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Keywords = two-person game

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28 pages, 2129 KiB  
Article
Research on Pricing Strategies of Knowledge Payment Products Considering the Impact of Embedded Advertising Under the User-Generated Content Model
by Xiubin Gu, Yi Qu and Minhe Wu
Systems 2025, 13(8), 665; https://doi.org/10.3390/systems13080665 - 6 Aug 2025
Abstract
In UGC-based knowledge trading platforms, the abundance of personalized content often leads to varying quality levels. By incorporating embedded advertising, platforms can incentivize knowledge producers to produce high-quality content; however, the uncertainty in managing embedded advertisements increases the complexity of pricing knowledge products. [...] Read more.
In UGC-based knowledge trading platforms, the abundance of personalized content often leads to varying quality levels. By incorporating embedded advertising, platforms can incentivize knowledge producers to produce high-quality content; however, the uncertainty in managing embedded advertisements increases the complexity of pricing knowledge products. This paper examines the impact of embedded advertising on the pricing of knowledge products, aims to maximize the profits of both knowledge producer and the platform. Based on Stackelberg game theory, two pricing decision models are developed under different advertising management modes: the platform-managed mode (where the platform determines the advertising intensity) and the advertiser-managed mode (where the advertiser determines the advertising intensity). The study analyzes the effects of UGC product quality, consumer sensitivity to advertising, and power structure on knowledge product pricing, and derives threshold conditions for optimal pricing. The results indicate that (1) When the quality of UGC knowledge product exceeds a certain threshold, platform-managed advertising becomes profitable. (2) Under the platform-managed mode, both the platform and knowledge producer can adopt price-increasing strategies to enhance profits. (3) Under the advertiser-managed mode, the platform can leverage differences in power structure to optimize revenue, while knowledge producer can actively enhance his pricing power to achieve mutual benefits with the platform. This study provides theoretical support and practical guidance for advertising cooperation mechanisms and pricing strategies for knowledge products in UGC-based knowledge trading platforms. Full article
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36 pages, 3809 KiB  
Article
A Game Theoretic Approach to Electric Vehicle Promotion Policy Selection from the Consumer Side
by Lulu Shao, Jingxi Zhou, Peng Li, Zongxiang Zhang and Lin Chen
Systems 2025, 13(7), 506; https://doi.org/10.3390/systems13070506 - 23 Jun 2025
Viewed by 277
Abstract
With the increasing popularity of electric vehicles (EVs) through purchase subsidy (PS) policies, the personal carbon tax (PCT) policy has been adopted by some countries due to its characteristics of restraining the diffusion of fuel vehicles (FVs) from the consumer side. This paper [...] Read more.
With the increasing popularity of electric vehicles (EVs) through purchase subsidy (PS) policies, the personal carbon tax (PCT) policy has been adopted by some countries due to its characteristics of restraining the diffusion of fuel vehicles (FVs) from the consumer side. This paper constructs a three-stage game model consisting of government, manufacturers, and consumers to investigate the impact of basic utility valuation heterogeneity differences on the optimal decisions and to compare the implementation effects of two policies. The results are as follows. First, conventional wisdom suggests that EV consumer surplus under PS policy will exceed that under PCT policy. Surprisingly, our results show that when the basic utility valuation difference is small, the EV consumer surplus under PCT policy exceeds that under PS policy. Second, for manufacturers, it is interesting to note that the sustained impact of PCT policy on promoting the diffusion of the EV market and the profit of the EV manufacturer is related to the basic utility valuation heterogeneity difference. However, compared with PS policy, the implementation of PCT policy has a better restraining effect on the diffusion of the FV market, effectively reducing the demand for FV and the profit of FV manufacturers. Finally, contrary to the common belief that increasing subsidies or raising carbon taxes can increase overall social welfare, this paper shows that subsidies and carbon taxes have a dual impact on overall social welfare, and only when their positive effects outweigh the negative ones can such policies become effective ways of promoting industrial transformation. Full article
(This article belongs to the Section Systems Practice in Social Science)
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16 pages, 357 KiB  
Article
Entropy Maximization, Time Emergence, and Phase Transition
by Jonathan Smith
Entropy 2025, 27(6), 586; https://doi.org/10.3390/e27060586 - 30 May 2025
Viewed by 407
Abstract
We survey developments in the use of entropy maximization for applying the Gibbs Canonical Ensemble to finite situations. Biological insights are invoked along with physical considerations. In the game-theoretic approach to entropy maximization, the interpretation of the two player roles as predator and [...] Read more.
