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Sample records for calculation prices sundhedseffekter

  1. Sundhedseffekter af luftforurening-beregningspriser

    DEFF Research Database (Denmark)

    Andersen, M. S.; Frohn, L. M.; Jensen, S. S.;

    Denne rapport afrapporterer det fortsatte arbejde med udvikling af miljøøkonomiske beregningspriser. På grundlag af EcoSense 4.0 fra ExternE-projektet, er der foretaget nye beregninger af eksternaliteter ved luftforurening med sundhedseffekter. Samtidig giver rapporten en vurdering af luftspredni...

  2. Health effects from air pollution - calculation prices; Sundhedseffekter af luftforurening - beregningspriser

    Energy Technology Data Exchange (ETDEWEB)

    Skou Andersen, Mikael; Seested Nielsen, Jytte; Borgen Soerensen, Peter [DMU, Afdeling for Systemanalyse, Roskilde (Denmark); Frohn, Lise Marie; Solvang Jensen, Steen; Hertel, Ole; Brandt, Joergen; Christensen, Jesper [DMU, Afdeling for Atmosfaerisk Miljoe, Roskilde (Denmark)

    2004-10-01

    The basic aim of research focusing on the accounting of external effects is to provide estimates for the possible benefits of environmental policy projects. There is a demand within the field of environmental economic analysis for evaluations and estimates of the economic benefits arising from pollution reductions. Where benefits arising out of reduced emissions of harmful substances are concerned, these can be estimated according to the avoided damage costs associated with negative pollution impacts. A scientifically based method designed for this purpose has been developed in the pan-European ExternE project via the EU research programmes. The ExternE project has been implemented with the aim of estimating monetary values for externalities attached to air pollution accruing from energy production and transport. For this purpose, complex model-based environmental impact estimations have been coupled with corresponding monetary valuations via the modelling tool, Ecosense. A problem arising in relation to Ecosense methodology has been that externalities are often of local nature - pollution impact depending on the particular locality of the emission and dispersal characteristics in the surrounding environment. Therefore, the economic estimation of the impacts of pollution is based on a location-specific modelling system. (BA)

  3. 5 CFR 1645.5 - Calculation of share prices.

    Science.gov (United States)

    2010-01-01

    ... PRICES § 1645.5 Calculation of share prices. (a) Calculation of share price. The share price for each TSP... price for that fund for the current business day is the sum of the incremental change in the share price for the current business day plus the share price for the prior business day, truncated to two...

  4. Environmental economic calculation prices for emissions; Miljoeoekonomiske beregningspriser for emissioner

    Energy Technology Data Exchange (ETDEWEB)

    Skou Andersen, M.

    2010-05-15

    The project's aim has been to present updated environmental-economic calculation prices which make it possible to differentiate between traffic sources and stationary sources of air pollution. Furthermore, for the first time calculation prices for emissions to the aquatic environment and for the heavy metal lead are included. (ln)

  5. Enrollment Management's Sleeping Giant: The Net Price Calculator Mandate

    Science.gov (United States)

    Fallon, Mary A. C.

    2011-01-01

    Enrollment managers will be watching to see how recruitment strategies change when higher education's sleeping giant--net price calculators (NPCs)--wakes in the fall of 2011. Some predict yield projections may be more difficult and reputations will be challenged as prospective students, their families, high school counselors, and independent…

  6. In the Right Ballpark? Assessing the Accuracy of Net Price Calculators

    Science.gov (United States)

    Anthony, Aaron M.; Page, Lindsay C.; Seldin, Abigail

    2016-01-01

    Large differences often exist between a college's sticker price and net price after accounting for financial aid. Net price calculators (NPCs) were designed to help students more accurately estimate their actual costs to attend a given college. This study assesses the accuracy of information provided by net price calculators. Specifically, we…

  7. 5 CFR 1645.6 - Basis for calculation of share prices.

    Science.gov (United States)

    2010-01-01

    ... 5 Administrative Personnel 3 2010-01-01 2010-01-01 false Basis for calculation of share prices. 1645.6 Section 1645.6 Administrative Personnel FEDERAL RETIREMENT THRIFT INVESTMENT BOARD CALCULATION OF SHARE PRICES § 1645.6 Basis for calculation of share prices. The total fund basis for a TSP...

  8. Importance of Delivery Conditions in the External Price Calculation

    OpenAIRE

    Violeta ISAI; Riana Iren RADU

    2005-01-01

    The delivery conditions of the merchandise at export, established by the rules INCOTERMS 2000, influence the external price structure. There are some conditions in which the external price includes only the value of the merchandise and other conditions in which, besides the value of the merchandise, the price includes also the external transport and insurance. In the case of the exports on commercial credit, when it appears the notion of external interest, this one may be included in the pric...

  9. IMPORTANCE OF DELIVERY CONDITIONS IN THE EXTERNAL PRICE CALCULATION

    Directory of Open Access Journals (Sweden)

    Violeta ISAI

    2005-01-01

    Full Text Available The delivery conditions of the merchandise at export, established by the rules INCOTERMS2000, influence the external price structure. There are some conditions in which the external priceincludes only the value of the merchandise and other conditions in which, besides the value of themerchandise, the price includes also the external transport and insurance. In the case of the exportson commercial credit, when it appears the notion of external interest, this one may be included in theprice or may be invoiced separately, thus defining gross external prices and net external prices.

  10. Applying Activity Based Costing (ABC Method to Calculate Cost Price in Hospital and Remedy Services

    Directory of Open Access Journals (Sweden)

    A Dabiri

    2012-04-01

    Full Text Available Background: Activity Based Costing (ABC is one of the new methods began appearing as a costing methodology in the 1990. It calculates cost price by determining the usage of resources. In this study, ABC method was used for calculating cost price of remedial services in hospitals.Methods: To apply ABC method, Shahid Faghihi Hospital was selected. First, hospital units were divided into three main departments: administrative, diagnostic, and hospitalized. Second, activity centers were defined by the activity analysis method. Third, costs of administrative activity centers were allocated into diagnostic and operational departments based on the cost driver. Finally, with regard to the usage of cost objectives from services of activity centers, the cost price of medical services was calculated.Results: The cost price from ABC method significantly differs from tariff method. In addition, high amount of indirect costs in the hospital indicates that capacities of resources are not used properly.Conclusion: Cost price of remedial services with tariff method is not properly calculated when compared with ABC method. ABC calculates cost price by applying suitable mechanisms but tariff method is based on the fixed price. In addition, ABC represents useful information about the amount and combination of cost price services.

  11. Inter ISO Market Coordination by Calculating Border Locational Marginal Prices

    Directory of Open Access Journals (Sweden)

    BABIC, A. B.

    2013-05-01

    Full Text Available In this paper the methodology for solving Locational Marginal Price (LMP differences (inconsistency of LMPs that arise at the boundary buses between separate power markets is proposed. The algorithm developed enables us to obtain consistent LMP values at the boundary buses between interconnected ISOs. A Primal-Dual Interior Point based optimal power flow (OPF is applied, with complete set of power system physical limit constraints, to solve a regional spot market. The OPF is implemented such that producer and consumer behaviors are modeled simultaneously, while the welfare is maximized. In this paper a generalized methodology for multiple ISOs case is proposed and later it is practically applied on two interconnected independent entities. The algorithm for approximation of cost coefficients of generators and dispatchable loads for neighboring ISOs is proposed. The developed algorithm enables participating ISOs to obtain LMPs at the boundary buses with other interconnected ISOs. By controlling interchange of electric power at the scheduled level, regional spot markets are resolved eliminating possible exercise of market power by individual interconnected ISOs. Results of proposed methodology are tested on the IEEE 118-bus power system.

  12. Optimal electricity price calculation model for retailers in a deregulated market

    International Nuclear Information System (INIS)

    The electricity retailing, a new business in deregulated electric power systems, needs the development of efficient tools to optimize its operation. This paper defines a technical-economic model of an electric energy service provider in the environment of the deregulated electricity market in Spain. This model results in an optimization problem, for calculating the optimal electric power and energy selling prices that maximize the economic profits obtained by the provider. This problem is applied to different cases, where the impact on the profits of several factors, such as the price strategy, the discount on tariffs and the elasticity of customer demand functions, is studied. (Author)

  13. Calculation of slope-cover height under price fluctuation in open-pit mines

    Institute of Scientific and Technical Information of China (English)

    Ma Jinyan; Cai Qingxiang; Liu Fuming; Chen Shuzhao

    2014-01-01

    Leaving ditches between adjacent mining areas can effectively reduce re-stripping in the latter mining area and simultaneously lead to an increment in internal dumping costs in the former mining area. This paper establishes calculation models for these two marginal costs. The optimizing model for slope cover height can be determined by including marginal cost models in the objective function. The paper has two main contributions:(a) it fully considers redistribution of dumping space in the model;(b) it introduces price fluctuations and cash discounts in the model. We use the typical open-pit mine as an example to test and prove the model. We conclude that a completely covered slope is reasonable in Haerwusu open pit mine;in addition to an increasing price index, the slope cover height can be reduced;and that price changes are one of the most important influencing factors of slope cover height optimization in an open-pit mine.

  14. A lesson in market contestability : calculating the cost of Chinese state intervention in iron ore price negotiations

    OpenAIRE

    Luke Hurst

    2015-01-01

    This article analyses the motivation and impact of the 2009 intervention of the China Iron and Steel Association (CISA) in benchmark price negotiations. The impact of the transition from benchmark pricing to a spot market mechanism, which was a consequence of the CISA’s intervention, is examined using a constrained bilateral monopoly model to calculate the financial impact of switching pricing mechanisms on Australian exporters and Chinese importers.

  15. Calculation Method of Drug Price Index%药品价格指数编制方法探讨

    Institute of Scientific and Technical Information of China (English)

    倪钎; 史录文

    2011-01-01

    药品价格指数是衡量药品价格水平的重要工具.文章在价格指数理论指导下,从价格指数公式的选择、统计数据收集、代表药品选择、代表药品品种界定、药品数量和价格单位的处理以及"缺价"药品信息处理等多个方面着手,全面探讨了药品价格指数编制的方法,明确了不同的编制方法所代表的经济学意义.%Drug price index is an useful index to measure the overall price level of drug. Based on price index theory, the paper discusses the calculation methods of drug price index and the economic meanings of different methods. Topics discussed in this paper include: (1) how to choose a proper price index formula, (2) how to collect data, (3) how to select sample drugs, (4) how to define drug product (5) how to measure the quantity and the price of each drug product, (6) how to dispose the drug lacking of data. Calculation method of drug price index is explored comprehensively and the economic meaning of different calculation methods of drug price index is clarified.

  16. FORMATION OF EXPENSES AND CALCULATION OF COST PRICE LIVESTOCK PRODUCTS IN MANAGEMENT ACCOUNTING SYSTEM

    Directory of Open Access Journals (Sweden)

    Azieva Z. I.

    2016-09-01

    Full Text Available In order to effectively manage the organization senior managers need information on the performance of the centers of responsibility and profitability of major products. Therefore, the leadership task is to select a cost accounting system, which would provide the information needed to assess economic performance and management of the various departments. In the article, we consider the concept of methods of calculation of the cost price of livestock products by a direct-costing system, its feature, rationality and also shortcomings and dignity in current economic conditions. Based on the theoretical literature of national scientists on the overhead allocation methods, the authors developed the stages of distribution of indirect expenses between the objects of calculation. Based on the data of "Nezamaevskoe" we specify the composition and structure of costs in dairy farming that improve analytic accounting, and on this basis the validity of management decisions; a classification of costs underlying the modeling of accounting management. The authors proposed a method of accounting of variable and fixed costs in accounting and reflected in the accounting system of marginal income, as well as recommendations to improve the organization of management accounting costs

  17. A DYNAMIC APPROACH TO CALCULATE SHADOW PRICES OF WATER RESOURCES FOR NINE MAJOR RIVERS IN CHINA

    Institute of Scientific and Technical Information of China (English)

    Jing HE; Xikang CHEN; Yong SHI

    2006-01-01

    China is experiencing from serious water issues. There are many differences among the Nine Major Rivers basins of China in the construction of dikes, reservoirs, floodgates, flood discharge projects, flood diversion projects, water ecological construction, water conservancy management, etc.The shadow prices of water resources for Nine Major Rivers can provide suggestions to the Chinese government. This article develops a dynamic shadow prices approach based on a multiperiod input-output optimizing model. Unlike previous approaches, the new model is based on the dynamic computable general equilibrium (DCGE) model to solve the problem of marginal long-term prices of water resources.First, definitions and algorithms of DCGE are elaborated. Second, the results of shadow prices of water resources for Nine Major Rivers in 1949-2050 in China using the National Water Conservancy input-holding-output table for Nine Major Rivers in 1999 are listed. A conclusion of this article is that the shadow prices of water resources for Nine Major Rivers are largely based on the extent of scarcity.Selling prices of water resources should be revised via the usage of parameters representing shadow prices.

  18. Calculating the Price of a Kind of Option by Law of One Price%由一价律确定一类标的资产价格离散时期权的价格

    Institute of Scientific and Technical Information of China (English)

    王素琴

    2011-01-01

    本文利用构造等价资产、一价律,给出了一类离散价格标的资产的期权定价公式,揭示了这类标的资产期权价格的实际意义,同时也给出了利用结论指导如何进行期权的实际投资。%In this paper,to disperse price asset,its option price is calculated by Law of One Price.Then,the price meaning and how to invest option are explained.

  19. Norwegian electricity market liberalisation: questions of cost calculation and price definition by grid operators

    International Nuclear Information System (INIS)

    This report for the Swiss Federal Office of Energy (SFOE) presents the results of a study carried out on the Norwegian electricity market 10 years after its liberalisation. The similarity of the Norwegian market to the Swiss electricity market is discussed. Similarly to the proposed situation in Switzerland, the liberalisation in Norway foresaw no privatisation of public utilities and a model for the regulation of grid access was introduced. The report describes and comments on the various phases in which the liberalisation occurred and examines the various instruments used, e.g. to ensure that individual grid operators did not make undue profits from their monopoly. The methods used for the monitoring of grid operators' costs are described and the mechanisms involved in the definition of prices for grid services are examined, including measures taken when profits were too high or too low. The report is concluded with a discussion of the conclusions that can be drawn from the Norwegian model for Swiss market opening efforts

  20. PRICE AND PRICING STRATEGIES

    OpenAIRE

    Titus SUCIU

    2013-01-01

    In individual companies, price is one significant factor in achieving marketing success. In many purchase situations, price can be of great importance to customers. Marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Management should decide whether to charge the same price to all similar buyers of identical quantities of a product (a one-price strategy) or to set different prices (a flexible price strategy). Many organizations, especially retai...

  1. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas

    On April 1, 2005, Denmark changed the way references prices, a main determinant of reimbursements for pharmaceutical purchases, are calculated. The previous reference prices, which were based on average EU prices, were substituted to minimum domestic prices. Novel to the literature, we estimate the...

  2. The Establishment,Calculation and Application of Benchmarking Housing Price System%基准房价体系的构建、测算及应用

    Institute of Scientific and Technical Information of China (English)

    李妍; 汪友结

    2013-01-01

    In order to improve the sufficiency of benchmarking housing price in housing market,we have developed the concept of benchmarking housing price from district to unit price and identified its connotation. As a result,we have established a multi-level benchmarking housing price system,unit to building to community to district. In this context,we have built a practical calculation model of benchmarking housing price by utilizing the mass appraisal and full coverage of statistical sampling techniques. Moreover, GIS technology is introduced to price calculation and to build the application platform. Therefore,this has provided a theoretical framework and practical experiences of benchmarking housing price system to other cities in China for further references.%  为有效改变当前我国房地产价格种类繁多但缺乏权威性基准价格的现状,在科学借鉴国内外先进实践经验的基础上,将“基准房价”概念从“片区价”升华至“一房一价”并明确界定其基本内涵,提出了“房屋基准价→楼栋基准价→楼盘基准价→片区基准价”的多层次基准房价体系;通过引入批量评估技术和全样本统计技术,构建真正意义上的基准房价测算模型--整体估价模型和全样本统计模型;深入探索并全面拓展基准房价体系的应用方法及应用领域,并运用 GIS 技术设计完成基准房价测算与应用平台,从而为我国各城市构建基准房价体系提供了可供借鉴的理论框架与实践参考。

  3. The criteria for setting the natural gas reference price for purposes of government take calculation; Os criterios para fixacao do preco de referencia do gas natural para fins de calculo das participacoes governamentais

    Energy Technology Data Exchange (ETDEWEB)

    Lima, Flavio Augusto Pimentel de; Rosa, Renata Gualberto Cordeiro [PETROBRAS, Rio de Janeiro, RJ (Brazil)

    2008-07-01

    The Petroleum Law states that the concession contract will also have provisions regarding the government takes established by the bid tender. However, the criteria for calculating the value of Royalties are set forth in the Decree 2.705/98, enacted to set such criteria, taking into account the volumes of production and the reference prices for oil and natural gas. The following aspects are analyzed in this paper: the method for calculating the volumes subject to the impact of Royalties; definition of the reference price for natural gas, the general rule for setting up the reference price in case the sale was made at market price; the special rule in case the sale was not made on a market basis, in case there is no sale or in case of breach of the conditions set in that Decree; and the settlement of the reference price in situations where only part of the volumes produced are sold on contracts that meet the requirements of the Decree. In conclusion the problems caused by gaps in legislation will be highlighted, particularly with regard to concessions granted to consortia as well as the inconsistencies between the applicable legislation, which may provide different analysis, including by the ANP, according to the features of each case. (author)

  4. Predatory Pricing

    OpenAIRE

    Edlin, Aaron S.

    2010-01-01

    Judge Breyer famously worried that aggressive prohibitions of predatory pricing throw away a bird in hand (low prices during the alleged predatory period) for a speculative bird in the bush (preventing higher prices thereafter). Here, I argue that there is no bird in hand because entry cannot be presumed. Moreover, it is plausibly commonplace that post‐entry low prices or the threat of low prices has anticompetitive results by reducing entry and keeping prices high pre‐entry and post‐predat...

  5. 计及供电可靠性的配电网节点电价计算方法%Calculation Method of Nodal Price in Distribution Network Considering Power Supply Reliability

    Institute of Scientific and Technical Information of China (English)

    周晶晶; 袁越; 李振杰; 李芙蓉; 杨清; 包江民

    2016-01-01

    节点电价提供的价格信号能够有效引导电网建设和用户的消费行为.文中基于长期增量成本法,提出了计及供电可靠性的配电网节点电价计算方法.该方法综合考虑了用户对供电可靠性的要求以及负荷增长对区域供电可靠性的影响两个方面.根据用户的不同需求进行差别定价,并对区域不同可靠性水平的电价进行加权平均,得到一个差别定价与区域平均电价相结合的配电网节点电价定价体系.RBTS-BUS6系统算例分析表明,该方法既保证了用户特殊需求,提供的电价信息也有利于电网建设运行维护方案的制订,且更具操作性.%Price signals provided by the nodal price can effectively guide the behaviors of power grid constructors and consumers.Based on the long-term incremental cost method,a nodal price calculation method taking power supply reliability into account is proposed.The method takes into consideration the consumers"requirements on power supply reliability as well as the influence of load growth on regional power supply reliability.Differential pricing according to the needs of different types of consumers is proposed,and the weighted average of price according to different regional reliability levels is calculated.Then a nodal pricing system of distribution network with differential pricing and regional average price combined is developed. Finally,an analysis of results of the RBTS-BUS 6 system shows that not only does the method ensure the special needs of consumers,the price signals provided,being helpful to decision-making of power grid construction,operation and maintenance plans,are more operable.

  6. Transfer Pricing

    DEFF Research Database (Denmark)

    Nielsen, Søren Bo

    2014-01-01

    Against a background of rather mixed evidence about transfer pricing practices in multinational enterprises (MNEs) and varying attitudes on the part of tax authorities, this paper explores how multiple aims in transfer pricing can be pursued across four different transfer pricing regimes. A MNE h...

  7. Gold prices

    OpenAIRE

    Joseph G. Haubrich

    1998-01-01

    The price of gold commands attention because it serves as an indicator of general price stability or inflation. But gold is also a commodity, used in jewelry and by industry, so demand and supply affect its pricing and need to be considered when gold is a factor in monetary policy decisions.

  8. Poverty, Policy and Price Transmission

    DEFF Research Database (Denmark)

    Elleby, Christian

    predictions are tested on aggregate food price data and results are found to corroborate the theory. The second paper estimates the relative contribution of regional and global shocks to changes in domestic food prices in 105 countries over the period 1995-2010 within a dynamic latent factor model framework...... of the real food price process based on which dynamic forecasts and historical decompositions are calculated. Results indicate that, despite the low degree of pass-through from international to domestic rice prices, food prices in general grew as fast as expected or faster, given the surge...

  9. Personal Finance Calculations.

    Science.gov (United States)

    Argo, Mark

    1982-01-01

    Contains explanations and examples of mathematical calculations for a secondary level course on personal finance. How to calculate total monetary cost of an item, monthly payments, different types of interest, annual percentage rates, and unit pricing is explained. (RM)

  10. Pricing Options.

    Science.gov (United States)

    Tenopir, Carol

    1998-01-01

    Presents results of a recent survey of over 100 public and academic libraries about pricing options from online companies. Most options fall into three categories: pay-as-you-go, fixed-rate, and user-based. Results are discussed separately for public and academic libraries and for consortial discounts. Trends in pricing options preferred by…

  11. Transfer Pricing

    DEFF Research Database (Denmark)

    Rohde, Carsten; Rossing, Christian Plesner

    trade internally as the units have to decide what prices should be paid for such inter-unit transfers. One important challenge is to uncover the consequences that different transfer prices have on the willingness in the organizational units to coordinate activities and trade internally. At the same time...

  12. Gas prices and price process

    International Nuclear Information System (INIS)

    On a conference (Gas for Europe in the 1990's) during the Gasexpo '91 the author held a speech of which the Dutch text is presented here. Attention is paid to the current European pricing methods (prices based on the costs of buying, transporting and distributing the natural gas and prices based on the market value, which is deducted from the prices of alternative fuels), and the transparency of the prices (lack of information on the way the prices are determined). Also attention is paid to the market signal transparency and gas-gas competition, which means a more or less free market of gas distribution. The risks of gas-to-gas competition for a long term price stability, investment policies and security of supply are discussed. Opposition against the Third Party Access (TPA), which is the program to implement gas-to-gas competition, is caused by the fear of natural gas companies for lower gas prices and lower profits. Finally attention is paid to government regulation and the activities of the European Commission (EC) in this matter. 1 fig., 6 ills., 1 tab

  13. Price increase

    CERN Multimedia

    2006-01-01

    Please take note that after five years of stable prices at Restaurant No 1 a price increase will come into force on 1st January 2006. This increase has been agreed after discussions between the CSR (Comité de Surveillance des Restaurants) and the catering company Novae and will reflect the inflation rate of the last few years. In addition, a new children's menu will be introduced, as well as 'Max Havelaar' fair-trade coffee at a price of 1.70 CHF.

  14. Price increase

    CERN Multimedia

    2005-01-01

    Please take note that after five years of stable prices at Restaurant No 1 a price increase will come into force on 1st January 2006. This increase has been agreed after discussions between the CSR (Comité de Surveillance des Restaurants) and the catering company Novae and will reflect the inflation rate of the last few years. In addition, a new children's menu will be introduced as well as 'Max Havelaar' fair-trade coffee at a price of 1.70 CHF.

  15. Norwegian electricity market liberalisation: questions of cost calculation and price definition by grid operators; Norwegische Elektrizitaetsmarktoeffnung: Kostenrechnungs- und Preisbildungsfragen der Netzgesellschaften

    Energy Technology Data Exchange (ETDEWEB)

    Wild, J.; Vaterlaus, S.

    2002-07-01

    This report for the Swiss Federal Office of Energy (SFOE) presents the results of a study carried out on the Norwegian electricity market 10 years after its liberalisation. The similarity of the Norwegian market to the Swiss electricity market is discussed. Similarly to the proposed situation in Switzerland, the liberalisation in Norway foresaw no privatisation of public utilities and a model for the regulation of grid access was introduced. The report describes and comments on the various phases in which the liberalisation occurred and examines the various instruments used, e.g. to ensure that individual grid operators did not make undue profits from their monopoly. The methods used for the monitoring of grid operators' costs are described and the mechanisms involved in the definition of prices for grid services are examined, including measures taken when profits were too high or too low. The report is concluded with a discussion of the conclusions that can be drawn from the Norwegian model for Swiss market opening efforts.

  16. Petroleum price

    International Nuclear Information System (INIS)

    The oil market is the most volatile of all markets, with the exception of the Nasdaq. It is also the biggest commodity market in the world. Therefore one cannot avoid forecasting oil prices, nor can one expect to avoid the forecasting errors that have been made in the past. In his report, Joel Maurice draws a distinction between the short term and the medium-long term in analysing the outlook for oil prices. (author)

  17. Restaurant prices and the minimum wage

    OpenAIRE

    Fougère, Denis; Gautier, Erwan; Le Bihan, Hervé

    2009-01-01

    In this paper, we examine the e¤ect of the minimum wage on restaurant prices.We contributeboth to the study of economic impact of the minimum wage and to the study of microeconomicpatterns of price stickiness. For this purpose, we use a unique dataset of individual price quotescollected to calculate the Consumer Price Index in France and we estimate a price rigidity modelbased on a ?exible (S; s) rule. We ?nd a positive and signi?cant impact of the minimum wageon prices. The e¤ect of the mini...

  18. Calculating the price of tanks, vessels and process equipment of petrochemical industry second criteria of integrity and survival remaining of API RP 579 (Fitness for service); Calculo do preco de tanques, vasos e equipamentos de processo da industria petroquimica segundo criterios de integridade e sobrevida remanescente do API RP 579 (Fitness for service)

    Energy Technology Data Exchange (ETDEWEB)

    Morato, Paulo Cesar Vidal Morato [Petroleo Brasileiro S.A. (PETROBRAS), Rio de Janeiro, RJ (Brazil)

    2012-07-01

    By owning many tanks, vessels and process equipment, PETROBRAS has developed the concept of 'Fitness-For-Service' (suitability for use) under the standard API RP 579, i.e. to verify the structural integrity and remaining useful life of equipment in service. In this paper we will discuss how to calculate the remaining useful life of equipment used in accordance with such criteria and with this technical data, calculate the depreciated price. Steps: verification of applicability; surveys of the technical data of the equipment; surveys the minimum thickness of plating equipment over the years; calculation of the average annual rate of corrosion (tc); calculation of the required minimum thickness according to the criteria of API RP 579 (tr); calculation of remaining useful life (nr); calculation of the depreciated price (Vd) equipment. Conclusions: intended for evaluation of tanks price, vessels and process equipment according to API RP 579 concepts. Estimate the remaining useful life of equipment used and calculates the depreciated price. Scientific method based, consistent and robust, due to calculating established the remaining useful life. (author)

  19. Housing Price Fluctuations Across China: An Equilibrium Mechanism Perspective

    Institute of Scientific and Technical Information of China (English)

    ZHANG Hong; WENG Shaoqun; ZHOU Xuan

    2007-01-01

    The mechanisms affecting housing prices were studied using the equilibrium housing prices based on classic supply/demand theory. The fluctuations of the actual housing prices were then analyzed relative to the equilibrium prices. The equilibrium prices for each area were calculated from economic statistics and housing prices in 35 China metropolitan areas. The fluctuations of the actual prices are then manifested as functions of the equilibrium price, the mean reversion, and the autocorrelation coefficient. The results show that the equilibrium prices are determined by the basic economic conditions in China and that the equilibrium prices greatly affect the fluctuation of the actual prices, which return to the equilibrium price through self-adjustments. The data also shows that the actual prices in China have the trend of continuing to rise in the future.

  20. State energy price and expenditure report 1994

    International Nuclear Information System (INIS)

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs

  1. State energy price and expenditure report 1994

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1997-06-01

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs.

  2. Asset Price Fluctuation and Price Indices

    OpenAIRE

    Shiratsuka, Shigenori

    1999-01-01

    Since the late 1980s, the Japanese economy has experienced tremendous rise and fall of asset prices and large fluctuations of real economic activity, while the general price level has remained relatively stable. Such developments have raised the question of whether monetary policy should target asset prices rather than conventional price indices. This paper focuses on how to make use of information inherent with asset price fluctuations in the monetary policy judgment. To this end, it investi...

  3. Price controls and international petroleum product prices

    Energy Technology Data Exchange (ETDEWEB)

    Deacon, R.T.; Mead, W.J.; Agarwal, V.B.

    1980-02-01

    The effects of Federal refined-product price controls upon the price of motor gasoline in the United States through 1977 are examined. A comparison of domestic and foreign gasoline prices is made, based on the prices of products actually moving in international trade. There is also an effort to ascribe US/foreign market price differentials to identifiable cost factors. Primary emphasis is on price comparisons at the wholesale level, although some retail comparisons are presented. The study also examines the extent to which product price controls are binding, and attempts to estimate what the price of motor gasoline would have been in the absence of controls. The time period under consideration is from 1969 through 1977, with primary focus on price relationships in 1970-1971 (just before US controls) and 1976-1977. The foreign-domestic comparisons are made with respect to four major US cities, namely, Boston, New York, New Orleans, and Los Angeles. 20 figures, 14 tables.

  4. The Weird Vegetable Price

    Institute of Scientific and Technical Information of China (English)

    2011-01-01

    The Chinese Government faces the task of stabilizing vegetable prices to avoid steep increases and dips Fluctuations of vegetable prices in China have recently caused near panic in the domestic market.Purchase prices for farm produce are decreasing dramatically

  5. Calculation on water conservation price of forest with optimal control method in China%采用最优控制方法计算我国森林涵养水源的价格

    Institute of Scientific and Technical Information of China (English)

    张颖

    2011-01-01

    In order to better carry out the study on water conservation of forest and serve for the forest management, as well as to promote the development of forest ecological compensation, based on the theory of economic cybernetics and optimal control method, the accounting model of water conservation of forest was established and verified by collecting the data of forest area, rainfall, evaporation, runoff and gross domestic product (GDP) in 7 major river basins in China from 1999 to 2008. The calculated results show that the optimal water conservation price of forest was 1. 043 RMB Yuan/m3. This accounting model had statistical significance and economic meanings by testing. It can be concluded that the results in this paper have significant guidance for ecological benefit compensation of forest and water resources management in China.%为了更好地对我国森林涵养水源的价值进行研究和管理,促进森林生态补偿的发展,在相关研究的基础上,根据经济控制理论的知识,采用最优控制方法,通过收集我国7大流域森林面积、降雨量、蒸发量、径流量和GDP等数据,建立7大流域森林涵养水源的价格核算模型.结果表明:我国最优森林涵养水源的价格为1.043元/m3;所建森林涵养水源的核算模型具有统计学意义,也具有经济学含义.研究结果对森林生态效益补偿和水资源管理具有指导意义.

  6. Target Price Accuracy

    OpenAIRE

    Alexander G. Kerl

    2011-01-01

    This study analyzes the accuracy of forecasted target prices within analysts’ reports. We compute a measure for target price forecast accuracy that evaluates the ability of analysts to exactly forecast the ex-ante (unknown) 12-month stock price. Furthermore, we determine factors that explain this accuracy. Target price accuracy is negatively related to analyst-specific optimism and stock-specific risk (measured by volatility and price-to-book ratio). However, target price accuracy is positive...

  7. ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING

    Directory of Open Access Journals (Sweden)

    TÜNDE VERES

    2011-01-01

    Full Text Available The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from management accounting aspects to show out the role of the accounting system in the short term and long term pricing and transfer pricing decisions.

  8. Heterogeneity and option pricing

    NARCIS (Netherlands)

    Benninga, Simon; Mayshar, Joram

    2000-01-01

    An economy with agents having constant yet heterogeneous degrees of relative risk aversion prices assets as though there were a single decreasing relative risk aversion pricing representative agent. The pricing kernel has fat tails and option prices do not conform to the Black-Scholes formula. Impli

  9. How Do Drug Prices Respond to a Change from External to Internal Reference Pricing?

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Mendez, Susan J.

    We study the effects of a change in the way patient reimbursements are calculated on the prices of pharmaceuticals using quasi-experimental data for Denmark which switched from external (where reimbursements are based on prices of similar products in foreign countries) to internal reference pricing...... not find significant effects on our acute treatment. Moreover, the reform did only affect generics and did not impact original products or parallel imports....

  10. The Pricing of Payments

    OpenAIRE

    Krueger, Malte

    2009-01-01

    The pricing of payments has received increasing attention of regulators. In many cases, regulators are concerned that consumers do not face cost based prices. They argue that without cost based prices consumers will make inefficient choices. In this paper, it is argued that both, economics of scale and the particular laws governing pricing in two-sided markets provide a case against cost based pricing.

  11. Pricing of payments

    OpenAIRE

    Krüger, Malte

    2009-01-01

    The pricing of payments has received increasing attention of regulators. In many cases, regulators are concerned that consumers do not face cost based prices. They argue that without cost based prices consumers will make inefficient choices. In this paper, it is argued that both, economics of scale and the particular laws governing pricing in two-sided markets provide a case against cost based pricing.

  12. Share Prices and Investment

    OpenAIRE

    Michael Andersen; Robert Subbaraman

    1996-01-01

    In this paper we examine two related propositions: the efficiency of pricing of Australian shares and the influences of share prices on business investment. In line with similar studies overseas, we find that the Australian share market may deviate from efficient pricing over short time horizons but that there is little evidence of inefficiency over longer time horizons. To investigate the influence of share prices on investment decisions we use a simple model of real share prices to identify...

  13. One TV, One Price?

    OpenAIRE

    Imbs, J.; Mumtaz, H.; Ravn, M. O.; Rey, H.

    2009-01-01

    We use a unique dataset on television prices across European countries and regions to investigate the sources of differences in price levels. Our findings are as follows: (i) Quality is a crucial determinant of price differences. Even in an integrated economic zone as Europe, rich economies tend to consume higher quality goods. This effect accounts for the lion’s share of international price dispersion. (ii) Sizable international price differentials subsist even for the same television sets. ...

  14. Forecasting Stock Price in Tehran's Stock Market Using Evolutionary Strategies

    OpenAIRE

    Farshid Sabri; Abolfazl Mogadam

    2014-01-01

    This study aimed to forecast stock prices and daily stock returns of food products manufacturers, accepted in Tehran Stock Exchange, Using evolutionary strategies. The study was divided into two models. First, the time series of 14 variables related to price prediction, for a period of 5 years (2009 till 2013), was extracted to predict stock price. Then, the price for 19 statistical companies was calculated using evolutionary strategy and back propagation algorithm (Algorithm LM). In the used...

  15. Forecasting day ahead electricity spot prices: The impact of the EXAA to other European electricity markets

    OpenAIRE

    Florian Ziel; Rick Steinert; Sven Husmann

    2015-01-01

    In our paper we analyze the relationship between the day-ahead electricity price of the Energy Exchange Austria (EXAA) and other day-ahead electricity prices in Europe. We focus on markets, which settle their prices after the EXAA, which enables traders to include the EXAA price into their calculations. For each market we employ econometric models to incorporate the EXAA price and compare them with their counterparts without the price of the Austrian exchange. By employing a forecasting study...

  16. Price strategy and pricing strategy: terms and content identification

    OpenAIRE

    Panasenko Tetyana

    2015-01-01

    The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.

  17. Accounting Aspects of Pricing and Transfer Pricing

    OpenAIRE

    TÜNDE VERES

    2011-01-01

    The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from m...

  18. Negotiating commodity price risk

    International Nuclear Information System (INIS)

    A review of the negotiations that led to PrimeWest's acquisition of Northstar's Grand Forks property at the end of 1997 was presented as an example of dealing with commodity price risk in an asset purchase. The paper described the pricing environment at the time of negotiations, the oil price collar, and the closing results. In 1998 PrimeWest drilled nine out of ten successful wells which are currently producing at an average production rate of 2776 bpd. In the event, PrimeWest has been able to maintain good value in its Grand Forks property acquisition, despite low oil prices. It is believed that the oil price collar was the main component of value retention. The oil price collar was the mechanism to protect PrimeWest, should oil prices remain below the field price. It is believed that this transaction would not have occurred without the price collar. 5 tabs., 12 figs

  19. Gas transmission pricing

    International Nuclear Information System (INIS)

    The natural gas transmission system consists of facilities that are normally regarded as being a natural monopoly. This is a property the natural gas network share with the telecommunication and the electricity network. All of these networks have, to some degree, been deregulated during the last decades. The deregulation of the natural gas network was in Europe formalized when the gas directive was passed in the European Commission 22 June 1998. This directive opens for third party access to the transportation facilities in the natural gas network. Open network access is important in order to achieve gains from increased competition, and transmission tariffs are important in achieving this. Due to the technical nature of the gas network, several physical and technical threshold values exist. If such values are trespassed, only minor incremental deliveries in on part can cause significant unintended reductions elsewhere. When performing analyses on optimal operation of a natural gas network, it is therefore necessary to take into consideration these properties. In this paper the physical properties of the natural gas flow are modeled by taking into account the design parameters of the pipelines in the system and the effects of pressure difference between the nodes in the network. The connection between pressure difference and gas flow is handled with the Weymouth-equation. A quadratic optimization model is constructed in order to analyze operation of the network. This paper examines how the efficiency of the natural gas market is affected by the operation and pricing of the transmission system. The tariff regimes investigated include fixed fees, nodal pricing, Chao-Peck pricing and zonal pricing. An examination of the existing tariff-regime in the North-Sea will also be performed as well as a comparison with the above mentioned tariff mechanisms. To perform the analyses, an example network will be presented and analyzed. By combining the physical flow calculations

  20. Modelling Brewing Industry Pricing

    OpenAIRE

    Maier, T

    2012-01-01

    The aim of this contribution is to analyse the price behaviour of the second to eleventh strongest brewers on the Czech market on the basis of the price behaviour of the price leader, this being Plzeňskı Prazdroj (a member of SABMiller). Using monthly prices (the number of observations is generally 108 periods), is modelled the length of delay between the price leader and the other breweries making a price change. A linear regressive analysis is used to produce the model. The beer brands are...

  1. Cross-Price Elasticities of Demand Across 114 Countries

    OpenAIRE

    Regmi, Anita; Seale, James L. Jr

    2010-01-01

    This report presents a simple methodology for calculating cross-price elasticities across countries, using the Frisch own-price elasticity. Cross-price elasticities are calculated for 9 major consumption categories from the 1996 International Comparison Program data across 114 countries. The consumption categories are: food, beverage, and tobacco; clothing and footwear; education; gross rent, fuel, and power; house furnishings and operations; medical care; recreation; transport and communicat...

  2. Drug Pricing Reforms

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas;

    2015-01-01

    Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug...... prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures...... for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account....

  3. Pricing and Trust

    DEFF Research Database (Denmark)

    Huck, Steffen; Ruchala, Gabriele K.; Tyran, Jean-Robert

    We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non......-competitive (monopolistic) markets. We then introduce a regulated intermediate price above the oligopoly price and below the monopoly price. The effect in monopolies is more or less in line with standard intuition. As price falls volume increases and so does quality, such that overall efficiency is raised by 50%. However......, quite in contrast to standard intuition, we also observe an efficiency rise in response to regulation in oligopolies. Both, transaction volume and traded quality are, in fact, maximal in regulated oligopolies...

