Search Results (385)

This paper develops a unified framework for mathematical finance under general semimartingale models that allow for dividend payments, negative asset prices, and unbounded jumps. We present a rigorous approach to the mathematical modeling of financial markets with dividend-paying assets by defining appropriate concepts of numéraires, discounted processes, and self-financing trading strategies. While most of the mathematical results are not new, this unified framework has been missing in the literature. We carefully examine the transition between nominal and discounted price processes and define appropriate notions of admissible strategies that work naturally in both settings. By establishing the equivalence between these models and providing clear conditions for their applicability, we create a mathematical foundation that encompasses a wide range of realistic market scenarios and can serve as a basis for future work on mathematical finance and derivative pricing. We demonstrate the practical relevance of our framework through a comprehensive application to dividend-paying equity markets where the framework naturally handles discrete dividend payments. This application shows that our theoretical framework is not merely abstract but provides the rigorous foundation for pricing derivatives in real-world markets where classical assumptions need extension. Full article

Drylands cover approximately 41% of Earth’s land surface, supporting about 500 million people and 45% of global agriculture. Groundwater is essential in drylands and is crucial for maintaining ecosystem services and offering numerous benefits. This article, for the first time, analyses and valuates the hydrological ecosystem services (HESs) provided by groundwater in a region of the Colorado River Delta in Mexico, an area with uncertain economic impact due to water scarcity. The main water sources are the Colorado River and groundwater from the Mexicali and San Luis Rio Colorado valley aquifers, both of which are overexploited. Valuation techniques include surrogate and simulated market methods for agricultural, industrial, urban, and domestic uses, the shadow project approach for water conservation and purification cost avoidance, and the contingent valuation method for recreation. Data from 2013 to 2015 and 2020 were used as they are the most reliable sources available. The annual value of HESs provided by groundwater was USD 883,520 million, with water conservation being a key factor. The analyzed groundwater uses reflect differences in efficiency and economic value, providing key information for decisions on governance, allocation, conservation, and revaluation of water resources. These results suggest reorienting crops, establishing differentiated rates, and promoting payment for environmental services programs. Full article

This study examines how contract structures influence coordination and innovation incentives in dual-channel telecommunications supply chains. We consider a setting where a mobile network operator (MNO) supplies services both directly to consumers and indirectly through a mobile virtual network operator (MVNO), which competes in the retail market. Using a game-theoretic framework, we evaluate how different contracts—single wholesale pricing, revenue sharing, and quantity discounts—shape strategic decisions, particularly in the presence of investment spillovers between parties. A key coordination problem emerges from the externalized gains of innovation, where one party’s investment generates value for both participants. Our results show that single wholesale and revenue sharing contracts often lead to suboptimal investment and profit outcomes. In contrast, quantity discount contracts, especially when combined with appropriate transfer payments, improve coordination and enhance the total performance of the supply chain. We also find that innovation led by the MVNO, while generally less impactful, can still yield reciprocal benefits for the MNO, reinforcing the value of cooperative arrangements. These findings emphasize the importance of contract design in managing interdependence and improving efficiency in decentralized supply chains. This study offers theoretical and practical implications for telecommunications providers and policymakers aiming to promote innovation and mutually beneficial outcomes through well-aligned contractual mechanisms. Full article

The adoption of cryptocurrency as a payment instrument by firms has sparked ongoing debates about how such strategic moves are perceived by key stakeholders. This study investigates how investors react when an e-commerce firm adds or withdraws from providing cryptocurrency as a payment option. To explore these aspects, we examine two cases: MercadoLibre’s decision to introduce Meli Dólar as a payment option, representing the inclusion of cryptocurrency, and eBay’s withdrawal from the Libra project, representing strategic exclusion. We assess the causal impact of these strategies by employing a Regression Discontinuity Design (RDD) and deriving the observation period by using an optimal bandwidth method. The results indicate that there was an immediate decline in share prices following the adoption of the Meli Dólar as a payment instrument and an immediate increase following the decision to withdraw from using Libra as a payment instrument. The findings suggest that including cryptocurrency as a payment method may run counter to investor expectations. This study contributes to the discourse on the viability of cryptocurrency adoption by e-commerce firms and emphasizes the importance of understanding how decisions around cryptocurrency convey market signals, which may have strategic implications for a firm’s overall strategy. Full article

