Table of Content

20 June 2021, Volume 29 Issue 6 Previous Issue    Next Issue

Articles

Select

Asset Portfolio and Pricing of Multi-factor Matrix Regression under Financial Network Risk LI Ai-zhong, REN Ruo-en, DONG Ji-chang 2021, 29 (6):  1-9.  doi: 10.16381/j.cnki.issn1003-207x.2019.0720 Abstract ( 859 )   PDF (1486KB) ( 827 )   Save This paper starts from the equity and creditor's rights of the enterprise. An undirected graph network is constructed based on the default distance, and the risk of contagion, spillover, and spread in the form of a network with uncertainty risk is analyzed. The sparse network optimization method using the minimum spanning tree minimizes Non-linear risk of portfolio.From the perspective of resource allocation, sparse clustering algorithms are used to dig deeper into the characteristics of assets and their dependencies are captured, and a multi-objective, multi-index robust matrix regression strategy is adopted to dynamically track market trends.Then, the adaptive weight learning strategy is used to select and configure the asset portfolio under the influence of the network risk overlay.Finally, the sparse clustering optimization strategy of the portfolio under the minimum spanning tree risk is obtained, which further expands the asset pricing multi-factor model. It is found that the sparse clustering portfolio with multi-objective matrix regression not only selectively discards the investment targets in the portfolio, enables funds to be allocated to high-quality assets in a centralized manner, but also helps to reduce or even cut off the spread of risk through the minimum spanning tree.The risk analysis method of financial networks not only effectively describes the non-linear superposition effect of risks infecting each other, affecting each other, and strengthening each other in a network manner.In addition, the compression of asset weights and the optimization of the minimum spanning tree minimize the impact of risk contagion in the worst case.It is a useful supplement to asset allocation and comprehensive risk management in a complex network environment, and provides a desirable investment strategy and decision basis for long-term investment funds to obtain a more balanced asset allocation of risks and returns.This paper follows the research ideas of capital asset pricing, inherits and extends the classic asset pricing model, adds non-linear superimposed network risk to the portfolio optimization model,provides a new perspective for the implementation of comprehensive risk management, portfolio allocation and asset pricing, enriches the understanding of market microstructure and resource allocation efficiency, deepens the understanding of behavioral finance such as market anomalies, and expands the portfolio model and multi-factor Asset pricing model. References | Related Articles | Metrics

Select

Research on the Diversification Benefits of Commodity Futures under the Background of Commodity Financialization QI Yue, LIAO Ke-zhi 2021, 29 (6):  10-22.  doi: 10.16381/j.cnki.issn1003-207x.2019.0831 Abstract ( 525 )   PDF (1460KB) ( 540 )   Save The increasing variety of commodity futures provides a feasible way to improve the risk-return structure of traditional portfolio for Chinese investors.While the trend of commodity financialization indicates that the diversification benefit of commodity futures may be vanishing. Based on mean-variance spanning test under different distribution assumptions about asset returns, this paper investigates the potential benefits of commodity futures in Chinese market. Moreover, the in-sample and out-of-sample portfolio effects are analyzed by adding commodity futures to a stock-bond portfolio for typical asset allocation strategies such as equally-weighted, risk-parity and mean-variance model. The empirical results of this paper indicate that the addition of commodity futures in the sample period can significantly improve the risk-return structure of traditional portfolio selection, no matter whether short selling constraint is set or not. Moreover,the improvement of portfolio efficient frontier by commodity futures is mainly realized by risk reduction, whilethe addition of commodity futures can hardly bring excess returns to traditional stock-bond portfolio.Furthermore,the introduction of commodity futures can effectively reduce the standard deviation and tail risk in out-of-sample rolling test, and the allocation of commodity futures by investors with high risk aversion can achieve higher equivalence returns. The findings of this paper show that although the trend of commodity financialization is irreversible, the introduction of commodities into traditional portfolio is still an effective way to enhance portfolio performance in Chinese market. References | Related Articles | Metrics

Select

Research on the Cross-market and Cross-network Contagion Mechanism of Preventing and Controlling Financial Risk in the New Era WANG Jun-yong, LI Xin-dan, Lin Liang-cai 2021, 29 (6):  23-35.  doi: 10.16381/j.cnki.issn1003-207x.2018.1371 Abstract ( 667 )   PDF (4690KB) ( 504 )   Save With the continuous enhancement of the linkage and risk contagion among financial sub-markets, the ability of cross-contagion of financial risk across markets is also gradually increasing. Therefore, based on the Xi Jinping's socialist financial thought with Chinese characteristics in the new era and the background of big data era, the SIRS model is used to explore the cross-market and cross-network contagion mechanism of preventing and controlling financial risk in the new era. Through the theoretical deduction of the model and the numerical simulation analysis, the research results show that (1) the cross-market and cross-contagion of preventing and controlling financial risk mainly depends on R0, the larger its value is, the easier the spreading tendency that the financial risk cross-market and cross-contagion will form; (2)the cross-contagion spreading tendency of financial risk among financial sub-markets mainly depends on β、δ、α、μ、γ and other factors; (3)the financial risk prevention measures, which only take the ex-ante defense measures or the post-event prevention and control measures, will be inefficient. Precautions against financial risk should be taken as a whole from the two layers of pre-defense and ex-post resolve so as to enhance the ability to prevent cross-market and cross-contagion of financial risk. On this basis, the cross-market and cross-network contagion mechanism of preventing and controlling financial risk from three levels are put forward. It can provide some references for building the financial risk rescue mechanism plan to block further cross-contagion and spread of financial risk among various financial sub-markets, achieving the goals of strengthening the ability of preventing and controlling cross-market and cross-contagion of financial risk in the new era, and better preventing and resolving systemic financial risk to help with fighting the battle of better preventing and resolving significant risk and safeguard national financial security. References | Related Articles | Metrics

