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20 August 2016, Volume 24 Issue 8 Previous Issue    Next Issue

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Study on Structure Efficiency of Chinese Commercial banking: Basing on Complex Network DEA model HAN Song, SU Xiong 2016, 24 (8):  1-9.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.001 Abstract ( 1457 )   PDF (1932KB) ( 1766 )   Save Traditional DEA applied in analysis of productivity are usually one-stage or basic two-stage models, and these over-simplified settings make numerical calculation and mathematical speculation easy to be solved. However, weakness of these models are also obvious that a complex structure of DMU can not be depicted. In this paper, DEA models with complex networks are developed, which depicts the operating structure of Chinese commercial banks, to evaluate the structural efficiency of these banks. By taking into consideration of not only a basic two-stage but a cross connection structure, knowledge of a DEA structure is deepened. The key feature depicted in this paper is that fixed assets and overheads of banks are not only used in liability business of commercial banks but also in OBS (off-balance-sheet) activities and assets operation. Along with the complication is the increasing difficulty of modeling and calculation.An improved mathematical programming problem is introduced to depict the complex network, then the model is simplified by deduction, and the problem is solved by numerical simulation. Under two types of assumptions on inputs disposability, one of which is that all of the decision making units have a same allocation ratio of inputs to two stages and the other is that the decision making units make the allocation choices respectively since they are separate entities, two DEA models with complex networks are developed. The first assumption makes a linear model, and the second makes a nonlinear one. Instead of 16 listed banks in A-share markets, data in 2008-2011 of 85 Chinese commercial banks from Bankscope is used, banks in China are divided into four categories, which are state-owned bank, joint-stock banks, urban commercial banks and foreign banks. Then empirical analysis is conducted on structural efficiency of these banks. Based on the calculation, it is found out that in terms of structural efficiency, state-owned banks are most efficient among these four categories, and urban commercial banks are most inefficient. This result contradicts most former literature, whose efficiency calculations ussally show that state-owned banks are most inefficent. This contradiction is attributed to that intermediary business and investment activities of banks are taken into consideration. A general method is provided to study on complex DMU structure, which extends the application of DEA models. Also the empirical results of this paper provides a different view of the operation of commercial banks. References | Related Articles | Metrics

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Relational Contract between Small and Medium-sized Energy Service Companies and Banks under Double Moral Hazard HUANG Zhi-ye, LI Gui-jun, WANG Tao 2016, 24 (8):  10-17.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.002 Abstract ( 1602 )   PDF (948KB) ( 1113 )   Save Nowadays, energy service based on energy performance contracting (EPC) is developing fast as an emerging industry, which has made considerable benefits from energy conservation and reflected the huge market demand and development potential. However, most of China's energy service companies (ESCO) are small and medium-sized self-financing companies so that it is difficult for them to obtain bank loans due to lack of guarantee and credit history, and a long project cycle. To deal with this problem, from the view of relational contracts, the long-term relationship between small and medium-sized ESCOs and banks is examined in this paper. The incentive mechanism is designed to solve double moral hazard problem by sharing the potential gains of loan demand compensation. Relational contract programming model is established to determine the optimal level of participation and effort in cooperation between ESCOs and banks. Then, the incentive effect of the discount rate is further analyzed. The model analysis shows that "Self-enforcing" restraint is the key to the implementation of relational contract. With the discount rate increasing, the optimal level of participation and effort in cooperation between ESCOs and banks can be achieved by the increasing incentive effect of the relational contract. Moreover, both bank's earnings and system revenue under the relational contract are always not less than that under the formal contract. The conclusions demonstrate the feasibility of establishing long-term relational contract between banks and small and medium-sized ESCOs. The relational contract is suitable for small and medium-sized ESCOs and banks to establish long-term strategic partnership and achieve "win-win" situation in the long run. References | Related Articles | Metrics

