WorldWideScience

Sample records for consumer prices

  1. Advertising Expenditure and Consumer Prices

    OpenAIRE

    Ferdinand Rauch

    2011-01-01

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

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

    OpenAIRE

    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 vital for policymakers to know how transparent pricing is in reality. Commercial practices involving price intransparency can be detrimental to consumer decision making and may be associated with marke...

  3. 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

  4. 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.

  5. Experimental investigation of consumer price evaluations

    NARCIS (Netherlands)

    Z. Sándor (Zsolt); Ph.H.B.F. Franses (Philip Hans)

    2004-01-01

    textabstractWe develop a procedure to collect experimental choice data for estimating consumer preferences with a special focus on consumer price evaluations. For this purpose we employ a heteroskedastic mixed logit model that measures the effect of the way prices are specified on the variance of

  6. Innovations in Statistical Observations of Consumer Prices

    Directory of Open Access Journals (Sweden)

    Olga Stepanovna Oleynik

    2016-10-01

    Full Text Available This article analyzes the innovative changes in the methodology of statistical surveys of consumer prices. These changes are reflected in the “Official statistical methodology for the organization of statistical observation of consumer prices for goods and services and the calculation of the consumer price index”, approved by order of the Federal State Statistics Service of December 30, 2014 no. 734. The essence of innovation is the use of mathematical methods in determining the range of studies objects of trade and services, in calculating the sufficient observable price quotes based on price dispersion, the proportion of the observed product (service, a representative of consumer spending, as well as the indicator of the complexity of price registration. The authors analyzed the mathematical calculations of the required number of quotations for observation in the Volgograd region in 2016, the results of calculations are compared with the number of quotes included in the monitoring. The authors believe that the implementation of these mathematical models allowed to substantially reduce the influence of the subjective factor in the organization of monitoring of consumer prices, and therefore to increase the objectivity of the resulting statistics on consumer prices and inflation. At the same time, the proposed methodology needs further improvement in terms of payment for goods, products (services by representatives having a minor share in consumer expenditure.

  7. Estimating the common trend rate of inflation for consumer prices and consumer prices excluding food and energy prices

    OpenAIRE

    Michael T. Kiley

    2008-01-01

    I examine the common trend in inflation for consumer prices and consumer prices excluding prices of food and energy. Both the personal consumption expenditure (PCE) indexes and the consumer price indexes (CPI) are examined. The statistical model employed is a bivariate integrated moving average process; this model extends a univariate model that fits the data on inflation very well. The bivariate model forecasts as well as the univariate models. The results suggest that the relationship betwe...

  8. 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....

  9. Research Note Consumer Addressability and Customized Pricing

    OpenAIRE

    Yuxin Chen; Ganesh Iyer

    2002-01-01

    The increasing availability of customer information is giving many firms the ability to reach and customize price and other marketing efforts to the tastes of the individual consumer. This ability is labeled as consumer addressability. Consumer addressability through sophisticated databases is particularly important for direct-marketing firms, catalog retailers such as L.L Bean and Land's End, credit card-issuing banks, and firms in the long-distance telephone market. We examine the strategic...

  10. 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:

  11. Consumers' price knowledge before, during, and after store visit

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup

    Many attempts have been made to measure consumers' price knowledge for frequently purchased goods. However, the results have varied considerably and conflict with the results of reference price studies. This is the first study to examine consumers' price knowledge before, during, and after store...... visit, thus enabling a study of what consumers learn about prices during the store visit, and consequently the relationship between reference prices and episodic price knowledge. The project applies three measures of consumers' price knowledge corresponding to different levels of price information...

  12. Consumers' price awareness at the point-of-selection

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup

    This paper focuses on consumers' price information processing at the point-of-selection. Specifically, it updates past results of consumers' price awareness at the point-of-selection - applying both a price-recall and a price-recognition test - and tests hypotheses on potential determinants...... of consumers' price awareness at the point-of-selection. Both price-memory tests resulted in higher measured price awareness than in any of the past studies. Results also indicate that price recognition is not the most appropiate measure. Finally, a discriminant analysis shows that consumers who are aware...... of the price at the point-of-selection are more deal prone, more low-price prone, and bought a special-priced item. Implications are discussed....

  13. Price sensitivity and innovativeness for fashion among Korean consumers.

    Science.gov (United States)

    Goldsmith, Ronald E; Kim, Daekwan; Flynn, Leisa R; Kim, Wan-Min

    2005-10-01

    Price sensitivity is how consumers react to price levels and to price changes. Consumer innovativeness is a tendency to welcome and to adopt new products. Researchers (e.g., R. E. Goldsmith & S. J. Newell, 1997) consider innovative consumers relatively more price insensitive than other consumers, so there should be a negative correlation between measures of these constructs. The results of the present study supported the psychometric soundness of a self-report measure of price sensitivity among 860 Korean consumers and replicated earlier findings of the negative correlation between the 2 constructs.

  14. Demonstration Project. Consumer reactions to peak prices

    International Nuclear Information System (INIS)

    Lindskoug, Stefan

    2006-06-01

    The purpose and aim of the project is to look at the risk of capacity shortage in the Swedish electricity supply system during excessively cold periods of weather. A risk that has increased in recent years. A growing number of analysts emphasize the importance of high spot prices actually leading to a reduction in demand. Through increased consumer sensitivity as regards pricing, the power system can be run safely with smaller generation reserves. In addition, market price fluctuation is estimated to become more stable and predictable. The purpose of the Demonstration Project is to demonstrate methods or business concepts that lead to the demand for electricity on a national level being reduced at times of high spot prices. The need for the measures to be profitable for the parties involved is an important starting point. A general problem associated with research and development projects is that the participants feel selected and special attention is paid them, hence they will make an extra effort to improve the results. We were aware of this fact when setting up the trials, which is why we introduced the trials as an offer from the electricity supplier to take part in a commercial assessment using a new price list. For this reason we concealed the marked research aim with Elforsk as a backer. Evaluating the results of questionnaires and detailed interviews does not give cause to suppose the results are in any way affected by such conditions. The conclusion of this project is that controlling load at the customer end is an economic alternative to the investment of new production resources

  15. Short-term Consumer Benefits of Dynamic Pricing

    OpenAIRE

    Dupont, Benjamin; De Jonghe, Cedric; Kessels, Kris; Belmans, Ronnie

    2011-01-01

    Consumer benefits of dynamic pricing depend on a variety of factors. Consumer characteristics and climatic circumstances widely differ, which forces a regional comparison. This paper presents a general overview of demand response programs and focuses on the short-term benefits of dynamic pricing for an average Flemish residential consumer. It reaches a methodology to develop a cost reflective dynamic pricing program and to estimate short-term bill savings. Participating in a dynamic pricing p...

  16. Pricing Policy and Strategies for Consumer High-Tech Products

    Directory of Open Access Journals (Sweden)

    Dovleac, L.

    2014-06-01

    Full Text Available This paper highlights the complex process of price setting for consumer high-tech products. These prices are highly influenced by some external factors from the economic and social environment. The main objective of this paper is to establish the most effective pricing policies and strategies used by high-tech companies of various sizes. Decisions about price fixing for consumer high-technology products are largely influenced by consumer behaviour, too.

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

    International Nuclear Information System (INIS)

    Ewing, Bradley T.; Thompson, Mark A.

    2007-01-01

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

  18. variances in consumers prices of selected food items among ...

    African Journals Online (AJOL)

    Admin

    the consumer prices of rice, beans and garri in the three markets; rice and garri had insignificant differences in ... and inappropriate response by farmers to price ... supply or demand side or both). .... road network, storage facilities, subsidized.

  19. The substitution bias of the consumer price index

    OpenAIRE

    Frenger, Petter

    2006-01-01

    Abstract: The paper uses elementary consumer theory to propose an inflation independent ratio definition of the substitution bias of the Laspeyres consumer price index, and derives an approximate substitution bias which depends on the size of the price change as measured by a norm in the Laspeyres plane and on the elasticity of substitution in the direction of the price change. This norm or distance measure can be interpreted as a price substitution index which yields useful in...

  20. Optimal Price Skimming by a Monopolist Facing Rational Consumers

    OpenAIRE

    David Besanko; Wayne L. Winston

    1990-01-01

    This paper considers the intertemporal pricing problem for a monopolist marketing a new product. The key feature differentiating this paper from the extant management science literature on intertemporal pricing is the assumption that consumers are intertemporal utility maximizers. A subgame perfect Nash equilibrium pricing policy is characterized and shown to involve intertemporal price discrimination. We compare this policy to the optimal policy for a monopolist facing myopic consumers and f...

  1. The Normative Impact of Consumer Price Expectations for Multiple Brands on Consumer Purchase Behavior

    OpenAIRE

    Aradhna Krishna

    1992-01-01

    Empirical research indicates that some consumers form price expectations which may impact their purchase behavior. While literature in operations research has built purchase policy models incorporating uncertain price expectations, these models have been built for commodities. Consumers face an environment with multiple brands. In this paper, we develop a model that incorporates consumer preferences and price expectations for multiple brands as determinants of normative consumer purchase beha...

  2. Price promotions and products with low consumer ratings

    OpenAIRE

    Kuo, H. C.; Kuo, H. C.; Nakhata, C.; Nakhata, C.

    2016-01-01

    Previous research indicates the aversive effect of low consumer ratings on consumers’ purchasing decisions. This paper aims to apply decision justifiability theory to investigate how price promotions – price discount and price bundling – can reduce this effect. 517-527.

  3. Minimum Price Guarantees In a Consumer Search Model

    NARCIS (Netherlands)

    M.C.W. Janssen (Maarten); A. Parakhonyak (Alexei)

    2009-01-01

    textabstractThis paper is the first to examine the effect of minimum price guarantees in a sequential search model. Minimum price guarantees are not advertised and only known to consumers when they come to the shop. We show that in such an environment, minimum price guarantees increase the value of

  4. Variances in consumers prices of selected food items among ...

    African Journals Online (AJOL)

    ... had insignificant differences in their consumer prices while beans consumer prices had significant differences between Okurikang market and the other two markets. The results imply perfect information flow in garri and rice markets and hence high possibility of a perfectly competitive market structure for these products.

  5. 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…

  6. Variances in consumers prices of selected food Items among ...

    African Journals Online (AJOL)

    The study focused on the determination of variances among consumer prices of rice (local white), beans (white) and garri (yellow) in Watts, Okurikang and 8 Miles markets in southern zone of Cross River State. Completely randomized design was used to test the research hypothesis. Comparing the consumer prices of rice, ...

  7. Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness

    OpenAIRE

    Sandra Rothenberger

    2015-01-01

    This study proposes that price transparency is a significant factor affecting customer judgments of the fairness of sellers’ prices. Cognitive judgments of fairness require a certain amount of information processing; therefore, the level of transparency and the amount of price information affect fairness judgments. The more clear information consumers possess concerning seller prices, the more positive the judgment will be. Customer price fairness judgment is an effective measurement for the ...

  8. Cost-reflective electricity pricing: Consumer preferences and perceptions

    International Nuclear Information System (INIS)

    Hall, Nina L.; Jeanneret, Talia D.; Rai, Alan

    2016-01-01

    In Australia, residential electricity peak demand has risen steeply in recent decades, leading to higher prices as new infrastructure was needed to satisfy demand. One way of limiting further infrastructure-induced retail price rises is via ‘cost-reflective’ electricity network pricing that incentivises users to shift their demand to non-peak periods. Empowering consumers with knowledge of their energy usage is critical to maximise the potential benefits of cost-reflective pricing. This research consulted residential electricity consumers in three Australian states on their perceptions and acceptance of two cost-reflective pricing scenarios (Time-of-Use and Peak Capacity pricing) and associated technologies to support such pricing (smart meters, in-home displays and direct load control devices). An energy economist presented information to focus groups on the merits and limitations of each scenario, and participants’ views were captured. Almost half of the 53 participants were agreeable to Time-of-Use pricing, but did not have a clear preference for Peak Capacity pricing, where the price was based on the daily maximum demand. Participants recommended further information to both understand and justify the potential benefits, and for technologies to be introduced to enhance the pricing options. The results have implications for utilities and providers who seek to reduce peak demand. - Highlights: •Electricity price rises can be limited by ‘cost-reflective’ pricing. •We consulted residential electricity consumers on Time-of-Use and Peak Capacity pricing. •Understanding of peak electricity demand must increase to enable demand shift. •Interactive website could enable consumers to evaluate pricing options. •Smart meter adoption may increase if voluntary and includes an in-home display.

  9. Core Indicators of Japan's Consumer Price Index

    OpenAIRE

    Shigenori Shiratsuka

    2006-01-01

    The primary objective of the Bank of Japan (BOJ) in conducting monetary policy is to promote sustainable growth by achieving price stability. The price stability that needs to be achieved is regarded as not just short-term and temporary, but sustainable in the medium to long term, which is the common understanding among major central banks. To fulfill this mandate, the BOJ is required to identify the underlying trend of inflation by excluding various idiosyncratic disturbances from measured p...

  10. Do consumers really know if the price is right ? Direct measures of references price are their implications for retailing

    OpenAIRE

    VANHUELE, Marc; DREZE, Xavier

    2000-01-01

    Reference price research suggest that consumers memorize and recall price information when selecting brands for frequently purchased products. In this study, we show that previous price-knowledge surveys provided imperfect estimates of reference price. Further, we propose to use a combination of price recall, price recognition, and deal recognition to measure representations to memorize prices. In addition we identify consumer and product characteristics that explain the variations in price k...

  11. The Dynamic Pricing of Next Generation Consumer Durables

    OpenAIRE

    Barry L. Bayus

    1992-01-01

    Learning curve effects, aspects of consumer demand models (e.g., reservation price distributions, intertemporal utility maximizing behavior), and competitive activity are reasons which have been offered to explain why prices of new durables decline over time. This paper presents an alternative rationale based on the buying behavior for products with overlapping replacement cycles (i.e., next generation products). A model for consumer sales of a new durable is developed by incorporating the re...

  12. Strategic pricing, consumer search and the number of firms

    NARCIS (Netherlands)

    Janssen, Maarten C W; Moraga-González, José Luis

    2004-01-01

    We examine an oligopoly model where some consumers engage in costly non-sequential search to discover prices. There are three distinct price-dispersed equilibria characterized by low, moderate and high search intensity. The effects of an increase in the number of firms on search behaviour, expected

  13. Consumers' price awareness at the point-of-selection: What constitutes the most appropriate measure of consumers' price awareness and what determines the differences?

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup

    This paper focuses on consumers' price information processing at the point-of-selection. Specifically, it updates past results of consumers' price awareness at the point-of-selection - applying both a price-recall and a price-recognition test - and tests hypotheses on potential determinants...... of consumers' price awareness at the point-of-selection. Both price-memory tests resulted in higher measured price awareness than in any of the past studies. Results also indicate that price recognition is not the most appropiate measure. Finally, a discriminant analysis shows that consumers who are aware...

  14. Electricity pricing: optimal operation and investment by industrial consumers

    Energy Technology Data Exchange (ETDEWEB)

    Outhred, H.R.; Kaye, R.J.; Sutanto, D.; Manimaran, R.; Bannister, C.H.; Lee, Y.B.

    1988-08-01

    Ongoing research in the areas of economically efficient electricity pricing and industrial consumer response is described. A new electricity pricing theory is described that incorporates future uncertainty and intertemporal linkages between decisions. It indicates that electricity prices should contain two terms - short-run marginal cost plus a term that reflects how each particular decision is likely to affect future global welfare. A practical implementation using spot prices and forward contracts plus financial instruments for risk sharing and decision coordination is explored, and a procedure for developing long-term pricing policy is considered. The operation of industrial plant has been investigated and models developed to optimize plant behaviour in response to spot prices and forward contracts for electricity. These models are described and results of simulation studies discussed. The economic efficiency and risk sharing advantages of this advanced tariff structure compared with a conventional time-of-use tariff are illustrated.

  15. Utility Green Pricing Programs: Design, Implementation, and Consumer Response

    Energy Technology Data Exchange (ETDEWEB)

    Bird, L.; Swezey, B.; Aabakken, J.

    2004-02-01

    The term green pricing refers to programs offered by utilities in traditionally regulated electricity markets, which allow customers to support the development of renewable energy sources by paying a small premium on their electric bills. Since the introduction of the concept in the United States, the number of unique utility green pricing programs has expanded from just a few programs in 1993 to more than 90 in 2002. About 10% of U.S. utilities offered a green pricing option to about 26 million consumers by the end of 2002. This report provides: (1) aggregate industry data on consumer response to utility programs, which indicate the collective impact of green pricing on renewable energy development nationally; and (2) market data that can be used by utilities as a benchmark for gauging the relative success of their green pricing programs. Specifically, the paper presents current data and trends in consumer response to green pricing, as measured by renewable energy sales, participants, participation rates, and new renewable energy capacity supported. It presents data on various aspects of program design and implementation, such as product pricing, ownership of supplies, retention rates, marketing costs, the effectiveness of marketing techniques, and methods of enrolling and providing value to customers.

  16. FUNGIBILITY AND CONSUMER CHOICE: EVIDENCE FROM COMMODITY PRICE SHOCKS*

    OpenAIRE

    Hastings, Justine S.; Shapiro, Jesse M.

    2013-01-01

    We formulate a test of the fungibility of money based on parallel shifts in the prices of different quality grades of a commodity. We embed the test in a discrete-choice model of product quality choice and estimate the model using panel microdata on gasoline purchases. We find that when gasoline prices rise, consumers substitute to lower octane gasoline, to an extent that cannot be explained by income effects. Across a wide range of specifications, we consistently reject the null hypothesis t...

  17. Analysis of Consumers' Preferences and Price Sensitivity to Native Chickens.

    Science.gov (United States)

    Lee, Min-A; Jung, Yoojin; Jo, Cheorun; Park, Ji-Young; Nam, Ki-Chang

    2017-01-01

    This study analyzed consumers' preferences and price sensitivity to native chickens. A survey was conducted from Jan 6 to 17, 2014, and data were collected from consumers (n=500) living in Korea. Statistical analyses evaluated the consumption patterns of native chickens, preference marketing for native chicken breeds which will be newly developed, and price sensitivity measurement (PSM). Of the subjects who preferred broilers, 24.3% do not purchase native chickens because of the dryness and tough texture, while those who preferred native chickens liked their chewy texture (38.2%). Of the total subjects, 38.2% preferred fried native chickens (38.2%) for processed food, 38.4% preferred direct sales for native chicken distribution, 51.0% preferred native chickens to be slaughtered in specialty stores, and 32.4% wanted easy access to native chickens. Additionally, the price stress range (PSR) was 50 won and the point of marginal cheapness (PMC) and point of marginal expensiveness (PME) were 6,980 won and 12,300 won, respectively. Evaluation of the segmentation market revealed that consumers who prefer broiler to native chicken breeds were more sensitive to the chicken price. To accelerate the consumption of newly developed native chicken meat, it is necessary to develop a texture that each consumer needs, to increase the accessibility of native chickens, and to have diverse menus and recipes as well as reasonable pricing for native chickens.

  18. Helping consumers manage their exposure to volatile natural gas prices

    International Nuclear Information System (INIS)

    Campion, A.

    2004-01-01

    This presentation provided a customer's view of forward gas prices and outlined different buying behaviours in terms of characteristics of novice and seasoned buyers. It presented a portfolio overview of natural gas and described the risks facing customers in terms of fixed prices and fixed volumes. An energy smart price plan considers floating gas prices instead of a fixed market price. An automobile manufacturer was presented as an example of a gas consumer that would prefer to manage internal costs of production rather than manage gas volatility. The importance of understanding the drivers of individual businesses was emphasized. Natural Resources Canada and the Office of Energy Efficiency offer financial incentives for manufacturers for energy retrofit feasibility studies that result in energy retrofit projects in lighting, heating, boiler replacement, chiller upgrades, and heat recovery. tabs., figs

  19. Price signals and end consumer flexibility in shortage situations

    International Nuclear Information System (INIS)

    Hunnes, Arngrim; Grande, Ove S.

    2002-08-01

    This report is written as a part of the project ''Consumer flexibility and efficient use of ICT''. The project aim is 1) to provide a decision basis and suggest external conditions for a priority guided development of an infrastructure based on future ICT solutions and 2) develop, test and evaluate various measures which stimulate flexibility in consumption with consideration to power price, network rent and new market solutions. The central question in the report is how to stimulate the end consumer to be flexible in the consumption of electric power. The use of power price and system rent is desired tools for communicating the right price signals to the end consumers and thereby give the end users an incentive. The focus is primarily on the short term flexibility. The first chapter in the report gives an introduction to the price signals and the two way communication. There is a clear distinction between price signals from power suppliers and price signals from network companies. The two following chapters contain a more thorough discussion. As to the price signals from the power suppliers it is pointed out that most of the existing power contracts have a design so that they in the short term do not give the right price signals to the end users. It is proposed that two new contract types are tested: 1) Spot price and time settling. 2) Contract for reduced power price in a certain period provided the consumer is willing to reduce the load when 1) the spot price exceeds a level given by the end user, 2) the present load exceeds the subscribed level. In the chapter about the price signals from network companies there is first a brief introduction to the natural monopoly and the demands of the authorities to network tariffs. There is also a survey of the size of the system tariffs in the various counties. The central section of the chapter contains suggestions for designing network tariffs. Based on the deductions it is proposed that the project will test the

  20. "The Consumer Price Index As a Measure of Inflation"

    OpenAIRE

    Dimitri B. Papadimitriou; L. Randall Wray

    1996-01-01

    As inflation approaches zero, it becomes increasingly important to examine the price indices on which monetary policy is based. The most popularly used aggregate price statistic in the U.S. is the Consumer Price Index (CPI), a statistic that appears to be a focal point in monetary policy deliberations. A problem associated with using the CPI, a fixed weight index of the cost-of-living, is that there are likely to be biases in the index as a measure of inflation. In this paper we use a simple ...

  1. List prices vs. bargain prices: which solution to estimate consumer price indices?

    OpenAIRE

    Carlo De Gregorio

    2010-01-01

    Alternative approaches to CPI surveys are here evaluated, in markets where final prices are based on some sort of price listing. Three types of surveys are compared: local surveys (LOC), with small samples and a local price collection; list price surveys (LIS), with huge samples and centralised collection; mixed surveys (MXD), in which LOC and LIS are jointly used. Based on a multiplicative pricing model, some conditions are derived to establish the relative efficiency of these approaches. Th...

  2. Dynamic pricing of network goods with boundedly rational consumers.

    Science.gov (United States)

    Radner, Roy; Radunskaya, Ami; Sundararajan, Arun

    2014-01-07

    We present a model of dynamic monopoly pricing for a good that displays network effects. In contrast with the standard notion of a rational-expectations equilibrium, we model consumers as boundedly rational and unable either to pay immediate attention to each price change or to make accurate forecasts of the adoption of the network good. Our analysis shows that the seller's optimal price trajectory has the following structure: The price is low when the user base is below a target level, is high when the user base is above the target, and is set to keep the user base stationary once the target level has been attained. We show that this pricing policy is robust to a number of extensions, which include the product's user base evolving over time and consumers basing their choices on a mixture of a myopic and a "stubborn" expectation of adoption. Our results differ significantly from those that would be predicted by a model based on rational-expectations equilibrium and are more consistent with the pricing of network goods observed in practice.

  3. Bidding price analysis for competitive generators and large consumers

    International Nuclear Information System (INIS)

    Ping Wei; Luonan Chen; Hsiao Dong Chiang

    2005-01-01

    We present a new method to analyze the bidding price of each participant (power suppliers and large consumers) in a pay-as-bid market. The bidding price will be decomposed into a variety of components corresponding to five factors, such as the incremental values of the subject bidder's generation on the system operational costs, on the income or payment of other bidders, and on the binding tradable constraints, and the first-order approximation of the subjective participant's bidding price. From an economic viewpoint, each component provides useful information for participants to design the strategic planning. The advantages of the method include that the decomposition is well defined without assumptions and that each decomposition term has its own economical and/or engineering meaning. The proposed method is numerically verified through computer simulations on a three-bus example system and a modified IEEE 30-bus power system with both generator and large consumer bidding. (author)

  4. Pricing Policy in the Presence of Pro-environmental Consumers

    International Nuclear Information System (INIS)

    Salies, Evens

    2010-02-01

    In response to the climate change issue, many electric utilities introduce price schemes for inducing their customers to reduce electricity consumption. When a significant fraction of consumers find costly to save electricity, one would expect utilities to 'pay' them to use less electricity. This paper suggests a model that helps to understand why a typical electric utility may rather prefer to price discriminate against its pro-environmental customers, by increasing the price of electricity for these latter. This result holds even when the utility is charged for its greenhouse gas emissions. But in this case the price increase is sufficiently small so as to induce energy saving also from customers who have a positive cost of doing so. (author)

  5. The voluntary price for the small consumer: Real-time pricing in Spain

    International Nuclear Information System (INIS)

    Roldán Fernández, Juan Manuel; Payán, Manuel Burgos; Santos, Jesús Manuel Riquelme; García, Ángel Luis Trigo

    2017-01-01

    In 2013, a period of reform was initiated of the regulatory framework of the Spanish electricity sector. A year later, the methodology for the calculation of the Voluntary Price for the Small Consumer (VPSC) was approved: a real-time price tariff for small domestic consumers. Under this price-setting system, VPSC consumers are billed according to their hourly consumption and hourly prices along the day. Directive 27/2014/EU, on energy saving, was also transposed to Spanish regulation in 2014. The impact on the Spanish electricity market and domestic VPSC consumers of these two recent energy policy modifications are analyzed in this work. A qualitative model, based on the flexibility of the merit-order curves, is first introduced to formulate a number of hypotheses. A set of scenarios are then examined to quantify the main effects on the market and on domestic consumers. The results show that domestic energy-saving, and, to a lesser extent, load-shifting scenarios, can diminish the mean hourly price and the cost of the annual traded energy in the market. Nevertheless, these reductions are mainly granted to large qualified consumers, since domestic consumers mostly benefit from the reduction of their energy demand rather than from a reduction of the price. - Graphical abstract: Load saving and load-shifting performed by small VPSC consumers reduces the hourly clearing price and the traded energy leading to some rent transfer from the generators to the purchasing agents. The cost saving for VPSC consumers is mainly related to the energy they saved. They profit only partially from the market cost saving. - Highlights: • Merit-order effect related to energy saving and load-shifting are identified. • Domestic consumers are able to conduct energy saving and load-shifting at no cost. • Cyclic load-shifting reduces the traded energy and the economic cost in the market. • Rent transfer form generators to purchasing agents catalyzed by costumers’ saving.

  6. Joint Dynamic Pricing of Multiple Perishable Products Under Consumer Choice

    OpenAIRE

    Yalç{\\i}n Akçay; Harihara Prasad Natarajan; Susan H. Xu

    2010-01-01

    In response to competitive pressures, firms are increasingly adopting revenue management opportunities afforded by advances in information and communication technologies. Motivated by these revenue management initiatives in industry, we consider a dynamic pricing problem facing a firm that sells given initial inventories of multiple substitutable and perishable products over a finite selling horizon. Because the products are substitutable, individual product demands are linked through consume...

  7. Reference Pricing with Endogenous or Exogenous Payment Limits: Impacts on Insurer and Consumer Spending.

    Science.gov (United States)

    Brown, Timothy T; Robinson, James C

    2016-06-01

    Reference pricing (RP) theories predict different outcomes when reference prices are fixed (exogenous) versus being a function of market prices (MPs) (endogenous). Exogenous RP results in MPs at both high-price and low-price firms converging towards the reference price from above and below, respectively. Endogenous RP results in MPs at both high-price and low-price firms decreasing, with low-price firms acting strategically to decrease the reference price in order to gain market share. We extend these models to a hospital context focusing on insurer and consumer payments. Under exogenous RP, insurer and consumer payments to low-price hospitals increase, and insurer payments to high-price hospitals decrease, but predictions regarding consumer payments are ambiguous for high-price hospitals. Under endogenous RP, insurer payments to high-price and low-price hospitals decrease, and consumer payments to low-price hospitals decrease, but predictions regarding consumer payments are ambiguous for high-price hospitals. We test these predictions with difference-in-differences specifications using 2008-2013 data on patients undergoing joint replacement. For 2 years following RP implementation, insurer payments to high-price and low-price hospitals moved downward, consistent with endogenous RP. However, when the reference price was not reset to account for changes in MPs, insurer payments to low-price hospitals reverted to pre-implementation levels, consistent with exogenous RP. Copyright © 2015 John Wiley & Sons, Ltd. Copyright © 2015 John Wiley & Sons, Ltd.

  8. FUNGIBILITY AND CONSUMER CHOICE: EVIDENCE FROM COMMODITY PRICE SHOCKS*

    Science.gov (United States)

    Hastings, Justine S.; Shapiro, Jesse M.

    2015-01-01

    We formulate a test of the fungibility of money based on parallel shifts in the prices of different quality grades of a commodity. We embed the test in a discrete-choice model of product quality choice and estimate the model using panel microdata on gasoline purchases. We find that when gasoline prices rise consumers substitute to lower octane gasoline, to an extent that cannot be explained by income effects. Across a wide range of specifications, we consistently reject the null hypothesis that households treat “gas money” as fungible with other income. We compare the empirical fit of three psychological models of decision-making. A simple model of category budgeting fits the data well, with models of loss aversion and salience both capturing important features of the time series. PMID:26937053

  9. FUNGIBILITY AND CONSUMER CHOICE: EVIDENCE FROM COMMODITY PRICE SHOCKS.

    Science.gov (United States)

    Hastings, Justine S; Shapiro, Jesse M

    2013-11-01

    We formulate a test of the fungibility of money based on parallel shifts in the prices of different quality grades of a commodity. We embed the test in a discrete-choice model of product quality choice and estimate the model using panel microdata on gasoline purchases. We find that when gasoline prices rise consumers substitute to lower octane gasoline, to an extent that cannot be explained by income effects. Across a wide range of specifications, we consistently reject the null hypothesis that households treat "gas money" as fungible with other income. We compare the empirical fit of three psychological models of decision-making. A simple model of category budgeting fits the data well, with models of loss aversion and salience both capturing important features of the time series.

  10. The influence of price endings on consumer behavior: An application of the psychology of perception

    OpenAIRE

    Asamoah, Emmanuel Selase; Chovancová, Miloslava

    2011-01-01

    Price ending is an important pricing strategy that has been used by retailers over the years. The trend seems to be effective considering how consumers react especially to products with odd price endings. This review is aimed at providing an understanding of the psychological influences of price ending on buyers, using the theory of perception. It analysis theories and existing literature on the topic and brings out augmentative pricing strategies that retailers can adopt in consumer markets....

  11. An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods.

    OpenAIRE

    Kalyanaram, Gurumurthy; Little, John D C

    1994-01-01

    Scanner panel data analyses for sweetened and unsweetened drink categories (with four brands in each) support the presence of a region of price insensitivity around a reference price. The analyses also suggest that consumers with higher average reference price have a wider latitude of price acceptance. Consumers with a higher frequency of purchase (i.e., shorter average interpurchase time interval) are found to have a narrower latitude of price acceptance, because they are more aware of the r...

  12. The influence of price endings on consumer behaviour: an application of the psychology of perception

    OpenAIRE

    Emmanuel Selase Asamoah; Miloslava Chovancová

    2011-01-01

    Price ending is an important pricing strategy that has been used by retailers over the years. The trend seems to be effective considering how consumers react especially to products with odd price endings. This review is aimed at providing an understanding of the psychological influences of price ending on buyers, using the theory of perception. It analysis theories and existing literature on the topic and brings out augmentative pricing strategies that retailers can adopt in consumer markets....

  13. Consumer influence on retail prices of rice in Imo state of Nigeria ...

    African Journals Online (AJOL)

    Consumer influence on retail prices of rice in Imo state of Nigeria. ... Nigeria Agricultural Journal ... The study aimed at estimating consumers bargaining power and its effect on price flexibility of rice in the area. ... to retailers by educating consumers on technicality involved in marketing. ... AJOL African Journals Online.

  14. Causality relation between the producer price index and the consumer price index. Ecuador Case

    Directory of Open Access Journals (Sweden)

    Víctor Quinde Rosales

    2018-01-01

    Full Text Available The present document is an investigation with a type of inductive reasoning. It evaluated the relationship of causality between the producer price index (IPP, and the consumer price index (IPC in a period from January 1998 to December 2016. The unit root test Dickey-Fuller Augmented (DFA was used under an empirical- analytic paradigm, an autoregressive vector-VAR model was generated and the Granger causality test was performed. The results show a positive trend and seasonality in the data of the variables, a VAR model of two variables was obtained with a number of optimal remnants of fourteen VAR2 (14 to which the causality test was performed, demonstrating a bi - directionality of both indices.

  15. THE EFFECTS OF PRICE AND INCOMES ON CONSUMER DEMAND

    Directory of Open Access Journals (Sweden)

    Adrian Tănase

    2012-12-01

    Full Text Available The complexity of consumption can only be explained by identifying and analysing all the factors acting upon the carrier of demand, and in a given time and space, they have a higher or a lower importance, which makes it impossible to find a hierarchy. However, in societies characterized by a low standard of living, prices and incomes have a strong impact on consumer behaviour. Consequently, this paper approaches one of the most stringent issues, which interest specialists, governing bodies, mass-media and, last but not least, population. In the entire paper we analyse the population’s consumption, i.e. food, non-food products and services, by categories of households, from the economic, statistic and sociologic viewpoints. The paper ends with a brief presentation of conclusions and suggestions regarding the analysis and improvement of population’s consumption.

  16. Real-time pricing when some consumers resist in saving electricity

    International Nuclear Information System (INIS)

    Salies, Evens

    2013-01-01

    Successful real-time electricity pricing depends firstly upon consumers' willingness to subscribe to such terms and, secondly, on their ability to curb consumption levels. The present paper addresses both issues by considering consumers differentiated by their electricity saving costs, half of whom resist saving electricity. We demonstrate that when consumers are free to adopt real-time prices, producers prefer charging inefficient prices and, in so doing, discriminate against that portion of the consumer population which faces no saving costs. We also find that efficient marginal cost pricing is feasible, but is incompatible with mass adoption of real-time prices. - Highlights: • We model consumers switching from uniform to real-time electricity pricing (RTP). • Half the consumer population is pro-RTP and half resists saving electricity. • Efficient RTP is feasible but is incompatible with mass adoption

  17. An Empirical Investigation of Consumer Price Perception and Reputation Dimensions’ Effects on Attitude Toward Private Label Brands

    OpenAIRE

    Chen, Haidong; Sadeque, Saalem

    2007-01-01

    The study empirically investigated the effects of consumer price perception dimension and reputation dimension on attitude toward private label brands among young Swedish consumers. Consumer price perception dimension includes value consciousness, price consciousness, and price-quality association factors. Reputation dimension includes retailer’s reputation, existence of word-of-mouth (WOM), positive WOM, and negative WOM. Previous studies have found that factors under the consumer price perc...

  18. Consumer responses to time varying prices for electricity

    International Nuclear Information System (INIS)

    Thorsnes, Paul; Williams, John; Lawson, Rob

    2012-01-01

    We report new experimental evidence of the household response to weekday differentials in peak and off-peak electricity prices. The data come from Auckland, New Zealand, where peak residential electricity consumption occurs in winter for heating. Peak/off-peak price differentials ranged over four randomly selected groups from 1.0 to 3.5. On average, there was no response except in winter. In winter, participant households reduced electricity consumption by at least 10%, took advantage of lower off-peak prices but did not respond to the peak price differentials. Response varied with house and household size, time spent away from home, and whether water was heated with electricity. - Highlights: ► Seasonal effects in winter. ► High conservation effect from information. ► Higher peak prices no effect on peak use. ► Low off-peak prices encourage less conservation off-peak.

  19. The role of internal reference prices in consumers' willingness to pay judgments: Thaler's Beer Pricing Task revisited.

    Science.gov (United States)

    Ranyard, R; Charlton, J P; Williamson, J

    2001-02-01

    Alternative reference prices, either displayed in the environment (external) or recalled from memory (internal) are known to influence consumer judgments and decisions. In one line of previous research, internal reference prices have been defined in terms of general price expectations. However, Thaler (Marketing Science 4 (1985) 199; Journal of Behavioral Decision Making 12 (1999) 183) defined them as fair prices expected from specific types of seller. Using a Beer Pricing Task, he found that seller context had a substantial effect on willingness to pay, and concluded that this was due to specific internal reference prices evoked by specific contexts. In a think aloud study using the same task (N = 48), we found only a marginal effect of seller context. In a second study using the Beer Pricing Task and seven analogous ones (N = 144), general internal reference prices were estimated by asking people what they normally paid for various commodities. Both general internal reference prices and seller context influenced willingness to pay, although the effect of the latter was again rather small. We conclude that general internal reference prices have a greater impact in these scenarios than specific ones, because of the lower cognitive load involved in their storage and retrieval.

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

    International Nuclear Information System (INIS)

    Zarnikau, Jay; Fox, Marilyn; Smolen, Paul

    2007-01-01

    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)

  1. The pass through of oil prices into euro area consumer liquid fuel prices in an environment of high and volatile oil prices

    Energy Technology Data Exchange (ETDEWEB)

    Meyler, Aidan [European Central Bank, Frankfurt am Main (Germany)

    2009-11-15

    Crude and refined oil prices have been relatively high and volatile on a sustained basis since 1999. This paper considers the pass through of oil prices into consumer liquid (i.e. petrol, diesel and heating) fuel prices in such an environment. The pass through of oil prices into consumer liquid fuel prices has already been addressed extensively in the literature. Nonetheless much of this literature has either focused on the United States or on a time period when oil prices were relatively stable, or has used monthly data. The main contribution of this paper is a comprehensive combination of many features that have been considered before but rarely jointly. These features include: (1) the analysis of the euro area as an aggregate and a large number of countries (the initial 12 member states); (2) the consideration of different time periods; (3) the modelling of the data in raw levels rather than in log levels. This turns out to have important implications for our findings; (4) the use of high frequency (weekly) data, which, as results will suggest, are the lowest frequency one should consider; (5) the investigation of the different stages of the production chain from crude oil prices to retail distribution - refining costs and margins, distribution and retailing costs and margins; (6) the examination of prices including and excluding taxes - excise and value-added; (7) the modelling of prices for three fuel types - passenger car petrol and diesel separately and home heating fuel oil; (8) lastly we also address the issue of possible asymmetries, allowing for the pass through to vary according to (a) whether price are increasing or decreasing and (b) whether price levels are above or below their equilibrium level. The main findings are as follows: First, as distribution and retailing costs and margins have been broadly stable on average, the modelling of the relationship between consumer prices excluding taxes and upstream prices in raw levels rather than in

  2. The pass through of oil prices into euro area consumer liquid fuel prices in an environment of high and volatile oil prices

    International Nuclear Information System (INIS)

    Meyler, Aidan

    2009-01-01

    Crude and refined oil prices have been relatively high and volatile on a sustained basis since 1999. This paper considers the pass through of oil prices into consumer liquid (i.e. petrol, diesel and heating) fuel prices in such an environment. The pass through of oil prices into consumer liquid fuel prices has already been addressed extensively in the literature. Nonetheless much of this literature has either focused on the United States or on a time period when oil prices were relatively stable, or has used monthly data. The main contribution of this paper is a comprehensive combination of many features that have been considered before but rarely jointly. These features include: (1) the analysis of the euro area as an aggregate and a large number of countries (the initial 12 member states); (2) the consideration of different time periods; (3) the modelling of the data in raw levels rather than in log levels. This turns out to have important implications for our findings; (4) the use of high frequency (weekly) data, which, as results will suggest, are the lowest frequency one should consider; (5) the investigation of the different stages of the production chain from crude oil prices to retail distribution - refining costs and margins, distribution and retailing costs and margins; (6) the examination of prices including and excluding taxes - excise and value-added; (7) the modelling of prices for three fuel types - passenger car petrol and diesel separately and home heating fuel oil; (8) lastly we also address the issue of possible asymmetries, allowing for the pass through to vary according to (a) whether price are increasing or decreasing and (b) whether price levels are above or below their equilibrium level. The main findings are as follows: First, as distribution and retailing costs and margins have been broadly stable on average, the modelling of the relationship between consumer prices excluding taxes and upstream prices in raw levels rather than in

  3. Expression of irrationality in consumer behaviour: aspect of price perception

    OpenAIRE

    Banytė, Jūratė; Rutelionė, Aušra; Gadeikienė, Agnė; Belkevičiūtė, Justina

    2016-01-01

    Consumer decision-making and its determining factors have been analysed by a number of marketing researchers; however, the majority of studies concentrate on the rational approach. Although sporadic, recent theoretical and empirical studies reveal that researchers of consumer behaviour should also place considerable attention on the analysis of issues related to consumer irrationality. In order to disclose the expression of consumer irrationality in decision-making related to purchasing and c...

  4. 75 FR 49411 - Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability-Vessels and...

    Science.gov (United States)

    2010-08-13

    ... Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability--Vessels and Deepwater... ports to reflect significant increases in the Consumer Price Index. The amendment triggered information... interim rule entitled ``Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability...

