Contract Price Research Articles

Research on Supply Chain Contract of Omni-channel Retail with BOPS Mode

T With the rapid development of e-commerce, consumers' consumption patterns have changed, more and more consumers are used to shopping online. Therefore, in order to better connect with the consumer market and save total cost of the supply chain, more and more manufacturers have expanded their online channels, which undoubtedly has an impact on the operation of brick-and-mortar shops. Therefore, under the background of new-retail development, BOPS mode is introduced to integrate online and offline. It protects offline physical resources, and brings profit gains to different subjects of omni-channel supply chain. This paper focuses on the omni-channel supply chain members who jointly manage BOPS mode, but as different profit subjects, what kind of supply chain contracts should manufacturers and retailers adopt to guarantee their respective interests, improve the enthusiasm of each subject, and make omni-channel supply chain operate continuously. In this paper, the Stackelberg game model is used to study the influence of traditional wholesale price contract, quantity discount contract, sales rebate contract and revenue sharing contract on the profit and return of manufacturers and retailers in omni-channel supply chain, so as to effectively encourage the main body of omni-channel supply chain to actively provide BOPS, protect offline physical store resources and bring gains to omni-channel supply chain by taking advantage of online and offline advantages. It is found that sales rebate contract and revenue sharing contract can achieve Pareto optimization on the basis of traditional wholesale price contract, and the choice mainly depends on BOPS demand.

Optimal green investment strategy for grid-connected microgrid considering the impact of renewable energy source endowment and incentive policy

Microgrid is a promising way to integrate renewable distributed generation into the electric power sector, which has received widespread attention. In this paper, a uniform capacity-constrained optimization model under different power purchase and sale price contracts is developed to explore the optimal green investment strategy for grid-connected microgrid (GCM) with three configuration types. The impact of renewable energy source endowment and incentive policy is focused when macrogrid’s generators emit more pollution than GCM’s non-renewable generators, such as in China and India. The results show that: (1) GCM with renewable generation can only be invested in a site with relatively abundant renewable endowment; (2) carbon tax effectively promotes the deployment of GCM with renewable generation and achieves carbon emission abatement, but excessive carbon tax cannot incentive investment in the most desired GCM type; (3) a subsidy trap is found under feed-in tariff (FIT) subsidy, which implies that the fade-out or exit of FIT subsidy is beneficial for microgrid’s healthy development; (4) and the comparisons under different price contracts emphasize the importance of macrogrid providing non-discriminatory access to feed-in and feed-out services to microgrid.

Production-and-order strategy with demand information updating and uncertain spot price

We study production-and-order strategy in a two-echelon supply chain consisting of a single manufacturer and a single retailer in which both market demand and spot price are uncertain. The retailer updates early demand information through observing new market signal during long production season. The retailer may order product before the demand is updated by signing wholesale price contract (called a contract order), or order from the manufacturer in spot market after the demand is updated (called a spot order). In a retailer-led Stackelberg game, we construct a two-stage dynamic decision model to derive the optimal equilibrium solutions for the production and order quantity under both contract order strategy and spot order strategy. We characterize the conditions under which demand information updating benefits or hurts the members and a win-win is achieved. In sharp contrast to the existing findings in that the retailer always prefers to order late until demand information is updated, we discover that the retailer may prefers to order early when the spot price uncertainty is above a certain threshold. Then, we design a single-side payment contract to stimulate the manufacturer to choose order mode satisfying the retailer’s preference.

Discretion and public procurement outcomes in Europe*

Public procurement regulations aim to ensure the state minimizes contract award prices by specifying the processes to be used in issuing calls for tenders and award of contracts. Cost minimization goals may be complemented by ancillary objectives such as supporting small firms or disadvantaged groups. Recent theory suggests procurement regulations and practices constraining the ability to exercise discretion in awarding contracts may increase average procurement costs. Using detailed data on procurement awards in 33 European countries, we find that restrictions on exercise of discretion are associated with higher average contract prices, and that increases in prices are greater in countries with above average government effectiveness. We also show that realizing price-reducing benefits from exercising greater discretion, where permitted by law, reduces the probability small firms win contracts and continue to do so. Our findings point to a tradeoff between the potential to lower prices by exercising discretion and policies that aim to increase the likelihood SMEs are awarded contracts.

