Search results for "Total cost"

Strictly convex variable cost does not imply U-shaped average cost

2016

Abstract We show that strictly convex variable costs do not imply U-shaped average costs and provide a sufficient condition for U-shaped average costs. As an application we study endogenous entry when firms have market power and they have decreasing average cost but increasing marginal cost.

When are international managers a cost effective solution? The rationale of transaction cost economics applied to staffing decisions in MNCs

2005

Abstract A common claim in the literature of expatriation is the one referring to the high costs of expatriation. In this paper, on the basis of transaction cost economics (TCE), we show how limited this approach is. In particular, we consider a set of costs that, although ignored in traditional expatriation literature, must be accounted for when a MNC is deciding on whether to recruit expatriates or local managers in its subsidiaries. These costs include selection, training, and performance evaluation costs. We also formulate a series of hypotheses around the situations in which the total costs of recruiting expatriates are lower than those generated by local managers. We then test these h…

The Rural Postman Problem on mixed graphs with turn penalties

2002

In this paper we deal with a problem which generalizes the Rural Postman Problem defined on a mixed graph (MRPP). The generalization consists of associating a non-negative penalty to every turn as well as considering the existence of forbidden turns. This new problem fits real-world situations more closely than other simpler problems. A solution tour must traverse all the requiring service arcs and edges of the graph while not making forbidden turns. Its total cost will be the sum of the costs of the traversed arcs and edges together with the penalties associated with the turns done. The Mixed Rural Postman Problem with Turn Penalties (MRPPTP) consists of finding such a tour with a total mi…

Obtaining the best value for money in adaptive sequential estimation

2010

Abstract In [Kujala, J. V., Richardson, U., & Lyytinen, H. (2010). A Bayesian-optimal principle for learner-friendly adaptation in learning games. Journal of Mathematical Psychology , 54(2), 247–255], we considered an extension of the conventional Bayesian adaptive estimation framework to situations where each observable variable is associated with a certain random cost of observation. We proposed an algorithm that chooses each placement by maximizing the expected gain in utility divided by the expected cost. In this paper, we formally justify this placement rule as an asymptotically optimal solution to the problem of maximizing the expected utility of an experiment that terminates when the…

Prices in Mixed Cost Allocation Problems

2001

Abstract We consider mixed cost allocation problems, i.e., joint cost problems that involve two types of heterogeneous outputs, divisible and indivisible. The Aumann–Shapley price mechanism is extended to this setting. We also present a set of properties which characterize this cost sharing rule. Journal of Economic Literature Classification numbers: D63, C79.

Revisiting the Mathematical Difficulties in Patinkin Cartel Model and Joint Profit Maximization

2015

We discuss the mathematical difficulties encountered in Patinkin's classical cartel model. It may be impossible to derive Patinkin's cartel by finding the reciprocal marginal cost functions: it could be impossible for cartel members to compute a solution, unless certain assumptions are made to simplify the problem, such as quasi-linear marginal costs or constant marginal costs. The total cost function is incoherent with respect to the sum of members' total cost. The model cannot handle constant marginal costs but we remind that de Mesnard's (2009, 2011) model of cartel with exogenous market shares allow solving the problem. We conclude that the Patinkin model of cartel is not so self-eviden…

Selection of the Optimal Design Rainfall Return Period of Urban Drainage Systems

2014

Abstract The aim of this work is to define a methodology to identify the optimal rainfall return period for the design of urban drainage systems. The choice of the optimal return period is made minimizing the total costs of the system: the sewer network is dimensioned for a set of possible design rainfall return periods, and the corresponding construction, maintenance and operation costs are evaluated. For each scenario, the total expected damage from flooding caused by rainfall events with return period greater than the design one is then estimated by hydraulic simulation. This methodology has been applied to a small urban catchment in Palermo (Italy).

Impact of Treatment Failure on the Total Cost of Triple Therapy Including Boceprevir or Telaprevir Based on the French Early Access Program (ANRS CO2…

2013

Models and solution methods for the uncapacitatedr-allocationp-hub equitable center problem

2017

Hub networks are commonly used in telecommunications and logistics to connect origins to destinations in situations where a direct connection between each origin–destination (o-d) pair is impractical or too costly. Hubs serve as switching points to consolidate and route traffic in order to realize economies of scale. The main decisions associated with hub-network problems include (1) determining the number of hubs (p), (2) selecting the p-nodes in the network that will serve as hubs, (3) allocating non-hub nodes (terminals) to up to r-hubs, and (4) routing the pairwise o-d traffic. Typically, hub location problems include all four decisions while hub allocation problems assume that the valu…

Next generation diagnostic algorithm in non-small cell lung cancer predictive molecular pathology: The KWAY Italian multicenter cost evaluation study

2022

Abstract Aims The KWAY project aims to investigate the economic sustainability of the up-front NGS technologies adoption in the analysis of clinically relevant molecular alterations in NSCLC patients. Methods The diagnostic workflow and the related sustained costs of five Italian referral centers were assessed in four different evolving scenarios were analyzed. For each scenario, two alternative testing strategies were evaluated: the Maximized Standard strategy and the Maximized NGS strategy. Results For each center, the robustness of obtained results was verified through a deterministic sensitivity analysis, observing the variation of total costs based on a variation of ±20 % of the input …