  5. To consume or not. How oil prices affect the comovement of consumption and aggregate wealth

    International Nuclear Information System (INIS)

    Odusami, Babatunde Olatunji

    2010-01-01

    This paper provides insight into how oil price movements affect the consumption choices of U.S. households through the wealth channel. Lettau and Ludvigson (2001) show that while consumption, asset wealth, and labor income share a common long-term trend; they substantially deviate from one another in the short run. In this paper, I show that these transitory deviations can be explained by fluctuations in the price of crude oil. Linear and threshold multivariate autoregressive models are used to measure the oil price effect. Oil price effect on the consumption to aggregate wealth ratio is robust to monetary policy effect, sub-period effect, and econometric specifications of oil price effect. Generally speaking, higher (lower) oil price will lead to a decrease (increase) in the proportion of aggregate wealth consumed. In addition, the magnitude of the oil price effect is asymmetric and sub-period dependent. Oil price effect was higher before the 1980's than in succeeding periods. (author)

  6. Impact of Heterogeneous Consumers on Pricing Decisions under Dual-Channel Competition

    Directory of Open Access Journals (Sweden)

    Ying Wei

    2015-01-01

    Full Text Available This paper studies impact of heterogeneous consumer behavior on optimal pricing decisions under dual channel supply chain competition, which consists of one manufacturer and one retailer. The manufacturer is market leader with two sales channels: one is direct channel facing consumers directly and the other is indirect channel facing the retailer. Consumers decide whether to buy and from which channel to buy products. Purchasing decisions are based on considerations of prices posted on different channels, preference or loyalty to specific channels, and degree of rationality in decision-making process. Due to the complexity of heterogeneous consumer decision behavior, traditional mathematical analysis to the pricing problem becomes quite challenging. An agent-based modeling and simulation approach is then proposed and implemented. Simulation results reveal that consumer behavior influences both prices and profits. When consumers are increasingly loyal to the retailing channel, the retailer can make a higher selling price and more benefits. On the other hand, when consumers are increasingly loyal to the direct channel, the number of purchases from the direct channel increases and the manufacturer is better off. It is also interesting to note that as rationality level increases, selling prices for both channels slightly decrease.

  7. The influence of price endings on consumer behaviour: an application of the psychology of perception

    Directory of Open Access Journals (Sweden)

    Emmanuel Selase Asamoah

    2011-01-01

    Full Text Available Price ending is an important pricing strategy that has been used by retailers over the years. The trend seems to be effective considering how consumers react especially to products with odd price endings. This review is aimed at providing an understanding of the psychological influences of price ending on buyers, using the theory of perception. It analysis theories and existing literature on the topic and brings out augmentative pricing strategies that retailers can adopt in consumer markets. Also, an exploratory study was conducted to identify the prevalence of odd prices in the Czech retail sector. The exploratory study was based on 16 different home-drop advertising material, short magazines and leaflets by retails shops in the Zlin region. These leaflets, short magazines and home-drop advertising material were collected and analyzed over 3 month period to identify the dominance of odd and even pricing strategy (total number of advertisements = 922. Also, in order to have a comprehensive coverage of the odd-even pricing phenomenon, opinions of some buyers were sought on their perception of odd-pricing and how the odd-pricing influence their buying decisions. Opinions of a total of 173 shoppers were sampled. The study found clear evidence of the predominant use and preference by shoppers for odd prices compared to even prices in different product categories, especially fast moving consumer goods. The paper concludes by providing the marketing implications and suggestions on when odd and even price ending strategies should be used and for what category of products this strategy can be used. Also, the implications of price endings on marketing communication are highlighted.

  8. Estimation of Cost Pass Through to Michigan Consumers in the ADM Price Fixing Case

    OpenAIRE

    Cotterill, Ronald W.

    1998-01-01

    This report analyzes the economic impact of price fixing in the wet corn milling industry on consumers in the State of Michigan. Two of the companies who produce citric acid have pleaded guilty to fixing its price. In this report we assume that price fixing also occurred among HFCS producers. Given the structure of the corn wet milling industry and the direct purchaser industries, the overcharge is essentially uniform across buyers and selling arrangements. We develop an actual economic model...

  9. An integrated Markov decision process and nested logit consumer response model of air ticket pricing

    NARCIS (Netherlands)

    Lu, J.; Feng, T.; Timmermans, H.P.J.; Yang, Z.

    2017-01-01

    The paper attempts to propose an optimal air ticket pricing model during the booking horizon by taking into account passengers' purchasing behavior of air tickets. A Markov decision process incorporating a nested logit consumer response model is established to modeling the dynamic pricing process.

  10. A Bayesian Multi-Level Factor Analytic Model of Consumer Price Sensitivities across Categories

    Science.gov (United States)

    Duvvuri, Sri Devi; Gruca, Thomas S.

    2010-01-01

    Identifying price sensitive consumers is an important problem in marketing. We develop a Bayesian multi-level factor analytic model of the covariation among household-level price sensitivities across product categories that are substitutes. Based on a multivariate probit model of category incidence, this framework also allows the researcher to…

  11. Do the Scandinavian consumers pay a "fair" price for German white wines?

    DEFF Research Database (Denmark)

    Bentzen, Jan Børsen; Smith, Valdemar

    The aim of this paper is to analyse the retail prices of German white wines sold in the Scandinavian countries. German white wines account for approximately 5-6 per cent of the total sale of wines - both red and white wines - in Denmark, Norway and Sweden. However, the market shares of German wines...... in Scandinavia have been declining for a number of years. Diminishing market shares may reflect changes in consumer tastes or simply 'wrong' prices, the latter related to both the level of wine prices (German wines being relatively expensive) and the structure of wine prices. In general, country-specific price...... differences for identical wines are expected to be a sign of differences in taxes, import prices, transportation costs as well as other costs - and also different competitive conditions at the retail level in the respective countries. Differences in wine prices across countries do not always reflect...

  12. Effects of price manipulations on consumer behavior in sheltered workshop token economy.

    Science.gov (United States)

    Schroeder, S R; Barrera, F J

    1976-09-01

    The consumer behavior of institutionalized retarded clients in a sheltered workshop token economy were evaluated by changing prices in the workshop store. In the first experiment we found that clients displayed elasticity of demand in that raising the prices of frequently purchased goods reduced the frequency and amount spent on more expendable items. Results from the second experiment showed that this change in spending pattern was not due to the relative modal unit price of item classes. The regulation of demand for consumer goods is a potentially useful way to maintain economic balance and effectiveness of a token economy.

  13. Consumer preferences relative to the price and network capability of small urban vehicles

    Energy Technology Data Exchange (ETDEWEB)

    Burns, L.D.

    1979-09-01

    Preferences of consumers for small urban vehicle concepts differing only with respect to their hypothetical purchase prices and network capabilities (i.e., whether they are capable of operating on expressways, major arterials, or local streets) are analyzed using statistical techniques based on psychological scaling theories. Results from these analyses indicate that a vast majority of consumers are not readily willing to give up the accessibility provided by conventional automobiles. More specifically, over the range of hypothetical prices considered here, network capability dominates as a determinant of preferences for vehicle concepts. Also, the ability to operate vehicles on expressways is of utmost importance to consumers.

  14. How can big data enhance the timeliness of official statistics? The case of the US consumer price index

    NARCIS (Netherlands)

    Harchaoui, Tarek M.; Janssen, Robert V.

    2018-01-01

    The daily consumer price index (CPI) produced by the Billion Prices Project (BPP CPI) offers a glimpse of the direction taken by consumer price inflation in real time. This is in contrast to the official U.S. CPI, which is compiled monthly and released with an average of a three-week delay following

  15. Does PPP hold for Big Mac price or consumer price index? Evidence from panel cointegration

    OpenAIRE

    Chien-Fu Chen; Chung-Hua Shen; Chien-An Wang

    2007-01-01

    This paper examines the validity of purchasing power parity (PPP) using CPI and Big Mac prices. The benchmark model, i.e., the OLS method, which does not take nonstationarity into account, rejects the hypothesis of PPP regardless of prices used. We next use the panel cointegration method to consider the nonstationary nature of variables. Estimated results for CPI are mixed. The PPP is rejected when the nominal exchange rate is employed as the dependent variable but is not rejected when the pr...

  16. Consumer search and pricing behavior in Internet markets

    NARCIS (Netherlands)

    Janssen, Maarten C W; Moraga-González, José Luis; Wildenbeest, Matthijs R.

    2007-01-01

    Throughout economic history, changes in technology have had a substantial impact on consumers' search and transportation costs and, consequently, on the size of the relevant market. One example is the progressive decline in transportation costs that historically has taken place through the use of

  17. Toward crustacean without chemicals: a descriptive analysis of consumer response using price comparisons.

    Science.gov (United States)

    Okpala, Charles Odilichukwu R; Bono, Gioacchino; Pipitone, Vito; Vitale, Sergio; Cannizzaro, Leonardo

    2016-01-01

    To date, there seems to be limited-to-zero emphasis about how consumers perceive crustacean products subject to either chemical and or non-chemical preservative treatments. In addition, studies that investigated price comparisons of crustacean products subject to either chemical or chemical-free preservative methods seem unreported. This study focused on providing some foundational knowledge about how consumers perceive traditionally harvested crustaceans that are either chemical-treated and or free of chemicals, incorporating price comparisons using a descriptive approach. The study design employed a questionnaire approach via interview using a computer-assisted telephone system and sampled 1,540 participants across five key locations in Italy. To actualize consumer sensitivity, 'price' was the focus given its crucial role as a consumption barrier. Prior to this, variables such as demographic characteristics of participants, frequency of purchasing, quality attributes/factors that limit the consumption of crustaceans were equally considered. By price comparisons, consumers are likely to favor chemical-free (modified atmosphere packaging) crustacean products amid a price increase of up to 15%. But, a further price increase such as by 25% could markedly damage consumers' feelings, which might lead to a considerable number opting out in favor of either chemical-treated or other seafood products. Comparing locations, the studied variables showed no statistical differences ( p >0.05). On the contrary, the response weightings fluctuated across the studied categories. Both response weightings and coefficient of variation helped reveal more about how responses deviated per variable categories. This study has revealed some foundational knowledge about how consumers perceive traditionally harvested crustaceans that were either chemical-treated or subject to chemical-free preservative up to price sensitivity using Italy as a reference case, which is applicable to other parts

  18. Joint Decisions on Production and Pricing with Strategic Consumers for Green Crowdfunding Products

    Science.gov (United States)

    Chen, Yuting; Zhang, Rong

    2017-01-01

    Green crowdfunding is developing as a novel and popular transaction method, which can largely improve the efficiency of raising initial funds and selling innovative green products or services. In this paper, we explore the creator’s joint decisions regarding green crowdfunding products of different quality levels that can sufficiently satisfy consumer preferences. Firstly, considering the characteristics of a green crowdfunding product, we present four pricing strategies when substitutes exist. Then we propose the optimal pricing strategies to maximize the total profit for the creator under different circumstances, facing strategic and myopic consumers. Finally, for the heterogeneity of consumer valuations, we compare the total profits of the four pricing strategies under different values of the substitution coefficient to obtain the optimal pricing and product strategies under the coexistence of strategic and myopic consumers. According to the result, we find that when the fraction of high-type consumers and the gap between high and low valuations is big, or when they are both small, traditional single pricing shows its benefit. However, when the green crowdfunding products are better than their substitute, a line of green products is more likely to be optimal. PMID:28930198

  19. Joint Decisions on Production and Pricing with Strategic Consumers for Green Crowdfunding Products

    Directory of Open Access Journals (Sweden)

    Yuting Chen

    2017-09-01

    Full Text Available Green crowdfunding is developing as a novel and popular transaction method, which can largely improve the efficiency of raising initial funds and selling innovative green products or services. In this paper, we explore the creator’s joint decisions regarding green crowdfunding products of different quality levels that can sufficiently satisfy consumer preferences. Firstly, considering the characteristics of a green crowdfunding product, we present four pricing strategies when substitutes exist. Then we propose the optimal pricing strategies to maximize the total profit for the creator under different circumstances, facing strategic and myopic consumers. Finally, for the heterogeneity of consumer valuations, we compare the total profits of the four pricing strategies under different values of the substitution coefficient to obtain the optimal pricing and product strategies under the coexistence of strategic and myopic consumers. According to the result, we find that when the fraction of high-type consumers and the gap between high and low valuations is big, or when they are both small, traditional single pricing shows its benefit. However, when the green crowdfunding products are better than their substitute, a line of green products is more likely to be optimal.

  20. Joint Decisions on Production and Pricing with Strategic Consumers for Green Crowdfunding Products.

    Science.gov (United States)

    Chen, Yuting; Zhang, Rong; Liu, Bin

    2017-09-20

    Green crowdfunding is developing as a novel and popular transaction method, which can largely improve the efficiency of raising initial funds and selling innovative green products or services. In this paper, we explore the creator's joint decisions regarding green crowdfunding products of different quality levels that can sufficiently satisfy consumer preferences. Firstly, considering the characteristics of a green crowdfunding product, we present four pricing strategies when substitutes exist. Then we propose the optimal pricing strategies to maximize the total profit for the creator under different circumstances, facing strategic and myopic consumers. Finally, for the heterogeneity of consumer valuations, we compare the total profits of the four pricing strategies under different values of the substitution coefficient to obtain the optimal pricing and product strategies under the coexistence of strategic and myopic consumers. According to the result, we find that when the fraction of high-type consumers and the gap between high and low valuations is big, or when they are both small, traditional single pricing shows its benefit. However, when the green crowdfunding products are better than their substitute, a line of green products is more likely to be optimal.

  1. 75 FR 750 - Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability-Vessels and...

    Science.gov (United States)

    2010-01-06

    ... historical record of annual changes in the CPI-U (the Consumer Price Index--All Urban Consumers, Not...-AB25 Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability--Vessels and... final rule, without change, an interim rule published on July 1, 2009. The interim rule increased the...

  2. Aggregate industrial energy consumer response to wholesale prices in the restructured Texas electricity market

    International Nuclear Information System (INIS)

    Zarnikau, Jay; Hallett, Ian

    2008-01-01

    The aggregate response of consumers to wholesale price signals is very limited in the restructured Electric Reliability Council of Texas (ERCOT) market. An overall average own-price elasticity of demand of - 0.000008 for industrial energy consumers served at transmission voltage is estimated using a Symmetric Generalized McFadden cost function model. To date, ERCOT has sought to promote demand response to price signals without reliance on 'stand alone' demand response programs, but with a market structure that is designed to facilitate economic demand response. This very limited responsiveness to wholesale price signals may prove problematic in light of policy decisions to pursue an 'energy only' resource adequacy mechanism for ERCOT. (author)

  3. Pricing and Timing Strategies for New Product Using Agent-Based Simulation of Behavioural Consumers

    OpenAIRE

    Keeheon Lee; Hoyeop Lee; Chang Ouk Kim

    2014-01-01

    In this study, we are interested in the problem of determining the pricing and timing strategies of a new product by developing an agent-based product diffusion simulation. In the proposed simulation model, agents imitate behavioural consumers, who are reference dependent and risk averse in the evaluation of new products and whose interactions create word-of-mouth regarding new products. Pricing and timing strategies involve the timing of a new product release, the timing of providing a disco...

  4. Rushing into American Dream? House Prices, Timing of Homeownership, and Adjustment of Consumer Credit

    OpenAIRE

    Agarwal, Sumit; Hu, Luojia; Huang, Xing

    2013-01-01

    In this paper we use a large panel of individuals from Consumer Credit Panel dataset to study the timing of homeownership as a function of credit constraints and expectations of future house price. Our panel data allows us to track individuals over time and we model the transition probability of their first home purchase. We find that in MSAs with highest quartile house price growth, the median individual become homeowners earlier by 5 years in their lifecycle compared to MSAs with lowest qua...

  5. Using Electroencephalogram (EEG to Understand The Effect of Price Perception on Consumer Preference

    Directory of Open Access Journals (Sweden)

    Fitri Aprilianty

    2016-06-01

    Full Text Available The research examines the influence of price as product cues on consumer’s perception and evaluation by using the application of electroencephalogram (EEG. This method can give objective information about consumer reactions towards product cues that will drive consumer’s choice. The main research objective was to observe and evaluate consumer’s brain activity in different brain regions while they were being exposed by several price levels (low, medium, high of underwear as stimuli and focused mainly on liking/disliking the stimuli. The participants consist of 10 female and 10 male consumers within 18-24 years old, have normal vision, right handed, and considered as potential purchasers of underwear. The participant’s brain activity was collected using Emotiv EPOC neuroheadset (EEG with international 10/20 system and was obtained in Beta frequency bands (13–30 Hz. The result indicated that there was a clear and significant change (p<0.05 in the EEG brain spectral activities of right and left hemisphere in the frontal (F3 & F4, temporal (T7 & T8, and parietal (P7 & P8 regions when participants indicated their attentiveness towards each price level stimulus. The results show, the male and female participant’s tactile sensations in parietal lobe does not give more favorable attention towards particular price stimulus, but the difference price perceptions in parietal lobe can lead to rational preference and give most favored response towards high price stimulus. Analyzing of price perception may help to understand the differences in price-related emotions and preference, which can gain insights into an alternative pricing strategy that can lead to influence consumers buying decision.

  6. Willingness to Overpay for Insurance and for Consumer Credit: Search and Risk Behavior Under Price Dispersion

    Directory of Open Access Journals (Sweden)

    Sergey MALAKHOV

    2014-11-01

    Full Text Available When income growth under price dispersion reduces the time of search and raises prices of purchases, the increase in purchase price can be presented as the increase in the willingness to pay for insurance or the willingness to pay for consumer credit. The optimal consumer decision represents the trade-off between the propensity to search for beneficial insurance or consumer credit, and marginal savings on insurance policy or consumer credit. Under price dispersion the indirect utility function takes the form of cubic parabola, where the risk aversion behavior ends at the saddle point of the comprehensive insurance or the complete consumer credit. The comparative static analysis of the saddle point of the utility function discovers the ambiguity of the departure from risk-neutrality. This ambiguity can produce the ordinary risk seeking behavior as well as mathematical catastrophes of Veblen-effect’s imprudence and over prudence of family altruism. The comeback to risk aversion is also ambiguous and it results either in increasing or in decreasing relative risk aversion. The paper argues that the decreasing relative risk aversion comes to the optimum quantity of money.

  7. Forecasting inflation based on the consumer price index, taking into account the impact of seasonal factors

    Directory of Open Access Journals (Sweden)

    A. K. Sapova

    2017-01-01

    Full Text Available The consumer price index is a key indicator of the inflation level in Russia. It is important for the Central Bank and Government in decision-making process. There is a strong need for high-quality analysis and accurate forecast of this index. Modelling and forecasting of consumer price index as a key indicator of inflation are relevant issues in current macroeconomic conditions. The article is dedicated to development of quality short-term forecast of consumer inflation level, with the impact of seasonal factor. Two classes of models (vector autoregression and time series models are considered. It was shown that vector autoregression model of the dependency between consumer price index and nominal effective exchange rate is worse for the proposes of inflation forecast then non-linear model with structural components and conventional heteroscedasticity. The practical significance of this work is that the developed approach to the forecasting of the consumer price index adjusted of seasonal factor can be very helpful for the purpose of proper assessment and regulation of inflation.

  8. Toward crustacean without chemicals: a descriptive analysis of consumer response using price comparisons

    Directory of Open Access Journals (Sweden)

    Charles Odilichukwu R. Okpala

    2016-10-01

    Full Text Available Background: To date, there seems to be limited-to-zero emphasis about how consumers perceive crustacean products subject to either chemical and or non-chemical preservative treatments. In addition, studies that investigated price comparisons of crustacean products subject to either chemical or chemical-free preservative methods seem unreported. Objective: This study focused on providing some foundational knowledge about how consumers perceive traditionally harvested crustaceans that are either chemical-treated and or free of chemicals, incorporating price comparisons using a descriptive approach. Design: The study design employed a questionnaire approach via interview using a computer-assisted telephone system and sampled 1,540 participants across five key locations in Italy. To actualize consumer sensitivity, ‘price’ was the focus given its crucial role as a consumption barrier. Prior to this, variables such as demographic characteristics of participants, frequency of purchasing, quality attributes/factors that limit the consumption of crustaceans were equally considered. Results: By price comparisons, consumers are likely to favor chemical-free (modified atmosphere packaging crustacean products amid a price increase of up to 15%. But, a further price increase such as by 25% could markedly damage consumers’ feelings, which might lead to a considerable number opting out in favor of either chemical-treated or other seafood products. Comparing locations, the studied variables showed no statistical differences (p>0.05. On the contrary, the response weightings fluctuated across the studied categories. Both response weightings and coefficient of variation helped reveal more about how responses deviated per variable categories. Conclusions: This study has revealed some foundational knowledge about how consumers perceive traditionally harvested crustaceans that were either chemical-treated or subject to chemical-free preservative up to price

  9. [The price-based certainty of purchase influences consumer behavior for discount].

    Science.gov (United States)

    Arihara, Katsuhiko; Ariga, Atsunori; Furuya, Takeshi

    2016-04-01

    Tversky & Kahneman (1981) reported that most participants decided to drive when they could save money on a low-price good as compared to when they could save on a high-price good, even though the discount prices were same. Although this irrational decision making has been interpreted as a rate-dependent estimation of value (prospect theory), this study newly proposes that it can be explained by the certainty of purchase based on the price of goods. Experiment 1 replicated the previously reported difference in decision making, and additionally demonstrated that participants' certainty of purchase was lower for a high- than a low-price good. When it was emphasized that participants' intention to purchase high- and low-price goods were equally sure, decision making did not significantly differ (Experiment 2). Furthermore, decision making differed based only on the certainty of purchase even,when prices of goods were-same (Experiment 3). Consumers' decision making may be rather rational, depending straightforwardly on the certainty of purchase that is susceptible to price.

  10. Dynamic Pricing Based on Strategic Consumers and Substitutes in a Duopoly Setting

    Directory of Open Access Journals (Sweden)

    Gongbing Bi

    2014-01-01

    Full Text Available Based on the rational strategic consumers, we construct a dynamic game to build a two-period dynamic pricing model for two brands of substitutes which are sold by duopoly. The solution concept of the dynamic game is Nash equilibrium. In our model, consumers have been clearly segmented into several consumption classes, according to their expected value of the products. The two competing firms enter a pricing game and finally reach the state of Nash equilibrium. In addition, decision-making process with only myopic consumers existing in the market is analyzed. To make the paper more practical and realistic, the condition, in which the myopic and strategic consumers both exist in the market, is also considered and studied. In order to help the readers understand better and make it intuitively more clearly, a numerical example is given to describe the influence of the main parameters to the optimal prices. The result indicates that, to maintain the firms’ respective optimal profits, the prices of the products should be adjusted appropriately with the changes of product differentiation coefficient.

  11. Inflation and changes in output and consumer prices of food in Nigeria

    African Journals Online (AJOL)

    The main objective of this study is to identify relationship between inflation, food production and changes in consumer prices of food in Nigeria. This study was carried out in the context of a macro-econometric model, which recognizes the inter-relationship among inflation and agricultural production. The study covered the ...

  12. Overcoming consumer biases in the choice of pricing schemes: a lab experiment

    Czech Academy of Sciences Publication Activity Database

    Shestakova, Natalia

    -, č. 418 (2010), s. 1-42 ISSN 1211-3298 R&D Projects: GA MŠk LC542 Grant - others:GA UK(CZ) 60010 Institutional research plan: CEZ:MSM0021620846 Keywords : heuristics * price discrimination * consumers' choice Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp418.pdf

  13. Contract mechanisms for coordinating pricing strategies in a supply chain with two consumer segments

    NARCIS (Netherlands)

    Nalla, V.R.; Venugopal, V.; Veen, van der J.A.A.

    2009-01-01

    This paper addresses pricing strategies in a serial supply chain (SC) consisting of a single Buyer, a single Supplier and where the end-consumers are comprised of two segments, each with a different willingness-to-pay. Under the assumption that the final demand and the segments’ willingness-to-pay

  14. Profiling the high frequency wine consumer by price segmentation in the US market

    Directory of Open Access Journals (Sweden)

    Liz Thach

    2015-06-01

    Full Text Available Heavy users of consumer products are important to marketers as a profitable target segment. This is equally true in the wine industry, but with the added precaution of encouraging responsible consumption. This study examines the attributes and behaviors of 681 high frequency (heavy-user wine consumers in the US, based on a price segmentation of High, Moderate, and Low Spenders. For this study, price segmentation was defined as the price typically paid for a bottle of wine for home consumption. Significant differences were discovered based on gender, age, income, wine involvement, shopping channel, ecommerce/social media usage and other key areas. Implications for marketing managers as well as areas of future research are described.

  15. A Bayesian negotiation model for quality and price in a multi-consumer context

    International Nuclear Information System (INIS)

    Rufo, M.J.; Martín, J.; Pérez, C.J.

    2016-01-01

    Bayesian decision theory plays a significant role in a large number of applications that have as main aim decision making. At the same time, negotiation is a process of making joint decisions that has one of its main foundations in decision theory. In this context, an important issue involved in industrial and commercial applications is product reliability/quality demonstration. The goal is, among others, product commercialization with the best possible price. This paper provides a Bayesian sequential negotiation model in the context of sale of a product based on two characteristics: product price and reliability/quality testing. The model assumes several parties, a manufacturer and different consumers, who could be considered adversaries. In addition, a general setting for which the manufacturer offers a product batch to the consumers is taken. Both the manufacturer and the consumers have to use their prior beliefs as well as their preferences. Sometimes, the model will require to update the previous beliefs. This can be made through the corresponding posterior distribution. Anyway, the main aim is that at least one consumer accepts the product batch based on either product price or product price and reliability/quality. The general model is solved from the manufacturer viewpoint. Thus a general approach that allows us to calculate an optimal price and sample size for testing is provided. Finally, two applications show how the proposed technique can be applied in practice. - Highlights: • A general sequential Bayesian model of decision has been developed. • Product price and reliability/quality testing have been considered. • An original approach is implemented in order to obtain appropriate optimal values. • Distributions widely used in reliability and quality contexts have been taken.

  16. Cooperative consumers in a deregulated electricity market - dynamic consumption strategies and price coordination

    Energy Technology Data Exchange (ETDEWEB)

    Haemaelaeinen, R.P.; Maentysaari, J. [Helsinki Univ. of Technology (Finland). Systems Analysis Lab.; Ruusunen, J. [Fortum Power and Heat Inc. (Finland); Pineau, P.O. [Helsinki Univ. of Technology (Finland). Systems Analysis Lab.; Ecole des Hautes Etudes Commerciales, Monteal , Quebec (Canada)

    2000-09-01

    As the trend in electricity markets is strongly towards deregulation, new players, new rules and new behaviors will continue to emerge. One of the new developments on the demand side is purchases made by a coalition of consumers. It seems indeed likely that in the future this will be more common, and that coalitions of consumers will emerge when they are worthwhile. The aim of this paper is to study how such an organization of consumers can be set up in a hierarchical framework. This new approach has not been described before in the deregulated electricity markets but is clearly an important research topic. We focus our interest on electric space heating, which is an energy need especially important in the Nordic countries such as Finland. We examine the consumption strategies of individual electricity buyers within a coalition. The decision problem all consumers face is to find the optimal use of their space heating system with respect to changes in electricity prices and to their tolerance to indoor temperature variation. A mathematical model for this problem is defined. Physical parameters of sample houses were gathered from an experimental field test conducted in Helsinki during the winter of 1996. The coalition buys in the market at marginal cost. However, as marginal cost pricing may not always fulfill metering and communication needs of the members of the coalition, we consider Time-Of-Use (TOU) pricing within the coalition. Different groups of consumer behavior are constructed to simulate this coalition. The optimal marginal price is used as a reference point to estimate the nearest TOU price within the coalition. (author)

  17. Consumers' choice of drinking water: Is it dependent upon perceived quality, convenience, price and attitude?

    Science.gov (United States)

    Wahid, Nabsiah Abdul; Cheng, Patrick Tan Foon; Abustan, Ismail; Nee, Goh Yen

    2017-10-01

    Tap water is one of the many sources of water that the public as consumers can choose for drinking. This study hypothesized that perceived quality, convenience, price and environmental attitude would determine consumers's choice of drinking water following the Attribution Theory as the underlying model. A survey was carried out on Malaysia's public at large. From 301 usable data, the PLS analysis revealed that only perceived quality, convenience and price attributed towards the public's choice of drinking water while attitude was not significant. The findings are beneficial for the water sector industry, particularly for drinking water operators, state governments, and alternative drinking water manufacturers like bottled water companies. The ability to identify factors for why consumers in the marketplace choose the source of their drinking water would enable the operators to plan and strategize tactics that can disseminate accurate knowledge about the product that can motivate marketability of drinking water in Malaysia.

  18. Determining consumer purchase intentions: the importance of dry matter, size, and price of kiwifruit.

    Science.gov (United States)

    Jaeger, Sara R; Harker, Roger; Triggs, Chris M; Gunson, Anne; Campbell, Rachel L; Jackman, Richard; Requejo-Jackman, Cecilia

    2011-04-01

    Knowledge of the relative importance of food quality attributes in determining consumer purchase intention is critical for robust assessment of economic opportunities for industry growth. The aim of this study is to demonstrate how conjoint analysis methodology that incorporates tasting of fruit can be used to collect such information. Three hundred Japanese consumers took part in research designed to measure the importance of dry matter (DM), size, and price of kiwifruit (Actinidia deliciosa "Hayward" and Actinidia chinensis "Hort16A") for purchase intention. Measurement of consumer liking for kiwifruit of different DM content was a key first step. Liking increased as DM increased and was accompanied by increased purchase likelihood/choice probability for kiwifruit. The size of kiwifruit presented to consumers varied from "small" to "extra large." Consumers liked "mid-sized" kiwifruit over "small" or "extra-large" kiwifruit. Despite these differences in liking, size was of little importance in determining purchase likelihood/choice probability for kiwifruit. Price was a very important factor in determining purchase likelihood/choice probability but was less important than DM content. As price increased, purchase likelihood/choice probability decreased. Beneath these general findings, heterogeneity existed. Some consumers placed more/less importance on the focal purchase drivers than suggested by the aggregate model. Overall, the results suggest that incentive schemes already implemented by industry should consider rewarding high-DM fruit more than fruit size.   This research has contributed to the New Zealand kiwifruit industry gaining a better understanding of the relative importance consumers place on DM, size, and price of kiwifruit and has resulted in changes to grower incentive schemes. The research approach presented forces consumer to tradeoff attributes of kiwifruit against each other and decide on how important two key quality attributes-DM and

  19. THE INFLUENCE OF PRICES AND INCOME ON CONSUMER BEHAVIOUR OF THE POPULATION. THE CASE OF ROMANIA

    Directory of Open Access Journals (Sweden)

    Anghelina Andrei

    2012-12-01

    Full Text Available The recession influenced the consummers in their biggest concern – their income. In the same time the recession changed some important trends in consume. In this paperwork the authors intend to determine how strong the influence of prices and incomes of the population is on the consumer behavior, especially in Romania. Also the author want to present the case study of Romania concerning the recession of economy and some new aspects of consumer behavior. There is a strong conexion between the income and consume and the time of recession show it in the best way. In this way the author did some research on the market and by some analyses in a statistical editor we conclude that there is a strong determination in the consumer behavior by the income of the population especially in Romania, a country with a developing economy.

  20. Price reactions when consumers are concerned about pro-social reputation

    DEFF Research Database (Denmark)

    Kahsay, Goytom Abraha; Andersen, Laura Mørch; Hansen, Lars Gårn

    In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a ‘fair trade’ or ‘organic’ certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-......-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk....

  1. Consumer behaviour towards price-reduced suboptimal foods in the supermarket and the relation to food waste in households.

    Science.gov (United States)

    Aschemann-Witzel, Jessica; Jensen, Jacob Haagen; Jensen, Mette Hyldetoft; Kulikovskaja, Viktorija

    2017-09-01

    To combat food waste, supermarkets offer food items at a reduced price in-store when they are close to the expiration date or perceived as suboptimal. It is yet unknown, however, which considerations consumers engage in when deciding about the offer, and whether focusing particularly on the price during food purchase might be related to greater food waste at home. Knowledge about both the consumers' food purchase process for these price-reduced foods and the potential wastage of price-focused consumers can contribute to the assessment of whether or not offering suboptimal food at reduced prices in-store actually reduces food waste across the supply chain. We explore these questions in a mixed-method study including 16 qualitative accompanied shopping interviews and a quantitative online experimental survey with 848 consumers in Denmark. The interviews reveal that the consumers interviewed assess their ability to consume the price-reduced suboptimal food at home already while in the store. Consumers consider the relation between product-related factors of package unit, expiration date, and product quality, in interaction with household-related factors of freezing/storing, household size/demand, and possible meal/cooking. The survey shows that consumers who are more price-focused report lower food waste levels and lower tendency to choose the optimal food item first at home, than those who are not emphasizing the price-quality relation or do not search for price offers to the same extent. Higher age and high education also played a role, and the price-focus is lower in high-income groups and among single households. The findings allow deriving recommendations for retailers and policy makers to support both the marketability and the subsequent actual consumption of price-reduced suboptimal food, but they also raise questions for further research of this underexplored area. Copyright © 2017 Elsevier Ltd. All rights reserved.

  2. Beyond customer perception of price discrimination: A consumer behavior analysis and its implications on aviation revenue management

    OpenAIRE

    Kusch, Katharina

    2016-01-01

    The purpose of this paper is to assess consumer behavior in the airline industry from a perspective beyond the effects of price discrimination. First the consequences of dynamic pricing will be assessed before looking at the role of social media and offline social influences, consumer satisfaction and airline equilibrium networks and their effects on consumer loyalty. Final implications on aviation revenue management will be drawn.

  3. Price and Service Competition of Dual-Channel Supply Chain with Consumer Returns

    Directory of Open Access Journals (Sweden)

    Lili Ren

    2014-01-01

    Full Text Available Products returned by consumers are common in the retail industry and result in additional costs to both the manufacturer and the retailer. This paper proposes dual-channel supply chain models involving consumer returns policies. Also, the price and service competition between retail channel and direct channel is considered in the models. According to the models, we analyze the optimal decisions in both centralized and decentralized scenarios. Then we design a new contract, coordinate the dual-channel supply chain, and enable both the retailer and the manufacturer to be a win-win.

  4. A Data-Driven Bidding Model for a Cluster of Price-Responsive Consumers of Electricity

    DEFF Research Database (Denmark)

    Saez Gallego, Javier; Morales González, Juan Miguel; Zugno, Marco

    2016-01-01

    This paper deals with the market-bidding problem of a cluster of price-responsive consumers of electricity. We develop an inverse optimization scheme that, recast as a bilevel programming problem, uses price-consumption data to estimate the complex market bid that best captures the price......-response of the cluster. The complex market bid is defined as a series of marginal utility functions plus some constraints on demand, such as maximum pick-up and drop-off rates. The proposed modeling approach also leverages information on exogenous factors that may influence the consumption behavior of the cluster, e...... can be largely captured in the form of a complex market bid, so that this could be ultimately used for the cluster to participate in the wholesale electricity market....

  5. The Low Cost Airline Consumer Price Sensitivity. An Investigation on The Mediating Role of Promotion and Trust in Brand

    Directory of Open Access Journals (Sweden)

    Janfry Sihite

    2014-12-01

    Full Text Available The ASEAN Open Sky Policy is one of ASEAN policy to open the airspace between the ASEAN member countries. Aviation services based companies including the Low Cost airlines will experience tight com-petition among ASEAN airline companies. This research aim to explore the effect of price on customer loyalty through the mediating role of promotion and trust in brand. The original sample collected from 100 Indonesian low-cost airline Citilink consumer that just arrived in Soekarno-Hatta International Airport, the bootstrapped techniques conducted for 500 sub-samples and further analyzed with structural equation modelling partial least square. The research findings support the low cost airline consumer price sensitivity, furthermore price affect the trust in brand more severe compared with the promotion. Price effect fully mediated through the trust in brand and promotion toward the consumer loyalty. Further research should consider the sensitivity of price to elaborate the decision making process for the low cost airline consumer.

  6. Value for money or making the healthy choice: the impact of proportional pricing on consumers' portion size choices.

    Science.gov (United States)

    Vermeer, Willemijn M; Alting, Esther; Steenhuis, Ingrid H M; Seidell, Jacob C

    2010-02-01

    Large food portion sizes are determinants of a high caloric intake, especially if they have been made attractive through value size pricing (i.e. lower unit prices for large than for small portion sizes). The purpose of the two questionnaire studies that are reported in this article was to assess the impact of proportional pricing (i.e. removing beneficial prices for large sizes) on people's portion size choices of high caloric food and drink items. Both studies employed an experimental design with a proportional pricing condition and a value size pricing condition. Study 1 was conducted in a fast food restaurant (N = 150) and study 2 in a worksite cafeteria (N = 141). Three different food products (i.e. soft drink, chicken nuggets in study 1 and a hot meal in study 2) with corresponding prices were displayed on pictures in the questionnaire. Outcome measures were consumers' intended portion size choices. No main effects of pricing were found. However, confronted with proportional pricing a trend was found for overweight fast food restaurant visitors being more likely to choose small portion sizes of chicken nuggets (OR = 4.31, P = 0.07) and less likely to choose large soft drink sizes (OR = 0.07, P = 0.04). Among a general public, proportional pricing did not reduce consumers' size choices. However, pricing strategies can help overweight and obese consumers selecting appropriate portion sizes of soft drink and high caloric snacks. More research in realistic settings with actual behaviour as outcome measure is required.

  7. Micro-energy markets: The role of a consumer preference pricing strategy on microgrid energy investment

    International Nuclear Information System (INIS)

    Faber, Isaac; Lane, William; Pak, Wayne; Prakel, Mary; Rocha, Cheyne; Farr, John V.

    2014-01-01

    The fragility of the modern electrical grid is exposed during random events such as storms, sporting events and often simply routine operation. Even with these obvious flaws large utilities and governments have been slow to create robust solutions due to the need of large capital investments required to address the issues. In this light creative economic and engineering solutions are desired to finance the needed upgrades. Driven by the requirement to have uninterrupted power that meets customers desires this research focuses on linking consumer preferences to a type of energy source in order to best fulfill stakeholder priorities. This approach is in contrast to the current and prevalent lowest cost methods to producing and consuming energy. This research yields a preliminary ‘micro-energy market’ that consists of an energy network architecture, pricing methodology and mathematical template which quantifies potential economic inefficiencies. If exploited these inefficiencies could be used to fund investment into various energy sources that provide unmet needs such as reduced carbon footprint, renewable, quality, and local production. These inefficiencies can be best exploited within the structure of a microgrid. Identification of opportunities on this smaller scale can provide an incentive for producers to develop a robust set of production facilities of varying size and characteristics to meet the consumer preferences. A stochastic optimization model of a microgrid implementation for a small military installation is used to evaluate the effects of this pricing methodology. The energy production of the resulting microgrid would be optimized to meet consumer preferences and minimize economic inefficiency. - Highlights: • This research focuses on linking consumer preferences to a type of energy source. • Pricing methodology quantifies strategic investments in alternative sources. • Inefficiencies could be used to fund investment into various energy sources

  8. Food prices and consumer demand: differences across income levels and ethnic groups.

    Directory of Open Access Journals (Sweden)

    Cliona Ni Mhurchu

    Full Text Available BACKGROUND: Targeted food pricing policies may improve population diets. To assess their effects on inequalities, it is important to determine responsiveness to price changes across income levels and ethnic groups. OBJECTIVE: Our goal was to estimate price elasticity (PE values for major commonly consumed food groups in New Zealand, by income and ethnicity. PE values represent percentage change in demand associated with 1% change in price of that good (own-PE or another good (cross-PE. DESIGN: We used food expenditure data from national household economic surveys in 2007/08 and 2009/10 and Food Price Index data from 2007 and 2010. Adopting an Almost Ideal Demand System approach, own-PE and cross-PE estimates were derived for 24 food categories, household income quintiles, and two ethnic groups (Māori and non-Māori. RESULTS: Own-PE estimates (with two exceptions ranged from -0.44 to -1.78. Cross-PE estimates were generally small; only 31% of absolute values were greater than 0.10. Excluding the outlier 'energy drinks', nine of 23 food groups had significantly stronger own-PEs for the lowest versus highest income quintiles (average regression-based difference across food groups -0.30 (95% CI -0.62 to 0.02. Six own-PEs were significantly stronger among Māori; the average difference for Māori: non-Māori across food groups was -0.26 (95% CI -0.52 to 0.00. CONCLUSIONS: Food pricing policies have potential to improve population diets. The greater sensitivity of low-income households and Māori to price changes suggests the beneficial effects of such policies on health would be greatest for these groups.

