Market Design Research Articles

Research on the Current Situation and Suggestions of China's Agricultural Product Futures Market

The Chinese market for modern agricultural products now includes the agricultural futures market, which is also one of the most significant investment and risk management tools in the country due to the rapid development of China's economy and the globalization of the international market. This paper provides a detailed introduction to the historical history, market development, policy environment, institutional design, trading system, and risk management of China's agricultural commodity futures market. This study also offers some solutions in response to some issues that are now present in the market for agricultural products. The development of China's agricultural future has experienced a tortuous course, despite the efforts of all parties to benefit the country and its people. This research is from the investment subject, market regulation, and market environment analysis and gives detailed suggestions.

Appearance for Females, Functionality for Males? The False Lay Belief about Gender Difference in Product Preference

Abstract It is common that marketers design and position pretty products more to female consumers than to male consumers, suggesting that they generally believe that females have a stronger preference than males for product form over function and apply this belief to their marketing practices. However, this research demonstrates that this belief is often inconsistent with actual preferences. Across seven studies and four follow-up studies, involving both hypothetical and field settings, we demonstrate that both marketers and consumers hold such a belief about gender difference and overpredict females’ preference for form-superior (vs. function-superior) products relative to males. Specifically, people tend to choose form-superior (vs. function-superior) products for female (vs. male) others, but female consumers do not choose form-superior (vs. function-superior) products for themselves more than male consumers do. We further provide convergent evidence for the underlying mechanism and boundary conditions by showing that (1) people’s choices for others and themselves are more in line with the lay belief about gender difference when they hold a stronger belief and (2) people’s choices for distant (vs. close) others are more in line with this lay belief. We further assess the effectiveness of several debiasing interventions and show that this lay belief is quite robust.

Environmental and economic analysis of sector-coupling battery energy storage systems used for frequency containment reserve

Battery energy storage systems (BESSs) are advocated as crucial elements for ensuring grid stability in times of increasing infeed of intermittent renewable energy sources (RES) and are therefore paving the way for more sustainable energy systems. Providing frequency containment reserve (FCR) is an attractive business model for capital intensive stationary BESSs, but the current German FCR regulative framework restricts the BESS usage for other applications as capacity shares have to be reserved (FCR energy capacity requirement). Hence, stationary BESSs operating at the FCR market are not fully utilised from an economic and environmental perspective. Linking BESSs with other sectors as potential sinks such as power-to-heat modules or electrolysers, enables unlimited energy infeed and is discussed as potential means to diminish this constraint. Whilst, a couple of studies investigated the economic advantages of such sector-coupling BESSs, their environmental consequences were hardly analysed so far. Based on the life cycle thinking approach, the environmental and economic impacts of FCR provision in Germany by standalone and sector-coupling BESSs (i.e. with power-to-heat unit or electrolyser) were studied in this work. The sector-coupling BESSs were considered regarding different FCR energy capacity requirements (E/P ratios). It was shown that the CAPEX for the sector-coupling unit were primarily critical for the economic performance of BESSs favouring power-to-heat over electrolysers and standalone BESSs. The results of the environmental life cycle assessment indicated to potential benefits due to the reduced battery capacities depending on the varied FCR energy capacity requirement. The environmental implications of the operational stage showed that electrolysers can increase the environmental impacts by up to 10 % due to higher conversion losses compared to power-to-heat units. Finally, it was concluded that future energy system and market designs should foster the implementation of sustainable sector-coupling solutions considering technology-specific economic and environmental characteristics.

Water clubs: a new model for managing freshwater in small catchments *

Over the past 30 years market-based mechanisms have been upheld as the gold-standard of water governance approaches. However, while some water markets have been successful, many struggle to meet the strict institutional preconditions for efficiency and effectiveness, which has implications for social welfare and public good provision. As pressures on water resources increase, there is a growing need to consider alternative market designs that foster more cooperation between water users. Drawing on club theory and game theory, this paper investigates the economic and environmental benefits of (re)designing water markets as clubs. It finds that in small catchments, the introduction of group-level trading can increase provision of the public good, improve social welfare, and reduce free-riding when compared with a regulatory status quo. It also finds that the club model performs best when the number of active traders is low—a result that challenges the common assumption regarding group size and effective market performance. In local contexts, the group-level trading may also help characterise the optimal group size by weighing the benefits from more trading opportunities against the losses from free-riding.

