multi region input output analysis of co2 emissions embodied in trade the feedback effects energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output framework despite the increasing interest in using the multi regional input output mrio model by researchers few studies have looked into the mechanism of feedback effects we introduce a method called the stepwise distribution of emissions embodied in trade swd eet to reveal how the emissions embodied in trade are absorbed by a country s final demands through a series of allocation steps a country s indirect absorption patterns and its indirect trade balance of emissions from bilateral trade with other countries are also studied based on the proposed method an empirical study using the data of asian economies shows significant differences in the consumption based emission estimates for some economies due to feedback effects through international trade the differences can be largely captured by the first step or the first two steps of the adjustment procedure in the swd eet analysis other findings and some recommendations are also presented

bidding for contracts in a competitive procurement a buyer seeks to institute a bidding and contracting procedure which selects the most efficient firm to undertake the contract while offering terms that promote risk sharing between buyer and contractor this paper develops a model to analyze formally the trade off between the objectives of risk sharing and efficient contractor selection

the design of procurement contracts this paper investigates the interaction between bidding for procurementprograms and fractional buys this problem is analyzed from the standpoint of a cost minimizing procuring agent it is shown that underimperfect competition a multiple source purchase is generally preferred to a single source contract similarly the author demonstrates that a strictly intermediate cost sharing arrangement i e an incentive contract dominates either the cost plus or the firm fixed price arrangements copyright 1986 by american economic association

second sourcing and the experience curve price competition in defense procurement we examine a dynamic model ofprice competition in defense procurement that incorporates the experience curve asymmetric cost information and the availability of a higher cost alternative system we model acquisition as a two stage process in which initial production is governed by a contract between the government and the developer competition is then introduced by an auction in which a second source bids against the developer for remaining production we characterize the class of production contracts that are cost minimizing for the government and that induce the developer to reveal private cost information when high costs are revealed these contracts result in a credible cutoff of new system production in favor of the still higher cost alternative system

auctioning incentive contracts this paper draws a remarkably simple bridge between auction theory and incentive theory it considers the auctioning of an indivisible project among several fi rms the firms have private information about their future cost at th e bidding stage and the selected firm ex post invests in cost reduct ion the authors show that 1 the optimal auction can be implemented by a dominant strategy auction that uses information about both the first bid and the second bid 2 the winner faces a linear incenti ve contract 3 the fixed transfer to the winner decreases with his announced expected cost and increases with the second lowest announce d expected cost and 4 the share of cost overruns borne by the winn er decreases with the winner s announced expected cost copyright 1987 by university of chicago press

on optimal competitive contracting we present an example of risk neutral bid taker and bidders in which the bid taker obtains a greater expected revenue from auctioning an inefficient contract than from auctioning an efficient contract this occurs because in going from the efficient contract to an inefficient but almost efficient contract the winning bidder s expected profit decreases faster than the value of the output produced under the contract net of production costs decreases therefore the bid taker s expected revenue the value of the output less the winning bidder s expected profit increases the competitive letting of a contract introduces a factor not present when somehow letting a contract noncompetitively in particular changing the contract not only affects the efficiency of the contract but also affects the amount of the contract s value that will be captured by the contract winner as profit therefore for competitively let contracts the optimal contract for the bid taker to offer turns out less efficient than can b

index decomposition analysis applied to co2 emission studies index decomposition analysis ida was first extended from energy consumption to energy related co2 emission studies in 1991 since then many studies have been reported covering various countries and emission sectors however unlike the case of energy consumption studies a comprehensive literature survey that focuses specifically on emission studies has so far not been reported in this paper we attempt to fill this gap by reviewing 80 papers appearing in peer reviewed journals from 1991 to 2012 in this application area the first part of this paper deals with the developments with regard to the ida approaches used by researchers and the scope and focus of their studies in the second part the empirical results reported in the surveyed studies are analyzed consolidated and presented by emission sector the objective is to reveal the relative contributions of key effects on changes in the aggregate carbon intensity and this is done by emission sector and by country the findings of both parts are useful in understanding the development of ida in the application area of emission study as well as the key drivers of aggregate carbon intensities in the past and their possible future developments

