Oil price shocks and policy implications the emergence of U.S. tight oil production: a case study

OpenAIRE

Voth, Jeffrey Michael

2015-01-01

How have shocks to supply and demand affected global oil prices; and what are key policy implications following the resurgence of oil production in the United States? Highlights: − The recent collapse in global oil prices was dominated by oversupply. − The future of tight oil in the United States is vulnerable to obstacles beyond oil prices. − Opinions on tight oil from the Top 25 think tank organizations are considered. Global oil prices have fallen more than fifty percent since ...

How to succeed with value-based pricing : A case study of how a Swedish OEM is working with price strategy in the context of globalization

OpenAIRE

HANNAH BJÖRK, HANNAH; FORSBERG, LINA

2015-01-01

In today’s world, change is faster than ever with rapid technological development and increasing global competition. The effects of globalization have led to more intense international competition when competitors originate from different parts of the world. Thanks to the use of new information technology, transparency has increased and made it possible for customers to compare products and prices between suppliers and prices in different markets and also buy cross-border. This puts pressure ...

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

Determinants of prices increase of agricultural commodities in a global context1

Directory of Open Access Journals (Sweden)

Borychowski Michał

2015-12-01

Full Text Available The main objective of this article is to present the determinants of increase in agricultural commodity prices after 2006. The other specific aim is to show the factors affecting agricultural raw materials and food prices in the global context. This article is a review paper of the determinants of recent commodity and food prices spikes. However, it provides an outlook on these determinants that were the most important for the increases in the last decade. The last part of the article (conclusions to some extent is a synthesis of considerations and includes the authors’ opinions concerning determinants and an attempt to identify which ones were the most important in the growth of agricultural commodity prices. These increases in agricultural commodity prices resulted from many factors and it is very difficult to separate the individual impact of each of them, because they occurred in parallel. However, it is possible to indicate several main reasons for these price increases, which are: adverse changes in supply-demand relations in agricultural markets, increases in oil prices (and increases of the volatility of those prices, development of biofuel production from agricultural commodities (the first generation biofuels, dollar depreciation, an increase in operations of a speculative nature on commodity markets and improper economic policy that created an environment for the growth of prices of agricultural products.

Global Phosphorus Fertilizer Market and National Policies: A Case Study Revisiting the 2008 Price Peak

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Nikolay Khabarov

2017-06-01

Full Text Available The commodity market super-cycle and food price crisis have been associated with rampant food insecurity and the Arab spring. A multitude of factors were identified as culprits for excessive volatility on the commodity markets. However, as it regards fertilizers, a clear attribution of market drivers explaining the emergence of extreme price events is still missing. In this paper, we provide a quantitative assessment of the price spike of the global phosphorus fertilizer market in 2008 focusing on diammonium phosphate (DAP. We find that fertilizer market policies in India, the largest global importer of phosphorus fertilizers and phosphate rock, turned out to be a major contributor to the global price spike. India doubled its import of P-fertilizer in 2008 at a time when prices doubled. The analysis of a wide set of factors pertinent to the 2008 price spike in phosphorus fertilizer market leads us to the discovery of a price spike magnification and triggering mechanisms. We find that the price spike was magnified on the one hand by protective trade measures of fertilizer suppliers leading to a 19% drop in global phosphate fertilizer export. On the other hand, the Indian fertilizer subsidy scheme led to farmers not adjusting their demand for fertilizer. The triggering mechanism appeared to be the Indian production outage of P-fertilizer resulting in the additional import demand for DAP in size of about 20% of annual global supply. The main conclusion is that these three factors have jointly caused the spike, underscoring the need for ex ante improvements in fertilizer market regulation on both national and international levels.

Ex-vessel Fish Price Database: Disaggregating Prices for Low-Priced Species from Reduction Fisheries

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Travis C. Tai

2017-11-01

Full Text Available Ex-vessel fish prices are essential for comprehensive fisheries management and socioeconomic analyses for fisheries science. In this paper, we reconstructed a global ex-vessel price database with the following areas of improvement: (1 compiling reported prices explicitly listed as “for reduction to fishmeal and fish oil” to estimate prices separately for catches destined for fishmeal and fish oil production, and other non-direct human consumption purposes; (2 including 95% confidence limit estimates for each price estimation; and (3 increasing the number of input data and the number of price estimates to match the reconstructed Sea Around Us catch database. Our primary focus was to address this first area of improvement as ex-vessel prices for catches destined for non-direct human consumption purposes were substantially overestimated, notably in countries with large reduction fisheries. For example in Peru, 2010 landed values were estimated as 3.8 billion real 2010 USD when using separate prices for reduction fisheries, compared with 5.8 billion using previous methods with only one price for all end-products. This update of the price database has significant global and country-specific impacts on fisheries price and landed value trends over time.

Global oil prices, macroeconomic fundamentals and China's commodity sector comovements

International Nuclear Information System (INIS)

Chen, Peng

2015-01-01

This paper investigates the common movements of commodity sectors in China as well as the economic underpinnings of the comovements. We employ a Bayesian dynamic latent factor model to disentangle the common and idiosyncratic sector-specific factors of the prices of a group of China's commodity sectors: petrochemicals, grains, energy, non-ferrous metals, oils & fats, and softs. The results indicate that the common factor accounts for a significant portion of the fluctuations of China's commodity sectors, providing evidence of the strong commodity sector comovements in China. We further use a VAR model to link the common movements across China's commodity sectors to the underlying determinants, including global oil price shocks and domestic macroeconomic fluctuations. We find that the global oil price shocks have strong effects on the common movements across commodity sectors in China in addition to its domestic macroeconomic fluctuations at long horizons. However, at short horizons, the common movements across commodity sectors in China respond more strongly to the global oil shocks than to its domestic macroeconomic fluctuations. - Highlights: • We examine the comovements of commodity prices at the industry level in China. • The common factor accounts for a significant portion of commodity sector fluctuations. • We investigate the joint impacts of global oil price shocks and domestic macro fluctuations on the comovements. • The global oil price shocks have persistent and strong effects on the comovements. • The impacts of domestic macro fluctuations on the comovements differ at short and long horizons.

The effect of global oil price shocks on China's metal markets

International Nuclear Information System (INIS)

Zhang, Chuanguo; Tu, Xiaohua

2016-01-01

This paper investigated the impacts of global oil price shocks on the whole metal market and two typical metal markets: copper and aluminum. We applied the autoregressive conditional jump intensity (ARJI) model, combining with the generalized conditional heteroscedasticity (GRACH) method, to describe the volatility process and jump behavior in the global oil market. We separated the oil price shocks into positive and negative parts, to analyze whether oil price volatility had symmetric impacts on China’s metal markets. We further used the likelihood ratio test to examine the symmetric effect of oil price shocks. In addition, we considered the jump behavior in oil prices as an input factor to investigate how China’s metal markets are affected when jumps occur in the global oil market, in contrast to the existing research paying little attention to this issue. Our results indicate that crude oil price shocks have significant impacts on China's metal markets and the impacts are symmetric. When compared with aluminum, copper is more easily affected by oil price shocks. - Highlights: • We investigated the effect of oil price shocks on China’s metal markets. • The oil price shocks had significant impacts on China's metal markets • The oil price shocks on China's metal markets were symmetric. • Copper is more easily affected by oil price shocks than aluminum.

Distributions of carbon pricing on extraction, combustion and consumption of fossil fuels in the global supply-chain

Science.gov (United States)

Karstensen, Jonas; Peters, Glen

2018-01-01

Pricing carbon is one of the most important tools to reduce emissions and mitigate climate change. Already, about 40 nations have implemented explicit or implicit carbon prices, and a carbon price was explicitly stated as a mitigation strategy by many nations in their emission pledges submitted to the Paris Agreement. The coverage of carbon prices varies significantly between nations though, often only covering a subset of sectors in the economy. We investigate the propagation of carbon prices along the global supply-chain when the carbon price is applied at the point where carbon is removed from the ground (extraction), is combusted (production), or where goods and services are consumed (consumption). We consider both the regional and sectoral effects, and compare the carbon price income and costs relative to economic output. We find that implementation using different accounting systems makes a significant difference to revenues and increased expenditure, and that domestic and global trade plays a significant role in spreading the carbon price between sectors and countries. A few single sectors experience the largest relative price increases (especially electricity and transport), but most of the carbon price is ultimately paid by households for goods and services due to the large expenditure and indirect supply chain impacts. We finally show that a global carbon price will generate a larger share of revenue relative to GDP in non-OECD nations than OECD nations, independent on the point of implementation.

Oil refining in a CO2 constrained world: Effects of carbon pricing on refineries globally

International Nuclear Information System (INIS)

Abdul-Manan, Amir F.N.; Arfaj, Abdullah; Babiker, Hassan

2017-01-01

Six aggregated refinery linear programming (LP) models were developed to represent actual refineries in North America, Latin America, Europe (including the CIS), Middle East, Asia (excluding China) and China. The models were used to conduct regional comparative assessments and to evaluate the effects of carbon pricing on refinery operations globally. We found that the average refinery energy efficiencies for the regions were estimated to range from 92.2% to 95.2%. The well-to-refinery gate carbon intensities for gasoline, diesel and jet fuels were estimated to be 17.1 (16.4–19.4), 13.3 (12.5–14.2) and 10.1 (9.6–10.8) gCO2eq/MJ, respectively. If refineries are forced to at least meet the 2014 regional volume demands for oil products, pricing CO 2 would not have an impact on either refinery productions, efficiency or emissions. If refineries are allowed to re-optimize production slates to reduce CO 2 emissions, refineries would opt to increase gasoline yield at the expense of diesel. This is counter intuitive since gasoline has a higher carbon intensity than diesel. The refinery bias against dieselization creates a supply preference toward a less efficient transportation end use. Here, we argue that if carbon pricing is not administered properly, this can lead to emissions leakage from refineries to the road transport sector. - Highlights: • Investigate actual refinery productions in 6 regions globally. • Refineries already operate at the most efficient levels. • Complex refineries tolerate higher CO 2 prices better. • Carbon pricing induces bias against dieselization. • Identify potential emissions leakage.

