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2757 items in total found

Working Papers | 2020

Incubation in India – A Multilevel Analysis

Supriya Sharma and Neharika Vohra

This chapter undertakes a multi-level analysis of incubation in India with an objective to assess the landscape of incubation, the role and impact of incubators on startups, and understand challenges faced both by incubators and incubatees. Secondary data from 284 incubators across India and four largest incubator support schemes, survey of 22 incubation centres funded by a support scheme, and in-depth interviews of incubated entrepreneurs were collected and analysed. The purpose, objectives, processes and success metrics of incubators specific to Indian context are discussed. Contributions from this chapter will be useful to researchers, policy makers and incubation champions. The chapter may be of particular relevance to countries that are developing strong startup and incubation ecosystems.

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Working Papers | 2020

Development of Utility Function for Vehicle Insurance: Comparison of Logarithmic Goal Programming Method and Conjoint Analysis Method

Sumeetha R. Natesan and Goutam Dutta

The increase in competition among the vehicle insurance sectors has increased the number of policy options available in the market. This study focuses on the development of a utility function for these policies that will aid policy holders and potential investors in comparing them based on various attributes. A comparison of various vehicle insurance policies can help the customers to compare and choose a vehicle insurance that is suitable to them. Although there are several methods for developing a utility function, in this study, we intend to develop a linear utility model for vehicle insurance policies using two approaches: Logarithmic Goal Programming Model (LGPM) and Conjoint Analysis Method (CAM). We propose to compare the similarities and differences between the results obtained from LGPM and CAM approaches, used for developing the utility function for vehicle insurance policies. We also derive a choice probability of the vehicles insurance policies available in market by developing a multinomial logit choice model. We also study the consistency indicators of the respondents. We will provide useful insights for the use both approaches as research tools.

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Working Papers | 2020

A Mathematical Programming Approach with Revenue Management in Home Loan Pricing (Revised as on 20-12-2021)

Goutam Dutta, Sumeetha R. Natesan, Deepika Thakur, and Manoj K. Tiwari

This paper enumerates the benefits of revenue management to the banks and the points to be considered while creating a revenue management and dynamic pricing model. Further it explains the differences in the application of these concepts to the financial sector as opposed to other sectors. We then delve into the method of giving home loans after identifying the major parameters that play a role in it. We formulate a dynamic pricing model for home loans for a bank. The model optimizes the net present value of money available subject to pricing limits, cash flows. It also considers the default probability as a function of interest rate. We then assume different versions of demand function. We consider when demand function is given by a straight line, an exponential function and by rectangular hyperbola. In all the three cases we have demonstrated that the dynamic pricing of home loans does yield better results than the currently used static pricing.

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Working Papers | 2019

Alternate Solution Approaches for Competitive Hub Location Problems

Richa Tiwari, Sachin Jayaswal, and Ankur Sinha

In this paper, we study the hub location problem of an entrant airline that tries to maximize
its share in a market with already existing competing players. The problem is modelled as a nonlinear
integer program, which is intractable for off-the-shelf commercial solvers, like CPLEX and
Gurobi, etc. Hence, we propose four alternate approaches to solve the problem. The first among
them uses the Kellys cutting plane method, the second is based on a mixed integer second order
conic program reformulation, the third uses the Kellys cutting plane method within Lagrangian
relaxation, while the fourth uses second order conic program within Lagrangian relaxation. The
main contribution of this paper lies in the fourth approach, which along with refinements is the
most efficient. Many of the problem instances that were not solvable using standard techniques,
like the Kellys cutting plane method, have been solved in less than 2 hours of CPU time within
1% optimality gap.

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Working Papers | 2019

Competitive Hub Location Problems: Model and Solution Approaches

Richa Tiwari, Sachin Jayaswal, and Ankur Sinha

In this paper, we study the hub location problem of an entrant airline that tries to maximize
its market share, in a market with already existing competing players. The routes open for use can
be either of multiple allocation or single allocation type. The entrants problem is modelled as a
non-linear integer program in both the situations, which is intractable for off-the-shelf commercial
solvers, like CPLEX and Gurobi, etc. Hence, we propose four alternate approaches to solve the
problem. The first is based on a mixed integer second order conic program reformulation, while
the second uses lifted polymatroid cuts based approximation of second order cone constraints.
The third is the second order conic program within Lagrangian relaxation, while the fourth uses
approximated lifted polymatroid cuts within lagrangian relaxation. The four methods performs
differently for the single allocation and multiple allocation models, and second approach is the best
for single allocation model and for smaller instances in multiple allocation model. As the problem
size in multiple allocation model increases, the third method starts to be the better performer in
terms of computation time.