Blockchain-Empowered Distributed Additive Manufacturing-as-a-Service: An Architectural Perspective

Additive Manufacturing (AM) is transforming the way that we fabricate, deliver, and consume a wide range of products and components, including those for consumers, medical devices, automobiles, and aircraft. In AM, 3D-printers are used to fabricate products by depositing material in a layer-by-layer fashion, leading to extremely low marginal production costs and significantly simplifying the manufacturing supply chain by providing the opportunity for production that is much closer to consumers. With extremely low marginal costs, AM facilities can quickly scale their production up and down, or redirect their resources to produce entirely different types of goods to meet dynamic market demands. However, most AM companies that employ 3D-printers have not yet upgraded their operations in a way that improves their supply chain. In this paper, we first offer an overview on the state-of-the-art of AM supply chains and then present a novel blockchain-empowered system architecture, namely, Additive Manufacturing-as-a Service (AMaaS), that can facilitate the speedy adoption of AM in manufacturing industries. Finally, we identify several major research challenges in terms of market design, control algorithms, and security, as well as research directions to tackle them.

Free Exchange is Not Free

The rise of crypto markets and smart contracts has fueled innovation in exchange mechanisms. This article explores core market design principles and their tradeoffs.

PERANCANGAN PASAR BARU MARABAHAN

Marabahan City is the capital city of Barito Kuala which is also the center of government and economy, seen from the arrangement of the city between the government and the community's economic center located in the market. Marabahan City also gets the motto of the word Bahalap (beautiful) contrary to the existence of market arrangements and lacking facilities for the community where the source of the economy for most of the people of the Marabahan city are farmers and traders.For the arrangement of the city of Marabahan with the market design for the community with facilities and analysis based on the environmental situation of the city of Marabahan using a behavioral architectural approach with the Behavior setting method. Which combines two aspects, namely between the environment and people's behavior.The result of the design of the new Marabahan market is the existence of stalls for retail traders and the arrangement of stalls and shops and even the layout of the motorcycle parking lot which used to use the main road.

Green bond spread effect of unconventional monetary policy: Evidence from China

The development of green bond market is of great significance to the low-carbon transformation of China’s economy. However, green bond financing costs have remained high. The People’s Bank of China has guided the market to actively participate in green bond investment and financing activities by including green bonds in the scope of qualified collateral for monetary policy instruments. Against this backdrop, the role of unconventional monetary policy in reducing the cost of green financing is a critical topic being discussed in academia. In this study, we examine the cost impact of unconventional monetary policy on green financing, particularly green bonds. Specifically, using bond market data from 2016 to 2020, we construct a difference-in-difference (DID) model to empirically test the effect of China’s unconventional monetary policy on the financing cost of green bonds. The results indicate that unconventional monetary policy reduces the trade spread of green bonds compared with non-green bonds in the secondary market. However, the effect on the spreads of primary market green bonds is insignificant. Furthermore, through sub-sample tests based on ownership and bond ratings, this study finds that unconventional monetary policy has a more pronounced impact on the transaction spreads of AA+ and AA rated green bonds, green bonds issued by state-owned enterprises, large-scale green bonds, as well as long-term green bonds in the secondary market. Based on the above conclusions, we put forward policy suggestions to improve the top-level design of green bond market and activate the enthusiasm of bond trading from two aspects: expanding the scope of green bond collateral of central bank lending programs and enhancing the issuance advantages of green bond in the primary market.

Reforming European electricity markets: Lessons from the energy crisis

The surge in gas prices due to the Ukrainian war has sparked a European energy crisis, triggering discussions about overhauling electricity markets. The European Commission (EC) proposes maintaining short-term electricity markets, fostering long-term Power Purchase Agreements (PPAs) and Contracts-for-Differences (CfDs), and permitting Member States to regulate retail prices during emergencies. This paper proposes a market design aligning with the EC’s plan while introducing additional elements to address its limitations. Notably, it advocates an enhanced reliance on CfDs tailored to the attributes of the generation technologies. This approach seeks to strike a balance by exposing technologies to short-term price signals while allocating investment risks efficiently.

Market‐clearing framework of a resilient microgrid with renewable energy considering emission reduction targets

AbstractWith the gradual attention of global climate change, a series of carbon emission plans have been formally implemented in the field of energy. There is a consistent relationship between the carbon market and the electricity market in promoting clean energy development and improving carbon dioxide emission reduction targets. The market design of a low‐carbon power system should be considered as a whole to promote the coordinated development of carbon and power markets. Taking an industrial park in China as the research object, an internal market trading model of an industrial park considering carbon dioxide emission reduction targets is proposed. The proposed trading mechanism considers both carbon dioxide emission reduction targets and social welfare maximization. The proposed market trading model connects day‐ahead and intraday electricity markets, which deal with uncertainty about renewable energy sources.