Dual channel sales in supply chain: live streaming or traditional e-commerce

In recent years, live streaming is becoming a popular channel to sell products all over the world. Compared to traditional e-commerce channel, live streaming channel may not only bring consumers more shopping convenience, but also pose consumers more privacy concern. This paper considers a supply chain consisting of a manufacturer and an e-tailer who sells through dual channels (i.e., live streaming and traditional e-commerce) to explore how shopping convenience and privacy concern affect the optimal decisions. We build game models of two pricing (exogenous and endogenous) and two incentive contracts (wholesale price and two-part tariff). We find that the optimal promotion efforts are decreasing in shopping convenience while increasing in privacy concerns under the wholesale price contract, and independent of them under the two-part tariff contract when pricing is not a decision (such as iPhone); the optimal promotion efforts are increasing in shopping convenience while decreasing in privacy concern when pricing is a decision (such as the seasonal products). Whether the retail pricing is a decision or not, supply chain coordination can be achieved by the two-part tariff contract, but not through the wholesale price contract. Further, the two-part tariff contract is more favorable to the manufacturer if the exogenously given retail price is low, and the wholesale price contract is more favorable to the manufacturer if the retail price is high; the two-part tariff contract is always more beneficial for the supply chain than the wholesale price contract. Finally, we extend our analysis to relax a more realistic form with a variable effort elasticity and verify the robustness of the theoretical results.

Information environment and participation of foreign banks in U.S. syndicated loan market

This study examines how financial information quality affects the participation and lending behavior of foreign banks in the loan syndicate of U.S borrowers. We utilize the implementation of the Sarbanes-Oxley Act (SOX) in the U.S. as our research setting. We demonstrate a significant increase in foreign banks loan shares to public firms in the post-SOX period. In parallel, we find that this increase in lending by foreign banks is accompanied by more favorable price and non-price contract terms. By contrast, we find no evidence of either more loans or more favorable loan contract terms offered to U.S. privately held borrowers by foreign banks. Further analysis shows that the impact of such an exogenous change on loan contract terms are more pronounced among public listed borrowers with higher ex ante information asymmetry. Overall, our findings imply that the increase in quality and reliability of corporate financial information brought about by SOX reduces the information disadvantage of foreign lenders.

Cross-hedging wild salmon prices

A number of studies have documented that there is a global market for salmon, in which wild and farmed salmon have a common price determination process. Recent studies report that Norwegian farmed salmon spot prices are also highly correlated with the Fish Pool salmon future contract price, indicating that the futures market can be an important risk management tool, as producers and buyers can hedge price risk. Here, we investigate whether the wild salmon prices can be cross-hedged against the Fish Pool salmon future contract, by testing whether the two prices are correlated.. If so, the Fish Pool future contracts can be used as a risk management tool for fishers and buyers of wild salmon. We find that this is the case, providing an additional link between wild and farmed salmon specifically, and between fisheries and aquaculture generally.

Islamic economic view on the practice of akad Partnership cooperation

This research is field research that examines the Akad Partnership cooperation. The partnership referred to is a business activity broiler chicken farming in the form of collaboration between business partners consists of the People's Inti Company (PIR), namely the company that acts as the core provides raw materials and technical assistance and is responsible in marketing livestock products (eggs or chickens) and breeders as plasma act as manager of chicken cultivation and sell the harvest to the appropriate core by agreement. To carry out this collaboration, Plasma is the chicken farmer provided the conditions proposed by Inti, namely submitting a guarantee in the form of a land certificate. This collaboration explains the price at the beginning of the contract The calculation to Plasma is based on the contract price paid at harvest time to Plasma with calculations of debts for feed, medicines, vaccines along with the seeds given and the rest of the harvest are where Plasma makes a good profit or loss then gives full rights to Inti to market production result. According to the Islamic economic review, cooperation is carried out by Bakul as the core company and Plasma as the people's breeder is permitted in Islam, and is recommended based on the principle of mutual assistance in goodness. As long as the cooperation carried out adheres to principles help each other, need each other and benefit each other. But deep. There is little Islamic economics in the practice of chicken farming. Deviation is a matter of honesty and openness of the collaborating parties

On the pricing of capped volatility swaps using machine learning techniques

A capped volatility swap is a forward contract on an asset's capped, annualized, realized volatility, over a predetermined period of time. This paper presents data-driven machine learning techniques for pricing such capped volatility swaps, using unique data sets comprising both the strike price of contracts at initiation and the daily observed prices of running contracts. Additionally, the developed model can serve as a validation tool for external volatility swap prices, flagging prices that deviate significantly from the estimated value. In order to predict the capped, future, realized volatility, we explore distributional information on the underlying asset, specifically by extracting information from the implied volatilities and market-implied moments of the asset. The pricing performance of tree-based machine learning techniques and a Gaussian process regression model is evaluated in a validation setting tailored to the use of financial data.

