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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. Calculating the Candy Price Index: A Classroom Inflation Experiment.

    Science.gov (United States)

    Hazlett, Denise; Hill, Cynthia D.

    2003-01-01

    Outlines how students develop a price index based on candy-purchasing decisions made by class members. Explains that students used the index to practice calculating inflation rates and to consider the strengths and weaknesses of the consumer price index (CPI). States that the exercise has been used in introductory and intermediate macroeconomics…

  6. 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…

  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. The Calculation of Weighted Price Elasticity of Tax: Turkey (1998-2013

    Directory of Open Access Journals (Sweden)

    Engin YILMAZ

    2015-06-01

    Full Text Available In this study, the assumption of “the weighted price elasticity of tax is a unit in the developing countries” suggested in the first studies which examine the impacts of the inflation on tax revenues, will be reevaluated for Turkey in the period of 1998-2013. We use Turkish tax and price index data for calculating the weighted price elasticity of tax. Via the method of dynamic ordinary least squares (DOLS, the long run weighted price elasticity of tax system is guessed. The importance of this study is the fact that this is first study intended to the calculation of the weighted price elasticity of tax for Turkey. In this sense, it will be instructive study for the reconsideration of the assumption of “the weighted price elasticity of tax is a unit in the developing countries”.

  11. 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.

  12. 7 CFR 5.4 - Commodities for which parity prices shall be calculated.

    Science.gov (United States)

    2010-01-01

    ... calculated. 5.4 Section 5.4 Agriculture Office of the Secretary of Agriculture DETERMINATION OF PARITY PRICES..., Ladino clover, lespedeza, orchard grass, red clover, timothy, and hairy vetch. sugar crops Sugar beets, and sugarcane for sugar. tree nuts Almonds; filberts; pecans, all; and walnuts. vegetables for...

  13. 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)

  14. 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.

  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. 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.

  17. 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.

  18. 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

  19. 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...

  20. 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...

  1. 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...

  2. 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)

  3. The price of pollution

    International Nuclear Information System (INIS)

    The market does not create a price for environmental pollution for the simple reason that there is no market for the environment. What can be done is to calculate shadow prices for environmental pollution, which is achieved by calculating the price that would arise if there would be a market for the environment. In applying this method, it generally proves to be necessary to base calculations on government environmental targets. Using available research data, the method is used to calculate shadow prices for a number of key pollutants. The present report is based on the CE studies 'Schaduwprijzen Prioriterings Methodiek (SPM)' (1997), commissioned by ICI Holland BV, and 'De prijs van Milieuvervuiling' (1997), commissioned by KNP BT Packaging

  4. 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.

  5. The Information Content of Prices in Derivative Security Markets

    OpenAIRE

    Louis O. Scott

    1992-01-01

    Prices in futures markets and option markets reflect expectations about future price movements in spot markets, but these prices can also be influenced by risk premia. Futures and forward prices are sometimes interpreted as market expectations for future spot prices, and option prices are used to calculate the market’s expectations for future volatility of spot prices. Do these prices accurately reflect market expectations? The purpose of this paper is to examine the information that is refle...

  6. Antimicrobial price variation: Conundrum of medical profession!

    Directory of Open Access Journals (Sweden)

    Rataboli P

    2007-01-01

    Full Text Available Pharmacoeconomics plays a pivotal role in clinical practice. High medicine prices can adversely affect a patient′s finances and compliance. The Indian pharmaceutical industry has become a cornucopia of medicines with wide variation in prices for the same medicine marketed under different brand names. Price list of available antimicrobial brands was procured from a commercial drug directory. Average price of widely prescribed oral antimicrobials was found and price variation between different brands was calculated. The variation in medicine prices was found to be from 95% lower to more than 350% higher than the average price. Implications of price variation in clinical practice are discussed and remedial measures suggested.

  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. 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...

  9. PRICE CATEGORIES AND PRICE STRUCTURE

    Directory of Open Access Journals (Sweden)

    VĂDUVA CECILIA ELENA

    2014-02-01

    Full Text Available Defining the pricing mechanism aims, primarily, the price system that works through the interconditionality with other systems of the national economy and, secondly, legalities of the formation process of prices which continuously act as a specific part within the whole social reproduction on prices. The multitude of phases of social reproduction, the diversification of national economy branches, the connections between the economic units, internal and external market, complex process of formation of the goods value, delineates existing prices as autonomous mechanism.

  10. Competitive Pricing

    OpenAIRE

    Antonio Villar

    2007-01-01

    Competitive pricing is a pricing rule that combines two principles that are present in competitive markets. The profit principle (an action will be chosen only if it yields maximal payoffs), and the scarcity principle (markets make expensive those commodities that restrict production possibilities). It is shown that, under standard assumptions, these principles imply profit maximization at given prices. But also that they can be applied to economies with non-convex production sets (e.g. firms...

  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...... the determination of transfer price will affect the size of the profit or loss in the organizational units and thus have an impact on the evaluation of managers‟ performance. In some instances the determination of transfer prices may lead to a disagreement between coordination of the organizational...

  12. Price points and price rigidity

    OpenAIRE

    Levy, Daniel; Lee, Dongwon; Chen, Haipeng (Allan); Kauffman, Robert,; Bergen, Mark

    2010-01-01

    We offer new evidence on the link between price points and price rigidity using two datasets. One is a large weekly transaction price dataset, covering 29 product categories over an eight-year period from a large U.S. supermarket chain. The other is from the Internet, and includes daily prices over a two-year period for 474 consumer electronic goods covering ten product categories, from 293 different Internet retailers. Across the two datasets, we find that (i) 9 is the most frequently used p...

  13. 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…

  14. 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)

  15. 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

  16. 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.

  17. 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.

  18. 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)

  19. 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...

  20. 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.

  1. 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.

  2. The price of environmental pollution

    International Nuclear Information System (INIS)

    There is no market price for environmental pollution, simply because of the fact that there is not a market for the environment. However, it is possible to calculate so-called shadow prices for environmental pollution. The calculation method can be summarized as follows: determine the price that exist when there would be a market for the environment. In many cases the calculation must be based on environmental targets as determined by the government. Based on that method and on available data and information, shadow prices are estimated for 18 different pollutants: CO2, CO, CH4, SO2, NH3, NOx, volatile organic materials, final wastes, phosphates, nitrates, COD, fine dust, toluene, benzene, benzopyrene (to air and water), zinc (to water), and copper (to water). 7 figs., 5 tabs., 43 refs

  3. 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)

  4. Pricing offshore wind power

    International Nuclear Information System (INIS)

    Offshore wind offers a very large clean power resource, but electricity from the first US offshore wind contracts is costlier than current regional wholesale electricity prices. To better understand the factors that drive these costs, we develop a pro-forma cash flow model to calculate two results: the levelized cost of energy, and the breakeven price required for financial viability. We then determine input values based on our analysis of capital markets and of 35 operating and planned projects in Europe, China, and the United States. The model is run for a range of inputs appropriate to US policies, electricity markets, and capital markets to assess how changes in policy incentives, project inputs, and financial structure affect the breakeven price of offshore wind power. The model and documentation are made publicly available. - Highlights: → We calculate the Breakeven Price (BP) required to deploy offshore wind plants. → We determine values for cost drivers and review incentives structures in the US. → We develop 3 scenarios using today's technology but varying in industry experience. → BP differs widely by Cost Scenario; relative policy effectiveness varies by stage. → The low-range BP is below regional market values in the Northeast United States.

  5. 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...

  6. Price Variation Antagonism and Firm Pricing Policies

    OpenAIRE

    Courty, Pascal; Pagliero, Mario

    2010-01-01

    Abstract Pricing schemes that vary prices in response to demand shocks may antagonize consumers and reduce demand. At the same time, consumers may take advantage of the opportunities offered by price changes. Overall, the net impact of varying price on demand is ambiguous. We investigate this issue empirically, exploiting a unique dataset from a firm that has experimented with different pricing schemes. Each scheme is characterized by how much prices respond to fluctuations in dema...

  7. Price Variation Antagonism and Firm Pricing Policies

    OpenAIRE

    Pascal Courty; Mario Pagliero

    2010-01-01

    Pricing schemes that vary prices in response to demand shocks may antagonize consumers and reduce demand. At the same time, consumers may take advantage of the opportunities offered by price changes. Overall, the net impact of varying price on demand is ambiguous. We investigate this issue empirically, exploiting a unique dataset from a firm that has experimented with different pricing schemes. Each scheme is characterized by how much prices respond to fluctuations in demand and generates dif...

  8. 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.

  9. 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

  10. 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...

  11. Energy prices and taxes

    International Nuclear Information System (INIS)

    Energy Prices and Taxes contains a major international compilation of energy prices at all market levels: import prices, industry prices and consumer prices. The statistics cover main petroleum products, gas, coal and electricity, giving for imported products an average price both for importing country and country of origin. Every issue includes full notes on sources and methods and a description of price mechanisms in each country

  12. Pricing and Trust

    OpenAIRE

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

    2007-01-01

    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...

  13. Price systems for markets with transaction costs and control problems for some finance problems

    OpenAIRE

    Tzuu-Shuh Chiang; Shang-Yuan Shiu; Shuenn-Jyi Sheu

    2006-01-01

    In a market with transaction costs, the price of a derivative can be expressed in terms of (preconsistent) price systems (after Kusuoka (1995)). In this paper, we consider a market with binomial model for stock price and discuss how to generate the price systems. From this, the price formula of a derivative can be reformulated as a stochastic control problem. Then the dynamic programming approach can be used to calculate the price. We also discuss optimization of expected utility using price ...

  14. 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.

  15. 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

  16. 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...

  17. Signalling Strength: Limit Pricing and Predatory Pricing

    OpenAIRE

    Greg LeBlanc

    1992-01-01

    This article merges two areas of strategic pricing theory. A dynamic signalling game with two-sided uncertainty is presented in which an incumbent is confronted with potential entry and chooses between limit pricing and predatory pricing as a means of achieving or maintaining monopoly profit. Initial distributions across player types are pivotal to this decision. Results show that when the incumbent is likely to be strong relative to the entrant, predatory pricing is chosen. When the incumben...

  18. 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...

  19. 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.

  20. 10 CFR Appendix II to Part 504 - Fuel Price Computation

    Science.gov (United States)

    2010-01-01

    ... provide the procedure to: (1) Calculate fuel price and inflation indices; (2) account for projected real... example fuel price and inflation indices based on the latest data appearing in the Energy Information Administration's (EIA) Annual Energy Outlook (AEO). The fuel price and inflation indices will change yearly...

  1. 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

  2. Price level targeting

    OpenAIRE

    Shukayev, Malik; Ueberfeldt, Alexander

    2010-01-01

    Various papers have suggested that Price-Level targeting is a welfare improving policy relative to Inflation targeting. From a practical standpoint, this raises an important yet unanswered question: What is the optimal price index to target? This paper derives the optimal price level targeting index defined over the eight main components of the Consumer Price Index. It finds that such an index places a heavier weight, relative to the expenditure weight, on sectors with slow price adjustments....

  3. 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.

  4. 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.

  5. Road pricing: An overview

    OpenAIRE

    M. Rouhani, Omid

    2014-01-01

    This paper offers a general overview of the road pricing concept. It first examines the common objectives used in road pricing, namely (a) congestion reduction; (b) raising profits; (c) social welfare maximization; etc. Then, it explores various types of road pricing, including two major ones: (1) road tolls and (2) congestion pricing charges. Next, general modeling approaches used for estimating the impacts of road pricing are discussed. Finally, the paper concludes with a checklist explaini...

