EconStor Community: CASE - Center for Applied Statistics and Economics, Humboldt-Universität Berlin
http://hdl.handle.net/10419/127
CASE - Center for Applied Statistics and Economics, Humboldt University BerlinEconStorhttp://www.econstor.eu/retrieve/99866
http://hdl.handle.net/10419/127
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The Effect of Inventory on Purchase Incidence: Empirical Analysis of Opposing Forces of Storage and Consumption
http://hdl.handle.net/10419/22216
Title: The Effect of Inventory on Purchase Incidence: Empirical Analysis of Opposing Forces of Storage and Consumption
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<br/>Authors: Boztuğ, Yasemin; Bell, David R.
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<br/>Abstract: Behavioral studies and recent empirical research suggest higher levels of inventory on hand can lead consumers to increase consumption. Inventory on hand is therefore posited to exert two countervailing forces on the probability of purchase incidence. First, higher levels of inventory reduce the likelihood of purchase as the consumer feels less pressure to buy. At the same time however, theory suggests higher levels of inventory may drive up the rate of consumption, thereby increasing the probability of incidence. We develop an empirical model that explicitly captures these two effects. The elasticity of purchase incidence with respect to inventory derived from the model is shown to capture these opposing forces in a simple and intuitive way. The analytical expression allows calculation of a threshold below (above) which the net effect is positive (negative). The model is estimated on ten product categories from the Stanford Market Basket database and is shown to fit better than both the standard nested logit approach and an alternative formulation developed by Ailawadi and Neslin (1998). The threshold values have plausible magnitudes and are intuitive across categories: butter, margarine and crackers have relatively low thresholds implying that inventory build up does not drive consumption; ice cream and soft drinks have relatively large thresholds (below which the inventory pressure to consume more outweighs the effect to delay purchase). Implications for retail management are discussed.Incentive Contracts and Total Factor Productivity
http://hdl.handle.net/10419/22214
Title: Incentive Contracts and Total Factor Productivity
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<br/>Authors: Demougin, Dominique M.; Bental, Benjamin
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<br/>Abstract: This paper proposes a transactions cost theory of total factor productivity. In a world with asymmetric information and transactions costs, effort, and thus productivity, must be induced by incentive schemes. Labor contracts trade off the marginal benefits and the marginal costs of effort. The latter include, in addition to the workers? marginal disutility of effort, also organizational costs and rents. As the economy grows, the optimal contracts change endogenously, inducing higher effort and measured productivity. Transactions costs are also affected by societal characteristics that determine the power of incentive contracts. Therefore, differences in these characteristics may explain cross-economy productivity differences. Numerical experiments demonstrate that the model is consistent both with time series and cross-country observations.The open-loop solution of the Uzawa-Lucas Model of Endogenous Growth with N agents
http://hdl.handle.net/10419/22215
Title: The open-loop solution of the Uzawa-Lucas Model of Endogenous Growth with N agents
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<br/>Authors: Bethmann, Dirk
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<br/>Abstract: We solve an N 2 N player general-sum differential game. The optimization problem considered here is based on the Uzawa Lucas model of endogenous growth. Agents have logarithmic preferences and own two capital stocks. Since the number of players is an arbitrary fixed number N 2 N, the model?s solution is more general than the idealized concepts of the social planer?s solution with one player or the competitive equilibrium with infinitely many players. We show that the symmetric Nash equilibrium is completely described by the solution to a single ordinary differential equation. The numerical results imply that the influence of the externality along the balanced growth path decreases rapidly as the number of players increases. Off the steady state, the externality is of great importance, even for a large number of players.Yxilon: Designing The Next Generation, Vertically Integrable Statistical Software Environment
http://hdl.handle.net/10419/22213
Title: Yxilon: Designing The Next Generation, Vertically Integrable Statistical Software Environment
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<br/>Authors: Ziegenhagen, Uwe; Klinke, Sigbert; Härdle, Wolfgang Karl
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<br/>Abstract: Modern statistical computing requires smooth integration of new algorithms and quantitative analysis results in all sorts of platforms such as webbrowsers, standard and proprietary application software. Common statistical software packages can often not be adapted to integrate into new environments or simply lack the demands users and especially beginners have. With Yxilon we propose a vertically integrable, modular statistical computing environment, providing the user a rich set of methods and a diversity of different interfaces, including command-line interface, web clients and interactive examples in electronic books. This architecture allows the users to rely upon only one environment in order to organize data from a variety of sources, analyse them and visualize or export the results to other software programs. The design of Yxilon is inspired by XploRe, a statistical environment developed by MD*Tech and Humboldt-Universität zu Berlin. Yxilon incorporates several ideas from recent developments and design principles in software engineering: modular plug-in architecture, platform independence, and separation of user interfaces and computing engine.