  4. International pharmaceutical price differences

    OpenAIRE

    Productivity Commission

    2001-01-01

    The study compares manufacturer prices in Australia and seven other countries for 150 pharmaceuticals listed on the Pharmaceutical Benefits Scheme (PBS), as at 30 June 2000. The comprehensive study found that prices in the USA are between 80 to 160 per cent higher than in Australia, and prices in Canada, the UK and Sweden are around 50 per cent higher. Prices in Australia are closer to those in France, and about the same as those in Spain and New Zealand.

  5. The Share Price Puzzle

    OpenAIRE

    Edward A. Dyl

    2006-01-01

    We document substantial variation in the prices of common stocks in U.S. markets due to firms selecting particular price ranges for their shares. Cross-sectional evidence indicates that variables consistent with Merton's model of capital market equilibrium explain roughly two-thirds of this variation in share prices. In addition, measures of trading range and share price appreciation predict stock splits, and the "investor base" of firms that split their stock increases compared to other firm...

  6. Price Stickiness and Inflation

    OpenAIRE

    Richard De Abreu Lourenco; David Gruen

    1995-01-01

    A recent model of firms’ pricing behaviour by Laurence Ball and Gregory Mankiw has novel implications for the effect of relative price shocks on inflation. This paper examines these implications and establishes the importance of expected inflation for this story. We derive the model relationship between expected inflation, the economy-wide distribution of industry price changes and actual inflation, and show that both Australian and US industry-price data strongly support this derived relatio...

  7. International house prices

    OpenAIRE

    Australian Treasury

    2003-01-01

    This article examines developments in house prices in a number of countries over recent years. It shows that while the magnitude of house price movements have differed across countries, the recent trend of rising prices in Australia has also been experienced in some other developed countries. This article also examines changes in housing affordability arising from changes in house prices, interest rates, housing debt and disposable income in the United Kingdom, Australia and the United States...

  8. NUKEM adjusts price definitions

    International Nuclear Information System (INIS)

    This article is the October-November 1994 market report, providing trading volume and prices in the Uranium market. During this period, there were five deals in the spot concentrates market, five deals in the medium and long-term market, one deal in the conversion market, and two deals in the enrichment market. Restricted prices strengthened while unrestricted prices held steady. Price re-definitions were also announced

  9. Electricity deregulation, spot price patterns and demand-side management

    International Nuclear Information System (INIS)

    This paper examines extensive hourly or half-hourly power price data from 14 deregulated power markets. It analyzes average diurnal patterns, relationship to system load, volatility, and consistency over time. Diurnal patterns indicate the average price spread between off-peak and on-peak and weekend vs. weekday power consumption. Volatility is measured by price velocity: the average normalized hourly change in power price, calculated daily. The calculated price velocity is broken down into an expected component that arises from the diurnal pattern and an unexpected component that arises from unknown factors. The analysis reveals significant differences among markets, suggesting that demand-side management (DSM) of power consumption is far more difficult in some markets than in others. At one extreme, Spain, Britain and Scandinavia show consistent diurnal price patterns, a stable relationship between price and system load, and a low unexplained component of price volatility. A power consumer in these markets could form a reasonable expectation of a reward for DSM of elective power consumption. At the other extreme, two markets in Australia show erratic diurnal price patterns from year to year, low correlation between price and system load, and a high amount of unexpected price velocity. A power consumer in these markets would have far greater difficulty in realizing a benefit from DSM. Markets that experienced one period of very high prices without a clear external cause, such as California and Alberta, appear to have a significant longer-term erosion of public support for deregulation. (author)

  10. Swedish district heating - owners, prices and profitability

    International Nuclear Information System (INIS)

    Owners, prices and profitability are examined in this report for 152 Swedish district heating companies during 1999. Only public information available has been used: Prices from a national annual consumer study, energy supplied, lengths of district heating pipes installed, and average prices for energy supplied. These companies are responsible for 96 % of all district heat supplied in Sweden. District heating systems owned by municipalities were responsible for 65 % of all district heat supply, while the share of power companies was 34 %. Other private owners accounted for 1 %. Only 12 % of the board members are women and more than 40 % of the companies have no woman in the board. The prices gathered by the annual consumer study are good estimates of the price level of district heating in Sweden. The average revenues are only 4,1 % lower than the effective average of prices gathered. Price of district heating decrease with size and market share. Use of combined heat and power plants decrease prices slightly. Lower prices with size can mainly be explained by lower energy supply costs. Calculated rates of return in relation to calculated replacement values increase slightly by size and are almost independent of age and market share. The purport of these conclusions is that the district heating companies share the cost reduction from size with their customers, while the whole benefit from high market shares is repaid to the customers. Calculated rates of return vary among the owner groups examined. Lower rates are accepted by municipalities, while power companies have higher rates at the average costs used. Total replacement costs for the 152 companies has been estimated to 89 billion Swedish crowns or 10 billion Euro. Only correlation analyses using one dimension have been used in this study. A higher degree of quality can be obtained by using multi-dimensional analyses

  11. THE USE OF TARGET-COST AND TARGET-PRICE BY THE COMPANY’S MANAGEMENT

    OpenAIRE

    ALINA FLEŞER; MARIANA MAN

    2008-01-01

    Within the companies that adopt the target-costing method (T.C.) products’ prices are determined by market prices and not by totalizing afferent costs. The marketing department of the company determines the target-sale price. The target-cost may be considered an estimated production cost calculated according to an estimated sale price. Nevertheless the T.C. method does not exclude the calculation and survey of costs during the production process. Products’ estimated costs are calculated and c...

  12. State energy price and expenditure report, 1995

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1998-08-01

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the US. The estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1995. Data for all years are available on a CD-ROM and via Internet. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1995, Consumption Estimates (SEDR), published in December 1997. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources.

  13. Deal with price raise

    Institute of Scientific and Technical Information of China (English)

    2004-01-01

    The price raise in natural resources is inevitable. At present, building ceramic industry is facing the pressure brought by price raise in raw material. Marketing directors still hesitate whether the price of ceramic tiles should be raised. The crisis brought by social environment made the employees care-laden.

  14. Dutch house price fundamentals

    NARCIS (Netherlands)

    Haffner, M.E.A.; de Vries, P.

    2009-01-01

    This paper discusses house price developments in the Netherlands, specifically focussing on the question whether current house prices in the Dutch owner-occupied market are likely to decrease. We analyse three aspects of the question based on a literature review: (1) whether there is a house price b

  15. Pricing the Internet

    OpenAIRE

    MacKie-Mason, Jeffrey K.; Hal R. Varian

    1994-01-01

    This paper was prepared for the conference ``Public Access to the Internet,'' JFK School of Government, May 26--27 , 1993. We describe some of the technology and costs relevant to pricing access to and usage of the Internet, and discuss the components of an efficient pricing structure. We suggest a possible smart-market mechanism for pricing traffic on the Internet.

  16. Calculation of Limited Water Price under Different I rrigation Modes in Jinghuiqu I rrigation Area in Shaanxi%陕西泾惠渠灌溉区不同灌溉模式下农户承受的极限水价

    Institute of Scientific and Technical Information of China (English)

    徐飘; 陆迁

    2014-01-01

    为促进改善农业灌溉用水的利用方式与效率,以陕西省泾惠渠灌溉区为例,采用成本收益分析法对不同灌溉模式下的极限水价进行了测算,并与农户实际所能承受的水价进行比较,探讨了水价对农户灌溉模式的影响。结果表明:当水价为0.170~0.454元/m3时,农户不会改变传统灌溉模式,只会通过单纯减少用水量实现节水;水价达到0.454元/m3时,农户会考虑采用喷灌与滴灌等节水技术;水价超过0.654元/m3时,农户会考虑采用井渠双灌模式;水价上升到0.782元/m3时,农户会考虑改变农作物种植结构,或者选择土地抛荒。此外,不同灌溉模式下的极限水价仅仅是理论上通过市场实现农业灌溉水资源配置的手段,从农户对水价的现实承受能力来看,现实中农户灌溉模式的改变更多地需要政府的干预。%In order to improve the agricultural irrigation water utilization and efficiency,the limited water price was calculated by cost-benefit analysis under different irrigation modes,and also compared with the affordable price for farmers,thus the effect of water price on farmers’irrigation mode was carried out in this paper.The results showed that farmers would not change their traditional irrigation mode,just simply reduce the amount of water to reach water saving when the water price was between 0.170~0.454 RMB/m3 .They began to consider water-saving techniques as sprinkler and drip irrigation when the price reached 0.454 RMB/m3 . They would adopt dual-irrigation mode as exploitation of groundwater from wells and water canals when the price beyond 0.654 RMB/m3 .Finally,they consider changing the crop system or fallowing their farmland when the price reached 0.782 RMB/m3 .Besides,the limited water price under different irrigation mode was theoretically control by market price for resources allocation.According to farmers'real affordability to the water

  17. Using target cost in determining price

    OpenAIRE

    Aurelian Ionut CEAUSESCU; Cecilia VADUVA

    2010-01-01

    The target cost method was designed as a comprehensive set of tools for cost planning, cost management and cost control. This method is based on the idea that the selling price of a product is fixed at the market. Price does not therefore depend on cost. Target costing method is not only a method for calculating the costs, but also a method which uses modern management techniques on the study assessed the market value analysis, reducing the diversity of technolog...

  18. Variable Pricing in Oligopoly Markets

    OpenAIRE

    Frank Bass

    2006-01-01

    Behavioral research has found that consumers respond to variability in prices in addition to price levels. We show that this finding can explain why some firms vary their prices more frequently than others. We examine pricing strategies composed of an average price and price variability and employ logit market share models to analyze equilibrium pricing strategies in an oligopoly. Two competing logit specifications termed price sensitivity and payoff sensitivity are considered and are shown t...

  19. Dutch house price fundamentals

    OpenAIRE

    Haffner, M.E.A.; De Vries, P.

    2009-01-01

    This paper discusses house price developments in the Netherlands, specifically focussing on the question whether current house prices in the Dutch owner-occupied market are likely to decrease. We analyse three aspects of the question based on a literature review: (1) whether there is a house price bubble ready to burst; (2) whether house prices will decline in response to the credit crisis that started in 2007; and (3) whether it is likely that house prices will decrease as a result of reform...

  20. Internet resource pricing models

    CERN Document Server

    Xu, Ke; He, Huan

    2013-01-01

    This brief guides the reader through three basic Internet resource pricing models using an Internet cost analysis. Addressing the evolution of service types, it presents several corresponding mechanisms which can ensure pricing implementation and resource allocation. The authors discuss utility optimization of network pricing methods in economics and underline two classes of pricing methods including system optimization and entities' strategic optimization. The brief closes with two examples of the newly proposed pricing strategy helping to solve the profit distribution problem brought by P2P

  1. 7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS Class Prices § 1000.50 Class prices, component prices,...

  2. Essays on pricing dynamics, price dispersion, and nested logit modelling

    Science.gov (United States)

    Verlinda, Jeremy Alan

    The body of this dissertation comprises three standalone essays, presented in three respective chapters. Chapter One explores the possibility that local market power contributes to the asymmetric relationship observed between wholesale costs and retail prices in gasoline markets. I exploit an original data set of weekly gas station prices in Southern California from September 2002 to May 2003, and take advantage of highly detailed station and local market-level characteristics to determine the extent to which spatial differentiation influences price-response asymmetry. I find that brand identity, proximity to rival stations, bundling and advertising, operation type, and local market features and demographics each influence a station's predicted asymmetric relationship between prices and wholesale costs. Chapter Two extends the existing literature on the effect of market structure on price dispersion in airline fares by modeling the effect at the disaggregate ticket level. Whereas past studies rely on aggregate measures of price dispersion such as the Gini coefficient or the standard deviation of fares, this paper estimates the entire empirical distribution of airline fares and documents how the shape of the distribution is determined by market structure. Specifically, I find that monopoly markets favor a wider distribution of fares with more mass in the tails while duopoly and competitive markets exhibit a tighter fare distribution. These findings indicate that the dispersion of airline fares may result from the efforts of airlines to practice second-degree price discrimination. Chapter Three adopts a Bayesian approach to the problem of tree structure specification in nested logit modelling, which requires a heavy computational burden in calculating marginal likelihoods. I compare two different techniques for estimating marginal likelihoods: (1) the Laplace approximation, and (2) reversible jump MCMC. I apply the techniques to both a simulated and a travel mode

  3. Price strategy and pricing strategy: terms and content identification

    Directory of Open Access Journals (Sweden)

    Panasenko Tetyana

    2015-11-01

    Full Text Available The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.

  4. Are Healthy Foods Really More Expensive? It Depends on How You Measure the Price

    OpenAIRE

    Carlson, Andrea; Frazao, Elizabeth

    2012-01-01

    Most Americans consume diets that do not meet Federal dietary recommendations. A common explanation is that healthier foods are more expensive than less healthy foods. To investigate this assumption, the authors compare prices of healthy and less healthy foods using three different price metrics: the price of food energy ($/calorie), the price of edible weight ($/100 edible grams), and the price of an average portion ($/average portion). They also calculate the cost of meeting the recommendat...

  5. OPTION PRICING VIA MAXIMIZATION OVER UNCERTAINTY AND CORRECTION OF VOLATILITY SMILE

    OpenAIRE

    NIKOLAI DOKUCHAEV

    2011-01-01

    The paper presents a pricing rule for market models with stochastic volatility and with an uncertainty in its evolution law. It is shown that the most common stochastic volatility models allow a possibility that the option price calculated for random volatility with an error in volatility forecasts is lower than the price for the market with zero error of volatility forecast. To eliminate this possibility, we suggest a pricing rule based on maximization of the price via a class of possible eq...

  6. Calculator. Owning a Small Business.

    Science.gov (United States)

    Parma City School District, OH.

    Seven activities are presented in this student workbook designed for an exploration of small business ownership and the use of the calculator in this career. Included are simulated situations in which students must use a calculator to compute property taxes; estimate payroll taxes and franchise taxes; compute pricing, approximate salaries,…

  7. Target Price Accuracy

    Directory of Open Access Journals (Sweden)

    Alexander G. Kerl

    2011-04-01

    Full Text Available This study analyzes the accuracy of forecasted target prices within analysts’ reports. We compute a measure for target price forecast accuracy that evaluates the ability of analysts to exactly forecast the ex-ante (unknown 12-month stock price. Furthermore, we determine factors that explain this accuracy. Target price accuracy is negatively related to analyst-specific optimism and stock-specific risk (measured by volatility and price-to-book ratio. However, target price accuracy is positively related to the level of detail of each report, company size and the reputation of the investment bank. The potential conflicts of interests between an analyst and a covered company do not bias forecast accuracy.

  8. Determinants of contractor pricing strategy

    OpenAIRE

    Moses, O. Douglas

    1988-01-01

    This paper investigates pricing strategies used by major defense contractors. Two pricing strategies are identified and discussed: penetration, which calls for a relatively low initial price followed by little reduction in price over time, and skimming, which calls for a relatively high initial price coupled with greater reduction in price over time. It is argued that contractor pricing strategy will depend on features of the defense program under consideration and featur...

  9. State energy price and expenditure report 1989

    International Nuclear Information System (INIS)

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates for the 50 States, the District of Columbia, and the United States. The estimates are provided by energy source (e.g., petroleum, natural gas, coal, and electricity) and by major consuming or economic sector. This report is an update of the State Energy Price and Expenditure Report 1988 published in September 1990. Changes from the last report are summarized in a section of the documentation. Energy price and expenditure estimates are published for the years 1970, 1975, 1980, and 1985 through 1989. Documentation follows the tables and describes how the price estimates are developed, including sources of data, methods of estimation, and conversion factors applied. Consumption estimates used to calculate expenditures, and the documentation for those estimates, are from the State Energy Data Report, Consumption Estimates, 1960--1989 (SEDR), published in May 1991. Expenditures are calculated by multiplying the price estimates by the consumption estimates, adjusted to remove process fuel and intermediate product consumption. All expenditures are consumer expenditures, that is, they represent estimates of money directly spent by consumers to purchase energy, generally including taxes. 11 figs., 43 tabs

  10. State energy price and expenditure report 1989

    Energy Technology Data Exchange (ETDEWEB)

    1991-09-30

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates for the 50 States, the District of Columbia, and the United States. The estimates are provided by energy source (e.g., petroleum, natural gas, coal, and electricity) and by major consuming or economic sector. This report is an update of the State Energy Price and Expenditure Report 1988 published in September 1990. Changes from the last report are summarized in a section of the documentation. Energy price and expenditure estimates are published for the years 1970, 1975, 1980, and 1985 through 1989. Documentation follows the tables and describes how the price estimates are developed, including sources of data, methods of estimation, and conversion factors applied. Consumption estimates used to calculate expenditures, and the documentation for those estimates, are from the State Energy Data Report, Consumption Estimates, 1960--1989 (SEDR), published in May 1991. Expenditures are calculated by multiplying the price estimates by the consumption estimates, adjusted to remove process fuel and intermediate product consumption. All expenditures are consumer expenditures, that is, they represent estimates of money directly spent by consumers to purchase energy, generally including taxes. 11 figs., 43 tabs.

  11. The economic cost of fuel price subsidies in Ghana

    Science.gov (United States)

    Ofori, Roland Oduro

    I adapt the Harberger formula for deadweight loss to develop approximations for the deadweight loss created by multiple fuel price subsidies. I also estimate the own-price, cross-price, and income elasticities of demand for gasoline and diesel in Africa. I use data on fuel prices and sales in combination with my formulas and elasticity estimates to calculate the deadweight loss of fuel price subsidies in Ghana from 2009 to 2014. I show that the average efficiency cost of the gasoline and diesel price subsidies in Ghana is 0.8% of fuel price subsidy transfers. This result stresses the futility of basing subsidy reforms on economic efficiency losses, which are relatively small due to very inelastic energy demand, and the need for such reforms to be motivated by the poor-targeting of subsidies to low-income households and the impact of subsidies on government debt-financing.

  12. Evaluating House Price Forecasts

    OpenAIRE

    John M. Clapp; Carmelo Giaccotto

    2002-01-01

    House prices, unlike stock prices, appear to be predictable with some degree of accuracy. We use an autoregressive process to model the time series behavior of a city-wide house price index, and then produce one-quarter ahead forecasts for individual properties. Better real estate decisions require forecasting models with desirable properties for prediction errors (PEs). We propose that managers use a battery of tests to compare PEs; in particular, non-parametric smoothing of the empirical di...

  13. Pricing for Scarcity

    OpenAIRE

    Roseta-Palma, C.; Monteiro, H.

    2008-01-01

    DINÂMIA, Junho de 2008. “Prémio Científico ISCTE-IUL 2012” In many areas where water is not abundant, water pricing schedules contain significant nonlinearities. Existing pricing literature establishes that efficient schedules will depend on demand and supply characteristics. However, most empirical studies show that actual pricing schemes have little to do with theoretical efficiency results. In particular, there are very few models recommending increasing blocks, whe...

  14. Monopoly Pricing Strategies

    OpenAIRE

    Daniel F. Spulber

    1991-01-01

    The design of monopoly pricing strategies is examined in a general framework with an unknown population distribution of consumer characteristics, downward-sloping, multi-unit consumer demand, and increasing marginal cost Reference point pricing is introduced and is shown to implement the profit-maximizing allocation. The design of generalized priority is extended to the unknown demand setting. Nonlinear pricing is shown to be approximately optimal for the monopolist as the number of consumers...

  15. The oil price conundrum

    OpenAIRE

    Mabro, Robert

    2008-01-01

    The governments of oil-importing countries are worried about the recent high oil prices. They worry about possible macro-economic effects: inflation, recession, balance-of-payments deficits. The consumers of energy in those countries where fuels are not subsidised are angry about the higher prices of oil, gas and electricity. Unfortunately these higher prices have coincided with increases in the cost of food and other items of vital expenditures. Those who use fuels in significant quantities,...

  16. Strategic pricing of commodities

    OpenAIRE

    Jörnsten, Kurt; Ubøe, Jan

    2006-01-01

    In this paper we will consider a setting where a large number of agents are trading commodity bundles. Assuming that agents of the same type have a certain utility attached to each transaction, we construct a statistical equilibrium which in turn implies prices on the different commodities. Our basic question is then the following: Assume that some commodities come out with prices that are socially unacceptable. Is it possible to change these prices systematically if a new type of agents is p...

  17. Priced Timed Petri Nets

    OpenAIRE

    Abdulla, Parosh Aziz; Mayr, Richard

    2013-01-01

    We consider priced timed Petri nets, i.e., unbounded Petri nets where each token carries a real-valued clock. Transition arcs are labeled with time intervals, which specify constraints on the ages of tokens. Furthermore, our cost model assigns token storage costs per time unit to places, and firing costs to transitions. This general model strictly subsumes both priced timed automata and unbounded priced Petri nets. We study the cost of computations that reach a given control-state. In general...

  18. Relating price strategies and price-setting practices

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.; Lans, van der I.A.

    2013-01-01

    Purpose - This article addresses the relationship between price strategies and price-setting practices. The first derive from a normative tradition in the pricing literature and the latter from a descriptive tradition. Price strategies are visible in the market, whereas price-setting practices are h

  19. Stackelberg Network Pricing Games

    CERN Document Server

    Briest, Patrick; Krysta, Piotr

    2008-01-01

    We study a multi-player one-round game termed Stackelberg Network Pricing Game, in which a leader can set prices for a subset of $m$ priceable edges in a graph. The other edges have a fixed cost. Based on the leader's decision one or more followers optimize a polynomial-time solvable combinatorial minimization problem and choose a minimum cost solution satisfying their requirements based on the fixed costs and the leader's prices. The leader receives as revenue the total amount of prices paid by the followers for priceable edges in their solutions, and the problem is to find revenue maximizing prices. Our model extends several known pricing problems, including single-minded and unit-demand pricing, as well as Stackelberg pricing for certain follower problems like shortest path or minimum spanning tree. Our first main result is a tight analysis of a single-price algorithm for the single follower game, which provides a $(1+\\epsilon) \\log m$-approximation for any $\\epsilon >0$. This can be extended to provide a ...

  20. Divdends and Equity Prices: The Variance Trade Off

    OpenAIRE

    Margaret Bray; Giovanni Marseguerra

    2002-01-01

    This paper shows that standard corporate finance theory implies that there is potentially a trade off between the variances of dividends and equity prices. We show how the trade off works in a stochastic difference equation model of dividend policy demonstrating that the solution may be unstable for plausible parameter values. At the boundary of the feasible set of price and dividend variances, prices and dividends are perfectly correlated and both follow an AR(1) process. We calculate explic...

  1. Application of Game Theory to Pricing of Participating Deferred Annuity

    OpenAIRE

    Hong Mao; Krzysztof M. Ostaszewski

    2007-01-01

    We study pricing models for a participating deferred annuity. Game theory is used to formulate different pricing models based on customers’ preference concerning benefits and risks. The objective is to maximize social welfare. Value at Risk (VaR) under multi-stage stochastic processes is applied to measure credit risk and its calculation is discussed. Monte Carlo simulation and stochastic optimization are used to find optimal solutions for price and dividend rate.

  2. ALTERNATE PRICING STRATEGIES IN CONSTRUCTION

    OpenAIRE

    Krishna Mochtar; David Arditi

    2000-01-01

    Recent research findings on pricing strategies both in general and in construction are reviewed and explored. First%2C pricing strategy in general%2C mostly in the manufacturing industry%2C is reviewed. It includes the concepts of pricing strategy%2C predatory pricing%2C price wars%2C and price policy development. Second%2C pricing strategy in construction is explored. It includes various pricing models for bid price determination%2C such as the Friedman-Gates models%2C expected utility model...

  3. Price, availability and affordability of medicines

    Directory of Open Access Journals (Sweden)

    Brenda S. Mhlanga

    2014-01-01

    Full Text Available Background: Medicines play an important role in healthcare, but prices can be a barrier to patient care. Few studies have looked at the prices of essential medicines in low- and middle-income countries in terms of patient affordability.Aim: To determine the prices, availability and affordability of medicines along the supply chain in Swaziland.Setting: Private- and public-sector facilities in Manzini, Swaziland.Methods: The standardised methodology designed by the World Health Organization and Health Action International was used to survey 16 chronic disease medicines. Data were collected in one administrative area in 10 private retail pharmacies and 10 public health facilities. Originator brand (OB and lowest-priced generic equivalent (LPG medicines were monitored and these prices were then compared with international reference prices (IRPs. Affordability was calculated in terms of the daily wage of the lowest-paid unskilled government worker.Results: Mean availability was 68% in the public sector. Private sector OB medicines were priced 32.4 times higher than IRPs, whilst LPGs were 7.32 times higher. OBs cost473% more than LPGs. The total cumulative mark-ups for individual medicines range from 190.99% – 440.27%. The largest contributor to add-on cost was the retail mark-up (31% – 53%. Standard treatment with originator brands cost more than a day’s wage.Conclusion: Various policy measures such as introducing price capping at all levels of the medicine supply chain, may increase the availability, whilst at the same time reducing the prices of essential medicines for the low income population.

  4. Price learning during grocery shopping

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup

    what consumers learn about prices during grocery shopping. Three measures of price knowledge corresponding to different levels of price information processing were applied. Results indicate that price learning does take place and that episodic price knowledge after store exit is far more widespread...

  5. Essays on prices and price convergence

    OpenAIRE

    Lindenblatt, Andreas

    2015-01-01

    This thesis looks at prices in two different markets. The first one is the market for food products in Europe. With the introduction of the common market in 1992, most European markets have been integrated. When 10 more countries joined the EU in 2004, another round of integration took place and the common market was extended to these countries as well. We analyse if retail prices for food products have converged in the time after this "shock" of the EU enlargement. While there exists an...

  6. Oil prices and the stock prices of alternative energy companies

    Energy Technology Data Exchange (ETDEWEB)

    Henriques, Irene; Sadorsky, Perry [Schulich School of Business, 4700 Keele Street, Toronto, Ontario (Canada)

    2008-05-15

    Energy security issues coupled with increased concern over the natural environment are driving factors behind oil price movements. While it is widely accepted that rising oil prices are good for the financial performance of alternative energy companies, there has been relatively little statistical work done to measure just how sensitive the financial performance of alternative energy companies are to changes in oil prices. In this paper, a four variable vector autoregression model is developed and estimated in order to investigate the empirical relationship between alternative energy stock prices, technology stock prices, oil prices, and interest rates. Our results show technology stock prices and oil prices each individually Granger cause the stock prices of alternative energy companies. Simulation results show that a shock to technology stock prices has a larger impact on alternative energy stock prices than does a shock to oil prices. These results should be of use to investors, managers and policy makers. (author)

  7. Manufacturer's Suggested Retail Prices

    NARCIS (Netherlands)

    Rosenkranz, S.

    2003-01-01

    Based on arguments of the `reference- dependent' theory of consumer choice we assume that a retailer's discount of a manufacturer's suggested retail price changes consumers' demand. We can show that the producer benefits from suggesting a retail price. If consumers are additionally sufficiently `los

  8. Essays on Derivatives Pricing

    DEFF Research Database (Denmark)

    Kokholm, Thomas

    financial models, and most importantly, to be aware of their limitations. Following that belief, this thesis consists of three independent and self-contained papers, all dealing with topics in derivatives pricing. The first paper considers the pricing of traffic light options, which are appropriate...

  9. Poverty and price transmission

    DEFF Research Database (Denmark)

    Elleby, Christian

    A key parameter determining the welfare impact from a world market shock is the transmission elasticity which measures the average domestic response to an international price change. Many studies have estimated price transmission elasticities for a large number of countries but the variation in t...

  10. Cotton Pricing Discussion

    Institute of Scientific and Technical Information of China (English)

    2010-01-01

    @@ Cotton prices have received a lot of attention recently.Cotton Incorporated especically designed this Special Edition of Supply Chain Insights to frame the discussion concerning prices throughout the cotton supply chain in terms of the cyclical events that contributed to recent volatility and how a return to long-term averages over time can be expected.

  11. Natural Gas Price Rises

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    @@ As was projected in the third-quarter monetary policy implementation report published by the People's Bank of China on November 15th, 2006, the residents' consumption price index in China would reach 1.5% in 2006. Prices of consumer commodities such as water, power and natural gas would rise and the pressure of inflation would persist in the future.

  12. IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY

    OpenAIRE

    Andrea Erika NYÁRÁDI

    2007-01-01

    The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitabil...

  13. Retail Pricing Patterns and Driving Factors of Price Variation

    OpenAIRE

    Li,Chenguang; Volpe, Richard

    2013-01-01

    This study explores the strategic pricing behaviors across retail chains for produce products. We adopt a Panel-VAR model to identify the driving factors of retail price variation and find that retail price history, competition, product cost are among the key drivers of retail price change. Forecast Error Variance Decomposition (FEVD) is used to quantify the relative impact of driving factors to retail price changes and show how they affect prices differently across retail chains. We also fin...

  14. Rising food prices, food price volatility, and political unrest

    OpenAIRE

    Bellemare, Marc F.

    2011-01-01

    Do food prices cause political unrest? Throughout history, riots appear to have frequently broken out as a consequence of high food prices. This paper studies the impact of food prices on political unrest using monthly data on food prices at the international level. Because food prices and political unrest are jointly determined, the incidence of natural disasters in a given month is used in an attempt to identify the causal relationship between food prices and political unrest. Empirical res...

  15. Food and energy price shocks: what other prices are affected?

    OpenAIRE

    CLARK, Todd E.; Zaman, Saeed

    2011-01-01

    Sharp rises in energy and other commodity prices have recently ignited concerns about inflation. Will these price increases spill over to other prices more generally? We study the typical responses of different price shocks and assess whether the recent behavior of producer and consumer prices is consistent with historical norms. Our analysis shows that the behavior of various producer and consumer prices since late 2009 has generally matched up with historical patterns. Overall, our findings...

  16. Carbon Emission Option Pricing Calculation and Clean Development Mechanism Strategy of Jiangsu:Based on the Pricing Analysis of B-S Model%江苏碳排放期权价格测算及清洁发展机制对策--基于B-S模型的定价分析

    Institute of Scientific and Technical Information of China (English)

    吕晓玥; 简迎辉; 许长新

    2014-01-01

    It is a tendency to develop low-carbon economy and lift the ability of carbon trade and clean development. Through potential analysis of CDM project progress, economy foundation and resource endowment to developing the carbon trade market of Jiangsu companies, we can find that this district possesses huge space for energy conservation and emissions reduction. Besides, we have introduced real option theory to study of the carbon trading mechanism of empirical research, by using the B-S pricing model and European carbon option trade market data, constructed a carbon option pricing model, then based on the similarity economy comparison between European Union and Jiangsu province, obtained the discounted carbon trading market price of Jiangsu area. at last, around technology, management and policies levels to putting forward some relevant suggestions and measures on CDM mechanism provided beneficial basis and references to Jiangsu companies in stepwise development of carbon trading market under CDM mechanism.%发展低碳经济,提升碳交易与清洁发展能力已是大势所趋。文章通过对CDM项目进展、经济基础与资源禀赋等方面对江苏省内企业发展碳交易市场进行潜力分析后发现,该地区存在巨大的节能减排空间。实证研究中将实物期权理论引入碳交易机制,借助B-S模型及欧盟碳交易市场相关数据构造出碳排放期权定价模型,根据欧盟与江苏经济发展的相似性折扣给出江苏地区碳交易的市场定价,同时,围绕技术、管理及政策三个层面提出该地区CDM机制的新型思路建议,旨在为江苏企业在清洁发展机制下逐步开发完善碳交易市场提供有利依据与参考。

  17. 7 CFR 1033.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE MIDEAST MARKETING AREA Order Regulating Handling Class Prices § 1033.50 Class prices, component...

  18. 7 CFR 1030.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE UPPER MIDWEST MARKETING AREA Order Regulating Handling Class Prices § 1030.50 Class prices,...

  19. 7 CFR 1001.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE NORTHEAST MARKETING AREA Order Regulating Handling Class Prices § 1001.50 Class prices, component...

  20. 7 CFR 1006.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE FLORIDA MARKETING AREA Order Regulating Handling Class Prices § 1006.50 Class prices, component...

  1. 7 CFR 1124.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE PACIFIC NORTHWEST MARKETING AREA Order Regulating Handling Class Prices § 1124.50 Class prices,...

  2. 7 CFR 1126.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE SOUTHWEST MARKETING AREA Order Regulating Handling Class Prices § 1126.50 Class prices, component...

  3. 7 CFR 1131.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE ARIZONA MARKETING AREA Order Regulating Handling Class Prices § 1131.50 Class prices, component...

  4. 7 CFR 1005.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE APPALACHIAN MARKETING AREA Order Regulating Handling Class Prices § 1005.50 Class prices, component...

  5. 7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.50 Class prices, component...

  6. 7 CFR 1007.50 - Class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE SOUTHEAST MARKETING AREA Order Regulating Handling Class Prices § 1007.50 Class prices, component...

  7. ALTERNATE PRICING STRATEGIES IN CONSTRUCTION

    Directory of Open Access Journals (Sweden)

    Krishna Mochtar

    2000-01-01

    Full Text Available Recent research findings on pricing strategies both in general and in construction are reviewed and explored. First%2C pricing strategy in general%2C mostly in the manufacturing industry%2C is reviewed. It includes the concepts of pricing strategy%2C predatory pricing%2C price wars%2C and price policy development. Second%2C pricing strategy in construction is explored. It includes various pricing models for bid price determination%2C such as the Friedman-Gates models%2C expected utility models%2C risk-pricing model%2C and the crew-day%2C multiple regression%2C and fuzzy-set pricing models. In conclusion%2C pricing strategies in construction are still predominantly based on a cost-based approach. More recent models try to close the gap between the models and the real life conditions of a bidder%5C%27s decision-making process. It appears that there are more problems in cost-based pricing as opposed to market-based pricing. Consequently%2C it is highly recommended that%2C alternative pricing approach such as that are closer to the proposed market-based pricing model need to be explored and developed for use in the construction industry. Abstract in Bahasa Indonesia : Pricing+strategy%2C+cost-based+pricing%2C+market-based+pricing.

  8. Mind your pricing cues.

    Science.gov (United States)

    Anderson, Eric; Simester, Duncan

    2003-09-01

    For most of the items they buy, consumers don't have an accurate sense of what the price should be. Ask them to guess how much a four-pack of 35-mm film costs, and you'll get a variety of wrong answers: Most people will underestimate; many will only shrug. Research shows that consumers' knowledge of the market is so far from perfect that it hardly deserves to be called knowledge at all. Yet people happily buy film and other products every day. Is this because they don't care what kind of deal they're getting? No. Remarkably, it's because they rely on retailers to tell them whether they're getting a good price. In subtle and not-so-subtle ways, retailers send signals to customers, telling them whether a given price is relatively high or low. In this article, the authors review several common pricing cues retailers use--"sale" signs, prices that end in 9, signpost items, and price-matching guarantees. They also offer some surprising facts about how--and how well--those cues work. For instance, the authors' tests with several mail-order catalogs reveal that including the word "sale" beside a price can increase demand by more than 50%. The practice of using a 9 at the end of a price to denote a bargain is so common, you'd think customers would be numb to it. Yet in a study the authors did involving a women's clothing catalog, they increased demand by a third just by changing the price of a dress from $34 to $39. Pricing cues are powerful tools for guiding customers' purchasing decisions, but they must be applied judiciously. Used inappropriately, the cues may breach customers' trust, reduce brand equity, and give rise to lawsuits. PMID:12964397

  9. Pricing American and Asian Options

    OpenAIRE

    Pat Muldowney

    2015-01-01

    An analytic method for pricing American call options is provided; followed by an empirical method for pricing Asian call options. The methodology is the pricing theory presented in "A Modern Theory of Random Variation", by Patrick Muldowney, 2012.

  10. Systematization of marketing pricing methods

    OpenAIRE

    V.V. Bozhkova; I.M. Ryabchenko

    2012-01-01

    The methodical aspects of marketing price forming are investigated in the article. Methods of marketing pricing are systematized. The suggestion on the improvement of pricing process for domestic industrial enterprises is given.

  11. Systematization of marketing pricing methods

    Directory of Open Access Journals (Sweden)

    V.V. Bozhkova

    2012-12-01

    Full Text Available The methodical aspects of marketing price forming are investigated in the article. Methods of marketing pricing are systematized. The suggestion on the improvement of pricing process for domestic industrial enterprises is given.

  12. Asset Pricing - A Brief Review

    OpenAIRE

    Li, Minqiang

    2010-01-01

    I first introduce the early-stage and modern classical asset pricing and portfolio theories. These include: the capital asset pricing model (CAPM), the arbitrage pricing theory (APT), the consumption capital asset pricing model (CCAPM), the intertemporal capital asset pricing model (ICAPM), and some other important modern concepts and techniques. Finally, I discuss the most recent development during the last decade and the outlook in the field of asset pricing.

  13. A Framework for Price Statistics

    OpenAIRE

    Kimberly D. Zieschang

    2000-01-01

    This paper describes the primary framework associating the four principal price indices in the system of economic statistics—the Producer Price Index (PPI), the Consumer Price Index (CPI), and the Export and Import Price Indices (XPI and MPI)—with the macroeconomic value aggregates they decompose into price and volume components. The paper begins by defining the basic algebra of price indices. It then discusses the definition of the value aggregates comprising the goods and services component...

  14. Dynamic Pricing in Electronic Commerce Using Neural Network

    Science.gov (United States)

    Ghose, Tapu Kumar; Tran, Thomas T.

    In this paper, we propose an approach where feed-forward neural network is used for dynamically calculating a competitive price of a product in order to maximize sellers’ revenue. In the approach we considered that along with product price other attributes such as product quality, delivery time, after sales service and seller’s reputation contribute in consumers purchase decision. We showed that once the sellers, by using their limited prior knowledge, set an initial price of a product our model adjusts the price automatically with the help of neural network so that sellers’ revenue is maximized.

  15. Strategy-proof Pricing Approach for Cloud Market

    OpenAIRE

    Chawla, Chetan; Chana, Inderveer

    2015-01-01

    In this paper, we design and develop a pricing model applicable to strategy proof pricing. To provide an economic stability towards its consumers. The economic model we use is Vickrey-Clarke-Groves (VCG). By this each service provider has to provide a true cost of its services in the cloud market. For the selection of suitable service for the consumer we adopt a dynamic programing based algorithm and VCG is used to calculate the payment. Strategy proof pricing offers a unique cloud pricing se...

  16. Modelling Brewing Industry Pricing

    Directory of Open Access Journals (Sweden)

    T. Maier

    2012-12-01

    Full Text Available The aim of this contribution is to analyse the price behaviour of the second to eleventh strongest brewers on the Czech market on the basis of the price behaviour of the price leader, this being Plzeňský Prazdroj (a member of SABMiller. Using monthly prices (the number of observations is generally 108 periods, is modelled the length of delay between the price leader and the other breweries making a price change. A linear regressive analysis is used to produce the model. The beer brands are divided into 3 segments: super- premium, mainstream and non-alcoholic beer and prices are modelled separately for barrelled and bottled beer if the data is available to allow it. The results of each brewery’s behaviour are summarised in conclusion. The information presented in the article is the product of working on the Research Plan MSM 6046070906, “The Economics of Czech agriculture resources and their efficient use within a multifunctional agri-food systems framework”.