embodied energy and intensity in china s normal and processing exports and their driving forces 2005 2015 abstract international trade has important impacts on a country s energy consumption this paper first uses the time series 2005 2015 extended input output database to study china s embodied energy and intensity in both normal and processing exports structural decomposition analysis sda is then applied to analyze the driving forces behind the embodiment changes the empirical results show that china s energy embodied in both normal and processing exports first increased in 2005 2008 dropped in 2009 due to the global financial crisis and then rose again after 2009 and finally dropped in 2014 2015 the embodied energy in trade as a percentage of total energy consumption in china was relatively stable before and after the global financial crisis at around 28 over the 2005 2008 period and 22 over the 2009 2015 period the contribution of the aggregate embodied intensity aei of exports to china s aggregate energy intensity dropped from 30 in 2005 to 21 in 2015 among china s trading partners the united states japan and korea together accounted for around half of china s embodied energy and aei in exports in 2005 but their shares dropped to only one third in 2015 energy efficiency improvement played the key role in reducing the embodied energy and intensity in china s exports similar analysis can be applied to other regions and indicators

decision making under uncertainty capturing dynamic brand choice processes in turbulent consumer goods markets we construct two models of the behavior of consumers in an environment where there is uncertainty about brand attributes in our models both usage experience and advertising exposure give consumers noisy signals about brand attributes consumers use these signals to update their expectations of brand attributes in a bayesian manner the two models are 1 a dynamic model with immediate utility maximization and 2 a dynamic forward looking model in which consumers maximize the expected present value of utility over a planning horizon given this theoretical framework we derive from the bayesian learning framework how brand choice probabilities depend on past usage experience and advertising exposures we then form likelihood functions for the models and estimate them on nielsen scanner data for detergent we find that the functional forms for experience and advertising effects that we derive from the bayesian learning framework fit the data very well relative to flexible ad hoc functional forms such as exponential smoothing and also perform better at out of sample prediction another finding is that in the context of consumer learning of product attributes although the forward looking model fits the data statistically better at conventional significance levels both models produce similar parameter estimates and policy implications our estimates indicate that consumers are risk averse with respect to variation in brand attributes which discourages them from buying unfamiliar brands using the estimated behavioral models we perform various scenario evaluations to find how changes in marketing strategy affect brand choice both in the short and long run a key finding obtained from the policy experiments is that advertising intensity has only weak short run effects but a strong cumulative effect in the long run the substantive content of the paper is potentially of interest to academics in marketing economics and decision sciences as well as product managers marketing research managers and analysts interested in studying the effectiveness of marketing mix strategies our paper will be of particular interest to those interested in the long run effects of advertising note that our estimation strategy requires us to specify explicit behavioral models of consumer choice behavior derive the implied relationships among choice probabilities past purchases and marketing mix variables and then estimate the behavioral parameters of each model such an estimation strategy is referred to as structural estimation and econometric models that are based explicitly on the consumer s maximization problem and whose parameters are parameters of the consumers utility functions or of their constraints are referred to as structural models a key benefit of the structural approach is its potential usefulness for policy evaluation the parameters of structural models are invariant to policy that is they do not change due to a change in the policy in contrast the parameters of reduced form brand choice models are in general functions of marketing strategy variables e g consumer response to price may depend on pricing policy as a result the predictions of reduced form models for the outcomes of policy experiments may be unreliable because in making the prediction one must assume that the model parameters are unaffected by the policy change since the agents in our models choose among many alternative brands their choice probabilities take the form of higher order integrals we employ monte carlo methods to approximate these integrals and estimate our models using simulated maximum likelihood estimation of the dynamic forward looking model also requires that a dynamic programming problem be solved in order to form the likelihood function for this we use a new approximation method based on simulation and interpolation techniques these estimation techniques may be of interest to researchers and policy makers in many fields where dynamic choice among discrete alternatives is important such as marketing decision sciences labor and health economics and industrial organization