The pricing and procurement of antiretroviral drugs: an observational study of data from the Global Fund.

Science.gov (United States)

Vasan, Ashwin; Hoos, David; Mukherjee, Joia S; Farmer, Paul E; Rosenfield, Allan G; Perriëns, Joseph H

2006-05-01

The Purchase price report released in August 2004 by the Global Fund to Fight AIDS, Tuberculosis, and Malaria (Global Fund) was the first publication of a significant amount of real transaction purchase data for antiretrovirals (ARVs). We did an observational study of the ARV transaction data in the Purchase price report to examine the procurement behaviour of principal recipients of Global Fund grants in developing countries. We found that, with a few exceptions for specific products (e.g. lamivudine) and regions (e.g. eastern Europe), prices in low-income countries were broadly consistent or lower than the lowest differential prices quoted by the research and development sector of the pharmaceutical industry. In lower middle-income countries, prices were more varied and in several instances (lopinavir/ritonavir, didanosine, and zidovudine/lamivudine) were very high compared with the per capita income of the country. In all low- and lower middle-income countries, ARV prices were still significantly high given limited local purchasing power and economic strength, thus reaffirming the need for donor support to achieve rapid scale-up of antiretroviral therapy. However, the price of ARVs will have to decrease to render scale-up financially sustainable for donors and eventually for governments themselves. An important first step in reducing prices will be to make available in the public domain as much ARV transaction data as possible to provide a factual basis for discussions on pricing. The price of ARVs has considerable implications for the sustainability of human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) treatment in the developing world.

Global Quality Management in Adjusting Prices

OpenAIRE

Bunta Levente Zoltán

2013-01-01

The following paper describes the basic principles of global quality management (T and the way that these influence pricing in a domain where due to the nature of the provided service, the provider who administers the network has a monopoly over the field.

Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade

Energy Technology Data Exchange (ETDEWEB)

Yang, Jun; Huang, Jikun; Qiu, Huanguang [Center for Chinese Agricultural Policy, Chinese Academy of Sciences and Institute of Geographical Sciences and Natural Resources Research, Jia 11, Datun Road, Beijing 100101 (China); Rozelle, Scott [Freeman Spogli Institute of International Studies, Stanford University, East Encina Hall, Stanford, CA 94305 (United States); Sombilla, Mercy A. [Southeast Asian Regional Center for Graduate Study and Research in Agriculture, College, Laguna 4031 (Philippines)

2009-11-15

Similar to many other countries, all nations in the Greater Mekong Subregion (GMS) have planned or are planning to develop strong national biofuel programs. The overall goal of this paper is to better understand the impacts of global and regional biofuels on agriculture and the rest of the economy, with a specific focus on the GMS. Based on a modified multi-country, multi-sector computable general equilibrium model, this study reveals that global biofuel development will significantly increase agricultural prices and production and change trade in agricultural commodities in the GMS and the rest of world. While biofuel in the GMS will have little impacts on global prices, it will have significant effects on domestic agricultural production, land use, trade, and food security. The results also show that the extent of impacts from biofuel is highly dependent on international oil prices and the degree of substitution between biofuel and gasoline. The findings of this study have important policy implications for the GMS countries and the rest of world. (author)

Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade

International Nuclear Information System (INIS)

Yang, Jun; Huang, Jikun; Qiu, Huanguang; Rozelle, Scott; Sombilla, Mercy A.

2009-01-01

Similar to many other countries, all nations in the Greater Mekong Subregion (GMS) have planned or are planning to develop strong national biofuel programs. The overall goal of this paper is to better understand the impacts of global and regional biofuels on agriculture and the rest of the economy, with a specific focus on the GMS. Based on a modified multi-country, multi-sector computable general equilibrium model, this study reveals that global biofuel development will significantly increase agricultural prices and production and change trade in agricultural commodities in the GMS and the rest of world. While biofuel in the GMS will have little impacts on global prices, it will have significant effects on domestic agricultural production, land use, trade, and food security. The results also show that the extent of impacts from biofuel is highly dependent on international oil prices and the degree of substitution between biofuel and gasoline. The findings of this study have important policy implications for the GMS countries and the rest of world. (author)

OPTIMAL PRICING OF A PERSONALIZED PRODUCT

Institute of Scientific and Technical Information of China (English)

Suresh P.SETHI

2008-01-01

This paper deals with optimal pricing of a personalized product such as a personal portrait or photo.A new model of the pricing structure inspired by two real-life cases is introduced to the literature and solved to obtain optimal photo sitting fees and the final product price.A sensitivity analysis with respect to the problem parameters is performed.

Optimal Pricing Strategy for New Products

OpenAIRE

Trichy V. Krishnan; Frank M. Bass; Dipak C. Jain

1999-01-01

Robinson and Lakhani (1975) initiated a long research stream in marketing when they used the Bass model (1969) to develop optimal pricing path for a new product. A careful analysis of the extant literature reveals that the research predominantly suggests that the optimal price path should be largely based on the sales growth pattern. However, in the real world we rarely find new products that have such pricing pattern. We observe either a monotonically declining pricing pattern or an increase...

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

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.

THE EFFECTS OF SWINGS IN GLOBAL WHEAT PRICES ON THE DOMESTIC MARKETS IN AFGHANISTAN

Directory of Open Access Journals (Sweden)

Najibullah Hassanzoy

2016-10-01

Full Text Available The recent shocks in global prices of cereals and the spillover effects of trade restrictive policies adversely affected domestic markets, particularly in the net food importing countries such as Afghanistan. This paper investigates the effects of 2007–2008 spikes in global wheat prices on the dynamics of price transmission and long-run equilibrium relationship between global and domestic wheat markets. The findings indicate that domestic and global wheat markets may be cointegrated in Regime-I (pre-break, Regime-II (post-break and the overall sample period. Moreover, the elasticity of price transmission and speed of adjustment towards the long-run equilibrium are substantially different between the two regimes, i.e., they appear to be larger in Regime-I as compared to Regime-II. Similarly, the effect of a shock in global wheat prices on domestic wheat markets might be long-lasting in Regime-I but transitory in Regime-II. This research underlines the need for mitigating the adverse effect of spikes in global wheat prices on domestic wheat markets in the context of a landlocked net food importing country.

A statistical analysis of product prices in online markets

Science.gov (United States)

Mizuno, T.; Watanabe, T.

2010-08-01

We empirically investigate fluctuations in product prices in online markets by using a tick-by-tick price data collected from a Japanese price comparison site, and find some similarities and differences between product and asset prices. The average price of a product across e-retailers behaves almost like a random walk, although the probability of price increase/decrease is higher conditional on the multiple events of price increase/decrease. This is quite similar to the property reported by previous studies about asset prices. However, we fail to find a long memory property in the volatility of product price changes. Also, we find that the price change distribution for product prices is close to an exponential distribution, rather than a power law distribution. These two findings are in a sharp contrast with the previous results regarding asset prices. We propose an interpretation that these differences may stem from the absence of speculative activities in product markets; namely, e-retailers seldom repeat buy and sell of a product, unlike traders in asset markets.

PECAN PRODUCTION AND PRICE TRENDS 1979-1995

OpenAIRE

Shafer, Carl E.

1996-01-01

Pecan production, stocks, trade and prices are described. Data on tree nuts believed to compete with pecans are also presented. Pecan production and prices became more volatile in the early 1990's. Prices reached exceptionally high levels during five of the six years 1990-1995. US pecan imports have increased significantly since the mid-1980's and clearly exceed exports. Production, cold storage stocks, and inflation explained most of the year-to-year changes in season average pecan price lev...

Does oil move equity prices? A global view

International Nuclear Information System (INIS)

Nandha, Mohan; Faff, Robert

2008-01-01

Many studies indicate that oil price shocks have an adverse effect on real output and, hence, an adverse effect on corporate profits where oil is used as a key input. The present study examines whether and to what extent the adverse effect of oil price shocks impacts stock market returns. To this end we, analyse 35 DataStream global industry indices for the period from April 1983 to September 2005. Our findings indicate that oil price rises have a negative impact on equity returns for all sectors except mining, and oil and gas industries. Generally, these results are consistent with economic theory and evidence provided by previous empirical studies. Little evidence of any asymmetry is detected in the oil price sensitivities. In light of our findings, we recommend that international portfolio investors consider hedging oil price risk. (author)

Mitigation potential and global health impacts from emissions pricing of food commodities

Science.gov (United States)

Springmann, Marco; Mason-D'Croz, Daniel; Robinson, Sherman; Wiebe, Keith; Godfray, H. Charles J.; Rayner, Mike; Scarborough, Peter

2017-01-01

The projected rise in food-related greenhouse gas emissions could seriously impede efforts to limit global warming to acceptable levels. Despite that, food production and consumption have long been excluded from climate policies, in part due to concerns about the potential impact on food security. Using a coupled agriculture and health modelling framework, we show that the global climate change mitigation potential of emissions pricing of food commodities could be substantial, and that levying greenhouse gas taxes on food commodities could, if appropriately designed, be a health-promoting climate policy in high-income countries, as well as in most low- and middle-income countries. Sparing food groups known to be beneficial for health from taxation, selectively compensating for income losses associated with tax-related price increases, and using a portion of tax revenues for health promotion are potential policy options that could help avert most of the negative health impacts experienced by vulnerable groups, whilst still promoting changes towards diets which are more environmentally sustainable.