  17. Tourism Equilibrium Price Trends

    Directory of Open Access Journals (Sweden)

    Mohammad Mohebi

    2012-01-01

    Full Text Available Problem statement: A review of the tourism history shows that tourism as an industry was virtually unknown in Malaysia until the late 1960s. Since then, it has developed and grown into a major industry, making an important contribution to the country's economy. By allocating substantial funds to the promotion of tourism and the provision of the necessary infrastructure, the government has played an important role in the impressive progress of the Malaysian tourism industry. One of the important factors which can attract tourists to Malaysia is the tourism price. Has the price of tourism decreased? To answer this question, it is necessary to obtain the equilibrium prices as well as the yearly trend for Malaysia during the sample period as it will be useful for analysis of the infrastructure situation of the tourism industry in this country. The purpose of the study is to identify equilibrium tourism price trends in Malaysian tourism market. Approach: We use hotel room as representative of tourism market. Quarterly data from 1995-2009 are used and a dynamic model of simultaneous equation is employed. Results: Based on the result during the period of 1995 until 2000, the growth rate of the equilibrium price was greater than consumer price index and producer price index. Conclusion: In the Malaysian tourism market, new infrastructure during this period had not been developed to keep pace with tourist arrivals.

  18. Approximate option pricing

    Energy Technology Data Exchange (ETDEWEB)

    Chalasani, P.; Saias, I. [Los Alamos National Lab., NM (United States); Jha, S. [Carnegie Mellon Univ., Pittsburgh, PA (United States)

    1996-04-08

    As increasingly large volumes of sophisticated options (called derivative securities) are traded in world financial markets, determining a fair price for these options has become an important and difficult computational problem. Many valuation codes use the binomial pricing model, in which the stock price is driven by a random walk. In this model, the value of an n-period option on a stock is the expected time-discounted value of the future cash flow on an n-period stock price path. Path-dependent options are particularly difficult to value since the future cash flow depends on the entire stock price path rather than on just the final stock price. Currently such options are approximately priced by Monte carlo methods with error bounds that hold only with high probability and which are reduced by increasing the number of simulation runs. In this paper the authors show that pricing an arbitrary path-dependent option is {number_sign}-P hard. They show that certain types f path-dependent options can be valued exactly in polynomial time. Asian options are path-dependent options that are particularly hard to price, and for these they design deterministic polynomial-time approximate algorithms. They show that the value of a perpetual American put option (which can be computed in constant time) is in many cases a good approximation to the value of an otherwise identical n-period American put option. In contrast to Monte Carlo methods, the algorithms have guaranteed error bounds that are polynormally small (and in some cases exponentially small) in the maturity n. For the error analysis they derive large-deviation results for random walks that may be of independent interest.

  19. Six Sigma pricing.

    Science.gov (United States)

    Sodhi, ManMohan S; Sodhi, Navdeep S

    2005-05-01

    Many companies are now good at managing costs and wringing out manufacturing efficiencies. The TQM movement and the disciplines of Six Sigma have seen to that. But the discipline so often brought to the cost side of the business equation is found far less commonly on the revenue side. The authors describe how a global manufacturer of industrial equipment, which they call Acme Incorporated, recently applied Six Sigma to one major revenue related activity--the price-setting process. It seemed to Acme's executives that pricing closely resembled many manufacturing processes. So, with the help of a Six Sigma black belt from manufacturing, a manager from Acme's pricing division recruited a team to carry out the five Six Sigma steps: Define what constitutes a defect. At Acme, a defect was an item sold at an unauthorized price. Gather data and prepare it for analysis. That involved mapping out the existing pricing-agreement process. Analyze the data. The team identified the ways in which people failed to carry out or assert effective control at each stage. Recommend modifications to the existing process. The team sought to decrease the number of unapproved prices without creating an onerous approval apparatus. Create controls. This step enabled Acme to sustain and extend the improvements in its pricing procedures. As a result of the changes, Acme earned dollar 6 million in additional revenue on one product line alone in the six months following implementation--money that went straight to the bottom line. At the same time, the company removed much of the organizational friction that had long bedeviled its pricing process. Other companies can benefit from Acme's experience as they look for ways to exercise price control without alienating customers. PMID:15929409

  20. Six Sigma pricing.

    Science.gov (United States)

    Sodhi, ManMohan S; Sodhi, Navdeep S

    2005-05-01

    Many companies are now good at managing costs and wringing out manufacturing efficiencies. The TQM movement and the disciplines of Six Sigma have seen to that. But the discipline so often brought to the cost side of the business equation is found far less commonly on the revenue side. The authors describe how a global manufacturer of industrial equipment, which they call Acme Incorporated, recently applied Six Sigma to one major revenue related activity--the price-setting process. It seemed to Acme's executives that pricing closely resembled many manufacturing processes. So, with the help of a Six Sigma black belt from manufacturing, a manager from Acme's pricing division recruited a team to carry out the five Six Sigma steps: Define what constitutes a defect. At Acme, a defect was an item sold at an unauthorized price. Gather data and prepare it for analysis. That involved mapping out the existing pricing-agreement process. Analyze the data. The team identified the ways in which people failed to carry out or assert effective control at each stage. Recommend modifications to the existing process. The team sought to decrease the number of unapproved prices without creating an onerous approval apparatus. Create controls. This step enabled Acme to sustain and extend the improvements in its pricing procedures. As a result of the changes, Acme earned dollar 6 million in additional revenue on one product line alone in the six months following implementation--money that went straight to the bottom line. At the same time, the company removed much of the organizational friction that had long bedeviled its pricing process. Other companies can benefit from Acme's experience as they look for ways to exercise price control without alienating customers.

  1. Some Mathematical Aspects of Price Optimisation

    OpenAIRE

    Bai, Y.(Institute of High Energy Physics, Chinese Academy of Sciences, Beijing, China); Hashorva, E.; Ratovomirija, G.; Tamraz, M.

    2016-01-01

    Calculation of an optimal tariff is a principal challenge for pricing actuaries. In this contribution we are concerned with the renewal insurance business discussing various mathematical aspects of calculation of an optimal renewal tariff. Our motivation comes from two important actuarial tasks, namely a) construction of an optimal renewal tariff subject to business and technical constraints, and b) determination of an optimal allocation of certain premium loadings. We consider both continuou...

  2. Petrol Price Cycles

    OpenAIRE

    David P. Byrne

    2012-01-01

    I never owned a car as a student. If I had to go somewhere, I walked or took public transport. I paid little attention to petrol prices because they did not affect my weekly budget. However, if you talk to someone who owns a car or drives to work, you will likely find they pay attention to prices at the pump.They may tell you which are the cheap petrol stations in their market, what the cheap day of the week for buying petrol is, or express concern that petrol prices rise around weekends and ...

  3. Inflation and Asset Prices

    OpenAIRE

    Tatom, John

    2011-01-01

    Changes in the general level of prices and inflation have profound effects on asset prices. There are several reasons for these effects and the influence differs depending on the source of the inflation and whether it is expected or not. To understand these effects it is important to clarify what is meant by inflation, the pure theory of the sources of inflation, how inflation affects goods and services prices and how it affects the assets that are used to finance production, both equity pr...

  4. Edgeworth Price Cycles, Cost-based Pricing and Sticky Pricing in Retail Gasoline Markets

    OpenAIRE

    Noel, Michael

    2004-01-01

    This paper examines dynamic pricing behavior in retail gasoline markets for 19 Canadian cities over 574 weeks. I find three distinct retail pricing patterns: 1. cost-based pricing, 2. sticky pricing, and 3. steep, asymmetric retail price cycles that, while seldom documented empirically, resemble those of Maskin & Tirole[1988]. Using a Markov switching regression, I estimate the prevalence of patterns and the structural characteristics of the cycles. Retail price cycles prevail in over 40% of ...

  5. Medicare Part B Drug Average Sales Pricing Files

    Data.gov (United States)

    U.S. Department of Health & Human Services — Manufacturer reporting of Average Sales Price (ASP) data - A manufacturers ASP must be calculated by the manufacturer every calendar quarter and submitted to CMS...

  6. Price Recall, Bertrand Paradox and Price Dispersion With Elastic Demand

    NARCIS (Netherlands)

    Carvalho, M.

    2009-01-01

    This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the pric

  7. Supersymmetry in option pricing

    Science.gov (United States)

    Jana, T. K.; Roy, P.

    2011-06-01

    We use supersymmetry to find the isospectral partners of Black-Scholes Hamiltonian without a potential and with a double knock out barrier potential. The pricing kernels for these Hamiltonians have also been obtained.

  8. Market News Price Dataset

    Data.gov (United States)

    National Oceanic and Atmospheric Administration, Department of Commerce — Real-time price data collected by the Boston Market News Reporter. The NOAA Fisheries' "Fishery Market News" began operations in New York City on February 14, 1938....

  9. AKRO: Standard Prices

    Data.gov (United States)

    National Oceanic and Atmospheric Administration, Department of Commerce — Standard prices are generated for cost recovery programs in the Individual Fishing Quota (IFQ) halibut and sablefish, BSAI Rationalized crab, and Central Gulf of...

  10. What Drives Commodity Prices?

    OpenAIRE

    Chen, Shu-Ling; Jackson, John D; Kim, Hyeongwoo; Resiandini, Pramesti

    2012-01-01

    This paper examines common forces driving the prices of 51 highly tradable commodities. We demonstrate that highly persistent movements of these prices are mostly due to the first common component, which is closely related to the US nominal exchange rate. In particular, our simple factor-based model outperforms the random walk model in out-of-sample forecast for the US exchange rate. The second common factor and de-factored idiosyncratic components are consistent with stationarity, implyin...

  11. Purchase Price Mechanisms

    OpenAIRE

    Gajdošech, Martin

    2012-01-01

    My diploma thesis focuses on the M&A transaction closing mechanisms. Their function is to reflect the value changes of the target company into the purchase price. Value change occurs during the time lag between the date of the financial statements and the date of the transaction closing. Throughout history, there have been two major approaches developed. The "Completion Accounts Mechanism" uses post-completion price adjustments to reflect the change of the net working capital and net debt dur...

  12. Corporate debt pricing I.

    OpenAIRE

    ilya, gikhman

    2007-01-01

    In this article we discuss fundamentals of the debt securities pricing. We begin with a generalization of the present value concept. Though the present value is the base valuation method in the modern finance we will illustrate that this concept does not sufficiently accurate in producing instrument pricing. The incompleteness of the unique present value approach stems from variability of the interest rates. Admitting variability of the interest rates we define two present values one for buye...

  13. Expectations and Share Prices

    OpenAIRE

    Edwin J. Elton; Martin J. Gruber; Mustafa Gultekin

    1981-01-01

    It is generally believed that security prices are determined by expectations concerning firm and economic variables. Despite this belief there is very little research examining expectational data. In this paper we examine how expectations concerning earning per share effect share price. We first show that knowledge concerning analyst's forecasts of earnings per share cannot by itself lead to excess returns. Any information contained in the consensus estimate of earnings per share is already i...

  14. The Price of Success

    Institute of Scientific and Technical Information of China (English)

    2006-01-01

    China's booming economy must contend with soaring commodity prices,but experts say the development of the domestic futures market may helpWatching the price of copper skyrocket from 18,000 yuan per ton last year to about 50,000 yuan in the first half of this year, Chen Xingfu can only sigh. Chen, 41, is head of an electronics company engaged in printed circuit board production in Shenzhen, south China's Guangdong Province. It has been the most

  15. 75 FR 69591 - Medicaid Program; Withdrawal of Determination of Average Manufacturer Price, Multiple Source Drug...

    Science.gov (United States)

    2010-11-15

    ...; Withdrawal of Determination of Average Manufacturer Price, Multiple Source Drug Definition, and Upper Limits... ``Definitions'' was intended to apply to both AMP and best price calculations. While the Determination of AMP... Price (Sec. 447.505). Therefore, we see no need to withdraw the definition of bona fide service fees....

  16. DEMAND AND PRICES

    Directory of Open Access Journals (Sweden)

    VĂDUVA MARIA

    2014-08-01

    Full Text Available Studying the consumer’s behavior by the ordinal approach of utility with the help of indifference curves allows us to deduce the two “movement laws of demand” in this chapter: the demand for a “normal” good is decreasing function of its price and an increasing function of income. We will use the elasticity concept to measure the intensity of the relation that is established between the demand, on the one hand, and prices or income, on the other hand: elasticity – price, direct and crossed, and elasticity – income. We can classify the goods in many categories, depending on the values that this elasticity takes. The demand elasticity can be determined depending on price and income. It reflects the proportion in which the demand for different products changes with the modification of the consumers’ income, the other factors remaining constant. The elasticity compared to the income is a demonstration of legality from the consumer’s sphere, which determines a certain hierarchy of the needs of each population category in a certain level of income. The movement of prices orients both the options and decisions of producers, namely the most useful productions and the most efficient investments, as well as the consumers’ options and decisions on the most advantageous buying of goods and services that they need. The prices appear as a “signal system” coordinating and making coherence the economic agents’ decisions – producers, consumers and population.

  17. Cartel Pricing Dynamics, Price Wars and Cartel Breakdown

    OpenAIRE

    Manganelli, Anton-Giulio

    2012-01-01

    This paper gives an unified explanation of some of the most widely known facts of the cartel literature: prices gradually rise, then remain constant, there can be price wars and some cartels break down. In this model consumers are loss averse and efficiency of a competitive fringe is not publicly observable. In the best collusive equilibrium, the price expectation can be so low that loss aversion makes consumers not buy at the maximal collusive price: firms then set a lower price ...

  18. Are Fuel Price Hikes Justifiable?

    Institute of Scientific and Technical Information of China (English)

    2009-01-01

    China saw its third fuel price hike this year when the National Development and Reform Commission, China’s top price regulator, hiked gasoline and diesel retail prices up by 9 percent, effective on June 30. It is the second rally in a month after the country initiated a new fuel pricing scheme in May.

  19. Coping with Higher Oil Prices

    OpenAIRE

    Bacon, Robert; Kojima, Masami

    2006-01-01

    The rise in oil prices and the associated increase in the prices of petroleum products that has occurred since the beginning of 2004 are having adverse effects on the users of petroleum products in all countries. In many developing countries, price increases have generated considerable pressure for government response to lessen the burden of higher world oil prices, and policies to minimize ...

  20. Technical Document for Price Adjustment

    OpenAIRE

    Zheng Tian; Mulugeta Kahsai; Randall Jackson

    2014-01-01

    This document presents the basis for the price adjustment mechanisms in a time series IO model. The essentials of the price adjustment and price change propagation algorithms are presented, along with a matrix permutation algorithm that facilitates the implementation of the price adjustment mechanism. The Matlab function is provided.

  1. Equilibrium adjustment of disequilibrium prices

    NARCIS (Netherlands)

    Herings, P.J.J.; van der Laan, G.; Talman, A.J.J.; Venniker, R.

    1994-01-01

    We consider an exchange economy in which price rigidities are present. In the short run the non-numeraire commodities have a exible price level with respect to the numeraire commodity but their relative prices are mutually fixed. In the long run prices are assumed to be completely exible. For a give

  2. Environmental prices in the long term; Miljoepriser paa lang sikt

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1997-12-31

    Economic analyses may undervalue important long-time environmental impacts of economic activities if the calculated price of the impacts are wrong. This report discusses how one may estimate the future calculated price of some environmental services. The term environmental service denotes something the presence or absence of which has an impact on the environment that can be valued. Thus, puffins, NOx emissions and suspended dust are all environmental services. The calculated price of an environmental service is the price used in socio-economic benefit-cost analyses. A calculation method is proposed and evaluated by application to such diverse environmental services as the stock of puffins, impregnated wood, NOx emissions and suspended dust. None of these services are priced in the market. The proposed method can be used to estimate the future prices of environmental services that are not priced in the market. The most important difficulties experienced with the method have been (1) how to find data for the increase in the supply of environmental services and (2) how to define environmental services in a satisfactory way. 29 refs., 5 figs., 6 tabs.

  3. Price Analysis of Railway Freight Transport under Marketing Mechanism

    Science.gov (United States)

    Shi, Ying; Fang, Xiaoping; Chen, Zhiya

    Regarding the problems in the reform of the railway tariff system and the pricing of the transport, by means of assaying the influence of the price elasticity on the artifice used for price, this article proposed multiple regressive model which analyzed price elasticity quantitatively. This model conclude multi-factors which influences on the price elasticity, such as the averagely railway freight charge, the averagely freight haulage of proximate supersede transportation mode, the GDP per capita in the point of origin, and a series of dummy variable which can reflect the features of some productive and consume demesne. It can calculate the price elasticity of different classes in different domains, and predict the freight traffic volume on different rate levels. It can calculate confidence-level, and evaluate the relevance of each parameter to get rid of irrelevant or little relevant variables. It supplied a good theoretical basis for directing the pricing of transport enterprises in market economic conditions, which is suitable for railway freight, passenger traffic and other transportation manner as well. SPSS (Statistical Package for the Social Science) software was used to calculate and analysis the example. This article realized the calculation by HYFX system(Ministry of Railways fund).

  4. Quantity precommitment and price matching

    DEFF Research Database (Denmark)

    Tumennasan, Norovsambuu

    We revisit the question of whether price matching is anti-competitive in a capacity constrained duopoly setting. We show that the effect of price matching depends on capacity. Specifically, price matching has no effect when capacity is relatively low, but it benefits the firms when capacity is...... relatively high. Interestingly, when capacity is in an intermediate range, price matching benefits only the small firm but does not affect the large firm in any way. Therefore, one has to consider capacity seriously when evaluating if price matching is anti-competitive. If the firms choose their capacities...... simultaneously before pricing decisions, then the effect of price matching is either pro-competitive or ambiguous. We show that if the cost of capacity is high, then price matching can only (weakly) decrease the market price. On the other hand, if the cost of capacity is low, then the effect of price matching on...

  5. Pricing and Signaling with Frictions

    OpenAIRE

    Alain Delacroix; Shouyong Shi

    2007-01-01

    We study a large market with directed search and signaling. Each seller chooses an investment that determines the quality of the good which is the seller's private information. A seller also chooses the price of the good and the number of selling sites. After observing sellers' choices of prices and sites, but not quality, buyers choose which price to search. The sites posting the same price and the buyers searching for that price match with each other randomly. In this environment, a seller'...

  6. Rational Asset Pricing Bubbles Revisited

    OpenAIRE

    Jan Werner

    2012-01-01

    Price bubble arises when the price of an asset exceeds the asset's fundamental value, that is, the present value of future dividend payments. The important result of Santos and Woodford (1997) says that price bubbles cannot exist in equilibrium in the standard dynamic asset pricing model with rational agents as long as assets are in strictly positive supply and the present value of total future resources is finite. This paper explores the possibility of asset price bubbles when either one of ...

  7. Forecasting Oil price and Volatility

    OpenAIRE

    Yu, Man Tao

    2009-01-01

    Commodities prices play a crucial role in commodity-related investments, strategic planning, and affect the economy. Fluctuations in commodity prices affect the decision making by producers and consumers. Within the commodity products, crude oil is the central source of energy supply. The continuous rise in oil price since 2002 has caused public concerns of higher inflation rate for different countries. In July 2008, crude oil price has rise to a historic price US$147/barrel, and dropped to U...

  8. Trade Globalization and Price Wars

    OpenAIRE

    Mbum, Patrick Awok; Nnabuko, Justie O; Odama, Abraham O

    2012-01-01

    This is a library survey of trade globalization and price wars which examine the deepening role trade globalization and the devastations price wars can degenerate. The study went through time, space and contributions of trade to globalization and enlisted a few examples of price wars andproffer solutions. Price wars were identified as plagues that do the nations, industries and individuals no good. Price wars were seen in the Chinese home appliances industry, Brazilian bananas industry, e-boo...

  9. Changes in the creditability of the Black-Scholes option pricing model due to financial turbulences

    OpenAIRE

    Angeli, Andrea; Bonz, Cornelius

    2010-01-01

    This study examines whether the performance of the Black-Scholes model to price stock index options is influenced by the general conditions of the financial markets. For this purpose we calculated the theoretical values of 5814 options (3366 put option price observations and 2448 call option price observations) under the Black-Scholes assumptions. We compared these theoretical values with the real market prices in order to put the degree of deviations in two different time windows built aroun...

  10. Decomposing the Retail Sales Index implied price deflator and the CPI

    OpenAIRE

    Richard McCrae; Craig H McLaren; John Wood; Robin Youll

    2008-01-01

    Examines the relationship between the two measures, highlighting contributions of different products to differences in growth rates over timeThis article examines the relationship between the implied price deflator derived from the Retail Sales Index and the change in prices calculated from a comparable price index constructed using components of the Consumer Prices Index. A decomposition approach is used to highlight the contribution of different products to the difference in growth rates ov...

  11. THE PRICE OF ONE SWEET CALORIE

    Directory of Open Access Journals (Sweden)

    Sebastien Buttet

    2015-10-01

    Full Text Available We propose a new measure for food prices to further examine the impact of changes in food prices and real income on individuals’ eating decisions and weight. We calculate price per calorie for food consumed away from home and food consumed at home as the dollar amount spent by households on each food category divided by the number of calories consumed. We use our newly constructed time series for price per calorie as an input into a neoclassical model of eating decisions and weight. Our goal is to propose a quantitative explanation for the increase in calories consumed away from home as well as changes in weight for men and women 1971 and 2006. We find that prices determine the allocation of calories across food types, while income determines the total number of calories consumed and thus individuals' weight. Based on our results, we share the view that taxes on food will impact what people eat but will have limited effect on reducing the population body-mass index or the obesity prevalence

  12. The oil price

    International Nuclear Information System (INIS)

    Statistical analysis cannot, alone, provide an oil price forecast. So, one needs to understand the fundamental phenomena which control the past trends since the end of world war II After a first period during which oil, thanks to its abundance, was able to increase its market share at the expense of other energies, the first oil shock reflects the rarefaction of oil resource with the tilting of the US production curve from growth to decline. Since then, the new situation is that of a ''cohabitation'' between oil and the other energies with the oil price, extremely volatile, reflecting the trial and error adjustment of the market share left to the other energies. Such a context may explain the recent oil price surge but the analogy between the US oil situation at the time of the first shock and that existing today for the world outside Middle East suggest another possibility, that of a structural change with higher future oil prices. The authors examine these two possibilities, think that the oil price will reflect both as long as one or the other will not become proven, and conclude with a series of political recommendations. (authors)

  13. Ecological Price Setting

    Directory of Open Access Journals (Sweden)

    Pauna Dan

    2011-10-01

    Full Text Available This article aims to highlight the elements to be taken into consideration when setting prices, so that they support the effort of resource saving from production, distribution and consumption activities as well as pollution prevention efforts. Communication and price support these efforts. Market mechanisms are based on price so they will not recognize the importance of these issues and will favour bidders with lower unit prices. They will not reflect the efforts that are being made for recycling or destroying waste from the production process or even the damage caused by it. Also, the article highlights the taxes that demonstrate the importance of the environment, taxes on products and activities that are destructive to the environment, which will be the basis for the reform of national systems, the effects produced and conviction of some European countries for non-compliance with the Community environmental legislation. Although the article makes reference to the need to adjust the price, which does not have a direct connection with the generation and disposal of waste, it must also be looked at in an ecological context

  14. Logistics: Price Rises Incurred by High Oil Price

    Institute of Scientific and Technical Information of China (English)

    Lai Zhihui

    2011-01-01

    @@ "When the oil price grows by 100%, the logistic indus-try will see a price growth of 40%, while the logistics in-dustry a price rise of 35%, which means every price increase of 5% in the oil price will bring along that of 2% in this industry." said Liu Zongsheng, General Manager of Itochu Logistics Co., Ltd., on the seminar "Focusing on the eco-nomic consequences of raising oil price, interest rate and deposit reserve ratio", which was held recently.

  15. Comparative analysis of features of Polish and Lithuanian Day-ahead electricity market prices

    International Nuclear Information System (INIS)

    The goal of this article is to better understand the processes of electricity market price formation in Poland and Lithuania through an analysis of the features (volatility and spikes) of Lithuanian and Polish day-ahead electricity market prices and to assess how acquired electricity price features could affect the achievement of the main goals of the national energy policy. The following indicators have been calculated to determine electricity market price volatility: the oscillation coefficient, the coefficient of variation, an adjusted coefficient of variation, the standard deviation indicator, the daily velocity indicator (based on the overall average price) and the daily velocity indicator (based on the daily average price). Critical values for electricity market price have been calculated to evaluate price spikes. This analysis reveals that electricity market-price volatility is moderate in Poland and high in Lithuania. Electricity price spikes have been an observable phenomenon both in Lithuanian and in Polish day-ahead electricity markets, but they are more common in Lithuania, encompassing 3.15% of the time period analysed in Poland and 4.68% of the time period analysed in Lithuania. Volatile, spiking and increasing electricity prices in day-ahead electricity markets in Lithuania and Poland create preconditions and substantiate the relevance of implementation of the national energy policies and measures. - Highlights: • Moderate and seasonal volatility. spiking market price and. • stable average price

  16. Economic impact on the Florida economy of energy price spikes

    International Nuclear Information System (INIS)

    A substantial disturbance in oil supplies is likely to generate a large price upsurge and a downturn in the level of economic activity. Each of these two effects diminishes demand by a certain amount. The specific price surge required to reduce demand to the lower level of supply can be calculated with an oil demand function and with empirical estimations of the association between price spikes and declines in economic activity. The first section presents an energy demand model for Florida, which provides the price and income elasticities needed. The second section includes theoretical explanations and empirical estimations of the relationship between price spikes and recessions. Based on historical evidence, it seems that Florida's and the nation's economic systems are very sensitive to oil price surges. As price spikes appear damaging to the economy, it could be expected that reductions in the price of oil are beneficial to the system. That is likely to be the case in the long run, but no empirical evidence of favorable short-term effects of oil price decreases was found. Several possible explanations and theoretical reasons are offered to explain this lack of association. The final section presents estimates of the effect of oil disruptions upon specific industries in Florida and the nation

  17. Electricity market price volatility: The case of Ontario

    International Nuclear Information System (INIS)

    Price volatility analysis has been reported in the literature for most competitive electricity markets around the world. However, no studies have been published yet that quantify price volatility in the Ontario electricity market, which is the focus of the present paper. In this paper, a comparative volatility analysis is conducted for the Ontario market and its neighboring electricity markets. Volatility indices are developed based on historical volatility and price velocity concepts, previously applied to other electricity market prices, and employed in the present work. The analysis is carried out in two scenarios: in the first scenario, the volatility indices are determined for the entire price time series. In the second scenario, the price time series are broken up into 24 time series for each of the 24 h and volatility indices are calculated for each specific hour separately. The volatility indices are also applied to the locational marginal prices of several pricing points in the New England, New York, and PJM electricity markets. The outcomes reveal that price volatility is significantly higher in Ontario than the three studied neighboring electricity markets. Furthermore, comparison of the results of this study with similar findings previously published for 15 other electricity markets demonstrates that the Ontario electricity market is one of the most volatile electricity markets world-wide. This high volatility is argued to be associated with the fact that Ontario is a single-settlement, real-time market. (author)

  18. Water desalination price from recent performances: Modelling, simulation and analysis

    International Nuclear Information System (INIS)

    The subject of the present article is the technical simulation of seawater desalination, by a one stage reverse osmosis system, the objectives of which are the recent valuation of cost price through the use of new membrane and permeator performances, the use of new means of simulation and modelling of desalination parameters, and show the main parameters influencing the cost price. We have taken as the simulation example the Seawater Desalting centre of Djannet (Boumerdes, Algeria). The present performances allow water desalting at a price of 0.5 $/m3, which is an interesting and promising price, corresponding with the very acceptable water product quality, in the order of 269 ppm. It is important to run the desalting systems by reverse osmosis under high pressure, resulting in further decrease of the desalting cost and the production of good quality water. Aberration in choice of functioning conditions produces high prices and unacceptable quality. However there exists the possibility of decreasing the price by decreasing the requirement on the product quality. The seawater temperature has an effect on the cost price and quality. The installation of big desalting centres, contributes to the decrease in prices. A very important, long and tedious calculation is effected, which is impossible to conduct without programming and informatics tools. The use of the simulation model has been much efficient in the design of desalination centres that can perform at very improved prices. (author)

  19. Water desalination price from recent performances: Modelling, simulation and analysis

    Energy Technology Data Exchange (ETDEWEB)

    Metaiche, M. [Architecture Department, Bechar University, Bechar (Algeria)]. E-mail: metaiche@yahoo.fr; Kettab, A. [Research Laboratory of Water Science, National Polytechnic School - Algiers (Algeria)]. E-mail: kettab@yahoo.fr

    2005-07-01

    The subject of the present article is the technical simulation of seawater desalination, by a one stage reverse osmosis system, the objectives of which are the recent valuation of cost price through the use of new membrane and permeator performances, the use of new means of simulation and modelling of desalination parameters, and show the main parameters influencing the cost price. We have taken as the simulation example the Seawater Desalting centre of Djannet (Boumerdes, Algeria). The present performances allow water desalting at a price of 0.5 $/m{sup 3}, which is an interesting and promising price, corresponding with the very acceptable water product quality, in the order of 269 ppm. It is important to run the desalting systems by reverse osmosis under high pressure, resulting in further decrease of the desalting cost and the production of good quality water. Aberration in choice of functioning conditions produces high prices and unacceptable quality. However there exists the possibility of decreasing the price by decreasing the requirement on the product quality. The seawater temperature has an effect on the cost price and quality. The installation of big desalting centres, contributes to the decrease in prices. A very important, long and tedious calculation is effected, which is impossible to conduct without programming and informatics tools. The use of the simulation model has been much efficient in the design of desalination centres that can perform at very improved prices. (author)

  20. Extending Credit Risk (Pricing) Models for the Simulation of Portfolios of Interest Rate and Credit Risk Sensitive Securities

    OpenAIRE

    Norbert_Jobst; Stavros A. Zenios

    2001-01-01

    We discuss extensions of intensity based models for pricing credit risk and derivative securities to the simulation and valuation of portfolios. The stochasticity in interest rates, credit spreads (default intensities) and rating migrations are incorporated in a unified framework. Scenarios of future prices of all securities are calculated in a risk-neutral world. The calculated prices are consistent with observed prices and the term structure of default free and defaultable interest rates. T...

  1. House Prices and Taxes

    DEFF Research Database (Denmark)

    Gjedsted Nielsen, Mads

    This paper is the first to consider a large scale natural experiment to estimate the effect of taxes on house prices. We find that a 1 percentage-point increase in income tax rates lead to a drop in house prices of at most 2.2%. This corresponds to a tax capitalization for the average household...... capitalization from earlier studies. Furthermore, we find no effect of property taxes on house prices. We attribute this to the low levels of Danish municipal property tax rates compared to income tax rates....... of only 31%. We use 2007 municipal reform in Denmark in which 256 municipalities changed tax rates, as an exogenous shock to taxes. The exogeneity of the shock to taxes and the size of the data set is an improvement over earlier studies. Our findings significantly downward adjust the degree of tax...

  2. Stochastic speculative price.

    Science.gov (United States)

    Samuelson, P A

    1971-02-01

    Because a commodity like wheat can be carried forward from one period to the next, speculative arbitrage serves to link its prices at different points of time. Since, however, the size of the harvest depends on complicated probability processes impossible to forecast with certainty, the minimal model for understanding market behavior must involve stochastic processes. The present study, on the basis of the axiom that it is the expected rather than the known-for-certain prices which enter into all arbitrage relations and carryover decisions, determines the behavior of price as the solution to a stochastic-dynamic-programming problem. The resulting stationary time series possesses an ergodic state and normative properties like those often observed for real-world bourses. PMID:16591903

  3. An Investigation into the Fundamental Drivers of Pricing of Residential Mortgage Products – A Risk Pricing Viewpoint

    Directory of Open Access Journals (Sweden)

    Harry M Karamujic

    2010-12-01

    Full Text Available Residential mortgage products (also known as home loans pricing has been long understood to be something of a ‘dark art’, requiring judgment and experience, rather than being an exact science. In the last decade, a lot has changed in this field and more and more lenders, primarily the larger lenders, are increasingly looking to make their pricing as exact as possible. Even so, inadequate pricing of residential mortgage products (in particular its substandard risk pricing has been seen as one of major causes of the global financial crisis (GFC and subsequent spectacular banking collapses. The underlying theme of the paper is to exhibit how contemporary lenders, in practice, price their residential mortgage products. While discussing elements of the pricing calculation particular attention was given to the exposition of how contemporary lenders price risks involved in providing home loans. Because of the importance of Basel capital accords to how financial institutions assess and quantify their risks, the paper provides an overview of Basel capital accords. The author envisages that the paper will (i help enhance comprehension of the underlying elements of the pricing calculation and the ways in which these elements relate to each other, (ii scrutinize how contemporary lenders identify and quantify risks and (iii improve consciousness of future changes in interest rates

  4. IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY

    Directory of Open Access Journals (Sweden)

    Andrea Erika NYÁRÁDI

    2007-01-01

    Full Text Available The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitability many are abandoning traditional reactive pricing procedures in favor of proactive pricing, making explicit corporate decisions to change their focus to growth in top-line sales to growth in profitability. The long-term implications of price strategies are still under-researched, and managers should be aware of shifts in customer reactions that may result from frequent adoption of certain strategies. The company pricing strategy should be seen in relation to developments in the company variables, internal ones (capital strength, competencies, organizational conditions, efficiency of the work force etc. as well as external ones (customers, competitors, the technological development etc., adopting strategic pricing. In this paper I will present the most effective pricing strategies leading to long term profitability, and also suggest practical conditions for pricing strategies to maximize profit in the long run.

  5. Pricing and Marketing Online Information Services.

    Science.gov (United States)

    Webber, Sheila Anne Elizabeth

    1998-01-01

    Discusses the pricing of online information in the broader context of marketing. Highlights include changes in the marketing context and issues of value relating to price; other reviews of online pricing; trends affecting price, including public sector involvement and the Internet; promotional pricing; price discrimination; and price aggregation…

  6. Pricing Volatility Referenced Assets

    Directory of Open Access Journals (Sweden)

    Alan De Genaro Dario

    2006-12-01

    Full Text Available Volatility swaps are contingent claims on future realized volatility. Variance swaps are similar instruments on future realized variance, the square of future realized volatility. Unlike a plain vanilla option, whose volatility exposure is contaminated by its asset price dependence, volatility and variance swaps provide a pure exposure to volatility alone. This article discusses the risk-neutral valuation of volatility and variance swaps based on the framework outlined in the Heston (1993 stochastic volatility model. Additionally, the Heston (1993 model is calibrated for foreign currency options traded at BMF and its parameters are used to price swaps on volatility and variance of the BRL / USD exchange rate.

  7. Martingale option pricing

    Science.gov (United States)

    McCauley, J. L.; Gunaratne, G. H.; Bassler, K. E.

    2007-07-01

    We show that our earlier generalization of the Black-Scholes partial differential equation (pde) for variable diffusion coefficients is equivalent to a Martingale in the risk neutral discounted stock price. Previously, the equivalence of Black-Scholes to a Martingale was proven for the case of the Gaussian returns model by Harrison and Kreps, but we prove it for a much larger class of returns models where the returns diffusion coefficient depends irreducibly on both returns x and time t. That option prices blow up if fat tails in logarithmic returns x are included in market return is also proven.

  8. Wireless network pricing

    CERN Document Server

    Huang, Jianwei

    2013-01-01

    Today's wireless communications and networking practices are tightly coupled with economic considerations, to the extent that it is almost impossible to make a sound technology choice without understanding the corresponding economic implications. This book aims at providing a foundational introduction on how microeconomics, and pricing theory in particular, can help us to understand and build better wireless networks. The book can be used as lecture notes for a course in the field of network economics, or a reference book for wireless engineers and applied economists to understand how pricing

  9. Surviving the Price Hikes

    Institute of Scientific and Technical Information of China (English)

    JESSY ZHANG

    2006-01-01

    @@ Viessmann Werke, a German-based global manufacturer of heating technology products, settled down in an industrial development zone in Beijing suburb in 2001. In recent years, however, they have witnessed a price increase for land use in their development zone and nearby areas. "There will be more infrastructure construction in this area and a new exhibition center is said to be built here," says Dr. Andreas Tank, executive manager of Viessmann Werke. "We see the demand for land is increasing and newcomers must pay higher prices for land use than we paid. "Viessmann has fixed its expenditure on land use fees by signing a long-term contract with the development zone.

  10. Nonlinear Pricing of Information Goods

    OpenAIRE

    Arun Sundararajan

    2003-01-01

    This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible, and administering usage-based pricing may involve transaction costs. It is shown that offering fixed- fee pricing in addition to a non-linear usage-based pricing scheme is always profit-improving in the presence of any non-zero transaction costs, and there may be markets in which a pure fixed-fee is optimal. This implies th...

  11. Price Statistics as a System

    OpenAIRE

    Constantin ANGHELACHE; Gabriela Victoria ANGHELACHE; Mihai GHEOGHE; Ioan PARTACHI; Sanda NAN

    2012-01-01

    A price index may be characterized as the factor giving the relative change in this value aggregate arising from changes in prices. As such, all the major price index formulae can be expressed as weighted averages of price relatives whose weights are the shares of items in the value aggregate. For the best-known price index formulae expressed as value aggregates of share-weighted averages of price relatives, we have the Laspeyres index. the Paasche index, and the Walsh and Tornqvist indices. ...

  12. Energy pricing policy in Iran

    International Nuclear Information System (INIS)

    Low energy prices in Iran do not reflect economic costs. Further distortions exist in the tariff structures of most energy sources and in their relative prices. Price reform is a key policy element for achieving increased energy conservation and economic substitution. Subsidies should be made transparent and explained by the Government, and, when eliminated, they could be compensated by target measures or direct subsidies for low income households. Price reforms are under way, with some caution though, because of possible political and inflationary consequences. In order to better understand the need for price reforms a brief analysis of the current energy pricing policy is provided there. (author)

  13. Price setting in turbulent times

    DEFF Research Database (Denmark)

    Ólafsson, Tjörvi; Pétursdóttir, Ásgerdur; Vignisdóttir, Karen Á.

    prices rather than decreasing costs to restore profit margins after an exchange rate depreciation. They also review their prices more often but nevertheless, surprisingly, have the same price change frequency as the median firm. On the other hand, price review frequency declines and time......-dependent pricing increases as domestic labour costs rise relative to total production costs. The results provide important insight into inflation dynamics due to an interaction between high and asymmetric exchange rate pass-through and price indexation. This interaction causes an exchange rate depreciation...

  14. Holiday Price Rigidity and Cost of Price Adjustment

    OpenAIRE

    Daniel Levy; Georg Müller; Shantanu Dutta; Mark Bergen

    2002-01-01

    Using unique retail and wholesale price data for 4,532 products carried by a major Mid-western grocery retailer, we find evidence of significant retail price rigidity during the Thanksgiving through Christmas holiday period relative to the rest of the year. We suggest that this pattern of holiday retail price rigidity is best explained by an increased opportunity cost of changing prices at these stores during the holiday period. Evidence based on discussions with retail managers suggests that...

  15. Divisia amount and price index for energy consumption

    International Nuclear Information System (INIS)

    In connection with the calculation of total energy consumption related to aggregation of the individual fuel's combustion values, an alternative to Btu aggregation (combustion value measurement), designated the ''Divisia index'', is presented. This represents an economic measure for energy consumption. The Divisia index is demonstrated in relation to total national energy consumption and total energy consumption within the Danish housing sector and also with regard to the estimation of price and income elasticity within energy demand. It is only possible to utilize the Divisia index in relation to the last 20 years, which is the period where energy consumption has stagnated. The question of possible irreversible effects on energy consumption caused by large variations in energy prices is discussed. It is suggested that the reaction to a fall in prices is different and less significant than is the case with price rises. In the long term, results point at a reasonably high price elasticity within energy demand. (AB) (22 refs.)