half a century of development economics a review based on the handbook of development economics the handbook of development economics provides an unmatched perspective on the past half century of research in the field this article reviews some of the significant findings of the handbook and identifies areas of development economics not covered there it describes the evolution of the field beginning with the postwar indian congress consensus which emphasized state planning that paradigm was complemented in the 1970s by the dual economy paradigm and the work of the latin american structuralisms as the costs of protectionism came to be recognized many economies adopted an outward orientation with respect to both trade and foreign investment this outward orientation later formed part of a new consensus on macroeconomic management sometimes referred to as the washington consensus this consensus more accurately dubbed the one world consensus is now widely accepted throughout the world as developing and industrial countries alike have embraced its emphasis on fiscal discipline tax reform outward orientation and privatization of state enterprises deregulation and the safeguarding of property rights despite so years of research large gaps in the understanding of development remain adopting sen s framework of beings and doings and focusing on collective action and the roles played by individuals may help to fill some of these gaps

demand contributors and driving factors of singapore s aggregate carbon intensities abstract singapore is an island city state it lacks conventional energy resources and is alternative energy disadvantaged yet its aggregate carbon intensity given by the ratio of carbon emissions to gdp dropped by 30 from 2005 to 2014 currently it has a relatively low carbon intensity using i o analysis we study singapore s aggregate carbon intensity and the factors contributing to its changes at different levels i e final demand sector and transmission levels it is found that domestic exports accounted for nearly two thirds of singapore s aggregate carbon intensity followed by private consumption and investment at the sectoral level the top three contributors were the petroleum petrochemical and land transport sectors improvements in emission intensity and final demand structure were major factors contributing to reductions in carbon intensity our study contributes to the literature in two aspects methodologically it deals with embodied emission intensity and analyzes its changes from the demand perspective this differs from most studies in the literature from the production perspective empirically the findings and policy implications are unique as they are applicable to a major city with urbanization taking place in many developing countries cites role in emissions and environmental sustainability are growing in importance but not many in depth analyses similar to our study have been reported

promises and pitfalls in environmentally extended input output analysis for china a survey of the literature abstract as the world s largest developing economy china plays a key role in global climate change and other environmental impacts of international concern environmentally extended input output analysis ee ioa is an important and insightful tool seeing widespread use in studying large scale environmental impacts in china calculating and analyzing greenhouse gas emissions carbon and water footprints pollution and embodied energy this paper surveys the published articles regarding ee ioa for china in peer reviewed journals and provides a comprehensive and quantitative overview of the body of literature examining the research impact environmental issues addressed and data utilized the paper further includes a discussion of the shortcomings in official chinese data and of the potential means to move beyond its inherent limitations

using game theory to model competition the article is an exposition of the basic concepts of noncooperative game theory and their application to advertising product and price competition

drivers of stagnating global carbon intensity of electricity and the way forward abstract despite the signing of the paris climate agreement there is still great uncertainty regarding the world s ability to decarbonize and meet the 2 c target in this regard the electricity production sector deserves particular attention the sector has the largest decarbonization potential and its share of the world s co2 emissions from fuel combustion increased from 30 in 1990 to 36 in 2014 to better understand global trends this study analyses the factors influencing changes in the global aggregate carbon intensity aci of electricity a measure of the level of co2 emissions per unit of electricity produced over the last 25 years using multidimensional index decomposition analysis it finds that global aci barely improved since 1990 because of a shift in electricity production from developed to developing countries with higher acis this geographical shift offset consistent improvements to power generation efficiency worldwide and is likely to persist in the future to keep the 2 c target realisable it is imperative to enhance international cooperation to lower the acis of emerging economies and deepen the penetration of renewables which have thus far performed below expectations

agroindustrialization of the global agrifood economy bridging development economics and agribusiness research this paper examines the agroindustrialization process from two supposedly disparate views development economics and agribusiness research the evolution of conceptual and methodological approaches emanating from these fields is explored and general observations are made concerning farm economic interdependence institutional and organizational change differing scopes of interest the causes of agroindustrialization orientation and the choice of microanalytic tools terminology and unit of analysis despite an impressive list of hurdles disincentives and disconnects complementarities between the two fields are identified the paper concludes by exploring the potential of bridging development economics and agribusiness research to inform the future agroindustrialization research agenda