Select

Commercial Bank Product Innovation Performance Evaluation Model Considering Risk Impact XU Tao, YOU Jian-xin, SHAO Yi-lei 2021, 29 (6):  36-47.  doi: 10.16381/j.cnki.issn1003-207x.2019.0170 Abstract ( 501 )   PDF (3195KB) ( 388 )   Save In recent years, China's economy has entered a new normal and financial reforms have continued to deepen. Therefore, commercial banks have intensified their innovation and various types of innovative products have emerged rapidly. As a result, analyzing the product innovation performance of commercial banks is particularly important for promoting the development of commercial banks and enhancing the competitiveness of commercial banks. Considering the risks in the process of commercial bank product innovation, an improved data envelopment analysis (DEA) framework is proposed to evaluate the performance of bank product innovation. Credit risk in the process of commercial bank product innovation is considered as an undesired output and incorporated into the evaluation index. According to whether there is a synchronous relationship between innovation income and credit risk, undesirable outputs are set with strong disposability and weak disposability respectively. Then, the fixed correlation model (FCM) and the change correlation model (VCM) based on DEA are constructed and used for commercial bank product innovation performance evaluation. Subsequently, by constructing the output optimization model of the objective function, the target revenue of product innovation under the FCM and VCM models is estimated. By decomposing the added value of target income under the two models, the promotion of product innovation income of commercial banks is decomposed into technical and non-technical reasons. The decomposition of added value is also used as the basis for analyzing the level of risk management. Finally, the proposed DEA framework is applied to 25 Chinese listed commercial banks based on the data in the year of 2013, 2015 and 2017. Through the analysis of product innovation performance, the conclusions are as follows:(1) In 2013-2017, the product innovation gaps of the four types of commercial banks were large, the performance of joint-stock banks was at the highest level, and the efficiency of rural commercial banks was the lowest. During the period of observation, the efficiency of joint-stock banks and city commercial banks showed an upward trend, and the change in the efficiency value of state-owned banks was reversed. (2) Under the constraints of existing risk management levels, joint-stock banks and city commercial banks need to reduce the scale of product innovation and reduce corresponding income. After improving the level of risk management, the commercial innovation income of commercial banks will be effectively improved. (3) Through the optimization of risk management technology, the rural commercial bank's product innovation income has the largest proportion of changes, followed by city commercial banks, joint-stock banks and state-owned banks. The change ratio also reflects the current level of risk management of commercial banks. From the perspective of absolute income changes, state-owned banks have the greatest gains through risk management. According to the research conclusions, several management suggestions are also proposed for commercial banks to promote their product innovation performance and strengthen their risk management capabilities. References | Related Articles | Metrics

Select

Investment and Reinsurance Games between an Insurer and a Reinsurer under the Heston Model ZHU Huai-nian, ZHANG Cheng-ke, CAO Ming 2021, 29 (6):  48-59.  doi: 10.16381/j.cnki.issn1003-207x.2019.0270 Abstract ( 495 )   PDF (1648KB) ( 260 )   Save Studies of optimal reinsurance and/or investment decisions are becoming a significant portion of the mainstream research of insurance and actuarial science. In a regular framework, an insurer is assumed to purchase reinsurance contracts from a reinsurer to reduce the risk of random individual claims, while the insurer may invest in a financial market for a higher rate of return or to hedge the risk of the claims, under certain optimality rules. There is a voluminous literature examining optimal investment and reinsurance strategies for insurers with different objectives, as discussed in Wang et al.[Wang N, Zhang N, Jin Z, et al. (2019). Robust non-zero-sum investment and reinsurance game with default risk. Insurance:Mathematics and Economics, 84, 115-132]. However, the existing studies do not take into account the effect of interactions between an insurer and a reinsurer. In fact, economical and sociological studies have pointed out that human beings or firms always seek for partners, and that such cooperative behaviors have significant impacts on one's decision-making. In this article, with considering the interests of both insurer's and reinsurer's, we study an investment and reinsurance game between an insurer and a reinsurer. The claim process is modeled by a Brownian motion with drift. The insurer is allowed to purchase the proportional reinsurance to mitigate the underlying risks of the claims; and both the insurer and the reinsurer are allowed to invest in a risk-free asset and a risky asset whose price dynamics follows the famous Heston stochastic volatility model. The main objectives of the insurer and the reinsurer are to maximize the expected utility of a sum of weighted surplus at terminal time T. To this end. a nonzero-sum cooperative game model has been established. In order to solve this established game model, dynamic programming principle has been utilized, and it is found that dynamic programming principle for this class of nonzero-sum game problems leads to a non-canonical fixed-point problem of coupled non-linear partial differential equations. Despite the complex structure, the existence of the Nash equilibrium reinsurance-investment strategies and the corresponding value functions of the insurer and the are established in a representative example of the constant absolute risk aversion utility function under a mild condition. Furthermore, closed-form expressions for the equilibrium reinsurance-investment strategies and value functions for both the insurer and the reinsurer are derived, and the pricing of insurance is analyzed by using the relationship between supply and demand of reinsurance contracts in the equilibrium market. Finally, numerical studies are also provided to illustrate the impact of parameters on the Nash equilibrium strategies. The obtained results serve as an interesting complementary case of the analogous analysis in nonzero-sum stochastic differential investment and reinsurance games. References | Related Articles | Metrics

