Spatial pricing and product allocation in online retailing

Spatial pricing means a retailer price discriminates its customers based on their geographic locations. In this article, we study how an online retailer should jointly allocate multiple products and facilitate spatial price discrimination to maximize profits. When deciding between a centralized product allocation ((i.e., different products are allocated to the same fulfillment center) and decentralized product allocation (ie, different products are allocated to different fulfillment centers), the retailer faces the tradeoff between shipment pooling (ie, shipping multiple products in one package), and demand localization (ie, stocking products to satisfy local demand) based on its understanding of customers' product valuations. In our basic model, we consider two widely used spatial pricing policies: free on board (FOB) pricing that charges each customer the exact amount of shipping cost, and uniform delivered (UD) pricing that provides free shipping. We propose a stylized model and find that centralized product allocation is preferred when demand localization effect is relatively low or shipment pooling benefit is relatively high under both spatial pricing policies. Moreover, centralized product allocation is more preferred under the FOB pricing which encourages the purchase of virtual bundles of multiple products. Furthermore, we respectively extend the UD and FOB pricing policies to flat rate shipping (ie, the firm charges a constant shipping fee for each purchase), and linear rate shipping (ie, the firm sets the shipping fee as a fixed proportion of firm's actual fulfillment costs). While similar observations from the basic model still hold, we find the firm can improve its profit by sharing the fulfillment cost with its customers via the flat rate or linear rate shipping fee structure.     

Small footprint,small payoff: The military effectiveness of security force assistance

After 15 years of war in Afghanistan and Iraq, many now see ‘small-footprint’ security force assistance (SFA) – training, advising and equipping allied militaries – as an alternative to large US ground-force commitments. Yet, its actual military efficacy has been little studied. This paper seeks to fill this gap. We find important limitations on SFA’s military utility, stemming from agency problems arising from systematic interest misalignment between the US and its typical partners. SFA’s achievable upper bound is modest and attainable only if US policy is intrusive and conditional, which it rarely is. For SFA, small footprints will usually mean small payoffs.     

Mediation,Peacekeeping And Civil War Peace Agreements

The post-civil war agreement phase is vulnerable to credible commitment problems, a lack of government capacity to implement, and/or mutual vulnerability to retribution from violating the agreement. This study’s main contribution is to demonstrate the combined utility of mediation and UN peacekeeping. Mediation builds trust and confidence and works with the parties to design an efficacious agreement conducive to, among other features, tamping down post-agreement violence. Peacekeeping stems violence and facilitates the implementation of the agreement. Agreements that are mediated and followed by UN peacekeeping are expected to be more robust in terms of staving off violence. We report the effects of the mediation–peacekeeping interaction using a method correcting for a common misinterpretation of interaction terms. We test logit and hazard models using a sample of full and partial civil war peace agreements signed between 1975 and 2011. Controlling for agreement design, democracy, and income per capita, the results indicate mediation and its interaction with peacekeeping reduce the probability of renewed/continuing violence and have a positive impact on agreement duration. We also report brief case study evidence from the 1990s peace process in Guatemala.     

The crisis of American military assistance: strategic dithering and Fabergé Egg armies

ABSTRACT

The United States has provided substantial amounts of military assistance and aid since the end of World War Two. During the Cold War, it proved vital in protecting numerous regimes from communist takeovers. Successful outcomes occurred when American leaders made large initial aid commitments, and the states had the capacity and political willpower to use it effectively. However, Vietnam was an example of how U.S. support lagged, as leaders in Saigon preferred political survival instead of creating regime legitimacy. Following 9/11, American security aid focused on making weak countries develop stronger security forces. Unfortunately, this created Fabergé egg militaries: expensive and easily broken by insurgents. This article suggests long-term strategic commitments need to be made alongside more resources for the American State Department and similar organizations to focus on the politics of state-building. Finally, this article suggests strategies, such as “whole-of-government” approaches, to improve long-term security and political institution building.     

火力对抗条件下防空导弹作战有效性分析

针对火力对抗条件下空中来袭目标对国土或岛屿进行轰炸的情况,通过分析作战双方兵力兵器的变化关系,建立了轰炸机——防空导弹对抗的确定型Lanchester方程,并以此方程为基础,导出随机类型的Lanchester方程。结合基于随机服务系统理论的作战有效性分析的排队论模型及方法,获得在来袭目标有火力对抗条件下防空武器的作战有效性分析方法。     

