Marginal risk represents the risk contribution of an individual asset to the risk of the entire portfolio. In this paper, we investigate the portfolio selection problem with direct marginal risk control in a linear conic programming framework. The optimization model involved is a nonconvex quadratically constrained quadratic programming (QCQP) problem. We first transform the QCQP problem into a linear conic programming problem, and then approximate the problem by semidefinite programming (SDP) relaxation problems over some subrectangles. In order to improve the lower bounds obtained from the SDP relaxation problems, linear and quadratic polar cuts are introduced for designing a branch-and-cut algorithm, that may yield an ∈-optimal global solution (with respect to feasibility and optimality) in a finite number of iterations. By exploring the special structure of the SDP relaxation problems, an adaptive branch-and-cut rule is employed to speed up the computation. The proposed algorithm is tested and compared with a known method in the literature for portfolio selection problems with hundreds of assets and tens of marginal risk control constraints.

We consider a newsvendor problem with price-dependent demand, in either additive or multiplicative format. The newsvendor has two modes of purchasing: regular ordering at the beginning of the selling season and emergency ordering (if the realized demand exceeds the initial order quantity) at the end of the selling season. By stochastic comparisons, we systematically investigate the effects of demand magnitude and demand randomness on pricing and ordering quantity decisions as well as expected profit of the newsvendor, under both usual stochastic order (first order stochastic dominance) and convex order (less variable). Our key findings include: (i) in contrary to the case where price is exogenous, a stochastically larger demand shock may even lead to a lower order quantity; (ii) a stochastically larger demand shock leads to a higher price for the additive demand case, but may lead to a lower price for the multiplicative demand case; (iii) a stochastically larger demand shock leads to a higher expected profit for both demand models; (iv) in general, a less variable demand leads to a higher expected profit for both demand models; and furthermore, a less variable demand shock has no effect on price for the additive demand model, but leads to a higher price for the multiplicative demand model. The implications of all these findings for pricing and order quantity are discussed in detail.

The objective of this article is to uncover benefits and risks of Integrated Product Service Offering (IPSO) in a systematic manner. To do so, it adopts an explorative longitudinal in-depth case study (development of an IPSO based on a new technology) and adds insights to the existing literature. The article first proposes a theoretical and generic framework termed the PCP (Provider — Customer — Product) triangle with associated information flow and uncertainty. Second, various types of benefits and risks are presented based on the framework. Among others, the benefit of keeping IPR (Intellectual Property Rights) with the provider and the risk of regulation change are new findings from the case study. In addition, the case study reveals that IPSO is regarded as a positive contributor to innovation. Applying the framework and classification of benefits and risks as norms to other cases has yet to be done for verification. However, the framework contributes scientifically to a better understanding of the benefits and risks of IPSO. In addition, this framework is advantageous with its easiness to understand, which contributes practically to the dissemination of IPSO insight to industry.

Sponsored search advertising is a significant revenue source for search engines. To ameliorate revenues, search engines often set fixed or variable reserve price to in influence advertisers’ bidding. This paper studies the optimal reserve price for a generalized second-price auction (GSP) under both static and dynamic settings. We show that if advertisers’ per-click value has an increasing generalized failure rate, the search engine’s revenue rate is quasi-concave and hence there exists an optimal reserve price under both settings. Different from a static GSP auction where the optimal reserve price is proved to be constant, in a dynamic setting the optimal reserve price is dependent on not only advertisers’ per-click values, but also the number of ad links sold. A search engine should gradually raise reserve price as more qualified advertisers arrive, and maintain the same threshold after all first-page positions are occupied.

This paper considers the regional vitalization problem and discusses the methodology to create regional vitalization plans, which include activating the local economy, enriching people’s lives, and activating the feelings of people, by new initiatives. Activity underlying the methodology is the experience of implementing several actual projects with the local residents, and theory underlying the methodology is the knowledge construction and justification theory based on knowledge management and systems thinking. Introducing an actual vitalization project as an illustrative example, the paper proposes a knowledge reconstruction and justification procedure for regional vitalization.

The nearly 30-year economic growth miracle brings the consequent tremendous poor-rich gap leading strong drives for social transformation in current China. Chinese top leaders have realized to increase the peoples’ income, improve quality of life and construct a “harmonious society” as key missions especially in recent 10 years. How to measure a harmonious society is one important topic as different measures may lead to different development policies. This paper outlines over 10 indices relevant to measure a harmonious society. Some are global indicators, while some are contributed by domestic researchers and arouse debates. Most of those indicators require conducting surveys on social attitudes under micro levels, which is always time consuming with problem of data quality. As Internet technology advances provide ways to record and disseminate fresh community ideas and thoughts conveniently, detecting topics or emotions from on-line public opinions is becoming a trend or one supplement way to overcome those data acquisition problems. This paper discusses one approach to on-line societal risk perception using hot search words and BBS posts. Such a trial aims to provide another way to societal risk perception different from those in traditional socio psychology studies. Challenges are also indicated.

The problem of measuring conflict in large-group decision making is examined with every decision preference expressed by multiple interval intuitionistic trapezoidal fuzzy numbers (IITFNs). First, a distance measurement between two IITFNs is given and a function of conflict between two members of the large group is proposed. Second, members of the large group are clustered. A measurement model of group conflict, which is applied to aggregating large-group preferences, is then proposed by employing the conflict measure of clusters. Finally, a simulation example is presented to validate the models. These models can deal with the preference analysis and coordination of a large-group decision, and are thus applicable to emergency group decision making.