Since 1 January 2024, newly produced heavy-duty trailers are subject to the assessment of their performance regarding CO₂ and fuel consumption according to Implementing Regulation (EU) 2022/1362. The method is based on the already established approach for the CO₂ and energy consumption evaluation of trucks and buses, i.e., applying a combination of component testing and vehicle simulation using the software VECTO (Vehicle Energy Consumption calculation TOol). For the evaluation of trailers, generic conventional towing vehicles in combination with the specific CO₂ and fuel consumption-relevant properties of the trailer, such as mass, aerodynamics, rolling resistance etc., are simulated in the “VECTO Trailer” software. The corresponding results are used in the European HDV CO₂ standards with which manufacturers must comply to avoid penalty payments (2030: −10% for semitrailers and −7.5% for trailers compared with the baseline year 2025). Methodology and legislation are currently being extended to also cover the effects of electrified trailers (trailers with an electrified axle and/or electrically supplied auxiliaries) on CO₂, electrical energy consumption, and electric range extension (special use case in combination with a battery-electric towing vehicle). This publication gives an overview of the developed regulatory framework and methods to be implemented in a future extension of VECTO Trailer as well as a comparison of different e-trailer configurations and usage scenarios regarding their impact on CO₂, energy consumption, and electric range by applying the developed methods in a preliminary potential analysis. Results from this analysis indicate that e-trailers that use small batteries (5–50 kWh) to power electric refrigeration units achieve a CO₂ reduction of 5–10%, depending primarily on battery capacity. In contrast, e-trailers designed for propulsion support with larger batteries (50–500 kWh) and e-axle(s) (50–500 kW) demonstrate a reduction potential of up to 40%, largely determined by battery capacity and e-axle rating. Despite their reduction potential, market acceptance of e-trailers remains uncertain as the higher number of trailers compared with towing vehicles could lead to slow adoption, especially of the more expensive configurations. Full article

The purpose of this research is to investigate the possibilities of electricity consumption-associated cost reduction in buildings owned by a medium-sized logistics company in Latvia (A_LV), which is a part of the larger international business ecosystem (A). The company is not using all of its facilities for its own business needs, some of them are rented out, and therefore the possibility of impacting electricity consumption in rented out buildings is limited. During the research, mixed-type approaches combining qualitative and quantitative research methods and data analysis were employed, where the quantitative methods helped to analyze the company’s electricity consumption and cost changes in different time periods, while the qualitative methods were used in a literature review. As primary data sources, A_LV’s internal electricity consumption reports and invoices for electricity payments were used, along with publicly available data on electricity consumption in Latvia and wholesale market price fluctuations. Although A_LV has numerous areas of electricity consumption optimization, this research is limited to few of them—lighting system optimization, energy management and automation applications, forklift charging regime adjustments, and choice of electricity retailer and tariff plan. Full article

Since the enforcement of Law 98/2016 on public procurement in Romania, the inclusion of price adjustment clauses in construction contracts has become a standard practice. This paper, which presents a comprehensive analysis of the financial implications of eight adjustment formulas applied to public construction projects executed over three durations (12, 24, and 36 months) between 2018 and 2024, is a significant contribution to the field. A comparative analysis using objective indices published by Romania’s National Institute of Statistics reveals the impact of inflation and cost variations on adjusted contract values. Three scenarios, each starting in different years (2018, 2020, and 2022), are explored to determine the sensitivity of the formulas to market fluctuations. Results show that by applying the eight adjustment formulas, only two formulas tend toward annual inflation. The indices used by the construction branch are not correlated with yearly inflation, and when no advance payments are granted, they offer a reliable basis for economic equilibrium in public contracting. The study guides the selection of appropriate adjustment models to manage financial risk in a volatile construction market, providing valuable insights for academics, researchers, and professionals in civil engineering and public procurement. Full article

Over the past decade, the Chongqing land ticket model has played a pivotal role in the market-oriented reform of rural land factors and serves as a representative practice of the TDR program in China. This paper constructs a systematic evaluation framework from two perspectives—policy effectiveness and citizen feedback—to comprehensively understand the policy effect of this model. The study employs methods of policy texts bibliometrics and content analysis based on big data. The results indicate that the effectiveness of land ticket policies exhibit significant fluctuations, with peaks aligning with milestones in the model’s development. Policy measures are well-aligned with the goals set forth. However, policymakers in Chongqing have historically focused more on institutional construction within the land ticket model, only recently shifting attention to the protection of farmers’ rights and interests. This imbalance may have led to potential risks regarding the loss of farmers’ property rights. The analysis of citizen feedback from the online space further took into account the impact of policy content on its audience (farmers), revealing that shortening the compensation payment time rather than increasing the compensation amount is the most common and critical demand among farmers. This underscores the urgent need for a policy-related response from the government to meet farmer’s demands for “procedural justice”. Our conclusions address a gap in the existing literature by integrating policy text analysis with public opinion, thereby offering referential insights into understanding the evolutionary process, policy features, and implementation effects of TDR program in China. Full article

