Market Cost Research Articles

Scenario-oriented multi-area joint market clearing of energy and reserve under uncertainty

The increasing uncertain renewable generations throughout the entire interconnection call for a tighter coordination of different local system operators (SOs) beyond their independent operations. In this paper, the multi-area joint market clearing of energy and reserve is studied on the basis of Generalized Coordinated Transaction Scheduling (GCTS), which can achieve the optimal dispatch asymptotically with interface bids from market participants. In the proposed model, possible outages and load/renewable forecast errors in the interconnection are modeled as several non-base scenarios in addition to the nominal operation, while nominal energy interchange and reserve coordination for possible non-base scenarios between different areas are endogenously scheduled by procuring energy/reserve interface bids between their boundary buses, leading to the minimized expected market cost among all areas. Based on the proposed model, marginal prices of internal energy, reserve, and external energy/reserve interface bids are derived. Using these prices, internal resources are settled by the corresponding local SO, while external interface bids are jointly settled by all SOs and the tie-line operator (TO). We prove that in expectation, the merchandise surplus of (i) any local SO and (ii) the TO is equal to the congestion rent of (i) internal lines and (ii) tie-lines, respectively. Meanwhile, incentive compatibilities of market participants are also guaranteed. These findings are validated in numerical simulations.

Pricing the Biological Clock: The Marriage Market Costs of Aging to Women

Pricing the Biological Clock: The Marriage Market Costs of Aging to Women

Carbon Reduction Incentives under Multi-Market Interactions: Supply Chain Vertical Cooperation Perspective

The greening trend in consumer markets and the marketization and financialization of carbon emission rights have begun to revitalize carbon assets. However, solitary efforts and the spillover of environmental protection effects still hamper enterprises’ enthusiasm for carbon emission reduction. To tackle this challenge, two vertical cooperation mechanisms, cost cooperation and alliance cooperation, are proposed. The mathematical models and solutions are developed for both of the two mechanisms, and their values and applicability are explored, respectively. In addition, the impact of fluctuations in consumer markets, financial markets, and carbon markets on cooperation is examined. The results show that both cooperation models effectively motivate enterprises to enhance carbon reduction and boost market demand. However, cost cooperation may result in inflated product prices and even weaken the profitability of the supply chain. In contrast, alliance cooperation can enhance product price performance and effectively increase supply chain profits. Concerning environmental performance, the initial market is better suited for alliance cooperation, whereas cost cooperation fits the mid-to-late market. The higher financing costs of the financial market and the trading price of the carbon market will strengthen the applicability of cost cooperation. This study offers managerial insights for collaborative decision-making in the context of a multi-market cross-section.

Seller promotion and competition on decentralized two-sided platforms

PurposeThis paper aims to explore the promotion decisions of heterogeneous sellers on a decentralized platform under competitive conditions and analyze how seller behaviors impact platform profit, seller revenue, buyer surplus and social welfare.Design/methodology/approachThis paper considers a Cournot model consisting of a platform charging a commission rate and two sellers with different conversion rates and browsing costs. Promotion efforts by sellers can increase traffic, but they also incur promotion costs for sellers. The sellers decide on promotion effort by weighing these two effects. The authors also explore the equilibrium when the platform charges a fixed usage fee.FindingsThe seller’s profit improves as its conversion rate increases and worsens as browsing costs increase. Also, increasing the commission rate charged by the platform makes the seller invest less in promotional efforts. Therefore, the platform must consider this trade-off to determine an optimal rate. The analysis shows that the seller with a high conversion rate and high browsing cost plays a greater role in generating more overall revenue. When the market favors such a seller, the platform tends to charge less in order not to impair its profitability.Originality/valueThis paper incorporates conversion rate, buyer’s browsing cost, unit promotion cost and the fee charged by the platform into the model to study sellers’ promotion decisions on decentralized platforms.