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Study on E-commerce Profitability Determinant Under Dynamic Competitive Market Environment YANG Zhuo-fan, SHI Yong 2016, 24 (8):  18-27.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.003 Abstract ( 1783 )   PDF (1366KB) ( 1353 )   Save A major current focus in e-commerce study is to explore why there are high inputs but low profits in e-commerce. Focusing on the excessive effect of inputs on outputs, market competition rate and mobile e-commerce development, input congestion amount is firstly calculated using data envelopment analysis models, and then e-commerce firm profitability determinants are explored by constructing the panel data regression model. Thirty five pure e-commerce websites from the stock markets of Shanghai, Shenzhen, Hong Kong and NASDAQ are considered, all of which utilize at least one of the two e-business models, namely business-to-business (B2B) and business-to-customer (B2C). The results of DEA models identify that e-commerce suffers from congestion, and the regression shows that asset input congestion has a negative effect on e-commerce firm profitability while market concentration rate and the development of mobile e-commerce can strengthen e-commerce firm profitability. These findings indicate that it is input congestion that leads to low profits. It also enlightens decision makers to strengthen their profitability by eliminating congestion resources and adding new marketing channels such as mobile e-commerce. References | Related Articles | Metrics

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The Study of Innovation Strategy in the Stage of Active Carbon Reduction Based on Stage Division CHENG Fa-xin, SHAO Shi-ling 2016, 24 (8):  28-36.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.004 Abstract ( 1619 )   PDF (1666KB) ( 1277 )   Save The environmental policy in passive and active phases is different,and some enterprises have started product innovation strategy in the stage of active carbon reduction stage.On the basis of theory of stage division, an exploratory study on innovation strategies in the stage of active carbon reduction is conducted carbon emissions trading and government subsidies constructed are introduced, a Cost-benefit model of enterprises and industry active carbon reduction is, whether there is an optimal strategy is determined by matri positive definiteness, and wether this strategy can realize Pareto optimality and how.The result shows an optimal carbon reduction strategy, enterprises investment in which increases with the increase of corresponding emission reduction effect coefficient, reduction benefit coefficient, and government extra subsidy coefficient on the carbon emissions trading; realization of industrial Pareto optimality needs the subsidy, and the extra subsidy coefficient is an industrial default value, which declines with the increase of enterprises emission reduction effect coefficient and innovation revenue coefficient.Values are assigned for the parameters in the model based on field research and related literature data,and cement industry is taken as an example to validate the model, sensitivity analysis of key parameters is also completed. Example analysis confirms the benefits of innovation and the subsidies are the key factors for enterprises initiative carbon reduction. The results will provide a basis for enterprises selection of optimal initiative carbon reduction strategy and reference for government's fiscal policy. Furthermore, it indicates that government should ensure efficiency of carbon emissions at the same level in the process of Pareto improvement of enterprises carbon-reduction and the enterprises with strong innovation ability should correspond larger emission reduction to achieve Pareto optimality of carbon reduction. References | Related Articles | Metrics

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Impact of the Status Utility and the Cities' Traffic Conditions to the Marketing Strategy of the Firms of Private Cars SHAO Xiao-shuang, TAN De-qing 2016, 24 (8):  37-44.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.005 Abstract ( 1394 )   PDF (1331KB) ( 1064 )   Save As a status symbol, the private car can reflect the social status of the consumers in the consumption process. In the process of consumption of private cars, attention has been paid on the social status reflected of private cars in a certain extent. To a certain extent, this kind of conspicuous consumption explains that why China's car sales are increasing year by year despite traffic jams' inconvenience. From the perspective of the status utility of private cars and the impact of the cities' traffic conditions to the use of private cars, a differential game model of two firms offering quality differentiated private cars is built to analyze the impact of the status utility and the cities' traffic conditions to the marketing strategy of the firms of private cars. The results show that: both the firms' optimal dynamic prices and the optimal profits increase with the increase of the status utility, but decrease with the intensity of the cities' traffic congestion; and the impact is higher to the firm which its' private cars with a higher quality than to the firm which its' private cars with a lower quality; as the difference of quality level between the two firms increases, the difference of the impact increases; the change of each firm's optimal dynamic price with time is determined by the change relation of the status utility and the cities' traffic conditions. To make the right marketing strategy for the car manufacturers, as well as local government departments to formulate reasonable traffic control measures, the conclusions of this paper have certain significance. References | Related Articles | Metrics

