Discrete Dynamics in Nature and Society http://www.hindawi.com The latest articles from Hindawi Publishing Corporation © 2014 , Hindawi Publishing Corporation . All rights reserved. A Note on the Rate of Strong Convergence for Weighted Sums of Arrays of Rowwise Negatively Orthant Dependent Random Variables Wed, 20 Aug 2014 06:38:01 +0000 http://www.hindawi.com/journals/ddns/2014/368702/ Let be an array of rowwise negatively orthant dependent (NOD) random variables. The authors discuss the rate of strong convergence for weighted sums of arrays of rowwise NOD random variables and solve an open problem posed by Huang and Wang (2012). Qingxia Zhang and Dingcheng Wang Copyright © 2014 Qingxia Zhang and Dingcheng Wang. All rights reserved. Heterogeneous Fundamentalists in a Continuous Time Model with Delays Wed, 20 Aug 2014 00:00:00 +0000 http://www.hindawi.com/journals/ddns/2014/959514/ We develop a continuous time model with heterogeneous fundamentalists, imitators, and discrete time delays. We show that nonlinear dynamic phenomena, such as coexistence of attractors and local and global bifurcations, occur due to the existence of a time gap in the process of adjustment of market prices. Luca Gori, Luca Guerrini, and Mauro Sodini Copyright © 2014 Luca Gori et al. All rights reserved. Multiple-Decision Procedures for Testing the Homogeneity of Mean for Exponential Distributions Tue, 19 Aug 2014 09:04:27 +0000 http://www.hindawi.com/journals/ddns/2014/701074/ In multiple-decision procedures, a crucial objective is to determine the association between the probability of a correct decision (CD) and the sample size. A review of some methods is provided, including a subset selection formulation proposed by Huang and Panchapakesan, a multidecision procedure for testing the homogeneity of means by Huang and Lin, and a similar procedure for testing the homogeneity of variances by Lin and Huang. In this paper, we focus on the use of the Lin and Huang method for testing the null hypothesis of homogeneity of means for exponential distributions. We discuss the decision rule , evaluation of the critical value , and the infimum of for independent random samples from exponential distributions. In addition, we also observed that a lower bound for the probability of CD relative to the number of the common sample size is determined based on the desired probability of CD when the largest mean is sufficiently larger than the other means. We explain the results by using two examples. Han-Ching Chen, Her Pei Shan, and Nae-Sheng Wang Copyright © 2014 Han-Ching Chen et al. All rights reserved. Monotone Iterative Technique and Symmetric Positive Solutions to Fourth-Order Boundary Value Problem with Integral Boundary Conditions Mon, 18 Aug 2014 12:06:27 +0000 http://www.hindawi.com/journals/ddns/2014/583875/ The purpose of this paper is to investigate the existence of symmetric positive solutions for a class of fourth-order boundary value problem: , , , , where , . By using a monotone iterative technique, we prove that the above boundary value problem has symmetric positive solutions under certain conditions. In particular, these solutions are obtained via the iteration procedures. Huihui Pang and Chen Cai Copyright © 2014 Huihui Pang and Chen Cai. All rights reserved. Rumor-Propagation Model with Consideration of Refutation Mechanism in Homogeneous Social Networks Mon, 18 Aug 2014 08:55:55 +0000 http://www.hindawi.com/journals/ddns/2014/659273/ In recent years, increasing attention has been paid to how to effectively manage rumor propagation. Based on previous studies of rumor propagation and some strategies used by the authorities to refute rumors and manage rumor propagation, we develop a new rumor-propagation model with consideration of refutation mechanism. In this paper, we describe the dynamic process of rumor propagation by accounting for the refutation mechanism in homogeneous social networks. And then, we derive mean-field equations for rumor-propagation process. We then analyze the stability of the model with respect to changes in parameter values. Our results show that there exists a critical threshold that is inversely proportional to the average degree of the social networks and is positively correlated with the strength of the refutation mechanism. If the spreading rate is bigger than the critical threshold , rumors can be spread. Our numerical simulations in homogeneous networks demonstrate that increasing the ignorant’s refutation rate can