Supply Behavior Research Articles

Effects of Threshold-Based Incentives on Drivers' Labor Supply Behavior

Effects of Threshold-Based Incentives on Drivers' Labor Supply Behavior

CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management

In Revenue Management (RM) systems, information censoring and the interaction between the forecasting and optimization stages, increases the costs and complexity of performance analysis using historical data. An affordable and suitable alternative is using simulations, but appropriate behavioral models must be considered. In the following document, we discuss and test the implementation of a dynamic air transport market simulator, designed to analyze RM systems. The simulator replicates the behavior of passengers that book seats offered in multiple flights by different airlines. We use discrete choice models to replicate the demand behavior, accounting for preferences and decision rule heterogeneity, and including a temporal evolution of the preference throughout the selling horizon. To replicate the supply behavior, a number of airlines modify the price and quantity of different fare classes offered in each flight, using a variety of RM forecasting, un-constraining, and optimization techniques. The simulator allows analysts to study the economic benefit of RM systems under predefined assumptions in an artificial and controlled environment. This increases the benefits obtained by the correct selection of context-appropriate RM systems and the likelihood of successfully implementing new and complex systems. We test and showcase the simulator performance, studying the entrance of a new airline in a competitive context. We generate, implement and evaluate different RM strategies in response to the introduction of new competition, and discuss the results, highlighting the interpretability and accuracy of the proposed framework.

A note on bride kidnapping and labour supply behaviour of Kyrgyz women

Using data from the 2011 and 2016 Life in Kyrgyzstan surveys, we examine Kyrgyz women’s labour supply elasticities at the extensive margin. We use Heckman’s two-step approach to predict earnings for the non-participating women and then use these predictions to estimate the participation equation. We find that women’s labour supply decision is not influenced by their earnings. We also show that there exists a significant gap in employment propensities among ethnic Kyrgyz women in consensual or arranged marriages compared to women in kidnapped-based marriages. This finding suggests that the practice of bride abduction adversely affects women’s probability of employment and might have negative consequences on their economic well-being.

Labour supply, service intensity, and contracts: Theory and evidence on physicians

SummaryBased on linked administrative and survey panel data, we analyse the labour supply behaviour of physicians who could adopt either a standard fee‐for‐service contract or a mixed remuneration (MR) contract. Under MR, physicians received a per diem and a reduced fee for services provided. We present estimates of a structural discrete choice model that incorporates service intensity (services provided per hour) and contract choice into a labour supply framework. We use our estimates to predict (ex ante) the effects of contracts on physician behaviour and welfare, as measured by average equivalent variations. The supply of services is reduced under an MR contract, suggesting incentives matter. Hours spent seeing patients is less sensitive to incentives than the supply of services. Our results suggest that a reform forcing all physicians to adopt the MR system would have substantially larger effects on physician behaviour than were measured under the observed reform. A pure salary (per diem) reform would sharply reduce services but would increase time spent seeing patients.

Changes in the Vietnamese Timber Processing Industry: A Case of Quang Tri Province, North Central Region

Vietnam’s forestry policies have expanded the area of planted forests in order to meet the supply of raw materials for the timber processing industry. However, the diversity and volume of demand in the industry have also increased, and a shortage of raw materials can be assumed. For clarifying the correspondence of stakeholders, we explore changes in the resource supply behavior of forestry companies and procurement strategies of companies that manufacture lumber for glued laminated timber, medium density fiberboard (MDF) and wood pellets. Next, we discuss issues and future developments surrounding the supply and demand for timber from planted forests. According to a survey of Quang Tri Province, both industrial and on-farm tree planting play an important role in Vietnam’s wood industry. The origin of the supply has been categorized according to its purpose (products). On the other hand, with the declining supply of imported timber and natural forest timber, inquiries from sawmills and glued laminated timber factories for timber from planted forests have increased, and wood pellet manufacturers are facing competition for raw material procurement with MDF manufacturers, and the supply of timber from planted forests is becoming scarce. The key to the solution lies in improving the low productivity of current on-farm tree planting. To this end, forming farmer groups upon the acquisition of forest certification will help achieve economies of scale and bargaining power.

