In many markets, such as education, health care and public utilities, firms are often profit-constrained either due to regulation or because they have non-profit status. At the same time such firms might have altruistic concerns towards consumers. In this paper we study semi-altruistic firms’ incentives to invest in quality and cost-reducing effort when facing constraints on the distribution of...

We analyze the stability of efficiency rankings of German universal banks between 1993 and 2004. First, we estimate traditional efficiency scores with stochastic cost and alternative profit frontier analysis. Then, we explicitly allow for different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal demand system, we estimate inp...

at many circumstances, in heat exchange processes several exchangers were used with different cost laws due to their pressure ratings, materials of construction and exchange3r types. in such circumstances traditional methods of pinch technology can not be led to minimum total annual cost may cause some other disadvantages like more complexity or higher maintenance. in this research work a new a...

Abstract Reverse pricing is a market mechanism under which a consumer’s bid for a product leads to a sale if the bid exceeds a hidden acceptance threshold the seller has set in advance. The seller faces two key decisions in designing such a mechanism: First, he must decide where in the process to collect the revenue—that is, whether to commit to a minimum markup above cost (and thus define the ...

We examine a H2 PEMFC power generation system composed of three subsystems: fuel reforming, fuel cell stack, and post combustion. The system was simulated and optimized with a fuel cell model integrated within the process flow sheet. We present a case study of the H2 production optimized w.r.t. the CH4 and H2O inlet flow rate and the temperature of steam methane reform reactor. Our objectives a...

In this research work, a wholesaler-retailer-customer supply chain model for a deteriorating item is considered, where the retailer's warehouse in the market place has a limited capacity. The retailer can rent an additional warehouse (rented warehouse) if needed, with a higher rent compared to the existing warehouse (own warehouse). The customers' demand of the item is linearly influenced by th...

This paper examines the economics of for-profit and not-for-profit hospitals through the prism of capital acquisitions. The exercise suggests that of two hospitals that are equally efficient in producing health care, the for-profit hospital would have to charge higher prices than the not-for-profit hospital would, to break even on capital acquisitions. The reasons for this divergence are (1) th...

We extend a heuristic method within the framework of “dynamic capacity apportionment procedure” (DCAP) to allocate an existing capacity among the classes with different profit contributions. In general, DCAP is applied when some capacity shortage exists and can not be enhanced in short - run. Our proposed approach is constructed for a make - to - order manufacturing system that produces a varie...