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Working Papers | 2019

Alternate Second Order Conic Programming Reformulations for Hub Location with Capacity Selection under Demand

Sneha Dhyani, Sachin Jayaswal, Ankur Sinha, and Navneet Vidyarthi

In this paper, we study the single allocation hub location problem with capacity
selection in the presence of congestion at hubs. Accounting for congestion at hubs leads
to a non-linear mixed integer program, for which we propose 18 alternate mixed integer
second order conic program (MISOCP) reformulations. Based on our computational
studies, we identify the best MISOCP-based reformulation, which turns out to be 20-60
times faster than the state-of-the-art. Using the best MISOCP-based reformulation, we
are able to exactly solve instances up to 50 nodes in less than half-an-hour. We also
theoretically examine the dimensionality of the second order cones associated with different
formulations, based on which their computational performances can be predicted.
Our computational results corroborate our theoretical findings. Such insights can be
helpful in the generation of efficient MISOCPs for similar classes of problems.

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Working Papers | 2019

'Allottees' as financial creditors: pushing the conceptual limits of the Indian insolvency regime

M.P. Ram Mohan and Vishakha Raj

The Insolvency and Bankruptcy Code, 2016 (IBC) was amended in June 2018 to include amounts raised from an allottee (any person to whom an apartment or plot in a real estate project has been allotted or sold) in a real estate project within the definition of 'financial debt' thereby recognising allottees as financial creditors. Though the Supreme Court of India has upheld the constitutional validity of the amendment, its rationale raises concerns about the purpose of the Indian insolvency regime. Through the amendment, Parliament appears to have operationalised the insolvency regime to solve a sectoral problem, namely, mismanagement in the real estate sector. This paper posits that the amendment was enacted at the cost of stretching the definition of 'financial creditor' beyond its conceptual limit and interfering with the IBC's insolvency resolution mechanism. It also examines the basis of the inclusion of allottees within the IBC and uses past decisions of the IBC's adjudicating authorities as a reference for its analysis. The paper concludes that the reasons supporting the inclusion of allottees within the definition of a 'financial creditor' are less persuasive than those which favour its exclusion.

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Working Papers | 2019

Ripples on financial networks

Sudarshan Kumar, Avijit Bansal, and Anindya S. Chakrabarti

In the financial markets, asset returns exhibit collective dynamics masking individual impacts on the rest of the market. Hence, it is still an open problem to identify how shocks originating from one particular asset would create spillover effects across other assets. The problem is more acute when there is a large number of simultaneously traded assets, making the identification of which asset affects which other assets even more difficult. In this paper, we construct a network of the conditional volatility series estimated from asset returns and propose a many-dimensional VAR model with unique identification criteria based on the network topology. Because of the interlinkages across stocks, volatility shock to a particular asset propagates through the network creating a ripple effect. Our method allows us to find the exact path the ripple effect follows on the whole network of assets.

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Working Papers | 2019

Steering the Macroeconomy with a Broken Compass and Stuck Rudder?

Sebastian Morris

In this paper we bring together the findings of Subramanian, A. (2019) and Morris and Kumari (2019), and others to claim that the problems with the new national income series are real and need to be addressed. The CPI11-12 too is problematic since the weight of basic food in the CPI11-12 is as high as 45% when there is no wat the same could have been more than 34%. As a result macroeconomic policy may have been handicapped pushing it to restrictive especially monetary policies that may have been one of the underlying causes of the current recession in the economy.

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Working Papers | 2019

Real Estate and Infrastructure Resolution

Jayanth R. Varma and Sebastian Morris

We propose a mechanism that uses the financial markets to mobilize the resources of a large population of investors, to revive the impaired assets in the real sector in India today. This should also allow the economy to escape from the strangle hold of the "doom loop", in which the financial sector, the infrastructure and real estate sectors and the economy in general through their feedback effects on each other, portend to take the economy deeper into the recession. The mechanism where the government covers the left tail risk in infrastructure and real estate, has the potential to revive these assets to the benefit of the homebuyers, users and the public, with the government earning a handsome return, while being fair to the developers as well. With such a mechanism in place, in the future, developers would know that using distressed public value to their advantage would not be possible in the future.

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