Partial equilibrium in risk‐based production decisions

Characteristically, a small subset of operational problems admit risk neutrality when contingent claims methodology were used in their analysis. That is, for the majority of manufacturing and production problems, operating cash flows are not directly linked to prices of traded assets. However, to the extent that correlations can be estimated, the methodology's applicability to a broader set of operational problems is supported. Our article addresses this issue with the objective of extending the use of contingent claims techniques to a larger set of operational problems. In broad terms, this objective entails a partial equilibrium approach to the problem of valuing uncertain cash flows. To this end, we assume risk aversion and cast our approach within Merton's intertemporal capital asset pricing model. In this context, we formulate a “generic” production valuation model that is framed as an exercise in stochastic optimal control. The model is versatile in its characterization and can easily be adapted to accommodate a wide‐ranging set of risk‐based operational problems where the underlying sources of uncertainty are not traded. To obtain results, the model is recast as a stochastic dynamic program to be solved numerically. The article addresses a number of fundamental issues in the analysis risk based decision problems in operations. First, in the approach provided, decisions are analyzed under a properly defined risk structure. Second, the process of analysis leads to suitably adjusted probability distributions through which, appropriately discounted expectations are derived. Third, through consolidating existing concepts into a standard and adaptable framework, we extend the applicability of contingent claims methodology to a broader set of operational problems. The approach is advantageous as it obviates the need for exogenously specifying utility functions or discount rates.© 2011 Wiley Periodicals, Inc. Naval Research Logistics, 2011     

Generalized orienteering problem with resource dependent rewards

We introduce a generalized orienteering problem (OP) where, as usual, a vehicle is routed from a prescribed start node, through a directed network, to a prescribed destination node, collecting rewards at each node visited, to maximize the total reward along the path. In our generalization, transit on arcs in the network and reward collection at nodes both consume a variable amount of the same limited resource. We exploit this resource trade‐off through a specialized branch‐and‐bound algorithm that relies on partial path relaxation problems that often yield tight bounds and lead to substantial pruning in the enumeration tree. We present the smuggler search problem (SSP) as an important real‐world application of our generalized OP. Numerical results show that our algorithm applied to the SSP outperforms standard mixed‐integer nonlinear programming solvers for moderate to large problem instances. We demonstrate model enhancements that allow practitioners to represent realistic search planning scenarios by accounting for multiple heterogeneous searchers and complex smuggler motion. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013     

Lost in transition: the South African military and counterinsurgency

Washington's growing reliance upon international private security companies (PSCs) will lead to these firms becoming prominent vehicles in the prosecution of the counterinsurgency in Iraq. This shift, however, risks labeling PSCs as mercenaries and presents considerable challenges regarding the control of non-state violence. Moreover, tradeoffs exist regarding the different nationalities of PSC personnel. Utilization of personnel from the developed world risks compromising the capabilities of Special Operations Forces. Additionally, shifts in casualty recognition amongst US policymakers and the media suggest that the private option is becoming politically salient and thus less useful. Many developing world states are increasingly concerned about how the global outsourcing of security sector expertise risks their stability and ability to execute coherent policy. Finally, the employment of Iraqis in PSCs sends mixed messages to the Iraqi populace about the need for and the effectiveness of a cohesive and responsible indigenous security sector.

Frankly, I'd like to see the government get out of war altogether and leave the whole feud to private industry.

[Catch-22 – Major Milo Minderbinder]     

Maritime interdiction in Sri Lanka's counterinsurgency

A comprehensive maritime interdiction strategy to attack the insurgent's logistic system was a key element in the defeat of the Tamil Tigers. The campaign of maritime interdiction required the Sri Lankan Navy (SLN) to attack LTTE arms smuggling, sea piracy, and maritime terrorism. The SLN degraded the insurgency's robust maritime logistical network while also devising tactics to engage the maritime insurgents who reacted with swarm and suicide boat tactics. The efforts of the SLN forced the Tamil Tigers to confront the government's final land offensives with diminished resources, thus collapsing a three decades’ old insurgency in a matter of months.     

At war with social theory: Instrumental and communicative action in US military doctrine during the War on Terror

As US counterinsurgency campaigns draw to a close, doctrine for asymmetric warfare written during the War on Terror has come under heavy criticism. While many have argued that this shift to ‘winning hearts and minds’ is evidence that the United States is taking humanitarianism and nation-building seriously, others argue that a wide gap exists between US counterinsurgency doctrine and the protection of civilians afflicted by conflict. In this article, I show that the latter is true by comparing theories of instrumental and communicative action to US doctrine for operational design, stability operations, and counterinsurgency. I argue that these texts treat the people as an object to be manipulated for the achievement of pre-determined self-interested strategic goals rather than members of a community that jointly designs operations to fulfill shared objectives. However, US doctrine does contain communicative elements that, if prioritized, would better support humanitarian and state-building objectives otherwise subordinated in the War on Terror.