WorldWideScience

Sample records for choice price competition

  1. Market Entry, Product Quality And Price Competition

    Directory of Open Access Journals (Sweden)

    Mathur Sameer

    2015-08-01

    Full Text Available We study an entrant firm’s product quality choice and the price competition arising between the entrant and the incumbent firm. We show that the entrant firm should introduce a relatively higher (lower quality than the incumbent firm when the consumers’ valuation for quality is sufficiently large (small. We also study how the incumbent firm modifies its price in response to the ensuing price competition. We find that the incumbent firm should decrease its price. We also profile how the incumbent firm’s price non-linearly depends on consumers’ valuation for quality.

  2. Transition from monopoly pricing to competitive pricing

    Energy Technology Data Exchange (ETDEWEB)

    Perera, L. [Eastern Energy Ltd., Melbourne, VIC (Australia)

    1995-12-31

    The Victorian Government has embarked on a program to restructure the State electricity supply industry, that will be the precursor to reform throughout the whole of Australia. The Government is depending on competition to drive efficiency improvements to both generation and distribution businesses. Retail pricing will be the key determinant to a future assessment of the success or failure of these reforms. The paper examines electricity pricing before and after the restructuring from the viewpoint of a practitioner at the cutting edge of the reform process. Economic rationale is put forward why the Value Proposition will replace the Cost Recovery basis previously used in electricity pricing. It is concluded that limitations of interstate links will temper intestate competition unless innovative solution can be found. The current method of setting market prices based on a `Pool System` is only efficient if the generators bid their marginal price on a regular basis. In essence the pool replaces the `merit order` previously used to load generators and is basically a scheduling mechanism. Serious consideration needs to be given to the question whether this mechanism should be also setting the price of electricity. (author). 5 tabs.

  3. Pricing effects on food choices.

    Science.gov (United States)

    French, Simone A

    2003-03-01

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

  4. 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...

  5. Competition, cooperation, and collective choice

    DEFF Research Database (Denmark)

    Markussen, Thomas; Reuben Paris, Ernesto Guillermo; Tyran, Jean-Robert Karl

    2014-01-01

    scheme fosters cooperation. Competition is popular, but the electoral outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost always adopted. If likely losers from competition have veto power, it is often not, and substantial gains...

  6. Competition, cooperation, and collective choice

    DEFF Research Database (Denmark)

    Markussen, Thomas; Reuben Paris, Ernesto Guillermo; Tyran, Jean-Robert Karl

    scheme fosters cooperation. Competition is popular but the electoral outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost always adopted. If likely losers from competition have veto power, it is often not, and substantial gains...

  7. Introducing Nonlinear Pricing into Consumer Choice Theory.

    Science.gov (United States)

    DeSalvo, Joseph S.; Huq, Mobinul

    2002-01-01

    Describes and contrasts nonlinear and linear pricing in consumer choice theory. Discusses the types of nonlinear pricing: block-declining tariff, two-part tariff, three-part tariff, and quality discounts or premia. States that understanding nonlinear pricing enhances student comprehension of consumer choice theory. Suggests teaching the concept in…

  8. Price discrimination, entry, and switching costs in network competition

    Directory of Open Access Journals (Sweden)

    Trifunović Dejan

    2016-01-01

    Full Text Available This paper reviews theoretical models of network competition in telecommunications. We will discuss two alternative approaches. The first approach assumes Hoteling’s horizontal differentiation and the second approach is based on switching costs. We will first analyse spatial competition with linear prices and continue with price discrimination between on-net and off-net calls. Price discrimination can also be used to deter entry to the market. We will also deal with the regulator’s optimal choice of access price, which should be designed to induce entry of new firms. Furthermore, pricing of roaming services and the switching cost approach to network competition will be considered. Finally, we will illustrate the theoretical results with data from the Serbian mobile and fixed telephony market.

  9. Consumer food choices: the role of price and pricing strategies.

    Science.gov (United States)

    Steenhuis, Ingrid H M; Waterlander, Wilma E; de Mul, Anika

    2011-12-01

    To study differences in the role of price and value in food choice between low-income and higher-income consumers and to study the perception of consumers about pricing strategies that are of relevance during grocery shopping. A cross-sectional study was conducted using structured, written questionnaires. Food choice motives as well as price perceptions and opinion on pricing strategies were measured. The study was carried out in point-of-purchase settings, i.e. supermarkets, fast-food restaurants and sports canteens. Adults (n 159) visiting a point-of-purchase setting were included. Price is an important factor in food choice, especially for low-income consumers. Low-income consumers were significantly more conscious of value and price than higher-income consumers. The most attractive strategies, according to the consumers, were discounting healthy food more often and applying a lower VAT (Value Added Tax) rate on healthy food. Low-income consumers differ in their preferences for pricing strategies. Since price is more important for low-income consumers we recommend mainly focusing on their preferences and needs.

  10. Location-Price Competition in Airline Networks

    Directory of Open Access Journals (Sweden)

    H. Gao

    2014-01-01

    Full Text Available This paper addresses location-then-price competition in airline market as a two-stage game of n players on the graph. Passenger’s demand distribution is described by multinomial logit model. Equilibrium in price game is computed through best response dynamics. We solve location game using backward induction, knowing that airlines will choose prices from equilibrium for the second-stage game. Some numerical results for airline market under consideration are presented.

  11. Price Prediction in a Trading Agent Competition

    CERN Document Server

    Lochner, K M; Vorobeychik, Y; Wellman, M P; 10.1613/jair.1333

    2011-01-01

    The 2002 Trading Agent Competition (TAC) presented a challenging market game in the domain of travel shopping. One of the pivotal issues in this domain is uncertainty about hotel prices, which have a significant influence on the relative cost of alternative trip schedules. Thus, virtually all participants employ some method for predicting hotel prices. We survey approaches employed in the tournament, finding that agents apply an interesting diversity of techniques, taking into account differing sources of evidence bearing on prices. Based on data provided by entrants on their agents' actual predictions in the TAC-02 finals and semifinals, we analyze the relative efficacy of these approaches. The results show that taking into account game-specific information about flight prices is a major distinguishing factor. Machine learning methods effectively induce the relationship between flight and hotel prices from game data, and a purely analytical approach based on competitive equilibrium analysis achieves equal ac...

  12. The International oil price and hydrogen competitiveness

    OpenAIRE

    Hansen, Anders Chr.

    2007-01-01

    Natural gas based hydrogen is expected to provide most of the hydrogen supply in the period prior to and during at least the first years of market introduction of automotive hydrogen and fuel cell technology in large scale. Due to the natural gas price dependency of the international oil price the hydrogen cost level that is required for competitiveness of hydrogen and fuel cell technology depends on the oil price. This gives rise to the question: At which oil price will natural gas based ...

  13. Firm competition in a probabilistic framework of consumer choice

    Science.gov (United States)

    Liao, Hao; Xiao, Rui; Chen, Duanbing; Medo, Matúš; Zhang, Yi-Cheng

    2014-04-01

    We develop a probabilistic consumer choice framework based on information asymmetry between consumers and firms. This framework makes it possible to study market competition of several firms by both quality and price of their products. We find Nash market equilibria and other optimal strategies in various situations ranging from competition of two identical firms to firms of different sizes and firms which improve their efficiency.

  14. Competitive pricing and the challenge of cost control in medicare.

    Science.gov (United States)

    Coulam, Robert F; Feldman, Roger D; Dowd, Bryan E

    2011-08-01

    The Medicare program faces a serious challenge: it must find ways to control costs but must do so through a system of congressional oversight that necessarily limits its choices. We look at one approach to prudent purchasing - competitive pricing - that Medicare has attempted many times and in various ways since the beginning of the program, and in all but one case unsuccessfully due to the politics of provider opposition working through Congress and the courts. We look at some related efforts to change Medicare pricing to explore when the program has been successful in making dramatic changes in how it pays for health care. A set of recommendations emerges for ways to respond to the impediments of law and politics that have obstructed change to more efficient payment methods. Except in unusual cases, competitive pricing threatens too many stakeholders in too many ways for key political actors to support it. But an unusual case may arise in the coming Medicare fiscal crisis, a crisis related in part to the prices Medicare pays. At that point, competitive pricing may look less like a problem and more like a solution coming at a time when the system badly needs one.

  15. Multimarket Competition and Welfare Effects of Price discrimination

    OpenAIRE

    Aguirre Pérez, Iñaki

    2011-01-01

    The paper investigates the effects on welfare of price discrimination when a multimarket seller faces competition in one of its two markets. With respect to uniform pricing, price discrimination changes competition in such a way, that even with linear demands, price discrimination can be welfare-improving, both under strategic substitutes and strategic complements.

  16. Assessing Unit-Price Related Remifentanil Choice in Rhesus Monkeys

    Science.gov (United States)

    Galuska, Chad M.; Winger, Gail; Woods, James H.; Hursh, Steven R.

    2006-01-01

    Given a commodity available at different prices, a unit-price account of choice predicts preference for the cheaper alternative. This experiment determined if rhesus monkeys preferred remifentanil (an ultra-short-acting [mu]-opioid agonist) delivered at a lower unit price over a higher-priced remifentanil alternative (Phases 1 and 3). Choice…

  17. On three-level problem of competitive pricing

    Science.gov (United States)

    Plyasunov, A.; Panin, A.

    2016-10-01

    We propose a new pricing model that are designed for the study of competitive pricing. As pricing strategies we use the uniform and discriminatory pricing. We formulate the model as a three-level quadratic programming problem with integer and boolean variables. To solve few cooperative formulations of this model we develop polynomial-time algorithms.

  18. A price adjustment process in a model of monopolistic competition

    NARCIS (Netherlands)

    J. Tuinstra

    2004-01-01

    We consider a price adjustment process in a model of monopolistic competition. Firms have incomplete information about the demand structure. When they set a price they observe the amount they can sell at that price and they observe the slope of the true demand curve at that price. With this informat

  19. Price vs. quantity competition in a vertically related market

    OpenAIRE

    Alipranti, Maria; Milliou, Chrysovalantou; Petrakis, Emmanuel

    2014-01-01

    This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are reversed in a vertically related market with upstream monopoly and trading via two-part tariffs. In such a market, downstream Cournot competition yields higher output, lower wholesale prices, lower final prices, higher consumers' surplus, and higher total welfare than Bertrand competition.

  20. [Competition and prices in the Mexican pharmaceutical market].

    Science.gov (United States)

    Molina-Salazar, Raúl E; González-Marín, Eloy; Carbajal-de Nova, Carolina

    2008-01-01

    The forms of market competition define prices. The pharmaceutical market contains submarkets with different levels of competition; on the one hand are the innovating products with patents, and on the other, generic products with or without trade names. Innovating medicines generally have monopolistic prices, but when the patents expire prices drop because of competition from therapeutic alternatives. The trade name makes it easier to maintain monopolistic prices. In Mexico, medicine prices in the private market are high--according to aggregated estimates and prices for specific medicines--which reflect the limitations of pharmaceutical market competition and the power of the trade name. The public segment enjoys competitive prices using the WHO strategy for essential medicines on the basis of the Essential List.

  1. Impact of European pharmaceutical price regulation on generic price competition: a review.

    Science.gov (United States)

    Puig-Junoy, Jaume

    2010-01-01

    Although economic theory indicates that it should not be necessary to intervene in the generic drug market through price regulation, most EU countries intervene in this market, both by regulating the maximum sale price of generics (price cap) and by setting the maximum reimbursement rate, especially by means of reference pricing systems. We analyse current knowledge of the impact of direct price-cap regulation of generic drugs and the implementation of systems regulating the reimbursement rate, particularly through reference pricing and similar tools, on dynamic price competition between generic competitors in Europe. A literature search was carried out in the EconLit and PubMed databases, and on Google Scholar. The search included papers published in English or Spanish between January 2000 and July 2009. Inclusion criteria included that studies had to present empirical results of a quantitative nature for EU countries of the impact of price capping and/or regulation of the reimbursement rate (reference pricing or similar systems) on price dynamics, corresponding to pharmacy sales, in the generic drug market. The available evidence indicates that price-cap regulation leads to a levelling off of generic prices at a higher level than would occur in the absence of this regulation. Reference pricing systems cause an obvious and almost compulsory reduction in the consumer price of all pharmaceuticals subject to this system, to a varying degree in different countries and periods, the reduction being greater for originator-branded drugs than for generics. In several countries with a reference pricing system, it was observed that generics with a consumer price lower than the reference price do not undergo price reductions until the reference price is reduced, even when there are other lower-priced generics on the market (absence of price competition below the reference price). Beyond the price reduction forced by the price-cap and/or reference pricing regulation itself

  2. Price regulation and generic competition in the pharmaceutical market.

    Science.gov (United States)

    Dalen, Dag Morten; Strøm, Steinar; Haabeth, Tonje

    2006-09-01

    In March 2003 the Norwegian government implemented yardstick-based price regulation schemes on a selection of drugs subjected to generic competition. The retail price cap, termed the "index price," on a drug (chemical substance) was set equal to the average of the three lowest producer prices on that drug, plus a fixed wholesale and retail margin. This is supposed to lower barriers of entry for generic drugs and to trigger price competition. Using monthly data over the period 1998-2004 for the six drugs (chemical entities) included in the index price system, we estimate a structural model enabling us to examine the impact of the reform on both demand and market power. Our results suggest that the index price helped to increase the market shares of generic drugs and succeeded in triggering price competition.

  3. Does Competition Have an Effect on Price and Quality in Physiotherapy?

    Science.gov (United States)

    Pekola, Piia; Linnosmaa, Ismo; Mikkola, Hennamari

    2016-09-13

    We estimate the effect of competition on quality and prices in physiotherapy organised and financed by the Social Insurance Institution of Finland for disabled individuals. Within the physiotherapy market, firms participate in competitive bidding, prices are determined by the market, services are free at the point of use and firms are allowed to react to patient choice only by enhancing quality. Firm-level data (n = 854) regarding quality and price were analysed. Using 2SLS estimation techniques, we analysed the relationship between quality and competition, and price and competition. Our study found that competition has a negative (yet weak) effect on quality. Prices on the other hand are not affected by competition. The result is likely caused by imperfect information, because it seems that the Social Insurance Institution of Finland has provided too little information for patients to make adequate choices about proper service providers. We argue that by publishing quality information, it is possible to ease the decision-making of patients and influence the quality strategies of firms active in the physiotherapy market. Moreover, we found that competition appeared as an exogenous variable in this study. Copyright © 2016 John Wiley & Sons, Ltd.

  4. The Price Normalization Problem in Imperfect Competition and the Objective of the Firm

    DEFF Research Database (Denmark)

    Dierker, Egbert; Grodal, Birgit

    of the shareholders. This problem is overcome by relating the profits of a firm to the aggregate demand of its shareholders. We propose a definition of the objective of a firm, called maximization of shareholders' real wealth, which does not depend on any price normalizaion. Real wealth maxima are shown to exist......General equilibrium models of oligopolistic competition give rise to relative prices only without determining the price level. It is well known that the choice of a numéraire or, more generally, of a normalization rule converting relative prices into absolute prices entails drastic consequences...... for the Nash equilibria. In this paper we show that, given a firm has chosen a particular profit function as its objective, profit maximization can be expressed in such a way that it depends on relative prices only. However, the choice of such an objective function need not be in the interest...

  5. Price competition, short-termism and environmental performance

    NARCIS (Netherlands)

    Graafland, Johan

    2016-01-01

    This paper studies the relationships between the intensity of price competition, time horizon and environmental performance. We hypothesize that more intense price competition discourages environmental performance by inducing short-termism in companies.We test the hypotheses on a sample of 3152 comp

  6. 24. Pricing in Bertrand competition with increasing marginal costs

    NARCIS (Netherlands)

    Abbink, K.; Brandts, J.

    2008-01-01

    Bertrand competition under decreasing returns involves a wide interval of pure strategy Nash equilibrium prices. We first present results of experiments in which two, three and four identical firms repeatedly interact in this environment. More firms lead to lower average prices. However, prices rema

  7. Price-Value Potential for Near-Perfectly Competitive Markets

    Directory of Open Access Journals (Sweden)

    Sergey K. Aityan

    2011-01-01

    Full Text Available This study introduces price-value potential to be used instead of price for market analysis by analogy with free energy or thermodynamic potential in physics. A conservation principle is proposed for price-value potential. It is shown that price-value potential provides a constructive way for market analysis by identifying variation of equilibrium prices and quantities for different products in market equilibrium. A perturbation theory for a group of products with small differentiations on near-perfectly competitive markets was developed for illustration of the approach. The concept of price-value potential is illustrated in a simple example of a near-perfectly competitive market. It is shown that the equilibrium prices and quantities for products differ due to product differentiation that makes such an approach a constructive enhancement to the classical model of perfect competition.

  8. Competition and the Reference Pricing Scheme for pharmaceuticals.

    Science.gov (United States)

    Ghislandi, Simone

    2011-12-01

    By introducing n (>1) firms with infinite cross-price elasticity (i.e. generic drugs), we explore the effects of competition on the optimal pricing strategies under a Reference Pricing Scheme (RPS). A two-stage model repeated infinite number of times is presented. When stage 1 is competitive, the equilibrium in pure strategies exists and is efficient only if the reference price (R) does not depend on the price of the branded product. When generics collude, the way R is designed is crucial for both the stability of the cartel among generics and the collusive prices in equilibrium. An optimally designed RPS must set R as a function only of the infinitely elastic side of the market and should provide the right incentives for competition.

  9. Oligopolistic Competition in Price and Quality

    NARCIS (Netherlands)

    A. Dubovik (Andrei); M.C.W. Janssen (Maarten)

    2008-01-01

    textabstractWe consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know neither. We show that two types of signalling

  10. Oligopolistic Competition in Price and Quality

    NARCIS (Netherlands)

    A. Dubovik (Andrei); M.C.W. Janssen (Maarten)

    2008-01-01

    textabstractWe consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know neither. We show that two types of signalling

  11. Price regulation and generic competition in the pharmaceutical market

    OpenAIRE

    Dalen, Dag Morten; Strøm, Steinar; Haabeth, Tonje

    2009-01-01

    In March 2003 the Norwegian government implemented yardstick based price regulation schemes on a selection of drugs experiencing generic competition. The retail price cap, termed “index price”, on a drug (chemical substance) was set equal to the average of the three lowest producer prices on that drug, plus a fixed wholesale and retail margin. This is supposed to lower barriers of entry for generic drugs and to trigger price competition. Using monthly data over the period 1998-2004 for the 6 ...

  12. INCOME AND PRICE AS A BARRIER TO ORGANIC FOOD CHOICE

    OpenAIRE

    Aschemann-Witzel, Jessica; Zielke, Stephan; Thøgersen, John

    2014-01-01

    From the barriers said to potentially hamper the further development of the sector, the consumer demand side and herein the high prices are handled as crucial. We reviewed the literature since 2000 regarding the role of perceived price and income. We find that self-report based studies nearly unequivocally find price is the primary barrier to choice, deviations from this appear to occur when researching organic consumers and developed organic markets. There are mixed findings regarding income...

  13. Price competition, level-k theory and communication

    DEFF Research Database (Denmark)

    Wengström, Erik Roland

    2008-01-01

    This paper analyzes communication in a price competition game using the level-$k$ theory of bounded rationality. The level-k analysis predicts prices to be higher with communication than without. Our experimental evidence lends support to the view that communication affects subjects in a way...... the behavior of the level-0 players....

  14. Analysis of electricity price in Danish competitive electricity market

    DEFF Research Database (Denmark)

    Hu, Weihao; Chen, Zhe; Bak-Jensen, Birgitte

    2012-01-01

    electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price (both the spot price and the regulation price), the consumption and the wind power generation...... in an electricity market is investigated in this paper. The spot price and the regulation price generally decrease when the wind power penetration in the power system increases or the consumption of the power system decreases. The statistical characteristics of the spot price and the regulation price for different...... consumption periods and wind power penetration are analyzed. Simulation results show that the findings of this paper are useful for wind power generation companies to make the optimal bidding strategy so that the imbalance cost of trading wind power on the electricity market could be reduced....

  15. Pricing local distribution services in a competitive market

    Energy Technology Data Exchange (ETDEWEB)

    Duann, D.J.

    1995-12-01

    Unbundling and restructuring of local distribution services is the focus of the natural gas industry. As a result of regulatory reforms, a competitive local distribution market has emerged, and the validity of traditional cost-based regulation is being questioned. One alternative is to completely unbundle local distribution services and transform the local distribution company into a common carrier for intrastate transportation services. Three kinds of alternative pricing mechanisms are examined. For firm intrastate transportation services, cost-based pricing is the preferred method unless it can be shown that a competitive secondary market can be established and maintained. Pricing interruptible transportation capacity is discussed.

  16. Budget Constraints Affect Male Rats’ Choices between Differently Priced Commodities

    Science.gov (United States)

    Kalenscher, Tobias

    2015-01-01

    Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal consumers, as demand theory predicts different elasticities for both conditions. However, in these studies, demand elasticity was only evaluated over the entirety of choices made from a budget. As compensating budgets changes the number of attainable commodities relative to uncompensated conditions, and thus the number of choices, it remained unclear whether budget compensation has a trivial effect on demand elasticity by simply sampling from a different total number of choices or has a direct effect on consumers’ sequential choice structure. If the budget context independently changes choices between commodities over and above price effects, this should become apparent when demand elasticity is assessed over choice sets of any reasonable size that are matched in choice opportunities between budget conditions. To gain more detailed insight in the sequential choice dynamics underlying differences in demand elasticity between budget conditions, we trained N=8 rat consumers to spend a daily budget by making a number of nosepokes to obtain two liquid commodities under different price regimes, in sessions with and without budget compensation. We confirmed that demand elasticity for both commodities differed between compensated and uncompensated budget conditions, also when the number of choices considered was matched, and showed that these elasticity differences emerge early in the sessions. These differences in demand elasticity were driven by a higher choice rate and an increased reselection bias for the preferred commodity in compensated compared to uncompensated budget

  17. Budget Constraints Affect Male Rats' Choices between Differently Priced Commodities.

    Science.gov (United States)

    van Wingerden, Marijn; Marx, Christine; Kalenscher, Tobias

    2015-01-01

    Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal consumers, as demand theory predicts different elasticities for both conditions. However, in these studies, demand elasticity was only evaluated over the entirety of choices made from a budget. As compensating budgets changes the number of attainable commodities relative to uncompensated conditions, and thus the number of choices, it remained unclear whether budget compensation has a trivial effect on demand elasticity by simply sampling from a different total number of choices or has a direct effect on consumers' sequential choice structure. If the budget context independently changes choices between commodities over and above price effects, this should become apparent when demand elasticity is assessed over choice sets of any reasonable size that are matched in choice opportunities between budget conditions. To gain more detailed insight in the sequential choice dynamics underlying differences in demand elasticity between budget conditions, we trained N=8 rat consumers to spend a daily budget by making a number of nosepokes to obtain two liquid commodities under different price regimes, in sessions with and without budget compensation. We confirmed that demand elasticity for both commodities differed between compensated and uncompensated budget conditions, also when the number of choices considered was matched, and showed that these elasticity differences emerge early in the sessions. These differences in demand elasticity were driven by a higher choice rate and an increased reselection bias for the preferred commodity in compensated compared to uncompensated budget conditions

  18. Budget Constraints Affect Male Rats' Choices between Differently Priced Commodities.

    Directory of Open Access Journals (Sweden)

    Marijn van Wingerden

    Full Text Available Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal consumers, as demand theory predicts different elasticities for both conditions. However, in these studies, demand elasticity was only evaluated over the entirety of choices made from a budget. As compensating budgets changes the number of attainable commodities relative to uncompensated conditions, and thus the number of choices, it remained unclear whether budget compensation has a trivial effect on demand elasticity by simply sampling from a different total number of choices or has a direct effect on consumers' sequential choice structure. If the budget context independently changes choices between commodities over and above price effects, this should become apparent when demand elasticity is assessed over choice sets of any reasonable size that are matched in choice opportunities between budget conditions. To gain more detailed insight in the sequential choice dynamics underlying differences in demand elasticity between budget conditions, we trained N=8 rat consumers to spend a daily budget by making a number of nosepokes to obtain two liquid commodities under different price regimes, in sessions with and without budget compensation. We confirmed that demand elasticity for both commodities differed between compensated and uncompensated budget conditions, also when the number of choices considered was matched, and showed that these elasticity differences emerge early in the sessions. These differences in demand elasticity were driven by a higher choice rate and an increased reselection bias for the preferred commodity in compensated compared to

  19. Assessment of emission trading impacts on competitive electricity market price

    DEFF Research Database (Denmark)

    Singh, S.N.; Saxena, D.; Østergaard, Jacob

    2011-01-01

    analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism. Findings - It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed...... side emission trading impact on electricity prices in the competitive power market. Design/methodology/approach - Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper...... with a special emphasis on the European market. Research limitations/implications - Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic. Originality/value - The emission trading impacts are analyzed on a simple example....

  20. Competitive electricity markets, prices and generator entry and exit

    Science.gov (United States)

    Ethier, Robert George

    The electric power industry in the United States is quickly being deregulated and restructured. In the past, new electric generation capacity was added by regulated utilities to meet forecasted demand levels and maintain reserve margins. With competitive wholesale generation, investment will be the responsibility of independent private investors. Electricity prices will assume the coordinating function which has until recently been the responsibility of regulatory agencies. Competitive prices will provide the entry and exit signals for generators in the future. Competitive electricity markets have a distinctive price formation process, and thus require a specialized price model. A mean-reverting price process with stochastic jumps is proposed as an appropriate long-run price process for annual electricity prices. This price process is used to develop an analytic real options model for private investment decisions. The required recursive infinite series solutions have not been widely used for real option models. Entry thresholds and asset values for competitive wholesale electricity markets, and exit decisions for plants with significant retirement costs (i.e. nuclear power plants), are examined. The proposed model results in significantly lower trigger prices for both entry and exit decisions, and higher asset values, when compared with other standard models. The model is used to show that the incentives for retiring a nuclear plant are very sensitive to the treatment of decommissioning costs (e.g. if plant owners do not face full decommissioning costs, retirement decisions may be economically premature.) An econometric model of short-run price behavior is estimated by the method of maximum likelihood using daily electricity prices from markets in the USA and Australia. The model specifies two mean reverting price processes with stochastic Markov switching between the regimes, which allows discontinuous jumps in electricity prices. Econometric tests show that a two

  1. Common consequence effects in pricing and choice

    NARCIS (Netherlands)

    Schmidt, U.; Trautmann, S.T.

    2014-01-01

    This paper presents an experimental study of common consequence effects in binary choice, willingness-to-pay (WTP) elicitation, and willingness-to-accept (WTA) elicitation. We find strong evidence in favor of the fanning out hypothesis (Machina, Econometrica 50:277–323, 1982) for both WTP and WTA. I

  2. The effects of electricity pricing on PHEV competitiveness

    Energy Technology Data Exchange (ETDEWEB)

    Huang Shisheng; Hodge, Bri-Mathias S. [School of Chemical Engineering, Purdue University, 480 Stadium Mall Drive, West Lafayette, IN 47907 (United States); Taheripour, Farzad [Department of Agricultural Economics, Purdue University, 403W State Street, West Lafayette, IN 47907 (United States); Pekny, Joseph F.; Reklaitis, Gintaras V. [School of Chemical Engineering, Purdue University, 480 Stadium Mall Drive, West Lafayette, IN 47907 (United States); Tyner, Wallace E., E-mail: wtyner@purdue.ed [Department of Agricultural Economics, Purdue University, 403W State Street, West Lafayette, IN 47907 (United States)

    2011-03-15

    Plug-in hybrid electric vehicles (PHEVs) will soon start to be introduced into the transportation sector, thereby raising a host of issues related to their use, adoption and effects on the electricity sector. Their introduction has the potential to significantly reduce carbon emissions from the transportation sector, which has led to government policies aimed at easing their introduction. If their widespread adoption is set as a target it is imperative to consider the effects of existing policies that may increase or decrease their adoption rate. In this study, we present a micro level electricity demand model that can gauge the effects of PHEVs on household electricity consumption and the subsequent economic attractiveness of the vehicles. We show that the electricity pricing policy available to the consumer is a very significant factor in the economic competitiveness of PHEVs. Further analysis shows that the increasing tier electricity pricing system used in California will substantially blunt adoption of PHEVs in the state; and time of use electricity pricing will render PHEVs more economically attractive in any state. - Research highlights: {yields} The effect of the California tiered electricity pricing is to render the PHEV uneconomic. {yields} The unintended consequence of tiered pricing is to make the PHEV unattractive to consumers. {yields} PHEVs will be more attractive in states with low electricity prices and flat rate pricing. {yields} Time of day pricing helps make PHEVs more attractive. {yields} PHEVs are not economically competitive either with a similar gasoline vehicle or Prius hybrid.

  3. Do higher-priced generic medicines enjoy a competitive advantage under reference pricing?

    Science.gov (United States)

    Puig-Junoy, Jaume

    2012-11-01

    In many countries with generic reference pricing, generic producers and distributors compete by means of undisclosed discounts offered to pharmacies in order to reduce acquisition costs and to induce them to dispense their generic to patients in preference over others. The objective of this article is to test the hypothesis that under prevailing reference pricing systems for generic medicines, those medicines sold at a higher consumer price may enjoy a competitive advantage. Real transaction prices for 179 generic medicines acquired by pharmacies in Spain have been used to calculate the discount rate on acquisition versus reimbursed costs to pharmacies. Two empirical hypotheses are tested: the discount rate at which pharmacies acquire generic medicines is higher for those pharmaceutical presentations for which there are more generic competitors; and, the discount rate at which pharmacies acquire generic medicines is higher for those pharmaceutical forms for which the consumer price has declined less in relation to the consumer price of the brand drug before generic entry (higher-priced generic medicines). An average discount rate of 39.3% on acquisition versus reimbursed costs to pharmacies has been observed. The magnitude of the discount positively depends on the number of competitors in the market. The higher the ratio of the consumer price of the generic to that of the brand drug prior to generic entry (i.e. the smaller the price reduction of the generic in relation to the brand drug), the larger the discount rate. Under reference pricing there is intense price competition among generic firms in the form of unusually high discounts to pharmacies on official ex-factory prices reimbursed to pharmacies. However, this effect is highly distorting because it favours those medicines with a higher relative price in relation to the brand price before generic entry.

  4. Killing Two Birds with One Stone: Can Real-Time Pricing SupportRetail Competition and Demand Response?

    Energy Technology Data Exchange (ETDEWEB)

    Barbose, Galen; Bharvirkar, Ranjit; Goldman, Charles; Hopper,Nicole; Neenan, Bernie

    2006-04-25

    As retail choice states reach the end of their transitional, rate-cap periods, state regulators must decide what type of default supply service to provide to customers that have not switched to a competitive retail supplier. In a growing number of states, regulators have adopted real-time pricing (RTP) as the default service for large commercial and industrial (C&I) customers. Although this trend is driven chiefly by policy objectives related to retail competition, default service RTP may have the added benefit of stimulating demand response. To evaluate the potential role of RTP as a means to both ends--retail market development and demand response--we conducted a comprehensive review of experience with default RTP in the U.S. and examined the emergence of RTP as a product offering by competitive retail suppliers. Across the ten utilities with default RTP in place in 2005, between 5% and 35% of the applicable load remained on the rate. Based on interviews with competitive retailers, we find evidence to suggest that a comparable amount of load in these states has switched to hourly pricing arrangements with competitive retailers. Many customers on default or competitive hourly pricing are paying prices indexed to the real-time spot market, and thus have no advance knowledge of prices. Because the price responsiveness of customers under these conditions has yet to be formally analyzed, and relatively few efforts have been undertaken to help these customers become price responsive, the actual demand response impacts from hourly pricing in retail choice states remains largely an open question. However, we find that policymakers and other stakeholders in retail choice states have various strategies at their disposal to capture the potential demand response benefits from hourly pricing, while simultaneously supporting retail competition.

  5. Pricing Multi-play Offers under Uncertainty and Competition

    OpenAIRE

    Hélène, Le Cadre

    2007-01-01

    In a mature market, telecommunication operators try to differentiate themselves by marketing bundles offers. In this highly competitive context, operators should anticipate the strategies of their adversaries and guess the consumers' tastes, to maximize their benefits. To price their offers, operators have to deal with deep uncertainties on the other operators' cost structures, strategies, and on the consumers' preferences. We segment the market and estimate the consumers' subjective prices, ...

  6. ASPECTS OF REGIONAL COMPETITIVENESS THROUGH DYNAMIC PRICES OF PETROLEUM PRODUCTS

    Directory of Open Access Journals (Sweden)

    Daniela\tENACHESCU

    2015-06-01

    Full Text Available This paper presents aspects regarding the dynamics of prices of petroleum products: gasoline and diesel in Romania in the period 2003(2007-2014. Both focus on relationship-price raw material and finished product by the impact of market prices. Given that the price of fuel is a key factor in economic development but also in the living of population, this paper has proposed to analyze some aspects of the dynamics of prices of petroleum products in correlation with commodity prices in a competitive market in 2003 -2014. In the analized period, price of oil barrel has a dynamics substantially influenced by the global political turbulences but also by lower oil demand due to consumption reduction, especially lately. Increases and decreases were abrupt and unpredictable in the early years of the first decade of the XXI century. Political crises in the Middle East, the economic crisis started in 2007 and especially the crisis in Ukraine and policies adopted by the EU and the US have led to extremely large fluctuations in oil prices from one period to another . This dynamic will only cover the price of petroleum products namely gazoline and diesel for vehicles.

  7. ON PRICE CHOICE AT SELLING OF INFORMATION RESOURCES

    Directory of Open Access Journals (Sweden)

    O. S. Ivanova

    2015-05-01

    Full Text Available The paper considers the problem of the pricing policy determination in the company, selling information resource at the market. The problem of the optimal price determination for an information resource is solved depending on the time for the case when the seller-company has no competitors in the market, the market is saturated, and buyers are not able to further spread of the resource. Conditions for the optimal choice of information resource price have been obtained; the maximum possible income of the company has been calculated for linear demand function, and conditions, determining the duration and volume of sales, providing the maximum of average income of the company, have been obtained as well. The problem of optimal price choice is solved by macrosystem approach that has made it possible to reduce it to the isoperimetric kind. It is shown that the optimal price dependence on time for a linear demand function should provide a linearly increasing rate of sales. Conditions have been derived under which the sales proceedings for an information resource are positive, relationship is determined between volume of sales and timeline at which the average income during the sales reaches its maximum. The results are given in dimensionless form, thereby reducing the number of independent parameters. These results are usable for the pricing analysis of software and other information products.

  8. Competition and quality in a physiotherapy market with fixed prices.

    Science.gov (United States)

    Pekola, Piia; Linnosmaa, Ismo; Mikkola, Hennamari

    2017-01-01

    Our study focuses on competition and quality in physiotherapy organized and regulated by the Social Insurance Institution of Finland (Kela). We first derive a hypothesis with a theoretical model and then perform empirical analyses of the data. Within the physiotherapy market, prices are regulated by Kela, and after registration eligible firms are accepted to join a pool of firms from which patients choose service providers based on their individual preferences. By using 2SLS estimation techniques, we analyzed the relationship among quality, competition and regulated price. According to the results, competition has a statistically significant (yet weak) negative effect (p = 0.019) on quality. The outcome for quality is likely caused by imperfect information. It seems that Kela has provided too little information for patients about the quality of the service.

  9. Duopoly price competition on markets with agricultural products

    Directory of Open Access Journals (Sweden)

    Marie Prášilová

    2011-01-01

    Full Text Available A situation, in which two firms compete, is in the economic theory described by duopoly models. Market equilibrium on the duopoly market is formed in a reciprocal adjustment process of market prices and materialized market opportunities. The goal of the analysis is to find out whether the agricultural products market is significantly influenced by appearance of duopolies, what form they have and if they can fundamentally influence the price level of food. That food chain stores endeavour to mutually adapt food product prices is generally known; it is set especially by the inelastic demand for the mentioned goods on the side of consumers, i.e., by the need to demand basic food. Duopoly reactions to price competition in food chain stores are particularly strong in the case of commodities of milk and tomatoes, where the reactions and approximation of prices can be clearly seen. Based on statistical research it is obvious that the reactions are most reflected on sales of the food chain stores Billa and Albert. To identify specific reactions of price duopoly at retail chains the ANOVA statistical method was used. The firm’s duopoly behaviour as such on the food market need not be a subject for applying punishment from the antimonopoly bureau, if it does not have the cartel agreement character. An example can be the identical potato prices inquiry in the supermarkets of food chain stores.

  10. Price competition, level-k theory and communication

    DEFF Research Database (Denmark)

    Wengström, Erik Roland

    2008-01-01

    This paper analyzes communication in a price competition game using the level-$k$ theory of bounded rationality. The level-k analysis predicts prices to be higher with communication than without. Our experimental evidence lends support to the view that communication affects subjects in a way...... that is compatible with the level-k model, indicating that people lie in order to fool other players that they believe do less thinking. Moreover, the results indicate that the predictive power of the level-k model does crucially depend on the possibility for high level players to form homogenous beliefs about...

  11. Price Paradox and Strategic Choice of "Vegetable Basket" in China

    Institute of Scientific and Technical Information of China (English)

    2011-01-01

    By using the analysis method of game theory,this paper analyzes the phenomenon of price paradox of "vegetable basket" in China and its reason as follows:the price paradox of "vegetable basket" in China is that if the vegetable is cheap,it will harm farmers,and if the vegetable is expensive,it will harm people;high-cost logistics,low negotiation status of vegetable growers and cooperation predicament are responsible for price paradox.Based on the theoretical basis of strategic choice-theory of intermediaries,it indicates that the intermediaries can realize effective transaction and save transaction cost.The strategic choice of solving price paradox of "vegetable basket" is put forward as follows:support vegetable growers’ cooperatives,reduce transaction cost and raise the negotiation status of vegetable growers;develop the model of connection of agricultural products and supermarkets,and reduce the cost of transport and distribution;innovate upon intermediaries and develop the third-party logistics.

  12. Trends in prices to commercial energy consumers in the competitive Texas electricity market

    Energy Technology Data Exchange (ETDEWEB)

    Zarnikau, Jay [University of Texas at Austin (United States); Frontier Associates LLC, Austin, TX (United States); Fox, Marilyn; Smolen, Paul [Fox, Smolen and Associates, Inc., Austin, TX (United States)

    2007-08-15

    To date, the price of electricity to commercial or business energy consumers has generally increased at greater rates in the areas of Texas where retail competition has been introduced than in areas that do not enjoy competition. Trends in commercial competitive prices have largely mirrored trends in residential prices. Market restructuring has tended to increase the sensitivity of retail electricity prices to changes in the price of natural gas, the marginal fuel used for generation in Texas. Consequently, the rapid increases in the commodity price of natural gas following restructuring led to increases in competitive electric rates which exceeded the increases in areas not exposed to restructuring, where the fuel component of electric rates tend to reflect a weighted average of the utilities' fuel costs. There is some evidence that pricing behavior by competitive retailers changed when the retailers affiliated with the incumbent utilities were permitted some pricing flexibility, resulting in a reduction in prices. (author)

  13. Developing a new stochastic competitive model regarding inventory and price

    Science.gov (United States)

    Rashid, Reza; Bozorgi-Amiri, Ali; Seyedhoseini, S. M.

    2015-01-01

    Within the competition in today's business environment, the design of supply chains becomes more complex than before. This paper deals with the retailer's location problem when customers choose their vendors, and inventory costs have been considered for retailers. In a competitive location problem, price and location of facilities affect demands of customers; consequently, simultaneous optimization of the location and inventory system is needed. To prepare a realistic model, demand and lead time have been assumed as stochastic parameters, and queuing theory has been used to develop a comprehensive mathematical model. Due to complexity of the problem, a branch and bound algorithm has been developed, and its performance has been validated in several numerical examples, which indicated effectiveness of the algorithm. Also, a real case has been prepared to demonstrate performance of the model for real world.

  14. Choices enhance punching performance of competitive kickboxers.

    Science.gov (United States)

    Halperin, Israel; Chapman, Dale W; Martin, David T; Lewthwaite, Rebecca; Wulf, Gabriele

    2016-07-27

    While self-controlled practice has been shown to enhance motor learning with various populations and novel tasks, it remains unclear if such effects would be found with athletes completing familiar tasks. Study 1 used a single case-study design with a world-champion kickboxer. We investigated whether giving the athlete a choice over the order of punches would affect punching velocity and impact force. Separated by 1 min of rest, the athlete completed 2 rounds of 12 single, maximal effort punches (lead straight, rear straight, lead hook and rear hook) delivered to a punching integrator in a counterbalanced order over six testing days. In one round the punches were delivered in a predetermined order while in the second round the order was self-selected by the athlete. In the choice condition, the world champion punched with greater velocities (6-11 %) and impact forces (5-10 %). In Study 2, the same testing procedures were repeated with 13 amateur male kickboxers over 2 testing days. Similar to Study 1, the athletes punched with significantly greater velocities (6 %, p < 0.05) and normalised impact forces (2 %, p < 0.05) in the choice condition. These findings complement research on autonomy support in motor learning by demonstrating immediate advantages in force production and velocity with experienced athletes.

  15. How Increased Competition from Generic Drugs Has Affected Prices and Returns in the Pharmaceutical Industry

    Science.gov (United States)

    1998-07-01

    are also at a present discounted value in 1990 dollars. 17. Z. John Lu and William S. Comanor, Strategic Pricing of New Pharmaceuticals , Working...competed were available at a lower price. 24. Lu and Comanor, Strategic Pricing of New Pharmaceuticals . CHAPTER THREE PRICING AND COMPETITION IN

  16. The impact of competition on quality and prices in the English care homes market.

    Science.gov (United States)

    Forder, Julien; Allan, Stephen

    2014-03-01

    This study assesses the impact of competition on quality and price in the English care/nursing homes market. Considering the key institutional features, we use a theoretical model to assess the conditions under which further competition could increase or reduce quality. A dataset comprising the population of 10,000 care homes was used. We constructed distance/travel-time weighted competition measures. Instrumental variable estimations, used to account for the endogeneity of competition, showed quality and price were reduced by greater competition. Further analyses suggested that the negative quality effect worked through the effect on price - higher competition reduces revenue which pushes down quality.

  17. PRICE VS QUALITY COMPETITION AND THE SPATIAL PATTERN OF AVERAGE PRICES IN INTERNATIONAL TRADE

    Directory of Open Access Journals (Sweden)

    Mattoscio Nicola

    2012-07-01

    Full Text Available This work investigates the relationship between the average export prices and the distance between the origin and the destination market in international trade. Distance between trading partners obviously stands at the core of I international trade literature and is strictly related with the issue of how countries and firms compete on export markets when transport costs become increasingly stiff. Heterogeneous-Firm Trade (HFT models predict that only most competitive firms are able to export on distant markets, where it is more difficult to recover from freight costs. However, this simple concept does not lead to unambiguous predictions on the spatial pattern of average export f.o.b. prices. \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\r\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

  18. Strategy-driven pricing: The competitive power of diversity

    Energy Technology Data Exchange (ETDEWEB)

    Birch, V.L.; Jermain, D.O. (Jermain Associates, Portland, OR (United States)); Piepmeier, J.M. (James M. Piepmeier Company, Evanston, IL (United States))

    Strategy-driven pricing builds a bridge between the electric utility and its customer, making the customer a dynamic part of the system and simultaneously making the utility a stronger competitor. The electric business has recently doubled its scope, a transition that still remains invisible to many in the industry. This silent revolution was sparked by the microprocessor, which brought the customer in as a full participating member of a dynamic electric system. Heretofore, the relationship between the utility and its customer was carried on via a duenna' of regulators: The utility initiated, the duenna decided, and the customer accepted the decision. Only a single class of service was available (the highest) at a single price. Customers now have a far richer range of options. There are many suitors, not just one, and many of the functions that only the utility could perform before, such as balancing loads and the provision of spinning reserves,' can now be done by the customer. Customers should therefore be offered the choice of a variety of classes of services. The relationship between utility and customer should become a far richer, more complicated, and more profitable one based on their interdependence.

  19. Generic script share and the price of brand-name drugs: the role of consumer choice.

    Science.gov (United States)

    Rizzo, John A; Zeckhauser, Richard

    2009-09-01

    Pharmaceutical expenditures have grown rapidly in recent decades, and now total nearly 10% of health care costs. Generic drug utilization has risen substantially alongside, from 19% of scripts in 1984 to 47% in 2001, thus tempering expenditure growth through significant direct dollar savings. However, generic drugs may lead to indirect savings as well if their use reduces the average price of those brand-name drugs that are still purchased. Prior work indicates that brand-name producers do not lower their prices in the face of generic competition, and our study confirms that finding. However, prior work is silent on how the mix of consumer choices between generic and brand-name drugs might affect the average price of those brand-name drugs that are purchased. We use a nationally representative panel of data on drug utilization and costs for the years 1996-2001 to examine how the share of an individual's prescriptions filled by generics (generic script share) affects his average out-of-pocket cost for brand-name drugs, and the net cost paid by the insurer. Our principal finding is that a higher generic script share lowers average brand-name prices to consumers, presumably because consumers are more likely to substitute generics when brand-name drugs would cost them more. This effect is substantial: a 10% increase in the consumer's generic script share is associated with a 15.6% decline in the average price paid for brand-name drugs by consumers. This implies that the potential cost savings to consumers from generic substitution are far greater than prior work suggests. In contrast, the percentage reduction in average brand costs to health plans is far smaller, and statistically insignificant.

  20. Competitive pricing within pharmaceutical classes: evidence on "follow-on" drugs in Germany 1993-2008.

    Science.gov (United States)

    Mueller, Michael T; Frenzel, Alexander

    2015-01-01

    Competition from "follow-on" drugs has been a highly controversial issue. Manufacturers launching new molecules in existing drug classes have often been criticized for inflating health systems' expenses, but it has been argued that such drugs increase therapeutic options. Economic theory suggests that follow-on drugs induce price competition. We contribute to this discussion by addressing the topic of pricing at market entry and price development in the German market. We measure determinants of price strategies of follow-on drugs using regression analyses, considering all new molecules launched in the German market from 1993 to 2008. Prices of products are standardized on defined daily dosages controlling for sales volumes based on data from the IMS Health DPM database and for the therapeutic quality of a new product using ratings by Fricke/Klaus as a proxy for innovation. We identify prices correlating with therapeutic value at market entry. While the first two molecules engage in quality competition, price discounts below the market price can be observed from the third entrant on. Price discounts are even more distinct in development races with several drugs entering the market within 2 years and in classes with a low degree of therapeutic differentiation. Prices remain relatively constant over time. This study contributes to assessments of competition in pharmaceutical markets focusing on price strategies of new market entrants. After an initial phase of market building, further follow-on products induce price competition. Largely unchanged prices after 4 years may be interpreted as quality competition and can be attributed to prices in Germany being anchor points for international price referencing.

  1. Strategic wholesale pricing for an incumbent supplier facing with a competitive counterpart.

    Science.gov (United States)

    Sun, Jianwu

    2014-01-01

    We introduce a wholesale pricing strategy for an incumbent supplier facing with a competitive counterpart. We propose a profit function which considers both the present loss and future loss from a wholesale price and then study the optimal wholesale prices for different objectives about this profit function for the incumbent supplier. First, we achieve an optimal wholesale price for the incumbent supplier to maximize his expected profit. Then, to reduce the risk originating from the fluctuation in the competitive supplier's wholesale price, we integrate the conditional value-at-risk (CVaR) measure in financial risk management into this study and derive an optimal wholesale price to maximize CVaR about profit for the incumbent supplier. Besides, the properties of the two optimal wholesale prices are discussed. Finally, some management insights are suggested for the incumbent supplier in a competitive setting.

