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Keywords = penalties for breach of contract

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20 pages, 2414 KB  
Article
Evolutionary Game Analysis of Risk in Third-Party Environmental Governance
by Yijing Zou, Dayi He and Rui Sun
Sustainability 2023, 15(18), 13750; https://doi.org/10.3390/su151813750 - 14 Sep 2023
Cited by 1 | Viewed by 1351
Abstract
Focusing on the moral hazard of third-party environmental service providers in monitoring and controlling the emission of pollutants by enterprises, this paper takes the third-party governance of environmental pollution under the incentive-and-constraint mechanism as its research object. It also constructs a game model [...] Read more.
Focusing on the moral hazard of third-party environmental service providers in monitoring and controlling the emission of pollutants by enterprises, this paper takes the third-party governance of environmental pollution under the incentive-and-constraint mechanism as its research object. It also constructs a game model involving emission-producing enterprises producing emissions, third-party environmental service providers, and local governments. Adopting this evolutionary game model, this paper analyzes the mechanism of local government’s role in effectively resolving the moral hazard between emission-producing enterprises producing emissions and third-party environmental service providers by exploring the conditions of spontaneous cooperation between emission-producing enterprises producing emissions and third-party environmental service providers. This paper provides a possible solution to the problem of emission-producing enterprises or third-party environmental service providers stealing and leaking emissions, as well as collusion between the two. The study presents two major findings. (1) There are three possible scenarios of breach of contract: unilateral breach by third-party environmental service providers, unilateral breach by emissions-producing enterprises, and collusion between the two. When a third-party environmental service provider unilaterally breaches a contract, emission-producing enterprises have regulatory responsibilities toward them. In such cases, local governments should reduce the penalties imposed on emission-producing enterprises. This measure would decrease the willingness of these enterprises to allocate a higher proportion of collusion payments to third-party environmental service providers. However, it would simultaneously provide a new avenue through which third-party environmental service providers would gain benefits, thereby increasing their expected gains from collusion. This would create a new game between the two parties, leading to the failure of collusion negotiations. (2) The efficacy of incentive-constraint mechanisms is influenced by the severity of contractual breaches, represented by the magnitude of stealing and leaking emissions. When false emissions reduction is at a high level, increasing the incentives for emission-producing enterprises and third-party environmental service providers cannot effectively prevent collusion; when the level is moderate, incentives for third-party environmental service providers can effectively prevent collusion, but incentives for emission-producing enterprises cannot; when the level is low, increasing the incentives for emission-producing enterprises and third-party environmental service providers can help prevent collusion. (3) When emission-producing enterprises engage in unilateral discharge, if a local government’s incentive for third-party environmental service providers exceeds the benefits it can obtain from regulating the discharged amount, third-party environmental service providers tacitly approve the company’s discharge behavior. However, with the strengthening of local government regulations, emission-producing enterprises tend to engage in more clandestine discharging of pollutants to obtain greater rewards. This practice infringes upon the revenue of third-party environmental service providers, as their earnings are positively correlated with the amount of pollution abated. Third-party environmental service providers no longer acquiesce to corporate emissions theft, resulting in an increase in the probability of the detection of emission-producing enterprises’ illicit discharges; in this way, the behavior of these enterprises is regulated. Full article
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25 pages, 3217 KB  
Article
Research on the Mechanism of Government–Industry–University–Institute Collaborative Innovation in Green Technology Based on Game–Based Cellular Automata
by Tuochen Li and Xinyu Zhou
Int. J. Environ. Res. Public Health 2022, 19(5), 3046; https://doi.org/10.3390/ijerph19053046 - 5 Mar 2022
Cited by 14 | Viewed by 2890
Abstract
In order to ensure stable cooperation among the government, enterprise and university/institute in the green technology innovation process and guide an increasing number of innovation agents in the region to adopt cooperation, this paper studies the mechanism of green technology innovation. A tripartite [...] Read more.