Select

Multiperiod Mean Semi-absolute Deviation Portfolio Selection with Total Short Selling Constraints ZHANG Peng, ZENG Yong-quan 2021, 29 (6):  60-69.  doi: 10.16381/j.cnki.issn1003-207x.2017.1605 Abstract ( 438 )   PDF (826KB) ( 530 )   Save In this paper, a new multiperiod mean semi-absolute deviation portfolio selection model with total short sellingconstraints, threshold constraints, transaction costs and borrowing constraints is proposed. The return and the risk are quantified by the mean value of return and by the semi-absolute deviation of return, respectively. Because of the transaction costs, the proposed model is a dynamic optimization problem with path dependence. The proposed model is approximated to a dynamic programming model. A novel discrete iteration method is designed to obtain the optimal portfolio strategy, and is proved linearly convergent.Finally, the comparison analysis of the different total short selling constraints and different preference coefficients in the portfolio is provided by numerical examples to illustrate the efficiency of the proposed method and the designed algorithm using real data from the Shanghai Stock Exchange. References | Related Articles | Metrics

Select

Optimal Decision Analysis of Information Security Investment and Cyber Insurance under Mandatory Constraints DONG Kun-xiang, XIE Zong-xiao, ZHEN Jie 2021, 29 (6):  70-81.  doi: 10.16381/j.cnki.issn1003-207x.2019.1057 Abstract ( 436 )   PDF (2610KB) ( 642 )   Save The management and prevention of information security risks have become the most concern for enterprises and government departments. The security investment and cyber insurance are the most efficient tools for firms to reduce the loss of information security risks, which caused by hacker attacks or improper security operations. With the promulgation of Cyberspace Security Law of China and the General Data Protection Regulations of the European Union and other mandatory rules and regulations, the firms' information security investment and security level will be affected by these mandatory constraints. In this context, the optimal decision problem of information security investment and cyber insurance under mandatory constraints is studied in this paper. And the optimal security investment and cyber insurance premium determination based on bankruptcy probability constraint under observable enterprise loss and unobservable enterprise loss were compared. Research results show that: (1) In the observed loss and fair premium cases, when to maximize the expected utility of individual enterprises, the optimal security investment was explored, and the optimal values could be improved by the government subsidies and mandatory constraint. But when all enterprises maximize utility, the firms' security investment and her total utility could be increased only by the mandatory constraint. What's more, the optimal security investment has nothing to do with the loss of the observable degree. (2) In the case of unobservable loss, when the expected utility of a single firm is maximized, the security investment of the firm will be increased; while when the utility of all firms are maximized, any firm cannot easily reduce the security investment, even if other firms reduce the security investment. (3) Under the constraint of ruin probability and actuarially fair policy, the amount of security investment of the firm would not be affected by the premium formulation. So the security investment, vulnerability level and expected utility of the firm remain unchanged. But as the premium increases, the amount of claims increases continuously. Under the constraint of ruin probability and the ratio of coverage policy, the firm's security investment is increased, but the firm's security investment and expected utility is decreased. The policy implication of this paper could be applied by firms to control information security risks and guide the investment of information security and cyber insurance. However, the dynamic distribution of information security risk loss and the deductible of insurance are not considered in this research. In future work, the dynamic risk measurement method and CVaR method should be taken into consideration. References | Related Articles | Metrics

Select

Research on Robust Optimization for Route Selection Problem in Multimodal Transportation under the Cap and Trade Policy CHENG Xing-qun, JIN Chun, YAO Qing-guo, WANG Cong 2021, 29 (6):  82-90.  doi: 10.16381/j.cnki.issn1003-207x.2018.1826 Abstract ( 713 )   PDF (1256KB) ( 590 )   Save The rapid growths of international trade and freight transportation have brought multimodal transportation into a new stage. Meanwhile, several countries are planning to or have already carried out low-carbon policies to reduce CO2 emissions released from transportation industry, including China.Route selection problem in multimodal transportation under the cap and trade policy is investigated in this paper, which takes the uncertainties of transport time and fright rate into consideration, and their probability distributions are also unknown. Robust optimization is introduced to deal with the uncertainty of parameters, which allows us to conduct mixed integer linear programming models immune to data uncertainty. Firstly, the box uncertainty set is applied to capture uncertainties of time and fright rate, and then a robust optimization model offering the flexibility of adjusting the budget of uncertainties is constructed based on the deterministic model for route selection problem in multimodal transportation under cap and trade policy. The robust model is finally transformed into a tractable robust equivalent model by dualization. Numerical experiments are conducted according to a real multimodal transportation system in southern China, and related data are collected from logistics companies, websites of local transportation sectors and annals of relevant departments.Results of experiments show that the proposed robust models could deal with route selection problems in multimodal transportation under uncertainty, in which the unknown parameters'probability distributions are not given.Those models allow decision makers to make decisions by adjusting the budget parameters of uncertainty according to their preferences. Moreover, it is found that either transportation time uncertainty or fright rate uncertainty has influences on multimodal transportation routing decisions, but the influences are carried out in different ways.Furthermore, after expanding the above models under the cap and trade policy to other low-carbon policies, it is advised that a combination of different low-carbon policies is better for emission reduction in multimodal transportation. A new idea about solving route selection problem is provided in multimodal transportation under the cap and trade policy and uncertainty. References | Related Articles | Metrics