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Optimism in Security Analysts' Recommendations under Institutional Investors' Holding Pressure ZHU Wei-dong, WANG Li-na, SHEN Jie 2016, 24 (8):  45-52.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.006 Abstract ( 1658 )   PDF (979KB) ( 1029 )   Save Optimism existing in stock recommendation is a prominent problem in present global security analyst industry. Based on the fraud triangle theory, the causes are analyzed theoretically from the viewpoints of pressure, chance and rationalized explanation in this research, and then empirical tests based on the 21054 collected recommendation samples issued by Chinese security analysts during 2010 to 2012 are carried out. Results show that the higher of institutional investors holding, the more likely analysts will release optimistic recommendations, and moreover, the higher probability of recommended stock reaching or exceeding their forecast. This research facilitates investors' scientific inspection to analysts' recommendations and provides a reference to regulatory authorities. References | Related Articles | Metrics

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Energy Efficiency Calculation and Analysis on Potentials of Energy Conservation and Emissions Reduction under Haze Environment-Based on the NH-DEA Model of Multiple Undesirable Output MENG Qing-chun, HUANG Wei-dong, RONG Xiao-xia 2016, 24 (8):  53-61.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.007 Abstract ( 1816 )   PDF (903KB) ( 1188 )   Save Considering the current energy efficiency calculation hasn't included the grey haze as the environmental constraint, a Nonseparable Hybrid DEA Model is constructed based on the non-parametric frontier. Taking SO2, NOx, CO2, smoke(dust) who cause haze as undesirable output of energy consumption, the provincial energy efficiency in 2010-2013 under haze environment constraint is measured more scientific. The result suggests that: difference of provincial energy in China is significant; energy efficiency in the eastern China is the highest, followed by central China and western China is the worst; the overall energy efficiency in China is 0.63. Then the influence factors of energy efficiency are analyzed through Tobit model and it is found that energy endowment, industrial structure, the government influence have significant negative effect on energy efficiency, and technological progress has significantly positive effect on energy efficiency. The influence degrees of various factors varies on eastern, central, western China are different. From the perspective of energy conservation and emissions reduction potential, potential of energy saving and pollutants caused haze reduction are both huge. Research results will help different provinces to establish energy saving and gray haze management planning. References | Related Articles | Metrics

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Analysis on the Formation and Stability of Cooperation Management Alliance of Air Pollution Control Among Local Governments: Based on the Evolutionary Game GAO Ming, GUO Shi-hong, XIA Ling-ling 2016, 24 (8):  62-70.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.008 Abstract ( 1760 )   PDF (1304KB) ( 1332 )   Save At present, the air pollution control mode of local government includes territory management and cooperation management, and the experts have reached a consensus on the cooperation management of air pollution control. Based on the evolutionary game, the behavior evolutionary path and stability strategy of local governments in the process of air pollution control are analyzed, and then the factors of the formation and stability of cooperation management alliance among local governments are discussed.By compared the four situations of evolutionary game, including territory management without the restriction of central government, territory management with the restriction, cooperation management without the restriction, and cooperation management with the restriction, the result shows that territory management that might cause the free-rider problem against the air pollution control whether it is under the central government control or not,and the policy from central government would be dysfunctional in such a situation. On the other hand, local governments' behavior evolutionary path in the situations of cooperation management without the restriction of central government and the one with restriction are similar, the stability strategy is no governance or cooperation management. But with the restriction, local governments could form the cooperation management alliance efficiently and effectively. So in order to build the cooperation management alliance of air pollution control among local governments and make it stable, the central government should add restrictions to local governments in the process of air pollution control, and local governments need to improve the cooperation benefit and decrease the cooperation cost. References | Related Articles | Metrics