In order to ensure stable cooperation among the government, enterprise and university/institute in the green technology innovation process and guide an increasing number of innovation agents in the region to adopt cooperation, this paper studies the mechanism of green technology innovation. A tripartite evolutionary game model is established and the strategy choices of the government, industry and university/institute are analyzed through mathematical derivation. On this basis, the cellular automata theory is used to explore strategy choices of all innovation agents in the region from the perspective of a spatial game. From the numerical tests, the following results are obtained: increasing the cooperative innovation revenue, fairness of this revenue distribution or penalties for breach of contract can consolidate the cooperative relationship among the government, enterprise and university/institute, achieving the goal of guiding all innovation agents in the region to accept the collaborative innovation mode; regulating the government subsidy or government penalty can consolidate the cooperative relationship among participants in the pilot project, but cannot guide all innovation agents in the region accept the collaboration innovation mode. This paper’s results not only enrich the theory of government–industry–university–institute collaborative innovation in green technology, but provide ideas for stable cooperation mechanisms and comprehensive promotion of this collaborative innovation mode as well. Full article
(This article belongs to the Section Anthropogenic Circularity)
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20 pages, 2099 KB  
Article
Chain Innovation Mechanism of the Manufacturing Industry in the Yangtze River Delta of China Based on Evolutionary Game
by Na Yu and Chunfeng Zhao
Sustainability 2021, 13(17), 9729; https://doi.org/10.3390/su13179729 - 30 Aug 2021
Cited by 8 | Viewed by 3432
Abstract
It is of great theoretical and practical significance to achieve high-quality development that promotes the transformation of digestion, absorption, and re-innovation to an independent innovation model, actively participating in the restructuring of the industrial chain, and enhancing the status of the Yangtze River [...] Read more.
It is of great theoretical and practical significance to achieve high-quality development that promotes the transformation of digestion, absorption, and re-innovation to an independent innovation model, actively participating in the restructuring of the industrial chain, and enhancing the status of the Yangtze River Delta in the global innovation chain. This study constructs a tripartite evolutionary game model of collaborative innovation led by the government, participated by upstream enterprises and downstream enterprises. Moreover, this article analyzes the strategic choices of the tripartite entities in the process of collaborative innovation, and the simulation analyzes the influencing factors of the government, upstream enterprises, and downstream enterprises’ collaborative innovation strategy selection. The results indicate that the government, upstream enterprises, and downstream enterprises have different degrees of influence on each other’s willingness to participate. In addition, the analysis proves that government policy support and financial support have different impacts on upstream enterprises and downstream enterprises. Full article
(This article belongs to the Topic Industrial Engineering and Management)
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15 pages, 675 KB  
Article
Minimizing Tardiness Penalty Costs in Job Shop Scheduling under Maximum Allowable Tardiness
by Jae-Gon Kim, Hong-Bae Jun, June-Young Bang, Jong-Ho Shin and Seong-Hoon Choi
Processes 2020, 8(11), 1398; https://doi.org/10.3390/pr8111398 - 2 Nov 2020
Cited by 9 | Viewed by 4300
Abstract
In many manufacturing or service industries, there exists maximum allowable tardiness for orders, according to purchase contracts between the customers and suppliers. Customers may cancel their orders and request compensation for damages, for breach of contract, when the delivery time is expected to [...] Read more.
In many manufacturing or service industries, there exists maximum allowable tardiness for orders, according to purchase contracts between the customers and suppliers. Customers may cancel their orders and request compensation for damages, for breach of contract, when the delivery time is expected to exceed maximum allowable tardiness, whereas they may accept the delayed delivery of orders with a reasonable discount of price within maximum allowable tardiness. Although many research works have been produced on the job shop scheduling problem relating to minimizing total tardiness, none of them have yet considered problems with maximum allowable tardiness. In this study, we solve a job shop scheduling problem under maximum allowable tardiness, with the objective of minimizing tardiness penalty costs. Two kinds of penalty costs are considered, i.e., one for tardy jobs, and the other for canceled jobs. To deal with this problem within a reasonable time at actual production facilities, we propose several dispatching rules by extending well-known dispatching rules for the job shop scheduling problem, in cooperation with a probabilistic conception of those rules. To evaluate the proposed rules, computational experiments were carried out on 300 test instances. The test results show that the suggested probabilistic dispatching rules work better than the existing rules and the optimization solver CPLEX, with a time limit. Full article
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