We survey developments in the use of entropy maximization for applying the Gibbs Canonical Ensemble to finite situations. Biological insights are invoked along with physical considerations. In the game-theoretic approach to entropy maximization, the interpretation of the two player roles as predator and prey provides a well-justified and symmetric analysis. The main focus is placed on the Lagrange multiplier approach. Using natural physical units with Planck’s constant set to unity, it is recognized that energy has the dimensions of inverse time. Thus, the conjugate Lagrange multiplier, traditionally related to absolute temperature, is now taken with time units and oriented to follow the Arrow of Time. In quantum optics, where energy levels are bounded above and below, artificial singularities involving negative temperatures are eliminated. In a biological model where species compete in an environment with a fixed carrying capacity, use of the Canonical Ensemble solves an instance of Eigen’s phenomenological rate equations. The Lagrange multiplier emerges as a statistical measure of the ecological age. Adding a weak inequality on an order parameter for the entropy maximization, the phase transition from initial unconstrained growth to constrained growth at the carrying capacity is described, without recourse to a thermodynamic limit for the finite system. Full article
(This article belongs to the Section Thermodynamics)
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23 pages, 1691 KiB  
Communication
AdaptRehab VR: Development of an Immersive Virtual Reality System for Upper Limb Stroke Rehabilitation Designed for Low- and Middle-Income Countries Using a Participatory Co-Creation Approach
by Chala Diriba Kenea, Teklu Gemechu Abessa, Dheeraj Lamba and Bruno Bonnechère
Bioengineering 2025, 12(6), 581; https://doi.org/10.3390/bioengineering12060581 - 28 May 2025
Cited by 1 | Viewed by 707
Abstract
Stroke remains a significant global health challenge, particularly in low- and middle-income Countries (LMICs), where two-thirds of stroke-related deaths occur, and disability-adjusted life years are seven times higher compared to high-income Countries (HICs). The majority of stroke survivors suffer from upper limb impairment, [...] Read more.
Stroke remains a significant global health challenge, particularly in low- and middle-income Countries (LMICs), where two-thirds of stroke-related deaths occur, and disability-adjusted life years are seven times higher compared to high-income Countries (HICs). The majority of stroke survivors suffer from upper limb impairment, severely limiting their daily activities and significantly diminishing their overall quality of life. Rehabilitation plays a critical role in restoring function and independence, but it faces challenges such as low engagement, limited customization, difficulty tracking progress, and accessibility barriers, particularly in LMICs. Immersive virtual reality (imVR) has shown promise in addressing these challenges, but most commercial imVR systems lack therapeutic design and cultural adaptation. This study aimed to develop culturally adaptable imVR games for upper limb stroke rehabilitation (ULSR) in the context of LMICs, with a particular focus on Ethiopia. The AdaptRehab VR system was developed including six imVR games (Basket Bloom, Strike Zone, TapQuest, FruitFall Frenzy, Precision Pitch, and Bean Picker Pro) through co-creation approaches involving Ethiopian and Belgian physiotherapists, stakeholders, and patients, incorporating game development mechanics in rehabilitation, such as therapeutic aims, cultural factors, feedback, automatic progression recording, task variety, and personalized rehabilitation. It was designed with the Unity 3D engine and Oculus Quest headsets, supporting controllers and hand tracking. This culturally tailored imVR platform has demonstrated significant potential to enhance ULSR accessibility, patient motivation, and outcomes in resource-constrained settings, addressing critical gaps in stroke rehabilitation solutions. In conclusion, the AdaptRehab VR system was successfully developed as a culturally contextualized imVR platform tailored to tackle ULSR challenges in LMICs, with a specific focus on Ethiopia. Full article
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23 pages, 12598 KiB  
Article
Integrating Augmented Reality and Geolocation for Outdoor Interactive Educational Experiences
by Christos Mourelatos and Michalis Vrigkas
Virtual Worlds 2025, 4(2), 18; https://doi.org/10.3390/virtualworlds4020018 - 7 May 2025
Viewed by 709
Abstract
This paper presents an augmented reality (AR) mobile application developed for Android devices, which brings five bust sculptures of historical personalities of the city of Komotini, Greece, to ‘life’ using the Unity engine. These busts narrate their achievements in two languages, Greek and [...] Read more.