  9. Food Prices and Consumer Demand: Differences across Income Levels and Ethnic Groups

    Science.gov (United States)

    Ni Mhurchu, Cliona; Eyles, Helen; Schilling, Chris; Yang, Qing; Kaye-Blake, William; Genç, Murat; Blakely, Tony

    2013-01-01

    Background Targeted food pricing policies may improve population diets. To assess their effects on inequalities, it is important to determine responsiveness to price changes across income levels and ethnic groups. Objective Our goal was to estimate price elasticity (PE) values for major commonly consumed food groups in New Zealand, by income and ethnicity. PE values represent percentage change in demand associated with 1% change in price of that good (own-PE) or another good (cross-PE). Design We used food expenditure data from national household economic surveys in 2007/08 and 2009/10 and Food Price Index data from 2007 and 2010. Adopting an Almost Ideal Demand System approach, own-PE and cross-PE estimates were derived for 24 food categories, household income quintiles, and two ethnic groups (Māori and non-Māori). Results Own-PE estimates (with two exceptions) ranged from −0.44 to −1.78. Cross-PE estimates were generally small; only 31% of absolute values were greater than 0.10. Excluding the outlier ‘energy drinks’, nine of 23 food groups had significantly stronger own-PEs for the lowest versus highest income quintiles (average regression-based difference across food groups −0.30 (95% CI −0.62 to 0.02)). Six own-PEs were significantly stronger among Māori; the average difference for Māori: non-Māori across food groups was −0.26 (95% CI −0.52 to 0.00). Conclusions Food pricing policies have potential to improve population diets. The greater sensitivity of low-income households and Māori to price changes suggests the beneficial effects of such policies on health would be greatest for these groups. PMID:24098408

  10. Social Security cost-of-living adjustments and the Consumer Price Index.

    Science.gov (United States)

    Burdick, Clark; Fisher, Lynn

    2007-01-01

    OASDI benefits are indexed for inflation to protect beneficiaries from the loss of purchasing power implied by inflation. In the absence of such indexing, the purchasing power of Social Security benefits would be eroded as rising prices raise the cost of living. By statute, cost-of-living adjustments (COLAs) for Social Security benefits are calculated using the Bureau of Labor Statistics (BLS) Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Some argue that this index does not accurately reflect the inflation experienced by the elderly population and should be changed to an elderly-specific price index such as the Experimental Consumer Price Index for Americans 62 Years of Age and Older, often referred to as the Consumer Price Index for the Elderly (CPI-E). Others argue that the measure of inflation underlying the COLA is technically biased, causing it to overestimate changes in the cost of living. This argument implies that current COLAs tend to increase, rather than merely maintain, the purchasing power of benefits over time. Potential bias in the CPI as a cost-of-living index arises from a number of sources, including incomplete accounting for the ability of consumers to substitute goods or change purchasing outlets in response to relative price changes. The BLS has constructed a new index called the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) that better accounts for those consumer adjustments. Price indexes are not true cost-of-living indexes, but approximations of cost-of-living indexes (COLI). The Bureau of Labor Statistics (2006a) explains the difference between the two: As it pertains to the CPI, the COLI for the current month is based on the answer to the following question: "What is the cost, at this month ' market prices, of achieving the standard of living actually attained in the base period?" This cost is a hypothetical expenditure-the lowest expenditure level necessary at this month's prices to achieve the

  11. Information or prices, which is most powerful in increasing consumer demand for organic vegetables?

    DEFF Research Database (Denmark)

    Smed, Sinne; Andersen, Laura Mørch

    2012-01-01

    of consuming conventional vegetables on demand for organic foods for six different segments of Danish households. Three of these segments are positive towards organics whereas the remaining three segments are negative or indifferent. Using the double hurdle model we estimate partial effects of both directly...... and indirectly obtained information as well as prices. The results show, that there are larger effects of information for households where the information is in accordance with initial knowledge and attitudes, hence the positive segments react more to information whereas the negative segments react more......Based on a unique and very detailed panel dataset covering consumption of organically and conventionally produced vegetables in the years 2005 - 2007, we examine the effects of information about positive health effects of consuming organic vegetables and information about negative health effects...

  12. Brand Name, Store Image, and Country-of-Origin: The Effects on Consumers' Perception of Quality and Price.

    Science.gov (United States)

    King, Margaret C. A.

    1993-01-01

    A review of literature indicated that, with regard to brand labels, consumers' perception of price, but not of quality, was affected. Consumers expected to pay more for goods bought in a higher status store and rated imported goods as being more expensive than domestically produced goods. Products from developing countries received lower quality…

  13. Study on the structure and level of electricity prices for Northwest-European large-scale consumers

    International Nuclear Information System (INIS)

    2006-06-01

    The aim of the study on the title subject is to make an overview of the structure and developments of electricity prices for large-scale consumers in Northwest-Europe (Netherlands, Germany, Belgium and France) and of current regulations for large-scale consumers in Europe [nl

  14. Heat networks in France in 2014. Heat networks: which price for the consumer?

    International Nuclear Information System (INIS)

    Reynaud, Didier; Gong, Zheng; Moreau, Sylvain; Bottin, Anne; Reperant, Patricia

    2016-04-01

    A first document publishes and comments various statistics regarding heat networks in France in 2014: distribution in terms of quantity of supplied heat, main urban units, distribution in terms of urban unit size and in terms of community type (land, isolated town, outskirts, centre town). It also indicates the types, percentages and evolution of energies consumed in these heat networks, the shares of fossil and renewable energies, and the distribution of networks in terms of energy type. Some regional data are briefly commented (energy shares in each region, number of primary housing connected to an urban heating network). This publication also indicates methodological aspects and the definitions of the main components and characteristics of a heat network. Notably based on some of these data, the second document comments the price of heat supplied in these heat networks in 2014 as these prices are not regulated and depend on agreements between clients and providers. These prices are analysed in terms of linear thermal density, of heat quantity supplied by delivery point, of sector (industry, housing, office building), of rate of renewable energy, and of operator status (public service delegation or private ownership)

  15. Nutrition labeling and value size pricing at fast-food restaurants: a consumer perspective.

    Science.gov (United States)

    O'Dougherty, Maureen; Harnack, Lisa J; French, Simone A; Story, Mary; Oakes, J Michael; Jeffery, Robert W

    2006-01-01

    This pilot study examined nutrition-related attitudes that may affect food choices at fast-food restaurants, including consumer attitudes toward nutrition labeling of fast foods and elimination of value size pricing. A convenience sample of 79 fast-food restaurant patrons aged 16 and above (78.5% white, 55% female, mean age 41.2 [17.1]) selected meals from fast-food restaurant menus that varied as to whether nutrition information was provided and value pricing included and completed a survey and interview on nutrition-related attitudes. Only 57.9% of participants rated nutrition as important when buying fast food. Almost two thirds (62%) supported a law requiring nutrition labeling on restaurant menus. One third (34%) supported a law requiring restaurants to offer lower prices on smaller instead of bigger-sized portions. This convenience sample of fast-food patrons supported nutrition labels on menus. More research is needed with larger samples on whether point-of-purchase nutrition labeling at fast-food restaurants raises perceived importance of nutrition when eating out.

  16. Consumer perception and preference for suboptimal food under the emerging practice of expiration date based pricing in supermarkets

    DEFF Research Database (Denmark)

    Aschemann-Witzel, Jessica

    2017-01-01

    , it is unclear which contextual, individual, and product-related factors impact consumer likelihood of choice and thus acceptance of the practice in the long run. The study aimed at exploring the effect of communicating different motives for purchase, the product being organic, familiarity with the practice...... and the interaction with gender is observed for milk in particular. Overall, perceived quality and estimated likelihood of consumption at home majorly determine likelihood of choice. Consumer acceptance of expiration date based pricing of suboptimal food can be increased through furthering consumer familiarity......Consumers have been found to majorly prefer ‘optimal’ food over ‘suboptimal’ when purchasing food. To provide an incentive for consumers to select suboptimal food and thus decrease food waste in the supply chain, expiration date based pricing is suggested and increasingly applied. However...

  17. 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. Copyright © 2013 Elsevier Ltd. All rights reserved.

  18. The Low Cost Airline Consumer Price Sensitivity. An Investigation on The Mediating Role of Promotion and Trust in Brand

    Directory of Open Access Journals (Sweden)

    Janfry Sihite

    2014-12-01

    Full Text Available The ASEAN Open Sky Policy is one of ASEAN policy to open the airspace between the ASEAN member countries. Aviation services based companies including the Low Cost airlines will experience tight com-petition among ASEAN airline companies. This research aim to explore the effect of price on customer loyalty through the mediating role of promotion and trust in brand. The original sample collected from 100 Indonesian low-cost airline Citilink consumer that just arrived in Soekarno-Hatta International Airport, the bootstrapped techniques conducted for 500 sub-samples and further analyzed with structural equation modelling partial least square. The research findings support the low cost airline consumer price sensitivity, furthermore price affect the trust in brand more severe compared with the promotion. Price effect fully mediated through the trust in brand and promotion toward the consumer loyalty. Further research should consider the sensitivity of price to elaborate the decision making process for the low cost air-line consumer.

  19. Comparison of physicochemical characteristics and consumer perception of rice samples with different countries of origin and prices.

    Science.gov (United States)

    Jang, Eun-Hee; Lim, Seung-Taik; Kim, Sang Sook

    2012-06-01

    Rice is the only food item which is not liberalized in Korea. To prepare for future liberalization of the rice market in Korea, the physicochemical characteristics and consumer perception of four domestic rice samples were compared with those of 11 foreign rice samples. Additionally, the influences of country of origin (CO) and price on purchase intent (PI) and willingness to pay (WTP) were investigated. Consumer acceptance of rice samples from Japan was generally higher than that of rice samples from other countries. In an informed test, PI was affected by price and CO, while WTP was affected mostly by price. The PI decreased with the price provided while the WTP increased. In a blind test, consumers evaluated PI and WTP according to sensory liking. The PI was higher in the informed test than in the blind test in all domestic samples. Generally, consumer acceptance was highly correlated with fat acidity (r = - 0.76), protein content (r = - 0.72), and b value (r = - 0.64) of the rice samples. Further efforts to increase the quality of rice are recommended for survival in the global market after liberalization of rice, even though consumers showed loyalty for PI of domestic samples. Copyright © 2011 Society of Chemical Industry.

  20. The Influence of Advertisement, Perceived Price, and Brand Image on Consumer Buying Decision to Asus Mobile Phone

    OpenAIRE

    Tumewu, Ferdinand J.; Ruslim, Archi C.

    2015-01-01

    Buying decision is the stage in which consumers make the decision or take an action whether to purchase a certain product or not. The purpose of this research is to analyze the simultaneous and partial effect of Advertising, Perceived Price and Brand Images on Consumer Buying Decision. The populations of this research are people who use ASUS smartphone with the sample size as many as 40 respondents. This research uses quantitative analyze by questionnaires and the Multiple Regression Analysis...

  1. Fanning the flames? : How media coverage of a price war impacts retailers, consumers and investors

    NARCIS (Netherlands)

    van Heerde, H.J.; Gijsbrechts, E.; Pauwels, K.

    2015-01-01

    This paper explores how media coverage of a price war impacts customer, retailer and investor reactions over time. Based on data covering a Dutch supermarket price war (2003–2005), the authors find that price reductions, and especially deep ones, trigger media coverage of the price conflict. This

  2. Limits to growth in organic sales : price elasticity of consumer demand for organic food in Dutch supermarkets

    NARCIS (Netherlands)

    Bunte, F.H.J.; Galen, van M.A.; Kuiper, W.E.; Bakker, J.H.

    2007-01-01

    This report determines how sensitive consumer demand for organic products is to changes in the prices of organic products. The report is based on the analysis of scanner data for supermarkets in ten Dutch communities. In the framework of the analysis, an experiment has been performed in which the

  3. THE EVOLUTION OF CONSUMER PRICE INDEX (CPI AND INFLATION RATE IN ROMANIA IN JANUARY 2000 - DECEMBER 2010

    Directory of Open Access Journals (Sweden)

    ANIELA BĂLĂCESCU

    2011-06-01

    Full Text Available In the analysis of economic stability an important part is owned by consumer prices. The present study is devoted to an analysis of the evolution of CPI and inflation rate in the Rumanian economy. The analysis uses annual and monthly series for the period January 2000 - December 2010.

  4. Price-transparency and cost accounting: challenges for health care organizations in the consumer-driven era.

    Science.gov (United States)

    Hilsenrath, Peter; Eakin, Cynthia; Fischer, Katrina

    2015-01-01

    Health care reform is directed toward improving access and quality while containing costs. An essential part of this is improvement of pricing models to more accurately reflect the costs of providing care. Transparent prices that reflect costs are necessary to signal information to consumers and producers. This information is central in a consumer-driven marketplace. The rapid increase in high deductible insurance and other forms of cost sharing incentivizes the search for price information. The organizational ability to measure costs across a cycle of care is an integral component of creating value, and will play a greater role as reimbursements transition to episode-based care, value-based purchasing, and accountable care organization models. This article discusses use of activity-based costing (ABC) to better measure the cost of health care. It describes examples of ABC in health care organizations and discusses impediments to adoption in the United States including cultural and institutional barriers. © The Author(s) 2015.

  5. Entropy correlation distance method. The Euro introduction effect on the Consumer Price Index

    Science.gov (United States)

    Miśkiewicz, Janusz

    2010-04-01

    The idea of entropy was introduced in thermodynamics, but it can be used in time series analysis. There are various ways to define and measure the entropy of a system. Here the so called Theil index, which is often used in economy and finance, is applied as it were an entropy measure. In this study the time series are remapped through the Theil index. Then the linear correlation coefficient between the remapped time series is evaluated as a function of time and time window size and the corresponding statistical distance is defined. The results are compared with the the usual correlation distance measure for the time series themselves. As an example this entropy correlation distance method (ECDM) is applied to several series, as those of the Consumer Price Index (CPI) in order to test some so called globalisation processes. Distance matrices are calculated in order to construct two network structures which are next analysed. The role of two different time scales introduced by the Theil index and a correlation coefficient is also discussed. The evolution of the mean distance between the most developed countries is presented and the globalisation periods of the prices discussed. It is finally shown that the evolution of mean distance between the most developed countries on several networks follows the process of introducing the European currency - the Euro. It is contrasted to the GDP based analysis. It is stressed that the entropy correlation distance measure is more suitable in detecting significant changes, like a globalisation process than the usual statistical (correlation based) measure.

  6. 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.

  7. The influence of an online auction's product price and e-retailer reputation on consumers' perception, attitude, and behavioral intention.

    Science.gov (United States)

    Wu, Wann-Yih; Huang, Po-Ching; Fu, Chen-Su

    2011-06-01

    Online auctions combine the conventional auction model with information technology. However, information asymmetry within such auctions causes risks and uncertainties that influence consumer purchase intentions. In this study, a 2 (product price: high vs. low) × 2 (e-retailer reputation: high vs. low) experimental design was used to understand whether the product price and e-retailer reputation will influence consumers' perceived risk, attitude toward the website and purchase intention. The results of this study indicate that perceived risk negatively influences consumer attitude toward the website and online purchase intention, while consumer attitude toward the website positively influences purchase intention. Moreover, involvement moderates the influence of product price and e-retailer reputation only on social risk but does not have a significant effect on consumer attitude toward the website. This study contributes to a more comprehensive understanding of online auction users' behavior. Finally, the managerial implications, limitations and future research directions are also provided. © 2011 The Authors. Scandinavian Journal of Psychology © 2011 The Scandinavian Psychological Associations.

  8. Minority Game of price promotions in fast moving consumer goods markets

    Science.gov (United States)

    Groot, Robert D.; Musters, Pieter A. D.

    2005-05-01

    A variation of the Minority Game has been applied to study the timing of promotional actions at retailers in the fast moving consumer goods market. The underlying hypotheses for this work are that price promotions are more effective when fewer than average competitors do a promotion, and that a promotion strategy can be based on past sales data. The first assumption has been checked by analysing 1467 promotional actions for three products on the Dutch market (ketchup, mayonnaise and curry sauce) over a 120-week period, both on an aggregated level and on retailer chain level. The second assumption was tested by analysing past sales data with the Minority Game. This revealed that high or low competitor promotional pressure for actual ketchup, mayonnaise, curry sauce and barbecue sauce markets is to some extent predictable up to a forecast of some 10 weeks. Whereas a random guess would be right 50% of the time, a single-agent game can predict the market with a success rate of 56% for a 6-9 week forecast. This number is the same for all four mentioned fast moving consumer markets. For a multi-agent game a larger variability in the success rate is obtained, but predictability can be as high as 65%. Contrary to expectation, the actual market does the opposite of what game theory would predict. This points at a systematic oscillation in the market. Even though this result is not fully understood, merely observing that this trend is present in the data could lead to exploitable trading benefits. As a check, random history strings were generated from which the statistical variation in the game prediction was studied. This shows that the odds are 1:1,000,000 that the observed pattern in the market is based on coincidence.

  9. Analysis of consumer behaviour when purchasing selected commodity groups concerning the effect of price, habit, discount and product characteristics

    Directory of Open Access Journals (Sweden)

    Jitka Poměnková

    2008-01-01

    Full Text Available The aim of the paper is consumer behaviour analysis when purchasing selected commodity groups concerning the effect of price, habit, discount and product characteristics. Analysis proceed from the Czech household marketing research, where 726 households were electronically questioned. As mentioned above, selected factors for the analysis were habit, products‘ characteristics, price and discount actions.Primary aim is to measure the correspondence of selected factors influence on consumer behaviour during purchase decision making process of selected commodity groups. Interpretation is based on two-tier evaluation. First level represents commodity groups distinction by the character of goods and subsequent evaluation of goods characteristics correspondence in accordance with each influencing factor. Second one represents behaviour of commodity group in cross-section of selected factors. For consumer behaviour analysis chi-square test was used. Before its application the data set (responses was divided according to the ten-point scale into three interval’ groups.

  10. Do High Consumers of Sugar-Sweetened Beverages Respond Differently to Price Changes? A Finite Mixture IV-Tobit Approach.

    Science.gov (United States)

    Etilé, Fabrice; Sharma, Anurag

    2015-09-01

    This study compares the impact of sugar-sweetened beverages (SSBs) tax between moderate and high consumers in Australia. The key methodological contribution is that price response heterogeneity is identified while controlling for censoring of consumption at zero and endogeneity of expenditure by using a finite mixture instrumental variable Tobit model. The SSB price elasticity estimates show a decreasing trend across increasing consumption quantiles, from -2.3 at the median to -0.2 at the 95th quantile. Although high consumers of SSBs have a less elastic demand for SSBs, their very high consumption levels imply that a tax would achieve higher reduction in consumption and higher health gains. Our results also suggest that an SSB tax would represent a small fiscal burden for consumers whatever their pre-policy level of consumption, and that an excise tax should be preferred to an ad valorem tax. Copyright © 2015 John Wiley & Sons, Ltd.

  11. Extra price of climate-neutral consumer products; Meerprijs klimaatneutrale consumentenproducten

    Energy Technology Data Exchange (ETDEWEB)

    Van Swigchem, J.; De Haan, F.

    2001-04-01

    Climate-neutral production of consumer products means (1) prevent the emission of CO2 (e.g. by saving energy and using renewable energy), and/or (2) compensate CO2 emission by afforestation. The extra price to realize this was calculated for three different products: paper diapers, coffee and deepfrozen green beans. [Dutch] In de titel studie is berekend tegen welke meerprijs producenten hun producten klimaatneutraal kunnen produceren. De meerprijs is berekend van drie producten: papieren luiers, koffie en diepvriessperciebonen. Deze zijn uitsluitend gekozen als voorbeeld, en zijn (binnen de gestelde criteria) willekeurig. Klimaatneutraal produceren houdt in: (1) voorkomen dat CO2-emissies vrijkomen (bijvoorbeeld door energie te besparen en duurzame energie in te zetten), en/of (2) de CO2-emissies die vrijkomen compenseren door bijvoorbeeld bosaanplant. Uit de studie blijkt dat circa 90% van de CO2-emissies die een gevolg zijn van de productie van de onderzochte producten, tegen geringe meerkosten kunnen worden gereduceerd of gecompenseerd. Een combinatie van energie-efficiency maatregelen en compensatie door bosaanplant levert de laagste meerkosten op.

  12. Healthier fast-food options – Are consumers happy with the price they pay and the value that they receive?

    Directory of Open Access Journals (Sweden)

    Melanie Gopaul

    2015-10-01

    Full Text Available Changes in consumer lifestyle patterns have had a great impact on the fast-food industry worldwide and the demand for heathier food has forced such a growing industry to offer more alternatives to cater for these consumers. Many fast-food outlets have introduced healthier food options to their menus. However, there seems to be a common perception among consumers that healthier food options are more expensive. The primary research aim that pended from the literature was therefore to determine South African consumers’ level of satisfaction with the price and value of the healthier food options available at fast-food outlets. The results may assist fast-food outlets in adjusting their pricing strategy and offering consumers better value for money. A mixed method approach was used to collect data whereby self-administered questionnaires comprising of closed-ended, open-ended and scaled response questions were distributed to respondents. The findings indicated a low level of satisfaction among South African consumers’ with the price and value of healthier options offered at fast-food outlet

  13. Dynamic Pricing in Cloud Manufacturing Systems under Combined Effects of Consumer Structure, Negotiation, and Demand

    Directory of Open Access Journals (Sweden)

    Wei Peng

    2017-01-01

    Full Text Available In this study, we proposed a game-theory based framework to model the dynamic pricing process in the cloud manufacturing (CMfg system. We considered a service provider (SP, a broker agent (BA, and a dynamic service demander (SD population that is composed of price takers and bargainers in this study. The pricing processes under linear demand and constant elasticity demand were modeled, respectively. The combined effects of SD population structure, negotiation, and demand forms on the SP’s and the BA’s equilibrium prices and expected revenues were examined. We found that the SP’s optimal wholesale price, the BA’s optimal reservation price, and posted price all increase with the proportion of price takers under linear demand but decrease with it under constant elasticity demand. We also found that the BA’s optimal reservation price increases with bargainers’ power no matter under what kind of demand. Through analyzing the participants’ revenues, we showed that a dynamic SD population with a high ratio of price takers would benefit the SP and the BA.

  14. Consumer perception and preference for suboptimal food under the emerging practice of expiration date based pricing in supermarkets

    DEFF Research Database (Denmark)

    Aschemann-Witzel, Jessica

    2018-01-01

    Consumers have been found to majorly prefer ‘optimal’ food over ‘suboptimal’ when purchasing food. To provide an incentive for consumers to select suboptimal food and thus decrease food waste in the supply chain, expiration date based pricing is suggested and increasingly applied. However......, it is unclear which contextual, individual, and product-related factors impact consumer likelihood of choice and thus acceptance of the practice in the long run. The study aimed at exploring the effect of communicating different motives for purchase, the product being organic, familiarity with the practice......, individual preferences, and product-related factors. An online survey experiment among 842 Danish consumers realistically mimicked the current market context. Findings reveal that neither communicating budget saving or food waste avoidance nor the product being organic has an influence. However...

  15. Pay less, consume more? The price elasticity of home care for the disabled elderly in France.

    Science.gov (United States)

    Roquebert, Quitterie; Tenand, Marianne

    2017-09-01

    Little is known about the price sensitivity of demand for home care of the disabled elderly. We partially fill this knowledge gap by using administrative data on the beneficiaries of the main French home care subsidy program in a department and exploiting interindividual variation in provider prices. We address the potential endogeneity of prices by taking advantage of the unequal spatial coverage of providers and instrumenting price by the number of municipalities served by a provider. We estimate a price elasticity of around -0.4 that is significantly different from both 0 and -1. This less than proportionate response of consumption to price has implications for the efficiency and redistributive impact of variation in the level of copayments in home care subsidy schemes. Copyright © 2017 John Wiley & Sons, Ltd.

  16. The Efects of Corporate Social Responsibility Initiatives and Price Premiums on Polish Consumers' Responses: An Experimental Study

    Directory of Open Access Journals (Sweden)

    Wójcik Piotr

    2014-10-01

    Full Text Available This article explores whether, how and which forms of corporate social responsibility (CSR initiatives influence consumer perceptions of the value of and intention to buy responsibly manufactured yogurt, and identifies the impact of the price rise effect on consumer responses. An experimental study was conducted using scenarios with a sample of 421 university students. The results indicate that information about positive corporate behavior evokes higher perceived value and buying intention than information about negative corporate behavior; that responses differ significantly depending on whether or not the CSR initiative relates to the firm's core business; and that there is a level of consumer sensitivity to the price premium for a responsibly made yogurt. This study expands existing knowledge beyond previous areas of focus by demonstrating that a CSR initiative related to a firm's core business generates higher perceived value and buying intention than a non-related initiative, and by showing that there exists a trade-of between functional and social attributes. The findings of this study may be of interest to companies by showing the level of premium price acceptance and by demonstrating that CSR initiatives detached from basic business activity may bring negative consequences in terms of sales volume.

  17. Teaching Consumer Price Discrimination: An Interdisciplinary Case Study for Business Law Students

    Science.gov (United States)

    Edwards, Matthew A.

    2014-01-01

    It is generally agreed that price discrimination can, in some circumstances at least, be an extraordinarily unpopular business practice. In late 2000, customers discovered that Amazon.com was varying its prices online for the exact same products. Although the incident is almost fifteen years old, it has become the standard reference in law review…

  18. 31 CFR Appendix D to Part 356 - Description of the Consumer Price Index

    Science.gov (United States)

    2010-07-01

    ... Price Index (“CPI”) for purposes of inflation-protected securities is the non-seasonally adjusted U.S...' services, and drugs. In calculating the index, price changes for the various items are averaged together... Index D Appendix D to Part 356 Money and Finance: Treasury Regulations Relating to Money and Finance...

  19. Recycling Pricing and Coordination of WEEE Dual-Channel Closed-Loop Supply Chain Considering Consumers' Bargaining.

    Science.gov (United States)

    Zhu, Xiaodong; Wang, Jing; Tang, Juan

    2017-12-15

    Environmentally friendly handling and efficient recycling of waste electrical on Waste Electrical and Electronic Equipment (WEEE) have grown to be a global social problem. As holders of WEEE, consumers have a significant effect on the recycling process. A consideration of and attention to the influence of consumer behavior in the recycling process can help achieve more effective recycling of WEEE. In this paper, we built a dual-channel closed-loop supply chain model composed of manufacturers, retailers, and network recycling platforms. Based on the influence of customer bargaining behavior, we studied several different scenarios of centralized decision-making, decentralized decision-making, and contract coordination, using the Stackelberg game theory. The results show that retailers and network recycling platforms will reduce the direct recovery prices to maintain their own profit when considering the impact of consumer bargaining behavior, while remanufacturers will improve the transfer payment price for surrendering part of the profit under revenue and the expense sharing contract. Using this contract, we can achieve supply chain coordination and eliminate the effect of consumer bargaining behavior on supply chain performance. It can be viewed from the parameter sensitivity analysis that when we select the appropriate sharing coefficient, the closed-loop supply chain can achieve the same system performance under a centralized decision.

  20. Effects of species information and furniture price on consumer preferences for selected woods

    Science.gov (United States)

    Matthew Bumgardner; David Nicholls; Geoffrey Donovan

    2007-01-01

    Changing consumer tastes and species availability are influencing the design and manufacture of hardwood products. In addition, the globalization of wood product markets is exposing U.S. consumers to new species. This research evaluates consumer preferences for six domestic wood species--three from the eastern United States and three from the western United States. The...

  1. Energy intensities and the impact of high energy prices on producing and consuming sectors in Malaysia

    OpenAIRE

    Klinge Jacobsen, Henrik

    2007-01-01

    The increase in oil prices has put pressure on the global economy. Even economies that have a high degree of self-sufficiency concerning oil products are experiencing rising production costs and price increases for households energy use. Therefore, changes in energy policies are under consideration for countries highly dependent on imported energy as well as countries with a high degree of self-sufficiency. Examination of dependence on cheap energy sources for economic growth in different...

  2. Energy intensities and the impact of high energy prices on producing and consuming sectors in Malaysia

    OpenAIRE

    Klinge Jacobsen, Henrik

    2007-01-01

    The increase in oil prices has put pressure on the global economy. Even economies that have a high degree of self-sufficiency concerning oil products are experiencing rising production costs and price increases for households energy use. Therefore, changes in energy policies are under consideration for countries highly dependent on imported energy as well as countries with a high degree of self-sufficiency. Examination of dependence on cheap energy sources for economic growth in different eco...

  3. Raising Awareness and Signaling Quality to Uninformed Consumers: A Price-Advertising Model

    OpenAIRE

    Hao Zhao

    2000-01-01

    The objective of this paper is to investigate the firm's optimal advertising and pricing strategies when introducing a new product. We extend the existing signaling literature on advertising spending and price by constructing a model in which advertising is used both to raise awareness about the product and to signal its quality. By comparing the complete information game and the incomplete information game, we find that the high-quality firm will reduce advertising spending and increase pric...

  4. Consumer Choice Between Hospital-Based and Freestanding Facilities for Arthroscopy: Impact on Prices, Spending, and Surgical Complications.

    Science.gov (United States)

    Robinson, James C; Brown, Timothy T; Whaley, Christopher; Bozic, Kevin J

    2015-09-16

    Hospital-based outpatient departments traditionally charge higher prices for ambulatory procedures, compared with freestanding surgery centers. Under emerging reference-based benefit designs, insurers establish a contribution limit that they will pay, requiring the patient to pay the difference between that contribution limit and the actual price charged by the facility. The purpose of this study was to evaluate the impact of reference-based benefits on consumer choices, facility prices, employer spending, and surgical outcomes for orthopaedic procedures performed at ambulatory surgery centers. We obtained data on 3962 patients covered by the California Public Employees' Retirement System (CalPERS) who underwent arthroscopy of the knee or shoulder in the three years prior to the implementation of reference-based benefits in January 2012 and on 2505 patients covered by CalPERS who underwent arthroscopy in the two years after implementation. Control group data were obtained on 57,791 patients who underwent arthroscopy and were not subject to reference-based benefits. The impact of reference-based benefits on consumer choices between hospital-based and freestanding facilities, facility prices, employer spending, and surgical complications was assessed with use of difference-in-differences multivariable regressions to adjust for patient demographic characteristics, comorbidities, and geographic location. By the second year of the program, the shift to reference-based benefits was associated with an increase in the utilization of freestanding ambulatory surgery centers by 14.3 percentage points (95% confidence interval, 8.1 to 20.5 percentage points) for knee arthroscopy and by 9.9 percentage points (95% confidence interval, 3.2 to 16.7 percentage points) for shoulder arthroscopy and a corresponding decrease in the use of hospital-based facilities. The mean price paid by CalPERS fell by 17.6% (95% confidence interval, -24.9% to -9.6%) for knee procedures and by 17

  5. Consumer Behavior towards Scheduling and Pricing of Electric Cars Recharging: Theoretical and Experimental Analysis

    DEFF Research Database (Denmark)

    Fetene, Gebeyehu Manie

    electric cars. The last chapter deals with analysis of energy consumption rate and its determinants of electric cars under the hands of customers. A variety of techniques are used including analysis of field data, economics laboratory experiments and theoretical modeling with simulation. Chapter one...... and Pricing of Electric Vehicle Recharging’, proposes, and tests at laboratory, contracts about recharging BEVs combining the ultimatum game framework and the myopic loss aversion (MLA) behavioral hypothesis. The model represents the behavior of EV-owners trading-off between the amount of the discount on fee...... price as long-term contracts may curtail MLA behavior and help BEV owners to choose cost minimizing recharging time and, simultaneously, may help to reduce BEVs impact on the electricity grid system. The fourth chapter, ‘Using the Peer Effect in Scheduling and Pricing Electric Vehicles Recharging...

  6. Price

    International Nuclear Information System (INIS)

    Anon.

    1991-01-01

    The price terms in wheeling contracts very substantially, reflecting the differing conditions affecting the parties contracting for the service. These terms differ in the manner in which rates are calculated, the formulas used, and the philosophy underlying the accord. For example, and EEI study found that firm wheeling rates ranged from 20 cents to $1.612 per kilowatt per month. Nonfirm rates ranged from .15 mills to 5.25 mills per kilowatt-hour. The focus in this chapter is on cost-based rates, reflecting the fact that the vast majority of existing contracts are based on rate designs reflecting embedded costs. This situation may change in the future, but, for now, this fact can't be ignored

  7. Estimating consumer willingness to pay a price premium for Alaska secondary wood products.

    Science.gov (United States)

    Geoffrey H. Donovan; David L. Nicholls

    2003-01-01

    Dichotomous choice contingent valuation survey techniques were used to estimate mean willingness to pay (WTP) a price premium for made-in-Alaska secondary wood products. Respondents were asked to compare two superficially identical end tables, one made in China and one made in Alaska. The surveys were administered at home shows in Anchorage, Fairbanks, and Sitka in...

  8. Introducing CO2 Allowances, Higher Prices For All Consumers; Higher Revenues For Whom?

    NARCIS (Netherlands)

    Gurkan, G.; Langestraat, R.; Ozdemir, O.

    2013-01-01

    Abstract Introducing a ceiling on total carbon dioxide (CO2) emissions and allowing polluting industries to buy and sell permits to meet it (known as a cap-and-trade system) affects investment strategies, generation quantities, and prices in electricity markets. In this paper we analyze these

  9. Switching health insurers: the role of price, quality and consumer information search.

    Science.gov (United States)

    Boonen, Lieke H H M; Laske-Aldershof, Trea; Schut, Frederik T

    2016-04-01

    We examine the impact of price, service quality and information search on people's propensity to switch health insurers in the competitive Dutch health insurance market. Using panel data from annual household surveys and data on health insurers' premiums and quality ratings over the period 2006-2012, we estimate a random effects logit model of people's switching decisions. We find that switching propensities depend on health plan price and quality, and on people's age, health, education and having supplementary or group insurance. Young people (18-35 years) are more sensitive to price, whereas older people are more sensitive to quality. Searching for health plan information has a much stronger impact on peoples' sensitivity to price than to service quality. In addition, searching for health plan information has a stronger impact on the switching propensity of higher than lower educated people, suggesting that higher educated people make better use of available health plan information. Finally, having supplementary insurance significantly reduces older people's switching propensity.

  10. The influence of involvement and outcome messages on consumer reference prices

    Science.gov (United States)

    Gerard Kyle; Ercan Sirakaya

    1998-01-01

    As public leisure and recreation services become more accountable for their service's fiscal independence, service providers dependence on user fees continues to be a contentious issue. Annually, service managers are required to recommend price changes for services offered the following year in order to maintain existing service quality. Despite the emergent role...

  11. The effect of state renewable portfolio standards on consumer participation in green pricing programs

    Science.gov (United States)

    Maltese, James L.

    In the last several years, two mechanisms for increasing the supply of renewable electricity have become increasingly popular: renewable portfolio standards, a state policy of mandating increased production of green power; and green pricing programs, which allow customers to purchase green power through their utilities. These mechanisms have been effective in increasing the adoption of renewable energy; however, it is unclear whether they interact in a way that is mutually beneficial or counterproductive. It is important to understand the effect of renewable portfolio standards on the voluntary market for green energy, especially as Congress considers a nationwide portfolio standard. The effectiveness of a renewable portfolio standard may be undercut if it leads customers to purchase less green power. This study analyzes the relationship between the passage and implementation of a renewable portfolio standard and two measures of enrollment in utility green pricing programs. Using eight years of data for all fifty states, the study utilizes multiple regression analysis with fixed-effects estimation. The results indicate that the passage of a renewable portfolio standard has a positive and statistically significant effect on green pricing enrollment within the state. At the same time, the rate at which states increase the stringency of the renewable portfolio standard is found to have no effect on enrollment. Although further study is needed to determine if additional factors are responsible for the observed increase in green pricing enrollment, this study provides evidence that such programs do not harm, and may in fact encourage, voluntary purchases of green power.

  12. Survey-based estimates of biases in consumer price indices during transition: evidence from Romania

    Czech Academy of Sciences Publication Activity Database

    Filer, Randall K.; Hanousek, Jan

    2002-01-01

    Roč. 30, č. 3 (2002), s. 476-487 ISSN 0147-5967 Institutional research plan: CEZ:AV0Z7085904 Keywords : price * inflation * transition * Romania Subject RIV: AH - Economics Impact factor: 0.806, year: 2002 http://dx.doi.org/10.1006/jcec.2002.1784

  13. Advertising Pricing Models in Media Markets: Lump-Sum versus Per-Consumer Charges

    OpenAIRE

    Helmut Dietl; Markus Lang; Panlang Lin

    2012-01-01

    This paper develops a model of asymmetric competition between a pay and a free media platform. The pay media platform generates revenues from media consumers through subscription fees, while the free media platform generates revenues from charging advertisers either on a lump-sum basis (regime A) or on a per-consumer basis (regime B). We show that the free platform produces a higher advertising level and attracts more consumers in regime A than B although advertisers must pay more for ads and...

  14. Deriving the Pricing Power of Product Features by Mining Consumer Reviews

    OpenAIRE

    Nikolay Archak; Anindya Ghose; Panagiotis G. Ipeirotis

    2007-01-01

    The increasing pervasiveness of the Internet has dramatically changed the way that consumers shop for goods. Consumer-generated product reviews have become a valuable source of information for customers, who read the reviews and decide whether to buy the product based on the information provided. In this paper, we use techniques that decompose the reviews into segments that evaluate the individual characteristics of a product (e.g., image quality and battery life for a digital camera). Then, ...

  15. 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.

  16. Consumer Willingness to Pay for Dengue Vaccine (CYD-TDV, Dengvaxia®) in Brazil; Implications for Future Pricing Considerations.

    Science.gov (United States)

    Godói, Isabella P; Santos, André S; Reis, Edna A; Lemos, Livia L P; Brandão, Cristina M R; Alvares, Juliana; Acurcio, Francisco A; Godman, Brian; Guerra Júnior, Augusto A

    2017-01-01

    Introduction and Objective: Dengue virus is a serious global health problem with an estimated 3.97 billion people at risk for infection worldwide. In December 2015, the first vaccine (CYD-TDV) for dengue prevention was approved in Brazil, developed by Sanofi Pasteur. However, given that the vaccine will potentially be paid via the public health system, information is need regarding consumers' willingness to pay for the dengue vaccine in the country as well as discussions related to the possible inclusion of this vaccine into the public health system. This was the objective of this research. Methods : We conducted a cross-sectional study with residents of Greater Belo Horizonte, Minas Gerais, about their willingness to pay for the CYD-TDV vaccine. Results : 507 individuals were interviewed. These were mostly female (62.4%) had completed high school (62.17%), were working (74.4%), had private health insurance (64.5%) and did not have dengue (67.4%). The maximum median value of consumers' willingness to pay for CYD-TDV vaccine is US$33.61 (120.00BRL) for the complete schedule and US$11.20 (40.00BRL) per dose. At the price determined by the Brazil's regulatory chamber of pharmaceutical products market for the commercialization of Dengvaxia ® for three doses, only 17% of the population expressed willingness to pay for this vaccine. Conclusion : Brazil is currently one of the largest markets for dengue vaccine and the price established is a key issue. We believe the manufacturer should asses the possibility of lower prices to reach a larger audience among the Brazilian population.

  17. What are the economic and social effects from the electric power beneficiary price of the largest consumers

    International Nuclear Information System (INIS)

    Bogov, Dimitar

    2003-01-01

    In the last few years the two largest consumers of electricity 'Feni' and 'Jugohrom', were sold to the foreign strategic investor. The key issue in the negotiations with the investor was the price of electricity for these companies. The final outcome is known, they got beneficiary price. Now two questions emerge: (1) what is the exact size of the under pricing? (2) what are the economic and social effects of their activity and whether the social gain for the country is higher than the loss for the country from the under pricing of electricity. The paper is trying to give an answer on the second question. Therewith, the analyze is focused on two issues: (1) how much is the contribution of these two companies on production, export and economic growth of the Republic of Macedonia; (2) what is their impact on the living standard and social costs. Macedonian industry has very unfavorable structure with only a few export products. Restructuring of industry and widening of the array of products is a slow process. Until new products and new industries are developed, the only generator of larger export and higher economic growth is the increase of the export of existing products. 'Feni industry' and 'Silmak' are some of rare Macedonian companies that have foreign strategic investor who provide stable and unlimited market (having in mind that Macedonian production is relatively small compared to the world demand for nickel and ferro silicium). Thus, the growth of export of metals produced by 'Feni industry' and 'Silmak' could be the principal generators of the growth of Macedonian economy in the period of restructuring of the industry and development of new competitive products. (Original)

  18. Minimum pricing of alcohol versus volumetric taxation: which policy will reduce heavy consumption without adversely affecting light and moderate consumers?

    Science.gov (United States)

    Sharma, Anurag; Vandenberg, Brian; Hollingsworth, Bruce

    2014-01-01

    We estimate the effect on light, moderate and heavy consumers of alcohol from implementing a minimum unit price for alcohol (MUP) compared with a uniform volumetric tax. We analyse scanner data from a panel survey of demographically representative households (n = 885) collected over a one-year period (24 Jan 2010-22 Jan 2011) in the state of Victoria, Australia, which includes detailed records of each household's off-trade alcohol purchasing. The heaviest consumers (3% of the sample) currently purchase 20% of the total litres of alcohol (LALs), are more likely to purchase cask wine and full strength beer, and pay significantly less on average per standard drink compared to the lightest consumers (A$1.31 [95% CI 1.20-1.41] compared to $2.21 [95% CI 2.10-2.31]). Applying a MUP of A$1 per standard drink has a greater effect on reducing the mean annual volume of alcohol purchased by the heaviest consumers of wine (15.78 LALs [95% CI 14.86-16.69]) and beer (1.85 LALs [95% CI 1.64-2.05]) compared to a uniform volumetric tax (9.56 LALs [95% CI 9.10-10.01] and 0.49 LALs [95% CI 0.46-0.41], respectively). A MUP results in smaller increases in the annual cost for the heaviest consumers of wine ($393.60 [95% CI 374.19-413.00]) and beer ($108.26 [95% CI 94.76-121.75]), compared to a uniform volumetric tax ($552.46 [95% CI 530.55-574.36] and $163.92 [95% CI 152.79-175.03], respectively). Both a MUP and uniform volumetric tax have little effect on changing the annual cost of wine and beer for light and moderate consumers, and likewise little effect upon their purchasing. While both a MUP and a uniform volumetric tax have potential to reduce heavy consumption of wine and beer without adversely affecting light and moderate consumers, a MUP offers the potential to achieve greater reductions in heavy consumption at a lower overall annual cost to consumers.

  19. Minimum pricing of alcohol versus volumetric taxation: which policy will reduce heavy consumption without adversely affecting light and moderate consumers?

