TRANSPORTATION COST-INFORMATION INEQUALITY FOR A STOCHASTIC HEAT EQUATION DRIVEN BY FRACTIONAL-COLORED NOISE

In this paper,we prove Talagrand’s T2 transportation cost-information inequality for the law of stochastic heat equation driven by Gaussian noise,which is fractional for a time variable with the Hurst index H∈(1/2,1),and is correlated for the spatial variable.The Girsanov theorem for fractional-colored Gaussian noise plays an important role in the proof.

Multi-Dimensional Product Differentiation

We analyze product differentiation in a multi-dimensional model with non-uniform consumer distribution.The level of product differentiation is measured by both unit transport costs and firms'locations.Our analysis concerns both measures.First,fixing firms'locations,we show that equilibrium prices can increase or decrease with unit transport costs.The overall result depends on the interplay of a shifting effect and a rotating effect-the latter exists only in multi-dimensional models.Second,fixing unit transport costs,we find that under non-uniform distribution,there may exist no equilibrium where firms maximize differentiation on one dimension but minimize differentiation on other dimensions.Instead,there may exist an equilibrium where firms choose intermediate locations,contrary to common findings in existing studies which assume uniform distribution.

Upstream SOEs in the mixed-ownership reform

This article explores possible options of the upstream mixed-ownership reform with imperfect substitute products in a vertically related market composed of one upstream SOE and two downstream profit-maximising retailers.Its focus is not only on incorporating the issue of privatisation into a vertical market structure,but also on extending the traditional upstream–downstream competition model by allowing the active contribution of retailers to enhance values at different costs.It finds that in a vertically related market where retailers’effort matters,the socially optimal policy towards the upstream SOE is partial privatisation regardless what product differentiation is involved,but the specific degree of privatisation is negatively correlated to the level of effort costs.By contrast,in a vertically related market without retailers’effort,the government tends to choose full nationalisation of the firm.

Blockchain,Enterprise Digitalization,and Supply Chain Finance Innovation

Digital supply chain finance is an innovative product created through the integration of the blockchain technology and traditional supply chain finance.This paper constructs the theoretical framework of mortgage financing from banks by enterprises in the supply chain network,and systematically analyzes the economic rationale governing the digital supply chain finance,along with its pros and cons compared with traditional supply chain finance.The findings show,when there are enough enterprises on the supply chain and sufficient qualified information about these enterprises,the consensus mechanism of the supply chain can reveal closeto-truth enterprise information and prevent information manipulation,malicious fraud,and other moral hazards so that banks can provide accessible and affordable financing services for enterprises on the chain with risks effectively controlled.Otherwise,if there are not enough enterprises on the chain and the credibility of their information cannot be guaranteed,banks will prefer traditional offline methods such as due diligence for risk control.This paper theoretically reveals that,along with the broad application of the blockchain technology in the supply chain and the resulting digitalization of enterprises,digital supply chain finance based on blockchain technology will become a more efficient and inclusive means of financial support.