Analysis and Mitigation of Harmonics for a Wastewater Treatment Plant Electrical System

Power quality has become a pressing issue that demands solutions as power electronic equipment has been increasingly used in industrial sectors. One critical problem is how to mitigate harmful harmonics generated by the power electronic equipment. This study investigates harmonic distortion issues in a wastewater treatment plant to verify compliance with IEEE standard 519 using simulation software ETAP and realistic data from the plant. Harmonic quantification shows that the plant harmonic situation violates IEEE Standard 519 where harmonic levels exceed its voltage and current limits. Different methods were used to mitigate the harmonic situation where the core is using passive harmonic filters. It is found that the biggest contributor to the harmonic distortion is the system variable frequency drives. Using high-pulse variable frequency drives, such as 18-pulse, is proven to be beneficial for harmonic reduction. Further, installing passive harmonic filters in appropriate locations helps lower voltage and current harmonics to meet IEEE Std. 519 limits. However, adding a passive harmonic filter higher up the power distribution or adding passive filters to the feeder buses is not effective in lowering the Total Harmonic Distortion (THD) of the system. This would have the drawback of increasing the rating of the system bus voltages. Other findings include a lack of medium voltage passive filters on the market and high costs. The study contributes some insight understanding, experience, and methods for engineers when developing solutions for controlling harmonics in similar plants or industrial applications.

INFLIXIMAB MARKET SHARE AND ASSOCIATED COST SAVINGS FOLLOWING BIOSIMILAR MARKET ENTRY

Abstract BACKGROUND Biologic medications have transformed treatment for autoimmune conditions, including inflammatory bowel disease (IBD), but have also contributed to rising healthcare expenditures in the United States (US). Biosimilars, which are highly similar in safety and efficacy to the originator biologic, were introduced to create competition and reduce cost. Limited studies exist evaluating the impact biosimilars have had on biologic market share and cost savings. The objective of this study was to evaluate the impact infliximab biosimilars have had on the cost and market share of the infliximab originator product. METHODS Infliximab claims were reviewed and analyzed using the Merative MarketScan Commercial Claims and Encounters Database. Using only outpatient claims, both the infliximab originator and biosimilars were identified using Current Procedural Terminology codes from January 1, 2015, to December 31, 2021. Patients with commercial insurance, ages 0 to 64 years, and receiving infliximab for any indication were included. The Medical Care Consumer Price Index was used to adjust for inflation to December 2021 dollars. Outcomes of interest included market share of all infliximab products, cost per infliximab infusion, and cost per vial (one vial=100 mg) of the medication. RESULTS There were 471,748 claims for infliximab infusions that met our inclusion criteria, with 42,100 unique patients, 55% female, and a median age of 40 (inter-quartile range (IQR) 26 – 52) years old at the time of medication initiation. Indications for infliximab products included IBD (67%), rheumatoid arthrtiis (18%), psoriasis (9%), ankylosing spondylitis (5%), other (4%), with some patients receiving infliximab for multiple indications. Utilization of infliximab biosimilars increased over time, reaching the highest utilization in December 2021, accounting for 24% of the market share. The median cost of the infliximab originator peaked at $1,491 per vial in December 2017, 13 months after market entry of the first biosimilar (infliximab-dyyb). The cost of the infliximab originator then decreased by 45% over time, reaching a low of $821 per vial in December 2021. Had infliximab biosimilars not been introduced to the market, the projected cost of the infliximab originator in December 2021 would have increased by 20% to $1793 per vial. Thus, infliximab biosimilars contributed to a theoretical decrease of 55% in the cost of infliximab originator during the time period studied. CONCLUSIONS The market share of infliximab biosimilars in the US has steadily increased since their introduction in 2016. The competition of infliximab biosimilars has contributed to the decrease in cost of both the infliximab originator and biosimilar products. Future studies are needed to determine if patients are seeing an out-of-pocket savings because of biosimilar introduction.

Financial Management Risk and Legal Risks Analysis: Take Pfizer as an Example

With the continuous growth of the global biotechnology and vaccine industry, more and more companies are joining in. Risk assessment in the field of biopharmaceuticals has drawn the attention of the whole society. There are lots of factors such as market competition, government intervention, cost increases, product safety, and breaking laws and rules, resulting in an increase in the company's financial risk. Facing these challenges, this research is based on overall analysis and searching for company data, by adopting the company's financial risk management calculation method to compare the selected companies, such as market risk-return rate, market risk-free return rate, weighted average capital cost, and so on. This research has found that Pfizer has a higher risk compared to other companies but the challenges and opportunities coexist by raising legal awareness, improving management measures, and other means to reduce risks. Its future development prospects are still considerable. The following is a multidimensional financial risk analysis of Pfizer Company.