This paper presents an augmented reality (AR) mobile application developed for Android devices, which brings five bust sculptures of historical personalities of the city of Komotini, Greece, to ‘life’ using the Unity engine. These busts narrate their achievements in two languages, Greek and English, to educate visitors on historical and cultural heritage and provide a comprehensive glimpse into the area’s past using 3D models, textures, and animations tailored to the educational content. Based on the users’ location, the application provides an interactive educational experience, allowing the users to explore the history and characteristics of the busts in an innovative way. The users may interact with the busts using markerless AR, discover information and historical facts about them, and stimulate their understanding of the busts’ significance in the context of local history and culture. Interactive elements, such as videos and 3D animations, are incorporated to enrich the learning experience. A location-based knowledge quiz game was also developed for this purpose. The application was evaluated by statistical analysis to measure the effect of using the application on the involvement of users in the educational process and to study the users’ satisfaction and experience. This approach revealed that the proposed AR app is effective in providing educational content, promotes active user participation, and provides a high level of user satisfaction. Full article
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17 pages, 303 KiB  
Article
The Social Context of Malevolent Creativity
by Harun Tadik, A. Kadir Bahar and Mark A. Runco
Behav. Sci. 2025, 15(5), 630; https://doi.org/10.3390/bs15050630 - 5 May 2025
Viewed by 563
Abstract
The purpose of the present study was to investigate the influence of social context and morality on malevolent creativity. The sample consisted of 217 (176 female, 41 male) undergraduate and graduate students in a Southeastern public research university in the U.S. Six different [...] Read more.
The purpose of the present study was to investigate the influence of social context and morality on malevolent creativity. The sample consisted of 217 (176 female, 41 male) undergraduate and graduate students in a Southeastern public research university in the U.S. Six different open-ended socially oriented problems (three Divergent Thinking (DT) Social Games and three DT Realistic Presented Problems tasks) were used to explore the way malevolent creativity differs in two sets of problem tasks. Realistic Presented Problems are constructed differently from Social Games tasks in such a way that they include unfair, disturbing, and threatening contextual factors, while Social Games problems have more neutral and everyday problem scenarios. Participants also completed the Self-Report of Creative Traits and morality measures. The findings of the study indicated that fluency and originality were related significantly to malevolent creativity. Further, social contexts in DT tasks led to a significant difference in malevolent creativity. Participants generated significantly more malevolent creative responses in Realistic Presented Problems than in Social Games tasks. The results also revealed that morality was significantly correlated with creative personality, but the results provided no evidence that morality moderates the relation between creativity indices and malevolent creativity. Full article
16 pages, 736 KiB  
Article
Examining the User Engagement on Mind-Sport Online Games: A Social Cognitive Theory and Word-of-Mouth Based Model Proposal
by Manuela Linares, M. Dolores Gallego and Salvador Bueno
Big Data Cogn. Comput. 2025, 9(4), 91; https://doi.org/10.3390/bdcc9040091 - 9 Apr 2025
Viewed by 661
Abstract
Online gamers have increased exponentially in the last few years in all types of online games, including mind-sport games. These games, like Bridge or Chess, have been traditionally played face-to-face. Nowadays more and more players prefer to use online platforms to play mind-sport [...] Read more.
