Costly Preparations in Bargaining Karagözoğlu, Emin; Rachmilevitch, Shiran
The Scandinavian journal of economics,
April 2021, 2021-04-00, 20210401, Letnik:
123, Številka:
2
Journal Article
Recenzirano
We model costly preparations in negotiations and study their effect on agreements in a bilateral bargaining game. In our model, players bargain over a unit pie, where each player needs to pay a fixed ...cost in the beginning of every period t, if he wants to stay in the game in period t+1 in case a deal has not been reached by the end of t. Whether a player has paid this cost (i.e., prepared for negotiations in t+1) is his private information. If only player i stops paying, then player j receives the entire pie. We characterize a “war of attrition” equilibrium, which is a symmetric equilibrium. We do not know whether the game has other symmetric equilibria, but we show that if such an equilibrium exists, its payoff converges to zero as the frictions (discounting and preparation cost) vanish. Efficiency can be obtained by asymmetric play. Specifically, with asymmetric strategies every Pareto‐efficient payoff vector can be approximated in equilibrium, provided that the cost of preparations is sufficiently small and that the discount factor is sufficiently close to one.
Research Highlights: This study evaluated the impacts of biomass recovery on site preparation costs while proposing a mathematical model and framework to catalogue the benefits depending on ...harvesting system. Background and Objectives: Biomass as a viable product depends on the requisite costs of production compared to the price paid by relative markets. The removal of biomass directly impacts site preparation costs, and the operational and economic ramifications of this should inform the feasibility of biomass harvesting and market viability. The relative incentives for biomass removal depend on the quantity, presentation, and location of the residues and are thus a result of the commercial sawlog harvesting system. This incentive also largely depends on the required work to prepare a site for replanting. Materials and Methods: This study developed a mathematical model to connect the concepts of site preparation, harvesting, and biomass costs and revenues to determine the maximum net revenue. This work also developed a framework for understanding and calculating the key model inputs related to site preparation and the relative economic site preparation incentive for biomass harvesting. The framework was then illustrated by using industry data from plantations in Queensland, Australia. Results and Conclusions: The analysis identified a potential reduction in site preparation costs due to biomass harvesting of USD 75–450 ha−1, with a greater incentive when using cut-to-length harvesting systems compared with whole-tree harvesting due to the greater volume of residues after cut-to-length harvesting. For example, a removal of 20 t ha−1 of recoverable biomass after cut-to-length harvesting may equate to an economic incentive of USD 22 t−1. Depending on the biomass market, this incentive may represent a significant percentage (or even exceed) the biomass market price. The combination of biomass market price plus site preparation economic incentive may make biomass an attractive market opportunity, even in challenging biomarkets.
Virtual Reality Job Interview Training (VR-JIT) and Virtual Interview Training for Transition Age Youth (VIT-TAY) demonstrated initial effectiveness at increasing employment among transition-age ...youth with disabilities engaged in pre-employment transition services. We characterized activities and estimated the labor and non-labor costs required to prepare schools to implement VR-JIT or VIT-TAY. Implementation preparation and support teams reported labor hours throughout the implementation preparation process. Implementation preparation labor hours at 43 schools cost approximately $1,427 per school, while non-labor costs were $100 per trainee (student). We estimated the replication of implementation preparation labor activities would cost $1,024 per school (range: $841-$1,208). Most costs were spent in delivery planning and teacher training. Given that implementation preparation costs can be barriers to intervention adoption, our results provide critical information for contemplating future implementation of VR-JIT or VIT-TAY.
There is a movement preparation cost for bimanual asymmetric reaching movements compared to bimanual symmetric movements. This is likely caused by the complex spatiotemporal coupling of bimanual ...asymmetric movements. The spatiotemporal coupling of bimanual reach-to-grasp movements has been investigated, but not the potential movement preparation costs. The purpose of the present study was to investigate the relationship between movement preparation costs and spatiotemporal coupling of reach-to-grasp movements. Twenty-four participants made unimanual, bimanual symmetric, and bimanual asymmetric reach-to-grasp movements in four-choice reaction time tasks. There was a movement preparation cost for bimanual symmetric reach-to-grasp movements compared to unimanual movements, which was not previously seen for reaching movements. Coordinating two symmetric grasps probably caused this bimanual symmetric cost, as we have previously shown that there is no bimanual symmetric cost for reaching movements. It was also surprising that the complexity of movement preparation was comparable for bimanual symmetric and asymmetric reach-to-grasp movements. However, the spatial coupling of bimanual asymmetric movements at movement initiation suggested that they were prepared as bimanual symmetric movements. Online control was then used to modify these symmetric reach-to-grasp movements into asymmetric movements. Preparing bimanual symmetric reach-to-grasp movements in advance instead of asymmetric movements likely prevented a bimanual asymmetric cost.