Developing strategies to retain organizational insurers using a clustering technique: Evidence from the insurance industry

Formulating strategies to maintain policyholders is one of the main challenges for most insurance companies in Iran. The purpose of this article is to help marketing strategists of insurance companies predict insurees' churn and develop insurees retention strategies. Since the cost of maintaining an insurance policyholder is approximately one-eighth of the cost of attracting new ones, predicting their churn can help insurance companies adopt proper strategies in advance, which will definitely lead to saving marketing costs and maintaining the insurer's portfolio. Accordingly, the main question of this research is how to classify organizational insurees with the help of the clustering technique. This research is conducted in both qualitative and quantitative phases. In the qualitative phase, by conducting a semi-structured interview (interview protocol) with 15 experts in the insurance industry, the influential factors on policyholders' churn are identified. Then, based on the factors identified in the research literature and comparing them with the interview results, eight main factors are finalized. In the quantitative phase, in order to cluster the organizational insurees, 120 samples from the Iran Insurance Company are selected, and k-means is applied for clustering. Organizational insurees are divided into two groups according to the desired indicators. Using the results of clustering, insurees are divided into four groups, and effective marketing strategies are developed for each group. According to the results, the variable “health care insurance price” has the most effective role in separating the clusters at an error level of <0.01, and on the contrary, the variable “liability insurance amount” has the least important role at an error level of <0.978.

Marketing management of onion seed production

The present study titled ‘Marketing management of onion seed production’ is based on a sample of 90 onion seed growers drawn from Shrigonda, Parner and Nagar tehsils of Ahmednagar district in Maharashtra. The primary data was collected through a survey and pretested questionnaire for the agriculture year 2021–22. The analysis was completed using data gathered from market intermediaries by calculating marketing cost, marketing margin, marketing efficiency, price spread and producer’s share in consumer rupee. Production and disposal patterns of onion seed showed that 90.43 per cent of the produce was marketed. The total amount of onion seed available for sale was 255.18 kg, with 191.54 kg of onion seed sold through channel I, this included Producer  Consumer and was the most efficient method for onion seed distribution. Channel II, included Producer  Wholesaler Retailer  Consumer and accounted the sale of 63.64 kg of total onion seed production. The marketing cost for channel-II was 10.60 per kg followed by channel-I 1.09 per kg. The average per kg price spread for onion seed was 1.09 and 606.37 for Channel I and Channel II, respectively. The marketing efficiency for channel II was 3.

Clustering Menggunakan Algoritma K-Medoids Untuk Menentukan Strategi Promosi Sekolah Tinggi Teknologi Ronggolawe Cepu

Efforts to create an effective and efficient marketing management strategy require a detailed and objective understanding of the market in which they operate. In analyzing this problem, the field of marketing management often overlaps the field of strategic planning. Marketing strategy consists of making decisions about the company's marketing costs, marketing mix, and marketing location. Marketing management must decide what costs need to be spent on marketing and how to allocate the entire marketing budget to various tools in the marketing mix. New student data in the Cluster using the K-medoids Algorithm method with the help of Rapid Minner, as well as knowing the level of correlation with the Davies Bouldin Index (DBI). The results of this research are from 118 data, using 2 clusters produces 0 clusters of 72 and 1 cluster of 46 and 3 clusters produce 0 clusters with 72 members, 1 cluster with 3 members and 2 clusters with 43 members. The DBI value with 2 clusters is 1.04 and 3 clusters is 1.01.

The Practice Of Strategic Management Accounting In Public Sector Indonesia

Market orientation, cost leadership strategies, strategic management accounting practices, competitor accounting, and customer accounting of village-owned enterprises in Indonesia were the focus of this study's effort to identify empirical evidence of a causal link between them. Village-owned businesses in Indonesia and the role manager of those businesses are the subjects of this quantitative study. Applying SMA practice-competitor Accounting and SMA practice-customer Accounting in supported Village Owned Enterprises in Indonesia is positively impacted by market orientation and cost leadership strategies. This paper offers empirical proof that SMA Practice-Customer Accounting and SMA Practice-Competitor Accounting have been created and implemented in Indonesian village-owned businesses, with implications for theory. These findings corroborate the contingent hypothesis, which holds no universally applicable rules.