Online gamers have increased exponentially in the last few years in all types of online games, including mind-sport games. These games, like Bridge or Chess, have been traditionally played face-to-face. Nowadays more and more players prefer to use online platforms to play mind-sport games. Previous studies have investigated different aspects of online games and even a few on mind-sport games. However, the frameworks WOM (Word-of-Mouth) and SCT (Social Cognitive Theory) have been sparsely used in this context. In this manner, the present article proposes two objectives: (1) using the SCT in order to analyse the impact of the sociological factor on user engagement in mind-sport online games and (2) analysing how the WOM affects user engagement in mind-sport online games. Specifically, the proposed PLS-SEM model is defined by combining five constructs from these frameworks: (1) health consciousness, (2) WOM and emotional behaviour, (3) self-efficacy, (4) cognitive engagement, and (5) behavioural intention. The findings reveal that health consciousness affects WOM and emotional behaviour in a positive way as players desire well-being. Also, WOM and emotional behaviour affect cognitive engagement, as positive comments encourage high-skill gamers in mind sports. Finally, this study shows how the environmental factor of SCT is represented by WOM and emotional behaviour in an indirect way and the personal factor represented by self-efficacy in a direct way to positively influence behaviour intention. Full article
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28 pages, 516 KiB  
Article
A Solution to the Non-Cooperative Equilibrium Problem for Two and Three Players Using the Fixed-Point Technique
by Muhammad Tariq, Sabeur Mansour, Mujahid Abbas and Abdullah Assiry
Symmetry 2025, 17(4), 544; https://doi.org/10.3390/sym17040544 - 2 Apr 2025
Cited by 1 | Viewed by 450
Abstract
The aims of this paper are (a) to introduce the concept of the 0-complete m-metric spaces, (b) to obtain the results for mw-Caristi mapping using Kirk’s approach, (c) to investigate the problem of non-cooperative equilibrium (abbreviated as NCE) in two- [...] Read more.
The aims of this paper are (a) to introduce the concept of the 0-complete m-metric spaces, (b) to obtain the results for mw-Caristi mapping using Kirk’s approach, (c) to investigate the problem of non-cooperative equilibrium (abbreviated as NCE) in two- and three-person games in the structure of game theory and find the solution by employing coupled and tripled fixed-point results within the framework of 0-complete m-metric spaces (m-metric spaces, respectively), and (d) to establish some coupled fixed-point results which extend the scope of metric fixed point theory. We provide some examples to support the concepts and results presented in this paper. As an application of our results in this paper, we obtain the existence of a solution for a nonlinear integral equation. Full article
(This article belongs to the Topic Fixed Point Theory and Measure Theory)
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13 pages, 316 KiB  
Article
Investment Assessments in the Adoption of Accessible and Assistive Technologies Within Built Environments for Persons with Disabilities
by Siny Joseph and Vinod Namboodiri
Buildings 2025, 15(6), 931; https://doi.org/10.3390/buildings15060931 - 15 Mar 2025
Viewed by 438
Abstract
Emerging trends in technology are providing opportunities for a broader range of accessible and assistive technologies (AATs) to positively impact persons with disabilities in terms of independent living and employment within and across built environments. However, such technologies typically require significant investments by [...] Read more.
