pricing has become a crucial aspect of global business, especially for natural resource companies in Indonesia, which includes monitoring tax compliance, mitigating tax dispute risks, and maintaining corporate reputation due to its complex and high-priced commodities. This research aims to test and analyze the direct influence of tax minimization strategy, tunnelling incentive, and bonus mechanism on transfer pricing decisions. Meanwhile, the indirect effect involves the audit committee as a moderating factor to explore their influence on transfer pricing practices. The data used in this research was derived from the annual reports of natural resource sector companies listed on the Indonesia Stock Exchange from 2020 to 2022. A total of 185 companies used the purposive sampling method, resulting in a sample of 146 data analyzed using WarpPLS 8.0. According to the research results, tax minimization directly influences transfer pricing. In contrast, tunnelling incentives do not affect transfer pricing, and audit committees moderate the influence of bonus mechanisms on transfer pricing.

The impact of InsurTech on advancing sustainable specialty agricultural product insurance in China

The development of specialized agricultural product insurance is crucial for perfecting China’s agricultural insurance system and promoting rural revitalization. Currently, specialized agricultural product insurance in China faces numerous challenges in key areas such as rate determination, risk assessment, and loss adjustment, which have become bottlenecks restricting its sustainable development. This paper explores how insurance technology (InsurTech) can enhance the ecological system of specialized agricultural product insurance through technological innovation and overcome these industry pain points. It elaborates on how InsurTech can enhance farmers’ interactive experience and satisfaction, improve the management efficiency of insurance companies, strengthen government regulation, and promote the sustainable development of the insurance business. Moreover, this study deeply analyzes the practical barriers in implementing InsurTech and proposes corresponding strategies, including establishing innovative incentive mechanisms, improving relevant policies and regulations, building a multidimensional data platform to achieve data interoperability, and strengthening the construction of digital rural infrastructure to enhance farmers’ technological literacy, thereby advancing the sustainable development of InsurTech in specialized agricultural product insurance.

Fine‐tuning of artificial intelligence managers' logic in a supply chain with competing retailers

AbstractToday, with the advance of artificial intelligence, companies in the real world are using AI as managers to make operational decisions, who can respond quickly to market shocks and whose logic can be fine‐tuned to programmed pessimism/optimism, that is, underestimating/overestimating the market. The introduction of AI managers poses new challenges to supply chain management, and how to manage AI managers warrants further exploration. We investigate the optimal AI manager fine‐tuning strategies in a supply chain consisting of one manufacturer and two competing retailers, each operated by an AI manager in the face of an uncertain market shock. We establish the manufacturer–retailer AI manager fine‐tuning game, where the manufacturer and two retailers endogenously decide whether to fine‐tune their AI managers' logic. The market may suffer an uncertain shock, and once the shock occurs, the AI managers' logic settings and price decisions can be quickly adjusted. We find that the manufacturer would never fine‐tune the AI manager, while the retailers may fine‐tune their AI managers to programmed optimism. Notably, AI manager's fine‐tunability only benefits the retailers and harms the manufacturer, entire supply chain, consumers, and social welfare. To make AI manager's fine‐tunability beneficial to all participants, that is, to reach a win–win–win situation, we design two incentive mechanisms, retailer pessimism incentive mechanism and mutual pessimism incentive mechanism (MPIM), where MPIM can lead to the win–win–win situation. Further, we endogenize the compensation, endogenous retailer pessimism compensation and endogenous mutual pessimism compensation, both achieving the win–win–win outcome. We also make several extensions and provide suggestions for supply chain firms to fine‐tune their AI managers' logic.

Tax Compliance Non-Prosecution: Logical Foundations, Application Review, and Integrated Pathways—A Perspective from the Greater Bay Area in China

Compliance non-prosecution serves as a criminal incentive mechanism aimed at encouraging private enterprises to strengthen internal management and prevent criminal conduct, representing a proactive response to modernizing crime governance centered on cooperative justice. As a significant economic engine, the Greater Bay Area in China would benefit from an integrated tax compliance criminal system to support tax compliance within enterprises involved in legal disputes, promoting their sustainable development. Given the unique characteristics of tax-related cases, the Greater Bay Area should establish a tax compliance criminal procedure led jointly by legal and prosecutorial authorities. This procedure should categorize cases by severity into discretionary non-prosecution and conditional non-prosecution, thus creating a unified standard that integrates governance and prevention in tax compliance rectification. Additionally, an interconnected tax compliance cooperation mechanism should be established within the Greater Bay Area. Such unified regulations on tax compliance non-prosecution would strengthen collaboration in tax enforcement, enhance the standardization, fairness, and transparency of criminal tax compliance procedures, and ultimately improve both enforcement efficiency and judicial authority.