  2. Market competition and price of disease management programmes: an observational study.

    Science.gov (United States)

    van Dijk, Christel E; Venema, Bob; de Jong, Judith D; de Bakker, Dinny H

    2014-10-30

    Managed competition was introduced into the health care system in several countries including the Netherlands, although effects of competition of both providers and health insurers on the price of health care are inconclusive. We investigated the association between competition of both providers (care groups) and health insurers and the price of disease management programmes (DMPs). Data from 76 DMP contractual agreements for type II diabetes mellitus in 2008, 2009 and 2010 were used to analyse the association between market competition and the price of DMPs. Market competition was calculated per municipal health services region (GGD). Insurer market competition was measured by the Herfindahl-Hirschman Index (HHI), care group competition by the number of care groups and the care group market share of GPs. The effect of competition was cross-sectionally studied with linear regression analyses. Insurer market concentration (HHI) and care group market share were not associated with the price of DMPs. The number of care groups in a GGD region was associated with a lower price (-€4.68; 95% CI: -8.36 - -1.00). The mean difference in the price of DMPs between health insurers was €58. The price of DMPs seems to be more dependent on the particular health insurer than on market conditions. For competition among health insurers and provider groups to develop, preconditions such as selective contracting and option for patient to change provider should be in place.

  3. The effects of geographical competition and demand on grocery price premium

    OpenAIRE

    Halme, Kari; Akpinar, Murat; Neuvonen, Heidi

    2016-01-01

    Due to the duopolistic characteristics of the Finnish grocery retail trade proprietor-run stores operate as adaptive price setters on the market. This paper examined the effects of geographical competition and demand on proprietor-run grocery stores’ pricing in Finland’s most populated province –Uusimaa. The assumption is that the price premium of a proprietoroperated store compared to the nearest co-operative competitor reflects the characteristics of competition and demand. Hypotheses on th...

  4. Price Competition Among Retailers Of Coca Cola Products In Ibadan Metropolis, Nigeria

    OpenAIRE

    Agboje Ifeoma Anestina; Awoyomi Femi; Yusuf Sulaiman Adeshina

    2013-01-01

    The study was carried out on price competition among retail marketers of Coca-Cola products in Ibadan metropolis. A total of one hundred and ten retailers’ was randomly sampled from three Local Government Areas in Ibadan. Ordinary Least Square regression model was used for the analysis of the study. The findings of the study were that there were price variation in the Coca-Cola retail market that is monopolistically competitive in nature, and that these price variations were influenced by mun...

  5. DEFINITION OF COMPETITIVE PRICE OF HOUSES PROCEEDING FROM THEIR CONSUMER PROPERTIES

    Directory of Open Access Journals (Sweden)

    Хакимзян Амирович Фасхиев

    2016-11-01

    Full Text Available The method of determination of competitive prices of individual houses, which is based on the price depending on the customer value of the object to the decision maker. Line «red price» compared to residential houses built on the basis of an assessment of their quality aggregate-decomposition method. The price of the test at home is determined by the line «red price» for its calculated level of quality. The technique can be used in the valuation of real estate activities. An example of determining the price of an apartment house, located in the suburbs of a large city.

  6. A Choice Prediction Competition for Market Entry Games: An Introduction

    Directory of Open Access Journals (Sweden)

    Ido Erev

    2010-05-01

    Full Text Available A choice prediction competition is organized that focuses on decisions from experience in market entry games (http://sites.google.com/site/gpredcomp/ and http://www.mdpi.com/si/games/predict-behavior/. The competition is based on two experiments: An estimation experiment, and a competition experiment. The two experiments use the same methods and subject pool, and examine games randomly selected from the same distribution. The current introductory paper presents the results of the estimation experiment, and clarifies the descriptive value of several baseline models. The experimental results reveal the robustness of eight behavioral tendencies that were documented in previous studies of market entry games and individual decisions from experience. The best baseline model (I-SAW assumes reliance on small samples of experiences, and strong inertia when the recent results are not surprising. The competition experiment will be run in May 2010 (after the completion of this introduction, but they will not be revealed until September. To participate in the competition, researchers are asked to E-mail the organizers models (implemented in computer programs that read the incentive structure as input, and derive the predicted behavior as an output. The submitted models will be ranked based on their prediction error. The winners of the competition will be invited to publish a paper that describes their model.

  7. Local Optimality of User Choices and Collaborative Competitive Filtering

    CERN Document Server

    Yang, Shuang Hong

    2010-01-01

    We describe a novel framework for learning recommender models for recommendation systems, which views user-system-item interactions as an opportunity give-and-take process, and encodes both "collaboration" and "competition" mechanisms underlying the interaction. The proposed framework leverages the latent factor models of collaborative filtering to encode "collaboration" (via factor sharing); and in the meanwhile, it utilizes a type of objectives that implies local optimality of user choices to encode "competition". Specifically, it takes into account both the revenue and the opportunity cost of each user decision; and, by optimizing a new objective that are analogous to the economic profit, it encourages that every opportunity being taken by a user be locally the best among the opportunities being offered to him/her. Such competition among candidates opportunities imposes stronger supervision and in turn leads to better generalization to unseen interactions. Empirical results indicates that the collaborative...

  8. Market competition and price of disease management programmes: an observational study.

    NARCIS (Netherlands)

    Dijk, C.E. van; Venema, B.; Jong, J.D. de; Bakker, D.H. de

    2014-01-01

    Background: Managed competition was introduced into the health care system in several countries including the Netherlands, although effects of competition of both providers and health insurers on the price of health care are inconclusive. We investigated the association between competition of both p

  9. Electricity prices in a competitive environment: Marginal cost pricing of generation services and financial status of electric utilities. A preliminary analysis through 2015

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1997-08-01

    The emergence of competitive markets for electricity generation services is changing the way that electricity is and will be priced in the United States. This report presents the results of an analysis that focuses on two questions: (1) How are prices for competitive generation services likely to differ from regulated prices if competitive prices are based on marginal costs rather than regulated {open_quotes}cost-of-service{close_quotes} pricing? (2) What impacts will the competitive pricing of generation services (based on marginal costs) have on electricity consumption patterns, production costs, and the financial integrity patterns, production costs, and the financial integrity of electricity suppliers? This study is not intended to be a cost-benefit analysis of wholesale or retail competition, nor does this report include an analysis of the macroeconomic impacts of competitive electricity prices.

  10. Sequential male mate choice under sperm competition risk.

    Science.gov (United States)

    Ramm, Steven A; Stockley, Paula

    2014-05-01

    Male eagerness to mate is a central paradigm of sexual selection theory. However, limited sperm supplies mean that male sexual restraint might sometimes be favored under promiscuous mating. Here, we demonstrate dynamic plasticity in male mating effort when females are encountered sequentially under varying sperm competition risk. Rather than showing consistent eagerness to mate, male house mice (Mus musculus domesticus) instead tailor their mating effort according to likely reproductive payoffs. They are significantly less likely to mate when sperm competition is certain and potential reproductive payoffs low, but dramatically increase investment if they do choose to mate under such circumstances. By contrast, male mice are significantly more likely to mate in situations simulating extra-territorial copulations, where future risk of competition is high but so too are potential reproductive rewards. Differential mating propensity appears to be the primary mechanism by which male house mice allocate sperm adaptively under sperm competition risk because we find no evidence for facultative adjustment of sperm numbers per ejaculate or ejaculation frequency in response to female-related cues. We conclude that sequential male mate choice under sperm competition risk could be a widespread but often unappreciated mechanism of strategic sperm allocation.

  11. Pricing risk analysis for competitive electricity trading in deregulated and open access environment

    Energy Technology Data Exchange (ETDEWEB)

    Yu, Z.; Sparrow, F.T. [Purdue Univ., West Lafayette, IN (United States)

    1998-12-31

    This paper presents two models for evaluating pricing risks of future competitive electricity market with open transmission access. The first model is developed for measuring the risk of losing contract when a seller`s price is higher than that of one of its competitors. The second model is deduced for measuring the risk of benefit loss when a bidder`s price is low such that this seller has unrealized benefit. Both models are probabilistic and are expressed as probability distributions. The models are developed for evaluating bilateral contract pricing risks, however the idea can be extended to a competitive power pool situation.

  12. Non-Price Competition in Credit Card Markets: Evidence from an Emerging Economy

    OpenAIRE

    G. Gülsün Akın; Ahmet Faruk Aysan; Gazi Ishak Kara; Levent Yildiran

    2009-01-01

    Credit card rates have been shown to be very high and non-responsive to the changes in the costs of funds. The failure of price competition led to a shift of interests from price to non-price competition in these markets. Credit card issuers create switching costs for their customers by providing non-price benefits. These benefits are either direct benefits that depend on credit card usage or indirect benefits that arise from the convenience and quality of the general services of the issuer b...

  13. Price competition and equilibrium analysis in multiple hybrid channel supply chain

    Science.gov (United States)

    Kuang, Guihua; Wang, Aihu; Sha, Jin

    2017-06-01

    The amazing boom of Internet and logistics industry prompts more and more enterprises to sell commodity through multiple channels. Such market conditions make the participants of multiple hybrid channel supply chain compete each other in traditional and direct channel at the same time. This paper builds a two-echelon supply chain model with a single manufacturer and a single retailer who both can choose different channel or channel combination for their own sales, then, discusses the price competition and calculates the equilibrium price under different sales channel selection combinations. Our analysis shows that no matter the manufacturer and retailer choose same or different channel price to compete, the equilibrium price does not necessarily exist the equilibrium price in the multiple hybrid channel supply chain and wholesale price change is not always able to coordinate supply chain completely. We also present the sufficient and necessary conditions for the existence of equilibrium price and coordination wholesale price.

  14. The location model with two periods of price competition

    NARCIS (Netherlands)

    Webers, H.M.

    1994-01-01

    In this paper we characterize the subgame perfect Nash equilibria of a location-then-price game where firms first choose locations and after that compete for prices in two subsequent periods. Locations are thus seen as long term commitments. There are two types of consumers, each with different valu

  15. Management contracts and competition in prices or quantities as strategic tools for differentiated duopoly

    OpenAIRE

    Castillo Velosa, Monique; Jácome Liévano, Flavio

    2011-01-01

    This article analyzes a differentiated duopoly, in which each business use twos strategic tools to compete with its rival: management incentive contracts, and a choice between prices and quantities. Using the non-cooperative game theory, it is found in equilibrium that (i) when the businesses (i) do not hire managers with substitute (complementary) price contracts are the dominant strategy; with complementary items,quantity (price) contracts become the dominant strategy; (ii) when the compani...

  16. Switching gains and health plan price elasticities: 20 years of managed competition reforms in The Netherlands.

    Science.gov (United States)

    Douven, Rudy; Katona, Katalin; T Schut, Frederik; Shestalova, Victoria

    2017-02-27

    In this paper we estimate health plan price elasticities and financial switching gains for consumers over a 20-year period in which managed competition was introduced in the Dutch health insurance market. The period is characterized by a major health insurance reform in 2006 to provide health insurers with more incentives and tools to compete, and to provide consumers with a more differentiated choice of products. Prior to the reform, in the period 1995-2005, we find a low number of switchers, between 2 and 4% a year, modest average total switching gains of 2 million euros per year and short-term health plan price elasticities ranging from -0.1 to -0.4. The major reform in 2006 resulted in an all-time high switching rate of 18%, total switching gains of 130 million euros, and a high short-term price elasticity of -5.7. During 2007-2015 switching rates returned to lower levels, between 4 and 8% per year, with total switching gains in the order of 40 million euros per year on average. Total switching gains could have been 10 times higher if all consumers had switched to one of the cheapest plans. We find short-term price elasticities ranging between -0.9 and -2.2. Our estimations suggest substantial consumer inertia throughout the entire period, as we find degrees of choice persistence ranging from about 0.8 to 0.9.

  17. Obtaining fruit and vegetables for the lowest prices: pricing survey of different outlets and geographical analysis of competition effects.

    Directory of Open Access Journals (Sweden)

    Amber L Pearson

    Full Text Available AIMS: Inadequate fruit and vegetable (F&V consumption is an important dietary risk factor for disease internationally. High F&V prices can be a barrier to dietary intake and so to improve understanding of this topic we surveyed prices and potential competition between F&V outlet types. METHODS: Over a three week early autumn period in 2013, prices were collected bi-weekly for 18 commonly purchased F&Vs from farmers' markets (FM selling local produce (n = 3, other F&V markets (OFVM (n = 5, supermarkets that neighbored markets (n = 8, and more distant supermarkets (n = 8, (in urban Wellington and Christchurch areas of New Zealand. Prices from an online supermarket were also collected. RESULTS: A total of 3120 prices were collected. Most F&Vs (13/18 were significantly cheaper at OFVMs than supermarkets. Over half of the F&Vs (10/18 were significantly cheaper at nearby compared to distant supermarkets, providing evidence of a moderate 'halo effect' in price reductions in supermarkets that neighbored markets. Weekend (vs midweek prices were also significantly cheaper at nearby (vs distant supermarkets, supporting evidence for a 'halo effect'. Ideal weekly 'food basket' prices for a two adult, two child family were: OFVMs (NZ$76, online supermarket ($113, nearby supermarkets ($124, distant supermarkets ($127, and FMs ($138. This represents a savings of $49 per week (US$26 by using OFVMs relative to (non-online supermarkets. Similarly, a shift from non-online supermarkets to the online supermarket would generate a $13 saving. CONCLUSIONS: In these locations general markets appear to be providing some substantially lower prices for fruit and vegetables than supermarkets. They also appear to be depressing prices in neighboring supermarkets. These results, when supplemented by other needed research, may help inform the case for interventions to improve access to fruit and vegetables, particularly for low-income populations.

  18. Environmental Pricing: Studies in Policy Choices and Interactions

    DEFF Research Database (Denmark)

    areas of current practice that must be addressed. Empirical studies of policy strategies are discussed to illustrate the extent to which current climate change policy is integrated against the proposed successful policy combinations that are presented in this insightful book. Environmental pricing......Environmental taxes can be efficient tools for successful environmental policy. Their use, however, has been limited in many countries. This thoughtful book explores the scope of environmental pricing and examines a variety of national experiences in environmental policy integration, to identify...

  19. Value-based pricing: A success factor in the competitive struggle

    Directory of Open Access Journals (Sweden)

    Netseva-Porcheva Tatyana

    2011-01-01

    Full Text Available Over the past decade, the view that the main purpose of market oriented organizations is not to satisfy the consumer, but to create values has dominated. Exactly the values, their creation, retention and increase, are the main sources of competitive advantage of the company. The purpose of the present report is to present the price formation, based on product value, as a source of competitive advantage. In connection with the so-defined objective, the value and the product price for the customer are derived as key factors for success of the company in the competitive struggle; the role of the value of the product in the marketing and pricing is revealed; and theory clarifies the two basic approaches for determining the price of the product on the basis of value - customer value modeling (CVM and economic value modeling (EVM, their nature, scope of application, advantages and disadvantages.

  20. Price of Gas Fuels Tough Choices for Adjuncts

    Science.gov (United States)

    Grasgreen, Allie

    2008-01-01

    The cost of gasoline has made the art of juggling two or more teaching jobs at different institutions all the more difficult for many adjunct faculty members, as continuing price hikes at the nation's gasoline stations cut into salaries that often do not cover living expenses to begin with. These new pressures are particularly evident in…

  1. Higher Prices, Fewer Choices: Shopping for Food in Rural America.

    Science.gov (United States)

    Morris, Patricia McGrath

    The Food Stamp Program is the U.S. government's primary program to prevent the rural poor from going hungry. Food stamp allotments are set each year based on the cost of the "Thrifty Food Plan" (TFP), a minimally adequate diet defined by the U.S. Department of Agriculture (USDA), which sets costs by examining average food prices in urban…

  2. The Spectrum Sharing in Cognitive Radio Networks Based on Competitive Price Game

    Directory of Open Access Journals (Sweden)

    Y. B. Li

    2012-09-01

    Full Text Available The competitive price game model is used to analyze the spectrum sharing problem in the cognitive radio networks, and the spectrum sharing problem with the constraints of available spectrum resource from primary users is further discussed in this paper. The Rockafeller multiplier method is applied to deal with the constraints of available licensed spectrum resource, and the improved profits function is achieved, which can be used to measure the impact of shared spectrum price strategies on the system profit. However, in the competitive spectrum sharing problem of practical cognitive radio network, primary users have to determine price of the shared spectrum without the acknowledgement of the other primary user’s price strategies. Thus a fast gradient iterative calculation method of equilibrium price is proposed, only with acknowledgement of the price strategies of shared spectrum during last cycle. Through the adaptive iteration at the direction with largest gradient of improved profit function, the equilibrium price strategies can be achieved rapidly. It can also avoid the predefinition of adjustment factor according to the parameters of communication system in conventional linear iteration method. Simulation results show that the proposed competitive price spectrum sharing model can be applied in the cognitive radio networks with constraints of available licensed spectrum, and it has better convergence performance.

  3. High Generic Drug Prices and Market Competition: A Retrospective Cohort Study.

    Science.gov (United States)

    Dave, Chintan V; Kesselheim, Aaron S; Fox, Erin R; Qiu, Peihua; Hartzema, Abraham

    2017-08-01

    Prices for some generic drugs have increased in recent years, adversely affecting patients who rely on them. To determine the association between market competition levels and the change in generic drug prices in the United States. Retrospective cohort study. Prescription claims from commercial health plans between 2008 and 2013. The 5.5 years of data were divided into 11 study periods of 6 months each. The Herfindahl-Hirschman Index (HHI)-calculated by summing the squares of individual manufacturers' market shares, with higher values indicating a less competitive market-and average drug prices were estimated for the generic drugs in each period. The HHI value estimated in the baseline period (first half of 2008) was modeled as a fixed covariate. Models estimated price changes over time by level of competition, adjusting for drug shortages, market size, and dosage forms. From 1.08 billion prescription claims, a cohort of 1120 generic drugs was identified. After adjustment, drugs with quadropoly (HHI value of 2500, indicating relatively high levels of competition), duopoly (HHI value of 5000), near-monopoly (HHI value of 8000), and monopoly (HHI value of 10 000) levels of baseline competition were associated with price changes of -31.7% (95% CI, -34.4% to -28.9%), -11.8% (CI, -18.6% to -4.4%), 20.1% (CI, 5.5% to 36.6%), and 47.4% (CI, 25.4% to 73.2%), respectively, over the study period. Study findings may not be generalizable to drugs that became generic after 2008. Market competition levels were associated with a change in generic drug prices. Such measurements may be helpful in identifying older prescription drugs at higher risk for price change in the future. None.

  4. The private health insurance choices of medicare beneficiaries: how much does price matter?

    Science.gov (United States)

    Rice, Thomas; Jacobson, Gretchen; Cubanski, Juliette; Neuman, Tricia

    2014-12-01

    This article presents, critiques, and analyzes the influence of prices on insurance choices made by Medicare beneficiaries in the Medicare Advantage, Part D, and Medigap markets. We define price as health insurance premiums for the Medicare Advantage and Medigap markets, and total out-of-pocket costs (including premiums and cost sharing) for the Part D market. In Medicare Advantage and Part D, prices only partly explain insurance choices. Enrollment decisions also may be influenced by other factors such as the perceived quality of the higher-premium plans, better provider networks, lower cost-sharing for services, more generous benefits, and a preference for certain brand-name products. In contrast, the one study available on the Medigap market concludes that price appears to be associated with plan selection. This may be because Medigap benefits are fully standardized, making it easier for beneficiaries to compare alternative policies. The article concludes by discussing policy options available to Medicare.

  5. 76 FR 77271 - Competitive Product Postal Price Changes

    Science.gov (United States)

    2011-12-12

    .... The Postal Service's return product offerings will be branded as ``Return Service''. Commercial First... product, priced at $10.95. Global Express Guaranteed and Express Mail International. Global Express... Enhancement Service 7.3 percent, Global Express Guaranteed 6.0 percent, Express Mail International...

  6. Pharmaceutical pricing in emerging markets: effects of income, competition, and procurement.

    Science.gov (United States)

    Danzon, Patricia M; Mulcahy, Andrew W; Towse, Adrian K

    2015-02-01

    This paper analyzes determinants of ex-manufacturer prices for originator and generic drugs across countries. We focus on drugs to treat HIV/AIDS, TB, and malaria in middle and low-income countries (MLICs), with robustness checks to other therapeutic categories and the full income range of countries. We examine the effects of per capita income, income dispersion, competition from originator and generic substitutes, and whether the drugs are sold to retail pharmacies versus tendered procurement by non-government organizations. The cross-national income elasticity of prices is 0.27 across the full income range of countries but is 0.0-0.10 between MLICs, implying that drugs are least affordable relative to income in the lowest income countries. Within-country income inequality contributes to relatively high prices in MLICs. Although generics are priced roughly 30% lower than originators on average, the variance is large. Additional generic competitors only weakly affect prices, plausibly because generic quality uncertainty leads to competition on brand rather than price. Tendered procurement that imposes quality standards attracts multinational generic suppliers and significantly reduces prices of originator and generic drugs, compared with their respective prices to retail pharmacies.

  7. Law of One Price and Optimal Consumption-Leisure Choice Under Price Dispersion

    Directory of Open Access Journals (Sweden)

    Sergey MALAKHOV

    2016-03-01

    Full Text Available If the demand under price dispersion is formed by consumers with zero search costs and consumers with positive search costs, the law of one price holds at the equilibrium price level, where the lowest willingness to pay between consumers with zero search costs meets the willingness to accept or to sell of consumers with positive search costs. Consumers with positive search costs maximize their utility with respect to their optimal decisions when marginal losses in labor income during the search are equal to marginal savings on purchase. Optimal decisions move their willingness to accept to the equilibrium price level. Suboptimal decisions of consumers with positive search costs result in willingness to accept below the lowest willingness to pay of consumers with zero search costs and arbitrage takes place. Arbitrage drops down the equilibrium price to the level where willingness to accept of consumers with positive search costs meets the new lowest willingness to pay of consumers with zero search costs and where purchasing decisions of consumers with positive search costs become optimal.

  8. Statistical Studies of Non-price Competition in the Structure of Public Procurement in the Russian Federation

    Directory of Open Access Journals (Sweden)

    Svetlana Aleksandrovna Sergeeva

    2016-04-01

    Full Text Available The principle of securing competition is one of the basic principles of the contract system in public procurement in the Russian Federation. The law on the contract system in procurement stipulates that the contract system in procurement is aimed at creating equal conditions to ensure competition between the parties to procurement. An important aspect is that the competition for procurement should be based on compliance with the principle of fair price and non-price competition. The purpose of this provision is to identify the best conditions for supplying goods, performing works and providing services. The analysis of the state of non-price competition in the procurement structure requires statistical studies of the phenomenon. The article considers the theoretical basis of non-price competition; it presents an analysis of methods of statistical study of non-price competition.

  9. Competition

    NARCIS (Netherlands)

    Boone, J.

    2000-01-01

    Competition has been modelled in the literature in a number of ways.What do these different parametrizations of competition have in common?For instance, it turns out that it is not always the case that a rise in competition reduces price cost margins, industry wide profits or concentration.All param

  10. Pursuit of competitive advantage for Online Travel Agencies : driving from price to value

    OpenAIRE

    Vilarinho, Tiago Assis

    2014-01-01

    The online travel industry is characterized by a fierce level of competition. Due to the design of its landscape, modern travel paradigms and touristic product’s characteristics, Online Travel Agencies strive to have the lowest price in order to attract customers and gain market share. Thus, their services became very similar and commoditized. Starting from this topic, online marketing strategies and actions aiming at the creation of value by differentiation rather pricing were investigated. ...

  11. 价格竞争模型与竞争策略%Price Competition Model and Competition Strategy

    Institute of Scientific and Technical Information of China (English)

    郭伏; 李森; 赵希男; 杨锡怀

    2001-01-01

    A price competition model was developed to give best priceformula and best supply formula. It is shown that any kinds of corporation can be managed quantitively by best supply and best sell price,and can qualitatively make proper competition strategy in order to acquire most profit with lowest competition risk. The modelling also indicates that the cost is the key of price competition of no-differential product. Medium and small corporation should create one's own product character dependent on product quality,brand and service to set up one's own differential advantage.%建立价格竞争模型,给出了最优价格公式和最优供应量公式.各类型企业不仅可以定量地按最优供应量生产和按最优价格销售,而且可以定性地制定适当的竞争策略以获得最佳利润和回避竞争风险.同时指出成本是无差异产品价格竞争的关键,中小型企业应依靠质量、品牌、服务等创造产品特征,建立自己的差异优势.

  12. The Dynamics of Bertrand Price Competition with Cost-Reducing Investments

    DEFF Research Database (Denmark)

    Iskhakov, Fedor; Rust, John; Schjerning, Bertel

    We present a dynamic extension of the classic static model of Bertrand price competition that allows competing duopolists to undertake cost-reducing investments in an attempt to “leapfrog” their rival to attain low-cost leadership – at least temporarily. We show that leapfrogging occurs in equili......We present a dynamic extension of the classic static model of Bertrand price competition that allows competing duopolists to undertake cost-reducing investments in an attempt to “leapfrog” their rival to attain low-cost leadership – at least temporarily. We show that leapfrogging occurs...... in equilibrium, resolving the Bertrand investment paradox., i.e. leapfrogging explains why firms have an ex ante incentive to undertake cost-reducing investments even though they realize that simultaneous investments to acquire the state of the art production technology would result in Bertrand price competition...... in the product market that drives their ex post profits to zero. Our analysis provides a new interpretation of “price wars”. Instead of constituting a punishment for a breakdown of tacit collusion, price wars are fully competitive outcomes that occur when one firm leapfrogs its rival to become the new low cost...

  13. Reference pricing, competition, and pharmaceutical expenditures: Theory and evidence from a natural experiment

    OpenAIRE

    Kurt R. Brekke; Holmås, Tor Helge; Straume, Odd Rune

    2010-01-01

    We study the impact of regulation on competition between brand-names and generics and pharmaceutical expenditures using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. First, we construct a vertical differentiation model to analyze the impact of regulation on prices and market shares of brand-names and generics. Then, we exploit a detailed panel data set at product level covering several off-pate...

  14. Does Reference Pricing Drive Out Generic Competition in Pharmaceutical Markets? Evidence from a Policy Reform

    OpenAIRE

    Kurt R. Brekke; Canta, Chiara; Straume, Odd Rune

    2015-01-01

    In this paper we study the impact of reference pricing (RP) on entry of generic firms in the pharmaceutical market. For given prices, RP increases generic firms' expected profit, but since RP also stimulates price competition, the impact on generic entry is theoretically ambiguous. In order to empirically test the effects of RP, we exploit a policy reform in Norway in 2005 that exposed a subset of drugs to RP. Having detailed product-level data for a wide set of substances from 2003 to 2013,...

  15. Modeling HIV/AIDS drug price determinants in Brazil: is generic competition a myth?

    Science.gov (United States)

    Meiners, Constance; Sagaon-Teyssier, Luis; Hasenclever, Lia; Moatti, Jean-Paul

    2011-01-01

    Brazil became the first developing country to guarantee free and universal access to HIV/AIDS treatment, with antiretroviral drugs (ARVs) being delivered to nearly 190,000 patients. The analysis of ARV price evolution and market dynamics in Brazil can help anticipate issues soon to afflict other developing countries, as the 2010 revision of the World Health Organization guidelines shifts demand towards more expensive treatments, and, at the same time, current evolution of international legislation and trade agreements on intellectual property rights may reduce availability of generic drugs for HIV care. Our analyses are based on effective prices paid for ARV procurement in Brazil between 1996 and 2009. Data panel structure was exploited to gather ex-ante and ex-post information and address various sources of statistical bias. In-difference estimation offered in-depth information on ARV market characteristics which significantly influence prices. Although overall ARV prices follow a declining trend, changing characteristics in the generic segment help explain recent increase in generic ARV prices. Our results show that generic suppliers are more likely to respond to factors influencing demand size and market competition, while originator suppliers tend to set prices strategically to offset compulsory licensing threats and generic competition. In order to guarantee the long term sustainability of access to antiretroviral treatment, our findings highlight the importance of preserving and stimulating generic market dynamics to sustain developing countries' bargaining power in price negotiations undertaken with originator companies.

  16. Modeling HIV/AIDS drug price determinants in Brazil: is generic competition a myth?

    Directory of Open Access Journals (Sweden)

    Constance Meiners

    Full Text Available BACKGROUND: Brazil became the first developing country to guarantee free and universal access to HIV/AIDS treatment, with antiretroviral drugs (ARVs being delivered to nearly 190,000 patients. The analysis of ARV price evolution and market dynamics in Brazil can help anticipate issues soon to afflict other developing countries, as the 2010 revision of the World Health Organization guidelines shifts demand towards more expensive treatments, and, at the same time, current evolution of international legislation and trade agreements on intellectual property rights may reduce availability of generic drugs for HIV care. METHODS AND FINDINGS: Our analyses are based on effective prices paid for ARV procurement in Brazil between 1996 and 2009. Data panel structure was exploited to gather ex-ante and ex-post information and address various sources of statistical bias. In-difference estimation offered in-depth information on ARV market characteristics which significantly influence prices. Although overall ARV prices follow a declining trend, changing characteristics in the generic segment help explain recent increase in generic ARV prices. Our results show that generic suppliers are more likely to respond to factors influencing demand size and market competition, while originator suppliers tend to set prices strategically to offset compulsory licensing threats and generic competition. SIGNIFICANCE: In order to guarantee the long term sustainability of access to antiretroviral treatment, our findings highlight the importance of preserving and stimulating generic market dynamics to sustain developing countries' bargaining power in price negotiations undertaken with originator companies.

  17. THE ROLE OF COMPETITION ON THE PRICING DECISION OF AN ORGANISATION AND THE ATTAINMENT OF THE ORGANISATIONAL OBJECTIVE

    Directory of Open Access Journals (Sweden)

    IMOLEAYO OBIGBEMI

    2010-01-01

    Full Text Available Pricing decision has been a crucial decision made by all business enterprises at all levels and has posed a great challenge for Small and Medium Enterprises in Nigeria. This research work treats the role of competition on the pricing decision of an organisation and the attainment of the Organisational Objective, a study of SMEs in Nigeria. The methodology adopted was the survey and empirical approach, with the administration of questionnaires to some SMEs in Nigeria, evaluating the effect competition has on pricing decision (change in product price and its overall effect on the attainment of organizational objective (profitability. Primary and secondary sources were used in collecting data. It was discovered that competition plays a major role in pricing decision and that there is a relationship between pricing decision and the attainment of organizational objective. Recommendations were made for the close monitoring of SMEs and that SMEs should employ the service of price experts when making pricing decisions.

  18. The Failure of Price Competition In The Turkish Credit Card Market

    OpenAIRE

    Akin, Guzin Gulsun; Aysan, Ahmet Faruk; Kara, Gazi Ishak; Yildiran, Levent

    2008-01-01

    The failure of competition and the consequent high and sticky interest rates in credit card markets have been the subject of a considerable amount of debate and research lately. This paper presents the first regression testing for the existence of price competition in a credit card market to be estimated free of dynamic panel bias using recent quarterly data from Turkey. The estimation reveals that even though the effect of the cost of funds on credit card rates is statistically significant, ...

  19. Price and Service Competition between New and Remanufactured Products

    Directory of Open Access Journals (Sweden)

    Bin Wang

    2015-01-01

    Full Text Available This paper sets two manufacturers on the market. One is traditional manufacturer, which produces new products, and the other remanufactures by recycling used products. Two manufacturers sell products to customers through one retailer and also provide product-related services. Three participators decide prices and service levels independently. We discuss the optimal decision of prices, service levels, demands, and profits in three scenarios: Manufacturers Stackelberg, Retailer Stackelberg, and Nash Equilibrium. We also study the influence of customer acceptance of remanufactured product (θ on participators’ decisions. With the increase of θ, new product profit reduces; remanufactured product profit increases at the beginning and then decreases. Retailer profit grows steadily. In Manufacturers Stackelberg, new and remanufactured products can get the maximum profits, and retailer only has the minimum profit. In Retailer Stackelberg, retailer can get the maximum profit; new product only has the minimum profit and remanufactured product has the medium gain. In Nash Equilibrium, new product and retailer have the medium gains, and remanufactured product has the minimum profit.

  20. Portfolio choice and asset pricing with endogenous beliefs and skewness preference

    NARCIS (Netherlands)

    Karehnke, P.

    2014-01-01

    This thesis studies portfolio choice and asset pricing with preferences which go beyond the standard expected utility and mean-variance preferences. The first part of this thesis analyses a decision model in which the decision maker forms endogenous beliefs given his anticipation utility and his ex-

  1. The Systemic Effects of School Choice Induced Competition: Defining Competition and Evaluating Its Effects on the Outcomes of All Students

    Science.gov (United States)

    Creed, Benjamin M.

    2016-01-01

    Using the three paper format, this dissertation contributes to the literature evaluating school choice and school competition. This study highlights important gaps in our collective understanding of the impact of school choice policy. This dissertation contributes in multiple ways to the closing of important gaps related to the effect of school…

  2. Children's purchase behavior in the snack market: Can branding or lower prices motivate healthier choices?

    Science.gov (United States)

    Hartmann, Monika; Cash, Sean B; Yeh, Ching-Hua; Landwehr, Stefanie C; McAlister, Anna R

    2017-10-01

    Children's dietary-related diseases and their associated costs have expanded dramatically in many countries, making children's food choice a policy issue of increasing relevance. As children spend a considerable amount of money on energy-dense, nutrient-poor (EDNP) products, a better understanding of the main drivers of children's independent food purchase decisions is crucial to move this behavior toward healthier options. The objective of the study is to investigate the role of branding and price in motivating children to choose healthier snack options. The study investigates snack choices of children ages 8 to 11, using a survey and a purchase experiment. The research took place in after-school programs of selected schools in the Boston area. Participants included 116 children. Products in the choice experiment differed on three factors: product type, brand, and price. Data were analyzed using aggregated and mixed logit models. Children's purchase decisions are primarily determined by product type (Importance Value (IV) 56.6%), while brand (IV 22.8%) and price (IV 20.6%) prove to be of less relevance. Only those children who state that they like the familiar brand reveal a preference for the branded product in their purchase decision. Price is a significant predictor of choice when controlling for whether or not children obtain an allowance. It is not simple brand awareness but a child's liking of the brand that determines whether a brand is successful in motivating a child to choose a product. The extent of children's experience with money influences their price responsiveness. To the extent that children who receive an allowance are primarily the ones buying food snacks, higher prices for EDNP snacks could be successful in motivating children to choose a healthier option. Copyright © 2017 Elsevier Ltd. All rights reserved.

  3. Input price risk and optimal timing of energy investment: choice between fossil- and biofuels

    Energy Technology Data Exchange (ETDEWEB)

    Murto, Pauli; Nese, Gjermund

    2002-05-01

    We consider energy investment, when a choice has to be made between fossil fuel and biomass fired production technologies. A dynamic model is presented to illustrate the effect of the different degrees of input price uncertainty on the choice of technology and the timing of the investment. It is shown that when the choice of technology is irreversible, it may be optimal to postpone the investment even if it would otherwise be optimal to invest in one or both of the plant types. We provide a numerical example based on cost, estimates of two different power plant types. (author)

  4. Switching gains and health plan price elasticities: 20 years of managed competition reforms in The Netherlands

    NARCIS (Netherlands)

    R.C.H.M. Douven (Rudy); K. Katona (Katalin); T. Schut, F. (Frederik); V. Shestalova (Victoria)

    2017-01-01

    textabstractIn this paper we estimate health plan price elasticities and financial switching gains for consumers over a 20-year period in which managed competition was introduced in the Dutch health insurance market. The period is characterized by a major health insurance reform in 2006 to provide h

  5. 76 FR 27062 - Biologics Price Competition and Innovation Act of 2009; Options for a User Fee Program for...

    Science.gov (United States)

    2011-05-10

    ... HUMAN SERVICES Food and Drug Administration Biologics Price Competition and Innovation Act of 2009... interchangeable biological product (351(k)) applications submitted under the Public Health Service Act (PHS Act... called the Biologics Price Competition and Innovation Act of 2009 (BPCI Act) that amends the PHS Act and...

  6. Competition with Variety Seeking and Habitual Consumption: Price Commitment or Quality Commitment?

    Directory of Open Access Journals (Sweden)

    Liyang Xiong

    2017-01-01

    Full Text Available This paper investigates price and quality competition in a market where consumers seek variety and habit formation. Variety seeking is modeled as a decrease in the willingness to pay for product purchased on the previous occasion while habitual consumption may increase future marginal utility. We compare two competing strategies: price commitment and quality commitment. With a three-stage Hotelling-type model, we show that variety seeking intensifies while habitual consumption softens the competition. With price commitment, firms supply lower quality levels in period 1 and higher quality levels in period 2, while, with quality commitment, firms charge higher prices in period 1 and lower prices in period 2. However, the habitual consumption brings the opposite effect. In addition, with quality commitment variety seeking leads to a lower profit and a higher consumer surplus, while habitual consumption leads to the opposite results. On the other side, with price commitment these behaviors have no effect on the consumer surplus, although they still lower down the firm profits. Finally, we also identify conditions under which one strategy outperforms the other.

  7. Price Competition Among Retailers Of Coca Cola Products In Ibadan Metropolis, Nigeria

    Directory of Open Access Journals (Sweden)

    Agboje Ifeoma Anestina

    2013-02-01

    Full Text Available The study was carried out on price competition among retail marketers of Coca-Cola products in Ibadan metropolis. A total of one hundred and ten retailers’ was randomly sampled from three Local Government Areas in Ibadan. Ordinary Least Square regression model was used for the analysis of the study. The findings of the study were that there were price variation in the Coca-Cola retail market that is monopolistically competitive in nature, and that these price variations were influenced by municipality characteristics, market conditions and store characteristics. It is therefore, recommended that more entries of retail marketers should be encouraged to reduce the monopolistic powers of the few retail marketers in the business.

  8. Consolidation in the Dialysis Industry, Patient Choice, and Local Market Competition.

    Science.gov (United States)

    Erickson, Kevin F; Zheng, Yuanchao; Winkelmayer, Wolfgang C; Ho, Vivian; Bhattacharya, Jay; Chertow, Glenn M

    2017-03-07

    The Medicare program insures >80% of patients with ESRD in the United States. An emphasis on reducing outpatient dialysis costs has motivated consolidation among dialysis providers, with two for-profit corporations now providing dialysis for >70% of patients. It is unknown whether industry consolidation has affected patients' ability to choose among competing dialysis providers. We identified patients receiving in-center hemodialysis at the start of 2001 and 2011 from the national ESRD registry and ascertained dialysis facility ownership. For each hospital service area, we determined the maximum distance within which 90% of patients traveled to receive dialysis in 2001. We compared the numbers of competing dialysis providers within that same distance between 2001 and 2011. Additionally, we examined the Herfindahl-Hirschman Index, a metric of market concentration ranging from near zero (perfect competition) to one (monopoly) for each hospital service area. Between 2001 and 2011, the number of different uniquely owned competing providers decreased 8%. However, increased facility entry into markets to meet rising demand for care offset the effect of provider consolidation on the number of choices available to patients. The number of dialysis facilities in the United States increased by 54%, and patients experienced an average 10% increase in the number of competing proximate facilities from which they could choose to receive dialysis (Pmarkets were highly concentrated in both 2001 and 2011 (mean Herfindahl-Hirschman Index =0.46; SD=0.2 for both years), but overall market concentration did not materially change. In summary, a decade of consolidation in the United States dialysis industry did not (on average) limit patient choice or result in more concentrated local markets. However, because dialysis markets remained highly concentrated, it will be important to understand whether market competition affects prices paid by private insurers, access to dialysis care

  9. Do follow-on therapeutic substitutes induce price competition between hospital medicines? Evidence from the Danish hospital sector

    DEFF Research Database (Denmark)

    Hostenkamp, Gisela

    2013-01-01

    Objective The pricing of follow-on drugs, that offer only limited health benefits over existing therapeutic alternatives, is a recurring health policy debate. This study investigates whether follow-on therapeutic substitutes create price competition between branded hospital medicines. Methods New...... pioneer products were significantly reduced as a reaction to competition from follow-on drugs. Conclusion Competition between patented therapeutic substitutes did not seem to increase price competition and containment of pharmaceutical expenditures in the Danish hospital market. Strengthening hospitals......’ incentives to consider the price of alternative treatment options paired with a more active formulary management may increase price competition between therapeutic substitutes in the Danish hospital sector in the future....

  10. Paying for express checkout: competition and price discrimination in multi-server queuing systems.

    Directory of Open Access Journals (Sweden)

    Cary Deck

    Full Text Available We model competition between two firms selling identical goods to customers who arrive in the market stochastically. Shoppers choose where to purchase based upon both price and the time cost associated with waiting for service. One seller provides two separate queues, each with its own server, while the other seller has a single queue and server. We explore the market impact of the multi-server seller engaging in waiting cost-based-price discrimination by charging a premium for express checkout. Specifically, we analyze this situation computationally and through the use of controlled laboratory experiments. We find that this form of price discrimination is harmful to sellers and beneficial to consumers. When the two-queue seller offers express checkout for impatient customers, the single queue seller focuses on the patient shoppers thereby driving down prices and profits while increasing consumer surplus.

  11. Paying for express checkout: competition and price discrimination in multi-server queuing systems.

    Science.gov (United States)

    Deck, Cary; Kimbrough, Erik O; Mongrain, Steeve

    2014-01-01

    We model competition between two firms selling identical goods to customers who arrive in the market stochastically. Shoppers choose where to purchase based upon both price and the time cost associated with waiting for service. One seller provides two separate queues, each with its own server, while the other seller has a single queue and server. We explore the market impact of the multi-server seller engaging in waiting cost-based-price discrimination by charging a premium for express checkout. Specifically, we analyze this situation computationally and through the use of controlled laboratory experiments. We find that this form of price discrimination is harmful to sellers and beneficial to consumers. When the two-queue seller offers express checkout for impatient customers, the single queue seller focuses on the patient shoppers thereby driving down prices and profits while increasing consumer surplus.

  12. Solving Optimal Pricing Model for Perishable Commodities with Imperialist Competitive Algorithm

    Directory of Open Access Journals (Sweden)

    Bo-Wen Liu

    2013-01-01

    Full Text Available The pricing problem for perishable commodities is important in manufacturing enterprise. In this study, a new model based on the profit maximization principle and a discrete demand function which is a negative binomial demand distribution is proposed. This model is used to find out the best combination for price and discount price. The computational results show that the optimal discount price equals the cost of the product. Because the demand functions which involves several different distributions is so complex that the model is hard to solve with normal numerical method. Thus we combine the model with exterior penalty function and applied a novel evolution algorithm-Imperialist Competitive Algorithm (ICA to solve the problem. Particle Swarm algorithm (PSO is also applied to solve the problem for comparison. The result shows that ICA has higher convergence rate and execution speed.

  13. Pricing behaviour of nonprofit insurers in a weakly competitive social health insurance market.

    Science.gov (United States)

    Douven, Rudy C H M; Schut, Frederik T

    2011-03-01

    In this paper we examine the pricing behaviour of nonprofit health insurers in the Dutch social health insurance market. Since for-profit insurers were not allowed in this market, potential spillover effects from the presence of for-profit insurers on the behaviour of nonprofit insurers were absent. Using a panel data set for all health insurers operating in the Dutch social health insurance market over the period 1996-2004, we estimate a premium model to determine which factors explain the price setting behaviour of nonprofit health insurers. We find that financial stability rather than profit maximisation offers the best explanation for health plan pricing behaviour. In the presence of weak price competition, health insurers did not set premiums to maximize profits. Nevertheless, our findings suggest that regulations on financial reserves are needed to restrict premiums. Copyright © 2011 Elsevier B.V. All rights reserved.

  14. User-Aware Electricity Price Optimization for the Competitive Market

    Directory of Open Access Journals (Sweden)

    Allegra De Filippo

    2017-09-01

    Full Text Available Demand response mechanisms and load control in the electricity market represent an important area of research at the international level: the trend towards competition and market liberalization has led to the development of methodologies and tools to support energy providers. Demand side management helps energy suppliers to reduce the peak demand and remodel load profiles. This work is intended to support energy suppliers and policy makers in developing strategies to act on the behavior of energy consumers, with the aim to make a more efficient use of energy. We develop a non-linear optimization model for the dynamics of the electricity market, which can be used to obtain tariff recommendations or for setting the goals of a sensibilization campaign. The model comes in two variants: a stochastic version, designed for residential electricity consumption, and a deterministic version, suitable for large electricity users (e.g., public buildings, industrial users. We have tested our model on data from the Italian energy market and performed an extensive analysis of different scenarios. We also tested the optimization model in a real setting in the context of the FP7 DAREED project (http://www.dareed.eu/, where the model has been employed to provide tariff recommendations or to help the identification of goals for local policies.

  15. Renewable generation technology choice and policies in a competitive electricity supply industry

    Science.gov (United States)

    Sarkar, Ashok

    Renewable energy generation technologies have lower externality costs but higher private costs than fossil fuel-based generation. As a result, the choice of renewables in the future generation mix could be affected by the industry's future market-oriented structure because market objectives based on private value judgments may conflict with social policy objectives toward better environmental quality. This research assesses how renewable energy generation choices would be affected in a restructured electricity generation market. A multi-period linear programming-based model (Resource Planning Model) is used to characterize today's electricity supply market in the United States. The model simulates long-range (2000-2020) generation capacity planning and operation decisions under alternative market paradigms. Price-sensitive demand is used to simulate customer preferences in the market. Dynamically changing costs for renewables and a two-step load duration curve are used. A Reference Case represents the benchmark for a socially-optimal diffusion of renewables and a basis for comparing outcomes under alternative market structures. It internalizes externality costs associated with emissions of sulfur dioxide (SOsb2), nitrous oxides (NOsbx), and carbon dioxide (COsb2). A Competitive Case represents a market with many generation suppliers and decision-making based on private costs. Finally, a Market Power Case models the extreme case of market power: monopoly. The results suggest that the share of renewables would decrease (and emissions would increase) considerably in both the Competitive and the Market Power Cases with respect to the Reference Case. The reduction is greater in the Market Power Case due to pricing decisions under existing supply capability. The research evaluates the following environmental policy options that could overcome market failures in achieving an appropriate level of renewable generation: COsb2 emissions tax, SOsb2 emissions cap, renewable

  16. Robotics Competitions: The Choice Is up to You!

    Science.gov (United States)

    Johnson, Richard T.; Londt, Susan E.

    2010-01-01

    Competitive robotics as an interactive experience can increase the level of student participation in technology education, inspire students to consider careers in technical fields, and enhance the visibility of technology education programs. Implemented correctly, a competitive robotics program can provide a stimulating learning environment for…

  17. Robotics Competitions: The Choice Is up to You!

    Science.gov (United States)

    Johnson, Richard T.; Londt, Susan E.

    2010-01-01

    Competitive robotics as an interactive experience can increase the level of student participation in technology education, inspire students to consider careers in technical fields, and enhance the visibility of technology education programs. Implemented correctly, a competitive robotics program can provide a stimulating learning environment for…

  18. Vehicle type choice under the influence of a tax reform and rising fuel prices

    DEFF Research Database (Denmark)

    Mabit, Stefan Lindhard

    2014-01-01

    Differentiated vehicle taxes are considered by many a useful tool for promoting environmentally friendly vehicles. Various structures have been implemented in several countries, e.g. Ireland, France, The Czech Republic, and Denmark. In many countries the tax reforms have been followed by a steep...... change in new vehicle purchases toward more diesel vehicles and more fuel-efficient vehicles. The paper analyses to what extent a vehicle tax reform similar to the Danish 2007 reform may explain changes in purchasing behaviour. The paper investigates the effects of a tax reform, fuel price changes......, and technological development on vehicle type choice using a mixed logit model. The model allows a simulation of the effect of car price changes that resemble those induced by the tax reform. This effect is compared to the effects of fuel price changes and technology improvements. The simulations show...

  19. Do follow-on therapeutic substitutes induce price competition between hospital medicines? Evidence from the Danish hospital sector.

    Science.gov (United States)

    Hostenkamp, Gisela

    2013-06-01

    The pricing of follow-on drugs, that offer only limited health benefits over existing therapeutic alternatives, is a recurring health policy debate. This study investigates whether follow-on therapeutic substitutes create price competition between branded hospital medicines. New follow-on drugs and their incumbent therapeutic competitors were identified from Danish sales and product registration data on hospital pharmaceuticals using medically relevant criteria. We examined whether follow-on drugs adopt lower prices than their incumbent competitors, and whether incumbent competitors react to entry of follow-ons through price adjustments using a random intercept panel model. We found no evidence that follow-on drugs adopt lower prices than their incumbent competitors. Furthermore, potentially due to low sample size, we found no evidence that prices for incumbent pioneer products were significantly reduced as a reaction to competition from follow-on drugs. Competition between patented therapeutic substitutes did not seem to increase price competition and containment of pharmaceutical expenditures in the Danish hospital market. Strengthening hospitals' incentives to consider the price of alternative treatment options paired with a more active formulary management may increase price competition between therapeutic substitutes in the Danish hospital sector in the future. Copyright © 2013 Elsevier Ireland Ltd. All rights reserved.

