Reduced Switching Costs Research Articles

Bridging the gap: Experimental evidence on information provision and health insurance choices.

Previous research has shown that individuals do not always make rational decisions when selecting their health insurance, for example, due to the existence of information frictions or mental gaps. We study the effect of specific types of information provision for decision support on health plan choices and test their potential to improve decision quality by implementing a randomized laboratory experiment. We provide personalized and generic aids, differentiate between numerical and visual decision support, and provide one or two optional formats of personalized information. We find that generic aids have no effect on health plan choices while personalized information leads to better choices as measured by several indicators of decision quality. The largest effects were observed for those who "opted in" to visualize personalized information, with immediate and lasting improvements in health insurance decisions. By reducing information frictions, our results suggest that accessible and easy-to-use tools can positively impact health insurance navigation, improve decision-making, and reduce switching costs.

Dual Sourcing and Resilient Supply Chains: The Case of Essential Resources

The resilience of supply chains is analyzed in a model of strategic technology investments in markets with essential resources. With a monopoly supplier, dual sourcing is a strategy to reduce switching costs in the long-run. It serves as an insurance mechanism against future opportunism by providing access to competitive global markets. Investments in dual sourcing are required to limit abuse of market power by the active source provider, even though the option of dual sourcing may not be exercised in equilibrium. The analysis has implications for the European natural gas market. Liquefied natural gas terminals may serve a strategic purpose of limiting ex-post opportunism even when delivering gas by pipeline is more efficient.

Compiling Service Function Chains via Fine-Grained Composition in the Programmable Data Plane

Service function chains (SFCs) are fundamental services in today's datacenters and ISP networks. Explosive volume of network traffic creates high demands for low latency and high performance. The emergence of programmable data planes has offered a new way to overcome the problem. However, limited by pipeline constraints in hardware architecture, implementing multiple network functions on programmable data planes is challenging. Besides, considering various types of network functions, e.g., stateful network functions, a general model is essential for abstracting distinct network functions. In this article, we propose <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">pSFC</i> which provides a fine-grained SFCs deployment scheme in programmable data planes. Control flow graph (CFG) is proposed to abstract and analyze various network functions. Then we model pipeline constraints in the hardware architecture using an ILP (Integer Linear Programming), and model the SFCs deployment in the substrate network as a one big switch (OBS) problem. To reduce deployment cost, <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">pSFC</i> first composes multiple SFCs to a compound CFG for eliminating redundant logics within SFCs, further decomposes the compound CFG based on the resource limitation per stage, and finally maps the OBS into the substrate network. We have implemented <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">pSFC</i> in both bmv2 software switch and P4 hardware switch (i.e., Intel Tofino ASIC). Evaluation results show that <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">pSFC</i> reduces switch costs by 45.7% and decreases average latency by 22% without compromising throughput.

Multi-Objective Framework for Optimal Placement of Distributed Generations and Switches in Reconfigurable Distribution Networks: An Improved Particle Swarm Optimization Approach

Distribution network operators and planners face a significant challenge in optimizing planning and scheduling strategies to enhance distribution network efficiency. Using improved particle swarm optimization (IPSO), this paper presents an effective method for improving distribution system performance by concurrently deploying remote-controlled sectionalized switches, distributed generation (DG), and optimal network reconfiguration. The proposed optimization problem’s main objectives are to reduce switch costs, maximize reliability, reduce power losses, and enhance voltage profiles. An analytical reliability evaluation is proposed for DG-enhanced reconfigurable distribution systems, considering both switching-only and repairs and switching interruptions. The problem is formulated in the form of a mixed integer nonlinear programming problem, which is known as an NP-hard problem. To solve the problem effectively while improving conventional particle swarm optimization (PSO) exploration and exploitation capabilities, a novel chaotic inertia weight and crossover operation mechanism is developed here. It is demonstrated that IPSO can be applied to both single- and multi-objective optimization problems, where distribution systems’ optimization strategies are considered sequentially and simultaneously. Furthermore, IPSO’s effectiveness is validated and evaluated against well-known state-of-the-art metaheuristic techniques for optimizing IEEE 69-node distribution systems.