    Directory of Open Access Journals (Sweden)

    Anurag Sharma

    Full Text Available We estimate the effect on light, moderate and heavy consumers of alcohol from implementing a minimum unit price for alcohol (MUP compared with a uniform volumetric tax.We analyse scanner data from a panel survey of demographically representative households (n = 885 collected over a one-year period (24 Jan 2010-22 Jan 2011 in the state of Victoria, Australia, which includes detailed records of each household's off-trade alcohol purchasing.The heaviest consumers (3% of the sample currently purchase 20% of the total litres of alcohol (LALs, are more likely to purchase cask wine and full strength beer, and pay significantly less on average per standard drink compared to the lightest consumers (A$1.31 [95% CI 1.20-1.41] compared to $2.21 [95% CI 2.10-2.31]. Applying a MUP of A$1 per standard drink has a greater effect on reducing the mean annual volume of alcohol purchased by the heaviest consumers of wine (15.78 LALs [95% CI 14.86-16.69] and beer (1.85 LALs [95% CI 1.64-2.05] compared to a uniform volumetric tax (9.56 LALs [95% CI 9.10-10.01] and 0.49 LALs [95% CI 0.46-0.41], respectively. A MUP results in smaller increases in the annual cost for the heaviest consumers of wine ($393.60 [95% CI 374.19-413.00] and beer ($108.26 [95% CI 94.76-121.75], compared to a uniform volumetric tax ($552.46 [95% CI 530.55-574.36] and $163.92 [95% CI 152.79-175.03], respectively. Both a MUP and uniform volumetric tax have little effect on changing the annual cost of wine and beer for light and moderate consumers, and likewise little effect upon their purchasing.While both a MUP and a uniform volumetric tax have potential to reduce heavy consumption of wine and beer without adversely affecting light and moderate consumers, a MUP offers the potential to achieve greater reductions in heavy consumption at a lower overall annual cost to consumers.

  20. The Effect of Consumer Expectation Index, Economic Condition Index and Crude Oil Price on Indonesian Government Bond Yield

    Directory of Open Access Journals (Sweden)

    Benny Budiawan Tjandrasa

    2017-06-01

    Full Text Available Governments sell bonds to finance their budget. The investors willing to buy government bonds because of the yield they will get, but on the other hand if government bond yields is  too high it would burden the state in paying the interest due. Various studies have been done to find the variables that affect government bond yield significantly, such as exchange rate, inflation rate, interest rate, and oil price. This study found two more variables namely consumer expectations index and the economic conditions index to complement the variables that have been discovered. Those two variables are used as a proxy of economic stability of a country, the increase of those variables represent the increase of economic stability and will reduce the level of risk and lowering the yield that investors demand. This research use descriptive method and explanatory study with secondary data using multivariate regression equation model. The results shown consumer expectation index and economic condition index have significant effect on Indonesian Government Bond yield. To keep consumer expectation index and economic condition index increase government should give a positive signal and a sense of security to investor.

  1. The Impact of Direct-to-Consumer Advertising on Pharmaceutical Prices and Demand

    OpenAIRE

    Dhaval Dave; Henry Saffer

    2010-01-01

    Expenditures on prescription drugs are one of the fastest growing components of national health care spending, rising by almost three-fold between 1995 and 2007. Coinciding with this growth in prescription drug expenditures has been a rapid rise in direct-to-consumer advertising (DTCA), made feasible by the Food and Drug Administration's (FDA) clarification and relaxation of the rules governing broadcast advertising in 1997 and 1999. This study investigates the separate effects of broadcast a...

  2. The downs and ups of the consumer price index in Argentina: From National Statistics to Big Data

    Directory of Open Access Journals (Sweden)

    Celia Lury

    2014-07-01

    Full Text Available On the 5th of February 2007, the Institute of National Statistics and Census in Argentina (INDEC released a press statement, giving a percentage figure for that month’s Consumer Price Index (CPI-GBA. Since the announcement, this number and its subsequent variations have been at the centre of a national and international political, legal and technical controversy. The legitimacy of the numerical value of the percentage has been called into question by a range of actors and has been challenged by the emergence of multiple alternative indicators of inflation. We explore this methodological controversy through the lens of statactivism. We do not describe the controversy in its entirety, but, rather, enter the controversy to develop a comparison of the procedures informing the production of the CPI as a national statistic with those informing its production as a big data number. In both cases, we explore the way in which price is produced as an indicator. In doing so we draw attention to the significance of calculative infrastructures as ubiquitous, multi-layered processes of connectivity, that have the capacity to make surfaces, to draw lines and boundaries, and to enable particular economic and political activities to unfold in multiple and specific ways. We argue that the capacity to connect, to attach and detach, that is immanent to such infrastructures configures price as an indicator in particular ways, and in doing so help make what we call state space, a term which we use to draw attention to how specific configurations of connectivity in the calculative infrastructure enacts a space of possibility for statactivism

  3. Residential consumers in the Cape Peninsula's willingness to pay for premium priced green electricity

    International Nuclear Information System (INIS)

    Oliver, Henry; Volschenk, Jako; Smit, Eon

    2011-01-01

    A number of studies have explored the willingness (i.e. stated willingness as opposed to actual willingness) of consumers to pay a premium for green electricity in developed countries. However, little is known about how this translates into an emerging economy context. This study investigates the level of willingness of residential households in South Africa's Cape Peninsula to pay a premium for electricity from renewable energy. It methodologically drew on recent contributions in the literature on norm-motivated behaviour used to identify testable factors that could influence residential consumers' willingness to pay (WTP). Interestingly, the study found a significant positive link between household income and WTP for green electricity, contrary to the findings of some previous studies. Not only are higher income households more likely to pay a premium, but typically they are also willing to pay a bigger premium. It was also further established that the view that green electricity is reliable, involvement in the recycling of waste and the belief that everyone should contribute to green electricity generation drive the WTP. - Research Highlights: →The study explored the drivers of willingness to pay (WTP) a premium for green electricity. →All the hypothesised drivers of WTP a premium were found to be significant. →Contrary to some former studies, income was found to be a good predictor of WTP and the pledged premium. →The quantum of the premium positively correlates with income levels.

  4. The relationship between alcohol price and brand choice among underage drinkers: Are the most popular alcoholic brands consumed by youth the cheapest?

    Science.gov (United States)

    Albers, Alison Burke; DeJong, William; Naimi, Tim; Siegel, Michael; Jernigan, David H.

    2014-01-01

    We examined the influence of price on alcohol brand choice among underage youth. Using a national sample of 1,032 youth ages 13–20, recruited from a national internet panel in 2011–2012, we compared differences in mean prices between popular and unpopular brands; examined the association of price and brand popularity using logistic regression; and rank ordered the average price of top brands. Lower brand-specific prices were significantly associated with higher levels of past 30-day consumption prevalence. However, youth did not preferentially consume the cheapest brands. These findings indicate that youth have preferences for certain brands, even if those brands cost more than competing brands. Our study highlights the need for research on the impact of brand-specific alcohol marketing on underage drinking. PMID:25183436

  5. The relationship between alcohol price and brand choice among underage drinkers: are the most popular alcoholic brands consumed by youth the cheapest?

    Science.gov (United States)

    Albers, Alison B; DeJong, William; Naimi, Timothy S; Siegel, Michael; Jernigan, David H

    2014-11-01

    We examined the influence of price on alcohol brand choice among underage youth. Using a national sample of 1,032 youth, ages 13-20, recruited from a national Internet panel in 2011-2012, we compared differences in mean prices between popular and unpopular brands, examined the association of price and brand popularity using logistic regression, and rank ordered the average price of top brands. Lower brand-specific prices were significantly associated with higher levels of past 30-day consumption prevalence. However, youth did not preferentially consume the cheapest brands. These findings indicate that youth have preferences for certain brands, even if those brands cost more than competing brands. Our study highlights the need for research on the impact of brand-specific alcohol marketing on underage drinking.

  6. Effect of marketing activities, benefits, risks, confusion due to over-choice, price, quality and consumer trust on online tourism purchasing

    OpenAIRE

    Pappas, Nikolaos

    2015-01-01

    The paper focuses on website vendors and three fundamental aspects, which influence price quality and trust, the major factors that affect purchasing intentions amongst online consumers. The three fundamental aspects in question are: perceived benefits, risks and confusion due to over-choice. The purpose of the study is to examine the influence of these three aspects on consumers' trust and their online purchasing intentions, and also to evaluate their interrelationship with marketing activit...

  7. How Much Will My Child's Operation Cost? Availability of Consumer Prices From US Hospitals for a Common Pediatric Orthopaedic Surgical Procedure.

    Science.gov (United States)

    Racimo, Allison R; Talathi, Nakul S; Zelenski, Nicole A; Wells, Lawrence; Shah, Apurva S

    2018-05-02

    Price transparency allows patients to make value-based health care decisions and is particularly important for individuals who are uninsured or enrolled in high-deductible health care plans. The availability of consumer prices for children undergoing orthopaedic surgery has not been previously investigated. We aimed to determine the availability of price estimates from hospitals in the United States for an archetypal pediatric orthopaedic surgical procedure (closed reduction and percutaneous pinning of a distal radius fracture) and identify variations in price estimates across hospitals. This prospective investigation utilized a scripted telephone call to obtain price estimates from 50 "top-ranked hospitals" for pediatric orthopaedics and 1 "non-top-ranked hospital" from each state and the District of Columbia. Price estimates were requested using a standardized script, in which an investigator posed as the mother of a child with a displaced distal radius fracture that needed closed reduction and pinning. Price estimates (complete or partial) were recorded for each hospital. The number of calls and the duration of time required to obtain the pricing information was also recorded. Variation was assessed, and hospitals were compared on the basis of ranking, teaching status, and region. Less than half (44%) of the 101 hospitals provided a complete price estimate. The mean price estimate for top-ranked hospitals ($17,813; range, $2742 to $49,063) was 50% higher than the price estimate for non-top-ranked hospitals ($11,866; range, $3623 to $22,967) (P=0.020). Differences in price estimates were attributable to differences in hospital fees (P=0.003), not surgeon fees. Top-ranked hospitals required more calls than non-top-ranked hospitals (4.4±2.9 vs. 2.8±2.3 calls, P=0.003). A longer duration of time was required to obtain price estimates from top-ranked hospitals than from non-top-ranked hospitals (8.2±9.4 vs. 4.1±5.1 d, P=0.024). Price estimates for pediatric

  8. Papers of the Canadian Institute's forum on natural gas purchasing strategies : critical information for natural gas consumers in a time of diminishing natural gas supplies and higher prices

    International Nuclear Information System (INIS)

    2003-01-01

    This conference provided insight into how to prosper in an increasingly complex natural gas marketplace. The presentations from key industry players offered valuable information on natural gas purchasing strategies that are working in the current volatile price environment. Diminishing natural gas supplies in North America mean that higher prices and volatility will continue. Other market challenges stem from potential cost increases in gas transportation, unbundling of natural gas services, and the changing energy marketing environment. The main factors that will affect prices for the winter of 2004 were outlined along with risk management and the best pricing strategies for businesses. The key strategies for managing the risks associated with natural gas purchase contracts were also reviewed, along with the issue of converging natural gas and electricity markets and the impact on energy consumers. The conference featured 15 presentations, of which 4 have been indexed separately for inclusion in this database. refs., tabs., figs

  9. Do consumers of manufactured cigarettes respond differently to price changes compared with their Roll-Your-Own counterparts? Evidence from New Zealand.

    Science.gov (United States)

    Tait, Peter; Rutherford, Paul; Saunders, Caroline

    2015-05-01

    Price-based mechanisms are an important tobacco cessation policy tool in New Zealand (NZ) and so measurement of smokers' reaction to price changes is crucial in determining efficacy of this approach. Although approximately two-thirds of NZ tobacco demand is for manufactured cigarettes (MC) and one-third is for Roll-Your-Own (RYO) tobacco, previous price elasticity estimates have ignored differences between RYO tobacco and MC consumers. We employ a seemingly unrelated regression econometric approach applied to quarterly data over the period 1991-2011 to estimate price elasticities of demand separately for MC and RYO tobacco. Estimate of price elasticity of demand for MC is -1.033, and -0.441 for RYO tobacco. RYO tobacco is an inferior good; a 1% increase in average weekly income is associated with a 0.8% reduction in demand. RYO tobacco is a substitute for MC; a 1% increase in the price of MC is associated with a 0.867% increase in demand for RYO tobacco. There is significantly different price responsiveness across the two tobacco product types. MC smokers react far more strongly to price increases compared with RYO tobacco smokers. These findings suggest that pricing mechanisms may be more effective for reducing MC demand than for RYO tobacco. However, substitution between products means that this pricing effect is muted by the uptake of RYO tobacco use. Cessation policy specific to RYO use should be designed to target this growing group. 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.

  10. Dynamic Pricing

    DEFF Research Database (Denmark)

    Sharifi, Reza; Anvari-Moghaddam, Amjad; Fathi, S. Hamid

    2017-01-01

    Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes h...... of dynamic pricing can lead to increased willingness of consumers to participate in DR programs which in turn improve the operation of liberalized electricity markets.......Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes...

  11. Impact of a targeted direct marketing price promotion intervention (Buywell) on food-purchasing behaviour by low income consumers: a randomised controlled trial.

    Science.gov (United States)

    Stead, M; MacKintosh, A M; Findlay, A; Sparks, L; Anderson, A S; Barton, K; Eadie, D

    2017-08-01

    Price promotions are a promising intervention for encouraging healthier food purchasing. We aimed to assess the impact of a targeted direct marketing price promotion combined with healthy eating advice and recipe suggestions on the purchase of selected healthier foods by low income consumers. We conducted a randomised controlled trial (n = 53 367) of a direct marketing price promotion (Buywell) combined with healthy eating advice and recipe suggestions for low income consumers identified as 'less healthy' shoppers. Impact was assessed using electronic point of sale data for UK low income shoppers before, during and after the promotion. The proportion of customers buying promoted products in the intervention month increased by between 1.4% and 2.8% for four of the five products. There was significantly higher uptake in the promotion month (P marketing price promotions combined with healthy eating advice and recipe suggestions targeted at low income consumers are feasible and can have a modest impact on short-term food-purchasing behaviour, although further approaches are needed to help sustain these changes. © 2017 The British Dietetic Association Ltd.

  12. Electricity consumers under the state and the private sector: comparing the price performance of the French and UK electricity industries 1990-2000

    International Nuclear Information System (INIS)

    Percebois, Jacques; Wright, Philip

    2001-01-01

    Particularly because a preoccupation with process has tended to dominate the debate about electricity privatisation and liberalisation, this paper focuses on price outcomes by comparing the relative price performance of the French and UK electricity industries between 1990 and 2000. The main conclusion is that in 1990 the state-owned French electricity industry was performing better for most consumers than the state-owned UK industry, and a decade later it was still doing so with respect to the privately-owned UK industry. While this conclusion could be qualified by saying that, heavily prompted or assisted by the Regulator, the UK privately-owned industry has shown itself capable of achieving faster reductions in prices to close the gap between itself and the French, this achievement has been concentrated in the industrial market and even there the very significant gains were mainly restricted to the very largest consumers. In the context of the European Union the UK is shown to have performed relatively poorly for the smallest domestic consumers and, while both countries did much better in the rankings of industrial prices, they were still a long way behind the top performers. (Author)

  13. Consumers and their buying decision making based on price and information about corporate social responsibility (CSR. Case study: undergraduate students from a private university in mexico

    Directory of Open Access Journals (Sweden)

    Florina Guadalupe Arredondo Trapero

    2010-10-01

    Full Text Available The articles objective is to demonstrate that a socially responsible consumer is interested of being informed about Corporate Social Responsibility (CSR practices and is also willing to pay a higher price for a product made with CSR. Criteria of price as well as the interest of being informed about CSR practices were the two variables analyzed for the Chi-Square test. Even though CSR was declared as an important issue for the majority of participants, products made with CSR hasn’t achieved much influence in the buying decision making or in the need of being informed about the CSR practices. The need to create social consciousness for consumers to promote CSR practices through the buying decision making was also demonstrated.

  14. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix - Place, Product, Promotion, & Price: Coca Cola - Consumer Based Qualitative Survey

    OpenAIRE

    Arab, Nazanin

    2018-01-01

    The relationship between dimensions of brand equity (brand association, brand awareness, perceived quality, and customer's loyalty) and 4Ps of marketing mix (product, place, price, and promotion) are examined in this paper. Cross sectional research design while following inductive approach I have explore the relationship between research variables from consumer's perspective. Total 129 participants took part in this survey. Respondents were identified and approached through convenience sa...

  15. The evolution of gas price: gas assessment and perspectives; The evolution of gas price on the American, Asian and European markets; Assessment of the organised gas market; Assessment of gas market opening; Gas price: the point of view of consumers and providers; Tariff, the formula which cannot be found: a new stage in an endless history; The diversity of the world gas industry: the Mediterranean situation on prices

    International Nuclear Information System (INIS)

    Malherbe, Herve; Corbeau, Anne-Sophie; Lu, Long; Maire, Jacques; Verdier, Catherine; Bros, Thierry; Nyouki, Evariste; Astruc, Pierre; Katz, Richard; Jamme, Dominique; Rosier, Philippe; Salanson, Damien; Saniez, Thierry; Moraleda, Pedro; Le Gourrierec, M.

    2012-01-01

    After a brief introduction, this document contains the various contributions and interventions during round tables dealing with the evolution of gas price on American, Asian and European markets, an assessment of the organised gas market (model, references, members, and so on), an assessment of market gas opening, the point of view of consumers and providers on gas price. Then three articles address the issue of gas pricing in France, the developments of gas industry in the world (consumptions, production, perspectives for LNG) and the Mediterranean situation with respect to gas prices (trends and challenges)

  16. Value for money or making the healthy choice: the impact of proportional pricing on consumers' portion size choices

    NARCIS (Netherlands)

    Vermeer, W.M.; Alting, E.; Steenhuis, I.H.M.; Seidell, J.C.

    2010-01-01

    Background: Large food portion sizes are determinants of a high caloric intake, especially if they have been made attractive through value size pricing (i.e. lower unit prices for large than for small portion sizes). The purpose of the two questionnaire studies that are reported in this article was

  17. An exploratory analysis of cigarette price premium, market share and consumer loyalty in relation to continued consumption versus cessation in a national US panel.

    Science.gov (United States)

    Lewis, Michael; Wang, Yanwen; Cahn, Zachary; Berg, Carla J

    2015-11-03

    Brand equity and consumer loyalty play a role in continued purchasing behaviour; however, this research has largely focused on non-addictive products without counter-marketing tactics. We examined the impact of brand equity (price premium, market share) and consumer loyalty (switching rates) on smoking cessation (discontinued cigarette purchases for 1 year) among smokers in a consumer panel. In Spring 2015, we analysed 1077 cigarette-purchasing households in the Nielsen Homescan Panel. We analysed cessation in relation to brand equity, consumer loyalty, other purchasing behaviours (nicotine intake, frequency), sociodemographics and tobacco control activities (per state-specific data) over a 6-year period (2004-2009) using Cox proportional hazard modelling. The sample was 13.28% African-American; the average income was $52,334 (SD=31,445). The average price premium and market share of smokers' dominant brands were $1.31 (SD=0.49) and 15.41% (SD=19.15), respectively. The mean brand loyalty level was 0.90 (SD=0.17), indicating high loyalty. In our final model, a higher price premium and market share were associated with lower quit rates (p=0.039); however, an interaction effect suggested that greater market share was not associated with lower cessation rates for African-American smokers (p=0.006). Consumer loyalty was not associated with cessation. Other predictors of lower quit rates included a higher nicotine intake (p=0.006) and baseline purchase frequency (pconsumer relationships. Thus, continued efforts should aim to regulate tobacco marketing efforts in order to disrupt these relationships to promote cessation. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/

  18. An exploratory analysis of cigarette price premium, market share and consumer loyalty in relation to continued consumption versus cessation in a national US panel

    Science.gov (United States)

    Lewis, Michael; Wang, Yanwen; Cahn, Zachary; Berg, Carla J

    2015-01-01

    Introduction Brand equity and consumer loyalty play a role in continued purchasing behaviour; however, this research has largely focused on non-addictive products without counter-marketing tactics. We examined the impact of brand equity (price premium, market share) and consumer loyalty (switching rates) on smoking cessation (discontinued cigarette purchases for 1 year) among smokers in a consumer panel. Methods In Spring 2015, we analysed 1077 cigarette-purchasing households in the Nielsen Homescan Panel. We analysed cessation in relation to brand equity, consumer loyalty, other purchasing behaviours (nicotine intake, frequency), sociodemographics and tobacco control activities (per state-specific data) over a 6-year period (2004–2009) using Cox proportional hazard modelling. Results The sample was 13.28% African-American; the average income was $52 334 (SD=31 445). The average price premium and market share of smokers’ dominant brands were $1.31 (SD=0.49) and 15.41% (SD=19.15), respectively. The mean brand loyalty level was 0.90 (SD=0.17), indicating high loyalty. In our final model, a higher price premium and market share were associated with lower quit rates (p=0.039); however, an interaction effect suggested that greater market share was not associated with lower cessation rates for African-American smokers (p=0.006). Consumer loyalty was not associated with cessation. Other predictors of lower quit rates included a higher nicotine intake (p=0.006) and baseline purchase frequency (pconsumer relationships. Thus, continued efforts should aim to regulate tobacco marketing efforts in order to disrupt these relationships to promote cessation. PMID:26534732

  19. Energy prices and taxes

    International Nuclear Information System (INIS)

    2004-01-01

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

  20. Lowering Saudi Arabia's fuel consumption and energy system costs without increasing end consumer prices

    International Nuclear Information System (INIS)

    Matar, Walid; Murphy, Frederic; Pierru, Axel; Rioux, Bertrand

    2015-01-01

    Using a multi-sector equilibrium model of the Saudi energy system that handles administered prices in a mixed-complementarity formulation, we present results from a set of policy scenarios that lower oil consumption in the country. Some of these scenarios are the solutions to Mathematical Programs subject to Equilibrium Constraints (MPECs) that maximize the net economic gain for the Saudi economy. The policies examined have the potential to generate economic gains exceeding 23 billion USD in 2011, or about 4% of Saudi Arabia's GDP. This economic gain comes mainly from inter-sectoral fuel pricing policies that incent shifting the mix in technologies that generate electricity and produce water from energy intensive technologies to more efficient ones. We show that when complemented by credits for investments in solar and nuclear power generation capacities, a modest increase in the transfer prices of fuels among sectors is sufficient to produce economic gains close to those achieved by deregulating transfer prices. The approach we develop here is an alternative to the classic recommendation of deregulating inter-sectoral fuel prices in situations where the conditions for successful liberalized markets do not exist. It is a template for introducing the notions of incentivizing behavior using prices into countries that rely more on administrative procedures than markets, leading to a deeper understanding of how markets can lead to economic gain. - Highlights: • The policies examined would have potentially generated economic gains exceeding 23 billion USD in 2011. • We design policies that produce economic benefits close to those achieved by deregulating inter-sectoral fuel prices. • This paper provides a template for building multi-sector models when transfer prices between sectors are administered

  1. Consumer Neuroscience : Pricing research to gain and sustain a cutting edge competitive advantage by improving customer value and profitability

    OpenAIRE

    Kumlehn, Malte

    2011-01-01

    This is the first study that exclusively focuses on gaining knowledge of the vast opportunities that Neuroscientific pricing research offers for marketing purposes. The findings of this study provide evidence of the importance to improve customer and organizational decision making. The findings further highlight the crucial importance of Neuroscientific pricing research. Moreover, evidence is provided that fundamental and well formulated models and concepts need to be developed in the discipl...

  2. Design of variable energy and price components of electricity tariffs as an incentive for system-efficient energy management of flexible consumers in households

    International Nuclear Information System (INIS)

    Schreiber, Michael

    2017-01-01

    harm the overall system by further increasing the existing peak demands. The robustness of energy management under the proposed electricity tariff is evaluated in several additional analyses, such as varying shares of flexible customers, different kinds of flexibility options, and historical and forecasted market prices. These analyses show that the decentralized approach of flexible electricity tariffs induces a result almost as good as the centralized approach of a virtual power plant, given the assumption that not all consumers have access to high amounts of flexibility simultaneously and the maximum power withdrawal is not overly limited by the available grid capacities. Building on these findings, it is initially proposed to introduce into a real system an electricity tariff that includes a flexible electricity component alongside a fixed tariff component. This tariff design would be appropriate while participation is limited to only a small number of flexible consumers. However, if the number of consumers reacting to flexible market prices were to increase, it would be necessary to introduce the tariff design developed in this thesis, which consists of a time-varying energy price component in addition to a power price component. This tariff design incentivises consumers to adapt their energy consumption to the variable renewable insertion without inducing critical peak demands. The question of whether this energy tariff would be sufficient for a highly flexible and more digitalized energy system, or would need to be replaced by an even more intelligent approach, remains open for future research.

  3. Change in consumer sensitivity to electricity prices in response to retail deregulation: A panel empirical analysis of the residential demand for electricity in the United States

    International Nuclear Information System (INIS)

    Nakajima, Tadahiro; Hamori, Shigeyuki

    2010-01-01

    About ten years have passed since the deregulation of the U.S. retail electricity market, and it is now generally accepted that the available data is adequate to quantitatively assess and compare conditions before and after deregulation. This study, therefore, estimates the changes in price elasticity in the residential electricity market to examine the changes, if any, in household sensitivity (as a result of retail electricity market deregulation policies) to residential electricity rates. Specifically, six types of panel data are prepared, based on three cross-sections-all states (except for Alaska and Hawaii) and the District of Columbia, deregulated states, and non-deregulated states-and two time series-the period before deregulation and the period after deregulation. The panel empirical analysis techniques are used to determine whether or not the variables are stationary, and to estimate price elasticity. We find that there is no substantial difference in the price elasticity between deregulated and non-deregulated states for both periods-before deregulation and after deregulation. Thus, it can be said that the deregulation of the retail electricity market has not made consumers more sensitive to electricity rates and that retail deregulation policies are not the cause of price elasticity differences between deregulated and non-deregulated states.

  4. Change in consumer sensitivity to electricity prices in response to retail deregulation. A panel empirical analysis of the residential demand for electricity in the United States

    Energy Technology Data Exchange (ETDEWEB)

    Nakajima, Tadahiro [The Kansai Electric Power Company, Incorporated, 6-16, Nakanoshima 3-chome, Kita-Ku, Osaka 530-8270 (Japan); Hamori, Shigeyuki [Faculty of Economics, Kobe University 2-1, Rokkodai, Nada-Ku, Kobe 657-8501 (Japan)

    2010-05-15

    About ten years have passed since the deregulation of the U.S. retail electricity market, and it is now generally accepted that the available data is adequate to quantitatively assess and compare conditions before and after deregulation. This study, therefore, estimates the changes in price elasticity in the residential electricity market to examine the changes, if any, in household sensitivity (as a result of retail electricity market deregulation policies) to residential electricity rates. Specifically, six types of panel data are prepared, based on three cross-sections - all states (except for Alaska and Hawaii) and the District of Columbia, deregulated states, and non-deregulated states - and two time series - the period before deregulation and the period after deregulation. The panel empirical analysis techniques are used to determine whether or not the variables are stationary, and to estimate price elasticity. We find that there is no substantial difference in the price elasticity between deregulated and non-deregulated states for both periods - before deregulation and after deregulation. Thus, it can be said that the deregulation of the retail electricity market has not made consumers more sensitive to electricity rates and that retail deregulation policies are not the cause of price elasticity differences between deregulated and non-deregulated states. (author)

  5. The importance of quality, access and price to health care consumers in Bulgaria: A self-explicated approach'

    NARCIS (Netherlands)

    Pavlova, M.; Groot, W.J.N.; van Merode, F.

    2003-01-01

    One approach to the problem of low patient satisfaction in Bulgaria is to identify attributes of health care services that the consumers value most and to focus on their improvement. Based on data from a household survey, this paper examines the importance that health care consumers attach to

  6. Customizing Prices in Online Markets

    OpenAIRE

    Werner Reinartz

    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.

  7. The power of data--from data mining to consumer pricing and quality-of-care tools.

    Science.gov (United States)

    Malof, Leah C

    2013-01-01

    Transparency tools, whether offered by carriers or third-party administrators, rely on adequate experience, by market and by service, to provide information to consumers about health care costs and quality of care. The opportunities for savings to individual consumers and to employer-sponsored health plans are clearly significant and possible if people will use the tools and act. This article reviews two studies showing a shift in consumer claims experience to less costly services afte the implementation of a transparency tool and when combined with a consumer-driven health plan. It also outlines best practices employers can implement to carefully craft interventions to engage and create value in the minds of health care consumers.

  8. Price learning during grocery shopping

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup

    Many attempts have been made to measure consumers' price knowledge for groceries. However, the results have varied considerably and conflict with results of reference price research. This is the first study to examine price knowledge before, during, and after store visit, thus enabling a study...... 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....

  9. Embodied Product Perception: Effects of Verticality Cues in Advertising and Packaging Design on Consumer Impressions and Price Expectations

    NARCIS (Netherlands)

    van Rompay, Thomas Johannes Lucas; de Vries, Pieter Walter; Bontekoe, F.; Dijkstra, K.

    2012-01-01

    As consumers increasingly turn to luxury brands and associated benefits, brand managers face the question how to convey luxury perceptions via marketing communications such as packaging and advertising design. Inspired by theories addressing embodied cognition and symbolic meaning portrayal, this

  10. Embodied Product Perception : Effects of Verticality Cues in Advertising and Packaging Design on Consumer Impressions and Price Expectations

    NARCIS (Netherlands)

    Van Rompay, Thomas J L; De Vries, Peter W.; Bontekoe, Fenna; Tanja-Dijkstra, Karin

    2012-01-01

    As consumers increasingly turn to luxury brands and associated benefits, brand managers face the question how to convey luxury perceptions via marketing communications such as packaging and advertising design. Inspired by theories addressing embodied cognition and symbolic meaning portrayal, this

  11. An Experimental Study of the Impact of Dynamic Electricity Pricing on Consumer Behavior: An Analysis for a Remote Island in Japan

    Directory of Open Access Journals (Sweden)

    Thoa Thi Kim Nguyen

    2016-12-01

    Full Text Available The aim of this research was to investigate how consumer behavior changes after application of dynamic electricity pricing and the persistence of those changes. Based on the investigation results, the authors also discuss the policy implications of demand management to shift consumption to days that have more solar radiation, while at the same time reducing overall consumption. The dynamic pricing experiment was implemented on Nushima Island, located in the center of Japan, with the participation of 50 households. The methodologies used in this study are panel analysis with random effects, and the difference in differences method. Several linear regression analyses are performed to predict hourly electricity usage from a number of explanatory variables, such as life-style factors, the frequency of access to the visualization website, control for weather factors (wind speed and temperatures, and other attributes of the households to predict the log of hourly electric energy consumption. The results show that dynamic pricing brought about 13.8% reduction of electric energy consumption in comparison with the pre-experiment period. Also, by applying a new experimental design approach, this study finds data supportive of habit formation by participants. Based on the findings, this research tries to develop a policy for sustainable energy conservation in remote islands.

  12. Extra-virgin olive oil: are consumers provided with the sensory quality they want? A hedonic price model with sensory attributes.

    Science.gov (United States)

    Cavallo, Carla; Caracciolo, Francesco; Cicia, Gianni; Del Giudice, Teresa

    2018-03-01

    Over the years, niche-differentiation strategies and food policies have pushed quality standards of European extra-virgin olive oil towards a product that has a sensory profile consisting of fruity, bitter and pungent notes, with such oils having excellent healthy features. However, it is unclear whether typical consumers are ready for a richer and more complex sensory profile than the neutral one historically found on the market. This potential discrepancy is investigated in the present study aiiming to determine whether current demand is able to appreciate this path of quality enhancement. Implicit prices for each and every attribute of extra-virgin olive oil with a focus on sensory characteristics were investigated using a hedonic price model. Although confirming the importance of origin and terroir for extra-virgin olive oil, the results of the present study strongly confirm the discrepancy between what is currently valued on the market and what novel supply trends are trying to achieve in terms of the sensory properties of such products. Increasing consumer awareness about the direct link between the health quality of oils and their sensory profile appears to be necessary to make quality enhancement programs more successful on the market and hence more effective for companies. © 2017 Society of Chemical Industry. © 2017 Society of Chemical Industry.

  13. REGRESSIONAL ANALYSIS OF CONSUMER NUTRITION SPENDINGS IN THE HOUSEHOLDS OF THE REGION AS FUNCTION OF PERSONAL INCOME AND PRICE

    Directory of Open Access Journals (Sweden)

    I. N. Siulzhyn

    2017-01-01

    Full Text Available The multiple regression analysis method is widely used to describe and investigate some processes of the regional economy and may be also used to solve an important problem of distinguishing the effects of various independent or partially dependent variables. The regression model considered includes the specification of its constituent relationships, the choice of variables included in each relation, and the definition of mathematical functions corresponding to these relations. Regression model of food expenditure with two independent variables - expenditure as a function of income and price is based upon the official quarterly averaged statistical information (2015 and 2016 years. All the data are presented in the interpolated monthly version. Regression analysis made it possible to specify the dependence of expenditure on food in the country's households on the disposable personal income and the relative price of foodstuffs, which must be taken into account when solving problems of the region's social and economic development.

  14. Consumer preferences towards beef cattle in Chile : Importance of country of origin, cut, packaging, brand and price

    OpenAIRE

    Schnettler, Berta; Sepúlveda, Néstor; Sepúlveda, José; Orellana, Ligia; Miranda, Horacio; Lobos, Germán; Mora, Marcos

    2014-01-01

    A study was carried out to evaluate preferences for two cuts, four countries of origin, two forms of presentation, brand and different prices of beef cattle among supermarket buyers in southern Chile, and to distinguish the existence of different market segments, through a survey of 800 people. Using a fractional factorial design for conjoint analysis, it was determined overall that the origin was more important (...

  15. Factors that influence consumers' acceptance of future energy systems : the effects of adjustment type, production level, and price

    NARCIS (Netherlands)

    Leijten, Fenna R. M.; Bolderdijk, Jan Willem; Keizer, Kees; Gorsira, Madelijne; van der Werff, Ellen; Steg, Linda

    2014-01-01

    To promote the successful introduction of sustainable energy systems, more insight is needed into factors influencing consumer's acceptance of future energy systems. A questionnaire study among 139 Dutch citizens (aged 18-85) was conducted. Participants rated the acceptability of energy systems made

  16. The Big Mac Index, Consumer Price Index and Productivity Bias: Does Purchasing Power Parity Hypothesis Hold for Asian Countries?

    OpenAIRE

    Wong, Shiao Wern

    2010-01-01

    The choice of an appropriate market basket to be used in conducting PPP tests has long been the object of debate in literature (Sarno and Taylor, 2002). Perhaps, the different compositions of goods and services and the existence of non-tradable elements in the market basket could play the important roles in explaining deviations from PPP. Given the issues on the choice of an appropriate price measure and the non-tradable productivity bias, therefore in this paper, we attempt to assess and com...

  17. Effect of a price discount and consumer education strategy on food and beverage purchases in remote Indigenous Australia: a stepped-wedge randomised controlled trial.

    Science.gov (United States)

    Brimblecombe, Julie; Ferguson, Megan; Chatfield, Mark D; Liberato, Selma C; Gunther, Anthony; Ball, Kylie; Moodie, Marj; Miles, Edward; Magnus, Anne; Mhurchu, Cliona Ni; Leach, Amanda Jane; Bailie, Ross

    2017-02-01

    Evidence is mounting that price discounts can be effective in improving diet. This study examined the effectiveness of a 20% price discount on food and drink purchases with and without consumer education in remote Indigenous Australia. A 20% discount on fruit, vegetables, water, and artificially sweetened soft drinks was applied for 24 weeks in 20 communities in remote Indigenous Australia where the community store was managed by the Arnhem Land Progress Aboriginal Corporation (ALPA) or Outback Stores (OBS) in a stepped-wedge randomised trial. Communities were randomly allocated to a fixed framework of five sets of four stratified by store association; ten stores (two in each set) were randomly assigned to receive consumer education. A store from each of the ALPA and OBS store groups (contained in separate opaque envelopes) was selected, and stores in turn continued to be consecutively allocated to the fixed store set framework, starting with the first store slot in the first store set, until all stores had been allocated. The effect of the discount on the weight of fruit and vegetables purchased (the primary endpoint) was assessed using weekly store sales data and mixed models per protocol. We did sensitivity analyses by repeating the analyses with the outliers included and repeating the analyses for the primary outcome measure removing each store one at a time. This trial was registered with Australian New Zealand Clinical Trials Registry, number ACTRN12613000694718. Weekly store sales data on all food and drink products sold in 20 stores were collected from July 1, 2012, to Dec 28, 2014. Price discount alone was associated with a 12·7% (95% CI 4·1-22·1) increase in purchases in grams of fruit and vegetables combined (primary outcome), and a 19·8% (6·2-35·1) increase post discount (after vs before); an effect of 12 g and 18 g per capita per day. Sensitivity analyses did not modify the results for the primary outcome measure. A 20% discount can only increase

  18. Light-duty vehicle fuel economy improvements, 1979--1998: A consumer purchase model of corporate average fuel economy, fuel price, and income effects

    Science.gov (United States)

    Chien, David Michael

    2000-10-01

    The Energy Policy and Conservation Act of 1975, which created fuel economy standards for automobiles and light trucks, was passed by Congress in response to the rapid rise in world oil prices as a result of the 1973 oil crisis. The standards were first implemented in 1978 for automobiles and 1979 for light trucks, and began with initial standards of 18 MPG for automobiles and 17.2 MPG for light trucks. The current fuel economy standards for 1998 have been held constant at 27.5 MPG for automobiles and 20.5 MPG for light trucks since 1990--1991. While actual new automobile fuel economy has almost doubled from 14 MPG in 1974 to 27.2 MPG in 1994, it is reasonable to ask if the CAFE standards are still needed. Each year Congress attempts to pass another increase in the Corporate Average Fuel Economy (CAFE) standard and fails. Many have called for the abolition of CAFE standards citing the ineffectiveness of the standards in the past. In order to determine whether CAFE standards should be increased, held constant, or repealed, an evaluation of the effectiveness of the CAFE standards to date must be established. Because fuel prices were rising concurrently with the CAFE standards, many authors have attributed the rapid rise in new car fuel economy solely to fuel prices. The purpose of this dissertation is to re-examine the determinants of new car fuel economy via three effects: CAFE regulations, fuel price, and income effects. By measuring the marginal effects of the three fuel economy determinants upon consumers and manufacturers choices, for fuel economy, an estimate was made of the influence of each upon new fuel economy. The conclusions of this dissertation present some clear signals to policymakers: CAFE standards have been very effective in increasing fuel economy from 1979 to 1998. Furthermore, they have been the main cause of fuel economy improvement, with income being a much smaller component. Furthermore, this dissertation has suggested that fuel prices have

  19. One TV, One Price?

    OpenAIRE

    Jean Imbs; Haroon Mumtaz; Morten O. Ravn; Hélène Rey

    2009-01-01

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

  20. Residential consumers in the Cape Peninsula's willingness to pay for premium priced green electricity

    Energy Technology Data Exchange (ETDEWEB)

    Oliver, Henry; Volschenk, Jako; Smit, Eon [University of Stellenbosch Business School, Carl Cronje Drive, Bellville, Western Cape 7535 (South Africa)

    2011-02-15

    A number of studies have explored the willingness (i.e. stated willingness as opposed to actual willingness) of consumers to pay a premium for green electricity in developed countries. However, little is known about how this translates into an emerging economy context. This study investigates the level of willingness of residential households in South Africa's Cape Peninsula to pay a premium for electricity from renewable energy. It methodologically drew on recent contributions in the literature on norm-motivated behaviour used to identify testable factors that could influence residential consumers' willingness to pay (WTP). Interestingly, the study found a significant positive link between household income and WTP for green electricity, contrary to the findings of some previous studies. Not only are higher income households more likely to pay a premium, but typically they are also willing to pay a bigger premium. It was also further established that the view that green electricity is reliable, involvement in the recycling of waste and the belief that everyone should contribute to green electricity generation drive the WTP. (author)

  1. PRICE AND PRICING STRATEGIES

    OpenAIRE

    SUCIU Titus

    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...

  2. The price, the price and the price again. Detailed knowledge of energy consumers mapped; De prijs, de prijs en nog eens de prijs. Wensen energieklanten tot in detail in kaart gebracht

    Energy Technology Data Exchange (ETDEWEB)

    Ruhaak, I. [ed.

    1999-06-01

    With the coming of the liberalized, deregulated energy market, energy companies need better and more detailed insights in consumer behavior. Recently, two surveys were carried out addressing that issue. The first was entitled `The customer`s expectations of gas and heat`. The follow-up survey, `New services for the gas supplier`, reported on the technical implications and financial feasibility of those expectations. The general outcome is that many new services are not profitable, but bring advantages in terms of customer retention, trust and meeting environmental targets

  3. 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.

  4. Electricity pricing

    International Nuclear Information System (INIS)

    Wijayatunga, P.D.C.

    1994-01-01

    Electricity pricing in most countries, especially in the developing world, has been determined by traditional accounting criteria where it raises revenue requirements to cover the operating costs and a return on past and future capital investments in possible power systems. The use of economic principles to improve the total economic efficiency in the electricity industry is discussed. Basic marginal cost theory, long run marginal costing (LRMC) cost categories and rating periods, marginal capacity costs, marginal energy costs, consumer costs, short run marginal costing (SRMC), marginal cost of fuel, marginal cost of network losses, market clearing price, value of unserved energy and network quality of supply cost are discussed

  5. Competitive nonlinear pricing and bundling

    OpenAIRE

    Armstrong, Mark; Vickers, John

    2006-01-01

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

  6. No 3071. Resolution proposal aiming at creating an inquiry commission on the pricing conditions on the power market, and on their consequences for companies and consumers and on the necessity to implement regulation mechanisms

    International Nuclear Information System (INIS)

    Brottes, F.; Ayrault, J.M.; Bataille, Ch.; Ducout, P.; Emmanuelli, H.; Migaud, D.; Besson, E.; Bonrepaux, A.; Dumont, J.L.; Balligand, J.P.