  6. Testing Price Equations

    OpenAIRE

    Ray C. Fair

    2007-01-01

    How inflation and unemployment are related in both the short run and long run is perhaps the key question in macroeconomics. This paper tests various price equations using quarterly U.S. data from 1952 to the present. Issues treated are the following. 1) Estimating price and wage equations in which wages affect prices and vice versa versus estimating "reduced form" price equations with no wage explanatory variables. 2) Estimating price equations in (log) level terms, first difference (i.e., i...

  7. Asset Pricing Theories

    OpenAIRE

    Michael Rothschild

    1985-01-01

    This article compares two leading models of asset pricing: the capital asset pricing model (CAPM) and the arbitrage pricing theory (APT): I argue that while the APT is compatible with the data available for testing theories of asset pricing, the CAPM is not. In reaching this conclusion emphasis is placed on the distinction between the unconditional (relatively incomplete) information which econometricians must use to estimate asset pricing models and the conditional (complete) information whi...

  8. Payday loan pricing

    OpenAIRE

    Robert DeYoung; Phillips, Ronnie J.

    2009-01-01

    We estimate the pricing determinants for 35,098 payday loans originated in Colorado between 2000 and 2006, and generate a number of results with implications for public policy. We find evidence consistent with classical price competition early in the sample, but as time passed these competitive effects faded and the data become more consistent with a variety of strategic pricing practices. On average, loan prices moved upward toward the legislated price ceiling over time, consistent with impl...

  9. 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...

  10. 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. ...

  11. 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...

  12. 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...

  13. 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.

  14. 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...

  15. 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

  16. 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

  17. 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...

  18. 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...

  19. 22 CFR 201.64 - Application of the price rules to commodities.

    Science.gov (United States)

    2010-04-01

    ... 22 Foreign Relations 1 2010-04-01 2010-04-01 false Application of the price rules to commodities... APPLICABLE TO COMMODITY TRANSACTIONS FINANCED BY USAID Price Provisions § 201.64 Application of the price rules to commodities. (a) Calculation of commodity prices on a common basis. In testing whether...

  20. 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....

  1. 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)

  2. Logit price dynamics

    OpenAIRE

    Costain, James; Nakov, Anton

    2014-01-01

    We propose a near-rational model of retail price adjustment consistent with microeconomic and macroeconomic evidence on price dynamics. Our framework is based on the idea that avoiding errors in decision making is costly. Given our assumed cost function for error avoidance, the timing of firms’ price adjustments is determined by a weighted binary logit, and the prices they choose are determined by a multinomial logit. We build this behavior into a DSGE model, estimate the decision cost functi...

  3. Precautionary price stickiness

    OpenAIRE

    Costain, James; Nakov, Anton

    2011-01-01

    This paper proposes a model in which retail prices are sticky even though firms can always change their prices at zero cost. Instead of imposing a "menu cost", we assume that more precise decisions are more costly. In equilibrium, firms optimally make some errors in price-setting, thus economizing on managerial time. Both the time cost of choice, and the resulting risk of errors, give firms an incentive to leave their prices unchanged until they perceive a sufficiently large deviation from th...

  4. 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...

  5. 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

  6. 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...

  7. Manufacturer's Suggested Retail Prices

    OpenAIRE

    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 `loss averse', e.g. consumers' disappointment from higher than suggested retail prices is sufficiently high, the producer can force the retailer to take the suggested price in equilibrium and thus capt...

  8. Airline Price Discrimination

    OpenAIRE

    Stacey, Brian

    2015-01-01

    Price discrimination enjoys a long history in the airline industry. Borenstein (1989) discusses price discrimination through frequent flyer programs from 1985 as related to the Piedmont-US Air merger, price discrimination strategies have grown in size and scope since then. From Saturday stay over requirements to varying costs based on time of purchase, the airline industry is uniquely situated to enjoy the fruits of price discrimination.

  9. 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...

  10. International Trade Price Indices

    OpenAIRE

    Guillaume Gaulier; Julien Martin; Isabelle Méjean; Soledad Zignago

    2008-01-01

    Export and import price indices are useful instruments in international economics. We document here TradePrices, our database of aggregated and sectoral trade price indices for all countries, computed using unit values given by BACI, the CEPII’s database of international trade at the product-level covering the period 1995-2004. Its rich country dimension allow an international comparison of prices evolutions. We compute “common” Laspeyres and Paasche indices but also “superlative” Fisher and ...

  11. 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

  12. 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...

  13. 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.

  14. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

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

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find that...

  15. 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

  16. 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.

  17. 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.

  18. A hybrid model for electricity spot prices

    International Nuclear Information System (INIS)

    Electricity prices were highly regulated prior to the deregulation of the electric power industry. Prices were predictable, allowing generators and wholesalers to calculate their production costs and revenues. With deregulation, electricity has become the most volatile of all commodities. Electricity must be consumed as soon as it is generated due to the inability to store it in any sufficient quantity. Economic uncertainty exists because the supply of electricity cannot shift as quickly as the demand, which is highly variable. When demand increases quickly, the price must respond. Therefore, price spikes occur that are orders of magnitude higher than the base electricity price. This paper presents a robust and realistic model for spot market electricity prices used to manage risk in volatile markets. The model is a hybrid of a top down data driven method commonly used for financial applications, and a bottom up system driven method commonly used in regulated electricity markets. The advantage of the model is that it incorporates primary system drivers and demonstrates their effects on final prices. The 4 primary modules of the model are: (1) a model for forced outages, (2) a model for maintenance outages, (3) an electrical load model, and (4) a price model which combines the results of the previous 3 models. The performance of each model was tested. The forced outage model is the first of its kind to simulate the system on an aggregate basis using Weibull distributions. The overall spot price model was calibrated to, and tested with, data from the electricity market in Pennsylvania, New Jersey and Maryland. The model performed well in simulated market prices and adapted readily to changing system conditions and new electricity markets. This study examined the pricing of derivative contracts on electrical power. It also compared a range of portfolio scenarios using a Cash Flow at Risk approach

  19. 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...

  20. Sugar Price Analysis in Indonesia

    OpenAIRE

    Kumara Jati

    2013-01-01

    This study examines the dynamic relationship between sugar price, exchange rate, oil price, rice price, and consumer price index (CPI); and to detect is there any difference between exchange rate, oil price, rice price, and CPI in effecting sugar price. We employ Vector Auto-regressions methods for a time series of monthly data from January 1998 to December 2011. Generally, the Impulse Response Function results provide the positive response of Indonesian sugar price from shock of the change o...

  1. 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...

  2. Characterizing bid ask prices in the Brazilian equity market

    Science.gov (United States)

    Cajueiro, Daniel O.; Tabak, Benjamin M.

    2007-01-01

    This paper presents evidence of long-range dependence in bid-ask prices for individual equity prices in the Brazilian stock market. Moreover, using the Hurst exponent calculated by the Local Whittle method as a measure of long-range dependence, we find evidence supporting that bid-ask prices shows a stronger long-range dependence than the one usually found in closing and opening prices. Finally, we show that bid-ask prices may be characterized by a distribution that decays as a power law reinforcing the results of Plerou et al. [Quantifying fluctuations in market liquidity: analysis of the bid-ask spread, Phys. Rev. E 71 (2005) 046131].

  3. Credit Derivatives Pricing Model for Fuzzy Financial Market

    Directory of Open Access Journals (Sweden)

    Liang Wu

    2015-01-01

    Full Text Available With various categories of fuzziness in the market, the factors that influence credit derivatives pricing include not only the characteristic of randomness but also nonrandom fuzziness. Thus, it is necessary to bring fuzziness into the process of credit derivatives pricing. Based on fuzzy process theory, this paper first brings fuzziness into credit derivatives pricing, discusses some pricing formulas of credit derivatives, and puts forward a One-Factor Fuzzy Copula function which builds a foundation for portfolio credit products pricing. Some numerical calculating samples are presented as well.

  4. Future prices of coal

    Energy Technology Data Exchange (ETDEWEB)

    Ippolito, M.

    It is not the price of such energy in itself which is important, but relative prices between different sources: in the circumstances, coal prices. No more important are the instantaneous prices such as they appear on the to-day market, but the price ratio, in a long-dated view. So, in this article, future costs of coal development are tried to be evaluated and conditions of the stability are defined. The strategies of the concerned people and the geopolitic factors are not forgotten. In those conditions, new markets for coal and concerned stakes are reviewed.

  5. 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...

  6. Psychology of pricing

    OpenAIRE

    Bimaj, Arjola

    2012-01-01

    Price is the element of the marketing mix that has direct effect in the profits of a company. The right price can boost the profit and the wrong price can significantly shrink it. Thus, the businesses need to set the right price in order to maximize their revenues. However, the newest factors in the economic field, the continuous changes in the environment and the current financial situation in the world has eroded the pricing power and forces the managers to look in every direction in order ...

  7. 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

  8. 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

  9. Fixed Price Dynamics versus Flexible Price Dynamics

    OpenAIRE

    Martin Currie; Ingrid Kubin

    2005-01-01

    This paper contrasts the dynamical behaviors of fixed and flexible price regimes for a monopolistically competitive manufacturing sector in which firms base decisions on expectations about product demands. (author's abstract)

  10. Strategic Generation with Conjectured Transmission Price Responses in a Mixed Transmission Pricing System. Part 2. Application

    International Nuclear Information System (INIS)

    The conjectured transmission price response model presented in the first of this two-paper series considers the expectations of oligopolistic generators regarding how demands for transmission services affect the prices of those services. Here, the model is applied to northwest Europe, simulating a mixed transmission pricing system including export fees, a path-based auction system for between-country interfaces, and implicit congestion-based pricing of internal country constraints. The path-based system does not give credit for counterflows when calculating export capability. The application shows that this no-netting policy can exacerbate the economic inefficiencies caused by oligopolistic pricing by generators. The application also illustrates the effects of different generator conjectures regarding rival supply responses and transmission prices. If generators anticipate that their increased demand for transmission services will increase transmission prices, then competitive intensity diminishes and energy prices rise. In the example here, the effect of this anticipation is to double the price increase that results from oligopolistic (Cournot) competition among generators

  11. 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,...

  12. 42 CFR 414.904 - Average sales price as the basis for payment.

    Science.gov (United States)

    2010-10-01

    ... drug products. (2) Calculation of the average sales price. (i) For dates of service before April 1...) Calculation of the average sales price. (i) For dates of service before April 1, 2008, the average sales price... end-stage renal disease patient. (i) Effective for drugs and biologicals furnished in 2005,...

  13. 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

  14. 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.

  15. 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...

  16. Pengujian Price Reversal Jangka Pendek Atas Penurunan Harga Saham Pada Indeks Lq-45 Di Indonesia

    OpenAIRE

    Perwita S, Donartauli

    2015-01-01

    Recent research find a new phenomenon in the fluctiation of stock prices that called price reversal phenomenon. This phenomenon is related to overreaction hypothesis. This reseacrh examine short-term price reversal of large stock price declines in the sample that consist of stocks listed on LQ-45 at Indonesia. This research test share return following one day big change of share price (-6%) period 2011 to 2013. This research use daily data, while abnormal calculation of return uses Market ...

  17. 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...

  18. Market based solutions for power pricing

    International Nuclear Information System (INIS)

    The report examines how the price for effect reserves, spot market power and regulated power is formed provided ideal market conditions rule. Primarily the price determining factors in a market for power reserves are examined and how the connection between this market and the energy market (the spot market) is. In a free market there would be a balance between what the actors may obtain by operating in the open market for power reserves/regulated power on the one hand and the market for spot power on the other. Primarily we suppose that the desired amount of power reserve is known. Secondly the problem constellation is extended to comprise the size of the effect reserves i.e. the optimising of the requirement to the power reserves. The optimal amount of power reserves is obtained when there is a balance between the cost and the benefit. This optimal balance is achieved when expected macro economical loss due to outfacing balances against the cost of maintaining larger reserves. By using a simple model it is demonstrated that a system operator regulates the maximal price in the regulated market and this equals the rationing price. The actors will offer sufficient reserves even if the reserve price is zero (provided risk neutrality). If the maximal price for regulated power is lower the price of effect reserves will rise. Based on the same simple model calculations are made for how short and long term market balance will be for increasing demands

  19. 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.