Recent Developments in China’s Coastal Zone Management Legislation: An Appraisal

The coastal zone has become one of the areas with the most serious environmental problems and has concentrated conflicts between land development and protection in China. It is the choice of many countries to regulate and balance coastal resource utilization and environmental protection by legal means. However, China has not yet issued comprehensive legislation on coastal zone management at the national level, while some coastal provinces and cities have enacted local legislation. This study first systematically reviews China’s coastal zone management legislation at both the national and local levels, paying particular attention to those laws enacted in the past decade and subsequently looks into the core regimes adopted in China’s coastal zone management. From the perspective of achievements, the legislative framework of China’s coastal zone management legislation is relatively complete, with increasingly diverse legislative subjects and increasingly refined legal provisions, providing a strong normative basis for coastal zone management. Nevertheless, existing legislation also faces challenges such as insufficient systematization, inefficient coordination mechanisms and incomplete legislative content which impact the practical effectiveness of coastal zone management legislation. Based on China’s national conditions, this study proposes two suggestions for future improvements. On one hand, in terms of legislative principles, coastal zone legislation should embody a concept of integrated management and establish substantive principles of systematization, protection priority, prevention and precaution, justice and equality while following the principle of non-contradiction in legislative form. On the other hand, in terms of legislative content, the institutional system of China’s coastal zone management legislation should be further improved in four aspects, namely, optimizing the coordination mechanisms, introducing incentive mechanisms, strengthening public participation, and improving climate change countermeasures.

Bridging the Gap: An Algorithmic Framework for Vehicular Crowdsensing

In this paper, we investigate whether greedy algorithms, traditionally used for pedestrian-based crowdsensing, remain effective in the context of vehicular crowdsensing (VCS). Vehicular crowdsensing leverages vehicles equipped with sensors to gather and transmit data to address several urban challenges. Despite its potential, VCS faces issues with user engagement due to inadequate incentives and privacy concerns. In this paper, we use a dynamic incentive mechanism based on a recurrent reverse auction model, incorporating vehicular mobility patterns and realistic urban scenarios using the Simulation of Urban Mobility (SUMO) traffic simulator and OpenStreetMap (OSM). By selecting a representative subset of vehicles based on their locations within a fixed budget, our mechanism aims to improve coverage and reduce data redundancy. We evaluate the applicability of successful participatory sensing approaches designed for pedestrian data and demonstrate their limitations when applied to VCS. This research provides insights into adapting greedy algorithms for the particular dynamics of vehicular crowdsensing.

Comparative Analysis of Incentive Mechanism of Human Resource Management in Public Management and Enterprise Management

With the progress of society, the market economic system continues to develop and improve, the market environment is becoming more and more complex, and the market competition is becoming more and fiercer. Human resource management plays an increasingly prominent role in public management and enterprise management. As an important part of human resource management, incentive mechanism affects the flow of talents, work efficiency, enthusiasm, work quality and other aspects. How to improve the incentive mechanism to promote the healthy development of employees and achieve the organizational goals has become a practical problem that public organizations and enterprises must solve. This paper will focus on analyzing the differences and commonalities between the incentive mechanisms of public management and enterprise management, and then propose feasible innovation strategies and implementation paths for the incentive mechanisms of public management and enterprise management according to China's actual situation and combined with international advanced experience The purpose of this paper is to improve the two internal structure management and work efficiency and quality to meet the new requirements of future social and economic development.

A prospective approach to the optimal deployment of a hydrogen supply chain for sustainable mobility in island territories: Application to Corsica

This study develops a framework for designing hydrogen supply chains (HSC) in island territories using Mixed Integer Linear Programming (MILP) with a multi-period approach. The framework minimizes system costs, greenhouse gas emissions, and a risk-based index. Corsica is used as a case study, with a Geographic Information System (GIS) identifying hydrogen demand regions and potential sites for production, storage, and distribution. The results provide an optimal HSC configuration for 2050, specifying the size, location, and technology while accounting for techno-economic factors. This work integrates the unique geographical characteristics of islands using a GIS-based approach, incorporates technology readiness levels, and utilizes renewable electricity from neighboring regions. The model proposes decentralized configurations that avoid hydrogen transport between grids, achieving a levelized cost of hydrogen (LCOH) of €8.54/kg. This approach offers insight into future options and incentive mechanisms to support the development of hydrogen economies in isolated territories.