carbon emission intensity in electricity production a global analysis we study changes in the aggregate carbon intensity aci for electricity at the global and country levels the aci is defined as the energy related co2 emissions in electricity production divided by the electricity produced it is a performance indicator since a decrease in its value is a desirable outcome from the environmental and climate change viewpoints from 1990 to 2013 the aci computed at the global level decreased only marginally however fairly substantial decreases were observed in many countries this apparent anomaly arises from a geographical shift in global electricity production with countries having a high aci increasingly taking up a larger electricity production share it is found that globally and in most major electricity producing countries reduction in their aci was due mainly to improvements in the thermal efficiency of electricity generation rather than to fuel switching estimates of the above mentioned effects are made using lmdi decomposition analysis our study reveals several challenges in reducing global co2 emissions from the electricity production sector although technically the reduction potential for the sector is known to be great

supplier switching decisions abstract in order to maximize profit a buying firm should continuously search for and access sources which offer more favorable prices while the literature is replete with works on the formation and development of buyer supplier relationships there is surprisingly only scarce research on the termination of such relationships and supplier switching using the concept of switching costs in a principal agent framework we at first analyze whether a firm switches the entire or a partial quantity to an alternative supplier when there is either symmetric or asymmetric information about the alternative supplier s cost structure information asymmetry results in inert supplier switching decisions subsequently we extend our model and take competitive reactions of the incumbent supplier and economies of scale effects into consideration we find conditions under which no partial and complete switching occurs which depend on the buying firm s beliefs about the alternative supplier s unit costs switching costs the price offered by the incumbent supplier and refinements of the price offered by the incumbent supplier due to competitive reactions and economies of scale broader implications for supplier relationship management and sourcing strategy decisions are also provided

incentive contracts and competitive bidding an increasing segment of economic activity is taking place in nonmarket situations in which economic agents act outside the traditional markets or create markets to deal with specific resource allocation problems one such problem involves the selection by a buyer of a contractor using a competitive bidding process competitive bidding is used extensively by the government for the selection of suppliers of goods and services and for the sale of resources such as offshore oil leases firms may use competitive bidding for the selection of certain suppliers of factor inputs and may attempt to sell certain products in markets in which competitive price quoting is the established market mechanism this paper is concerned with a bidding process in which a firm has an opportunity to bid on a project under the terms of an incentive contract incentive contracts

input output analysis of co2 emissions embodied in trade competitive versus non competitive imports energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output framework in the literature two different approaches to deal with emissions embodied in a country s imports can be found one of the approaches is based on the assumption of competitive imports while the other is based on the assumption of non competitive imports we show that the implications of the results obtained using different imports assumptions are not the same the approach using the competitive imports assumption gives estimates larger than those obtained using the non competitive import assumption the differences between the two embodiment estimates come from the transition of embodied emissions in china s imports for intermediate consumption to those in china s exports this explains why relatively high estimates of co2 emissions embodied in china s exports are reported in several recent studies appearing in energy policy

a spatial temporal decomposition approach to performance assessment in energy and emissions abstract there has been growing interest among researchers and policymakers in comparing or benchmarking countries on the basis of their performance in energy consumption or energy related co 2 emissions such studies allow variations among countries to be revealed the contributing factors identified and the scope for improvement better understood at the same time tracking changes or quantifying improvements in energy use or emissions over time in a country have long been a focus area of researchers and policy makers to provide a fuller picture on country performance in a multi country study over time it would be of interest to integrate the above mentioned spatial and temporal analyses in a single analysis framework this paper deals with this issue using the technique of index decomposition analysis a spatial temporal approach is introduced and two application cases are presented to illustrate how the approach can be applied the first analyzes variations and changes in the aggregate co 2 intensity of electricity production for ten countries from 1990 to 2010 and the second deals with variations and changes in the aggregate energy intensity for eight economic regions of china from 2002 to 2012 in addition two different ways of presenting the results are introduced our study shows that the proposed approach can supplement studies which are conducted purely on a spatial or temporal basis