  16. Heterogeneous Responses of Chinese Cities' Housing Prices to Monetary Policies

    Institute of Scientific and Technical Information of China (English)

    闫妍; 王延颋; 朱晓武

    2011-01-01

    This works examine the responses of housing prices to the monetary policies in various Chinese cities. Thirty-five large and medium sized Chinese cities are classified into six clusters applying the minimum variance clustering method according to the calculated correlation coefficients between the housing price indices of every two cities. Time difference correlation analysis is then employed to quantify the relations between the housing price indices of the six clusters and the monetary policies. It is suggested that the housing prices of various cities evolved at different paces and their responses to the monetary policies are heterogeneous, and local economic features are more important than geographic distances in determining the housing price trends.

  17. Non-Parametric Extraction of Implied Asset Price Distributions

    CERN Document Server

    Healy, J V; Read, B J; Cai, F F; Healy, Jerome V.; Dixon, Maurice; Read, Brian J.; Cai, Fang Fang

    2006-01-01

    Extracting the risk neutral density (RND) function from option prices is well defined in principle, but is very sensitive to errors in practice. For risk management, knowledge of the entire RND provides more information for Value-at-Risk (VaR) calculations than implied volatility alone [1]. Typically, RNDs are deduced from option prices by making a distributional assumption, or relying on implied volatility [2]. We present a fully non-parametric method for extracting RNDs from observed option prices. The aim is to obtain a continuous, smooth, monotonic, and convex pricing function that is twice differentiable. Thus, irregularities such as negative probabilities that afflict many existing RND estimation techniques are reduced. Our method employs neural networks to obtain a smoothed pricing function, and a central finite difference approximation to the second derivative to extract the required gradients. This novel technique was successfully applied to a large set of FTSE 100 daily European exercise (ESX) put o...

  18. Heterogeneous Responses of Chinese Cities' Housing Prices to Monetary Policies

    Science.gov (United States)

    Yan, Yan; Wang, Yan-Ting; Zhu, Xiao-Wu

    2011-10-01

    This works examine the responses of housing prices to the monetary policies in various Chinese cities. Thirty-five large and medium sized Chinese cities are classified into six clusters applying the minimum variance clustering method according to the calculated correlation coefficients between the housing price indices of every two cities. Time difference correlation analysis is then employed to quantify the relations between the housing price indices of the six clusters and the monetary policies. It is suggested that the housing prices of various cities evolved at different paces and their responses to the monetary policies are heterogeneous, and local economic features are more important than geographic distances in determining the housing price trends.

  19. Multiple kernel support vector regression for pricing nifty option

    Directory of Open Access Journals (Sweden)

    Neetu Verma

    2015-09-01

    Full Text Available The goal of present experiments is to investigate the use of multiple kernel learning as a tool for pricing options in the context of Indian stock market for Nifty index options. In this paper, fair price of an option is predicted by Multiple Kernel Support Vector Regression (MKLSVR using linear combinations of kernels and Single Kernel Support Vector Regression (SKSVR. Prices of option highly depend on different money market conditions like deep-in-the-money, in-the-money, at-the-money, out-of-money and deep-out-of-money condition. The experimental study attempts to identify the forecasting errors with the help of mean square error; root meant square error, and normalized root meant square error between the market option prices and the calculated option prices by model for all market conditions. The results reflect that multiple kernel support vector regression performed fairly well in comparison to support vector regression with single kernel.

  20. Sentiment and art prices

    NARCIS (Netherlands)

    Penasse, J.N.G.; Renneboog, L.D.R.; Spaenjers, C.

    2014-01-01

    We hypothesize the existence of a slow-moving fad component in art prices. Using unique panel survey data on art market participants’ confidence levels in the outlook for a set of artists, we find that sentiment indeed predicts short-term returns.

  1. 2050: A Pricing Odyssey

    Energy Technology Data Exchange (ETDEWEB)

    Faruqui, Ahmad

    2006-10-15

    The author uses the Rip Van Winkle approach favored by marketers to gaze, clear-eyed, into the future - say, the year 2050 - to visualize alternative demand-response possibilities. Dare we go California Dreamin' of a distant utopia - or is it inevitable that pricing myopia will keep us from attaining the fulfillment of many of our career goals? (author)

  2. Pricing methodologies and approaches

    International Nuclear Information System (INIS)

    The following topics are dealt with: Role of regulatory control in the electric power market; Price regulation; Market monitoring; Quality of supply regulation; Regulatory challenges in Central and Eastern Europe. The findings of these questions are summarized in the Summary. (R.P.)

  3. The Price Is Right?

    Science.gov (United States)

    Schaffhauser, Dian

    2012-01-01

    There's something about textbook prices that generates outrage in ways that other college expenses, such as housing and technology fees, don't. Maybe it's the shock felt by new students when faced with a $900 bill after getting their textbooks for free in K-12. Maybe it's the awful realization that $40,000 in tuition and board doesn't even cover…

  4. On Storekeepers' Pricing Behavior.

    NARCIS (Netherlands)

    B. Bode (Ben); J. Koerts (Johan); A.R. Thurik (Roy)

    1986-01-01

    textabstractThis research note deals with a quantitative analysis of differences in percentage gross margin between individual stores in the retail trade. A number of hypotheses on pricing behavior of storekeepers are tested using Dutch survey data from nine different types of retail stores. We defi

  5. MARCH 2005 PRICES

    Institute of Scientific and Technical Information of China (English)

    2005-01-01

    Continuous cold RE market has been a headache for producers. Markup of raw materials, energy and transportation expense is a disaster in succession. Entering March, there is a trend of warm-up in the market, and some RE products have got higher prices than last year. Details are listed below.

  6. Pricing complexity options

    OpenAIRE

    Malihe Alikhani; Bj{\\o}rn Kjos-Hanssen; Amirarsalan Pakravan; Babak Saadat

    2015-01-01

    We consider options that pay the complexity deficiency of a sequence of up and down ticks of a stock upon exercise. We study the price of European and American versions of this option numerically for automatic complexity, and theoretically for Kolmogorov complexity. We also consider run complexity, which is a restricted form of automatic complexity.

  7. Price of Terbia Soaring

    Institute of Scientific and Technical Information of China (English)

    2005-01-01

    Recently, price of terbia soars to RMB $2600/ nearly changing by day. It is estimated that it will climt RMB$3000/Kg or so. Rising of terbia is mainly driven following factors: 1. Reduced Raw Materials High terbium contained Longnan ore in Ganzhou completely stopped leaching, which will result in the sh

  8. Housing price forecastability

    DEFF Research Database (Denmark)

    Bork, Lasse; Møller, Stig Vinther

    2012-01-01

    We examine US housing price forecastability using a common factor approach based on a large panel of 122 economic time series. We …nd that a simple three-factor model generates an explanatory power of about 50% in one-quarter ahead in-sample forecasting regressions. The predictive power of the mo...

  9. Transfer Pricing Principles

    DEFF Research Database (Denmark)

    Jensen, Dennis Ramsdahl

    Konferencebidraget indeholder en kritisk analyse af transfer pricing reglerne på henholdsvis moms og indkomstskatterettens område med henblik på en diskussion af, det er hensigtsmæssigt med en harmonisering af reglerne på tværs af de to retsområder...

  10. Option pricing: Stock price, stock velocity and the acceleration Lagrangian

    Science.gov (United States)

    Baaquie, Belal E.; Du, Xin; Bhanap, Jitendra

    2014-12-01

    The industry standard Black-Scholes option pricing formula is based on the current value of the underlying security and other fixed parameters of the model. The Black-Scholes formula, with a fixed volatility, cannot match the market's option price; instead, it has come to be used as a formula for generating the option price, once the so called implied volatility of the option is provided as additional input. The implied volatility not only is an entire surface, depending on the strike price and maturity of the option, but also depends on calendar time, changing from day to day. The point of view adopted in this paper is that the instantaneous rate of return of the security carries part of the information that is provided by implied volatility, and with a few (time-independent) parameters required for a complete pricing formula. An option pricing formula is developed that is based on knowing the value of both the current price and rate of return of the underlying security which in physics is called velocity. Using an acceleration Lagrangian model based on the formalism of quantum mathematics, we derive the pricing formula for European call options. The implied volatility of the market can be generated by our pricing formula. Our option price is applied to foreign exchange rates and equities and the accuracy is compared with Black-Scholes pricing formula and with the market price.

  11. Price Regulations in a Multi-unit Uniform Price Auction

    DEFF Research Database (Denmark)

    Boom, Anette

    Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does not...

  12. Oil Prices Take a Hike

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    The National Development and Reform Commission(NDRC),China’s top economic planner,announced at the end of October that the benchmark prices of gasoline,diesel oil and aviation kerosene would be raised by 500 yuan per ton. Recently,international oil prices have been rising continuously.Crude oil futures prices traded in New York surged to$93 per barrel on October 29. However,in China,oil prices are set by the government and not by the market. The recent hike on the price of oil in China is a measure implemented,to narrow the gap between soaring global crude oil prices and domestic fuel prices.NDRC officials answered questions posed by Xinhua News Agency about recent oil price hikes.The questions and answers follow:

  13. Higher fuel and food prices

    DEFF Research Database (Denmark)

    Arndt, Channing; Benfica, Rui; Maximiano, Nelson;

    2008-01-01

    Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price rises are analyzed using various approaches. Detailed price data show that the world price increases are being transmitted to domestic prices. Short-run net benefit ratio...... analysis indicates that urban households and households in the southern region are more vulnerable to food price increases. Rural households, particularly in the North and Center, often benefit from being in a net seller position. Longer-term analysis using a computable general equilibrium (CGE) model...... of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Again, negative impacts are larger in urban areas. The importance of agricultural production response in general and export response in particular is highlighted. Policy analysis...

  14. Price knowledge during grocery shopping

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup; Grunert, Klaus G

    2014-01-01

    Past research on consumer price knowledge has varied considerably partly due to differences in how and when price knowledge is measured.This paper applies a multi-point, multi-measure approach to reconcile differences in past price knowledge research by examining systematicrelationships between...... accessible at the store exit. These findings enable the authors to reconcile diverging results from past research,showing how consumer price knowledge evolves and suggesting that the vast majority of consumers learn about prices, whether consciously orunconsciously, during grocery shopping. Thus, when...... applying a multi-point, multi-measure approach, consumers appear to know more aboutprices than suggested by past research. Determinants of price knowledge are also examined and the results indicate that price knowledge buildsup not only because of active search but also due to accidental exposure to prices...

  15. Resins Showed Different Price Change

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    @@ Polyethylene In early June 2007,due to the unduly price rise in earlier months, the demand in downstream sectors did not increase synchronously, and the offer price of LLDPE (linear low density polyethylene) remained up trend because of tense supply.

  16. Oil price prospects

    International Nuclear Information System (INIS)

    In this paper, four different, popular approaches to the analysis of oil price movements will be considered and an alternative method will be proposed. Whilst we await the development of a rigorous theoretical framework within which to evaluate the phenomenon of oil price movements some progress may be effected by an amalgam of approaches, with the traditional supply and demand model being supplemented by observations regarding political and social developments in particular countries or regions, together with an assessment of emerging and prospective technological achievements. In this way it should be possible to identify the critical influences at work, from which it should also be possible to select either the single most important variable or combination of variables, affecting the oil price. Moreover, it is my belief that the crucial variables influencing the oil price almost certainly, are more likely to be political and social, rather than economic. In this context and notwithstanding the fact that there is only a minimal level of surplus productive capacity in the world oil industry at present (perhaps 1-2 million b/d albeit rising rapidly), it is reasonable to conclude that oil prices will average around $18-19 a barrel for North Sea Brent in 1992 and 1993, with oscillations of $2-4 a barrel either side, rising slightly in 1994 to $19-20 a barrel and to $20-21 a barrel in 1995. Thereafter, the most likely outcome is for a rise in line with inflation (say $ a barrel/annum) with no prospect of an upward spike, because demand will be weaker than most commentators expect up to the year 2000, whilst OPEC oil supplies will be substantially higher than the consensus forecast. (author)

  17. Price determination for hydrogen produced from bio-ethanol in Argentina

    Energy Technology Data Exchange (ETDEWEB)

    Gregorini, V.A.; Pasquevich, D. [Instituto de Energia y Desarrollo Sustentable - CNEA, Av. Del Libertador 8250, Buenos Aires (Argentina); Laborde, M. [Facultad de Ingenieria - Universidad de Buenos Aires, Ciudad Universitaria, Buenos Aires (Argentina)

    2010-06-15

    A massive penetration for hydrogen as a fuel vector requires a price reduction against fossil fuels (up to lower or at less equal to current prices). That is why it is important to calculate the current prices, so that we can determinate the gap between them and work in reducing them. In order to follow properly prices evolution it is necessary been able to compare data generated by Universities, Laboratories and Industries. So that, DOE creates in 2003 a tool (H2A) to determine prices for hydrogen, with some assumptions and pre defined values, to facilitate transparency and consistency of data. In this work we will use the H2A tool to calculate de price of hydrogen produced in a bio-ethanol semi-industrial Plant in Argentina, and we will compare it with the prices of USA studies. (author)

  18. Option pricing formulas based on a non-Gaussian stock price model.

    Science.gov (United States)

    Borland, Lisa

    2002-08-26

    Options are financial instruments that depend on the underlying stock. We explain their non-Gaussian fluctuations using the nonextensive thermodynamics parameter q. A generalized form of the Black-Scholes (BS) partial differential equation and some closed-form solutions are obtained. The standard BS equation (q=1) which is used by economists to calculate option prices requires multiple values of the stock volatility (known as the volatility smile). Using q=1.5 which well models the empirical distribution of returns, we get a good description of option prices using a single volatility. PMID:12190447

  19. Uniform pricing and social welfare

    OpenAIRE

    Bertoletti, Paolo

    2005-01-01

    We re-examine the case for uniform pricing in a monopolistic third-degree price-discrimination setting by introducing differentiated costs. A profit-maximizing monopolist could then use price differentiation to reduce the production of the more costly goods, thereby decreasing average cost and increasing welfare. Indeed, monopolistic price differentiation can improve welfare and also aggregate consumer surplus even if, as in the benchmark linear case, total output does not increase. According...

  20. Should firms employ personalized pricing?

    OpenAIRE

    Matsumura, Toshihiro; Matsushima, Noriaki

    2013-01-01

    The recent developments in information technology (IT) have enabled firms to employ personalized pricing. Should all firms employ personalized pricing even though the adaptation costs of such pricing strategies are not high? This paper theoretically demonstrates a situation in which all firms do not always employ personalized pricing even though the fixed costs to do so is zero. The model is based on those of Thisse and Vives (1988) and Shaffer and Zhang (2002). Our model incorporates the fac...

  1. Brand the Pricing: Critical Critique

    OpenAIRE

    Alam Kazmi, Syed Hasnain

    2015-01-01

    Brand pricing decision models and established theories in the marketing and econometrics focus typically on assuming the symmetric competing businesses. The empirical generalities are key for strategic marketplace planning. The significance of pricing to customer store and brand choices are always regarded as a widely known truth among marketing scholars and explains consumer’s role responding to their psychological representations of price rather than price itself. Scholars have ...

  2. Water Pricing Models: a survey

    OpenAIRE

    H. Monteiro

    2005-01-01

    JEL Classification: L95, Q25. This paper surveys water pricing models, highlighting some important results. Efficiency requires marginal cost pricing. Intra-annual price changes or customer differentiation to reflect differences in marginal costs can enhance efficiency. A marginal cost pricing mechanism may signal the value that consumers attribute to further capacity expansions as the water supply system approaches its capacity limit and marginal cost rises. However, pure m...

  3. Immigration and Swiss House Prices

    OpenAIRE

    Degen, Kathrin; Andreas M. Fischer

    2010-01-01

    This study examines the behavior of Swiss house prices to immigration flows for 85 districts from 2001 to 2006. The results show that the nexus between immigration and house prices holds even in an environment of low house price inflation, nationwide rent control, and modest immigration flows. An immigration inflow equal to 1% of an area's population is coincident with an increase in prices for single-family homes of about 2.7%: a result consistent with previous studies. The overall immigrati...

  4. Strategic pricing of equity issues

    OpenAIRE

    Klaus Ritzberger; Frank Milne

    2002-01-01

    Consider a general equilibrium model where agents may behave strategically. Specifically, suppose some firm issues new shares. If the primary market price is controlled by the issuing institution and investors' expectations on future equity prices are constant in their share purchases, the share price on the primary market cannot exceed the secondary market share price. In certain cases this may imply strict underpricing of newly issued shares. If investors perceive an influence on future sha...

  5. Option Pricing and Bayesian Learning

    OpenAIRE

    Jönsson, Ola

    2007-01-01

    This thesis consists of three chapters devoted to both empirical and theoretical aspects of option pricing. The first chapter investigates the market for European options on the Swedish OMX index using daily data for the period 1993-2000. The assumption of constant volatility of the returns underlying the Black and Scholes option pricing formula is assessed by extracting the volatilities implied by the observed call prices and put prices. These are then related to moneyness and time to...

  6. Pricing objectives in nonprofit hospitals.

    OpenAIRE

    Bauerschmidt, A D; P. Jacobs

    1985-01-01

    This article reports on a survey of 60 financial managers of nonprofit hospitals in the eastern United States relating to the importance of a number of factors which influence their pricing decisions and the pricing objectives which they pursue. Among the results uncovered by the responses: that trustees are the single most important body in the price-setting process (doctors play a relatively unimportant role); that hospital pricing goals are more related to target net revenue than profit ma...

  7. Forecasting extreme electricity spot prices

    OpenAIRE

    Volodymyr Korniichuk

    2012-01-01

    We propose a model for forecasting extreme electricity prices in real time (high frequency) settings. The unique feature of our model is its ability to forecast electricity price exceedances over very high thresholds, where only a few (if any) observations are available. The model can also be applied for simulating times of occurrence and magnitudes of the extreme prices. We employ a copula with a changing dependence parameter for capturing serial dependence in the extreme prices and the cens...

  8. A New Dynamic Pricing Model based on Convex Hull Pricing

    OpenAIRE

    Ito, Naoki; Takeda, Akiko; Namerikawa, Toru

    2013-01-01

    This paper presents a new dynamic pricing model (a.k.a. real-time pricing) that reflects startup costs of generators. Dynamic pricing, which is a method to control demand by pricing electricity at hourly (or more often) intervals, has been studied by many researchers. They assume that the cost functions of suppliers are convex, although they may be nonconvex because of the startup costs of generators in practice. We provide a dynamic pricing model that takes into account such cost functions w...

  9. Price Regulations in a Multi-unit Uniform Price Auction

    DEFF Research Database (Denmark)

    Boom, Anette

    Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does not...... exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small...

  10. Do Stock Prices Conform to an Absolute Price Level?

    OpenAIRE

    Burnie, David; de Ridder, Adri

    2011-01-01

    We study nominal and real stock prices in Sweden over the one hundred and ten year period 1900-2009. We find that the average stock price has declined over time; consistent with the drop in price levels found by Chittenden et al. (2010) but while falling they do not exhibit the constant price level suggested by Weld et al. (2009) given the continued decline in prices over time. In a multivariate setting, the frequency of stock splits, stock dividends and IPOs are positively related to the fre...

  11. Price Regulations in a Multi-unit Uniform Price Auction

    DEFF Research Database (Denmark)

    Boom, Anette

    exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small......Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does not...

  12. Price Regulations in a Multi-unit Uniform Price Auction

    DEFF Research Database (Denmark)

    Boom, Anette

    not exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small......Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does...

  13. China’s Pricing Prowess

    Institute of Scientific and Technical Information of China (English)

    2009-01-01

    China adheres to a more flexible oil pricing mechanismBy ordering a hefty 9-percent price increase in gasoline and diesel, China is lending credibility to its pledges of a more market-oriented pricing system. The decision, announced by the National Development and Reform Commission

  14. RESTAURANT NO. 2: PRICE INCREASES

    CERN Multimedia

    2003-01-01

    'DSR', the concession holder of Restaurant no. 2 (bldg. 504 - Meyrin site), has submitted to the Restaurant Supervisory Committee a request to increase certain prices. After close examination, the Committee has established that the proposed increases are compatible with the relevant price indexing mechanisms and other contractual conditions. The new prices will apply as from Monday, June 30, 2003.

  15. RESTAURANT NO. 3: PRICE INCREASES

    CERN Multimedia

    2003-01-01

    'AVENANCE', the concession holder of Restaurant no. 3 (bldg. 866 - Prévessin site), has submitted to the Restaurant Supervisory Committee a request to increase its prices. After close examination, the Committee has established that the proposed increases are compatible with the relevant price indexing mechanisms and other contractual conditions. The new prices will apply as from Monday, June 2, 2003.

  16. Price Discrimination: A Classroom Experiment

    Science.gov (United States)

    Aguiló, Paula; Sard, Maria; Tugores, Maria

    2016-01-01

    In this article, the authors describe a classroom experiment aimed at familiarizing students with different types of price discrimination (first-, second-, and third-degree price discrimination). During the experiment, the students were asked to decide what tariffs to set as monopolists for each of the price discrimination scenarios under…

  17. Fat Tails in Power Prices

    NARCIS (Netherlands)

    R. Huisman (Ronald); C. Huurman

    2003-01-01

    textabstractSpot power prices exhibit extreme price jumps and the tendency to oscillate around a long-term mean. Despite these well-known characteristics, electricity price models used for Monte Carlo simulations, VaR related measures, or derivatives valuation, often assume normally distributed resi

  18. "Pricing Average Options on Commodities"

    OpenAIRE

    Kenichiro Shiraya; Akihiko Takahashi

    2010-01-01

    This paper proposes a new approximation formula for pricing average options on commodities under a stochastic volatility environment. In particular, it derives an option pricing formula under Heston and an extended lambda-SABR stochastic volatility models (which includes an extended SABR model as a special case). Moreover, numerical examples support the accuracy of the proposed average option pricing formula.

  19. Higher prices in Jamaica.

    Science.gov (United States)

    1982-03-01

    Price increases in the Jamaica CSM program went into effect on August 31, 1981. The program began in 1975. While the need for higher prices has been under discussion for the past 3 years, this is the 1st time the requisite approval from the Jamaica Price Commission has been obtained. The Jamaica National Family Planning Board (JNFPB) reports that the Panther 3-pack (condom) is up US$0.15 to US$0.30. Each Perle package (oral contraceptive) was increased by US$0.20. Single cycle Perle now sells for US$0.50, and 3-pack Perle sells for US$1.10. The 6-year price stagnation experienced by the CSM program resulted in a decreasing operational budget as program costs continued to rise. Marketing costs alone during this period escalated by 100-300%. For example, Panther pop-up display cartons cost the project US 16U each in 1975. By 1979 the same product cost US 49U. Newspaper advertisements have increased from the 1975 cost of US$68.00 to nearly $200.00 per placement. The overall inflation rate in Jamaica during the last 5 years has averaged more than 20% annually. In the face of these rising costs, outlet expansion for Perle has been prevented, wholesaler margins have been unavailable, and new retailer training has been discontinued. It is projected that the new prices will result in an annual increased revenues of US$80,000 which will be used to reinstate these essential marketing activities. The JNFPB is also planning to introduce a Panther 12-pack and Panther strips to the CSM product line. According to Marketing Manager Aston Evans, "We believe the public is now ready for this type of packaging" which is scheduled to be available soon. Panther is presently only available in a 3-pack, but annual sales have been steady. The new 12-pack will be stocked on supermarket shelves to provide higher product visibility and wider distribution. The selling price has been set as US$1.20 and is expected to yield a 25% increase in sales during the 1st year. A complete sales promotion

  20. Risk pricing practices in finance, insurance and construction

    OpenAIRE

    Laryea, Samuel

    2008-01-01

    A review of current risk pricing practices in the financial, insurance and construction sectors is conducted through a comprehensive literature review. The purpose was to inform a study on risk and price in the tendering processes of contractors: specifically, how contractors take account of risk when they are calculating their bids for construction work. The reference to mainstream literature was in view of construction management research as a field of application rather than a fundamental ...

  1. Monetary Effects on Nominal Oil Prices

    OpenAIRE

    Max Gillman; Anton Nakov

    2008-01-01

    The paper presents a theory of nominal asset prices for competitively owned oil. Focusing on monetary effects, with flexible oil prices the US dollar oil price should follow the aggregate US price level. But with rigid nominal oil prices, the nominal oil price jumps proportionally to nominal interest rate increases. We find evidence for structural breaks in the nominal oil price that are used to illustrate the theory of oil price jumps. The evidence also indicates strong Granger causality of ...

  2. Industrial Pricing: Theory and Managerial Practice

    OpenAIRE

    Peter M. Noble; Thomas S. Gruca

    1999-01-01

    We organize the existing theoretical pricing research into a new two-level framework for industrial goods pricing. The first level consists of four pricing situations: New Product, Competitive, Product Line, and Cost-based. The second level consists of the pricing strategies appropriate for a given situation. For example, within the new product pricing situation, there are three alternative pricing strategies: Skim, Penetration, and Experience Curve pricing. There are a total of ten pricing s...

  3. Calculating the Greeks by Cubature formulas

    OpenAIRE

    Teichmann, Josef

    2004-01-01

    We provide cubature formulas for the calculation of derivatives of expected values in the spririt of Terry Lyons and Nicolas Victoir. In financial mathematics derivatives of option prices with respect to initial values, so called Greeks, are of particular importance as hedging parameters. Cubature formulas allow to calculate these quantities very quickly. Simple examples are added to the theoretical exposition.

  4. Controlling Price-Responsive Heat Pumps for Overload Elimination in Distribution Systems

    DEFF Research Database (Denmark)

    Csetvei, Zsuzsa; Østergaard, Jacob; Nyeng, Preben

    2011-01-01

    This paper investigates the possibility of applying electric heat pumps with the control-by-price-concept in order to avoid overload in a local distribution system. The proposed control algorithm is based upon a centrally dispatched real-time market price, reflecting the state of a larger power...... system, and is extended with a local price control for overload elimination on the corresponding feeder. The paper presents the mathematical models of a two-node system with price-responsive heat pumps, the chosen methodology of the central price calculation, and the proposed local feedback control...

  5. Energy Price Reform in China

    Institute of Scientific and Technical Information of China (English)

    2006-01-01

    Market-based reform of energy prices is the most effective approach to enhancing energy efficiency. The policies of energy conservation and enhancing energy efficiency in the 1 lth Five-year Plan period (2006-2010) work directly to set up a series of reform measures related to energy pricing by market mechanism. Energy price reform will deeply influence China's industrial interest pattern, and its development in the next five years and even 10 or 20 years.This paper analyzes the significance, timing, present status and problems related to energy price reform, and discusses the goal, principle and measures of coal, electricity, oil and gas price reform separately.

  6. 7 CFR 1000.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... administrator for each Federal milk marketing order shall announce the following prices and pricing factors for... advanced pricing factors. 1000.53 Section 1000.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF...

  7. The impact of electricity price changes on industrial prices and the general price level in Korea

    International Nuclear Information System (INIS)

    Electricity has played an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This study attempts to investigate the impact of electricity price changes on industrial prices and the general price level using input–output (I–O) analysis. To this end, we apply the I–O price model to the 2011 I–O table recently produced by the Bank of Korea, paying particular attention to the electricity sector by considering it as exogenous and then investigating its impacts. The impacts of the electricity price changes on each industrial sector's prices and the general price level are quantitatively derived. For example, the overall impact of a 10% increase in electricity price on the Korean national economy is estimated to be 0.4367%. We also report the results from the model with the electricity sector endogenous and the model with endogenous electricity and labor sectors. This information can be usefully utilized in decision-making regarding price management for electricity. - Highlights: • We investigate the impact of electricity price changes on the Korean economy. • We use the input–output (I–O) analysis specifying the electricity sector as exogenous. • We apply the I–O price model to 2010 I–O table produced by the Bank of Korea. • The impact of a 10% increase in electricity price on the Korean economy is 0.2176%

  8. Menu Pricing and Learning

    OpenAIRE

    Alessandro Bonatti

    2011-01-01

    We analyze the design of dynamic menus to sell experience goods. The quality of the product is initially unknown, and the total quantity sold in each period determines the amount of information in the market. We characterize the optimum menu as a function of consumers' beliefs, and the dynamic adjustments resulting from the diffusion of information. The firm faces a dynamic trade-off between gains from trade, information production, and information rents. It initially charges lower prices, sa...

  9. The Price of Prejudice

    OpenAIRE

    Hedegaard, Morten; Tyran, Jean-Robert

    2014-01-01

    We present a new type of field experiment to investigate ethnic prejudice in the workplace. Our design allows us to study how potential discriminators respond to changes in the cost of discrimination. We find that ethnic discrimination is common but remarkably responsive to the "price of prejudice", i.e. to the opportunity cost of choosing a less productive worker on ethnic grounds. In addition, we find that the standard theory of statistical discrimination fails to explain observed choices, ...

  10. Martingale Option Pricing

    OpenAIRE

    McCauley, Joseph L.; Gunaratne, Gemunu H.; Bassler, Kevin E.

    2006-01-01

    We show that our earlier generalization of the Black-Scholes partial differential equation (pde) for variable diffusion coefficients is equivalent to a Martingale in the risk neutral discounted stock price. Previously, the equivalence of Black-Scholes to a Martingale was proven for the case of the Gaussian returns model by Harrison and Kreps, but we prove it for much a much larger class of returns models where the returns diffusion coefficient depends irreducibly on both returns x and time t...

  11. Price Dynamics in China

    OpenAIRE

    International Monetary Fund

    2010-01-01

    Chinese inflation, particularly non-food inflation, has been surprisingly modest in recent years. We find that supply factors, including those captured through upstream foreign commodity and producer prices, have been important drivers of non-food inflation, as has foreign demand for Chinese goods. Domestic demand and monetary conditions seem less important, possibly reflecting a large domestic output gap generated by many years of high investment. Inflation varies systemically within China, ...

  12. Salience and Asset Prices

    OpenAIRE

    Bordalo, Pedro; Gennaioli, Nicola; Shleifer, Andrei

    2013-01-01

    We present a simple model of asset pricing in which payoff salience drives investors' demand for risky assets. The key implication is that extreme payoffs receive disproportionate weight in the market valuation of assets. The model accounts for several puzzles in finance in an intuitive way, including preference for assets with a chance of very high payoffs, an aggregate equity premium, and countercyclical variation in stock market returns.

  13. Asset pricing without garbage

    OpenAIRE

    Kroencke, Tim Alexander

    2013-01-01

    This paper provides an explanation why garbage as a measure of consumption implies a several times lower coefficient of relative risk aversion in the consumption-based asset pricing model than consumption based on the official National Income and Product Ac- counts (NIPA): Unlike garbage, NIPA consumption is filtered to mitigate measurement error. I apply a structural model of the filtering process, which allows to revoke the filter inherent in NIPA consumption. "Unfiltered NIP...

  14. Securitization and asset prices

    OpenAIRE

    Yunus Aksoy; Henrique S. Basso

    2015-01-01

    We investigate the link between securitization and asset prices and show that increases in the growth rate of the volume of ABS issuance lead to a sizable decline in bond and equity premia. Furthermore, we show that in a model where banks select their portfolio of assets and create synthetic securities, the compensation for undertaking risk decreases as securitization increases. The pooling and tranching of credit assets relaxes both the funding and the risk constraints banks face allowing th...

  15. Compartmentalising gold prices

    OpenAIRE

    Sanderson, Rohnn

    2011-01-01

    Deriving a functional form for a series of prices over time is difficult. It is common to assume some linearly estimable form for prediction purposes. While this can produce accurate short run forecasts it fails to identify longer trends and patterns that may exist in financial data. Particularly troublesome is the potential for chaotic behaviour which can look like standard autocorrelation. Also, components of a price’s behaviour may not be linear or may be unable to be structured well in a ...

  16. Endogenous price leadership

    OpenAIRE

    van Damme, E.E.C.; Hurkens, S.

    1998-01-01

    We consider a linear price setting duopoly game with differentiated products and determine endogenously which of the players will lead and which will follow. While the follower role is most attractive for each firm, we show that waiting is more risky for the low cost firm so that, consequently, risk dominance considerations, as in Harsanyi and Selten (1988), allow the conclusion that only the high cost firm will choose to wait. Hence, the low cost firm will emerge a...

  17. Pricing Volatility Referenced Assets

    OpenAIRE

    Alan De Genaro Dario

    2006-01-01

    Volatility swaps are contingent claims on future realized volatility. Variance swaps are similar instruments on future realized variance, the square of future realized volatility. Unlike a plain vanilla option, whose volatility exposure is contaminated by its asset price dependence, volatility and variance swaps provide a pure exposure to volatility alone. This article discusses the risk-neutral valuation of volatility and variance swaps based on the framework outlined in the Heston (1993) st...

  18. The price for oil. An economic outline

    International Nuclear Information System (INIS)

    This memorandum is dedicated to two different prices for oil: the spot price for oil supply in the present and the futures price for oil supply in the future. Two questions are dealt with: (1) which are the characteristics of the time series of those oil prices?; and (2) what can be learnt from futures prices about future oil prices

  19. Prediction and calculation for new energy development

    Institute of Scientific and Technical Information of China (English)

    Fu Yuhua; Fu Anjie

    2008-01-01

    Some important questions for new energy development were discussed, such as the prediction and calculation of sea surface temperature, ocean wave, offshore platform price, typhoon track, fn'e status, vibration due to earth-quake, energy price, stock market's trend and so on with the fractal methods ( including the four ones of constant di-mension fractal, variable dimension fractal, complex number dimension fractal and fractal series) and the improved res-caled range analysis (R/S analysis).

  20. High Drug Prices Hurt Everyone.

    Science.gov (United States)

    Halpenny, Genevieve M

    2016-06-01

    Turing Pharmaceuticals raised the price of Daraprim 5,500%, illustrating how the absence of competition in the sale of low-volume, low-price drugs can lead to price gouging. For patented medicines, society allows supracompetitive pricing to incentivize innovation. However, Gilead's decision to sell Sovaldi for $84,000 per course of treatment raised the question whether society must accept any price set by the patent holder. Unfortunately, these incidents illustrate a broader trend in which pharmaceutical prices are greater in the United States than abroad, placing the United States at the top in per capita expenditures on pharmaceuticals. The Canadian and Indian approaches to balancing patient access to medicines with other policy objectives, including stimulating investment in R&D, point to a multifaceted solution. Proposed solutions include prevention, increasing pharmaceutical coverage, and increasing transparency. Strategic policy requires access to information regarding R&D costs, private listing agreements (prices charged to different customers), and patient outcomes. PMID:27326322

  1. Oil price uncertainty in Canada

    Energy Technology Data Exchange (ETDEWEB)

    Elder, John [Department of Finance and Real Estate, 1272 Campus Delivery, Colorado State University, Fort Collins, CO 80523 (United States); Serletis, Apostolos [Department of Economics, University of Calgary, Calgary, Alberta (Canada)

    2009-11-15

    Bernanke [Bernanke, Ben S. Irreversibility, uncertainty, and cyclical investment. Quarterly Journal of Economics 98 (1983), 85-106.] shows how uncertainty about energy prices may induce optimizing firms to postpone investment decisions, thereby leading to a decline in aggregate output. Elder and Serletis [Elder, John and Serletis, Apostolos. Oil price uncertainty.] find empirical evidence that uncertainty about oil prices has tended to depress investment in the United States. In this paper we assess the robustness of these results by investigating the effects of oil price uncertainty in Canada. Our results are remarkably similar to existing results for the United States, providing additional evidence that uncertainty about oil prices may provide another explanation for why the sharp oil price declines of 1985 failed to produce rapid output growth. Impulse-response analysis suggests that uncertainty about oil prices may tend to reinforce the negative response of output to positive oil shocks. (author)

  2. Trading network predicts stock price.

    Science.gov (United States)

    Sun, Xiao-Qian; Shen, Hua-Wei; Cheng, Xue-Qi

    2014-01-16

    Stock price prediction is an important and challenging problem for studying financial markets. Existing studies are mainly based on the time series of stock price or the operation performance of listed company. In this paper, we propose to predict stock price based on investors' trading behavior. For each stock, we characterize the daily trading relationship among its investors using a trading network. We then classify the nodes of trading network into three roles according to their connectivity pattern. Strong Granger causality is found between stock price and trading relationship indices, i.e., the fraction of trading relationship among nodes with different roles. We further predict stock price by incorporating these trading relationship indices into a neural network based on time series of stock price. Experimental results on 51 stocks in two Chinese Stock Exchanges demonstrate the accuracy of stock price prediction is significantly improved by the inclusion of trading relationship indices.

  3. Trading Network Predicts Stock Price

    Science.gov (United States)

    Sun, Xiao-Qian; Shen, Hua-Wei; Cheng, Xue-Qi

    2014-01-01

    Stock price prediction is an important and challenging problem for studying financial markets. Existing studies are mainly based on the time series of stock price or the operation performance of listed company. In this paper, we propose to predict stock price based on investors' trading behavior. For each stock, we characterize the daily trading relationship among its investors using a trading network. We then classify the nodes of trading network into three roles according to their connectivity pattern. Strong Granger causality is found between stock price and trading relationship indices, i.e., the fraction of trading relationship among nodes with different roles. We further predict stock price by incorporating these trading relationship indices into a neural network based on time series of stock price. Experimental results on 51 stocks in two Chinese Stock Exchanges demonstrate the accuracy of stock price prediction is significantly improved by the inclusion of trading relationship indices.

  4. Transparency in natural gas prices in Western Europe

    International Nuclear Information System (INIS)

    The present situation on price transparency in Western Europe and North america within the context of the European internal gas market is analyzed. In chapter one the ideas and policy proposals put forward by the European Commission are discussed. Special attention is paid to the situation of the large industrial consumers. It is argued that price transparency needs to be extended to more upstream price aspects. This includes information on city-gates prices, transmission and handling charges in addition to wellhead and import prices. In Western Europe (chapter two) two pricing principles can be distinguished at the final consumer level: pricing according to costs and prices according to market value. The first principle is applied in France, Belgium, the United Kingdom and Austria, as some cost elements are included in the tariff calculations in Italy. Countries where a market-evaluation methodology is applied are Denmark, the Netherlands, Germany, Spain and Switzerland. In North America (chapter three) price transparency is extensive and part of the necessary conditions of an open access contract carriage market. In order to integrate the aspect of price transparency in the broader framework of the internal gas market a model of an integrated natural gas market is described in chapter four. The model specifies the preconditions of a truly integrated gas market, i.e. accessible market entry at all levels of the gas sector and for all market players, equal market opportunity and a regulatory oversight system. A brief comparison between the model and the actual market situation in Western Europe showed that hardly any of these preconditions are met. The comparison points out which actions need to be taken to implement an internal gas market in Western Europe. 9 appendices

  5. Option Pricing when the Regime-Switching Risk is Priced

    Institute of Scientific and Technical Information of China (English)

    Tak Kuen Siu; Hailiang Yang

    2009-01-01

    We study the pricing of an option when the price dynamic of the underlying risky asset is governed by a Markov-modulated geometric Brownian motion. We suppose that the drift and volatility of the underlying risky asset are modulated by an observable continuous-time, finite-state Markov chain. We develop a twostage pricing model which can price both the diffusion risk and the regime-switching risk based on the Esscher transform and the minimization of the maximum entropy between an equivalent martingale measure and the real-world probability measure over different states. Numerical experiments are conducted and their results reveal that the impact of pricing regime-switching risk on the option prices is significant.