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Incentive Contract Design and Optimization Of Government Subsidies Policy in the Closed-loop Supply Chain ZHANG Han-jiang, YU Hua-ying, LI Cong-ying 2016, 24 (8):  71-78.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.009 Abstract ( 1573 )   PDF (1499KB) ( 1688 )   Save Recycling and remanufacturing of wasted electrical and electronic products has positive external economic characteristics, often leading to insufficient motivation for enterprises. For the purpose of saving resources and protecting the environment, government provides subsidies to re-manufacturers to encourage them to recycle and remanufacture. New products and remanufactured products generally have certain differences in perceived value, and may further affect the manufacturing cost advantages play. The government is described as a decision-maker and a Stackelberg Game, in which the government acted as a leader, manufacturer and re-manufacturer are followers, recycler is the re-manufacturer's follower, is established. An optimal incentive contract between the re-manufacturer and recycler is nested based on the Principal-agent analysis. The optimal decision of the government and manufacturers, re-manufacturers is obtained. Optimal government subsidies will effectively improve the competitive advantage of remanufactured products and promot the development of remanufacturing industry, while effectively reduce the cost of burying the waste products. The optimal incentive mechanism design can effectively improve the efficiency of recycling and remanufacturing of waste. It is found that the degree of substitution of new products and remanufactured products indirectly influence government decisions and the government should adjust the subsidy according to the proportion of remanufacturing. The impact of remanufactured comparative cost advantage on closed-loop supply chain decisions is gotten by numerical analysis. The results can be used as reference for government policy formulation and company decision making. References | Related Articles | Metrics

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Adaptive Dynamic Pricing Strategy of Two-sided Platform Based On User Scale DUAN Wen-Qi, KE Ling-Fen 2016, 24 (8):  79-87.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.010 Abstract ( 1597 )   PDF (2623KB) ( 1657 )   Save In managerial practice, platform companies often employ price subsiding strategy to attract users boarding on platforms, which can overcome utility deficiency problem caused by too small user base. Evidently, the subsiding strategy implicitly contains the rationality of price changing with user base. Literatures in two-sided market emphasized the essential characteristics of user utility increasing with user scale dynamically, but rare literatures had examined how to improve company profit by exploiting that characteristic. Considering that, the adaptive dynamic pricing strategy based on user scale is put forward, and the effect of pricing strategy is studied by numerical calculation. Firstly, platform pricing is assumed to be the function of user scale, and a dynamic competition model coupled user scale and platform price is developed to analyze the competitive dynamics of two-sided market. The model assumes that there are two competitive platforms existed in the market, i.e., the new entry platform E and the old platform I, and the quality of the former platform is superior to the latter one,conversely the initial user scale is. The two platforms compete directly for the same user community. Secondly, based on the model, the dynamic pricing strategy is analyzed from three aspects: (1) solving the optimized dynamic price and pricing coefficient, and uncover that the optimized solution depends on specific parameter values based on the optimized dynamic pricing; (2) combining every possible couples of parameters from three of relative quality advantage, cross network effects, and user prospective coefficient, and comparing the optimized solutions of dynamic pricing strategy and static pricing strategy by varying different parameter combination value so as to demonstrate the reliability of the relative advantage of dynamic pricing strategy; (3) examining the influences of the main competition parameters (relative quality advantage, cross network effects, user prospective coefficient, and initial user scale) on dynamic pricing, and comparing the effects and influences of different parameters on dynamic and static pricing, further demonstrating the superiority of dynamic pricing than static pricing. Research results show that: (1) dynamic pricing is significantly better than static pricing strategy, which will not be affected after changing the model parameter; (2) service quality improvement or changes of benchmark users do not increase the comparative advantage of dynamic pricing strategy, but stronger cross network effects or more prospective users are benefit to the comparative advantage of dynamic pricing strategy. The results of this study can help managers develop better dynamic pricing strategy. References | Related Articles | Metrics

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Coordination of Order Timing in Supply Chain: A Risk Aversion Perspective XIONG Heng-qing, HUANG Yong, WAN Jie 2016, 24 (8):  88-97.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.011 Abstract ( 1256 )   PDF (1066KB) ( 994 )   Save In terms of order timing of short life cycle products, a retailer usually prefers to delayed order.But a manufacturer generally encourages the retailer to order in advance.So there is a conflict in the order timing issue between the manufacturer and the retailer.Coordinating the two sides can improve supply chain's overall performance.The existing papers about order timing of supply chain usually follow the risk-neutral hypothesis. And there are very few papers that conduct research in the case where the member of supply chain is risk-averse. Based on the newsboy model, in a two-echelon supply chain which is comprised of a risk-averse manufacturer and a risk-neutral retailer, the influence of the manufacturer's risk aversion on the order timing of the supply chain is discussed. It is found that in most case the supply chain may run in a mode which is not preferred by the manufacturer. Then a Buyback contract is designed to provide Pareto improvements. And the situation under which the Buyback contract can work is analyzed. Numerical analysis shows that, the setting of the wholesale price and the buyback price should consider both sides of the interests between the retailer and the manufacturer. In this way, the conditions of Pareto improvement could be meet. In addition, the smaller manufacturer's target profit is, the more easily Buyback contract could provide Pareto improvement. When the target profit gets larger to a certain degree, Buyback contract is no longer valid.The research gets some innovative achievements as follows: under the mode of flexible order, comparing with the risk-neutral situation, the optimal manufacturer's production is not independent of retailer's pre-ordering quantity, but is creasing in it; the retailer's pre-ordering quantity is larger than that of the general case owing to manufacturer's risk aversion. The research results have certain value to enrich literature of supply chain order timing. References | Related Articles | Metrics