Managing Industry 4.0 supply chains with innovative and traditional products: Contract cessation points and value of information

In supply chain management, how contract designs relate to the production system with traditional and Industry 4.0 innovative products (I4I products) is under-explored. In this paper, we fill this literature gap by studying a two-period model in which a manufacturer strategically chooses to incorporate an I4I product line into a traditional product line. In this context, we show that there exists a critical market potential threshold above which the sale of the I4I product is higher than that of the traditional product even when the former is sold at a higher price. For both wholesale price and linear two-part tariff contracts, we show that the contract cessation points and critical market potential threshold behave oppositely. We also find that the innovation level for the I4I product would be higher when the manufacturer’s expected valuation towards the retailer’s cost is higher than the actual one. We extend our base model to demonstrate that the innovation level of the I4I product is higher when the manufacturer uses a linear two-part tariff contract instead of a wholesale price contract. Finally, we uncover that the quantity-dependent innovation investment results in increased profitability and innovation level for the manufacturer provided that the innovation investment coefficient is sufficiently high.

Criteria for what makes a local optional martingale a true martingale

What makes an optional stochastic exponential a true optional martingale in a probability space where the underlying filtration is not right continuous nor complete. In this paper, we are going to answer this fundamental question. True martingales play an important role in many applications, just consider the large field of the fair pricing of derivative contracts. Therefore, it is important to give a natural, simple and verifiable condition for having a true martingale property in the context of the theory of optional martingales. The way we have done this here is by extending the method of Beneš to local optional martingales, giving a list of conditions for when an optional stochastic exponential of a local optional martingale is a true optional martingale.

조달계약과 불공정 조달행위로 인한 부당이득 환수

For fairness of procurement the other party to the procurement contract is obligated not to falsely submit bidding-related documents, to directly produce, to indicate the country of origin, to comply with contract standards, and to keep the contract price equal to or lower than the market transaction price. Violations of these obligations are called unfair procurement practices. In case of unfair procurement practices, the other party may be subject to sanctions such as prohibition of participating in bidding. However, it is necessary for Public Procurement Service(‘PPS’) to redeem the profits obtained from the procurement contract, because it is not reasonable to allow the other party to hold the profits from the procurement contract despite unfair procurement practices.
 The PPS's special terms for the procurement contract include provisions that require profits to be redeemed if unfair procurement practices are recognized. Since the special terms are the contents of the procurement contract, the state and the other party have eventually made an agreement to return the profits obtained from the procurement contract in the event of unfair procurement practices. In accordance with these profit redemption clause, PPS has recovered the other party’s profits in cases of unfair procurement practices. However, as the court interpreted the profit redemption clause as damages for a breach of contract, it was difficult for PPS to redeem the profits if it fails to provide sufficient evidence to prove damages caused by unfair procurement practices.
 The legal nature of the redemption of profits due to unfair procurement practices should not be regarded as restitution for unjust enrichment or damages for a breach of contract under civil law. If the redemption of profits is the restitution of unjust enrichment under civil law or the damages for a breach of contract, the parties to a contract do not need to make an agreement for the redemption of profits, because even if there is no clause for redemption clause, it is possible to claim the restitution of unjust enrichment or damages for a breach of contract under the civil law. A penalty clause is made when it is difficult to prove or calculate the damages caused by the breach of contract. Although it is clear that the other party to the procurement contract benefits from unfair procurement practices, it is difficult to prove the damages caused by unfair procurement practices. A redemption clause should be regarded as a penalty clause for the difficulty of proving damages. If the redemption clause is regarded as the restitution of unjust enrichment or damages for the breach of contract, PPS is unable to redeem the profits because the profits of the other party does not correspond to damages of the state. In that case the other party is able to hold the profits of the procurement contract despite unfair procurement practices. In order to prevent these results, the legal nature of the redemption clause should be recognized as a penalty clause.
 Recently, “Government Procurement Act” has established a basis for the redemption of profits, and the PPS also claims the redemption clause as a penalty clause, and the court recognizes the right to claim the return of profits. Special terms for the procurement contract no longer use the expression of unjust enrichment and specify that the other party is required to pay the amount based on the calculation clause of penalties in the case of unfair procurement practices.
 It is now possible to claim that the legal nature of the redemption clause is a penalty clause through the revision of the Government Procurement Act and special terms for procurement contract, and changes in precedents. From now on the focus needs to be on the category of unfair procurement practices and an elaborate calculation of the profits of the other party who has caused unfair procurement practices.