Diffusion-Model-Based Incentive Mechanism With Prospect Theory for Edge AIGC Services in 6G IoT

Diffusion-Model-Based Incentive Mechanism With Prospect Theory for Edge AIGC Services in 6G IoT

A Privacy-Preserving Incentive Mechanism for Mobile Crowdsensing Based on Blockchain

A Privacy-Preserving Incentive Mechanism for Mobile Crowdsensing Based on Blockchain

A Novel Incentive Mechanism for Federated Learning Over Wireless Communications

A Novel Incentive Mechanism for Federated Learning Over Wireless Communications

A novel blockchain-based system for improving information integrity in building projects from the perspective of building energy performance

Global population growth has long been intertwined with environmental concerns and sustainable development. The building sector, a significant energy consumer worldwide, contributes substantially to total energy consumption and greenhouse gas emissions. With the projected global population projected to reach 9.7 billion by 2050, building energy consumption is expected to rise continuously, emphasizing the need to optimize energy performance for environmental sustainability. Despite efforts by many countries to formulate energy conservation objectives and strategies, empirical evidence reveals a substantial disparity between designed and actual building energy consumption, known as the building energy performance gap (BEPG). This gap poses a significant challenge to energy conservation efforts, and the lack of information integrity is a significant contributor to this gap. To address the challenge of inadequate information integrity in building energy projects, this research proposes an innovative solution based on blockchain technology. By utilizing blockchain's decentralized, transparent, and tamper-resistant nature, the proposed model aims to enhance information transmission mechanisms among stakeholders. Ten key energy-related stakeholders and various information flows within building projects are identified. Based on this, an exploratory architectural information management model incorporating blockchain technology is developed. The model features functionalities such as data recording, retrieval, transmission, and incentive mechanisms to ensure data immutability and reliable access security. Through a case study, the model's performance is evaluated in terms of storage cost, latency, and privacy, demonstrating significant time savings in uploading and transferring files. The proposed blockchain-based model offers a feasible solution to the challenges of inadequate information integrity in building energy projects, promoting collaboration and accurate information transmission. This model contributes to improving project outcomes and advancing sustainable development in the construction industry.

The Power of Innovation: Entrepreneurship Ecosystem, Components, Research and Start-Up Approaches and the Development Process of the Entrepreneurship Ecosystem in Turkey

This article, under the title "The Power of Innovation: Entrepreneurship Ecosystem, Components, Research and Start-up Approaches and the Development Process of the Entrepreneurship Ecosystem in Turkey", examines how Turkey's dynamic entrepreneurship environment is shaped by innovation and the important components in this process. While entrepreneurship has a critical role in economic development and social transformation, innovation stands out as the main driving force of this process. First of all, Turkey's young and educated population, increasing digitalization and access to technology strengthen the entrepreneurial culture and create new business opportunities. In the article, the basic elements of the innovation ecosystem in Turkey, namely the interactions between universities, public institutions, the private sector and entrepreneurs, are discussed in detail. Additionally, the difficulties faced by entrepreneurs in Turkey are analyzed through factors such as limited financial resources, inadequate mentoring and training opportunities. In this context, the effects of the state's innovation strategies, incentive mechanisms and entrepreneurship support programs are examined. For example, the contributions of the supports provided by organizations such as KOSGEB and TÜBİTAK to the realization of entrepreneurs' projects are emphasized. In the article, the contribution of international collaborations and foreign investments to Turkey's innovation ecosystem is discussed, thus focusing on its competitiveness potential in the global market. Additionally, successful domestic enterprise examples are supported by concrete data showing how innovation and entrepreneurship create synergy. As a result, the development of the entrepreneurship ecosystem in Turkey is directly linked to the power of innovation. In order to create a sustainable innovation environment, the need for continuous support, training and policy development comes to the fore. This article aims to provide readers with a comprehensive perspective by presenting the paths and strategies to be followed to maximize Turkey's entrepreneurial potential.

Experimental examination of the incentive and sorting effects of pay-for-performance on creative performance.