    2006-05-01

    Electricite de France (EdF), the French electric utility, announced on December 15, 2004 a rise of electricity prices and tariffs in order to finance EDF's development policy. About a year later, the electricity prices rise was much higher than expected and not justified neither by the financial health of the company, nor by any other particular reason. The only reason seems to be the classical logic that follows the privatization of any historical power operator: opening of the capital, reduction of manpower, and increase of prices. This document wonders about: the impact of prices rise on power consuming companies and on individual end-users, the real role of the commission of energy regulation (CRE) and on the reality of an energy market regulation. (J.S.)

  7. CONSUMER PROFILE AND PRICE VARIATION OF AGRO-ECOLOGICAL PRODUCTS PERFIL DO CONSUMIDOR E OSCILAÇÕES DE PREÇOS DE PRODUTOS AGROECOLÓGICOS

    Directory of Open Access Journals (Sweden)

    Érika Lidia Silva Cavalcante

    2011-10-01

    Full Text Available

    The consumption of natural foods has increased significantly all over the world, and the term “organic” has acquired great importance. Thus, this study tried to identify the consumer profile of organic foods in Goiânia, Goiás State, Brazil, in order to find out the main difficulties faced to purchase this kind of product. Prices for organic and conventional foods were also compared. The main problem mentioned by the people questioned about the difficulties for consuming this kind of product was the price factor, followed by its availability. Pumpkin (Curcubita moschata, eggplant (Solanum melongena, beetroot (Beta vulgaris L., carrot (Daucus carota L., jiló (Solanum gilo Raddi, and cucumber (Cucumis sativu were the products that showed the highest percent variation in price (conventional x organic.

    Em todo o mundo, o consumo de alimentos naturais tem aumentado significativamente, e o termo “orgânico” tem se destacado. Em face disto, buscou-se conhecer o perfil do consumidor de alimentos orgânicos, no município de Goiânia (GO, bem como saber quais são as principais dificuldades por ele encontradas, na aquisição destes produtos. Fez-se, também, um levantamento de preços, a fim de serem comparados alimentos orgânicos e convencionais. O principal problema apontado pelos entrevistados, quanto à dificuldade no consumo, foi o fator preço, seguido pela disponibilidade de produtos. Abóbora (

  8. 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

  9. Ordered Consumer Search

    OpenAIRE

    Armstrong, Mark

    2016-01-01

    The paper discusses situations in which consumers search through their options in a deliberate order, in contrast to more familiar models with random search. Topics include: network effects (consumers may be better off following the same search order as other consumers); the use of price and non-price advertising to direct search; the impact of consumers starting a new search with their previous supplier; the incentive sellers have to merge or co-locate with other sellers; and the incentive a...

  10. Marketplace pricing

    International Nuclear Information System (INIS)

    Anon.

    1991-01-01

    As discussed in this chapter, interest in marketplace pricing has been increasing in recent years, reflecting the societal trend toward substituting competition for regulation where appropriate. Competition is valuable because it encourages utilities to make efficient decisions with a minimum of regulatory intervention. It enhances efficiency through the incentive for innovation by the regulated companies and by increasing the likelihood they will come forward with proposals for better services, lower prices or both. Ultimately, consumers are beneficiaries. Marketplace pricing is emblematic of the view that the degree of regulation should reflect the degree of market power, that workably competitive markets should be allowed to operate with as little regulatory interference as possible. The Edison Electric Institute has made perhaps the most detailed proposal on marketplace pricing. It and others perceive numerous benefits from this method of pricing transmission services. Given the undeniable market power resulting from line ownership, FERC has emphasized the need to find a workably competitive market before approving such proposals. The ability to make this distinction without a full-blown antitrust review for every transaction is questionable, and FERC has yet to provide generic guidance. Finally, FERC's legal ability to depart from cost-based standards is questionable

  11. Reducing the Burden of Price.

    Science.gov (United States)

    Hansen, Janet S.

    1984-01-01

    Setting prices for undergraduate education and assessing their effects on consumers and institutions is complicated by widespread price discounting. Student aid programs, credit, subsidized employment, and tax policy can reduce the actual costs paid by students and their families. (MSE)

  12. Price knowledge during grocery shopping

    DEFF Research Database (Denmark)

    Jensen, Birger Boutrup; Grunert, Klaus G

    2014-01-01

    applying a multi-point, multi-measure approach, consumers appear to know more aboutprices than suggested by past research. Determinants of price knowledge are also examined and the results indicate that price knowledge buildsup not only because of active search but also due to accidental exposure to prices......Past research on consumer price knowledge has varied considerably partly due to differences in how and when price knowledge is measured.This paper applies a multi-point, multi-measure approach to reconcile differences in past price knowledge research by examining systematicrelationships between...... time of measurement and type of measures applied. Examination of consumer price knowledge before, during, and afterstore visit sheds light on what is measured at the individual points in time: episodic price knowledge and/or reference prices? With a between-subjects design interviewing 1...

  13. Drug Pricing Reforms

    DEFF Research Database (Denmark)

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

    2015-01-01

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

  14. Developments in Global Food Prices

    OpenAIRE

    Vanessa Rayner; Emily Laing; Jamie Hall

    2011-01-01

    Global food prices have increased significantly since the early 2000s, reversing the long-run trend decline in relative food prices over previous decades. A range of supply disruptions in key food-producing countries have contributed to higher food prices, along with strong demand from developing countries as per capita incomes rise and consumption patterns change. Rising commodity prices are leading to higher headline consumer price inflation in many countries though, at this stage, core mea...

  15. Analysis of consumer response to fuel price fluctuations applying sample selection model to GPS panel data : Dynamics in individuals' car use

    NARCIS (Netherlands)

    Yang, Dujuan; Timmermans, Harry

    2015-01-01

    The effects of fuel price increases on people's car use have been widely discussed during the last few decades in travel behavior research. It is well recognized that fuel price has significant effects on driving distance and driving efficiency. However, most of this research assumed that these

  16. A relação entre o preço pago pelo consumidor de carne bovina em Santa Maria e o recebido pelo produtor de gado de corte no Rio Grande do Sul, Brasil Relationship between price paid by consumers in Santa Maria and prices paid to beef cattle farmers in Rio Grande do Sul, Brazil

    Directory of Open Access Journals (Sweden)

    João Garibaldi Almeida Viana

    2007-08-01

    Full Text Available Este estudo analisa em que medida os preços pagos pelos consumidores de carne bovina - ponto final da cadeia - são repassados ao produtor. Os preços dos diferentes cortes de carne foram coletados através de pesquisa mensal de preços, em quatro supermercados de Santa Maria, RS, Brasil. Depois de obtidos os valores percentuais dos diferentes cortes na composição da carcaça, estes valores foram multiplicados pelo preço pago pelo consumidor, obtendo-se assim os preços e as proporções dos cortes referentes ao valor ajustado de um quilo de carcaça pago pelo consumidor. Para a obtenção do preço médio do kg do boi vivo recebido pelos produtores, foram considerados os preços coletados pela EMATER-RS. Verificou-se uma baixa variação ao longo do ano das partes componentes da carcaça, na contribuição do preço total. Na média, o dianteiro contribui com 26,10%, o costilhar com 13,40% e o traseiro com 60,50% do preço total da carcaça. O setor a jusante na cadeia bovina tem função reguladora do preço final ao consumidor, com uma margem de operação de 7,61 pontos ao longo do ano. Nos três quadrimestres ao longo do ano, a associação entre o preço recebido pelo produtor (PRP e o pago pelo consumidor (PPC teve um comportamento diferenciado. As associações verificadas foram fraca, negativamente forte e positivamente muito forte para o primeiro, segundo e terceiro quadrimestres, respectivamente.This study analyses how much of prices paid by the consumers of beef meat are passed on to the farmer. The prices of different types of beef cuts were collected monthly in four supermarkets in Santa Maria-RS, Brazil. The percentage values of different cuts were obtained and multiplied by the price paid by consumers. Thus, it was calculated the adjusted price of kilogram of carcass commercialized at supermarket. The average price per kilogram of live steers received by the farmer was collected by EMATER-RS. There was a low price variation

  17. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

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

    2014-01-01

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  18. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

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

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  19. Policy on energy pricing

    Energy Technology Data Exchange (ETDEWEB)

    Webb, M. G.

    1977-10-15

    Some economic principles of energy pricing in a market type economy in which there is consumer sovereignty are discussed. Thus resources will be allocated via the production processes in line with the preferences of consumers as revealed by their purchases of goods and services. Prices play the crucial role of coordinating instruments in this allocative process. It is assumed that all the energy industries are in the public sector. The following topics are discussed: the specification of objectives for the energy sector; marginal cost pricing; problems associated with the measurement of marginal costs; some aspects of the environmental costs associated with energy production and use, and some issues related to time differentiated tariffs; the modification of prices to achieve financial targets; and the use of energy prices to achieve income distribution objectives.

  20. Optimal Advance Selling Strategy under Price Commitment

    OpenAIRE

    Chenhang Zeng

    2012-01-01

    This paper considers a two-period model with experienced consumers and inexperienced consumers. The retailer determines both advance selling price and regular selling price at the beginning of the first period. I show that advance selling weekly dominates no advance selling, and the optimal advance selling price may be at a discount, at a premium or at the regular selling price. To help the retailer choose the optimal pricing strategy, conditions for each possible advance selling strategy to ...

  1. Changes in prices, sales, consumer spending, and beverage consumption one year after a tax on sugar-sweetened beverages in Berkeley, California, US: A before-and-after study.

    Science.gov (United States)

    Silver, Lynn D; Ng, Shu Wen; Ryan-Ibarra, Suzanne; Taillie, Lindsey Smith; Induni, Marta; Miles, Donna R; Poti, Jennifer M; Popkin, Barry M

    2017-04-01

    Taxes on sugar-sweetened beverages (SSBs) meant to improve health and raise revenue are being adopted, yet evaluation is scarce. This study examines the association of the first penny per ounce SSB excise tax in the United States, in Berkeley, California, with beverage prices, sales, store revenue/consumer spending, and usual beverage intake. Methods included comparison of pre-taxation (before 1 January 2015) and first-year post-taxation (1 March 2015-29 February 2016) measures of (1) beverage prices at 26 Berkeley stores; (2) point-of-sale scanner data on 15.5 million checkouts for beverage prices, sales, and store revenue for two supermarket chains covering three Berkeley and six control non-Berkeley large supermarkets in adjacent cities; and (3) a representative telephone survey (17.4% cooperation rate) of 957 adult Berkeley residents. Key hypotheses were that (1) the tax would be passed through to the prices of taxed beverages among the chain stores in which Berkeley implemented the tax in 2015; (2) sales of taxed beverages would decline, and sales of untaxed beverages would rise, in Berkeley stores more than in comparison non-Berkeley stores; (3) consumer spending per transaction (checkout episode) would not increase in Berkeley stores; and (4) self-reported consumption of taxed beverages would decline. Main outcomes and measures included changes in inflation-adjusted prices (cents/ounce), beverage sales (ounces), consumers' spending measured as store revenue (inflation-adjusted dollars per transaction) in two large chains, and usual beverage intake (grams/day and kilocalories/day). Tax pass-through (changes in the price after imposition of the tax) for SSBs varied in degree and timing by store type and beverage type. Pass-through was complete in large chain supermarkets (+1.07¢/oz, p = 0.001) and small chain supermarkets and chain gas stations (1.31¢/oz, p = 0.004), partial in pharmacies (+0.45¢/oz, p = 0.03), and negative in independent corner stores and

  2. Determinants of agro-food price changes in Slovenia

    OpenAIRE

    Gričar, Sergej; Bojnec, Štefan

    2013-01-01

    This paper investigates the impacts of the current economic developments, the Euro adoption, and input prices on the consumer food prices. The focus of the analysis is on the consumer food price developments during the Slovenian adjustments towards the European Union membership, the Euro adoption by the followed increased in consumer prices, and the current economic and financial conditions. The empirical analysis on the determinants of the consumer food prices is based on the monthly statist...

  3. Nonlinear Pricing to Produce Information

    OpenAIRE

    David J. Braden; Shmuel S. Oren

    1994-01-01

    We investigate the firm's dynamic nonlinear pricing problem when facing consumers whose tastes vary according to a scalar index. We relax the standard assumption that the firm knows the distribution of this index. In general the firm should determine its marginal price schedule as if it were myopic, and produce information by lowering the price schedule; “bunching” consumers at positive purchase levels should be avoided. As a special case we also consider a market characterized by homogeneous...

  4. 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

  5. Truly costly sequential search and oligopolistic pricing

    NARCIS (Netherlands)

    Janssen, Maarten C W; Moraga-González, José Luis; Wildenbeest, Matthijs R.

    We modify the paper of Stahl (1989) [Stahl, D.O., 1989. Oligopolistic pricing with sequential consumer search. American Economic Review 79, 700-12] by relaxing the assumption that consumers obtain the first price quotation for free. When all price quotations are costly to obtain, the unique

  6. Business cycles and natural gas prices

    International Nuclear Information System (INIS)

    Apostolos, S.; Asghar, S.

    2005-01-01

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

  7. Tüketici Fiyat Endeksinin Uyarlamalı Ağa Dayalı Bulanık Çıkarım Sistemi ile Kestirimi / Consumer Price Index Forecast with Adaptive Neuro Fuzzy Inference System

    Directory of Open Access Journals (Sweden)

    Serenay VAROL

    2016-04-01

    Full Text Available Son yıllarda zaman serisi tahmini için birçok alternatif yöntem önerilmiştir. Uyarlamalı ağa dayalı bulanık çıkarım sistemi (ANFIS öngörü problemi için literatürde en çok uygulanan bulanık çıkarım sistemidir. Bu çalışmada tüketici fiyat endeksinin kestiriminde ANFIS’in performansı incelenmiştir. Çalışmanın sonucunda ANFIS yöntemi ile ilgilenilen zaman aralığındaki tüketici fiyat endeksinin kestiriminde ulaşılan sonuçlar yorumlanmıştır. / Alternative methods have been proposed for time series prediction in last years. Adaptive neuro fuzzy inference system (ANFIS is the most used fuzzy inference system in literature for prediction problem. In this study, the performance of ANFIS in forecasting consumer price index is examined, and the results of the consumer price index estimation in time period, on which ANFIS method is applied, are interpreted.

  8. Use of conjoint analysis to determine the impact of logotype colour, and the type, duration and price of a street performance on consumer purchase decisions

    Directory of Open Access Journals (Sweden)

    Maja Piko

    2017-12-01

    Full Text Available The aim of our research was to determine how colour impacts the effectiveness of a logotype for a particular activity and which colour used is strong, stable, associative and “playful”, and thus the most appropriate for presenting a selected activity. For the purpose of this research, a logotype for a circus artist was designed using four colour variations, while conjoint analysis was used to identify the colour preference of a specific logotype. Besides colour, three additional attributes were chosen: the type, duration and price of a performance. Three or four levels were specified for every attribute. The results of the survey showed that colour is the not the most important of the four attributes, but that it does have a certain effect on a customer’s decision. In the analysis, most respondents choose the red logotype, an outdoor performance, and the longest duration and the lowest price of a performance. The most important of the four attributes for respondents was the price of a performance, followed by the duration of a performance, the content/type of a performance and finally the colour of the associated logotype. The preference of respondents was improved by testing combinations of the four attributes and levels, where the colour blue was replaced with red. The research opens possibilities for further research regarding the impact of colours on subconscious decisions.

  9. Dynamic Price Dispersion of Storable Goods

    DEFF Research Database (Denmark)

    Gao, Cixiu

    2014-01-01

    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...

  10. Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships

    OpenAIRE

    Silva-Risso, Jorge; Zettelmeyer, Florian; Busse, Meghan R.; Knittel, Christopher Roland

    2016-01-01

    Many consumers are keenly aware of gasoline prices, and consumer responses to gasoline prices have been well studied. In this paper, by contrast, we investigate how gasoline prices affect the automobile industry: manufacturers and dealerships. We estimate how changes in gasoline prices affect equilibrium prices and sales of both new and used vehicles of different fuel economies. We investigate the implications of these effects for individual auto manufacturers, taking into account differences...

  11. Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships

    OpenAIRE

    Busse, Meghan R.; Kittel, Christopher R.; Zettelmeyer, Florian

    2012-01-01

    Many consumers are keenly aware of gasoline prices, and consumer responses to gasoline prices have been well studied. In this paper, by contrast, we investigate how gasoline prices affect the automobile industry: manufacturers and dealerships. We estimate how changes in gasoline prices affect equilibrium prices and sales of both new and used vehicles of different fuel economies. We investigate the implications of these effects for individual auto manufacturers, taking into account differences...

  12. Domestic Price, (Expected) Foreign Price, and Travel Spending by Canadians in the United States

    OpenAIRE

    Jan Vilasuso; Fredric C. Menz

    1998-01-01

    In this paper, the authors develop and test a model to explain travel expenditures in the United States by Canadians. The model examines a consumer's choice problem where income is allocated between domestic and foreign consumption. Consumers do not know the foreign price level and base their spending in part on expected foreign price. In addition to expected foreign price, domestic price, exchange rates, income, and foreign price uncertainty influence travel spending. Empirically, each deter...

  13. Peak load pricing lowers generation costs

    International Nuclear Information System (INIS)

    Lande, R.H.

    1980-01-01

    Before a utility implements peak load pricing for different classes of consumers, the costs and the benefits should be compared. The methodology described enables a utility to determine whether peak load pricing should be introduced for specific users. Cost-benefit analyses for domestic consumers and commercial/industrial consumers, showing break-even points are presented. (author)

  14. New product pricing

    International Nuclear Information System (INIS)

    Wilkinson, V.K.

    1981-01-01

    One of the most uncertain elements in budget planning is estimating production costs of items that have heretofore only been produced in prototype configurations and quantities. This paper examines the design and development of a mathematical model which computes appropriate prices for new and unique products. The resulting model offers a producer a fair return on his investment and the consumer a fair purchase price

  15. 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

    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...

  16. Changes in prices, sales, consumer spending, and beverage consumption one year after a tax on sugar-sweetened beverages in Berkeley, California, US: A before-and-after study.

    Directory of Open Access Journals (Sweden)

    Lynn D Silver

    2017-04-01

    Full Text Available Taxes on sugar-sweetened beverages (SSBs meant to improve health and raise revenue are being adopted, yet evaluation is scarce. This study examines the association of the first penny per ounce SSB excise tax in the United States, in Berkeley, California, with beverage prices, sales, store revenue/consumer spending, and usual beverage intake.Methods included comparison of pre-taxation (before 1 January 2015 and first-year post-taxation (1 March 2015-29 February 2016 measures of (1 beverage prices at 26 Berkeley stores; (2 point-of-sale scanner data on 15.5 million checkouts for beverage prices, sales, and store revenue for two supermarket chains covering three Berkeley and six control non-Berkeley large supermarkets in adjacent cities; and (3 a representative telephone survey (17.4% cooperation rate of 957 adult Berkeley residents. Key hypotheses were that (1 the tax would be passed through to the prices of taxed beverages among the chain stores in which Berkeley implemented the tax in 2015; (2 sales of taxed beverages would decline, and sales of untaxed beverages would rise, in Berkeley stores more than in comparison non-Berkeley stores; (3 consumer spending per transaction (checkout episode would not increase in Berkeley stores; and (4 self-reported consumption of taxed beverages would decline. Main outcomes and measures included changes in inflation-adjusted prices (cents/ounce, beverage sales (ounces, consumers' spending measured as store revenue (inflation-adjusted dollars per transaction in two large chains, and usual beverage intake (grams/day and kilocalories/day. Tax pass-through (changes in the price after imposition of the tax for SSBs varied in degree and timing by store type and beverage type. Pass-through was complete in large chain supermarkets (+1.07¢/oz, p = 0.001 and small chain supermarkets and chain gas stations (1.31¢/oz, p = 0.004, partial in pharmacies (+0.45¢/oz, p = 0.03, and negative in independent corner stores and

  17. High prices on electric power now again?

    International Nuclear Information System (INIS)

    Doorman, Gerard

    2003-01-01

    Deregulation of the electric power market has yielded low prices for the consumers throughout the 1990s. Consumption has now increased considerably, but little new production has been added. This results in high prices in dry years, but to understand this one must understand price formation in the Nordic spot market. The high prices are a powerful signal to the consumers to reduce consumption, but they are also a signal to the producers to seize any opportunity to increase production. However, the construction of new dams etc. stirs up the environmentalists. Ordinary consumers may protect themselves against high prices by signing fixed-price contracts. For those who can tolerate price fluctuations, spot prices are a better alternative than the standard contract with variable price

  18. Oil market prices 1989/1990

    International Nuclear Information System (INIS)

    Jenkins, G.

    1991-01-01

    There are many oil markets. Oil Market Prices lists the markets, provides statistics on prices and the volumes of trade, analyses the price structures in the markets and provides supplementary information on ocean freight rates and oil refining margins. Oil Market Prices will serve as a permanent record of crude oil prices including those quoted on the futures and forward markets, the many wholesale prices for refined oil products, prices consumers pay and the average prices received by the oil companies. In all instances the sources of the statistics are given together with comprehensive listing of alternative sources. (Author)

  19. Mind your pricing cues.

    Science.gov (United States)

    Anderson, Eric; Simester, Duncan

    2003-09-01

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

  20. EMPIRICAL GENERALIZATIONS ABOUT THE IMPACT OF ADVERTISING ON PRICE SENSITIVITY AND PRICE

    NARCIS (Netherlands)

    KAUL, A; WITTINK, DR

    1995-01-01

    Consumers' sensitivities to price changes are an important input to strategic and tactical decisions. It has been argued that price sensitivities depend on factors such as advertising Prior studies on the effect of advertising on consumer price sensitivity have found seemingly conflicting results.

  1. The composite barrel of retail prices and its relationship to crude oil prices

    International Nuclear Information System (INIS)

    Balabanoff, S.

    1993-01-01

    This paper challenges assumptions about the relationship between refinery gate prices, retail prices paid by consumers and crude oil prices. The analysis presented here considers their relationship within the context of the Organization of Petroleum Exporting Countries' (OPEC's) composite barrel statistics, which includes taxes and other government policy effects on prices. Speed of adjustment and retail price response to taxes are analysed with respect to crude import prices. OPEC's composite barrel is explained and evaluated. Test results are summarized. (UK)

  2. Regulated and unregulated Nordic retail prices

    Energy Technology Data Exchange (ETDEWEB)

    Johnsen, Tor Arnt, E-mail: tor.a.johnsen@bi.no [Norwegian School of Management BI, NO-0442 Oslo (Norway); Olsen, Ole Jess, E-mail: ojo@ruc.dk [Department of Environmental, Social and Spatial Change (ENSPAC), Roskilde University, Building 10.1, Universitetsvej 1, DK-4000, Roskilde (Denmark)

    2011-06-15

    Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than 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 the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices. - Highlights: > Prices of active and passive Nordic residential electricity consumers are compared. > Active consumers get lower prices in Sweden but not in Norway. > Prices of passive consumers differ considerably among the four Nordic countries. > Danish regulated prices compare well with unregulated prices in the other countries. > Passive consumers in Finland have low prices compared with the other countries.

  3. Regulated and unregulated Nordic retail prices

    International Nuclear Information System (INIS)

    Johnsen, Tor Arnt; Olsen, Ole Jess

    2011-01-01

    Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than 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 the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices. - Highlights: → Prices of active and passive Nordic residential electricity consumers are compared. → Active consumers get lower prices in Sweden but not in Norway. → Prices of passive consumers differ considerably among the four Nordic countries. → Danish regulated prices compare well with unregulated prices in the other countries. → Passive consumers in Finland have low prices compared with the other countries.

  4. 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

  5. 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...

  6. 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...

  7. Price fairness

    OpenAIRE

    Diller, Hermann

    2013-01-01

    Purpose – The purpose of this article is to integrate the various strands of fair price research into a concise conceptual model. Design/methodology/approach – The proposed price fairness model is based on a review of the fair pricing literature, incorporating research reported in not only English but also German. Findings – The proposed fair price model depicts seven components of a fair price: distributive fairness, consistent behaviour, personal respect and regard for the partner, fair dea...

  8. Pricing strategies of the supermarket sector

    OpenAIRE

    Leal, Joana Lobato da Fonseca Sáragga

    2014-01-01

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

  9. Estimating Hedonic Prices for Stellenbosch wine

    OpenAIRE

    Sanja Lutzeyer

    2008-01-01

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

  10. A model for the effects of psychological pricing in Gabor-Granger price studies

    NARCIS (Netherlands)

    Wedel, M; Leeflang, PSH

    We present a model of consumers' price sensitivity that explicitly deals with the existence of so-called psychological price levels or odd prices, i.e. prices ending in an odd number. The model is formulated in a latent class framework, in which splines are used to model utility as a function of

  11. Changes in prices, sales, consumer spending, and beverage consumption one year after a tax on sugar-sweetened beverages in Berkeley, California, US: A before-and-after study

    Science.gov (United States)

    Ryan-Ibarra, Suzanne; Taillie, Lindsey Smith; Induni, Marta

    2017-01-01

    Background Taxes on sugar-sweetened beverages (SSBs) meant to improve health and raise revenue are being adopted, yet evaluation is scarce. This study examines the association of the first penny per ounce SSB excise tax in the United States, in Berkeley, California, with beverage prices, sales, store revenue/consumer spending, and usual beverage intake. Methods and findings Methods included comparison of pre-taxation (before 1 January 2015) and first-year post-taxation (1 March 2015–29 February 2016) measures of (1) beverage prices at 26 Berkeley stores; (2) point-of-sale scanner data on 15.5 million checkouts for beverage prices, sales, and store revenue for two supermarket chains covering three Berkeley and six control non-Berkeley large supermarkets in adjacent cities; and (3) a representative telephone survey (17.4% cooperation rate) of 957 adult Berkeley residents. Key hypotheses were that (1) the tax would be passed through to the prices of taxed beverages among the chain stores in which Berkeley implemented the tax in 2015; (2) sales of taxed beverages would decline, and sales of untaxed beverages would rise, in Berkeley stores more than in comparison non-Berkeley stores; (3) consumer spending per transaction (checkout episode) would not increase in Berkeley stores; and (4) self-reported consumption of taxed beverages would decline. Main outcomes and measures included changes in inflation-adjusted prices (cents/ounce), beverage sales (ounces), consumers’ spending measured as store revenue (inflation-adjusted dollars per transaction) in two large chains, and usual beverage intake (grams/day and kilocalories/day). Tax pass-through (changes in the price after imposition of the tax) for SSBs varied in degree and timing by store type and beverage type. Pass-through was complete in large chain supermarkets (+1.07¢/oz, p = 0.001) and small chain supermarkets and chain gas stations (1.31¢/oz, p = 0.004), partial in pharmacies (+0.45¢/oz, p = 0.03), and

  12. Demand Uncertainty and Price Stabilization

    OpenAIRE

    E. Kwan Choi; Stanley R. Johnson

    1987-01-01

    Price stabilization is an important policy goal of government intervention in competitive markets. These policies are primarily directed at raising producer income and stabilizing market prices at levels acceptable to consumers and producers (Fox 1956, Turnovsky 1978, Newbery and Stiglitz 1979). Many of the stabilization policy results have been developed from the study of agricultural commodity markets. In these markets, prices tend to be highly variable due to uncertain and inelastic supply...

  13. The true Price of Chocolate?

    NARCIS (Netherlands)

    Ingram, V.J.; Chocoloney, T.

    2015-01-01

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

  14. Large-scale energy consumers pay less

    International Nuclear Information System (INIS)

    Denneman, A.

    2012-01-01

    The price of electricity in the Netherlands rose with 6 percent in the first quarter of 2012, whereas large business consumers are paying less. The natural gas price has risen with about 10 percent in the last year, both for households and for large business consumers. Meanwhile, households are paying twice as much for electricity and gas as large business consumers. [nl

  15. The Effects of Changing Input Costs on Food Prices

    OpenAIRE

    R. McFall Lamm; Paul C. Westcott

    1981-01-01

    The relationships between changes in food sector input costs and retail food prices are examined. Results indicate that increases in factor prices pass quickly to consumers, within two quarters for most foods. In addition, rising farm-level prices and substantial increases in nonfarm resource prices appear to explain why food prices rose more rapidly than nonfood prices in the 1970s. The analysis is based on a twenty-equation econometric model of the food-price determination process, specifie...

  16. Prospects for oil prices

    International Nuclear Information System (INIS)

    Caddy, P.

    1992-01-01

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

  17. 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...

  18. Gold prices

    OpenAIRE

    Joseph G. Haubrich

    1998-01-01

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

  19. Managing Consumer Referrals in a Chain Network

    OpenAIRE

    Maria Arbatskaya; Hideo Konishi

    2014-01-01

    We consider the optimal pricing and referral strategy of a monopoly that uses a simple consumer communication network (a chain) to spread product information. The first-best policy with fully discriminatory position-based referral fees involves standard monopoly pricing and referral fees that provide consumers with strictly positive referral incentives. Effective price discrimination among consumers based on their positions in the chain occurs in both the first-best solution and the second-be...

  20. Prices and heterogeneous search costs

    NARCIS (Netherlands)

    Luis Moraga-Gonzalez, Jose; Sandor, Zsolt; Wildenbeest, Matthijs R.

    2017-01-01

    We study price formation in a model of consumer search for differentiated products in which consumers have heterogeneous search costs. We provide conditions under which a pure-strategy symmetric Nash equilibrium exists and is unique. Search costs affect two margins-the intensive search margin (or

  1. Energy pricing under uncertain supply

    International Nuclear Information System (INIS)

    Serra, P.J.

    1997-01-01

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

  2. 99 cent: Price Points in E-Commerce

    OpenAIRE

    Franz Hackl; Michael E. Kummer; Rudolf Winter-Ebmer

    2010-01-01

    Basu (2006) argues that the prevalence of 99 cent prices in shops can be explained with rational consumers who disregard the rightmost digits of the price. This bounded rational behaviour leads to a Bertrand equi- librium with positive markups. We use data from an Austrian price com- parison site and find results highly compatible with Basu's theory. We can show that price points - in particular prices ending in 9 - are preva- lent and have significant impact on consumer demand. Moreover, the...

  3. Projections of the energy prices

    International Nuclear Information System (INIS)

    Jankauskas, V.

    1996-01-01

    This article deals with the trends of the main fuel prices development in the Western European markets. There are two possible price development scenarios presented in the article. Transportation costs of various internationally traded fuels from various sources (Russia, Western Europe) are estimated and their most feasible values are considered. Fuel prices for the final big consumers are calculated adding the domestic distribution costs. Trends of heat and electricity price development in Lithuania during the period of 1991-1995 are analyzed. Forecasts of the electricity generation and supply costs are calculated according to various scenarios. Electricity prices will be lowest in the case of the further operation of the Ignalina NPP and low fuel prices in international markets. (author). 8 refs., 14 figs., 4 tabs

  4. 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.

  5. Consumer Behaviour in Online Shopping

    OpenAIRE

    Hasslinger, Anders; Hodzic, Selma; Opazo, Claudio

    2008-01-01

    The Internet has developed into a new distribution channel and online transactions are rapidly increasing. This has created a need to understand how the consumer perceives online purchases. The purpose of this dissertation was to examine if there are any particular factors that influence the online consumer. Primary data was collected through a survey that was conducted on students at the University of Kristianstad. Price, Trust and Convenience were identified as important factors. Price was ...

  6. Oil transformation sector modelling: price interactions

    International Nuclear Information System (INIS)

    Maurer, A.

    1992-01-01

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

  7. Transfer Pricing

    DEFF Research Database (Denmark)

    Rohde, Carsten; Rossing, Christian Plesner

    trade internally as the units have to decide what prices should be paid for such inter-unit transfers. One important challenge is to uncover the consequences that different transfer prices have on the willingness in the organizational units to coordinate activities and trade internally. At the same time...... the determination of transfer price will affect the size of the profit or loss in the organizational units and thus have an impact on the evaluation of managers‟ performance. In some instances the determination of transfer prices may lead to a disagreement between coordination of the organizational units...

  8. How Does Pricing of Day-ahead Electricity Market Affect Put Option Pricing?

    Directory of Open Access Journals (Sweden)

    H. Raouf Sheybani

    2016-09-01

    Full Text Available In this paper, impacts of day-ahead market pricing on behavior of producers and consumers in option and day-ahead markets and on option pricing are studied. To this end, two comprehensive equilibrium models for joint put option and day-ahead markets under pay-as-bid and uniform pricing in day-ahead market are presented, respectively. Interaction between put option and day-ahead markets, uncertainty in fuel price, day-ahead market pricing, and elasticity of consumers to strike price, premium price, and day-ahead price are taken into account in these models. By applying the presented models to a test system impact of day-ahead market pricing on equilibrium of joint put option and day-ahead markets are studied.

  9. Pricing and tariffs

    International Nuclear Information System (INIS)

    Dyrelund, A.

    1993-01-01

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

  10. Resale Price Maintenance and Manufacturer Competition for Exclusive Dealerships.

    OpenAIRE

    Perry, Martin K; Besanko, David

    1991-01-01

    Two manufacturers distribute their brands through exclusive retail dealers and must compete for consumers indirectly by inducing retailers to carry their brands. The authors compare equilibrium outcomes with and without resale price maintenance. Maximum resale price maintenance lowers the retail price if manufacturers cannot employ franchise fees. Minimum retail price maintenance raises the retail price if manufacturers cannot set a wholesale price above marginal cost and must employ only a f...

  11. Optimal public rationing and price response.

    Science.gov (United States)

    Grassi, Simona; Ma, Ching-To Albert

    2011-12-01

    We study optimal public health care rationing and private sector price responses. Consumers differ in their wealth and illness severity (defined as treatment cost). Due to a limited budget, some consumers must be rationed. Rationed consumers may purchase from a monopolistic private market. We consider two information regimes. In the first, the public supplier rations consumers according to their wealth information (means testing). In equilibrium, the public supplier must ration both rich and poor consumers. Rationing some poor consumers implements price reduction in the private market. In the second information regime, the public supplier rations consumers according to consumers' wealth and cost information. In equilibrium, consumers are allocated the good if and only if their costs are below a threshold (cost effectiveness). Rationing based on cost results in higher equilibrium consumer surplus than rationing based on wealth. Copyright © 2011 Elsevier B.V. All rights reserved.

  12. Understanding gasoline pricing in Canada

    International Nuclear Information System (INIS)

    2001-04-01

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

  13. Petroleum price

    International Nuclear Information System (INIS)

    Chevallier, B.

    2009-01-01

    The 'AFTP' conference on 'petroleum prices' organized by Total last March, tries to explain the different aspects of the crisis we undergo for July 2007 and its consequential effects on the petroleum markets (supply, demand evolvements, impacts on reserves, prices, refining...). (O.M.)

  14. Reducing electricity consumption peaks with parametrised dynamic pricing strategies given maximal unit prices

    NARCIS (Netherlands)

    N.F. Höning (Nicolas); J.A. La Poutré (Han); F. Lopes; Z. Vale; J. Sousa; H. Coelho

    2013-01-01

    htmlabstractDemand response is a crucial mechanism for flattening of peak loads. For its implementation, we not only require consumers who react to price changes, but also intelligent strategies to select prices. We propose a parametrised meta-strategy for dynamic pricing and identify suitable

  15. The price facade: Symbolic and behavioural price cues in service environments

    NARCIS (Netherlands)

    Verhoeven, J.W.M.; van Rompay, Thomas Johannes Lucas; Pruyn, Adriaan T.H.

    2009-01-01

    Although the role of price expectations in predicting consumer behavior has been widely acknowledged, little is known about the way in which price expectations depend on environmental elements in hospitality settings. We propose that restaurant guests base price expectations on (1) perceptions of

  16. Food consumption and food prices in Kenya : a review

    NARCIS (Netherlands)

    Meilink, H.A.

    1987-01-01

    Abr. sum.: This report reviews government policies concerning consumer food prices in Kenya. In respect of official food pricing, Kenya can be said to pursue a 'cheap food' policy. It was found that most foods falling under price control measures showed less price increases than the average rate of

  17. On Mergers in Consumer Search Markets

    NARCIS (Netherlands)

    M.C.W. Janssen (Maarten); J.L. Moraga-Gonzalez (José Luis)

    2007-01-01

    textabstractWe study mergers in a market where N firms sell a homogeneous good and consumers search sequentially to discover prices. The main motivation for such an analysis is that mergers generally affect market prices and thereby, in a search environment, the search behavior of consumers.

  18. Energy prices hex consumers, officials / Ksenia Repson

    Index Scriptorium Estoniae

    Repson, Ksenia

    2005-01-01

    Kütusehinna rekordiline tõus 45 sendi võrra ületab oodatava inflatsiooni ning toob kaasa hinnatõusud ka kõigis teistes kütusest sõltuvates majandusharudes. Majandusminister Edgar Savisaar hoiatas, et elektrienergia hind võib kümne aasta jooksul tõusta kuni 50%

  19. Rigid pricing and rationally inattentive consumer

    Czech Academy of Sciences Publication Activity Database

    Matějka, Filip

    158 B, July (2015), s. 656-678 ISSN 0022-0531 Institutional support: PRVOUK-P23 Keywords : rational inattention * imperfect information * nominal rigidity Subject RIV: AH - Economics Impact factor: 1.097, year: 2015

  20. Rigid pricing and rationally inattentive consumer

    Czech Academy of Sciences Publication Activity Database

    Matějka, Filip

    158 B, July (2015), s. 656-678 ISSN 0022-0531 Institutional support: RVO:67985998 Keywords : rational inattention * imperfect information * nominal rigidity Subject RIV: AH - Economics Impact factor: 1.097, year: 2015

  1. Rigid pricing and rationally inattentive consumer

    Czech Academy of Sciences Publication Activity Database

    Matějka, Filip

    2010-01-01

    Roč. 20, č. 2 (2010), s. 1-40 ISSN 1211-3298 R&D Projects: GA MŠk LC542 Institutional research plan: CEZ:AV0Z70850503 Keywords : rational inattention * nominal rigidity Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp409.pdf

  2. How policies affect international biofuel price linkages

    International Nuclear Information System (INIS)

    Rajcaniova, Miroslava; Drabik, Dusan; Ciaian, Pavel

    2013-01-01

    We estimate the role of biofuel policies in determining which country is the price leader in world biofuel markets using a cointegration analysis and a Vector Error Correction (VEC) model. Weekly prices are analyzed for the EU, US, and Brazilian ethanol and biodiesel markets in the 2002–2010 and 2005–2010 time periods, respectively. The US blender's tax credit and Brazil's consumer tax exemption are found to play a role in determining the ethanol prices in other countries. For biodiesel, our results demonstrate that EU policies – the consumer tax exemption and blending target – tend to determine the world biodiesel price. - Highlights: • We estimate the role of biofuel policies in determining biofuel prices. • We use a cointegration analysis and the Vector Error Correction (VEC) model. • The biofuel policies in US and Brazil determine the world ethanol prices. • EU biofuel policies tend to form the world biodiesel price

  3. Gas prices and price process

    International Nuclear Information System (INIS)

    Groenewegen, G.G.

    1992-01-01

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

  4. Advertising, brand loyalty and pricing

    OpenAIRE

    Chioveanu, I.

    2009-01-01

    I consider an oligopoly model where, prior to price competition, firms invest in persuasive advertising and induce brand loyalty in consumers who would otherwise buy the cheapest alternative on the market. This setting, in which persuasive advertising is introduced to homogenous product markets, provides an alternative explanation for price dispersion phenomena. Despite ex-ante symmetry, the equilibrium profile of advertising outlays is asymmetric. It follows that endogenously determine...

  5. 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.

  6. 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.

  7. Honolulu Retail Monitoring Price Data Collection (2007-2011)

    Data.gov (United States)

    National Oceanic and Atmospheric Administration, Department of Commerce — This database contains a time series of consumer-level prices for a sample of retail markets in Honolulu between 2007-2011. Data include weekly prices for fish...

  8. Commercial fish price shock behaviour in Akwa Ibom State ...

    African Journals Online (AJOL)

    Commercial fish price shock behaviour in Akwa Ibom State, Southern Nigeria. ... Username, Password, Remember me, or Register ... Producer – consumer price behaviour in the long run depends on several factors. This study tested for the ...

  9. Ethical aspect price decision making

    Directory of Open Access Journals (Sweden)

    Grubor Aleksandar

    2007-01-01

    Full Text Available Price decision making in a marketing program framework creatings is a complicated and delicated part of marketing management, especially to keep in sight culminating of mass external factors. In a market economies price policy as a marketing mix instrument rarely is regulated by the law, which opening the ethical aspect questions of price decision making process. The ethics in the price decision making means consideration of the inner law of the individual (marketing managers and/or consumers, whose irreverence does not entail any juridical sanctions, rather its application is sanctioned by the self - awareness. The acception and stability of the ethical aspect price decision making are determined by the characteristic of selected marketing environment.