An ensemble forecasting model for predicting contribution of food donors based on supply behavior

An ensemble forecasting model for predicting contribution of food donors based on supply behavior

Trouble Underground: Demand Shocks and the Labor Supply Behavior of New York City Taxi Drivers

We investigate the relevance of targeting behavior in the labor supply decisions of New York City Taxi drivers using exogenous and transitory positive changes in labor demand. Exploiting high-frequency variations in taxi demand due to subway service disruptions, we show that drivers work more when earnings opportunities are greater both when they are above and when they are below their income target. Surpassing the target, however, significantly reduces drivers’ labor supply. Estimates imply that drivers’ response to demand shocks is 40% smaller once they have reached their daily income target. These results suggest that, while drivers’ behavior seems largely consistent with the prediction of a standard model of labor supply, targeting behavior does nevertheless play an essential role in determining drivers’ decisions.

Market assessment of cobalt: Identification and evaluation of supply risk patterns

Since the 1950s all through the 1670s there has been a considerable economic growth of the least developed and devolving countries nowadays. The world will certainly demand more raw materials to sustain this growth, and therefore their supply will need proper adjustments to keep the material market stable. The possibility of supply shortage has been a growing agenda of developed countries (i.e., the member states of the EU). This article discussed the case of cobalt, by using the German Federal Institute for Geosciences and Natural Resources and Volkswagen (BGR-VW) method to analyze historical developments, with the primary goal of the identification and thus quantification of long term supply risks. This study examined past scenarios that shifted the demand and supply behavior of the cobalt market. Several indicators were calculated and classified according to their potential effect on the supply risk of cobalt. By using the assessment presented in this article, industries and other parties with interests in the cobalt market can more accurately judge the future and current risks in the demand and supply of cobalt.

Risk Control Of Onion (Allium ascalonicum L.) Production On Surjan Land

Onion is one of the commodities of annual vegetable crops that have high economic value, a type of short-lived plant, can be propagated vegetatively or generatively, can be developed in low to highland areas and can be cultivated throughout the year. High demand for onions was not followed by supply of onion in the market. This is caused by high risks in the cultivation of Onions. As the theory of supply, the level of supply of a commodity will be affected by the amount of commodities produced. The research aims to analyze the risk factors for onion production and onion supply behavior. The method of this research was survey methode. The location of this research was at Tonjong, Kramatwatu subdistrict. The population of onions farmers was 117 farmers and the amount of the sample used in this research is 54 farmers. Sort of datas that used in this research were primary data and secondary data. The analysis data that used are risk analysis, and multiple linear regression analysis. The results showed that the level of risk of onion in Tonjong Village was 1621.91 or 32 percent of the productivity value obtained by farmers. The source of the risks on Onion farming in Tonjong Village are climate and weather, pests and plant diseases, land fertility, and the effectiveness of using inputs. There are two factors that significantly influence the behavior of onion offering in Tonjong Village, the cost variable of fungicide and the variable cost of insecticide.

Food Supply, Consumption, and Food Safety Behavior Among a Group of Sri Lankans During Early COVID-19 Pandemic in 2020.

Food Supply, Consumption, and Food Safety Behavior Among a Group of Sri Lankans During Early COVID-19 Pandemic in 2020.

Predicting the path of labor supply responses when state dependence matters

The standard labor supply model ignores possible inertia originating from individuals’ previous labor supply decisions and assumes immediate adjustments to policy reforms. In this study we develop a model where past labor market status have effects on present decisions: first, there is habit dependence in the taste for leisure; second, labor market opportunities reflect experiences of the previous period; and third, there is a disutility of deviating from the choice of last period (status quo). All these three components induce state dependence in labor supply behavior and gradual rather than immediate responses to tax and benefit reforms. The model is estimated with data of Norwegian females over the period 2003 - 2009. Simulation results from a tax rate change suggest that state dependence bring down the short-term (first-year) responses to one-third of the full effect, and the full effect is reached after about five years. Our results also suggest that the disutility of deviating from status quo, modeled as a fixed cost of switching, is the dominant driving force of sluggishness in labor supply responses.

Research on Charge and Discharge Strategy of Electric Vehicles Based on New Distribution Network Planning

Based on the planning and distribution of new distribution network, the charging and discharging strategies of existing electric vehicles are studied. According to the number and distribution of existing charging piles, as well as the charging quantity of electric vehicles in each region, the travel law of electric vehicles is analyzed by using the travel chain theory and Monte Carlo algorithm; then, according to the user travel rules and the charging pile capacity of each area, each area is rated, and a hierarchical V2G distribution network is designed. Then, the power supply behavior of electric vehicles in V2G distribution network is analyzed, and the main power supply time period of electric vehicles in the improved V2G distribution network is obtained by using Monte Carlo algorithm; finally, the effectiveness of the proposed scheme is verified by an example, and the power supply situation of electric vehicles is classified.

