“Designing an Intervention Strategy for Public-interest Goods: The California Electric Vehicle Market Case”
by Ece Zeliha Demirci
Eindhoven University of Technology
Public-interest goods are known as goods with positive externalities, allowing the consumers as well as others who do not pay for them benefit from their consumption. Health related goods, such as vaccines, or products with less carbon emissions are well known examples. Wider adoption of such goods are generally ensured via the intervention of a central authority in their supply chain. The main goal of the central authority is to design and fund an intervention scheme so that decisions of the channel are in line with the benefit of society. In this study, we explore the intervention problem for a public-interest good by considering a system composed of a retailer and a central authority. The central authority regulates the system by two intervention tools applied simultaneously: (i) investing in demand-increasing strategies; and (ii) rebates. We introduce a model that determines a social welfare maximizing intervention scheme and further investigate the model. Finally, we conduct a case study for California’s electric vehicle market and validate our findings by a detailed analysis of the results.
Bio: Dr. Ece Zeliha Demirci received her B.S., M.S., and Ph.D. degrees from Industrial Engineering Department of Bilkent University. Currently, she is a postdoctoral researcher at the Industrial Engineering and Innovation Sciences Department of Eindhoven University of Technology. Her research interests are supply chain management, sustainable operations, inventory theory, maintenance and spare parts planning.