To mitigate selection triggered by capitation payments, risk-adjustment models bring capitation payments closer on average to individuals' expected expenditure. We examine the maximum potential profit that plans could hypothetically gain by using their own private information to select low-cost enrollees when payments are made using four commonly used risk adjustment models. Simulations using a...

Emergence of green supply chain management could be attributed to the rising public awareness of environmental problems. Consumers say they increasingly prefer to purchase products that are produced with a minimum of pollution and with minimal environmental impact. Therefore, companies that successfully adopt a green policy can generate profits, reduce environmental impact, and provide positive...

An unconstrained nonlinear binary optimization problem of selecting a maximum expected value subset of items is considered. Each item is associated with a profit and probability. Each of the items succeeds or fails independently with the given probabilities, and the profit is obtained in the event that all selected items succeed. The objective is to select a subset that maximizes the total valu...

This paper studies how implicit collusion may take place through simple non-exclusive contracting under adverse selection when multiple buyers (e.g., entrepreneurs with risky projects) non-exclusively contract with multiple firms (e.g., banks). It shows that any price schedule can be supported as equilibrium terms of trade in the market if each firm’s expected profit is no less than its reserva...

We want to find the optimal strategy for displaying advertisements e.g. banners, videos, in given locations at given times under some realistic dynamic constraints. Our primary goal is to maximize the expected revenue in a given period of time, i.e. the total profit produced by the impressions, which depends on profit-generating events such as the impressions themselves, the ensuing clicks and ...

& This article proposes optimal bidding strategies for a generation company (GenCo) considering risk of profit variation by self-organizing hierarchical particle swarm optimization with time-varying acceleration coefficients (SPSO-TVAC). Based on a trade-off technique, the expected profit maximization and risk minimization are achieved. Nonconvex operating cost functions of thermal generation u...

As compared to the traditional advertising, the word-of-mouth (WOM) communications have striking advantages such as significantly lower cost and rapid delivery; this is especially the case with the popularity of online social networks. This paper addresses the issue of maximizing the overall profit of a WOM marketing campaign. A marketing process with both positive and negative WOM is modeled a...

This article addresses the challenge of determining optimal product family architectures with customer preference data. The proposed model, predictive data-driven product family design (PDPFD), expands clusteringbased approaches to incorporate a market-driven approach. The market-driven approach provides a profit model in the near future to determine the optimal position and number of product a...

The determination of the target for a manufacturing process involves a complex and fiscally vital decision. This study examines a situation where a product is classified into several grades with respect to specifications of markets. It is reasonably assumed that each grade gives its price and manufacturers cannot produce every item in good grade due to uncontrollable variation of product perfor...

In this paper, the effect of renewable energy resources (RERs), demand response (DR) programs and electric vehicles (EVs) is evaluated on the optimal operation of a smart distribution company (SDISCO) in the form of a new bi-level model. According to the existence of private electric vehicle parking lots (PLs) in the network, the aim of both levels is to maximize the profits of SDISCO and the P...