EFFECTIVE ANNUAL INTEREST SIGNIFIANCE ON BANKING PRODUCTS PRICE STRUCTURE

Directory of Open Access Journals (Sweden)

Medar Lucian-Ion

2011-06-01

Full Text Available The importance of the products and services prices can be found in the reference price, that customer must compare it with the price of the last made acquisition. The price of the banking product, that includes the effective annual intrest rate (EAI, is a guide price including all the cost elements related to banking products and services. The price of the products promoted through lending activities, is affected by the exchange rate of national and foreign currency, available on the money market. The role of the banking fee is very important in the specific services and bank products price formation.

Examining the Effect of World Price Transfer to Domestic Markets for Sensitive and Certain Agricultural Products in Iran

Directory of Open Access Journals (Sweden)

M. shabanzadeh

2016-03-01

Full Text Available Introduction: Agriculture as one of old sectors of economy has been important role in the supply food for peoples and raw materials. Globalization causes rapid growth of world trade and reduces information and communications costs. Globalization and rapid growth of trade increases the potential benefits of trade for agriculture from various aspects. The potential benefits of trade for agriculture increases from three aspects. Direct increase in the domain of agricultural sector activities for competition in the global market results in the benefits of access to global markets. This is especially true in cases where there is comparative advantage and the indirect effects of increased global trade on non-agricultural sectors that cause the domestic demand for food change from qualitative and quantitative aspects, are the benefits of this event. However, during the process of globalization, how to influence prices in different markets, including the impact of world prices on domestic prices is an important issue in trade policy analysis. During this process domestic prices are directly related to world prices. With this approach, the main objective of this study is to examine the effect of world price transfers to domestic markets for sensitive and certain agricultural products in Iran during 1360-91. Materials and Methods: To achieve this goal in this study, the Armington and the foreign currency elasticity of ten selected agricultural products in Iran including wheat, barley, rice, corn, soybean meal, vegetable oil (soybean and sunflower, sugar, eggs, poultry and beef, have been estimated and examined using Autoregressive Distribution lag Model (ARDL. In order to investigate speed of adjustment or in other words the speed of movement towards equilibrium, typically the error correction model (ECM is used. Existence of cointegration or in other words, long term relationship between a set of economic variables provide the basis for the use of error

Global strategies to reduce the price of antiretroviral medicines: evidence from transactional databases.

Science.gov (United States)

Waning, Brenda; Kaplan, Warren; King, Alexis C; Lawrence, Danielle A; Leufkens, Hubert G; Fox, Matthew P

2009-07-01

To estimate the impact of global strategies, such as pooled procurement arrangements, third-party price negotiation and differential pricing, on reducing the price of antiretrovirals (ARVs), which currently hinders universal access to HIV/AIDS treatment. We estimated the impact of global strategies to reduce ARV prices using data on 7253 procurement transactions (July 2002-October 2007) from databases hosted by WHO and the Global Fund to Fight AIDS, Tuberculosis and Malaria. For 19 of 24 ARV dosage forms, we detected no association between price and volume purchased. For the other five ARVs, high-volume purchases were 4-21% less expensive than medium- or low-volume purchases. Nine of 13 generic ARVs were priced 6-36% lower when purchased under the Clinton Foundation HIV/AIDS Initiative (CHAI). Fifteen of 18 branded ARVs were priced 23-498% higher for differentially priced purchases compared with non-CHAI generic purchases. However, two branded, differentially priced ARVs were priced 63% and 73% lower, respectively, than generic non-CHAI equivalents. Large purchase volumes did not necessarily result in lower ARV prices. Although current plans for pooled procurement will further increase purchase volumes, savings are uncertain and should be balanced against programmatic costs. Third-party negotiation by CHAI resulted in lower generic ARV prices. Generics were less expensive than differentially priced branded ARVs, except where little generic competition exists. Alternative strategies for reducing ARV prices, such as streamlining financial management systems, improving demand forecasting and removing barriers to generics, should be explored.

Unit Price Scaling Trends for Chemical Products

Energy Technology Data Exchange (ETDEWEB)

Qi, Wei [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Sathre, Roger [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Morrow, III, William R. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Shehabi, Arman [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

2015-08-01

To facilitate early-stage life-cycle techno-economic modeling of emerging technologies, here we identify scaling relations between unit price and sales quantity for a variety of chemical products of three categories - metal salts, organic compounds, and solvents. We collect price quotations for lab-scale and bulk purchases of chemicals from both U.S. and Chinese suppliers. We apply a log-log linear regression model to estimate the price discount effect. Using the median discount factor of each category, one can infer bulk prices of products for which only lab-scale prices are available. We conduct out-of-sample tests showing that most of the price proxies deviate from their actual reference prices by a factor less than ten. We also apply the bootstrap method to determine if a sample median discount factor should be accepted for price approximation. We find that appropriate discount factors for metal salts and for solvents are both -0.56, while that for organic compounds is -0.67 and is less representative due to greater extent of product heterogeneity within this category.

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...

Consequences of increasing bioenergy demand on wood and forests: An application of the Global Forest Products Model

Science.gov (United States)

Buongiorno, J.; Raunikar, R.; Zhu, S.

2011-01-01

The Global Forest Products Model (GFPM) was applied to project the consequences for the global forest sector of doubling the rate of growth of bioenergy demand relative to a base scenario, other drivers being maintained constant. The results showed that this would lead to the convergence of the price of fuelwood and industrial roundwood, raising the price of industrial roundwood by nearly 30% in 2030. The price of sawnwood and panels would be 15% higher. The price of paper would be 3% higher. Concurrently, the demand for all manufactured wood products would be lower in all countries, but the production would rise in countries with competitive advantage. The global value added in wood processing industries would be 1% lower in 2030. The forest stock would be 2% lower for the world and 4% lower for Asia. These effects varied substantially by country. ?? 2011 Department of Forest Economics, SLU Ume??, Sweden.

Drug pricing and reimbursement information management: processes and decision making in the global economy.

Science.gov (United States)

Tsourougiannis, Dimitrios

2017-01-01

Background : Cost-containment initiatives are re-shaping the pharmaceutical business environment and affecting market access as well as pricing and reimbursement decisions. Effective price management procedures are too complex to accomplish manually. Prior to February 2013, price management within Astellas Pharma Europe Ltd was done manually using an Excel database. The system was labour intensive, slow to update, and prone to error. An innovative web-based pricing information management system was developed to address the shortcomings of the previous system. Development : A secure web-based system for submitting, reviewing and approving pricing requests was designed to: track all pricing applications and approval status; update approved pricing information automatically; provide fixed and customizable reports of pricing information; collect pricing and reimbursement rules from each country; validate pricing and reimbursement rules monthly. Several sequential phases of development emphasized planning, time schedules, target dates, budgets and implementation of the entire system. A test system was used to pilot the electronic (e)-pricing system with three affiliates (four users) in February 2013. Outcomes : The web-based system was introduced in March 2013, currently has about 227 active users globally and comprises more than 1000 presentations of 150 products. The overall benefits of switching from a manual to an e-pricing system were immediate and highly visible in terms of efficiency, transparency, reliability and compliance. Conclusions : The e-pricing system has improved the efficiency, reliability, compliance, transparency and ease of access to multinational drug pricing and approval information.

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...

Price-related promotions for tobacco products on Twitter.

Science.gov (United States)

Jo, Catherine L; Kornfield, Rachel; Kim, Yoonsang; Emery, Sherry; Ribisl, Kurt M

2016-07-01

This cross-sectional study examined price-related promotions for tobacco products on Twitter. Through the Twitter Firehose, we obtained access to all public tweets posted between 6 December 2012 and 20 June 2013 that contained a keyword suggesting a tobacco-related product or behaviour (eg, cigarette, vaping) in addition to a keyword suggesting a price promotion (eg, coupon, discount). From this data set of 155 249 tweets, we constructed a stratified sampling frame based on the price-related keywords and randomly sampled 5000 tweets (3.2%). Tweets were coded for product type and promotion type. Non-English tweets and tweets unrelated to a tobacco or cessation price promotion were excluded, leaving an analytic sample of 2847 tweets. The majority of tweets (97.0%) mentioned tobacco products while 3% mentioned tobacco cessation products. E-cigarettes were the most frequently mentioned product (90.1%), followed by cigarettes (5.4%). The most common type of price promotion mentioned across all products was a discount. About a third of all e-cigarette-related tweets included a discount code. Banned or restricted price promotions comprised about 3% of cigarette-related tweets. This study demonstrates that the vast majority of tweets offering price promotions focus on e-cigarettes. Future studies should examine the extent to which Twitter users, particularly youth, notice or engage with these price promotion tweets. 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/

Global economic activity and crude oil prices. A cointegration analysis

International Nuclear Information System (INIS)

He, Yanan; Wang, Shouyang; Lai, Kin Keung

2010-01-01

This paper empirically investigates the cointegrating relationship between crude oil prices and global economic activity. The Kilian economic index is used as an indicator of global economic activity. Based on a supply-demand framework and the cointegration theory, we find that real futures prices of crude oil are cointegrated with the Kilian economic index and a trade weighted US dollar index, and crude oil prices are influenced significantly by fluctuations in the Kilian economic index through both long-run equilibrium conditions and short-run impacts. We also develop an empirically stable, data-coherent and single-equation error-correction model (ECM) which has sensible economic properties. Empirical results based on the ECM show that the adjustment implied by a permanent change in the Kilian economic index is a relatively drawn-out process. (author)

Mercurious Oil Index (MOI) : A new indicator for the global oil price

OpenAIRE

Leeuw, de, J.; Dorsman, A.B.; Nelissen, R.