reduce the peak value of spreaders density, which is better than increasing the spreader’s refutation rate . Therefore, based on the seriousness of the rumor propagation and the rumor-propagation rate, the authorities can choose effective strategies that increase the refutation rate so that they can reduce the maximum influence of the rumor. Laijun Zhao, Xiaoli Wang, Jiajia Wang, Xiaoyan Qiu, and Wanlin Xie Copyright © 2014 Laijun Zhao et al. All rights reserved. Positive Switched System Approach to Traffic Signal Control for Oversaturated Intersection Sun, 17 Aug 2014 11:04:44 +0000 http://www.hindawi.com/journals/ddns/2014/381567/ The online traffic signalization for intersection is addressed. A new model for intersection called positive switched system is presented. Then, based on the dissipativity analysis results for positive switched system, an online state-feedback control strategy for traffic signal in two-phase intersection section is proposed. A numerical example is provided to illustrate the effectiveness of our theoretical findings. Finally, in order to extend to more general cases, multiphase intersection is considered, and general dissipativity-based control is presented. Lin Du and Yun Zhang Copyright © 2014 Lin Du and Yun Zhang. All rights reserved. Existence of Positive Periodic Solutions for -Dimensional Nonautonomous System Sun, 17 Aug 2014 08:07:10 +0000 http://www.hindawi.com/journals/ddns/2014/268418/ In this paper we consider the existence, multiplicity, and nonexistence of positive periodic solutions for n-dimensional nonautonomous functional differential system , where are -periodic in and there exist -periodic functions such that for all with and , exist for ; are -periodic functions and , for ; is an -periodic function. We show that the system has multiple or no positive -periodic solutions for sufficiently large or small , respectively. Youjun Liu, Huanhuan Zhao, and Jurang Yan Copyright © 2014 Youjun Liu et al. All rights reserved. Fractional Order Stochastic Differential Equation with Application in European Option Pricing Wed, 13 Aug 2014 07:03:29 +0000 http://www.hindawi.com/journals/ddns/2014/621895/ Memory effect is an important phenomenon in financial systems, and a number of research works have been carried out to study the long memory in the financial markets. In recent years, fractional order ordinary differential equation is used as an effective instrument for describing the memory effect in complex systems. In this paper, we establish a fractional order stochastic differential equation (FSDE) model to describe the effect of trend memory in financial pricing. We, then, derive a European option pricing formula based on the FSDE model and prove the existence of the trend memory (i.e., the mean value function) in the option pricing formula when the Hurst index is between 0.5 and 1. In addition, we make a comparison analysis between our proposed model, the classic Black-Scholes model, and the stochastic model with fractional Brownian motion. Numerical results suggest that our model leads to more accurate and lower standard deviation in the empirical study. Qing Li, Yanli Zhou, Xinquan Zhao, and Xiangyu Ge Copyright © 2014 Qing Li et al. All rights reserved. Ananlysis of Carbon Emission Reduction and Power Dominance between Single Manufacturer and Single Retailer in Regulatory Cap and Trade System Mon, 11 Aug 2014 11:39:40 +0000 http://www.hindawi.com/journals/ddns/2014/523451/ In the cap and trade system, the paper analyses the Stackelberg game between the power asymmetrical retailer and manufacturer and designs a side-payment self-enforcing contract to resolve some arguments that the existing research overemphasizes spontaneity of participation in side-payment contracts design based on supply chain coordination and does not consider rationality and fairness of allocation of profit increment. Also, the numerical analysis was given. The research shows some important conclusions: in the supply chain, the dominant manufacturer is not able to encourage the retailer to improve its promotion level by increasing its carbon cutting level, but the optimal emission reduction level increases with the dominant retailer’s promotion level; the optimal promotion level, emission reduction, and product demand in a retailer leading supply chain are higher than those in a supply chain dominated by manufacturer; with the new side-payment self-enforcing contract, decentralized decision according to individual