Emerging trends in technology are providing opportunities for a broader range of accessible and assistive technologies (AATs) to positively impact persons with disabilities in terms of independent living and employment within and across built environments. However, such technologies typically require significant investments by entities that offer such options. It is not clear how such firms compete in a market with other firms that may not provide such options. Understanding such competition can help to promote greater investments in accessibility infrastructure within built environments by entities and provide insights into how federal efforts can further boost such efforts. To this end, this paper presents a game-theoretic framework of market competition between two firms where one invests in accessibility (bearing additional upfront costs) and compares it with another one that does not. Numerical evaluations demonstrate the range of parametric values where accessibility investments pay off. Furthermore, case studies are presented to demonstrate the practical feasibility of these parameter values. The results indicate that any firm considering making accessibility investments can expect to make profits and also gain an advantage over its competitors if the expected increase in the average user experience is significant (quantified as 20% or more for the parameters considered in this work) across all potential users. Full article
(This article belongs to the Special Issue New Trends in Built Environment and Mobility)
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25 pages, 4891 KiB  
Article
A Matching Model for Ride-Sharing: A Non-Cooperative Game Approach Between Drivers and Riders
by Hiroshi Shimamoto
Smart Cities 2025, 8(2), 40; https://doi.org/10.3390/smartcities8020040 - 4 Mar 2025
Viewed by 1429
Abstract
This study proposes an optimal matching problem between drivers and riders as a generalised Nash equilibrium problem, which finds a solution where no drivers and riders have the incentive to change their strategy. The proposed model is formulated as a (D + R) [...] Read more.
This study proposes an optimal matching problem between drivers and riders as a generalised Nash equilibrium problem, which finds a solution where no drivers and riders have the incentive to change their strategy. The proposed model is formulated as a (D + R) person pure strategy game, where D and R are the number of drivers and riders, respectively. We further reformulate the proposed model as a two-person pure strategy game. A solution algorithm that iteratively solves the drivers’ and riders’ sub-problem is proposed, which is proven to converge to a Nash equilibrium solution within a finite number of iterations. Finally, we numerically confirm that the proposed model yields a Nash equilibrium solution and then perform sensitivity analysis over the parameters of the proposed model. Full article
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12 pages, 24950 KiB  
Proceeding Paper
Developing Weka-Based Image Classification Learning Model: Enhancing Novice Designers’ Recognition of Brand Typicality
by Hung-Hsiang Wang and Ching-Yi Chen
Eng. Proc. 2025, 89(1), 8; https://doi.org/10.3390/engproc2025089008 - 21 Feb 2025
Cited by 1 | Viewed by 366
Abstract
Brand typicality is crucial in shaping consumer perceptions of brands and poses challenges for novice designers to capture due to their limited tacit knowledge. Using Weka’s image classification, we developed a brand product classification model. A dataset with 600 images was obtained from [...] Read more.
Brand typicality is crucial in shaping consumer perceptions of brands and poses challenges for novice designers to capture due to their limited tacit knowledge. Using Weka’s image classification, we developed a brand product classification model. A dataset with 600 images was obtained from Asus and MSI, the leading eSports brands, covering various products such as controllers, mouse devices, headsets, and PC gaming components. The random forest classifier achieved an accuracy of 81 to 85%, slightly higher in the PC gaming category. The design features from Asus ROG and MSI game series products were extracted to generate 36 test images. We used keywords as prompts in Midjurney and Stable Diffusion to generate 36 test images. The developed brand product classification model in this study correctly classified 30 images. However, in the OP category, two graphics card images and one casing image were misclassified. In the PC category, two mouse images and a laptop picture were misclassified. Discrepancies between AI-generated images and personal expertise were improved in terms of the efficiency of the model for new designers. The developed model deepens the understanding of brand characteristics, maintains brand coherence, and strengthens product design innovation and market competitiveness. The model effectively assesses brand characteristics in product appearances using AI, highlighting its role in improving early design processes and new product development strategies. Full article
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20 pages, 4882 KiB  
Article
Empowering Recovery: The T-Rehab System’s Semi-Immersive Approach to Emotional and Physical Well-Being in Tele-Rehabilitation
by Hayette Hadjar, Binh Vu and Matthias Hemmje
Electronics 2025, 14(5), 852; https://doi.org/10.3390/electronics14050852 - 21 Feb 2025
Viewed by 716
Abstract
The T-Rehab System delivers a semi-immersive tele-rehabilitation experience by integrating Affective Computing (AC) through facial expression analysis and contactless heartbeat monitoring. T-Rehab closely monitors patients’ mental health as they engage in a personalized, semi-immersive Virtual Reality (VR) game on a desktop PC, using [...] Read more.