2008-01-01

“The” price of oil does not exist. This paper describes the development of a (new) oil index, the Mercurious Oil Index (MOI). This index can be seen as an indicator for the global price of oil. We will discuss why this index is a reliable global price reference, and why it is superior to and more useful than the existing indices and/or benchmarks. Indices are very helpful instruments for the tracking and prediction of markets, to measure performance or sentiment and to form a solid basis on w...

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

Price Relationships in the Petroleum Market: An Analysis of Crude Oil and Refined Product Prices

International Nuclear Information System (INIS)

Asche, Frank; Gjoelberg, Ole; Voelker, Teresa

2001-08-01

In this paper the relationships between crude oil and refined product prices are investigated in a multivariate framework. This allows us to test several (partly competing) assumptions of earlier studies. In particular, we find that the crude oil price is weakly exogenous and that the spread is constant in some but not all relationships. Moreover, the multivariate analysis shows that the link between crude oil prices and several refined product prices implies market integration for these refined products. This is an example of supply driven market integration and producers will change the output mix in response to price changes. (author)

Price relationships in the petroleum market. An analysis of crude oil and refined product prices

International Nuclear Information System (INIS)

Asche, Frank; Gjoelberg, Ole; Volker, Teresa

2003-01-01

In this paper the relationships between crude oil and refined product prices are investigated in a multivariate framework. This allows us to test several (partly competing) assumptions of earlier studies. In particular, we find that the crude oil price is weakly exogenous and that the spread is constant in some but not all relationships. Moreover, the multivariate analysis shows that the link between crude oil prices and several refined product prices implies market integration for these refined products. This is an example of supply driven market integration and producers will change the output mix in response to price changes

Price relationships in the petroleum market: an analysis of crude oil and refined product prices

International Nuclear Information System (INIS)

Asche, F.; Gjoelberg, O.; Voelker, T.

2003-01-01

In this paper the relationships between crude oil and refined product prices are investigated in a multivariate framework. This allows us to test several (partly competing) assumptions of earlier studies. In particular, we find that the crude oil price is weakly exogenous and that the spread is constant in some but not all relationships. Moreover, the multivariate analysis shows that the link between crude oil prices and several refined product prices implies market integration for these refined products. This is an example of supply driven market integration and producers will change the output mix in response to price changes. (author)

78 FR 69755 - International Product and Price Changes

Science.gov (United States)

2013-11-21

... POSTAL SERVICE 39 CFR Part 20 International Product and Price Changes AGENCY: Postal Service TM... Service, International Mail Manual (IMM[supreg]), to reflect the prices, product features, and...-0372. SUPPLEMENTARY INFORMATION: New prices are available under Docket Number CP2014-5 on the Postal...

76 FR 75786 - International Product and Price Changes

Science.gov (United States)

2011-12-05

... POSTAL SERVICE 39 CFR Part 20 International Product and Price Changes AGENCY: Postal Service TM... Service, International Mail Manual (IMM[supreg]), to reflect the prices, product features, and.... SUPPLEMENTARY INFORMATION: New prices are available under Docket Number CP2012-2 on the Postal Regulatory...

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

Direm prices, prices and margins of petroleum products in France and in the European Union

International Nuclear Information System (INIS)

2005-01-01

This document presents in a series of graphics and tables, the evolution of petroleum products prices and margins in France and in the European Union: crude oil prices, Rotterdam's petroleum products quotation, raw brent refining margin, automotive and domestic fuel prices. (J.S.)

17 CFR 229.1204 - (Item 1204) Oil and gas production, production prices and production costs.

Science.gov (United States)

2010-04-01

... production, production prices and production costs. 229.1204 Section 229.1204 Commodity and Securities... production, production prices and production costs. (a) For each of the last three fiscal years disclose... production cost, not including ad valorem and severance taxes, per unit of production. Instruction 1 to Item...

Price elasticity of petroleum products in selected African countries

International Nuclear Information System (INIS)

Kaul, S.

1995-01-01

In this paper, a fundamental understanding of the economic impact which is directly related to the price elasticity of petroleum products in six selected African countries is obtained by using the Jorgorson-Lian model for shares. Each kind of fuel price has a different impact on the share of oil products for the different countries. The price increase of one kind of fuel may increase or decrease the share of another fuel in the total oil products. In the oil importing African countries, the price of one product is relatively inelastic, whereas in the oil producing African countries, the price is elastic. (Author)

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

76 FR 77271 - Competitive Product Postal Price Changes

Science.gov (United States)

2011-12-12

... POSTAL REGULATORY COMMISSION [Docket No. CP2012-2; Order No. 997] Competitive Product Postal Price... recently-filed Postal Service request for a change in competitive products prices. The changes will take... and justification for the changes, the effective date, and a schedule of the changed rates. The price...

75 FR 69334 - International Product and Price Changes

Science.gov (United States)

2010-11-12

... illustrate Global Express Guaranteed and Express Mail International permit imprints.] [GRAPHIC] [TIFF OMITTED.... Priority Mail Gift Card Flat Rate Priority Mail DVD Box, 7\\9/ Envelope, 10'' x 7'', Item EP 14-GT. 16\\'' x... appropriate Price Group table based on the prices below:] BILLING CODE P [[Page 69340

Method for Developing Descriptions of Hard-to-Price Products: Results of the Telecommunications Product Study

Energy Technology Data Exchange (ETDEWEB)

Conrad, F.; Tonn, B.

1999-05-01

This report presents the results of a study to test a new method for developing descriptions of hard-to-price products. The Bureau of Labor Statistics (BLS) is responsible for collecting data to estimate price indices such as the Consumers Price Index (BLS) is responsible for collecting data to estimate price indices such as the Consumers Price Index (CPI). BLS accomplishes this task by sending field staff to places of business to price actual products. The field staff are given product checklists to help them determine whether products found today are comparable to products priced the previous month. Prices for non-comparable products are not included in the current month's price index calculations. A serious problem facing BLS is developing product checklists for dynamic product areas, new industries, and the service sector. It is difficult to keep checklists up-to-date and quite often simply to develop checklists for service industry products. Some people estimates that upwards of 50 % of US economic activity is not accounted for in the CPI

DIREM's prices. Prices and margins of petroleum products in France and in the European Union

International Nuclear Information System (INIS)

2002-08-01

This report presents in a series of graphs and tables the prices and margins of petroleum products in France and in the European Union (EU) according to the data compiled by the Direction of energy and mineral resources (DIREM) of the French general direction of energy and raw materials (DGEMP, Ministry of economy, finances and industry): evolution of crude prices, evolution of Rotterdam's quotation of petroleum products, raw margin of brent refining, French fuel prices (automotive and domestic fuels, evolution, comparison with EU and Rotterdam's prices), comparison with prices in other European countries, evolution of average retail prices in France. (J.S.)

Role of water management for global food production and poverty alleviation

NARCIS (Netherlands)

Schultz, E.; Tardieu, H.; Vidal, A.

2009-01-01

In the coming 25-30 years global food production will have to be doubled in order to maintain food security at the global level. With respect to this to a certain extent the advantage is that food prices have increased over the past seven to eight years, and especially during the past two years.

Periodic Pricing of Seasonal Products in Retailing

OpenAIRE

Gabriel R. Bitran; Susana V. Mondschein

1997-01-01

This paper studies intertemporal pricing policies when selling seasonal products in retail stores. We first present a continuous time model where a seller faces a stochastic arrival of customers with different valuations of the product. For this model, we characterize the optimal pricing policies as functions of time and inventory. We use this model as a benchmark against which we compare more realistic models that consider periodic pricing reviews. We show that the structure of the optimal p...

GLOBAL TO DOMESTIC PRICE TRANSMISSION BETWEEN THE SEGMENTED CEREALS MARKETS: A STUDY OF AFGHAN RICE MARKETS

Directory of Open Access Journals (Sweden)

Najibullah Hassanzoy

2015-10-01

Full Text Available This paper examines cointegration and the difference in the extent of price transmission, and speed of adjustment between global and domestic prices of high and low quality rice. Unit root tests, cointegration tests and error correction models are employed in the analysis. While there are no comparable studies in the literature, the findings of this study indicate that the dynamics of price transmission may be different between high and low quality rice markets. That is, the extent of price transmission appears to be larger for the global prices of low quality rice whereas the speed of adjustment to the long-run equilibrium may be faster for domestic prices of high quality rice. Moreover, a shock in the global prices of low quality rice may have a long-lasting effect on domestic prices of low quality rice as compared to their high quality counterparts affecting domestic prices of high quality rice.