rationality incurs a collective reason effect in the centralized setting. Liang-jie Xia and Hua-wei Zhi Copyright © 2014 Liang-jie Xia and Hua-wei Zhi. All rights reserved. A Method to Transit the Rotor-to-Stator Rubbing to Normal Motion Using the Phase Characteristic Mon, 11 Aug 2014 08:01:46 +0000 http://www.hindawi.com/journals/ddns/2014/247691/ A method is proposed to transit the rotor-to-stator rubbing to no-rub motion through active auxiliary bearing. The key point of this technique is to express the attractive domain of no-rub motion based on the phase characteristic and to represent the desired status. The feedback actuation is applied by an active auxiliary bearing to drive the rotor approaching the desired status. After that, the control actuation is turned off. Although the desired status is still in rubbing, it is in the attractive domain of no-rub motion, and the response of the rotor is automatically attracted to no-rub motion. Jieqiong Xu, Qunhong Li, and Shimin Wang Copyright © 2014 Jieqiong Xu et al. All rights reserved. Dynamic CGE Model and Simulation Analysis on the Impact of Citizenization of Rural Migrant Workers on the Labor and Capital Markets in China Mon, 11 Aug 2014 06:10:33 +0000 http://www.hindawi.com/journals/ddns/2014/351947/ This paper investigates the effect of the policy of citizenization of rural migrant workers on the factor market in a dynamic CGE model, which contains multiple dimensions of labor heterogeneity, a labor-lagged adjustment mechanism, and a dynamic investment mechanism. The simulation results show that changes in supply in the labor market will affect the labor market structure, the relative factor price, and the investment in and the output of industries. Qi Wu and Hao Xiao Copyright © 2014 Qi Wu and Hao Xiao. All rights reserved. Discrete Weighted Pseudo Asymptotic Periodicity of Second Order Difference Equations Sun, 10 Aug 2014 13:28:42 +0000 http://www.hindawi.com/journals/ddns/2014/949487/ We define the concept of discrete weighted pseudo--asymptotically periodic function and prove some basic results including composition theorem. We investigate the existence, and uniqueness of discrete weighted pseudo--asymptotically periodic solution to nonautonomous semilinear difference equations. Furthermore, an application to scalar second order difference equations is given. The working tools are based on the exponential dichotomy theory and fixed point theorem. Zhinan Xia Copyright © 2014 Zhinan Xia. All rights reserved. Linear Control of Fractional-Order Financial Chaotic Systems with Input Saturation Wed, 06 Aug 2014 08:51:36 +0000 http://www.hindawi.com/journals/ddns/2014/802429/ In this paper, control of fractional-order financial chaotic systems with saturated control input is investigated by means of state-feedback control method. The saturation problem is tackled by using Gronwall-Bellman lemma and a memoryless nonlinearity function. Based on Gronwall inequality and Laplace transform technique, two sufficient conditions are achieved for the asymptotical stability of the fractional-order financial chaotic systems with fractional orders 0 < α ≤ 1 and 1 < α < 2, respectively. Finally, simulation studies are carried out to show the effectiveness of the proposed linear control method. Junhai Luo, Guanjun Li, and Heng Liu Copyright © 2014 Junhai Luo et al. All rights reserved. A Proposal to the Study of Contractions in Quasi-Metric Spaces Wed, 06 Aug 2014 08:19:35 +0000 http://www.hindawi.com/journals/ddns/2014/269286/ We investigate the existence and uniqueness of a fixed point of an operator via simultaneous functions in the setting of complete quasi-metric spaces. Our results generalize and improve several recent results in literature. Hamed H. Alsulami, Erdal Karapınar, Farshid Khojasteh, and Antonio-Francisco Roldán-López-de-Hierro Copyright © 2014 Hamed H. Alsulami et al. All rights reserved. Coordinating Three-Level Supply Chain by Revenue-Sharing Contract with Sales Effort Dependent Demand Tue, 05 Aug 2014 00:00:00 +0000 http://www.hindawi.com/journals/ddns/2014/561081/ Revenue-sharing contract is a kind of mechanism to improve performance or to achieve perfect coordination of supply chain. Considering a three-level supply chain consisting of a manufacturer, a distributor, and a retailer who faces a stochastic and sales effort dependent demand, the paper analyzes the impact of sales effort on supply chain coordination and expounds the reasons why traditional revenue-sharing