Select

Patent Technical Authorization, Production Outsourcing and Contracts Design JIN Liang, ZHENG Ben-rong, ZHOU Nan 2021, 29 (6):  91-104.  doi: 10.16381/j.cnki.issn1003-207x.2018.0851 Abstract ( 479 )   PDF (2304KB) ( 696 )   Save Since reform and opening up, with the constant deepening of people's right consciousness, the consciousness of intellectual property protection permeates gradually every field of our lives. To strengthen the protection and application capacity of intellectual property as well as improve the creative awareness of science and technology are significant develop our national economy, and encourage scientific research. Patent licensing and authorization agreements are key to turning intellectual property into actual productivity. Along with the rapid development of technology and increasing degrees of product complexity, technology licensing has being widely used to commercialize firms' achievements of innovations. In this paper, we considered a two-stage game in a supply chain formed of a patent owner, a branded manufacturer and an original equipment manufacturer (OEM). In the first stage, the patent owner license its technology to the branded manufacturer, which is outsourcing production to the OEM in the second stage. The main work in this paper includes four parts. At first, optimal licensing contract is proposed and the optimal pricing strategies and optimal order quantity under full information and asymmetric information are analyzed, respectively. Second, on this basis, the effects of scale economies effect on the equilibriums are analyzed, and consequently the optimal pricing, order quantity and contract design of supply chain members under different types of market demand are compared. Third, to address the value of scale economies effect of OEM, the optimal decisions of supply chain's enterprises, and the changing of profit of supply chain members, consumer surplus and social welfare in different situations are compared. Finally, the optimal decisions of supply chain's enterprises, and the changing of consumer surplus and social welfare under full and asymmetric information are compared. And the effect of different types of market demand and asymmetric information on willingness to share information and negotiation behaviors is presented. The results show that, the model designs a patent license agreement which meets participation constraint and incentive compatibility constraint to screen the market demand information from the patent owner point of view. By solving the optimization problem, the optimal pricing, order quantity and licensing contract design for supply chain members are presented under asymmetric information, respectively. Further, it is found that the OEM will receive more profit due to the economies of scale, but it may not decrease the consumer surplus and the social welfare. In conclusion, the existence of asymmetry information leads to the change of the supply chain's enterprises' profit and the whole supply chain' profit, while the asymmetry information may not decrease the consumer surplus. Moreover, when the patent owner's bargaining power satisfy certain conditions, the branded manufacturer will reveal the private information voluntarily and share the supply chain's profit with patent owner. In summary, the value of scale economies effect under asymmetric information is investigated. Moreover, the licensing contract are used to coordinating the tech supply chain under asymmetric information, which offers a practical and a theoretical guidance to improve the value of tech supply chain. References | Related Articles | Metrics

Select

Incentive Strategy for Complex Product Quality Control Based on Quality Awareness ZHANG Qiao-ke, CHEN Hong-zhuan 2021, 29 (6):  105-114.  doi: 10.16381/j.cnki.issn1003-207x.2018.1584 Abstract ( 544 )   PDF (1343KB) ( 670 )   Save Incentives play an important role in the cooperation between the pivotal manufacturer and supplier in the quality control process. The pivotal manufacturer usually forms the quality awareness according to the requirement of customers before the production R&D. This paper investigates whether the incentive strategy based on this quality awareness will realize the quality control. Accordingly, a Stackelberg game model consisting of a pivotal manufacturer being the leader and its downstream supplier being the follower is established, and their optimal decisions on the efforts level and the quality level with and without incentives are discussed. The incentive strategy can be divided into two types:the incentive based on the supplier's product quality level and the pivotal manufacturer' quality awareness level. Results show that incentives are the intrinsic motivation for suppliers to promote the collaboration and the product quality. The pivotal manufacturer can further encourage suppliers to be more devoted to improving the product quality by incorporating the quality awareness into the incentive strategy, which enables both parties as well as the whole supply chain to obtain higher profits. In addition, sensitivity analysis shows that collaboration level between two parties and the quality level increase with the level of quality awareness. References | Related Articles | Metrics

Select

Research on the Congestion of Decision Making Units with Undesirable Outputs ZHOU Zhong-bao, REN Tian-tian, XIAO Kun-hu, WU Shi-jian, LIU Wen-bin 2021, 29 (6):  115-124.  doi: 10.16381/j.cnki.issn1003-207x.2019.0192 Abstract ( 373 )   PDF (973KB) ( 216 )   Save Congestion is an unfavorable economic phenomenon where the production efficiency is damaged by excessive increase of inputs. As a main source of inefficiency, congestion has been widely explored in both academia and industry. A common assumption in existing studies is that all inputs and outputs of decision making units (DMUs) are desirable. However, bunches of situations where output indices are undesirable exist in real applications. In this paper, the congestion measurement for DMUs with undesirable outputs is explored. First, the definition of congestion for DMUs with undesirable outputs is developed. Then, based on the input relaxation model, a one-model approach is established to measure the congestion in the presence of both desirable and undesirable outputs. By applying the proposed model, not only the existence of congestion is determined, but also the amount of congestion in each input is measured. Furthermore, the relationship between congestion and technical inefficiency is demonstrated. Finally, an empirical study of listed commercial banks in China is employed to test the congestion performance via the proposed approach. The results show that a high degree of congestion is detected for most commercial banks and the congestion varies among state-owned banks, stock banks and urban commercial banks. Some practical policy suggestions are provided to relieve bank congestions. To some extent, the proposed approach enriches the theoretical research on the congestion of DMUs with undesirable outputs. Empirically, feasible improvement strategies are provided for decision makers who face congestion problems. References | Related Articles | Metrics