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.

Trends in price and productivity in the fur sector

DEFF Research Database (Denmark)

Hansen, Henning Otte

2016-01-01

in the long term. The terms of trade - the ratio between output and input prices - is also unstable but with a clear negative long-term trend. The developments in prices and productivity cause high demands on management both on individual fur farms and further down the value chain.......Price and productivity are two important competitive factors for the fur skin production worldwide. In the paper it is demonstrated that there are significant long-term trends towards increasing productivity and decreasing price ratios. The trend follows the same pattern as for other agricultural...... products. The analysis is based on Danish conditions as a case. By using different measurement methods it is demonstrated that productivity is increasing in several places in fur value chain. The fur skin prices, which are largely determined in international markets, are both very volatile and decreasing...

Why are product prices in online markets not converging?

Directory of Open Access Journals (Sweden)

Takayuki Mizuno

Full Text Available Why are product prices in online markets dispersed in spite of very small search costs? To address this question, we construct a unique dataset from a Japanese price comparison site, which records price quotes offered by e-retailers as well as customers' clicks on products, which occur when they proceed to purchase the product. The novelty of our approach is that we seek to extract useful information on the source of price dispersion from the shape of price distributions rather than focusing merely on the standard deviation or the coefficient of variation of prices, as previous studies have done. We find that the distribution of prices retailers quote for a particular product at a particular point in time (divided by the lowest price follows an exponential distribution, showing the presence of substantial price dispersion. For example, 20 percent of all retailers quote prices that are more than 50 percent higher than the lowest price. Next, comparing the probability that customers click on a retailer with a particular rank and the probability that retailers post prices at a particular rank, we show that both decline exponentially with price rank and that the exponents associated with the probabilities are quite close. This suggests that the reason why some retailers set prices at a level substantially higher than the lowest price is that they know that some customers will choose them even at that high price. Based on these findings, we hypothesize that price dispersion in online markets stems from heterogeneity in customers' preferences over retailers; that is, customers choose a set of candidate retailers based on their preferences, which are heterogeneous across customers, and then pick a particular retailer among the candidates based on the price ranking.

Why Are Product Prices in Online Markets Not Converging?

Science.gov (United States)

Mizuno, Takayuki; Watanabe, Tsutomu

2013-01-01

Why are product prices in online markets dispersed in spite of very small search costs? To address this question, we construct a unique dataset from a Japanese price comparison site, which records price quotes offered by e-retailers as well as customers’ clicks on products, which occur when they proceed to purchase the product. The novelty of our approach is that we seek to extract useful information on the source of price dispersion from the shape of price distributions rather than focusing merely on the standard deviation or the coefficient of variation of prices, as previous studies have done. We find that the distribution of prices retailers quote for a particular product at a particular point in time (divided by the lowest price) follows an exponential distribution, showing the presence of substantial price dispersion. For example, 20 percent of all retailers quote prices that are more than 50 percent higher than the lowest price. Next, comparing the probability that customers click on a retailer with a particular rank and the probability that retailers post prices at a particular rank, we show that both decline exponentially with price rank and that the exponents associated with the probabilities are quite close. This suggests that the reason why some retailers set prices at a level substantially higher than the lowest price is that they know that some customers will choose them even at that high price. Based on these findings, we hypothesize that price dispersion in online markets stems from heterogeneity in customers’ preferences over retailers; that is, customers choose a set of candidate retailers based on their preferences, which are heterogeneous across customers, and then pick a particular retailer among the candidates based on the price ranking. PMID:24015219

76 FR 417 - 2011 Numismatic Products Pricing

Science.gov (United States)

2011-01-04

... DEPARTMENT OF THE TREASURY United States Mint 2011 Numismatic Products Pricing ACTION: Notice. SUMMARY: The United States Mint is announcing the prices of its 2011 numismatic products. Pursuant to the authority that 31 U.S.C. 5111(2)(3) & 5112 grant the Secretary of the Treasury to mint, prepare and...

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...

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

NARCIS (Netherlands)

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

2013-01-01

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

Analysis of Options Contract, Option Pricing in Agricultural Products

Directory of Open Access Journals (Sweden)

H. Tamidy

2016-03-01

Full Text Available Introduction: Risk is an essential component in the production and sale of agricultural products. Due to the nature of agricultural products, the people who act in this area including farmers and businesspersons encounter unpredictable fluctuations of prices. On the other hand, the firms that process agricultural products also face fluctuation of price of agricultural inputs. Given that the Canola is considered as one of the inputs of product processing factories, control of unpredictable fluctuations of the price of this product would increase the possibility of correct decision making for farmers and managers of food processing industries. The best available tool for control and management of the price risk is the use of future markets and options. It is evident that the pricing is the main pillar in every trade. Therefore, offering a fair price for the options will be very important. In fact, options trading in the options market create cost insurance stopped. In this way, which can reduce the risks of deflation created in the future, if the person entitled to the benefits of the price increase occurs in the future. Unlike the futures, market where the seller had to deliver the product on time, in the options market, there is no such compulsion. In addition, this is one of the strengths of this option contract, because if there is not enough product for delivery to the futures market as result of chilling, in due course, the farmers suffer, but in the options market there will be a loss. In this study, the setup options of rape, as a product, as well as inputs has been paid for industry. Materials and Methods: In this section. The selection criteria of the disposal of asset base for valuation of European put options and call option is been introduced. That for obtain this purpose, some characteristics of the goods must considered: 1-Unpredictable fluctuations price of underlying asset 2 -large underlying asset cash market 3- The possibility

Equity prices, productivity growth and 'The New Economy'

DEFF Research Database (Denmark)

Madsen, Jakob B.; Davis, E. Philip

2006-01-01

The sharp increase in equity prices over the 1990s was widely attributed to permanently higher productivity growth derived from the New Economy. This article establishes a rational expectations model of technology innovations and equity prices, which shows that under plausible assumptions......, productivity advances can only have temporary effects on the fundamentals of equity prices. Using historical data on productivity of R&D capital, patent capital and fixed capital for 11 OECD countries, empirical evidence gives strong support for the model by suggesting that technological innovations indeed...

Product and labour market regulations, production prices, wages and productivity

NARCIS (Netherlands)

Cette, G.; Lopez, J.; Mairesse, J.

2015-01-01

This study is an attempt to evaluate the effects of product and labour market regulations on industry productivity through their various impacts on changes in production prices and wages. In a first stage, the estimation of a regression equation on an industry*country panel, with controls for

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)

Pricing of Marine Products and Services in the Modular Age

DEFF Research Database (Denmark)

Jiang, Liping; Al-Ajlouni, Omar

WHAT IS THE ISSUE? Pricing can be a particular challenging issue for marine suppliers with multiple products and services especially when suppliers want to address specific customer needs and at the same time achieves the efficiency in pricing. WHY IS IT IMPORTANT? Appropriate pricing of products-and-services...... in the market. Lastly, customer satisfaction and loyalty will be increased accordingly. WHAT CAN BE DONE? The pricing challenge for multiple products and services can be overcome by applying the modular concept on pricing, where each product or service is offered as a module, so suppliers can either set...

Market Entry, Product Quality And Price Competition

Directory of Open Access Journals (Sweden)

Mathur Sameer

2015-08-01

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

Skimming or Penetration? Strategic Dynamic Pricing for New Products

OpenAIRE

Spann, Martin; Fischer, Marc; Tellis, Gerard J.

2015-01-01

Current complex dynamic markets are characterized by numerous brands, each with multiple products and price points, and differentiated on a variety of product attributes plus a large number of new product introductions. This study seeks to analyze dynamic pricing paths in a highly complex branded market, consisting of 663 products under 79 brand names of digital cameras. The authors develop a method to classify dynamic pricing strategies and analyze the choice and correlates of observed prici...

77 FR 840 - Pricing for 2012 Products Featuring $1 Coins

Science.gov (United States)

2012-01-06

... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2012 Products Featuring $1 Coins AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing 2012 pricing for products featuring $1 coins, as follows: Product Retail price Presidential $1...

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

Directory of Open Access Journals (Sweden)

N.L. Pravdyuk

2017-03-01

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

Joint production and corporate pricing: An empirical analysis of joint products in the petroleum industry

International Nuclear Information System (INIS)

Karimnejad, H.

1990-01-01

This dissertation investigates the pricing mechanism of joint products in large multi-plant and multi-product corporations. The primary objective of this dissertation is to show the consistency of classical theories of production with corporate pricing of joint products. This dissertation has two major parts. Part One provides a theoretical framework for joint production and corporate pricing. In this part, joint production is defined and its historical treatment by classical and contemporary economists is analyzed. Part Two conducts an empirical analysis of joint products in the US petroleum industry. Methods of cost allocation are used in the pricing of each individual petroleum product. Three methods are employed to distribute joint production costs to individual petroleum products. These methods are, the sales value method, the barrel gravity method and the average unit cost method. The empirical findings of dissertation provide useful guidelines for pricing policies of large multi-product corporations

Technology for Price Management in Industrial Differential Product Market

Directory of Open Access Journals (Sweden)

E. V. Orlova

2015-01-01

Full Text Available The article studies price behavior of oligopolies in industrial market where price competition is replaced by non-price competition. There is a developed technology for pricing management of the products of industrial enterprises, which, unlike the existing ones, takes into account the dynamics of changes in consumer preferences and changes in the pricing policy of the enterprise competitor and is based on usage of system dynamics models to simulate the financial and economic performance of enterprises and the fuzzy model for situational analysis and decisionmaking on changes in prices for the products. A pricing simulation model is offered. It is based on system-dynamic modeling method, which takes into account the complex cause-to-effect concatenation of factors on price such as product quality, cost, price competition, price elasticity of economic demand, competitors’ quantity of output and estimates the impact of changing factors of internal and external enterprise environment on the effectiveness of its activities.The simulation model allows us to conduct diverse experiments and analyze the impact of management decisions on the efficiency of the enterprise. Based on the fuzzy approach a price decision-making model is developed. It operates not only precise (numeric values, but also qualitative assessments of variables and provides an adequate use of logical relationships and the laws of the mutual influence of market and production and economic factors. Qualitative dependences, which establish the influence of external and internal factors on the price change, are identified as a result of the study of economic laws and legal conformity that are in the context of rapid economic change and market turbulence may not be strictly formalized and take the form of linguistic statements, which express the conditional relationship between the qualitative assessments of initial factors and changes in the relative price.