  10. Spatial peak-load pricing

    International Nuclear Information System (INIS)

    Arellano, M. Soledad; Serra, Pablo

    2007-01-01

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

  11. Freemium Pricing

    DEFF Research Database (Denmark)

    Runge, Julian; Wagner, Stefan; Claussen, Jörg

    Firms commonly run field experiments to improve their freemium pricing schemes. However, they often lack a framework for analysis that goes beyond directly measurable outcomes and focuses on longer term profit. We aim to fill this gap by structuring existing knowledge on freemium pricing...... into a stylized framework. We apply the proposed framework in the analysis of a field experiment that contrasts three variations of a freemium pricing scheme and comprises about 300,000 users of a software application. Our findings indicate that a reduction of free product features increases conversion as well...... as viral activity, but reduces usage – which is in line with the framework’s predictions. Additional back-of-the-envelope profit estimations suggest that managers were overly optimistic about positive externalities from usage and viral activity in their choice of pricing scheme, leading them to give too...

  12. Petroleum price

    International Nuclear Information System (INIS)

    Maurice, J.

    2001-01-01

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

  13. Did the expiration of retail price caps affect prices in the restructured Texas electricity market?

    International Nuclear Information System (INIS)

    Kang, Linhong; Zarnikau, Jay

    2009-01-01

    On January 1, 2007, the Electric Reliability Council of Texas (ERCOT) market became the first restructured market in the US to completely remove caps on the prices which could be charged to residential energy consumers by the retailers associated with the traditional or incumbent utility service providers. Our analysis suggests that the expiration of the price-to-beat (PTB) price caps may have led to a reduction in the average prices charged by competitive retail electric providers (REPs). (author)

  14. Assessing the effect of oil price on world food prices: Application of principal component analysis

    International Nuclear Information System (INIS)

    Esmaeili, Abdoulkarim; Shokoohi, Zainab

    2011-01-01

    The objective of this paper is to investigate the co-movement of food prices and the macroeconomic index, especially the oil price, by principal component analysis to further understand the influence of the macroeconomic index on food prices. We examined the food prices of seven major products: eggs, meat, milk, oilseeds, rice, sugar and wheat. The macroeconomic variables studied were crude oil prices, consumer price indexes, food production indexes and GDP around the world between 1961 and 2005. We use the Scree test and the proportion of variance method for determining the optimal number of common factors. The correlation coefficient between the extracted principal component and the macroeconomic index varies between 0.87 for the world GDP and 0.36 for the consumer price index. We find the food production index has the greatest influence on the macroeconomic index and that the oil price index has an influence on the food production index. Consequently, crude oil prices have an indirect effect on food prices. - Research Highlights: →We investigate the co-movement of food prices and the macroeconomic index. →The crude oil price has indirect effect on the world GDP via its impacts on food production index. →The food production index is the source of causation for CPI and GDP is affected by CPI. →The results confirm an indirect effect among oil price, food price principal component.

  15. 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…

  16. Biodiesel as a motor fuel price stabilization mechanism

    International Nuclear Information System (INIS)

    Serra, Teresa; Gil, José M.

    2012-01-01

    This article studies the capacity of biofuels to reduce motor fuel price fluctuations. For this purpose, we study dependence between crude oil and biodiesel blend prices in Spain. Copula models are used for this purpose. Results suggest that the practice of blending biodiesel with diesel can protect consumers against extreme crude oil price increases. - Highlights: ► We study the capacity of biofuels to reduce fuel price fluctuations. ► We focus on Spanish biodiesel market. ► Biodiesel and crude oil price dependence is studied using copula functions. ► Biodiesel can protect consumers against extreme crude oil price increases.

  17. PRICING STRATEGY USED AS A TOOL FOR BUILDING CUSTOMER SATISFACTION IN THE RETAIL SECTOR

    Directory of Open Access Journals (Sweden)

    Toma Sorin

    2010-12-01

    Full Text Available The purpose of this article is to highlight the importance of pricing strategy in the retail sector and the power of their influence on consumer behavior. Merchants should consider the price generates perceptions and can influence consumer behavior and buying customers. They must also understand how to participate in the price of consumer satisfaction.

  18. Nonlinear Pricing in Energy and Environmental Markets

    Science.gov (United States)

    Ito, Koichiro

    This dissertation consists of three empirical studies on nonlinear pricing in energy and environmental markets. The first investigates how consumers respond to multi-tier nonlinear price schedules for residential electricity. Chapter 2 asks a similar research question for residential water pricing. Finally, I examine the effect of nonlinear financial rewards for energy conservation by applying a regression discontinuity design to a large-scale electricity rebate program that was implemented in California. Economic theory generally assumes that consumers respond to marginal prices when making economic decisions, but this assumption may not hold for complex price schedules. The chapter "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing" provides empirical evidence that consumers respond to average price rather than marginal price when faced with nonlinear electricity price schedules. Nonlinear price schedules, such as progressive income tax rates and multi-tier electricity prices, complicate economic decisions by creating multiple marginal prices for the same good. Evidence from laboratory experiments suggests that consumers facing such price schedules may respond to average price as a heuristic. I empirically test this prediction using field data by exploiting price variation across a spatial discontinuity in electric utility service areas. The territory border of two electric utilities lies within several city boundaries in southern California. As a result, nearly identical households experience substantially different nonlinear electricity price schedules. Using monthly household-level panel data from 1999 to 2008, I find strong evidence that consumers respond to average price rather than marginal or expected marginal price. I show that even though this sub-optimizing behavior has a minimal impact on individual welfare, it can critically alter the policy implications of nonlinear pricing. The second chapter " How Do

  19. Pricing and Policy Problems in the Northeast Fluid Milk Industry

    OpenAIRE

    Cotterill, Ronald

    2006-01-01

    This article documents the need for reform of milk pricing in the Northeast. The New York price gouging law can be recast as a fair share law. This new milk policy "kills two birds with one stone." It corrects regional inequities in raw milk pricing by reforming the pricing of milk at retail by limiting and redistributing excessive retail margins to farmers and consumers. The fair share policy relieves allocative price inefficiency, improves the performance of the federal milk market order po...

  20. Durable-Goods Monopolists, Network Effects and Penetration Pricing

    OpenAIRE

    Cyrus C.Y. Chu; Hung-Ken Chien

    2005-01-01

    We study the pricing problem of a durable-goods monopolist. With network effects, consumption externalities among heterogeneous groups of consumers generate a discontinuous demand function. Consequently, the lessor has to offer a low price in order to reach the mass market, whereas the seller has the option to build a customer base by setting a lower initial price and raise the price later in the mass market, which explains the practice of introductory pricing. Contrary to the existing litera...

  1. MARKET SIGNALS IN VALUE-BASED PRICING PREMIUMS AND DISCOUNTS

    OpenAIRE

    Feuz, Dillon M.

    1999-01-01

    There is concern in the beef industry that present marketing practices may be impending the transmission of economic signals from consumers to producers. Presently, fed cattle may be sold on a show list, pen-by-pen, or on an individual head basis, and may be priced using live weight, dressed weight, or grid or formula pricing. Market signals are more likely to reach producers if cattle are priced individually. Current value-based pricing are discussed. Three grid pricing systems are evaluated...

  2. CONSUMER BEHAVIOR

    Directory of Open Access Journals (Sweden)

    Ilie BUDICA

    2010-03-01

    Full Text Available The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as: the psychology of how consumers think, feel, reason, and select between different alternatives; the psychology of how the consumer is influenced by his or her environment; the behavior of consumers while shopping or making other marketing decisions; limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; how consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

  3. News impact for Turkish food prices

    Directory of Open Access Journals (Sweden)

    Meltem Chadwick

    2017-06-01

    Full Text Available Asymmetric volatility is a widely encountered concept particularly in financial series. It refers to the case that “bad news” generates more volatility than “good news” of equal magnitude. In an inflationary environment “bad news” is disclosed as increasing inflation that is expected to generate higher volatility. The present article examines whether unexpected price changes affect the volatility of prices asymmetrically for 90 retail food items of the Turkish consumer price index. These 90 food items have a weight of approximately 20 percent in headline consumer price index (CPI. We employ exponential generalized autoregressive conditional heteroscedastic (EGARCH model to extract asymmetric volatility, using monthly data between January 2003 and January 2017. Our results reveal that volatility of food prices respond asymmetrically to unexpected price shocks for 62 percent of the retail food items.

  4. 75 FR 2723 - Fair Credit Reporting Risk-Based Pricing Regulations

    Science.gov (United States)

    2010-01-15

    ...-based pricing notice to a consumer when the creditor uses a consumer report to grant or extend credit to... consumers to combat identity theft, increase the accuracy of consumer reports, and allow consumers to... consumer report is often used in evaluating the risk posed by the consumer. Creditors that engage in risk...

  5. Nonlinear Price Schedules and Tied Products.

    OpenAIRE

    Ormiston, Michael B; Phillips, Owen R

    1988-01-01

    Illegal tying often occurs when a monopolist jointly sells a product with a complementary requirement, also sold competitively. Along with selling the complement at its competi tive price, this paper shows that profit can increase when a monopoli st lets consumers bundle any amount of the requirement with the basic product at a fixed price. Examples illustrate demand conditions that enhance the profitability of this nonlinear price strategy and show that profits can approximate those earned f...

  6. Competitive targeted advertising with price discrimination

    OpenAIRE

    Esteves, Rosa Branca; Resende, Joana

    2013-01-01

    This paper investigates the effects of price discrimination by means of targeted advertising in a duopolistic market where the distribution of consumers’ preferences is discrete and where advertising plays two major roles. It is used by firms as a way to transmit relevant information to otherwise uninformed consumers and it is used as a price discrimination device. We compare the firms’ optimal marketing mix (advertising and pricing) when they adopt mass advertising/non-discrimination strateg...

  7. Drawing a Roadmap for Oil Pricing Reform

    OpenAIRE

    Kojima, Masami

    2013-01-01

    In 2011, the median oil imports rose to 5 percent of gross domestic product for net importers. In the past several years, many governments have not passed through the world oil price increases to consumers fully. As a sign of divergent pricing policies, the retail prices of gasoline, diesel, and cooking gas in January 2013 varied by a factor of 190, 250, and 70, respectively, across develo...

  8. Trends in Utility Green Pricing Programs (2005)

    Energy Technology Data Exchange (ETDEWEB)

    Bird, L.; Brown, E.

    2006-10-01

    This report presents year-end 2005 data on utility green pricing programs, and examines trends in consumer response and program implementation over time. The data in this report, which were obtained via a questionnaire distributed to utility green pricing program managers, can be used by utilities to benchmark the success of their green power programs.

  9. Vertical price leadership : a cointegration analysis

    NARCIS (Netherlands)

    Kuiper, W.E.; Meulenberg, M.T.G.

    2002-01-01

    Here we detail a method to test whether or not retailers allow suppliers to set the wholesale price not only on the basis of the costs faced by the suppliers but also on the basis of consumer demand. Using standard theory, long-run price relationships between the stages in the channel are derived.

  10. Coupon advertising under imperfect price information

    NARCIS (Netherlands)

    Moraga-Gonzälez, José Luis; Petrakis, Emmanuel

    1999-01-01

    This paper studies sales promotions through coupons in an oligopoly under imperfect price information. Sellers can distribute either ordinary coupons, or coupon (price) advertising, or both types of coupons, at distant locations to attract consumers from their rivals' markets. A unique symmetric

  11. Crisis of prices in electrical sector

    International Nuclear Information System (INIS)

    2002-01-01

    This presentation shows the evolution of the electrical sector in Guatemala including prices, covering, market and current situation with the recent privatization of public enterprises with advantages to the consumers. Also discuss the effect of the new legislation with fiscal proposals that could produce prices distortion

  12. 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.

  13. Demystifying patient price estimates. The advantages of transparency.

    Science.gov (United States)

    Kane, Cheri S; Harvey, Gayla

    2015-05-01

    With the increase of high-deductible health plans, more consumers want to know the cost of their health care before they purchase services. A healthcare organization should formulate transparent price policies that: Fit with its intentions, processes, and goals. Ensure consumers are thoroughly educated about their financial responsibilities. Include the use of consumer pricing tools that help patients feel like empowered consumers. Reflect an enterprisewide culture of transparency.

  14. Natural gas tariffing principles for non-eligible consumers

    International Nuclear Information System (INIS)

    2005-01-01

    This document explains the main principles and control means of natural gas tariffing in France for non-eligible consumers: marginal cost tariffing and equal terms between consumers, prices control regime and public utility contract between the Government and Gaz de France company for the smoothing of the strong volatility of petroleum products price, successive increase of prices due to import tariffs. The evolution of prices between 1998 and today are summarized in tables and graphs. (J.S.)

  15. CONSUMER BEHAVIOR

    OpenAIRE

    Ilie BUDICA; Silvia PUIU; Bogdan Andrei BUDICA

    2010-01-01

    The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as: the psychology of how consumers think, feel, reason, and select between different alternatives; the psychology of how the consumer is influenced by his or her environment; the behavior of consumers while shopping or making other marketing decisions; limitations in consumer knowledge or information processing abilities influence decisions and marke...

  16. Design of variable energy and price components of electricity tariffs as an incentive for system-efficient energy management of flexible consumers in households; Design variabler Energie- und Leistungspreiskomponenten von Stromtarifen als Anreiz fuer ein systemdienliches Energiemanagement flexibler Verbraucher in Haushalten

    Energy Technology Data Exchange (ETDEWEB)

    Schreiber, Michael

    2017-11-01

    harm the overall system by further increasing the existing peak demands. The robustness of energy management under the proposed electricity tariff is evaluated in several additional analyses, such as varying shares of flexible customers, different kinds of flexibility options, and historical and forecasted market prices. These analyses show that the decentralized approach of flexible electricity tariffs induces a result almost as good as the centralized approach of a virtual power plant, given the assumption that not all consumers have access to high amounts of flexibility simultaneously and the maximum power withdrawal is not overly limited by the available grid capacities. Building on these findings, it is initially proposed to introduce into a real system an electricity tariff that includes a flexible electricity component alongside a fixed tariff component. This tariff design would be appropriate while participation is limited to only a small number of flexible consumers. However, if the number of consumers reacting to flexible market prices were to increase, it would be necessary to introduce the tariff design developed in this thesis, which consists of a time-varying energy price component in addition to a power price component. This tariff design incentivises consumers to adapt their energy consumption to the variable renewable insertion without inducing critical peak demands. The question of whether this energy tariff would be sufficient for a highly flexible and more digitalized energy system, or would need to be replaced by an even more intelligent approach, remains open for future research.

  17. Controlling Electricity Consumption by Forecasting its Response to Varying Prices

    DEFF Research Database (Denmark)

    Corradi, Olivier; Ochsenfeld, Henning Peter; Madsen, Henrik

    2013-01-01

    electricity consumption using a one-way price signal. Estimation of the price-response is based on data measurable at grid level, removing the need to install sensors and communication devices between each individual consumer and the price-generating entity. An application for price-responsive heating systems......In a real-time electricity pricing context where consumers are sensitive to varying prices, having the ability to anticipate their response to a price change is valuable. This paper proposes models for the dynamics of such price-response, and shows how these dynamics can be used to control...... is studied based on real data, before conducting a control by price experiment using a mixture of real and synthetic data. With the control objective of following a constant consumption reference, peak heating consumption is reduced by nearly 5%, and 11% of the mean daily heating consumption is shifted....

  18. Consumption and the Consumer

    Directory of Open Access Journals (Sweden)

    Maria VADUVA

    2016-09-01

    Full Text Available The consumer is that trader responsible for consumption act of some final goods or services who decided what must be produce and in what cantity, being the one who make the economic mechanism to move. Consumption is in close connection with the production of goods and services, exerting an active role, any activity should be complete by consuming its results; consumption creates the motivation to achieve economic and non-economic activities. The traditional approach to consumer behavior starts from hypothesised that all consumers seek to maximize the aggregate utility obtained of satisfactions resulting from consumption of goods taking into account the budgetary constraints given by income that consumer has and the prices of these goods. In the conditions of modern economy, consumption can be increased by diseconomies. If consumption depends on permanent income, revenue growth effectively does not exert influence on consumption only to the extent that this increase of income leads to increasing permanent income consumer. Consumption is viewed as an active agent of economic life, it is not only a consumer of goods and services but also a producer.

  19. Price Transparency in the Online Age.

    Science.gov (United States)

    Kaplan, Jonathan L; Mills, Parker H

    2016-05-01

    Plastic surgeons are sometimes hesitant to provide their pricing information online, due to several concerns. However, if implemented right, price transparency can be used as a lead generation tool that provides consumers with the pricing information they want and gives the physician the consumer's contact information for follow-up. This study took place during the author's first year in private practice in a new city. An interactive price transparency platform (ie, cost estimator) was integrated into his website, allowing consumers to submit a "wishlist" of procedures to check pricing on these procedures of interest. However, the consumer must submit their contact information to receive the desired breakdown of costs that are tailored based on the author's medical fees. During that first year, without any advertising expenditure, the author's website received 412 wishlists from 208 unique consumers. Consumers (17.8%) that submitted a wishlist came in for a consultation and 62% of those booked a procedure. The average value of a booked procedure was over US $4000 and cumulatively, all of the leads from this one lead source in that first year generated over US $92,000 in revenue. When compared with non-price-aware patients, price-aware patients were 41% more likely to book a procedure. Price transparency led to greater efficiency and reduced consultations that ended in "sticker shock." When prudently integrated into a medical practice, price transparency can be a great lead generation source for patients that are (1) paying out of pocket for medically necessary services due to a high-deductible health plan or (2) paying for services not typically covered by insurance, such as cosmetic services.

  20. Potential impacts of electricity price changes on price formation in the economy: a social accounting matrix price modeling analysis for Turkey

    International Nuclear Information System (INIS)

    Akkemik, K. Ali

    2011-01-01

    Recent reforms in the Turkish electricity sector since 2001 aim to introduce a tariff system that reflects costs. This is expected to affect the production and consumer prices of electricity. The changes in electricity prices are then reflected in production costs in other segments of the economy. Subsequently, producer and consumer prices will be affected. The potential impact of the changes in electricity prices that the ongoing electricity reforms in Turkey will bring about may have important implications on the price formation in economic activities and the cost of living for households. This paper evaluates the potential impacts of changes in electricity prices from a social accounting matrix (SAM) price modeling perspective. It is found that based on the estimated price multipliers that prices in the energy-producing sectors, mining, and iron and steel manufacturing sectors would be affected more severely than the remaining sectors of the economy. Consumer prices are affected slightly less than producer prices. - Research Highlights: → The impact of electricity generation costs on prices in other sectors is modeled. → A micro-SAM emphasizing electricity supply is constructed using 2002 I-O tables. → Energy, mining, and steel sectors are more responsive to electricity costs. → Living costs are less responsive to electricity cost changes than producer prices.

  1. 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

  2. Older Consumers in Malaysia

    Directory of Open Access Journals (Sweden)

    David R. Phillips

    2007-07-01

    Full Text Available The main objective of this study was to understand the concerns and problems faced by older people in an industrializing middle-income country, Malaysia, in their process of acquiring products to meet their everyday needs. Respondents aged 55 and over were interviewed in eight states throughout Peninsular Malaysia providing 1356 usable questionnaires; two-thirds from urban and one-third from rural areas. Education, health status, and life satisfaction were recorded. Service patronage behaviour was examined for four main categories of commonly-sought consumer goods: groceries, health supplements, apparel, eating outlets, plus selected services (public transport, vacation packages and financial services. The findings showed that older adults in Malaysia are rather discerning consumers. Many respondents are price conscious and have developed consumer attitudes with regard to attitude of staff and assistance rendered. Many display a good ability to discriminate and to select, especially on the basis of price and durability of products and many appear to be acting as effectively as consumers in any other age group.

  3. Unit Pricing and Alternatives: Developing an Individualized Shopping Strategy.

    Science.gov (United States)

    Cude, Brenda; Walker, Rosemary

    1985-01-01

    This article offers a new perspective on the teaching of unit pricing in consumer economics classes by identifying ways to teach the costs as well as the benefits of unit pricing and realistic guidelines for suggesting situations in which it is most appropriate. Alternatives to unit pricing will also be explored. (CT)

  4. Second-Degree Price Discrimination: A Graphical and Mathematical Approach

    Science.gov (United States)

    Gotlibovski, Chemi; Kahana, Nava

    2009-01-01

    The authors use a relatively simple diagram accompanied by mathematical analysis to compare two pricing strategies: price-quantity packages and a two-part tariff. This is done both from the monopolist's point of view and from the welfare point of view. The authors show that in the case of two consumer types, the price-quantity packages strategy…

  5. Pricing in the International Takeoff of New Products

    NARCIS (Netherlands)

    Chandrasekaran, D.; Arts, J.W.C.; Tellis, G.J.; Frambach, R.T.

    2013-01-01

    This study focuses on the effect of two dimensions of price (relative price and price volatility) on the international takeoff of new products. The study examines these drivers of takeoff using a novel data set of bimonthly observations of 7 new consumer electronic products in 8 countries. The

  6. Promotional Frames' Influence on Price Perceptions of Two Apparel Products.

    Science.gov (United States)

    Stanforth, Nancy; Lennon, Sharron; Shin, Jung Im

    2001-01-01

    A study explored the differences in price perceptions of two apparel products when promotions were framed as either a price discount or a gift-with-purchase. The majority preferred the discount. Results illustrate the importance of promotional framing in forming consumer price perceptions. (Contains 30 references.) (Author/JOW)

  7. 7 CFR 1220.115 - Net market price.

    Science.gov (United States)

    2010-01-01

    ... AGREEMENTS AND ORDERS; MISCELLANEOUS COMMODITIES), DEPARTMENT OF AGRICULTURE SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION Soybean Promotion and Research Order Definitions § 1220.115 Net market price. The term net market price means— (a) except as provided in paragraph (b) of this section, the sales price, or...

  8. 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…

  9. Odd Price: Harga, Psikologi Dan Perilaku Konsumen Dalam Purchase Decision Making

    OpenAIRE

    Tjiptodjojo, Kartika Imasari

    2012-01-01

    Price is one important component in marketing as well as in creating of customer value. Determination of an appropriate pricing strategy will not only affect consumers' perception of the level, but will bring the consumers to the point of purchase. Odd Price is one of the company's strategies to create the impression in the minds of consumer’s low price. This strategy is considered quite successful in influencing consumer psychology in deciding to buy the product or service offered by t...

  10. Price volatility in wind dominant electricity markets

    DEFF Research Database (Denmark)

    Farashbashi-Astaneh, Seyed-Mostafa; Chen, Zhe

    2013-01-01

    High penetration of intermittent renewable energy sources causes price volatility in future electricity markets. This is specially the case in European countries that plan high penetration levels. This highlights the necessity for revising market regulations and mechanisms in accordance...... to generation combination portfolio. Proposed solutions should be able to tackle with emerging challenges which are mainly due to high variability and unpredictability of intermittent renewable resources. In this paper high price volatility will be introduced as an emerging challenge in wind dominant...... electricity markets. High price volatility is unappreciated because it imposes high financial risk levels to both electricity consumers and producers. Additionally high price variations impede tracking price signals by consumers in future smart grid and jeopardize implementation of demand response concepts...

  11. Investor response to consumer elasticity

    International Nuclear Information System (INIS)

    Grenaa Jensen, Stine; Meibom, Peter; Ravn, H.F.; Straarup, Sarah

    2004-01-01

    In the Nordic electricity system there is considerable uncertainty with respect to the long-term development in production capacity. The process towards liberalisation of the electricity sector started in a situation with a large reserve margin, but this margin is gradually vanishing. Since the potential investors in new production capacity are unaccustomed with investments under the new regime it is unknown if and when investments will take place. The electricity price is the key market signal to potential investors. The price is settled as a balance between supply and demand, and it is generally assumed that the demand side has an important role in this, and increasingly so. However, since consumers have not earlier had the incentive to respond to electricity prices, no reliable estimate of demand elasticity is known. The purpose of the present study is to analyse the role of electricity demand elasticity for investments in new electricity production capacity. Electricity price scenarios generated with a partial equilibrium model (Balmorel) are combined with a model of investment decisions. In this, various scenarios concerning the development in the demand elasticity are used. The simulated investment decisions are taken in a stochastic, dynamic setting, where a key point is the timing of the investment decision in relation to the gathering of new information relative to the stochastic elements. Based on this, the consequences of the development in consumer price elasticity for investments in a base load and a peak load plant are investigated. The main result of the analysis is that peak load investments can be made unprofitable by the development in consumer price elasticity, such that an investor will tend to wait with his peak load investment, until the development in consumer price elasticity has been revealed. (au)

  12. Explaining purchases of organic meat by Dutch consumers

    NARCIS (Netherlands)

    Verhoef, PC

    2005-01-01

    This study investigates the impact of economic and marketing variables ( quality, price, and distribution), emotions ( fear, empathy, and guilt), social norms, and environment-related variables ( environmental concern, green behaviour, and perceived consumer effectiveness) on Dutch consumers'

  13. Farmers, consumers and gatekeepers and their attitudes towards ...

    African Journals Online (AJOL)

    Farmers, consumers and gatekeepers and their attitudes towards ... Almost all consumers were willing to purchase GM maize meal at the same price. ... thirds, were hesitant to use them preferring to make the decision on a case-by-case basis.

  14. Acceptability of GM foods among Pakistani consumers

    Science.gov (United States)

    Ali, Akhter; Rahut, Dil Bahadur; Imtiaz, Muhammad

    2016-01-01

    ABSTRACT In Pakistan majority of the consumers do not have information about genetically modified (GM) foods. In developing countries particularly in Pakistan few studies have focused on consumers' acceptability about GM foods. Using comprehensive primary dataset collected from 320 consumers in 2013 from Pakistan, this study analyzes the determinants of consumers' acceptability of GM foods. The data was analyzed by employing the bivariate probit model and censored least absolute deviation (CLAD) models. The empirical results indicated that urban consumers are more aware of GM foods compared to rural consumers. The acceptance of GM foods was more among females' consumers as compared to male consumers. In addition, the older consumers were more willing to accept GM food compared to young consumers. The acceptability of GM foods was also higher among wealthier households. Low price is the key factor leading to the acceptability of GM foods. The acceptability of the GM foods also reduces the risks among Pakistani consumers. PMID:27494790

  15. Acceptability of GM foods among Pakistani consumers.

    Science.gov (United States)

    Ali, Akhter; Rahut, Dil Bahadur; Imtiaz, Muhammad

    2016-04-02

    In Pakistan majority of the consumers do not have information about genetically modified (GM) foods. In developing countries particularly in Pakistan few studies have focused on consumers' acceptability about GM foods. Using comprehensive primary dataset collected from 320 consumers in 2013 from Pakistan, this study analyzes the determinants of consumers' acceptability of GM foods. The data was analyzed by employing the bivariate probit model and censored least absolute deviation (CLAD) models. The empirical results indicated that urban consumers are more aware of GM foods compared to rural consumers. The acceptance of GM foods was more among females' consumers as compared to male consumers. In addition, the older consumers were more willing to accept GM food compared to young consumers. The acceptability of GM foods was also higher among wealthier households. Low price is the key factor leading to the acceptability of GM foods. The acceptability of the GM foods also reduces the risks among Pakistani consumers.

  16. 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...

  17. Government Pricing Policy and Behavioral Consumption of Tobacco

    OpenAIRE

    Firend, A.R

    2015-01-01

    This research examines the impact of tobacco tax on government revenues and consumer's behavior towards price increases. In this examines historical trends of tobacco tax hikes in Malaysia and consumer's reaction towards anticipated price increases. Methodology consisted of qualitative and quantitative data collection for triangulation in addition to review reports and studies of governmental and independent agencies. Findings suggest that price increases has a minimal affect on consumption h...

  18. Increasing Dominance - the Role of Advertising, Pricing and Product Design

    OpenAIRE

    Kretschmer, Tobias; Rösner, Mariana

    2010-01-01

    Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing, market structure and increasing (or decreasing) dominance. In a simple model of persuasive advertising and pricing with differentiated goods, we analyze the interdependencies between ex-ante asymmetries in consumer appeal, advertising and prices. Products with larger initial appeal to consumers will ...

  19. Price and consumption of tobacco

    Directory of Open Access Journals (Sweden)

    Virendra Singh

    2012-01-01

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

  20. Economic analysis of coal price-electricity price adjustment in China based on the CGE model

    International Nuclear Information System (INIS)

    He, Y.X.; Zhang, S.L.; Yang, L.Y.; Wang, Y.J.; Wang, J.

    2010-01-01

    In recent years, coal price has risen rapidly, which has also brought a sharp increase in the expenditures of thermal power plants in China. Meantime, the power production price and power retail price have not been adjusted accordingly and a large number of thermal power plants have incurred losses. The power industry is a key industry in the national economy. As such, a thorough analysis and evaluation of the economic influence of the electricity price should be conducted before electricity price adjustment is carried out. This paper analyses the influence of coal price adjustment on the electric power industry, and the influence of electricity price adjustment on the macroeconomy in China based on computable general equilibrium models. The conclusions are as follows: (1) a coal price increase causes a rise in the cost of the electric power industry, but the influence gradually descends with increase in coal price; and (2) an electricity price increase has an adverse influence on the total output, Gross Domestic Product (GDP), and the Consumer Price Index (CPI). Electricity price increases have a contractionary effect on economic development and, consequently, electricity price policy making must consequently consider all factors to minimize their adverse influence.

  1. Pricing Strategy and the Formation and Evolution of Reference Price Perceptions in New Product Categories

    OpenAIRE

    Lowe, Ben; Alpert, Frank

    2010-01-01

    This study examines the formation and evolution of reference price perceptions in new product categories. It contributes to our understanding of pricing new products by integrating two important research streams in marketing-reference price theory and the theory of pioneer brand advantage. Prior research has focused solely on products in existing or incrementally new categories, and has typically examined fast-moving consumer goods. Using a cross-sectional experiment to study the formation of...

  2. Deregulated power prices: comparison of volatility

    International Nuclear Information System (INIS)

    Li Ying; Flynn, P.C.

    2004-01-01

    We examine electrical power price variability for 14 deregulated markets. Power price volatility is measured by price velocity, the daily average of the absolute value of price change per hour. Deregulated markets show a wide variability in price velocity. Some price velocity is expected and arises from the daily diurnal price pattern, which differs significantly between markets. Even when the expected daily variability in price is removed, the residual unexpected variability differs between markets. Some deregulated markets, most notably Britain and Spain, show patterns that are predictable and consistent and have low values of unexpected price velocity. These markets create a climate conducive to consumers facing the market through real time pricing and shaping consumption behaviors in response to price changes. Other markets, for example, South Australia and Alberta, have patterns that are inconsistent and irregular, and hence are hard for a customer to interpret; a customer in such a market will have a higher incentive to avoid demand side management and escape risk through hedging mechanisms

  3. Gas pricing in Europe. Pt. 1. Wholesale markets

    International Nuclear Information System (INIS)

    Donath, R.

    1996-01-01

    The article investigates gas pricing in the European procurement market and the wholesale markets of the most important EU consumer markets. It demonstrates that value-oriented pricing principles override cost-oriented pricing principles. For one thing, and independently of pricing principles, two- or three-part demand price systems or basic price systems are common. For another, the frequently encountered opportunities for the differentiation of prices show that as long as there is merely substitution competition instead of direct competition, gas suppliers have a certain degree of freedom in fixing their prices. By contrast, the introduction of direct competition in Great Britain has reduced suppliers' individual price fixing margins, because short-term supply and demand variations in the now created spot market are decisive for gas pricing. (orig.) [de

  4. The impact of category prices on store price image formation : An empirical analysis

    NARCIS (Netherlands)

    Da Silva Lourenço, C.J.; Gijsbrechts, E.; Paap, R.

    2015-01-01

    The authors empirically explore how consumers update beliefs about a store's overall expensiveness. They estimate a learning model of store price image (SPI) formation with the impact of actual prices linked to category characteristics, on a unique dataset combining store visit and purchase

  5. Economic information from Smart Meter: Nexus Between Demand Profile and Electricity Retail Price Between Demand Profile and Electricity Retail Price

    OpenAIRE

    Yu, Yang; Liu, Guangyi; Zhu, Wendong; Wang, Fei; Shu, Bin; Zhang, Kai; Rajagopal, Ram; Astier, Nicolas

    2016-01-01

    In this paper, we demonstrate that a consumer's marginal system impact is only determined by their demand profile rather than their demand level. Demand profile clustering is identical to cluster consumers according to their marginal impacts on system costs. A profile-based uniform-rate price is economically efficient as real-time pricing. We develop a criteria system to evaluate the economic efficiency of an implemented retail price scheme in a distribution system by comparing profile cluste...

  6. PRICE ON THE ORGANIC FOOD MARKET

    Directory of Open Access Journals (Sweden)

    GEORGE ATANASOAIE

    2012-12-01

    Full Text Available The main objective of this paper is to present prices on PAE market (PAE- organic foods market. Prices are analyzed in terms of importance and the main factors that contribute to their establishment (quality of products, distribution channels, certification and eco-labeling system, customer segments and market development stage. This paper is based on the investigation of secondary sources, of specialized literature related to PAE consumers. The paper shows that are used three strategic options of prices: prices with high rigidity located in a low or high level and fluctuating prices, characterized by variations on short periods of time. Price is a very important barrier to market development but this importance can be mitigated through appropriate communication policies with the market, which are essential especially for markets in early stages of development.

  7. Tiered gasoline pricing: A personal carbon trading perspective

    International Nuclear Information System (INIS)

    Li, Yao; Fan, Jin; Zhao, Dingtao; Wu, Yanrui; Li, Jun

    2016-01-01

    This paper proffers a tiered gasoline pricing method from a personal carbon trading perspective. An optimization model of personal carbon trading is proposed, and then, an equilibrium carbon price is derived according to the market clearing condition. Based on the derived equilibrium carbon price, this paper proposes a calculation method of tiered gasoline pricing. Then, sensitivity analyses and consumers' surplus analyses are conducted. It can be shown that a rise in gasoline price or a more generous allowance allocation would incur a decrease in the equilibrium carbon price, making the first tiered price higher, but the second tiered price lower. It is further verified that the proposed tiered pricing method is progressive because it would relieve the pressure of the low-income groups who consume less gasoline while imposing a greater burden on the high-income groups who consume more gasoline. Based on these results, implications, limitations and suggestions for future studies are provided. - Highlights: • Tiered gasoline pricing is calculated from the perspective of PCT. • Consumers would be burdened with different actual gasoline costs. • A specific example is provided to illustrate the calculation of TGP. • The tiered pricing mechanism is a progressive system.

  8. When Do Price Thresholds Matter in Retail Categories?

    OpenAIRE

    Koen Pauwels; Shuba Srinivasan; Philip Hans Franses

    2007-01-01

    Marketing literature has long recognized that brand price elasticity need not be monotonic and symmetric, but has yet to provide generalizable market-level insights on threshold-based price elasticity, asymmetric thresholds, and the sign and magnitude of elasticity transitions. This paper introduces smooth transition regression models to study threshold-based price elasticity of the top 4 brands across 20 fast-moving consumer good categories. Threshold-based price elasticity is found for 76% ...

  9. When do price thresholds matter in retail categories?

    OpenAIRE

    Pauwels, Koen; Srinivasan, Shuba; Franses, Philip Hans

    2007-01-01

    textabstractMarketing literature has long recognized that brand price elasticity need not be monotonic and symmetric, but has yet to provide generalizable market-level insights on threshold-based price elasticity, asymmetric thresholds, and the sign and magnitude of elasticity transitions. This paper introduces smooth transition regression models to study threshold-based price elasticity of the top 4 brands across 20 fast-moving consumer good categories. Threshold-based price elasticity is fo...

  10. Stability in Organic Milk Farm Prices: A Comparative Study

    OpenAIRE

    Su, Ye; Brown, Scott; Cook, Michael L.

    2013-01-01

    The organic milk pay price is more stable year round and increases every year. However, the conventional milk price varies within the year and from year to year. As an emerging segment of the milk industry, consumer demand for organic milk is increasing rapidly. The growth in demand relative to supply provides organic milk producers and processors large premiums over the conventional milk price. Many conventional dairy farms have converted to organic operations for the more stable price. The ...

  11. Wealth Transfers from Implementing Real-Time Retail Electricity Pricing

    OpenAIRE

    Borenstein, Severin

    2005-01-01

    Adoption of real-time electricity pricing %u2014 retail prices that vary hourly to reflect changing wholesale prices %u2014 removes existing cross-subsidies to those customers that consume disproportionately more when wholesale prices are highest. If their losses are substantial, these customers are likely to oppose RTP initiatives unless there is a supplemental program to offset their loss. Using data on a random sample of 636 industrial and commercial customers in southern California, I sho...

  12. Equilibrium prices supported by dual price functions in markets with non-convexities

    International Nuclear Information System (INIS)

    Bjoerndal, Mette; Joernsten, Kurt

    2004-06-01

    The issue of finding market clearing prices in markets with non-convexities has had a renewed interest due to the deregulation of the electricity sector. In the day-ahead electricity market, equilibrium prices are calculated based on bids from generators and consumers. In most of the existing markets, several generation technologies are present, some of which have considerable non-convexities, such as capacity limitations and large start up costs. In this paper we present equilibrium prices composed of a commodity price and an uplift charge. The prices are based on the generation of a separating valid inequality that supports the optimal resource allocation. In the case when the sub-problem generated as the integer variables are held fixed to their optimal values possess the integrality property, the generated prices are also supported by non-linear price-functions that are the basis for integer programming duality. (Author)

  13. MARKET ECONOMICS PRICING PARTICULARS

    Directory of Open Access Journals (Sweden)

    V. I. Parshin

    2011-01-01

    Full Text Available The price performs several economic functions: accounting, stimulation, distribution, demand and offer balancing, serving as production site rational choice criterion, information. Most important pricing principles are: price scientific and purpose-aimed substantiation, single pricing and price control process. Pricing process factors are external, internal, basic (independent on money-market, market-determined and controlling. Different pricing methods and models are to be examined, recommendations on practical application of those chosen are to be written.

  14. —Does Demand Fall When Customers Perceive That Prices Are Unfair? The Case of Premium Pricing for Large Sizes

    OpenAIRE

    Eric T. Anderson; Duncan I. Simester

    2008-01-01

    We analyze a large-scale field test conducted with a mail-order catalog firm to investigate how customers react to premium prices for larger sizes of women's apparel. We find that customers who demand large sizes react unfavorably to paying a higher price than customers for small sizes. Further investigation suggests that these consumers perceive that the price premium is unfair. Overall, premium pricing led to a 6% to 8% decrease in gross profits.

  15. Wine prices in the Nordic countries: Are they lower than in the region of origin?

    OpenAIRE

    Jan Bentzen; Valdemar Smith

    2002-01-01

    The aim of this paper is to analyse the retail prices on wine in different countries. In general, country-specific price differences on identical wines are expected to reflect differences in taxes, import prices, transportation and other costs. Also the competitive conditions on the retail markets in the relevant countries are important. Accordingly, lack of competition at the retail level, high import prices and high duties on wine all contribute to increase wine prices. Next, consumer price...

  16. Do expert ratings or economic models explain champagne prices?

    DEFF Research Database (Denmark)

    Bentzen, Jan Børsen; Smith, Valdemar

    2008-01-01

    Champagne is bought with low frequency and many consumers most likely do not have or seek full information on the quality of champagne. Some consumers may rely on the reputation of particular brands, e.g. "Les Grandes Marques", some consumers choose to gain information from sensory ratings...... of champagne. The aim of this paper is to analyse the champagne prices on the Scandinavian markets by applying a hedonic price function in a comparative framework with minimal models using sensory ratings....

  17. Consumer Finance

    OpenAIRE

    Peter Tufano

    2009-01-01

    Although consumer finance is a substantial element of the economy, it has had a smaller footprint within financial economics. In this review, I suggest a functional definition of the subfield of consumer finance, focusing on four key functions: payments, risk management, moving funds from today to tomorrow (saving/investing), and from tomorrow to today (borrowing). I provide data showing the economic importance of consumer finance in the American economy. I propose a historical explanation fo...

  18. “Call for Prices”: Strategic Implications of Raising Consumers' Costs

    OpenAIRE

    Preyas S. Desai; Anand Krishnamoorthy; Preethika Sainam

    2010-01-01

    Many consumer durable retailers often do not advertise their prices and instead ask consumers to call them for prices. It is easy to see that this practice increases the consumers' cost of learning the prices of products they are considering, yet firms commonly use such practices. Not advertising prices may reduce the firm's advertising costs, but the strategic effects of doing so are not clear. Our objective is to examine the strategic effects of this practice. In particular, how does making...

  19. Value-based differential pricing: efficient prices for drugs in a global context.

    Science.gov (United States)

    Danzon, Patricia; Towse, Adrian; Mestre-Ferrandiz, Jorge

    2015-03-01

    This paper analyzes pharmaceutical pricing between and within countries to achieve second-best static and dynamic efficiency. We distinguish countries with and without universal insurance, because insurance undermines patients' price sensitivity, potentially leading to prices above second-best efficient levels. In countries with universal insurance, if each payer unilaterally sets an incremental cost-effectiveness ratio (ICER) threshold based on its citizens' willingness-to-pay for health; manufacturers price to that ICER threshold; and payers limit reimbursement to patients for whom a drug is cost-effective at that price and ICER, then the resulting price levels and use within each country and price differentials across countries are roughly consistent with second-best static and dynamic efficiency. These value-based prices are expected to differ cross-nationally with per capita income and be broadly consistent with Ramsey optimal prices. Countries without comprehensive insurance avoid its distorting effects on prices but also lack financial protection and affordability for the poor. Improving pricing efficiency in these self-pay countries includes improving regulation and consumer information about product quality and enabling firms to price discriminate within and between countries. © 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.

