Paper Info
Title
Competitive strategy for on-line leasing of depreciable equipment
Abstract
This paper studies the problem of on-line leasing of depreciable equipment. We first discuss deterministic strategies for the problem for situations with and without interest rates, respectively. Competitive ratios are used to evaluate the performance of on-line algorithms. The optimal competitive ratio of the deterministic strategy is therefore obtained. As randomization can boost performance, the randomized strategy for on-line leasing of depreciable equipment with oblivious adversary is further proposed. The main difference between the deterministic algorithm and the randomized algorithm is that the introduction of an interest rate decreases the optimal deterministic competitive ratio while it increases that of the latter. By comparison, we find that the introduction of a depreciation factor improves the competitive performance and the model is more practical for on-line leasing of depreciable equipment. Finally, we conclude that the competitive ratio is closely related to the transaction costs and the profitability in the leasing business.
Year
DOI
Venue
2011
10.1016/j.mcm.2011.02.036
Mathematical and Computer Modelling
Keywords
Field
DocType
competitive ratio,deterministic algorithm,randomized strategy,deterministic strategy,competitive strategy,depreciable equipment,competitive performance,optimal deterministic competitive ratio,on-line leasing,leasing business,interest rate,optimal competitive ratio,randomized algorithm,profitability,transaction cost
Randomized algorithm,Transaction cost,Mathematical optimization,Competitive advantage,Operations research,Depreciation,Interest rate,Profitability index,Deterministic algorithm,Mathematics,Competitive analysis
Journal
Volume
Issue
ISSN
54
1-2
Mathematical and Computer Modelling
Citations 
PageRank 
References 
4
0.44
18
Authors
4
Name
Order
Citations
PageRank
Yong Zhang1192.96
Wei-Guo Zhang255739.22
Wei-Jun Xu315414.56
Hongyi Li4138377.85