Compatibility Choices, Switching Costs, and Data Portability

We study mix-and-match compatibility choices of firms selling complementary products in a dynamic setting. Contrary to what happens in a static setting where symmetric firms choose compatibility (Matutes and Regibeau 1988), when switching costs are high and firms make price discrimination based on past purchases, symmetric firms choose incompatibility to soften future competition if the discount factor is large, which harms consumers. Interoperability increases consumer surplus at least for high switching costs. Data portability, by reducing switching costs, induces the firms to choose compatibility more often but, given a compatibility regime, benefits consumers only if a nonnegative pricing constraint binds. (JEL D11, D21, D43, D82, L86)

Is the digit effect a cognate effect? Digits (still) differ from pictures in non-phonologically mediated language switching

AbstractLanguage control in bilinguals is often investigated with the language switching paradigm. Switch costs reflect the ease/difficulty of applying this control mechanism. The type of stimuli employed in the experiments may influence switch costs. To date, only one study has compared digit vs picture processing, reporting reduced switch costs for digits (Declerck, Koch &amp; Philipp, 2012). This result was adjudicated to phonological overlap between the languages used. Crucially, it remains an open question whether this digit effect generalises to language combinations without phonological relation. We fill this gap by investigating language switching with two language pairs differing in relative proficiency (L1 Chinese–L2 English, L1 Chinese–L3 French), where cross-language phonological activation is not expected. Overall, a digit effect is observed in the Chinese–English pair. Contrary to Declerck et al.'s (2012) finding, digits increased switch costs. Phonological mediation cannot explain this effect; instead, we suggest its origin lies in within-language word association links.

Keep flexible—Keep switching? Boundary conditions of the influence of forced task switching on voluntary task switching.

Frequent forced switching between tasks has been shown to reduce switch costs and increase voluntary switch rates. So far, however, the boundary conditions of the influence of forced task switching on voluntary task switching are unknown. Thus, the present study was aimed to test different aspects of generalizability (across items, tasks, and time) of switching-induced flexibility established in forced-choice trials on voluntary switching in free-choice trials. To this end, stimuli and tasks were systematically varied between forced- and free-choice trials in a hybrid task-switching paradigm. In a series of three experiments, we manipulated forced-choice switch probability (25% vs. 75%) and found that switching-induced flexibility generalizes to new items, but arguably not to new tasks. This task-specific effect is rather short-lived, limited to the first free-choice trial following a forced-choice trial. Underlying mechanisms of switching-induced flexibility, the versatility of flexibility and implications for the trainability of cognitive flexibility are discussed. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Research of Flexible Assembly Job-Shop Batch-Scheduling Problem Based on Improved Artificial Bee Colony.

This study examined the flexible assembly job-shop scheduling problem with lot streaming (FAJSP-LS), common in multivariety and small-batch production, such as household electrical appliances. In FAJSP-LS, an assembly stage is appended to the flexible job shop, and jobs in the first stage are processed in a large batch to reduce switching costs, while leading to more waiting time, especially during the assembly stage. This article considered splitting the batch into a few sub-batches of unequal and consistent sizes to allow jobs to efficiently pass the two-stage system. With this objective, the problem was modeled as a mixed-integer linear program comprising the following two subproblems: batch splitting and batch scheduling. As the integrated problem is NP-hard, the improved bioinspired algorithm based on an artificial bee colony was proposed, including a four-layer chromosome–encoding structure to describe the solution, as well as an optimization strategy utilizing different bee colonies to synchronously solve this two-stage problem. To examine the algorithm’s efficiency, a benchmark case was used to show that better solutions can be acquired with the improved algorithm regardless of whether the batch was split into equal or unequal sizes. To promote practical implementation, the algorithm was applied to a real case refrigerator workshop and showed better performance on time efficiency when jobs were split into unequal sizes compared to jobs without splitting or splitting into equal sizes.

Tracking lexical access and code switching in multilingual participants with different degrees of simultaneous interpretation expertise.

With the worldwide increase in people speaking more than one language, a better understanding of the behavioural and neural mechanisms governing lexical selection, lexical access in multiple languages and code switching has attracted widespread interest from several disciplines. Previous studies documented higher costs when processing a non‐native (L2) than a native (L1) language or when switching from L2 to L1. However, studies on auditory language reception are still scarce and did not take into account the degree of switching experience. Accordingly, in the present study, we combined behavioural and electrophysiological measurements to assess lexical access in L1 and L2 as well as code switching in professional simultaneous interpreters, trainee interpreters, foreign language teachers and Anglistics students, while the participants performed a bilingual auditory lexical decision task. The purpose of this study was to expand the knowledge on code switching in auditory language processing and examine whether the degree of simultaneous interpretation experience might reduce switching costs. As a main result, we revealed that L2 compared to L1 trials, as well as switch compared to non‐switch trials, generally resulted in lower accuracies, longer reaction times and increased N400 amplitudes in all groups of participants. Otherwise, we did not reveal any influence of switching direction and interpretation expertise on N400 parameters. Taken together, these results suggest that a late age of L2 acquisition leads to switching costs, irrespective of proficiency level. Furthermore, we provided first evidence that simultaneous interpretation training does not diminish switching costs, at least when focusing on lexical access.