Risk preferences, newsvendor orders and supply chain coordination using the Mean-CVaR model

The standard newsvendor model assumes that decision-makers in the supply chain are risk-neutral. This paper explores the newsvendor problem using risk measures building on the classical normative definition of risk preferences by certainty equivalents to model risk-averse, risk-neutral, and risk-taking decision-makers. We suggest the Mean-CVaR model based on the popular risk measures Value-at-Risk (VaR) and Conditional Value-at-Risk (CVaR). The objective function is characterized by a tolerance level differentiating between low and high profits and by a pessimism level representing the weight of low profits. For the first time, we prove that the optimal order quantity is higher (lower) than the risk-neutral order quantity if and only if the newsvendor is risk-taking (risk-averse). The equivalence of product-specific risk preferences and the size of the order quantity enables the determination of the Mean-CVaR parameters from given order quantities or from a target profit. Further, based on supply chain’s objective maximization criterion, we discuss supply chain coordination with Mean-CVaR decision-makers. We show that a simple wholesale price contract can coordinate the supplier–buyer supply chain and completely characterize the decision makers’ risk preferences under supply chain coordination. For example, if the coordinator (supplier) is risk-averse, a coordinating wholesale price exists for a less risk-averse buyer as well as for a risk-neutral and risk-taking buyer. We also determine the Mean-CVaR parameters if the coordinator specifies a target for the supply chain profit and the buyer communicates a target profit. In this case, the coordinating wholesale price depends on the ratio of the target profits and we show the impact on supply chain efficiency.

Neural Network Algorithm Optimization for Financial Budget of Universities

Efficient budget management is crucial for the successful execution of construction projects. To achieve this, the design of a Construction Project Audit Budget Management System based on combinatorial optimization offers significant advantages. Combinatorial optimization techniques focus on finding optimal solutions from a vast number of possible combinations, making them well-suited for complex budget management scenarios. This system employs advanced algorithms to analyze and optimize various factors such as resource allocation, cost estimation, risk assessment, and scheduling. This paper focused on the construction of the Project Fuzzy Audit System in China. The developed model computes total investment decision, preliminary design, design, contracting, construction, completion acceptance and other stages of the investment/cost, namely investment estimation, budget estimate, control price, contract price and settlement price. According to the project total investment/cost control needs in China Project. The constructed model uses the combinatorial Optimization model for the estimation of the investment estimation of the Construction Project for the cost index. Through the Fuzzy Audit System new method abolishes the "maximum price" in the bidding document with the limit as the unit, and gradually terminates the preparation of the budget quota, highlighting the market price, so there is an urgent need for a set of cost index in line with the actual needs. The results demonstrated that with the fuzzy Audit system new method abolishes the "maximum price" in the bidding document with the limit as the unit, and gradually terminates the preparation of the budget quota, highlighting the market price, Through analysis it is concluded that with fuzzy based optimization model effectively accumulate fast and accurate calculation of the Project cost.

Право заказчика на немотивированный отказ от договора подряда и механизм возмещения убытков подрядчика

Disputes related to construction contract traditionally constitute a significant part of the cases considered by commercial courts. According to the Judicial Department of the Supreme court of the Russian Federation, the number of disputes from a construction contract (in particular, disputes arising from improper performance of obligations) in commercial courts significantly exceeds other categories of cases from other types of contracts in terms of the size of claims. It seems that there are several reasons for this circumstance. Firstly, to date more than 20 years have passed since the adoption of the only review of the practice of resolving disputes under a construction contract (Information Letter of the Supreme Commercial Court of the Russian Federation dated January 24, 2000 No. 51) Secondly, today there is not enough systemic clarification on a number of fundamental issues of the performance of the contract (for example, the possibility of changing the fixed contract price by agreement of the parties, increasing the term of the government contracts, etc.) In this regard, contractual regulation of construction projects is not only relevant, but also a difficult area of legal practice.

Post-Construction Defects in Multi-Unit Australian Dwellings: An Analysis of the Defect Type, Causes, Risks, and Impacts

Due to the rising prices of houses and rent, apartment buildings have become the preferred and most utilized dwellings in Australia. However, there have been cases of serious defects in multi-unit dwellings (apartment buildings), posing various risks to and reducing potential residents’ confidence in such dwellings. To address this issue, the current study investigated the types, causes, risk severity, and impacts of defects on residents in mid- to high-rise multi-unit dwellings in Australia. The study utilized a mixed approach involving quantitative (online questionnaire) and qualitative (interviews) methods. Data were collected from 104 apartment building residents in Brisbane, Queensland, Australia, with support from interviews with six experienced local construction professionals. The results revealed that there are 11 key defects present in local apartment buildings, with waterproofing, internal finishes, and structural issues being the most frequently reported. Residents typically report these defects to building owners, agents, and managers, who take more than three months, on average, to rectify them, adding to the residents’ psychological issues and their inability to use the property as intended. The reasons for the delayed rectification of defects include non-responsive owners, agents, and building management teams, scheduling conflicts, litigation, and high costs. The interviewed professionals acknowledged the presence of defects and identified the reliance on Design and Construct (D&C) and fixed price contracts, lack of public awareness, and absence of a system to capture builders’ reputation, as well as a manipulative quality check system, as key reasons for defects. This study addresses the defect concerns in multi-unit Australian dwellings (apartments) and expects to spark a much-needed debate around reforms in the construction sector to address these issues and minimize their risks and impact on residents.