The T-Rehab System delivers a semi-immersive tele-rehabilitation experience by integrating Affective Computing (AC) through facial expression analysis and contactless heartbeat monitoring. T-Rehab closely monitors patients’ mental health as they engage in a personalized, semi-immersive Virtual Reality (VR) game on a desktop PC, using a webcam with MediaPipe to track their hand movements for interactive exercises, allowing the system to tailor treatment content for increased engagement and comfort. T-Rehab’s evaluation comprises two assessments: system performance and cognitive walkthroughs. The first evaluation focuses on system performance, assessing the tested game, middleware, and facial emotion monitoring to ensure hardware compatibility and effective support for AC, gaming, and tele-rehabilitation. The second evaluation uses cognitive walkthroughs to examine usability, identifying potential issues in emotion detection and tele-rehabilitation. Together, these evaluations provide insights into T-Rehab’s functionality, usability, and impact in supporting both physical rehabilitation and emotional well-being. The thorough integration of technology inside T-Rehab ensures a holistic approach to tele-rehabilitation, allowing patients to participate comfortably and efficiently from anywhere. This technique not only improves physical therapy outcomes but also promotes mental resilience, marking an important step advance in tele-rehabilitation practices. Full article
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27 pages, 12270 KiB  
Article
Pricing Decision-Making Considering Ambiguity Tolerance in Consumers: Evidence from Recycled Building Material Enterprises
by Jie Peng, Yuxi Zou, Hao Zhang, Lianghui Zeng, Yuhan Wang and Xingwei Li
Systems 2025, 13(2), 98; https://doi.org/10.3390/systems13020098 - 5 Feb 2025
Cited by 6 | Viewed by 1214
Abstract
Globally, recycled building materials have attracted much attention, but the ambiguity of the use of recycled building materials makes it difficult for the building material remanufacturer (BMR) to compete with the building material manufacturer (BMM). Brand building is an important strategic tool for [...] Read more.
Globally, recycled building materials have attracted much attention, but the ambiguity of the use of recycled building materials makes it difficult for the building material remanufacturer (BMR) to compete with the building material manufacturer (BMM). Brand building is an important strategic tool for enterprises to increase product competitiveness. From the new perspective of the supply chain, this paper aims to examine the decision-making behavior of enterprises under two scenarios of consumer ambiguity neutrality and ambiguity tolerance and to analyze the impact of ambiguity tolerance on the pricing decisions of building materials supply chains in a brand-building scenario. This paper constructs a building material supply chain game model consisting of the BMM and BMR, according to the cognitive–affective personality system (CAPS) theory and through the Stackelberg game. The main findings are as follows. (1) Strengthening brand building can mitigate the negative impact of ambiguity tolerance on new product pricing. The selling price of recycled building materials is positively related to ambiguity tolerance. (2) When the BMM has higher brand value, there is a U-shaped trend between profit and ambiguity tolerance at a cost coefficient above the threshold value of 0.61. (3) When the BMR has higher brand value, profit is negatively related to ambiguity tolerance at operational inefficiencies and cost coefficients below the threshold value of 0.45. Otherwise, profits and ambiguity tolerance follow a U-shaped trend. This paper not only expands the research on brand building and ambiguity tolerance but also provides theoretical guidance for enterprises to make effective decisions in response to consumers’ ambiguity psychology. Full article
(This article belongs to the Section Supply Chain Management)
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26 pages, 8227 KiB  
Article
Enhancing Robotic-Assisted Lower Limb Rehabilitation Using Augmented Reality and Serious Gaming
by Calin Vaida, Gabriela Rus, Paul Tucan, José Machado, Adrian Pisla, Ionut Zima, Iosif Birlescu and Doina Pisla
Appl. Sci. 2024, 14(24), 12029; https://doi.org/10.3390/app142412029 - 23 Dec 2024
Cited by 4 | Viewed by 2217
Abstract
Stroke, amyotrophic lateral sclerosis (ALS), and Parkinson’s disease are some of the conditions that can lead to neuromotor disabilities requiring rehabilitation. To address the socio-economic burden that is amplified by the rapidly increasing elderly population, traditional rehabilitation techniques have recently been complemented by [...] Read more.