Locational boundness of resource, compatibility of production, and downside risks of multinationality

AbstractResearch SummaryWe extend the multinational operational flexibility literature by examining how the characteristics of resources and capabilities within a portfolio of international investments affect its downside risks. We postulate that non‐location bound resources and capabilities within an international investment portfolio are crucial to reducing switching costs and enhancing cross‐country switchability, thus curbing downside risks. Our large sample of Korean multinational corporations reveals that globally sourced production inputs or more technological capabilities help curb downside risks, while locally sourced inputs or more marketing capabilities do not. We additionally find that the positive effect of less locational boundness is more salient when the portfolio has a high product relatedness or standardization.Managerial SummaryThis study provides some managerial implications for international business managers. The findings suggest that the downside risk reduction effect of multinationality varies by heterogeneous resource and production conditions. They indicate that the locational boundness embedded in marketing capability, technological capability, and product type affects cross‐border switchability. IB managers make strategic decisions on resource and product types for their overseas manufacturing subsidiaries in the configuration and coordination processes of their internationalization to maximize multinational operational flexibility. A more effective alignment of resources and capabilities with the strategic intent of boosting geographic fungibility facilitates effective production shifts within the same production network.

Do Bilinguals Outperform Monolinguals in Switching Tasks? Contrary Evidence for Nonlinguistic and Linguistic Switching Tasks.

The benefits of bilingualism in executive functions are highly debated. Even so, in switching tasks, these effects seem robust, although smaller than initially thought (Gunnerud et al., 2020; Ware et al., 2020). By handling two languages throughout their lifespan, bilinguals appear to train their executive functions and show benefits in nonlinguistic switching tasks compared to monolinguals. Nevertheless, because bilinguals need to control for the interference of another language, they may show a disadvantage when dealing with task-switching paradigms requiring language control, particularly when those are performed in their less dominant language. The present work explored this issue by studying bilingualism's effects on task switching within the visual and language domains. On the one hand, our results show that bilinguals were overall faster and presented reduced switch costs compared to monolinguals when performing perceptual geometric judgments with no time for task preparation. On the other hand, no bilingual advantage was found when a new sample of comparable bilinguals and monolinguals completed a within-language switching task. Our results provide clear evidence favoring the bilingual advantage, yet only when the task imposes greater executive demands and does not involve language control.

Quality provision in hospital markets with demand inertia: The role of patient expectations

Switching costs and persistent preferences generate demand inertia and link current and future choices of hospital. Using a model of hospital competition with demand inertia, we investigate the effect of patient expectations on quality. We consider three types of expectations. Myopic patients choose a hospital based on current variables alone, forward-looking but naïve patients consider the future but assume that quality remains constant, and forward-looking and rational patients foresee the evolution of quality. We rank quality provision and show that it is higher under naïve than myopic expectations, while quality under rational expectations may be highest or lowest. This result also holds for patients’ health gains, suggesting that rationality may hurt patients. Additionally, policies to reduce switching costs lead to lower quality, possibly unless patients are rational and cost substitutability between output and quality is sufficiently strong. Finally, we show how optimal price regulation depends on expectations and switching costs.

The Right to Data Portability: conception, status quo, and future directions

For almost three years, the General Data Protection Regulation (GDPR) has been granting citizens of the European Union the right to obtain personal data from companies and to transfer these data to another company. The so-called Right to Data Portability (RtDP) promises to significantly reduce switching costs for consumers in digital service markets, provided that its potential is effectively translated into reality. Thus, of all the consumer rights in the GDPR, the RtDP has the potential to be the one with the most significant implications for digital markets and privacy. However, our research shows that the RtDP is barely known among consumers and can currently only be implemented in a fragmented manner—especially with regard to the direct transfer of data between online service providers. We discuss several ways to improve the implementation of this right in the present article.