There is long-standing debate over whether pay-for-performance (PFP) enhances or undermines creative performance. Traditional motivation and revised creativity theories suggest that PFP and intrinsic task interest combine additively to enhance creative performance, whereas cognitive evaluation theory and self-determination theory posit that PFP undermines task interest and thus intrinsic motivation and creative performance. To help resolve these conflicting predictions and provide a more comprehensive understanding of how and when PFP influences creative performance, this study incorporates both the incentive and sorting mechanisms of PFP, varying strengths of PFP, and task autonomy as a key moderator. A novel laboratory experiment was designed to capture key elements of workplace contexts, including in the design of the creative tasks, PFP strengths based on benchmarking of U.S. companies' practices, and allowing subjects to sort into different pay conditions, consistent with the opportunity for mobility in the labor market. The results showed that, through both incentive and sorting mechanisms, high PFP intensity enhanced creative performance more so than low PFP intensity, and both were superior to fixed pay. Importantly, task autonomy positively moderated the PFP-creative performance relationship, such that creative performance under PFP increased much more under higher task autonomy. Finally, the difference in creative performance under PFP versus fixed pay was greater when subjects were allowed to sort into their preferred pay conditions than when they worked only under randomly assigned pay conditions. Theoretical and practical implications and future research directions are discussed. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Dilemmas and Governance Strategies in the Implementation of the Modern Apprenticeship System in Chinese Vocational Colleges: A Perspective from Principal-Agent Theory

As China's industrial economy transitions towards high-quality development, the demand for highly skilled technical personnel has surged. The modern apprenticeship system, an important mechanism for deepening collaboration between educational institutions and enterprises, has been widely promoted within vocational colleges. However, nearly a decade into its implementation, this system faces challenges such as insufficient engagement from enterprises, loose relationships between schools and businesses, and a lack of assessment and feedback mechanisms. These issues have led to suboptimal outcomes in talent development. This paper innovatively applies principal-agent theory to expose conflicts in value demands, adverse selection, and moral hazards within the multifaceted principal-agent relationships among vocational colleges, enterprises, and the government. It proposes governance strategies that involve multi-stakeholder participation in policy-making, the establishment of qualification entry systems for cooperative enterprises, and the improvement of supervision and incentive mechanisms. These strategies aim to resolve conflicts and enhance cooperation efficiency, thereby providing robust support for the effective implementation of the modern apprenticeship system in vocational colleges.

Evaluation of crop structure optimization policy quantitatively and future directions in China: a PMC-Index model approach

Developing policies to optimize the planting structure is essential to ensure an adequate supply of agricultural products and guarantee food security. However, the rationality and comprehensiveness of China’s cropping structure optimization policies require scientific evaluation. Therefore, this research established an evaluation index system for China’s planting structure optimization policies using text mining and the PMC-Index model to evaluate eight agricultural cropping structure optimization policies in China since 2003. The results showed that: (1) The PMC-Index showed a general upward trend across the eight policies, with scores ranging from 4.88 to 6.61. (2) Seven of the eight policies were deemed acceptable, while one was classified as low. (3) The Chinese government has long focused on optimizing the structure of agricultural cultivation, and relevant policies have made significant progress in terms of logical connotation and long-term feasibility. However, there is still room for improvement in enhancing regulatory effectiveness and strengthening interdepartmental collaboration. It is recommended that the government develop more flexible and diverse incentive mechanisms, strengthen interdepartmental coordination, expand policy coverage, enhance the comprehensiveness of policy functions, and elevate support for agricultural technology.

On the Application of Traditional Chinese Medicine Culture in Ideological and Political Education

Purpose: By analyzing the historical origin and value of Traditional Chinese medicine culture, the article studies the application of Traditional Chinese medicine culture in postgraduate students' ideological and political education, with a view to promoting the deeper inheritance and development of Traditional Chinese medicine culture. Methods: The article explains the importance and feasibility of Traditional Chinese medicine culture in postgraduate students' ideological and political education, and the difficulties in the application of ideological and political education, on the basis of which it proposes to improve the civic system of the course, improve the quality of professional teachers of Traditional Chinese medicine culture and civic teachers, and establish a collaborative educating mechanism with the help of the resource-sharing platform, so as to deepen the postgraduates' understanding of Traditional Chinese medicine culture in the ideological and political education course. Conclusion: Graduate students' ideological and political education courses provide a good platform for the dissemination and development of Traditional Chinese medicine culture, and the two are complementary to each other. By establishing classroom evaluation and incentive mechanisms, the substantive integration of both sides can be better promoted.

Achieving Panoramic View Coverage in Visual Mobile Crowd-Sensing Networks for Emergency Monitoring Applications