  20. Instantaneous and cumulative influences of competition on impulsive choices in domestic chicks.

    Directory of Open Access Journals (Sweden)

    Hidetoshi eAmita

    2011-09-01

    Full Text Available This study examined instantaneous and cumulative effects of competitive interactions on impulsiveness in the inter-temporal choices in domestic chicks. Chicks were trained to peck colored beads to gain delayed food rewards (1 or 6 grains of millet delivered after a delay ranging between 0–4.5 s, and were tested in binary choices between a small-short delay option (SS and a large-long delay alternative (LL. To examine whether competitive foraging instantaneously changes impulsiveness, we intraindividually compared choices between two consecutive tests in different contexts, one with competitors and another without. We found that (1 the number of the choice of LL was not influenced by competition in the tests, but (2 the operant peck latency was shortened by competition, suggesting a socially enhanced incentive for food. To further examine the lasting changes, two groups of chicks were consecutively trained and tested daily for 2 weeks according to a behavioral titration procedure, one with competitors and another without. Inter-group comparisons of the choices revealed that (3 choice impulsiveness gradually decreased along development, while (4 the chicks trained in competition maintained a higher level of impulsiveness. These results suggest that competitive foraging causes impulsive choices not by direct/contextual modification. Causal link between the instantaneous enhancement of incentive and the gradual effects on impulsivity remains to be examined. Some (yet unspecified factors may be indirectly involved.

  1. Between Price and Quality: The Criteria of Food Choice in Romania

    OpenAIRE

    Laura NISTOR

    2014-01-01

    This article investigates the issue of food quality and price as criteria of food choice in Romania. Given the country’s less advantageous economic status, Romania seems an ideal candidate on which to research the potential conflicts between such criteria of food choice. As the analysis is built on data from the Special Eurobarometer 389, some comparative findings are also presented between Romania and the rest of the EU, particularly, the EU-15 and the EU-11 (EU-12 minus Romania) country gro...

  2. Price transparency for MRIs increased use of less costly providers and triggered provider competition.

    Science.gov (United States)

    Wu, Sze-jung; Sylwestrzak, Gosia; Shah, Christiane; DeVries, Andrea

    2014-08-01

    To encourage patients to select high-value providers, an insurer-initiated price transparency program that focused on elective advanced imaging procedures was implemented. Patients having at least one outpatient magnetic resonance imaging (MRI) scan in 2010 or 2012 were divided according to their membership in commercial health plans participating in the program (the intervention group) or in nonparticipating commercial health plans (the reference group) in similar US geographic regions. Patients in the intervention group were informed of price differences among available MRI facilities and given the option of selecting different providers. For those patients, the program resulted in a $220 cost reduction (18.7 percent) per test and a decrease in use of hospital-based facilities from 53 percent in 2010 to 45 percent in 2012. Price variation between hospital and nonhospital facilities for the intervention group was reduced by 30 percent after implementation. Nonparticipating members residing in intervention areas also observed price reductions, which indicates increased price competition among providers. The program significantly reduced imaging costs. This suggests that patients select lower-price facilities when informed about available alternatives.

  3. Role of expendable income and price in food choice by low income families.

    Science.gov (United States)

    Burns, Cate; Cook, Kay; Mavoa, Helen

    2013-12-01

    The public health literature suggests that the cheapness of energy-dense foods is driving the obesity epidemic. We examined food purchases in low-income families and its relationship to the price of food and availability of funds. In-depth interviews were conducted with 22 parents with children less than 15 years of age whose major source of income was a government pension. A photo taxonomy, where participants sorted 50 photos of commonly purchased foods, was used to explore food choice. The most common food groupings used by the participants were: basic, emergency, treat and comfort. The process of food purchase was described by participants as weighing up the attributes of a food in relation to price and money available. Shoppers nominated the basic unit of measurement as quantity per unit price and the heuristic for food choice when shopping as determining "value for money" in a process of triage relating to food purchase decisions. Participants stated satiation of hunger to be the most common "value" relative to price. Given that the foods nominated as filling tended to be carbohydrate-rich staples, we suggest that public health initiatives need to acknowledge this triage process and shape interventions to promote nutrition over satiation. Copyright © 2013 Elsevier Ltd. All rights reserved.

  4. Long term fuel price elasticity: effects on mobility tool ownership and residential location choice - Final report

    Energy Technology Data Exchange (ETDEWEB)

    Erath, A.; Axhausen, K. W.

    2010-04-15

    This comprehensive final report for the Swiss Federal Office of Energy (SFOE) examines the long-term effects of fuel price elasticity. The study analyses how mobility tool usage and ownership as well as residence location choice are affected by rising fuel costs. Based on econometric models, long-term fuel price elasticity is derived. The authors quote that the demand reactions to higher fuel prices mainly observed are the reduction of mileage and the consideration of smaller-engined and diesel-driven cars. As cars with natural gas powered engines and electric drives were hardly considered in the survey, the results of the natural gas model can, according to the authors, only serve as a trend. No stable model could be estimated for the demand and usage of electric cars. A literature overview is presented and the design of the survey is discussed, whereby socio-demographical variables and the effects of price and residence changes are discussed. Modelling of mobility tool factors and results obtained are looked at. Finally, residence choice factors are modelled and discussed. Several appendices complete the report.

  5. Two-echelon competitive integrated supply chain model with price and credit period dependent demand

    Science.gov (United States)

    Pal, Brojeswar; Sankar Sana, Shib; Chaudhuri, Kripasindhu

    2016-04-01

    This study considers a two-echelon competitive supply chain consisting of two rivaling retailers and one common supplier with trade credit policy. The retailers hope that they can enhance their market demand by offering a credit period to the customers and the supplier also offers a credit period to the retailers. We assume that the market demand of the products of one retailer depends not only on their own market price and offering a credit period to the customers, but also on the market price and offering a credit period of the other retailer. The supplier supplies the product with a common wholesale price and offers the same credit period to the retailers. We study the model under a centralised (integrated) case and a decentralised (Vertical Nash) case and compare them numerically. Finally, we investigate the model by the collected numerical data.

  6. Effect of multiple-source entry on price competition after patent expiration in the pharmaceutical industry.

    OpenAIRE

    Suh, D.C.; Manning, W G; Schondelmeyer, S; Hadsall, R S

    2000-01-01

    OBJECTIVE: To analyze the effect of multiple-source drug entry on price competition after patent expiration in the pharmaceutical industry. DATA SOURCES: Originators and their multiple-source drugs selected from the 35 chemical entities whose patents expired from 1984 through 1987. Data were obtained from various primary and secondary sources for the patents' expiration dates, sales volume and units sold, and characteristics of drugs in the sample markets. STUDY DESIGN: The study was designed...

  7. Non-price competition in credit card markets through bundling and bank level benefits

    OpenAIRE

    Akin, Guzin Gulsun; Aysan, Ahmet Faruk; Kara, Gazi Ishak; Yildiran, Levent

    2008-01-01

    The attempts to explain the high and sticky credit card rates have given rise to a vast literature on credit card markets. This paper endeavors to explain the rates in the Turkish market using measures of non-price competition. In this market, issuers compete monopolistically by differentiating their credit card products. The fact that credit cards and all other banking services are perceived as a bundle by consumers allows banks to deploy also bank level characteristics to differentiate thei...

  8. A Choice Prediction Competition for Social Preferences in Simple Extensive Form Games: An Introduction

    Directory of Open Access Journals (Sweden)

    Eyal Ert

    2011-07-01

    Full Text Available Two independent, but related, choice prediction competitions are organized that focus on behavior in simple two-person extensive form games (http://sites.google.com/site/extformpredcomp/: one focuses on predicting the choices of the first mover and the other on predicting the choices of the second mover. The competitions are based on an estimation experiment and a competition experiment. The two experiments use the same methods and subject pool, and examine games randomly selected from the same distribution. The current introductory paper presents the results of the estimation experiment, and clarifies the descriptive value of some baseline models. The best baseline model assumes that each choice is made based on one of several rules. The rules include: rational choice, level-1 reasoning, an attempt to maximize joint payoff, and an attempt to increase fairness. The probability of using the different rules is assumed to be stable over games. The estimated parameters imply that the most popular rule is rational choice; it is used in about half the cases. To participate in the competitions, researchers are asked to email the organizers models (implemented in computer programs that read the incentive structure as input, and derive the predicted behavior as an output. The submission deadline is 1 December 2011, the results of the competition experiment will not be revealed until that date. The submitted models will be ranked based on their prediction error. The winners of the competitions will be invited to write a paper that describes their model.

  9. School Choice and Competitive Incentives: Mapping the Distribution of Educational Opportunities across Local Education Markets

    Science.gov (United States)

    Lubienski, Christopher; Gulosino, Charisse; Weitzel, Peter

    2009-01-01

    Competition sparked by school choice is expected to generate greater educational opportunities, particularly for disadvantaged students. The premise is that competitive incentives will change the organizational behavior of schools (and districts, dioceses, etc.) in ways that will lead to more equitable access for students across varied and often…

  10. Pricing intelligence as tool for increasing competitiveness of Ukrainian online stores

    Directory of Open Access Journals (Sweden)

    I.V. Burachek

    2016-12-01

    Full Text Available The article defines the concept of e-commerce, analyzes the status and dynamics of e-commerce in Ukraine. The work presents statistical data on the state of Internet commerce in Ukraine, trends for future development. Online stores are under pressure from fierce competition, because of the rapidly growing goods and services volume in the Internet. It causes shops to risk when choosing pricing strategy. Internet market requires automated control of prices, it will help shops to choose the right strategy of selling and customers will significantly save their money. All this justified the relevance of implementation in practice Pricing Intelligence technology. The technology is used by advanced trading platforms in Europe and America. Site Hotline is an Ukrainian analogue of Pricing Intelligence technology, but its functionality is limited considerably. The Site is focused exclusively on customers and the shops falling within the statistics of the site are Hotline’s partners. That’s why the information is not completely objective. Therefore, it is useful to borrow foreign practice and improve Pricing Intelligence technology further for using it in online shops.

  11. Sex and the public: Social eavesdropping, sperm competition risk and male mate choice.

    Science.gov (United States)

    Plath, Martin; Bierbach, David

    2011-05-01

    Mate choice can be sensitive to social cues from neighboring individuals, e.g., animals can copy mate choice decisions. Males that are at risk of being copied by others may respond to this with reduced preference expression ("audience effects"). We review the various pathways by which sperm competition risk affects (1) male mate copying behavior and (2) audience effects. For example, a recent study suggests that males gather complex social information on rivals' sexual competitiveness (sexual activity and attractiveness to females) and respond with reduced expression of mating preferences only "when it matters," i.e., when a sexually competitive rival is present.

  12. Do follow-on therapeutic substitutes induce price competition between hospital medicines? Evidence from the Danish hospital sector

    DEFF Research Database (Denmark)

    Hostenkamp, Gisela

    2013-01-01

    pioneer products were significantly reduced as a reaction to competition from follow-on drugs. Conclusion Competition between patented therapeutic substitutes did not seem to increase price competition and containment of pharmaceutical expenditures in the Danish hospital market. Strengthening hospitals...... follow-on drugs and their incumbent therapeutic competitors were identified from Danish sales and product registration data on hospital pharmaceuticals using medically relevant criteria. We examined whether follow-on drugs adopt lower prices than their incumbent competitors, and whether incumbent......’ incentives to consider the price of alternative treatment options paired with a more active formulary management may increase price competition between therapeutic substitutes in the Danish hospital sector in the future....

  13. Study on Competitive Exporting Price-forecast of the SMART in the U.S

    Energy Technology Data Exchange (ETDEWEB)

    Kim, In Su; Kim, Tae Ryong [KEPCO International Nuclear Graduate School, Ulsan (Korea, Republic of)

    2014-10-15

    In line with this, the U.S. has a renewed interest in SMRs rather than large reactors. Nothing, however, has been implemented yet. The only SMRs under construction are in Russia: the first floating nuclear plants. For the most part, the primary candidates to be the first land-based counterparts of Russia's are the SMART (System integrated Modular Advanced Reactor) reactors. The Korean SMART has been developed and licensed for standard design. In addition, the SMART reactor may be suited to countries, which have a small grid capacity, low population density, and decentralization power system such as the U.S. Therefore, the purpose of this paper is to develop a target price for the SMR market opportunities in the U.S., competing against the CCGT (Combined Cycle Gas Turbine) which is currently a very attractive option for generating due to the shale innovation. Even though detailed cost estimates are not available, target price can be derived based on generally determining market price. This paper demonstrates the target exporting price of the SMART in the U.S. ranging from 3,091 - 4,011$/kWe depending on the scaling factor and carbon tax, assuming that discount rates are fixed. This value could be a target cost of construction, developing the U.S market whose demand of the SMART is potentially 4 units 2015 - 2035. Sensitivity analysis shows that the price goes up in proportion to the gas price, the capacity factor of the SMART, the overnight cost of CCGT, etc. More than anything else, this study reveals that carbon tax does not have much influence on the target price compared with those listed above. On the other hand, the price goes up in inverse proportion to the interest of the SMART, the capacity factor of CCGT, O and M costs of the SMART, and so on. For the price competitiveness, construction cost should first be reduced because construction cost is the largest component of LCOE as well as the effect of interest rate is the most sensitive for target price

  14. Choice Overload, Satisficing Behavior, and Price Distribution in a Time Allocation Model

    Directory of Open Access Journals (Sweden)

    Francisco Álvarez

    2014-01-01

    Full Text Available Recent psychological research indicates that consumers that search exhaustively for the best option of a market product—known as maximizers—eventually feel worse than consumers who just look for something good enough—called satisficers. We formulate a time allocation model to explore the relationship between different distributions of prices of the product and the satisficing behavior and the related welfare of the consumer. We show numerically that, as the number of options becomes large, the maximizing behavior produces less and less welfare and eventually leads to choice paralysis—these are effects of choice overload—whereas satisficing conducts entail higher levels of satisfaction and do not end up in paralysis. For different price distributions, we provide consistent evidence that maximizers are better off for a low number of options, whereas satisficers are better off for a sufficiently large number of options. We also show how the optimal satisficing behavior is affected when the underlying price distribution varies. We provide evidence that the mean and the dispersion of a symmetric distribution of prices—but not the shape of the distribution—condition the satisficing behavior of consumers. We also show that this need not be the case for asymmetric distributions.

  15. Consumer choice of social health insurance in managed competition.

    NARCIS (Netherlands)

    Kerssens, J.J.; Groenewegen, P.P.

    2003-01-01

    Objective: To promote managed competition in Dutch health insurance, the insured are now able to change health insurers. They can choose a health insurer with a low flat-rate premium, the best supplementary insurance and/or the best service. As we do not know why people prefer one health insurer to

  16. Consumer choice of social health insurance in managed competition

    NARCIS (Netherlands)

    Kerssens, Jan J.; Groenewegen, Peter P.

    2003-01-01

    Objective To promote managed competition in Dutch health insurance, the insured are now able to change heaith insurers. They can choose a health insurer with a low flat-rate premium, the best supplementary insurance and/or the best service. As we do not know why people prefer one health insurer to

  17. Consumer choice of social health insurance in managed competition.

    NARCIS (Netherlands)

    Kerssens, J.J.; Groenewegen, P.P.

    2003-01-01

    Objective: To promote managed competition in Dutch health insurance, the insured are now able to change health insurers. They can choose a health insurer with a low flat-rate premium, the best supplementary insurance and/or the best service. As we do not know why people prefer one health insurer to

  18. Consumer choice of social health insurance in managed competition

    NARCIS (Netherlands)

    Kerssens, Jan J.; Groenewegen, Peter P.

    2003-01-01

    Objective To promote managed competition in Dutch health insurance, the insured are now able to change heaith insurers. They can choose a health insurer with a low flat-rate premium, the best supplementary insurance and/or the best service. As we do not know why people prefer one health insurer to a

  19. Effects of asymmetric medical insurance subsidy on hospitals competition under non-price regulation.

    Science.gov (United States)

    Wang, Chan; Nie, Pu-Yan

    2016-11-15

    Poor medical care and high fees are two major problems in the world health care system. As a result, health care insurance system reform is a major issue in developing countries, such as China. Governments should take the effect of health care insurance system reform on the competition of hospitals into account when they practice a reform. This article aims to capture the influences of asymmetric medical insurance subsidy and the importance of medical quality to patients on hospitals competition under non-price regulation. We establish a three-stage duopoly model with quantity and quality competition. In the model, qualitative difference and asymmetric medical insurance subsidy among hospitals are considered. The government decides subsidy (or reimbursement) ratios in the first stage. Hospitals choose the quality in the second stage and then support the quantity in the third stage. We obtain our conclusions by mathematical model analyses and all the results are achieved by backward induction. The importance of medical quality to patients has stronger influence on the small hospital, while subsidy has greater effect on the large hospital. Meanwhile, the importance of medical quality to patients strengthens competition, but subsidy effect weakens it. Besides, subsidy ratios difference affects the relationship between subsidy and hospital competition. Furthermore, we capture the optimal reimbursement ratio based on social welfare maximization. More importantly, this paper finds that the higher management efficiency of the medical insurance investment funds is, the higher the best subsidy ratio is. This paper states that subsidy is a two-edged sword. On one hand, subsidy stimulates medical demand. On the other hand, subsidy raises price and inhibits hospital competition. Therefore, government must set an appropriate subsidy ratio difference between large and small hospitals to maximize the total social welfare. For a developing country with limited medical resources

  20. Chimpanzee choice rates in competitive games match equilibrium game theory predictions.

    Science.gov (United States)

    Martin, Christopher Flynn; Bhui, Rahul; Bossaerts, Peter; Matsuzawa, Tetsuro; Camerer, Colin

    2014-06-05

    The capacity for strategic thinking about the payoff-relevant actions of conspecifics is not well understood across species. We use game theory to make predictions about choices and temporal dynamics in three abstract competitive situations with chimpanzee participants. Frequencies of chimpanzee choices are extremely close to equilibrium (accurate-guessing) predictions, and shift as payoffs change, just as equilibrium theory predicts. The chimpanzee choices are also closer to the equilibrium prediction, and more responsive to past history and payoff changes, than two samples of human choices from experiments in which humans were also initially uninformed about opponent payoffs and could not communicate verbally. The results are consistent with a tentative interpretation of game theory as explaining evolved behavior, with the additional hypothesis that chimpanzees may retain or practice a specialized capacity to adjust strategy choice during competition to perform at least as well as, or better than, humans have.

  1. Focal point pricing: A challenge to the successful implementation of Section 10a (introduced by the Competition Amendment Act

    Directory of Open Access Journals (Sweden)

    Mike Holland

    2015-08-01

    Full Text Available The Competition Amendment Act introduced section 10A, which provides the Competition Commission with the powers to investigate complex monopoly conduct in a market and allows the Competition Tribunal, under certain conditions, to prohibit such behaviour. Although more than five years have elapsed since the Competition Amendment Act was promulgated, this provision has yet to come into force. However, when it eventually does so, it will mark a significant change in South African competition law, as it seeks to regulate firms’ consciously parallel conduct. This is coordinated conduct that occurs without communication or agreement, but results in the prevention or substantial lessening of competition. Examples of horizontal tacit coordination practices include price leadership and facilitating practices, such as information exchanges and price signaling. The successful implementation of the amendment poses problems for the competition authorities in assessing the competitive effects of complex monopoly conduct and in providing effective remedies. Oligopoly markets result in mutual interdependent decision-making by firms, which can lead to market outcomes similar to explicit collusion. However, a further and little noticed issue is that firms in oligopolistic markets have opportunities to use focal points to determine coordinated strategies. This paper explores the nature and role of focal point pricing, which can lead to prices that are above competitive levels. The South African banking industry is used as an example. We find that focal point pricing is difficult to control, making the successful implementation of section 10A even more problematic. Moreover, the proposed amendment provides scope for the imposition of structural remedies by the Competition Tribunal, a function that the Competition Tribunal is ill-suited to perform.

  2. Market power in electric power markets: Indications of competitiveness in spatial prices for wholesale electricity

    Science.gov (United States)

    Denton, Michael John

    The issue of market delineation and power in the wholesale electric energy market is explored using three separate approaches: two of these are analyses of spatial pricing data to explore the functional size of the markets, and the third is a series of experimental tests of the effects of different cost structures and market mechanisms on oligopoly strength in those markets. An equilibrium model of spatial network competition is shown to yield linear relationships between spatial prices. A data set comprising two years of spatial weekly peak and off-peak prices and weather for 6 locations in the Western States Coordinating Council and the Southwest Power Pool is subjected to a pairwise cointegration analysis. The use of dummy variables to account the the flow directions is found to significantly improve model performance. The second analytical technique utilizes the extraction of principal components from a spatial price correlation matrix to identify the extent of natural markets. One year of daily price observations for eleven locations within the WSCC is compiled and eigenvectors are extracted and subjected to oblique rotation, each of which is then interpreted as representing a separate geographic market. The results show that two distinct natural markets, correlated at 84%, account for over 96% of the variation in the spatial prices in the WSSC. Together, the findings support the assertion that the wholesale electricity market in the Western U.S. is large and highly competitive. The experimental analysis utilizes a radial three node network in which suppliers located at the outer nodes sell to buyers located at the central node. The parameterization captures the salient characteristics of the existing bulk power markets, and includes cyclical demand, transmission losses, as well as fixed and avoidable fixed costs for all agents. Treatments varied the number of sellers, the avoidable fixed cost structures, and the trading mechanism. Results indicated that

  3. Exclusivity strategies and opportunities in view of the Biologics Price Competition and Innovation Act.

    Science.gov (United States)

    Gaudry, Kate S

    2011-01-01

    Government-provided exclusivity periods provide pharmaceutical companies with incentives to invest in new drugs. Meanwhile, encouraging competition serves another worthy goal of improving the affordability of medications. Decades ago, the Hatch-Waxman Act set forth provisions attempting to balance these objectives in the context of small-molecule drugs. Recently, the Biologics Price Competition and Innovation Act was enacted to meet similar aims in the context of biologic drugs. This article presents a detailed comparison of these two Acts. While the Acts share many global similarities (e.g., providing exclusivity terms and abbreviated approval processes), many differences are also apparent when analyzing details of the provisions. One area of great departure between the Acts is the requirements of how a generic or follow-on applicant must address patents covering a reference product. After describing these differences, the article presents predictions of how reference product sponsors will adapt their patent-prosecution strategies in view of the new Biologics Act.

  4. Competitive closed-loop supply chain network design with price-dependent demands

    DEFF Research Database (Denmark)

    Rezapour, Shabnam; Farahani, Reza Zanjirani; Fahimnia, Behnam

    2015-01-01

    Abstract This paper presents a bi-level model for the strategic reverse network design (upper level) and tactical/operational planning (lower level) of a closed-loop single-period supply chain operating in a competitive environment with price-dependent market demand. An existing supply chain (SC...... for the supply of new and remanufactured products. The performance behaviors of both SCs are evaluated with specific focus placed on investigating the impacts of the strategic facility location decisions of the new SC on the tactical/operational transport and inventory decisions of the overall network. The bi......) is involved in the manufacturing and distribution of new products, while the new (to-be-designed) rival SC can supply both new and remanufactured products. Competitions exist not only externally between the two chains supplying new products to the same market, but also internally in the new chain...

  5. Sustainability Analysis and Buy-Back Coordination in a Fashion Supply Chain with Price Competition and Demand Uncertainty

    Directory of Open Access Journals (Sweden)

    Fan Wang

    2016-12-01

    Full Text Available Supply chain sustainability has become significantly important in the fashion industry, and more and more fashion brands have invested in developing sustainable supply chains. We note that dual channel system comprising a brand-owned direct channel and retail outsourcing channel is quite common in the fashion industry, and in the latter, buy-back contract is popular between brands and retailers. Therefore, we build a stylized dual channel model with price competition and demand uncertainty to characterize the main properties of a fashion supply chain. Our foci are the sustainability analysis and the channel coordination mechanism. We first design a buy-back contract with return cost to coordinate the channel. We then study supply chain sustainability and examine the effect of two key influencing factors, i.e., price competition and demand uncertainty. Interestingly, we find that a fiercer price competition will lead to a more sustainable supply chain. From the perspective of supply chain managers, we conclude that (1 if managers care about environmental sustainability, fierce price competition is not a suggested strategy; (2 if managers care about economic sustainability, fierce price competition is an advantageous strategy. We also find that high demand uncertainty results in a less sustainable supply chain, in both an environmental and economic sustainability sense.

  6. Parallel imports and a mandatory substitution reform: a kick or a muff for price competition in pharmaceuticals?

    Science.gov (United States)

    Granlund, David; Koksal-Ayhan, Miyase Yesim

    2015-12-01

    What has been the effect of competition from parallel imports on prices of locally sourced on-patent drugs? Did the 2002 Swedish mandatory substitution reform increase this competition? To answer these questions, we carried out difference-in-differences estimation on monthly data for a panel of all locally sourced on-patent prescription drugs sold in Sweden during the 40 months from January 2001 to April 2004. On average, facing competition from parallel imports caused a 15-17% fall in price. While the reform increased the effect of competition from parallel imports, it was only by 0.9%. The reform, however, did increase the effect of therapeutic competition by 1.6%.

  7. Competencia y precios en el mercado farmacéutico mexicano Competition and prices in the Mexican pharmaceutical market

    Directory of Open Access Journals (Sweden)

    Raúl E Molina-Salazar

    2008-01-01

    Full Text Available Las formas que asume la competencia en el mercado definen el nivel de precios. El mercado farmacéutico contiene submercados con diferente grado de competencia; por un lado existen productos innovadores con patente y, por el otro, genéricos con marca comercial o sin ella. Por lo general, los medicamentos innovadores con patente tienen precios monopólicos, pero a su vencimiento éstos bajan al enfrentar la competencia de alternativas terapéuticas. La marca permite conservar las rentas económicas del monopolio. En México los precios de los medicamentos en el mercado privado son elevados, de acuerdo con las estimaciones agregadas y para medicamentos específicos, lo cual refleja las limitaciones de la competencia en el mercado y el poder de la marca comercial. En el segmento público se obtienen precios competitivos con la estrategia de los medicamentos esenciales de la Organización Mundial de la Salud, con base en el listado de productos del Cuadro Básico.The forms of market competition define prices. The pharmaceutical market contains submarkets with different levels of competition; on the one hand are the innovating products with patents, and on the other, generic products with or without trade names. Innovating medicines generally have monopolistic prices, but when the patents expire prices drop because of competition from therapeutic alternatives. The trade name makes it easier to maintain monopolistic prices. In Mexico, medicine prices in the private market are high -according to aggregated estimates and prices for specific medicines- which reflect the limitations of pharmaceutical market competition and the power of the trade name. The public segment enjoys competitive prices using the WHO strategy for essential medicines on the basis of the Essential List.

  8. The Role Of Competition On The Pricing Decision Of An Organisation And The Attainment Of The Organisational Objective

    OpenAIRE

    IMOLEAYO OBIGBEMI

    2010-01-01

    Pricing decision has been a crucial decision made by all business enterprises at all levels and has posed a great challenge for Small and Medium Enterprises in Nigeria. This research work treats the role of competition on the pricing decision of an organisation and the attainment of the Organisational Objective, a study of SMEs in Nigeria. The methodology adopted was the survey and empirical approach, with the administration of questionnaires to some SMEs in Nigeria, evaluating the effect co...

  9. The entry of Colombian-sourced heroin into the US market: the relationship between competition, price, and purity.

    Science.gov (United States)

    Rosenblum, Daniel; Unick, George Jay; Ciccarone, Daniel

    2014-01-01

    There have been large structural changes in the US heroin market over the past 20 years. Colombian-sourced heroin entered the market in the mid-1990s, followed by a large fall in the price per pure gram and the exit of Asian heroin. By the 2000s, Colombian-sourced heroin had become a monopoly on the east coast and Mexican-sourced heroin a monopoly on the west coast with competition between the two in the middle. We estimate the relationship between these changes in competitive market structure on retail-level heroin price and purity. We find that the entry of Colombian-sourced heroin is associated with less competition and a lower price per pure gram of heroin at the national level. However, there is wide variation in changes in market concentration across the US. Controlling for the national fall in the heroin price, more competition in a region or city is associated with a lower price per pure gram.

  10. Multistability and complex basins in a nonlinear duopoly with price competition and relative profit delegation

    Science.gov (United States)

    Fanti, Luciano; Gori, Luca; Mammana, Cristiana; Michetti, Elisabetta

    2016-09-01

    In this article, we investigate the local and global dynamics of a nonlinear duopoly model with price-setting firms and managerial delegation contracts (relative profits). Our study aims at clarifying the effects of the interaction between the degree of product differentiation and the weight of manager's bonus on long-term outcomes in two different states: managers behave more aggressively with the rival (competition) under product complementarity and less aggressively with the rival (cooperation) under product substitutability. We combine analytical tools and numerical techniques to reach interesting results such as synchronisation and on-off intermittency of the state variables (in the case of homogeneous attitude of managers) and the existence of chaotic attractors, complex basins of attraction, and multistability (in the case of heterogeneous attitudes of managers). We also give policy insights.

  11. Competition with Variety Seeking and Habitual Consumption: Price Commitment or Quality Commitment?

    National Research Council Canada - National Science Library

    Liyang Xiong; Guan Liu; Shi Jiang

    2017-01-01

    .... With price commitment, firms supply lower quality levels in period 1 and higher quality levels in period 2, while, with quality commitment, firms charge higher prices in period 1 and lower prices in period 2...

  12. Effects of calorie labeling and value size pricing on fast food meal choices: Results from an experimental trial

    Directory of Open Access Journals (Sweden)

    Jeffery Robert W

    2008-12-01

    Full Text Available Abstract Background Although point-of-purchase calorie labeling at restaurants has been proposed as a strategy for improving consumer food choices, a limited number of studies have evaluated this approach. Likewise, little research has been conducted to evaluate the influence of value size pricing on restaurant meal choices. Methods To examine the effect of point-of-purchase calorie information and value size pricing on fast food meal choices a randomized 2 × 2 factorial experiment was conducted in which participants ordered a fast food meal from one of four menus that varied with respect to whether calorie information was provided and whether value size pricing was used. Study participants included 594 adolescents and adults who regularly ate at fast food restaurants. Study staff recorded the foods ordered and consumed by each participant. Participants also completed surveys to assess attitudes, beliefs and practices related to fast food and nutrition. Results No significant differences in the energy composition of meals ordered or eaten were found between menu conditions. The average energy content of meals ordered by those randomized to a menu that included calorie information and did not include value size pricing was 842 kcals compared with 827 kcals for those who ordered their meal from a menu that did not include calorie information but had value size pricing (control menu. Results were similar in most analyses conducted stratified by factors such as age, race and education level. Conclusion Additional research is needed to better evaluate the effects of calorie labeling and value size pricing on fast food meal choices. Studies in which participants are repeatedly exposed to these factors are needed since long term exposure may be required for behavior change.

  13. Effects of calorie labeling and value size pricing on fast food meal choices: results from an experimental trial.

    Science.gov (United States)

    Harnack, Lisa J; French, Simone A; Oakes, J Michael; Story, Mary T; Jeffery, Robert W; Rydell, Sarah A

    2008-12-05

    Although point-of-purchase calorie labeling at restaurants has been proposed as a strategy for improving consumer food choices, a limited number of studies have evaluated this approach. Likewise, little research has been conducted to evaluate the influence of value size pricing on restaurant meal choices. To examine the effect of point-of-purchase calorie information and value size pricing on fast food meal choices a randomized 2 x 2 factorial experiment was conducted in which participants ordered a fast food meal from one of four menus that varied with respect to whether calorie information was provided and whether value size pricing was used. Study participants included 594 adolescents and adults who regularly ate at fast food restaurants. Study staff recorded the foods ordered and consumed by each participant. Participants also completed surveys to assess attitudes, beliefs and practices related to fast food and nutrition. No significant differences in the energy composition of meals ordered or eaten were found between menu conditions. The average energy content of meals ordered by those randomized to a menu that included calorie information and did not include value size pricing was 842 kcals compared with 827 kcals for those who ordered their meal from a menu that did not include calorie information but had value size pricing (control menu). Results were similar in most analyses conducted stratified by factors such as age, race and education level. Additional research is needed to better evaluate the effects of calorie labeling and value size pricing on fast food meal choices. Studies in which participants are repeatedly exposed to these factors are needed since long term exposure may be required for behavior change.

  14. Price and Service Competition in the Supply Chain with both Pure Play Internet and Strong Bricks-and-Mortar Retailers

    Directory of Open Access Journals (Sweden)

    B. Dan

    2014-04-01

    Full Text Available In the traditional retail industry, some supermarket chains and department stores have been maintaining strong positions as the market comes to maturity. They can make use of the strong positions to squeeze their suppliers and obtain extra earnings. This situation may be challenged by the rapid development of e-commerce. Consumers’ purchase habits have been changing and many manufacturers are starting to sell goods through electronic retailers, in addition to their traditional distribution channels. This paper analyzes price and service competition in the dual-channel supply chain with both pure play Internet and strong bricks-and mortar retailers, investigates the influence of retailer power and proposes some competitive strategies for traditional retailer under e-commerce environment. The demand model is proposed based on consumer utility theory, and Stackelberg theory is used to analyze the game process in which the manufacturer is the leader and the two retailers, acting simultaneously, are the followers. The equilibrium price and service decisions of the supply chain members are reached. The analysis of the competitive strategy is divided into two parts. Firstly, the influence of the retailer power on members of the supply chain is examined. We find that although the traditional retailer can use its power to depress the wholesale price, this strategy cannot help the traditional retailer increase its profit. Secondly, other competitive strategies of the traditional retailer are analyzed and the traditional retailer is found to be able to improve its operating status through adjusting prices and services via specific actions.

  15. Hourly rate of direct labor - contributions to its applicability in the pricing process inserted in a competitive market

    Directory of Open Access Journals (Sweden)

    Antonio Benedito Silva Oliveira

    2016-12-01

    Full Text Available The detailed cost analysis is currently required as a result of increasingly competitive markets. The strategic cost management, analyzed from the optic of the target costing, can be a powerful tool for companies to keep themselves competitive. In this way, this study aimed to present a meticulous analysis of the hourly rate of direct labor in the pricing process of a new product, in order to understand if its use is appropriate in a pricing process. We used the deductive method supported in a case study, and the result achieved is that the hourly rate of direct current labor cannot be used in the pricing process, otherwise will be determined unrealistic costs to the product. It is important to highlight that this analysis applies to micro and small until large corporations.

  16. Estimation of Dynamic Discrete Choice Models in Continuous Time with an Application to Retail Competition

    OpenAIRE

    Peter Arcidiacono; Patrick Bayer; Jason R. Blevins; Paul B. Ellickson

    2012-01-01

    This paper develops a dynamic model of retail competition and uses it to study the impact of the expansion of a new national competitor on the structure of urban markets. In order to accommodate substantial heterogeneity (both observed and unobserved) across agents and markets, the paper first develops a general framework for estimating and solving dynamic discrete choice models in continuous time that is computationally light and readily applicable to dynamic games. In the proposed framework...

  17. The "consumer choice" paradigm in German ordoliberalism and its impact upon EU competition law

    OpenAIRE

    Behrens, Peter

    2014-01-01

    This paper explores the origin and development of the consumer choice paradigm as the core concept of German ordoliberal thought which has had a strong impact on EU competition policy and law. Outside Germany, ordoliberal thought is often identified exclusively with the learning of the original Freiburg School which represents the formative period of German ordoliberalism after the Second World War. Major developments since then have remained largely unrecognized. This paper sets out the impo...

  18. The Rational Choice for Cooperation and Competition in the Fuzzy Sense

    Institute of Scientific and Technical Information of China (English)

    HandongZhang; WeihanYang; BaodongXu

    2004-01-01

    An rational and effective fuzzy choice strategy to competition and cooperation (C&C) for two-player competitive situations is submitted in this paper, which computes player's total performance including both absolute and relative performance and representing the relation between cooperation degree and the objective and subjective factors that they are faced; an algorithm to the practical problem based on fuzzy optimizing technique is then analyzed stress in the fuzzy sense, the method can be used for the player to obtain a rational behaviour under the competitive environment, some key factors for implementation the decision making scheme are proposed too; finally, the suggested method is illustrated by a numerical example. It provides useful reference model for the player to realize rational decision making strategy under the unceratinty environment.

  19. Taking dietary habits into account: A computational method for modeling food choices that goes beyond price.

    Science.gov (United States)

    Beheshti, Rahmatollah; Jones-Smith, Jessica C; Igusa, Takeru

    2017-01-01

    Computational models have gained popularity as a predictive tool for assessing proposed policy changes affecting dietary choice. Specifically, they have been used for modeling dietary changes in response to economic interventions, such as price and income changes. Herein, we present a novel addition to this type of model by incorporating habitual behaviors that drive individuals to maintain or conform to prior eating patterns. We examine our method in a simulated case study of food choice behaviors of low-income adults in the US. We use data from several national datasets, including the National Health and Nutrition Examination Survey (NHANES), the US Bureau of Labor Statistics and the USDA, to parameterize our model and develop predictive capabilities in 1) quantifying the influence of prior diet preferences when food budgets are increased and 2) simulating the income elasticities of demand for four food categories. Food budgets can increase because of greater affordability (due to food aid and other nutritional assistance programs), or because of higher income. Our model predictions indicate that low-income adults consume unhealthy diets when they have highly constrained budgets, but that even after budget constraints are relaxed, these unhealthy eating behaviors are maintained. Specifically, diets in this population, before and after changes in food budgets, are characterized by relatively low consumption of fruits and vegetables and high consumption of fat. The model results for income elasticities also show almost no change in consumption of fruit and fat in response to changes in income, which is in agreement with data from the World Bank's International Comparison Program (ICP). Hence, the proposed method can be used in assessing the influences of habitual dietary patterns on the effectiveness of food policies.

  20. Memory-Based Simple Heuristics as Attribute Substitution: Competitive Tests of Binary Choice Inference Models.

    Science.gov (United States)

    Honda, Hidehito; Matsuka, Toshihiko; Ueda, Kazuhiro

    2016-07-20

    Some researchers on binary choice inference have argued that people make inferences based on simple heuristics, such as recognition, fluency, or familiarity. Others have argued that people make inferences based on available knowledge. To examine the boundary between heuristic and knowledge usage, we examine binary choice inference processes in terms of attribute substitution in heuristic use (Kahneman & Frederick, 2005). In this framework, it is predicted that people will rely on heuristic or knowledge-based inference depending on the subjective difficulty of the inference task. We conducted competitive tests of binary choice inference models representing simple heuristics (fluency and familiarity heuristics) and knowledge-based inference models. We found that a simple heuristic model (especially a familiarity heuristic model) explained inference patterns for subjectively difficult inference tasks, and that a knowledge-based inference model explained subjectively easy inference tasks. These results were consistent with the predictions of the attribute substitution framework. Issues on usage of simple heuristics and psychological processes are discussed.

  1. Research on choices of methods of internet of things pricing based on variation of perceived value of service

    Directory of Open Access Journals (Sweden)

    Wei Li

    2013-03-01

    Full Text Available Purpose: With the rapid progress of Internet of Things technology, the information service of IoT has got unprecedented development, and plays an increasingly important role in real life. For the increasing demand of information service, the pricing of information service becomes more important. This paper aims to analyze the strategic options and payoff function between information provider and intermediaries based on Stackelberg game. Firstly, we describe information service delivery method based on the Internet of Things specific function. Secondly, we calculate the consumer demand for the information service. Finally, we explain two kinds of strategic options by the game theory, and then discuss the optimal pricing method of information services based on profit maximization.Design/methodology/approach: To achieve this objective, Considering the consumer perceived value of Internet of Things Service changing, we establish a Stackelberg model in which the supplier is the leader followed by the middleman. Then, we compare the advantages of using individual pricing with that of bundling pricing.Findings: The results show that whether information providers adopt bundling pricing strategy or individual pricing strategy depends on the cost of perception equipment, if information providers want to adopt individual pricing strategy, the variation of consumers’ perception value of information services must meet certain conditions.Research limitations/implications: the providers make price for the information service, in addition to continuously improve the quality of information service, it also devotes resources to tapping and understanding market information, such as the sensor device price, the variation of perception value of information services and so on, so as to create competitive advantage. This paper is just a preliminary model, it does not take into account the effect of mixed bundling.Originality/value: In this research, a new model for

  2. Competitive Science Events: Gender, Interest, Science Self-Efficacy, and Academic Major Choice

    Science.gov (United States)

    Forrester, Jennifer Harris

    Understanding present barriers to choosing a STEM major is important for science educators so that we may better prepare and inspire future generations of scientists and engineers. This study examined the relationships between participation in competitive science events, gender, race, science self-efficacy, interest in science, and choosing a STEM discipline as a college major. The participants included 1,488 freshman students at a large southeastern public university. Students completed a survey of pre-college experiences with science events, science interests, and college major, as well as, an assessment of science self-efficacy. A subsample of sixty students (30 STEM; 30 non-STEM majors) were interviewed about their participation and academic major choice. Results showed that science, engineering, and non-STEM disciplines were the most frequently reported academic majors. Significant gender differences were found for science self-efficacy and academic major choice. There were significant race differences for participation in specific types of science competitions. Study participants also reported being motivated to participate in a competitive science event as a result of their teacher or parents' encouragement.

  3. Aspects of Price Competitiveness in the Context of Preparing for Accession to the Euro Zone. New Challenges for Entrepreneurs. Romania’s Case

    Directory of Open Access Journals (Sweden)

    Lucian Claudiu ANGHEL

    2014-12-01

    Full Text Available In the process of preparing a state for the accession to the Euro Zone it is essential to analyze the price competitiveness of that state’s economy and the challenges that entrepreneurs will have to face in the new economic environment. In the present paper the authors want to capture some aspects of the competitiveness of the Romanian economy and implicit its entrepreneurs with emphasis on price competitiveness, whereas accession to the Euro Zone implies giving up to the independence of exchange rate policy, with a huge impact on price competitiveness. For this purpose this study will highlight a few elements on the relative importance of price competitiveness of entrepreneurs’ exports performance. The process of accessing Euro Zone creates significant changes in the existing way of conducting business and impacts significantly entire business environment – and this will become evident also for Romania.

  4. Model of Dynamic Pricing for Two Parallels Flights with Multiple Fare Classes Based on Passenger Choice Behavior

    Directory of Open Access Journals (Sweden)

    Ahmad Rusdiansyah

    2010-01-01

    Full Text Available Airline revenue management (ARM is one of emerging topics in transportation logistics areas. This paper discusses a problem in ARM which is dynamic pricing for two parallel flights owned by the same airline. We extended the existing model on Joint Pricing Model for Parallel Flights under passenger choice behavior in the literature. We generalized the model to consider multiple full-fare class instead of only single full-fare class. Consequently, we have to define the seat allocation for each fare class beforehand. We have combined the joint pricing model and the model of nested Expected Marginal Seat Revenue (EMSR model. To solve this hybrid model, we have developed a dynamic programming-based algorithm. We also have conducted numerical experiments to show the behavior of our model. Our experiment results have showed that the expected revenue of both flights significantly induced by the proportion of the time flexible passengers and the number of allocated seat in each full-fare class. As managerial insights, our model has proved that there is a closed relationship between demand management, which is represented by the price of each fare class, and total expected revenue considering the passenger choice behavior.

  5. Price Competition with Reduced Consumer Switching Costs: The Case of "Wireless Number Portability" in the Cellular Phone Industry

    OpenAIRE

    Mengze Shi; Jeongwen Chiang; Byong-Duk Rhee

    2006-01-01

    Wireless number portability (WNP) is a telecommunication regulatory policy that requires cellular phone service providers to allow customers who switch service subscriptions to retain their original phone numbers. The right to retain the number lowers the switching cost for a consumer. Thus, the purpose of the policy is to induce more competition and facilitate the growth of new or small service providers. In this paper, we show that WNP drives market price downward as expected but with a sur...

  6. Study on Complex Advertising and Price Competition Dual-Channel Supply Chain Models Considering the Overconfidence Manufacturer

    Directory of Open Access Journals (Sweden)

    Junhai Ma

    2016-01-01

    Full Text Available In order to explore how the manufacturers make decisions when two manufacturers compete for local advertising investment, we examine two noncooperative models (Stackelberg and Nash game and propose a cost sharing contract to investigate channel competition of dual-channel supply chain. The dominant power between manufacturer and retailer and the effect of channel competition strategy on price are mainly discussed. In addition, dynamic system concepts are integrated into Stackelberg game model based on bounded rational mechanism. We analyze the local stability and find that the stability level of the dual-channel supply chains depends crucially on the price adjustment speed, the level of demand uncertainty, and the risk preference. The outcome shows that, under the master-slave game model, the profits of manufacturers are greater than that under decentralized decision-making mode, and the profits of retailers under master-slave game model are less than that under decentralized decision-making mode. The profits of manufacturers and retailers in the stable region are greater than that in unstable region. Finally, the delay feedback control method is utilized and effectively controls the chaotic behavior of dual-channel supply chain model. The results have theoretical and practical significance for the game models in terms of advertising and price competition.

  7. Efficiency Effects of Unit-based Pricing Systems and Institutional Choices of Waste Collection

    NARCIS (Netherlands)

    E. Dijkgraaf (Elbert); R.H.J.M. Gradus (Raymond)

    2014-01-01

    markdownabstract__Abstract__ Much attention has been paid to the influence of the institutional form of waste collection on costs. We extend this literature in three directions by including the unit-based pricing system. First, we show that unit-based pricing systems are more important from a

  8. The effect of recycling price uncertainty on municipal waste management choices.

    Science.gov (United States)

    Lavee, Doron; Regev, Uri; Zemel, Amos

    2009-08-01

    This paper analyzes the effect of price uncertainty and irreversible investment on the decision of municipalities to switch from landfill waste disposal to recycling by developing a model to predict recycling adoption behavior and applying it to empirical data. It is shown that uncertainty regarding the price of recycled materials may induce a risk neutral municipality to prefer landfill disposal, even when recycling is less expensive. A model is developed to describe the switching process and estimate its parameters using empirical data from 79 municipalities in Israel. The model is then used to predict municipalities' recycling adoption decisions under various assumptions regarding price uncertainty. The results support the hypothesis that price uncertainty is a major obstacle for recycling. Finally, several options for price stabilization are sketched and it is argued that these policies may be effective in establishing viable recycling markets.

  9. Steady Increase In Prices For Oral Anticancer Drugs After Market Launch Suggests A Lack Of Competitive Pressure.

    Science.gov (United States)

    Bennette, Caroline S; Richards, Catherine; Sullivan, Sean D; Ramsey, Scott D

    2016-05-01

    The cost of treating cancer has risen to unprecedented heights, putting tremendous financial pressure on patients, payers, and society. Previous studies have documented the rising prices of cancer drugs at launch, but less critical attention has been paid to the cost of these drugs after launch. We used pharmacy claims for commercially insured individuals to examine trends in postlaunch prices over time for orally administered anticancer drugs recently approved by the Food and Drug Administration (FDA). In the period 2007-13, inflation-adjusted per patient monthly drug prices increased 5 percent each year. Certain market changes also played a role, with prices rising an additional 10 percent with each supplemental indication approved by the FDA and declining 2 percent with the FDA's approval of a competitor drug. Our findings suggest that there is currently little competitive pressure in the oral anticancer drug market. Policy makers who wish to reduce the costs of anticancer drugs should consider implementing policies that affect prices not only at launch but also later.

  10. DEFINING ASPECTS OF SETTING THE PRICE ACCORDING TO THE CUSTOMER AND THE COMPETITION

    Directory of Open Access Journals (Sweden)

    Adrian MICU

    2006-01-01

    Full Text Available Few managers, even those specializing in marketing, think strategically aboutpricing. Consider your experiences and observations. Were the pricingdecisions you encountered made in reaction to a pricing problem, or werethey planned to exploit an opportunity? Did the company arrive at thosedecisions by analyzing only the immediate impact on profitability, or did it alsoconsider how the reactions of customers or competitors might change thepicture? Did the decisions focus purely on price, or did they involve alignmentof a marketing program to support the pricing decision? Few companiesproactively manage their business to create the conditions that foster moreprofitable pricing.