contract cannot coordinate supply chain in this condition. Given three cases: only the retailer bears the sales effort cost, only the manufacturer bears the sales effort cost, and the retailer bears the sales effort cost with the manufacturer, the paper proposes an improved revenue-sharing contract based on quantity discount policy to coordinate the supply chain. It illustrates that improved revenue sharing contract can coordinate supply chain by implementing it in one transaction or two transactions of three-level supply chain. The model of improved revenue-sharing contract is optimized, respectively, by addition form and multiplication form with sales effort dependent demand. Formulas are given to determine the optimal contract parameters. Finally, numerical experiments are given to test the accuracy of the model of improved revenue-sharing contract. Qinghua Pang, Yuer Chen, and Yulu Hu Copyright © 2014 Qinghua Pang et al. All rights reserved. The Oscillation of a Class of the Fractional-Order Delay Differential Equations Sun, 03 Aug 2014 08:49:36 +0000 http://www.hindawi.com/journals/ddns/2014/272198/ Several oscillation results are proposed including necessary and sufficient conditions for the oscillation of fractional-order delay differential equations with constant coefficients, the sufficient or necessary and sufficient conditions for the oscillation of fractional-order delay differential equations by analysis method, and the sufficient or necessary and sufficient conditions for the oscillation of delay partial differential equation with three different boundary conditions. For this, α-exponential function which is a kind of functions that play the same role of the classical exponential functions of fractional-order derivatives is used. Qianli Lu and Feng Cen Copyright © 2014 Qianli Lu and Feng Cen. All rights reserved. Stability Analysis of a System of Exponential Difference Equations Thu, 24 Jul 2014 08:08:56 +0000 http://www.hindawi.com/journals/ddns/2014/375890/ We study the boundedness character and persistence, existence and uniqueness of positive equilibrium, local and global behavior, and rate of convergence of positive solutions of the following system of exponential difference equations: , , where the parameters , and for and initial conditions , and are positive real numbers. Furthermore, by constructing a discrete Lyapunov function, we obtain the global asymptotic stability of the positive equilibrium. Some numerical examples are given to verify our theoretical results. Q. Din, K. A. Khan, and A. Nosheen Copyright © 2014 Q. Din et al. All rights reserved. Note on the Persistence of a Nonautonomous Lotka-Volterra Competitive System with Infinite Delay and Feedback Controls Thu, 24 Jul 2014 07:03:03 +0000 http://www.hindawi.com/journals/ddns/2014/682769/ We study a nonautonomous Lotka-Volterra competitive system with infinite delay and feedback controls. We establish a series of criteria under which a part of -species of the systems is driven to extinction while the remaining part of the species is persistent. Particularly, as a special case, a series of new sufficient conditions on the persistence for all species of system are obtained. Several examples together with their numerical simulations show the feasibility of our main results. Chunling Shi, Yiqin Wang, Xiaoying Chen, and Yuli Chen Copyright © 2014 Chunling Shi et al. All rights reserved. Improvement of Power Flow Calculation with Optimization Factor Based on Current Injection Method Thu, 24 Jul 2014 00:00:00 +0000 http://www.hindawi.com/journals/ddns/2014/437567/ This paper presents an improvement in power flow calculation based on current injection method by introducing optimization factor. In the method proposed by this paper, the PQ buses are represented by current mismatches while the PV buses are represented by power mismatches. It is different from the representations in conventional current injection power flow equations. By using the combined power and current injection mismatches method, the number of the equations required can be decreased to only one for each PV bus. The optimization factor is used to improve the iteration process and to ensure the effectiveness of the improved method proposed when the system is ill-conditioned. To verify the effectiveness of the method, the IEEE test systems are tested by conventional current injection method and the improved method proposed separately. Then the results are compared. The comparisons