The inversion of married women's labour supply and wage: Evidence from Thailand

This study investigates the labour supply behaviour of married Thai women with reference to their own and their spouse's wages. Controlling for spousal education and number of children, the main findings indicate an inverse relationship between married women's labour supply and wages, contrary to the evidence from developed countries. The estimated own wage elasticity ranges from −1.70 to −2.40 and the cross elasticity ranges from −0.16 to −0.17, indicating that the impact of own wage on labour supplied is much larger than spouse's wage. The results from disaggregation classified according to different socioeconomic backgrounds also show negative elasticities between own and spouses' wage across all subgroups, except for those with university degrees and higher income.

Is the rise in illicit opioids affecting labor supply and disability claiming rates?

This paper examines how the recent transition of the opioid crisis from prescription opioids to more prevalent misuse of illicit opioids, such as heroin and fentanyl, altered labor supply behavior and disability insurance claiming rates. We exploit differential geographic exposure to the reformulation of OxyContin, the largest reduction in access to abusable prescription opioids to date, to study the effects of substitution to illicit markets. We observe meaningful reductions in labor supply measured in terms of employment-to-population ratios, hours worked, and earnings in states more exposed to reformulation relative to those less exposed. We also find evidence of increases in disability applications and beneficiaries.

Are cooperatives transitioning from cost minimizers to profit maximizers?

PurposeThe purpose of this paper is to examine the optimizing behavior of agricultural supply and marketing cooperatives in the US Midwestern states.Design/methodology/approachThis paper uses firm-level data from CoBank, the primary lender to agricultural cooperatives, to evaluate optimizing behavior of 77 Midwestern agricultural marketing and supply cooperatives from 2014 through 2017. The study uses the data envelopment analysis (DEA) and the weak axioms of cost minimization and profit maximization to identify whether or not a cooperative is following a cost minimization and/or profit maximization objective.FindingsIn contrast to previous research, results provide stronger support for profit maximization as the behavioral objective of agricultural cooperatives instead of cost minimization, especially for larger cooperatives.Practical implicationsTraditional firm theory for investor-owned firms states that businesses seek to maximize profits. Agricultural cooperatives however, could aim to maximize profits so as to redistribute profits back to user-owners as patronage refunds. Or, they could minimize costs so as to lower cost of products sold and services provided to their user-owners. Given users-control the cooperative, knowing the primary objective of agricultural cooperatives will allow for better design of research and education programming.Originality/valueGiven recent changes and consolidation in the agricultural industry among farms and agricultural cooperatives, this study reexamines past work that evaluated the optimizing behavior of agricultural cooperatives. Changes in industry and the necessity to remain competitive from an agribusiness standpoint have resulted in an anticipated shift toward a profit maximizing objective. The value of this study is providing an evaluation framework, using a firm-level comprehensive dataset, that represents the cooperative system.

Supply and Demand Trends of World Gold Reserves

Gold is a deliberate metal whose monetary history has been important across the globe. In this case, the gold-exchange system served as a means of limiting inflation and providing currency stability. India and China have emerged as huge and crucial markets, and as a result, the global market for gold has undergone a fundamental and profound change. This paper provides insight into the growth and demand and supply of gold worldwide. The study's main objectives are: 1. To discover how much official gold World government possesses 2. An endeavour to understand the demand and supply of gold by studying the global market 3. The aim of this study is to explore the evolution of Indian jewellery production. 4. To study the growth and behaviour of global gold reserves and the growth and behaviour of global gold demand and supply. This is an empirical study. Co-efficient of variation, percentage method, linear trend, and compound growth rate are statistical tools that are used. Secondary data collected from books, newspapers, journals, the internet, and recordings is all considered secondary. Because it was found that the two trend coefficients were statistically significant at the 5% level, it has been assumed that the trend in the two components is upward. The annual growth rate of the world gold reserves, global demand, and global supply of gold is 6.83% and 8.42%, respectively. Growth in global demand and supply of gold was found to be greater than in the world's gold reserves. In terms of the compound growth rates, world gold reserves are increasing at 0.84% per year, while global demand and supply of gold are both increasing at 8.91% per year. It is important to concentrate on the question of whether gold is a significant asset in India in terms of ongoing research.