  20. 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.

  1. 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

  2. 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...

  3. 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,...

  4. Behavioral Aspects of Pricing

    OpenAIRE

    Lowe, Ben; Lowe, Julian; Lynch, David

    2012-01-01

    Buyers sometimes exhibit seemingly “irrational” behavior with respect to prices and use socially embedded heuristics to simplify their purchase decisions. In some cases small changes in prices can lead to much larger than anticipated changes in sales and profitability. Sellers need to understand the heuristics consumers use, the situations in which they emerge, and recognize how they can respond in markets where information and knowledge of product attributes and competitive prices is increas...

  5. 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...

  6. Positive Prices in CAPM.

    OpenAIRE

    Nielsen, Lars Tyge

    1992-01-01

    Some equilibrium prices in the capital asset pricing model may be negative because of nonmonotonicity of preferences. The authors identify several sets of sufficient conditions for prices to be positive. The central conditions impose bounds on the investors' risk aversion. These bounds do not need to hold globally but only in a relevant range of portfolios or combinations of mean and standard deviation. The relevant range is specified on the basis of exogenous parameters and variables, and it...

  7. 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...

  8. 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...

  9. Price versus Quantity Monitoring

    OpenAIRE

    Ramarao Desiraju

    2006-01-01

    In an adverse selection context, this article explores the relative usefulness of price information over quantity information. The main finding is that price monitoring can induce a sales level that is greater than the full-information sales level. This imposes additional selling costs on the agent and reduces that agent's rents. The analysis identifies sufficient conditions for the principal to prefer price monitoring over quantity monitoring. Business-format franchises exhibit many of the f...

  10. 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...

  11. 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

  12. Hedonic House Price Index

    OpenAIRE

    Säterbrink, Filip

    2013-01-01

    Nasdaq OMX Valueguard-KTH Housing Index (HOX) is a hedonic price index that illustrates the price development of condominiums in Sweden, and that is obtained by using regression technique. Concerns have been raised regarding the influence of the monthly fee on the index. Low fee condominiums could be more popular because of the low monthly cost, high fee condominiums tend to sell for a lower price due to the high monthly cost. As the price of a condominium rises the importance of the monthly ...

  13. Pricing with coherent risk

    OpenAIRE

    Cherny, Alexander S.

    2006-01-01

    This paper deals with applications of coherent risk measures to pricing in incomplete markets. Namely, we study the No Good Deals pricing technique based on coherent risk. Two forms of this technique are presented: one defines a good deal as a trade with negative risk; the other one defines a good deal as a trade with unusually high RAROC. For each technique, the fundamental theorem of asset pricing and the form of the fair price interval are presented. The model considered includes static as...

  14. Pricing of Software Services.

    OpenAIRE

    R. Bala; Carr, S. C.

    2005-01-01

    We analyze and compare fixed-fee and usage-fee software pricing schemes - in fixed-fee pricing, all users pay the same price; in usage-fee pricing, the users’ fees depend on the amount that they use the software (e.g., the user of an online-database service might be charged for each data query). We employ a two-dimensional model of customer heterogeneity - specifically, we assume that customers vary in the amount that they will use the software (usage heterogeneity) and also in their per-use ...

  15. Derivative markets, speculation and oil prices

    International Nuclear Information System (INIS)

    Recent movements in oil prices have been ascribed by a number of analysts and political leaders not to market fundamentals but to the speculative positions taken by financial investors in derivatives markets. Various economists including Nobel Prize Paul Krugman believe however that the constitution of stocks is a necessary element for speculation, a feature that was not very evident during the sudden price increase in 2008; but these points of view are not entirely incompatible. Various explanations can be put forward, among which the most important is demand inertia. On the very short run, demand price elasticity is significantly lower than that usually calculated for the short term, which can significantly reduce the impact - on stocks - of a temporary price increase provoked by financial investors' behavior. (authors)

  16. Modeling UK Natural Gas Prices when Gas Prices Periodically Decouple from the Oil Price

    OpenAIRE

    Asche, Frank; Oglend, Atle; Osmundsen, Petter

    2015-01-01

    When natural gas prices are subject to periodic decoupling from oil prices, for instance due to peak-load pricing, conventional linear models of price dynamics such as the Vector Error Correction Model (VECM) can lead to erroneous inferences about cointegration relationships, price adjustments and relative values. We propose the use of regime-switching models to address these issues. Our regime switching model uses price data to infer whether pricing is oil-driven (integrated) or gas-specific...

  17. 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.

  18. 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...

  19. 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...

  20. Strategic Generation with Conjectured Transmission Price Responses in a Mixed Transmission Pricing System. Part 1. Formulation

    International Nuclear Information System (INIS)

    The conjectured supply function (CSF) model calculates an oligopolistic equilibrium among competing generating companies (GenCos), presuming that GenCos anticipate that rival firms will react to price increases by expanding their sales at an assumed rate. The CSF model is generalized here to include each generator's conjectures concerning how the price of transmission services (point-to-point service and constrained interfaces) will be affected by the amount of those services that the generator demands. This generalization reflects the market reality that large producers will anticipate that they can favorably affect transmission prices by their actions. The model simulates oligopolistic competition among generators while simultaneously representing a mixed transmission pricing system. This mixed system includes fixed transmission tariffs, congestion-based pricing of physical transmission constraints (represented as a linearized dc load flow), and auctions of interface capacity in a path-based pricing system. Pricing inefficiencies, such as export fees and no credit for counterflows, can be simulated. The model is formulated as a linear mixed complementarity problem, which enables very large market models to be solved. In the second paper of this two-paper series, the capabilities of the model are illustrated with an application to northwest Europe, where transmission pricing is based on such a mixture of approaches

  1. 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...

  2. 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...

  3. 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...

  4. 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...

  5. 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...

  6. 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.

  7. 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.

  8. 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...

  9. 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,...

  10. 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...

  11. 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...

  12. 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,...

  13. 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...

  14. 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...

  15. 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...

  16. 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...

  17. 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...

  18. 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.

  19. 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

  20. 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.

  1. 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.

  2. 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.

  3. 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...

  4. 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.

  5. 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。

  6. A Study on Rational Pricing System for Water Supply

    Energy Technology Data Exchange (ETDEWEB)

    Moon, H.J. [Korea Environment Institute, Seoul (Korea)

    2001-12-01

    Reasonable pricing of water can induce optimal water use by the public by relaying the considerable costs of water provision and plays an important role of providing a basic scheme for the reasonable management of water. This study provides a reasonable pricing scheme of water that reflects the economic and social values of water as a resource by investigating reasonable bulk-water pricing and retail-water pricing. For bulk pricing, the study discuss the range of costs to be covered, design of efficient pricing structures(differentiated by source quality, loss ratios and time year), and sharing efficient costs between beneficiaries (customer groups and regions). The study also addresses the adjustment of present charging schemes for bulk water such as charges for bulk water from dam, abstraction charges, and river charges etc. Factoring in demand and available resource characteristics, the differentiated pricing mechanism is also investigated. The study proposes a differentiated pricing mechanism based on season, where the pricing structure reflects the cost structure related to fluctuated demand. In addition, implementation methods and effects of introducing seasonal pricing scheme are discussed. Another seasonal pricing mechanism, the seasonally differentiated pricing scheme in bulk pricing reflects a cost structure related to resource availability, is also investigated. Increasing block rate as a reasonable pricing scheme for water conservation, and priority pricing as a tool socially desirable water allocation in the case water shortage are designed. for practical implementation of pricing scheme, several issues are discussed: identification and calculation of costs that should be covered and the structure of costs as a basis of differentiated pricing scheme, issue of forecasting, and practical that could be happen in the implementation of increasing block rate and seasonal pricing schemes, etc. Institutional systems that implement the proposed pricing schemes

  7. 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...

  8. 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.

  9. Prospects for oil prices

    International Nuclear Information System (INIS)

    It is argued that the wave in oil prices which occurred in 1991, although appearing to suggest price instability, in fact shows the opposite. Steady oscillation between a low price level that leads to new customers and a high price that encourages customers to switch to alternatives is a sign of a stable market. This relative stability was achieved against the background of the political upheaval in the USSR and Eastern Europe and its unpredictable consequences. Such political uncertainties to one side, the difficulties of assessing demand trends in the light of the imponderables of the state of the world economy and the weather are stressed. Despite these problems, the view is expressed that correct reading of signals up the supply chain by producers should ensure continued relative price stability. This is not to say that prices will stay exactly the same, just that they will be bound within a trading range set by anticipated consumer and producer responses to the fluctuating prices. (UK)

  10. 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.

  11. 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”.

  12. 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.

  13. 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 ...

  14. 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...

  15. Power price and costs

    International Nuclear Information System (INIS)

    A tentative ordering of price and cost concepts in the field of energy economy is presented (sectorial, national and international level). An analysis of the various stages of formation of prices and costs is proposed for four leading energetic chains: coal, gas, petroleum (and petroleum products) and electric power chain, nuclear electric power being analyzed apart. Numerical data are given for the period 1971-1974. Two problems are examined in view of comparing prices and costs: the necessity of discriminating past data from that to be obtained or estimated for the future, and the definition of the functions and their role in the comparison

  16. 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 ...

  17. 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...

  18. Energy price risk management

    Science.gov (United States)

    Weron, Rafal

    2000-09-01

    The price of electricity is far more volatile than that of other commodities normally noted for extreme volatility. Demand and supply are balanced on a knife-edge because electric power cannot be economically stored, end user demand is largely weather dependent, and the reliability of the grid is paramount. The possibility of extreme price movements increases the risk of trading in electricity markets. However, a number of standard financial tools cannot be readily applied to pricing and hedging electricity derivatives. In this paper we present arguments why this is the case.

  19. Pemilihan Model Asset Pricing

    OpenAIRE

    Pasaribu, Rowland Bismark Fernando

    2010-01-01

    The Capital Asset Pricing Model (CAPM) has dominated finance theory for over thirty years; it suggests that the market beta alone is sufficient to explain stock returns. However evidence shows that the cross-section of stock returns cannot be described solely by the one-factor CAPM. Therefore, the idea is to add other factors in order to complete the beta in explaining the price movements in the stock exchange. The Arbitrage Pricing Theory (APT) has been proposed as the first multifactor succ...

  20. 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...

  1. 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.

  2. Prices sink below $10

    International Nuclear Information System (INIS)

    The new year is off to a slow start, with very few deals in any segment of the uranium market. NUKEM detects a slight erosion in spot market prices for both the restricted and the unrestricted markets. In the restricted spot market, the price range is now under the ten-dollar market at $9.80 to $9.90. Prices slipped in the unrestricted market as well to $7.75 to $7.90. The enrichment market remained within December's price range. There is a noteworthy trend in recent market activity. Some US utilities are reaping the fruits of their prescient strategy of diversification in their enrichment and conversion supply contracts. US utilities with European enrichment and conversion contracts are taking advantages of the flexibility to acquire CIS material in accordance with the recently-negotiated suspension agreement

  3. 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...

  4. 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...... the market for multivariate credit instruments, we take a step back and focus on single-name default modeling and introduce two new model classes for modeling of the default time of a company. Finally, in the third paper we propose a consistent pricing model for index and volatility derivatives. With...... the existence of a liquid market for derivatives with variance as underlying, such as VIX options, VIX futures and a well-developed over-the-counter market for options on variance swaps, it is important to consider models that are able to fit these markets while consistently pricing vanilla options on...