Financial Justification for the Use of Innovative Digital Marketing Tools

This article presents a comprehensive study aimed at analysing the impact of innovative digital marketing tools on the promotion of dairy products. This study is relevant because of the rapid dynamics of the digital environment and the need for enterprises to adapt to new marketing trends. The article investigates the feasibility of using innovative digital marketing tools in accordance with the segments of the target audience on the basis of the definition of their values. The main problem is the lack of scientific justification for the choice of innovative digital marketing tools for potential audiences, as well as the analysis of the feasibility of digital marketing costs. The hypothesis of the study is that, on the basis of the analysis of the values of consumer groups, as well as the analysis of the feasibility of marketing costs, it is possible to select the most relevant innovative digital marketing tools. The main purpose of the study is to justify the use of innovative digital marketing tools on the basis of consumer values, as well as to justify the feasibility of digital marketing costs on the basis of the analysis of financial statements. The methodology included cluster analysis of the target audience and analysis of financial ratios. One of the key stages of the study was the cluster analysis of the target audience, which allowed us to identify different consumer segments with different needs and values. Three clusters of consumer audiences in the dairy industry were identified, the corresponding values of customers in the clusters were substantiated, and recommendations for identifying innovative digital marketing tools were proposed, taking into account the feasibility of the marketing costs of the enterprise. The key coefficients for making informed management decisions on the feasibility of digital marketing costs are allocated. By analysing these coefficients, an enterprise can assess its financial capabilities and make a decision on how to invest in innovative digital marketing tools. This allows enterprises to make informed decisions about investing in digital marketing, minimizing financial risk and increasing the chances of successful implementation of marketing strategies. This study significantly adds to the body of knowledge in the field of digital marketing by offering a scientifically based approach to the selection of innovative marketing tools on the basis of the analysis of consumer value and the financial feasibility of costs. The practical application of the research results lies in the ability of dairy enterprises to promote their products online on the basis of a thorough selection of innovative digital marketing tools, reducing financial risk. This creates a basis for further research in the field of digital marketing, particularly in the context of the integration of innovative digital marketing tools and their impact on consumer behaviour.

Outcomes of the use of infliximab biosimilars in rheumatology and gastroenterology clinics.

The originator infliximab product, Remicade, was approved by the US Food and Drug Administration in August 1998 for the management of Chron's disease. Since this time, several infliximab biosimilar agents have entered the market to introduce competition and lower costs for patients as well as health care systems. Clinical trials comparing infliximab biosimilars with the originator product have consistently demonstrated noninferiority, along with similar adverse effect profiles, leading to the approval of 3 additional biosimilars: Renflexis (infliximab-abda), Avsola (infliximab-axxq), and Inflectra (infliximab-dyyb). In 2021, the University of North Carolina rheumatology and gastroenterology outpatient clinics began an initiative to convert patients from the originator infliximab product to biosimilar agents Renflexis or Avsola based on market costs. Subsequently, a retrospective evaluation was conducted to analyze the clinical outcomes of patients that were switched to a biosimilar agent compared with those that were only ever using either the originator or biosimilar agent. A total of 180 patients were analyzed, of which half were prescribed a biosimilar as a result of the conversion initiative. Of these 90 patients, 79 (87.8%) were maintained on a single biosimilar agent without requiring a switch to an alternative infliximab product. We conclude that the effort to convert clinically stable patients to a biosimilar product resulted in a significant increase in biosimilar use within the health system. This is thought to have resulted in significant financial advantages both to our institution as well as patients, without sacrificing overall clinical control.

Manufacturer encroachment with carbon cap-and-trade policy under asymmetric information

In order to mitigate carbon emissions and address environmental concerns, an increasing number of industries have started investing in green technologies to produce environmentally friendly products. This research develops a game theoretical model to examine the phenomenon of manufacturer encroachment in the context of carbon emission reduction and asymmetric information. Our analysis reveals that when the manufacturer does not encroach, a reduction in carbon emissions benefits all members of the supply chain. However, under encroachment, only the manufacturer stands to benefit from the reduction in carbon emissions. Moreover, with a low direct selling cost, we recommend that the manufacturer should aim to achieve a lower level of carbon emissions under encroachment compared to non-encroachment scenarios. Another key finding is that the benefits of encroachment for the manufacturer depend on the relative costs of direct selling and carbon emission reduction. Encroachment is advantageous to the manufacturer when either the direct selling cost or the carbon emission reduction cost is low. On the other hand, encroachment benefits the retailer only when both the direct selling cost and the carbon emission reduction cost are high. Furthermore, we demonstrate that it is in the retailer’s best interest to voluntarily share demand information with the manufacturer, particularly when the direct selling cost is either low or high. By sharing demand information, the retailer can enhance the overall performance of the supply chain. Overall, this study provides valuable insights for managers regarding encroachment and carbon emission decisions in the context of low carbon manufacturing, carbon cap-and-trade policies, and asymmetric information. These findings can guide decision-making processes and help optimize the performance of supply chains in environmentally conscious settings.