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Empirical Research on Impact of Transaction Costs upon Consumer's Perceived Value under Mobile E-Commerce WANG Chong, WU Jia-bao, WANG Yan-qing 2016, 24 (8):  98-106.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.012 Abstract ( 1584 )   PDF (1104KB) ( 1377 )   Save After analyzing the composing of transaction cost under mobile e-commerce, the hypotheses of impact of searching cost, evaluating cost, paying cost and risk cost on perceived value are proposed and the hypothetic model on the impact of transaction cost upon consumer's perceived value under mobile e-commerce is established, and SEM is used to make fitting check on the hypothetic model by means of sample data. The research results indicate that searching cost, evaluating cost, paying cost and risk cost all are the main costs which consumer bears to buy products under mobile e-commerce, which all are negatively correlated with consumer's perceived value. Among them, risk cost is the most negatively correlated with consumer's perceived value, and searching cost does not significantly make an impact on consumer's perceived value. In addition, consumer's risking attitude is positively correlated with risk cost and evaluating cost, which indirectly makes an impact on consumer's perceived value by influencing risk cost and evaluating cos. Finally, according to the research results, suggestions are made to promote the development of mobile e-commerce in China. References | Related Articles | Metrics

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The Research on Recycling Product Pricing and Subsidy Policy of E-Waste in Reverse Supply Chain WANG Xi-gang 2016, 24 (8):  107-115.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.013 Abstract ( 1512 )   PDF (2008KB) ( 1712 )   Save As the discarded electronic products emerging and social environmental protection consciousness enhancement, the recycling and disposal of discarded electronics becomes one of the major problems. In the existing literature, scholars pay more attention to the influence of prices or tax policy on recyclers or processing business operation efficiency, but research on the key problem of motivation in reverse supply chain, that how to determine the price of reverse supply chain and subsidies, is relatively rare. In this paper, a Stackelberg model is presented to determine prices and socially optimal subsidy fees in decentralized reverse supply chains where each entity independently acts according to its own interests based on the perspective of social welfare maximization. Social welfare model can test incentives of prices and subsidies in the dispersion management system in the reverse supply chain. Through the comparison of social welfare model and fund balance model, and comparing cases of numerical calculation, in which data collected from market of smart phone in Taobao website. When considering the cost of the appropriate decision mechanism, the research results can provide policy makers with a social welfare perspective. The results show that: MIS and recyclers behave at the equilibrium status by choosing optimal selling quantity in the market and optimal reward money for customers bringing E-Waste products to recyclers. The impact of choke-off price, sensitivity of price with respect to the quantity demanded, base collected quantity of zero reward money, and sensitivity of the collected quantity with respect to the reward money on the value in the social welfare model is better than fund balance model. In addition, our analysis results show that the government is encouraging the MIS to improve their production processes to reduce pollution costs, or selling products containing fewer pollutants, so no-recycling of electronic waste products would not lead to high cost of pollution, it also shows that cost of reducing pollution is lower than that of repairing. References | Related Articles | Metrics