Visual Mobile Crowd-Sensing(VMCS) collects photos by leveraging camera embedded in mobile users’ phones. There are two important issues in VMCS: determining whether photos collected by mobile users meet the requirements or not and designing an appropriate mechanism to attract mobile users to provide photos that meet the requirements. In this paper, we address those two issues when VMCS is applied to emergency monitoring applications. We first model an emergency scene as a disk region and define a coverage angle metric that quantifies the coverage ratio provided by each photo, and then formulate Maximize Coverage Angle under a Limited Budget(MCALB) problem. The goal of this paper is to recruit mobile users to provide panoramic view coverage for a disk while the total reward paid to participants does not exceed the budget. In our solution, we first propose a Coverage Angle Computation (CAC) algorithm to calculate the coverage angle of each uploaded photo. Then two incentive mechanisms: Guidance based Incentive Mechanism (GIM) and Coverage Prediction Incentive Mechanism (CPIM) are designed to encourage mobile users to upload photos with coverage angle that are not provided by other mobile users. Finally, we design a mobile app called I-share in android system to implement system. Meanwhile, we have recruited students to install I-share and simulated the information interaction between mobile users and server. We have conducted experiments by using I-share without/with embedded CAC algorithm to validate the efficiency of two incentive mechanisms. The experimental results demonstrate that our proposed incentive mechanisms effectively attract mobile users to provide panoramic view coverage of emergency scenes when the budget allows. Additionally, the CPIM outperforms the GIM, offering a higher coverage ratio with lower rewards.

Behavioral incentives on pay-for-performance schemes in primary health care: a scoping review

Abstract Background Incentivizing healthcare professionals through pay-for-performance (P4P) schemes has become an essential strategy to enhance healthcare quality and efficiency. In Portugal, a P4P framework was put in place in Primary Health Care (PHC). Understanding how these incentives influence healthcare delivery is crucial for optimizing P4P effectiveness. Objectives This scoping review aims to compare the impacts of intrinsic and extrinsic incentives of P4P schemes within PHC teams. Methods We are conducting a comprehensive scoping review following the PRISMA-ScR guidelines. The databases PubMed/MEDLINE, Scopus, Web of Science, and PsycINFO are being searched to identify experimental and quasi-experimental studies. Eligible studies focused on PHC providers organized in teams, examining the role of intrinsic and extrinsic incentives under both public and private healthcare settings. Results Preliminary findings include a Dutch study demonstrating significant improvements in adherence to prescribing guidelines through electronic health records based P4P indicator. In Ethiopia, performance-based non-financial incentives led to enhanced data quality and evidence utilization among health workers. Conversely, a study from Burkina Faso highlighted mixed results in antenatal care quality improvement despite incentive implementation. In Scotland, studies on the removal of financial incentives indicated potential declines in certain quality care metrics, suggesting the complexities involved in the direct and indirect effects of incentive withdrawal. Conclusions The preliminary evidence indicates that both intrinsic and extrinsic incentives can significantly impact the effectiveness of P4P schemes, though the nature and magnitude of these impacts vary considerably. The findings underscore the necessity of a nuanced approach to designing and implementing incentive mechanisms in PHC to foster sustainable improvements in healthcare quality. Key messages • Intrinsic and extrinsic incentives significantly influence P4P scheme effectiveness in PHC. • Designing P4P incentives requires nuanced consideration of varying impacts on healthcare quality.

Exploring the Association Between Artificial Intelligence Management and Green Innovation: Expanding the Research Field for Sustainable Outcomes

Green innovation is essential for achieving sustainable development goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production), as it fosters environmental and social benefits while also creating new economic opportunities. Despite previous studies actively conducting empirical analyses on green innovation, research on guiding the green innovation process through artificial intelligence remains scarce. This study aims to explore key variables that affect green innovation, thereby promoting the sustainable development of organizations, and to investigate the incentive mechanisms behind it. By uncovering the internal and external factors that drive green innovation and their interactions, we can better understand and optimize the process of fostering green innovation. Unlike previous studies, this research not only explores variables and verifies main effects but also provides and validates a research model related to the occurrence of green innovation. Additionally, this study determines the extent to which artificial intelligence management influences green innovation through knowledge sharing and examines whether an innovative culture moderates the impact of artificial intelligence management and knowledge sharing on green innovation, as well as whether it moderates the mediating effect of knowledge sharing within the model. Therefore, this study collected data from 331 adult employees of SMEs across 23 provinces, cities, and districts in China and conducted empirical analyses, including confirmatory factor analysis (CFA) and reliability analysis. The results indicate that artificial intelligence management directly affects green innovation and indirectly affects it through the partial mediating role of knowledge sharing. Furthermore, an innovative culture significantly moderates the mediating role of knowledge sharing between artificial intelligence management and green innovation. In exploring the variables of green innovation, this study established an adjusted mediating model and verified its significance. In summary, the causal relationship between artificial intelligence management and green innovation, as demonstrated through this process, contributes to the expansion of the research field and the advancement of SDGs, specifically Goals 9 and 12. The study’s findings highlight the importance of integrating artificial intelligence management to enhance green innovation, which is vital for the sustainable development and economic growth outlined in the SDGs.