Proactive and reactive metacontrol in task switching

While cognitive control enables the selection of goal-relevant responses, metacontrol enables the selection of context-appropriate control operations. In task switching, metacontrol modulates task-switching efficiency by retrieving the associations between a contextual cue and a particular cognitive control demand. While the automatic retrieval of cognitive control is appealing due to its time and energy efficiency, the effects of different contextual cues have been shown in separate studies and appear to have different characteristics. Here, we devised a single task-switching paradigm to test whether we can observe both list-wide and item-specific metacontrol within subjects. In two experiments, we demonstrated reduced switch costs in lists associated with a high probability of switching as compared with lists with a low probability of switching (i.e., a list-wide switch probability [LWSP] effect). Similarly, we observed an analogous item-specific switch probability (ISSP) effect such that items associated with a high probability of switching incurred smaller switch costs as compared with items associated with a low probability of switching. We also confirmed that both list-wide and item-specific switch probability effects were not dependent on lower-level stimulus-response associations. However, the LWSP and the ISSP effects were uncorrelated, suggesting a lack of dependence. Together, these findings suggest that there are two distinct modes of metacontrol that are deployed in a context-sensitive manner in order to adapt to specific cognitive demands.

What Cognates Reveal about Default Language Selection in Bilingual Sentence Production.

When producing connected speech, bilinguals often select a default-language as the primary force driving the utterance. The present study investigated the cognitive mechanisms underlying default language selection. In three experiments, Spanish-English bilinguals named pictures out of context, or read aloud sentences with a single word replaced by a picture with a cognate (e.g., lemon-limón) or noncognate name (e.g., table-mesa). Cognates speeded naming and significantly reduced switching costs. Critically, cognate effects were not modulated by sentence context. However, switch costs were larger in sentence context, which also exhibited significant language dominance effects, asymmetrical switch costs, and asymmetrical cognate facilitation effects, which were absent or symmetrical respectively in bare picture naming. These results suggest that default-language selection is driven primarily by boosting activation of the default language, not by proactive inhibition of the nondefault language. However, relaxation of proactive control in production of connected speech leads to greater reliance on reactive control to produce language switches relative to out-of-context naming, a contextually driven dynamic tradeoff in language control mechanisms.

How Sequentially Changing Reward Prospect Modulates Meta-control: Increasing Reward Prospect Promotes Cognitive Flexibility

Meta-control is necessary to regulate the balance between cognitive stability and flexibility. Evidence from (voluntary) task switching studies suggests performance-contingent reward as one modulating factor. Depending on the immediate reward history, reward prospect seems to promote either cognitive stability or flexibility: Increasing reward prospect reduced switch costs and increased the voluntary switch rate, suggesting increased cognitive flexibility. In contrast, remaining high reward prospect increased switch costs and reduced the voluntary switch rate, suggesting increased cognitive stability. Recently we suggested that increasing reward prospect serves as a meta-control signal toward cognitive flexibility by lowering the updating threshold in working memory. However, in task switching paradigms with two tasks only, this could alternatively be explained by facilitated switching to the other of two tasks. To address this issue, a series of task switching experiments with uncued task switching between three univalent tasks was conducted. Results showed a reduction in reaction time (RT) switch costs to a nonsignificant difference and a high voluntary switch rate when reward prospect increased, whereas repetition RTs were faster, switch RTs slower, and voluntary switch rate was reduced when reward prospect remained high. That is, increasing reward prospect put participants in a state of equal readiness to respond to any target stimulus—be it a task repetition or a switch to one of the other two tasks. The study thus provides further evidence for the assumption that increasing reward prospect serves as a meta-control signal to increase cognitive flexibility, presumably by lowering the updating threshold in working memory.

Bilinguals’ and monolinguals’ performance on a non-verbal cognitive control task: How bilingual language experience contributes to cognitive performance by reducing mixing and switching costs

Aims and objectives/purpose/research questions: The study investigated whether language experience predicts cognitive performance in bilingual and monolingual adults. As indicators of language experience, we focused on language context, typological proximity/distance between two languages and onset age of active bilingualism. As indicators of cognitive performance, we measured mixing costs and switching costs to gauge proactive and reactive control processes during a computerized non-verbal cognitive control task. Design/methodology/approach: Demographic and language data were collected with the Language and Social Background Questionnaire. Mixing and switching costs were subsequently obtained using a cued non-verbal switching task. Data and analysis: The background and switching-task data obtained from 60 bilinguals from non-English-speaking backgrounds and 24 English monolinguals residing in Australia were analysed using linear fixed-effects regression analyses. Findings/conclusions: The results showed that the use of two languages in a dual-language context was associated with reduced switching costs relative to monolingual and bilingual separated-language contexts and with reduced mixing costs only relative to a bilingual separated-language context. Among the bilinguals, lower mixing costs were also associated with an earlier onset age of active bilingualism and smaller typological distance between two languages. Originality: This study’s design included bilinguals as a target group and monolinguals as a control group, thus enabling the identification of possible mixing and/or switching cost advantages in bilinguals. By targeting young/middle-aged adults and considering a set of potentially relevant language experiences, this work was, therefore, well placed to provide clarity on findings for an age group that previously returned mixed and inconclusive results regarding a bilingual advantage. Significance/implications: Our findings reinforce the idea that particular dimensions of bilingual experience rather than bilingualism per se are linked to enhanced cognitive performance.