  5. Prices versus Quantities

    DEFF Research Database (Denmark)

    Hansen, Lars Gårn; Jensen, Frank

    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...

  6. 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....

  7. 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...

  8. Ancillary revenue pricing

    OpenAIRE

    Wittmer, Andreas; Oberlin, Nicole

    2014-01-01

    The airline industry has evolved from a system of long-established state owned carriers operating in a regular market to a dynamic, deregulated industry. This development - especially the emerging competition of Low Cost Carriers - had a major influence on the price setting behavior of airlines. Profitability of airlines is limited and pricing systems are reconsidered. In order to stay competitive traditional full service carriers consider the implementation of ancillary revenue systems (simi...

  9. 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...

  10. Lifestyle prices and production

    OpenAIRE

    Mark Aguiar; Erik Hurst

    2005-01-01

    Using scanner data and time diaries, we document how households substitute time for money through shopping and home production. We find evidence that there is substantial heterogeneity in prices paid across households for identical consumption goods in the same metro area at any given point in time. For identical goods, prices paid are highest for middle-aged, rich, and large households, consistent with the hypothesis that shopping intensity is low when the cost of time is high. The data sugg...

  11. 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

  12. Marketing Innovation through Price

    OpenAIRE

    Adrian Micu; Angela Eliza Micu

    2005-01-01

    The factors that influence pricing strategy change over the life of a product concept. The market defined by a product concept passes through four phases: development, growth, maturity, and decline. Briefly, the changes in the strategic environment over those phases are as follows: Market development. Buyers are price insensitive because they knowledge of the product’s benefits. Both production and not a threat since the potential gains from market development exceed those from competitive ri...

  13. Supermarket Pricing Strategies

    OpenAIRE

    Paul B. Ellickson; Sanjog Misra

    2008-01-01

    Most supermarket firms choose to position themselves by offering either everyday low prices (EDLP) across several items or offering temporary price reductions (promotions) on a limited range of items. While this choice has been addressed from a theoretical perspective in both the marketing and economic literature, relatively little is known about how these decisions are made in practice, especially within a competitive environment. This paper exploits a unique store level data set consisting ...

  14. 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...

  15. 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 ...

  16. Price promotions and their effect upon reference prices

    OpenAIRE

    Lowe, Ben; Yeow, Pamela; Yee, Fanny

    2014-01-01

    Purpose – The purpose of this study is to resolve inconsistencies in the literature about how one-time price promotions affect reference prices. Specifically, this study suggests that the measure of reference price used within a study (e.g. expected price or fair price) can affect the outcomes of that study. Design/methodology/approach – This research uses three separate experiments, replicating and extending existing work, to simulate purchasing decisions for products in the cont...

  17. 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.

  18. Price relationships along the value chain: an analysis of the hake market in France

    OpenAIRE

    Hartmann, J; Jaffry, Shabbar; Asche, F.

    2001-01-01

    In this paper we use cointegration analysis and the Law of One Price to test for proportionality between hake prices at different stages along the value chain in the French hake market. Cointegration analysis is an appropriate means of testing for price proportionality when price series are non-stationary, as was found to be the case for hake prices in France. Estimates of the relative size of mark-ups along the value chain are calculated by applying the Law of One Price to the cointegrated p...

  19. Gas pricing trends in Lithuania

    International Nuclear Information System (INIS)

    The Natural Gas Law of Lithuania passed by the Parliament in 2000 is discussed. New responsibilities of the national committee for prices and energy are considered. New pricing principles and the development of natural gas prices from 1994 to 2001 in Lithuania are presented. The gas and fuel oil prices in the country are compared. (R.P.)

  20. 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.

  1. 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 ...

  2. Press point on the prices

    International Nuclear Information System (INIS)

    To analyze the prices situation of the motor fuels, the authors present the mechanisms of the prices formation (markets, crude oils price and margins) and the market context (distribution, taxes, french energy policy). They discuss then the impacts of the round table of the 16 September 2005 at Bercy, facing the increase of the motor fuels prices. (A.L.B.)

  3. Natural gas prices and competitiveness

    International Nuclear Information System (INIS)

    The evolution of natural gas price in Hungary from 1992 to 1998 is discussed, in the framework of harmonization challenges for joining the European Union. The price trends are broken down by industrial, general and household usage. The Hungarian prices are compared with those in other European countries. The price strategy for market competitiveness is discussed. (R.P.)

  4. 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.

  5. Price setting in turbulent times

    DEFF Research Database (Denmark)

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

    extent driven by exchange rate fluctuations than in most other advanced countries. The median Icelandic firm reviews its prices every four months and changes them every six months. The main sources of price rigidity and the most commonly used price setting methods are the same as in most other countries...... 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...

  6. 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).

  7. 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...... time of measurement and type of measures applied. Examination of consumer price knowledge before, during, and afterstore visit sheds light on what is measured at the individual points in time: episodic price knowledge and/or reference prices? With a between-subjects design interviewing 1......,204 respondents, the authors investigate three price knowledge measures (price recall, price recognition, and dealspotting) demonstrating that these are hierarchically related. Results suggest that reference prices dominate before store visit, but also that episodicprice knowledge, surprisingly, is still...

  8. 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...

  9. Nominal Price and Wage Interactions

    OpenAIRE

    Andersen, Torben M.

    1995-01-01

    The interaction between price and wage setting is considered in a model with monopolistically product markets and unionized labour markets. It is shown how differential information can cause nominal rigidities which are amplified by the wage-price interactions arising due to strategic complementarity in price and wage setting. Nominal wages may be less flexible than nominal product prices even when there are no informational asymmetries between price and wage decisions.

  10. 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'...

  11. Do Regional Price Levels Converge?

    OpenAIRE

    Christian Dreger; Reinhold Kosfeld

    2010-01-01

    We investigate price level convergence on the base of regional data for 439 German districts. Prices refer to the overall consumer price index as well as to the index without housing prices. To increase the efficiency of the testing framework, the analysis is based on panel unit root tests. First and second generation tests are applied. They indicate a lack of regional price convergence, as the null hypothesis of a unit root is usually not rejected. The second generation tests reveal that the...

  12. 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 ...

  13. 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...

  14. 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...

  15. Market Sharing and Price Leadership

    OpenAIRE

    Farm, Ante

    2009-01-01

    This paper proposes an alternative to the traditional model of supply and demand in markets where consumers take prices as given. Within the framework of “no side payments and partial preplay communication” firms are assumed to decide non-cooperatively on production and marketing while the market price is set by a competitive price leader, i.e. a firm preferring the lowest market price. Predictions include excess supply and a revenuemaximizing market price in markets where production precedes...

  16. 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...

  17. ECONOMIC AND MATHEMATIC EVALUATION OF PRICE FLUCTUATIONS INFLUENCE ON ECONOMIC INTERESTS OF MARKET RELATIONS AGENTS

    OpenAIRE

    PTASHCHENKO L.O.

    2015-01-01

    Economic and mathematical model of price fluctuations influence on economic interests of basic market relations agents (represented by state, enterprises and households) is built. Factors of influence on price fluctuations and agent’s welfare decrease are determined. On a basis of calculation of Kendall’s concordance coefficient, conclusions about links absence between economic interests of market relations agents (in conditions of prices formation and governmental price regulation) are forme...

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

    OpenAIRE

    Endah Saptutyningsih

    2013-01-01

    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 relati...

  19. 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...

  20. Vertical price transmission analysis: The case of milk in the slovak dairy sector

    OpenAIRE

    Lajdová, Zuzana; Bielik, Peter

    2013-01-01

    Testing for nature price transmission and calculating elasticities of price transmission are important areas of research for providing insights into market efficiency issues. Symmetric or asymmetric price transmission has been the subject of considerable attention in agricultural economics. The concept of the price transmission is an important area of the research particularly in relation to the assessment of impact on the welfare of the vertical entities. The main goal of the paper is an ana...

  1. Price Dispersion on the Internet: Empirical Comparison of Several Commodities from the Czech Republic

    OpenAIRE

    Jiří Sedláček

    2013-01-01

    The first large scale (almost 500 products, 64,300 individual price listings) empirical study of price dispersion based on the data from the Czech Republic’s e‑shops is presented in the paper. First, simple descriptive indicators like average, max, min, median and standard deviation were calculated for each product. Second, several versions of linear regression models were constructed for each of 10 product categories and evaluated against hypotheses. The price dispersion (measured as a price...

  2. Tracing the Base: A Topographic Test for Collusive Basing-Point Pricing

    OpenAIRE

    Bos, Iwan; Schinkel, Maarten Pieter

    2009-01-01

    Basing-point pricing is known to have been abused by geographically dispersed firms in order to eliminate competition on transportation costs. This paper develops a topographic test for collusive basing-point pricing. The method uses transaction data (prices, quantities) and customer project site locations to recover the basing-point(s) from which delivered prices were calculated. These bases are compared to the locations of the production mills in a test that discriminates between competitiv...

  3. CORN PRICE EFFECTS ON COST OF GAIN FOR FEEDLOT CATTLE: IMPLICATIONS FOR BREAKEVEN BUDGETING

    OpenAIRE

    Anderson, John D.; Trapp, James N.

    2000-01-01

    Elasticities calculated from an econometric model of cost of gain (COG) for cattle in feedlots indicate that COG is considerably less responsive to corn price changes than breakeven budgets assume. This difference in elasticities can lead to substantial errors in COG estimates obtained from budgeting. Size of error will depend upon the initial corn price and the magnitude of corn price change. Given average corn price levels and month-to-month changes, the error in budget-based net revenue pr...

  4. 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

  5. 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)

  6. 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

  7. 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.

  8. 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)

  9. 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)

  10. 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)

  11. 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

  12. 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

  13. 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...

  14. 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 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...... 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....

  15. 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

  16. 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…

  17. 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

  18. 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.

  19. Energy prices, equalization and Canadian federalism : comparing Canada's energy price shocks

    International Nuclear Information System (INIS)

    Revenues from natural resources during periods of high energy prices can create problems with the way the Canadian federal government distributes wealth through equalization. This paper traced the history of equalization in comparison with energy prices from the years 1973 to 2003. It was noted that the National Energy Program, section 92A of the Constitution, and the 5-province standard were all federal responses to initial energy price increases. It was suggested that current increases in energy prices demand a different response. The author examined a method of using the national average standard to calculate equalization payments as a means of eliminating the inequities created by the current 5-province standard, which excludes both Alberta and the Atlantic provinces. It was argued that the exclusion of Alberta's energy resources creates a false impression that other provinces such as British Columbia and Saskatchewan are rich in resources. It was suggested that fiscal imbalance between provinces is a significant challenge to the current Canadian government. New approaches to cash transfers to the provinces were discussed. A 2-tier equalization scheme was proposed that separated natural resource revenues from other revenues. It was concluded that the government's previous response to high energy prices will not be appropriate for addressing the current price shock. A 2-tier equalization scheme will mean that resource-rich provinces have an opportunity to participate more fully in federal decision-making. 53 refs., 3 figs

  20. 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.

  1. 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.

  2. 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

  3. 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.

  4. Retail-Price Drivers and Retailer Profits

    OpenAIRE

    Vincent R. Nijs; Shuba Srinivasan; Koen Pauwels

    2007-01-01

    What are the drivers of retailer pricing tactics over time? Based on multivariate time-series analysis of two rich data sets, we quantify the relative importance of competitive retailer prices, pricing history, brand demand, wholesale prices, and retailer category-management considerations as drivers of retail prices. Interestingly, competitive retailer prices account for less than 10% of the over-time variation in retail prices. Instead, pricing history, wholesale price, and brand demand are...

  5. 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...

  6. 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)

  7. 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. ...