This study evaluated the co-benefits associated with the utilization of logging residues for electricity production in East Texas, USA. The benefits evaluated included the value of CO
2 emissions ...displaced due to substituting logging residues for coal in power generation, reductions in site preparation costs during forest regeneration, and creation of jobs and income in local communities. Based on the 2004 Forest Inventory Analysis data and a 70% biomass recovery rate, annual recoverable logging residues in East Texas were estimated at 1.3
Mt (dry). These residues, if used for electricity production, would displace about 2.44
Mt of CO
2, valued at some 9M$ at the current CO
2 price traded at the Chicago Climate Exchange (accounting for about 2% of the stumpage value). Removing logging residues would also save $200–250
ha
−1 in site preparation costs. In addition, input–output modeling revealed that logging residue procurement and electricity generation together would have a stronger ripple effect on employment than on output or value-added, with about 1340 new jobs created and 215M$ in value-added generated annually. These results offer new insights into the cost-competitiveness of forest biomass and bioenergy production.
In many procurement auctions bidders do not know how many rivals they face at the time that they incur the cost of preparing their bids. We show in a theoretical model that regardless of whether the ...procurement is characterized by private or by common values an increase in the potential number of bidders may lead to higher procurement costs. This raises potential policy questions of whether and how entry should be encouraged or limited in public procurement auctions. We use evidence from auctions of construction contracts to estimate the effect of an increase in the pool of potential bidders on entry and auction prices when entry and bidding decisions are made sequentially with no knowledge of the number or identity of the actual competitors.
Runtime testing is emerging as the solution for the validation and acceptance testing of service-oriented systems, where many services are external to the organization, and duplicating the system's ...components and their context is too complex, if possible at all. In order to perform runtime tests, an additional expense in the test preparation phase is required, both in software development and in hardware. Preparation cost prioritization methods have been based on runtime testability (i.e, coverage) and do not consider whether a good runtime testability is sufficient for a good runtime diagnosis quality in case faults are detected, and whether this diagnosis will be obtained efficiently (i.e., with a low number of test cases). In this paper we show (1) the direct relationship between testability and diagnosis quality, that (2) these two properties do not guarantee an efficient diagnosis, and (3) a measurement that ensures better prediction of efficiency.
The global extreme poverty rate has fallen by half since 1990, but progress within the developing world has been uneven. Extreme poverty remains widespread in most low-income countries while many ...middle-income countries also continue to have substantial levels with many people there who have escaped extreme poverty remaining poor and vulnerable. Nor has there been robust progress in sharing prosperity: in many developing countries rapid growth has been accompanied by rising inequality, often with a geographic and ethnic dimension as progress in isolated areas has lagged behind. This appendix describes select elements of the evaluation systems in the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) that are the basis for this report. They illustrate commonalities as well as differences in evaluation practices across the institutions. The World Bank, IFC, and MIGA differ in the instruments and approaches they use to achieve development results. Each institution has an evaluation system tailored to its needs. In each organization, the evaluation system comprises different components, self-evaluation, independent evaluation, and validation of self-evaluation.
The utilization of nano zero-valent iron (nZVI) in polybrominated diphenyl ethers remediation has been studied extensively. However, challenges in balancing cost and reactivity have been encountered. ...A submicron zero-valent iron coated with FeC2O4·2 H2O layers (OX-smZVI) was synthesized via a mechanochemical method, aiming to resolve this contradiction. Characterization via SEM, TEM, and XPS confirmed the structure as FeC2O4·2 H2O coated iron lamellate with a surface area 24-fold higher than ball-milled zero-valent iron (smZVI). XRD highlighted an Fe/C eutectic in OX-smZVI, boosting its electron transfer capacity. Decabromodiphenyl ether degradation by OX-smZVI follows a two-stage process, with initial degradation by FeC2O4·2 H2O and a subsequent phase dominated by electron transfer. OX-smZVI exhibits a 4.52–34.40 times faster BDE209 removal rate than nZVI and scaled-up OX-smZVI displayed superior reactivity with preparation costs only 1/680 of nZVI. Given its enhanced reactivity and cost-efficiency, OX-smZVI emerges as a promising replacement for nZVI.
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•The degradation rate of OX-smZVI for BDE-209 was more than 4.52 times higher than that of nZVI.•The preparation cost of OX-smZVI was 1/680 of nZVI.•Scaled-up preparation (tens of kilograms at a time) of OX-smZVI exhibited even higher reactivity than laboratory OX-smZVI.•Fe(II) and direct electron transfer was responsible for BDE-209 debromination.•This work offers an available, inexpensive and efficient reductant for practical PBDEs remediation.
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