Competitive Analysis of the Online Leasing Problem for Scarce Resources

Jiamin Lu, Nishan Chen and Xin Feng ()
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Jiamin Lu: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China
Nishan Chen: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China
Xin Feng: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China

IJERPH, 2023, vol. 20, issue 1, 1-11

Abstract: The leasing activities of enterprises are of positive significance for promoting a green and low-carbon economy. For scarce resources that can easily go into tight supply states due to changes in the external market environment, the sudden change of their price is a common phenomenon in the leasing market. This paper provides an online leasing model based on the characteristics of scarce resources in which the resource might have a sudden price surge, and the length of its usage time cannot be known in advance. An online leasing strategy ON was then developed to achieve the minimum possible acquisition cost for the scarce resource. This strategy was proven to be the optimal online strategy through competitive analysis. Computational experiments were conducted to evaluate the performance of the proposed online strategy. Furthermore, sensitivity analysis of the problem parameters shows that increasing resource reserves and reducing the price-to-rent ratio are effective ways to improve the performance of enterprise leasing operation management for scarce resources.

Keywords: online leasing problem; competitive analysis; scarce resource; low-carbon economy (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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