Stroke, amyotrophic lateral sclerosis (ALS), and Parkinson’s disease are some of the conditions that can lead to neuromotor disabilities requiring rehabilitation. To address the socio-economic burden that is amplified by the rapidly increasing elderly population, traditional rehabilitation techniques have recently been complemented by technological advancements, particularly Robot-Assisted Therapy (RAT). RAT enhances motor learning by improving both accuracy and consistency. This study proposes an innovative rehabilitation system that combines serious gaming and augmented reality (AR) with the LegUp parallel robot, developed for the spatial rehabilitation of the hip, knee, and ankle in bed-ridden patients. The system aims to improve patient outcomes and actively involve patients in their therapy. Electro-goniometers and a HoloLens 2 device are used to provide immediate feedback about the position of the patient’s joints, forming the basis of an interactive game in which the patient moves their leg to reach various targets. Two game modes were developed, each targeting different aspects of neuromotor rehabilitation, such as coordination, strength, and flexibility. Preliminary findings suggest that combining RAT with augmented reality-based serious gaming can increase patient motivation and engagement. Furthermore, the personalized and interactive nature of the therapy holds the potential to improve rehabilitation outcomes by fostering sustained engagement and effort. Full article
(This article belongs to the Special Issue Virtual Reality (VR) in Healthcare)
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20 pages, 2230 KiB  
Article
Coordinating the Reverse Factoring System: Buying Back and Bargaining
by Shengying Zhao and Huan Zhou
Mathematics 2024, 12(23), 3850; https://doi.org/10.3390/math12233850 - 6 Dec 2024
Viewed by 1500
Abstract
Reverse factoring is a retailer-led supply chain financing system that can enhance liquidity of suppliers and reduce factoring fraud. This paper proposes a bargaining game theory model to analyze the profit distribution in reverse factoring for a two-echelon supply chain system that comprises [...] Read more.
Reverse factoring is a retailer-led supply chain financing system that can enhance liquidity of suppliers and reduce factoring fraud. This paper proposes a bargaining game theory model to analyze the profit distribution in reverse factoring for a two-echelon supply chain system that comprises a core retailer and a capital-constrained supplier. By taking into account the retailer’s credit loss risk, the impact of buying back and bargaining is investigated. Our study shows that in reverse factoring without buying back, the supplier would rather not bargain but the retailer would like to negotiate the wholesale price if the supplier’s bargaining power is low. If buying back exists and the supplier’s bargaining power is low, the retailer is also willing to negotiate the wholesale price. If there is no bargaining but the supplier takes a large portion of the supply chain’s profit, buying back is preferred. Furthermore, when there is bargaining on the wholesale price, both supplier and retailer can benefit from buying back. In addition, bargaining on the buy-back price in reverse factoring is bargaining-proof. Our study first contributes to the growing body of literature on reverse factoring and bargaining game theory. Two managerial implications for reverse factoring also emerge from the study. We find that bargaining should be considered if the supplier tends to coordinate the supply chain financing system by buying back the retailer’s unsold products. In addition, both supplier and retailer should negotiate the wholesale price as they cannot benefit from bargaining on the buy-back price. Full article
(This article belongs to the Special Issue Applied Mathematics in Supply Chain and Logistics)
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