show that the optimization factor improves the convergence character effectively, especially that when the system is at high loading level and R/X ratio, the iteration number is one or two times less than the conventional current injection method. When the overloading condition of the system is serious, the iteration number in this paper appears 4 times less than the conventional current injection method. Lei Wang, Chen Chen, and Tao Shen Copyright © 2014 Lei Wang et al. All rights reserved. Research on MAS-Based Supply Chain Resilience and Its Self-Organized Criticality Wed, 23 Jul 2014 11:40:12 +0000 http://www.hindawi.com/journals/ddns/2014/621341/ Building resilient supply chain is an effective way to deal with uncertain risks. First, by analyzing the self-organization of supply chain, the supply chain resilience is described as a macroscopic property that generates from self-organizing behavior of each enterprise on the microlevel. Second, a MAS-based supply chain resilience model is established and its local fitness function, neighborhood structure, and interaction rules that are applicable to supply chain system are designed through viewing the enterprise as an agent. Finally, with the help of a case, we find that there is an agglomeration effect and a SOC characteristic in supply chain and the evolution of supply chain is controlled by parameters of MAS. Managers can control the supply chain within the resilient range and choose a good balance between interest and risk by controlling enterprises’ behavior. Liang Geng, Renbin Xiao, and Xing Xu Copyright © 2014 Liang Geng et al. All rights reserved. Functional Principal Components Analysis of Shanghai Stock Exchange 50 Index Tue, 22 Jul 2014 11:35:22 +0000 http://www.hindawi.com/journals/ddns/2014/365204/ The main purpose of this paper is to explore the principle components of Shanghai stock exchange 50 index by means of functional principal component analysis (FPCA). Functional data analysis (FDA) deals with random variables (or process) with realizations in the smooth functional space. One of the most popular FDA techniques is functional principal component analysis, which was introduced for the statistical analysis of a set of financial time series from an explorative point of view. FPCA is the functional analogue of the well-known dimension reduction technique in the multivariate statistical analysis, searching for linear transformations of the random vector with the maximal variance. In this paper, we studied the monthly return volatility of Shanghai stock exchange 50 index (SSE50). Using FPCA to reduce dimension to a finite level, we extracted the most significant components of the data and some relevant statistical features of such related datasets. The calculated results show that regarding the samples as random functions is rational. Compared with the ordinary principle component analysis, FPCA can solve the problem of different dimensions in the samples. And FPCA is a convenient approach to extract the main variance factors. Zhiliang Wang, Yalin Sun, and Peng Li Copyright © 2014 Zhiliang Wang et al. All rights reserved. Analysis on the Impact of the Fluctuation of the International Gold Prices on the Chinese Gold Stocks Mon, 21 Jul 2014 12:02:07 +0000 http://www.hindawi.com/journals/ddns/2014/308626/ Five gold stocks in Chinese Shanghai and Shenzhen A-share and Comex gold futures are chosen to form the sample, for the purpose of analysing the impact of the fluctuation of the international gold prices on the gold stocks in Chinese Shanghai and Shenzhen A-share. Using the methods of unit root test, Granger causality test, VAR model, and impulse response function, this paper has analysed the relationship between the price change of the international gold futures and the price fluctuation of gold stocks in Chinese Shanghai and Shenzhen comprehensively. The results suggest the fluctuation of the international gold futures has a strong influence on the domestic futures. Jiankang Jin, Chen Jie, and Quanda Zhang Copyright © 2014 Jiankang Jin et al. All rights reserved. Lyapunov Functions for a Class of Discrete SIRS Epidemic Models with Nonlinear Incidence Rate and Varying Population Sizes Mon, 21 Jul 2014 08:44:34 +0000 http://www.hindawi.com/journals/ddns/2014/472746/ We investigate the dynamical behaviors of a class of discrete SIRS epidemic models with nonlinear incidence rate and varying population sizes. The model is required to possess different death rates