Pet tourism has experienced significant growth in recent years, reflecting changes in the perception of pets as family members. This research examines the factors influencing attitude, travel intention, and payment intention in pet tourism in Chile, specifically analyzing the role of emotional attachment, perceived benefits, prestige, and novelty. Using a quantitative methodology, data were collected through an online survey of pet owners in Chile. The results reveal that perceived benefits and novelty positively influence attitudes toward traveling with pets, while prestige and perceived benefits directly impact travel intention. Surprisingly, emotional attachment did not show a significant influence, which contrasts with previous studies in other cultural contexts. This research also confirms that attitude and travel intention are relevant predictors of willingness to pay more for pet-friendly tourism services. These findings contribute to the literature on pet tourism in Latin America and provide practical implications for developing tourism services tailored to the Chilean market. This study concludes that marketing strategies in the tourism sector should emphasize tangible benefits and novel elements rather than emotional aspects to attract this growing market segment. Full article

China has effectively safeguarded biodiversity by building the world’s largest system of nature reserves, but the livelihoods of farmers near the reserves are often not guaranteed. This paper aimed to deeply explore the intrinsic relationship between the geographical location of households and their livelihood outcomes within seven nature reserves across three provinces in China. Innovatively, this study subdivided households’ livelihood outcomes into four patterns: high well-being with high dependency (H-H), high well-being with low dependency (H-L), low well-being with high dependency (L-H), and low well-being with low dependency (L-L), in order to comprehensively analyze the diversity of households’ livelihoods and further reveal the spatial logic and mechanisms underlying regional development imbalances. Methodologically, a combination of quantitative analysis and qualitative research was adopted. Representative villages in the protected area and outside the protected area were selected for semi-structured interviews with the village heads. Meanwhile, farmers were randomly selected in the villages for structured interviews and 1106 questionnaires were collected. Through variance analysis, the study first identified the unique advantages of H-H-pattern households in natural resource utilization. Subsequently, a multinomial logistic model was used to deeply analyze how geographical location (including whether a household was located within a protected area and the distance to markets) affected the transition mechanisms of the other three livelihood outcomes towards the H-H pattern. Based on this, marginal effect analysis was employed to further delineate the specific influence pathways of geographical factor changes on households’ livelihood outcome selection probabilities. The results showed that the geographical location of households’ residences had a significant impact on their livelihood outcomes. For households in the L-L and H-L patterns, proximity to markets could significantly increase the probability of their livelihood transitioning to the H-H pattern. Meanwhile, residing within protected areas significantly promoted the transition of L-L and H-L households to the H-H pattern but showed a certain inhibitory effect on L-H households. Marginal effects analysis further shows that both living in protected areas and reducing distance to markets increase the tendency of households to be highly dependent on natural resources for livelihood outcomes. Compensation policies should be designed according to local conditions, and subsidies for the development of ecotourism and other service industries should be increased for rural households in protected areas to ensure sustainable development rather than transfer payments. Full article

The mobile gaming industry has undergone remarkable expansion alongside advancements in mobile and information technologies. Facing intensified market competition due to user number saturation and product homogeneity, industry practitioners require actionable insights into design features that drive user engagement and in-game payments. This study employs a qualitative research approach based on grounded theory, focusing on role-playing mobile games as the research subject. Primary data were collected through in-depth interviews and focus groups with gaming industry professionals and users, supplemented by online textual data collection. Utilizing the three-stage coding paradigm of grounded theory and drawing upon emotional design theory, this study constructs a dimensional model of mobile game design features comprising 4 major categories, 16 primary design characteristics, and 41 specific design elements. The findings provide theoretical support for understanding how mobile game design features influence user behaviors while offering practical insights for optimizing mobile game products. This research contributes to both academic discourse and industrial practice by systematically identifying and categorizing critical design elements that affect user engagement in mobile games. Full article