Select

Research on Cross-Coordination of ATO Supply Chain under Incentive Compatibility Contract LI Yi-peng, MA Shi-hua, YUAN Kai-fu 2021, 29 (6):  125-135.  doi: 10.16381/j.cnki.issn1003-207x.2018.1324 Abstract ( 450 )   PDF (1040KB) ( 621 )   Save Assemble-To-Order system as a vital strategy has been widely used by many manufacturing firms. A problem of asymmetric cost information is considered in assemble-to-order supply chain comprised of two component suppliers and single manufacturer. Based on the profiles of every members under complete information, the loss of vertical manufacturer and horizontal complementary supplier are analyzed due to "information disguise" from supplier who has private cost type information, and vertical supplier-manufacturer contract is presented based on incentive compatibility and cross-coordination contract with horizontal complementary supplier's participation. And the menu of contract is incentive feasible if it satisfies both incentive compatible and participation constraints. Through mathematical deduction and data analysis, using Excel VBA programming to simulate models and data example, the result shows that:(1)under complete information, manufacturer can occupy all profit of supply chain, upstream suppliers' reservation revenues are zero.(2)under asymmetric information of supplier's cost, single supplier's information disguise not only reduces vertical manufacturer's profit and horizontal complementary supplier's profit, but also is harm to global benefit of supply chain.(3) the vertical incentive contract which is offered by manufacturer to asymmetric information supplier, can reveal the true cost information of asymmetric information supplier, and increase expected profits of vertical manufacturer and complementary supplier. But that cause "low efficiency downward distortion" effect which decreases the horizontal supplier's optimal order quantity.(4) The cross-coordination of sharing information rent between manufacturer and horizontal symmetric information supplier can reveal true cost type information and increase optimal order quantity and global profile of whole supply chain. Above results fill the gap in the literature of ATO supply chain and incentive contract. And the managerial insight suggests that supplier need to cross-coordinate not only with vertical manufacturer, but also with horizontal complementary supplier. References | Related Articles | Metrics

Select

Competitive Model for Multistage Green Closed-Loop Supply Chain with Recyclers LIN Gui-hua, FENG Wen-xiu, YANG Zhen-ping 2021, 29 (6):  136-148.  doi: 10.16381/j.cnki.issn1003-207x.2018.1773 Abstract ( 489 )   PDF (2816KB) ( 381 )   Save Environmental problems including the greenhouse effect and shortage of energy are becoming severe. Reducing the carbon emission and saving resources in supply chain networks are regarded as an important issue in protecting the environment. Various carbon emission reduction technologies should be invested by all participants in supply chain networks and the process of product recycling should be intervened by the government. In this paper, based on these viewpoints, a competitive model composed by manufacturers, freight carriers, retailers, consumers, and recyclers for a multistage green closed-loop supply chain is presented. In the model, in consideration of the carbon emission reduction technologies, mandatory recycling amount from the government, and conversion rate of end-of-life products, the profit of each participant is maximized. According to the analysis of each participant's decision behavior, the equilibrium conditions are given and then transformed into a mixed complementarity problem. That is, the equilibrium strategies may be obtained by solving this mixed complementarity problem. The numerical results given in the paper reveal the following issues:(1) Product cycle may be stimulated due to the increasing number of stages in supply chain networks so as to raise the effective utilization of resources. (2) The amounts of green technology invested by the participants increase as the number of stages increases. (3) The more surplus value the end-of-life products exist, the higher ratio of the remanufactured product is and the more end-of-life products manufacturers are devoted to remanufacturers. (4) The incentives for recycling subsidies are more significant when the amount of mandatory recycling is lower. References | Related Articles | Metrics

Select

The Impact of Fairness Preference on the Equilibrium Decisions of Retailer-led Supply Chain LIN Qiang, SONG Jia-qi, FU Wen-hui 2021, 29 (6):  149-159.  doi: 10.16381/j.cnki.issn1003-207x.2020.0442 Abstract ( 606 )   PDF (1839KB) ( 318 )   Save With the rapid development of the customer-oriented and experience economy, retail giants such as Amazon and Wal-Mart, which are closest to the end consumers, have rapidly dominated their supply chains, and obtained the power of wholesale pricing of products. This kind of supply chain which dominant the capital, information, and channels of the supply chain is called as "retailer-led supply chain". In the retailer-led supply chain, the upstream members are mainly small and medium-sized manufacturers in a weak position, which is often characterized by diseconomies of scale in production. The dominant retailer may encroach on the profits of the manufacturers in order to gain more share of the profits. The two sides will inevitably have conflicts due to the distribution of profits. People attach great importance to fairness preference in the transaction process, and fairness is an important factor to maintain cooperation. Taking the partner's profits as a fair reference, a utility model considering the disadvantageous inequality of the manufacturers, and the advantageous inequality of the retailor is built. In this paper, the influence of the production diseconomies of the manufacturer, the shift in the wholesale pricing power from the manufacturer to the retailer, and the fair preferences of one side/both sides of the upstream and downstream firms on the supply chain equilibrium decision-making and operational efficiency are studied. The main work in this paper includes the following three parts. First, the equilibrium decision of supply chain without considering the fair preference of retailers and manufacturers as a comparative benchmark is investigated. Second, the optimal decision-making and utility of each member of the supply chain under the three conditions are explored:only the manufacturer with fair preference, only the retailer with fair preference, and both with fair preference. The influence of the member enterprises' fair preference on the optimal decision-making behavior and utility of the supply chain is also discussed. Finally, the numerical analysis results confirm the above conclusion. The results show that, first, compared with the optimal output when supply chain members have no fair preference, the optimal output when supply chain members have fair preference (three preferences) is higher, and the efficiency of supply chain is improved, furthermore, under certain conditions, the wholesale price contract can achieve coordination of the supply chain. Second, the fairness preference of both parties has the most significant influence on the optimal decision and utility of each member enterprise in the supply chain. Third, there may not be a simple linear relationship between the optimal decision (or utility) of each member enterprise in the supply chain and the equity preference coefficient of upstream and downstream enterprises, but the specific factors should be closely related to the price sensitivity of consumers and the production cost of manufacturers. References | Related Articles | Metrics