  11. From monopoly price to an economically appropriate renumeration. A competition law and energy industry law analysis for the determination of the purchase price in the competition for power distribution systems; Vom Monopolpreis zur wirtschaftlich angemessenen Verguetung. Eine wettbewerbs- und energiewirtschaftsrechtliche Analyse zur Kaufpreisermittlung im Wettbewerb um Energieverteilnetze

    Energy Technology Data Exchange (ETDEWEB)

    Sachse, Anna Birka Leona

    2013-06-01

    The central question of the competition for power distribution systems is: monopoly price or economically reasonable compensation. The author of the contribution under consideration determines the limits arising from the legally induced system of competition for the grids for the amount of purchase price. The contribution also examines what is meant by a commercially reasonable remuneration in this context. The central question of a proper evaluation method for determining the price of a grid is to be answered.

  12. Competition policy: consequences of restrictive trade practices and price-fixing provisions for medical practitioners in Australia and New Zealand.

    Science.gov (United States)

    Janes, Hanne

    2006-05-01

    Competition laws have only applied to many participants in the health care industry in Australia and New Zealand since the mid 1990s. Since then, the Australian Competition and Consumer Commission has considered a number of applications by medical practitioner associations and private hospitals to authorise potentially anti-competitive conduct, while the New Zealand Commerce Commission has successfully prosecuted a group of ophthalmologists. Amongst medical practitioners, however, there is still confusion and misunderstanding concerning the type of conduct caught by the Australian Trade Practices Act 1974 (Cth) and the New Zealand Commerce Act 1986 (NZ). This is of serious concern given the substantial penalties associated with price-fixing and restrictive trade practices. This article examines the provisions of these Acts most relevant to medical practitioners as well as a number of determinations and judicial decisions. To provide practical assistance to medical practitioners, the key lessons are extracted.

  13. Price-Matching leads to the Cournot Outcome

    DEFF Research Database (Denmark)

    Batsaikhan, Mongoljin; Tumennasan, Norovsambuu

    We study the effects of price-matching in a duopoly setting in which each firm selects both its price and output, simultaneously. We show that the availability of a pricematching option leads to the Cournot outcome in this setting. This result is a stark contrast to the one obtained in the standa...... Bertrand competition that the market price in the presence of a price-matching option ranges from the monopolistic price to the Bertrand price. Our result suggests that the effect of price-matching depends on whether the output is a choice variable for the firms....

  14. Competition, regulation, and pricing behaviour in the Spanish retail gasoline market

    Energy Technology Data Exchange (ETDEWEB)

    Contin-Pilart, Ignacio [Departamento de Gestion de Empresas, Universidad Publica de Navarra, Campus de Arrosadia, 31006 Pamplona (Spain); Correlje, Aad F. [Section Economics of Infrastructures, Faculty of Technology, Policy and Management, Delft University of Technology, P.O. Box 5015, 2600 GA Delft (Netherlands); Clingendael International Energy Programme (Netherlands); Blanca Palacios, M. [Departamento de Estadistica e Investigacion Operativa, Universidad Publica de Navarra, Campus de Arrosadia, 31006 Pamplona (Spain)

    2009-01-15

    The restructuring of the Spanish oil industry produced a highly concentrated oligopoly in the retail gasoline market. In June 1990, the Spanish government introduced a system of ceiling price regulation in order to ensure that 'liberalization' was accompanied by adequate consumer protection. By 1998, prices were left to the 'free' market. This paper examines the pricing behaviour of the retail gasoline market using multivariate error correction models over the period January 1993 (abolishment of the state monopoly)-December 2004. The results suggest that gasoline retail prices respond symmetrically to increases as well as to decreases in the spot price of gasoline both over the period of price regulation (January 1993-September 1998) and over the period of free market (October 1998-December 2004). However, once the ceiling price regulation was abolished, cooperation emerged between the government and the major operators, Repsol-YPF and Cepsa-Elf, to control the inflation rate. This resulted in a slower rate of adjustment of gasoline retail prices when gasoline spot prices went up, as compared with the European pattern. Finally, the Spanish retail margin was by the end of our timing period of analysis, as in the starting years after the abolishment of the state monopoly, above the European average. This pattern confirms our political economic hypothesis, which suggests that the Spanish government and the oil companies were working together in reducing the inflation, in periods of rising oil and gasoline prices. It is also inferred that explaining the pricing pattern in energy markets may require different hypothesis than the classical perspective, involving just firms taking advantage of market power. (author)

  15. Essays on international portfolio choice and asset pricing under financial contagion

    NARCIS (Netherlands)

    Fan, Zhenzhen

    2017-01-01

    The 2008 financial crisis has witnessed prices of assets traded on different exchange markets, of various asset classes, from different geographical locations plunge simultaneously or in close succession, causing serious problems for banks, insurance companies, and other financial institutions. It

  16. Essays on international portfolio choice and asset pricing under financial contagion

    OpenAIRE

    Fan, Zhenzhen

    2017-01-01

    The 2008 financial crisis has witnessed prices of assets traded on different exchange markets, of various asset classes, from different geographical locations plunge simultaneously or in close succession, causing serious problems for banks, insurance companies, and other financial institutions. It calls for models that account for the unconventional dependence structure of asset prices beyond the classical paradigm. The class of mutually exciting jump-diffusion processes is a promising workho...

  17. Price abuse monitoring under paragraph 29 of the Law Against Restraints on Competition; Die Preismissbrauchskontrolle nach paragraph 29 GWB

    Energy Technology Data Exchange (ETDEWEB)

    Koleva, Raliza

    2013-08-01

    Written against the backdrop of criticism levelled at paragraph 29 of the Law Against Restraints on Competition (GWB) the present study undertakes a critical discussion of this legal norm along with questions and points of criticism that have been raised in its context in the literature and case law. It first addresses the central question as to whether paragraph 29 GWB conforms to the stipulations of European law and the German constitution. It then expounds the system behind paragraph 29 GWB, making a detailed examination of the individual elements of the offences covered by the regulation while giving thorough consideration to existing case law on instruments of price abuse monitoring that have been used to date under cartel law. A further focus of the present study is on the question as to what circumstances a supply company under suspicion of price abuse may claim in attempting to justify significant differences that have been found to exist between its own prices and those of a comparable company. This aspect is of great practical relevance in lawsuits concerning price abuse under cartel law, since the option of demonstrating justification is the most important line of approach for supply companies under suspicion of price abuse in attempting to fend off such allegations. Based on an analysis of past practice of the German Federal Cartel Office and the antitrust courts the author undertakes to determine a scale for assessing the costs which the responding supply company can claim in its defence. Finally she endeavours to methodologically capture the price limit concept, making proposals for its practical application with due consideration to the findings that have transpired from the study.

  18. [The effect of generic price competition on drug consumption and health insurance pharmaceutical expenditures in Hungary].

    Science.gov (United States)

    Répásy, Balázs; Endrei, Dóra; Zemplényi, Antal; Agoston, István; Hornyák, Lajos; Nagy, Zsolt; Csákvári, Tímea; Vajda, Réka; Boncz Imre

    2015-01-01

    The aim of our study was to analyze the Hungarian montelukast sodium drug market. We examined the effect of the appearance of generic drugs on the price and turnover of the brand-name drug, Singulair. Data derived from the nationwide pharmaceutical database of Hungarian National Health Insurance Fund Administration (2007-2014). We analized the turnover and price of the medicaments containing the active substance montelukast sodium. Accordingly our indicators were: consumer price, social insurance subsidy, patients' co-payment and days of treatment (DOT). First the generics started from a significantly lower price of 18 USD which was lower than the price of brand-name Singulair (32 USD). Then the prices of the generics started to diminish. While in 2007 the DOT was below 2 million, it increased over 10 million days by 2014. The increase of DOT was followed by the increase of health insurance subsidy until 2011. Then the amount of health insurance subsidy decreased from 10,5 million USD to 7 million USD in 2012. In 2013 and 2014 there was a further reduction, the amount of the health insurance subsidy decreased to 4,1 million USD in 2013, and in 2014 it was reduced to 2.2 million USD. Following the introduction of generic drugs, the price of the medicaments containing montelukast sodium was significantly reduced, while the days on treatment (DOT) increased. The patients' access to drugs containing montelukast sodium increased significantly. The annual health insurance subsidy was significantly reduced as well.

  19. Analysis of carbon mitigation policies. Feed-in tariffs, energy and carbon price interactions and competitive distortions on carbon markets

    Energy Technology Data Exchange (ETDEWEB)

    Reichenbach, Johanna

    2011-07-19

    I study several policy instruments for carbon mitigation with a focus on subsidies for renewable energies, emission taxes and emission allowances. In Chapter 1, I analyze the optimal design and the welfare implications of two policies consisting of an emission tax for conventional fossil-fuel utilities combined with a subsidy for the producers of renewable energy equipment and an emission tax combined with a feed-in tariff for renewable electricity. In Chapter 2 I study the empirical interrelationships between European emission allowance prices and prices for electricity, hard coal and natural gas with an application to portfolio allocation. In Chapters 3 and 4, I discuss several policy-related issues of emissions trading, in particular the potential for market manipulations by firms holding a dominant position in the emission market, the output market or both, and competitive distortions and leakage due to unequal emission regulations across industries, sectors, regions, or countries. (orig.)

  20. Competitiveness of coal - the evolution of price; Broadbent, G.A.

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1999-03-01

    The report addresses the mechanisms of global coal trade and trends in production costs. It discusses how the coal market price may be expected to behave in relation to that of natural gas. It summarises many of the issues that will interact to produce the equilibrium price for coal derived power particularly in relation to gas derived power in Europe. 26 refs., 15 figs., 2 tabs.

  1. Pricing, Competition, and Routing for Selfish and Strategic Nodes in Multi-hop Relay Networks

    CERN Document Server

    Xi, Yufang

    2007-01-01

    We study a pricing game in multi-hop relay networks where nodes price their services and route their traffic selfishly and strategically. In this game, each node (1) announces pricing functions which specify the payments it demands from its respective customers depending on the amount of traffic they route to it and (2) allocates the total traffic it receives to its service providers. The profit of a node is the difference between the revenue earned from servicing others and the cost of using others' services. We show that the socially optimal routing of such a game can always be induced by an equilibrium where no node can increase its profit by unilaterally changing its pricing functions or routing decision. On the other hand, there may also exist inefficient equilibria. We characterize the loss of efficiency by deriving the price of anarchy at inefficient equilibria. We show that the price of anarchy is finite for oligopolies with concave marginal cost functions, while it is infinite for general topologies ...

  2. Gas prices and fuel efficiency in the U.S. automobile industry: Policy implications of endogenous product choice

    Science.gov (United States)

    Gramlich, Jacob Pleune

    I develop, estimate, and utilize an economic model of the U.S. automobile industry. I do so to address policy questions concerning automotive fuel efficiency (the relationship between gasoline used and distance traveled). Fuel efficiency has played a prominent role in our domestic energy policy for over 30 years. Recently it has received even more attention due to rising gas prices and concern over the environment and energy dependence. The model gives quantitative predictions for market fuel efficiency at various gas prices and taxes. The model makes contributions that are both methodological and policy based, and the two chapters of the dissertation focus on each in turn. The first chapter discusses the economic model of the U.S. automobile industry. The model allows firms to choose the fuel efficiency of their new vehicles, which allows me to predict fuel efficiency responses to policy and market conditions. These predictions were not possible with previous economic models which held fuel efficiency fixed. In the model, consumers care more about fuel efficiency when gas prices are high, and firms face a technological tradeoff between providing fuel efficiency and other quality. The level of the gas price, therefore, working through consumer demand, shifts firms' optimal locations along this technology frontier. Demand is nested logit, supply is differentiated products oligopoly, and data are from the U.S. automobile market from 1971-2007. In addition to endogenizing product choice, I also contribute to the modeling literature by relaxing restrictive identifying assumptions and obtaining more realistic estimates of fuel efficiency preference. The model predicts sales declines and compositions from the summer of 2008 with reasonable success. The second chapter discusses two counterfactual policy scenarios: maintained summer 2008 gas prices, and achieving 35 mpg (miles per gallon). At 3.43 per gallon (the summer 2008 price, 23% above 2007), the model predicts

  3. Non-random pairing in American kestrels: mate choice versus intra-sexual competition

    Science.gov (United States)

    Bortolotti, Gary R.; Iko, William M.

    1992-01-01

    Natural selection may influence the arrangement of individuals into mated pairs through either inter-sexual (mate choice) or intra-sexual selection (competition). A study of the American kestrel, Falco sparverius, in northern Saskatchewan distinguished between these two processes using size as a measure of the bird's competitive ability, and condition (mass scaled to body size) as an index of quality. Both sexes arrive on the study area after spring migration in equal numbers and males establish territories. Males and females that moved among territories at the time of pair formation were not different in size or condition from those that did not move, suggesting that birds were not being displaced by superior competitors, and that females moved to encounter potential mates. Within mated pairs, there was no relationship between a bird's size and the condition of its mate for either sex as would be predicted if intra-sexual competitition explained mating patterns. Instead, there was positive assortative mating by condition, suggesting that both sexes used quality as the criterion in choosing mates. There was no correlation between the sizes of males and females in mated paird. Because there were no differences in size or condition of breeding and non-breeding males, factors other than physical attributes, such as prior experience with the area, may determine a male's success in obtaining a territory. Because females that did not obtain mates were in poorer condition than those that did, males may have rejected poor quality females. The results suggest that intra-sexual competition was not important for pair formation, and that kestrels chose mates on the basis of quality.

  4. The impact of price reductions on individuals' choice of healthy meals away from home

    DEFF Research Database (Denmark)

    Nordström, Leif Jonas; Thunström, Linda

    -labelled meals. A Keyhole-labelled meal is particularly low in calories, fat, sugar and salt, but particularly high in fibre. The results suggest that to get the majority of individuals to choose the healthy option regularly it would be necessary to alter the relative price between healthy and less healthy meals...

  5. Price Discrimination and the Location Choice of a Durable Goods Monopoly

    OpenAIRE

    Garella, P.

    1997-01-01

    The traditional analysis of the location choice by a monopoly has been developed thinking of static monopolies, namely monopolies selling non-durable goods. At the same time, the spatial approach has been widely used in applications to the choice of product design. In a spatial context, the question is if monopoly power leads to the plant location which minimizes transport costs. In terms of product characteristics the question is whether a monopoly will produce the variety which maximizes th...

  6. Cigarette price and other factors associated with brand choice and brand loyalty in Zambia: findings from the ITC Zambia Survey.

    Science.gov (United States)

    Salloum, Ramzi G; Goma, Fastone; Chelwa, Grieve; Cheng, Xi; Zulu, Richard; Kaai, Susan C; Quah, Anne C K; Thrasher, James F; Fong, Geoffrey T

    2015-07-01

    Little is known about cigarette pricing and brand loyalty in sub-Saharan Africa. This study examines these issues in Zambia, analysing data from the International Tobacco Control (ITC) Zambia Survey. Data from Wave 1 of the ITC Zambia Survey (2012) were analysed for current smokers of factory-made (FM) cigarettes compared with those who smoked both FM and roll-your-own (RYO) cigarettes, using multivariate logistic regression models to identify the predictors of brand loyalty and reasons for brand choice. 75% of FM-only smokers and 64% of FM+RYO smokers reported having a regular brand. Compared with FM-only smokers, FM+RYO smokers were, on average, older (28% vs 20% ≥40 years), low income (64% vs 43%) and had lower education (76% vs 44% 1 year) if they were aged 15-17 years (vs 40-54 years) and if they had moderate (vs low) income. Brand choice was predicted mostly by friends, taste and brand popularity. Price was more likely to be a reason for brand loyalty among FM+RYO smokers, among ≥55-year-old smokers and among those who reported being more addicted to cigarettes. These results in Zambia document the high levels of brand loyalty in a market where price variation is fairly small across cigarette brands. Future research is needed on longitudinal trends to evaluate the effect of tobacco control policies in Zambia. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

  7. Using simulation models to investigate the cumulative effects of sowing rate, sowing date and cultivar choice on weed competition.

    Science.gov (United States)

    Andrew, Izzadora K S; Storkey, Jonathan

    2017-05-01

    With the increasing pressure on crop production from the evolution of herbicide resistance, farmers are increasingly adopting Integrated Weed Management (IWM) strategies to augment their weed control. These include measures to increase the competitiveness of the crop canopy such as increased sowing rate and the use of more competitive cultivars. While there are data on the relative impact of these non-chemical weed control methods assessed in isolation, there is uncertainty about their combined contribution, which may be hindering their adoption. In this article, the INTERCOM simulation model of crop/weed competition was used to examine the combined impact of crop density, sowing date and cultivar choice on the outcomes of competition between wheat (Triticum aestivum) and Alopecurus myosuroides. Alopecurus myosuroides is a problematic weed of cereal crops in North-Western Europe and the primary target for IWM in the UK because it has evolved resistance to a range of herbicides. The model was parameterised for two cultivars with contrasting competitive ability, and simulations run across 10 years at different crop densities and two sowing dates. The results suggest that sowing date, sowing density and cultivar choice largely work in a complementary fashion, allowing enhanced competitive ability against weeds when used in combination. However, the relative benefit of choosing a more competitive cultivar decreases at later sowing dates and higher crop densities. Modeling approaches could be further employed to examine the effectiveness of IWM, reducing the need for more expensive and cumbersome long-term in situ experimentation.

  8. Price-Quality Competition in the Exports of the Central and Eastern European Countries

    DEFF Research Database (Denmark)

    Nielsen, Jørgen Ulff-Møller

    2000-01-01

    In the decade since the fall of the Berlin Wall the number of CEEC products able to compete in export markets has steadily increased. The quality level of these products still lags substantially behind that of EU products, however. The quality level of new CEEC products coming into the markeet is......, in fact, lower than that of older surviving products, indicating that the CEEC countries are increasingly specialising in price-sensitive sectors. The following article uses the concept of unit value to analyse the changes in the price-quality competitiviness of CEEC exports....

  9. Price-Quality Competition in the Exports of the Central and Eastern European Countries

    DEFF Research Database (Denmark)

    Nielsen, Jørgen Ulff-Møller

    2000-01-01

    In the decade since the fall of the Berlin Wall the number of CEEC products able to compete in export markets has steadily increased. The quality level of these products still lags substantially behind that of EU products, however. The quality level of new CEEC products coming into the markeet is......, in fact, lower than that of older surviving products, indicating that the CEEC countries are increasingly specialising in price-sensitive sectors. The following article uses the concept of unit value to analyse the changes in the price-quality competitiviness of CEEC exports....

  10. The impact of price reductions on individuals’ choice of healthy meals away from home

    DEFF Research Database (Denmark)

    Nordström, Leif Jonas; Thunström, Linda

    2015-01-01

    -labelled meals. A Keyhole-labelled meal is particularly low in energy, fat, sugar and salt, but particularly high in fibre. The results suggest that to get the majority of individuals to choose the healthy option regularly it would be necessary to alter the relative price between healthy and less healthy meals....... Generally groups of individuals with a poor nutritional intake require a larger compensation (subsidy) before they choose the healthy alternative. About one third of respondents would choose the healthy option regularly if the prices for a healthy and less healthy meal were the same. In particular groups...... of individuals who already have a relatively good nutritional intake would select the healthy option. Groups with a generally poor nutritional intake (men and individuals with lower education and lower income) would gain health benefits from a subsidy of Keyhole-labelled meals....

  11. The impact of price reductions on individuals' choice of healthy meals away from home

    DEFF Research Database (Denmark)

    Nordström, Leif Jonas; Thunström, Linda

    -labelled meals. A Keyhole-labelled meal is particularly low in calories, fat, sugar and salt, but particularly high in fibre. The results suggest that to get the majority of individuals to choose the healthy option regularly it would be necessary to alter the relative price between healthy and less healthy meals....... Generally groups of individuals with a poor nutritional intake require a larger compensation (subsidy) before they choose the healthy alternative. About one third of respondents would choose the healthy option regularly if the prices for a healthy and less healthy meal were the same. In particular groups...... of individuals who already have a relatively good nutritional intake would select the healthy option. Groups with a generally poor nutritional intake (men and individuals with lower education and lower income) would gain health benefits from a subsidy of Keyhole-labelled meals....

  12. The constitutional protection of trade secrets and patents under the Biologics Price Competition and Innovation Act of 2009.

    Science.gov (United States)

    Epstein, Richard A

    2011-01-01

    The Biologics Price Competition and Innovation Act of 2009 ("Biosimilars Act") is for the field of pharmaceutical products the single most important legislative development since passage of the Drug Price Competition and Patent Term Restoration Act of 1984 ("Hatch-Waxman Act"), on which portions of the Biosimilars Act are clearly patterned. Congress revised section 351 of the Public Health Service Act (PHSA) to create a pathway for FDA approval of "biosimilar" biological products. Each biosimilar applicant is required to cite in its application a "reference product" that was approved on the basis of a full application containing testing data and manufacturing information, which is owned and was submitted by another company and much of which constitutes trade secret information subject to constitutional protection. Because the Biosimilars Act authorizes biosimilar applicants to cite these previously approved applications, the implementation of the new legislative scheme raises critical issues under the Fifth Amendment of the Constitution, pursuant to which private property--trade secrets included--may not be taken for public use, without "just compensation." FDA must confront those issues as it implements the scheme set out in the Biosimilars Act. This article will discuss these issues, after providing a brief overview of the Biosimilars Act and a more detailed examination of the law of trade secrets.

  13. The Relationship of Competition and Choice to Innovation in Education Markets: A Review of Research on Four Cases.

    Science.gov (United States)

    Lubienski, Chris

    Concerned about the deadening effects of standardization imposed by monopolistic education bureaucracies, policymakers in many different countries endorse economic-style mechanisms of consumer choice and competition between autonomous providers as the key elements of "market-driven" education. The reasoning behind this approach is that market…

  14. The Dynamics of Bertrand Price Competition with Cost-Reducing Investments

    DEFF Research Database (Denmark)

    Iskhakov, Fedor; Rust, John; Schjerning, Bertel

    2015-01-01

    the set of all Markov perfect equilibria in this game and show that the generic equilibrium outcome involves leapfrogging and piece-wise flat equilibrium price paths with permanent discontinuous declines that occur when one firm leapfrogs its rival. Unlike the static Bertrand model, the equilibria...

  15. 78 FR 69553 - Domestic Competitive Products Pricing and Mailing Standards Changes

    Science.gov (United States)

    2013-11-20

    ...-Class Package Service\\TM\\. Parcel Select . Standard Post\\TM\\. Extra Services. Return Services. Mailer..., First-Class Package Service prices will increase 5.0 percent. The Intelligent Mail package barcode (IMpb... $5.20 and Adult Signature Restricted Delivery is $5.45. ] Return Services Parcel Return Service...

  16. Settlement of Internal Cutthroat Competition Amid IT Group Companies: Away from "Prisoners' Dilemma" of Price Wars

    Institute of Scientific and Technical Information of China (English)

    CHEN Chao-long

    2006-01-01

    Cutthroat competition amid subsidiary companies of IT Group Company due to immanent characteristics of IT industry and grouping management mechanism infringes upon the collective profits. Two ways to avoid cutthroat competition of group company with game theory are studied: the assessment objective made by IT group company for subsidiary companies focuses on profits not revenue;the supervisory department of group company shall intensify law enforcement strength and give severe punishment against illegal depreciation of the subsidiary company.

  17. ALTERNATIVES, FRAMES, AND RELATIVE PRICES - A BROADER VIEW OF RATIONAL CHOICE THEORY

    NARCIS (Netherlands)

    LINDENBERG, S; FREY, BS

    1993-01-01

    One important consequence of the increasing convergence between sociology and economics is that sociologists make increasingly more use of rational choice theories for the explanation of social action. This shift opens up the possibility that sociologists make use of what must be considered to be th

  18. ALTERNATIVES, FRAMES, AND RELATIVE PRICES - A BROADER VIEW OF RATIONAL CHOICE THEORY

    NARCIS (Netherlands)

    LINDENBERG, S; FREY, BS

    One important consequence of the increasing convergence between sociology and economics is that sociologists make increasingly more use of rational choice theories for the explanation of social action. This shift opens up the possibility that sociologists make use of what must be considered to be

  19. Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition

    Directory of Open Access Journals (Sweden)

    B. C. Giri

    2014-06-01

    Full Text Available This article studies the manufacturer's pricing strategy in a supply chain with a single manufacturer and two competing retailers. The manufacturer, as a Stackelberg leader specifies wholesale prices to two retailers who face advertisement dependent demand. Based on this gaming structure, two mathematical models are developed - the cooperative advertising model where manufacturer shares a fraction of retailers' advertising costs and the non-cooperative advertising model where manufacturer does not share any retailer's advertising expenses. The optimal strategies of the manufacturer and retailers are determined and a numerical example is taken to illustrate the theoretical results derived. We show that cooperative advertising policy is beneficial not only for the participating entities but also for the entire supply chain.

  20. The impact of price reductions on individuals' choice of healthy meals away from home.

    Science.gov (United States)

    Nordström, Jonas; Thunström, Linda

    2015-06-01

    Food high in energy but low in nutritional value is an important contributor to several serious illnesses, and one type of food that is particularly high in energy but low in nutrition is food consumed away from home. In this paper, we examine the demand and willingness to pay for healthy, Keyhole-labelled meals. A Keyhole-labelled meal is particularly low in energy, fat, sugar and salt, but particularly high in fibre. The results suggest that to get the majority of individuals to choose the healthy option regularly it would be necessary to alter the relative price between healthy and less healthy meals. Generally groups of individuals with a poor nutritional intake require a larger compensation (subsidy) before they choose the healthy alternative. About one third of respondents would choose the healthy option regularly if the prices for a healthy and less healthy meal were the same. In particular groups of individuals who already have a relatively good nutritional intake would select the healthy option. Groups with a generally poor nutritional intake (men and individuals with lower education and lower income) would gain health benefits from a subsidy of Keyhole-labelled meals. Copyright © 2015 Elsevier Ltd. All rights reserved.

  1. Essays on strategic location choices and pricing strategies in oligopolistic markets

    OpenAIRE

    Erdmann, Anett

    2016-01-01

    The three chapters of this dissertation contribute to the understanding of strategic firm behavior in oligopolistic markets. In particular, I link spatial market features to standard competition analysis, which enables new perspectives to explain market outcomes in geographically defined markets and provide applications to the grocery retail industry. Chapter 1 studies the importance of returns to product differentiation and distribution economies for a firm’s optimal location ...

  2. Putting a price tag on cities : Insights into the competitive environment of places

    NARCIS (Netherlands)

    Zenker, Sebastian; Eggers, Felix; Farsky, Mario

    Today cities are in strong competition for companies, tourists, and most of all talents. In order to differentiate one city from another, place marketers increasingly focus on establishing the city as a brand and adopt marketing techniques in order to identify competitors and analyze the impact of

  3. Putting a price tag on cities : Insights into the competitive environment of places

    NARCIS (Netherlands)

    Zenker, Sebastian; Eggers, Felix; Farsky, Mario

    2013-01-01

    Today cities are in strong competition for companies, tourists, and most of all talents. In order to differentiate one city from another, place marketers increasingly focus on establishing the city as a brand and adopt marketing techniques in order to identify competitors and analyze the impact of t

  4. Competition and Oligopoly: A Case of UK Grocery Retailing

    Directory of Open Access Journals (Sweden)

    Kevin A. Lawler

    2003-09-01

    Full Text Available In this paper we develop a model of Bertrand price competition with uncertainty as to the number of bidders. The auction models predict retail price dispersion as an observable feature of price discrimination. The implications of the auction models are tested using a logit model on primary data. Some simulations of the logit model further enrich and capture critical states of chain-store rivalry. The findings show that consumer characteristics define type of store choice and that an auction model of price competition with uncertainty is an appropriate way to model retail grocery competition.

  5. Product Variety, Consumer Preferences, and Web Technology: Can the Web of Data Reduce Price Competition and Increase Customer Satisfaction?

    Science.gov (United States)

    Hepp, Martin

    E-Commerce on the basis of current Web technology has created fierce competition with a strong focus on price. Despite a huge variety of offerings and diversity in the individual preferences of consumers, current Web search fosters a very early reduction of the search space to just a few commodity makes and models. As soon as this reduction has taken place, search is reduced to flat price comparison. This is unfortunate for the manufacturers and vendors, because their individual value proposition for a particular customer may get lost in the course of communication over the Web, and it is unfortunate for the customer, because he/she may not get the most utility for the money based on her/his preference function. A key limitation is that consumers cannot search using a consolidated view on all alternative offers across the Web. In this talk, I will (1) analyze the technical effects of products and services search on the Web that cause this mismatch between supply and demand, (2) evaluate how the GoodRelations vocabulary and the current Web of Data movement can improve the situation, (3) give a brief hands-on demonstration, and (4) sketch business models for the various market participants.

  6. The Impact Discounts and the Price-Quality Effect Have on the Choice of an Institution of Higher Education.

    Science.gov (United States)

    Quigley, Charles J., Jr.; Bingham, Frank G., Jr.; Notarantonio, Elaine M.; Murray, Keith

    1999-01-01

    A survey of 303 potential college students and their parents found that high price and low price institutions are evaluated higher on quality attributes than are moderately priced institutions. Further, discounts (such as financial aid) were found to have little effect on the attendance decision. Implications for the pricing strategies used by…

  7. Sexual selection in a lekking bird: the relative opportunity for selection by female choice and male competition.

    Science.gov (United States)

    DuVal, Emily H; Kempenaers, Bart

    2008-09-01

    Leks are classic models for studies of sexual selection due to extreme variance in male reproductive success, but the relative influence of intrasexual competition and female mate choice in creating this skew is debatable. In the lekking lance-tailed manakin (Chiroxiphia lanceolata), these selective episodes are temporally separated into intrasexual competition for alpha status and female mate choice among alpha males that rarely interact. Variance in reproductive success between status classes of adult males (alpha versus non-alpha) can therefore be attributed to male-male competition whereas that within status largely reflects female mate choice. This provides an excellent opportunity for quantifying the relative contribution of each of these mechanisms of sexual selection to the overall opportunity for sexual selection on males (I males). To calculate variance in actual reproductive success, we assigned genetic paternity to 92.3% of 447 chicks sampled in seven years. Reproduction by non-alphas was rare and apparently reflected status misclassifications or opportunistic copulations en route to attaining alpha status rather than alternative mating strategies. On average 31% (range 7-44%, n=6 years) of the total I males was due to variance in reproductive success between alphas and non-alphas. Similarly, in a cohort of same-aged males followed for six years, 44-58% of the total I males was attributed to variance between males of different status. Thus, both intrasexual competition for status and female mate choice among lekking alpha males contribute substantially to the potential for sexual selection in this species.

  8. Post-copulatory opportunities for sperm competition and cryptic female choice provide no offspring fitness benefits in externally fertilizing salmon.

    Science.gov (United States)

    Lumley, Alyson J; Diamond, Sian E; Einum, Sigurd; Yeates, Sarah E; Peruffo, Danielle; Emerson, Brent C; Gage, Matthew J G

    2016-03-01

    There is increasing evidence that females can somehow improve their offspring fitness by mating with multiple males, but we understand little about the exact stage(s) at which such benefits are gained. Here, we measure whether offspring fitness is influenced by mechanisms operating solely between sperm and egg. Using externally fertilizing and polyandrous Atlantic salmon (Salmo salar), we employed split-clutch and split-ejaculate in vitro fertilization experiments to generate offspring using designs that either denied or applied opportunities for sperm competition and cryptic female choice. Following fertilizations, we measured 140 days of offspring fitness after hatch, through growth and survival in hatchery and near-natural conditions. Despite an average composite mortality of 61%, offspring fitness at every life stage was near-identical between groups fertilized under the absence versus presence of opportunities for sperm competition and cryptic female choice. Of the 21 551 and 21 771 eggs from 24 females fertilized under monandrous versus polyandrous conditions, 68% versus 67.8% survived to the 100-day juvenile stage; sub-samples showed similar hatching success (73.1% versus 74.3%), had similar survival over 40 days in near-natural streams (57.3% versus 56.2%) and grew at similar rates throughout. We therefore found no evidence that gamete-specific interactions allow offspring fitness benefits when polyandrous fertilization conditions provide opportunities for sperm competition and cryptic female choice.

  9. 13 CFR 126.614 - How does a CO apply HUBZone and SDB price evaluation preferences in full and open competition?

    Science.gov (United States)

    2010-01-01

    ... SBC and an SDB must receive the benefit of both the HUBZone price evaluation preference described in.... Example 1: In a full and open competition, a qualified HUBZone SBC (but not an SDB) submits an offer of $102; an SDB (but not a qualified HUBZone SBC) submits an offer of $107; and a large business...

  10. Determinants of hospital choice of rural hospital patients: the impact of networks, service scopes, and market competition.

    Science.gov (United States)

    Roh, Chul-Young; Lee, Keon-Hyung; Fottler, Myron D

    2008-08-01

    Among 10,384 rural Colorado female patients who received MDC 14 (obstetric services) from 2000 to 2003, 6,615 (63.7%) were admitted to their local rural hospitals; 1,654 (15.9%) were admitted to other rural hospitals; and 2,115 (20.4%) traveled to urban hospitals for inpatient services. This study is to examine how network participation, service scopes, and market competition influences rural women's choice of hospital for their obstetric care. A conditional logistic regression analysis was used. The network participation (p market competition had a positive and significant relationship with patients' choice to receive obstetric care. That is, rural patients prefer to receive care from a hospital that participates in a network, that provides more number of services, and that has a greater market share (i.e., a lower level of market competition) in their locality. Rural hospitals could actively increase their competitiveness and market share by increasing the number of health care services provided and seeking to network with other hospitals.

  11. Do prices fall faster when Wal-Mart is around? The effect of competition and reputation on cost pass-through and price adjustment

    OpenAIRE

    Martens, M. Andrea

    2009-01-01

    This study analyzes Wal-Mart’s pricing practices and its influence on competitors’ input cost transmission. Previous attempts to analyze Wal-Mart’s pricing strategy in the United States have been limited by the company’s refusal to provide scanner data to third party research firms such as AC Nielsen. This is the first study to observe Wal-Mart’s prices over an extended period of time. Using weekly-store level price data between 2001 and 2006 that government officials collected in 12 Mexican citie...

  12. Avoiding Terminations, Single Offer Competition, and Costly Change Orders with Fixed-Price Contracts

    Science.gov (United States)

    2015-04-30

    cannot be parents nor children of each other. In the case of IDV and linked, this is because the causal link is difficult adjudicate because of...ååì~ä=^Åèìáëáíáçå= oÉëÉ~êÅÜ=póãéçëáìã= qÜìêëÇ~ó=pÉëëáçåë= sçäìãÉ=ff= = Avoiding Terminations, Single Offer Competition, and Costly Change Orders With...REPORT DATE 30 APR 2015 2. REPORT TYPE 3. DATES COVERED 00-00-2015 to 00-00-2015 4. TITLE AND SUBTITLE Avoiding Terminations, Single Offer

  13. Supply Chains Competition under Uncertainty Concerning Player’s Strategies and Customer Choice Behavior: A Generalized Nash Game Approach

    Directory of Open Access Journals (Sweden)

    A. Hafezalkotob

    2012-01-01

    Full Text Available Decision makers in a supply chain confront two main sources of uncertainty in market environment including uncertainty about customers purchasing behaviors and rival chains strategies. Focusing on competition between two supply chains, it is considered that each customer as an independent player selects products of these chains based on random utility model. Similar to quantal response equilibrium approach, we take account of customer rationality as an exogenous parameter. Moreover, it is assumed that decision makers in a supply chain can perceive an estimation of rival strategies about price and service level formulated in the model by fuzzy strategies. In the competition model, chain’s decision makers consider a subjective probability for wining each customer which is formulated by coupled constraints. These constraints connect chains strategies regarding to each customer and yield a generalized Nash equilibrium problem. Since price cutting and increasing service level are main responses to rival supply chain, after calculating optimal strategies, we show that more efficient responses depend on customer preferences.

  14. Spanish, French and British consumers' acceptability of Uruguayan beef, and consumers' beef choice associated with country of origin, finishing diet and meat price.

    Science.gov (United States)

    Realini, C E; Font i Furnols, M; Sañudo, C; Montossi, F; Oliver, M A; Guerrero, L

    2013-09-01

    The effect of country of origin (local, Switzerland, Argentina, Uruguay), finishing diet (grass, grass plus concentrate, concentrate), and price (low, medium, high) on consumer's beef choice and segmentation was evaluated in Spain, France and United Kingdom. Sensory acceptability of Uruguayan beef from different production systems was also evaluated and contrasted with consumers' beef choices. Origin was the most important characteristic for the choice of beef with preference for meat produced locally. The second most important factor was animal feed followed by price with preference for beef from grass-fed animals and lowest price. The least preferred product was beef from Uruguay, concentrate-fed animals and highest price. Sensory data showed higher acceptability scores for Uruguayan beef from grass-fed animals with or without concentrate supplementation than animals fed concentrate only. Consumer segments with distinct preferences were identified. Foreign country promotion seems to be fundamental for marketing beef in Europe, as well as the development of different marketing strategies to satisfy each consumer segment.

  15. Preferences of Bulgarian consumers for quality, access and price attributes of healthcare services-result of a discrete choice experiment.

    Science.gov (United States)

    van de Schoot, Thijs; Pavlova, Milena; Atanasova, Elka; Groot, Wim

    2017-01-01

    The aim of the study is to determine the preferences of Bulgarian citizens regarding the provision of healthcare services. A survey was carried out in Bulgaria among a nationally representative sample of 1003 respondents. Both a discrete choice experiment and a self-explicated ranking of outpatient and inpatient service attributes were included in the survey. The data are analyzed to elicit the preferences of Bulgarian healthcare consumers for service attributes and to compare them with previous studies in Bulgaria and other countries in Central and Eastern Europe. The reputation and skills of the care provider appear to be relatively most important to the respondents, followed by the state of the equipment, the condition of the facility and the attitude of the staff. The fee-level and access-related attributes (waiting and traveling time) emerged as less important. Overall, consumers in Bulgaria value the quality of healthcare provision very highly. Yet, there are some statistically significant differences between socio-demographic groups. In general, Bulgarian healthcare consumers are willing to accept higher prices for the services they use, when this comes with improved quality of services. These findings comply with findings in previous studies in Bulgaria and in the region. Given the quality problems in the Bulgarian healthcare sector, our findings indicate that priority has to be given to the improvement of healthcare quality when the Bulgarian government invests in this sector. Copyright © 2015 John Wiley & Sons, Ltd. Copyright © 2015 John Wiley & Sons, Ltd.

  16. Competition.

    Science.gov (United States)

    Chambers, D W

    1997-01-01

    Our ambivalence toward competition can be traced to an unspoken preference for certain types of competition which give us an advantage over the types we value less. Four types are defined (a) pure (same rules, same objectives), (b) collaborative (same rules, shared objective), (c) market share (different rules, same objectives), and (d) market growth (different rules, value added orientation). The defining characteristics of the four types of competition are respectively: needing a referee, arguing over the spoils, differentiation and substitutability, and customer focus. Dentistry has features of all four types of competition, thus making it difficult to have a meaningful discussion or frame a coherent policy on this topic.

  17. Consumer Variety-seeking Behavior and Corporate Pricing Competition%消费者寻求多样化与企业定价竞争

    Institute of Scientific and Technical Information of China (English)

    蒋传海; 唐丁祥; 杨渭文

    2012-01-01

    Consumer variety-seeking behavior has the important effect on the price competition among oligopolistic firms and economic efficiency. This paper indicates that, by taking consumer variety-seeking behavior into account, firms give price concessions for loyal consumers and charge new consumers high prices. Consumer variety-seeking behavior weakens corporate price competition in two periods, leading to tacit collusion. The analysis of economic efficiency on the basis of uniform pricing in two periods shows that discriminatory pricing mechanism improves the competition among firms and results in the increase in consumer surplus and the reduction in corporate profits.%消费者寻求多样化的购买行为会对寡头企业之间的价格竞争和经济效率产生重要影响。文章研究发现,针对消费者寻求多样化的购买行为,企业会对忠诚的消费者给予价格优惠,而对新顾客索取高价;消费者寻求多样化购买行为弱化了企业两期价格竞争,导致“默契合谋”;而以两期统一定价为基准的经济效率分析显示,歧视定价机制促进了企业间竞争,导致消费者剩余增加,企业利润减少。

  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. Male-male competition, female mate choice and their interaction: determining total sexual selection

    National Research Council Canada - National Science Library

    Hunt, John; Breuker, Casper J; Sadowski, Jennifer A; Moore, Allen J

    2009-01-01

    .... We first show how a quantitative partitioning and examination of sexual selection mechanisms can inform by identifying illustrative studies that describe both male-male competition and female mate...

  20. 随机需求下竞争零售商的定价策略研究%Competitive Retailers’ Pricing Strategy under Stochastic Demand

    Institute of Scientific and Technical Information of China (English)

    高晓敏; 刘志学; 左晓露

    2016-01-01

    本文研究了随机需求下两竞争零售商的定价策略选择(响应性定价或清仓定价)、产品订货量及响应性价格的联合决策问题。通过将问题转化为一个三阶段的博弈模型,基于Kuhn-Tucker条件求解了两零售商不同定价策略子博弈下的均衡产品订货量及响应性定价决策,分析了不同定价策略子博弈下产品订货量及价格决策的差别以及潜在市场需求不确定(期望和方差变动)对订货量和定价策略的影响。数值分析结果表明,当潜在市场需求服从均匀分布时,响应性定价子博弈是帕累托最优策略,清仓定价子博弈是零售商的均衡策略,混合定价子博弈下两零售商的收益差距较大。%This paper studies a joint pricing policy ( responsive pricing or market clearance pricing ) , product order quantity and responsive pricing decision for two competitive retailers under a stochastic demand environ -ment.By developing a three-stage game model, based on the Kuhn-Tucker condition, two retailers’ equilibrium order quantity and responsive pricing decisions under different pricing subgames are obtained , the differences of the order quantity and responsive pricing decisions of the four pricing subgames are analyzed , and the impact of demand uncertainty on order quantity and pricing policy are investigated as well .The numerical analysis shows that, when the potential market demand is uniformly distributed , responsive pricing subgame will be Pareto optimal, however, market clearance pricing subgame is the equilibrium pricing strategy of the retailers , and there is a huge income gap between the retailers under the mixed pricing subgame .

  1. Ownership, competition, and the adoption of new technologies and cost-saving practices in a fixed-price environment.

    Science.gov (United States)

    Hirth, R A; Chernew, M E; Orzol, S M

    2000-01-01

    Advances in medical technology have been implicated as the primary cause of rising health care expenditures. It is not yet known whether the increasing prevalence of managed care mechanisms, particularly capitation, will change substantially incentives for acquiring and using cost-increasing innovations. We examined the decisions of dialysis units (a set of providers that has faced capitation and real decreases in payment for several decades) with respect to use of cost-increasing technologies that enhance quality of care, cost-cutting practices that reduce quality of care, and amenities desired by patients that are unrelated to quality of care. We found that the dialysis payment system does not appear to have blocked access to a number of new, quality-enhancing technologies that were developed in the 1980s. However, facilities made adjustments along other valuable margins to facilitate adoption of these technologies; use of new technologies varied with numerous facility, regulatory, and case-mix characteristics including ownership, chain membership, size, market competition, and certificate of need programs. Interestingly, the trade-offs made by for-profit and nonprofit facilities when faced with fixed prices appeared quite different. For-profits tended to deliver lower technical quality of care but more amenities, while nonprofits favored technical quality of care over amenities. Our findings may have implications for the response of other types of health care providers to capitation and increasing economic constraints.

  2. Competition

    NARCIS (Netherlands)

    F. Bridoux

    2014-01-01

    Competition traditionally refers to the actions that firms take in a product market to outperform rivals in attracting customers and generating revenues. Yet, competition extends beyond product markets to other arenas such as factor markets, where firms compete for resources, and the political arena

  3. PRICING POLICY AND MARKETING STRATEGIES AS A PART OF COMPETITIVE ADVANTAGE OF RETAILS STORES IN THE SLOVAK REPUBLIC

    OpenAIRE

    Jaroslava Gburová; Róbert Štefko; Radovan Baèík

    2013-01-01

    The paper deals with price and marketing pricing strategies of retail chain stores in the Slovak Republic. The aim of this paper is to highlight the perception of the impact of economic recession in the retail chain stores. To determine the most used marketing pricing strategies has been used analysis of variance ANOVA. The global finance crisis does not have influence to selection and implementation of pricing strategy, which is used by branches of chain stores marketing management of in are...

  4. 78 FR 12006 - Wireline Competition Bureau Seeks Comment on Connect America Phase II Support for Price Cap Areas...

    Science.gov (United States)

    2013-02-21

    ... Price Cap Areas Outside of the Contiguous United States AGENCY: Federal Communications Commission... develop the record on issues relating to Connect America Phase II support for price cap carriers serving... issues relating to Connect America Phase II support for price cap carriers serving areas outside of the...

  5. Preferences and choices for care and health insurance

    NARCIS (Netherlands)

    Berg, B. van den; Dommelen, P. van; Stam, P.; Laske-Aldershof, T.; Buchmueller, T.; Schut, F.T.

    2008-01-01

    Legislation that came into effect in 2006 has dramatically altered the health insurance system in the Netherlands, placing greater emphasis on consumer choice and competition among insurers. The potential for such competition depends largely on consumer preferences for price and quality of service

  6. Preferences and choices for care and health insurance

    NARCIS (Netherlands)

    Berg, B. van den; Dommelen, P. van; Stam, P.; Laske-Aldershof, T.; Buchmueller, T.; Schut, F.T.

    2008-01-01

    Legislation that came into effect in 2006 has dramatically altered the health insurance system in the Netherlands, placing greater emphasis on consumer choice and competition among insurers. The potential for such competition depends largely on consumer preferences for price and quality of service b

  7. 消费者异质下基于质量-价格竞争的定价策略选择%Consumer Heterogeneity and Pricing Strategies:A Quality-Price Competition Model

    Institute of Scientific and Technical Information of China (English)

    孙晓东; 田澎; 赵藜

    2013-01-01

    在质量敏感市场上,消费者往往基于质量和价格作出购买决策.分析了市场上同时存在质量敏感型消费者和价格敏感型消费者时双寡头企业的质量与价格竞争,讨论了消费者异质性对企业质量和定价策略选择的影响,其中,消费者异质性表现为对价格和质量的敏感程度.基于经典Hotelling模型构造消费者的效用函数,并由此获得企业的需求和利润函数;分析了企业对消费者实施统一定价和差别定价策略时的质量和价格竞争.结果表明:在同一的竞争策略下,企业遵循“最小差异化原则”.在差别定价策略下,企业提供的产品质量高于统一定价时的质量;企业为价格敏感型消费者设置较低的价格,而为质量敏感型消费者设置较高的价格.研究表明,消费者的转换成本较高时企业应该实行差别定价,消费者的转换成本较低时应采用统一定价.此外,讨论了市场上消费者的组成结构对企业均衡价格和均衡质量的影响.%We consider duopoly quality-price competition in a market with two types of consumers:pricesensitive consumers and quality-sensitive consumers.The characteristics of consumers are reflected by both the price sensitivity and the quality sensitivity.We first establish the utility function for each type of consumers and derive the demand function for every firm based on Hotelling model.Then,we analyze the duopoly quality-price competition under two pricing strategies:uniform pricing sand discriminatory pricing.The results show that under price discrimination the quality is higher than that under the uniform pricing strategy; firms set lower prices for price-sensitive consumers and higher price for quality-sensitive consumers.By comparisons,we conclude that the firms may carry out discriminatory pricing when consumer's transportation cost is high,and adopt uniform pricing when consumer's transportation cost is low.Additionally,the proportion of

  8. Choice of the exchange policies in the developments countries: Study of the competitiveness of Tunisia

    Directory of Open Access Journals (Sweden)

    Benahji Sfaxi Hend

    2008-01-01

    Full Text Available After the collapse of the Breton Woods system, the increased fluctuations of the exchange rates pushed the developing countries to adopt exchange rate policies to avoid rocking of the balance of payments. Since 1973, Tunisia adopted fixed or intermediary exchange rate policies to support or ameliorate her competitiveness and later to balance her current account. By calculating the real effective exchange rate misalignment, we showed that this country did not achieve her goals and that amelioration of competitiveness occurred only as from the moment when she softened her exchange policies. A policy of floating exchange rate is recommended for Tunisia specially why this country is more and more open. .