  8. Dynamic Price Competition with Price Adjustment Costs and Product Differentiation

    OpenAIRE

    Vernasca, Gianluigi

    2003-01-01

    We study a discrete time dynamic game of price competition with spatially differentiated products and price adjustment costs. We characterise the Markov perfect and the open-loop equilibrium of our game. We find that in the steady state Markov perfect equilibrium, given the presence of adjustment costs, equilibrium prices are always higher than prices at the repeated static Nash solution, even though, adjustment costs are not paid in steady state. This is due to intertemporal strategic comple...

  9. 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...

  10. 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.)

  11. 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.

  12. 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.

  13. 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...

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

    International Nuclear Information System (INIS)

    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. (interdisciplinary physics and related areas of science and technology)

  15. 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.

  16. 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 exc...

  17. 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...

  18. 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)

  19. 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

  20. 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

  1. 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.)

  2. 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…

  3. Energy prices. August 2004

    International Nuclear Information System (INIS)

    This document makes a synthesis of the main French energy prices and tariffs in August 2004 and for the years 2002 and 2003 (annual average) per sector (transports, residential, industry) and per type of energy source (automotive fuels, domestic fuel, district heating, propane, coal, wood, electricity, natural gas). Data are presented in tables. (J.S.)

  4. 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.

  5. 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...

  6. Prices and species diversity

    DEFF Research Database (Denmark)

    Sauer, Johannes

    . 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...

  7. Road pricing with complications

    DEFF Research Database (Denmark)

    Fosgerau, Mogens; Van Dender, Kurt

    2013-01-01

    highly stylised model of congestion is used. The simple analysis also ignores that real pricing schemes are only rough approximations to ideal systems and that inefficiencies in related markets potentially affect the case for congestion charges. The canonical model tends to understate the marginal...

  8. 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...

  9. 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.

  10. 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...

  11. 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.

  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. 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)

  14. 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)

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

    International Nuclear Information System (INIS)

    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)

  16. Price Strategies in Banking Marketing

    OpenAIRE

    Iuliana Cetina; Nora Mihail

    2007-01-01

    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 the...

  17. Quality expectations, reputation, and price

    OpenAIRE

    Landon, Stuart; Smith, Constance

    1998-01-01

    The impact on price of current product quality and reputation are estimated using data from the market for Bordeaux wine. A model is proposed in which price is a function of current quality and expected quality, where the latter depends on reputation. Equations determining price and expected quality are estimated jointly. The empirical findings show that the price premium associated with better individual and collective (or group) reputation far exceeds that associated with improvements in...

  18. 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...

  19. 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...

  20. 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...

  1. 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...

  2. 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...

  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. 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...

  5. 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 ...

  6. Pricing Models in Marketing Research

    OpenAIRE

    Stan Lipovetsky; Shon Magnan; Andrea Zanetti-Polzi

    2011-01-01

    Pricing a product is one of the most important decisions an organization can make. Marketing research has developed several different approaches to price optimization. They include direct methods such as estimation of willingness to pay, indirect methods such as Gabor-Granger and van Westendorp techniques, and product/price mix methods such as various discrete choice models. All of them are widely used in practical marketing research for evaluation of optimal prices for different products and...

  7. 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...

  8. 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

  9. Second-degree price discrimination and universal access under (weighted average) price cap regulation

    OpenAIRE

    Li Ning, Jorge

    2009-01-01

    This paper analyzes the efficiency of the Price Cap regulatory scheme and its impact on universal access, when the monopolist is allowed to set a menu of alternative plans as part of a self-selection strategy (second-degree price discrimination) and the cap is calculated as the weighted average of the tariff plans he offers. In this context, we characterized the solution of the monopolist; who, besides offering a menu of plans more distorted than the second-best outcome -even distorting the p...

  10. The Relation of the US Dollar with Oil Prices, Gold Prices, and the US Stock Market

    OpenAIRE

    2015-01-01

    The purpose of this paper is to study the relation of US stocks, gold, and oil with the US dollar foreign exchange rate. First it is demonstrated that the law of one price holds for US stocks, gold, and oil. This law specifies that a 1% appreciation of the US dollar leads to a 1% fall in the price of stocks, gold, and oil. This is true for the simple reason that stocks, gold and oil are denominated in US dollars. Next intrinsic returns are calculated. Intrinsic returns are defined as those as...

  11. 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...

  12. 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...

  13. 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...

  14. 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...

  15. "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.

  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. 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

  18. Determinants of Tanzanian export prices

    OpenAIRE

    Rollo, Valentina

    2012-01-01

    . This paper uses firm-level data to study the pricing-behavior of Tanzanian exporters. The important question of how exporting firms make pricing decisions has not received significant attention in the trade literature, which is more focused on factors that determine export flows. The results of the paper show that the free on board price of Tanzanian exports is differentiated both across...

  19. A Unified Beta Pricing Theory

    OpenAIRE

    Connor, Gregory

    1984-01-01

    This paper derives Ross's mutual fund separation theory and a new, equilibrium version of Ross's arbitrage pricing theory as special cases of a general theory. The paper also reveals that the two theories are identical in their predictions of asset prices and portfolio returns. The capital asset pricing model (a restricted case of the mutual fund separation theory) receives special treatment.

  20. 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

  1. 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 ...

  2. 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 ...

  3. 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...

  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

    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......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...

  5. Analysis on the choice of the most suitable metal prices in a mining investment project

    International Nuclear Information System (INIS)

    The mineral price assigned in mining project design is critical to determining the economic feasibility of a project. Nevertheless, although it is not difficult to find literature about market metal prices, it is much more complicated to achieve a specific methodology for calculating the value or which justifications are appropriate to include. This study presents an analysis of various methods for selecting metal prices and investigates the mechanisms and motives underlying price selections. The results describe various attitudes adopted by the designers of mining investment project, and how the price can be determined not just by means of forecasting also by consideration of other relevant parameters. (Author)

  6. Modelling and forecasting electricity price variability

    Energy Technology Data Exchange (ETDEWEB)

    Haugom, Erik

    2012-07-01

    The liberalization of electricity sectors around the world has induced a need for financial electricity markets. This thesis is mainly focused on calculating, modelling, and predicting volatility for financial electricity prices. The four first essays examine the liberalized Nordic electricity market. The purposes in these papers are to describe some stylized properties of high-frequency financial electricity data and to apply models that can explain and predict variation in volatility. The fifth essay examines how information from high-frequency electricity forward contracts can be used in order to improve electricity spot-price volatility predictions. This essay uses data from the Pennsylvania-New Jersey-Maryland wholesale electricity market in the U.S.A. Essay 1 describes some stylized properties of financial high-frequency electricity prices, their returns and volatilities at the Nordic electricity exchange, Nord Pool. The analyses focus on distribution properties, serial correlation, volatility clustering, the influence of extreme events and seasonality in the various measures. The objective of Essay 2 is to calculate, model, and predict realized volatility of financial electricity prices for quarterly and yearly contracts. The total variation is also separated into continuous and jump variation. Various market measures are also included in the models in order potentially to improve volatility predictions. Essay 3 compares day-ahead predictions of Nord Pool financial electricity price volatility obtained from a GARCH approach with those obtained using standard time-series techniques on realized volatility. The performances of a total of eight models (two representing the GARCH family and six representing standard autoregressive models) are compared and evaluated. Essay 4 examines whether predictions of day-ahead and week-ahead volatility can be improved by additionally including volatility and covariance effects from related financial electricity contracts

  7. Road pricing. Discussion; Rekeningrijden. Discussie

    Energy Technology Data Exchange (ETDEWEB)

    Gommers, M. [Divisie Transport, Nederlands Economisch Instituut NEI, Rotterdam (Netherlands); Glasius, E.H. [RAI Vereniging, Amsterdam (Netherlands); Verhoef, E. [Afdeling Ruimtelijke Economie, Vrije Universiteit, Amsterdam (Netherlands); De Ruyter van Steveninck, M.A. [ed.

    1999-02-12

    Each of the authors as mentioned in this record is responsible for one column, discussing road pricing. The first author discusses the use of road pricing in countries other than the Netherlands with special attention for the experiences in Singapore. The second author pays attention to the effects of road pricing on the drivers of cars: no less traffic jams but higher costs. The fourth author discusses the price elasticity of highway use and how levies can be reimbursed. The third author deals with the question whether road pricing works or not. 9 refs.

  8. Retail Pricing and Clearance Sales

    OpenAIRE

    1984-01-01

    Sellers of new products are faced with having to guess demand conditions to set price appropriately. But sellers are able to adjust price over time and to learn from past mistakes. Additionally, it is not necessary that all goods be sold with certainty. It is sometimes better to set a high price and to risk no sale. This process is modeled to explain retail pricing behavior and the time distribution of transactions. Prices start high and fall as afunction of time on the shelf. The initial pri...

  9. 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.

  10. 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...

  11. 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%

  12. 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

  13. Price floors for emissions trading

    Energy Technology Data Exchange (ETDEWEB)

    Wood, Peter John, E-mail: Peter.J.Wood@anu.edu.a [Resource Management in Asia Pacific Program, Crawford School of Economics and Government, Australian National University, Canberra ACT 0200 (Australia); Jotzo, Frank, E-mail: frank.jotzo@anu.edu.a [Resource Management in Asia Pacific Program, Crawford School of Economics and Government, Australian National University, Canberra ACT 0200 (Australia)

    2011-03-15

    Price floors in greenhouse gas emissions trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for emissions trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal of emissions permits. Our analysis of these alternatives shows that the fee approach has budgetary advantages and is more compatible with international permit trading than the alternatives. It can also be used to implement more general hybrid approaches to emissions pricing. - Research highlights: {yields} Price floors for emissions trading schemes guarantee a minimum carbon price. {yields} Price floors mean that emissions can be less than specified by the ETS cap. {yields} We examine how price floors can relate to different policy objectives. {yields} We compare different mechanisms for implementing a price floor. {yields} We find that a mechanism where there is an extra tax or fee has advantages.

  14. Price floors for emissions trading

    International Nuclear Information System (INIS)

    Price floors in greenhouse gas emissions trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for emissions trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal of emissions permits. Our analysis of these alternatives shows that the fee approach has budgetary advantages and is more compatible with international permit trading than the alternatives. It can also be used to implement more general hybrid approaches to emissions pricing. - Research highlights: → Price floors for emissions trading schemes guarantee a minimum carbon price. → Price floors mean that emissions can be less than specified by the ETS cap. → We examine how price floors can relate to different policy objectives. → We compare different mechanisms for implementing a price floor. → We find that a mechanism where there is an extra tax or fee has advantages.

  15. Careful price level targeting

    OpenAIRE

    Waters , George A.

    2012-01-01

    This paper examines a class of interest rate rules that respond to public expectations and to lagged variables. Varying levels of commitment correspond to varying degrees of response to lagged output and targeting of the price level. If the response rises (unintentionally) above the optimal level, the outcome deteriorates severely. Hence, the optimal level of commitment is sensitive to the method of expectations formation and partial commitment is the robust, optimal policy.

  16. 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...

  17. 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, ...

  18. 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, ...

  19. Pricing Cultural Heritage

    OpenAIRE

    Susana Mourato; Ece Ozdemiroglu; Tannis Hett; Giles Atkinson

    2004-01-01

    A growing determinant of leisure travel decisions has been the demand for cultural destinations. This has presented complex challenges with regards to the correct management of major cultural resources. Management options can be assessed in terms of three criteria of performance: access, financial sustainability and environmental sustainability. This paper shows that a promising means of reconciling these desirable objectives is to harness the potential of economic pricing strategies (such as...

  20. 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.

  1. Negotiated Transfer Prices

    OpenAIRE

    Becker, Johannes; Davies, Ronald B.