Select

Optimal Ordering Policy and Pricing Strategy for Holding Supply Chain Based on Bargaining Model LIU Ying, MU Yin-ping 2021, 29 (6):  160-167.  doi: 10.16381/j.cnki.issn1003-207x.2018.1306 Abstract ( 413 )   PDF (718KB) ( 474 )   Save The optimal strategies of a supply chain system which consist of a risk-averse supplier and a risk-averse manufacturer are demonstrated. In order to alleviate the supply uncertainty, more and more enterprises share revenues and risks by investing in upstream suppliers. Under the condition of investment shareholding, how should supply chain member (supplier, manufacturer, etc.) make scientific decisions to maximize profits and minimize risks? Under this background, this paper analyses the optimal ordering and pricing decision of supply chain system. Considering the risk aversion characteristics of enterprises in practice, the risk preference characteristics of manufacturers and suppliers are described by constructing a mean-variance model. At the same time, Nash bargaining model is constructed to capture the process of negotiation between supply chain member in practice. The study presents equilibrium results and proves the existence and uniqueness of the Nash bargaining solutions. It is also found that the optimal supply/purchase quantity of supply chain is the weighted average of the minimum risk supply/purchase quantity of the manufacturer and the supplier, and the weight depends on the degree of risk aversion of the manufacturer and the supplier. Through comparative static analysis of equilibrium contracts, it is found that with the enhancement of negotiation ability of manufacturers, equilibrium price will decrease, utility income of manufacturers will increase, and utility income of corresponding suppliers will decrease; with the increase of risk aversion of manufacturer (supplier), manufacturer (supplier) will choose to accept higher prices and sales; with the increase of shareholding ratio, the volume of supply chain transactions will increase, and the more risk aversion the manufacturer (supplier) gets, the more profit risk the negotiated supply contract will reduce. The results of this study have important implications for supply chain in practice. The model framework of this paper can reflect the pricing and ordering decisions of independent supply chain enterprises, integrated supply chain enterprises and vertical shareholding supply chain enterprises. It provides a theoretical basis and decision guidance for the practice of vertical mergers and acquisitions of supply chain. References | Related Articles | Metrics

Select

On Contract Designing for Logistical Freight Damage Control Considering Moral Hazard and Damage Tracing SONG Jie-zhen, CHANG Jian-cong 2021, 29 (6):  168-178.  doi: 10.16381/j.cnki.issn1003-207x.2018.1268 Abstract ( 491 )   PDF (1104KB) ( 454 )   Save Freight damaging is one of the prominent problems in the process of logistics service. In order to control cargo freight damage, the optimal cooperation contracts between the cargo owner and the carrier were studied in this paper. The background is that the cargo owner is in charge of cargo packaging, whereas the carrier is responsible for cargo transportation. The damage can be caused by packaging or transportation. Both the owner and the carrier could endogenously make efforts to improve packaging rationalization or transportation rationalization, and then lower the logistical freight damage rate. However, as their efforts is not observable, they have the motivation of opportunism, leading to the moral-hazard. In the single moral-hazard case, the carrier's transportation rationalization effort is not observable, whereas in the double moral-hazard case, neither the cargo owner's packaging rationalization effort nor the carrier's transportation rationalization effort is observable. A reward/penalty contract for each case was designed considering whether the owner's damage traceability is controllable. Taking the optimal packaging rationalization and transportation rationalization efforts in the case of information symmetry as a reference, the contracts parameters in different symmetric cases were determined based on Principle-Agent model. It is found that in the single moral-hazard case, the reward or the penalty contract alone could motive the owner and the carrier to exert the aforementioned optimal efforts, and thus reduce the damage rate to the minimum level. But in the double moral-hazard case, the two contracts must be combined together to reach the same effect; The optimal contact for the double moral-hazard case also applies to the single moral-hazard case; With stronger damage traceability, the owner is advised to decrease the penalty on the carrier; Besides, compared with the case when damage traceability is uncontrollable, the owner should also lower the penalty when it is controllable. Our contribution lies in constructing the relationship between the damage rate and the bilateral efforts of packaging rationalization and transportation rationalization, and simultaneously considering the moral-hazard and damage tracing problems in designing the cooperation contracts. The results of the study will be helpful for the cargo owner to coordinate with carrier in lowering the freight damage rate. References | Related Articles | Metrics