Price and inventory dynamics in petroleum product markets

International Nuclear Information System (INIS)

Considine, T.J.; Heo, Eunnyeong

2000-01-01

Unlike many studies of commodity inventory behavior, this paper estimates a model with endogenous spot and forward prices, inventories, production, and net imports. Our application involves markets for refined petroleum products in the United States. Our model is built around the supply and demand for storage. We estimate the model using Generalized Method of Moments and perform dynamic, simultaneous simulations to estimate the impacts of supply and demand shocks. Supply curves for the industry are inelastic and upward sloping. High inventory levels depress prices. Inventories fall in response to higher sales, consistent with production smoothing. Under higher input prices, refiners reduce their stocks of crude oil but increase their product inventories, consistent with cost smoothing. In some cases, imports of products are more variable than production or inventories. 25 refs

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.

On the global economic potentials and marginal costs of non-renewable resources and the price of energy commodities

International Nuclear Information System (INIS)

Mercure, Jean-François; Salas, Pablo

2013-01-01

A model is presented in this work for simulating endogenously the evolution of the marginal costs of production of energy carriers from non-renewable resources, their consumption, depletion pathways and timescales. Such marginal costs can be used to simulate the long term average price formation of energy commodities. Drawing on previous work where a global database of energy resource economic potentials was constructed, this work uses cost distributions of non-renewable resources in order to evaluate global flows of energy commodities. A mathematical framework is given to calculate endogenous flows of energy resources given an exogenous commodity price path. This framework can be used in reverse in order to calculate an endogenous marginal cost of production of energy carriers given an exogenous carrier demand. Using rigid price inelastic assumptions independent of the economy, these two approaches generate limiting scenarios that depict extreme use of natural resources. This is useful to characterise the current state and possible uses of remaining non-renewable resources such as fossil fuels and natural uranium. The theory is however designed for use within economic or technology models that allow technology substitutions. In this work, it is implemented in the global power sector model FTT:Power. Policy implications are given. - Highlights: • Theoretical model to forecast marginal costs of non-renewable resources. • Tracks the consumption and costs of non-renewable resources. • For use in economic or technology models

Oil price, biofuels and food supply

International Nuclear Information System (INIS)

Timilsina, Govinda R.; Mevel, Simon; Shrestha, Ashish

2011-01-01

The price of oil could play a significant role in influencing the expansion of biofuels, but this issue has yet to be fully investigated in the literature. Using a global computable general equilibrium (CGE) model, this study analyzes the impact of oil price on biofuel expansion, and subsequently, on food supply. The study shows that a 65% increase in oil price in 2020 from the 2009 level would increase the global biofuel penetration to 5.4% in 2020 from 2.4% in 2009. If oil prices rise 150% from their 2009 levels by 2020, the resulting penetration of biofuels would be 9%, which is higher than that would be caused by current mandates and targets introduced in more than forty countries around the world. The study also shows that aggregate agricultural output drops due to an oil price increase, but the drop is small in major biofuel producing countries as the expansion of biofuels would partially offset the negative impacts of the oil price increase on agricultural outputs. An increase in oil price would reduce global food supply through direct impacts as well as through the diversion of food commodities and cropland towards the production of biofuels. - Highlights: ► A global CGE model to analyze impacts of oil price on biofuels and food supply. ► Global biofuel penetration increases from 2.4% (2009) to 5.4% (2020) in baseline. ► A 150% rise of oil price boosts biofuels more than current mandates and targets do. ► Biofuels partially offset drops in agricultural outputs caused by oil price rise. ► Biofuels as well as oil price rise negatively affect global food supply.

THE PRICE ON THE ORGANIC PRODUCT MARKET

Directory of Open Access Journals (Sweden)

ATĂNĂSOAIE GEORGE SEBASTIAN

2013-08-01

Full Text Available The main objective of this paper is to present prices on PAE market (PAE- organic foods market. Prices areanalyzed 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.The paper shows that are used three strategic options of prices: prices with high rigidity located in a low or highlevel and fluctuating prices, characterized by variations on short periods of time. Price is a very importantbarrier to market development but this importance can be mitigated through appropriate communicationpolicies with the market, which are essential especially for markets in early stages of development

The importance of price for the sale of ecological products

DEFF Research Database (Denmark)

Hansen, Jesper Kirkeby; Sørensen, Hans Christian

1993-01-01

Executive summary: 1. A high price has been considered as one of the main reasons for consumers' unwillingness to buy ecological products in spite of often positive attitudes towards this category of products. The study reported in this paper had the purpose to find out whether the present price ...... are characterised by low consumer involvement: few alternatives are compared, not very many product attributes are used, and in the decision making, consumers resort to the application of simple choice tactics....... level for ecological products is indeed a decisive obstacle to the sale of ecological prducts. 2. The survey indicated that the market share for ecological products cannot be increased at the present price level. Hence, there is good reason to focus on the price parameter. 3. An experiment with price...... reductions produced considerable changes in customer choices and hence in the estimated market share. The change for tomatoes entails a doubling of the market share at a price reduction of DKK 2.00. For potatoes one could observe a 10% increase per DKK 1.30 price reduction. The ecological market share...

Petroleum products price interactions on the world markets: an econometric analysis

International Nuclear Information System (INIS)

Maack, Laetitia de; Lantz, Frederic

2012-09-01

This study examines the relationship between crude oil and petroleum products prices in the European, Asian and North American markets. We develop an econometric model, based on the long term equilibrium between the prices, which takes into account the changes in the oil product demand trends. We explain price behaviors by the impact of the demand trends. Because the refining industry which transforms crude into petroleum products is a joint product industry, petroleum product pricing is affected by demand trends both in terms of quality and quantity. Consequently, the long term equilibrium between prices, estimated through a co-integration approach, are affected by several structural breaks. We also develop a panel econometric model which simultaneously takes into account the relative prices of ail world products towards one crude. Finally, the different results are compared to the marginal costs derived from an oil refining optimization model. This econometric modeling approach enables a better understanding of the long term equilibrium between prices of petroleum products and crude. (authors)

Global economic-biophysical assessment of midterm scenarios for agricultural markets—biofuel policies, dietary patterns, cropland expansion, and productivity growth

Science.gov (United States)

Delzeit, Ruth; Klepper, Gernot; Zabel, Florian; Mauser, Wolfram

2018-02-01

Land-use decisions are made at the local level. They are influenced both by local factors and by global drivers and trends. These will most likely change over time e.g. due to political shocks, market developments or climate change. Hence, their influence should be taken into account when analysing and projecting local land-use decisions. We provide a set of mid-term scenarios of global drivers (until 2030) for use in regional and local studies on agriculture and land-use. In a participatory process, four important drivers are identified by experts from globally distributed regional studies: biofuel policies, increase in preferences for meat and dairy products in Asia, cropland expansion into uncultivated areas, and changes in agricultural productivity growth. Their impact on possible future developments of global and regional agricultural markets are analysed with a modelling framework consisting of a global computable general equilibrium model and a crop growth model. The business as usual (BAU) scenario causes production and prices of crops to rise over time. It also leads to a conversion of pasture land to cropland. Under different scenarios, global price changes range between -42 and +4% in 2030 compared to the BAU. An abolishment of biofuel targets does not significantly improve food security while an increased agricultural productivity and cropland expansion have a stronger impact on changes in food production and prices.

Estimating customer preferences for new pricing products. Final report

International Nuclear Information System (INIS)

Goett, A.A.

1998-10-01

This report summarizes the results of a review of various methods to analyze customer preferences for electric service pricing products. The purpose of this study was to evaluate different techniques for analyzing preferences for electric service and pricing products in a competitive retail electricity market. In this market, competing providers will offer a variety of electric services under different price structures, and customers will face the decision of choosing a single electric service provider and pricing plan. The service and price characteristics that utilities offer will largely determine their market shares and profitability. Understanding preferences will be critical to quantifying the effects of service and pricing attributes on market share and profitability in the deregulated retail electricity market

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.

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

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.

Price strategies for sustainable food products

NARCIS (Netherlands)

Ingenbleek, P.T.M.

2015-01-01

Purpose – Sustainable products often suffer a competitive disadvantage compared with mainstream products because they must cover ecological and social costs that their competitors leave to future generations. The purpose of this paper is to identify price strategies for sustainable products that

Price impact on Russian gas production and export

International Nuclear Information System (INIS)

Kononov, Y.D.