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Modelling of Simultaneous Decision Making of Production Control and Maintenance Schedule in the Context of Failure Downtime ZHENG Rui, LV Wen-yuan 2016, 24 (8):  116-122.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.014 Abstract ( 1372 )   PDF (1042KB) ( 1066 )   Save The objective is to make simultaneous decision of the production control and maintenance schedule decreasing the product cost. Firstly, the production system is introduced, its production process is given, and all kinds of cost are listed. Secondly, a model is stabled considering the process deterioration rate, the failure rate of production system and failure downtime, simultaneously making decision of the production process control, production planning and maintenance schedule. The established model is used to determine the inspection number in a production run, the production planning including the determination of economic manufacturing quantity (EMQ), the optimal number of production runs, and the interval of preventive maintenance (PM), and further to realize the objective of minimization of the total cost per unit time. Thirdly, a case study is given, which illustrates those factors, such as the deterioration rate of process, failure rate and downtime occurred by failure, affect the decision of production planning, the inspection policy of process and the maintenance schedule. In a word, this established model not only theoretically guides how to simultaneously decision of the production process control, production planning and maintenance schedule, but also can guide enterprises to formulate the optimal production planning and maintenance schedule and further to improve product quality and to decrease production cost. References | Related Articles | Metrics

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RobustMean-Risk Model for Retailer Inventory Problem Based on Likelihood Estimation QIU Ruo-zhen, YUAN Hong-tao, HUANG Xiao-yuan 2016, 24 (8):  123-131.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.015 Abstract ( 1408 )   PDF (1398KB) ( 1513 )   Save The problem of inventory optimization for a risk-averse retailer with uncertain discrete demand distribution is studied in this paper. A mean-risk inventory model which can balance the retailer's expected profit and the conditional value-at-risk (CVaR) of the profit by a pessimistic coefficient is developed. To overcome the difficulty of obtaining an inventory policy caused by the demand distribution uncertainty, two robust counterparts based on max-min robust criterion are proposed. The former which maximizes the trade-off between the worst-case expected profit and the worst-case CVaR is pareto efficient but more conservative; while the latter optimizes the worst-case trade-off between the expected profit and the CVaR, and then is non-pareto efficient but less conservative. For uncertain demand distribution, only some historical demand data are assumed to be known. Using statistical inference theory, an uncertain set to which the unknown demand probability belongs is constructed with a certain confidence level based upon the likelihood estimation. Such an uncertain set is then integrated into the above two robust counterparts and regarded as a constraint. By Lagrange dual theory, the two robust counterparts with an uncertain set constraint are transformed into two tractable concave optimization problems which can be solved efficiently. Moreover, a proof is presented to show the equivalence of the transformed tractable models with original ones. At last, some case-oriented numerical examples are executed to analyze the impact of the different system parameters and the demand sample size on the optimal inventory strategy and the operational performance of the retailer. A Pareto frontier between retailer's expectation profit and its conational value-at-risk is also proposed. The results show that the uncertainty in demand distribution will inevitably lead to the inventory performance loss, however, the loss value is relatively small, which indicates the retailer's inventory strategy based on the likelihood estimation is robust, and can effectively restrain the impact of the uncertain demand distribution on the retailer inventory performance. Besides, the more the historical demand samples, the closer the retailer's operational performance under robust inventory strategy to its optimal level. Furthermore, it can be found that the optimal inventory strategies for the above two robust counterpart models are qualitatively equal, although they are different in conservation. References | Related Articles | Metrics

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A New Multiple Attribute Decision Making Method Based on Dominance Relation and Ranking Stability DING Tao, LIANG Liang 2016, 24 (8):  132-138.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.016 Abstract ( 1553 )   PDF (1198KB) ( 1399 )   Save In multiple attribute decision analysis (MADA), reaching a consensus about exact weights may be difficult due to the complexity and uncertainty of actual problems. However, a number of existing weight computing methods are inadequate since they obtain different sets of exact weight values in terms of different kinds of preference or regulations. That is, it will result in some problems in the optimal alternative choice, ranking robustness or risk analysis. To address these problems, an approach about dominance relation and ranking stability analysis of alternatives is developed based on all feasible weights instead of determining a set of certain weights. Specifically, it is determined. (i) pairwise dominance matrix denoted by P=(pij)m×m, which shows how much degree that other alternatives dominated by a given alternative in pairwise comparisons; (ii) ranking interval denoted by RI(Xk)=[lkmin,lkmax], which indicates the best and worst rankings that an alternative can obtain relative to others; (iii) rank-order probability denoted by p(Υk), which reveals the stability of a given rank-order over all feasible weights. Finally, an example in Wu and Liang (2012) and a case study of ports evaluation are employed to illustrate the application of the proposed approach. From the result of Wu and Liang's example, it can be seen that the rank-order obtained by our approach is not the same as the literature. This is obviously caused by different treatment with uncertain weights. From the result of our case study, a final rank-order of the assessed ports is obtained: A5 > A1 > A2 > A3 > A4. References | Related Articles | Metrics