    2015-01-01

    The predominant model of tax induced transfer pricing is based on the assumption that profit shifting is due to insufficient enforcement. However, evidence shows that the firms responsible for most profit shifting are also among the most frequently audited. We present an alternative model based on negotiations that avoid costly, yet uncertain, formal proceedings (e.g. court procedures). This model predicts that profit shifting increases in the tax gap even though enforcement is perfect. Furth...

  2. Prices in Networks

    OpenAIRE

    Tan, Hi-Lin

    2006-01-01

    When there is strategic complementarity of consumption between neighbors in a social network, we find that certain consumers may have a bigger impact than other consumers on the market demand and therefore the equilibrium price. The influence that a particular consumer has on the market demand depends on the network structure and the consumer’s location in the network. This analysis may, for example, shed light on the segment of consumers that should be the target of selective advertisements ...

  3. Pricing for system security

    OpenAIRE

    Wu, Felix F; Kaye, RJohn; Varaiya, Pravin

    1995-01-01

    Security in power systems refers to the ability of the system to withstand imminent disturbances (contingencies). Maintaining security is an issue which must be addressed at the system level. It is shown in this paper, however, that it is possible to maintain system security in an operating environment with many participants (power companies, independent power producers, co-generators, consumers) each attempting to optimize their own benefit, through pricing incentives and appropriate informa...

  4. 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...

  5. Energy prices - August 2007

    International Nuclear Information System (INIS)

    This folder presents a synthesis of the main energy tariffs and prices in August 2007 and their comparison with the average annual data for 2005 and 2006. Data are presented in tables by sector of activity and by energy source: transports (automotive fuels), residential (fuel oil, district heating, propane, coal, wood-fuel, electricity, natural gas), industry (natural gas, electricity, heavy fuel oil, coal). (J.S.)

  6. 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...

  7. 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...

  8. 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 ...

  9. 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...

  10. 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)

  11. 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

  12. Oil price uncertainty in Canada

    International Nuclear Information System (INIS)

    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)

  13. Record prices [crude oil

    International Nuclear Information System (INIS)

    Crude oil prices climbed to new record levels on fears of a future loss of supplies from Iran as Washington stepped up its efforts to persuade Tehran to abandon its programme to produce nuclear fuel. IPE's December Brent contract set a new record for the exchange by trading at $75.80/bbl on 21st April. On the same day October WTI reached an all-time high of $77.30/bbl on Nymex. US product prices gained as refiners struggled to produce sufficient middle distillate. Alarmed by the rising retail price of gasoline, the US Senate debated a reduction in the already low US tax rate on motor spirit. The House of Representatives passed a measure to prohibit overcharging for petrol, diesel and heating oil, but Democrats rejected a Republican proposal to speed-up the process for approving new refineries. President George W Bush announced a temporary easing of new gasoline and diesel specifications (see 'Focus', March 2006) to allow more fuel to be produced. He also agreed to delay the repayment of some 2.1 mn bbl of crude oil lent to companies after last year's hurricanes from the Strategic Petroleum Reserve. California announced an inquiry into alleged overcharging for fuel by oil companies operating in the state. (author)

  14. Prospects for oil prices

    International Nuclear Information System (INIS)

    As a prelude to drawing conclusions about oil price prospects in the short term, market fundamentals and perceptions are outlined. A net world oil demand growth of close to one million barrels/day above 1991 is expected in 1992. This will result largely in an increased call on OPEC crude oil since supplies from countries outside OPEC are likely to remain static. There is scope for increasing OPEC crude oil production to the necessary level but it will need to be carefully phased with respect to demand in order to avoid a stock overhang which could unsettle the market and undermine OPEC's objective of supporting oil price levels. Market fundamentals, such as production capacity and the revenue needs of the OPEC members, indicate a continuation at least until next year of the basket price in its current relatively narrow range between $15 and $20/bbl, with perhaps some temporary fluctuations. A view of the demand and supply balance during the next few years suggests there is little awaiting beyond the horizon to change this prospect. (UK)

  15. Price Linkage between International Price of Crude Palm Oil (CPO) and Cooking Oil Price in Indonesia

    OpenAIRE

    Rifin, Amzul

    2009-01-01

    Cooking oil in Indonesia is considered to be one of the staple food of Indonesian people. In the beginning of 2008, the price of cooking oil in Indonesia has increased significantly. One of the reasons is the increase of Crude Palm Oil (CPO) price in the international market. The objective of this research is to investigate the impacts of international price of CPO on the domestic price of CPO and cooking oil. Three specific objectives are included (1) To test whether international price of C...

  16. 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.

  17. 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

  18. Marginal-cost pricing for Hydro-Quebec residential customers

    International Nuclear Information System (INIS)

    An option available to governments and to utilities such as Hydro-Quebec for responding to objectives of energy efficiency is the adoption of marginal cost pricing. Compared to currently used price structures, marginal cost pricing will allow improvement of price signals and assure an optimal utilization of the resource. That type of pricing could be economically beneficial but may not be desirable from the point of view of revenue distribution. Taking account of Hydro-Quebec's cost structure, pure marginal cost pricing would generate an income that would be strongly contested on equity grounds. For example, it would raise prices 60% for residential customers. Faced with this possibility, an analysis is presented of the impact of a peak-offpeak pricing (or pure marginal cost pricing) on Hydro-Quebec's residential customer energy bills. The marginal costs of Hydro-Quebec are calculated by the method of Bernard and Chatel (1985) and analysis of the results is based on Friedman and Weare (1993). A sample of 28,417 residential customers from a 1989 Hydro-Quebec survey is used in the study. Two scenarios are analyzed; the first allowing comparison of the energy bill only on the basis of marginal costs and of average costs, and the second allowing comparison of the impact of marginal cost pricing on the total bill. In the first scenario, the impact translates into a 31% increase in energy bills for the entire customer class considered; in addition, this impact is inversely proportional to the revenue class. In the second scenario, the increase is 24%. 33 refs., 10 figs., 53 tabs

  19. Meeting competition through negotiated pricing

    International Nuclear Information System (INIS)

    A fundamental premise of negotiated pricing as a demand-side management (DSM) tool is that price determines cost. As the ultimate objective of energy efficiency is to increase electromotive work while conserving resources, negotiated prices can have a significant impact as a DSM tool to force costs down. Three examples are offered of the effect of negotiated pricing as a DSM tool. The examples are a small hydroelectric company and an electric utility authority owned, a utility-to-customer example of negotiated pricing with the Public Service Company of Oklahoma's (PSO) system, and a large paper mill on PSO's system. Some of the major problems associated with negotiated pricing, outside of the human effort of finding and training knowledgeable and skilled negotiators, are: obtaining enough information about the customer or potential customer to be able to determine that in negotiating prices the utility is not giving away more benefits than the utility will gain; developing a pricing plan that fits both the customer's and utility's existing and potential future mode of operation; assuring that other customers who cannot negotiate on their own behalf are not adversely affected by utility revenue shortfalls; making such negotiated prices available to all similarly situated customers, so as not to inadvertently create unfair competitive advantages among them; and defining the shared benefits before and after the fact as a result of having negotiated prices in the first place

  20. Understanding gasoline pricing in Canada

    International Nuclear Information System (INIS)

    This brochure is designed to help consumers understand how gasoline is priced and explained why prices increase, fluctuate and vary by location, city or region. The price of a litre of gasoline reflects the costs of crude oil, refining, retailing and taxes. Taxes are usually the largest single component of gasoline prices, averaging 40 to 50 per cent of the pump price. The cost of crude oil makes up another 35 to 45 per cent of the price. Refining costs make up 10 to 15 per cent while the remaining 5 to 10 per cent represents retail costs. Gasoline retailers make a profit of about 1 cent per litre. The latest network technology allows national and regional retail chains to constantly monitor price fluctuations to change their prices at gasoline stations at a moments notice to keep up with the competition and to protect their market shares. Several government studies, plus the Conference Board of Canada, have reported that competition is working in favour of Canadian motorists. This brochure also explained the drawbacks of regulating crude and pump prices with the reminder that crude prices were regulated in the 1970s with many negative consequences. 2 tabs., 1 fig

  1. Dynamic Equilibrium Price Index: Asset Price and Inflation

    OpenAIRE

    Hiroshi Shibuya

    1992-01-01

    The purpose of this paper is to develop the theory of dynamic equilibrium price index (DEPI), and to discuss its theoretical as well as policy implications. DEPI is derived from intertemporal optimization and arbitrage equilibrium condition as a weighted geometric mean of product price inflation and asset price inflation. DEPI measures a change in ex ante intertemporal cost of living, which is a more fundamental indicator of inflation and the dynamic state of macroeconomy than conventional pr...

  2. 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...

  3. 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...

  4. 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)

  5. 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.

  6. Pricing information services in a competitive market: avoiding price wars

    OpenAIRE

    Liu, Zhen; Wynter, Laura; Xia, Cathy

    2002-01-01

    In [2], it is shown that pricing of e-services may more often than not lead to ruinous price wars. We show that this undesirable result need not occur, and does not follow in most cases when the model underlying the Nash game is sufficiently general. By adding a Quality of Service (QoS) term to the payoff function of each provider, we analyze resulting price equilibria for a number of different hypotheses on user behavior. Further, we consider both single-tier and two-tier pricing, as practic...

  7. 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

  8. Regulation of electricity prices?

    International Nuclear Information System (INIS)

    In this paper author deals with the regulation of electricity prices in the Slovak Republic. Author contests the social policy of the government through doped prices of electricity. Two thirds of electricity is generated in nuclear power plants in Slovakia. Hence, it is necessary to focus on the solution of problem of nuclear waste. In 2004 Ministry of Economy stated, that the deficit in nuclear fund, from which the country have to fully cover the costs of liquidation and final disposal of nuclear waste, is estimated in the amount of around 89 billion Slovak crowns (≅ 3.7 billion $). From it, so called historical deficit, which originated because of late foundation of fund, represents officially 15 billion Slovak crowns (≅ 0.62 billion $). In Slovakia exists the real risk, that by maintenance of present state by creation and draw of the fund, it will be possible to ensure only 39 per cent of financial sources necessary for full financial handling of the back part of nuclear energetic. Even though the Ministry of Economy in connection with privatisation of Slovenske elektrarne designed to decrease the transfers of operators of nuclear power plants into nuclear fund. In 2006 the Parliament decreased by the law the level of gains of the fund from sale of nuclear electricity (the second from two components of the gains of the fund) from 6.8 to 5.95 per cent from annual revenues. So the tax of forced reduction of the price of nuclear electricity will be represented by loading of the further generations

  9. 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)

  10. 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...

  11. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

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

    2014-01-01

    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...... 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. This...

  12. NUKEM redefines price ranges

    International Nuclear Information System (INIS)

    This article is the December 1993 uranium market summary. A flurry of year-end activity characterized the markets during this period. Twelve deals were concluded; five in the spot concentrates market, one in the medium and long-term market, four in the conversion market, and two in the enrichment market. Total spot volume came to about 1.7 million lbs U3O8 equivalent compared to just 994,000 lbs equivalent in the previous month. The upper end of the restricted price range dipped to $10.00. The lower end of the spot conversion range dropped to $5.35

  13. 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....

  14. Volatility in energy prices

    International Nuclear Information System (INIS)

    This chapter with 58 references reviews the modelling and empirical behaviour of volatility in energy prices. Constant volatility and stochastic volatility are discussed. Markovian models of stochastic volatility are described and the different classes of Markovian stochastic volatility model are examined including auto-regressive volatility, option implied and forecasted volatility, Garch volatility, Egarch volatility, multivariate Garch volatility, and stochastic volatility and dynamic hedging policies. Other volatility models and option hedging are considered. The performance of several stochastic volatility models as applied to heating oil, light oil, natural gas, electricity and light crude oil are compared

  15. Land Prices During Periods of Rapid Change

    OpenAIRE

    Schurle, Bryan; Featherstone, Allen; Wilson, Christine; Crossan, Dylan

    2013-01-01

    Accurate information on land values is a consequential concern when prices are changing rapidly. This study compares USDA data and sales data from 1971-2011. While the land prices from these series move in similar patterns, there are periods of substantial differences. These periods show a pattern where differences are larger when prices are changing rapidly, and where USDA prices lag sales data prices. The spread in prices in sales data is also examined. While the standard deviation of price...