  6. MEMS Calculator

    Science.gov (United States)

    SRD 166 MEMS Calculator (Web, free access)   This MEMS Calculator determines the following thin film properties from data taken with an optical interferometer or comparable instrument: a) residual strain from fixed-fixed beams, b) strain gradient from cantilevers, c) step heights or thicknesses from step-height test structures, and d) in-plane lengths or deflections. Then, residual stress and stress gradient calculations can be made after an optical vibrometer or comparable instrument is used to obtain Young's modulus from resonating cantilevers or fixed-fixed beams. In addition, wafer bond strength is determined from micro-chevron test structures using a material test machine.

  7. Retailer Pricing Strategy and Consumer Choice under Price Uncertainty

    OpenAIRE

    Shai Danziger; Liat Hadar; Morwitz, Vicki G

    2014-01-01

    This research examines how consumers choose retailers when they are uncertain about store prices prior to shopping. Simulating everyday choice, participants made successive retailer choices where on each occasion they chose a retailer and only then learned product prices. The results of a series of studies demonstrated that participants were more likely to choose a retailer that offered an everyday low pricing strategy (EDLP) or that offered frequent small discounts over a retailer that offer...

  8. Pricing to Habits and the Law of One Price

    OpenAIRE

    RAVN, Morten O.; Schmitt-Grohe, Stephanie; Uribe, Martin

    2007-01-01

    This paper proposes a novel international transmission mechanism based on the assumption of deep habits. The term deep habits stands for a preference specification according to which consumers form habits on a good-by-good basis. Under deep habits, firms face more elastic demand functions in markets where nonhabitual demand is high relative to habitual demand, creating an incentive to price discriminate. We refer to this type of price discrimination as pricing to habits. In the...

  9. Effects of coal prices on merchandise prices in China

    Institute of Scientific and Technical Information of China (English)

    Ding Zhihua; Zhou Meihua; Liu Yan

    2011-01-01

    Coal is the principal form of energy used in China.Hence,coal price variations are expected to have some influence on merchandise prices.Monthly data from January,2002,to October,2010,were used to construct a varying-parameter state space model,and an error correction model,to estimate the influence of coal prices on Chinese merchandise prices.The time lag and the dynamic relationship were determined from the data.A long term equilibrium relationship between coal price and the PPI,and the CPI,can be observed.The long term influence of coal price fluctuations on the PPI is 0.263%.The corresponding value for the CPI is 0.157%.The PPI shows an influence from coal price change in the first period of observation:by eight periods the influence is obvious,after which it diminishes.The effect of coal price change on the CPI is rather weak and has no long term memory.Analysis of variance shows a similar situation.The elasticity coefficient of coal prices on the CPI,or the PPI,fluctuates over the 2002-2004 period.From 2002 to 2007 the influence elasticity on the CPI declined and subsequently levelled off after 2009.

  10. Modelling the impact of oil prices on Vietnam's stock prices

    International Nuclear Information System (INIS)

    The goal of this paper is to model the impact of oil prices on Vietnam's stock prices. We use daily data for the period 2000-2008 and include the nominal exchange rate as an additional determinant of stock prices. We find that stock prices, oil prices and nominal exchange rates are cointegrated, and oil prices have a positive and statistically significant impact on stock prices. This result is inconsistent with theoretical expectations. The growth of the Vietnamese stock market was accompanied by rising oil prices. However, the boom of the stock market was marked by increasing foreign portfolio investment inflows which are estimated to have doubled from US$0.9 billion in 2005 to US$1.9 billion in 2006. There was also a change in preferences from holding foreign currencies and domestic bank deposits to stocks local market participants, and there was a rise in leveraged investment in stock as well as investments on behalf of relatives living abroad. It seems that the impact of these internal and domestic factors were more dominant than the oil price rise on the Vietnamese stock market. (author)

  11. Strategic pricing: hitting the mark with pricing strategies. Part 1.

    Science.gov (United States)

    Porn, L; Manning, M

    1988-01-01

    Efforts by government and business to reduce healthcare expenditures by fostering competition and reducing utilization have combined to redefine the basic economic structure of the healthcare delivery system. Increased competition among providers has prompted an increased awareness of strategic pricing as a means of achieving institutional goals and objectives. In this article, the first in a three-part series on strategic pricing, the authors examine some of the key theoretical considerations related to pricing strategies for healthcare providers. Future articles will examine practical applications as they relate to package pricing, discounting, per diem systems, and capitation arrangements.

  12. Reliability Calculations

    DEFF Research Database (Denmark)

    Petersen, Kurt Erling

    1986-01-01

    approaches have been introduced in some cases for the calculation of the reliability of structures or components. A new computer program has been developed based upon numerical integration in several variables. In systems reliability Monte Carlo simulation programs are used especially in analysis of very...... complex systems. In order to increase the applicability of the programs variance reduction techniques can be applied to speed up the calculation process. Variance reduction techniques have been studied and procedures for implementation of importance sampling are suggested....

  13. Pricing and tariffs

    International Nuclear Information System (INIS)

    Danish suppliers of electricity and district heating are with a few exceptions either public utilities or cooperatives owned by consumers. The basic tariff regulations for electricity and heat in Denmark state that the tariff has to cover all costs and that only a reasonable interest of invested capital may be included in the tariff. Consequently, all profit has to be used to lower prices. For municipality-owned utilities the consumer prices would be the same if the consumers were the owners. It is typical for the district heating and electricity sector that the technical system, the organizations involved and the tariff levels show the same structure: Plants - transmission - distribution - consumer. E.g. the price of energy from the transmission system includes costs of plants and transmission, but not costs of distribution. Concerning energy saving measures in buildings it is important to note that energy saving measures should not be evaluated on the basis of saved GJ (Giga Joule) thermal energy and GJ electricity because the fuel energy consumption and the share of variable costs depend on the supply system. To find least-cost solutions to satisfy the basic demand for energy services, it is necessary to be aware of the whole chain of elements from fuel to services: fuel - plant - network - consumer installations - building envelope - services. The consumer tariff is the most important link between the supply systems and the buildings. A reasonably designed incentive tariff may work for least-cost solutions, whereas other tariffs may encourage a waste of resources, either waste of fuel energy or waste of investments. (AB)

  14. Pricing of radar data

    OpenAIRE

    Linder, Martin; Nylin, Tobias

    2013-01-01

    In this thesis we examine the issue regarding pricing of radar data and surveillance to the operators of air navigation service (ANS) at the aerodromes in Sweden. The question of who should be responsible for providing radar data to the operators is being managed that results in if it should be LFV, as it is today, the government or another authority. This is being examined since LFV in 2010 lost its monopoly position in the terminal area in Sweden. LFV still has monopoly on the en route part...

  15. Priced Timed Automata

    DEFF Research Database (Denmark)

    Behrmann, Gerd; Larsen, Kim Guldstrand; Rasmussen, Jacob Illum

    2004-01-01

    This contribution reports on the considerable effort made recently towards extending and applying well-established timed automata technology to optimal scheduling and planning problems. The effort of the authors in this direction has to a large extent been carried out as part of the European proj...... projects VHS [22] and AMETIST [17] and are available in the recently released UPPAAL CORA [12], a variant of the real-time verification tool UPPAAL [20,5] specialized for cost-optimal reachability for the extended model of priced timed automata....

  16. Prices and species diversity

    DEFF Research Database (Denmark)

    Sauer, Johannes

    of biodiversity and the appropriate incorporation in stochastic fron-tier models to achieve more realistic measures of production efficiency. We use the empirical example of tobacco production drawing from as well as affecting species diversity in the surrounding forests. We apply a shadow profit distance....... Based on a biologically defined species diver-sity index we incorporate biodiversity either as a desirable output or biodiversity loss as a detrimental input. Beside quantitative shadow price measures the main contribu-tion of the work is the evidence that parametric scores of environmental efficiency...

  17. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas;

    2014-01-01

    drugs, generics, and parallel imports with health care expenditures and producer revenues decreasing and co-payments increasing most for branded drugs. The reform also induced consumers to substitute from branded drugs – for which they have strong preferences – to generics and parallel imports...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  18. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas;

    drugs, generics, and parallel imports with health care expenditures and producer revenues decreasing and co-payments increasing most for branded drugs. The reform also induced consumers to substitute from branded drugs – for which they have strong preferences – to generics and parallel imports...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  19. Pricing strategy for aesthetic surgery: economic analysis of a resident clinic's change in fees.

    Science.gov (United States)

    Krieger, L M; Shaw, W W

    1999-02-01

    The laws of microeconomics explain how prices affect consumer purchasing decisions and thus overall revenues and profits. These principles can easily be applied to the behavior aesthetic plastic surgery patients. The UCLA Division of Plastic Surgery resident aesthetics clinic recently offered a radical price change for its services. The effects of this change on demand for services and revenue were tracked. Economic analysis was applied to see if this price change resulted in the maximization of total revenues, or if additional price changes could further optimize them. Economic analysis of pricing involves several steps. The first step is to assess demand. The number of procedures performed by a given practice at different price levels can be plotted to create a demand curve. From this curve, price sensitivities of consumers can be calculated (price elasticity of demand). This information can then be used to determine the pricing level that creates demand for the exact number of procedures that yield optimal revenues. In economic parlance, revenues are maximized by pricing services such that elasticity is equal to 1 (the point of unit elasticity). At the UCLA resident clinic, average total fees per procedure were reduced by 40 percent. This resulted in a 250-percent increase in procedures performed for representative 4-month periods before and after the price change. Net revenues increased by 52 percent. Economic analysis showed that the price elasticity of demand before the price change was 6.2. After the price change it was 1. We conclude that the magnitude of the price change resulted in a fee schedule that yielded the highest possible revenues from the resident clinic. These results show that changes in price do affect total revenue and that the nature of these effects can be understood, predicted, and maximized using the tools of microeconomics. PMID:9950562

  20. A Multiperiod Equilibrium Pricing Model

    Directory of Open Access Journals (Sweden)

    Minsuk Kwak

    2014-01-01

    Full Text Available We propose an equilibrium pricing model in a dynamic multiperiod stochastic framework with uncertain income. There are one tradable risky asset (stock/commodity, one nontradable underlying (temperature, and also a contingent claim (weather derivative written on the tradable risky asset and the nontradable underlying in the market. The price of the contingent claim is priced in equilibrium by optimal strategies of representative agent and market clearing condition. The risk preferences are of exponential type with a stochastic coefficient of risk aversion. Both subgame perfect strategy and naive strategy are considered and the corresponding equilibrium prices are derived. From the numerical result we examine how the equilibrium prices vary in response to changes in model parameters and highlight the importance of our equilibrium pricing principle.

  1. Spatial competition and price formation

    Science.gov (United States)

    Nagel, Kai; Shubik, Martin; Paczuski, Maya; Bak, Per

    2000-12-01

    We look at price formation in a retail setting, that is, companies set prices, and consumers either accept prices or go someplace else. In contrast to most other models in this context, we use a two-dimensional spatial structure for information transmission, that is, consumers can only learn from nearest neighbors. Many aspects of this can be understood in terms of generalized evolutionary dynamics. In consequence, we first look at spatial competition and cluster formation without price. This leads to establishement size distributions, which we compare to reality. After some theoretical considerations, which at least heuristically explain our simulation results, we finally return to price formation, where we demonstrate that our simple model with nearly no organized planning or rationality on the part of any of the agents indeed leads to an economically plausible price.

  2. Price Formation in Electricity Markets

    Directory of Open Access Journals (Sweden)

    Renata de Abreu Barbosa

    2010-08-01

    Full Text Available

    Two characteristics are a paramount to understand price behaviour in competitive electricity markets: mean reversion and volatility. We have focused our analysis to determine how these characteristics operated in the case of the Spanish wholesale electricity market. We could observe that CCGT play a key role in setting marginal prices as both gas prices and generation present significant price elasticities. In addition, we found that hydropower generation is an important technology to moderate the prices as it is possibly being use as a baseload technology. When analysing volatility aspects, we found that electricity prices exhibit a remarkable structure of time-variant conditional volatility and presented strong weekly seasonality.

  3. Fluctuation in option pricing using cellular automata based market models

    Science.gov (United States)

    Gao, Yuying; Beni, Gerardo

    2005-05-01

    A new agent-based Cellular Automaton (CA) computational algorithm for option pricing is proposed. CAs have been extensively used in modeling complex dynamical systems but not in modeling option prices. Compared with traditional tools, which rely on guessing volatilities to calculate option prices, the CA model is directly addressing market mechanisms and simulates price fluctuation from aggregation of actions made by interacting individual market makers in a large population. This paper explores whether CA models can provide reasonable good answers to pricing European options. The Black-Scholes model and the Binomial Tree model are used for comparison. Comparison reveals that CA models perform reasonably well in pricing options, reproducing overall characteristics of random walk based model, while at the same time providing plausible results for the 'fat-tail' phenomenon observed in many markets. We also show that the binomial tree model can be obtained from a CA rule. Thus, CA models are suitable tools to generalize the standard theories of option pricing.

  4. A learning approach for nonlinear pricing problem

    OpenAIRE

    Berg, Kimmo

    2010-01-01

    Quantity discounts are frequent both in everyday life and in business. Take, for example, product pricing, gas and electricity pricing, transportation and postage pricing, telecommunications, cable TV and Internet access pricing. These are all examples of nonlinear pricing, where the selling firm designs differentiated products and prices them according to the firm's marketing strategy. Nonlinear pricing is also a general model of incomplete information and it has a plenty of applications, su...

  5. Relationship between efficiency and predictability in stock price change

    Science.gov (United States)

    Eom, Cheoljun; Oh, Gabjin; Jung, Woo-Sung

    2008-09-01

    In this study, we evaluate the relationship between efficiency and predictability in the stock market. The efficiency, which is the issue addressed by the weak-form efficient market hypothesis, is calculated using the Hurst exponent and the approximate entropy (ApEn). The predictability corresponds to the hit-rate; this is the rate of consistency between the direction of the actual price change and that of the predicted price change, as calculated via the nearest neighbor prediction method. We determine that the Hurst exponent and the ApEn value are negatively correlated. However, predictability is positively correlated with the Hurst exponent.

  6. Utilizing TOPSIS intensified with adjustment similarity factor to determine price of technology

    Directory of Open Access Journals (Sweden)

    Seyed Mohammad Seyedhosseini

    2012-08-01

    Full Text Available Technology transfer has been a very frequent activity in the industrial world nowadays. Technology valuation, and in particular technology pricing, has played a considerable role in these transactions, in spite of a huge amount of limitations in the pricing methodologies applied. Making a sound, traceable and reliable means for applying the price evaluation procedure, seems as a technological requirement to be traced for. The objective of delivering this paper is to introduce a new numerical technology pricing method to provide the two transacting parties a unique compromised price. A three-dimensional model for technology pricing is proposed and The TOPSPS algorithm has been utilized to select the most similar technologies to the intended one and the constructed scoring system is applied to calculate the final technology price accordingly.

  7. Application of GARCH Model in Research on Price of Agricultural Products

    Institute of Scientific and Technical Information of China (English)

    2011-01-01

    Taking the price of grain in Guizhou Province as an example, by establishing GARCH model, I calculate VAR of logarithm return of grain price index, in order to conduct research on the variation law of price of the agricultural products. The results show that VAR of grain in Guizhou has variation. After the year 2010, VAR value is gradually increasing, and the price variation risk of grain market tends to increase progressively. Based on the characteristics of grain price variation, a series of corresponding proposals are put forward to stabilize the grain price as follows: strengthen the agricultural infrastructure construction, and promote the agricultural overall production capacity; reinforce the market supervision on the circulation field of agricultural products, and maintain market order; improve regulation system of agricultural products, and stabilize the price of agricultural products; strengthen mobility regulation, and prevent a flood of speculative cash.

  8. Product Positioning Under Price Competition

    OpenAIRE

    S. Chan Choi; DeSarbo, Wayne S, et al; Patrick T. Harker

    1990-01-01

    This paper presents a consumer-based methodology for new product pricing and positioning in the face of price competition. The price competition is modelled as a Nash equilibrium for which two complementary approaches are employed: an analytical approach of duopoly provides qualitative insights into the competitive behavior, and a numerical approach of general oligopoly provides quantitative solutions under a wide variety of market scenarios. The optimal product positioning is formulated as a...

  9. Expanding Demand through Price Advertisement

    OpenAIRE

    Michael Sandfort; Hideo Konishi

    2000-01-01

    Price advertisement by retail stores is pervasive. If there exist non-negligible costs of consumer search, a retailer can increase the number of consumers visiting its location by advertising a low price, thus increasing consumers' expected utilities from search. If the increase in the number of consumers who visit the store is substantial, then the store's profit goes up even though low prices decrease profit margins. We show that this intuition extends to the case of a multi-product monopol...

  10. Countervailing Power and Price Transparency

    OpenAIRE

    Møllgaard, Peter; Hviid, Morten

    2000-01-01

    We investigate whether increased transparency about prices may increase the countervailing power exercised by buyers of an intermediate good and whether this will lead to a decrease of intermediate goods prices. We show that, even in a non-cooperative, one-shot model, the most likely outcome of improved transparency is a price increase: Improved transparency will lead sellers to take tougher bargaining stands since more is at stake. The results are related to the experience of the Danish Comp...

  11. Personalized Pricing and Quality Differentiation

    OpenAIRE

    Vidyanand Choudhary; Anindya Ghose; Tridas Mukhopadhyay; Uday Rajan

    2005-01-01

    We develop an analytical framework to investigate the competitive implications of personalized pricing (PP), whereby firms charge different prices to different consumers based on their willingness to pay. We embed PP in a model of vertical product differentiation and show how it affects firms' choices over quality. We show that firms' optimal pricing strategies with PP may be nonmonotonic in consumer valuations. When the PP firm has high quality, both firms raise their qualities relative to t...

  12. Cost minimization and asset pricing

    OpenAIRE

    Chambers, Robert G.; John Quiggin

    2005-01-01

    A cost-based approach to asset-pricing equilibrium relationships is developed. A cost function induces a stochastic discount factor (pricing kernel) that is a function of random output, prices, and capital stockt. By eliminating opportunities for arbitrage between financial markets and the production technology, firms minimize the current cost of future consumption. The first-order conditions for this cost minimization problem generate the stochastic discount factor. The cost-based approach i...

  13. Option Pricing using Realized Volatility

    DEFF Research Database (Denmark)

    Stentoft, Lars Peter

    dynamics to be used for option pricing purposes in this framework, and we show that our model explains some of the mispricings found when using traditional option pricing models based on interdaily data. We then show explicitly that a Generalized Autoregressive Conditional Heteroskedastic model with Normal...... benchmark model estimated on return data alone. Hence the paper provides evidence on the value of using high frequency data for option pricing purposes....

  14. RESTAURANT NO. 3 : PRICE INCREASES

    CERN Multimedia

    Restaurant Supervisory Committee

    2002-01-01

    'AVENANCE', the concession holder of Restaurant no. 3 (bldg. 866 - Prévessin site), has submitted to the Restaurant Supervisory Committee a request to increase its prices. After close examination, the Committee has established that the proposed increases are compatible with the relevant price indexing mechanisms and other contractual conditions. The new prices will apply as from Monday, June 3, 2002. Restaurant Supervisory Committee, tel. 77551

  15. Congestion pricing of Canadian airports

    OpenAIRE

    Joseph I. Daniel

    2011-01-01

    Under congestion pricing, Canadian airports would annually save between $72 and $105 million. Social costs per landing and takeoff decrease about $300 at Toronto and Vancouver and $50 at Calgary and Montreal. Slot constraints fail to eliminate this airport congestion. Congestion prices are lower on average than existing weight-based prices. Current airport capacity accommodates at least five more years of traffic growth before congestion reaches current levels. Substantial welfare gains occur...

  16. Consumption, house prices and expectations

    OpenAIRE

    Orazio Attanasio; Laura Blow; Robert Hamilton; Andrew Leicester

    2005-01-01

    Over much of the past 25 years, the cycles of house price and consumption growth have been closely synchronised. Three main hypotheses for this co-movement have been proposed in the literature. First, that an increase in house prices raises households' wealth, particularly for those in a position to trade down the housing ladder, which increases their desired level of expenditure. Second, that house price growth increases the collateral available to homeowners, reducing credit constraints and...

  17. Sydney Water : Pricing for Sustainability

    OpenAIRE

    R. Quentin Grafton; Tom Kompas

    2006-01-01

    We examine how scarcity pricing can be used to assist with urban water demand management in Sydney in low rainfall periods using an estimated aggregate daily water demand function. Modelling shows that current water supplies and water prices are inadequate to prevent Sydney reaching critically low water storage levels should there be a low rainfall period similar to what occurred in 2001-2005. Simulations indicate that, in low rainfall periods, the water price needed to balance supply and dem...

  18. Energy Policies and Food Prices

    OpenAIRE

    Shih-Wen Hu; Li-Ju Chen; Vey Wang; Meng-Yi Tai; Lee-Jung Lu; Chiu-Yue Lin

    2015-01-01

    Biomass energy has been regarded as an effective instrument in combatting a high oil price. However, the increased production of biomass energy has raised the demand for agricultural products and led to a global grain deficiency and rising grain prices. This paper discusses the influence of energy policies on the agricultural product price using a macro model that contains the energy demand for agricultural products. The results show that: 1) A rise in the subsidy for agricultural products us...

  19. When Is Price Discrimination Profitable?

    OpenAIRE

    Eric T. Anderson; James D. Dana

    2009-01-01

    We analyze a model of a quality-constrained monopolist's product line decision that encompasses a variety of important examples of second-degree price discrimination, including intertemporal price discrimination, coupons, advance purchase discounts, versioning of information goods, and damaged goods. We derive necessary and sufficient conditions for price discrimination to be profitable that generalize existing results in the literature. Specifically, we show that when a continuum of product ...

  20. Pricing options on defaultable stocks

    OpenAIRE

    Tayibov, Khayyam

    2012-01-01

    In this note, we develop stock option price approximations for a model which takes both the risk o default and the stochastic volatility into account. We also let the intensity of defaults be influenced by the volatility. We show that it might be possible to infer the risk neutral default intensity from the stock option prices. Our option price approximation has a rich implied volatility surface structure and fits the data implied volatility well. Our calibration exercise shows that an effect...

  1. Developing a consumer pricing strategy.

    Science.gov (United States)

    Sturm, Arthur; Tiedemann, Frank

    2013-05-01

    Healthcare providers can learn a variety of pricing lessons from the retail market: For providers, wholesale pricing--"the price to play"--alone is not enough. Once a hospital or health system chooses a market position, the provider creates an expectation that must be met-consistently. Consumer loyalty is fluid, and the price of care or service is not always the motivator for choosing one organization over another; intangibles such as location and level of customer service also drive purchasing decisions. PMID:23678698

  2. Price transparency for medical devices.

    Science.gov (United States)

    Pauly, Mark V; Burns, Lawton R

    2008-01-01

    Hospital buyers of medical devices contract with manufacturers with market power that sell differentiated products. The medical staff strongly influences hospitals' choice of devices. Sellers have sought to limit disclosure of transaction prices. Policy-makers have proposed legislation mandating disclosure, in the interest of greater transparency. We discuss why a manufacturer might charge different prices to different hospitals, the role that secrecy plays, and the consequences of secrecy versus disclosure. We argue that hospital-physician relationships are key to understanding what manufacturers gain from price discrimination. Price disclosure can catalyze a restructuring of those relationships, which, in turn, can improve hospital bargaining. PMID:18997210

  3. Prices of RE Products Soaring

    Institute of Scientific and Technical Information of China (English)

    2005-01-01

    Prices of light rare earth products in Baotou rose on the full scale in July. Price of lanthana reached RMB 12,000 - 13,000/t, that of ceria RMB 12,000/t, praseodymia RMB 70,000 - 72,000/t, Pr-Nd oxides RMB 52,000/t, neodymia RMB 65,000/t. Despite the high price of Pr-Nd oxides and neodymia, no goods are available at hand. Price rising is attributed to enforcement of environmental protection policy and heightening project suspending of Baogang tailings dam. RE separation enterprises along Yellow River have ...

  4. Rice price instability in Bangladesh

    OpenAIRE

    Mili, Jobaida Yeasmin

    2012-01-01

    In the 2000s, the global attention was concentrated at the food price stability because of the rapid increase in cereal and other food prices. This rapid increase of food price has become a burden for the developing countries as well as for Bangladesh where households spend a large share of their income on food. Among the cereals rice has a strategic importance because it is the central to food security and economic and political stability of the country. Fluctuation in rice prices is not rar...

  5. IPO Price Clustering and Discreetness

    OpenAIRE

    Bristow, Duke K.

    1998-01-01

    Price clustering in initial public offerings (IPOs) is extreme, pervasive, and long-lived. In a 25 year sample of 7,805 IPOs, offering prices range form one tenth cent to $5,000 per share. However, the price frequency distribution yields a clear triple peak with three discrete values, $5, 10, and $15 per share, accounting for 21.5% of all IPO prices. Clustering pervades every one of the top 20 two-digit SIC code groupings and every year from 1970 through 1994. Firms, underwriters and inve...

  6. Artificial Shortages and Strategic Pricing

    Directory of Open Access Journals (Sweden)

    Partha Gangopadhyay

    2012-01-01

    Full Text Available Problem statement: We consider a monopolist who manipulates the market by artificially creating shortages that result in an increase in current price that, in turn, boosts demand for the product in subsequent periods. The approach is to develop an intertemporal model of pricing strategy for a monopolist. Approach: The postulated pricing strategy creates an incentive for producers to reduce current supply and raise current prices and sacrifice current profits in order to increase future profits. The main problem is to explain the precise mathematical conditions under which the pricing strategy will be chosen by a monopolist. Results: We derive the optimal pricing strategy to argue that the monopolist has an incentive to adopt simple market manipulation that calls forth a close examination of issues concerning deregulation. Conclusion: The paper examines two possible strategies for a typical monopolist-strategic pricing vis-a-vis a myopic pricing. The intuition is that the monopolist can manipulate the market by artificially creating shortages that result in an increase in current price that, in turn, boosts demand for the product in subsequent periods.

  7. Transmission pricing: paradigms and methodologies

    Energy Technology Data Exchange (ETDEWEB)

    Shirmohammadi, Dariush [Pacific Gas and Electric Co., San Francisco, CA (United States); Vieira Filho, Xisto; Gorenstin, Boris [Centro de Pesquisas de Energia Eletrica (CEPEL), Rio de Janeiro, RJ (Brazil); Pereira, Mario V.P. [Power System Research, Rio de Janeiro, RJ (Brazil)

    1994-12-31

    In this paper we describe the principles of several paradigms and methodologies for pricing transmission services. The paper outlines some of the main characteristics of these paradigms and methodologies such as where they may be used for best results. Due to their popularity, power flow based MW-mile and short run marginal cost pricing methodologies will be covered in some detail. We conclude the paper with examples of the application of these two pricing methodologies for pricing transmission services in Brazil. (author) 25 refs., 2 tabs.

  8. Price Strategies in Banking Marketing

    Directory of Open Access Journals (Sweden)

    Iuliana Cetina

    2007-01-01

    Full Text Available All organizations must settle a price for the services they offer. The price for services is an important element of the marketing mix, being an important income source for the organization. The settlement of a correct price, both for the market and the competition, is a significant element for the sector of financial - banking services. Another important factor to take into consideration is the fact that the banks do not settle only the prices for individual services, but also coordinate their prices for service packages. As the competition in the financial - banking services has intensified, the settlement of correct prices has become an essential element for the marketing strategy. Nevertheless it is important to remind that the price is not a central element. There are other significant grounds, the price being only one of the elements of the marketing mix. Although in Romania many customers may be sensitive in present to the price, as the competition will increase, the quality of the services will become more important to the customers, and the demand will be complex.

  9. Energy pricing under uncertain supply

    International Nuclear Information System (INIS)

    This paper introduces a new pricing system - based on the Chilean tariff regulations - to deal with an uncertain energy supply. It consists of a basic rate for each unit actually consumed and a compensation that the utilities pay their customers for each unit of energy that they voluntarily reduce below their normal consumption during an energy shortage. Within the framework of a model that portrays the stylized facts of the Chilean electric system, and assumes risk-neutral agents, this paper shows the equivalency of the new pricing system with both contingent pricing and priority pricing. (Author)

  10. Animal Carcass Pricing Grid. Evidences from the Romanian Pigmeat Market

    Directory of Open Access Journals (Sweden)

    Savescu Roxana

    2015-07-01

    Full Text Available Until the introduction of SEUROP system, price negotiation between pig producers and slaughterhouses was based on two subjective criteria: animal weight and visual inspection of the quality of pigs. To ensure producers a fair payment, European Union created the possibility of binding the price on two objective factors: carcass weight and carcass composition. This paper describes the pricing mechanism developed by Romania in order to respond to European Union requirements for ensuring a fair payment to pig producers. It raises the attention on the difficulties encountered by the producers in understanding the way the commercial value of a pig carcass is calculated in case the selling price is negotiated on a flat rate basis or on a lean content basis (per kg of carcass weight or per kg of live weight.

  11. From tariffs to prices

    Energy Technology Data Exchange (ETDEWEB)

    Baena, D. Eduardo Martin [Endesa, Principe de Vergara 187, Madrid (Spain)

    1998-07-01

    It looks like that all over the World things are changing. Many countries, Spain among them, where electricity regulations were usual, are changing their regulatory mainframe. Since January 1, 1998, electricity production is a deregulated activity in Spain. There has to be open market competition. Prices that are very important for the time coming, have to cover the production cost plus some profits in order to maintain the company profitability. This cultural change applies to all our production facilities, including nuclear power plants. Taking into account this new situation and the nuclear competitiveness, it is important for all of us to understand this issue. As it is well known, nuclear energy is capital intensive, that means it has to compete as base load units due to their low operating costs and their large capital ones. For that reason it is important to reduce as much as possible the operating and maintenance cost as well as the fuel one, which will allow nuclear plants to compete in marginal costs with others units. Nuclear energy, in Spain, is not going to fix the pool price but it has to recover some depreciation through it, the remaining being recovered by the recognition of an important part of the stranded cost. (author)

  12. Pricing hazardous substance emissions

    Energy Technology Data Exchange (ETDEWEB)

    Staring, Knut; Vennemo, Haakon

    1997-12-31

    This report discusses pricing of emissions to air of several harmful substances. It combines ranking indices for environmentally harmful substances with economic valuation data to yield price estimates. The ranking methods are discussed and a relative index established. Given the relative ranking of the substances, they all become valued by assigning a value to one of them, the `anchor` substance, for which lead is selected. Valuations are provided for 19 hazardous substances that are often subject to environmental regulations. They include dioxins, TBT, etc. The study concludes with a discussion of other categories of substances as well as uncertainties and possible refinements. When the valuations are related to CO, NOx, SOx and PM 10, the index system undervalues these pollutants as compared to other studies. The scope is limited to the outdoor environment and does not include global warming and eutrophication. The indices are based on toxicity and so do not apply to CO{sub 2} or other substances that are biologically harmless. The index values are not necessarily valid for all countries and should be considered as preliminary. 18 refs., 6 tabs.

  13. Cost accounting to determine prices: how well do prices reflect costs in the German DRG-system?

    Science.gov (United States)

    Schreyögg, Jonas; Tiemann, Oliver; Busse, Reinhard

    2006-08-01

    Germany has recently introduced a system of Diagnosis Related Groups (DRGs) to engender more appropriate resource allocation. The following article describes the German DRG-system and the methodologies used to determine prices. It analyses the extent to which prices, or calculated cost weights, reflect the actual costs incurred by hospitals for their respective services. We reveal that a "compression" of DRG cost weights occurs, and that the data sample used to calculate cost weights is lacking in terms of its representativeness. Although cost data accuracy has improved over the last few years there are still a number of challenges that need to be addressed.

  14. Modeling the Effect of Oil Price on Global Fertilizer Prices

    NARCIS (Netherlands)

    P-Y. Chen (Ping-Yu); C-L. Chang (Chia-Lin); C-C. Chen (Chi-Chung); M.J. McAleer (Michael)

    2010-01-01

    textabstractThe main purpose of this paper is to evaluate the effect of crude oil price on global fertilizer prices in both the mean and volatility. The endogenous structural breakpoint unit root test, the autoregressive distributed lag (ARDL) model, and alternative volatility models, including the

  15. International benchmarking of telecommunications prices and price changes

    OpenAIRE

    Productivity Commission

    2002-01-01

    The report, a series of international benchmarking studies conducted by the Productivity Commission, compares Australian telecommunications prices, price changes and regulatory arrangements with those in nine other OECD countries, updating a similar study, International Benchmarking of Australian Telecommunications Services, released in March 1999.

  16. Unsettled Times, Unsettled Prices: Periodical Price Survey 1997.

    Science.gov (United States)

    Ketcham, Lee; Born, Kathleen

    1997-01-01

    Presents the results of the thirty-seventh annual periodical price survey conducted by "Library Journal". Highlights include canceling print subscriptions and electronic journals, cost trends by subject and by countries, prices for public and school libraries and for college and medium-sized university libraries, and budgeting for 1988. (LRW)

  17. Bank Efficiency and Share Prices in China: Empirical Evidence from a Three-Stage Banking Model

    OpenAIRE

    Abdul Majid, Muhamed Zulkhibri; Sufian, Fadzlan

    2008-01-01

    This paper examines for the first time the relationship between China banks’ efficiency and its share price performance. Our analysis consists of three parts. First, we calculate the annual share price returns of the banks for each year between 1997 and 2006. Then we employ Data Envelopment Analysis (DEA) Window Analysis method, first proposed by Charnes et al. (1985) to estimate the efficiency of the banks. Finally, we estimate the annual share price returns over the change in efficiency, wh...

  18. Effects of volatile output prices on agricultural land-use change

    OpenAIRE

    Boere, Esther; Peerlings, Jack H.M.; Reinhard, Stijn; Kuhlman, Tom; Heijman, Wim J.M.

    2012-01-01

    Volatile output prices lead to a fluctuating shadow price (profitability) of agricultural land, and therefore may impact land use decisions in case of risk-averse behaviour. In this paper we assess the effect of volatile agricultural output prices on agricultural land-use change over the past decade in the Netherlands. Using regional data from 2000 through 2009, the number of hectares of land for 10 land uses was calculated. To determine the joint distribution of agricultural activities, hect...

  19. The analysis of the mineral fertilizers prices in the 2000-2010 year

    OpenAIRE

    Arkadiusz Piwowar

    2011-01-01

    In the 2000-2010 year the prices surge of agricultural production took place. It refers especially to the mineral fertilizers. In this paper the analyses of the mineral fer-tilizers prices in the domestic market are shown, taking seasonal changes under considera-tion. The synthetic representation of the researched phenomenon seasonality has been reached by seasonality rates calculating (additive). The research results show that the prices of all put to analysis fertilizers are characterized b...

  20. THE FUTILITY OF STOCK-BASED COMPENSATION IN LIGHT OF IMPERFECT MARKET PRICING

    OpenAIRE

    Cullen, James Peter

    2012-01-01

    This thesis addresses the mechanics of executive remuneration from an unorthodox perspective; the view presented through the lens of imperfect market pricing. Whilst many of the criticisms of existing compensation arrangements are merited, they ignore the integrity of a crucial aspect of the way remuneration awards are calculated; the market pricing mechanism. The original contribution of knowledge of this thesis is to explain how imperfect market pricing undermines the utility of stock-based...

  1. Quality adjustment of European price statistics and the role for hedonics

    OpenAIRE

    Henning Ahnert; Geoff Kenny

    2004-01-01

    In this paper we review the well-known problem of how to measure price developments when the quality of the underlying goods and services is changing over time. The importance of appropriate methods to take account of quality change is highlighted from the perspective of monetary policy. In particular, we highlight the need for credible and transparent price indicators. In this context, we review the hedonic approach to calculating quality-adjusted price indices and assess the available infor...

  2. Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?

    OpenAIRE

    Grasdal, Astrid Louise; Brekke, Kurt Richard; Holmås, Tor Helge

    2006-01-01

    We study the relationship between regulatory regimes and pharmaceutical firms pricing strategies using a unique policy experiment from Norway, which in 2003 introduced a reference price (RP) system called “index pricing” for a sub-sample of off-patent pharmaceuticals, replacing the existing price cap (PC) regulation. We estimate the effect of the reform using a product level panel dataset, covering the drugs exposed to RP and a large number of drugs still under PC regulation in the time befor...

  3. NPP electrical price and tariff in the world

    International Nuclear Information System (INIS)

    Construction of a Nuclear Power Plant (NPP) is always become a controversial issue. Nuclear utility and other party which support the NPP present a calculation of NPP electricity cost too optimistic. However for utility and other party that contra to nuclear present a calculation of NPP electricity cost too pessimistic. This study present to reduce the controversy of nuclear cost. In this study, capital cost (Engineering Procurement Construction, EPC) was taken from Asian, America and Europe, operating and maintenance cost uses experience data of PLN, and nuclear fuel cost uses data year of 2008 with high price, low price and average price scenario. The methodological tools used to compare electricity generation cost was LEGECOST, a program developed by IAEA (International Atomic Energy Agency), while for electricity tariff- price calculation using a program developed by PLN research and development center. With the discount rate 10%, the result shows that the cheapest electricity generation cost of NPP is less than 40 mills/kWh, and average electricity tariff was 55 mills/kWh. In the Europe countries the electricity tariff more expensive than NPP in Asia. However generating cost and electricity tariff of NPP in United Stated of America (USA) less competitive because investment cost more expensive. Generating cost and electricity tariff was different at each country depend on salary, labor wage, materials price, construction specification, regulation related to NPP and environment aspect. (author)

  4. Pricing effects on food choices.

    Science.gov (United States)

    French, Simone A

    2003-03-01

    Individual dietary choices are primarily influenced by such considerations as taste, cost, convenience and nutritional value of foods. The current obesity epidemic has been linked to excessive consumption of added sugars and fat, as well as to sedentary lifestyles. Fat and sugar provide dietary energy at very low cost. Food pricing and marketing practices are therefore an essential component of the eating environment. Recent studies have applied economic theories to changing dietary behavior. Price reduction strategies promote the choice of targeted foods by lowering their cost relative to alternative food choices. Two community-based intervention studies used price reductions to promote the increased purchase of targeted foods. The first study examined lower prices and point-of-purchase promotion on sales of lower fat vending machine snacks in 12 work sites and 12 secondary schools. Price reductions of 10%, 25% and 50% on lower fat snacks resulted in an increase in sales of 9%, 39% and 93%, respectively, compared with usual price conditions. The second study examined the impact of a 50% price reduction on fresh fruit and baby carrots in two secondary school cafeterias. Compared with usual price conditions, price reductions resulted in a four-fold increase in fresh fruit sales and a two-fold increase in baby carrot sales. Both studies demonstrate that price reductions are an effective strategy to increase the purchase of more healthful foods in community-based settings such as work sites and schools. Results were generalizable across various food types and populations. Reducing prices on healthful foods is a public health strategy that should be implemented through policy initiatives and industry collaborations. PMID:12612165

  5. Pricing and price strategies on the example of real business project

    OpenAIRE

    Eichlerová, Jana

    2011-01-01

    The thesis aims to define processes and strategies in pricing as the one of the marketing mix tools, to appraise the customer segmentation as inseparable tool for finding profitable price and to prove its meaning and applicability at the real business project. First chapter is dealing with the definition of price and micro-economical perspective on price and price determination. It observes, what influences the price and price perception. It represents the price as a component of marketing to...

