The present study estimates the probability density function of the Federal Risk Management Agency’s (RMA) net income from reinsuring crop insurance for corn, wheat, and soybeans. Based on 1997 data, it is estimated that there is a 5 percent probability that RMA will need to reimburse at least $1 billion to insurance companies, and that the fair value of RMA’s reinsurance services to insurance ...

In practice, the supplier often offers the retailers a trade credit period M and the retailer in turn provides a trade credit period N to her/his customer to stimulate sales and reduce inventory. From the retailer’s perspective, granting trade credit not only increases sales and revenue but also increases opportunity cost (i.e., the capital opportunity loss during credit period) and defau...

We study two kinds of buy-it-now options, temporary and permanent, under a theoretical model of Stackelberg game. In this two-stage game, the bidders, as the followers, use a two-threshold strategy to determine whether to bid or directly buy the item at the posted price, given an auction configuration featured by the seller in the first stage and other common knowledge. Under the uniform distri...

Using farm level data we evaluate the input use and environmental effects of revenue insurance. A priori, the moral hazard effect on input use is indeterminate. This paper empirically assesses the input use impact of the increasingly popular, and federally subsidized, risk management instrument of revenue insurance and the extent to which its effects on input use may differ from those of the ol...

abstract efficiency concept has a long history in the sciences and its measurement and analysis is a vital importance for firms to achieve the best performance. hence, the aim of this paper is efficiency evaluation of mahan air compared to iata member airlines in middle east and africa. for this purpose, the indicators include available ton kilometer, revenue ton kilometer, revenue passenger ki...

Considering the probability of the logistics business successfully completed is influenced by the effort level of 4PL and 3PL, it will cause bilateral moral risk in the case that both sides of the factors of production cannot be checked. Using the principal-agent theory, the paper discusses both sides contracts in the centralized decision and distributed decision, founding that short-term contr...

The United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) conducts weekly surveillance of slaughter condemnation rates to provide early warning for emerging diseases and to monitor health trends in swine. Swine deaths in-transit are an animal welfare concern and represent lost revenue for the swine industry. This retrospective observational study used...

This study proposes new methods to formulate customers' risk-adjusted revenue (RAR) metrics applied the financial industry. Using a customer dataset provided by loan company, we compute RAR using benchmark approaches presented in literature and formulas that combine Customer Portfolio Theory Multiple Sources of Revenues approaches. We validate efficiency originality our formulations implementin...

We study the effect of entry and re-entry option in the pay-to-bid auctions in which risk-loving bidders pay a constant fee each time they bid for an object whose monetary value is common knowledge among the bidders, and bidding fees are the only source of benefit for the seller. We show that for the proposed model there exists a unique Symmetric Subgame Perfect Equilibrium (SSPE). The characte...