  20. Endogenous versus exogenous generic reference pricing for pharmaceuticals.

    Science.gov (United States)

    Antoñanzas, F; Juárez-Castelló, C A; Rodríguez-Ibeas, R

    2017-12-01

    In this paper we carry out a vertical differentiation duopoly model applied to pharmaceutical markets to analyze how endogenous and exogenous generic reference pricing influence competition between generic and branded drugs producers. Unlike the literature, we characterize for the exogenous case the equilibrium prices for all feasible relevant reference prices. Competition is enhanced after the introduction of a reference pricing system. We also compare both reference pricing systems on welfare grounds, assuming two different objective functions for health authorities: (i) standard social welfare and (ii) gross consumer surplus net of total pharmaceutical expenditures. We show that regardless of the objective function, health authorities will never choose endogenous reference pricing. When health authorities are paternalistic, the exogenous reference price that maximizes standard social welfare is such that the price of the generic drug is the reference price while the price of the branded drug is higher than the reference price. When health authorities are not paternalistic, the optimal exogenous reference price is such that the price of the branded drug is the reference price while the price of the generic drug is lower than the reference price.

  1. Ramsey prices in the Italian electricity market

    International Nuclear Information System (INIS)

    Bigerna, Simona; Bollino, Carlo Andrea

    2016-01-01

    In this paper, we derive optimal zonal prices in the Italian day-ahead electricity market using estimation of a complete system of hourly demand in 2010–2011. In Italy, the hourly equilibrium price for all buyers is computed as a uniform average of supply zonal prices, resulting from market splitting due to line congestion. We model ex-ante individual bids expressed by heterogeneous consumers, which are distinguished by geographical zones. Using empirical estimations, we compute demand elasticity values and new zonal prices, according to a Ramsey optimal scheme. This is a new approach in the wholesale electricity market literature, as previous studies have discussed the relative merit of zonal prices, considering only the issue of line congestion. Our results show that the optimal pricing scheme can improve welfare in the day-ahead Italian electricity market, with respect to both the existing uniform price scheme and the proposal to charge the existing supply zonal prices to the demand side. - Highlights: • We model and estimate the demand of heterogeneous buyers in the electricity market. • Transmission line congestion creates welfare distortions in the market. • We derive optimal Ramsey prices in the Italian day-ahead electricity market. • We compare optimal prices with historical ones showing how to improve welfare.

  2. Energy pricing. Economics and principles

    Energy Technology Data Exchange (ETDEWEB)

    Conkling, Roger L. [Portland Univ., OR (United States). School of Business Administration

    2011-07-01

    This book describes the processes through which rates for energy consumption are derived, ranging from initial analyses of the supply and demand parameters to the final forms and levels of end-use consumer prices. The author argues against aggressive accounting procedures, and suggests criteria for choosing firm's position on pending public policy issues. A handbook on energy formulae for non-professionals is included in the book. The author is adjunct professor at the University of Portland. (orig.)

  3. Deregulated power prices: comparison of diurnal patterns

    International Nuclear Information System (INIS)

    Ying Li; Flynn, P.C.

    2004-01-01

    We examine electrical power price, and in particular its daily and average weekday vs. weekend pattern of change, for 14 deregulated markets. Power price in deregulated markets shows fundamentally different patterns. North American markets show a monotonic diurnal weekday price pattern, while all other markets studied show more than one price peak. Deregulated power markets differ in maximum vs. minimum daily average price and in average weekday to weekend price, in turn creating a different incentive for a consumer to time shift power consuming activities. Markets differ in the extent to which a small fraction of the days shapes the average diurnal pattern and value of price. Deregulated markets show a wide variation in the correlation between load and price. Some deregulated markets, most notably Britain and Spain, show patterns that are predictable and consistent, and hence that can encourage a customer to shape consumption behaviors. Other markets, for example South Australia, have patterns that are inconsistent and irregular, and hence are hard for a customer to interpret; a customer in such a market will have a higher incentive to escape risk through hedging mechanisms. (Author)

  4. Deregulated power prices: comparison of diurnal patterns

    International Nuclear Information System (INIS)

    Li Ying; Flynn, Peter C.

    2004-01-01

    We examine electrical power price, and in particular its daily and average weekday vs. weekend pattern of change, for 14 deregulated markets. Power price in deregulated markets shows fundamentally different patterns. North American markets show a monotonic diurnal weekday price pattern, while all other markets studied show more than one price peak. Deregulated power markets differ in maximum vs. minimum daily average price and in average weekday to weekend price, in turn creating a different incentive for a consumer to time shift power consuming activities. Markets differ in the extent to which a small fraction of the days shapes the average diurnal pattern and value of price. Deregulated markets show a wide variation in the correlation between load and price. Some deregulated markets, most notably Britain and Spain, show patterns that are predictable and consistent, and hence that can encourage a customer to shape consumption behaviors. Other markets, for example South Australia, have patterns that are inconsistent and irregular, and hence are hard for a customer to interpret; a customer in such a market will have a higher incentive to escape risk through hedging mechanisms

  5. Consumers' Privacy Choices in the Era of Big Data

    NARCIS (Netherlands)

    Prüfer, Jens; Dengler, Sebastian

    2018-01-01

    Recent progress in information technologies provides sellers with detailed knowledge about consumers' preferences, approaching perfect price discrimination in the limit. We construct a model where consumers with less strategic sophistication than the seller's pricing algorithm face a trade-off when

  6. Achieving Consumer Purchase Payoffs: A Used Car Purchase.

    Science.gov (United States)

    Maynes, E. Scott; Maynes, Blanche R.

    1997-01-01

    This case study of a used car purchase illuminates the concepts and principles that should guide purchase decisions. It suggests that consumers should be aware there is little correlation between price and quality; competent shopping yields better quality; and consumers must decide their preferred trade-off between price and quality. (SK)

  7. Consumer Fetish

    DEFF Research Database (Denmark)

    Arnould, Eric; Cayla, Julien

    2015-01-01

    in the organizational fetishization of consumers, that is, how in the process of understanding and managing markets, a quasimagical fascination with amalgams of consumer voices, images, and artefacts comes about. We offer several contributions. First, we demonstrate the pertinence of (primarily anthropological...

  8. Fuel switching? Demand destruction? Gas market responses to price spikes

    International Nuclear Information System (INIS)

    Lippe, D.

    2004-01-01

    This presentation defined fuel switching and addressed the issue regarding which consumers have the capability to switch fuels. In response to short term price aberrations, consumers with fuel switching capabilities reduce their use of one fuel and increase consumption of an alternative fuel. For example, natural gas consumption by some consumers declines in response to price spikes relative to prices of alternative fuels. This presentation also addressed the issue of differentiating between fuel switching and demand destruction. It also demonstrated how to compare gas prices versus alternative fuel prices and how to determine when consumers will likely switch fuels. Price spikes have implications for long term trends in natural gas demand, supply/demand balances and prices. The power generating sector represents a particular class of gas consumers that reduce operating rates of gas fired plants and increase operating rates of other plants. Some gas consumers even shut down plants until gas prices declines and relative economies improve. Some practical considerations for fuel switching include storage tank capacity, domestic refinery production, winter heating season, and decline in working gas storage. tabs., figs

  9. The evolution of electricity prices in an uncertain world. Contracting and managing the price risk

    International Nuclear Information System (INIS)

    Vassilopoulos, Ph.; Rapin, D.

    2004-01-01

    With the liberalization of the electricity market, the large industrial consumers saw their electric bill changing nature. Before, this price reflected a long term negotiation with the monopoly, now it is established in a free way via wholesale markets. This evolution marks a transfer of the management of price risk from the producer towards the consumer. This change is not in itself a problem if the hedging instruments are adapted. We note a contamination of the price of the derivative products by the spot while at the same time the traditional relation between cash and term is not always valid for electricity because of its non storability. When well even the price of the derivative products would be formed in an autonomous way, it poses a second problem: that of their indexing on price references like Platt's whose result is assimilated more to a survey of large producers than a true confrontation of supply and demand. This article proposes to examine this change of nature and behaviour of electricity prices. After having explained the intrinsically volatile characteristic of spot prices, we will recall that the products in the long term are not always optimal solutions to decrease this price risk. Lastly, we will highlight a solution of skirting at the risks mentioned above: contracting between producers and consumers. (authors)

  10. Retail fuel price adjustment in Germany: A threshold cointegration approach

    International Nuclear Information System (INIS)

    Asane-Otoo, Emmanuel; Schneider, Jan

    2015-01-01

    Consumers in Germany often complain that retail fuel prices usually adjust quickly to crude oil price increases than decreases and characterize this pricing pattern as market power exploitation. In this paper, we use both weekly national and daily city-specific (Berlin, Hamburg, Munich and Cologne) data to investigate the extent to which retail fuel prices in Germany adjust to changes in the international crude oil price. At the national level with weekly prices, we find positive asymmetries for both gasoline and diesel within the period 2003–2007, reflecting that retail prices react more swiftly to crude oil price increases than decreases. In contrast, for 2009–2013, we observe symmetric adjustment and negative asymmetry for retail diesel and gasoline prices, respectively. The city level analysis supports our findings in the latter time period. Thus, regulatory measures aimed at the retail fuel market over recent years seem to have been effective, and, contrary to consumers' perception, we find no evidence for excessive market power or collusion. - Highlights: • The paper examines the adjustment of German retail fuel (gasoline and diesel) prices to international crude oil price changes. • An error correction model with threshold cointegration is used to investigate the price dynamics. • The findings generally point to a competitive retail fuel pricing, notwithstanding the oligopolistic market structure

  11. Selling to Consumers with Endogenous Types

    NARCIS (Netherlands)

    Boone, J.; Shapiro, J.

    2006-01-01

    For many goods (such as experience goods or addictive goods), consumers' preferences may change over time.In this paper, we examine a monopolist's optimal pricing schedule when current consumption can affect a consumer's valuation in the future and valuations are unobservable.We assume that

  12. Consumer protection on the drinking water market

    OpenAIRE

    Kosová, Martina

    2009-01-01

    The goal of Bachelor thesis is marketing research on consumer preferences and knowledge in the field of drinking water and also analyze and compare the price of tap water and bottled water. The theoretical part describes how the consumer market with drinking water is protected in the Czech Republic. They compared the advantages and disadvantages of both types of drinking water.

  13. CONSUMER PREFERENCES FOR FOOD SAFETY ATTRIBUTES IN FRESH APPLES: MARKET SEGMENTS, CONSUMER CHARACTERISTICS, AND MARKETING OPPORTUNITIES

    OpenAIRE

    Baker, Gregory A.

    1999-01-01

    Past research has yielded conflicting results on consumer valuation of food safety characteristics. In this study, conjoint analysis is used to evaluate consumer responses to hypothetical apple products in a nationwide survey. Product characteristics include price, quality, pesticide use levels and the corresponding cancer risk, and type of government inspection. Consumers expressed a broad preference for reduced pesticide usage. Four market segments were identified corresponding to consumers...

  14. Regulated prices: for how long more?

    International Nuclear Information System (INIS)

    Pauron, M.

    2008-01-01

    Does a government has to intervene in a liberalize market? Between the purchasing power of consumers, the rise of raw materials price and the opening of markets, each announcement by the French government of an increase of the tariffs of Gaz de France (GDF: the historical French gas utility) irritates the ones and the others: the consumer considers it as another attack to its purchasing power, while the gas operators, GDF and its competitors, consider that the gas prices remain below the market prices, does not reflect the real increase of costs, and disturbs the good operation of the competitive market. This paper put the question of what must be the position of a government in a de-regulated energy market in order to implement sustainable economic measures and protect the low-income consumers. (J.S.)

  15. How is perceived inflation related to actual price changes in the European Union?

    NARCIS (Netherlands)

    Antonides, G.

    2008-01-01

    We analyze for which types of consumer expenditures the rate of price change influences consumer perception of inflation. We use both harmonized consumer price indices (HCPI) and series of perceived inflation from Eurostat in the 1996¿2006 time period for 13 European countries. After removing

  16. Constrained Monopoly Pricing with Random Participation

    OpenAIRE

    Basaluzzo, Gabriel; Miravete, Eugenio J

    2007-01-01

    We present a flexible model of monopoly nonlinear pricing with endogenous participation decisions of heterogeneous consumers. We make use of the moments that define the few self-selecting tariff options that are commonly used to implement the optimal nonlinear tariff to estimate how demand and cost variables affect the pricing strategies offered by incumbent monopolists in several early U.S. local cellular telephone markets through the different elements of the theoretical model: marginal cos...

  17. Pricing Strategy Selection Using Fuzzy Linear Programming

    OpenAIRE

    Elif Alaybeyoğlu; Y. Esra Albayrak

    2013-01-01

    Marketing establishes a communication network between producers and consumers. Nowadays, marketing approach is customer-focused and products are directly oriented to meet customer needs. Marketing, which is a long process, needs organization and management. Therefore strategic marketing planning becomes more and more important in today’s competitive conditions. Main focus of this paper is to evaluate pricing strategies and select the best pricing strategy solution while considering internal a...

  18. New Product Pricing in Quality Sensitive Markets

    OpenAIRE

    Stephen A. Smith

    1986-01-01

    This paper considers the problem of pricing a new product in a market having competing products of different qualities and market penetration levels, as measured by the cumulative number of units sold. Each customer type selects his optimal product based on maximizing consumer surplus. Pricing policies for a new product are determined for the seller based on cumulative profit maximization without discounting. An example is solved in detail for two demand function forms.

  19. Petroleum Prices, Taxation and Subsidies in India

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-07-01

    The current Indian system of effectively subsidised petroleum product prices has significant implications for the emergence of India as a major global energy consumer, for the integrity of India's Central Government budget and for investment in India's growing oil and petroleum sector. This paper is part one of a broader study that looks at the current system of petroleum pricing and the macroeconomic, microeconomic, regional and global effects of this system.

  20. Petroleum Prices, Taxation and Subsidies in India

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-07-01

    The current Indian system of effectively subsidised petroleum product prices has significant implications for the emergence of India as a major global energy consumer, for the integrity of India's Central Government budget and for investment in India's growing oil and petroleum sector. This paper is part one of a broader study that looks at the current system of petroleum pricing and the macroeconomic, microeconomic, regional and global effects of this system.

  1. Tiered co-payments, pricing, and demand in reference price markets for pharmaceuticals.

    Science.gov (United States)

    Herr, Annika; Suppliet, Moritz

    2017-12-01

    Health insurance companies curb price-insensitive behavior and the moral hazard of insureds by means of cost-sharing, such as tiered co-payments or reference pricing in drug markets. This paper evaluates the effect of price limits - below which drugs are exempt from co-payments - on prices and on demand. First, using a difference-in-differences estimation strategy, we find that the new policy decreases prices by 5 percent for generics and increases prices by 4 percent for brand-name drugs in the German reference price market. Second, estimating a nested-logit demand model, we show that consumers appreciate co-payment exempt drugs and calculate lower price elasticities for brand-name drugs than for generics. This explains the different price responses of brand-name and generic drugs and shows that price-related co-payment tiers are an effective tool to steer demand to low-priced drugs. Copyright © 2017 Elsevier B.V. All rights reserved.

  2. Consumer perceptions

    DEFF Research Database (Denmark)

    Ngapo, T. M.; Dransfield, E.; Martin, J. F.

    2004-01-01

    Consumer focus groups in France, England, Sweden and Denmark were used to obtain insights into the decision-making involved in the choice of fresh pork and attitudes towards today's pig production systems. Many positive perceptions of pork meat were evoked. Negative images of the production systems...... that there was no link between the negative images of production methods and their purchase behaviour. The groups were clearly confused and mistrusted the limited information available at the point of purchase. Careful consideration should be given to meat labelling, in particular taking account of the evident consumer...... ethnocentrism, to assure that such information is targeted to enhance consumer confidence....

  3. Pricing and Trust

    DEFF Research Database (Denmark)

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

    -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......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...

  4. When Supermarket Consumers Get Stocked in the Middle

    DEFF Research Database (Denmark)

    Hansen, Torben; Jensen, Jan Møller; Solgaard, Hans Stubbe

    2011-01-01

    , suggesting that consumers with a high-quality/low-price preference structure should be disconfirmed and thus dissatisfied. However, this study finds that – when patronising discount stores and upscale stores – consumers who attach high weight to quality and price are likely to become more satisfied than......Purpose – The purpose of this paper is to investigate whether consumer supermarket satisfaction is influenced by the mere composition of consumers' preference structure, as opposed to more widespread approaches where consumer satisfaction is regarded as the degree to which consumer expectations and....../or preferences are met. Design/methodology/approach – Survey data were collected from 130 consumers using self-administered questionnaires. Structural equation modelling was used to test the authors' proposed hypotheses. Findings – According to consumers, not many supermarkets offer high quality at low prices...

  5. State energy price and expenditure report 1989

    International Nuclear Information System (INIS)

    1991-01-01

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

  6. State energy price and expenditure report 1989

    Energy Technology Data Exchange (ETDEWEB)

    1991-09-30

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

  7. 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 described...

  8. Impact of the internet on consumers

    OpenAIRE

    Mihaela BADEA; Bogdan PÎRVULESCU

    2014-01-01

    The main purpose of this study is to show the current opportunities, prospects and the impact of the Internet on the consumer. This will be achieved by comparing the behaviour of the British consumer and the Romanian consumer and the changes that appeared under the influence of the Internet. Among the actions undertaken by the Internet marketing, which deals with the promotion of products at a certain price, a concept that has become significant in recent years, there is the placement of prod...

  9. The eligibility of the natural gas consumers

    International Nuclear Information System (INIS)

    2004-07-01

    The eligible consumers are allowed to chose freely their natural gas producers and negotiate the prices and the supply modalities. In this context this information paper presents the legislative and regulation framework of the natural gas consumers eligibility, a definition of the possible eligible consumers and a list at the 30 january 2004. It provides also recommendations and answers to the more often asked questions on the administrative procedures and the contracts. (A.L.B.)

  10. Consumer Demand for Major Foods in Egypt

    OpenAIRE

    Basem Fayaad; Stanley R. Johnson; Mohamed El-Khishin

    1995-01-01

    This study provides information on the structure of the consumer demand for major foods in Egypt. The information is in the form of key parameters for consumer demand systems. The modern theory of consumer behavior is the basis for estimating systems of demand equations. These systems yield estimates of own- and cross-price elasticities. The Linear Almost Ideal Demand System (LAIDS) model is applied in estimating a system of demand equations for food commodities. A full demand matrix results ...

  11. AGA answers complaints on burner tip prices

    International Nuclear Information System (INIS)

    Anon.

    1992-01-01

    This paper reports that the American Gas Association has rebutted complaints that natural gas prices have dropped at the wellhead but not at the burner tip. AGA Pres. Mike Baly the an association study of the issue found that all classes of customers paid less for gas in 1991 than they did in 1984, when gas prices were at their peak. He the, the study also shows that 100% of the wellhead price decline has been passed through to natural gas consumers in the form of lower retail prices. Baly the the average cost of gas delivered to all customers classes fell by $1.12/Mcf from 1984 to 1991, which exceeds the $1.10/Mcf decline in average wellhead prices during the same period

  12. How market structure drives commodity prices

    Science.gov (United States)

    Li, Bin; Wong, K. Y. Michael; Chan, Amos H. M.; So, Tsz Yan; Heimonen, Hermanni; Wei, Junyi; Saad, David

    2017-11-01

    We introduce an agent-based model, in which agents set their prices to maximize profit. At steady state the market self-organizes into three groups: excess producers, consumers and balanced agents, with prices determined by their own resource level and a couple of macroscopic parameters that emerge naturally from the analysis, akin to mean-field parameters in statistical mechanics. When resources are scarce prices rise sharply below a turning point that marks the disappearance of excess producers. To compare the model with real empirical data, we study the relationship between commodity prices and stock-to-use ratios in a range of commodities such as agricultural products and metals. By introducing an elasticity parameter to mitigate noise and long-term changes in commodities data, we confirm the trend of rising prices, provide evidence for turning points, and indicate yield points for less essential commodities.

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

    DEFF Research Database (Denmark)

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

    2012-01-01

    Context effects in choice settings have received recent attention but little is known about the impact of context on choice consistency and the extent to which consumers apply choice heuristics. The sequence of alternatives in a choice set is examined here as one specific context effect. We compare...... 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....

  14. Markets and pricing for interruptible electric power

    International Nuclear Information System (INIS)

    Gedra, T.W.; Varaiya, P.P.

    1993-01-01

    The authors propose a market for interruptible, or callable, forward contracts for electric power, in which the consumer grants the power supplier the right to interrupt a given unit of load in return for a price discount. The callable forward contracts are traded continuously until the time of use. This allows recourse for those customers with uncertain demand, while risk-averse consumers can minimize their price risk by purchasing early. Callable forward contracts are simple in form, and can be directly incorporated into the utility's economic dispatch procedure

  15. Consumer Neoteny

    Directory of Open Access Journals (Sweden)

    Mathieu Alemany Oliver

    2016-07-01

    Full Text Available This research explores childlike consumer behavior from an evolutionary perspective. More specifically, it uses the concept of neoteny to show that the retention of ancestors’ juvenile characteristics is related to specific behaviors. The results of factor analyses conducted on a UK sample (n = 499 and a French sample (n = 292 7 years later indicate four dimensions of childlike consumer behavior, namely, stimulus seeking, reality conflict, escapism, and control of aggression.

  16. Competitive Pricing by a Price Leader

    OpenAIRE

    Abhik Roy; Dominique M. Hanssens; Jagmohan S. Raju

    1994-01-01

    We examine the problem of pricing in a market where one brand acts as a price leader. We develop a procedure to estimate a leader's price rule, which is optimal given a sales target objective, and allows for the inclusion of demand forecasts. We illustrate our estimation procedure by calibrating this optimal price rule for both the leader and the follower using data on past sales and prices from the mid-size sedan segment of the U.S. automobile market. Our results suggest that a leader-follow...

  17. 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.

  18. When the weather governs the price

    International Nuclear Information System (INIS)

    Braaten, Jan

    2003-01-01

    In the winter 2002-2003 the Nordic power market experienced a price shock: prices rose by a factor of eight during the autumn of 2002. This was caused above all by a record failure of the water influx to the entire Nordic hydropower system. But extreme cold and technical problems with import from the Continent aggravated the problem. The probability of so small influx in autumn is less than 0.5 per cent. The large variation in influx, in particular from one year to the next, create large price fluctuations which can be unpleasant for the consumers. At the same time the price mechanism is important for the proper balance between demand and supply. It was the high prices that last winter raised the import to Norway and Sweden and that caused idle fossil power stations to be restarted and the consumption to go down. A better energy balance in Norway and Sweden will increase the supply security, but in order to exploit the unstable hydropower resources well and to achieve an acceptable supply security in dry years flexibility is needed in production, consumption, and trade with the surrounding world. Most measures to increase the flexibility cost money, and it is probably impossible and economically undesirable to protect the consumers from all price shocks. It should be possible, however, for those who want stable expenses, to choose contracts with firm prices for the whole consumption or for part of it.

  19. The Price per Prospective Consumer of Providing Therapist Training and Consultation in Seven Evidence-Based Treatments within a Large Public Behavioral Health System: An Example Cost-Analysis Metric

    Directory of Open Access Journals (Sweden)

    Kelsie H. Okamura

    2018-01-01

    Full Text Available ObjectivePublic-sector behavioral health systems seeking to implement evidence-based treatments (EBTs may face challenges selecting EBTs given their limited resources. This study describes and illustrates one method to calculate cost related to training and consultation to assist system-level decisions about which EBTs to select.MethodsTraining, consultation, and indirect labor costs were calculated for seven commonly implemented EBTs. Using extant literature, we then estimated the diagnoses and populations for which each EBT was indicated. Diagnostic and demographic information from Medicaid claims data were obtained from a large behavioral health payer organization and used to estimate the number of covered people with whom the EBT could be used and to calculate implementation-associated costs per consumer.ResultsFindings suggest substantial cost to therapists and service systems related to EBT training and consultation. Training and consultation costs varied by EBT, from Dialectical Behavior Therapy at $238.07 to Cognitive Behavioral Therapy at $0.18 per potential consumer served. Total cost did not correspond with the number of prospective consumers served by an EBT.ConclusionA cost-metric that accounts for the prospective recipients of a given EBT within a given population may provide insight into how systems should prioritize training efforts. Future policy should consider the financial burden of EBT implementation in relation to the context of the population being served and begin a dialog in creating incentives for EBT use.

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

    International Nuclear Information System (INIS)

    Li, Y.; Flynn, P.C.

    2006-01-01

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

  1. CONSUMER THEORY

    Directory of Open Access Journals (Sweden)

    Ilie BĂBĂIŢĂ

    2010-06-01

    Full Text Available The behaviour of the economic agent – customer is a rational type of behaviour in order to maximize the satisfaction achieved through the use of commodities. In order to determine a rational behaviour, we start from the premise that every costumer has complete and accurate information on: the structure of commodities existing on the market and their ability to comply with certain wishes, market prices levels and the size of income that shall be spent in a given period in order to purchase various commodities. In order to fulfil its needs, the rational costumer has to chose from a basket of commodities the ones that: provide the greatest satisfaction under the circumstances of income and price restrictions.

  2. Hospitality managers’ price-ending beliefs: a survey and applications

    OpenAIRE

    Schindler, Robert M.; Parsa, H. G.; Naipaul, Sandra

    2011-01-01

    The use of “just-below” pricing (such as pricing an item at $6.99 or $6.95, rather than $7.00) has been common in some segments of the hospitality industry (such as quick-service and mid-scale dining). The results of a detailed survey of the price-ending beliefs of hospitality managers show that many believe that just-below prices connote good value and roundnumber prices connote high quality. Furthermore, the majority of these managers believe that consumers tend to drop off or otherwise giv...

  3. Inflation impact of food prices: Case of Serbia

    Directory of Open Access Journals (Sweden)

    Šoškić Dejan

    2015-01-01

    Full Text Available Food prices traditionally have an impact on inflation around the world. Movements in these prices are coming more from the supply side, then from the demand side. If treated as a supply shock, monetary policy should not react. However, food prices are part of headline inflation that is an official target for most central banks. Serbia conducts Inflation targeting and faces serious challenges with food price volatility. Food price volatility in Serbia hampers inflation forecasting, and may have a negative influence on inflationary expectations and public confidence in (i.e. credibility of the Central bank, all of crucial importance for success of Inflation targeting. There are several important possible improvements that may decrease volatility of food prices but also limit negative impact of food price volatility on Consumer Price Index (CPI as a measure of inflation. These improvements are very important for success of Inflation targeting in Serbia.

  4. Heterogeneity and option pricing

    NARCIS (Netherlands)

    Benninga, Simon; Mayshar, Joram

    2000-01-01

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

  5. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

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

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

  6. Impact of cigarette minimum price laws on the retail price of cigarettes in the USA.

    Science.gov (United States)

    Tynan, Michael A; Ribisl, Kurt M; Loomis, Brett R

    2013-05-01

    Cigarette price increases prevent youth initiation, reduce cigarette consumption and increase the number of smokers who quit. Cigarette minimum price laws (MPLs), which typically require cigarette wholesalers and retailers to charge a minimum percentage mark-up for cigarette sales, have been identified as an intervention that can potentially increase cigarette prices. 24 states and the District of Columbia have cigarette MPLs. Using data extracted from SCANTRACK retail scanner data from the Nielsen company, average cigarette prices were calculated for designated market areas in states with and without MPLs in three retail channels: grocery stores, drug stores and convenience stores. Regression models were estimated using the average cigarette pack price in each designated market area and calendar quarter in 2009 as the outcome variable. The average difference in cigarette pack prices are 46 cents in the grocery channel, 29 cents in the drug channel and 13 cents in the convenience channel, with prices being lower in states with MPLs for all three channels. The findings that MPLs do not raise cigarette prices could be the result of a lack of compliance and enforcement by the state or could be attributed to the minimum state mark-up being lower than the free-market mark-up for cigarettes. Rather than require a minimum mark-up, which can be nullified by promotional incentives and discounts, states and countries could strengthen MPLs by setting a simple 'floor price' that is the true minimum price for all cigarettes or could prohibit discounts to consumers and retailers.

  7. Consumer choice of pork chops in Taiwan.

    Science.gov (United States)

    Chen, M T; Guo, H L; Tseng, T F; Roan, S W; Ngapo, T M

    2010-07-01

    Digital photographs of pork chops varying systematically in appearance were presented to 716 Taiwanese consumers in a study that aimed to identify the most important characteristics of fresh pork which determine consumer choice in Taiwan. Relationships between consumer segmentation in choice and socio-demographic and cultural differences were also investigated. Colour and fat cover were the most frequently chosen of the four characteristics studied. Dark red colour was preferred by 64% of consumers and lean fat cover by 44%. Marbling and drip were less important in the decision making process being used by less than a half of consumers. The four preference-based clusters of consumers showed no correlation with socio-demographic-based consumer clusters, but did show significant links with possession of a refrigerator, age at which schooling was completed, liking pork for its price and gender of consumer. Crown Copyright 2010. Published by Elsevier Ltd. All rights reserved.

  8. Pricing Strategy in Online Retailing Marketplaces of Homogeneous Goods: Should High Reputation Seller Charge More?

    Science.gov (United States)

    Liu, Yuewen; Wei, Kwok Kee; Chen, Huaping

    There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers.

  9. Store managers’ perception of the new Walmart/Massmart price promotion strategy

    OpenAIRE

    2015-01-01

    M.Com. Hi-Lo price promotions are engraved in the South African fast moving consumer goods (FMCG) sector where price cuts and pricing specials are used to draw consumer traffic into stores. Massmart, in particular, Game stores are known for price cuts in the way they promote hence the arrival of Walmart present a dilemma for Games stores because Walmart is known for its everyday low pricing strategy (EDLP) compared to Hi-Lo price promotions which are popular in Game stores...

  10. Consumer's inflation expectations in Brazil

    Directory of Open Access Journals (Sweden)

    Fernando Ormonde Teixeira

    Full Text Available Abstract This paper investigates what are the main components of consumer's inflation expectations. We combine the FGV's Consumer Survey with the indices of inflation (IPCA and government regulated prices, professional forecasts disclosed in the Focus report, and media data which we crawl from one of the biggest and most important Brazilian newspapers, Folha de São Paulo, to determine what factors are responsible for and improve consumer's forecast accuracy. We found gender, age and city of residence as major elements when analyzing micro-data. Aggregate data shows the past inflation as an important trigger in the formation of consumers' expectations and professional forecasts as negligible. Moreover, the media plays a significant role, accounting not only for the expectations' formation but for a better understanding of actual inflation as well.

  11. Utility shopping: are consumers ready?

    International Nuclear Information System (INIS)

    Barrados, A.

    1999-01-01

    This report provides an overview of public readiness to deal with deregulation of the electric power industry , based on an analysis of public reaction to the deregulation of the transportation, telecommunications and natural gas industries which already have taken place. The report also examines the reasons why residential consumers have reason to be wary of deregulation. These include the likelihood of slow development of the intended competition, the consequent limits on consumer choices, the possibility of increased prices, decreased quality of service and erosion of social values such as affordability and accessibility. The report concludes with a number of recommendations aimed at ensuring the existence of workable competition for residential consumers, that reliable and meaningful information is available as competition in deregulated markets gets underway, that independent sources of information are widely available, and that basic consumer protection against deceptive and borderline marketing practices, a regulatory oversight mechanism and public reporting mechanisms are in place before competition begins. 33 refs

  12. Price regulation in the Spanish energy sectors: who benefits?

    International Nuclear Information System (INIS)

    Arocena, Pablo; Contin, Ignacio; Huerta, Emilio

    2002-01-01

    This paper analyses the distribution of benefits between firms and consumers due to the price regulation of the Spanish energy sectors (electricity, oil fuels and gas) during the decade 1987-1997. To that effect, we compare the actual evolution of energy prices with alternate benchmarks in order to assess the potential existence of a pro-industry or a pro-consumer bias in the pricing policies followed by the regulator. Our results show a pro-industry-biased regulatory context, where consumers benefited very little from price control. The successive price adjustments over time allowed the companies to keep all the productivity gains and cost reductions and to increase their profitability rates relative to those achieved in the manufacturing sector. (Author)

  13. Price regulation in the Spanish energy sectors: who benefits?

    Energy Technology Data Exchange (ETDEWEB)

    Arocena, Pablo; Contin, Ignacio; Huerta, Emilio [Departamento de Gestion de Empresas, Universidad Publica de Navarra, Campus de Arrosadia. 31006, Pamplona (Spain); [Canterbury Business School, University of Kent Canterbury (United Kingdom)

    2002-08-01

    This paper analyses the distribution of benefits between firms and consumers due to the price regulation of the Spanish energy sectors (electricity, oil fuels and gas) during the decade 1987-1997. To that effect, we compare the actual evolution of energy prices with alternate benchmarks in order to assess the potential existence of a pro-industry or a pro-consumer bias in the pricing policies followed by the regulator. Our results show a pro-industry-biased regulatory context, where consumers benefited very little from price control. The successive price adjustments over time allowed the companies to keep all the productivity gains and cost reductions and to increase their profitability rates relative to those achieved in the manufacturing sector. (Author)

  14. Value-based pricing

    OpenAIRE

    Netseva-Porcheva Tatyana

    2010-01-01

    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. .

  15. Organizing Consumers for a Decarbonized Electricity System

    DEFF Research Database (Denmark)

    Pallesen, Trine; Jenle, Rasmus Ploug

    2018-01-01

    This paper studies a Danish smart grid experiment, EcoGrid EU, designed to sustain the increase of wind power in the electricity system. EcoGrid EU is designed as a real-time market, through which engineers seek to realize price responsive electricity consumers through the introduction of smart...... meters, variable short-term price signals and training users. Based on observations and interviews with scientist, consumers and technicians, this paper analyses the attempt to produce a new kind of electricity consumer. Drawing on social studies of markets, we argue that the project entails constructing...... a new form of calculative agency. We illustrate the extensive work put into the creation of a new, reconfigured electricity consumer, as well as the challenges associated with the construction of consumers willing and able to act in accordance with the EcoGrid script. On one hand, this study adds...

  16. Functional Magnetic Resonance Imaging in Consumer Research

    DEFF Research Database (Denmark)

    Reimann, Martin; Schilke, Oliver; Weber, Bernd

    2011-01-01

    of prior fMRI research related to consumer behavior and highlights the features that make fMRI an attractive method for consumer and marketing research. The authors discuss advantages and limitations and illustrate the proposed procedures with an applied study, which investigates loss aversion when buying......Although the field of psychology is undergoing an immense shift toward the use of functional magnetic resonance imaging (fMRI), the application of this methodology to consumer research is relatively new. To assist consumer researchers in understanding fMRI, this paper elaborates on the findings...... and selling a common product. Results reveal a significantly stronger activation in the amygdala while consumers estimate selling prices versus buying prices, suggesting that loss aversion is associated with the processing of negative emotion. © 2011 Wiley Periodicals, Inc....

  17. Gas prices in the UK: markets and insecurity supply

    International Nuclear Information System (INIS)

    Wright, P.

    2006-01-01

    In this article, Professor P. Wright argues that the high and volatile gas price experienced by UK consumers over the last 3 years are the result of the extend of liberalization in the UK - which has made UK prices much more sensitive to insecurities of supply. Businesses pay the cost of this, straightaway, while the strategies which gas companies have used to respond to heightened price risks means domestic consumers also bear the cost of higher supply-markups. The prospect of high levels of demand in bad winters then just adds to price risk and its associated costs. The implication of this analysis is that it is illogical for the UK's regulator and government to blame the UK's high prices on the slow progress of liberalization in the rest of Europe - greater liberalization in Europe might simply replicate the UK's price difficulties throughout Europe

  18. Gas prices in the UK: markets and insecurity of supply

    International Nuclear Information System (INIS)

    Wright, P.

    2006-01-01

    In this article Professor Philip Wright argues that the high and volatile gas prices experienced by UK consumers over the last 3 years are the result of the extent of liberalization in the UK which has made UK prices much more sensitive to insecurities of supply. Businesses pay the cost of this, straightaway, while the strategies which gas companies have used to respond to heightened price risks means domestic consumers also bear the cost of higher supply-markups. The prospect of high levels of demand in bad winters then just adds to price risk and its associated costs. The implication of this analysis is that it is illogical for the UK's regulator and government to blame the UK's high prices on the slow progress of liberalization in the rest of Europe - greater liberalization in Europe might simply replicate the UK's price difficulties throughout Europe. (author)

  19. Consumer-Related Food Waste

    DEFF Research Database (Denmark)

    Aschemann-Witzel, Jessica; Hooge, Ilona de; Normann, Anne

    2016-01-01

    Food waste has received increasing attention in recent years. As part of their corporate social responsibility strategies, food supply chain actors have started to act towards avoiding and reducing food waste. Based on a literature review, an expert interview study, and example cases, we discuss...... food marketing and the role and responsibility of retail. Food marketing and retailing contribute to consumer-related food waste via decisions on date labeling, packaging sizes and design elements, and pricing strategies encouraging overpurchase, as well as communication shifting consumer priorities...... to the disadvantage of food waste avoidance. Potential actions to tackle food waste relate to improved packaging and information, altering pricing strategies, and cooperation with other actors across the supply chain. Three cases highlight the extent to which moral and strategic motives are interlinked...

  20. Price, exclusivity and luxury: Exploring London's luxury hotels

    African Journals Online (AJOL)

    2016-07-11

    Jul 11, 2016 ... Price, exclusivity and luxury: Exploring London's luxury hotels. Andy Heyes ... strategy now looks to target middle-market consumers with reasonable ...... celebrities and high profiles from politics to corporate…whom are well ...

  1. Perceptions of unfairness in price increases: an experimental study

    Directory of Open Access Journals (Sweden)

    Verônica Feder Mayer

    2014-09-01

    Full Text Available This experimental study investigates antecedents and consequences of perceptions of price unfairness in a price increase situation. The proposed theoretical model states that consumer dependence on the service provider as well as the relevance the consumer attributes to the service (for the consumer's life will affect his/her degree of (a unfairness price perception, (b anger, and (c intention to complain and retaliate. The results support all the hypotheses specified in the model. The findings not only indicate that some situations of unfairness price perception lead to stronger emotions and more dramatic reactions from consumers, but also allow us to predict which situations of perceived unfairness offer greater risks and have greater potential for conflict.

  2. Analysts : no need to panic over prices / Steven Paulikas

    Index Scriptorium Estoniae

    Paulikas, Steven

    2004-01-01

    Pärast EL-iga liitumist on Balti riikides hinnad tõusnud keskmiselt 5,7%, pankade hinnangul on oodata ka inflatsiooni kiirenemist. Lisa: Thank you, accession: Consumer Price Index, percent increase, year-on-year

  3. 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...

  4. Demand side management in recycling and electricity retail pricing

    Science.gov (United States)

    Kazan, Osman

    This dissertation addresses several problems from the recycling industry and electricity retail market. The first paper addresses a real-life scheduling problem faced by a national industrial recycling company. Based on their practices, a scheduling problem is defined, modeled, analyzed, and a solution is approximated efficiently. The recommended application is tested on the real-life data and randomly generated data. The scheduling improvements and the financial benefits are presented. The second problem is from electricity retail market. There are well-known patterns in daily usage in hours. These patterns change in shape and magnitude by seasons and days of the week. Generation costs are multiple times higher during the peak hours of the day. Yet most consumers purchase electricity at flat rates. This work explores analytic pricing tools to reduce peak load electricity demand for retailers. For that purpose, a nonlinear model that determines optimal hourly prices is established based on two major components: unit generation costs and consumers' utility. Both are analyzed and estimated empirically in the third paper. A pricing model is introduced to maximize the electric retailer's profit. As a result, a closed-form expression for the optimal price vector is obtained. Possible scenarios are evaluated for consumers' utility distribution. For the general case, we provide a numerical solution methodology to obtain the optimal pricing scheme. The models recommended are tested under various scenarios that consider consumer segmentation and multiple pricing policies. The recommended model reduces the peak load significantly in most cases. Several utility companies offer hourly pricing to their customers. They determine prices using historical data of unit electricity cost over time. In this dissertation we develop a nonlinear model that determines optimal hourly prices with parameter estimation. The last paper includes a regression analysis of the unit generation cost

  5. A hybrid model for electricity spot prices

    International Nuclear Information System (INIS)

    Anderson, C.L.D.

    2004-01-01

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

  6. A hybrid model for electricity spot prices

    Energy Technology Data Exchange (ETDEWEB)

    Anderson, C.L.D.

    2004-07-01

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

  7. Swedish district heating - owners, prices and profitability

    International Nuclear Information System (INIS)

    Andersson, Sofie; Werner, S.

    2001-01-01

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

  8. Regional prices in the Swedish wood-fuel market

    International Nuclear Information System (INIS)

    Hillring, Bengt

    1999-01-01

    This paper analyses, through a statistical survey, the regional distribution of prices on the commercial wood-fuel market for district heating plants and the pellets market for single family houses. The existing market watch of the national Swedish wood-fuel market has been developed for both refined and unrefined wood-fuels. The last five years the trend for wood-fuel prices on the district heating market has been stable, with a slight increase in the price of refined wood-fuels. However, on the young and fast-growing household market for pellets, prices have increased 12% during the last three years. The distribution of prices for northern, middle and southern Sweden indicates differences within 5% between the regions. The limited price difference between Swedish regions are a product of a large domestic supply and an increasing trade among regions in Europe, putting pressure on prices. Regional differences, mirrored as transportation distances and local production costs are key factors that could explain this regional price variation. However, the development of a commercial market with less regulation tends to level out prices. Consumers on the household market purchase small quantities and do not have the same possibility as district heating companies to take advantage of the oversupply opportunity and thus face a faster price development. The weaker market position of the consumers also tends to give homogeneous prices between regions of the residential sector. (Author)

  9. The effect of costs and regulation on electricity prices

    International Nuclear Information System (INIS)

    Schlaf, E.P.