The Effect of Fertility on Female Labor Supply in a Labor Market with Extensive Informality

This paper presents new evidence on the causal relationship between fertility and female labor supply. We particularly focus on how informal employment affects post-fertility labor supply behavior of mothers. We employ an instrumental variable strategy based on an unused data source for twin births in Turkey—a large developing economy with extensive labor informality. We find that fertility causally affects female labor supply. After the first twin birth, female labor supply declines significantly and the ones who drop out of the labor force are mostly the informally employed women. Following further increases in family size introduced by multiple second and third births (i.e., unanticipated increase from 1 kid to 3 kids, and from 2 kids to 4 kids), formally employed females start dropping out of the labor force and hours of work decline. Wages and job search intensity also decline for females as fertility increases. We also investigate the impact of fertility on labor supply of fathers. Unlike females, males increase their labor supply, which mostly comes from the increase in informal employment—possibly due to a decline in reservation wages. Accordingly, wages decline, hours of work increase, and job search activity shifts from formal to informal search methods for males. Overall, these results suggest that informally employed women tend to quickly drop out of the labor force after giving birth. Fathers, on the other hand, become more likely to accept inferior, low-pay, and informal job offers as fertility goes up. The results are robust to using alternative IV specifications based on sex composition of children.

Bride Kidnapping and Labour Supply Behaviour of Married Kyrgyz Women

Using data from the 2011 and 2016 Life in Kyrgyzstan surveys, we examine Kyrgyz women's labour supply elasticities at the extensive margin. We use Heckman's two-step approach to predict earnings for the non-participating women and then use these predictions to estimate the participation equation. We find that women's labour supply decision is not influenced by their earnings. We also show that there exists a significant gap in employment propensities among ethnic Kyrgyz women in consensual or arranged marriages compared to women in kidnapped-based marriages. This finding suggests that the practice of bride abduction adversely affects women's probability of employment and might have negative consequences on their economic well-being.

Wind of Change? Cultural Determinants of Maternal Labor Supply

Does the culture in which a woman grows up influence her labor market decisions once she has had a child? And to what extent can exposure to a different cultural group in adulthood shape maternal labor supply? To address these questions, we exploit the setting of the German reunification. A state socialist country, East Germany strongly encouraged mothers to participate in the labor market full-time, whereas West Germany propagated a more traditional male breadwinner-model. After reunification, these two cultures were suddenly thrown together, with consequent increased social interactions between East and West Germans through migration and commuting. Zooming in on East and West Germans who migrated across the former inner-German border, we document a strong asymmetry in the persistence of the culture in which women were raised. Whereas East German female migrants return to work earlier and work longer hours than their West German colleagues even after long exposure to the more traditional West German culture, West German migrants adjust their post-birth labor supply behavior nearly entirely to that of their East German colleagues. West German return migrants continue to be influenced by the more gender egalitarian East German norm even after their return to the West, pointing towards the importance of learning from peers. Finally, taking advantage of differential inflows of East German migrants across West German workplaces in the aftermath of reunification, we show that even a partial exposure to East German colleagues induces “native” West German mothers to accelerate their return to work after childbirth, suggesting that migration might be a catalyst for cultural change.

Outdoor sports and active tourism company management in Cordoba (southern Spain): An empirical study on the perception and behavior of supply

This paper analyzes the perception and behavior of active tourism companies that provide outdoor physical sports activities in emerging tourist destinations in Cordoba, an inland province of southern Spain. The active tourism supply of registered businesses was analyzed using fieldwork data and more than 30 variables including training and qualification of human resources, business vision of demand, marketing and promotion strategies, and perceptions of supply trends. To this end, a quantitative-qualitative empirical study was performed together with in-depth interviews of key stakeholders. Official registry sources were also used to complement the data. The results show a fragmented network of micro-SMEs that are functionally isolated from the rest of the tourism supply and display an intuitive and poor market-oriented behavior due to the inadequate management of their client portfolio. Such management models make it difficult for these businesses to take advantage of key strategic assets to increase profitability and achieve a competitive and sustainable advantage.