Variance insurance contracts

We study the design of an optimal insurance contract in which the insured maximizes her expected utility and the insurer limits the variance of his risk exposure while maintaining the principle of indemnity and charging the premium according to the expected value principle. We derive the optimal policy semi-analytically, which is coinsurance above a deductible when the variance bound is binding. This policy automatically satisfies the incentive-compatible condition, which is crucial to rule out ex post moral hazard. We also find that the deductible is absent if and only if the contract pricing is actuarially fair. Focusing on the actuarially fair case, we carry out comparative statics on the effects of the insured's initial wealth and the variance bound on insurance demand. Our results indicate that the expected coverage is always larger for a wealthier insured, implying that the underlying insurance is a normal good, which supports certain recent empirical findings. Moreover, as the variance constraint tightens, the prudent insured cedes less losses, while the insurer is exposed to less tail risk.

Study More Tomorrow

We design a commitment device for college students, “Study More Tomorrow,” conduct a randomized controlled trial testing a model of its takeup, and measure its effect on tutoring attendance and grades. The device commits students to attend tutoring if their midterm grade falls below a prespecified threshold. Unlike other commitment devices tested in the education literature, the contract carries a financial cost for noncompliance. Students value the contract, with 10% takeup among those randomly assigned a contract offer. Takeup is not higher among students randomly assigned to a lower contract price, however. The contract does not robustly affect tutoring attendance or student course grades. Our results show that college students are willing to pay for study commitment devices.

Multi-decomposition in deep learning models for futures price prediction

In the literature pertaining to futures price prediction using decomposition ensemble algorithms, little has been discussed in regard to determining the optimal number of decompositions and the extent to which information should be integrated. To investigate the effectiveness of multiple price decompositions in improving the accuracy of deep learning models for futures prices, we conducted an empirical study on the daily closing prices of China's main contracts for gold, zinc, soybean meal, crude oil, iron ore, and PTA futures. We utilized a variety of prevalent deep learning models and two groups of benchmark models: shallow machine learning models and regression models. To split the prices into basic components, we proposed a VMD-EEMD technique and fed them to the models. By controlling the decomposition times and model types, we further studied the predictive performance of the deep learning models against benchmark models without decomposition or with only VMD. Our empirical evidence showed that multiple price decompositions, as an input engineering technique, proved to be an effective approach for enhancing the prediction accuracy of deep learning models applied to financial equities. The average percentages of error reduction of double decomposition against single decomposition are 6.13%, 9.45%, 7.09%, and 4.91% for the four common performance metrics: MAE, MSE, MAPE, and RMSE, respectively. Moreover, we explored the necessity of secondary decomposition and optimal decomposition times to balance prediction accuracy and model complexity. These findings provide important theoretical implications and practical guidance for researchers.

Contract price change during the construction phase: unforeseen market conditions

Abstract The unstable economic conditions that have been in place in the Slovenian and international construction markets reveal the problem of a disproportionate increase in the prices of construction materials and energy products. Such increases will therefore result in higher costs of construction services, which would ultimately affect the total value of the construction project. These events in turn bring uncertainty to the construction project and would negatively impact the business of construction companies and investors. Legal and construction practices have so far developed various ways to regulate contract changes arising due to unforeseen market conditions. The present paper offers a contribution to the contract price change solution during the construction phase. The introduction first presents the measures and guidelines that deal with the differences in contract prices in Slovenia and some other countries. Then, various methods of calculating price differences that have emerged in current Slovenian practice are described. As a result, a proposal for a hybrid method of monthly price difference calculation is presented. The hybrid method represents a balanced solution resulting from the unforeseen increase in construction material prices on the market and is applicable to all construction projects. The three methods, i.e., a calculation method, a method based on the GZS-ZGIGM index, and a hybrid method, are applied to a real example of a public contract. The calculation of the price valorisation, represented as an index of the recognised price increases of contract works, is carried out. The results are compared, and further solutions are proposed.