    1991-01-01

    Two distinct econometric tests were performed to determine if state price regulation of public utilities has had a measurable impact on retail electricity prices. The results of both tests agree that, during the 1971-1985 period, average national electricity prices in each of the three major consuming sectors and the four Census regions were below the level which would have been preferred by profit-maximizing monopolists. Electricity consumers received price benefits during the sample period as a result of regulation. The first test of the effectiveness of state price regulation used a 'revealed preference' approach by comparing the actual prices set by regulatory commissioners with prices and outcomes predicted by three competing theories of regulatory motivation. The second test of the effectiveness of price regulation combined traditional cost function inputs with regulatory variables in reduced-form price equations to determine whether the amount of regulatory intensity, as measured by the number of staff members per regulated utility, is associated with declining electricity prices and whether appointed commissioners allow higher prices than elected commissioners

  10. German energy prices top the scale as Commission examines price transparency

    International Nuclear Information System (INIS)

    Anon.

    1994-01-01

    The results of the price transparency directive indicate clearly that gas and electricity prices to both large and small consumers vary widely between member states. And one message which will hit home to large industrial consumers of gas and electricity when they examine the Commission's recent analysis is that relocating or setting up a subsidiary in Germany is a decision which must be taken with care. The Commission's first attempt to examine the directive's operation reveals that the majority of gas and electricity prices in Germany are higher than those in the bulk of other member states. While the reasons for this are known - for electricity it is mainly due to the Kohlepfennig, a surcharge added to power bills to support the uneconomic coal industry -the Commission's analysis focuses on the price difference between member states rather than the various reasons - tariff policy, taxes, environmental costs - for the difference. (Author)

  11. Consumer Behavior

    NARCIS (Netherlands)

    Hoyer, W.D.; MacInnis, D.J.; Pieters, R.

    2013-01-01

    CONSUMER BEHAVIOR combines a foundation in key concepts from marketing, psychology, sociology, and anthropology with a highly practical focus on real-world applications for today's business environment. The new edition of this popular, pioneering text incorporates the latest cutting-edge research

  12. Vulnerable Consumers in the Deregulated Dutch Health System

    NARCIS (Netherlands)

    Booltink, L.; Genugten, M.L. van; Lako, C.J.

    2015-01-01

    Public service deregulation is favoured for motivating providers to offer consumers better price-quality services. Consequently, consumers are enabled to make informed choices and choose for the best service provider. However, recent publications reveal that consumers are not capable of exercising

  13. PROTECTION OF ENERGY CONSUMERS IN THE ECONOMIES OF EUROPEAN COUNTRIES

    Directory of Open Access Journals (Sweden)

    Mihaela ȘTEȚ

    2013-10-01

    Full Text Available The paper realizes an analyze of the position of the energy consumers and presents some ways of influencing the behaviour of the energy consumers. The paper dealt also with the issue of the protection of domestic electricity and gas consumer which aims, in particular, its rights to receive energy at any time, in safe conditions and at affordable prices.

  14. Inquiry report about electricity prices

    International Nuclear Information System (INIS)

    2004-10-01

    In March 2004, the French minister of economy, finances and industry put in the hands of the general inspection of finances and of the general council of mines, the mission to carry out an expertise about the evolution of electricity prices since February 2000, date of the progressive opening of the electricity market to competition. Since 2003, many customers, in particular the big power consuming industries, have started to worry in front of the increase of electricity prices. The conclusions of the expertise represent a contribution to the analysis of the operation of electricity markets and will participate to the improvement of this operation. This document comprises the synthesis of the report given to the minister and the full report. (J.S.)

  15. Prices regulation in price-cap: the lessons of the british gas industry; Reglementations tarifaires en price-cap: les lecons de l'industrie gaziere anglaise

    Energy Technology Data Exchange (ETDEWEB)

    David, L.

    2003-07-01

    This article examines the problem of the price-cap regulation applied to the british gas transport. The RPI-X cap is a particular form of the price cap. This cap seems to be more remunerative for the regulatory firm than a cap calculated on the Laspeyres index because it authorizes a greater freedom of prices choice, to the prejudice of the consumers. Facing these perverse effects, Cowan proposed in 1997 a new system, not more satisfying. Another equation is analyzed in this article, proposed by Ofgem. Meanwhile this system presents no improvement of the consumers surplus facing the RPI-X cap. (A.L.B.)

  16. Possible space weather influence on the Earth wheat prices

    Science.gov (United States)

    Pustil'Nik, L.; Yom Din, G.; Dorman, L.

    We present development of our study of possible influence of space weather modulated by cycle of solar activity on the price bursts in the Earth markets In our previous works 1 2 we showed that correspondent response may have place in the specific locations characterized by a high sensitivity of the weather cloudiness in particular to cosmic ray variation b risk zone agriculture c isolated wheat market with limited external supply of agriculture production We showed that in this situation we may wait specific price burst reaction on unfavorable phase of solar activity and space weather what lead to corresponding abnormalities in the local weather and next crop failure We showed that main types of manifestation of this connection are a Distribution of intervals between price bursts must be like to the distribution of intervals between correspondent extremes of solar activity minimums or maximums b price asymmetry between opposite states of solar activity price in the one type of activity state is systematically higher then in the opposite one We showed in our previous publications that this influence in interval distribution is detected with high reliability in Mediaeval England 1250-1700 both for wheat prices and price of consumables basket We showed that for period of Maunder Minimum price asymmetry of wheat prices observed all prices in minimum state of solar activity was higher the prices in the next maximum state We showed later that this price asymmetry had place in 20-th century in USA durum prices too In

  17. Effect of price display on brand luxury perceptions

    OpenAIRE

    Parguel , Béatrice; Delécolle , Thierry; Valette-Florence , Pierre

    2014-01-01

    Based on two experimental studies, this paper investigates the impact of price display in the luxury sector on perceived brand luxury and brand attitude. Using a sample of students, Study1 shows that price display is associated with higher perceived quality, uniqueness, and conspicuousness for a fictitious luxury brand presented in a store window. Using two real luxury brands and a larger sample of consumers, Study 2 confirms the positive effect of price display on the brand’s perceived consp...

  18. Price Trends Are Similar for Fruits, Vegetables, and Snack Foods

    OpenAIRE

    Kuchler, Fred; Stewart, Hayden

    2008-01-01

    An increase in the price of fruits and vegetables relative to less healthy foods could reduce consumers’ incentives to purchase fruits and vegetables and result in less healthy diets. Whether such a change in relative prices and incentives has occurred in the United States is difficult to prove because of substantial quality improvements in many fresh fruits and vegetables. For commonly consumed fresh fruits and vegetables for which quality has remained fairly constant, analysis of price tren...

  19. The Effects of Brand Loyalty on Competitive Price Promotional Strategies

    OpenAIRE

    Jagmohan S. Raju; V. Srinivasan; Rajiv Lal

    1990-01-01

    This paper analyzes the role played by brand loyalty in determining optimal price promotional strategies used by firms in a competitive setting. (Loyalty is operationalized as the minimum price differential needed before consumers who prefer one brand switch to another brand.) Our objective is to examine how loyalties toward the competing brands influence whether or not firms would use price promotions in a product category. We also examine how loyalty differences lead to variations in the de...

  20. The Impact of Price upon Online Customer Shopping Behaviour

    OpenAIRE

    張,巧韵

    2010-01-01

    This research aims to understand how price influences online consumer decision-making when purchasing tourism products through websites in Taiwan. In-depth company and consumer interviews were carried out to gain insights into customer perceptions of price. Companies such as travel agencies,computer reservation systems, hotel reservation systems and academics are embedded in this study in order to capture a holistic picture.

  1. Exporter Price Premia?

    DEFF Research Database (Denmark)

    Jäkel, Ina Charlotte; Sørensen, Allan

    This paper provides new evidence on manufacturing firms' output prices: in Denmark, on average, exported varieties are sold at a lower price (i.e. a negative exporter price premium) relative to only domestically sold varieties. This finding stands in sharp contrast to previous studies, which have...... found positive exporter price premia. We also document that the exporter price premium varies substantially across products (both in terms of sign and magnitude). We show that in a standard heterogeneous firms model with heterogeneity in quality as well as production efficiency there is indeed no clear......-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...

  2. 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.

  3. Coal can fetch a better price

    International Nuclear Information System (INIS)

    Sinha, M.K.

    1995-01-01

    An attempt has been made in the article to locate grey areas in the present grading system, pricing policy and marketing strategy, with a view to find avenues for obtaining additional revenue for coal being marketed presently, which could also improve the satisfaction of the consumers and safeguard their future interest. (author). 5 tabs

  4. The real-time price elasticity of electricity

    NARCIS (Netherlands)

    Lijesen, M.G.

    2007-01-01

    The real-time price elasticity of electricity contains important information on the demand response of consumers to the volatility of peak prices. Despite the importance, empirical estimates of the real-time elasticity are hardly available. This paper provides a quantification of the real-time

  5. Rising natural gas and electricity prices in the Netherlands

    International Nuclear Information System (INIS)

    Roggen, M.

    2004-01-01

    In a free market, the price for electricity rises rather than falls. And as for the gas price, the consumer will be facing strong fluctuations. For that matter, it is only slightly connected with the liberalization of the market. An employee of Roland Berger Strategy Consultants has delved deeply into the matter, down to the euro [nl

  6. Price premium of organic salmon in Danish retail sale

    DEFF Research Database (Denmark)

    Ankamah Yeboah, Isaac; Nielsen, Max; Nielsen, Rasmus

    2016-01-01

    for organic salmon in Danish retail sale using consumer panel scanner data from households by applying a random effect hedonic price model that permits unobserved household heterogeneity. A price premium of 20% was identified for organic salmon. The magnitude of this premium is comparable to organic labeled...

  7. The third oil shock: The effects of lower oil prices

    Energy Technology Data Exchange (ETDEWEB)

    Pearce, J

    1983-01-01

    This book assesses how oil prices have affected other elements of the economy and assesses the costs and benefits that could result from lower oil prices for different groups of countries. The book also analyses the extent of OPEC's influence, the consumers countries' needs for energy security and the altered role of the oil industry.

  8. Posted Price Mechanisms for a Random Stream of Customers

    NARCIS (Netherlands)

    Correa, José R.; Foncea, Patricio; Hoeksma, Ruben; Oosterwijk, Tim; Vredeveld, Tjark

    2017-01-01

    Posted price mechanisms constitute a widely used way of selling items to strategic consumers. Although suboptimal, the attractiveness of these mechanisms comes from their simplicity and easy implementation. In this paper, we investigate the performance of posted price mechanisms when customers

  9. The Impact of Price Disclosure on Dynamic Shopping Decisions

    NARCIS (Netherlands)

    B.G.C. Dellaert (Benedict); V.Y. Golounov (Vladislav); J. Prabhu (Jaideep)

    2005-01-01

    textabstractA potentially powerful way to assist consumers in making dynamic shopping decisions is to disclose price information to them before they shop, for example by posting prices on the Internet. This paper addresses the differential impact of disclosing either only current, or both current

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

    Science.gov (United States)

    Hazlett, Denise; Hill, Cynthia D.

    2003-01-01

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

  11. Price-Transparency and Cost Accounting

    Science.gov (United States)

    Eakin, Cynthia; Fischer, Katrina

    2015-01-01

    Health care reform is directed toward improving access and quality while containing costs. An essential part of this is improvement of pricing models to more accurately reflect the costs of providing care. Transparent prices that reflect costs are necessary to signal information to consumers and producers. This information is central in a consumer-driven marketplace. The rapid increase in high deductible insurance and other forms of cost sharing incentivizes the search for price information. The organizational ability to measure costs across a cycle of care is an integral component of creating value, and will play a greater role as reimbursements transition to episode-based care, value-based purchasing, and accountable care organization models. This article discusses use of activity-based costing (ABC) to better measure the cost of health care. It describes examples of ABC in health care organizations and discusses impediments to adoption in the United States including cultural and institutional barriers. PMID:25862425

  12. Price-Transparency and Cost Accounting

    Directory of Open Access Journals (Sweden)

    Peter Hilsenrath PhD

    2015-04-01

    Full Text Available Health care reform is directed toward improving access and quality while containing costs. An essential part of this is improvement of pricing models to more accurately reflect the costs of providing care. Transparent prices that reflect costs are necessary to signal information to consumers and producers. This information is central in a consumer-driven marketplace. The rapid increase in high deductible insurance and other forms of cost sharing incentivizes the search for price information. The organizational ability to measure costs across a cycle of care is an integral component of creating value, and will play a greater role as reimbursements transition to episode-based care, value-based purchasing, and accountable care organization models. This article discusses use of activity-based costing (ABC to better measure the cost of health care. It describes examples of ABC in health care organizations and discusses impediments to adoption in the United States including cultural and institutional barriers.

  13. Valuation Struggles over Pricing

    DEFF Research Database (Denmark)

    Pallesen, Trine

    2016-01-01

    of creating political markets, and political prices, here understood as market distortion. This paper studies the ‘politics’ of pricing by following the adoption of the first feed-in tariff in France. Pricing as a way of achieving non-economic ends, such as climate mitigation, brings the values of several...... 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...

  14. Price consciousness and purchase intentions for new food products: the moderating effect of product category knowledge when price is unknown

    OpenAIRE

    Hansen, Håvard

    2013-01-01

    This is an Accepted Manuscript of an article published by Taylor & Francis in JOURNAL of FOOD PRODUCTS MARKETING in July 2013, available online: http://wwww.tandfonline.com/ 10.1080/10454446.2013.724363. This study examines the degree to which consumers’ price consciousness affects their purchase intentions for a newly introduced product when the price of the product is unknown. Based on data from 186 consumers exposed to a new product offering, the results show that price consciousness...

  15. Report of the Select Committee on Petroleum Product Pricing

    International Nuclear Information System (INIS)

    Dooks, B.

    2004-01-01

    An all-party Committee of the House of Legislative Assembly of Nova Scotia was established to investigate the pricing of petroleum products such as gasoline and home heating fuel. The Committee conducted public hearings in Halifax, Yarmouth, Bridgewater, Sydney, and Truro, in order to seek input from consumers, producers, suppliers and operators. The mandate of the Select Committee on Petroleum Product Pricing was to investigate the supply and pricing of fuels, including gasoline and home heating oil and to determine whether current prices are justified and fair. This investigation included an examination of the reasons for the current level of product prices; product supply; reasons for volatility in product prices; the rationale for differences in prices across different regions of the province; factors that affect the viability of low volume outlets in the rural and urban marketplace; factors that affect the viability of independent retail operators in the province; and, any evidence of predatory pricing practices at the wholesale and retail levels of the market. The Select Committee also made recommendations related to fair and reasonable product prices at the consumer level, retail and wholesale margins, as well as other actions that may be required to correct imbalances in the distribution and sales of these products to consumers in the province. 8 appendices

  16. The Hybrid Consumer: Exploring the Drivers of a New Consumer Behaviour Type

    OpenAIRE

    Grönroos, Christian; Leppänen, Hanna

    2009-01-01

    A dramatically different consumption pattern seems to be emerging among a vast group of consumers. This may mean that conventional consumer stereotypes and segmentation theory are becoming outdated. The so called hybrid consumers seem to increasingly opt for both premium and budget alternatives in various product and service categories while mid-priced alternatives are losing share in their consumption basket. Although this type of polarisation, or dispersion, is already recognized as an impo...

  17. The distinct economic effects of the ethanol blend wall, RIN prices and ethanol price premium due to the RFS

    NARCIS (Netherlands)

    Gorter, de H.; Drabik, D.

    2015-01-01

    The ethanol blend wall and high RIN prices has become a controversial policy issue. We develop a model showing how RIN prices reflect the costs of overcoming the blend wall, namely biodiesel consumed in excess of its mandate and expansion of E85 sales. These costs are very high and are shown to be

  18. Consumer attitudes to enzymes in food production

    DEFF Research Database (Denmark)

    Søndergaard, Helle Alsted; Grunert, Klaus G.; Scholderer, Joachim

    2005-01-01

    The use of enzymes in food production has potential benefits for both food manufacturers and consumers. A central question is how consumers react to new ways of producing foods with enzymes. This study investigates the formation of consumer attitudes to different enzyme production methods in three...... European countries. Results show that consumers are most positive towards non-GM enzyme production methods. The enzyme production method is by far the most important factor for the formation of buying intentions compared to price and benefits. Results also show that environmental concern and attitudes...... to technological progress are the socio-political attitudes that have the highest predictive value regarding attitudes to enzyme production methods....

  19. Pricing regulations in Great Britain

    International Nuclear Information System (INIS)

    Cicoletti, G.

    1993-01-01

    This paper briefly describes the structure and functions of Great Britain's essential electric power regulatory authority institutionalized by the 1989 British Electricity Act, i.e., the Office of Electricity Regulation, OFFER, and the responsibilities and tasks of the head of OFFER -the Director General of Electricity Supply (DGES). In particular, with regard to the latter, the paper describes how the DGES works together with regional electricity commissions to ensure the respect, by the various utilities, of consumer price caps and compliance with overall quality of service standards, as well as, to oversee 'pooling' activities by producers and distributors

  20. Pricing regulations in Great Britain

    International Nuclear Information System (INIS)

    Cicoletti, G.

    1993-01-01

    This paper briefly describes the structure and functions of Great Britain's essential electric power regulatory authority institutionalized by the 1989 British Electricity Act, i.e., the Office of Electricity Regulation, OFFER, and the responsibilities and tasks of the head of OFFER - the Director General of Electricity Supply (DGES). In particular, with regard to the latter, the paper describes how the DGES works together with regional electricity commissions to ensure the respect, by the various utilities, of consumer price caps and compliance with overall quality of service standards, as well as, to oversee 'pooling' activities by producers and distributors

  1. Electricity pricing and management systems

    International Nuclear Information System (INIS)

    Sawal, D.M.; Bajapai, Ashok

    1997-01-01

    The installed capacity of power generation in India is at present 80,000 MW. Out of the total 5.79 lakh inhabitated villages in the country, 4.79 villages have been electrified so far. Total number of consumers of electricity are about 95 million in the country. For such a large country with population of over 900 million and area of 32.873 lakh sq. kms., the role of electricity pricing and management system of the power sector is of paramount importance

  2. Tariff Impact on the Domestic Price of Vegetable Oil in Iran and the Associated Issues

    Directory of Open Access Journals (Sweden)

    omid gilanpour

    2015-05-01

    Full Text Available This study uses vector error correction model to examine the effects of oilseeds, crude oil and vegetable oil tariffs on vegetable oil consumer price. Monthly data sets for the years 2004-2013 and VAR and VECM models were applied for this study. Research findings indicates only a long term equilibrium relation between the study variables .The effect of vegetable oil tariffs on consumer and producer price index are 0.4 and 0.07, respectively. Furthermore, one percent increase in the oil seeds and crude oil tariff, will increase consumer prices by 2.35, 0.19percent. The huge gap between the impacts of the two tariffs –e.g. oilseeds and crude oil tariffs- on consumer price shows that oil industries work with low efficiency. This practically doubles the impact of tariff on consumers. Accordingly, structural reform in the oil industry can develop oil production and prevent additional burden upon the consumer price.

  3. CO2 price dynamics. The implications of EU emissions trading for electricity prices and operations

    International Nuclear Information System (INIS)

    Sijm, J.P.M.; Bakker, S.J.A.; Harmsen, H.W.; Lise, W.; Chen, Y.

    2006-07-01

    The experience with CO 2 trading and allowances prices in the last year is reviewed, with a focus on the factors influencing the price of electricity in EU countries. A statistical analysis investigates the relationship between the large increases in electricity prices experienced in 2005 and their relationship to CO 2 prices. In addition, a market simulation analysis using the COMPETES model is performed to assess the extent to which profit-maximizing generators, some of which possess market power, might pass on the opportunity cost of allowances to consumers. The paper concludes by reviewing possible options for policy makers to address the possible adverse implications of price increases caused by CO/sub 2/ trading.

  4. Who speaks for the health consumer?

    Science.gov (United States)

    Fox, Michael H

    2008-08-01

    Although consumer-directed health care has become a fashionable concept in recent years, stories abound asking whether the so-called free market in health care can provide adequate access to quality health care at an affordable price. In spite of these concerns, consumer-directed health care continues as the face of legitimacy behind an industry-driven campaign to limit regulatory protections of the consumer in the market and encourage the growth of health insurance products that place spending options closer to the consumer, whether or not these options are available, affordable, or easily understood. Understanding whether this empowerment is real begins with first asking what it now means to be a health consumer. This commentary offers perspective on the dilemma faced by millions of Americans in navigating our health care system under the assumption that market-driven choices foster consumer empowerment in health care, and suggests approaches for expanding the true consumer voice.

  5. The equilibrium price range of oil: economics, politics and uncertainty in the formation of oil prices

    International Nuclear Information System (INIS)

    Giraud, P.-N.

    1995-01-01

    This paper attempts to clarify the articulation between economic and political factors in the formation of petroleum prices. The essential point is that when factors control significant low cost reserves and will not or cannot adopt behaviour of a 'substantial economic rationality' then the economic analysis does not allow a unique dynamic equilibrium price to be determined. However, it does permit definition of an equilibrium price range within which political preferences may be expressed. Finally, the paper draws some conclusions on what could be discussed within the scope of a new oil producer-consumer dialogue. (author)

  6. Long memory in German energy price indices

    Energy Technology Data Exchange (ETDEWEB)

    Barros, Carlos P. [Lisbon Univ. (Portugal). Inst. Superior de Economia e Gestao; Caporale, Guglielmo Maria [Brunel Univ., London (United Kingdom). Centre for Empirical Finance; Gil-Alana, Luis A. [Navarra Univ., Pamplona (Spain). Faculty of Economics and Business Administration

    2012-09-15

    This study examines the long-memory properties of German energy price indices (specifically, import and export prices, as well as producer and consumer prices) for hard coal, lignite, mineral oil and natural gas adopting a fractional integration modelling framework. The analysis is undertaken using monthly data from January 2000 to August 2011. The results suggest nonstationary long memory in the series (with orders of integration equal to or higher than 1) when breaks are not allowed for. However, endogenous break tests indicate a single break in all series except for producer prices for lignite for which two breaks are detected. When such breaks are taken into account, and with autocorrelated disturbances, evidence of mean reversion is found in practically all cases.

  7. Electricity price forecasting through transfer function models

    International Nuclear Information System (INIS)

    Nogales, F.J.; Conejo, A.J.

    2006-01-01

    Forecasting electricity prices in present day competitive electricity markets is a must for both producers and consumers because both need price estimates to develop their respective market bidding strategies. This paper proposes a transfer function model to predict electricity prices based on both past electricity prices and demands, and discuss the rationale to build it. The importance of electricity demand information is assessed. Appropriate metrics to appraise prediction quality are identified and used. Realistic and extensive simulations based on data from the PJM Interconnection for year 2003 are conducted. The proposed model is compared with naive and other techniques. Journal of the Operational Research Society (2006) 57, 350-356.doi:10.1057/palgrave.jors.2601995; published online 18 May 2005. (author)

  8. Fair value enrichment pricing: is it fair

    International Nuclear Information System (INIS)

    1978-01-01

    The Atomic Energy Act of 1954, as amended (Public Law 83-702), requires the Department of Energy to recover all costs for its enrichment activities over a reasonable period of time. The proposed legislation would allow the Department to recover its costs plus a percentage of these costs. Six major factors are examined to determine whether the legislation should be adopted: What effect will the legislation have on the prices paid by ultimate consumers of electricity; will the increase in price resulting from the legislation help promote the establishment of a private uranium enrichment industry; how will the price increase impact on the administration's nuclear non-proliferation goals; what additional revenues will be generated from domestic and foreign customers; should the United States continue to perpetuate a subsidy to the U.S. nuclear industry; what effect, if any, will the new price have on the U.S. supply and demand situation for energy

  9. Tax Anti-avoidance Through Transfer Pricing

    DEFF Research Database (Denmark)

    Rossing, Christian Plesner; Riise Johansen, Thomas; Pearson, Thomas C.

    2016-01-01

    -driven discipline to be dealt with by accounting and tax experts. Instead, MNEs face the task of establishing a complex fit with their environment beyond the typical stakeholders with transfer pricing, i.e. tax authorities. These include government officials, tax activists, and consumers who voice......This paper examines the case of Starbucks’ UK branch, which became subject to massive public criticism over alleged tax avoidance. Despite Starbucks arguing that its transfer pricing practices were in full compliance with regulatory requirements, public pressure for higher corporate tax payments...... led Starbucks to increase its UK tax payment on transfer pricing income beyond regulatory requirements. This case study suggests that MNE tax behavior on international transfer pricing is not strictly a matter of compliance with formal tax regulation. We demonstrate the way an MNE attempts to re...

  10. Energy prices and the promotion of energy conservation. A background study for energy conservation programme

    International Nuclear Information System (INIS)

    1994-01-01

    The prices of fuels in the international markets affect the development of consumer prices of energy in Finland. In the near future no factors can be foreseen, which would cause major increases in the prices of oil, coal or gas. It can thus not be expected that increased fuel prices would motivate more efficient energy conservation. In international comparison, consumer prices of energy have been relatively low in Finland. This applies especially to electricity. After the removal of price controls, energy prices have been determined by the markets. The influence of the public authorities in energy pricing is put into effect through taxation. The price of energy has a fairly small effect on energy consumption in a short term, but longer term effects are more significant. Energy products are faxed in all western countries. (orig.)

  11. PRICES IN COMPETITIVE SYSTEM

    Directory of Open Access Journals (Sweden)

    VADUVA MARIA

    2017-08-01

    Full Text Available Regularities of competitive market determine rules for determining prices and their dynamics. Orientation prices to competition (competitive pricing is the strategy most frequently used in countries with market economies and especially for exports. Moreover, in an economy dominated by market competition it cannot be ignored without certain risks the prices resulting from competition between products bidders. Companies that use this type of strategy seek to maintain a level of prices linked to that charged by other competitors (or exporting producers generally no longer covering production costs or demand, relying on the assumption that the average market price is a reasonable basis of costs. But the way how practical guidance and reporting to the competition in every price strategy, will be determined by the company's market position, by the available power and enjoyed prestige, objectives and prospects of its market share etc. according to these elements, there may be several versions of pricing strategies oriented to competitors.

  12. Retail Price Model

    Science.gov (United States)

    The Retail Price Model is a tool to estimate the average retail electricity prices - under both competitive and regulated market structures - using power sector projections and assumptions from the Energy Information Administration.

  13. Natural gas pricing

    International Nuclear Information System (INIS)

    Freedenthal, C.

    1993-01-01

    Natural gas pricing is the heart and soul of the gas business. Price specifically affects every phase of the industry. Too low a price will result in short supplies as seen in the mid-1970s when natural gas was scarce and in tight supply. To fully understand the pricing of this energy commodity, it is important to understand the total energy picture. In addition, the effect and impact of world and US economies, and economics in general are crucial to understanding natural gas pricing. The purpose of this presentation will be to show the parameters going into US natural gas pricing including the influence of the many outside industry factors like crude oil and coal pricing, market drivers pushing the gas industry, supply/demand parameters, risk management for buyers and sellers, and other elements involved in pricing analysis

  14. Metal prices in the United States through 2010

    Science.gov (United States)

    ,

    2013-01-01

    prices, which has been helpful in the preparation of this publication. Prices in this report have been graphed in 1992 constant dollars to show the effects of inflation as measured by the U.S. Bureau of Labor Statistics Consumer Price Index for All Urban Consumers, a widely used measure of overall inflation in the United States. These prices are not tabulated, but a table of the deflators used is given in an appendix. Constant dollar prices can be used to show how prices that producers receive would have less purchasing power.

  15. Dynamical Models For Prices With Distributed Delays

    Directory of Open Access Journals (Sweden)

    Mircea Gabriela

    2015-06-01

    Full Text Available In the present paper we study some models for the price dynamics of a single commodity market. The quantities of supplied and demanded are regarded as a function of time. Nonlinearities in both supply and demand functions are considered. The inventory and the level of inventory are taken into consideration. Due to the fact that the consumer behavior affects commodity demand, and the behavior is influenced not only by the instantaneous price, but also by the weighted past prices, the distributed time delay is introduced. The following kernels are taken into consideration: demand price weak kernel and demand price Dirac kernel. Only one positive equilibrium point is found and its stability analysis is presented. When the demand price kernel is weak, under some conditions of the parameters, the equilibrium point is locally asymptotically stable. When the demand price kernel is Dirac, the existence of the local oscillations is investigated. A change in local stability of the equilibrium point, from stable to unstable, implies a Hopf bifurcation. A family of periodic orbits bifurcates from the positive equilibrium point when the time delay passes through a critical value. The last part contains some numerical simulations to illustrate the effectiveness of our results and conclusions.

  16. Price discrimination in two-sided markets

    Directory of Open Access Journals (Sweden)

    Kai Zhang

    2016-03-01

    Full Text Available The use of a price discrimination strategy is an important tool in competition. It can hurt firms and benefit consumers in a one-sided market. However, in two-sided markets, its primary goal is to attract more agents or increase profits. Here, the performance of a second-degree price discrimination strategy in the context of duopoly two-sided platforms is analysed. Two exogenous variables, which include the discount rate and the price discrimination threshold, are used in order to examine whether the price discrimination strategy could help two-sided platforms achieve their objective, which is to maximise their market value. Three cases are considered, and we demonstrate that the price discrimination strategy cannot attract more agents and at the same time increase the profits; a lower price discrimination threshold cannot ensure larger markets shares; a higher discount rate is detrimental to the profit of a platform. However, this is good for its market shares. Moreover, discriminative pricing increases the competition.

  17. NUKEM adjusts price definitions

    International Nuclear Information System (INIS)

    Anon.

    1994-01-01

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

  18. Delegating Pricing Decisions

    OpenAIRE

    Pradeep Bhardwaj

    2001-01-01

    An outstanding problem in marketing is why some firms in a competitive market delegate pricing decisions to agents and other firms do not. This paper analyzes the impact of competition on the delegation decision and, in turn, the impact of delegation on prices and incentives. The theory builds on the simplest framework of competition in two dimensions: prices and (sales agents') effort. Specifically, we are interested in answering the following questions: (1) Does competition affect the price...

  19. Price formation and transmission along the food commodity chain

    Directory of Open Access Journals (Sweden)

    Ivana Blažková

    2012-01-01

    Full Text Available The article is focused on analysis of price transmission along the wheat commodity chain in the Czech Republic, with the distinction on wheat products with low value added (wheat flour, respectively high value added (wheat rolls. The degree of vertical price transmission is measured to identify potential market failures, because asymmetric price transmission can be the result of existence of market power within the food commodity chain. The data basis is made up from monthly prices on partial markets of the analyzed commodity chain published by Czech Statistical Office and Ministry of Agriculture of the Czech Republic. The monitored time period is from January 2000 till October 2009. The analysis is based on calculation of the price transmission elasticity coefficient (evaluation of price transmission along the chain and the intensity of dependency of positive and negative inter-market price differences (evaluation whether positive or negative price changes are better transmitted among particular vertical markets. Time lag is tested as well. The assessment of price transmission along the wheat commodity chain confirmed the existence of market power especially on the retail stage and low impact of price changes of farm prices on final consumer food prices.

  20. Pricing of Contracts for Difference in the Nordic market

    International Nuclear Information System (INIS)

    Kristiansen, T.

    2004-01-01

    The purpose of this paper is to give an introduction to, and a pricing analysis of a new forward locational price differential product, Contracts for Difference (CfD), introduced the 17th of November 2000 at Nord Pool - the Nordic electricity exchange. To our knowledge there is no literature available of how the Nordic CfDs are priced. The CfD is a forward market product with reference to the difference between the future seasonal Area Price and System Price. By using available historical trading prices and spot prices for four seasonal contracts and one yearly contract, we analyze the relationships between the contract prices and the value of the underlying asset. For the first four seasonal contracts it appears that CfDs traded at Nord Pool are mostly over-priced relative to the underlying asset. Pricing theory for forward contracts explains this by the presence of a majority of risk-averse consumers who are willing to pay a risk premium for receiving the future price differential. We utilize statistical analysis with regard to the contract prices and the underlying asset, and find some interesting relationships. The analysis is preliminary due to the fact that the CfD market is relatively new. (Author)

  1. Price-elastic demand in deregulated electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Siddiqui, Afzal S.

    2003-05-01

    The degree to which any deregulated market functions efficiently often depends on the ability of market agents to respond quickly to fluctuating conditions. Many restructured electricity markets, however, experience high prices caused by supply shortages and little demand-side response. We examine the implications for market operations when a risk-averse retailer's end-use consumers are allowed to perceive real-time variations in the electricity spot price. Using a market-equilibrium model, we find that price elasticity both increases the retailers revenue risk exposure and decreases the spot price. Since the latter induces the retailer to reduce forward electricity purchases, while the former has the opposite effect, the overall impact of price responsive demand on the relative magnitudes of its risk exposure and end-user price elasticity. Nevertheless, price elasticity decreases cumulative electricity consumption. By extending the analysis to allow for early settlement of demand, we find that forward stage end-user price responsiveness decreases the electricity forward price relative to the case with price-elastic demand only in real time. Moreover, we find that only if forward stage end-user demand is price elastic will the equilibrium electricity forward price be reduced.

  2. Price competition on graphs

    NARCIS (Netherlands)

    Soetevent, A.R.

    2010-01-01

    This paper extends Hotelling's model of price competition with quadratic transportation costs from a line to graphs. I propose an algorithm to calculate firm-level demand for any given graph, conditional on prices and firm locations. One feature of graph models of price competition is that spatial

  3. Press point on prices

    International Nuclear Information System (INIS)

    Schilansky, J.L.

    2005-06-01

    This document presents information and statistical data on the prices of the crude oils, refining and petroleum products, at the date of the 28 June 2005: evolution of the barrel price, supply and demand, geo-policy, consumption, diesel and gasoline, prices at the service station. (A.L.B.)

  4. 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.

  5. Simulating Price-Taking

    Science.gov (United States)

    Engelhardt, Lucas M.

    2015-01-01

    In this article, the author presents a price-takers' market simulation geared toward principles-level students. This simulation demonstrates that price-taking behavior is a natural result of the conditions that create perfect competition. In trials, there is a significant degree of price convergence in just three or four rounds. Students find this…

  6. 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

  7. 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

  8. Limited use of price and quality advertising among American hospitals.

    Science.gov (United States)

    Muhlestein, David B; Wilks, Chrisanne E A; Richter, Jason P

    2013-08-29

    Consumer-directed policies, including health savings accounts, have been proposed and implemented to involve individuals more directly with the cost of their health care. The hope is this will ultimately encourage providers to compete for patients based on price or quality, resulting in lower health care costs and better health outcomes. To evaluate American hospital websites to learn whether hospitals advertise directly to consumers using price or quality data. Structured review of websites of 10% of American hospitals (N=474) to evaluate whether price or quality information is available to consumers and identify what hospitals advertise about to attract consumers. On their websites, 1.3% (6/474) of hospitals advertised about price and 19.0% (90/474) had some price information available; 5.7% (27/474) of hospitals advertised about quality outcomes information and 40.9% (194/474) had some quality outcome data available. Price and quality information that was available was limited and of minimal use to compare hospitals. Hospitals were more likely to advertise about service lines (56.5%, 268/474), access (49.6%, 235/474), awards (34.0%, 161/474), and amenities (30.8%, 146/474). Insufficient information currently exists for consumers to choose hospitals on the basis of price or quality, making current consumer-directed policies unlikely to realize improved quality or lower costs. Consumers may be more interested in information not related to cost or clinical factors when choosing a hospital, so consumer-directed strategies may be better served before choosing a provider, such as when choosing a health plan.

  9. National Economic Policies: The Impact on Consumer Welfare. Proceedings of the American Council on Consumer Interests Annual Conference (29th, Kansas City, Missouri, March 16-19, 1983).

    Science.gov (United States)

    Goebel, Karen P., Ed.

    These proceedings contain the texts of the papers presented at a conference on consumer interests. Addressed in the first series of concurrent sessions are the following topics: consumers' new economic positions, consumers' choices with respect to price and quality trade-offs, time value in consumption decisions, and consumer information issues.…

  10. Price promotions and marketing within points of sale around high schools in Greece during the 2012 economic crisis

    Directory of Open Access Journals (Sweden)

    Charis Girvalaki

    2015-12-01

    Price promotions were noted within the majority of POS close to schools. Aggressive promotional activities may hinder efforts to de-normalize tobacco use, especially during financial crisis when price promotions may pose as more attractive to potential consumers.

  11. Consumer Behavior

    OpenAIRE

    Tatiana Bass

    2011-01-01

    This article reviews the role played by a producer of goods and services in consumer life. But because the manufacturer can achieve its purpose, to obtain profit and to attract more clients, he needs to know the consumer’s needs and preferences. Equally important for the producer is to find solutions for his products and services to be developed in conditions of maximum efficiency and become more aware of why they are buying, find out who, what, from where, when, how and how much to buy and h...

  12. Analyzing the effects of past prices on reference price formation

    OpenAIRE

    van Oest, R.D.; Paap, R.

    2004-01-01

    textabstractWe propose a new reference price framework for brand choice. In this framework, we employ a Markov-switching process with an absorbing state to model unobserved price recall of households. Reference prices result from the prices households are able to remember. Our model can be used to learn how many prices observed in the past are used for reference price formation. Furthermore, we learn to what extent households have sufficient price knowledge to form an internal reference price...

  13. Microgrids Real-Time Pricing Based on Clustering Techniques

    Directory of Open Access Journals (Sweden)

    Hao Liu

    2018-05-01

    Full Text Available Microgrids are widely spreading in electricity markets worldwide. Besides the security and reliability concerns for these microgrids, their operators need to address consumers’ pricing. Considering the growth of smart grids and smart meter facilities, it is expected that microgrids will have some level of flexibility to determine real-time pricing for at least some consumers. As such, the key challenge is finding an optimal pricing model for consumers. This paper, accordingly, proposes a new pricing scheme in which microgrids are able to deploy clustering techniques in order to understand their consumers’ load profiles and then assign real-time prices based on their load profile patterns. An improved weighted fuzzy average k-means is proposed to cluster load curve of consumers in an optimal number of clusters, through which the load profile of each cluster is determined. Having obtained the load profile of each cluster, real-time prices are given to each cluster, which is the best price given to all consumers in that cluster.

  14. 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

  15. 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. .

  16. Consumer Purchasing Behaviour : Case study of Etisalat Nig.

    OpenAIRE

    Aremu, Olaitan

    2014-01-01

    The research is aimed at elicit attention to present marketing environment in Nigeria and as regard the importance of consumer purchasing behavior and this is also to ascertain if product brand, taste, personal income, and price and the what relationship it also have on consumer behavior toward Etisalat product. However, every company must develop new products that suite consumer pur-chase decision. This informed behavior affects how certain consumers react to new products and thereby af...

  17. 76 FR 13902 - Fair Credit Reporting Risk-Based Pricing Regulations

    Science.gov (United States)

    2011-03-15

    ... TRADE COMMISSION 16 CFR Parts 640 and 698 RIN R411009 Fair Credit Reporting Risk-Based Pricing... respective risk-based pricing rules to require disclosure of credit scores and information relating to credit scores in risk-based pricing notices if a credit score of the consumer is used in setting the material...

  18. 77 FR 9925 - Price Index Adjustments for Expenditure Limitations and Lobbyist Bundling Disclosure Threshold

    Science.gov (United States)

    2012-02-21

    ... FEDERAL ELECTION COMMISSION [Notice 2012-02] Price Index Adjustments for Expenditure Limitations...)(A)) are adjusted periodically to reflect changes in the consumer price index. See 2 U.S.C. 434(i)(3... difference between the price index, as certified to the Commission by the Secretary of Labor, for the 12...

  19. 76 FR 8368 - Price Index Adjustments for Contribution and Expenditure Limits and Lobbyist Bundling Disclosure...

    Science.gov (United States)

    2011-02-14

    ... FEDERAL ELECTION COMMISSION [Notice 2011-01] Price Index Adjustments for Contribution and... lobbyists (2 U.S.C. 434(i)(3)(A)) are adjusted periodically to reflect changes in the consumer price index... percent difference between the price index, as certified to the Commission by the Secretary of Labor, for...

  20. Pass-through of crude oil prices at different stages in Turkey

    Directory of Open Access Journals (Sweden)

    Fatih Akçelik

    2016-03-01

    Full Text Available This paper examines the degree of oil price pass-through to domestic prices at different stages of supply chain in Turkey. Our results, based on vector autoregressive models, point out that the pass-through to domestic motor fuel prices is considerably fast as expected and just one third of a change in crude oil prices is reflected to the motor fuel prices due to the high share of taxes on retail prices. On the other hand, it is shown that impact of oil prices on transport services takes a longer time compared to other domestic prices. Over the 2004–2014 period, estimates suggest that a 10% permanent change in the international crude oil prices is associated with a 0.42 percentage points change in consumer inflation at the end of one year. The final accumulated pass-through to consumer inflation reaches 0.50 percentage points. Moreover, the pass-through to producer prices is nearly twice as much as that to consumer prices. Findings also provide some evidence for a strengthening in oil price pass-through to consumer inflation over time, which might reflect the growing natural gas intensity of the economy.