  6. Endogenous Price Commitment, Sticky and Leadership Pricing: Evidence from the Italian Petrol Market

    OpenAIRE

    Andreoli-Versbach, Patrick; Franck, Jens-Uwe

    2013-01-01

    This article studies dynamic pricing strategies in the Italian gasoline market before and after the market leader unilaterally announced its commitment to adopt a sticky-pricing policy. Using daily Italian firm level prices and weekly average EU prices, we show that the effect of the new policy was twofold. First, it facilitated price alignment and coordination on price changes. After the policy change, the observed pricing pattern shifted from cost-based to sticky-leadership pricing. Second,...

  7. Strammere retningslinjer om transfer pricing

    DEFF Research Database (Denmark)

    Rossing, Christian Plesner

    2015-01-01

    Transfer pricing vedrører prisfastsættelsen på transaktioner, der foregår mellem koncernforbundne selskaber og er fortsat et tema, der nyder stort fokus hos både multinationale koncerner og skattemyndigheder. For den multinationale koncern er transfer pricing i høj grad en aktivitet, der består i...

  8. The Law of Exclusionary Pricing

    OpenAIRE

    Herbert Hovenkamp

    2006-01-01

    The success of the Areeda-Turner test for predatory pricing and the U.S. Supreme Court’s adoption of demanding proof requirements in its 1993 Brooke Group decision have made it very difficult for plaintiffs to win conventional predatory pricing claims.

  9. Price as indicator for quality?

    DEFF Research Database (Denmark)

    Nielsen, Jørgen Ulff-Møller; Hansen, Jørgen Drud

    This paper examines the relation between price differences and quality differences in an oligopoly model with intra-industry trade, where goods are horizontally as well as vertically differentiated. The analysis demonstrates that the ratio of prices is not linked to the ratio of qualities in any ...

  10. Government influence on energy prices

    OpenAIRE

    Matthies, Klaus

    1983-01-01

    There is now widespread agreement that, in the interest of energy conservation and substitution of oil, consumer prices for energy should reflect world market prices while taking account of longer-term trends. Are the energy policies of the major industrialised countries in conformity with this demand?

  11. Carbon pricing in the EU

    NARCIS (Netherlands)

    Brink, Corjan; Vollebergh, Herman R.J.; Werf, van der Edwin

    2016-01-01

    This paper studies various options to support allowance prices in the EU Emissions Trading System (ETS), such as adjusting the cap, an auction reserve price, and fixed and variable carbon taxes in addition to the EU ETS. We use a dynamic computable general equilibrium model that explicitly allows

  12. Energies prices; Prix des energies

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2005-08-15

    This document offers a synthesis of the tariffs and the energies prices in august 2005 in Paris, compared with the years 2003 and 2004. This sectoral presentation (transports, houses, industry) provides thus statistics on the prices of fuels, heating, propane, coal, wood fuels, electric power and gas. (A.L.B.)

  13. Organic Chemicals Remain High Prices

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    @@ Phenol In early April 2007, China's phenol price remained bullish, and with the restart of phenol/acetone units in Sinopec Beijing Yanhua Petrochemical being ahead of schedule, there were few trading actions in the market, and the price of phenol dropped considerably afterwards.

  14. Price Variability in Automobile Insurance

    OpenAIRE

    Joseph A. Fields; Emilio C. Venezian; David Jou

    1992-01-01

    In this paper the causes of variation in automobile insurance prices are examined within a small and homogenous state. The central hypothesis of interest is the relation between the price of automobile insurance and the quality of the product. The findings here indicate that the market is one which contains substantial frictions, making the search for automobile insurance products a worthwhile activity for consumers.

  15. The relative price of services

    NARCIS (Netherlands)

    Inklaar, Robert; Timmer, Marcel P.

    2012-01-01

    Relative GDP prices increase with rising income per capita, which is generally attributed to services being cheaper in poorer countries. In this paper we re-examine this based on a new set of PPPs for industry output. These are estimated in an augmented Geary-Khamis approach using prices for final g

  16. Price satisfaction and producer loyalty

    DEFF Research Database (Denmark)

    Mutonyi, Sarah; Beukel, Karin; Gyau, Amos;

    2016-01-01

    Purpose The purpose of this paper is to investigate which dimensions of price satisfaction influence producers’ trust in buyers and assess the mediating role of such trust in the relationship between price satisfaction and producer loyalty in fresh fruit supply chains. Design/methodology/approach...

  17. Oil price and the dollar

    International Nuclear Information System (INIS)

    Oil prices and the United States (US) dollar exchange rate are driving the evolution of the world economy. This paper investigated long-term relationships between oil prices and the US effective exchange rate. An empirical study was performed on oil prices and the dollar real effective exchange rate between 1974 to 2004. The impact of the dollar exchange rate was also explored, and the effects of oil prices on supply and demand were considered. A dynamic partial equilibrium framework study was evaluated in order to compare how other countries used revenues from oil exports in dollars. The study showed that both variables had similar evolutions when price fluctuations were low. Strong increases in the dollar were associated with lower oil prices. However, adjustment speeds of the dollar real effective exchange rate was slow. Co-integration and causality tests showed that oil prices influenced the exchange rate, and that the link between the 2 variables was transmitted through the country's net foreign asset position. It was concluded that higher oil prices improved US net foreign asset position in relation to other countries, and had a positive impact on dollar appreciation. 24 refs., 6 tabs., 1 fig

  18. Pricing Films, Filmstrips and Records.

    Science.gov (United States)

    Epstein, Connie C.

    1984-01-01

    Examines pricing practices of major producers of educational materials: Weston Woods, Listening Library, Random House Educational Media, Live Oak Media, S&S Communications Group, Phoenix/BFA, Benchmark, and Churchill Films. Royalties, production and manufacturing costs, list prices, recoveries to producers, and marketing are noted. (EJS)

  19. The true Price of Chocolate?

    NARCIS (Netherlands)

    Ingram, V.J.; Chocoloney, T.

    2015-01-01

    Chocolate prices generally do not incorporate many of the environmental and social externalities, costs which are incurred as the main ingredients such as cocoa and sugar move from farms, to factories to consumers. Nor do prices reflect the benefits of non-conventional production and alternative mod

  20. Prices versus Quantities

    DEFF Research Database (Denmark)

    Hansen, Lars Gårn; Jensen, Frank

    uncertainty. We find that the gain from eliminating compliance uncertainty may be up to 5% of gross profit while the gain from eliminating ecological uncertainty is minimal. Under landing fee regulation, the entire gain from eliminating both types of uncertainty is captured, even if the regulator’s stock......Weitzman (2002) studies the regulation of a fishery characterised by constant marginal harvest costs and shows that price regulation performs better than quantity regulation when the regulator is uncertain about the biological reproduction function (ecological uncertainty). Here, we initially...... illustrate that this result does not generalise to a search fishery, where marginal costs are allowed to depend on harvest. Hansen et al (2008) study a fishery where non-compliance with regulations is a problem. When the regulator is uncertain about non-compliance (compliance uncertainty), then landing fees...

  1. Transfer Pricing and FDI

    Directory of Open Access Journals (Sweden)

    Patricia-Sabina Macelaru

    2013-08-01

    Full Text Available FDI analysis is usually performed within the frame of the win-win hypothesis. However, we believe that certain circumstances (MNEs following their own business objectives, lack of appropriate regulations, non-observance of the arm’s length principle may generate disproportionate advantages at the level of FDI stakeholders. The disequilibrium between reinvested profits and repatriated profits may be viewed as a proof of such disproportionate advantages of stakeholders involved in FDI. In addition to figures showing the comparison between reinvested and repatriated profits, as well as the way in which such indicators vary e.g. in case of abnormal business conditions (global economy collapse, we try to show that lack/misuse of transfer pricing regulations may generate even more disequilibrium, the MNEs using intra-group transactions as an additional way of repatriating non-taxable/low tax profits.

  2. Airport Pricing Strategies

    Science.gov (United States)

    Pels, Eric; Verhoef, Erik T.

    2003-01-01

    Conventional economic wisdom suggests that congestion pricing would be an appropriate response to cope with the growing congestion levels currently experienced at many airports. Several characteristics of aviation markets, however, may make naive congestion prices equal to the value of marginal travel delays a non-optimal response. This paper has developed a model of airport pricing that captures a number of these features. The model in particular reflects that airlines typically have market power and are engaged in oligopolistic competition at different sub-markets; that part of external travel delays that aircraft impose are internal to an operator and hence should not be accounted for in congestion tolls. We presented an analytical treatment for a simple bi-nodal symmetric network, which through the use of 'hyper-networks' would be readily applicable to dynamic problems (in discrete time) such as peak - off-peak differences, and some numerical exercises for the same symmetric network, which was only designed to illustrate the possible comparative static impacts of tolling, in addition to marginal equilibrium conditions as could be derived for the general model specification. Some main conclusions are that second-best optimal tolls are typically lower than what would be suggested by congestion costs alone and may even be negative, and that the toll as derived by Brueckner (2002) may not lead to an increase in total welfare. While Brueckner (2002) has made clear that congestion tolls on airports may be smaller than expected when congestion costs among aircraft are internal for a firm, our analysis adds to this that a further downward adjustment may be in order due to market power. The presence of market power (which causes prices to exceed marginal costs) may cause the pure congestion toll to be suboptimal, because the resulting decrease in demand is too high (the pure congestion tall does not take into account the decrease in consumer surplus). The various

  3. Energy price dispute - companies are confident

    International Nuclear Information System (INIS)

    Energy prices stipulated for 2003 were not compliant with the valid legislation. The Constitutional Court has repeatedly confirmed this fact. The dispute between several Slovak companies and the state will address the damage caused by illegal actions taken by the public authority, including loss of profit. A group of claimants represented by the Club 500 association is claiming up to 2 bil. Sk (57.97 mil. EUR) as compensation for the mistake made by the Office for Regulation of Network Industries (URSO), including the unclear calculation of the lost profit of companies. It will be up to the courts to decide whether the price deregulation really caused damage to the companies or whether they just took advantage of the faulty legislation.The companies base their claims on a decision of the Constitutional Court. Last year the Court twice announced that the 2003 energy prices were not compliant with valid legislation. At that time, Slovakia lacked a generally binding regulation that should have been in place according to the Act on Regulation of Network Industries. Currently, the role of these missing regulations has been taken over by URSO decrees. These stipulate justified costs and adequate profit of energy suppliers. The regulator had such a decree prepared at the end of 2002, but due to material stipulations and time constraints it did not publish it. (authors)

  4. Model documentation: Electricity market module, electricity finance and pricing submodule

    Energy Technology Data Exchange (ETDEWEB)

    1994-04-07

    The purpose of this report is to define the objectives of the model, describe its basic approach, and provide detail on how it works. The EFP is a regulatory accounting model that projects electricity prices. The model first solves for revenue requirements by building up a rate base, calculating a return on rate base, and adding the allowed expenses. Average revenues (prices) are calculated based on assumptions regarding regulator lag and customer cost allocation methods. The model then solves for the internal cash flow and analyzes the need for external financing to meet necessary capital expenditures. Finally, the EFP builds up the financial statements. The EFP is used in conjunction with the National Energy Modeling System (NEMS). Inputs to the EFP include the forecast generating capacity expansion plans, operating costs, regulator environment, and financial data. The outputs include forecasts of income statements, balance sheets, revenue requirements, and electricity prices.

  5. The Application of the Theory of the Price Elasticity of Demand to the EMS Management

    Institute of Scientific and Technical Information of China (English)

    SHI Yan-rui; CAO Pei-xia

    2004-01-01

    Express Mail Service (EMS) is the most competitive one of the post services. Price competition is the core of market competition and so for EMS. In this paper, we calculate the coefficient of demand elasticity and then put forward the price strategy for EMS to increase its competitive power.

  6. Burnout calculation

    International Nuclear Information System (INIS)

    Reviewed is the effect of heat flux of different system parameters on critical density in order to give an initial view on the value of several parameters. A thorough analysis of different equations is carried out to calculate burnout is steam-water flows in uniformly heated tubes, annular, and rectangular channels and rod bundles. Effect of heat flux density distribution and flux twisting on burnout and storage determination according to burnout are commended

  7. World oil prices, precious metal prices and macroeconomy in Turkey

    International Nuclear Information System (INIS)

    We examine the long- and short-run transmissions of information between the world oil price, Turkish interest rate, Turkish lira-US dollar exchange rate, and domestic spot gold and silver price. We find that the world oil price has no predictive power of the precious metal prices, the interest rate or the exchange rate market in Turkey. The results also show that the Turkish spot precious metals, exchange rate and bond markets do not also provide information that would help improve the forecasts of world oil prices in the long run. The findings suggest that domestic gold is also considered a safe haven in Turkey during devaluation of the Turkish lira, as it is globally. It is interesting to note that there does not seem to be any significant influence of developments in the world oil markets on Turkish markets in the short run either. However, transitory positive initial impacts of innovations in oil prices on gold and silver markets are observed. The short-run price transmissions between the world oil market and the Turkish precious metal markets have implications for policy makers in emerging markets and both local and global investors in the precious metals market and the oil market.

  8. Essays in financial transmission rights pricing

    Science.gov (United States)

    Posner, Barry

    This work examines issues in the pricing of financial transmission rights in the PJM market region. The US federal government is advocating the creation of large-scale, not-for-profit regional transmission organizations to increase the efficiency of the transmission of electricity. As a non-profit entity, PJM needs to allocate excess revenues collected as congestion rents, and the participants in the transmission markets need to be able to hedge their exposure to congestion rents. For these purposes, PJM has developed an instrument known as the financial transmission right (FTR). This research, utilizing a new data set assembled by the author, looks at two aspects of the FTR market. The first chapter examines the problem of forecasting congestion in a transmission grid. In the PJM FTR system firms bid in a competitive auction for FTRs that cover a period of one month. The auctions take place in the middle of the previous month; therefore firms have to forecast congestion rents for the period two to six weeks after the auction. The common methods of forecasting congestion are either time-series models or full-information engineering studies. In this research, the author develops a forecasting system that is more economically grounded than a simple time-series model, but requires less information than an engineering model. This method is based upon the arbitrage-cost methodology, whereby congesting is calculated as the difference of two non-observable variables: the transmission price difference that would exist in the total absence of transmission capacity between two nodes, and the ability of the existing transmission to reduced that price difference. If the ability to reduce the price difference is greater than the price difference, then the cost of electricity at each node will be the same, and congestion rent will be zero. If transmission capacity limits are binding on the flow of power, then a price difference persists and congestion rents exist. Three

  9. Essays in financial transmission rights pricing

    Science.gov (United States)

    Posner, Barry

    This work examines issues in the pricing of financial transmission rights in the PJM market region. The US federal government is advocating the creation of large-scale, not-for-profit regional transmission organizations to increase the efficiency of the transmission of electricity. As a non-profit entity, PJM needs to allocate excess revenues collected as congestion rents, and the participants in the transmission markets need to be able to hedge their exposure to congestion rents. For these purposes, PJM has developed an instrument known as the financial transmission right (FTR). This research, utilizing a new data set assembled by the author, looks at two aspects of the FTR market. The first chapter examines the problem of forecasting congestion in a transmission grid. In the PJM FTR system firms bid in a competitive auction for FTRs that cover a period of one month. The auctions take place in the middle of the previous month; therefore firms have to forecast congestion rents for the period two to six weeks after the auction. The common methods of forecasting congestion are either time-series models or full-information engineering studies. In this research, the author develops a forecasting system that is more economically grounded than a simple time-series model, but requires less information than an engineering model. This method is based upon the arbitrage-cost methodology, whereby congesting is calculated as the difference of two non-observable variables: the transmission price difference that would exist in the total absence of transmission capacity between two nodes, and the ability of the existing transmission to reduced that price difference. If the ability to reduce the price difference is greater than the price difference, then the cost of electricity at each node will be the same, and congestion rent will be zero. If transmission capacity limits are binding on the flow of power, then a price difference persists and congestion rents exist. Three

  10. A comprehensive method for exotic option pricing

    OpenAIRE

    Rossella Agliardi

    2010-01-01

    This work illustrates how several new pricing formulas for exotic options can be derived within a Levy framework by employing a unique pricing expression. Many existing pricing formulas of the traditional Gaussian model are obtained as a by-product.

  11. ELMO model predicts the price of electric power

    International Nuclear Information System (INIS)

    Electrowatt-Ekono has developed a new model, by which it is possible to make long-term prognoses on the development of electricity prices in the Nordic Countries. The ELMO model can be used as an analysis service of the electricity markets and estimation of the profitability of long-term power distribution contracts with different scenarios. It can also be applied for calculation of technical and economical fundamentals for new power plants, and for estimation of the effects of different taxation models on the emissions of power generation. The model describes the whole power generation system, the power and heat consumption and transmission. The Finnish power generation system is based on the Electrowatt-Ekono's boiler database by combining different data elements. Calculation is based on the assumption that the Nordic power generation system is used optimally, and that the production costs are minimised. In practise the effectively operated electricity markets ensure the optimal use of the production system. The market area to be described consists of Finland and Sweden. The spot prices have long been the same. Norway has been treated as a separate market area. The most potential power generation system, the power consumption and the power transmission system are presumed for the target year during a normal rainfall situation. The basic scenario is calculated on the basis of the preconditional data. The calculation is carried out on hourly basis, which enables the estimation of the price variation of electric power between different times during the day and seasons. The system optimises the power generation on the basis of electricity and heat consumption curves and fuel prices. The result is an hourly limit price for electric power. Estimates are presented as standard form reports. Prices are presented as average annuals, in the seasonal base, and in hourly or daily basis for different seasons

  12. 7 CFR 1033.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1033.53 Section 1033.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE MIDEAST MARKETING AREA Order Regulating Handling Class Prices § 1033.53 Announcement...

  13. 7 CFR 1131.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1131.53 Section 1131.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE ARIZONA MARKETING AREA Order Regulating Handling Class Prices § 1131.53 Announcement...

  14. 7 CFR 1001.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1001.53 Section 1001.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE NORTHEAST MARKETING AREA Order Regulating Handling Class Prices § 1001.53 Announcement...

  15. 7 CFR 1006.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1006.53 Section 1006.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE FLORIDA MARKETING AREA Order Regulating Handling Class Prices § 1006.53 Announcement...

  16. 7 CFR 1032.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1032.53 Section 1032.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.53 Announcement...

  17. 7 CFR 1126.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1126.53 Section 1126.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE SOUTHWEST MARKETING AREA Order Regulating Handling Class Prices § 1126.53 Announcement...

  18. 7 CFR 1007.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1007.53 Section 1007.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE SOUTHEAST MARKETING AREA Order Regulating Handling Class Prices § 1007.53 Announcement...

  19. 7 CFR 1030.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1030.53 Section 1030.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE UPPER MIDWEST MARKETING AREA Order Regulating Handling Class Prices § 1030.53...

  20. 7 CFR 1124.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1124.53 Section 1124.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE PACIFIC NORTHWEST MARKETING AREA Order Regulating Handling Class Prices §...

  1. 7 CFR 1005.53 - Announcement of class prices, component prices, and advanced pricing factors.

    Science.gov (United States)

    2010-01-01

    ... advanced pricing factors. 1005.53 Section 1005.53 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE MILK IN THE APPALACHIAN MARKETING AREA Order Regulating Handling Class Prices § 1005.53 Announcement...

  2. Dynamic cyclical comovements of oil prices with industrial production, consumer prices, unemployment, and stock prices

    International Nuclear Information System (INIS)

    This paper examines the empirical relationship between oil prices and several key macroeconomic variables. In particular, we investigate the cyclical comovements of crude oil prices with output, consumer prices, unemployment, and stock prices. The methodology involves the use of the Hodrick-Prescott [Hodrick, R.J., Prescott, E.C., 1980. Post-War US Business Cycles: An Empirical Investigation. Working Paper, Carnegie Mellon University] and Baxter-King [Baxter, M., King, R.G., 1999. Measuring business cycles: approximate band-pass filters for economic time series. Review of Economics and Statistics 81, 575-593] filters, as well as the recently developed full-sample asymmetric Christiano-Fitzgerald [Christiano, L.J., Fitzgerald, T.J., 2003. The band pass filter. International Economic Review 44, 435-465] band-pass filter. Contemporaneous and cross-correlation estimates are made using the stationary cyclical components of the time series to make inference about the degree to which oil prices move with the cycle. Besides documenting a number of important cyclical relationships using three different time series filtering methods, the results suggest that crude oil prices are procyclical and lag industrial production. Additionally, we find that oil prices lead consumer prices. (author)

  3. Aplicación de una medida de riesgo coherente para el cálculo de la prima de riesgo en un seguro de rentas = Application of a coherent risk measure in the price calculation of an income insurance (annuities

    Directory of Open Access Journals (Sweden)

    Montserrat Hernández Solís

    2014-07-01

    Full Text Available Resumen Una práctica común que realizan las entidades aseguradoras es la de modificar las tasas de mortalidad instantánea al aplicar el principio de prima neta con el fin de hacer frente a las desviaciones desfavorables de la siniestralidad. Este documento proporciona una respuesta matemática a esta cuestión mediante la aplicación de la función de distorsión de potencia de Wang. Tanto la prima neta y la función de distorsión de Wang son medidas de riesgo coherentes, siendo este último aplicado por primera vez en el campo delos seguros de vida. Utilizando las leyes de Gompertz y Makeham primero calculamos la prima a nivel general y en una segunda parte, se aplica el principio de cálculo de la prima basado en función de distorsión de potencia de Wang para calcular el recargo sobre la prima de riesgo ajustada. El precio de prima única de riesgo se ha aplicado a una forma de cobertura de seguro de supervivencia, el seguro de rentas. La principal conclusión que puede extraerse es que mediante el uso de la función de distorsión, la nueva tasa instantánea de mortalidad es directamente proporcional a un múltiplo, que es justamente el exponente de esta función y hace que el riesgo de longevidad sea mayor. Esta es la razón por la prima de riesgo ajustada es superior a la prima neta. Abstract Modification of instantaneous mortality rates when applying the net premium principle in order to cope with unfavorable deviations in claims, is common practice carried out by insurance companies. This paper provides a mathematical answer to this matter by applying Wang’s power distortion function. Both net premium and Wang’s distortion function are coherent risk measures, the latter being first applied to the field of life insurance. Using the Gompertz and Makeham laws we first calculate the premium at a general level and in a second part, the principle of premium calculation based on Wang´s power distortion function is applied to calculate

  4. Application of a coherent risk measure in the price calculation of an income insurance (annuities = Aplicación de una medida de riesgo coherente para el cálculo de la prima de riesgo en un seguro de rentas

    Directory of Open Access Journals (Sweden)

    Montserrat Hernández Solís

    2013-12-01

    Full Text Available Una práctica común que realizan las entidades aseguradoras es la de modificar las tasas de mortalidad instantánea al aplicar el principio de prima neta con el fin de hacer frente a las desviaciones desfavorables de la siniestralidad. Este documento proporciona una respuesta matemática a esta cuestión mediante la aplicación de la función de distorsión de potencia de Wang. Tanto la prima neta y la función de distorsión de Wang son medidas de riesgo coherentes, siendo este último aplicado por primera vez en el campo delos seguros de vida.Utilizando las leyes de Gompertz y Makeham primero calculamos la prima a nivel general y en una segunda parte, se aplica el principio de cálculo de la prima basado en función de distorsión de potencia de Wang para calcular el recargo sobre la prima de riesgo ajustada. El precio de prima única de riesgo se ha aplicado a una forma de cobertura de seguro de supervivencia, el seguro de rentas.La principal conclusión que puede extraerse es que mediante el uso de la función de distorsión, la nueva tasa instantánea de mortalidad es directamente proporcional a un múltiplo, que es justamente el exponente de esta función y hace que el riesgo de longevidad sea mayor. Esta es la razón por la prima de riesgo ajustada es superior a la prima neta.Modification of instantaneous mortality rates when applying the net premium principle in order to cope with unfavorable deviations in claims, is common practice carried out by insurance companies. This paper provides a mathematical answer to this matter by applying Wang’s power distortion function. Both net premium and Wang’s distortion function are coherent risk measures, the latter being first applied to the field of life insurance.Using the Gompertz and Makeham laws we first calculate the premium at a general level and in a second part, the principle of premium calculation based on Wang´s power distortion function is applied to calculate the adjusted risk

  5. How Do Companies Use the Price Strategies

    Institute of Scientific and Technical Information of China (English)

    赵亚男; 赵翠玲

    2011-01-01

    @@ 1 .Introduction With the development of the globalization, companies face many challenges.Pricing strategy is a part of their marketing efforts.Price is the only element in the marketing mix that produces revenues; all other elements re present cost.So pricing and price competition is the number-one problem facing many marketing executives.To select an initial price, companies should using pricing

  6. Why Prices Rise Faster than they Fall

    OpenAIRE

    Sheldon Kimmel

    2009-01-01

    For decades the fact that input price hikes are passed on faster than input price cuts was thought to be well explained by the assumption that competitive firms fully pass on all input price changes, so they can't price asymmetrically, so asymmetric pricing behavior is limited to oligopolies, firms that do all sorts of bizarre things (finding yet another one being no big deal). However, Peltzman found no effect of concentration on such asymmetric pricing, raising the puzzle of why competitive...

  7. Water Demand Under Alternative Price Structures

    OpenAIRE

    Sheila Olmstead; W. Michael Hanemann; Robert N. Stavins

    2007-01-01

    We estimate the price elasticity of water demand with household-level data, structurally modeling the piecewise-linear budget constraints imposed by increasing-block pricing. We develop a mathematical expression for the unconditional price elasticity of demand under increasing-block prices and compare conditional and unconditional elasticities analytically and empirically. We test the hypothesis that price elasticity may depend on price structure, beyond technical differences in elasticity co...

  8. Alfalfa Hay Quality and Alternative Pricing Systems

    OpenAIRE

    Hopper, Jared A.; Peterson, Hikaru Hanawa; Burton, Robert O., Jr.

    2004-01-01

    Price-quality relationships for alfalfa hay were analyzed by hedonic pricing models using 1996-2001 Wisconsin auction data. Individual nutrients included in the analysis all affected alfalfa price, with acid detergent fiber accounting for the largest impact. Alternative pricing models, based on an aggregate quality index or detailed quality information, were similar in their ability to predict price. However, disaggregating price predictions to account for differences in relative feed value (...

  9. Agricultural commodity prices and oil prices: mutual causation

    OpenAIRE

    McFarlane, Ian

    2016-01-01

    The world market price of many commodities including US corn (maize) peaked sharply in 2008. The US Energy Policy Act (2005) led to a rapid rise in demand for corn ethanol as a partial substitute for gasoline in the USA. In this paper we report analysis of weekly prices of corn, wheat, sugar and crude oil, together with monthly series derived from those and other weekly prices, for two consecutive seven year periods: 1999-2005 and 2006-2012. We find strong evidence of cointegration between pr...

  10. Pricing of insurance policies against cloud storage price rises

    OpenAIRE

    Mastroeni, Loretta; Naldi, Maurizio

    2012-01-01

    When a company migrates to cloud storage, the way back is neither easy nor cheap. The company is then locked up in the storage contract and exposed to upward market prices, which reduce the company's profit and may even bring it below zero. We propose a protection means based on an insurance contract, by which the cloud purchaser is indemnified when the current storage price exceeds a pre-defined threshold. By applying the financial options theory, we provide a formula for the insurance price...

  11. Energy prices, equalization and federalism

    International Nuclear Information System (INIS)

    A rise in oil prices over the last 30 years has shaped the debate on the equalization formula as well as the nature of fiscal federalism. The oil shocks of 1973 and 1979 contributed to the creation of the National Energy Program (NEP) in 1980 and the Energy Pricing and Taxation Agreement (EPTA) between Ottawa and Alberta in 1981. The current surge in oil prices, to recent highs of $70 a barrel has resulted in a new debate on energy pricing, equalization and fiscal frameworks. This article presented a review of the history of oil and federalism, and proposed a remedy to the horizontal fiscal imbalance by allocating the fixed equalization pool in accordance with fiscal capacity disparities relating to non-resource revenues. An interprovincial revenue-sharing pool was suggested for resource revenues, agreed to and operated by the provinces. It was suggested that after the price spike in 1973 in which the price of oil tripled, a key part of the rationale for imposing export taxes on oil equal to the difference between domestic and world prices was that the federal government could subsidize oil imports into eastern Canada and maintain a uniform domestic price across the country. By continuing to subsidize imports and maintaining a domestic price below the world price, the government has been diverting potential energy revenues from energy-rich provinces and transferring them directly to Canadians in terms of subsidized energy prices. It was noted that energy price surges cannot send equalization payments soaring as they did before because of the 2004 Framework Agreement, in which the overall equalization will be increased to $10.9 billion. A 2-tier approach to equalization was presented, in which it was suggested that the $10.9 billion pool should be allocated with fiscal capacity disparities relating to non-resource revenues. The creation of a revenue sharing pool for resource revenues was recommended. It was suggested that the 2 approaches will result in a strategic

  12. Optimal Fourier Inversion in Semi-analytical Option Pricing

    NARCIS (Netherlands)

    R. Lord (Roger); Ch. Kahl

    2006-01-01

    textabstractAt the time of writing this article, Fourier inversion is the computational method of choice for a fast and accurate calculation of plain vanilla option prices in models with an analytically available characteristic function. Shifting the contour of integration along the complex plane al

  13. Product Bundling and Shared Information Goods: A Pricing Exercise

    Science.gov (United States)

    Morrison, William G.

    2016-01-01

    In this article, the author describes an exercise in which two pricing problems (product bundling and the sharing of digital information goods) can be understood using the same analytical approach. The exercise allows students to calculate the correct numerical answers with relative ease, while the teaching plan demonstrates the importance of the…

  14. Vibrato Monte Carlo and the calculation of greeks

    OpenAIRE

    Keegan, Sinead

    2008-01-01

    In computational ¯nance Monte Carlo simulation can be used to calculate the correct prices of ¯nancial options, and to compute the values of the as- sociated Greeks (the derivatives of the option price with respect to certain input parameters). The main methods used for the calculation of Greeks are finite difference, likelihood ratio, and pathwise sensitivity. Each of these has its limitations and in particular the pathwise sensitivity approach may not be used for an option...

  15. Construction of Discrete Time Shadow Price

    Energy Technology Data Exchange (ETDEWEB)

    Rogala, Tomasz, E-mail: rogalatp@gmail.com; Stettner, Lukasz, E-mail: stettner@impan.pl [Polish Academy of Sciences, Institute of Mathematics (Poland)

    2015-12-15

    In the paper expected utility from consumption over finite time horizon for discrete time markets with bid and ask prices and strictly concave utility function is considered. The notion of weak shadow price, i.e. an illiquid price, depending on the portfolio, under which the model without bid and ask price is equivalent to the model with bid and ask price is introduced. Existence and the form of weak shadow price is shown. Using weak shadow price usual (called in the paper strong) shadow price is then constructed.

  16. Price Volatility of Main Food Commodity in Banyumas Regency Indonesia

    Directory of Open Access Journals (Sweden)

    Rahmi Hayati Putri

    2016-06-01

    Full Text Available Agricultural product is commodity which tends to fluctuate. Price volatility is caused by the change of agricultural production due to climate change as well as pest and disease. Furthermore, it is also caused by the change of agricultural land and high demand of agricultural products on religious holidays. This study was conducted to examine how volatile some of main food commodities in Banyumas Regency. Secondary data analysis method with quantitative approach was used in this research. Time series data of some food commodity prices (rice IR 64, local soybean, maize, chili red peppers, onion and garlic from January 2008 – December 2013 were utilized. The coefficient of variation was calculated to determine price volatility. The result showed that the price of red chili pepper, onion and garlic was tending to volatile. The coefficient of variation ratio of those commodities was about 20% - 35%. While the price of rice, local soybean and maize was stable. The coefficient of variation ratio of those commodities was less than 9%. This study also includes some policies that can be suggested to prevent price volatility.

  17. The analysis of the mineral fertilizers prices in the 2000-2010 year

    Directory of Open Access Journals (Sweden)

    Arkadiusz Piwowar

    2011-01-01

    Full Text Available In the 2000-2010 year the prices surge of agricultural production took place. It refers especially to the mineral fertilizers. In this paper the analyses of the mineral fer-tilizers prices in the domestic market are shown, taking seasonal changes under considera-tion. The synthetic representation of the researched phenomenon seasonality has been reached by seasonality rates calculating (additive. The research results show that the prices of all put to analysis fertilizers are characterized by seasonality, but the oscillation rate was different. The prices seasonality rates of ammonium nitrate were higher than other fertilizers.

  18. The price function of toxicity.

    Science.gov (United States)

    Vincent, Mark D; Dranitsaris, George

    2009-03-01

    The high and accelerating price of new anticancer drugs is giving rise to increased concern. However, monetary price is not the only way to value chemotherapy. Toxic effects can also be seen as a form of payment in which "units" of wellbeing are exchanged for "units" of efficacy. Although this trading analogy is not perfect, a proposal can be made that toxicity is a type of price, and that one of its functions is to signal valuation, similar to the crucial signalling function of monetary price in the real economy. This price function of toxicity, to the extent where there is transparency about the real amounts of toxicity, can have two important and helpful consequences: acting as a brake on the increasing monetary price of new drugs, via a damping effect on demand; and assisting individual patients in the informed contemplation of chemotherapy decisions. However, there are two problems that currently impede the effective dissemination of this highly desirable toxicity information. First, a prediction of toxicity in individual patients is difficult. Second, the vast database of real toxic effects in community practice is rarely made available for public scrutiny. Both of these problems, which together constitute a form of hidden cost, are potentially resolvable at least to some extent. In the absence of accurate information on toxic effects, it is easy for monetary price to progressively diverge from true value. We believe that improved transparency with respect to toxic effects, and better toxicity prediction, offer a better and more genuinely market-orientated solution to the issue of price distortions than the bureaucratic imposition of price controls. PMID:19261259

  19. Multi-factor energy price models and exotic derivatives pricing

    Science.gov (United States)

    Hikspoors, Samuel

    The high pace at which many of the world's energy markets have gradually been opened to competition have generated a significant amount of new financial activity. Both academicians and practitioners alike recently started to develop the tools of energy derivatives pricing/hedging as a quantitative topic of its own. The energy contract structures as well as their underlying asset properties set the energy risk management industry apart from its more standard equity and fixed income counterparts. This thesis naturally contributes to these broad market developments in participating to the advances of the mathematical tools aiming at a better theory of energy contingent claim pricing/hedging. We propose many realistic two-factor and three-factor models for spot and forward price processes that generalize some well known and standard modeling assumptions. We develop the associated pricing methodologies and propose stable calibration algorithms that motivate the application of the relevant modeling schemes.

  20. The Optimal Price Ratio of Typical Energy Sources in Beijing Based on the Computable General Equilibrium Model

    Directory of Open Access Journals (Sweden)

    Yongxiu He

    2014-04-01

    Full Text Available In Beijing, China, the rational consumption of energy is affected by the insufficient linkage mechanism of the energy pricing system, the unreasonable price ratio and other issues. This paper combines the characteristics of Beijing’s energy market, putting forward the society-economy equilibrium indicator R maximization taking into consideration the mitigation cost to determine a reasonable price ratio range. Based on the computable general equilibrium (CGE model, and dividing four kinds of energy sources into three groups, the impact of price fluctuations of electricity and natural gas on the Gross Domestic Product (GDP, Consumer Price Index (CPI, energy consumption and CO2 and SO2 emissions can be simulated for various scenarios. On this basis, the integrated effects of electricity and natural gas price shocks on the Beijing economy and environment can be calculated. The results show that relative to the coal prices, the electricity and natural gas prices in Beijing are currently below reasonable levels; the solution to these unreasonable energy price ratios should begin by improving the energy pricing mechanism, through means such as the establishment of a sound dynamic adjustment mechanism between regulated prices and market prices. This provides a new idea for exploring the rationality of energy price ratios in imperfect competitive energy markets.

  1. Calculator calculus

    CERN Document Server

    McCarty, George

    1982-01-01

    How THIS BOOK DIFFERS This book is about the calculus. What distinguishes it, however, from other books is that it uses the pocket calculator to illustrate the theory. A computation that requires hours of labor when done by hand with tables is quite inappropriate as an example or exercise in a beginning calculus course. But that same computation can become a delicate illustration of the theory when the student does it in seconds on his calculator. t Furthermore, the student's own personal involvement and easy accomplishment give hi~ reassurance and en­ couragement. The machine is like a microscope, and its magnification is a hundred millionfold. We shall be interested in limits, and no stage of numerical approximation proves anything about the limit. However, the derivative of fex) = 67.SgX, for instance, acquires real meaning when a student first appreciates its values as numbers, as limits of 10 100 1000 t A quick example is 1.1 , 1.01 , 1.001 , •••• Another example is t = 0.1, 0.01, in the functio...

  2. Reliability calculations

    International Nuclear Information System (INIS)

    Risk and reliability analysis is increasingly being used in evaluations of plant safety and plant reliability. The analysis can be performed either during the design process or during the operation time, with the purpose to improve the safety or the reliability. Due to plant complexity and safety and availability requirements, sophisticated tools, which are flexible and efficient, are needed. Such tools have been developed in the last 20 years and they have to be continuously refined to meet the growing requirements. Two different areas of application were analysed. In structural reliability probabilistic approaches have been introduced in some cases for the calculation of the reliability of structures or components. A new computer program has been developed based upon numerical integration in several variables. In systems reliability Monte Carlo simulation programs are used especially in analysis of very complex systems. In order to increase the applicability of the programs variance reduction techniques can be applied to speed up the calculation process. Variance reduction techniques have been studied and procedures for implementation of importance sampling are suggested. (author)

  3. Oil, Uncertainty, and Gasoline Prices

    OpenAIRE

    Dongfeng (Karen) Chang; Apostolos Serletis

    2015-01-01

    In this paper we investigate the relationship between crude oil and gasoline prices and also examine the effect of oil price uncertainty on gasoline prices. The empirical model is based on a structural vector autoregression that is modifiÂ…ed to accommodate multivariate GARCH-in-Mean errors, as detailed in Elder (2004) and Elder and Serletis (2010). We use monthly data for the United States, over the period from January 1976 to September 2014. We fiÂ…nd that there is an asymmetric relationshi...

  4. The Nominal Share Price Puzzle

    OpenAIRE

    William C. Weld; Roni Michaely; RICHARD H. THALER; Shlomo Benartzi

    2009-01-01

    The average nominal share prices of common stocks traded on the New York Stock Exchange have remained constant at approximately $35 per share since the Great Depression as a result of stock splits. It is surprising that U.S. firms actively maintained constant nominal prices for their shares while general prices in the economy went up more than tenfold. This is especially puzzling given that commissions paid by investors on trading ten $35 shares are about ten times those paid on a single $350...

  5. What drives natural gas prices?

    OpenAIRE

    Stephen P. A. Brown; Yücel, Mine K.