Analysis of Value Chain of Cow Milk: The Case of Itang Special Woreda, Gambella, Ethiopia

Ethiopia has a long and rich history of dairy farming, which was mostly carried out by small and marginal farmers who raised cattle, camels, goats, and sheep, among other species, for milk. Finding the Itang Special Woreda cow milk value chain is the study's main goal. In order to gather primary data, 204 smallholder dairy farmer households were randomly selected, and the market concentration ratio was calculated using 20 traders. Descriptive statistics, econometric models, and rank analysis were used to achieve the above specified goals. Out of all the participants in the milk value chain, producers, cafés, hotels, and dairy cooperatives had the largest gross marketing margins, accounting for 100% of the consumer price in channels I and II, 55% in channels III and V, and 25.5% in channels V. The number of children under five, the number of milking cows owned, the amount of money from non-dairy sources, the frequency of extension service contacts, the amount of milk produced each day, and the availability of market information were found to have an impact on smallholders' involvement in the milk market. Numerous obstacles also limited the amount of milk produced and marketed. The poll claims that general health issues, sickness, predators, and a lack of veterinary care are plaguing farmers. In order to address the issue of milk perishability, the researchers recommended the host community and organization to construct an agro milk processor, renovate the dairy cooperative in the study region, and restructure the current conventional marketing to lower the transaction and cost of milk marketing.

Profitability of Palm Kernel Marketing in Southeast Nigeria: The Intervening Role of Information and Communication Technology (ICT)

The actual impact of ICT facilities on the profitability of palm Kernel marketing remains inadequately understood. Thus, this study investigated the intervening role of ICT on the profitability of palm kernel marketing in Southeast Nigeria. Data for this study were collected from 360 palm oil marketers from 30 markets of three randomly selected states of Southeast Nigeria using multistage sampling technique. The collected data were analyzed using descriptive statistics and budgetary techniques. The result on ICT facilities available for marketing of palm kernel revealed that majority of the palm kernel marketers in Abia (65%), Imo (68.3%) and Anambra (86.6%) used social media marketing platform in the marketing of palm kernel in the study area. The findings on the cost and return in the use of ICT in the marketing of palm kernel revealed that the labour constituted the highest percentage (18.10%) of the total variable. Cost of palm kernel marketing in the study area followed by cost of purchases (18.04%), cost of transportation (13.63%) and the least, cost of packaging (2.59%). The return on investment (ROI) realized by the marketers of palm kernel using ICT to aid the business was ₦0.27 implying that for every ₦1 invested in palm kernel marketing in Southeast, a return of ₦0.27 was realized. Evidence from the findings shows that palm kernel marketing with the use of ICT facilities is a profitable enterprise in Southeast Nigeria. It was recommended that marketers awareness on how usage of ICT facilities could improve their marketing returns should be intensified through enlightens campagna and that marketers utilization of ICT facilities for marketing palm kernel should be intensified through training to acquire requisite skills in using these facilities.

Certification Design With Common Values

This paper studies certification design and its implications for information disclosure. Our model features a profit‐maximizing certifier and the seller of a good of unknown quality. We allow for common values as the seller's opportunity cost may depend on the quality of the good. We compare certifier‐optimal with transparency‐maximizing certification design. Certifier‐optimal certification design implements the evidence structure of Dye (1985)—a fraction of sellers acquire information while the remaining sellers are uninformed—and results in partial disclosure to the market. A transparency‐maximizing regulator prefers a less precise signal, which conveys more information to the market through a higher rate of certification and unraveling (Grossman (1981), Milgrom (1981)) at the disclosure stage.