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

attribution of changes in divisia real energy intensity index an extension to index decomposition analysis abstract in this paper we extend the methodology of index decomposition analysis ida in energy studies by quantifying the contribution of individual attributes to the percent change of factors such as the real energy intensity index and structural change index we apply the proposed method to the real energy intensity index in the multiplicative logarithmic mean divisia index m lmdi approach a major ida technique since the m lmdi is based on geometric mean type indices and chain computation we need some appropriate method to cope with the difficulties that arise we present a numerical illustration of the proposed method using the energy consumption and real value added data of the us manufacturing industry and compare the results obtained by the fisher real energy intensity index

structural path and decomposition analysis of aggregate embodied energy intensities in china 2012 2017 abstract the dependence of the economic development of a region on its energy consumption is a major challenge for developing countries the aggregate embodied energy intensity aei based on an input output framework reflects the interaction between regional economy and energy consumption driven by final demand studying the change in aei from the perspective of sector production and final demand can effectively control the source and trend of energy intensity change in order to control the growth of energy intensity however there is a relative lack of studies determining the causes of aei changes from the perspective of sectors and final demands this study attempted to identify the influencing factors of aei changes and establish an aei based environmental policy in china a multiplicative structural decomposition analysis and a structural path analysis were used to study the aei under conditions of different final demands sectors and transmission layers along with the factors influencing aei changes in china from 2012 to 2017 our results indicate that the final demand category of gross fixed capital formation made the largest contribution to aei changes in 2012 and 2017 and the multiplicative intensity factor significantly inhibited the decrease in aei among the sectors studied only a few were found to significantly affect the change in aei with s11 processing of petroleum coking and nuclear fuel s12 chemical industry and s14 smelting and rolling of metals being the key sectors that input high energy consumption products to other sectors

coordination in split award auctions we analyze split award procurement auctions in which a buyer divides full production between two suppliers or awards all production to a single supplier and suppliers have private cost information an intriguing feature of split awards is that the equilibrium bids are implicitly coordinated because a split award price is the sum of offered split prices each supplier can unilaterally veto a split award by bidding very high for the split the need to coordinate is reflected in a split price that does not vary with private information we also explore conditions under which split award auctions may be preferred to winner take all auctions

bundled payments for healthcare services proposer selection and information sharing the centers for medicare and medicaid services cms has introduced a bundled payments for care improvement bpci initiative each bundle pertains to a specific medical condition a set of linked services and a length of time referred to as an episode of care proposers choose bundles design service chains and propose target values of quality metrics and payments per episode expert panels evaluate proposals based on cms announced relative weights but there is no limit on the number of proposers that may be selected moreover there is no minimum score that will guarantee selection which makes selection uncertain for proposers we develop normative models for the parameter selection problems faced by potential proposers within the cms proposal selection process proposers have private information about their costs of achieving different quality targets which determine their equilibrium responses we show that an optimal strategy for cms under its current approach may be to either announce a fi

global warming agreements international trade and energy carbon embodiments an input output approach to the italian case abstract in the kyoto protocol the absence of green house gases ghgs commitments of developing countries non annex i and the more flexible terms of implementation which are allowed to countries shifting toward a market economy transition economies naturally lead to the absence or to less constraining national measures and policies of reduction of the ghgs emissions which in turn may determine a comparative advantage in the production of the highest energy carbon intensive commodities for these countries these arguments are valid also considering the future implementation of the european emission allowance trading scheme eats thus developing countries may become a haven for the production of not environmental friendly commodities in this case the so called pollution haven hypothesis stating that due to freer international trade the comparative advantage may change the economic structure and consequently the trade patterns of the countries linked by trade relationships could occur this would lead to the increase of the transfers of energy and carbon embodied in traded commodities from developing countries and transition economies toward kyoto or eats constrained countries the aim of this paper is to verify if for italy as a kyoto and eats complying country evidence of a change in the trade patterns occurred on the basis of the pollution haven hypothesis does exist and to estimate the magnitude of the under estimation of the carbon actually emitted the carbon leakage the input output model has been used to calculate the intensities of energy consumption and the related green house gases emission for each italian economic sector

