Online Leasing Strategies And Its Competitive Analysis Considering The Time Value Of The Equipment And The Currency

The leasing decision-making problem is an online decision-making problem,for the investor who pursures the cost as low as possible needs to make a decision on whether to lease and how to lease under the condition of the unknown future.Online algorithms and competitive analysis don’t need t make any statistical assumptions about the future and only make decisions based on the known information.Such characteristic makes them suitable for the study of the leasing problem.For financial investment activities,the factor time value is of importance to investors’ return,and the equipment and the currency are related to the time value in the leasing process.Thus,from the perspective of the lessee,this paper considers the time value of the equipment and the currency,applies the online algorithm and competitive analysis to construct optimal online leasing strategies to provide investors with effective guidance and make the cost as low as apossible.By summarizing the existing researches and combining with the current development of the leasing market,some innovations for the online leasing models are made and listed as follows.Firstly,from the perspective of the time value of the equipment,this paper further considers opportunity cost based on the existing online leasing model for depreciable equipment,and gives out the competitive deterministic strategy and randomized strategy.Secondly,in view of the time value of the currency,the study of the online leasing problem is divided into two categories.For domestic transactions in the same currency,we introduce factors which are interest rate and incremental discount to construct the competitive online operating leasing strategy and online financial leasing strategy.For overseas transactions in different currencies,we introduce exchange rate to construct the competitive online operating leasing strategy and online financial leasing strategy.Finally,referring to the actual leasing market,the numerical analysis is executed for the designed strategies.The results illustrated that: for the equipment with time value,considering the opportunity cost contributes to improve the performance of the online leasing strategies for depreciable equipment,and the randomized strategy peforms better than the deterministic strategy;for the currency with time value,the online financial leasing strategy has excellent performance compared with the online operating leasing strategy,which illustrates that the choice of financial leasing is better than the choice of purchase.Moreover,the introduction of interest rate can make the strategies peform better,which implies that considering the present value of the future currency can make the investment decision more effective in the actual investment activities.The fluctuation of the exchange rate will affect the competitive performance of the online leasing strategies,and the larger fluctuation will make the strategies peform worse.Therefore,a stable international economic environment is favorable to the leasing activities of the lessee.This paper combines the actual leasing background to study online leasing problem and innovate online leasing models,which can enrich and improve the theory of the online leasing decision-making on the one hand,and can provide effective reference for investors.