Select

Deposit-refund System of a Closed-loop Supply Chain under Competition between Manufacturers WANG Wen-bin, WANG Zhi-hui, YANG Si-qi, An Ni, Lv Jia 2021, 29 (6):  179-188.  doi: 10.16381/j.cnki.issn1003-207x.2018.1684 Abstract ( 450 )   PDF (2550KB) ( 478 )   Save The rapid development of information technology and diversification of consumer demand have accelerated the upgrading speed of electronic products, which results in a dilemma thatwaste electrical and electronic equipment (WEEE) becomes fastest growing garbage in the world. How to collect and reprocess WEEE, therefore, becomes an important issue related to the sustainable development of our society, economy and environment. The main objective of government-driven deposit-return system is to improve environmental benefits, that is, to save resources and protect environment. This is beneficial for government to urge supply chain members to collect WEEE, which can improve resource utilization and effectively control environmental pollution. Therefore, decision-making is investigated on collecting and remanufacturing WEEE when government implements deposit-return system for closed-loop supply chain (CLSC) under competition between two manufacturers.Then, a CLSC decision model for governmentis constructed to implement deposit-return system for manufacturers orcollector under manufacturer competition.Finally, the model results are compared and analyzed. Through analysis of three models and their equilibrium solutions, the main conclusions are shown as follows. (i) The buyback price of WEEE is not related to competition between two manufacturers, but it will be affected by deposit-return system. The buyback price is lower when deposit-return system is implemented for collector. (ii) The retail prices of two manufacturers are relatively lower when deposit-return system is implemented for collector. Under certain conditions, the retail price of manufacturer R is lower when two manufacturers compete. (iii) Both competition between manufacturers and deposit-return system are conducive to enhancing the collection rate of WEEE. (iv) Overall, deposit-return system is effective. From the perspective of consumers and improving the collection rate, the effect is best when it is implemented for collector, but the profit of collector will be impaired. Therefore, government should pay attention to the impact on collector, thus ensuring its enthusiasm for collecting WEEE. With the obtained results of deposit-return system, decision-making basis and management insights can be provided for both government and stakeholders in a CLSC. References | Related Articles | Metrics

Select

Computational Experimental Research on the Selection of Collaboration Patterns among Brand Alliance Organizations under Uncertain Environment HUANG Chun-ping, WANG Zhi-wen, ZHANG Jing-min, ZENG Zhen-xiang, LI Xiang 2021, 29 (6):  189-201.  doi: 10.16381/j.cnki.issn1003-207x.2020.0622 Abstract ( 340 )   PDF (4429KB) ( 230 )   Save Choosing the appropriate collaboration pattern is the key to the stable development of alliance enterprises in dynamic environment. The environmental uncertainty is subdivided into eight states according to the three dimensions of complexity, dynamics and hostility. Then the optimal choice between development collaboration pattern and exploratory collaboration pattern in eight different environments is found.And the application of technology and manufacturing enterprises in eight different environments are explored. First of all,based on the complex adaptive system theory,the brand alliance interorganizational collaboration system state of environmental uncertaintyis analyzed.The conceptual model of interorganizational collaborationpattern selection among brand alliance organizations is constructed.Secondly, based on the theory of fitness landscape, the NK model of interorganizational collaboration system of brand alliance considering the resource elements of alliance organization is established, and its fitness function is optimized.Thirdly, according to the data obtained from the case study and referring to the relevant research results, the behavior criteria, parameters and algorithms related to computational experiments are set.Finally,the relevant conclusions are drawn. The results show that the development collaboration pattern and exploratory collaboration pattern have the local optimal phenomenon under eight different environmental conditions. In the external environment with abundant and volatile resources, the exploratory collaboration pattern should be chosen by technological enterprises.In the external environment with scarce and stable resources, the development collaboration patternshould be chosen by technological enterprises. In the external environment with rich and stable resources, the exploratory collaboration patternshould be chosen by manufacturing enterprises.In the external environment with scarce and volatile resources, the development collaboration pattern should be chosen by manufacturing enterprises.In this article, the expansion and application of complex adaptive system theory in the field of strategic management is enriched. And the fitness function formula in uncertain environment is constructed, the practice of fitness landscape theory in the field of brand strategy is substantial.Therefore, enterprises should pay more attention to the external environment and enhance the ability to identify external resources.According to the changing trend of the current and future external environment, and combining with its own attributes and characteristics,the appropriate interorganizational collaboration mode of brand alliance should be chosen by the enterprises. References | Related Articles | Metrics

Select

What are the Differences in the Impact of the First Trial and the Repeated Trial of Functional IT Products on Consumer Attitudes? SUN Kai, ZUO Mei-yun, WU Yi-bing 2021, 29 (6):  202-210.  doi: 10.16381/j.cnki.issn1003-207x.2018.1154 Abstract ( 403 )   PDF (1295KB) ( 522 )   Save Along with technology development, many innovative information technology products' functions cannot be understood by consumers easily. For these IT products, product trial is treated as an effective marketing tool. However, previous studies only focus on consumers' first-time interaction with the product. There is no analysis of the internal factors affecting consumers' product attitude when they repeat product trials. Therefore, in order to cover these research gaps, filed study method is used to analyze consumers' behaviors characteristics and mechanism of attitude change when they try the product at the first time and repeat the product trial. The research findings of this paper make up for the gaps of previous studies, which mainly focus on consumers' first trial. Suggestions are provided for the marketing design of product trial. References | Related Articles | Metrics