    2007-01-01

    For many years, fuel switching between natural gas and residual fuel oil kept natural gas prices closely aligned with those for crude oil. More recently, however, the number of U.S. facilities able to switch between natural gas and residual fuel oil has declined, and over the past five years, U.S. natural gas prices have been on an upward trend with crude oil prices but with considerable independent movement. Natural gas market analysts generally emphasize weather and inventories as drivers o...

  6. Spatial peak-load pricing

    Energy Technology Data Exchange (ETDEWEB)

    Arellano, M. Soledad; Serra, Pablo [Universidad de Chile, Dept. of Industrial Engineering, Santiago (Chile)

    2007-03-15

    This article extends the traditional electricity peak-load pricing model to include transmission costs. In the context of a two-node, two-technology electric power system, where suppliers face inelastic demand, we show that when the marginal plant is located at the energy-importing center, generators located away from that center should pay the marginal capacity transmission cost; otherwise, consumers should bear this cost through capacity payments. Since electric power transmission is a natural monopoly, marginal-cost pricing does not fully cover costs. We propose distributing the revenue deficit among users in proportion to the surplus they derive from the service priced at marginal cost. (Author)

  7. Forecasting prices and price volatility in the Nordic electricity market

    International Nuclear Information System (INIS)

    We develop a stochastic model for long term price forecasting in a competitive electricity market environment. It is demonstrated both theoretically and through model simulations that non-stochastic models may give biased forecasts both with respect to price level and volatility. In the paper, the model concept is applied on the restructured Nordic electricity market. It is specially in peak load hours that a stochastic model formulation provides significantly different results than an expected value model. (author)

  8. Daily House Price Indices: Construction, Modeling, and Longer-Run Predictions

    DEFF Research Database (Denmark)

    Bollerslev, Tim; Patton, Andrew J.; Wang, Wenjing

    We construct daily house price indices for ten major U.S. metropolitan areas. Our calculations are based on a comprehensive database of several million residential property transactions and a standard repeat-sales method that closely mimics the methodology of the popular monthly Case-Shiller house...... price indices. Our new daily house price indices exhibit dynamic features similar to those of other daily asset prices, with mild autocorrelation and strong conditional heteroskedasticity of the corresponding daily returns. A relatively simple multivariate time series model for the daily house price...... index returns, explicitly allowing for commonalities across cities and GARCH effects, produces forecasts of monthly house price changes that are superior to various alternative forecast procedures based on lower frequency data....

  9. A path-independent method for barrier option pricing in hidden Markov models

    Science.gov (United States)

    Rashidi Ranjbar, Hedieh; Seifi, Abbas

    2015-12-01

    This paper presents a method for barrier option pricing under a Black-Scholes model with Markov switching. We extend the option pricing method of Buffington and Elliott to price continuously monitored barrier options under a Black-Scholes model with regime switching. We use a regime switching random Esscher transform in order to determine an equivalent martingale pricing measure, and then solve the resulting multidimensional integral for pricing barrier options. We have calculated prices for down-and-out call options under a two-state hidden Markov model using two different Monte-Carlo simulation approaches and the proposed method. A comparison of the results shows that our method is faster than Monte-Carlo simulation methods.

  10. Impact Of Air Pollution On Property Values: A Hedonic Price Study

    Directory of Open Access Journals (Sweden)

    Endah Saptutyningsih

    2013-06-01

    Full Text Available The main purpose of this study is the calculation of implicit prices of the environmental level of air quality in Yogyakarta on the basis of housing property prices. By means of Geographical Information System, the housing property prices characterized from the area which have highest air pollution level in province of Yogyakarta. Carbon monoxide is used as the pollution variable. The methodological framework for estimation is based on a hedonic price model. This approach establishes a relationship between the price of a marketable good (e.g. housing and the amenities and characteristics this good contains. Therefore, if variations in air pollution levels occur, then households would change their behavior in an economic way by offering more money for housing located in highly improved environmental areas. The hedonic regression results that the housing price decrease while increasing the level of air contamination such substance as carbon monoxide.

  11. Convergence of electricity wholesale prices in Europe - a Kalman filter approach

    International Nuclear Information System (INIS)

    This study tests the hypothesis that the ongoing restructuring process in the European electricity sector, as well as market participants' adaptation to the new legal framework, have caused electricity wholesale day-ahead prices to converge towards arbitrage freeness. Using hourly cross-border capacity auction results at the Dutch-German and at the Danish-German border for the years 2002 to 2004, and the respective spot prices, we estimate a time-varying coefficient model based on the law of one price (LOP). The results of these estimations are used to calculate the speed of convergence towards the LOP. While the German - Dutch prices and the German - West Danish prices are clearly developing towards arbitrage freeness, the German and East Danish prices do not exhibit significant convergence. (Author)

  12. Economic impact of price forecasting inaccuracies on self-scheduling of generation companies

    International Nuclear Information System (INIS)

    This paper studies the economic impact of using inaccurate price forecasts on self-scheduling of generation companies (GenCos) in a competitive electricity market. Four alternative sets of price forecasts are used in this study which have different levels of accuracy. The economic impact of price forecast inaccuracies is calculated by comparing the economic benefits of the GenCos in two self-scheduling scenarios. In the first scenario, electricity market price forecasts are used to optimally schedule the GenCos' next day operation. In the second scenario, perfect price forecasts, i.e., actual market prices, are used for self-scheduling of the GenCos. Two indices are utilized to quantify the differences in the economic benefits of the GenCos under the two scenarios. Simulation results are provided and discussed for two typical and inherently different GenCos, i.e., a hydro-based producer and a thermal-based producer. (author)

  13. STUDY ON SPATIAL AUTOCORRELATION OF URBAN LAND PRICE DISTRIBUTION IN CHANGZHOU CITY OF JIANGSU PROVINCE

    Institute of Scientific and Technical Information of China (English)

    LIU Zhong-gang; LI Man-chun; SUN Yan; MA Wen-bo

    2006-01-01

    This paper uses a spatial statistics method based on the calculation of spatial autocorrelation as a possible approach for modeling and quantifying the distribution of urban land price in Changzhou City, Jiangsu Province.GIS and spatial statistics provide a useful way for describing the distribution of urban land price both spatially and temporally, and have proved to be useful for understanding land price distribution pattern better. In this paper, we apply the statistical analysis method to 8379 urban land price samples collected from Changzhou Land Market, and it is turned out that the proposed approach can effectively identify the spatial clusters and local point patterns in dataset and forms a general method for conceptualizing the land price structure. The results show that land price structure in Changzhou City is very complex and that even where there is a high spatial autocorrelation, the land price is still relatively heterogeneous. Furthermore, lands for different uses have different degrees of spatial autocorrelation. Spatial autocorrelation of commercial lands is more intense than that of residential and industrial lands in regional central district. This means that treating land price as integration of homogeneous units can limit analysis of pattern, over-simplifying the structure of land price, but the methods, just as the autocorrelation approaches, are useful tools for quantifying the variables of land price.

  14. Relative prices, the price level and inflation: Effects of asymmetric and sticky adjustment

    OpenAIRE

    Shruti Tripathi; Ashima Goyal

    2011-01-01

    The paper examines how relative price shocks can affect the price level and then inflation. Using Indian data we find: (i) price increases exceed price decreases. Aggregate inflation depends on the distribution of relative price changes-inflation rises when the distribution is skewed to the right, (ii) such distribution based measures of supply shocks perform better than traditional measures, such as prices of energy and food. They moderate the price puzzle, whereby a rise in policy rates inc...

  15. Supply Chain Shipment Pricing Data

    Data.gov (United States)

    US Agency for International Development — This data set provides supply chain health commodity shipment and pricing data. Specifically, the data set identifies Antiretroviral (ARV) and HIV lab shipments to...

  16. Regime Jumps in Electricity Prices

    International Nuclear Information System (INIS)

    Electricity prices are known to be very volatile and subject to frequent jumps due to system breakdown, demand shocks, and inelastic supply. As many international electricity markets are in some state of deregulation, more and more participants in these markets are exposed to these stylised facts. Appropriate pricing, portfolio, and risk management models should incorporate these facts. Authors have introduced stochastic jump processes to deal with the jumps, but we argue and show that this specification might lead to problems with identifying the true mean-reversion within the process. Instead, we propose using a regime jump model that disentangles mean-reversion from jump behaviour. This model resembles more closely the true price path of electricity prices

  17. Staple food prices in Kenya

    OpenAIRE

    Ariga, Joshua; Jayne, Thomas S.; Njukia, Stephen

    2010-01-01

    Prepared for the COMESA policy seminar on “Variation in staple food prices: Causes, consequence, and policy options”, Maputo, Mozambique, 25-26 January 2010 under the Comesa-MSU-IFPRI African Agricultural Marketing Project (AAMP)

  18. Prices of Resins Changed Differently

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    @@ Polyethylene In early August 2007, due to the low operating rate in downstream plants, the demand was slack, and the offer price of LLDPE (linear low density polyethylene) decrease with few trading actions.

  19. Experimental Evidence on Transfer Pricing

    Directory of Open Access Journals (Sweden)

    Tran Quoc H.

    2016-06-01

    Full Text Available We use incentivized economics experiments to test both the point predictions and comparative static predictions of optimal transfer pricing models, comparing behavior under varying conditions, including wholly versus partially-owned subsidiaries and different tariff and tax rates. As predicted, we find that transfer prices are responsive to relative tax and tariff rates as well as ownership proportions. Additionally, we examine convergence and learning in this setting. While individuals do not choose optimal transfer prices, their choices converge to optimal levels with experience. This paper thus makes two important contributions. First, by comparing behavior with theoretical predictions it provides evidence of whether (and when individuals set transfer prices optimally. Second, by comparing behavior under conditions of full and partial ownership it provides evidence on the impact of policy interventions (like regulating ownership proportions by MNEs on tax revenues.

  20. Dynamic pricing of a resource

    KAUST Repository

    Al-Dawsari, Monther Abdullah

    2013-06-04

    A method of dynamic pricing of a resource is presented. For example, the method includes determining a set of anticipated demands for one or more users to acquire the resource according to uncertainty of the one or more users in preferring one or more certain time periods of a plurality of time periods for acquiring the resource. Prices for the resource differ between at least two of the plurality of time periods. Each anticipated demand of the set is associated with a different one of the plurality of time periods. The method further includes setting prices for the resource during each of the plurality of time periods according to the determined set of anticipated demands. The determining of the set of anticipated demands and/or the setting of prices are implemented as instruction code executed on a processor device.

  1. Oil prices and economic growth

    International Nuclear Information System (INIS)

    There is no limit to the sources of hydrocarbons (whether pumped out of the earth or produced in factories) for the next few decades, but there is and will be a need for increasingly complex and costly techniques as the usual sources of petroleum run out. Does this mean that prices will keep on rising? Probably, since environmental costs must be added onto direct costs. The mining of oil out of 'tar sands', for example, or the production of hydrocarbons by the chemical industry will have a significant impact owing to the emission of greenhouse gases. If prices do rise in the short or middle term, the cause will have to do more with the calendar of investments than with the availability of energy and its costs. In the long run however, price hikes are not all that certain. A few points for analyzing and predicting the macro-and micro-economic effects of fluctuating oil prices are discussed. (author)

  2. Efficient Option Pricing in Crisis Based on Dynamic Elasticity of Variance Model

    Directory of Open Access Journals (Sweden)

    Congyin Fan

    2016-01-01

    Full Text Available Market crashes often appear in daily trading activities and such instantaneous occurring events would affect the stock prices greatly. In an unstable market, the volatility of financial assets changes sharply, which leads to the fact that classical option pricing models with constant volatility coefficient, even stochastic volatility term, are not accurate. To overcome this problem, in this paper we put forward a dynamic elasticity of variance (DEV model by extending the classical constant elasticity of variance (CEV model. Further, the partial differential equation (PDE for the prices of European call option is derived by using risk neutral pricing principle and the numerical solution of the PDE is calculated by the Crank-Nicolson scheme. In addition, Kalman filtering method is employed to estimate the volatility term of our model. Our main finding is that the prices of European call option under our model are more accurate than those calculated by Black-Scholes model and CEV model in financial crashes.

  3. The Price-Anderson Act

    International Nuclear Information System (INIS)

    The Price-Anderson Act establishes nuclear liability law in the United States. First passed in 1957, it has influenced other nuclear liability legislation around the world. The insurer response the nuclear accident at Three Mile Island in 1979 demonstrates the application of the Act in a real life situation. The Price-Anderson Act is scheduled to be renewed in 2002, and the future use of commercial nuclear power in tge United States will be influenced by this renewal. (author)

  4. Food Prices and Political Instability

    OpenAIRE

    AREZKI Rabah; Brückner, Markus

    2011-01-01

    We examine the effects that variations in the international food prices have on democracy and intra-state conflict using panel data for over 120 countries during the period 1970-2007. Our main finding is that in Low Income Countries increases in the international food prices lead to a significant deterioration of democratic institutions and a significant increase in the incidence of anti-government demonstrations, riots, and civil conflict. In the High Income Countries variations in the inter...

  5. Valuation Risk and Asset Pricing

    OpenAIRE

    Rui Albuquerque; Martin S. Eichenbaum; Sergio Rebelo

    2012-01-01

    Standard representative-agent models have difficulty in accounting for the weak correlation between stock returns and measurable fundamentals, such as consumption and output growth. This failing underlies virtually all modern asset-pricing puzzles. The correlation puzzle arises because these models load all uncertainty onto the supply side of the economy. We propose a simple theory of asset pricing in which demand shocks play a central role. These shocks give rise to valuation risk that allow...

  6. Coordinated Oil Price Readjustment Plan

    Institute of Scientific and Technical Information of China (English)

    2006-01-01

    In March this year, the National Development and Reform Commission issued an oil price readjustment plan, including the establishment of a subsidy system for disadvantaged sections of the community and public service sectors, a price linkage mechanism for related industries, and a fiscal adjustment mechanism for oil enterprises. The recipients of the subsidies mainly include farmers, fishermen and fishing firms, state-owned forestry enterprises and urban public transportation firms.

  7. Path Integral and Asset Pricing

    OpenAIRE

    Zura Kakushadze

    2014-01-01

    We give a pragmatic/pedagogical discussion of using Euclidean path integral in asset pricing. We then illustrate the path integral approach on short-rate models. By understanding the change of path integral measure in the Vasicek/Hull-White model, we can apply the same techniques to "less-tractable" models such as the Black-Karasinski model. We give explicit formulas for computing the bond pricing function in such models in the analog of quantum mechanical "semiclassical" approximation. We al...

  8. Seasonality of Diesel Fuel Prices

    OpenAIRE

    Ibendahl, Gregg

    2012-01-01

    Diesel fuel is a major expense for most farmers. Diesel fuel prices do exhibit some seasonality so farmers can try to lower their fuel expenses by buying their fuel in months when prices are lower. However, purchasing fuel before it is needed results in a carrying charge to the farmer. This paper examines the optimal purchase month for diesel fuel for both spring planting and fall harvest. Both risk neutral and risk-averse farmers are considered. Higher interest rates discourage advance purch...

  9. The Predictability of House Prices

    OpenAIRE

    Gu, Anthony Y.

    2002-01-01

    The level and direction of autocorrelation in house price movements differ across areas and change over time. This finding reconciles the conflicting reports in the literature. When quarterly house price indices exhibit negative autocorrelation, autocorrelation shows a positive connection to volatility and a negative connection to rate of return. Autocorrelation between longer time periods is mainly positive; it exhibits a negative relationship with volatility and a positive relationship with...

  10. Option pricing with Levy Process

    OpenAIRE

    Eric Benhamou

    2002-01-01

    In this paper, we assume that log returns can be modelled by a Levy process. We give explicit formulae for option prices by means of the Fourier transform. We explain how to infer the characteristics of the Levy process from option prices. This enables us to generate an implicit volatility surface implied by market data. This model is of particular interest since it extends the seminal Black Scholes [1973] model consistently with volatility smile.

  11. Advertising Expenditure and Consumer Prices

    OpenAIRE

    Ferdinand Rauch

    2011-01-01

    This paper studies the effect of a change in the marginal costs of advertising on advertising expenditures of firms and consumer prices across industries. It makes use of a unique policy change that caused a decrease of the taxation on advertising expenditures in parts of Austria and a simultaneous increase in other parts. Advertising expenditures move immediately in the opposite direction to the marginal costs of advertising. Simultaneously the price reaction to advertising is negative in so...

  12. Rational Bubbles in Stock Prices?

    OpenAIRE

    Behzad T. Diba; Grossman, Herschel I.

    1985-01-01

    This paper reports empirical tests for the existence of rational bubbles in stock prices. The analysis focuses on a familiar model that defines market fundamentals to be the expected present value of dividends, discounted at a constantrate, and defines a rational bubble to be a self-confirming divergence of stock prices from market fundamentals in response to extraneous variables. The tests are based on the theoretical result that, if rational bubbles exist, time series obtained by differenci...

  13. The Price of Irrigation Water

    OpenAIRE

    Tisdell, J. G.

    1996-01-01

    User-pays as a principle for charging for the supply of regulated irrigation water is gaining acceptability by water authorities. This paper is concerned with the level of water charges, in particular, the capacity of farmers to pay increased prices for irrigation water. The main objective is to provide empirical estimates of water demand and supply, and to note the differences between statutory charges and market price, under different weather conditions in the Border Rivers Region of Queens...

  14. Asset Prices and Institutional Investors

    OpenAIRE

    Basak, Suleyman; Pavlova, Anna

    2013-01-01

    Empirical evidence indicates that trades by institutional investors have sizable effects on asset prices, generating phenomena such as index effects, asset-class effects and others. It is difficult to explain such phenomena within standard representative-agent asset pricing models. In this paper, we consider an economy populated by institutional investors alongside standard retail investors. Institutions care about their performance relative to a certain index. Our framework is tractable, adm...

  15. Stock Prices and IPO Waves

    OpenAIRE

    Pástor, Luboš; Veronesi, Pietro

    2003-01-01

    We develop a model of stock valuation and optimal IPO timing when investment opportunities are time-varying. IPO waves in our model are caused by declines in expected returns, increases in expected profitability, or increases in prior uncertainty about average profitability. The model predicts that IPO waves are preceded by high market returns, followed by low market returns, and accompanied by high stock prices. These as well as other predictions are supported empirically. Stock prices at th...

  16. Motor fuel prices in Turkey

    International Nuclear Information System (INIS)

    The world's most expensive motor fuel (gasoline, diesel and LPG) is sold most likely in the Republic of Turkey. This paper investigates the key issues related to the motor fuel prices in Turkey. First of all, the paper analyses the main reason behind high prices, namely motor fuel taxes in Turkey. Then, it estimates the elasticity of motor fuel demand in Turkey using an econometric analysis. The findings indicate that motor fuel demand in Turkey is quite inelastic and, therefore, not responsive to price increases caused by an increase in either pre-tax prices or taxes. Therefore, fuel market in Turkey is open to opportunistic behavior by firms (through excessive profits) and the government (through excessive taxes). Besides, the paper focuses on the impact of high motor fuel prices on road transport associated activities, including the pattern of passenger transportation, motorization rate, fuel use, total kilometers traveled and CO2 emissions from road transportation. The impact of motor fuel prices on income distribution in Turkey and Turkish public opinion about high motor fuel prices are also among the subjects investigated in the course of the study. - Highlights: • The key issues (e.g. taxes) related to motor fuel prices in Turkey are explored. • Their impact on transport activities and income distribution is also investigated. • An econometric analysis is performed to estimate motor fuel demand in Turkey. • Motor fuel demand in Turkey is found to be quite inelastic. • Turkish fuel market is open to opportunistic behavior by firms and the government

  17. Petroleum price; Prix du petrole

    Energy Technology Data Exchange (ETDEWEB)

    Maurice, J

    2001-07-01

    The oil market is the most volatile of all markets, with the exception of the Nasdaq. It is also the biggest commodity market in the world. Therefore one cannot avoid forecasting oil prices, nor can one expect to avoid the forecasting errors that have been made in the past. In his report, Joel Maurice draws a distinction between the short term and the medium-long term in analysing the outlook for oil prices. (author)

  18. Factor Price Equalization in Finland

    OpenAIRE

    Kerkelä, Leena; Kangasharju, Aki; Pekkala, Sari

    2003-01-01

    The Heckscher-Ohlin trade model leads to clear conclusions on the absolute and relative factor prices in a two-commodity specification of the model where both commodities are produced and factors can move freely within the economy. Even though the tests on factor price equalization fail in international comparisons, regional approach offers a prospective way of characterizing how factors of production, e.g. skilled and unskilled labor are utilized in optimally behaving markets and which poten...

  19. Topics in Electricity Transmission Pricing

    Energy Technology Data Exchange (ETDEWEB)

    Bjoerndal, Mette

    2000-02-01

    Within the last decade we have experienced deregulation of several industries, such as airlines, telecommunications and the electric utility industry, the last-mentioned being the focus of this work. Both the telecommunications and the electricity sector depend on network facilities, some of which are still considered as natural monopolies. In these industries, open network access is regarded as crucial in order to achieve the gains from increased competition, and transmission tariffs are important in implementing this. Based on the Energy Act that was introduced in 1991, Norway was among the first countries to restructure its electricity sector. On the supply side there are a large number of competing firms, almost exclusively hydro plants, with a combined capacity of about 23000 MW, producing 105-125 TWh per year, depending on the availability of water. Hydro plants are characterized by low variable costs of operation, however since water may be stored in dams, water has an opportunity cost, generally known as the water value, which is the shadow price of water when solving the generator's inter temporal profit maximization problem. Water values are the main factor of the producers' short run marginal cost. Total consumption amounts to 112-117 TWh a year, and consumers, even households, may choose their electricity supplier independent of the local distributor to which the customer is connected. In fact, approximately 10% of the households have actually changed supplier. The web-site www.konkurransetilsynet.no indicates available contracts, and www.dinside.no provides an ''energy-calculator'' where one can check whether it is profitable to switch supplier. If a customer buys energy from a remote supplier, the local distributor only provides transportation facilities for the energy and is compensated accordingly. Transmission and distribution have remained monopolized and regulated by the Norwegian Water Resources and Energy

  20. Topics on Electricity Transmission Pricing

    Energy Technology Data Exchange (ETDEWEB)

    Bjoerndal, Mette

    2000-02-01

    Within the last decade we have experienced deregulation of several industries, such as airlines, telecommunications and the electric utility industry, the last-mentioned being the focus of this work. Both the telecommunications and the electricity sector depend on network facilities, some of which are still considered as natural monopolies. In these industries, open network access is regarded as crucial in order to achieve the gains from increased competition, and transmission tariffs are important in implementing this. Based on the Energy Act that was introduced in 1991, Norway was among the first countries to restructure its electricity sector. On the supply side there are a large number of competing firms, almost exclusively hydro plants, with a combined capacity of about 23000 MW, producing 105-125 TWh per year, depending on the availability of water. Hydro plants are characterized by low variable costs of operation, however since water may be stored in dams, water has an opportunity cost, generally known as the water value, which is the shadow price of water when solving the generator's inter temporal profit maximization problem. Water values are the main factor of the producers' short run marginal cost. Total consumption amounts to 112-117 TWh a year, and consumers, even households, may choose their electricity supplier independent of the local distributor to which the customer is connected. In fact, approximately 10% of the households have actually changed supplier. The web-site www.konkurransetilsynet.no indicates available contracts, and www.dinside.no provides an ''energy-calculator'' where one can check whether it is profitable to switch supplier. If a customer buys energy from a remote supplier, the local distributor only provides transportation facilities for the energy and is compensated accordingly. Transmission and distribution have remained monopolized and regulated by the Norwegian Water Resources and Energy

  1. Sticky continuous processes have consistent price systems

    DEFF Research Database (Denmark)

    Bender, Christian; Pakkanen, Mikko; Sayit, Hasanjan

    Under proportional transaction costs, a price process is said to have a consistent price system, if there is a semimartingale with an equivalent martingale measure that evolves within the bid-ask spread. We show that a continuous, multi-asset price process has a consistent price system, under arb...

  2. Price Discrimination and Resale: A Classroom Experiment

    Science.gov (United States)

    Basuchoudhary, Atin; Metcalf, Christopher; Pommerenke, Kai; Reiley, David; Rojas, Christian; Rostek, Marzena; Stodder, James

    2008-01-01

    The authors present a classroom experiment designed to illustrate key concepts of third-degree price discrimination. By participating as buyers and sellers, students actively learn (1) how group pricing differs from uniform pricing, (2) how resale between buyers limits a seller's ability to price discriminate, and (3) how preventing price…

  3. 48 CFR 15.402 - Pricing policy.

    Science.gov (United States)

    2010-10-01

    ... resources. Use techniques such as, but not limited to, price analysis, cost analysis, and/or cost realism analysis to establish a fair and reasonable price. If a fair and reasonable price cannot be established by... price any amount for a specified contingency to the extent that the contract provides for a...

  4. Asymmetry in price transmission in agricultural markets

    OpenAIRE

    2013-01-01

    This paper explores the asymmetries in price transmission from international to local markets. We expect the presence of large intermediaries in agricultural markets to lead to a stronger price transmission when international prices decline than when they rise. The empirical evidence confirms the presence of asymmetric price transmission consistent with the presence of large intermediaries with monopsony power.

  5. Milk Pricing at the Wholesale Level

    OpenAIRE

    Christensen, Rondo A.

    1987-01-01

    Although the average marketing margin for fluid milk products (retail price minus raw milk price) has increased with marketing costs in recent years in the U. S., not all markets have shared in the increase, and in some, margins have decreased. This has prompted some milk handlers to examine more closely what affects milk prices, marketing margins, and pricing practices.

  6. Business cycles and natural gas prices

    Energy Technology Data Exchange (ETDEWEB)

    Apostolos, S.; Asghar, S. [University of Calgary, Alberta (Canada). Department of Economics

    2005-03-01

    This paper investigates the basic stylised facts of natural gas price movements using data for the period that natural gas has been traded on an organised exchange and the methodology suggested by Kydland and Prescott (1990). Our results indicate that natural gas prices are procyclical and lag the cycle of industrial production. Moreover, natural gas prices are positively contemporaneously correlated with United States consumer prices and lead the cycle of consumer prices, raising the possibility that natural gas prices might be a useful guide for US monetary policy, like crude oil prices are, possibly serving as an important indicator variable. (author)

  7. Price Guarantees, Consumer Search, and Hassle Costs

    OpenAIRE

    Baake, Pio; Schwalbe, Ulrich

    2013-01-01

    The paper deals with the competitive effects of price guarantees in a spatial duopoly where consumers can search for lower prices but have to incur hassle costs if they want to claim a price guarantee. It is shown that symmetric equilibria with and without price guarantees exist but price guarantees will have no effect on prices if search costs are low, hassle costs are high and the number of uninformed consumers is small. However, when both firms use price guarantees, there also exist payoff...

  8. An electricity price model with consideration to load and gas price effects

    Institute of Scientific and Technical Information of China (English)

    黄民翔; 陶小虎; 韩祯祥

    2003-01-01

    Some characteristics of the electricity load and prices are studied, and the relationship between electricity prices and gas (fuel) prices is analyzed in this paper. Because electricity prices are strongly dependent on load and gas prices, the authors constructed a model for electricity prices based on the effects of these two factors; and used the Geometric Mean Reversion Brownian Motion (GMRBM) model to describe the electricity load process, and a Geometric Brownian Motion(GBM) model to describe the gas prices; deduced the price stochastic process model based on the above load model and gas price model. This paper also presents methods for parameters estimation, and proposes some methods to solve the model.

  9. Dynamic pricing models for electronic business

    Indian Academy of Sciences (India)

    Y Narahari; C V L Raju; K Ravikumar; Sourabh Shah

    2005-04-01

    Dynamic pricing is the dynamic adjustment of prices to consumers depending upon the value these customers attribute to a product or service. Today’s digital economy is ready for dynamic pricing; however recent research has shown that the prices will have to be adjusted in fairly sophisticated ways, based on sound mathematical models, to derive the benefits of dynamic pricing. This article attempts to survey different models that have been used in dynamic pricing. We first motivate dynamic pricing and present underlying concepts, with several examples, and explain conditions under which dynamic pricing is likely to succeed. We then bring out the role of models in computing dynamic prices. The models surveyed include inventory-based models, data-driven models, auctions, and machine learning. We present a detailed example of an e-business market to show the use of reinforcement learning in dynamic pricing.

  10. Analysis on the Comparison of Vegetable Price

    Institute of Scientific and Technical Information of China (English)

    Na; LI; Jianmin; SHI

    2013-01-01

    In 2010,the garlic,bean and ginger became more expensive than ever,which made some people’s life harder.In response to such phenomena,the retail price and wholesale price at the producers’ end,the retail price and wholesale price at distributors’ end,and consumption related data(disposable income,consumption expenditure,fresh vegetables amount from 2004 to 2011 were compared and analyzed in this paper.Results showed that the average price(selling price,wholesale price and retail price) of five kinds of vegetables generally rose.There was certain differences in the price change range.Since 2004,especially in 2009 the vegetable prices had been so high that it had influenced the life of low income families in China.

  11. The causal relationship between salmon prices and share prices. Price analysis on the Oslo Stock Exchange

    OpenAIRE

    Carreira, Raquel Mosquera

    2013-01-01

    Atlantic salmon ((Salmo salar, Linneaus,1758)) is a commodity traded globally and salmon exports are one of the main sources of income for Norway. Despite the great growth both in supply and the demand in the last decades, there is still a substantial variability in industry profits level and an important part of such variability is due to fluctuation in salmon prices. This Master Thesis analyse whether this fluctuation is cause of the variability in share prices, for salmon producer compan...

  12. Separated influence of crude oil prices on regional natural gas import prices

    International Nuclear Information System (INIS)

    This paper analyses the impact of global economic activity and international crude oil prices on natural gas import prices in three major natural gas markets using the panel cointegration model. It also investigates the shock impacts of the volatility and the increase and decrease of oil prices on regional natural gas import prices. The results show that both global economic activity and international crude oil prices have significant long-term positive effects on regional natural gas import prices. The volatility of international crude oil prices has a negative impact on regional natural gas import prices. The shock impact is weak in North America, lags in Europe and is most significant in Asia, which is mainly determined by different regional policies for price formation. In addition, the response of natural gas import prices to increases and decreases in international crude oil prices shows an asymmetrical mechanism, of which the decrease impact is relatively stronger. - Highlights: • Impacts of world economy and oil prices on regional natural gas prices are analysed • North American natural gas prices are mainly affected by world economy • Asian and European natural gas prices are mainly affected by oil prices • The volatility of oil prices has a negative impact on regional natural gas prices • The response of natural gas import prices to oil prices up and down shows asymmetry

  13. Nodal price volatility reduction and reliability enhancement of restructured power systems considering demand-price elasticity

    International Nuclear Information System (INIS)

    With the development of restructured power systems, the conventional 'same for all customers' electricity price is getting replaced by nodal prices. Electricity prices will fluctuate with time and nodes. In restructured power systems, electricity demands will interact mutually with prices. Customers may shift some of their electricity consumption from time slots of high electricity prices to those of low electricity prices if there is a commensurate price incentive. The demand side load shift will influence nodal prices in return. This interaction between demand and price can be depicted using demand-price elasticity. This paper proposes an evaluation technique incorporating the impact of the demand-price elasticity on nodal prices, system reliability and nodal reliabilities of restructured power systems. In this technique, demand and price correlations are represented using the demand-price elasticity matrix which consists of self/cross-elasticity coefficients. Nodal prices are determined using optimal power flow (OPF). The OPF and customer damage functions (CDFs) are combined in the proposed reliability evaluation technique to assess the reliability enhancement of restructured power systems considering demand-price elasticity. The IEEE reliability test system (RTS) is simulated to illustrate the developed techniques. The simulation results show that demand-price elasticity reduces the nodal price volatility and improves both the system reliability and nodal reliabilities of restructured power systems. Demand-price elasticity can therefore be utilized as a possible efficient tool to reduce price volatility and to enhance the reliability of restructured power systems. (author)

  14. Topics on Electricity Transmission Pricing

    International Nuclear Information System (INIS)

    Within the last decade we have experienced deregulation of several industries, such as airlines, telecommunications and the electric utility industry, the last-mentioned being the focus of this work. Both the telecommunications and the electricity sector depend on network facilities, some of which are still considered as natural monopolies. In these industries, open network access is regarded as crucial in order to achieve the gains from increased competition, and transmission tariffs are important in implementing this. Based on the Energy Act that was introduced in 1991, Norway was among the first countries to restructure its electricity sector. On the supply side there are a large number of competing firms, almost exclusively hydro plants, with a combined capacity of about 23000 MW, producing 105-125 TWh per year, depending on the availability of water. Hydro plants are characterized by low variable costs of operation, however since water may be stored in dams, water has an opportunity cost, generally known as the water value, which is the shadow price of water when solving the generator's inter temporal profit maximization problem. Water values are the main factor of the producers' short run marginal cost. Total consumption amounts to 112-117 TWh a year, and consumers, even households, may choose their electricity supplier independent of the local distributor to which the customer is connected. In fact, approximately 10% of the households have actually changed supplier. The web-site www.konkurransetilsynet.no indicates available contracts, and www.dinside.no provides an ''energy-calculator'' where one can check whether it is profitable to switch supplier. If a customer buys energy from a remote supplier, the local distributor only provides transportation facilities for the energy and is compensated accordingly. Transmission and distribution have remained monopolized and regulated by the Norwegian Water Resources and Energy Directorate (NVE). To prevent cross

  15. Product Line Pricing in a Supply Chain

    OpenAIRE

    Lingxiu Dong; Chakravarthi Narasimhan; Kaijie Zhu

    2009-01-01

    A vertically integrated channel would prefer to coordinate the pricing of its products. In this paper, we investigate drivers of product line pricing decisions in a bilateral monopoly where a manufacturer produces and sells two substitutable or complementary products to a retailer. In a two-stage game, each firm commits credibly in the first stage to a pricing scheme within its own organization: product line pricing (PLP) or nonproduct line pricing (NPLP). In the second stage, depending on th...

  16. Alleviating Traffic Congestion: Alternatives to Road Pricing

    OpenAIRE

    Richard Arnott

    1994-01-01

    Economists' favorite remedy for traffic congestion is road pricing. Not only is road pricing based on sound economic principles, but also given current technology it could be implemented at reasonable cost and in a flexible and sophisticated manner. But there are serious obstacles to the widespread adoption of road pricing. There are problems of phase-in: the fixed costs of introducing any system of road pricing, as well as the problems of coordinating road pricing across jurisdictions, inclu...

  17. Endogenous average cost based access pricing

    OpenAIRE

    Fjell, Kenneth; Foros, Øystein; Pal, Debashis

    2006-01-01

    We consider an industry where a downstream competitor requires access to an upstream facility controlled by a vertically integrated and regulated incumbent. The literature on access pricing assumes the access price to be exogenously fixed ex-ante. We analyze an endogenous average cost based access pricing rule, where both firms realize the interdependence among their quantities and the regulated access price. Endogenous access pricing neutralizes the artificial cost advantag...

  18. Monerary Policy Response to Oil Price Shocks

    OpenAIRE

    Jean-Marc Natal

    2010-01-01

    How should monetary authorities react to an oil price shock? The New Keynesian literature has concluded that ensuring perfect price stability is optimal. Yet, the contrast between theory and practice is striking: Inflation targeting central banks typically favor a longer run approach to price stability. The first contribution of this paper is to show that because oil cost shares vary with oil prices, policies that perfectly stabilize prices entail large welfare costs, which explains the reluc...

  19. A periodic pricing model considering reference effect

    OpenAIRE

    Yang Hui; Zhang Chen

    2016-01-01

    The purpose of this paper is to investigate the optimal pricing strategies with reference effects in revenue management settings. We firstly propose a static pricing model with the properties of stochastic demand, finite horizon and fixed capacity, and prove the existence and uniqueness of the solution. Secondly, we extend the fixed pricing model to a periodic pricing model and incorporate a memory-based reference price in the demand function to investigate how the reference effect impacts on...

  20. Pricing strategies of the supermarket sector

    OpenAIRE

    Leal, Joana Lobato da Fonseca Sáragga

    2014-01-01

    The food retail industry is a very competitive market. Supermarkets use a combination of price, quality of products and service to lure consumers and increase their profit. This work project draws upon both empirical and theoretical literatures to understand the different pricing strategies that the supermarket sector uses. Everyday Low Price, Promotional, Zone Pricing and Loyalty Programs are the most common pricing strategies in this industry. By using data from the Portuguese supermarket l...

  1. Transfer pricing as a tax compliance risk

    OpenAIRE

    Jost, Sven P.; Pfaffermayr, Michael; Winner, Hannes

    2010-01-01

    This paper contributes to the empirical literature on the transfer pricing behavior of multinational firms. Previous research mainly focuses on transfer pricing as a means of tax optimization. Our approach concentrates on transfer pricing as a critical compliance issue. Specifically, we investigate whether and to what extent the awareness of transfer pricing as a tax compliance issue responds to country and industry characteristics as well as firm-specifics. Empirically, the transfer pricing ...

  2. OPTIMAL PRICING OF EXECUTIVE MBA PROGRAMS

    OpenAIRE

    Francis Petit

    2010-01-01

    The purpose of this research is to determine the most strategic tuition pricing strategy that can be utilized by senior management in Business Schools when pricing Executive MBA Programs. To determine this information, the state of the Executive MBA market and three pricing strategies were reviewed in detail and an analysis ensued on the viability and applicability of each strategy for pricing Executive MBA Programs. The main findings of this study indicate that the Value Based pricing model ...

  3. Oil price shocks and stock market activity

    Energy Technology Data Exchange (ETDEWEB)

    Sadorsky, P. [Schulich School of Business, York University, Toronto, ON (Canada)

    1999-10-01

    Results from a vector autoregression show that oil prices and oil price volatility both play important roles in affecting real stock returns. There is evidence that oil price dynamics have changed. After 1986, oil price movements explain a larger fraction of the forecast error variance in real stock returns than do interest rates. There is also evidence that oil price volatility shocks have asymmetric effects on the economy. 29 refs.

  4. Estimating Hedonic Prices for Stellenbosch wine

    OpenAIRE

    Sanja Lutzeyer

    2008-01-01

    This paper estimates a hedonic price function for Stellenbosch wines to determine the association between market value and different characteristics of these wines. In such a hedonic price function, the price of a bottle of wine is ascribed to the implicit value of its attributes. Besides contributing to both South African and international wine pricing literature, the benefits of developing a hedonic wine pricing model extend to numerous players in the wine industry. Consumers are provided w...

  5. Three Essays on Analyst Target Prices

    OpenAIRE

    Hashim, Noor

    2012-01-01

    This thesis presents three essays on analyst target prices. The essays contribute to the major debate on the value of analyst target prices in the capital market by addressing the following three questions: Does a bull-bear valuation analysis increase the accuracy of analysts’ target prices? Does analyst ranking affect how informative target prices are to institutional investors? And, do analysts use their cash flow forecasts when setting target prices?In the first essay, I explore whether co...

  6. Price Leadership and Unequal Market Sharing

    OpenAIRE

    Dijkstra, Peter T.

    2014-01-01

    We consider experimental markets of repeated homogeneous price-setting duopolies. We investigate the effect on collusion of sequential versus simultaneous price setting. We also examine the effect on collusion of changes in the size of each subject's market share in case both subjects set the same price. Our results show that sequential price setting compared with simultaneous price setting facilitates collusion, if subjects have equal market shares or if the follower has the larger market sh...