what drive the changes in china s energy consumption and intensity during 12th five year plan period abstract during the 12th five year plan period 2011 2015 the chinese government has released a series of energy conservation plans to launch and deepen the transition in the energy use particularly the dual control of the energy consumption and energy intensity was firstly emphasized this paper intends to explore the targeted and effective energy policy implications through investigating the drivers of changes in energy consumption intensity of china during the 12th five year plan period under the input output framework the embodied energy consumptions intensities by final demand category were estimated at aggregate sector level and the total energy consumption intensity was decomposed using the additive multiplicative structural decomposition analysis among the final demand categories china s energy consumption intensity was mainly contributed by the investment followed by the household consumption according to the sda results china s total energy consumption increased by 28 8 of which the energy intensity effect and the investment effect were the most retardant and accelerator respectively at the same time china s total aggregate energy intensity decreased by 16 0 of which the energy intensity effect and the household consumption effect were the most retardant and accelerator respectively in detail the key sectors with respect to the critical effects were picked out above all policy implications are discussed for achieving the energy goals during the 13th five year plan period and launching the energy revolution during the 14th five year plan period

multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities abstract aggregate intensity indicators such as the ratio of a country s energy and emissions to its gdp are often used by researchers and policymakers to study energy and environmental performance this paper analyzes the relationship between energy or emissions and value added or gdp from a different viewpoint namely from the demand rather than the production perspective using the input output i o framework the aggregate embodied intensity aei defined as the ratio of embodied energy or emissions to embodied value added can be defined at the aggregate final demand category and sectoral levels the total aggregate intensity can be presented as a weighted sum of the aeis at the final demand category or sectoral level changes of the aei at different levels can be decomposed to identify the driving forces using multiplicative sda a study using the latest 2007 and 2012 datasets of china indicates that a its aggregate intensity of co 2 emissions was mainly determined by the aei in investment and b the emission intensity effect generally contributed the most to the aei ratio changes at different levels the proposed framework can be applied to other aggregate intensity indicators and extended to multi country region analysis

repeated auctions of incentive contracts investment and bidding parity with an application to takeovers this article considers a two period model of natural monopoly and second sourcing the incumbent supplier invests in the first period after observing the incumbent s first period performance the buyer may break out in the second period the investment may or may not be transferable to the second source and it may be monetary or take the form of human capital we determine whether the incumbent should be favored at the reprocurement stage and how the slope of his incentive scheme should evolve over time we find that the gains from second sourcing are not so large as one might hope finally we reinterpret the second source as a raider and the breakout as a takeover we discuss the desirability of defensive tactics and obtain a rich set of testable implications concerning the size of managerial stock options the extent of defensive tactics the firm s performance and the probability of a takeover

input output and structural decomposition analysis of singapore s carbon emissions singapore is an island city state it lacks conventional energy resources and is alternative energy disadvantaged in the past decade 2000 2010 its energy related carbon emissions increased from 37 8 to 44 4 million tonnes of co2 this paper analyses the city state s carbon emissions from the demand perspective using the input output i o method and investigate the drivers of emission changes using structural decomposition analysis sda it is the first comprehensive analysis of singapore s emissions using the i o framework the results obtained show that exports accounted for nearly two thirds of its total emissions and growth in its emissions in the last decade was largely export driven emissions increased as export oriented industries and export volume expanded fuel switching and energy efficiency however helped to lower growth in emissions besides exports household related emissions accounted for about a quarter of singapore s total emissions the emissions related to different household groups remained fairly stable as increases in embodied indirect emissions were offset by decreases in direct emissions the high income household group registered the largest increase in direct emissions while the middle income household group registered the largest increase in embodied emissions the policy implications of our findings are discussed