Dimensions of bilingualism promoting cognitive control

Abstract The study investigated the capacity of language experiences to predict cognitive performance of bilingual adults, with a special focus on participants’ proactive (mixing costs) and reactive (switching costs) control processes. Using a Language and Social Background Questionnaire, demographic and language data were collected from a linguistically diverse group of 60 bilingual adults residing in Australia. The participants were then tested on a non-verbal switching task. The results of multiple regressions revealed that two of the language variables being examined accounted for the variance in the mixing and switching costs. In particular, reduced mixing costs were related to the use of two languages in a dual-language context and earlier onset age of active bilingualism; reduced switching costs were linked to a dual-language context only. These findings reveal that bilingual experiences contribute to shaping proactive and reactive control processes across cognitive domains.

The persisting influence of unattended auditory information: Negative priming in intentional auditory attention switching.

We studied negative priming (NP) in auditory attention switching. In a cued variant of dichotic listening, two spoken number words were presented, one to each ear, one spoken by a female, and one spoken by a male voice. A visual cue indicated whether the male or female voice was the target. A numerical magnitude judgement of the target number was required. The selection criterion could either switch or repeat across trials, so there were attention switch and repetition trials. Two experiments examined NP (distractor becomes target) and also included a "competitor priming" (CP) condition (target becomes distractor), relative to a "no priming" condition (target and distractor not related to previous trial). In Experiment 1, we investigated the basic priming effects. In Experiment 2, we additionally varied the response-cue interval (RCI; 100 ms vs. 1,900 ms) to examine time-related changes in priming. We found longer response times (RT) for switch trials compared with repetition trials (attention switch costs)-that is, when the internal processing context changed. In addition, we found longer RT for NP trials as well as reduced switch costs in long RCI, suggesting that previously relevant attentional settings dissipate over longer time. However, NP was not influenced by attention switches, and it was also not affected byRCI. Hence, NP in auditory attention switching does not seem strongly context or time sensitive.

A new methodology for customer behavior analysis using time series clustering

Purpose The purpose of this paper is to propose a new methodology that handles the issue of the dynamic behavior of customers over time. Design/methodology/approach A new methodology is presented based on time series clustering to extract dominant behavioral patterns of customers over time. This methodology is implemented using bank customers’ transactions data which are in the form of time series data. The data include the recency (R), frequency (F) and monetary (M) attributes of businesses that are using the point-of-sale (POS) data of a bank. This data were obtained from the data analysis department of the bank. Findings After carrying out an empirical study on the acquired transaction data of 2,531 business customers that are using POS devices of the bank, the dominant trends of behavior are discovered using the proposed methodology. The obtained trends were analyzed from the marketing viewpoint. Based on the analysis of the monetary attribute, customers were divided into four main segments, including high-value growing customers, middle-value growing customers, prone to churn and churners. For each resulted group of customers with a distinctive trend, effective and practical marketing recommendations were devised to improve the bank relationship with that group. The prone-to-churn segment contains most of the customers; therefore, the bank should conduct interesting promotions to retain this segment. Practical implications The discovered trends of customer behavior and proposed marketing recommendations can be helpful for banks in devising segment-specific marketing strategies as they illustrate the dynamic behavior of customers over time. The obtained trends are visualized so that they can be easily interpreted and used by banks. This paper contributes to the literature on customer relationship management (CRM) as the proposed methodology can be effectively applied to different businesses to reveal trends in customer behavior. Originality/value In the current business condition, customer behavior is changing continually over time and customers are churning due to the reduced switching costs. Therefore, choosing an effective customer segmentation methodology which can consider the dynamic behaviors of customers is essential for every business. This paper proposes a new methodology to capture customer dynamic behavior using time series clustering on time-ordered data. This is an improvement over previous studies, in which static segmentation approaches have often been adopted. To the best of the authors’ knowledge, this is the first study that combines the recency, frequency, and monetary model and time series clustering to reveal trends in customer behavior.