The categories for call center conversation data are valuably used for reporting business results and marketing analysis. However, they typically lack clear patterns and suffer from severe imbalance in the number of instances across categories. The call center conversation categories used in this study are Payment, Exchange, Return, Delivery, Service, and After-sales service (AS), with a significant imbalance where Service accounts for 26% of the total data and AS only 2%. To address these challenges, this study proposes a model that ensembles meta-information generated through Named Entity Recognition (NER) with machine learning inference results. Utilizing KoBERT (Korean Bidirectional Encoder Representations from Transformers) as our base model, we employed Easy Data Augmentation (EDA) to augment data in categories with insufficient instances. Through the training of nine models, encompassing KoBERT category probability weights and a CatBoost (Categorical Boosting) model that ensembles meta-information derived from named entities, we ultimately improved the F1 score from the baseline of 0.9117 to 0.9331, demonstrating a solution that circumvents the need for expensive LLMs (Large Language Models) or high-performance GPUs (Graphic Process Units). This improvement is particularly significant considering that, when focusing solely on the category with a 2% data proportion, our model achieved an F1 score of 0.9509, representing a 4.6% increase over the baseline. Full article

In the increasingly competitive mobile ecosystem, understanding user behavior is essential to improve targeted sales and the effectiveness of advertising. With the widespread adoption of smartphones and the increasing variety of mobile applications, predicting user behavior has become more complex. This study presents a comprehensive framework for predicting mobile payment behavior by integrating demographic, situational, and behavioral factors, focusing on patterns in mobile application usage. To address the complexity of the data, we use a combination of machine-learning models, including extreme gradient boosting, light gradient boosting machine, and CatBoost, along with Shapley additive explanations (SHAP) to improve interpretability. An analysis of extensive panel data from Korean Android users reveals that incorporating application usage behavior in such models considerably improves the accuracy of mobile payment predictions. The study identifies key predictors of payment behavior, indicated by high Shapley values, such as using social networking services (e.g., KakaoTalk and Instagram), media applications (e.g., YouTube), and financial and membership applications (e.g., Toss and OK Cashbag). Moreover, the results of the SHAP force analysis reveal the individual session-level drivers of mobile purchases. These findings advance the literature on mobile payment prediction and offer practical insights for improving targeted marketing strategies by identifying key behavioral drivers of mobile transactions. Full article

The proliferation of digital platforms and interactive technologies has transformed the way service providers engage with their customers, particularly in emerging economies, where digital inclusion is an ongoing process. This study explores the relationship between omnichannel strategies and customer satisfaction, conceptualized here as a proxy for Quality of Experience (QoE), within a smart service station located in a digitally underserved region. Grounded in customer journey theory and the expectancy–disconfirmation paradigm, the study investigates how data integration, digital payment systems, and logistical flexibility—key components of intelligent e-service systems—influence user perceptions and satisfaction. Based on a correlational design with a non-probabilistic sample of 108 customers, the findings reveal a moderate association between overall omnichannel integration and satisfaction (ρ = 0.555, p < 0.01). However, a multiple regression analysis indicates that no individual dimension significantly predicts satisfaction (adjusted R² = 0.002). These results suggest that while users value system integration and interaction flexibility, no single technical feature drives satisfaction independently. The study contributes to the growing field of intelligent human-centric service systems by contextualizing QoE and digital inclusion within emerging markets and by emphasizing the importance of perceptual factors in ICT-enabled environments. Full article

The large-scale integration of renewable energy sources (RESs) has raised concerns regarding grid congestion in Japan. Battery energy storage systems (BESSs) can mitigate congestion by adjusting charging schedules; however, BESS owners basically prioritize market arbitrage, which may not be aligned with congestion mitigation. This paper proposes a charging incentive design to guide arbitrage-oriented BESS charging toward time periods that are effective for grid congestion mitigation. The system operator predicts congested hours and ensures that BESS owners can purchase electricity at the lowest daily market price. This design intends to shift the BESS charging time towards congestion periods. Because market prices tend to decline during congestion periods, the proposed method reduces the operator’s financial burden while encouraging congestion-mitigating charging behavior. Numerical simulations using a simplified Japanese east-side power system model demonstrate that the proposed method reduced the congestion mitigation costs by 3.86% and curtailed the RES output by 3.89%, compared to using no incentive method (current operation in Japan). Furthermore, additional payments to BESS owners accounted for only around 7% of the resulting cost savings, indicating that the proposed method achieved lower overall system operating costs. Full article