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The Recognition and Integration Method to Composite Structure Preference of Multi-attribute Group Decision Making XU Cheng-lei, DUAN Wan-chun, SUN Yong-he 2016, 24 (8):  139-145.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.017 Abstract ( 1435 )   PDF (880KB) ( 1281 )   Save In order to efficiently cope with a series of defects of the consistency check method of group decision, the complexity of consistency judgement of group decision preference is analyzed and hypothetic scenarios of the group decision preferential information representation are described according to the characteristics of diversified decision-making orientation, different plan attributes and complex preferential structures exhibited by group decision-making scenarios. Based on that, an axiomatic description is conducted of conventional multi-attribute group decision issues. In view of the overall decision-making information judgment strategies from the perspective of plans and attributes, the overall judgment and consistency test methods of preference, recognition methods of group decision preference types, solutions to judge the deviation within and between preferences, overall relative consistence test methods of preference and multi-round inconsistence decision information adjustment strategies are provided. Results of the case study suggest that all the above methods and strategies are valid and feasible, and can provide references for the consistence test, adjustment and integration of the composite structure preference under the scenarios of diversified decision orientation and significant alternative differences. References | Related Articles | Metrics

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Method for Aggregating Two-tuple Linguistic Information Based on Archimedean S-norm and Their Application to Group Decision Making WANG Zhong-xing, CHEN Jing, LAN Ji-bin 2016, 24 (8):  146-153.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.018 Abstract ( 1448 )   PDF (977KB) ( 916 )   Save In the actual process of multi-attribute decision making (MADM), due to the complexity of objects and the inherent vagueness of human mind, the decision information is usually suitable to be expressed in natural language rather than a real number. However, natural languages always involve uncertainty and ambiguity, so it is difficult to avoid the loss of information in the process of decision making. The more the information loss, the less accurate results of decision are. In order to improve the accuracy of the decision making, it is necessary to correctly deal with linguistic decision information. And triangular norms, t-norms and s-norms and linguistic two-tuple are among the most effective ways to process linguistic information, and in this paper, based on Archimedean s-norm and linguistic two-tuple, some new operational laws of linguistic information are defined by using a continuous and strictly monotone increasing function and its inverse function. The prominent feature of such operations is that the operations are closed. Some main properties of these operations, such as commutativity, associativity and distribution law, are investigated. Moreover, considering the influence of expert weight on decision making, three new aggregation operators, including two-tuple linguistic extended Archimedean s-norm aggregation (TASTA) operator, two-tuple linguistic extended Archimedean s-norm weight averaging (TASTWA) operator and two-tuple linguistic vector extended Archimedean s-norm weight averaging (V-TASTWA) operator, are developed in this paper. All these aggregation operators use the consistency of group judgment to objectively adjust the expert weight and then effectively improve the accuracy of decision making. Later, a method for multi-attribute group decision making problems with two-tuple linguistic information is proposed based on TASTWA operator and V-TASTWA operator, and a numerical example is given to show its effectiveness and reasonability by comparison with other methods. The method not only overcomes the deficiency that the traditional operational laws of two-tuple linguistic information are not closed, but also makes full use of decision information to obtain the weight value and improves the accuracy and credibility of the results. References | Related Articles | Metrics