  9. Impact of the liberalization of competition on the level of electricity prices in 1989-1994; Kilpailun vapautumisen vaikutus saehkoen hintatasoon 1989-1994

    Energy Technology Data Exchange (ETDEWEB)

    Raennaeri, O.

    1995-12-31

    This is a preliminary report describing electricity pricing in Finland in 1989-1994. The report focuses on the initial changes caused by the new Electricity Market Act. The study uses statistical methods to explain how the mean prices for the reference electricity consumers have developed in the utilities and what is behind the development. The reference electricity consumers are statistical units representing typical customer groups with a known yearly consumption and load distribution. The reference consumers represent households, farming and heating, as well as trade, services and industry. The study data consists of the statistical material gathered by the Association of Finnish Electric Utilities. The material comprises more than 95 % of the Finnish electricity consumers. The results of the study largely conform to the expectations addressed to the legislation. In the customer groups falling within competition the structure of the utility has no clear impact on the price level but on the profitability of the utility. Electrical heating has a stable market-based price level. Also in the case of household consumers the price level has been stabilizing nationwide. According to the study results the price policy of electrical utilities has been quite moderate for several years. The utilities have adapted themselves to the new situation. No severe disturbing influence in the market is to be expected. It is too early to predict if there will be oligopolistic behaviour or cartels in the market. A steady price leadership of some measure is to be expected. In any case the price fluctuations will probably be quite moderate

  10. Competition

    Institute of Scientific and Technical Information of China (English)

    吕思思

    2007-01-01

    <正> The term competition reminds me of asoul-stirring fight between a mother monkeyand a crocodile,The crocodile caught her babywhen the baby was drinking water in a pool,Inthe end,the mother got her baby,but herbaby’s body only,She lost her child forever,just for a mouthful of water.Such is competition,cruel and merciless,But if we see the other side of the coin,we’ll

  11. About the way of choice of conduct of boxer in competition activity

    Directory of Open Access Journals (Sweden)

    Arkhangorodskiy Z.S.

    2010-10-01

    Full Text Available The features of emotional perception of colour tones are considered for boxers. In researches took part 122 examinee. In an experiment was used eightcolour test. Information is generalized about the choice of colour tones in 14 researches. It is rotined that the emotional choice of colour tones depends on the situation factors of sporting activity and individual features of boxers. It is set that between the emotional preference of colour tones and style of battle activity of boxer there is close intercommunication.

  12. Reaching goals of managed competition? The challenge of free health plan choice.

    NARCIS (Netherlands)

    Bes, R.; Crufs, E.; Groenewegen, P.; Jong, J. de

    2015-01-01

    Introduction: In the last decades, several countries have implemented a health care system based on managed competition. In such a system, health insurers are supposed to be prudent buyers of care on behalf of their enrolees. Selective contracting and channelling patients to contracted care provider

  13. Reaching goals of managed competition? The challenge of free health plan choice.

    NARCIS (Netherlands)

    Bes, R.; Crufs, E.; Groenewegen, P.; Jong, J. de

    2015-01-01

    Introduction: In the last decades, several countries have implemented a health care system based on managed competition. In such a system, health insurers are supposed to be prudent buyers of care on behalf of their enrolees. Selective contracting and channelling patients to contracted care provider

  14. Reaching goals of managed competition? The challenge of free health plan choice.

    NARCIS (Netherlands)

    Bes, R.; Crufs, E.; Groenewegen, P.; Jong, J. de

    2015-01-01

    Introduction: In the last decades, several countries have implemented a health care system based on managed competition. In such a system, health insurers are supposed to be prudent buyers of care on behalf of their enrolees. Selective contracting and channelling patients to contracted care

  15. Choice, Competition, and Equity: Lessons from Research in the United Kingdom.

    Science.gov (United States)

    Gewirtz, Sharon

    1996-01-01

    A study of three London local education authorities explored the dynamics of British education markets. Findings showed that the market is a middle-class mode of social engagement; parental choice is class- and race-informed; schools are increasingly oriented toward meeting middle-class parents' perceived needs; and secondary schooling is becoming…

  16. On competition in a Stackelberg location-design model with deterministic supplier choice

    NARCIS (Netherlands)

    Hendrix, E.M.T.

    2016-01-01

    We study a market situation where two firms maximize market capture by deciding on the location in the plane and investing in a competing quality against investment cost. Clients choose one of the suppliers; i.e. deterministic supplier choice. To study this situation, a game theoretic model is formu

  17. The competitive advantage of nations and choice of entry strategies : a three scenario case study

    OpenAIRE

    Helvik, Marianne; Harnecker, Maria Luisa Garrido

    2005-01-01

    Michael E. Porter’s Diamond framework has been used as an analysis tool the last 15 years to define the competitive advantage of nations, but few researchers have discussed if there is a link between the Diamond framework and how international firms can pursue the best entry mode. Different variables will be presented linking the Diamond framework to entry strategies, designing an extended framework. Three case scenarios are used for analysis purposes; the first two originating in Porter’s Di...

  18. 'Be Nice Unless it Pays to Fight': A New Theory of Price Determination with Implications for Competition Policy

    OpenAIRE

    Boone, J.

    2002-01-01

    This paper introduces a simple extensive form pricing game.The Bertrand outcome is a Nash equilibrium outcome in this game, but it is not necessarily subgame perfect.The subgame perfect equilibrium outcome features the following comparative static properties.The more similar firms are, the higher the equilibrium price.Further, a new firm that enters the industry or an existing firm that becomes more efficient can raise the equilibrium price.The subgame perfect equilibrium is used to formalize...

  19. 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...

  20. Rank among Peers during Game Competition Affects the Tendency to Make Risky Choices in Adolescent Males

    Science.gov (United States)

    Foo, Jerome C.; Nagase, Kohei; Naramura-Ohno, Sawako; Yoshiuchi, Kazuhiro; Yamamoto, Yoshiharu; Morita, Kenji

    2017-01-01

    It has been shown that adolescents take more risks when they are with peers than when they are alone, presumably because the presence of peers can be a social reward/punishment that can bias decision making. Competition is inherent in peer interactions, and recent work has demonstrated that winning/losing is an intrinsic social reward/punishment. Taken together, it can be hypothesized that competition amongst peers affects adolescents’ risky behavior. While there is much evidence that status amongst peers can relate to antisocial/aggressive behavior, it remains unclear whether risky behavior is affected. Moreover, the degree to which ‘temporary status,’ such as ranking in a short-term competitive game, affects behavior is uncertain, an important issue because adolescents might be sensitive to situations or factors which potentially destabilize existing hierarchies. In this experiment, these issues were directly explored in the classroom environment using smartphone technology and Wi-Fi setup. Male junior high school students (aged 14–15) performed a roulette game task on smartphones, playing either independently or against five classmates. In the latter case, the students’ current ranks within the group of six were constantly presented on smartphone screens. To dissociate the effects of the students’ reactions to ranks from their actual performances, unknown to the students, the ranks presented were actually predetermined so that about half of the students were continuously presented with high ranks whereas the other half were continuously presented with low ranks. We found that the students presented with low ranks made more risky plays than those not presented with ranks or those presented with high ranks. This result suggests that even temporary status significantly affects adolescents’ risky behavior, and also demonstrates the usefulness of smartphones in examining and manipulating peer interactions in classroom experiments. PMID:28174543

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

    NARCIS (Netherlands)

    Carvalho, M.

    2009-01-01

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

  2. Cooperation or Competition? Channel Choice for a Remanufacturing Fashion Supply Chain with Government Subsidy

    Directory of Open Access Journals (Sweden)

    Kangzhou Wang

    2014-10-01

    Full Text Available In this paper, we address the problem of choosing an appropriate channel for the marketing channel structure of remanufactured fashion products. To be specific, we consider a remanufacturer who has two options for selling the products: (1 provide the remanufactured products to a manufacturer, then the manufacturer sells both new products and the remanufactured products to customers, and (2 sell the remanufactured products directly to customers. Because of the relatively low acceptance of remanufactured products and environment consciousness of customers in developing countries like China, we model the two scenarios as decentralized remanufacturing supply chains, with the manufacturer being the Stackelberg leader and the government offering subsidy to the remanufacturer to incentivize remanufacturing activities. We find that the subsidy can incentivize remanufacturing activity regardless of the remanufacturer’s channel choice. A “too high” or “too low” subsidy makes the remanufacturer compete with the manufacturer, and an intermediate subsidy results in cooperation between the two members of the remanufacturing supply chain. Meanwhile, if the customers’ acceptance for remanufactured products is higher, the remanufacturer will be more likely to compete with the manufacturer. However, the remanufacturer’s optimal channel choice may be inefficient in the sense of social welfare and environmental protection.

  3. Competition

    CERN Multimedia

    Staff Association

    2017-01-01

    Get ready for the Easter Egg Hunt! The Staff Association is organising a competition from 10 to 21 April 2017. There are several Go Sport gift vouchers to win, with a value of 50 € each. Try your luck! Count the number of different eggs that we have hidden on our website. Then indicate your answer in the online form. To participate, you just need to be a member of the Staff Association. Winners will be randomly drawn among the correct answers.

  4. Competition

    CERN Multimedia

    Staff Association

    2016-01-01

      The Staff Association is organising a competition from 13 to 21 December 2016. There are several Go Sport vouchers to win with a value of 50 € each. Try your luck! To participate, you just have to be a member of the Staff Association and take the online quiz: https://ap-vote.web.cern.ch/content/jeu-concours-de-noel. The winners will be drawn among the correct answers.

  5. Competition

    CERN Multimedia

    Staff Association

    2016-01-01

      The Staff Association is organising a competition from April 11 to 20. There are several Go Sport gift vouchers with a value of 50 € each to win. Try your luck! To participate, you just have to be a member of the Staff Association and take the online quiz: https://ap-vote.web.cern.ch/content/jeu-concours. The winners will be drawn among the correct answers.

  6. Changes in energy price and the international competitiveness of Japanese industries. Energy kakaku no hendo to wagakuni sangyo no kokusai kyosoryoku

    Energy Technology Data Exchange (ETDEWEB)

    Kuroda, M.; Shimpo, K.; Kawai, H. (Keio Univ., Tokyo, (Japan))

    1990-03-05

    This report studies changes in international competitiveness of individual industry in Japan and the U.S. between 1960 and 1985 by using time series data in Japan and the U.S. on the basis of the measurement of productivity in both countries and the measuring rule for the absolute comparison of their level. The conclusion is summarized as follows: 1. Technological advance rate in both countries dropped rapidly after the oil crisis, but showed an average tendency to recover in 1980s; that is, it does not necessarily indicate a time series tendency to decline. 2. A technological gap between Japan and the U.S. expanded in 1970s, reached the peak in 1980, and reduced again during 1980s, however, dispersion among industries has tended to expand. 3. The future trend of a technological gap between Japan and the U.S. shows bipolarity. In Japan, technologies with big trade scale in the field of chemicals, electric machines, and precision machines attain superiority. 4. The price competitiveness reflects a gap of technological efficiency and factor prices respectively. Nevertheless, there are some Japanese industries having an advantage over the U.S. since they offset a gap of factor prices against a technological gap. 9 figs., 4 tabs.

  7. 寡头垄断下中国电信行业价格竞争分析%Analysis of price competition of China Telecom Industry under oligopoly

    Institute of Scientific and Technical Information of China (English)

    鲁璐

    2013-01-01

    Since the nineteen ninties, the telecom industry in China after a series of efforts to reform, has formed the oligopoly market structure. In this paper, grasp of China's telecom industry market structure, its own characteristics, in recent years, the industry based on the price competition phenomenon, the analysis of causes and adverse effects of vicious price competition produces, explored out of low-level price war, to seek higher profits of the industry, better service to consumers.%  自20世纪90年代以来,我国电信行业经过了一系列大力度体制改革,目前已形成了寡头垄断的市场结构。本文把握了我国电信行业市场结构、自身特点,基于近年来该行业价格竞争现象,分析了恶性价格竞争产生的原因及不利影响,探究了跳出低层次价格战,谋求更高行业利润,更好的服务消费者的出路。

  8. Generic Scrip Share and the Price of Brand-Name Drugs: The Role of the Consumer

    OpenAIRE

    John A Rizzo; Richard Zeckhauser

    2005-01-01

    Generic drug utilization has risen dramatically, from 19% of scrips in 1984 to 47% in 2001, thus bringing significant direct dollar savings. Generic drug use may also yield indirect savings if it lowers the average price of those brand-name drugs that are still purchased. Prior work indicates - and we confirm - that generic competition does not induce brand-name producers to lower prices. However, consumer choices between generic and brand-name drugs could affect the average price of those br...

  9. Comparison and Choice between Low Price and Channel Cooperation of Large Retailers%大型零售商低价与渠道合作策略对比及选择分析

    Institute of Scientific and Technical Information of China (English)

    牛志勇; 黄沛; 高维和

    2011-01-01

    大型零售商的策略行为成为领导零售市场发展的重要因素,沃尔玛、Home Depot等为了获取竞争优势采取不同的策略,如低价竞争或者是与供应商开展渠道合作.利用博弈分析,建立Stackelberg博弈模型和Nash讨价还价谈判模型,研究包含供应商、大型零售商和小型零售商的市场中大型零售商的策略选择对比以及相关因素.研究结果表明,与低价策略相比,大型零售商选择渠道合作策略时供应商定价降低,市场产品价格较低,同时市场需求增加,但小型零售商的情况变坏;当大型零售商和供应商具有等同的谈判势力,产品的替代性较低时大型零售商应该选择渠道合作策略,替代性较高时大型零售商会偏向于低价策略,替代性居中时大型零售商的相对成本优势对策略产生影响;当大型零售商具有谈判优势时,渠道合作将会是优化策略.%The strategies of large retailers are important factors that can lead markets. These large retailers, such as Wal-Mart or Home Depot, choose different strategies from low price strategy to the cooperation with suppliers in order to get competition advantage. The research focuses on the comparison and choice of competitive strategies, which are low price and channel cooperation, of large retailer in the market including a supplier, large retailer and a small retailer, using the method of game theory by Stackelberg Model and Nash bargaining method. The results show that, when the large retailer chooses cooperation strategy comparing with low price strategy, the supplier makes a low wholesale price and the market price also low, the quantity are high, but the small retailer becomes bad. The supplier and large retailer have equal bargaining power, the large retailer will choose the channel cooperation with the low product substitutability, and choose the low price with the high product substitutability, but the relative cost efficiency can be an

  10. Pricing of General Insurance and the Impact of Asymmetric Information

    DEFF Research Database (Denmark)

    Englund, Martin

    To set the insurance premium correctly is of outmost importance on a competitive insurance market. Hence the overall objective of this thesis is to improve the pricing, first by using individual claims information, and second by using information about the individuals choice of coverage. Regarding...

  11. Strategic Transfer Pricing

    OpenAIRE

    Michael Alles; Srikant Datar

    1998-01-01

    Most research into cost systems has focused on their motivational implications. This paper takes a different approach, by developing a model where two oligopolistic firms strategically select their cost-based transfer prices. Duopoly models frequently assume that firms game on their choice of prices. Product prices, however, are ultimately based on the firms' transfer prices that communicate manufacturing costs to marketing departments. It is for this reason that transfer prices will have a s...

  12. 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.

  13. Porter's Five Competitive Forces Framework and Other Factors That Influence the Choice of Response Strategies Adopted by Public Universities in Kenya

    Science.gov (United States)

    Mathooko, Francis M.; Ogutu, Martin

    2015-01-01

    Purpose: The purpose of this paper is to establish the extent to which Porter's five competitive forces (PFCF) framework, among other factors drive the choice of response strategies adopted by public universities in Kenya. Design/Methodology/Approach: The study design was descriptive and utilized a cross-sectional survey of all the public…

  14. Porter's Five Competitive Forces Framework and Other Factors That Influence the Choice of Response Strategies Adopted by Public Universities in Kenya

    Science.gov (United States)

    Mathooko, Francis M.; Ogutu, Martin

    2015-01-01

    Purpose: The purpose of this paper is to establish the extent to which Porter's five competitive forces (PFCF) framework, among other factors drive the choice of response strategies adopted by public universities in Kenya. Design/Methodology/Approach: The study design was descriptive and utilized a cross-sectional survey of all the public…

  15. Transfer pricing strategy for multi-divisional firm under Cournot-Bertrand mixed competition%基于Cournot-Bertrand混合竞争的企业集团转移定价决策

    Institute of Scientific and Technical Information of China (English)

    万寿义; 王静

    2015-01-01

    研究多部门企业集团在最终产品市场面临Cournot-Bertrand混合竞争时的转移定价决策问题。由动态博弈的逆向归纳求解方法可知,均衡转移定价策略将随着最终产品之间的关系而有所差异。当竞争对手仅生产最终产品时,最优转移价格高于边际成本,且采用价格-产量竞争优于产量-价格竞争;当竞争对手为垂直一体化企业时,采用产量-价格竞争的最优转移价格高于边际成本,采用价格-产量竞争则低于边际成本,而且采用产量-价格竞争优于价格-产量竞争。%The multi-divisional firm’s transfer pricing policy under Cournot-Bertrand mixed competition in final goods market is analyzed. By using the backward induction in a dynamic game, the equilibrium transfer pricing strategies can change with the differentiation of the final goods. If the competitor produces only the final output, the optimal internal transfer price is higher than the marginal cost and optimal strategy is price-output competition. If the rival firm is vertically integrated, the optimal transfer price is higher(lower) than the marginal cost under output-price(price-output) competition. Moreover, output-price competition is superior to the price-output strategy for the multi-divisional firm.

  16. 'Be Nice Unless it Pays to Fight' : A New Theory of Price Determination with Implications for Competition Policy

    NARCIS (Netherlands)

    Boone, J.

    2002-01-01

    This paper introduces a simple extensive form pricing game.The Bertrand outcome is a Nash equilibrium outcome in this game, but it is not necessarily subgame perfect.The subgame perfect equilibrium outcome features the following comparative static properties.The more similar firms are, the higher th

  17. 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...

  18. 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...

  19. Does Low Price Competition of Non-Local Audit Exist?%异地审计是否存在低价竞争?

    Institute of Scientific and Technical Information of China (English)

    石恒贵; 周琼芳

    2015-01-01

    使用2004—2014年的715家非金融上市公司组成的平衡面板数据,从静态和动态角度,对异地审计与低价竞争进行检验。结果发现:异地客户率为31.7%,大约13.6%的公司审计收费存在低价竞争行为,且异地审计与低价竞争显著正相关。建议:一是对异地客户所在地注协而言,需要注意低价竞争的情况,特别是在签订审计合约时,应向客户所在地的注协备案合约内容,并由当地注协在网上公开其审计报告,以供使用人查询,必要时可约谈相关事务所。二是对会计师事务所而言,进行异地审计时,遵守客户所在地的审计服务定价标准,不得低价竞争,履行相关的审计合约和审计报告备案制度,执行内部过程质量标准,确保高质量的审计服务。%This paper used 715 non-financial companies listed in 2004—2014 from the perspective of studying of the non-local audit and low price competition statically and dynamically.The results show that the non-local audit customers is 31.7%,and about 13.6% of the company which its audit fees exist low competitive behavior,and there is a significant positive correlation between non-local audit and low price competition.The proposals are:1)For the AICPA to remote customers,AICPA needs to pay attention to the low-cost competition in off-site audit and should record contract content in the AICPA of remote customers when sign audit contracts,and the local AICPA should disclose its audit report in the network for the using human inquiry by the others,and if it is necessary it can turn a-round to the related firms.2)To accounting firms,when they are having auditing in different regions, they should follow the location service pricing standards of audit client and may not have lower-price competition,and they should perform relevant audit contracts and the audit report filing system and should implement the internal process of quality

  20. Study on the Competition Decision Making Model about Pricing and Delivery Time between Retailers with Risk Aversion%风险规避的零售商定价与交货期竞争决策模型

    Institute of Scientific and Technical Information of China (English)

    叶飞; 李彦平; 李怡娜

    2012-01-01

    "Price/delivery" competition decision-making issue under the demand price and time-sensitive between two risk aversion retailers is studied in this paper. First,"price/delivery" competition decision-making behavior is studied under Bertrand Game model. Then, "price/ delivery" competition decision-making behavior is studied under Stackelberg Game model. Finally,through numerical analysis we get the following conclusions: excessive risk aversion will put retailers at a competitive disadvantage (the prices are higher under Stackelberg duopoly Game than Bertrand duopoly Game.%研究了需求具有价格和时间均敏感条件下两个具有风险规避特性的零售商间价格与交货期竞争决策问题.首先,分析了Bertrand博弈模式下两个风险规避零售商间的价格与交货期决策行为;其次,分析了Stackelberg博弈模式下两个风险规避零售商间的价格与交货期决策行为;最后,通过数值分析发现零售商过度风险规避会导致在竞争中处于劣势,并发现在Stackelberg双寡头博弈下的价格高于Bertrand双寡头博弈下.

  1. Prices and Price Setting

    NARCIS (Netherlands)

    R.P. Faber (Riemer)

    2010-01-01

    textabstractThis thesis studies price data and tries to unravel the underlying economic processes of why firms have chosen these prices. It focuses on three aspects of price setting. First, it studies whether the existence of a suggested price has a coordinating effect on the prices of firms. Second

  2. A Comparative Analysis of Sole Source versus Competitive Prices in the Acquisition of Weapon System Replenishment Spare Parts.

    Science.gov (United States)

    1982-09-01

    research study 5 . . . . . 34 Summary7 .. .. .. .. .. .. .. ... 35 3. RESEARCH METHOLOGY ............ 37 Introduction .................... . 37 Data...role of competition after initial introduction ............. . 98 Concluding Observations ... .......... ... 99 APPENDIXES A. LIST OF SAMPLE DATA...units produced doubles, production costs per unit decrease by some constant percentage E20:64]." Learning curve theory is based on the observation that

  3. Response competition and response inhibition during different choice-discrimination tasks: evidence from ERP measured inside MRI scanner.

    Science.gov (United States)

    Gonzalez-Rosa, Javier J; Inuggi, Alberto; Blasi, Valeria; Cursi, Marco; Annovazzi, Pietro; Comi, Giancarlo; Falini, Andrea; Leocani, Letizia

    2013-07-01

    We investigated the neural correlates underlying response inhibition and conflict detection processes using ERPs and source localization analyses simultaneously acquired during fMRI scanning. ERPs were elicited by a simple reaction time task (SRT), a Go/NoGo task, and a Stroop-like task (CST). The cognitive conflict was thus manipulated in order to probe the degree to which information processing is shared across cognitive systems. We proposed to dissociate inhibition and interference conflict effects on brain activity by using identical Stroop-like congruent/incongruent stimuli in all three task contexts and while varying the response required. NoGo-incongruent trials showed a larger N2 and enhanced activations of rostral anterior cingulate cortex (ACC) and pre-supplementary motor area, whereas Go-congruent trials showed a larger P3 and increased parietal activations. Congruent and incongruent conditions of the CST task also elicited similar N2, P3 and late negativity (LN) ERPs, though CST-incongruent trials revealed a larger LN and enhanced prefrontal and ACC activations. Considering the stimulus probability and experimental manipulation of our study, current findings suggest that NoGo N2 and frontal NoGo P3 appear to be more associated to response inhibition rather than a specific conflict monitoring, whereas occipito-parietal P3 of Go and CST conditions may be more linked to a planned response competition between the prepared and required response. LN, however, appears to be related to higher level conflict monitoring associated with response choice-discrimination but not when the presence of cognitive conflict is associated with response inhibition.

  4. Generic Advertising, Brand Advertising and Price Competition: An Analysis of Free-Riding Effects and Coordination Mechanisms

    OpenAIRE

    Paolo Roma; Giovanni Perrone

    2010-01-01

    The main purpose of generic advertising is to enlarge the total market demand rather than capturing further slices from competitors. Several studies point out emergence of free-riding behavior under independent contribution and suggest use of coordination mechanism. However, existing literature does not shed light on the conditions under which generic advertising can be detrimental (beneficial) to stronger firms weakening (strengthening) their competitive advantage. Also, under a setting incl...

  5. Industrial Pricing: Theory and Managerial Practice

    OpenAIRE

    Peter M. Noble; Gruca, Thomas S.

    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...

  6. The competitive landscape of air transport in Europe

    NARCIS (Netherlands)

    Lieshout, R.; Malighetti, P.; Redondi, R.; Burghouwt, G.

    2016-01-01

    Competition between airlines and airports increased significantly since the deregulation of the intra-European air transport market in 1997. The passenger has a wider choice in terms of routings and departure airports than twenty-five years ago and pays a lower price. In this paper we investigate in

  7. Using decoy effects to influence an online brand choice: the role of price-quality trade-offs.

    Science.gov (United States)

    Hsu, Huei-Chen; Liu, Wen-Liang

    2011-04-01

    This research aims to investigate decoy effects on online brand choices. To assess the influence of decoys, we test decoy effects on three constructs-product involvement, judgment conditions, and decoy conditions-within an online experiment. A survey of 635 Internet users and a 2 × 2 × 3 ANOVA between-subjects experimental design is used to guide the research design and the systematic analysis procedure. A major finding of this study is that a standard decoy seems to have a significant effect on an advertised (target) brand for high-involvement products; from the survey, it is also apparent that competitors can also use inferior decoys to increase brand preference for low-involvement products.

  8. An Introduction to Retail Electricity Choice in the United States

    Energy Technology Data Exchange (ETDEWEB)

    Zhou, Shengru [National Renewable Energy Laboratory (NREL), Golden, CO (United States)

    2017-10-04

    Retail electricity choice in the United States allows end-use customers (including industrial, commercial, and residential customers) to buy electricity from competitive retail suppliers. This brochure offers an overview of retail electricity choice in the United States, and its impact on prices and renewable energy procurement. It concludes with three lessons learned from the U.S. retail market experience that may serve as a reference for other countries and regions taking steps towards retail electricity market liberalization.

  9. The Comparative Study of Different Price Strategies of Commercial Banks under Differentiation Competition%差异化竞争下商业银行不同价格策略的比较研究

    Institute of Scientific and Technical Information of China (English)

    欧朝敏; 谭思昱

    2011-01-01

    Based on spatial competition model, through graph and quantity approaches, this paper analyzes commercial banks when adopting different price strategies under differentiation competition. The result shows that the properties of product prices. profits、 output and social welfare of commercial banks vary with different price strategies. Under the same differentiation level, the profits and prices of commercial banks when adopting robust price strategy are higher than them when adopting positive price strategy. However the output and social welfare per distance per consumer of commercial banks are lower.%基于空间竞争模型,通过图表和数量两种途径,比较了差异化竞争下商业银行采取不同价格策略时的相关情况.结果表明:采取不同的价格策略,商业银行的产品价格、利润、产量和社会福利呈现出不同的特征.在相同的差异化程度下,较之采取稳健型的价格策略,商业银行采取积极型价格策略时的利润和价格要高,但产量和单位距离单位消费者的社会福利额则要低.

  10. High Drug Prices Hurt Everyone

    OpenAIRE

    Halpenny, Genevieve M.

    2016-01-01

    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 br...

  11. 会计稳健性、产品市场竞争与股价崩盘风险%Accounting Conservatism, Product Market Competition and Stock Price Crash Risk

    Institute of Scientific and Technical Information of China (English)

    王雷

    2015-01-01

    采用我国上市公司2007—2012年数据,考察会计稳健性、产品市场竞争与股价崩盘风险之间的关系,实证结果显示:会计政策越稳健,企业未来的股价崩盘风险越低;产品市场竞争程度越高,企业未来的股价崩盘风险越低;产品市场竞争加强了会计稳健性和股价崩盘风险的关系。这说明会计稳健性和产品市场竞争均发挥了一定的治理作用,而且就降低股价崩盘风险而言,产品市场竞争与会计稳健性之间存在互补关系。%With the data of China’s listed companies during the period of 2007-2012 as a sample, this paper makes an analy-sis on the relationship between accounting conservatism, product market competition and firm’s future stock price crash risk. The results indicate that the accounting conservatism is significantly positive correlation with stock price crash risks, more competition in product market is associated with less stock price crash risks in the future. We also confirm that product market competition reinforces the relationship between accounting conservatism and stock price crash risk. It suggests that both ac-counting conservatism and product market competition play a significant role in corporate governance, and there exists a com-plementary relationship between product market competition and accounting conservatism in terms of reducing crash risk.

  12. Marketing CE approved off-the-shelf FC-operated power backup units for the telecom industry at competitive prices : a continuing success story

    Energy Technology Data Exchange (ETDEWEB)

    Mortensen, P. [Dantherm Power, Skive (Denmark)

    2009-07-01

    Dantherm Power receives a steady supply of fuel cell stacks packed on pallets at its factory in Denmark. Once unpacked, they go to an assembly line to be integrated into power modules designed for telecom- and IT network-base-stations around the world. The CE approved units are designed and tested to meet current telecom standards. Customers can purchase the off-the-shelf units at competitive prices. Dantherm Power has brought fuel-cell technology beyond the research and development stage. Since 2005, the company has sold backup units providing uninterruptible power supply (UPS) to the telecom industry on standard commercial terms. Their fuel cell-based-solutions have proven to be successful. The company began in 2003 as a research and development project within Dantherm Air Handling A/S. Development was driven by the idea that a UPS-system based on hydrogen and fuel-cell-technology may be better solution than traditional battery and diesel driven backup for many of the company's existing clients.

  13. Manufacturer's Suggested Retail Prices

    NARCIS (Netherlands)

    Rosenkranz, S.

    2003-01-01

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

  14. 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

  15. University Rankings in Action? The Importance of Rankings and an Excellence Competition for University Choice of High-Ability Students

    Science.gov (United States)

    Horstschraer, Julia

    2012-01-01

    This paper analyzes how high-ability students respond to different indicators of university quality when applying for a university. Are prospective students influenced by quality indicators of a university ranking or by an excellence status awarded within a nationwide competition? And if so, are some quality dimensions, e.g. research reputation,…

  16. Políticas de fomento de la competencia en precios en el mercado de genéricos: lecciones de la experiencia europea Policies encouraging price competition in the generic drug market: Lessons from the European experience

    Directory of Open Access Journals (Sweden)

    Jaume Puig-Junoy

    2010-06-01

    Full Text Available Objetivos: Describir políticas alternativas para el fomento de la competencia en precios en el mercado de medicamentos genéricos de países altamente regulados, y presentar algunos casos de estudio de la experiencia europea. Métodos: Revisión sistemática de artículos e informes técnicos posteriores a 1999. Resultados: Las limitaciones a la competencia de precios de venta al público de los genéricos observadas en varios países europeos, entre los que se incluye España, se pueden mitigar mediante reformas de las políticas de reembolso o financiación pública que se pueden clasificar en tres grandes grupos: medidas de mejora y profundización del diseño de los sistemas vigentes de fijación del reembolso máximo; medidas de seguimiento de los precios competitivos con la finalidad de reembolsar a las oficinas de farmacia sólo los costes reales de adquisición; y medidas de fomento de la competencia de precios en las adquisiciones públicas basadas en instrumentos de mercado como las subastas competitivas. La experiencia de las medidas adoptadas en los últimos años en Alemania, Bélgica, Holanda, Noruega y Suecia resulta una referencia útil para los países altamente regulados, como España, caracterizados por una limitada competencia de precios de venta al público y elevados descuentos a las oficinas de farmacia. Conclusiones: Resulta posible adoptar medidas efectivas de fomento de la competencia de precios de venta al público en los mercados de medicamentos genéricos en los países con una regulación directa de los precios o sistemas de precios de referencia como instrumento privilegiado para reducir el precio de los genéricos.Objectives: To describe alternative policies aimed at encouraging price competition in generic drug markets in countries with strict price regulation, and to present some case studies drawn from the European experience. Methods: Systematic literature review of articles and technical reports published

  17. 高校设备采购实行网上竞价的驱动与优化%Motivation and optimization about university online price competition of equipment procurement

    Institute of Scientific and Technical Information of China (English)

    陈金友; 潘丽慧

    2011-01-01

    分析了高校政府采购的共性和需求特性,通过对高校设备采购的特征分析,阐述高校设备采购实行网上竞价的驱动力,提出了提高采购信息化管理、实现竞价与采购价格联动体系等优化网上竞价管理的举措.%The procurements of universities have their own characteristics which differ from the commonalities in government procurement. How to reinforce their material procurement work, especially equipment procurement, is a significant problem which always be concerned by society, colleges and universities. This article analyzes the characteristics of university equipment procurement, elaborates on the motivation about university equipment procurement through online price competition, and also puts forward the suggestions how to optimize online price competition management.

  18. Choice of health insurer and healthcare provider : An analysis of regulated competition in the Dutch healthcare system

    NARCIS (Netherlands)

    D.M.I.D. Duijmelinck (Daniëlle)

    2015-01-01

    markdownabstractConsumer choice of health insurer is an essential precondition for achieving efficiency and consumer responsiveness in healthcare. In healthcare, consumer preferences are highly heterogeneous. This implies that if groups of consumers with specific preferences feel not free to switch

  19. A METHODOLOGY FOR THE CHOICE OF THE BEST FITTING CONTINUOUS-TIME STOCHASTIC MODELS OF CRUDE OIL PRICE: THE CASE OF RUSSIA

    Directory of Open Access Journals (Sweden)

    Hamidreza Mostafaei

    2013-01-01

    Full Text Available In this study, it has been attempted to select the best continuous- time stochastic model, in order to describe and forecast the oil price of Russia, by information and statistics about oil price that has been available for oil price in the past. For this purpose, method of The Maximum Likelihood Estimation is implemented for estimation of the parameters of continuous-time stochastic processes. The result of unit root test with a structural break, reveals that time series of the crude oil price is a stationary series. The simulation of continuous-time stochastic processes and the mean square error between the simulated prices and the market ones shows that the Geometric Brownian Motion is the best model for the Russian crude oil price.

  20. The Policy of Choice: Expanding Student Options in Higher Education. The New Millennium Project on Higher Education Costs, Pricing, and Productivity.

    Science.gov (United States)

    Cunningham, Alisa Federico

    This report discusses what college choice means and how it works. Exploring in some detail the various definitions of choice, the report reveals what is known about the factors that influence students decisions, and the current status of choice. The analysis focuses on choice in relation to federal need-based financial aid policy. Higher education…

  1. 基于竞争的网络零售定价和退货策略研究%Optimal Product Pricing and Return Strategy in Competitive E-business Retail

    Institute of Scientific and Technical Information of China (English)

    任鸿美; 吴清烈

    2014-01-01

    将竞争因素引入到网络零售商面对的市场环境中,基于此建立了零售商的利润函数,并求得了最优产品定价和退货价格,分析了竞争因素对最优产品价格和退货价格的影响及最优产品价格和退货价格的制定策略。用实例验证了最优价格策略的合理性,为网络零售企业在定价决策时提供了理论依据。%The new trends of product pricing and return policy of reverse logistics are addressed in this pa-per.The profit model of retail under competition is built .Then, with the model, optimal product pricing and return policy are obtained .The influence of competition on the optimal pricing is also analyzed .The rationality and effectiveness of the model are verified by using an example .By the proposed model , it of-fers a theoretical basis for the pricing decision in e-business retail .

  2. Decision Analysis of Advertising and Price for Bilateral Competing Supply Chain

    Directory of Open Access Journals (Sweden)

    Cheng-Tang Zhang

    2013-01-01

    Full Text Available The outcome of centralized equilibrium, prisoner's dilemma equilibrium, and decentralized equilibrium under different decision models has been provided with regards to bilateral competing supply chain system, either side of which is composed of one manufacturer and one retailer. Theoretical analysis indicates a positive correlation between price and one's own advertising investment level and a negative correlation between price and the opponent's advertising investment level. Through analysis of numerical examples, the results reveal a first mover advantage that leads to prisoner's dilemma in the system as well as the impact that price and advertising competition intensity has on the supply chain's choice of decision model.

  3. Strategies in second pricing in oligopolistic competition with switching cost%带有转移成本寡头垄断的二次定价及仿真

    Institute of Scientific and Technical Information of China (English)

    叶阳; 周名阳; 万猛; 霍佳震

    2012-01-01

    Oligopolistic enterprises usually price their products for the second time, or use price discrimination, in order to earn more profit, especially for firms who enter the market later on. Most late comers' strategy is to occupy the market share first by pricing lower and then to earn more profit by raising the price. This paper is to 9tudy such competition between two oligopolistic enterprises in their second pricing. The study proves that the price and the gross profit are negatively related to the switching cost, and that die oligopoly who practices the lower price strategy at the first pricing stage would lose part of its market share at the second one. By comparing the switching cost, which is generated from the first pricing, with the cost on advertisement or promotion for the new products, the paper discusses the competition among neighboring products and points out that the profit of the oligopoly mainly comes from the switching cost.%寡头垄断企业往往通过二次定价或价格歧视来获取更多的利润,尤其是后入者经常采用先低价抢占市场,再高价获取利润的策略.研究了两个寡头垄断企业二次定价的竞争.证明了定价及总利润与转移成本负相关,第一阶段实行低价策略的寡头企业会在第二阶段定价中失去部分第一阶段获取的超额市场.将第一次定价产生的转移成本看作新产品投放市场广告或市场推广等成本效果,进一步讨论了产品在毗邻位置竞争的情况,指出寡头垄断的利润主要来自转移成本.

  4. 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

  5. Pricing for finished products of the enterprise: accounting and analytical aspect

    Directory of Open Access Journals (Sweden)

    N.L. Pravdyuk

    2017-03-01

    Full Text Available The pricing policy chosen by the enterprise in respect of goods and finished products of own production, has a decisive influence on the formation of financial results. In modern economic conditions we need to strengthen managerial decisions on the choice and carrying out price policy and a means of solving this problem is accounting. To determine the boundaries and competence of decision-making we analyzed the regulation of these terms and processes, as well as the dynamics of the stocks across sectors of the economy, the consumer price index, producer price index, the price index of realization of industrial products. Widely used data analytical reviews of the national Bank of Ukraine, enterprises' expectations regarding efficiency, the analysis of financial market indicators, etc. Established that the provision of information management pricing of goods shall conform to the requirements of the economy, by deepening complexity of accounting, to ensure the needs of consumers. According to the study substantiates the basics of accounting and analytical aspect of the pricing policy for finished products businesses. In the study of pricing policies in respect of goods in accounting and analytical aspect, we have established the following. The existing normative-legal acts and definitions of researchers on economic and accounting analysis of the concept give a sufficiently wide interpretation, which depends on the orientation and activity of the enterprise. Factors and points of influence on the efficiency of the pricing policy are: information support of process of pricing assessment of pricing factors, establish the objectives of price policy, assessment of customer demand, cost analysis, competition analysis, selecting a pricing method that measures the price adjustment, the evaluation price risk. The economic impact of the market environment is the most significant to the pricing policy of agricultural enterprises, which revealed the analysis

  6. 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 ...

  7. Incremental Cost Pricing Model of Distribution Network under Scale Competition Mechanism%标尺竞争机制下的配电网增量成本定价模型

    Institute of Scientific and Technical Information of China (English)

    刘兰菊

    2013-01-01

    Distribution service pricing is one of important issues in the process of transmission and distribution separation. Traditional power distribution regulation is change to the incentive regulation. Based on the analysis of the related issues of distribution service pricing under scale competition mechanism, an incremental cost pricing model is proposed. The incremental cost can be estimated from the distribution network expansion program. The formulation of the distribution service pricing can be derived from the share of each user to distribution network load. The result of case study shows that the pricing model is effective for promoting competition among distribution companies, encouraging the parties to improve efficiency and reduce costs.%配电服务定价是输配分开过程中的重要问题之一,鉴于传统的配电管制正在向激励性管制转变,分析了标尺竞争机制下配电服务定价的相关问题,提出了一种基于标尺竞争机制的配电网增量成本定价模型,该模型基于配电网扩容计划估算增量成本和边际成本,并从每个配网使用者对配网负荷的使用份额来分析推导出配电服务价格.算例分析结果表明,该定价模型能有效促进配电公司之间的竞争,从而激励配电企业采取措施提高效率、降低成本.

  8. Dynamic Pricing Strategy with Demand Learning Based on Competitive Markets%竞争环境下考虑需求学习的动态定价策略

    Institute of Scientific and Technical Information of China (English)

    李豪; 彭庆

    2015-01-01

    为了分析在顾客到达率不确定且面临市场竞争的情况下,零售商如何通过需求学习来动态地调整价格,以达到收益最大化的目的,运用博弈理论和动态规划方法建立了多周期随机动态定价优化模型,分析了需求学习下的价格竞争均衡。研究表明,在竞争和需求学习的市场环境下,零售商的价格博弈存在均衡,且多个均衡价格存在时,各零售商的收益与均衡价格成正比。应用算例分析了需求学习的效果,求出了需求学习下零售商竞争的价格均衡,并得出一些管理启示。%Analyzing why retailers have to adopt dynamic pricing through demand learning to maximize their revenue where there is demand uncertainty of the customer arrival rate and the competitive markets with multiple competing retailers , a dynamic pricing model by dynamic programming and game theory is presented .Based on competitive markets and demand learning background , the existence of Nash Equilib-rium is obvious .It is found that the profit of retailers is proportional to the equilibrium price where there are multiple equilibrium prices .Numerical experiments are conducted to analyze the effect of demand learning and calculate the price equilibrium .A managerial insight is derived from numerical experiments .

  9. Choice of the specialty of diagnostic radiology by results of the competitive examination to assign residency positions from 2006 to 2015.

    Science.gov (United States)

    Murias Quintana, E; Sánchez Lasheras, F; Fernández-Somoano, A; Romeo Ladrero, J M; Costilla García, S M; Cadenas Rodríguez, M; Baladrón Romero, J B

    To analyze the profile of residency candidates choosing the specialty of diagnostic radiology in function of variables related to the positions available in different years. We compiled the data published on the Spanish Ministry of Health's website during the acts celebrated to allow residency candidates to choose positions based on the results of the competitive examinations held from 2006 to 2015, comparing the specialty of diagnostic radiology with the other specialties available in terms of positions available, net questions, sex, nationality, and order of choice of the position. The specialty of diagnostic radiology occupied the 16(th) position in the ranking of specialties according to the median number of order in the choice for each of the positions offered in the years studied. The first diagnostic radiology residency position was usually assigned after 75 candidates had chosen other specialties, and the last position was usually assigned after 3700 to 4100 candidates had chosen their positions. During the period studied, of those who chose diagnostic radiology 58% were women and 76% were Spanish nationality. Candidates preferred hospitals in the Autonomous Community of Madrid, and the hospital chosen with the lowest median position (highest score on the competitive examination) was the Hospital Clínic de Barcelona. Diagnostic radiology is chosen by candidates with good positioning in the ranking according to official examination results, is less likely than other specialties to be chosen by women, and is chosen mostly by Spanish physicians. Candidates prefer large hospitals in provincial capitals. Copyright © 2017 SERAM. Publicado por Elsevier España, S.L.U. All rights reserved.

  10. Does the absence of competition in the market foster competition for the market ? A dynamic approach to aftermarkets

    OpenAIRE

    Laussel, Didier; Resende, Joana

    2008-01-01

    In this paper, we investigate dynamic price competition when firms strategically interact in two distinct but interrelated markets : a primary market and an aftermarket, where indirect network effects arise. We set up a differential game of two-dimensional price competition and we conclude that the absence of price competition in the aftermarket (competition in the market) fosters dynamic price competition in the primary market (competition for the market). We also investigate the impact of n...

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

    Science.gov (United States)

    Porn, L; Manning, M

    1988-01-01

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

  12. The impact of choice context on consumers' choice heuristics

    DEFF Research Database (Denmark)

    Mueller Loose, Simone; Scholderer, Joachim; Corsi, Armando M.

    2012-01-01

    how a change from a typical price order to a sensory order in wine menus affects consumer choice. We use pre-specified latent heuristic classes to analyse the existence of different choice processes, which begins to untangle the ‘black box’ of how consumers choose. Our findings indicate...... that in the absence of price order, consumers are less price-sensitive, pay more attention to visually salient cues, are less consistent in their choices and employ other simple choice heuristics more frequently than price. Implications for consumer research, marketing and consumer policy are discussed....

  13. Escolha, estratégia e competição por escolas públicas Choice, strategy and competition for public schools

    Directory of Open Access Journals (Sweden)

    Marcio da Costa

    2012-08-01

    Full Text Available Usualmente, políticas que buscam estimular a liberdade de escolha de escolas por parte dos pais visam declaradamente promover melhoria educacional por meio de mecanismos competitivos e/ou de accountability. Há discussão acumulada na sociologia sobre os quase-mercados formados em políticas de escolha escolar. O artigo investiga os processos de escolha e de acesso escolar em um contexto que denominamos "quase-mercado oculto". No caso brasileiro, a ausência de regulação permite que severos mecanismos de segmentação se manifestem em meio à complexa hierarquia escolar existente nas redes compostas por escolas públicas "comuns". O artigo apresenta a elaboração conceitual presente na literatura internacional e nossas reflexões para o caso brasileiro, além de resultados de uma pesquisa, especialmente de sua fase qualitativa, referente às entrevistas realizadas com professores(as, diretores(as e com pais de alunos do Ensino Fundamental da rede municipal na cidade do Rio de Janeiro.Frequently, policies that seek to encourage parents´ school choice aim to promote educational improvement by means of competitive and/or accountability mechanisms. There is a growing discussion within sociology around the quasi-markets formed with school choice policies. The paper investigates the processes of school choice and access in a context called "hidden quasi-market". In the Brazilian context, the absence of regulation allows the emergence of severe mechanisms of segmentation that take place within a complex school hierarchy existing among "ordinary" school systems. The article presents a conceptual elaboration present in the international literature and our considerations regarding the Brazilian context. It also brings some results, especially those concerning the qualitative phase of the research, including interviews with teachers, principals and students’ parents from municipal elementary schools in the city of Rio de Janeiro.

  14. Changes in Pricing, Distribution and Path Choice of the Fixed Price of Commercial Banking Services%商业银行服务定价权的变迁、分配及路径选择

    Institute of Scientific and Technical Information of China (English)

    马运全

    2012-01-01

    随着金融业的蓬勃发展,商业银行在给金融消费者带来多样化金融产品和服务的同时,服务定价问题引起了社会的广泛关注。考察历史可以看出,我国商业银行服务定价权经历了由政府主导定价到市场定价为主的转变。理论上来说,商业银行提供金融服务收取相应费用符合市场经济规律,但现实中仍然存在定价程序不规范、标准不科学等亟待改进的问题。通过对不同主体定价效率的分析来看,以市场定价为主是未来金融服务发展的趋势。银行服务收费定价的规范必须通过利率市场化改革等途径来实现。%With the booming financial sector, commercial banks bring diversified financial products and services for consumers, but the service pricing has aroused extensive attention. It can be seen by studying history, China's commercial banking services pricing power experienced a change from government -led pricing to market pricing based. In theory, it is in line with the market economy that commercial banks provide financial services and charge, but in reality there are still problems such as, non - standard pricing procedures, no scientific standards. All these need to be improved. From the analysis of the pricing efficiency of different subjects, market - based pricing is the future trend of development of financial services. The standardization of bank service charges pricing must be a- chieved by market -oriented interest rate reform and other ways.

  15. Pricing and Quality Controlling for the Expert Service Work in Competitive Environment%竞争环境下专家服务型工作的定价和质量控制

    Institute of Scientific and Technical Information of China (English)

    周华; 周水银

    2011-01-01

    We focus on pricing and quality controlling for the expert service work in competitive environment, facing all kinds of strategy customers with different sensitive aspects. In order to maximize the expected revenue,the company tries to determine the best combinations of price and quality. Numeral examples show the company would provide lower price for higher price sensitive customers, and higher quality product for higher quality sensitive customers. At the same time, why the company should try to service "high level" customers are explained.%以专家服务型工作为主要研究对象,考虑在市场竞争的环境下,企业面对针对价格和质量水平具有不同敏感程度的策略顾客,以及相应的反应函数,为了使企业期望利润最大化提出不同的最优定价和质量控制策略.结合数据演示我们看到公司会对价格敏感的顾客采用低价策略,而对质量要求高的顾客提高质量水平;同时解释了为何公司应该尽量发展优质的客户群,以便提高公司的利润水平和竞争力.