  16. 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...

  17. 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.

  18. Gasoline standard Motor monthly Prices, Projection and Impact, during 1999

    International Nuclear Information System (INIS)

    The liberation of prices for the standard gasoline and ACPM, that was given starting from January of 1.999, it outlines uncertainties on the possible prices evolution, along the supply chain until the final user, in comparison with the system previous of control and adjustment. This article presents an approach to the possible evolution of the gasoline motor prices during 1.999, in their different components. It makes it from the entrance to the producer until when one sells the public to a maximum price that includes the super tax. Additionally, it makes a preliminary calculation of the impact of the prices prospective month to month on the cost of transport of ECOPETROL revenues and the Nation revenues. The prospective annual percentage variation is presented from the entrance to the producer and of the other components of the price of the standard gasoline motor in different scenarios of the rate variation. In the most probable scenario, a variation is expected from the entrance to the producing of 1,9% and an increment in the sale price to the public, without including the super tax, of 12,6%

  19. 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.

  20. 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.

  1. 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.

  2. 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...

  3. Price-Level Computation: Illustrations

    OpenAIRE

    Sydney N. Afriat; Carlo Milana

    2007-01-01

    It has been submitted that, for the very large number of different traditional type formulae to determine price indices associated with a pair of periods, which are joined with the longstanding question of which one to choose, they should all be abandoned. For the method proposed instead, price levels associated with periods are first all computed together, subject to a consistency of the data, and then price indices that are true taken together are determined from their ratios. An approximat...

  4. 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...

  5. 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...

  6. 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...

  7. 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...

  8. Price floors for emissions trading

    OpenAIRE

    Wood, Peter John; Jotzo, Frank

    2009-01-01

    Price floors in greenhouse gas emissions trading schemes can have advantages for technological innovation, price volatility, and management of cost uncertainty. Implementing the schemes, however, has pitfalls. This research report argues that requiring firms to pay an extra fee or tax is the best way to put a price floor in place. As well as providing budgetary advantages, the fee approach is more compatible with international permit trading than the alternative approaches currently dominatin...

  9. 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...

  10. 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...

  11. 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...

  12. 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 ...

  13. 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...

  14. 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....

  15. Export and Import Price Indices

    OpenAIRE

    Jemma Dridi; Kimberly Zieschang

    2004-01-01

    Export and import price indices are essential for assessing the impact of international trade on the domestic economy. Among their most important uses are analyzing developments in the trade balance, measuring foreign prices' contribution to domestic inflation, and deflating nominal values of exports and imports for estimating the volume of gross domestic product. This paper discusses economic concepts for trade price indices at some length. We note the need for reasonably frequent chaining i...

  16. Understanding house-price dynamics

    OpenAIRE

    Makoto Nakajima

    2011-01-01

    For most homeowners, housing is the single most important component of their nonpension wealth. Therefore, a change in house prices greatly affects the total wealth of many households. Furthermore, movements in house prices can affect people’s lives indirectly. For example, the surge in the number of mortgage defaults and foreclosures during the recent recession was triggered in part by a drop in house prices, and this surge damaged the health of the financial institutions that either directl...

  17. Repositioning Dynamics and Pricing Strategy

    OpenAIRE

    Paul B. Ellickson; Misra, Sanjog; Nair, Harikesh S.

    2011-01-01

    We measure the revenue and cost implications to supermarkets of changing their price positioning strategy in oligopolistic downstream retail markets. Our estimates have implications for long-run market structure in the supermarket industry, and for measuring the sources of price rigidity in the economy. We exploit a unique dataset containing the price-format decisions of all supermarkets in the U.S. The data contain the format-change decisions of supermarkets in response to a large shock to t...

  18. Competitive nonlinear pricing and bundling

    OpenAIRE

    Armstrong, Mark; Vickers, John

    2006-01-01

    We examine the impact of multiproduct nonlinear pricing on profit, consumer surplus and welfare in a duopoly. When consumers buy all their products from one firm (the one-stop shopping model), nonlinear pricing leads to higher profit and welfare, but often lower consumer surplus, than linear pricing. By contrast, in a unit-demand model where consumers may buy one product from one firm and another product from another firm, bundling generally acts to reduce profit and welfare and to boost cons...

  19. 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.

  20. Reciprocity, World Prices and Welfare

    DEFF Research Database (Denmark)

    Raimondos-Møller, Pascalis; Woodland, Alan D.

    We examine in detail the circumstances under which reciprocity, as defined in Bagwell and Staiger (1999), leads to fixed world prices. We show that a change of tariffs satisfying reciprocity does not necessarily imply constant world prices in a world of many goods and countries. While it is...... possible to find tariff reforms that are consistent with both reciprocity and constant world prices, these reforms do not follow from the reciprocity condition, but rather from the requirement of unchanged world prices. We propose an alternative reciprocity rule that is guaranteed to raise the welfare of...

  1. 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

  2. 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 ...

  3. 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.

  4. 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.

  5. 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)

  6. 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.

  7. Near-term oil prices

    International Nuclear Information System (INIS)

    This PowerPoint presentation included 36 slides that described the state of oil prices and how to predict them. Prices are random, stochastic, chaotic, mean-reverting and driven by speculators, oil companies and OPEC. The many factors that enable price forecasting are economic growth, weather, industry behaviour, speculators, OPEC policy choices, Mexico/Russia production policy, non-OPEC supply and the interpretation of the above factors by OPEC, speculators, traders and the petroleum industry. Several graphs were included depicting such things as WTI price forecasts, differentials, oil market change in 2001, inventory levels, and WTI backwardation. The presentation provided some explanations for price uncertainties, price surges and collapses. U.S. GDP growth and the volatility of Iraq's production was also depicted. The author predicted that economic growth will occur and that oil demand will go up. Oil prices will fluctuate as the Middle East will be politically unstable and weather will be a major factor that will influence oil prices. The prices are likely to be more volatile than in the 1986 to 1995 period. 2 tabs., 22 figs

  8. Nominal Rigidities and Asset Pricing

    OpenAIRE

    Michael Weber

    2014-01-01

    This paper examines the asset-pricing implications of nominal rigidities. I find that firms that adjust their product prices infrequently earn a cross-sectional return premium of more than 4% per year. Merging confidential product price data at the firm level with stock returns, I document that the premium for sticky-price firms is a robust feature of the data and is not driven by other firm and industry characteristics. The consumption-wealth ratio is a strong predictor of the return differe...

  9. House Prices and Public Debt

    DEFF Research Database (Denmark)

    Gjedsted Nielsen, Mads; Rzeznik, Aleksandra

    house price in the municipality. Furthermore, I document that the aggregate house price loss of 2.1 billion DKK greatly exceeds the increase in public debt of 1 billion DKK. I find that the drop in house prices is sustained 1 year, indicating that the housing market initially overreacts but the......By using the 2002 case of fraud in the Danish municipality Farum by then mayor Peter Brixtofte as an exogenous shock to public debt of 1 billion DKK, I estimate the effect of public debt on house prices. I find that the average home ownership lost about 570,000 DKK or as much as 29% of the average...

  10. 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...

  11. 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...

  12. 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

  13. Storing syngas lowers the carbon price for profitable coal gasification.

    Science.gov (United States)

    Newcomer, Adam; Apt, Jay

    2007-12-01

    Integrated gasification combined cycle (IGCC) electric power generation systems with carbon capture and sequestration have desirable environmental qualities but are not profitable when the carbon dioxide price is less than approximately $50 per metric ton. We examine whether an IGCC facility that operates its gasifier continuously butstores the syngas and produces electricity only when daily prices are high may be profitable at significantly lower CO2 prices. Using a probabilistic analysis, we have calculated the plant-level return on investment (ROI) and the value of syngas storage for IGCC facilities located in the U.S. Midwest using a range of storage configurations. Adding a second turbine to use the stored syngas to generate electricity at peak hours and implementing 12 h of above-ground high-pressure syngas storage significantly increases the ROI and net present value. Storage lowers the carbon price at which IGCC enters the U.S. generation mix by approximately 25%. PMID:18186325

  14. 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.

  15. 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.

  16. 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...

  17. 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...

  18. 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...

  19. 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...

  20. 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...

  1. 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

  2. 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.

  3. 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)

  4. 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.

  5. 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 t...

  6. 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...

  7. 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)

  8. 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...

  9. 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,...

  10. Housing Price Volatility and Econometrics

    Czech Academy of Sciences Publication Activity Database

    Sunega, Petr; Lux, Martin; Zemčík, Petr

    2014-01-01

    Roč. 1, č. 2 (2014), s. 70-78. ISSN 2336-2839 R&D Projects: GA ČR(CZ) GAP404/12/1446 Institutional support: RVO:68378025 ; RVO:67985998 Keywords : econometrics * housing prices * price bubbles Subject RIV: AO - Sociology, Demography

  11. 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?

  12. Roaring Food Prices in India

    OpenAIRE

    Mukherjee , Soumyatanu

    2011-01-01

    In this paper, we try to analyze the possible reasons behind food price hike. The motivation of doing this project is to see the probable reasons, which impact “common people” of India to the utmost extent. We concentrate mainly on the supply side, distribution aspects and the demand side. Checking these aspects we try to see their sensitivity in food prices.

  13. 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

  14. Petroleum prices: the third shock?

    International Nuclear Information System (INIS)

    The present petroleum price increase has conjuncture causes connected with the Iraq war and with political tensions in other countries. Examining the evolution of the main primary energy sources participation share in the world energy matrix, it can be inferred that there also exist structural causes for the oil price increase. (author)

  15. Wavelet Transforms and Commodity Prices

    OpenAIRE

    Connor Jeff; Rossiter Rosemary

    2005-01-01

    Traders in commodity markets may have different time horizons. This paper uses a scale analysis to investigate heterogeneous trading in such markets. Estimates are presented for price correlations by scale and long memory in the volatility of commodity prices. Wavelet variance is estimated using non-decimated wavelet transforms. Wavelets have the potential to be a useful tool for scale analysis in economics.

  16. 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

  17. 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...

  18. 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...

  19. 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.

  20. 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

  1. 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.

  2. 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.

  3. 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

  4. 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)

  5. 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.

  6. 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.

  7. 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.

  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. 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.

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

    Energy Technology Data Exchange (ETDEWEB)

    Soytas, Ugur; Sari, Ramazan [Middle East Technical University, Department of Business Administration, 06531 Ankara (Turkey); Hammoudeh, Shawkat [Drexel University, LeBow College of Business, Philadelphia, PA 19104 (United States); Hacihasanoglu, Erk [Central Bank of the Republic of Turkey, 06100 Ankara (Turkey)

    2009-12-15

    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. (author)

  12. 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. (author)

  13. 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

  14. Reliability Calculations

    DEFF Research Database (Denmark)

    Petersen, Kurt Erling

    1986-01-01

    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....

  15. Explaining Price Dispersion for Homogeneous Grocery Products

    OpenAIRE

    Aalto-Setälä Ville

    2003-01-01

    This study examines the dispersion in prices for homogeneous grocery products, and studies the effect of product characteristics, demographic characteristics of consumers, and market structure on search costs and price dispersion. The findings show that price dispersion is affected by search costs. The variables that increased relative price dispersion the most were low budget share and low price of the product. Demographic characteristics affected price dispersion as well: a high proportion ...

  16. 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...

  17. 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...

  18. 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

  19. 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 some...... 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....

  20. 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 (...