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Game Model and Optimization Based on Resource Requirements of Multiple Crisis Locations YANG Ji-jun, SHE Lian 2016, 24 (8):  154-163.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.019 Abstract ( 1539 )   PDF (1450KB) ( 1672 )   Save There would always be a lot of crisis locations when an unconventional emergency breaks out. The requirements of each crisis location are usually different, which is difficult to meet the requirements of multiple crisis locations for a single resource centre. So it is a practical problem to be solved urgently by decision makers how to fairly and reasonably schedule emergency resources for multiple crisis locations. According to the demand information, the dynamic process of emergency resources scheduling for multiple crisis locations are described, in which the emergency resources scheduling process are divided into several stages according to the change of demand information for multiple crisis locations. On this basis, a theoretical model of multi-stage emergency resources scheduling process is designed for multiple crisis locations. After a series of assumptions are made, the game model based on resource requirements of multiple crisis locations is set up by using game theory according to the degree of disaster, and the improved ant colony optimization (ACO) is introduced to seek out the solution in order to schedule emergency resources for multiple crisis locations according to the minimum virtual cost. Simulation tests and numerical analyses are given to demonstrate the feasibility and availability of the model. The model and algorithm can also provide a new solution and approach for the distribution of resources in business logistics. References | Related Articles | Metrics

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A Research on Multi-attribute Bidding Game of Government Projects when Tenderee's Preference is Hidden HE Jian-hong, LV Wei 2016, 24 (8):  164-171.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.020 Abstract ( 1430 )   PDF (1229KB) ( 1077 )   Save In China, the Law of Bidding has come into operation for about fifteen years, which helped to increase the efficiency of the government construction projects. The law not only played an important role in improving the quality and reducing the cost of the government construction projects, but also ensured that the projects were completed on schedule. However, there are still many problems left to be resolved. For instance, the tenderee may set some unnecessary conditions in bidding for government projects so that the specified tenderer can win the bidding easily. Even on some occasions, the tenderer who bought off agents and judges final won the bidding. So the bidding for government construction projects has been criticized for years. Some more efficient and fairer bidding institutions have to be found to prevent public interest of government projects.According to Harsanyi's method of introduction a suppositional player, the incomplete Game of multi-attribute bidding of government projects is transformed to a complete but imperfect information game in which tenderee's preference is hidden, and then perfect Bayesian Nash equilibrium and the bidding strategy of the tender and tenderee are given. The results show that there is "U" shaped relationship between the tenderee's remaining utility or benefit and the tender's commitment to quality and duration. The same relation exists between the tenderer's benefit and its commitment to quality and duration. This means that (1) if the tender will be able to take appropriate measures to keep their own preference hided, and the tenderer can ensure the commitment quality and duration to reach a certain level, the tenderer will make the greatest efforts to improve their quality and the duration, in order to increase the probability of winning; (2) if the tenderer's quality and duration of construction projects meet the certain requirement (ie. the lowest point of the "U" curve), its optimal strategy will ensure the tenderee acquire the best offer and the largest remaining utility; (3) in this case, the tenderers will form a prospective that the tenderer would set a high level requirement of quality and duration, and then their motivations to rent-seeking and complot will extremely decline.In addition, it is also found that when thetenderee hide its preference for quality and duration, the tender will do its best to improve their offer as possible, which will improve the efficiency of government projects. So government needs to develop s strict confidentiality procedures and rules to prevent the behaviors of the tenderer, tenderee and agent. References | Related Articles | Metrics

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A Class of New Weakening Buffer Operators Whose Adjustable Intensity Can be Changed and Their Applications LIU Jie-fang, LIU Si-feng, FANG Zhi-geng 2016, 24 (8):  172-176.  doi: 10.16381/j.cnki.issn1003-207x.2016.08.021 Abstract ( 1437 )   PDF (913KB) ( 1228 )   Save Under the axiomatic system of buffer operator in grey system,a class of new weakening buffer operators whose adjustable intensity can be changed are constructed based on the ‘new information priority principle’ of grey system.The new weakening buffer operators are as following:x(k)d1=x(k)(x(n)/x(k))α,0 < α < 1,k=1,2,…,n. The new weakening buffer operators are very concise in the form, and are very convenient in the practical application.Then their characters are studied.In view of different modeling background,data sequences with different strengthening effect can be generated by adjusting the parameters of the buffer operator.Finally, the buffer operator that was put forward in this paper was used to the total energy consumption in Henan province in 2003-2009.The calculation results show that these new weakening buffer operators can effectively improve the forecasting accuracy of GM (1,1) model.This can solve the problem that the quantitative prediction results do not tally with the qualitative analysis. References | Related Articles | Metrics