  16. Competition compliant wholesale electricity prices. An examination of the regulation on the integrity and transparency of wholesale energy market; Wettbewerbskonforme Stromgrosshandelspreise. Eine Untersuchung der Verordnung ueber die Integritaet und Transparenz des Energiegrosshandelsmarkts

    Energy Technology Data Exchange (ETDEWEB)

    Konar, Selma

    2015-07-01

    The development of wholesale electricity prices showed in recent years a very fluctuating course. The starting point for ensuring competitive compliant electricity prices have uniform rules that establish effective competition in the overall wholesale electricity, ensure greater transparency in the market and prohibit market abuse influence exercised on the wholesale price. The REMIT regulation creates a first union-law rules to this standardized specifications. The volume first examines the transparency, competitiveness, and supervisory structures in the wholesale electricity before legislating a regulation. It is clear, as the transparency and supervisory structures should be designed from the wholesale electricity ideally. On this basis, the work is dealing with the REMIT regulation. The author works out to market participants relevant notification and publication requirements, the follow-up demands on the company as well as the now existing prohibitions on market abuse and the related penalty catalog and analyze the supervisory structures newly created in the wholesale electricity. Here, the work also identified the weaknesses of the regulation and shows suitable solution approaches. [German] Die Entwicklung der Stromgrosshandelspreise zeigte in den letzten Jahren einen sehr schwankenden Verlauf. Ausgangspunkt fuer die Gewaehrleistung wettbewerbskonformer Strompreise sind einheitliche Bestimmungen, die im gesamten Stromgrosshandel einen funktionierenden Wettbewerb etablieren, fuer mehr Transparenz am Markt sorgen und marktmissbraeuchliche Einflussnahmen auf den Grosshandelspreis verbieten. Die REMIT-Verordnung schafft als erstes unionsrechtliches Regelwerk hierzu einheitliche Vorgaben. Der Band untersucht zunaechst die Transparenz-, Wettbewerbs-, und Aufsichtsstrukturen im Stromgrosshandel vor Erlass der Verordnung. Dabei wird deutlich, wie die Transparenz- und Aufsichtsstrukturen im Stromgrosshandel idealerweise ausgestaltet sein sollten. Auf dieser Grundlage

  17. Competitive Analysis of Price Discrimination between Network and Traditional Channel%网络渠道与传统渠道价格差异的竞争分析

    Institute of Scientific and Technical Information of China (English)

    盛天翔; 刘春林

    2011-01-01

    随着中国电子商务市场的迅速发展,传统渠道与网络渠道之间的竞争日趋激烈,国内外学者对两种渠道之间的价格竞争进行了广泛研究.构建包含一个传统企业和一个网络企业的双寡头城市线性Hotelling模型,定量分析各个影响因素对两渠道价格竞争的影响,通过多元线性回归模型进行计量检验.研究结果表明,电子商务成熟度越高,网络渠道和传统渠道的销售价格都会降低,但是传统渠道的价格降低速度要大于网络渠道;网上购物成本越高,网络渠道的价格越倾向于低于传统渠道.最后通过实际数据检验证实了这一结论,该结论对分析中国两种渠道的价格竞争情况具有指导作用.%The competition between traditional channel and network channel is becoming more and more severe with the rapid development of electronic business market in China.Scholars all over the world do a great deal of research on the price competition between these two channels.In this paper, we set up a city linear hotelling model.The study analyzed all factors which influence prices for both traditional and network channels by using quantitative method.In addition, we carried out some statistical test by using a multiple linear regression model.The results show that as electronic business gets more mature, prices in both network channel and traditional channel will get lower, but prices decrease in traditional channel will be bigger than that in network channel.Moreover, as cost for purchasing via network channels increases, price in network channel tends to be lower than that in traditional channel.Finally, we confirm this conclusion by carrying out some statistical test.This conclusion can as well be used to analyze the competition between traditional channels and network channels in China.

  18. The Joint Effect of Competition and Complexity on Customer Accounting System Design

    DEFF Research Database (Denmark)

    Holm, Morten; Ax, Christian

    The importance of measuring customer profitability has recently been reiterated by the management accounting community. However, the stream of research on the factors influencing customer accounting (CA) design choices is still scarce and inconclusive. This paper addresses how the level...... service complexity; (ii) There is a direct positive relationship between customer service complexity and CPA model sophistication; (iii) This positive association is stronger when competition is non-price based than when competition is price based. The study hereby contributes to research on CA design...... in particular as well as the general research stream on environmental factors’ influence on the sophistication and use of management accounting systems across firms....

  19. The Role of Demand Response in Default Service Pricing

    Energy Technology Data Exchange (ETDEWEB)

    Barbose, Galen; Goldman, Charles; Neenan, Bernie

    2005-11-09

    Dynamic retail pricing, especially real-time pricing (RTP), has been widely heralded as a panacea for providing much-needed demand response in electricity markets. However, in designing default service for competitive retail markets, demand response has been an afterthought, and in some cases not given any weight at all. But that may be changing, as states that initiated customer choice in the past 5-7 years reach an important juncture in retail market design. Most states with retail choice established an initial transitional period during which utilities were required to offer a default or standard offer generation service, often at a capped or otherwise administratively-determined rate. Many retail choice states have reached the end of their transitional period, and several have adopted or are actively considering an RTP-type default service for large commercial and industrial (C&I) customers. In most cases, the primary reason for adopting RTP as the default service has been to advance policy objectives related to the development of competitive retail markets. However, if attention is paid in its design and implementation, default RTP service can also provide a solid foundation for developing price responsive demand, creating an important link between wholesale and retail market transactions. This article, which draws from a lengthier report, describes experience to date with RTP as a default service, focusing on its role as an instrument for cultivating price responsive demand.1 As of summer 2005, default service RTP was in place or approved for future implementation in five U.S. states: New Jersey, Maryland, Pennsylvania, New York, and Illinois. For each of these states, we conducted a detailed review of the regulatory proceedings leading to adoption of default RTP and interviewed regulatory staff and utilities in these states, as well as eight competitive retail suppliers active in these markets.

  20. Logo competition

    CERN Multimedia

    Staff Association

    2013-01-01

    Award of the prizes The price ceremony for the Staff Association’s new logo competition which took place on Friday 1st March at 5 p.m. was a big success. The first prize, an Ezee Suisse electric bike, was won by Paulo Rios, from Portugal. In his absence, the bike was handed to his brother Vitor. The other five winners of the competition also received their prize: Go Sport vouchers. A peize draw was then organized to award 22 other participants with prizes offered by our commercial partners (Aquaparc, BCGE, L’Occitane, Passeport Gourmand, Sephora, Theater La Comédie de Genève), whom we would like to warmly thank. After all prices were distributed the evening continued with discussions around a friendly drink.

  1. Price Competition or Quality Competition---An Empirical Study on the Competitiveness of China's Export Products%价格竞争还是质量竞争--中国出口产品竞争力的实证研究

    Institute of Scientific and Technical Information of China (English)

    韩会朝; 于翠萍

    2014-01-01

    中国出口产品普遍被认为“价廉质次”,然而这并不能充分解释中国出口贸易长期增长的实质。对中国2001年加入WTO以来出口产品竞争力的实证研究表明:一方面,中国出口产品的相对单位价格呈现持续下降的趋势,这说明低价竞争是中国出口产品的一个主要特征;另一方面,中国出口产品质量在逐年上升,其中高技术出口产品的质量竞争力较为明显,这说明中国出口产品并未陷入低质量产品的陷阱。在新时期进一步深化对外贸易转型中,把握中国出口产品竞争力特征对我国对外贸易政策制定有重要意义。%China's export products are usually thought to be cheap and of low -quality,however this does not explain thoroughly the rapid development of China's export trade in so long a period. This paper ex-plores China's export products' competitiveness from 2001 when China joined WTO. The empirical results indi-cate that on one hand,China's export products' overall relative unit price has been declining continuously, which shows that the low-price competition is a typical characteristic of China's export products. On the other hand ,the overall quality of China's export products has been rising yearly,especially for the high-tech export products,which demonstrates China's export products have not fallen into the low-quality trap. In the new era of further deepening China's foreign trade transformation,understanding the competitiveness characteristics of China's export products has implication for the foreign trade policy.

  2. A Study on Price Discrimination in Intermediate Goods Market from the Perspective of Antimonopoly-Based on Monopolistic Competition Structure and Nonlinear Pricing in Downstream Market%反垄断视角下中间品市场价格歧视研究--基于下游垄断竞争市场结构和非线性定价

    Institute of Scientific and Technical Information of China (English)

    喻言

    2015-01-01

    在反垄断视角下研究中间品市场价格歧视行为是对价格歧视理论的进一步拓展。文章从经济学的角度出发,基于下游垄断竞争市场和非线性定价方式对纵向产业链中中间品不同定价方式的均衡进行了分析,目的是为规制机构合理规制相关产业提供理论依据,同时对《反垄断法》中相应的法律条款加以补充和细化。%From the perspective of antimonopoly, the study on price discrimination in intermediate goods market is to further develop price discrimination theory. The paper,in terms of economics,analyzes the equilibrium of differ⁃ent pricing modes of intermediate goods on the vertical industry chain based on monopolistic competition and nonlin⁃ear pricing in downstream market,aiming to provide a theoretical basis for regulatory institutions to rationally regu⁃late related industries. Meanwhile, this paper also makes supplement and refinement on the corresponding provi⁃sions of Chinese Antimonopoly Law.

  3. Energy suppliers as service providers - from scapegoat to problem solver. Electricity procurement at competitive prices; Der Energieversorger als Dienstleister: vom Suendenbock zum Problemloeser. Strombeschaffung zu wettbewerbsfaehigen Konditionen

    Energy Technology Data Exchange (ETDEWEB)

    Ruppel, H. [Ovag Energie AG, Friedberg (Germany); Lerch, F. [Carl Kliem Energy GmbH, Kelkheim (Germany)

    2008-10-06

    It is important to master the current challenges in energy and cost management together with the customer. Prices have increased, as has volatility. Not even small enterprises can escape the necessity of thinking about suitable strategies. In this situation modern energy suppliers with their portfolio of services can present themselves as a partner and lay the foundation for a long-term cooperation. This will go far beyond merely debating about prices. Thus energy suppliers can rid themselves of their scapegoat image and present themselves as what they are: problem solvers.

  4. Has the export pricing behaviour of German enterprises changed? Empirical evidence from German sectoral prices

    OpenAIRE

    Stahn, Kerstin

    2006-01-01

    The question as to whether the globalisation-related increase in competitive pressure may have caused the importance of exchange rate pass-through and pricing-to-market for export pricing in Germany to shift since the 1990s is addressed by testing the long-run export pricing behaviour of German enterprises for changes in the impact of its determinants. As globalisation may have affected competitive pressure in individual product markets differently, export pricing is analysed for 11 product c...

  5. 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.

  6. Assessing competition in hospital care markets: the importance of accounting for quality differentiation.

    Science.gov (United States)

    Tay, Abigail

    2003-01-01

    Quality differentiation is especially important in the hospital industry, where the choices of Medicare patients are unaffected by prices. Unlike previous studies that use geographic market concentration to estimate hospital competitiveness, this article emphasizes the importance of quality differentiation in this spatially differentiated market. I estimate a random-coefficients discrete-choice model that predicts patient flow to different hospitals and find that demand responses to both distance and quality are substantial. The estimates suggest that patients do not substitute toward alternative hospitals in proportion to current market shares, implying that geographic market concentration is an inappropriate measure of hospital competitiveness.

  7. Assistive technology pricing in Australia: is it efficient and equitable?

    Science.gov (United States)

    Summers, Michael P; Verikios, George

    2017-02-06

    over-servicing/over-charging align well with the original intention of the NDIS, and are likely to yield the best outcomes for consumers at the lowest costs.What is known about the topic? Government-funded programs are used extensively to purchase AT because it is a primary enabler for people of all ages with disabilities. Perceptions of unreasonably high prices for AT in Australia are resulting in the widespread adoption of bulk purchasing and related strategies by governments.What does this paper add? Carefully undertaken systematic price comparisons between Australia and comparable Organization For Economic Cooperation and Development countries indicate that, on average, Australian prices are lower than elsewhere when delivery to Australia is taken into account. It was also found that prices at brick-and-mortar shops, with all the services they provide to ensure the appropriateness of the products provided to meet the consumers' needs and goals, are substantially higher than Internet purchases in which the consumer bears all the risks and responsibilities for outcomes.What are the implications? Overuse of government bulk purchasing and similar arrangements will lead to less diversity in the available AT products, related services and retail outlets, resulting in less choice for consumers and higher risks of poor outcomes through less focus on matching consumers with the 'right' products for their needs and goals, and ultimately higher AT prices over time as competition is reduced to a few major suppliers.

  8. Dynamic Price Dispersion of Storable Goods

    DEFF Research Database (Denmark)

    Gao, Cixiu

    2014-01-01

    In this paper I provide an analytical model for the rationale behind supermarket pricing patterns characterized by long-term high prices and temporary price reductions. The model is based on the understanding that temporary price reductions serve the role of price discrimination between consumers...... with different search costs and willingness to wait. I demonstrate that the high-price-low-price pattern is rational for storable goods. In a Markov-perfect equilibrium, agents’ actions depend on consumer inventory, and purchase decisions are characterized by a critical price. The equilibrium price series...... consists of one-time price reductions and several consecutive periods in which all retailers offer the regular price. The model predicts that competition is the hardest when consumer inventories are zero, and that at high inventory levels the probability of holding a sale is low....

  9. Price elasticities in the German Statutory Health Insurance market before and after the health care reform of 2009.

    Science.gov (United States)

    Pendzialek, Jonas B; Danner, Marion; Simic, Dusan; Stock, Stephanie

    2015-05-01

    This paper investigates the change in price elasticity of health insurance choice in Germany after a reform of health insurance contributions. Using a comprehensive data set of all sickness funds between 2004 and 2013, price elasticities are calculated both before and after the reform for the entire market. The general price elasticity is found to be increased more than 4-fold from -0.81 prior to the reform to -3.53 after the reform. By introducing a new kind of health insurance contribution the reform seemingly increased the price elasticity of insured individuals to a more appropriate level under the given market parameters. However, further unintended consequences of the new contribution scheme were massive losses of market share for the more expensive sickness funds and therefore an undivided focus on pricing as the primary competitive element to the detriment of quality.

  10. Signaling Quality through Prices in an Oligopoly

    NARCIS (Netherlands)

    M.C.W. Janssen (Maarten); S. Roy (Santanu)

    2007-01-01

    textabstractFirms signal high quality through high prices even if the market structure is highly competitive and price competition is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is increasing in quality and the quality of each firm’s pro

  11. 基于客户选择行为的网络零售配送时隙定价模型%The pricing model of time slot for internet retailing delivery based on customer choice behavior

    Institute of Scientific and Technical Information of China (English)

    陈淮莉; 卫亚运

    2014-01-01

    在B2C( Business to Customer)环境下,配送成本是薄利经营的网络零售商们最需要处理的关键问题。以保证网络零售商的收益,最大化利用各配送时隙的能力为目标,对B2 C环境下的在线订单配送时隙的定价进行了研究。根据客户具有在线时隙选择行为随机性的特点,引入效用函数建立基于Logit的选择概率公式。并且考虑各时隙选项的效用,剩余预订时间,以及剩余能力建立了时隙定价模型。最后通过算例验证了模型的有效性,并通过分析说明了定价对客户时隙选择行为的影响。%In B2C, a critical question that an online retailer who operates on very thin margins needs to address is the cost of home delivery. To ensure the benefits of online retailers and maximum utilization of each delivery time slot’s capacity, the pricing model of time slot for online order delivery in B2C was studied. According to the characteristics that customer online choice behavior was random, the utility function was introduced, and the choice formula based on Logit was presented. The pricing model was presented based on the utilities of time slots, booking horizon and availability of time slot. Finally, a set of examples were analyzed to verify the effectiveness of the model, and demonstrated the influence of pricing to the customer choice behavior.

  12. Studying on equilibriums between price and QoS in multi-provider overlay access networks

    Institute of Scientific and Technical Information of China (English)

    Wang Yufeng; Wang Wendong

    2006-01-01

    From the viewpoint of game theory, this paper proposes a model that combines QoS index with price factor in overlay access networks, and uses the multinomial logit (MNL) to model the choice behaviour of users. Each service class is considered an independent and competitive entity offered by each provider,which aims at maximizing its own utility. Based on noncooperative game, we prove the existence and uniqueness of equilibriums between QoS levels and prices among various service classes, and demonstrate the properties of equilibriums. Finally, these results are verified via numerical analysis.

  13. Marketing environment dynamics and implications for pricing strategies: the case of home health care.

    Science.gov (United States)

    Ponsford, B J; Barlow, D

    1999-01-01

    This research reviews the factors affecting the pricing or rate schedules of home health care agencies. A large number of factors affect costs and thus rate structures. The major factors include reimbursement structures with accompanying discount structures, administrative burdens, and risks. Channel issues include bargaining power, competition, and size. Staffing issues affect pricing and product through the provider level, productivity, and quality outcomes. Physician and patient issues include quality concerns and choices. These factors are discussed in light of overall marketing strategy and the interaction of pricing with other marketing controllables such as product, place/distribution, and promotion. Economic and accounting principles are also reviewed with consideration to understanding direct and indirect costs in order to enable negotiators to effectively price health care services.

  14. Non competitive general equilibrium with endogenous price setting Equilibrio General no competitivo con formación endógena de precios

    Directory of Open Access Journals (Sweden)

    Castro Angélica

    2001-12-01

    Full Text Available

    This article presents an equilibrium concept that, contrary to the traditional walrasian one, allows for the unbalance between supply and demand in different markets, making easier the analysis of those situations in which they differ persistently, as in the case of the labor market. Furthermore, the process of price setting becomes endogenous and it is shown that an equilibrium with endogenous price setting is a particular case of an equilibrium of fixed prices. Toward the end some examples are presented which help us to sustain these arguments.

    En este artículo se presenta una 'concepción de equilibrio que, a
    diferencia de la tradicional walrasiana, permite el desbalance
    entre oferta y la demanda en los diferentes mercados facilitando
    el análisis de situaciones en las cuales estas difieren persistentemente, como en el caso del mercado laboral. De igual forma, se hace endógeno el proceso de formación de precios y se muestra que un equilibrio con formación de precios endógena es un caso particular de un equilibrio de precio fijo. Hacia el final se presentan algunos ejemplos que ayudan a sustentar estos argumentos.

  15. Structure choice of closed-loop supply chain based on manufacturer competition and production differentiation%基于制造商竞争和产品差异的闭环供应链结构选择

    Institute of Scientific and Technical Information of China (English)

    黄永; 达庆利

    2012-01-01

    综合考虑产品生命周期、产品差异和制造商竞争对于再制造闭环供应链的定价策略和闭环供应链结构选择的影响,建立了无回收、制造商回收、零售商回收和集中决策4种情形下以制造商为Stackelberg领导者的两周期闭环供应链的决策模型,并利用回溯法求得闭环供应链中各成员的最优定价策略.对各模型的最优利润进行比较并利用算例进行验证,结果表明:存在一个回收率临界值,使得当产品回收率低于此临界值时,制造商自己回收废旧产品;否则,制造商将委托零售商回收,与零售商实现共赢.制造商可以采用向零售商收取可变转移支付的机制来协调整个闭环供应链,从而进一步增大系统效益,消除分散决策模型中的双重边际化效应.%The influence of the product life cycle, the product differentiation and the manufacturer competition on the pricing policy and the structure choice of the remanufacturing closed-loop supply chain are comprehensively considered. Four decision-making models of non-collection, manufacturer-collection, retailer-collection and centralized decision-making are established in a two-period closed-loop supply chain in which the manufacturers act as the Stackelberg leader. And the optimal pricing policies of the members in these four models are derived by backtracking. The optimal profits of these models are compared and the numerical examples are used. The results show that there exists a threshold of the return rate. The manufacturer collects the used products by himself when the return rate is less than the threshold. Otherwise, collecting work is entrusted to the retailer and the win-win situation is achieved between the manufacturer and the retailer. The manufacturer can adopt the mechanism that variable transfer payments are charged to the retailer to coordinate the whole closed-loop supply chain, which can further increase the system's profit and eliminate the

  16. The price of electricity from private power producers: Stage 2, Expansion of sample and preliminary statistical analysis

    Energy Technology Data Exchange (ETDEWEB)

    Comnes, G.A.; Belden, T.N.; Kahn, E.P.

    1995-02-01

    The market for long-term bulk power is becoming increasingly competitive and mature. Given that many privately developed power projects have been or are being developed in the US, it is possible to begin to evaluate the performance of the market by analyzing its revealed prices. Using a consistent method, this paper presents levelized contract prices for a sample of privately developed US generation properties. The sample includes 26 projects with a total capacity of 6,354 MW. Contracts are described in terms of their choice of technology, choice of fuel, treatment of fuel price risk, geographic location, dispatchability, expected dispatch niche, and size. The contract price analysis shows that gas technologies clearly stand out as the most attractive. At an 80% capacity factor, coal projects have an average 20-year levelized price of $0.092/kWh, whereas natural gas combined cycle and/or cogeneration projects have an average price of $0.069/kWh. Within each technology type subsample, however, there is considerable variation. Prices for natural gas combustion turbines and one wind project are also presented. A preliminary statistical analysis is conducted to understand the relationship between price and four categories of explanatory factors including product heterogeneity, geographic heterogeneity, economic and technological change, and other buyer attributes (including avoided costs). Because of residual price variation, we are unable to accept the hypothesis that electricity is a homogeneous product. Instead, the analysis indicates that buyer value still plays an important role in the determination of price for competitively-acquired electricity.

  17. Price Discrimination

    OpenAIRE

    Armstrong, Mark

    2008-01-01

    This paper surveys recent economic research on price discrimination, both in monopoly and oligopoly markets. Topics include static and dynamic forms of price discrimination, and both final and input markets are considered. Potential antitrust aspects of price discrimination are highlighted throughout the paper. The paper argues that the informational requirements to make accurate policy are very great, and with most forms of price discrimination a laissez-faire policy may be the best availabl...

  18. 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...

  19. 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.

  20. Creative pricing strategies for medical services.

    Science.gov (United States)

    Tellis, G J

    1987-01-01

    This paper discusses the strategic role of the pricing of medical services. Strategic pricing is a creative process that can be a vital means of defining marketing segments, differentiating services, and gaining a competitive advantage. The central issue in strategic pricing is creatively using the principle of cross-subsidies or shared economies over consumer groups, service sets, or competitors. This principle yields a rich set of pricing strategies that can be used in response to various environments.

  1. Import price elasticities: reconsidering the evidence

    OpenAIRE

    Hélène Erkel-Rousse; Daniel Mirza

    2002-01-01

    Recent economic geography and trade empirical studies based on monopolistic competition suggest high levels of trade price elasticities (between 3 and 11). However, price elasticity estimations in trade equations using unit values as price proxies usually lead to lower values of around unity. We show that those inconclusive results may be due to some misspecification in these equations as well as measurement errors in prices. When suitable instrumental variables are used, within a panel of in...

  2. The minimum wage and restaurant prices

    OpenAIRE

    Daniel Aaronson; Eric French; MacDonald, James M.

    2004-01-01

    Using both store-level and aggregated price data from the food away from home component of the Consumer Price Index survey, we show that restaurant prices rise in response to an increase in the minimum wage. These results hold up when using several different sources of variation in the data. We interpret these findings within a model of employment determination. The model implies that minimum wage hikes cause employment to fall and prices to rise if labor markets are competitive but potential...

  3. Import price elasticities: reconsidering the evidence

    OpenAIRE

    Hélène Erkel-Rousse; Daniel Mirza

    2002-01-01

    Recent economic geography and trade empirical studies based on monopolistic competition suggest high levels of trade price elasticities (between 3 and 11). However, price elasticity estimations in trade equations using unit values as price proxies usually lead to lower values of around unity. We show that those inconclusive results may be due to some misspecification in these equations as well as measurement errors in prices. When suitable instrumental variables are used, within a panel of in...

  4. Consumer choice and suggested price for pork as influenced by its appearance, taste and information concerning country of origin and organic pig production

    DEFF Research Database (Denmark)

    Dransfield, E.; Ngapo, T.M.; Nielsen, Niels Asger

    2005-01-01

    Reactions of consumers to the appearance and taste of pork with and without information concerning outdoor production of pigs were tested in France, Denmark, Sweden and UK. Consumers in all four countries focussed on colour and fatness rather than marbling and drip to make their choice. Almost half...... as pork from pigs 'raised outside' as opposed to 'inside'. There was no difference in the taste of grilled pork from indoor and outdoor production systems but pork labelled 'home produced' or 'outdoor' were more appreciated. Consumers' willingness to pay varied widely and was higher for those consumers...

  5. Consumer choice and suggested price for pork as influenced by its appearance, taste and information concerning country of origin and organic pig production

    DEFF Research Database (Denmark)

    Dransfield, E.; Ngapo, T.M.; Nielsen, Niels Asger

    2005-01-01

    Reactions of consumers to the appearance and taste of pork with and without information concerning outdoor production of pigs were tested in France, Denmark, Sweden and UK. Consumers in all four countries focussed on colour and fatness rather than marbling and drip to make their choice. Almost half...... of the British and Danish preferred the paler and the French the darker pork. Most people preferred the leaner pork. When information was provided in the form of labels, the vast majority of consumers preferred the pork labelled as originating from their own country as opposed to 'imported' and that labelled...

  6. 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

  7. Electricity contract choices of Finnish residential customers. A choice based conjoint analysis

    Energy Technology Data Exchange (ETDEWEB)

    Rouvinen, S.; Matero, J. (Univ. of Eastern Finland, Joensuu (Finland), School of Forest Sciences), e-mail: seppo.rouvinen@uef.fi, e-mail: jukka.matero@uef.fi

    2010-07-01

    Our aim is to examine how different environmental attributes of electricity contracts affect the residential customer choices when heterogeneity in customer preferences and motivations is taken into account. The data was acquired by a mail questionnaire to random sample of Finnish people in October-November 2009 with a response rate of 38 %. In addition to conventional questions, like questions on socio-demographic and agreements of energy related statements, the discrete choice experiment (DCE) of electricity contracts was included. The choice sets in the DCE had three electricity contract alternatives with varying levels of predetermined attributes (including unit price, supplier type, frequency of power outages, energy source and CO{sub 2} emissions). In this paper, we present the findings of our DCE design. Modeling respondent choices resulted in implicit prices for various electricity contract attributes that provide guidance for green marketing strategies of electricity suppliers and energy related informational activities of public institutions. We conclude that currently the potential for increasing demand-based environmental competitiveness from the wood electricity differentiation remains limited as we did not find any significant market segment of residential customers with strong preferences for wood over other sources of electricity (including 'mixture'). (orig.)

  8. Price Intransparency, Consumer Decision Making and European Consumer Law

    NARCIS (Netherlands)

    W.H. van Boom (Willem)

    2011-01-01

    textabstractPrice comparison is a basic element of competition. For comparison to work, at least prices need to be transparent. Moreover, price is usually a focal point in consumer thinking and deciding on transactions. Hence, obfuscating prices can be detrimental to consumers. Therefore, it is vita

  9. Political Failures and Intergovernmental Competition

    Directory of Open Access Journals (Sweden)

    Jean Hindriks

    2012-01-01

    Full Text Available In normative public economics, intergovernmental competition is usually viewed as harmful. Although empirical support for this position does not abound, market integration has intensified competition among developed countries. In this paper we argue that when assessing welfare effects of intergovernmental competition for various forms of political failures (the public choice critique, the outcome is ambiguous and competition can be welfare improving.

  10. Price Analysis on Commercial Items Purchases Within the Department of Defense

    Science.gov (United States)

    2014-04-30

    other basis, 5 Competition, 34 CO’s Knowledge, 4 IGCE, 30 Competition Mkt Research Previous Prices Mkt Research, 15 Similar Items, 26 Previous...used? 14 What price analysis methods are being used? 15 Competition, 34 Mkt  Research, 15 Previous Prices, 49 Price List, 14 Similar Items, 26 CO’s...Knowledge,  4 IGCE, 30 Any other basis, 5 Price Justification (Supply & Services) Competition Mkt  Research Previous Prices Price List Similar Items CO’s

  11. Association of Price and Dividend in the Nigerian Capital Market

    African Journals Online (AJOL)

    Nneka Umera-Okeke

    and attracting greater competitive stock pricing fortunes, they should ... earnings ratio, book value per share, net assets per share, and dividend cover. ... model expresses stock price as a function of earnings per share and book value per.

  12. The Optimization of Shareholders' Composition and the Choice of Industrial Policies:With Regard to International Competitiveness%基于国际竞争力的股权结构优化与产业政策选择

    Institute of Scientific and Technical Information of China (English)

    李腊生; 张艳莉

    2003-01-01

    After entering the WTO, the competitiveness of our firms appears itself an urgent topic. How to use the precious limited resources to improve the firms' competitive ability in the international market be-comes an unavoidable task before the government. Our analysis shows that although our policy of changing the state-owned enterprises into limited corporate firms was the only right choice at the early 1990' s, itwas not so up to mid 1990's. Because many privately owned firms have set up and they also have devel-oped greatly through their in-born vitality, it is therefore a wrong decision to continue to support the state-owned enterprises with our limited resources. To face the potential pressure from entering WTO, we now have no way out but to change the economic structure to level up the competitive edge of our firms. That is, we must focus our social and economic resources to those corporations of private sector which have no structural obstacles but have strong developing potentials. This is our most effective industrial choice to make our business firms large and strong.

  13. Best Practices for New Product Pricing: Impact on Market Performance and Price Level under Different Conditions

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.; Frambach, R.T.; Verhallen, Th.M.M.

    2013-01-01

    To date, research on new product pricing has predominantly been approached as a choice between market skimming and penetration pricing. Despite calls for research that addresses other complexities in new product pricing, empirical research responding to these calls remains scarce. This paper examine

  14. Best Practices for New Product Pricing: Impact on Market Performance and Price Level under Different Conditions

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.; Frambach, R.T.; Verhallen, Th.M.M.

    2013-01-01

    To date, research on new product pricing has predominantly been approached as a choice between market skimming and penetration pricing. Despite calls for research that addresses other complexities in new product pricing, empirical research responding to these calls remains scarce. This paper

  15. An analysis of price competitiveness of CNG (compressed natural gas) versus gasoline: estimation of the elasticities of demand by CNG in a recent period in Brazil; Uma analise da competitividade de preco do GNV (Gas Natural Veicular) frente a gasolina: estimacao das elasticidades da demanda por GNV no Brasil no periodo recente

    Energy Technology Data Exchange (ETDEWEB)

    Iootty, Mariana; Pinto Junior, Helder; Roppa, Bruna; Biasi, Guilherme de [Universidade Federal do Rio de Janeiro (UFRJ), RJ (Brazil). Inst. de Economia

    2004-07-01

    One of the main determinants to the expansion of natural gas on the Brazilian domestic market is its price. Hence, it is important to analyze the price competitiveness of natural gas vis-a-vis its competitors. The current paper focuses on the market of natural gas in vehicles (the compressed natural gas - CNG), and uses co-integration techniques to estimate the price-elasticity of CNG, the cross-elasticity of CNG and gasoline, and the income-elasticity. The results suggest that price is a relevant factor in the long-run, while in the short-run income is the most significant determinant of the demand variation. In addition, the paper also shows an imperfect substitutability between CNG and gasoline. (author)

  16. 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...

  17. 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…

  18. A risk-averse competitive newsvendor problem under the CVaR criterion

    NARCIS (Netherlands)

    Wu, Meng; Zhu, Stuart X.; Teunter, Ruud H.

    2014-01-01

    We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand spli

  19. A risk-averse competitive newsvendor problem under the CVaR criterion

    NARCIS (Netherlands)

    Wu, Meng; Zhu, Stuart X.; Teunter, Ruud H.

    2014-01-01

    We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand

  20. 考虑网络外部性的竞争性音乐产品定价策略研究%Research on the Pricing Strategy of Competitive Music Products Considering the Network Externality

    Institute of Scientific and Technical Information of China (English)

    郭强; 姚晓玲

    2016-01-01

    从消费者效用角度研究了一个网络音乐厂商与一个传统音乐厂商构成的双寡头垄断市场中的产品定价策略,构建Hotelling博弈模型,探讨了网络外部性对音乐厂商最优定价、利润变化趋势和市场盗版水平的影响。研究发现:有网络外部性时,不论网络音乐厂商还是传统音乐厂商,产品价格都上升;网络音乐厂商的利润必然上升,而传统音乐厂商的利润可能下降。网络外部性的存在增大了整个音乐市场的需求,盗版的需求也随之增大,但市场竞争加剧导致盗版市场份额可能下降。%From the perspective of consumer utility , this paper constructs a Hotelling model which is based on the network externality to discuss a product pricing strategy in a double oligopoly market consisting an online music producer and a tradi -tional music producer .Result finds that the price of these two producers will rise in the presence of network externality .The profit of the online music producer will increase , and the profit of the traditional music producer may decrease .In addition, the existence of network externality increases the demand of the whole music market and the demand of piracy .However , the market competition intensifies and the market share of piracy demands falls .

  1. Dual-Channel Strategies for Retailers with Price and Service Competition%基于价格和服务竞争的零售商双渠道策略

    Institute of Scientific and Technical Information of China (English)

    张盼; 熊中楷; 郭年

    2012-01-01

    为了研究存在价格和服务竞争时零售商的双渠道策略,在双寡头市场中运用Hotelling模型求得了零售商价格和服务水平的均衡解,分析了网络渠道的开通对零售商定价、服务水平及其利润的影响,讨论了消费者信息搭便车时零售商是否开通网络渠道.研究表明:当零售商间差异较小时,网络渠道的开通会使零售商提供较多的服务,获得较少的利润;当考虑信息搭便车时,都不开通网络渠道、只有一个开通网络渠道、两个都开通网络渠道都可能是均衡的渠道结构,其中零售商都开通网络渠道是一个囚徒困境.%The issue of retailers' dual-channel strategies with price and service competition is discussed. In a duopoly market environment, a Hotelling model is presented for this problem. Then, the equilibrium so-lutions of prices and service level are obtained. Based on the solutions, impact of additional Internet chan-nel on prices, service level, and profits is examined. Furthermore, in considering the behavior of informa-tion-based free-riding, it analyzes whether retailers can open direct channel. Result shows that when the differentiation among the competing retailers is not too large, an online channel can result in increase of service level and decrease of profit. Furthermore, in considering information-based free-riding behavior, any of the three channel strategies, i. e. no Internet channel, asymmetric Internet channel, and symmetric Internet channel, is the possible equilibria. Also, multichannel retailing for all retailers is a prisoner' s di-lemma.

  2. Generic medicine pricing in Europe: current issues and future perspective.

    Science.gov (United States)

    Simoens, Steven

    2008-01-01

    This editorial discusses a number of trends affecting the pricing of generic medicines in Europe. With respect to pricing, recent evidence has emerged that European generic medicine manufacturers face competition from Indian manufacturers; that the price level of generic medicines varies substantially between European countries; and that generic medicine manufacturers engage in competition by discount rather than price competition in France, The Netherlands and the UK. These trends suggest that there may be scope for further reducing the prices of generic medicines in several countries. In relation to reference pricing, most European countries have incorporated market incentives within reference pricing systems with a view to promoting price competition. The European experience indicates that the generic medicines industry delivers competitive prices under a reference pricing system if demand-side policies are in place that stimulate physicians, pharmacists and patients to use generic medicines. Finally, caution needs to be exercised when focusing on the drivers of generic medicine pricing as these drivers not only vary between countries, but may also vary within a country. Manufacturers of originator and generic medicines do not take a single pricing approach following patent expiry, but vary their pricing strategy from molecule to molecule.

  3. INFLUENCING FACTORS OF PRICE AND ASSOCIATED STRATEGIES

    OpenAIRE

    Liviu NEAMTU; NEAMTU Adina Claudia

    2012-01-01

    The price is an important element in product position; it is a means of sending signals to consumers about the nature and quality of the product. When, for a certain business environment, the demand curve is known in relation to market (competition) costs and prices, the firm can choose a pricing policy simultaneously with business strategy. This study synthesizes the key-factors occurring in choosing a business strategy and the game of price and cost on the market As an approach to pricing p...

  4. 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.

  5. 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.

  6. World competitiveness and agriculture

    Directory of Open Access Journals (Sweden)

    J. van Zyl

    1997-07-01

    Full Text Available Against the background of a changing environment in which market factors and greater world trade and competitiveness are increasingly becoming the only criteria for success, a framework for the analysis of world competitiveness is initially developed. This is followed by a discussion on the growth of productivity in agriculture, as well as an exposition of the role of agricultural research. Thirdly, price factors and the terms of trade are discussed, followed by a summary of policy implications.

  7. Analysis on the choice of the most suitable metal prices in a mining investment project; Analisis sobre la eleccion del precio mas adecuado de los metales en un proyecto minero de inversion

    Energy Technology Data Exchange (ETDEWEB)

    Torre, L. de la; Espi, J. a.

    2014-07-01

    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)

  8. Competition policy for health care provision in Norway.

    Science.gov (United States)

    Brekke, Kurt R; Straume, Odd Rune

    2017-02-01

    Competition policy has played a very limited role for health care provision in Norway. The main reason is that Norway has a National Health Service (NHS) with extensive public provision and a wide set of sector-specific regulations that limit the scope for competition. However, the last two decades, several reforms have deregulated health care provision and opened up for provider competition along some dimensions. For specialised care, the government has introduced patient choice and (partly) activity (DRG) based funding, but also corporatised public hospitals and allowed for more private provision. For primary care, a reform changed the payment scheme to capitation and (a higher share of) fee-for-service, inducing almost all GPs on fixed salary contracts to become self-employed. While these reforms have the potential for generating competition in the Norwegian NHS, the empirical evidence is quite limited and the findings are mixed. We identify a set of possible caveats that may weaken the incentives for provider competition - such as the partial implementation of DRG pricing, the dual purchaser-provider role of regional health authorities, and the extensive consolidation of public hospitals - and argue that there is great scope for competition policy measures that could stimulate provider competition within the Norwegian NHS.

  9. Price pass-through and minimum wages

    OpenAIRE

    Daniel Aaronson

    1997-01-01

    A textbook consequence of competitive markets is that an industry-wide increase in the price of inputs will be passed on to consumers through an increase in prices. This fundamental implication has been explored by researchers interested in who bears the burden of taxation and exchange rate fluctuations. However, little attention has focused on the price implications of minimum wage hikes. From a policy perspective, this is an oversight. Welfare analysis of minimum wage laws should not ignore...

  10. Import Price-Elastcities: Reconsidering the Evidence

    OpenAIRE

    Helene Erkel-Rousse; Daniel Mirza

    2000-01-01

    Recent geography and trade empirical studies based on monopolistic competition [Hummels, 1998; Hanson, 1999; Head and Ries, 1999] suggest high levels of trade price-elasticities (between 3 and 11). However, direct estimations of price-elasticities in trade equations, using price indexes at the aggregate or industry levels, lead to much lower values than those predicted by the prior studies and the theory (usually around unity). In this article, we show that these inconclusive results may be d...

  11. Import Price-Elastcities: Reconsidering the Evidence

    OpenAIRE

    Helene Erkel-Rousse; Daniel Mirza

    2000-01-01

    Recent geography and trade empirical studies based on monopolistic competition [Hummels, 1998; Hanson, 1999; Head and Ries, 1999] suggest high levels of trade price-elasticities (between 3 and 11). However, direct estimations of price-elasticities in trade equations, using price indexes at the aggregate or industry levels, lead to much lower values than those predicted by the prior studies and the theory (usually around unity). In this article, we show that these inconclusive results may be d...

  12. The Location Model with Reservation Prices

    NARCIS (Netherlands)

    Webers, H.M.

    1996-01-01

    In this paper, we analyze a variant of the standard Hotelling model of spatial competition where firms first choose locations along the line and then, given these locations, compete in prices.Consumers have a finite reservation price and incur a quadratic transportation cost.We show that there exist

  13. Maximal Cartel Pricing and Leniency Programs

    NARCIS (Netherlands)

    Houba, H.E.D.; Motchenkova, E.; Wen, Q.

    2008-01-01

    For a general class of oligopoly models with price competition, we analyze the impact of ex-ante leniency programs in antitrust regulation on the endogenous maximal-sustainable cartel price. This impact depends upon industry characteristics including its cartel culture. Our analysis disentangles the

  14. Customer Strategies for Responding to Day-Ahead Market HourlyElectricity Pricing

    Energy Technology Data Exchange (ETDEWEB)

    Goldman, Chuck; Hopper, Nicole; Bharvirkar, Ranjit; Neenan,Bernie; Boisvert, Dick; Cappers, Peter; Pratt, Donna; Butkins, Kim

    2005-08-25

    Real-time pricing (RTP) has been advocated as an economically efficient means to send price signals to customers to promote demand response (DR) (Borenstein 2002, Borenstein 2005, Ruff 2002). However, limited information exists that can be used to judge how effectively RTP actually induces DR, particularly in the context of restructured electricity markets. This report describes the second phase of a study of how large, non-residential customers' adapted to default-service day-ahead hourly pricing. The customers are located in upstate New York and served under Niagara Mohawk, A National Grid Company (NMPC)'s SC-3A rate class. The SC-3A tariff is a type of RTP that provides firm, day-ahead notice of hourly varying prices indexed to New York Independent System Operator (NYISO) day-ahead market prices. The study was funded by the California Energy Commission (CEC)'s PIER program through the Demand Response Research Center (DRRC). NMPC's is the first and longest-running default-service RTP tariff implemented in the context of retail competition. The mix of NMPC's large customers exposed to day-ahead hourly prices is roughly 30% industrial, 25% commercial and 45% institutional. They have faced periods of high prices during the study period (2000-2004), thereby providing an opportunity to assess their response to volatile hourly prices. The nature of the SC-3A default service attracted competitive retailers offering a wide array of pricing and hedging options, and customers could also participate in demand response programs implemented by NYISO. The first phase of this study examined SC-3A customers' satisfaction, hedging choices and price response through in-depth customer market research and a Constant Elasticity of Substitution (CES) demand model (Goldman et al. 2004). This second phase was undertaken to answer questions that remained unresolved and to quantify price response to a higher level of granularity. We accomplished these

  15. 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.

  16. Bertrand Competition with an Asymmetric No-Discrimination Constraint

    NARCIS (Netherlands)

    Bouckaert, J.M.C.; Degryse, H.A.; van Dijk, T.

    2012-01-01

    Abstract: We study the competitive and welfare consequences when only one firm must commit to uniform pricing while the competitor’s pricing policy is left unconstrained. The asymmetric no-discrimination constraint prohibits both behaviour-based price discrimination within the competitive segment an

  17. Fair pricing, and pricing paradoxes

    Directory of Open Access Journals (Sweden)

    Barbara Swart

    2016-05-01

    Full Text Available The St Petersburg Paradox revolves round the determination of a fair price for playing the St Petersburg Game. According to the original formulation, the price for the game is infinite, and, therefore, paradoxical. Although the St Petersburg Paradox can be seen as concerning merely a game, Paul Samuelson (1977 calls it a “fascinating chapter in the history of ideas”, a chapter that gave rise to a considerable number of papers over more than 200 years involving fields such as probability theory and economics. In a paper in this journal, Vivian (2013 undertook a numerical investigation of the St Petersburg Game. In this paper, the central issue of the paradox is identified as that of fair (risk-neutral pricing, which is fundamental in economics and finance and involves important concepts such as no arbitrage, discounting, and risk-neutral measures. The model for the St Petersburg Game as set out in this paper is new and analytical and resolves the so-called pricing paradox by applying a discounting procedure. In this framework, it is shown that there is in fact no infinite price paradox, and simple formulas for obtaining a finite price for the game are also provided.

  18. Finding similar price preferences on tourism activities

    OpenAIRE

    Lorenzo Masiero; Juan L. Nicolau

    2011-01-01

    This article builds on the double role of the effect of prices on the choice of tourism activities: not only is it the only component of a destination marketing strategy that represents income but also a determinant factor in tourist choice. On this account, identifying patterns of tourists with different degrees of sensitivities to prices would help them design an appropriate bundle of activities and have a clear definition of the segment the destination should try to attract. Accordin...

  19. Introducing of Green Pricing in the Korean Electricity Sector

    Energy Technology Data Exchange (ETDEWEB)

    Boo, K.J. [Korea Energy Economics Institute, Euiwang (Korea)

    2001-11-01

    In recent years, the Korean electricity sector has been undergoing restructuring, represented by de-regulation and promotion of competition. Competition will, eventually, force electricity power producers to overly rely on cheap fuels such as coal and nuclear in order to reduce the cost of power generation, which is against the international Green Round, including the UNFCCC. Accordingly, some measures are needed not to let such an market failure discourage the efforts to protect the environment. Up to date, a number of policy measures have been worked out by the Korean government to promote the use of renewable energy in power generation. Such efforts, however, have not been quite successful. Innovative policy tools are called for to promote renewable energy-base power generation in the emerging competitive electricity market. Among various approaches that have been tried and worked out in the developed countries to adequately address this problem, a most popular approach is green pricing. Green pricing is to let the customers pay for the additional cost incurred from installing renewable energy-based generating facilities, consequently making it viable and promoting an increased use of renewables in the power generation. Accordingly, a market research to investigate the willingness to pay for this premium was conducted as a prerequisite to design a green pricing. The major findings of this market research are: First, while limited to the industrial and buildings sectors, awareness of environmental and green pricing is not so disappointing as compared with those in the develop countries(41.3%). Second, companies have not yet fully developed the concept of green pricing and are mainly motivated to purchase green power in the perspective of a great cause rather than in pursuit of direct and indirect economic benefits. Third, regarding fuel choice for power generation, respondents express a strong opposition to nuclear, coal, and oil, while they are more favorable to

  20. 选择与竞争:英国国民医疗服务体系的准市场机制改革%Choice and Competition: Analysis on Quasi-market Mechanism Reform of British NHS System

    Institute of Scientific and Technical Information of China (English)

    王向澄

    2015-01-01

    The quality, efficiency, responsiveness, and equity of service management are the indicators for the public health care system. International experiences show that the provision of public medical and health services in general has four modes: namely, trust-based mode, command and control mode, opinion expression mode, and choice and competition mode. Each mode has its own advantage, as well as disadvantage. Existing theories and empirical studies suggest that the choice and competition mode in most cases is superior to other modes. Since the 21st century, the British National Health Service (NHS) system carried through a quasi-market mechanism reform based on the principle of choice and competition. As a result, its medical service in terms of quality, efficiency, responsiveness, and equity made significant improvement. Meanwhile, the related management institutions and policy have the necessity to get well-arranged and redesign in order to cope with potential problems and challenges.%服务管理的质量、效率、回应性与公平性是公立医疗卫生体系注重的指标.国际经验显示,公立医疗卫生服务的提供包括信任模式、指挥与控制模式、表达模式、选择与竞争模式,每种模式各有利弊.理论与实证分析认为,选择与竞争模式多数情况下优于其他模式.本世纪以来,英国国民医疗服务体系进行的是基于选择与竞争的准市场机制改革.目前已在医疗服务的质量、效率、回应性及公平性等方面取得显著的提升.但同时,相关的管理与政策有必要加以完善,以应对潜在的问题与挑战.对英国国民医疗服务体系改革的模式选择与实践经验的学习与分析,将对我国的医疗改革在一定程度上有借鉴意义,有利于进一步明晰改革的方向并实现改革的稳步推进.

  1. Exploring the Competitive Effects of Charter Schools

    Science.gov (United States)

    Carpenter, Dick M., II; Medina, Paul M.