  7. Viewpoint: Option prices, preferences, and state variables

    OpenAIRE

    René Garcia; Richard Luger; Éric Renault

    2005-01-01

    This paper surveys recent developments in the theory of option pricing. The emphasis is on the interplay between option prices and investors' impatience and their aversion to risk. The traditional view, steeped in the risk-neutral approach to derivative pricing, has been that these preferences play no role in the determination of option prices. However, the usual lognormality assumption required to obtain preference-free option pricing formulas is at odds with the empirical properties of fina...

  8. Option Prices, Preferences, and State Variables

    OpenAIRE

    Rene Garcia; Richard Luger; Eric Renault

    2004-01-01

    This paper surveys recent developments in the theory of option pricing. The emphasis is on the interplay between option prices and investors' impatience and their aversion to risk. The traditional view, steeped in the risk-neutral approach to derivative pricing, has been that these preferences play no role in the determination of option prices. However, the usual lognormality assumption required to obtain preference-free option pricing formulas is at odds with the empirical properties of fina...

  9. Do energy price spikes cause inflation?

    OpenAIRE

    Owen F. Humpage; Eduard A. Pelz

    2003-01-01

    Many people mistakenly believe that a sharp rise in the price of energy is necessarily inflationary. They fail to understand that energy prices adjust with the demand and supply of energy, whereas inflation responds to the demand and supply of money. This Economic Commentary explains that the Federal Reserve can do nothing about relative energy prices, but can determine how relative energy price shocks are reflected in the overall level of prices. Over the last twenty years, the inflationary ...

  10. Price discrimination and business-cycle risk

    OpenAIRE

    Cornia, Marco; Gerardi, Kristopher S.; Shapiro, Adam Hale

    2011-01-01

    A parsimonious theoretical model of second degree price discrimination suggests that the business cycle will affect the degree to which firms are able to price-discriminate between different consumer types. We analyze price dispersion in the airline industry to assess how price discrimination can expose airlines to aggregate-demand fluctuations. Performing a panel analysis on seventeen years of data covering two business cycles, we find that price dispersion is highly procyclical. Estimates s...

  11. Price convergence in the enlarged internal market

    OpenAIRE

    Dreger, Christian; Kholodilin, Konstantin; Lommatzsch, Kirsten; Slacalek, Jirka; Wozniak, Przemyslaw

    2007-01-01

    In this paper we investigate the effects of EU enlargement on price convergence. The internal market is expected to boost integration and increase efficiency and welfare through a convergence of prices in product markets. Two principal drivers are crucial to explain price developments. On the one hand, higher competition exerts a downward pressure on prices because of lower mark ups. On the other hand, the catching up process of low income countries leads to a rise in the price levels and hig...

  12. A Simple Model of Pharmaceutical Price Dynamics

    OpenAIRE

    Bhattacharya, Jayanta; Vogt, William B.

    2003-01-01

    Branded pharmaceutical firms use price and promotional strategy to manage public knowledge about their drugs. We propose a dynamic theory of pharmaceutical pricing and conduct an exploratory empirical analysis inspired by the theory. Our theory predicts a pattern of increasing prices and decreasing promotional activities over a drug's life cycle. Prices are kept low and advertising levels high early in the life cycle in order to build public knowledge about the drug. As knowledge grows, price...

  13. Consumer price sensitivity in health insurance

    OpenAIRE

    Machiel van Dijk; Marc Pomp; Rudy Douven

    2006-01-01

    This CPB Discussion Paper presents new estimates for the price elasticity of the residual demand for health insurance. This elasticity measures the loss in market share of a health insurer as a consequence of a unilateral increase in price, assuming other firms keep their prices constant. The main findings are as follows: the price elasticity of residual demand for social health insurance by enrollees was very low during the period 1996-2002. We find small but significant effects of the price...

  14. Oil price shocks and stock market activity

    International Nuclear Information System (INIS)

    Results from a vector autoregression show that oil prices and oil price volatility both play important roles in affecting real stock returns. There is evidence that oil price dynamics have changed. After 1986, oil price movements explain a larger fraction of the forecast error variance in real stock returns than do interest rates. There is also evidence that oil price volatility shocks have asymmetric effects on the economy. 29 refs

  15. Understanding International Price Differences Using Barcode Data

    OpenAIRE

    Christian Broda; David E. Weinstein

    2008-01-01

    The empirical literature in international finance has produced three key results about international price deviations: borders give rise to flagrant violations of the law of one price, distance matters enormously for understanding these deviations, and most papers find that convergence rates back to purchasing power parity are inconsistent with the evidence of micro studies on nominal price stickiness. The data underlying these results are mostly comprised of price indexes and price surveys o...

  16. Export channel pricing management for integrated solutions

    OpenAIRE

    Roine, Henna; Sainio, Liisa-Maija; Saarenketo, Sami

    2012-01-01

    This article studies systems integrators' export channel pricing management for integrated solutions. We find support from our empirical case study for the notion that a systems integrator's export channel pricing strategy is multidimensional and dependent on international pricing environment and partner characteristics and that export partnerships have unique implications on a systems integrator's pricing process. The results show that giving up pricing control in export channel context may ...

  17. PRICING STRATEGY IN THE INDONESIAN CONSTRUCTION INDUSTRY

    OpenAIRE

    Krishna Mochtar

    2002-01-01

    Issues related to pricing strategy in the Indonesian construction industry are covered%2C including problems of current pricing strategy in construction%2C exploration of pricing strategies with a market-based approach%2C and survey findings of the top Indonesian contractors regarding their current pricing practices and the applicability of market-based pricing strategy models developed by Mochtar and Arditi. Comparisons with similar survey findings of the top U.S. contractors are conducted w...

  18. Note—Competitive Price and Positioning Strategies

    OpenAIRE

    John R. Hauser

    1988-01-01

    Brand positioning and brand pricing are important strategic decisions for marketing managers. Such decisions are interrelated and depend upon competitive brand positions and prices. However, any unilateral decisions may encourage repositioning and price adjustment by competitors thus leading to either new market equilibria or a price/positioning “war.” This paper examines such price and positioning decisions in a competitive environment by extending the ‘Defender' consumer model to more compl...

  19. Optimality of profit-including prices under ideal planning.

    Science.gov (United States)

    Samuelson, P A

    1973-07-01

    Although prices calculated by a constant percentage markup on all costs (nonlabor as well as direct-labor) are usually admitted to be more realistic for a competitive capitalistic model, the view is often expressed that, for optimal planning purposes, the "values" model of Marx's Capital, Volume I, is to be preferred. It is shown here that an optimal-control model that maximizes discounted social utility of consumption per capita and that ultimately approaches a steady state must ultimately have optimal pricing that involves equal rates of steady-state profit in all industries; and such optimal pricing will necessarily deviate from Marx's model of equal rates of surplus value (markups on direct-labor only) in all industries. PMID:16592102

  20. Reversing oil prices and valuation of oil projects

    International Nuclear Information System (INIS)

    The report deals with the valuation of offshore development projects as a result of reduced oil prices. The development and operation of an oil field or natural gas field call for an heavy investment, and the oil price fluctuation and currency problems involve uncertainty on the amount of future income from such a project. As a basis for the decision process of investment, a well-designed analyzing model for considering the affecting factors in a project valuation is of great importance. The main topics discussed are as follow: Valuation of petroleum projects; premises of the bargain price development; owner advantage and valuation of determined requirements; a model for calculating the value of a petroleum project. 35 refs., 10 figs

  1. Irrigation water demand: A meta-analysis of price elasticities

    Science.gov (United States)

    Scheierling, Susanne M.; Loomis, John B.; Young, Robert A.

    2006-01-01

    Metaregression models are estimated to investigate sources of variation in empirical estimates of the price elasticity of irrigation water demand. Elasticity estimates are drawn from 24 studies reported in the United States since 1963, including mathematical programming, field experiments, and econometric studies. The mean price elasticity is 0.48. Long-run elasticities, those that are most useful for policy purposes, are likely larger than the mean estimate. Empirical results suggest that estimates may be more elastic if they are derived from mathematical programming or econometric studies and calculated at a higher irrigation water price. Less elastic estimates are found to be derived from models based on field experiments and in the presence of high-valued crops.

  2. Price and consumption of tobacco

    Directory of Open Access Journals (Sweden)

    Virendra Singh

    2012-01-01

    Full Text Available Background: It is thought that price increase in tobacco products leads to reduced consumption. Though many studies have substantiated this concept, it has not been well studied in India. Recently, price of tobacco products was increased due to ban on plastic sachets of chewing tobacco and increased tax in Rajasthan. This study was designed to evaluate the effect of price rise on overall consumption of tobacco in Jaipur city, Rajasthan. Materials and Methods: This study was carried out in Jaipur city. Two-staged stratified sampling was used. In the first phase of study, cost and consumption of various tobacco products in the months of February and April were enquired from 25 retail tobacco shops. In the second phase, tobacco consumption was enquired from 20 consecutive consumers purchasing any tobacco product from all the above retail tobacco shops. The data were statistically analyzed using descriptive statistics and paired "t" test. Results: The comparison of prices of tobacco products between February and April revealed that the price of cigarette, bidi, and chewing tobacco has increased by 19%, 21%, and 68%, respectively. Average decrease in sales of cigarettes, bidi, and chewing tobacco at shops included in the study were 14%, 23%, and 38%, respectively. The consumers purchasing tobacco also reported decreased consumption. Chewing tobacco showed the maximum reduction (21%. Consumption of cigarette and bidi has also reduced by 15% and 13%, respectively. Conclusion: It may be concluded that reduction in consumption is associated with increased price of tobacco products. Reduced consumption is comparative to the magnitude of price increase.

  3. Three essays on access pricing

    Science.gov (United States)

    Sydee, Ahmed Nasim

    In the first essay, a theoretical model is developed to determine the time path of optimal access price in the telecommunications industry. Determining the optimal access price is an important issue in the economics of telecommunications. Setting a high access price discourages potential entrants; a low access price, on the other hand, amounts to confiscation of private property because the infrastructure already built by the incumbent is sunk. Furthermore, a low access price does not give the incumbent incentives to maintain the current network and to invest in new infrastructures. Much of the existing literature on access pricing suffers either from the limitations of a static framework or from the assumption that all costs are avoidable. The telecommunications industry is subject to high stranded costs and, therefore, to address this issue a dynamic model is imperative. This essay presents a dynamic model of one-way access pricing in which the compensation involved in deregulatory taking is formalized and then analyzed. The short run adjustment after deregulatory taking has occurred is carried out and discussed. The long run equilibrium is also analyzed. A time path for the Ramsey price is shown as the correct dynamic price of access. In the second essay, a theoretical model is developed to determine the time path of optimal access price for an infrastructure that is characterized by congestion and lumpy investment. Much of the theoretical literature on access pricing of infrastructure prescribes that the access price be set at the marginal cost of the infrastructure. In proposing this rule of access pricing, the conventional analysis assumes that infrastructure investments are infinitely divisible so that it makes sense to talk about the marginal cost of investment. Often it is the case that investments in infrastructure are lumpy and can only be made in large chunks, and this renders the marginal cost concept meaningless. In this essay, we formalize a model of

  4. Economics of National Waste Terminal Storage Spent Fuel Pricing Study

    Energy Technology Data Exchange (ETDEWEB)

    1978-05-01

    The methodology for equitably pricing commercial nuclear spent fuel management is developed, and the results of four sample calculations are presented. The spent fuel management program analyzed places encapsulated spent fuel in bedded salt while maintaining long-term retrievability. System design was reasonable but not optimum. When required, privately-owned Away From Reactor (AFR) storage is provided and the spent fuel placed in AFR storage is eventually transported to final storage. Applicable Research and Development and Government Overhead are included. The cost of each component by year was estimated from the most recent applicable data source available. These costs were input to the pricing methodology to establish a one-time charge whose present value exactly recovered the present value of the expenditure flow. The four cases exercised were combinations of a high and a low quantity of spent fuel managed, with a single repository (venture) or a multiple repository (campaign) approach to system financial structure. The price for spent fuel management calculated ranged from 116 to 152 dollars (1978) per kilogram charged initially to the reactor. The effect of spent fuel receiving rate on price is illustrated by the fact that the extremes of price did not coincide with the cases having the extremes of undiscounted cost. These prices for spent fuel management are comparable in magnitude to other fuel cycle costs. The range of variation is small because of compensating effects, i.e., additional costs for high early deliveries (AFR and transportation) versus lower present value of future revenue for later delivery cases. The methodology contains numerous conservative assumptions, provisions for contingencies, and covers the complete set of spent fuel management expenses.

  5. Economics of National Waste Terminal Storage Spent Fuel Pricing Study

    International Nuclear Information System (INIS)

    The methodology for equitably pricing commercial nuclear spent fuel management is developed, and the results of four sample calculations are presented. The spent fuel management program analyzed places encapsulated spent fuel in bedded salt while maintaining long-term retrievability. System design was reasonable but not optimum. When required, privately-owned Away From Reactor (AFR) storage is provided and the spent fuel placed in AFR storage is eventually transported to final storage. Applicable Research and Development and Government Overhead are included. The cost of each component by year was estimated from the most recent applicable data source available. These costs were input to the pricing methodology to establish a one-time charge whose present value exactly recovered the present value of the expenditure flow. The four cases exercised were combinations of a high and a low quantity of spent fuel managed, with a single repository (venture) or a multiple repository (campaign) approach to system financial structure. The price for spent fuel management calculated ranged from 116 to 152 dollars (1978) per kilogram charged initially to the reactor. The effect of spent fuel receiving rate on price is illustrated by the fact that the extremes of price did not coincide with the cases having the extremes of undiscounted cost. These prices for spent fuel management are comparable in magnitude to other fuel cycle costs. The range of variation is small because of compensating effects, i.e., additional costs for high early deliveries (AFR and transportation) versus lower present value of future revenue for later delivery cases. The methodology contains numerous conservative assumptions, provisions for contingencies, and covers the complete set of spent fuel management expenses

  6. The Optimal Price Policy of Congener Software Product

    Institute of Scientific and Technical Information of China (English)

    2001-01-01

    From the viewpoint of market behavior to a certain softwaredevelopment company, it's very important to decide the suitable price to deploy its product. Especially face to the opponents who sale the congener product in the current market. According to the requirement of market economy and software engineering , accurate estimation of software price and its amount of sales are useful to a certain software provider to build a proper development project and software pro ducts' target parameters. Here we analysis the factors which affect the price of the congener software product in the same market, and calculate the weight of t hese factors to it's price on the current market. With the help of principles of the non-cooperative games, we built a model base on AHP methods. Use this model , we can get the optimal price to release our software product and the biggest turnover. At the end of this paper, we use a numerical example to explain how to use our model

  7. Price Analysis of Used Tractors in Çanakkale Province

    Directory of Open Access Journals (Sweden)

    S. Ozpinar

    2008-09-01

    Full Text Available The control of machinery costs is a key factor in improving the profitability of a farm. On many farms 30-40% of the fixed costs can be allocated to farm machinery. For this reason, the purchase of a tractor is one of the most important decisions to be made on any farm. A correct decision will benefit the business considerably but the wrong decision will be an expensive mistake to be regretted for many years. There are two different way to purchase the tractors in any farm. One of them is purchasing the tractor as new one, the other one is purchasing the he tractors as used or second hand. are purchased as new in some farms instead of purchasing he tractor as second hand or used.The used tractor prices and market conditions should be evaluated for the correct agricultural machinery management decisions. Price analysis of the used tractors has to be used in hiring or purchasing decision. In addition to that, Optimum equipment size calculations require the price data of used tractors.In the scope of this research, second hand tractor price data gathered from the showrooms in the Çanakkale province were evaluated. Before all else, general structure of second hand tractor market were defined by applying a comprehensive questionnaire to showroom owners. In addition, second hand tractor prices were arranged according to brand-model, age and power category.

  8. Capture market share, raise prices

    Directory of Open Access Journals (Sweden)

    Robbins RA

    2015-08-01

    Full Text Available No abstract available. Article truncated after 150 words. Two principles in medical economics central to the Affordable Care Act (ACA were dealt blows by recently published studies. The first principle is the belief that economies of scale will result in lower prices. The theory is that larger insurers will have lower prices because they are more administratively efficient. The second principle is that provider-owned health plans, usually hospitals, will reduce premiums. The theory is that by controlling doctors over charging health plans in a fee-for-service model will lower prices. The first study published in Technology Science found that the largest insurer in each of the states served by HealthCare.gov raised their prices in 2015 by an average of over 10 per cent compared to smaller competitors in the same market (1. Those steeper price hikes for monthly premiums did not seem warranted by the level of health claims which did not significantly differ as a percentage of premiums ...

  9. Rising prices squeeze gas marketer

    International Nuclear Information System (INIS)

    Apollo Gas, a Toronto-based gas marketer, is considering options to enhance unit holder value, including sale of its 21,000 gas supply contracts, just weeks after it was forced out of the Alberta market by rising gas prices. Although the company had reported first quarter revenues of more than $15 million and earnings through that period of about $2.1 million, increases of 33 per cent and 38 per cent respectively over the same period in 1999, the company is resigned to the fact that such performance markers are not likely to be reached again in the foreseeable future, hence the decision to sell. About 95 per cent of Apollo's current transportation service volumes are matched to existing fixed-price supply contract which are due to expire in November 2000. After that, it is about 75 per cent matched for the balance of the term of its customer contracts (mostly five years). This means that the company is exposed to market prices that are likely to continue to increase. If this prediction holds true, Apollo would be forced to purchase the unhedged volumes of gas it needs to service its customers in the spot market at prices higher than prices the company is charging to its customers

  10. Response of the Polish Wheat Prices to the Worlds Crude Oil Prices

    Directory of Open Access Journals (Sweden)

    HAMULCZUK

    2012-07-01

    Full Text Available Agricultural commodities prices play crucial role both in farmers income determination and in price relationship establishment for the whole economy. Among the factors influencing the wheat prices, crude oil prices are considered as one of the most important. The aim of this paper was to assess the character of linkage between world crude oil prices and Polish wheat prices. Results of the research confirm the existence of such linkage although the nature and the strength of this relationship changes over time. However, the long-run relationships between the crude oil and Polish wheat prices were not proven. Moreover, growing impact of crude oil prices on Polish wheat prices over time was not detected. The results suggest that exchange rates may strongly influence wheat prices. This in turn may weaken response of Polish wheat prices in relation to world crude oil prices.

  11. Studying the Effects of Negative and Positive Perceptions of Price on Price Mavenism

    Directory of Open Access Journals (Sweden)

    Hossein Vazifedoost

    2013-04-01

    Full Text Available Despite the importance of price mavens, little empirical research exists on understanding its theoretical and marketing drivers; especially in different cultural contexts Buyers in Iran often communicate positive and negative purchasing experiences through Word-of-Mouth (WOM, which creates special problems and opportunities for marketers. Price mavenism, which is associated with price-information searching and price-sharing behavior, is often considered as negative dimension of price. The purpose of this study, however, is to propose price mavenism as an outcome variable arising from both positive perceptions of price (prestige sensitivity and negative perceptions (price and value consciousness. For this purpose structured questionnaire was developed to collect data and totaling 206 questionnaires of Iranian consumers were analyzed. The conceptual model was tested using structural equation modeling. This study found that prestige sensitivity, price consciousness and value consciousness shaped price mavenism among the Iranians, supporting the idea that price mavenism arises from both positive and negative perceptions of price.

  12. Irrigation Water Pricing in Iran: The Gap between Theory and Practice

    Directory of Open Access Journals (Sweden)

    Morteza Tahamipour

    2015-06-01

    Full Text Available Pricing policies play an important role in water demand management and its optimal allocation. Determining proper water price leads to optimal allocation of water especially in agricultural consumptions. Applying new subsidy targeting law in Iran which insists on pricing water based on its supply cost, will effects considerably on water resource management in agriculture sector. So, in this study, different Irrigation water pricing methods is investigated and proper irrigation water price is determined using survey data for 2010-2011 farming year in Golestan Province of Iran. At the first step using econometric approach, economic value of irrigation water in different agriculture crops is determined that shows demand side price for water. Then, supply cost of surface and ground water is calculated using accounting approach which shows supply side price for irrigation water. Finally, economic value and supply cost of irrigation water compared and different water pricing methods is evaluated. Results indicated that, weighted average of economic value and supply costs of irrigation water in Golestan province were 1795 and 1399 IRR per cubic meter, respectively. So, improvement of water demand and supply management could be achieved using price policies.

  13. Light Pipe Energy Savings Calculator

    Science.gov (United States)

    Owens, Erin; Behringer, Ernest R.

    2009-04-01

    Dependence on fossil fuels is unsustainable and therefore a shift to renewable energy sources such as sunlight is required. Light pipes provide a way to utilize sunlight for interior lighting, and can reduce the need for fossil fuel-generated electrical energy. Because consumers considering light pipe installation may be more strongly motivated by cost considerations than by sustainability arguments, an easy means to examine the corresponding costs and benefits is needed to facilitate informed decision-making. The purpose of this American Physical Society Physics and Society Fellowship project is to create a Web-based calculator to allow users to quantify the possible cost savings for their specific light pipe application. Initial calculations show that the illumination provided by light pipes can replace electric light use during the day, and in many cases can supply greater illumination levels than those typically given by electric lighting. While the installation cost of a light pipe is significantly greater than the avoided cost of electricity over the lifetime of the light pipe at current prices, savings may be realized if electricity prices increase.

  14. Biofuel and Food-Commodity Prices

    Directory of Open Access Journals (Sweden)

    David Zilberman

    2012-09-01

    Full Text Available The paper summarizes key findings of alternative lines of research on the relationship between food and fuel markets, and identifies gaps between two bodies of literature: one that investigates the relationship between food and fuel prices, and another that investigates the impact of the introduction of biofuels on commodity-food prices. The former body of literature suggests that biofuel prices do not affect food-commodity prices, but the latter suggests it does. We try to explain this gap, and then show that although biofuel was an important contributor to the recent food-price inflation of 2001–2008, its effect on food-commodity prices declined after the recession of 2008/09. We also show that the introduction of cross-price elasticity is important when explaining soybean price, but less so when explaining corn prices.

  15. Price adjustments by a gasoline retail chain

    International Nuclear Information System (INIS)

    We use daily data to examine price responses in the Swedish gasoline market to changes in the Rotterdam spot price, exchange rates and taxes. The distribution of price adjustments by a leading retail chain, for the period January 1980 to December 1996, is symmetric with no small adjustments. An error correction model shows that, in the short run, prices gradually move towards the long-run equilibrium in response to cost shocks. There is some evidence that, also in the short run, prices are stickier downwards than upwards. Prices respond more rapidly to exchange rate movements than to the spot market price. Our analysis emphasizes that to fully understand price adjustments it is necessary to examine data sets where the sample frequency at least matches that of price adjustments

  16. Price Sensitivity of Demand for Prescription Drugs

    DEFF Research Database (Denmark)

    Simonsen, Marianne; Skipper, Lars; Skipper, Niels

    2016-01-01

    We investigate price sensitivity of demand for prescription drugs, using drug purchase records for the entire Danish population. We identify price responsiveness by exploiting variation in prices caused by kinked reimbursement schemes and implement a regression kink design. The results suggest so...... price responsiveness with corresponding price elasticities ranging from −0.2 to −0.7. Individuals with chronic disease and especially individuals above the age of 65 respond less to the price of drugs.......We investigate price sensitivity of demand for prescription drugs, using drug purchase records for the entire Danish population. We identify price responsiveness by exploiting variation in prices caused by kinked reimbursement schemes and implement a regression kink design. The results suggest some...

  17. CLOUD COMPUTING AND ITS PRICING SCHEMES

    Directory of Open Access Journals (Sweden)

    Varun Kamra

    2012-04-01

    Full Text Available Cloud computing is a rapidly emerging technology which involves deployment of various services like software, web services and virtualized infrastructure, as a product on public, private or hybrid clouds on lease basis. These services are charged by the respective pricing scheme for the cloud. The price varies with the number and type of data structures used for query execution. In this paper we describe static and dynamic pricing schemes for cloud cache. In static pricing scheme the prices are fixed for different resources which remain constant with time. Static pricing scheme does not benefit the service provider because it does not reflect the current market value. The dynamic pricing scheme can adapt as the time changes. According to the demand of a resource the pricing is done in dynamic pricing scheme so as to maximize the profit of the service provider. In addition to this, our paper explains characteristics and the delivery models for cloud computing in short.

  18. Reference Pricing Versus Co-Payment in the Pharmaceutical Industry: Firm's Pricing Strategies

    OpenAIRE

    Marisa Miraldo

    2007-01-01

    Within a horizontally differentiation model and allowing for heterogeneous qualities, we analyze the effects of reference pricing reimbursement on firms’ pricing strategies. With this analysis we find inherent incentives for firms’ pricing behaviour, and consequently we shed some light on time consistency of such policy. The analysis encompasses different reference price rules. Results show that if drugs have equal quality, reference pricing may lead to higher prices. With quality differentia...

  19. Preferential Cattle and Hog Pricing by Packers: Evidence from Mandatory Price Reports

    OpenAIRE

    Ward, Clement E.

    2008-01-01

    Preferential pricing was one of several concerns leading to mandatory price reporting. Seven years of “new” data from mandatory reports are examined to determine if evidence exists of preferential pricing by packers for fed cattle and slaughter hogs. Weekly data show some alternative marketing methods track closer to cash market prices than others. Some differences can be explained, while others are not as clear. Evidence was found that cash prices lead prices for alternative marketing method...

  20. Lead Lag Relationships Between Resource Prices and Corresponding Resource Company Share Prices

    OpenAIRE

    Stevenson, Alan; Boyd, Milton S.

    2001-01-01

    The purpose of this study is to examine the lead lag relationships between resource prices and corresponding resource company share prices. It is hypothesized that as a resource price changes, the share price should also change for a corresponding company producing the resource. However, price changes and price transmission between the two markets may have lag periods. Lags may occur due to factors such as transaction costs, taxes, information arriving in large doses, market imperfections, an...

  1. Evaluating Transmission Prices between Global Agricultural Markets and Consumers' Food Price Indices in the EU

    OpenAIRE

    Garcia-German, Sol; Garrido, Alberto; Bardaji, Isabel

    2014-01-01

    The rise of price levels and volatility of world agricultural commodities since 2006-2008 was followed by increased and more volatile food price inflation around the world. Using error correction models, this paper evaluates the velocity and extent to which world agricultural commodity price movements affect consumer food prices in the 28 EU's Member States. Results show a significant long run relationship between world agricultural commodity prices and food consumer prices in over half of th...

  2. Dynamic pricing and customers' perceptions of price fairness in the airline industry

    OpenAIRE

    Škare, Vatroslav; Gospić, Dino

    2015-01-01

    The application of the Internet and other digital technologies has had a considerable influence on all elements of the marketing mix, including pricing. This is especially important in the context of service industries, such as hotels and airline companies, where digital technologies dramatically altered pricing policies. This process is dominated by dynamic pricing – a pricing discrimination technique which leverages real-time pricing and individualizes prices. Customers are aware that compa...

  3. Does the price of oil interact with clean energy prices in the stock market?

    OpenAIRE

    Managi, Shunsuke; OKIMOTO, Tatsuyoshi

    2013-01-01

    In this paper, we analyze the relationships among oil prices, clean energy stock prices, and technology stock prices, endogenously controlling for structural changes in the market. To this end, we apply Markov-switching vector autoregressive models to the economic system consisting of oil prices, clean energy and technology stock prices, and interest rates. The results indicate that there was a structural change in late 2007, a period in which there was a significant increase in the price of ...

  4. Fire Sales and House Prices

    DEFF Research Database (Denmark)

    Andersen, Steffen; Meisner Nielsen, Kasper

    We exploit a natural experiment in Denmark to investigate when forced sales lead to fire sale discounts. Forced sales result from sudden deaths of house owners in an institutional environment in which beneficiaries are forced to settle the estate, and hence sell the house, within 12 months. We...... identify 6,329 forced sales by suddenly deceased house owners, and find that forced sales bring in lower prices than do comparable houses as the deadline winds down: We find no discounts for sales long before the deadline, and discounts of 12.5% for sales shortly before the deadline. Market conditions...... and the urgency of the sale also affect the average discount: Discounts are larger when house prices contract, in thin markets where demand is lower, and when the sale is more likely to be a fire sale because of financial or liquidity constraints. Late fire sales are more likely when the house price...

  5. Crude prices - is OPEC relevant?

    International Nuclear Information System (INIS)

    Oil-exporting nations are in deep trouble. A global recession is suppressing consumption growth and frustrating exporter attempts to boost prices. Future prospects for oil exporters appear even bleaker. New production from several satellites of the former Soviet Union (FSU) will reach the market within a few years, limiting the increase in OPEC scales, and the FSU's incremental output will be augmented by much larger exports from Iraq. An oil price surge resulting from turmoil in Nigeria will, ironically, only serve to emphasize OPEC's loss of influence. When a cartel-like organization breaks down, the result is usually lower and more volatile prices, and so political or physical production disruptions have a greater impact on volumes supplied. In the future, these disruptions will occur more often because of the worsening financial situation in exporting countries. (author)

  6. Future of option pricing: use of log logistic distribution instead of log normal distribution in Black Scholes model

    OpenAIRE

    Raja, Ammar

    2009-01-01

    Options are historically being priced using Black Scholes option pricing model and one of the prominent features of it is normal distribution. In this research paper I will calculate European call options using log logistic distribution instead of normal distribution. My argument is that a model with logistic distribution reflects better fit of option prices as compared to normal distribution. In this research paper I have used historic data on stocks, value European call options using both ...

  7. Prediction of future asset prices

    Science.gov (United States)

    Seong, Ng Yew; Hin, Pooi Ah; Ching, Soo Huei

    2014-12-01

    This paper attempts to incorporate trading volumes as an additional predictor for predicting asset prices. Denoting r(t) as the vector consisting of the time-t values of the trading volume and price of a given asset, we model the time-(t+1) asset price to be dependent on the present and l-1 past values r(t), r(t-1), ....., r(t-1+1) via a conditional distribution which is derived from a (2l+1)-dimensional power-normal distribution. A prediction interval based on the 100(α/2)% and 100(1-α/2)% points of the conditional distribution is then obtained. By examining the average lengths of the prediction intervals found by using the composite indices of the Malaysia stock market for the period 2008 to 2013, we found that the value 2 appears to be a good choice for l. With the omission of the trading volume in the vector r(t), the corresponding prediction interval exhibits a slightly longer average length, showing that it might be desirable to keep trading volume as a predictor. From the above conditional distribution, the probability that the time-(t+1) asset price will be larger than the time-t asset price is next computed. When the probability differs from 0 (or 1) by less than 0.03, the observed time-(t+1) increase in price tends to be negative (or positive). Thus the above probability has a good potential of being used as a market indicator in technical analysis.

  8. Uranium price formation. Final report

    International Nuclear Information System (INIS)

    The modern uranium industry came into existence in 1946. Until 1966, its sole customer was the Atomic Energy Commission, whose needs for U3O8 relative to industry capacity declined over the years. The development of the commercial market after 1965 coincided with a period of excess capacity and falling nominal and real prices. Gradually in 1973 and dramatically thereafter, market conditions changed and prices rose as utilities sought larger quantities of U3O8 and longer term contracts. Questions about availability of long-run supplies were raised, given the known reserve base. The response of the supply of U3O8 to incentives offered first by the AEC and later by the utilities in the context of new and developing market conventions is examined. The methodology used is microeconomic analysis, qualitatively applied to the history of price formation in the market. Because the study emphasizes the implications of the history of uranium price formation for forecasting supply response, the study presents many different kinds of data and evaluates their quality and appropriateness for forecasting. A simple, very-useful framework for analyzing the history of the market for U3O8 was developed and used to describe supply responses in selected important periods of the industry's development. It is concluded that the response of supply of U3O8 to rising prices or to expectations of demand growth has been impressively strong. The potential reserve inventory is large enough to meet the needs for nuclear power generation through the end of this century. The price necessary to induce producers to find and produce these reserves is uncertain, partly because of problems inherent in estimating long-run supply curves and partly because recent inflation has created major uncertainties about the cost of future supplies

  9. THE PRINCIPIUM OF PRICE SYSTEM

    OpenAIRE

    Xiaozhong Zhai

    2005-01-01

    This book focuses on general theory of price. Price, wage, interest rate, GNP and exchange rate, five factors, are very important not only in economics and economical activity, but also in social and political life. Those five factors are concrete, but also abstract. They belong to different concepts, but dependent on each other. If each of them changes, the other must make corre-sponding adjustment. In order to recognize the inner link between them and their in-fluence on social and politica...

  10. Induced Innovation and Energy Prices

    OpenAIRE

    David Popp

    2001-01-01

    I use U.S. patent data from 1970 to 1994 to estimate the effect of energy prices on energy-efficient innovations. Using patent citations to construct a measure of the usefulness of the existing base of scientific knowledge, I consider the effect of both demand-side factors, which spur innovative activity by increasing the value of new innovations, and supply-side factors, such as scientific advancements that make new innovations possible. I find that both energy prices and the quality of exis...

  11. Derivatives Pricing in Incomplete Markets

    OpenAIRE

    Lappo, P.; Zuev, N.

    2010-01-01

    In the paper the one-period (B, S) - market model with two securities is considered. In the introduction a replicating portfolio for the derivative security is obtained when the securities are primitive. In the second part we consider the situation where the stock price could have more than two values. We build an approximation of such a market using a fictive (B, S*) - market where the stock price could take only two values. In the third part the numerical illustration of the approximation i...

  12. Saving-Based Asset Pricing

    DEFF Research Database (Denmark)

    Dreyer, Johannes Kabderian; Schneider, Johannes; T. Smith, William

    2013-01-01

    This paper explores the implications of a novel class of preferences for the behavior of asset prices. Following a suggestion by Marshall (1920), we entertain the possibility that people derive utility not only from consumption, but also from the very act of saving. These ‘‘saving-based’’ prefere......This paper explores the implications of a novel class of preferences for the behavior of asset prices. Following a suggestion by Marshall (1920), we entertain the possibility that people derive utility not only from consumption, but also from the very act of saving. These ‘‘saving...

  13. Styring af international transfer pricing

    DEFF Research Database (Denmark)

    Reuther, Peter; Rossing, Christian Plesner

    2011-01-01

    Nærværende artikel introducerer international transfer pricing, dels som et skatteretligt fænomen og dels som et værktøj til planlægning og økonomisk styring af koncernforbundne selskaber i en multinational virksomhed (MNV). Med udgangspunkt i en case-analyse af MNV’en gives der et konkret eksempel...... international transfer pricing i betragtning, når økonomiske styringssystemer i en MNV skal anvendes til planlægning og opfølgning....

  14. Price hedonics: a critical review

    OpenAIRE

    Charles R. Hulten

    2003-01-01

    This paper was presented at the conference "Economic Statistics: New Needs for the Twenty-First Century," cosponsored by the Federal Reserve Bank of New York, the Conference on Research in Income and Wealth, and the National Association for Business Economics, July 11, 2002. The main objective of this paper is to make a start in the evaluation of price hedonics. The author describes the hedonic model and reviews its main uses, because the credibility of price hedonics depends in part on the c...

  15. Weighted Average Cost of Retail Gas (WACORG) highlights pricing effects in the US gas value chain: Do we need wellhead price-floor regulation to bail out the unconventional gas industry?

    Energy Technology Data Exchange (ETDEWEB)

    Weijermars, Ruud, E-mail: R.Weijermars@TUDelft.nl [Alboran Energy Strategy Consultants and Department of Geotechnology, Delft University of Technology (Netherlands)

    2011-10-15

    The total annual revenue stream in the US natural gas value chain over the past decade is analyzed. Growth of total revenues has been driven by higher wellhead prices, which peaked in 2008. The emergence of the unconventional gas business was made possible in part by the pre-recessional rise in global energy prices. The general rise in natural gas prices between 1998 and 2008 did not lower overall US gas consumption, but shifts have occurred during the past decade in the consumption levels of individual consumer groups. Industry's gas consumption has decreased, while power stations increased their gas consumption. Commercial and residential consumers maintained flat gas consumption patterns. This study introduces the Weighted Average Cost of Retail Gas (WACORG) as a tool to calculate and monitor an average retail price based on the different natural gas prices charged to the traditional consumer groups. The WACORG also provides insight in wellhead revenues and may be used as an instrument for calibrating retail prices in support of wellhead price-floor regulation. Such price-floor regulation is advocated here as a possible mitigation measure against excessive volatility in US wellhead gas prices to improve the security of gas supply. - Highlights: > This study introduces an average retail price, WACORG. > WACORG can monitor price differentials for the traditional US gas consumer groups. > WACORG also provides insight in US wellhead revenues. > WACORG can calibrate retail prices in support of wellhead price-floor regulation. > Gas price-floor can improve security of gas supply by reducing price volatility.

  16. Smart Pricing: Linking Pricing Decisions with Operational Insights

    NARCIS (Netherlands)

    M. Fleischmann (Moritz); J.M. Hall (Joseph); D.F. Pyke (David)

    2003-01-01

    textabstractThe past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, compa

  17. Application Service Program (ASP Price Elasticities

    Directory of Open Access Journals (Sweden)

    Hong Jaeweon

    2010-06-01

    Full Text Available Although the price elasticities for off-line industry are well documented in academic field, the report of price elasticities for on-line to a given brand or industry in practice have beenrelatively rare. The researcher aims to try to full this gap by applying a price response function to Home Trading System’s on-line transaction data for the first time in Korean securities market. The different price elasticities among seven brands were found from -0.819 to -1.811. These results suggested that marketers should understand the price elasticity of their own HTS, before making a price decision.

  18. Oil transformation sector modelling: price interactions

    International Nuclear Information System (INIS)

    A global oil and oil product prices evolution model is proposed that covers the transformation sector incidence and the final user price establishment together with price interactions between gaseous and liquid hydrocarbons. High disparities among oil product prices in the various consumer zones (North America, Western Europe, Japan) are well described and compared with the low differences between oil supply prices in these zones. Final user price fluctuations are shown to be induced by transformation differences and competition; natural gas market is also modelled

  19. General Equilibrium Pricing with Information Asymmetry

    Directory of Open Access Journals (Sweden)

    Yuzhong eZhang

    2015-08-01

    Full Text Available We propose a general equilibrium model for asset pricing that incorporates asymmetric information as the key element determining security prices. In our setting, the concepts of completeness, arbitrage, state price and equivalent martingale measure are extended to the case of asymmetric information. Our model shows that in a so-called quasi-complete market, the agents with differential information can reach an agreement on an universal equilibrium price. The corresponding state price and martingale measure are determined. The key intuition is that agents evaluate consumption choices conditioned on their private information and the public information generated by price. As a consequence, information asymmetry can lead to mispricing as well.

  20. Price Transmission in the German Sugar Market

    OpenAIRE

    Nolte, Stephan; Natanelov, Valeri; Buysse, Jeroen; Huylenbroeck, Guido Van

    2012-01-01

    The German sugar market is governed by the European Union’s common market organization (CMO). In 2006, the CMO was subject to its first major reform. Among others, the administered price for sugar was reduced by 36%. We use a data set with monthly prices for sugar and sugar containing products to perform a cointegration analysis. Results show that the reduction of the institutional price has led to a reduction of wholesale prices and of retail prices for table sugar. Prices for sugar containi...