for the susceptible, infectious, recovered, and constant recruitment into the susceptible class, infectious class, and recovered class, respectively. By using the inductive method, the positivity and boundedness of all solutions are obtained. Furthermore, by constructing new discrete type Lyapunov functions, the sufficient and necessary conditions on the global asymptotic stability of the disease-free equilibrium and endemic equilibrium are established. Ying Wang, Zhidong Teng, and Mehbuba Rehim Copyright © 2014 Ying Wang et al. All rights reserved. Local Fractional Laplace Variational Iteration Method for Solving Linear Partial Differential Equations with Local Fractional Derivative Thu, 17 Jul 2014 09:19:00 +0000 http://www.hindawi.com/journals/ddns/2014/365981/ The local fractional Laplace variational iteration method was applied to solve the linear local fractional partial differential equations. The local fractional Laplace variational iteration method is coupled by the local fractional variational iteration method and Laplace transform. The nondifferentiable approximate solutions are obtained and their graphs are also shown. Ai-Min Yang, Jie Li, H. M. Srivastava, Gong-Nan Xie, and Xiao-Jun Yang Copyright © 2014 Ai-Min Yang et al. All rights reserved. Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises Wed, 16 Jul 2014 12:04:48 +0000 http://www.hindawi.com/journals/ddns/2014/453458/ Small- and medium-sized enterprises (SMEs) are the important driving forces for the growth of China’s economy. However, financing difficulty has always been the important problem besetting the development of SMEs for a long time. In particular, in recent years, US subprime crisis in 2008 caused a heavy blow to the development of some externally oriented SMEs. Thus, how to effectively overcome financing predicament for the SMEs is crucial for Chinese government. In this paper, based on microdata from China Industrial Enterprise Database, propensity score matching (PSM) method is adopted to conduct empirical analysis about the treatment effects of indirect financing level of SMEs under different systems. Empirical results reveal that state-owned enterprises enjoy indirect financing advantages compared with other enterprises and there is certain ownership discrimination against foreign-funded enterprises and private enterprises. In particular, the indirect financing rate of state-owned enterprises is 1.4% higher than that of other enterprises, and the indirect financing rate of foreign-funded enterprises is 6% lower than that of other enterprises; private enterprises are advantageous in indirect financing compared with other enterprises; however, indirect financing rate of private enterprises is 1.8% lower than that of state-owned enterprises, which also reveals ownership discrimination to certain extent. Xiuzhen Wang, Yi Hu, Xiaohua Xia, and Ying Deng Copyright © 2014 Xiuzhen Wang et al. All rights reserved. An Extended SISa Model for Sentiment Contagion Wed, 16 Jul 2014 08:02:38 +0000 http://www.hindawi.com/journals/ddns/2014/262384/ One of the main differences between sentiment and infectious diseases is that the former one has two opposite infectious states: positive (optimistic) and negative (pessimistic), while the latter one has not. In this paper, based on the SISa model, we consider this issue and propose a new model of sentiment contagion called the SOSa-SPSa model. The results of both numerical and agent-based simulations show that our model could explain the process of sentiment contagion better than that of Hill et al. (2010). Further analysis shows that both the numbers of optimistic and pessimistic individuals will increase with the probability of spontaneity or contagion and decrease with the probability of recovery. Potential applications of this model in financial market have also been discussed. Zhifeng Liu, Tingting Zhang, and Qiujun Lan Copyright © 2014 Zhifeng Liu et al. All rights reserved. Pricing Options Based on Trinomial Markov Tree Wed, 16 Jul 2014 07:31:26 +0000 http://www.hindawi.com/journals/ddns/2014/624360/ A trinomial Markov tree model is studied for pricing options in which the dynamics of the stock price are modeled by the first-order Markov process. Firstly, we construct a trinomial Markov tree with recombining nodes. Secondly, we give an algorithm for estimating the risk-neutral probability and provide the condition for the existence of a validation risk-neutral probability. Thirdly, we propose a method