2003-01-01

The paper examines the prospects for Russian gas output and export under different price development. Growth of gas production and transportation costs, following an increase of gas export and production, is estimated. An attempt is made to determine the relation of efficient (from the point of view of gas companies) gas export volumes to prices on external energy markets. The paper presents a quantitative estimate of the possible impact of domestic gas price policy on gas output in Western Siberia. (author)

Oil Production, The Price Crash and Uncertainty in Climate Change

Science.gov (United States)

Murray, J. W.

2015-12-01

World oil production increased to about 74 million barrels per day by January 2005, and was fairly constant until 2011 when it started to increase to 77.8 mb/d in 2014. This spectacular increase of 4 mb/d was almost entirely due to a sharp increase in production in the US from shale formations, called light tight oil (LTO). World oil production minus this increase in US LTO Production has been flat since 2005 at about 74 mb/d. When US production starts to decline, world oil production likely will as well. That surge is forecast to end soon because LTO is expensive to produce, the first year decline rates are extremely high requiring many new wells each year to maintain or increase production and the most productive locations have already been drilled. It is unprofitable for the Exploration and Production (E&P) companies. Full-year free cash flow has been negative for most tight oil E&P companies since 2009. The total negative cash flow for the 19 largest E&P companies totaled 10.5B in 2014. The surge in US LTO production created an imbalance in global supply and demand and resulted in a 50% decrease in the price of oil. The tight-oil producers who were are financially marginal at an oil price greater than 90 per barrel are even more so at the lower price. As a result the surge in US production of LTO is declining, making it unlikely that world oil production will exceed the present value of about 28 Gb/yr (equivalent to 75 mb/d) (175 EJ/yr). Many of the SRES (IPCC Special Report on Emission Scenarios) and RCP (IPCC Representative Concentration Pathways) projections (especially RCP 8.5 and 6) require CO2 emissions due to oil consumption in the range of 32 Gb/yr to 57 Gb/yr (200 to 350 EJ/yr). The higher values would require a doubling of world oil production. It is highly uncertain whether the higher CO2 scenarios will be reached. This is an element of uncertainty missing from most considerations of future climate change.

The world energy demand in 2007: How high oil prices impact the global energy demand? June 9, 2008

International Nuclear Information System (INIS)

2008-01-01

How high oil prices impact the global energy demand? The growth of energy demand continued to accelerate in 2007 despite soaring prices, to reach 2,8 % (+ 0,3 point compared to 2006). This evolution results from two diverging trends: a shrink in energy consumption in most of OECD countries, except North America, and a strong increase in emerging countries. Within the OECD, two contrasting trends can be reported, that compensate each other partially: the reduction of energy consumption in Japan (-0.8%) and in Europe (-1.2%), particularly significant in the EU-15 (-1.9%); the increase of energy consumption in North America (+2%). Globally, the OECD overall consumption continued to increase slightly (+0.5%), while electricity increased faster (2,1%) and fuels remained stable. Elsewhere, the strong energy demand growth remained very dynamic (+5% for the total demand, 8% for electricity only), driven by China (+7.3%). The world oil demand increased by 1% only, but the demand has focused even more on captive end usages, transports and petrochemistry. The world gasoline and diesel demand increased by around 5,7% in 2007, and represents 53% of the total oil products demand in 2007 (51% in 2006). If gasoline and diesel consumption remained quasi-stable within OECD countries, the growth has been extremely strong in the emerging countries, despite booming oil prices. There are mainly two factors explaining this evolution where both oil demand and oil prices increased: Weak elasticity-prices to the demand in transport and petrochemistry sectors Disconnection of domestic fuel prices in major emerging countries (China, India, Latin America) compared to world oil market prices Another striking point is that world crude oil and condensate production remained almost stable in 2007, hence the entire demand growth was supported by destocking. During the same period, the OPEC production decreased by 1%, mainly due to the production decrease in Saudi Arabia, that is probably more

Biofuels versus food production: Does biofuels production increase food prices?

International Nuclear Information System (INIS)

Ajanovic, Amela

2011-01-01

Rapidly growing fossil energy consumption in the transport sector in the last two centuries caused problems such as increasing greenhouse gas emissions, growing energy dependency and supply insecurity. One approach to solve these problems could be to increase the use of biofuels. Preferred feedstocks for current 1st generation biofuels production are corn, wheat, sugarcane, soybean, rapeseed and sunflowers. The major problem is that these feedstocks are also used for food and feed production. The core objective of this paper is to investigate whether the recent increase of biofuels production had a significant impact on the development of agricultural commodity (feedstock) prices. The most important impact factors like biofuels production, land use, yields, feedstock and crude oil prices are analysed. The major conclusions of this analysis are: In recent years the share of bioenergy-based fuels has increased moderately, but continuously, and so did feedstock production, as well as yields. So far, no significant impact of biofuels production on feedstock prices can be observed. Hence, a co-existence of biofuel and food production seems possible especially for 2nd generation biofuels. However, sustainability criteria should be seriously considered. But even if all crops, forests and grasslands currently not used were used for biofuels production it would be impossible to substitute all fossil fuels used today in transport.

The role of price as a product attribute in the organic food context

DEFF Research Database (Denmark)

Marian, Livia; Chrysochou, Polymeros; Krystallis Krontalis, Athanasios

2014-01-01

High prices are often quoted as an obstacle to consumer purchase of organic food products. This article investigates the market performance of organic food products at different price levels and whether high price is necessarily a disadvantage for organic food products, especially with regard to ...... products (i.e. there is a spillover of high price organic food purchases to other product categories). Implications for pricing strategies for organic food products are discussed.......High prices are often quoted as an obstacle to consumer purchase of organic food products. This article investigates the market performance of organic food products at different price levels and whether high price is necessarily a disadvantage for organic food products, especially with regard...... to generating repeat purchase. Based on analyses of panel purchase data from 2011 in Denmark, the study explores the effects of production method (organic vs. conventional) and price on consumers’ repeat purchase and cross-purchase across four product categories: red meat, chicken, milk and hard cheese. Results...

The impact of luxury brand identity on product pricing policy

Directory of Open Access Journals (Sweden)

Wioleta Dryl

2013-12-01

Full Text Available Basing the luxury product pricing policy, only on the assumption that the price has to be the highest amount a client is willing to pay, poses a number of challenges in front of enterprise. The consumer of the luxury product is very aware of his needs and expectations. He is ready to pay a higher price for the product, but is expecting to return, very specific values. Relying luxury brand strategy, only on high-priced, without enrichment offer to a sufficiently high level leads to market failure. The justification for the high price of the product may, however, be defined brand image, which is a consequence of appropriate policies shaping its identity. In the case of luxury goods, especially essential tool proves to be the emotional component of the brand identity.

Price Uncertainty in Linear Production Situations

NARCIS (Netherlands)

Suijs, J.P.M.

1999-01-01

This paper analyzes linear production situations with price uncertainty, and shows that the corrresponding stochastic linear production games are totally balanced. It also shows that investment funds, where investors pool their individual capital for joint investments in financial assets, fit into

EOQ model for perishable products with price-dependent demand, pre and post discounted selling price

Science.gov (United States)

Santhi, G.; Karthikeyan, K.

2017-11-01

In this article we introduce an economic order quantity model for perishable products like vegetables, fruits, milk, flowers, meat, etc.,with price-dependent demand, pre and post discounted selling price. Here we consider the demand is depending on selling price and deterioration rate is constant. Here we developed mathematical model to determine optimal discounton the unit selling price to maximize total profit. Numerical examples are given for illustrated.

GLOBAL FINANCIAL CRISIS AND AGRARIAN HOUSEHOLDS' INCOME, REMITTANCE AND PRICES IN RURAL NIGERIA AMID POLICY RESPONSES

Directory of Open Access Journals (Sweden)

Mmaduabuchukwu Mkpado

2012-06-01

Full Text Available The recent global financial crisis affected almost all aspect of human life. This paper explored effects of the global financial crisis on farmers' income, remittance and prices of food staples and highlighted certain government policy responses. The study was conducted in Nigeria. Secondary data were used. Data were analyzed using descriptive statistics, equivalent variation and Shannon index analysis. Results showed the global financial crisis affected the agrarian households/sector in Nigeria. The increase in prices meant more nominal income to farmers but grossly reduced their welfare due to decrease in real income as result of high inflation trend. Recommendations include that government should continue to sustain agrarian programs aimed at helping poor farmers to increase their capacity in production to meet the growing demand and changes. In both cases, the disturbed age structure has a reverse effect on the movement of the population (the size of reproductive contingent, but also to all other structures of the population (the size of contingent employment, population, compulsory school contingent, contingent dependent population ratio. Rating natural conditions aimed at separation of homogenous territorial units with some degree of benefits and limitations types of economic development.

Natural gas pricing policies in Southeast Asia

International Nuclear Information System (INIS)

Pacudan, R.B.