Analysis of Marketing Strategies for Duck Egg Flour Business in Increasing Sales Volume: A Case of Small and Medium Enterprise “Abinisa” in Sujung Village, Tirtayasa District, Serang Regency

Consumption of egg flour in Indonesia is currently quite large. This can be seen from the increase in egg flour imports. Import figures in 2018 – 2021 have increased from 15,676,606.7 kg to 17,298,358.3 kg (BPS 2022). Egg flour has a broad market and low production costs, and in addition to meeting the needs of the domestic food industry, it is very possible to apply it to small and medium industries (UMKM) to increase the added value of products and farmers in income. The purpose of this study is to analyze the marketing strategy of the duck egg flour business in increasing sales volume in UKM Abinisa. The type of research used in this research is descriptive with a qualitative approach. The method used in this research is a case study research method that will be carried out at UKM Abinisa Sujung Village, Tirtayasa District, Serang Regency. This research was conducted at the end of June – August 2023. Based on the internal strategic factor matrix, UKM Abinisa gets a positive value (+) where the strength (S) is 1.86 greater than the weakness (W) is 1.08. Meanwhile the external strategic factor matrix also gets a positive value where the opportunity (O) is 1.75 greater than the weakness (W) is 0.84. Under these conditions, the suitable strategy is the “Growth Strategy”. Meanwhile, based on the SWOT analysis, the marketing strategy that can be implemented by UKM Abinsa is a rapid strategy, namely developing existing strengths and increasing and maintaining existing opportunities.

Impactful marketing strategies for small to medium enterprises in Malawi: A case study of electronic shops in area 2

Small and medium enterprises (SMEs) have been the primary drivers of economic growth, job creation, poverty alleviation, and social integration. SMEs are recognizing the importance of understanding customer needs and preferences and are tailoring marketing strategies accordingly. SMEs confront various difficulties and challenges to survive in the market. Many governments' periods of closure and movement prevention policies have had a significant impact on SMEs stopping their operations, weakening their financial positions, and exposing them to financial risk. Developing a strong marketing strategy is seen as one of the solutions to these challenges, enabling companies to promote their businesses and survive in the market. Marketing strategies are the integrated pattern of choices about products, markets, and marketing resources that add value to customers' interactions with the company and thus enable the company to achieve specific goals. Despite the growing interest in marketing strategy in SMEs, the analyses of marketing strategy in SMEs are uncommon in the vast literature. To close this gap, there is a need to conduct a study to analyze and evaluate impactful marketing strategies for small to medium enterprises. A pilot study reveals that many electronic shops in Area 2 do not effectively use marketing strategies like differentiation and cost leadership. Most shops rely on similar advertising methods such as social media, radio, and newspapers without adapting to modern marketing trends. Additionally, many fail to implement marketing intelligence and information systems, leading to minimal growth and limited sales. This study aims to identify solutions and recommendations for improvement.

Manufacturer’s patent licensing strategies based on co-opetition

In the context of co-opetition (cooperation and competition), technological innovation endows manufacturers with new competitiveness and vitality. Through patent technology licensing, manufacturers can achieve technology upgrading and efficiency improvement. To study the patent licensing decisions of manufacturers based on co-opetition, this paper constructs a production patent licensing game model that comprises two manufacturers that cooperate in the upstream component market and compete in the downstream consumer market. We conduct a comparative analysis of the game equilibrium of three patent licensing scenarioscompetition (no licensing), unilateral licensing and cross-licensingand analyse the impact mechanism of key parameters, such as market share and cost advantage (cost burden). The research results are as follows. (1) When the product substitutability (competition intensity) is not very high and the market share of manufacturer 1 is relatively small or the product substitutability (competition intensity) is large and the cost advantage of both manufacturers 1 and 2 is moderate, Pareto improvement under cross-licensing scenario is better than that under unilateral licensing and competition scenarios. (2) The Pareto improvement in the unilateral licensing scenario is always better than that in the other two scenarios. (3) When the cost advantage of manufacturer 1 is small or large, the Pareto improvement in the competition scenario is better than that in the other two licensing scenarios. The paper also analyses consumer surplus in three licensing scenarios. The conclusions can provide a decision-making basis and support for manufacturers to select appropriate licensing strategies and government participation to guide enterprise technology upgrading under different situations.