outsourcing suppliers as downstream competitors biting the hand that feeds abstract in this paper we highlight an aspect of supplier opportunism in the outsourcing paradox that has largely been ignored by extant research the supplier as a direct competitor of the buyer firm in light of this paradox we offer a game theoretic framework in which we identify conditions under which firms could alleviate or mitigate this outsourcing problem our results show that apart from transaction costs firm level capabilities both ordinary and dynamic play important roles in determining the make only buy only or make and buy options a firm could exercise in countering the threat of the supplier as a potential competitor in the downstream marketplace

lmdi decomposition approach a guide for implementation since it was first used by researchers to analyze industrial electricity consumption in the early 1980s index decomposition analysis ida has been widely adopted in energy and emission studies lately its use as the analytical component of accounting frameworks for tracking economy wide energy efficiency trends has attracted considerable attention and interest among policy makers the last comprehensive literature review of ida was reported in 2000 which is some years back after giving an update and presenting the key trends in the last 15 years this study focuses on the implementation issues of the logarithmic mean divisia index lmdi decomposition methods in view of their dominance in ida in recent years eight lmdi models are presented and their origin decomposition formulae and strengths and weaknesses are summarized guidelines on the choice among these models are provided to assist users in implementation

dynamic business share allocation in a supply chain with competing suppliers this paper studies a repeated game between a manufacturer and two competing suppliers with imperfect monitoring we present a principal agent model for managing long term supplier relationships using a unique form of measurement and incentive scheme we measure a supplier s overall performance with a rating equivalent to its continuation utility the expected total discounted utility of its future payoffs and incentivize supplier effort with larger allocations of future business we obtain the vector of the two suppliers ratings as the state of a markov decision process and we solve an infinite horizon contracting problem in which the manufacturer allocates business volume between the two suppliers and updates their ratings dynamically based on their current ratings and the current performance outcome our contributions are both theoretical and managerial we propose a repeated principal agent model with a novel incentive scheme to tackle a common but challenging incentive problem in a multiperiod s

split awards procurement and innovation in many procurement settings it is possible for a buyer to split a production award between suppliers in this article we develop a model of split award procurement auctions in which the split choice is endogenous we characterize the set of equilibrium bids and allocations for optimizing agents in an environment in which suppliers are fully informed about each other s costs split award equilibria simultaneously exhibit strong collusive features and cost efficiency properties despite the former property of the equilibria upstream investment considerations may lead a buyer to prefer a split award auction format to a winner take all auction format

bidding for contests the procurement of product development and production services brings special strategic considerations to the buyer seller relationship in industrial and institutional markets multiple sourcing in particular dual sourcing is a likely way of dealing with the increased risks faced by buyers however there is lack of dual sourcing models that analyze the selection and control process in an integrated fashion this omission had led to apparently contradictory findings in agency and auction theory the paper models the strategic issues for a cost containment contest between two suppliers the suppliers are drawn from several vendors who participate in a bidding competition the supplier with the lower final cost in the contest wins a larger share of the pooled profit fee propositions are derived for the optimal cost plus contest and comparisons are made with the common incentive contract for the integrated selection and control model the larger the winner s share the greater the effort the buyer can make a credible commitment to the optimal winner s share as the winner s share rises however the bid prices increase due to increased contract risk this incentive risk tradeoff determines a the optimal winner s share that minimizes expected procurement price b the corresponding profit fee bid by suppliers c the ensuing cost control effort and d the final price for the procurement comparisons with the common incentive contract tell us when the cost plus contest induces more effort and when bidding for a contest results in a lower final procurement price

comparative statics of contests and rent seeking games this paper develops the comparative statics properties of a contest encountered in patent races and rent seeking games the author shows that symmetric equilibrium expenditure and profit per player decrease with the number of competitors and the discount rate but increase with the value of the prize a fundamental lemma established in the paper shows that a stability condition usually imposed on the model is automatically satisfied the author identifies a class of likelihood or hazard rate functions for which aggregate expenditure increases with the number of competitors and total profits converge to zero copyright 1997 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association