  1. A Model of Add-on Pricing

    OpenAIRE

    Glenn Ellison

    2004-01-01

    This paper develops a model of competitive price discrimination with horizontal and vertical differentiation. The main application is to add-on pricing – advertising low prices for one good in hopes of selling additional products at high prices. Price discrimination is self-reinforcing: the model sometimes has both equilibria in which all firms practice price discrimination and equilibria in which none do. The paper focuses on the Chicago-school argument that profits earned on add-ons will be...

  2. Pricing General Insurance in a Competitive Market

    OpenAIRE

    Burcã Ana-Maria; Bãtrînca Ghiorghe

    2012-01-01

    In insurance industry, the lack of a proper pricing policy will generate suboptimal results. The price has to be competitive and actuarially adequate in order to reflect the dimension of risk. In a competitive market, the pricing policy of insurance companies acquires the capacities of a dynamic process. In this pricing war, the insurance company must analyze each component of pricing. Insurance companies use various statistical methods to set prices, taking in consideration the interaction b...

  3. 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...

  4. 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...

  5. 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...

  6. 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...

  7. 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...

  8. 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...

  9. 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...

  10. 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...

  11. 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 §...

  12. 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...

  13. 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

  14. 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)

  15. 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...

  16. Price and marketing pricing strategies in Slovak retail

    OpenAIRE

    Jaroslava Gburová; Radovan Bačík

    2012-01-01

    The aim of the article is to evaluate the use of marketing pricing strategies of retail chains in branch stores within district towns of Prešov region. Based on the carried out research results, the article highlights not only theoretical, but especially on the practical side of using marketing pricing strategies within the retail chains. Another intention of the article is to point out, that the branch stores of retail chains using lesser-known marketing pricing strategies, which can also be...

  17. Petrol and Crude Oil Prices: Asymmetric Price Transmission

    OpenAIRE

    Wlazlowski, Szymon

    2003-01-01

    This paper examines the relationship between crude oil prices, the dollar-pound exchange rate and petrol prices in the UK over the period 1982-2001. Quantitative methods were used to examine the existence of the long-run equilibrium and test for the presence of asymmetric patterns in the short-run responses to upstream price changes. Also the degree of asymmetry in the adjustment towards long-run equilibrium was analysed. Results confirm that short-run response is greater for increases in ups...

  18. 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

  19. 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.

  20. Construction of Discrete Time Shadow Price

    International Nuclear Information System (INIS)

    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

  1. The price of fuel oil for power generation

    International Nuclear Information System (INIS)

    This study establishes a break-even analysis model for fuel oil generation. The authors calculate the break-even points of the international fuel oil prices for the existing coal-fired power plants, the nuclear power plants and the newly-built coal/oil-fired power plants

  2. 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…

  3. Applying Point Elasticity of Demand Principles to Optimal Pricing in Management Accounting

    Directory of Open Access Journals (Sweden)

    Gareth Wyn Owen

    2012-01-01

    Full Text Available This study applies first principles in micro economics relating to price elasticity of demand to explore a new concept called the price elasticity of contribution to help businesses adopt pricing strategies for the maximisation of contribution. The study derives a new proof for the maximisation of revenue and profit, using the point elasticity of demand equation to simplify the traditional management accounting methodology for algebraically calculating the price at which business revenue and profit are maximised. The study uses one example throughout to demonstrate the proof and to illustrate the concepts introduced.

  4. A comparison of cost-based pricing rules for natural gas distribution utilities

    International Nuclear Information System (INIS)

    Partial-equilibrium social welfare deadweight losses under uniform Ramsey pricing, a cost allocation pricing method, and the actual average revenues by customer class for two natural gas distribution utilities are calculated and compared. Marginal cost estimates are derived from a multiple-output translog variable cost function and used, along with three sets of demand elasticities, to generate the Ramsey prices and welfare losses. The actual and cost-allocation prices are taken directly from rate case files. The largest social welfare losses are associated with the cost-allocation rule, as high as 10-25% of revenue, despite suggestions in the literature to the contrary. (Author)

  5. 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.

  6. 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

  7. 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.

  8. Unionism, Price-Cost Margins, and the Return to Capital

    OpenAIRE

    Richard B. Freeman

    1983-01-01

    This paper examines available industry data on two profitability measures, the price-cost margin and the ratio of quasi-rents to capital, for the purpose of determining the effect of unionism on profits. It finds that unionism reduces profitability and that this effect occurs in highly concentrated industries. The effect of unionism is quite substantial in most calculations, suggesting that the fraction organized in a sector be included in standard Industrial Organization profitability calcul...

  9. 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...

  10. 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...

  11. Discussion: the supply price control

    International Nuclear Information System (INIS)

    Following the paper given by the Director General of the Office of Electricity Regulation (OFFER) at the Centre for the Study of Regulated Industries (CRI) seminar on Regulatory Policy and the Energy Sector held in November 1992, the issue of Supply Price Controls is debated. The role of OFFER as standing between Government and the Regional Electricity Companies is explored in a question and answer session, covering areas such as pool versus, contract prices, market forces, regulatory arrangements for the electricity supply, price discrimination and franchise markets. (UK)

  12. 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...

  13. 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...

  14. Holiday Price Rigidity and Cost of Price Adjustment

    OpenAIRE

    Levy, Daniel; Müller, Georg; Chen, Haipeng (Allan); Bergen, Mark; Dutta, Shantanu

    2009-01-01

    The Thanksgiving-Christmas holiday period is a major sales period for US retailers. Due to higher store traffic, tasks such as restocking shelves, handling customers’ questions and inquiries, running cash registers, cleaning, and bagging, become more urgent during holidays. As a result, the holiday-period opportunity cost of price adjustment may increase dramatically for retail stores, which should lead to greater price rigidity during holidays. We test this prediction using weekly retail sca...

  15. Holiday price regidity and cost of price adjustment

    OpenAIRE

    Levy, Daniel; Müller, Georg; Chen, Haipeng Allan; Bergen, Mark; Dutta, Shantanu

    2008-01-01

    The Thanksgiving-Christmas holiday period is a major sales period for US retailers. Due to higher store traffic, tasks such as restocking shelves, handling customers' questions and inquiries, running cash registers, cleaning, and bagging, become more urgent during holidays. As a result, the holiday-period opportunity cost of price adjustment may increase dramatically for retail stores, which should lead to greater price rigidity during holidays. We test this prediction using weekly retail sca...

  16. 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)

  17. Price Sensitivity of Demand for Prescription Drugs

    DEFF Research Database (Denmark)

    Skipper, Lars; Simonsen, Marianne; Skipper, Niels

    This paper investigates price sensitivity of demand for prescription drugs using drug purchase records for at 20% random sample of the Danish population. We identify price responsiveness by exploiting exogenous variation in prices caused by kinked reimbursement schemes and implement a regression ...... education and income are, however, more responsive to the price. Also, essential drugs that prevent deterioration in health and prolong life have lower associated average price sensitivity.......This paper investigates price sensitivity of demand for prescription drugs using drug purchase records for at 20% random sample of the Danish population. We identify price responsiveness by exploiting exogenous variation in prices caused by kinked reimbursement schemes and implement a regression...... kink design. Thus, within a unifying framework we uncover price sensitivity for different subpopulations and types of drugs. The results suggest low average price responsiveness with corresponding price elasticities ranging from -0.08 to -0.25, implying that demand is inelastic. Individuals with lower...

  18. Natural gas prices

    International Nuclear Information System (INIS)

    Since the 1970s, many electric utilities and industrial boiler fuel users have invested in dual fuel use capability which has allowed them to choose between natural gas, residual fuel oil, and in some instances, coal as boiler fuels. The immediate reason for this investment was the need for security of supply. Wellhead regulation of natural gas prices had resulted in shortages during the 1970s. Because many industrial users were given lowest priority in pipeline curtailments, these shortages affected most severely boiler fuel consumption of natural gas. In addition, foreign supply disruptions during the 1970s called into question the ready availability of oil. Many boiler fuel users of oil responded by increasing their ability to diversify to other sources of energy. Even though widespread investment in dual fuel use capability by boiler fuel users was initially motivated by a need for security of supply, perhaps the most important consequence of this investment was greater substitutability between natural gas and resid and a more competitive boiler fuel market. By the early 1980s, most boiler fuel users were able to switch from one fuel to another and often did for savings measured in pennies per MMBtu. Boiler fuel consumption became the marginal use of both natural gas and resid, with coal a looming threat on the horizon to both fuels

  19. 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.

  20. 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)

  1. 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)

  2. 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.

  3. SPEI Calculator

    OpenAIRE

    Beguería, Santiago; Vicente Serrano, Sergio M.

    2009-01-01

    [EN] *Objectives: The program calculates time series of the Standardised Precipitation-Evapotransporation Index (SPEI). *Technical Characteristics: The program is executed from the Windows console. From an input data file containing monthly time series of precipitation and mean temperature, plus the geographic coordinates of the observatory, the program computes the SPEI accumulated at the time interval specified by the user, and generates a new data file with the SPEI time serie...

  4. 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

  5. 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.

  6. 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...

  7. 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

  8. 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.

  9. Staple food prices in Uganda

    OpenAIRE

    Haggblade, Steven; Dewina, Reno

    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 African Agricultural Marketing Project (AAMP)

  10. Costing and Pricing Information Services.

    Science.gov (United States)

    Virgo, Julie A. C.

    1985-01-01

    Focuses on techniques used to gather data on costs of library and information services. Uses of library cost data are identified, including setting prices for services, making informed management decisions, and communicating with funding agencies. (CLB)

  11. 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)

  12. 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...

  13. 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.

  14. Price of forest chips decreasing

    International Nuclear Information System (INIS)

    Use of forest chips was studied in 1999 in the national Puuenergia (Wood Energy) research program. Wood combusting heating plants were questioned about are the main reasons restricting the increment of the use of forest chips. Heating plants, which did not use forest chips at all or which used less than 250 m3 (625 bulk- m3) in 1999 were excluded. The main restrictions for additional use of forest chips were: too high price of forest chips; lack of suppliers and/or uncertainty of deliveries; technical problems of reception and processing of forest chips; insufficiency of boiler output especially in winter; and unsatisfactory quality of chips. The price of forest chips becomes relatively high because wood biomass used for production of forest chips has to be collected from wide area. Heavy equipment has to be used even though small fragments of wood are processed, which increases the price of chips. It is essential for forest chips that the costs can be pressed down because competition with fossil fuels, peat and industrial wood residues is hard. Low market price leads to the situation in which forest owner gets no price of the raw material, the entrepreneurs operate at the limit of profitability and renovation of machinery is difficult, and forest chips suppliers have to sell the chips at prime costs. Price of forest chips has decreased significantly during the past decade. Nominal price of forest chips is now lower than two decades ago. The real price of chips has decreased even more than the nominal price, 35% during the past decade and 20% during the last five years. Chips, made of small diameter wood, are expensive because the price includes the felling costs and harvesting is carried out at thinning lots. Price is especially high if chips are made of delimbed small diameter wood due to increased the work and reduced amount of chips. The price of logging residue chips is most profitable because cutting does not cause additional costs. Recovery of chips is

  15. 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)

  16. 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.

  17. Marginal Effective Tax Rates On Canadian Rental Housing Investments: an Asset Pricing Model Approach

    OpenAIRE

    Alex S. MacNevin

    1997-01-01

    In this article, the author develops an asset price model framework to calculate Abstract marginal effective tax rates for personal rental housing investments. The model overcomes a number of limitations that arise with the use of traditional marginal effective tax rate (METR) calculations in this context. In particular, the asset pricing model (APM) framework can be used in simulations to derive precise estimates of key endogenous tax parameters that are typically treated as exogenous in sta...

  18. 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...

  19. 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)

  20. 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...