Pengembangan Pemasaran Digital Dan Desain Pengemasan Jamu Gendong Desa Rejoagung, Ploso, Jombang

Jamu Gendong is a traditional herbal beverage that has become an integral part of Indonesia's cultural heritage and ancestral knowledge. This dedication aims to develop effective digital marketing and packaging design for Jamu Gendong products in the village of Rejoagung. The method used, known as Assets Based Community Development (ABCD), involves a collaborative approach to community development, engaging researchers, local communities, and Jamu Gendong business practitioners. The implementation of more appealing digital marketing and packaging design is expected to enhance the product's competitiveness, expand the market, and provide positive impacts on the economy and culture of Rejoagung Village. This dedication has yielded significant advancements for Jamu Gendong sellers in terms of packaging design and marketing strategies, thus enabling market expansion and boosting the success of the Jamu Gendong business in Rejoagung Village.

Fit for purpose: Modeling wholesale electricity markets realistically with multi-agent deep reinforcement learning

Electricity markets need to continuously evolve to address the growing complexity of a predominantly renewable energy-driven, highly interconnected, and sector-integrated energy system. Simulation models allow testing market designs before implementation, which offers advantages for market robustness and efficiency. This work presents a novel approach to simulate the electricity market by using multi-agent deep reinforcement learning for representing revenue-maximizing market participants. The learning capability makes the agents highly adaptive, thereby facilitating a rigorous performance evaluation of market mechanisms under challenging yet practical conditions. Through distinct test cases that vary the number and size of learning agents in an energy-only market, we demonstrate the ability of the proposed method to diagnose market manipulation and reflect market liquidity. Our method is highly scalable, as demonstrated by a case study of the German wholesale energy market with 145 learning agents. This makes the model well-suited for analyzing large and complex electricity markets. The capability of the presented simulation approach facilitates market design analysis, thereby contributing to the establishment future-proof electricity markets to support the energy transition.

Understanding competency requirements in the context of AEC industry informatization: policy insights from China

PurposeThe increasing adoption of informatization in the architecture, engineering, and construction (AEC) industries has raised the competency requirements for AEC practitioners. However, existing research primarily focuses on the integration of emerging technologies in AEC education programs, with little attention to the development of informatization-related competencies. Therefore, this paper aims to explore the competency requirements in the information age of the AEC industry.Design/methodology/approachTaking a policy perspective, this study investigates the competency requirements within the context of AEC industry informatization. By employing a competency-based theoretical framework, content analysis is conducted on China's policy document, the Outline of the Development of Informatization in the Construction Industry.FindingsThe study identifies crucial emerging technologies in the AEC industry, such as building information modeling (BIM), Big Data, Internet of things, networking, and cloud computing, along with their application scenarios. It considers various market players, including survey and design institutes, construction companies, and general contracting enterprises. Comparative analysis reveals the technology application patterns of these market players, shedding light on their preferences and perspectives. Based on these findings, the study proposes recommendations for competency requirements in the AEC industry.Originality/valueThis study extends the competency-based theory to AEC education from a macro perspective. The findings enhance understanding of informatization by providing insights into the related technologies, their applications, and the market players utilizing them. Moreover, the study's results have significant implications for AEC education, particularly in the design of curriculum systems for emerging technology-related fields.

Enhancing Traditional Market Viability: A Case Study of Revitalizing Sleko Market


 
 
 
 
 
 This study addresses the imperative of adapting traditional markets to evolving consumer demands for sustained economic development. Focusing on Sleko Market in Madiun City, we propose a revitalization strategy guided by pertinent regulations and standards. Through questionnaire surveys and the Preference Selection Index (PSI) method, three pivotal indicators—multiuse space availability, streamlined loading/unloading zones, and effective advertising infrastructure—were identified. Our findings underscore the need for improved market design aligned with urban regulations and health guidelines, contributing to the quality enhancement of traditional markets.
 Highlight:
 
 Adapting to Consumer Demands: This study emphasizes the necessity of aligning traditional markets with evolving consumer preferences to ensure sustainable economic growth.
 Revitalizing Sleko Market: Focusing on Sleko Market in Madiun City, the research proposes a strategy for revitalization, guided by relevant regulations and standards.
 Enhancing Market Quality: Through surveys and the PSI method, crucial indicators like multiuse space, loading/unloading zones, and advertising infrastructure are identified, underscoring the significance of improved market design in compliance with urban regulations and health guidelines.
 