    2011-01-01

    Central to the debate over school choice has been the question of how public schools respond to market-based competition. Many choice advocates suggest that competition can spur public schools to become more effective and efficient, but the evidence regarding the effect of competition from charters is comparably sparse and mixed. This article…

  2. Starting point anchoring effects in choice experiments

    DEFF Research Database (Denmark)

    Ladenburg, Jacob; Olsen, Søren Bøye

    Anchoring is acknowledged as a potential source of considerable bias in Dichotomous Choice Contingent Valuation studies. Recently, another stated preference method known as Choice Experiments has gained in popularity as well as the number of applied studies. However, as the elicitation...... of preferences in Choice Experiments resembles the Dichotomous Choice format, there is reason to suspect that Choice Experiments are equally vulnerable to anchoring bias. Employing different sets of price levels in a so-called Instruction Choice Set presented prior to the actual choice sets, the present study...... finds that preferences elicited by Choice Experiments can be subject to starting point anchoring bias. Different price levels provoked significantly different distributions of choice in two otherwise identical choice set designs. On a more specific level, the results indicate that the anchoring...

  3. Starting point anchoring effects in choice experiments

    DEFF Research Database (Denmark)

    Ladenburg, Jacob; Olsen, Søren Bøye

    of preferences in Choice Experiments resembles the Dichotomous Choice format, there is reason to suspect that Choice Experiments are equally vulnerable to anchoring bias. Employing different sets of price levels in a so-called Instruction Choice Set presented prior to the actual choice sets, the present study......Anchoring is acknowledged as a potential source of considerable bias in Dichotomous Choice Contingent Valuation studies. Recently, another stated preference method known as Choice Experiments has gained in popularity as well as the number of applied studies. However, as the elicitation...... finds that preferences elicited by Choice Experiments can be subject to starting point anchoring bias. Different price levels provoked significantly different distributions of choice in two otherwise identical choice set designs. On a more specific level, the results indicate that the anchoring...

  4. The Minimum Wage, Restaurant Prices, and Labor Market Structure

    Science.gov (United States)

    Aaronson, Daniel; French, Eric; MacDonald, James

    2008-01-01

    Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…

  5. COMPETITION AS MARKET MECHANISM

    Directory of Open Access Journals (Sweden)

    N. Ya. Kazhuro

    2015-01-01

    Full Text Available The essence of a competition as an objective law for development of the commodities production based on private ownership of the means of production and commodity exchange has been revealed in the paper. The paper presents an economic basis of market economy (private ownership which generates a corresponding production objective. Such purpose is a maximization of profit and a minimization of market subject expenses. Therefore, a struggle for the most favourable conditions on commodity production and sales is inevitable in such situation. The struggle is considered in the community with developed market economy as a competition.The competition is regarded not as an exogenic factor exerting its influence on market economic system from the outside, but as an objective phenomenon which is inherent to management market system in itself. Such treatment is substantiated by economic disintegration of individual commodity producers. Being an important engine of market economy, the competition does not establish its laws, and its role is to be an executive of data which are internally inherent in commodity production laws and firstly it concerns a profit maximization law which defines a purpose and guiding motif of economic entities in the given economy.The competition plays a contradictory role under conditions of market economy. On the one hand, it makes manufacturers constantly to aspire to expense reduction for the sake of profit increase. This has resulted in labour productivity increase, production cost decrease and a company receives an opportunity to reduce retail price for its products. Consequently, the competition acts as a potential factor for lowering of prices while increasing production efficiency. On the other hand, sellers have more freedom in price fixing under conditions of imperfect competition as they sell their products under the conditions of a monopolistic competition or an oligopoly. This is the main weakest point of the market

  6. Competition in investment banking

    Directory of Open Access Journals (Sweden)

    Katrina Ellis

    2011-01-01

    Full Text Available We construct a comprehensive measure of overall investment banking competitiveness for follow-on offerings that aggregates the various dimensions of competition such as fees, pricing accuracy, analyst recommendations, distributional abilities, market making prowess, debt offering capabilities, and overall reputation. The measure allows us to incorporate trade-offs that investment banks may use in competing for new or established clients. We find that firms who switch to similar-quality underwriters enjoy more intense competition among investment banks which manifests in lower fees and more optimistic recommendations. Investment banks do compete vigorously for some clients, with the level of competition related to the likelihood of gaining or losing clients. Finally, investment banks not performing up to market norms are more likely to be dropped in the follow-on offering. In contrast, firms who seek a higher reputation underwriter face relatively non-competitive markets.

  7. The Competition Effects of Third-degree Price Discrimination of Differentiated Products in Oligopoly and Antimonopoly Review Mechanism%差别产品寡头三级价格歧视的竞争效应及反垄断审查机制

    Institute of Scientific and Technical Information of China (English)

    唐要家; 吕萃

    2016-01-01

    The welfare effect of oligopoly third-degree price discrimination is a difficult issue in eco-nomics theory and anti-monopoly law. This paper analyzes the competition effects of third-degree price dis-crimination in differentiated products oligopoly. The welfare effect of third -degree price discrimination de-pends on the combination of“competition weakening effect”of product differentiation and“competition promo-tion effect”of price discrimination. The consumer preference has important influence on equilibrium and wel-fare. Third-degree price discrimination will not lead to lower price for all consumers and lower profits for all firms. Third-degree price discrimination of differentiated products will promote the synchronous improvement of consumer welfare and total social welfare,and welfare trade-off will become more complicated. It should be defined correctly and form-effects test should be taken to protect consumers' welfare.%如何判定寡头三级价格歧视的福利效应是反垄断理论与政策的难点问题。采用差别产品寡头三级价格歧视模型分析发现,三级价格歧视的福利效应取决于产品差别化“竞争弱化效应”和价格歧视“竞争促进效应”的共同作用,寡头三级价格歧视并不注定所有消费者支付低价格和企业利润下降。寡头三级价格歧视的福利效应很大程度上受到消费者选择偏好的影响,并且消费者福利与社会总福利往往呈现出非同步变化的特点,带来更复杂的福利权衡。反垄断法应科学界定价格歧视,执法应采用“形式审查”与“效应审查”相结合的复合审查机制,并优先保护消费者利益。

  8. Real-time Pricing in Power Markets

    DEFF Research Database (Denmark)

    Boom, Anette; Schwenen, Sebastian

    We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction...... to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power...

  9. Real-time Pricing in Power Markets

    DEFF Research Database (Denmark)

    Boom, Anette; Schwenen, Sebastian

    We examine welfare e ects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction...... to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power...

  10. (Q,S,s) Pricing Rules

    OpenAIRE

    Kenneth Burdett; Guido Menzio

    2013-01-01

    We study the effect of menu costs on the pricing behavior of sellers and on the cross-sectional distribution of prices in the search-theoretic model of imperfect competition of Burdett and Judd (1983). We find that, when menu costs are small, the equilibrium is such that sellers follow a (Q, S, s) pricing rule. According to a (Q, S, s) rule, a seller lets inflation erode the real value of its nominal price until it reaches some point s. Then, the seller pays the menu cost and changes its nomi...

  11. Medicamentos: o preço da saúde / Drugs: The Health Price

    Directory of Open Access Journals (Sweden)

    Joedson de Souza Delgado

    2016-05-01

    Full Text Available Purpose – This paper analyzes the structure of government control in drug prices between sector agents, to facilitate its reach to the population in the face of fierce competition for brand positioning in relation to generic manufacturers produced and developed in Brazil. Methodology – Based on empirical data and making use of a literature review, the paper discusses the model of maximum pricing in pharmacies, records the changes of the regulatory environment of the Brazilian pharmaceutical industry, describes the branded drug access policy and discusses the effectiveness and efficiency of intervention. Findings – The state interference in the drug market denotes the search for the containment of economic and social disparities by expanding the opportunity of choice and the offer of prices that are more competitive. Even so, there are still discussions about the quantum to be paid for effective and innovative drugs under patent protection. Practical implications – The critical discussion reveals the need for good sectorial regulation in order to maximize the welfare of society and consumers by increasing competition between laboratories.

  12. Financing long term care under Medicaid: competitive bidding, vouchers and expenditure matching in an HMO framework.

    Science.gov (United States)

    Hogan, A J

    1983-01-01

    Within the framework of a Long Term Care--HMO, a series of innovative financing mechanisms are proposed to encourage efficiency, reduce cost increases and promote the quality of long term care. Competitive bidding is used to set prices for long term care. Based upon these competitively set prices, HMO enrollees are given long term care vouchers with which to purchase care. Cost savings, arising from choices of care less expensive than the value of the voucher, are shared with the enrollee and the case management team. Incentive payments to this team are made only after a quality of care review. A portion of the payment to the long term care provider is set aside as a quality assurance withhold. If quality of care is inadequate, the withhold is forfeit.

  13. From tariffs to prices

    Energy Technology Data Exchange (ETDEWEB)

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

    1998-07-01

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

  14. Price Elasticity Estimates of Cigarette Demand in Vietnam

    OpenAIRE

    Eozenou, Patrick; Fishburn, Burke

    2001-01-01

    In this paper, we analyze a complete demand system to estimate the price elasticity for cigarette demand in Vietnam. Following Deaton (1990), we build a spatial panel using cross sectional household survey data. We consider a model of simultaneous choice of quantity and quality. This allows us to exploit unit values from cigarette consumption in order to disentangle quality choice from exogenous price variations. We then rely on spatial variations in prices and quantities demanded to estimate...

  15. Wine Pricing Inefficiencies among Major Online Wine Sellers

    OpenAIRE

    Ron Christner; Daniel Arango

    2014-01-01

    The purpose of this paper is to compare, analyze and evaluate the relative competitiveness of wine pricing across major online wine retailers as it relates to the Law of One Price. The design utilized is to measure and evaluate the reasons for the differences, between the per bottle prices, of recent internet wine offerings by major internet wine retailers against the average United States prices found on winesearcher.com, a very comprehensive and constantly updated shopbot listing of wine pr...

  16. Profit maximization mitigates competition

    DEFF Research Database (Denmark)

    Dierker, Egbert; Grodal, Birgit

    1996-01-01

    We consider oligopolistic markets in which the notion of shareholders' utility is well-defined and compare the Bertrand-Nash equilibria in case of utility maximization with those under the usual profit maximization hypothesis. Our main result states that profit maximization leads to less price...... competition than utility maximization. Since profit maximization tends to raise prices, it may be regarded as beneficial for the owners as a whole. Moreover, if profit maximization is a good proxy for utility maximization, then there is no need for a general equilibrium analysis that takes the distribution...... of profits among consumers fully into account and partial equilibrium analysis suffices...

  17. BASIC METHODS OF CLASSIFICATION AND CHARACTERISTICS OF METHODS OF PRICING IN UKRAINE

    OpenAIRE

    A. Boguslavskiy

    2014-01-01

    The article provided definitions and shows the need to use different methods of pricing of enterprises. Exposed the reasons of the absence of a universal classification of pricing methods. The approaches of different authors to classify groups of pricing methods: 1) the cost method; 2) methods with a focus on competition; 3) methods for pricing based on demand, 4) pricing with a focus on maximum profit, 5) parametric methods, 6) pricing under risk and uncertainty, etc. An improved classificat...

  18. Mapping your competitive position.

    Science.gov (United States)

    D'Aveni, Richard A

    2007-11-01

    A price-benefit positioning map helps you see, through your customers' eyes, how your product compares with all its competitors in a market. You can draw such a map quickly and objectively, without having to resort to costly, time-consuming consumer surveys or subjective estimates of the excellence of your product and the shortcomings of all the others. Creating a positioning map involves three steps: First, define your market to include everything your customers might consider to be your product's competitors or substitutes. Second, track the price your customers actually pay (wholesale or retail? bundled or unbundled?) and identify what your customers see as your offering's primary benefit. This is done through regression analysis, determining which of the product's attributes (as described objectively by rating services, government agencies, R&D departments, and the like) explains most of the variance in its price. Third, draw the map by plotting on a graph the position of every product in the market you've selected according to its price and its level of primary benefit, and draw a line that runs through the middle of the points. What you get is a picture of the competitive landscape of your market, where all the products above the line command a price premium owing to some secondary benefit customers value, and all those below the line are positioned to earn market share through lower prices and reduced secondary benefits. Using examples as varied as Harley-Davidson motorcycles, Motorola cell phones, and the New York restaurant market, Tuck professor D'Aveni demonstrates some of the many ways the maps can be used: to locate unoccupied or less-crowded spaces in highly competitive markets, for instance, or to identify opportunities created through changes in the relationship between the primary benefit and prices. The maps even allow companies to anticipate--and counter-- rivals' strategies. R eprint RO711G

  19. Price volatility and banking in green certificate markets

    DEFF Research Database (Denmark)

    Amundsen, Eirik Schrøder; Baldursson, Fridrik M.; Mortensen, Jørgen Birk

    2006-01-01

    There is concern that prices in a market for Green Certificates (GCs) primarily based on volatile wind power will fluctuate excessively, leading to corresponding volatility of electricity prices. Applying a ratinal expectations simulation model of competitive storage and specualtion of GCs...... the paper shows that the introduction of banking of GCs may reduce price volatility considerably and lead to increased social surplus. Banking lowers average prices and is therefore not necessarily to the benefit of 'green producers'. Prooposed price bounds on GC-prices will reduce the importance of banking...

  20. Appliance Efficiency Standards and Price Discrimination

    Energy Technology Data Exchange (ETDEWEB)

    Spurlock, Cecily Anna [Univ. of California, Berkeley, CA (United States)

    2013-05-08

    I explore the effects of two simultaneous changes in minimum energy efficiency and ENERGY STAR standards for clothes washers. Adapting the Mussa and Rosen (1978) and Ronnen (1991) second-degree price discrimination model, I demonstrate that clothes washer prices and menus adjusted to the new standards in patterns consistent with a market in which firms had been price discriminating. In particular, I show evidence of discontinuous price drops at the time the standards were imposed, driven largely by mid-low efficiency segments of the market. The price discrimination model predicts this result. On the other hand, in a perfectly competition market, prices should increase for these market segments. Additionally, new models proliferated in the highest efficiency market segment following the standard changes. Finally, I show that firms appeared to use different adaptation strategies at the two instances of the standards changing.

  1. Using Labeled Choice Experiments to Analyze Demand Structure and Market Position among Seafood Products

    DEFF Research Database (Denmark)

    Nguyen, Thong Tien; Solgaard, Hans Stubbe; Haider, Wolfgang

    2017-01-01

    Understanding market competition and consumer preferences are important first steps in developing a business. In a competitive market, effectiveness of the various elements of a firm’s marketing mix depends not only on the absolute value of each element but also on the relative values...... of the elements with respect to the firm’s position in the market. In this paper we analyze the demand structure and market positions for a variety of seafood products in the French retail market. We use a labeled choice experiment (LCE) to analyze twelve seafood species. The choice options are labeled...... and reveal that salmon and cod have the strongest market position while monkfish and pangasius have the weakest. In general, the demand for seafood is moderately sensitive to price (market elasticity of -1.31). Large and low income households, female consumers, people in the age range 35-44 years and self...

  2. Determining Price Reasonableness in Federal ESPCs

    Energy Technology Data Exchange (ETDEWEB)

    Shonder, J.A.

    2005-03-08

    This document reports the findings and implementation recommendations of the Price Reasonableness Working Group to the Federal ESPC Steering Committee. The working group was formed to address concerns of agencies and oversight organizations related to pricing and fair and reasonable price determination in federal energy savings performance contracts (ESPCs). This report comprises the working group's recommendations and is the proposed draft of a training curriculum on fair and reasonable price determination for users of federal ESPCs. The report includes: (1) A review of federal regulations applicable to determining price reasonableness of federal ESPCs (section 2), (2) Brief descriptions of the techniques described in Federal Acquisition Regulations (FAR) 15.404-1 and their applicability to ESPCs (section 3), and (3) Recommended strategies and procedures for cost-effectively completing price reasonableness determinations (sections 4). Agencies have struggled with fair and reasonable price determinations in their ESPCs primarily because this alternative financing vehicle is relatively new and relatively rare in the federal sector. The methods of determining price reasonableness most familiar to federal contracting officers (price competition based on the government's design and specifications, in particular) are generally not applicable to ESPCs. The regulatory requirements for determining price reasonableness in federal ESPCs have also been misunderstood, as federal procurement professionals who are inexperienced with ESPCs are further confused by multiple directives, including Executive Order 13123, which stresses life-cycle cost-effectiveness. Uncertainty about applicable regulations and inconsistent practice and documentation among agencies have fueled claims that price reasonableness determinations have not been sufficiently rigorous in federal ESPCs or that the prices paid in ESPCs are generally higher than the prices paid for similar goods and

  3. Political Competition and Polarization

    DEFF Research Database (Denmark)

    Schultz, Christian

    This paper considers political competition and the consequences of political polarization when parties are better informed about how the economy functions than voters are. Specifically, parties know the cost producing a public good, voters do not. An incumbent's choice of policy acts like a signal...... for costs before an upcoming election. It is shown that the more polarized the political parties the more distorted the incumbent's policy choice....

  4. Alaska North Slope crude oil price and the behavior of diesel prices in California

    Energy Technology Data Exchange (ETDEWEB)

    Adrangi, B.; Chatrath, A. [School of Business Administration, University of Portland, 5000 N. Willamette Blvd., 97203 Portland, OR (United States); Raffiee, K. [Department of Economics, College of Business Administration, 89557 Reno, NV (United States); Ripple, R. [Faculty of Business, School of Finance and Business Economics, Edith Cowan University, 100 Joondalup Drive, Western Australia 6027 Joondalup (Australia)

    2001-01-01

    In this paper we analyze the price dynamics of Alaska North Slope crude oil and L.A. diesel fuel prices. We employ VAR methodology and bivariate GARCH model to show that there is a strong evidence of a uni-directional causal relationship between the two prices. The L.A. diesel market is found to bear the majority of the burden of convergence when there is a price spread. This finding may be seen as being consistent with the general consensus that price discovery emanates from the larger, more liquid market where trading volume is concentrated. The contestability of the West Coast crude oil market tends to cause it to react relatively competitively, while the lack of contestability for the West Coast diesel market tends to limit its competitiveness, causing price adjustment to be slow but to follow the price signals of crude oil. Our findings also suggest that the derived demand theory of input pricing may not hold in this case. The Alaska North Slope crude oil price is the driving force in changes of L.A. diesel price.

  5. Pricing Strategies under Emissions Trading - an experimental analysis

    Energy Technology Data Exchange (ETDEWEB)

    Wraake, Markus; Myers, Erica; Mandell, Svante; Holt, Charles; Burtraw, Dallas

    2008-10-15

    An important feature in the design of an emissions trading program is how emission allowances are initially distributed into the market. The choice between an auction and free allocation should, according to economic theory, not have any influence on the firms' production choices nor on consumer prices. However, many observers are still incredulous that firms should be expected to raise product prices to include the value of emissions allowances they receive for free. Throughout much of Europe and the U.S., energy markets have been deregulated or are in the process of moving toward market liberalization. If market behavior does not conform to predictions of behavior in a competitive market, this may say a great deal about the nature of market liberalization in energy markets as well as about the behavior of environmental markets. If firms are able to voluntarily moderate commodity prices to be below competitive levels, it suggests an ability of these entities to exercise market power or collude - even if this is motivated by a desire to hold back and not pass through the value of emissions allowances in product prices. This paper reports on the use of experimental methods to investigate behavior with respect to how prices will be determined under a cap-and-trade program. We find participants in the experiments employ various approaches. Some participants initially recognize the opportunity cost of emission allowances and included them in their economic choices regardless of how the allowances have been obtained, and other subjects initially do not. However, given a simple economic setting in which payoffs depend on this behavior, we find that subjects learn to consider the value of allowances and overall behavior moves toward that predicted by economic theory. The observations from the experiments may help to understand the ongoing public debate over the interaction of the EU ETS and energy markets. Emission allowance markets are a new phenomenon to many

  6. Strategic thinking on improving the environmental competitiveness of Chinese enterprises

    Institute of Scientific and Technical Information of China (English)

    Ni Wufan

    2006-01-01

    Environmental competitiveness, price competitiveness and non-price competitiveness make up the undivided vital part of product's competitiveness. Environmental competitiveness can not only help improve the enterprise's key competitiveness directlv, but also strengthen it indirectly by improving the products 'price competitiveness and non-price competitiveness effectively. Instead of being confined to the product itself, there are several elements that can determine and influence the product's environmental competitiveness, including the manufacturing process, the management of enterprises, the life circle of the products, etc. Measuring these elements by setting "environmental suitable degree ", and building up the echelon model to evaluate the environmental competitiveness can help us see about the standard of the enterprises' environmental competitiveness. Though many of the national enterprises have price competitiveness to some extend, restricted by all kinds of elements like systems, techniques, policy, the enterprises are weak in environmental competitiveness. Beginning with systems redesign, carrying out the sustainable development, strengthening inner enterprises management, making more efforts on technique innovation, and widely publicizing and teaching the ecological concept, Chinese national enterprises can improve their environmental competitiveness and improve their key competitiveness.

  7. PRICING STRATEGY IN THE INDONESIAN CONSTRUCTION INDUSTRY

    Directory of Open Access Journals (Sweden)

    Krishna Mochtar

    2002-01-01

    Full Text Available Issues related to pricing strategy in the Indonesian construction industry are covered%2C including problems of current pricing strategy in construction%2C exploration of pricing strategies with a market-based approach%2C and survey findings of the top Indonesian contractors regarding their current pricing practices and the applicability of market-based pricing strategy models developed by Mochtar and Arditi. Comparisons with similar survey findings of the top U.S. contractors are conducted whenever possible. In conclusion%2C the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings%3B indeed%2C in setting the markup%2C most contractors rely on subjective assessment of the competition. Using simulated bidding scenarios%2C it is discovered that Indonesian contractors tend to be more market-based as they know more about the owner%5C%27s characteristics%2C competitors%5C%27 characteristics%2C and market demand. Consequently%2C the implementation of bidding procedure proposed by Mochtar and Arditi is supported. To maximize the benefits of market-based pricing strategies%2C the bidding procedure change should be explored by all parties involved in the Indonesian construction industry. Abstract in Bahasa Indonesia : Cost-based+pricing%2C+market-based+pricing%2C+pricing+variables%2C+bidding+procedure.

  8. Simulated Models Suggest That Price per Calorie Is the Dominant Price Metric That Low-Income Individuals Use for Food Decision Making.

    Science.gov (United States)

    Beheshti, Rahmatollah; Igusa, Takeru; Jones-Smith, Jessica

    2016-11-01

    The price of food has long been considered one of the major factors that affects food choices. However, the price metric (e.g., the price of food per calorie or the price of food per gram) that individuals predominantly use when making food choices is unclear. Understanding which price metric is used is especially important for studying individuals with severe budget constraints because food price then becomes even more important in food choice. We assessed which price metric is used by low-income individuals in deciding what to eat. With the use of data from NHANES and the USDA Food and Nutrient Database for Dietary Studies, we created an agent-based model that simulated an environment representing the US population, wherein individuals were modeled as agents with a specific weight, age, and income. In our model, agents made dietary food choices while meeting their budget limits with the use of 1 of 3 different metrics for decision making: energy cost (price per calorie), unit price (price per gram), and serving price (price per serving). The food consumption patterns generated by our model were compared to 3 independent data sets. The food choice behaviors observed in 2 of the data sets were found to be closest to the simulated dietary patterns generated by the price per calorie metric. The behaviors observed in the third data set were equidistant from the patterns generated by price per calorie and price per serving metrics, whereas results generated by the price per gram metric were further away. Our simulations suggest that dietary food choice based on price per calorie best matches actual consumption patterns and may therefore be the most salient price metric for low-income populations. © 2016 American Society for Nutrition.

  9. Tradeoffs between Price and Quality: How a Value Index Affects Preference Formation.

    Science.gov (United States)

    Creyer, Elizabeth H.; Ross, William T., Jr.

    1997-01-01

    Some of a group of 143 consumers were given a choice between higher-priced, higher-quality items and items with lower price and quality but higher value index (benefit/cost tradeoff); others were given price and quality information only. Consumers were more likely to choose lower-priced, higher-value options when the index information was…

  10. A Method of the Benchmarks Selection Based on the Choice Preference of Competitive Strategies%基于企业竞争战略选择偏好的标杆筛选方法

    Institute of Scientific and Technical Information of China (English)

    葛虹; 张艳霞

    2013-01-01

    This study uses self-organizing map to identify potential benchmarks based on the similarity of input use.The supper DEA efficiencies are used to identify the industry leaders.Different from other researches,the appropriate target is finally determined based not only on the DEA efficiency scores but also on the choice preference of competitive strategies such as cost leadership,product differentiation and focus strategy for the decision making units.An empirical study on 50 Chinese banks with 2011 Annual Report data shows that the proposed method is very practical in selection of competitive strategies-oriented benchmarks for inefficient units.%通过企业生产性投入的相似性程度来确认标杆的可追赶性,利用自组织映射图来对企业的相似性进行划分;通过与同类企业的DEA超效率比较来确认标杆的超前性.根据企业对成本领先战略、差异化战略以及集中化竞争战略的选择偏好,筛选出有利于企业未来发展的标杆企业.利用我国50家银行2011年年报数据进行实证分析的结论表明:新方法能为企业提供具有战略导向的标杆选择方案.

  11. A Empirical Research on the Price Competition of Cheap Hotels in Nanjing——Statistical Analysis Based on Data from the Ctrip.com Website%南京经济型酒店旅游淡季价格竞争实证研究——基于携程网数据的统计分析

    Institute of Scientific and Technical Information of China (English)

    唐继刚

    2012-01-01

    The results of statistical analysis show that room rates of cheap hotels in Nanjing have a great dif-ference in the off-season.Competitive strategy and location of enterprises are main factors that lead to price dif-ference.The impact of brand type of cheap hotels on room rates is not significant.Because price competition strategy and non-price competition strategy coexist,room rates of cheap hotels in Nanjing polarize the high and low.The impact of location of cheap hotels on room rates is mirror,but it is statistically significant.Convenient public transport of Nanjing City may be the cause of this fact.%统计分析结果表明,在旅游淡季,南京市经济型酒店客房价格相差悬殊。企业竞争策略、地段是导致客房价格差异的主要因素。酒店品牌类型对客房价格没有显著影响。非价格竞争策略、价格竞争策略并存使南京市经济型酒店客房价格呈现高、低两级分化。经济型酒店所处地段对其客房价格的影响在统计上是显著的,但影响程度较小,其中的原因可能是南京市公共交通比较便捷。

  12. Aspects of Price Discrimination in the Monopoly

    Directory of Open Access Journals (Sweden)

    Catalin Angelo Ioan

    2012-06-01

    Full Text Available The analysis allowed the determination in general of the consumer’s surplus or of the manufacturer’s surpluss in the case of monopoly and the determination of the allocative inefficiency in relation to the situation of perfect competition. Also, we broached the price discrimination of third order, analyzing, in terms of goods elasticities, the opportunity to separate prices in the conditions of differences existing between groups of firms.

  13. OPEC behavior and world oil prices

    Energy Technology Data Exchange (ETDEWEB)

    Griffin, J.M.; Teece, D.J.

    1986-01-01

    This book addresses the economics of exhaustible resources under monopoly and competition. The conventional wisdom - that oil prices, after hesitation in the early 80's will move upward faster than world inflation - is questioned along with the models supporting these predictions. The prospect that world oil prices may collapse in the near future is treated as a definite possibility. The findings are optimistic for consumers and should serve to reorient energy policy.

  14. Price-predicting ability of farm managers : empirical findings with flower producers in the Netherlands

    NARCIS (Netherlands)

    Trip, G.; Huirne, R.B.M.; Renkema, J.A.

    2000-01-01

    Differences in income among horticultural growers producing under similar conditions are known to be substantial. Production policy, including cultivar choice, plays an important role. Both price variation over time and price differences among cultivars provide valuable management information to gro

  15. TOURISM MARKET: PRICING ISSUES

    Directory of Open Access Journals (Sweden)

    Irina A. Kiseleva

    2016-01-01

    Full Text Available The article is devoted to the actual topic of our time - the development of tourism services. The development of tourism is the leading technology trend dynamics maroon economic caused social restructuring of modern society. Macroeconomic Financial Statistics conrms the minimum amplitude of cyclical uctuations in the service sector, which turns it into countercyclical tool. In the Russian Federation the economic problem of a state policy in the sphere of tourist services is defined - to having turned tourism in competitive, innovative, countercyclical, and highly protable sector of national business. In article pricing factors are dened and are dened key of them, responsible for the cost of a tourist product. This work answers such questions of travel company as: denition of optimum group, formation of a transport tariff, structure of a tourist product on the main and accompanying services and their range, ways of sale. A practical advice by calculation of expenses is given. Correlation and regression and cluster analyses acted as research tools when performing work. In article the conclusion is drawn that the main methods of marketing management of pricing in the market of tourist services are: transition to the unified technology of granting a service on the basis of ISO; intensication and integration of the sphere of production and services

  16. Excessive prices as abuse of dominance?

    DEFF Research Database (Denmark)

    la Cour, Lisbeth; Møllgaard, Peter

    2007-01-01

    In previous research, we found that the sole Danish producer of cement holds a dominant position in the Danish market for (grey) cement. We are able to identify an inelastic long-run demand relation that would seem to permit the exercise of market power. We aim to establish whether the dominant...... firm abused its position by charging excessive prices. We also test whether tightening of the Danish competition act has altered the pricing behaviour on the market. We discuss our results in the light of a Danish competition case against the dominant cement producer that was abandoned by the authority...

  17. Competition between health maintenance organizations and nonintegrated health insurance companies in health insurance markets.

    Science.gov (United States)

    Baranes, Edmond; Bardey, David

    2015-12-01

    This article examines a model of competition between two types of health insurer: Health Maintenance Organizations (HMOs) and nonintegrated insurers. HMOs vertically integrate health care providers and pay them at a competitive price, while nonintegrated health insurers work as indemnity plans and pay the health care providers freely chosen by policyholders at a wholesale price. Such difference is referred to as an input price effect which, at first glance, favors HMOs. Moreover, we assume that policyholders place a positive value on the provider diversity supplied by their health insurance plan and that this value increases with the probability of disease. Due to the restricted choice of health care providers in HMOs a risk segmentation occurs: policyholders who choose nonintegrated health insurers are characterized by higher risk, which also tends to favor HMOs. Our equilibrium analysis reveals that the equilibrium allocation only depends on the number of HMOs in the case of exclusivity contracts between HMOs and providers. Surprisingly, our model shows that the interplay between risk segmentation and input price effects may generate ambiguous results. More precisely, we reveal that vertical integration in health insurance markets may decrease health insurers' premiums.

  18. Evolutionary Model of Cleaner Production Technologies under Product Competition and Consumer Choice%产品竞争与顾客选择下的清洁生产技术演化模型

    Institute of Scientific and Technical Information of China (English)

    刘小峰; 盛昭瀚; 杜建国

    2013-01-01

    It is difficult to practically apply clean production technologies , which is considered as an important way of sustainable development.Adopting the method of computational experiments to study the impact of product competition and consumer choice on the evolution of cleaner production technologies , the study focuses on the cleaner production technologies of products with con-stant returns to scale.And this study sets rules of adaptive behaviors of producers and consumers , product trading and technology selection to build the model of the evolution of cleaner production technologies under product competition and consumer choice . We also explore issues such as system diversity , evolution, agent behavior and initial sensitivity in different scenarios by the method of multi-agent simulation on computer.The results shows that: ①diversity of system evolution is obvious and evolution trajectories reveal that being overly dependent on free competition of market cannot ensure the improvement of product quality and environment level;and ②too much introduction of cleaner production technologies tends to damage the benefits of traditional technology adaptors.The computational experiment results also indicate that the customer′s consumer behavior preferences influ-ence technology evolution system .It is very difficult for products of traditional technology to enter to a mature market with high environmental protection consciousness , while cleaner products have opportunities to obtain certain market share in a market with less environmental protection consciousness .%清洁生产技术是可持续发展的重要途径,却难以在实践中推广。采用计算实验方法研究产品竞争和顾客选择对清洁生产技术演化的影响,聚焦规模报酬不变型产品的清洁生产技术,设定生产者和消费者的适应性规则、产品交易和技术选择规则,构建产品竞争与顾客选择下的清洁生产技术演化模型。通过多主

  19. Pricing the Innovation for Market Introduction

    Directory of Open Access Journals (Sweden)

    Dănut Tiberius Epure

    2006-10-01

    Full Text Available 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 rivalry. Pricing strategy signals the product’s value to potential buyers, but buyer education remains the key to sales growth.

  20. Consumer poaching, brand switching, and price transparency

    DEFF Research Database (Denmark)

    Schultz, Christian

    2014-01-01

    This paper addresses price transparency on the consumer side in markets with behavioral price discrimination which feature welfare reducing brand switching. When long-term contracts are not available, an increase in transparency intensifies competition, lowers prices and profits, reduces brand...... switching and benefits consumers and welfare. With long-term contracts, an increase in transparency reduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise, the results are the same as without long-term contracts....

  1. Natural gas pricing: concepts and international overview

    Energy Technology Data Exchange (ETDEWEB)

    Gorodicht, Daniel Monnerat [Gas Energy, Rio de Janeiro, RJ (Brazil); Veloso, Luciano de Gusmao; Fidelis, Marco Antonio Barbosa; Mathias, Melissa Cristina Pinto Pires [Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis (ANP), Rio de Janeiro, RJ (Brazil)

    2012-07-01

    The core of this article is a critical analysis of different forms of pricing of natural gas existing in the world today. This paper is to describe the various scenarios of natural gas price formation models. Along the paper, the context is emphasized by considering their cases of applications and their results. Today, basically, there are three main groups of models for natural gas pricing: i) competition gas-on-gas, i.e., a liberalized natural gas market, II) gas indexed to oil prices or its products and III) bilateral monopolies and regulated prices. All the three groups of models have relevant application worldwide. Moreover, those are under dynamic influence of economic, technological and sociopolitical factors which bring complexity to the many existing scenarios. However, at first this paper builds a critical analysis of the international current situation of natural gas today and its economic relevance. (author)

  2. Pricing strategies and levels and their impact on corporate profitability

    Directory of Open Access Journals (Sweden)

    Deonir De Toni

    Full Text Available Abstract Price policy definition is one of the most important decisions in management as it affects corporate profitability and market competitiveness. Despite the importance that prices take in organizations, it appears that this element has not received proper attention by many academics and marketers since it represents, according to estimates, less than 2% of the papers on leading journals in the field. Thus, the aim of this study was to propose and test a theoretical model showing the impacts of pricing policy on corporate profitability. To this end, 150 companies in the metal-mechanic sector situated in the Northeast of Rio Grande do Sul State, Brazil were studied, integrating customer value-based pricing strategies, competition-based pricing strategies and cost-based pricing strategies with price levels (high and low and performance with respect to profitability. The results indicate that the profitability of the surveyed companies is positively affected by value-based pricing strategy and high price levels while it is negatively affected by low price levels. Such findings indicate that pricing policies influence the profitability of organizations and therefore, a more strategic look at the pricing process may constitute one aspect that cannot be overlooked by managers.

  3. Three studies of retail gasoline pricing dynamics

    Science.gov (United States)

    Atkinson, Benjamin James

    In many Canadian cities, retail gasoline prices appear to cycle, rising by large amounts in one or two days followed by several days of small consecutive price decreases. While many empirical studies examine such markets, certain questions cannot b e properly answered without high frequency, station-specific price data for an entire market. Thus, the first paper in this thesis uses bi-hourly price data collected for 27 stations in Guelph, Ontario, eight tunes per day for 103 days to examine several basic predictions of the Edgeworth cycle theory. The results are largely consistent with this theory. However, most independent firms do not tend to undercut their rivals' prices, contrary to previous findings. Furthermore, the tuning, sizes and leaders of price increases appear to be very predictable, and a specific pattern of price movements has been detected on days when prices increase. These findings suggest that leading a price increase might not be as risky as one may expect. The second paper uses these same data to examine the implications o f an informal theory of competitive gasoline pricing, as advanced by industry and government. Consistent with this theory, stations do tend to set prices to match (or set a small positive or negative differential with) a small number of other stations, which are not necessarily the closest stations. Also, while retailers frequently respond to price changes within two hours, many take considerably longer to respond than is predicted by the theory. Finally, while price decreases do ripple across the market like falling dominos, increases appear to propagate based more on geographic location and source of price control than proximity to the leaders. The third paper uses both these data and Guelph price data collected every 12 hours during the same 103 days from OntarioGasPrices.com to examine the sample selection biases that might exist in such Internet price data, as well as their implications for empirical research. It is

  4. The Weird Vegetable Price

    Institute of Scientific and Technical Information of China (English)

    2011-01-01

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

  5. Stuck in a Price War?

    DEFF Research Database (Denmark)

    Poulsen, Søren Bolvig; Knutzen, Rikke; Christiansen, Lotte

    2010-01-01

    The objective of this article is to illustrate how a service can develop into an important differentiator as strategic and competitive element for medium-sized companies in B2B relations. Within the building material sector the main competition is on price – the cheaper you can provide a product...... the more competitive you are. This is a natural business factor and the case for many industries. This situation, however, has proven to retain companies marked positions as the larger companies have the advantages of purchasing with remarkable discounts due to the considerable amount of products, which...... sized supplier is through differentiating from its competitors. Service design holds a great potential as a strategic element under such circumstances, however there are two major challenges to confront. Firstly, in the design of the front stage there is the challenge of economy. The cost of the service...

  6. 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... advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent butterfat, component prices, and advanced pricing factors shall be as follows. The prices and pricing factors...

  7. Pricing products: juxtaposing affordability with quality appeal.

    Science.gov (United States)

    1984-01-01

    Choosing appropriate product prices is 1 of the most crucial steps in creating an effective contraceptive social marketing (CSM) sales campaign. The Social Marketing Forum conducted an informal survey of social marketing project managers, international contractors, and marketing consultants to determine how CSM programs cope with pricing problems and ways to circumvent some obstacles. According to Diana Altman, a family planning consultant, low prices that make products available to needy individuals are more important than the program's self sufficiency, yet if prices are too low, consumers think the products were unusable in the US and thus were dumped on local markets. Other key factors include commercial competition, spiraling inflation rates, and problems with rising prices and retailer/distributor margins. A sampling of per capita gross national products indicates the poverty level of most CSM projects' target market. Consequently, CSM projects must set low pices, regardless of program operating costs. The goal often is to increase the demand and availability for contraceptives. The fact that social marketing products must pass through retail networks to reach consumers complicates the pricing equation. To deal with the problem, India's Nirodh program gives a 25% margin to distributors/wholesalers, compared to 6% offered on most other goods. Retailers also receive a 25% margin, more than double the commercial rate. Once prices are set, increases pose hazards. Local government approval often is a prerequisite and can require lengthy negotiations. Market studies remain a valuable approach to effective pricing, according to PNA's Mallamad and other research consultants. They cite such effective research strategies as test marketing products and asking consumers how prices affect buying habits. Further, CSM projects can jump over some pricing hurdles through creative marketing. An effective pricing strategy alone cannot produce a successful CSM program. Pricing

  8. 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...

  9. Untangling healthcare competition.

    Science.gov (United States)

    Harris, I C; McDaniel, R R

    1993-11-01

    Traditional approaches to competition may be inappropriate for healthcare providers. Neoclassical economics makes the implicit assumption that a single actor embodies consumption, compensation, and benefit from a transaction. In healthcare, this assumption does not hold. Instead, such actions are accomplished by three separate actors--consumers (physicians), customers (third-party payers), and clients (patients). A hospital simultaneously competes in three arenas. Hospitals compete for physicians along a technological dimension. Competition for third-party payers takes on a financial dimension. Hospitals compete for patients along a marketing dimension. Because of the complex marketplace interactions among hospital, patient, physician, and third-party payer, the role of price in controlling behavior is difficult to establish. The dynamics underlying the hospital selection decision--that is, the decision maker's expectations of services and the convenience of accessing services--must also be considered. Healthcare managers must understand the interrelationships involved in the three-pronged competitive perspective for several reasons. This perspective clarifies the multiple facets of competition a hospital faces. It also disentangles the actions previously fulfilled by the traditional single buyer. It illuminates the critical skills underlying the competition for each audience. Finally, it defines the primary criterion each audience uses in sorting among hospitals. Recognition of the multifaceted nature of competition among healthcare providers will help demystify market behavior and thereby improve internal organizational communication systems, managers' ability to focus on appropriate activities, and the hospital's ability to adapt to changing market conditions.

  10. Defense Contracts: DOD’s Requests for Information from Contractors to Assess Prices

    Science.gov (United States)

    2015-08-01

    reasonableness of prices including reviewing prices paid previously for the same item, market research, or, under certain conditions, an analysis of cost ...unless an exception applies.4 Exceptions to submitting certified cost or pricing data include contracts • based on adequate price competition...Rate Proposal, information from the technical evaluator, and market research.10 • The Navy requested contractor cost data and pricing information for a

  11. The Effects of Price Promotions on Consumers's Perceived Value and Purchase Intention

    OpenAIRE

    Hsu, Yung-Fen

    2008-01-01

    Price promotions are widely used to increase sales in today's competitive markets; however, the negative effects may result if they are not properly applied. Hence, this paper seeks to explore how price promotions affect consumers'perceived value and purchase intention so as to assist marketers to maximize the benefits and minimize the weakness of price promotion activities. This paper will provide a systematic overview of price promotion issues such as reference prices, semantic cues and per...

  12. The Physics of Traffic Congestion and Road Pricing in Transportation Planning

    Science.gov (United States)

    Levinson, David

    2010-03-01

    This presentation develops congestion theory and congestion pricing theory from its micro- foundations, the interaction of two or more vehicles. Using game theory, with a two- player game it is shown that the emergence of congestion depends on the players' relative valuations of early arrival, late arrival, and journey delay. Congestion pricing can be used as a cooperation mechanism to minimize total costs (if returned to the players). The analysis is then extended to the case of the three- player game, which illustrates congestion as a negative externality imposed on players who do not themselves contribute to it. A multi-agent model of travelers competing to utilize a roadway in time and space is presented. To realize the spillover effect among travelers, N-player games are constructed in which the strategy set includes N+1 strategies. We solve the N-player game (for N = 7) and find Nash equilibria if they exist. This model is compared to the bottleneck model. The results of numerical simulation show that the two models yield identical results in terms of lowest total costs and marginal costs when a social optimum exists. Moving from temporal dynamics to spatial complexity, using consistent agent- based techniques, we model the decision-making processes of users and infrastructure owner/operators to explore the welfare consequence of price competition, capacity choice, and product differentiation on congested transportation networks. Component models include: (1) An agent-based travel demand model wherein each traveler has learning capabilities and unique characteristics (e.g. value of time); (2) Econometric facility provision cost models; and (3) Representations of road authorities making pricing and capacity decisions. Different from small-network equilibrium models in prior literature, this agent- based model is applicable to pricing and investment analyses on large complex networks. The subsequent economic analysis focuses on the source, evolution

  13. Toward a new spacecraft optimal design lifetime? Impact of marginal cost of durability and reduced launch price

    Science.gov (United States)

    Snelgrove, Kailah B.; Saleh, Joseph Homer

    2016-10-01

    The average design lifetime of satellites continues to increase, in part due to the expectation that the satellite cost per operational day decreases monotonically with increased design lifetime. In this work, we challenge this expectation by revisiting the durability choice problem for spacecraft in the face of reduced launch price and under various cost of durability models. We first provide a brief overview of the economic thought on durability and highlight its limitations as they pertain to our problem (e.g., the assumption of zero marginal cost of durability). We then investigate the merging influence of spacecraft cost of durability and launch price, and we identify conditions that give rise cost-optimal design lifetimes that are shorter than the longest lifetime technically achievable. For example, we find that high costs of durability favor short design lifetimes, and that under these conditions the optimal choice is relatively robust to reduction in launch prices. By contrast, lower costs of durability favor longer design lifetimes, and the optimal choice is highly sensitive to reduction in launch price. In both cases, reduction in launch prices translates into reduction of the optimal design lifetime. Our results identify a number of situations for which satellite operators would be better served by spacecraft with shorter design lifetimes. Beyond cost issues and repeat purchases, other implications of long design lifetime include the increased risk of technological slowdown given the lower frequency of purchases and technology refresh, and the increased risk for satellite operators that the spacecraft will be technologically obsolete before the end of its life (with the corollary of loss of value and competitive advantage). We conclude with the recommendation that, should pressure to extend spacecraft design lifetime continue, satellite manufacturers should explore opportunities to lease their spacecraft to operators, or to take a stake in the ownership

  14. ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING

    Directory of Open Access Journals (Sweden)

    TÜNDE VERES

    2011-01-01

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

  15. Does market competition explain fairness?

    Science.gov (United States)

    Descioli, Peter

    2013-02-01

    The target article by Baumard et al. uses their previous model of bargaining with outside options to explain fairness and other features of human sociality. This theory implies that fairness judgments are determined by supply and demand but humans often perceive prices (divisions of surplus) in competitive markets to be unfair.

  16. Preliminary Assessment of Spatial Competition in the Market for E85: Presentation Supplement

    Energy Technology Data Exchange (ETDEWEB)

    Clinton, Bentley [National Renewable Energy Lab. (NREL), Golden, CO (United States); Johnson, Caley [National Renewable Energy Lab. (NREL), Golden, CO (United States); Moriarty, Kristi [National Renewable Energy Lab. (NREL), Golden, CO (United States); Newes, Emily [National Renewable Energy Lab. (NREL), Golden, CO (United States); Vimmerstedt, Laura [National Renewable Energy Lab. (NREL), Golden, CO (United States)

    2017-02-01

    Anecdotal evidence suggests retail E85 prices may track retail gasoline prices rather than wholesale costs. This indicates E85 prices may be higher than they would be if priced on a cost basis hence limiting adoption by some price-sensitive consumers. Using publicly available and proprietary E85 and regular gasoline price data, we examine pricing behavior in the market for E85. Specifically, we assess the extent to which local retail competition in E85 markets decreases E85 retail prices. Results of econometric analysis suggest that higher levels of retail competition (measured in terms of station density) are associated with lower E85 prices at the pump. While more precise causal estimates may be produced from more comprehensive data, this study is the first to our knowledge that estimates the spatial competition dimension of E85 pricing behavior by firms. This technical report elaborates on a related presentation.

  17. Preliminary Assessment of Spatial Competition in the Market for E85

    Energy Technology Data Exchange (ETDEWEB)

    Clinton, Bentley [National Renewable Energy Lab. (NREL), Golden, CO (United States)

    2017-02-01

    Anecdotal evidence suggests retail E85 prices may track retail gasoline prices rather than wholesale costs. This indicates E85 prices may be higher than they would be if priced on a cost basis hence limiting adoption by some price-sensitive consumers. Using publicly available and proprietary E83 and regular gasoline price data, we examine pricing behavior in the market for E85. Specifically, we assess the extent to which local retail competition in E85 markets decreases E85 retail prices. Results of econometric analysis suggest that higher levels of retail competition (measured in terms of station density) are associated with lower E85 prices at the pump. While more precise causal estimates may be produced from more comprehensive data, this study is the first to our knowledge that estimates the spatial competition dimension of E85 pricing behavior by firms. This is an initial presentation; a related technical report is also available.

  18. Marketing research model of competitive environment

    Directory of Open Access Journals (Sweden)

    Krasilya Dmitriy

    2015-11-01

    Full Text Available To support its competitive advantages in current market conditions, each company needs to choose better ways of guaranteeing its favorable competitive position. In this regard, considerable interest lies in the structuring and algorithmization of marketing research processes that provide the information background of such choice. The article is devoted to modeling the process of marketing research of competitive environment.

  19. Marginal pricing of transmission services. An analysis of cost recovery

    Energy Technology Data Exchange (ETDEWEB)

    Perez-Arriaga, I.J.., Rubio, F.J. [Instituto de Investigacion Technologica, Universidad Pontificia Comillas, Madrid (Spain); Puerta, J.F.; Arceluz, J.; Marin, J. [Unidad de Planificacion Estrategica, Iberdrola, Madrid (Spain)

    1996-12-31

    The authors present an in-depth analysis of network revenues that are computed with marginal pricing, and investigate the reasons why marginal prices in actual power systems fail to recover total incurred network costs. The major causes of the failure are identified and illustrated with numerical examples. The paper analyzes the regulatory implications of marginal network pricing in the context of competitive electricity markets and provides suggestions for the meaningful allocation of network costs among users. 5 figs., 9 tabs., 8 refs.