Select

Research on the Impact of Online Reviews and Product Involvement on Virtual Shopping-Cart Decision-making Based on Consumer Involvement GAO Hong-ming, LIU Hong-wei, ZHAN Ming-jun, FAN Meng-ting, LIANG Zhou-yang 2021, 29 (6):  211-222.  doi: 10.16381/j.cnki.issn1003-207x.2018.1727 Abstract ( 734 )   PDF (2441KB) ( 738 )   Save Examining the non-buying behavior such as abandoning shopping carts enriches consumer decision-making theory, and helps e-commerce develop better personalized marketing strategies. In accordance with Consumer Involvement theory, three product involvement are elaborated, i.e., Time-, Attention-, and Tag-involvement. Online reviews and the effect of time dependency within product involvement are also considered. Applying a clickstream dataset from JD.com, a discrete choice model is proposed to model the virtual shopping cart decision-making. The result shows that(1) Time-involvement has a positive effect on the shopping cart abandonment, and stronger on purchase.(2)The higher Attention-involvement implies the lower probability of shopping cart abandonment, yet consumers' purchasing intention decreases either.(3)Tag-involvement negatively associates with shopping cart abandonment. The cross-elasticity simulation is conducted. The visualization shows (4) products with higher Tag-involvement are susceptible to negative reviews, leading to abandonment. Time-involvement and the proportion of negative reviews, positively and steadily affect the likelihood of abandoning shopping cart. Finally, a theoretical basis for customized recommendation and online review management is provided. References | Related Articles | Metrics

Select

Re-testing the Total Factor Productivity of China's Agriculture——Analysis of Agricultural Intermediate Consumables Based on Provincial Panel Data PENG Jia-chao, YI Ming, FU Li-na 2021, 29 (6):  223-237.  doi: 10.16381/j.cnki.issn1003-207x.2018.1719 Abstract ( 511 )   PDF (4871KB) ( 381 )   Save Agriculture is an important basic industry of the national economy. Under the traditional agricultural production and management mode,the quality and allocation efficiency of China's agricultural input factors have been at a low level for a long time, resulting in high agricultural production costs,low profits,and low income of farmers. Improving Agricultural Total Factor Productivity (ATFP) is not only an urgent need for the transformation of agricultural economic development mode,but also the key to the transition from a large agricultural country to a strong agricultural country. ATFP is mainly used to measure agricultural growth attributing to technological progress and organizational innovation. An increasing ATFP means the shifting of development mode from relying mainly on capital,labor,and land to relying mainly on technological advancement,factor allocation,and institutional mechanisms. Increasing the intermediate consumption of agriculture will help increase the output of agricultural products,activate the agricultural production materials market,and clarify the role of agricultural intermediate consumables in the ATFP,which is crucial for the transformation of the agricultural economic development mode. The agricultural intermediate consumables are introduced, the ATFP of 30 provinces and cities in China from 1999 to 2016 is calculated through LP method,and the key factors affecting ATFP are analyzed based on the SDM model. It is found that:(1)ATFP generally showed an upward trend during the sample period,and there was σ convergence in the growth of ATFP. After 2000, the coefficient of variation of ATFP decreased,and the internal gap became narrowed,reaching "valley bottom" in 2011. (2)The ATFP global Moran's I index is lower than 0,which is significant at the level of 1%,that is,ATFP presents a spatial negative correlation,and the overall trend shows a downward trend,which indicates that the spatial agglomeration effect of China's agricultural development has weakened in recent years,and the spatial distribution of ATFP's pattern is relatively stable and there have been no major changes. (3)The overall change in the growth rate of ATFP in most of the 30 provinces and cities showed an obvious "∧" type,that is,the trend of rising first and then falling,multiple peaks appear in some provinces,especially in the western provinces. (4)Rural human capital and rural financial development level will help to improve ATFP in the region and surrounding areas,but agricultural status,agricultural internal economic structure and farmland disaster rate are not conducive to upgrading ATFP. The contributions of the current ATFP-related research are as follows:Firstly, the LP method is used to measure TFP so as to avoid the defects of the DEA method and the stochastic frontier analysis method,and avoid the assumption of technological advancement exogenous and scale return. Secondly,it is incorporated into the intermediate consumables in the agricultural production process,which fully displays the overall agricultural production activities in China and effectively meets the transferability of agricultural production. In addition, spatial econometric models are used to construct a framework that affects China's ATFP,and then their specific role is decomposed in promoting ATFP growth and possible spatial effects. References | Related Articles | Metrics

Select

The Influence of the Mass Media and New Media on the Return Volatility in Chinese Stock Market ZHANG Zuo-chao, ZHANG Yong-jie, SHEN De-hua, ZHANG Wei 2021, 29 (6):  238-248.  doi: 10.16381/j.cnki.issn1003-207x.2018.1769 Abstract ( 679 )   PDF (2429KB) ( 511 )   Save The Internet has became the main outlet for information dissemination. And it brings new and different influence on the stock market. Based on the framework of heterogeneous investors, we investigate the impact of the mass media news and new media news on the return volatility in Chinese stock market. By analyzing the relationships between the return volatility and the two types of news with the methods of correlation analysis and the proportional hazards model, it is found that (1) on average, there is an significant positive correlation between the two kinds of news and the return volatility. And the correlation coefficient between the new media news and the return volatility is bigger than the one between the mass media news and return volatility; (2) the firms with characteristics of high prior return, high book-to-market ratio, high percentage of institutional holdings and high turnover, that could attract the attention of the medias, are more likely to show a bigger correlation coefficient between the new media news and the return volatility; (3) there is a higher probability that the correlation coefficient between the new media news and the return volatility is bigger than the one between mass media news and return volatility for the smaller and younger firms due to the higher information uncertainty. In this paper, the above-mentioned findings are attributed to the fact that the new media news could enrich the information environment and have a more material impact on the heterogeneous belief of the investors. These results will profoundly contribute to our understanding of the role of information coming from different information sources played in the stock market. References | Related Articles | Metrics