 Keyword: Traditional Markets, Consumer Demands, Revitalization Strategy, Urban Regulations, Market Design
 
 
 
 
 

Virtual Reality Revolutionizing Digital Marketing Design and Optimization of Online English Teaching in Universities with Wireless Network Technology Support in the Context of 5G

Virtual Reality Revolutionizing Digital Marketing Design and Optimization of Online English Teaching in Universities with Wireless Network Technology Support in the Context of 5G

Developments in the cost of grid balancing services and the design of the European balancing market

Balancing services are traded on the balancing market, which has undergone major shifts in recent years due to external factors like the growing share of renewable energies in electricity production and the progressing electrification of society, especially in the mobility sector. This trend increases the demand for balancing services. However, market design is also changing to lower overall expenses for grid stability, which influences price volatility and overall costs for balancing services. Shorter provision times, low capacity limits, and a smaller gap between gate closure time and delivery time enable more flexible market participation of balancing service providers. This article provides an overview of the common European balancing market with a focus on Germany, including recent and upcoming regulatory changes and market design. Recent price trends highlight the importance of market design, especially provision times and price limits. The reduction of the provision time for Frequency Containment Reserve increased offered capacity per bid, and the end of the mixed price procedure in August 2019 led to a less concentrated price range for balancing energy. The introduction of the energy-only market in November 2020 shifted demand from tertiary to secondary control reserve. However, high energy prices in 2021 and 2022 have revealed the limited responsiveness of the balancing energy market. This effect will be reinforced with the exiting of coal-fired and nuclear plants from the pool of balancing service providers in the current decade. Additionally, the future development of the market depends on the integration of energy storage systems such as stationary batteries and electric vehicle batteries, including the regulatory framework.

A model for herd behaviour based on a spatial public goods game

In groups and crowds, individuals have a propensity to replicate the actions of their immediate neighbours, often disregarding rational considerations. This phenomenon is known as herd behaviour, which has been extensively investigated in biological and economic contexts to comprehend the dynamics of fragile systems. Examples of herd behaviour scenarios include the bubble effect in the stock market, animal coordination, and individuals congregating together during emergency situations to avert peril. The understanding of the underlying causes and consequences of individual decision-making in crowd dynamics can mitigate the negative outcomes of these situations. Consequently, models are utilised to propose effective stock market controls and design emergency exits that enable swift responses to crises. This paper presents a spatial game that induces a level of herding in the population, whereby a multiplayer public good game serves as the platform for interaction among individuals. Herding behaviour arises when individuals shift from emulating the most successful strategy to copying the predominant strategy in their neighbourhood. The objective of the game is to investigate how the induced level of herding and the return on investment affect the total wealth, wealth distribution, and level of cooperation in the population. In summary, when herd behaviour is more prevalent, it leads to reduced cooperation and increased wealth inequality. Nonetheless, the outcome is contingent on the initial concentration of states in the simulation.

Organizational Limits of Market Design

Organizational Limits of Market Design

Cuteness anthropomorphic purchase intention for unattractive products: The Mediating Role of Empathy

Consumers usually prefer products with perfect appearance and attractiveness, as well as reject unattractive and low-attractive products, which puts forward higher requirements and thresholds for brand marketing and product design. Anthropomorphism is an effective communication element. Anthropomorphism of cuteness refers to anthropomorphizing the image of children or babies and endowing them with personality traits. Previous studies have shown that cute anthropomorphism has a significant impact on the purchase intention of unattractive products by affecting consumers' empathy. Empathy refers to the emotional response of individuals to the emotional state or painful experience of others.
 This study is based on the realistic dilemma of unsalable unattractive products, combined with anthropomorphic marketing theory, and introduced the concept of empathy in the field of psychology. Aiming to study the impact of anthropomorphism on the purchase intention of unattractive products, and further test the mediating role of empathy and modulatory effects of cuteness elements, this study identifies the underlying psychological mechanisms that affect consumer empathy.

A regional solar forecasting approach using generative adversarial networks with solar irradiance maps

The intermittent and stochastic nature of solar resource hinders the integration of solar energy into modern power system. Solar forecasting has become an important tool for better photovoltaic (PV) power integration, effective market design, and reliable grid operation. Nevertheless, most existing solar forecasting methods are dedicated to improving forecasting accuracy at site-level (e.g. for individual PV power plants) regardless of the impacts caused by the accumulated penetration of distributed PV systems. To tackle with this issue, this article proposes a novel generative approach for regional solar forecasting considering an entire geographical region of a flexible spatial scale. Specifically, we create solar irradiance maps (SIMs) for solar forecasting for the first time by using spatial Kriging interpolation with satellite-derived solar irradiance data. The sequential SIMs provide a comprehensive view of how solar intensity varies over time and are further used as the inputs for a multi-scale generative adversarial network (GAN) to predict the next-step SIMs. The generated SIM frames can be further transformed into PV power output through a irradiance-to-power model. A case study is conducted in a 24 × 24 km area of Brisbane to validate the proposed method by predicting of both solar irradiance and the output of behind-the-meter (BTM) PV systems at unobserved locations. The approach demonstrates comparable accuracy in terms of solar irradiance forecasting and better predictions in PV power generation compared to the conventional forecasting models with a highest average forecasting skill of 10.93±2.35% for all BTM PV systems. Thus, it can be potentially used to assist solar energy assessment and power system control in a highly-penetrated region.