  20. Price Transmission in the Cocoa-Chocolate Chain

    OpenAIRE

    Catherine ARAUJO BONJEAN; Brun, Jean-François

    2011-01-01

    Etudes & documents; There is a common perception among consumers that the retail prices respond faster to an increase in the price of raw material than to a decrease. This paper aims at testing the existence of such asymmetric price transmission in the cocoa-chocolate chain on the French market. Two types of asymmetry are suspected: asymmetry in the transmission of positive and negative shocks that may reflect non-competitive behaviour in the chocolate industry and asymmetry in the transmissi...

  1. Natural gas contracts in an emerging competitive market

    Energy Technology Data Exchange (ETDEWEB)

    Sutherland, R.J.

    1992-11-01

    Natural gas is being viewed by many as the fuel of the 1990s and beyond because of its environmental qualities, relatively low cost and significant domestic resource base. However, in the Fall of 1991, a group of electric utility executives met with then Deputy Secretary of Energy Henson Moore and asserted that an inability to obtain long term gas contracts meant that supplies are unreliable and construction of gas-fueled generating stations is being discouraged. This study was requested by the Deputy Secretary to address the issues surrounding long-term gas contracts and supply reliability. The relationship between supply reliability and contracts is explained in terms of the number of buyers and sellers in a market. With the appropriate state regulatory policies, utilities can contract for gas and obtain reliable supplies at competitive market prices. Public utility commissioners are encouraged to permit utilities a free choice in signing gas contracts, but to allow only competitive market prices to be reflected in allowable fuel costs.

  2. Natural gas contracts in an emerging competitive market

    Energy Technology Data Exchange (ETDEWEB)

    Sutherland, R.J.

    1992-01-01

    Natural gas is being viewed by many as the fuel of the 1990s and beyond because of its environmental qualities, relatively low cost and significant domestic resource base. However, in the Fall of 1991, a group of electric utility executives met with then Deputy Secretary of Energy Henson Moore and asserted that an inability to obtain long term gas contracts meant that supplies are unreliable and construction of gas-fueled generating stations is being discouraged. This study was requested by the Deputy Secretary to address the issues surrounding long-term gas contracts and supply reliability. The relationship between supply reliability and contracts is explained in terms of the number of buyers and sellers in a market. With the appropriate state regulatory policies, utilities can contract for gas and obtain reliable supplies at competitive market prices. Public utility commissioners are encouraged to permit utilities a free choice in signing gas contracts, but to allow only competitive market prices to be reflected in allowable fuel costs.

  3. Biosimilar competition in the United States: statutory incentives, payers, and pharmacy benefit managers.

    Science.gov (United States)

    Falit, Benjamin P; Singh, Surya C; Brennan, Troyen A

    2015-02-01

    Widespread adoption of generic medications, made possible by the Hatch-Waxman Act of 1984, has contained the cost of small-molecule drugs in the United States. Biologics, however, have yet to face competition from follow-on products and represent the fastest-growing sector of the US pharmaceutical market. We compare the legislative framework governing small-molecule generics to that which regulates follow-on biologics, and we examine management tools that are likely to be most successful in promoting biosimilars' adoption. The Biologics Price Competition and Innovation Act established an abbreviated pathway for follow-on biologics, but weak statutory incentives create barriers to entry. Many authors have raised concerns that competition under the biologics act may be weaker than that posed by small-molecule generics under Hatch-Waxman, in part because of legislative choices such as the absence of market exclusivity for the first biosimilar approved and a requirement that follow-on manufacturers disclose their manufacturing processes to the manufacturer of the reference product. Provider skepticism and limited competition from biosimilars will challenge payers and pharmacy benefit managers to reduce prices and maximize uptake of follow-on biologics. Successful payers and pharmacy benefit managers will employ various strategies, including tiered formularies and innovative fee schedules, that can control spending by promoting uptake of biosimilars across both the pharmacy and medical benefits. Project HOPE—The People-to-People Health Foundation, Inc.

  4. Pareto Improving Price Regulation when the Asset Market is Incomplete

    NARCIS (Netherlands)

    Herings, P.J.J.; Polemarchakis, H.M.

    1999-01-01

    When the asset market is incomplete, competitive equilibria are constrained suboptimal, which provides a scope for pareto improving interventions. Price regulation can be such a pareto improving policy, even when the welfare effects of rationing are taken into account. An appealing aspect of price r

  5. Assorted Methods of Making of Pricing Decisions in an Enterprise

    Directory of Open Access Journals (Sweden)

    Wnorowski Henryk

    2014-08-01

    Full Text Available Decisions concerning price development are best visible in view of their direct impact on the market activities of the company and the general level of profitability. In every activity, the success is measured by an excess of sales revenue over the costs of used resources. In an ideal case, a determined price provides the highest margin resulting from an analysis of the sales volume, takes into consideration the customer's evaluation of the product/service, and allows to react to competitive threats and to fend off the competition's attacks. There is no single universal way to develop prices for various enterprise types, regardless of the conditions of demand, the specific character of the sector they operate in, or the competitive situation, even if we assume that the enterprise has only one goal of activity. That's why, Author recommends three price determination methods. The ways of price determination presented in this article are just the first step on the way to reach the optimal prices. The prices determined in such way, as well as product or service prices already functioning in the market, are subject to modification depending on the assumed goals, taking into consideration the character of demand for a given commodity and the behaviour of the competition.

  6. Successful New Product Pricing Practices: A Contingency Approach

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.; Debruyne, M.; Frambach, R.T.; Verhallen, Th.M.M.

    2003-01-01

    Abstract The purpose of this study is to examine the success of new product pricing practices and the conditions upon which success is contingent. We distinguish three different pricing practices that refer to the use of information on customer value, competition, and costs respectively. Following M

  7. Prediction of future asset prices

    Science.gov (United States)

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

    2014-12-01

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

  8. Exporter Price Premia?

    DEFF Research Database (Denmark)

    Jäkel, Ina Charlotte; Sørensen, Allan

    -cut prediction on the sign of the exporter price premium. However, the model unambiguously predicts a negative exporter price premium in terms of quality-adjusted prices, i.e. prices per unit of quality. This prediction is broadly borne out in the Danish data: while the magnitude of the premium varies across...

  9. Price strategies for sustainable food products

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.

    2015-01-01

    Purpose – Sustainable products often suffer a competitive disadvantage compared with mainstream products because they must cover ecological and social costs that their competitors leave to future generations. The purpose of this paper is to identify price strategies for sustainable products that

  10. Price strategies for sustainable food products

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.

    2015-01-01

    Purpose – Sustainable products often suffer a competitive disadvantage compared with mainstream products because they must cover ecological and social costs that their competitors leave to future generations. The purpose of this paper is to identify price strategies for sustainable products that min

  11. Regulated and unregulated Nordic retail prices

    DEFF Research Database (Denmark)

    Olsen, Ole Jess; Johnsen, Tor Arnt

    2011-01-01

    in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from...

  12. Competition in the Mashup Ecosystem

    Directory of Open Access Journals (Sweden)

    Amanda Shiga

    2011-01-01

    Full Text Available Mashups combine data from multiple sources to create innovative web applications. Data providers gain compelling advantages in offering an open application programming interface (API, but face a competitive environment where growth occurs by virtue of developers' independent choices and where competitors are also complementors. This article explores the nature of competition within the mashup ecosystem by focusing on competitive actions taken by API providers and their link to mashup network structure. The resulting insights help entrants and incumbents refine their competitive strategies within this complex and unique environment.

  13. Superiority: China Mobile in the competition

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    The market share between China Mobile and China Unicom has stabilized since 2002.It is found that China Mobile has the superiority in the competition, for example, the scissors movement between its revenue and cost indicates that it has a strong profit generating ability and there is enough room for it to reduce the price.The ratio between its price (marginal income) and marginal cost indicates that there is a very distant limit for it to reduce the price.Its demand is obviously flexible with the price, but it does not use the price weapon abundantly.The reason for the stabilization of the market is that China Mobile withdrew from the competition.

  14. 由科技创新创优质工程到优质优价的思考%Reflections from Creating High-quality Project by Technological Innovation to High Quality and Competitive Price

    Institute of Scientific and Technical Information of China (English)

    李朝阳

    2015-01-01

    科技创新是创优质工程的需要和前提,创优质工程是科技创新的动力。创建优质工程必须优质优价,本文以国内几个省份为例探讨了优质优价额度。%Technology innovation is the needs and premise to create high-quality project, and to create quality project is the driving force of technological innovation. To create high-quality project, the high quality and competitve price is necessary. This paper discusses the limit for high quality and competitve price in several provinces in China.

  15. Competition with Dynamic Spectrum Leasing

    CERN Document Server

    Duan, Lingjie; Shou, Biying

    2010-01-01

    This paper presents a comprehensive analytical study of two competitive cognitive operators' spectrum leasing and pricing strategies, taking into account operators' heterogeneity in leasing costs and users' heterogeneity in transmission power and channel conditions. We model the interactions between operators and users as a three-stage dynamic game, where operators make simultaneous spectrum leasing and pricing decisions in Stages I and II, and users make purchase decisions in Stage III. Using backward induction, we are able to completely characterize the game's equilibria. We show that both operators make the equilibrium leasing and pricing decisions based on simple threshold policies. Moreover, two operators always choose the same equilibrium price despite their difference in leasing costs. Each user receives the same signal-to-noise-ratio (SNR) at the equilibrium, and the obtained payoff is linear in its transmission power and channel gain. We also compare the duopoly equilibrium with the coordinated case ...

  16. Technology for Price Management in Industrial Differential Product Market

    Directory of Open Access Journals (Sweden)

    E. V. Orlova

    2015-01-01

    Full Text Available The article studies price behavior of oligopolies in industrial market where price competition is replaced by non-price competition. There is a developed technology for pricing management of the products of industrial enterprises, which, unlike the existing ones, takes into account the dynamics of changes in consumer preferences and changes in the pricing policy of the enterprise competitor and is based on usage of system dynamics models to simulate the financial and economic performance of enterprises and the fuzzy model for situational analysis and decisionmaking on changes in prices for the products. A pricing simulation model is offered. It is based on system-dynamic modeling method, which takes into account the complex cause-to-effect concatenation of factors on price such as product quality, cost, price competition, price elasticity of economic demand, competitors’ quantity of output and estimates the impact of changing factors of internal and external enterprise environment on the effectiveness of its activities.The simulation model allows us to conduct diverse experiments and analyze the impact of management decisions on the efficiency of the enterprise. Based on the fuzzy approach a price decision-making model is developed. It operates not only precise (numeric values, but also qualitative assessments of variables and provides an adequate use of logical relationships and the laws of the mutual influence of market and production and economic factors. Qualitative dependences, which establish the influence of external and internal factors on the price change, are identified as a result of the study of economic laws and legal conformity that are in the context of rapid economic change and market turbulence may not be strictly formalized and take the form of linguistic statements, which express the conditional relationship between the qualitative assessments of initial factors and changes in the relative price.

  17. In-Store Experimental Approach to Pricing and Consumer Behavior

    Science.gov (United States)

    Sigurdsson, Valdimar; Foxall, Gordon; Saevarsson, Hugi

    2010-01-01

    This study assessed how, and to what extent, it is possible to use behavioral experimentation and relative sales analysis to study the effects of price on consumers' brand choices in the store environment. An in-store experiment was performed in four stores to investigate the effects of different prices of a target brand on consumers' relative…

  18. Endogeneous price leadership in a duopoly: equal products, unequal technology

    NARCIS (Netherlands)

    Dastidar, K.G.; Furth, D.

    2005-01-01

    In the present paper we study endogenous price leadership in the context of a homogeneous product Bertrand duopoly model in which the firms have different, strictly convex cost functions. In such a framework it is well known that a simultaneous move price choice game does not have an equilibrium in

  19. Endogeneous price leadership in a duopoly: equal products, unequal technology

    NARCIS (Netherlands)

    K.G. Dastidar; D. Furth

    2005-01-01

    In the present paper we study endogenous price leadership in the context of a homogeneous product Bertrand duopoly model in which the firms have different, strictly convex cost functions. In such a framework it is well known that a simultaneous move price choice game does not have an equilibrium in

  20. In-Store Experimental Approach to Pricing and Consumer Behavior

    Science.gov (United States)

    Sigurdsson, Valdimar; Foxall, Gordon; Saevarsson, Hugi

    2010-01-01

    This study assessed how, and to what extent, it is possible to use behavioral experimentation and relative sales analysis to study the effects of price on consumers' brand choices in the store environment. An in-store experiment was performed in four stores to investigate the effects of different prices of a target brand on consumers' relative…

  1. Competitive Intelligence.

    Science.gov (United States)

    Bergeron, Pierrette; Hiller, Christine A.

    2002-01-01

    Reviews the evolution of competitive intelligence since 1994, including terminology and definitions and analytical techniques. Addresses the issue of ethics; explores how information technology supports the competitive intelligence process; and discusses education and training opportunities for competitive intelligence, including core competencies…

  2. Crude oil price dynamics: A study on effects of market expectation and strategic supply on price movements

    Science.gov (United States)

    Jin, Xin

    Recent years have seen dramatic fluctuations in crude oil prices. This dissertation attempts to better understand price behavior. The first chapter studies the behavior of crude oil spot and futures prices. Oil prices, particularly spot and short-term futures prices, appear to have switched from I(0) to I(1) in early 2000s. To better understand this apparent change in persistence, a factor model of oil prices is proposed, where the prices are decomposed into long-term and short-term components. The change in the persistence behavior can be explained by changes in the relative volatility of the underlying components. Fitting the model to weekly data on WTI prices, the volatility of the persistent shocks increased substantially relative to other shocks. In addition, the risk premiums in futures prices have changed their signs and become more volatile. The estimated net marginal convenience yield using the model also shows changes in its behavior. These observations suggest that a dramatic fundamental change occurred in the period from 2002 to 2004 in the dynamics of the crude oil market. The second chapter explores the short-run price-inventory dynamics in the presence of different shocks. Classical competitive storage model states that inventory decision considers both current and future market condition, and thus interacts with spot and expected future spot prices. We study competitive storage holding in an equilibrium framework, focusing on the dynamic response of price and inventory to different shocks. We show that news shock generates response profile different from traditional contemporaneous shocks in price and inventory. The model is applied to world crude oil market, where the market expectation is estimated to experience a sharp change in early 2000s, together with a persisting constrained supply relative to demand. The expectation change has limited effect on crude oil spot price though. The world oil market structure has been studied extensively but no

  3. Has the increase in the availability of generic drugs lowered the price of cardiovascular drugs in South Africa?

    Directory of Open Access Journals (Sweden)

    Varsha Bangalee

    2016-12-01

    Conclusion: Increased generic competition is not a predictor of lower drug prices. The study also concludes that the current South African pharmaceutical policies have not yet achieved the lowest prices for drugs when compared internationally.

  4. Consumer price sensitivity in Dutch health insurance

    NARCIS (Netherlands)

    M. van Dijk (Machiel); M. Pomp (Marc); R.C.H.M. Douven (Rudy); T. Laske-Aldershof (Trea); F.T. Schut (Erik); W. de Boer (Willem); A. Boo (Anne)

    2008-01-01

    textabstractAim: To estimate the price sensitivity of consumer choice of health insurance firm. Method: Using paneldata of the flows of insured betweenpairs of Dutch sickness funds during the period 1993-2002, we estimate the sensitivity of these flows to differences in insurance premium. Results:

  5. 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...

  6. 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...

  7. 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.

  8. 中国高码洋时尚期刊业的产业环境与战略选择%Analysis of Environment and the Competitive Strategy Choice of Chinese High-priced Fashion Magazine Industry

    Institute of Scientific and Technical Information of China (English)

    陈杰

    2015-01-01

    在当下新媒体飞速发展的语境之下,分析我国高码洋时尚期刊业的产业环境,并进而探讨其持续发展的竞争战略选择具有重要的现实意义.文章从波特的"五力模型"视角出发对我国高码洋时尚期刊产业环境进行分析.结果表明,当前我国高码洋时尚期刊业竞争异常激烈,同时面临替代品威胁较大、客户价格谈判能力升高等持续发展的现实困境.高码洋时尚期刊应积极实施差异化战略,构建独特的竞争优势以应对5种力量带来的挑战.

  9. Competitive Advantage, Strategic Choice and Performance Growth Model: Cross-case Study on China's High-tech Born Global Enterprises%企业竞争优势、战略选择与业绩增长模型——基于我国高科技天生全球化企业的跨案例研究

    Institute of Scientific and Technical Information of China (English)

    杨兴锐

    2012-01-01

    This paper studies the relationship between competitive advantage,strategic choice and performance growth of Chings high-tech born global enterprises through the cross-case study,and points out that the main competitive advantage of these enterprises in the early stage of de- velopment shows in the following four aspects:technological innovation, network relationship, brand reputation and informatization. And these competitive advantages determine the competitive strategies of enterprises, namely differentiation and focus, which in business level shows as technology leadership,B2B marketing model, based-ODM brand model and various types of international approach. Enterprisers competitive strategy promotes its competitive advantage,and its growth performance is the result of its competitive advantage and competitive strategy to- gether.%针对我国高科技天生全球化企业的竞争优势、战略选择与业绩增长间的关系进行了跨案例研究。指出:此类企业在发展初期的竞争优势主要表现在技术创新、网络关系、品牌声誉和信息化四个方面;这些竞争优势决定了企业采取差异化和集聚两种竞争战略,在业务层面具体表现为技术领先、以B2B营销模式为主、以ODM品牌模式为主和采用多种类型的国际化方式;企业的竞争战略反过来促进其竞争优势的提升;业绩增长是竞争优势和竞争战略共同作用的结果。

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

    NARCIS (Netherlands)

    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 lo

  11. Tracing the base: A topographic test for collusive basing-point pricing

    NARCIS (Netherlands)

    I. Bos; M.P. Schinkel

    2008-01-01

    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 lo

  12. Optimal Enterprise Decision Based on Competition of Price and Quality of PSS%产品服务系统中价格、质量竞争下的最优决策

    Institute of Scientific and Technical Information of China (English)

    韩亚娟; 谢会

    2014-01-01

    Based on the fact that , in product service systems ( PSS ) , products have dual properties of physics and service , which influences the revenue of an enterprise through pricing strategy .The demand function and revenue model are constructed by considering the three factors simultaneously .First, the problem of finding the maximum profit by determining the price , product quality level , and service quality level is analyzed and solved .Then, the influence of price sensitive factor , the product quality sensitive factor, and the service quality sensitive factor to the revenue model is discussed .The results show that an enterprise should adjust the most sensitive factors to obtain the maximum benefit .%针对产品服务系统具有实物产品和服务的双重属性,并与价格一起影响企业收益的问题,建立了同时考虑这3个因素的顾客需求函数和系统收益模型。首先,证明了使收益最大化的价格、产品质量和服务质量的最优解的存在。其次,分析了价格、产品质量、服务质量的敏感系数对收益的影响,结果表明:企业应通过优先调整顾客最敏感的因素来获得最大收益。

  13. The analysis of pricing principles at domestic industrial enterprises

    Directory of Open Access Journals (Sweden)

    I.M. Rjabchenko

    2013-03-01

    Full Text Available The analysis of pricing principles at domestic industrial enterprisesTheoretical and methodological aspects of marketing pricing formation are investigated in the article. The aim of this research is systematization of marketing pricing principles and formation of corresponding offers concerning perfection of a domestic industrial enterprises pricing policy.The results of the analysis. The authors note that pricing principles are important element of pricing methodology which form basic positions, characteristics for all pricing system. The essence of such pricing principles as scientific substantiation of prices, target direction of prices, unity principle of pricing process, principle of continuous pricing process, interrelation between pricing policy and general enterprise strategy, principle of legality, planned character, proportionality, adequacy, principle of interdependence between types and forms of selling, flexibility principle is considered.The table of the resulted principles allows us to group them after the followings descriptions:general principles: planned character principle, principle of legality, principle of proportionality, principle of adequacy, principle of flexibility;main principles: principle of scientific prices substantiation, principle of prices target direction, unity principle of pricing process, principle of continuous pricing process;specific principles: principle of connection between pricing policy and general strategy of enterprise, principle of interrelation between types and forms of selling, principle connected with the features of products which will be distribute, principle connected with buyers quality maintenance;individual principles: principle connected with market structure, principle that applies to the choice of reaction type and market conditions change and so on.Conclusions and directions of further researches. Research of theoretical and methodological aspects of marketing pricing forming

  14. Choice experiments

    Science.gov (United States)

    Thomas P Holmes; Wiktor L Adamawicz; Fredrik Carlsson

    2017-01-01

    There has been an explosion of interest during the past two decades in a class of nonmarket stated-preference valuation methods known as choice experiments. The overall objective of a choice experiment is to estimate economic values for characteristics (or attributes) of an environmental good that is the subject of policy analysis, where...

  15. 竞争环境下的网络零售时隙交付期承诺与价格策略%Study on Online Retailing TS Delivery Term Commitment and Price Strategy in Competitive Environment

    Institute of Scientific and Technical Information of China (English)

    劳知雷; 周诗宇

    2016-01-01

    In the e-commerce environment, making reasonable delivery term commitment and distribution service pricing for consumer orders has great significance for improving the service level and maximizing the profit of the online retailers. In this paper, based on the Logit model, we built the online retailer selection probability formula of the consumer, considered the delivery term sensitivity and price sensitivity of the consumers. With given market situation, with maximum profit as the objective and service reliability as the constraint, we established the delivery term commitment and pricing model of the online retailers and then analyzed the optimization of the model. At the end, through a numerical example, we demonstrated the optimal differentiated strategies for the delivery term sensitive consumers and the price sensitive consumers.%电商环境下,对消费者订单做出合理的交付期承诺和配送价格,对于网络零售商提高服务水平和最大化自身利润有重要意义。基于多项Logit模型,建立了消费者对网络零售商的选择概率公式,并考虑了交付期敏感和价格敏感两种消费者类型。在市场情况已知条件下,以自身期望利润最大化为目标,以达到服务管理可靠性水平为约束,构建了网络零售商交付期承诺和价格模型,并对模型的最优性质进行了分析。最后通过算例,说明了交付期和价格敏感两种类型下消费者的差异化最优决策。交付期敏感的消费者相比较价格敏感的消费者,其交付期要求更短,价格更高,且利润也更高。

  16. 企业上市地选择与证券交易所境外上市资源竞争%Where to List:Choices of the Firms and Competitions of the Exchanges

    Institute of Scientific and Technical Information of China (English)

    崔丰慧; 陈学胜

    2016-01-01

    筹建国际板是我国股票市场国际化发展和建立国际金融中心的必然要求。但是国际板的建设需要市场的认可,特别是潜在的上市公司和投资者的认可,这是关系到国际板建设成功与否以及可持续发展的关键问题。本文从影响上市公司上市地点选择的国家因子和市场因子两个方面对全球主要证券交易所的上市资源竞争力进行了比较,研究发现上海证券交易所的优势主要体现在宏观经济发展前景、证券市场规模以及证券交易所上市成本上。但是在人才集中度、市场开放程度、市场规则制定及运行质量上存在比较大的差距。%The establishment of Sha nghai Exchange ’s international board is the necessary requirement of the internationalization of stock markets and the establishment of an international financial center in China. But the establishment of Shanghai Exchange ’s international board is not one’s own wishful thinking, it needs the market’s approval, especially the approval of the firms and the investors that plan to list or invest on Shanghai Exchange. That is the key point whether the international board could establish successfully and keep on going. This paper analyzes the exchanges ’ competition ability of the global listing resources through country factors and market factors that affect the firms ’ choices of listing places. The research found that Shanghai Exchange has an advantage at good economic outlook, big stock market scale and low listing cost but disadvantage at talents, market opening, market rules and the operating qualities.

  17. Collection effort and reverse channel choices in a closed-loop supply chain

    DEFF Research Database (Denmark)

    Liu, Liwen; Wang, Zongjun; Xu, Lei

    2017-01-01

    We investigate the pricing and reverse channel choice decision issues in a closed-loop supply chain, within which the original equipment manufacturer (OEM) sells the new and remanufactured products through a retailer, while collects used products (cores) via dual recycling channels. We consider...... that collection competition exists between the dual recycling channels and the OEM has three options (i.e., OEM and Retailer dual collecting model, Retailer and Third party dual collecting model and OEM and Third party dual collecting model) to choose for collecting cores. We analytically show that the ranking...... in Hong et al. (2013) and Savaskan et al. (2004) for managerial insights on reverse channel choice....

  18. Price Analysis on Commercial Item Purchases Within the Department of Defense

    Science.gov (United States)

    2013-10-02

    analysis supports the assertion from contracting personnel that they do not have adequate time to do proper price analysis. Competition, 34 Mkt ...Services) Competition Mkt Research Previous Prices Price List Similar Items CO’s Knowledge IGCE Any other basis Acquisition Research Program Graduate...Figure 22). 64 55 Total Number of Mkt Research Reports MRR in File No MRR in file NO YES Acquisition Research Program Graduate School of

  19. Trends in price and productivity in the fur sector

    DEFF Research Database (Denmark)

    Hansen, Henning Otte

    2016-01-01

    Price and productivity are two important competitive factors for the fur skin production worldwide. In the paper it is demonstrated that there are significant long-term trends towards increasing productivity and decreasing price ratios. The trend follows the same pattern as for other agricultural...... in the long term. The terms of trade - the ratio between output and input prices - is also unstable but with a clear negative long-term trend. The developments in prices and productivity cause high demands on management both on individual fur farms and further down the value chain....

  20. 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.

  1. Fuel choices in urban Indian households

    Energy Technology Data Exchange (ETDEWEB)

    Farsi, Mehdi; Filippini, Massimo [Centre for Energy Policy and Economics, Department of Management, Technology and Economics, ETH Zurich, Switzerland and Department of Economics, University of Lugano, (Switzerland); Pachauri, Shonali [International Institute for Applied Systems Analysis, Schlossplatz 1, A-2361, Laxenburg, (Austria)

    2007-12-15

    This paper applies an ordered discrete choice framework to model fuel choices and patterns of cooking fuel use in urban Indian households. The choices considered are for three main cooking fuels: firewood, kerosene, and LPG (liquid petroleum gas). The models, estimated using a large microeconomic dataset, show a reasonably good performance in the prediction of households' primary and secondary fuel choices. This suggests that ordered models can be used to analyze multiple fuel use patterns in the Indian context. The results show that lack of sufficient income is one of the main factors that retard households from using cleaner fuels, which usually also require the purchase of relatively expensive equipment. The results also indicate that households are sensitive to LPG prices. In addition to income and price, several socio-demographic factors such as education and sex of the head of the household are also found to be important in determining household fuel choice. (Author).

  2. The role of networks in firms' multi-characteristics competition and market-share inequality

    CERN Document Server

    Garas, Antonios

    2016-01-01

    We develop a location analysis spatial model of firms' competition in multi-characteristics space, where consumers' opinions about the firms' products are distributed on multilayered networks. Firms do not compete on price but only on location upon the products' multi-characteristics space, and they aim to attract the maximum number of consumers. Boundedly rational consumers have distinct ideal points/tastes over the possible available firm locations but, crucially, they are affected by the opinions of their neighbors. Our central argument is that the consolidation of a dense underlying consumers' opinion network is the key for the firm to enlarge its market-share. Proposing a dynamic agent-based analysis on firms' location choice we characterize multi-dimensional product differentiation competition as adaptive learning by firms' managers and we argue that such a complex systems approach advances the analysis in alternative ways, beyond game-theoretic calculations.

  3. The Effect of Price Reduction on Salad Bar Purchases at a Corporate Cafeteria

    Science.gov (United States)

    Pronk, Nicolaas P.; Katz, Abigail S.; Tillema, Juliana O.; Flottemesch, Thomas J.

    2013-01-01

    The objective of this study was to determine the effect of a price reduction on salad bar purchases in a corporate cafeteria. We reduced the price of salad bar purchases by 50% during March 2012 and analyzed sales data by month for February through June 2012. We also conducted an anonymous survey. Salad bar sales by weight more than tripled during the price reduction and returned to baseline afterward. Survey respondents reported that the high price of salad relative to other choices is a barrier to purchases. Policies that make the price of salads equal to other choices in cafeterias may significantly increase healthful food consumption. PMID:23428084

  4. 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.

  5. 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

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

    Energy Technology Data Exchange (ETDEWEB)

    Hobbs, B.F. [Department of Geography and Environmental Engineering, The Johns Hopkins University, Baltimore, MD (United States); Rijkers, F.A.M. [Office of Energy Regulation DTe, Den Haag (Netherlands)

    2004-05-01

    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.

  7. HOW IS CURRENT PHARMACEUTICALS PRICING POLICY ON GENERICS PERFORMING IN TURKEY REGARDING PRICE EROSION?

    Directory of Open Access Journals (Sweden)

    Kadir GÜRSOY

    2017-02-01

    Full Text Available Generics are commonly accepted to contribute significantly to treating disease by improving the affordability of pharmaceuticals. Once the patent expires for an originator brand, generics erode prices through creating fierce competition. The objective of this study is to investigate on Turkish pharmaceutical policies over generics through measuring how much they lower the prices, and then develop alternative strategies to maintain higher level of price reduction, and hence saving. Claims data from Turkish Social Security Institution (SSI for all ambulatory care drugs reimbursed were collected monthly in the period of January 2009 to December 2013 and for selected 12 equivalent groups price erosion and saving impacts due to generic entry be computed. Moreover, the price erosion for 15 generics entering the reimbursement list in 2012 as first generics was measured. For 12 equivalent groups constituting nearly 7% of SSI drug spending, the price erosion was nearly 41% ranging from 8% to 74%. In the first year of the first generic entry, on average the prices were only shrank by 39% with an increase of 41% in units sold. As a result of those analyses, it is concluded that Turkey is not maximizing its full potential with respect to generic medicines. Therefore, it is of great importance that policies such as therapeutic equivalence, tendering, and aggressive generic pricing policy to stimulate higher savings need to be introduced in the near future.

  8. Fish Is Food - The FAO’s Fish Price Index

    Science.gov (United States)

    Tveterås, Sigbjørn; Asche, Frank; Bellemare, Marc F.; Smith, Martin D.; Guttormsen, Atle G.; Lem, Audun; Lien, Kristin; Vannuccini, Stefania

    2012-01-01

    World food prices hit an all-time high in February 2011 and are still almost two and a half times those of 2000. Although three billion people worldwide use seafood as a key source of animal protein, the Food and Agriculture Organization (FAO) of the United Nations–which compiles prices for other major food categories–has not tracked seafood prices. We fill this gap by developing an index of global seafood prices that can help to understand food crises and may assist in averting them. The fish price index (FPI) relies on trade statistics because seafood is heavily traded internationally, exposing non-traded seafood to price competition from imports and exports. Easily updated trade data can thus proxy for domestic seafood prices that are difficult to observe in many regions and costly to update with global coverage. Calculations of the extent of price competition in different countries support the plausibility of reliance on trade data. Overall, the FPI shows less volatility and fewer price spikes than other food price indices including oils, cereals, and dairy. The FPI generally reflects seafood scarcity, but it can also be separated into indices by production technology, fish species, or region. Splitting FPI into capture fisheries and aquaculture suggests increased scarcity of capture fishery resources in recent years, but also growth in aquaculture that is keeping pace with demand. Regionally, seafood price volatility varies, and some prices are negatively correlated. These patterns hint that regional supply shocks are consequential for seafood prices in spite of the high degree of seafood tradability. PMID:22590598

  9. Which price index for Eurozone index-linked bonds

    NARCIS (Netherlands)

    Arnold, I.J.M.

    2006-01-01

    Index-linked bonds (ILBs) constitute a small but growing segment of the eurozone bond market. Issuers of index-linked bonds face a choice between linking to either a eurozone or a national price index. This paper examines this choice both theoretically and empirically and ends up with the following

  10. Price control and macromarketing

    Directory of Open Access Journals (Sweden)

    Kancir Rade

    2003-01-01

    Full Text Available Price control at macro level is part of integral macro marketing strategic control system, or more precisely, part of social marketing mix control. Price impact is direct, if it is regarded in the context of needs satisfaction, and indirect, within the context of resource allocation. These two patterns of price impact define control mechanism structuring. Price control in sense of its direct impact at process of need satisfaction should comprise qualitative and quantitative level of needs satisfaction at a given price level and its structure, informational dimension of price and different disputable forms of corporate pricing policies. Control of price allocation function is based at objectives of macro marketing system management in the area of resource allocation and the role of price as allocator in contemporary market economies. Control process is founded, on one hand, at theoretical models of correlation between price and demand in different market structures, and on the other hand, at complex limits that price as allocator has, and which make whole control process even more complex because of reduction of the degree of determinism in functioning of contemporary economic systems. Control of price allocation function must be continuous and dynamic process if it is to provide for convergence with environmental changes and if it is to provide for placing control systems at micro marketing levels in the function of socially valid objectives.

  11. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

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

    the joint eects of this reform on prices and quantities. Prices decreased more than 26 percent due to the reform, which reduced patient and government expenditures by 3.0 percent and 5.6 percent, respectively, and producer revenues by 5.0 percent. The prices of expensive products decreased more than...

  12. Valuation Struggles over Pricing

    DEFF Research Database (Denmark)

    Pallesen, Trine

    2016-01-01

    public goods into play, all the while prompting a translation of these values into a single price. Following the struggles over the pricing of wind power in the early 2000s, the study illustrates that rather than a pollution of the market sphere by that of politics, a politics of pricing can be observed...

  13. 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

  14. Dutch house price fundamentals

    NARCIS (Netherlands)

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

    2009-01-01

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

  15. 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.

  16. Price synchronization in retailing: some empirical evidence

    Directory of Open Access Journals (Sweden)

    Marcelo Resende

    2014-06-01

    Full Text Available The paper investigates the synchronization of price changes in the context of retail tire dealers in São Paulo-Brazil and selected items in supermarkets for cleaning supplies and food in Rio de Janeiro-Brazil. Results indicate similar and non-negligible synchronization for different brands, although magnitudes are distant from a perfect synchronization pattern. We find interesting patterns in inter-firm competition, with similar magnitudes across different tire types. Intra-chain synchronization is substantial, indicating that a common price adjustment policy tends to be sustained for each chain across different products.

  17. Apples with apples: accounting for fuel price risk in comparisons of gas-fired and renewable generation

    Energy Technology Data Exchange (ETDEWEB)

    Bolinger, Mark; Wiser, Ryan

    2003-12-18

    For better or worse, natural gas has become the fuel of choice for new power plants being built across the United States. According to the US Energy Information Administration (EIA), natural gas combined-cycle and combustion turbine power plants accounted for 96% of the total generating capacity added in the US between 1999 and 2002--138 GW out of a total of 144 GW. Looking ahead, the EIA expects that gas-fired technology will account for 61% of the 355 GW new generating capacity projected to come on-line in the US up to 2025, increasing the nationwide market share of gas-fired generation from 18% in 2002 to 22% in 2025. While the data are specific to the US, natural gas-fired generation is making similar advances in other countries as well. Regardless of the explanation for (or interpretation of) the empirical findings, however, the basic implications remain the same: one should not blindly rely on gas price forecasts when comparing fixed-price renewable with variable-price gas-fired generation contracts. If there is a cost to hedging, gas price forecasts do not capture and account for it. Alternatively, if the forecasts are at risk of being biased or out of tune with the market, then one certainly would not want to use them as the basis for resource comparisons or investment decisions if a more certain source of data (forwards) existed. Accordingly, assuming that long-term price stability is valued, the most appropriate way to compare the levelized cost of these resources in both cases would be to use forward natural gas price data--i.e. prices that can be locked in to create price certainty--as opposed to uncertain natural gas price forecasts. This article suggests that had utilities and analysts in the US done so over the sample period from November 2000 to November 2003, they would have found gas-fired generation to be at least 0.3-0.6 cents/kWh more expensive (on a levelized cost basis) than otherwise thought. With some renewable resources, in particular wind

  18. COMPETITIVE PRODUCT ADVANTAGES

    Directory of Open Access Journals (Sweden)

    Adrian MICU

    2006-01-01

    Full Text Available Cost advantages may be either internal or external. Internal economics of scope, scale, or experience, and external economies of focus or logistical integration, enable a company to produce some products at a lower cost than the competition. The coordination of pricing with suppliers, although not actually economizing resources, can improve the efficiency of pricing by avoiding the incrementalization of a supplier's nonincremental fixed costs and profit. Any of these strategies can generate cost advantages that are, at least in the short run, sustainable. Even cost advantages that are not sustainable, however, can generate temporary savings that are often the key to building more sustainable cost or product advantages later.. Even when a product's physical attributes are not readily differentiable, opportunities to develop product advantages remain. The augmented product that customers buy is more than the particular product or service exchanged. It includes all sorts of ancillary services and intangible relationships that make buying thesame product from one company less difficult, less risky, or more pleasant than buying from a competitor. Superior augmentation of the same basic product can add substantial value in the eyes of consumers, leading them to pay willingly what are often considerable price premiums.

  19. Carbon pricing, nuclear power and electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Cameron, R.; Keppler, J. H. [OECD Nuclear Energy Agency, 12, boulevard des Iles, 92130 Issy-les-Moulineaux (France)

    2012-07-01

    In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised

  20. Internet resource pricing models

    CERN Document Server

    Xu, Ke; He, Huan

    2013-01-01

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

  1. Value-based pricing

    Directory of Open Access Journals (Sweden)

    Netseva-Porcheva Tatyana

    2010-01-01

    Full Text Available The main aim of the paper is to present the value-based pricing. Therefore, the comparison between two approaches of pricing is made - cost-based pricing and value-based pricing. The 'Price sensitively meter' is presented. The other topic of the paper is the perceived value - meaning of the perceived value, the components of perceived value, the determination of perceived value and the increasing of perceived value. In addition, the best company strategies in matrix 'value-cost' are outlined. .

  2. 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...

  3. Friendly competition.

    Science.gov (United States)

    Chambers, David W

    2006-01-01

    Competition that is characterized by rules, often informal, agreed among mutually accepted participants, and that gives the competitors a special, advantageous status with others is called friendly competition. Dentists have engaged in it deeply and it is good for the profession. Friendly competition offers the advantages of spillover of commonly useful information and technologies, stimulation of innovation, a united and convenient face to customers and suppliers, and standards that promote growth. Friendly competition increases the size of the pie, regardless of market share. Paradoxically, this is even true for the little guy in the shadow of the giant. If carried to extremes, unfriendly competition leads to destroying competitors, the confusion of multiple rules, and encouragement of disruptive change.

  4. Distributional preferences and competitive behavior.

    Science.gov (United States)

    Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias

    2012-06-01

    We study experimentally the relationship between distributional preferences and competitive behavior. We find that spiteful subjects react strongest to competitive pressure and win in a tournament significantly more often than efficiency-minded and inequality averse subjects. However, when given the choice between a tournament and a piece rate scheme, efficiency-minded subjects choose the tournament most often, while spiteful and inequality averse subjects avoid it. When controlling for distributional preferences, risk attitudes and past performance, the gender gap in the willingness to compete is no longer significant, indicating that gender-related variables explain why twice as many men as women self-select into competition.

  5. Calculating proper transfer prices

    Energy Technology Data Exchange (ETDEWEB)

    Dorkey, F.C. (Meliora Research Associates, Rochester, NY (United States)); Jarrell, G.A. (Univ. of Rochester, NY (United States))

    1991-01-01

    This article deals with developing a proper transfer pricing method. Decentralization is as American as baseball. While managers laud the widespread benefits of both decentralization and baseball, they often greet the term transfer price policy with a yawn. Since transfer prices are as critical to the success of decentralized firms as good pitchers are to baseball teams, this is quite a mistake on the part of our managers. A transfer price is the price charged to one division for a product or service that another division produced or provided. In many, perhaps most, decentralized organizations, the transfer pricing policies actually used are grossly inefficient and sacrifice the potential advantages of decentralization. Experience shows that far too many companies have transfer pricing policies that cost them significantly in foregone growth and profits.

  6. Price learning during grocery shopping

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup

    of 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...... than expected. Consequently, a new view of how consumer price knowledge evolves during grocery shopping is presented....

  7. Competitive spirit

    Science.gov (United States)

    2000-01-01

    Leicester University will host the 65 international teams of students who will assemble in July for this year's International Physics Olympiad . The last time the Olympiad came to the UK was in 1986 in London, and it was the notable enthusiasm of the Leicester Physics and Astronomy department which persuaded the Olympiad Committee to give them the chance of organizing the prestigious event. The students taking part from all over the world are studying physics at A-level or an equivalent standard and they will take part in an intellectual marathon of theoretical and practical examinations. Each national team comprises five students selected from three rounds of competition and the teams will receive an official welcome from the city, as well as opportunities to visit some of the important educational and cultural centres of the surrounding region. The finalists will also be able to test their skills and initiative at the Challenger Learning Centre, which forms part of Leicester's new National Space Science Centre. Specific information on the event can be found on the Olympiad-2000 website at www.star.le.ac.uk/IphO-2000 . The Rudolf Ortvay problem solving contest in physics, which takes place in November, is a tradition of Eötvös University in Budapest, Hungary. The competition was first opened to international participants in 1998, enabling students from universities around the world to show their knowledge, ingenuity, problem-solving skills and physical insight into problems that are far beyond routine level. The problems (30 - 35 each year) are chosen from different branches of theoretical as well as applied physics. They have varying levels of difficulty, and every contestant can send solutions for ten problems. The focus is not on school-level problem-solving routines but rather on the `physical' way of thinking, recognition of the heart of the problem and an appropriate choice of mathematics. The majority of the assigned problems are original, few having

  8. Comparing Prices for Food and Diet Research: The Metric Matters.

    Science.gov (United States)

    Jones, N R V; Monsivais, P

    2016-07-02

    An important issue in research into access to healthy food is how best to compare the price of foods. The appropriate metric for comparison has been debated at length, with proponents variously stating that food prices should be compared in terms of their energy content, their edible mass, or their typical portion size. In this article we assessed the impact of using different food price metrics on the observed difference in price between food groups and categories of healthiness, using United Kingdom consumer price index data for 148 foods and beverages in 2012. We found that the choice of metric had a marked effect on the findings and conclude that this must be decided in advance to suit the reason for comparing food prices.

  9. Residential water demand with endogenous pricing: The Canadian Case

    Science.gov (United States)

    Reynaud, Arnaud; Renzetti, Steven; Villeneuve, Michel

    2005-11-01

    In this paper, we show that the rate structure endogeneity may result in a misspecification of the residential water demand function. We propose to solve this endogeneity problem by estimating a probabilistic model describing how water rates are chosen by local communities. This model is estimated on a sample of Canadian local communities. We first show that the pricing structure choice reflects efficiency considerations, equity concerns, and, in some cases, a strategy of price discrimination across consumers by Canadian communities. Hence estimating the residential water demand without taking into account the pricing structures' endogeneity leads to a biased estimation of price and income elasticities. We also demonstrate that the pricing structure per se plays a significant role in influencing price responsiveness of Canadian residential consumers.

  10. 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.

  11. Media Competition and Electoral Politics

    NARCIS (Netherlands)

    Piolatto, A.; Schuett, F.

    2013-01-01

    Abstract: We build a framework linking competition in the media market to political participation, media slant, and selection of politicians. Media outlets report on the ability of candidates running for office and compete for audience through their choice of slant. Citizens derive utility from foll

  12. Street Vending and Competitive Advantage: Towards Building a Theoretical Framework

    National Research Council Canada - National Science Library

    Aborampah Amoah-Mensah

    2016-01-01

    ..." (strategic exit and return into business), regular changing of goods and services, exploitation of flexible operating hours, cost-based pricing strategy, sales promotion, trade credit and locational advantage - to gain competitive advantage...

  13. Oil prices are still too high

    Energy Technology Data Exchange (ETDEWEB)

    Tussing, A.R.

    1985-01-01

    Despite logical premises than the constant-dollar price of oil will surpass and sustain all-time peaks, there is empirical evidence that the Malthus-Hotelling vision does not describe what really happens to production, consumption, and prices of natural resource commodities. Neither oil nor any important internationally traded commodity has ever shown a sustained upward price trend lasting more than a couple of decades. The payoff is just beginning on the investments, both in hardware and in sophistication, that society made over the last decade to conserve energy. The buyer's market in crude oil should continue for a number of years because these investments are reducing demand, making demand more flexible, and making supply more competitive.

  14. Water pricing towards sustainability of water resources: A case study in Beijing

    Institute of Scientific and Technical Information of China (English)

    2002-01-01

    The role of water pricing for managing water resources iswidely recognized in many areas of the world because of theincreasing scarcity of water resources, a high competition betweenwater uses and environmental degradation. Based on the analysis ofcost of water, this paper explores which types of cost should bereflected in the water pricing enhancing the sustainability ofwater resources. The principle of full cost pricing in which thecost should include supply cost, opportunity cost and externalitiesis proposed as a means to achieve the sustainability of waterresources. In a case study of Beijing, low water price is analyzedas one reason for unsustainable water consumption. Thus waterpricing justified is necessary and pressing. It is proposed tojustify water price in phased manner and eventually towards fullcost pricing. The assessment of impacts on water resources byraising water price shows water pricing could alleviate the conflict between water supply and demand. This paper concludes thatwater pricing can play an effective role in enhancing thesustainability of water resources in Beijing.

  15. Optimal strategies for pricing general insurance

    OpenAIRE

    Emms, P.; Haberman, S.; Savoulli, I.

    2006-01-01

    Optimal premium pricing policies in a competitive insurance environment are investigated using approximation methods and simulation of sample paths. The market average premium is modelled as a diffusion process, with the premium as the control function and the maximization of the expected total utility of wealth, over a finite time horizon, as the objective. In order to simplify the optimisation problem, a linear utility function is considered and two particular premium strategies are adopted...

  16. Target Price Accuracy

    Directory of Open Access Journals (Sweden)

    Alexander G. Kerl

    2011-04-01

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

  17. Optimal Asset Pricing

    Directory of Open Access Journals (Sweden)

    Rolf Turner

    2014-07-01

    Full Text Available We describe an R package for determining the optimal price of an asset which is perishable in a certain sense, given the intensity of customer arrivals and a time-varying price sensitivity function which speci?es the probability that a customer will purchase an asset o?ered at a given price at a given time. The package deals with the case of customers arriving in groups, with a probability distribution for the group size being speci?ed. The methodology and software allow for both discrete and continuous pricing. The class of possible models for price sensitivity functions is very wide, and includes piecewise linear models. A mechanism for constructing piecewise linear price sensitivity functions is provided.

  18. Does tax competition really promote growth?

    DEFF Research Database (Denmark)

    Köthenbürger, Marko; Lockwood, Ben

    2010-01-01

    setting (two or more jurisdictions) maximizes the rate of growth, as the constant returns to scale present with endogenous growth implies "extreme" tax competition. Stochastic shocks imply that households face a portfolio choice problem, which dampens down tax competition and may raise taxes above...

  19. Customizing Prices in Online Markets

    OpenAIRE

    Reinartz, Werner

    2002-01-01

    Dynamic pricing is the dynamic adjustment of prices to consumers depending on the value these customers attribute to a good. Underlying the concept of dynamic pricing is what marketers call price customization. Price customization is the charging of different prices to end consumers based on a discriminatory variable. Internet technology will serve as a great enabling tool for making dynamic pricing accessible to many industries.

  20. The price level and monetary policy

    Directory of Open Access Journals (Sweden)

    Charles P. Kindleberger

    2002-03-01

    Full Text Available Most central banks are required to or choose to stabilize a price index, largely by manipulating short term interest rates. A serious problem is which index to choose among the national income deflator, wholesale prices, the cost of living, with or eliminating highly volatile commodities such as food and energy, to produce a core index, plus others such as housing, including or without imputed rent of owner-occupied houses, or assets, whether equities or houses. No obvious and widely agreed index exists. Even if there were a clear choice, there remains a question whether a central bank should carefully consider action in order to achieve other goals: full employment, adjustment of the balance of payments, of the exchange rate, prevention of bubbles in asset prices, or recovery from financial crises. If so, the question of central bank weapons remains: monetary expansion or contraction, credit controls, for overall or for particular purposes, and moral suasion.