for estimating the volatilities. Lastly, we analyze the convergence and sensitivity of the pricing method implementing trinomial Markov tree. The result shows that, compared to binomial Markov tree, the proposed model is a natural combining tree and, while changing the probability of the node, it is still combining, so the computation is very fast and very easy to be implemented. Hu Xiaoping, Guo Jiafeng, Du Tao, Cui Lihua, and Cao Jie Copyright © 2014 Hu Xiaoping et al. All rights reserved. Canard Limit Cycle of the Holling-Tanner Model Wed, 16 Jul 2014 00:00:00 +0000 http://www.hindawi.com/journals/ddns/2014/856475/ By using the singular perturbation theory on canard cycles, we investigate the canard phenomenon for the Holling-Tanner model with the intrinsic growth rate of the predator small enough. The obtained result shows that there may be at most one canard limit cycle, and the range of small parameters is estimated. The phenomenon of outbreak is explained. Chongwu Zheng, Fengqin Zhang, and Jianquan Li Copyright © 2014 Chongwu Zheng et al. All rights reserved. Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies Wed, 16 Jul 2014 00:00:00 +0000 http://www.hindawi.com/journals/ddns/2014/361923/ We focus on the joint production planning of complex supply chains facing stochastic demands and being constrained by carbon emission reduction policies. We pick two typical carbon emission reduction policies to research how emission regulation influences the profit and carbon footprint of a typical supply chain. We use the input-output model to capture the interrelated demand link between an arbitrary pair of two nodes in scenarios without or with carbon emission constraints. We design optimization algorithm to obtain joint optimal production quantities combination for maximizing overall profit under regulatory policies, respectively. Furthermore, numerical studies by featuring exponentially distributed demand compare systemwide performances in various scenarios. We build the “carbon emission elasticity of profit (CEEP)” index as a metric to evaluate the impact of regulatory policies on both chainwide emissions and profit. Our results manifest that by facilitating the mandatory emission cap in proper installation within the network one can balance well effective emission reduction and associated acceptable profit loss. The outcome that CEEP index when implementing Carbon emission tax is elastic implies that the scale of profit loss is greater than that of emission reduction, which shows that this policy is less effective than mandatory cap from industry standpoint at least. Longfei He, Zhaoguang Xu, and Zhanwen Niu Copyright © 2014 Longfei He et al. All rights reserved. Game Theoretic Analysis of Carbon Emission Reduction and Sales Promotion in Dyadic Supply Chain in Presence of Consumers’ Low-Carbon Awareness Tue, 15 Jul 2014 07:24:26 +0000 http://www.hindawi.com/journals/ddns/2014/837376/ The paper studies how the combination of the manufacturer’s carbon emission reduction and the retailer’s emission reduction relevant promotion impacts the performances of a dyadic supply chain in low-carbon environment. We consider three typical scenarios, that is, centralized and decentralized without or with side-payment. We compare measures of supply chain performances, such as profitabilities, emission reduction efficiencies, and effectiveness, in these scenarios. To improve chain-wide performances, a new side-payment contract is designed to coordinate the supply chain and numerical experiments are also conducted. We find the following. (1) In decentralized setting, the retailer will provide emission cutting allowance to the manufacturer only if their unit product profit margin is higher enough than the manufacturer’s, and the emission reduction level of per unit product is a monotonically increasing function with respect to the cost pooling proportion provided by the retailer; (2) the new side-payment contract can coordinate the dyadic supply chain successfully due to its integrating sales promotion effort and emission reduction input, which results in system pareto optimality under decentralized individual rationality but achieves a collective rationality effect in the centralized setting; (3) when without external force’s regulation, consumers’ low-carbon awareness is to enhance consumers’ utility and decrease profits of supply chain firms. Liangjie Xia and Longfei He Copyright © 2014 Liangjie Xia and Longfei He. All rights reserved.