1998-01-01

The very dynamic economies of Southeast Asia have recently been experiencing a rapid increase in energy demand. Parallel to this development, there has been an increase in the utilization of indigenous natural gas resources. This article reviews gas-pricing policies in the region, which partly explain the rise in gas utilization. Although diverse, energy pricing policies in Southeast Asia address the common objective of enhancing domestic gas production and utilization. The article concludes that a more rational gas-pricing policy framework is emerging in the region. In global terms, gas pricing in the region tends to converge in a market-related framework, despite the many different pricing objectives of individual countries, and the predominance of non-economic pricing objectives in certain countries (especially gas-rich nations). Specifically, governments have been flexible enough to follow global trends and initiate changes in contractual agreements (pricing and profit-sharing), giving oil companies more favourable terms, and encouraging continued private investment in gas development. At the same time, promotional pricing has also been used to increase utilization of gas, through set prices and adjusted taxes achieving a lower price level compared to substitute fuels. For an efficient gas-pricing mechanism, refinements in the pricing framework should be undertaken, as demand for gas approaches existing and/or forecast production capacities. (author)

Share-of-Surplus Product Line Optimisation with Price Levels

Directory of Open Access Journals (Sweden)

X. G. Luo

2014-01-01

Full Text Available Kraus and Yano (2003 established the share-of-surplus product line optimisation model and developed a heuristic procedure for this nonlinear mixed-integer optimisation model. In their model, price of a product is defined as a continuous decision variable. However, because product line optimisation is a planning process in the early stage of product development, pricing decisions usually are not very precise. In this research, a nonlinear integer programming share-of-surplus product line optimization model that allows the selection of candidate price levels for products is established. The model is further transformed into an equivalent linear mixed-integer optimisation model by applying linearisation techniques. Experimental results in different market scenarios show that the computation time of the transformed model is much less than that of the original model.

The role of storage dynamics in annual wheat prices

Science.gov (United States)

Schewe, Jacob; Otto, Christian; Frieler, Katja

2017-05-01

Identifying the drivers of global crop price fluctuations is essential for estimating the risks of unexpected weather-induced production shortfalls and for designing optimal response measures. Here we show that with a consistent representation of storage dynamics, a simple supply-demand model can explain most of the observed variations in wheat prices over the last 40 yr solely based on time series of annual production and long term demand trends. Even the most recent price peaks in 2007/08 and 2010/11 can be explained by additionally accounting for documented changes in countries’ trade policies and storage strategies, without the need for external drivers such as oil prices or speculation across different commodity or stock markets. This underlines the critical sensitivity of global prices to fluctuations in production. The consistent inclusion of storage into a dynamic supply-demand model closes an important gap when it comes to exploring potential responses to future crop yield variability under climate and land-use change.

PROCESS OF GLOBAL SHOCKS TRANSMISSION TO DOMESTIC FOOD PRICE LEVEL: CASE OF BANGLADESH

Directory of Open Access Journals (Sweden)

Fakir Azmal Huda

2014-04-01

Full Text Available The world experienced in dramatic price surge of food commodities since mid of 2007 to 2008. It was claimed that the crisis were being mainly for backdrop of global shocks in food and energy price. But how the shocks come to domestic market from external sources is a researchable phenomenon. Surprisingly few attempts have been made to systematically analysis of shock transmission from international to domestic market. The study analyzed the effect of global commodity market factors and domestic exchange rate development on domestic food price in Bangladesh. A bi-variants co-integration approach was applied for the analysis of shock transmission. Finally an error correction model was developed. The overall magnitudes of the pass through suggest that only 46 per cent of the total world shock pass-through in domestic economy.

Processing Trade, Productivity and Prices: Evidence from a Chinese Production Survey

DEFF Research Database (Denmark)

Li, Yao Amber; Smeets, Valerie; Warzynski, Frederic

to be less efficient than firms only involved on the domestic market based on the standard revenue productivity measure. However, we show strong positive export premium when we instead consider physical productivity. The simple and intuitive explanation of our results is that exporters charge on average...... lower prices. We focus more particularly on the role of processing trade and find that price differences are especially (and probably not surprisingly) large for firms involved in this type of contractual arrangements....

World Energy Balance Outlook and OPEC Production Capacity: Implications for Global Oil Security

Directory of Open Access Journals (Sweden)

Azadeh M. Rouhani

2012-07-01

Full Text Available The imbalance between energy resource availability, demand, and production capacity, coupled with inherent economic and environmental uncertainties make strategic energy resources planning, management, and decision-making a challenging process. In this paper, a descriptive approach has been taken to synthesize the world’s energy portfolio and the global energy balance outlook in order to provide insights into the role of Organization of Petroleum Exporting Countries (OPEC in maintaining “stability” and “balance” of the world’s energy market. This synthesis illustrates that in the absence of stringent policies, i.e., if historical trends of the global energy production and consumption hold into the future, it is unlikely that non-conventional liquid fuels and renewable energy sources will play a dominant role in meeting global energy demand by 2030. This should be a source of major global concern as the world may be unprepared for an ultimate shift to other energy sources when the imminent peak oil production is reached. OPEC’s potential to impact the supply and price of oil could enable this organization to act as a facilitator or a barrier for energy transition policies, and to play a key role in the global energy security through cooperative or non-cooperative strategies. It is argued that, as the global energy portfolio becomes more balanced in the long run, OPEC may change its typical high oil price strategies to drive the market prices to lower equilibria, making alternative energy sources less competitive. Alternatively, OPEC can contribute to a cooperative portfolio management approach to help mitigate the gradually emerging energy crisis and global warming, facilitating a less turbulent energy transition path while there is time.

Product-line selection and pricing with remanufacturing under availability constraints

Science.gov (United States)

Aras, Necati; Esenduran, G.÷k.‡e.; Altinel, I. Kuban

2004-12-01

Product line selection and pricing are two crucial decisions for the profitability of a manufacturing firm. Remanufacturing, on the other hand, may be a profitable strategy that captures the remaining value in used products. In this paper we develop a mixed-integer nonlinear programming model form the perspective of an original equipment manufacturer (OEM). The objective of the OEM is to select products to manufacture and remanufacture among a set of given alternatives and simultaneously determine their prices so as to maximize its profit. It is assumed that the probability a customer selects a product is proportional to its utility and inversely proportional to its price. The utility of a product is an increasing function of its perceived quality. In our base model, products are discriminated by their unit production costs and utilities. We also analyze a case where remanufacturing is limited by the available quantity of collected remanufacturable products. We show that the resulting problem is decomposed into the pricing and product line selection subproblems. Pricing problem is solved by a variant of the simplex search procedure which can also handle constraints, while complete enumeration and a genetic algorithm are used for the solution of the product line selection problem. A number of experiments are carried out to identify conditions under which it is economically viable for the firm to sell remanufactured products. We also determine the optimal utility and unit production cost values of a remanufactured product, which maximizes the total profit of the OEM.

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.

Microeconomics of the Productivity, Price Indicators and Farm Incomes. Analytical Approach

Directory of Open Access Journals (Sweden)

Włodzimierz Rembisz

2011-07-01

Full Text Available The paper develops a farm producer behavior type model to analyze the impact of a input productivity and price change on farm incomes. The theoretical analysis shows the consequences of the balance between the increase of production factor prices and their productivity improvement in the condition of stable procurement price for the farm producers income. The cost effect of the production factors price increment and its neutralization by productivity (TFP-type growth is examined as well as some aspects of the inputs shares (returns and costs in the produce value. The article argues that labor input productivity as an endogenous factor, is an essential for farm incomes growth assuming the specified type of the farm producer utility function (its equations and variables as well as no the compensative procurement price change conditions. Some empirical evidence is attached however more work in that respect is foreseen.

Asymmetric Effects of Global Liquidity Expansion on Foreign Portfolio Inflows, Exchange Rates, and Stock Prices

Directory of Open Access Journals (Sweden)

Dong-Eun Rhee

2014-06-01

Full Text Available This paper examines the effects of global liquidity expansion on advanced and emerging economies by using panel VAR methodology. The results show that global liquidity expansion tends to boost economy by increasing GDP growth and stock prices. However, we find that the effects are asymmetric. The effects of global liquidity on GDP and stock prices are greater and more persistent in emerging economies than in liquidity recipient advanced economies. Moreover, global liquidity appreciates emerging economies' exchange rates more persistently than those of advanced economies. Lastly, while global liquidity expansion increases foreign portfolio investment inflows to Asian countries and liquidity recipient advanced economies, there is no evidence for Latin American countries.

Price transmission between products at different stages of manufacturing in forest industries

Science.gov (United States)

Mo Zhou; Joseph Buongiorno

2005-01-01

The theory of demand and supply implies a positive relationship, or "price transmission" between the prices of products at different stages of manufacturing, This relationship was investigated with quarterly prices of softwood stumpage in the US South, and national prices of forest products, from 1977 to 2002. All prices, net of inflation, were found to be...

Oil price movements and production agreements

International Nuclear Information System (INIS)

Mazraati, M.

2004-01-01

The purpose of this technical exercise is to apply econometric modelling to study the relationship between movements in the oil price and compliance by the Organization of the Petroleum Exporting Countries (OPEC) with its self-assigned production agreements, whose purpose is to bring order and stability to the international oil market. After introducing various methods of measurement of compliance, the study applies these methods to monthly data for 1995-2002 for OPEC. It then identifies the method ''over-production as a percentage of ceiling'' as the best-fitting and most accurate criterion for measuring OPEC compliance. The paper then elaborates on intervention analysis, explains the various types of intervention in detail and introduces a number of econometric models to monitor oil price movements resulting from OPEC's intervention in the oil market, along with the extent of its compliance with its agreements. On applying the models to a set of historical monthly data, the study finds that higher oil prices have been achieved when the effective level of compliance lies in the range of 94-99 per cent, and that lower oil prices have been experienced when there is less compliance and more volatility. The paper notes that the achievement of order and stability is the responsibility of all parties in an international market that is inherently volatile. (author)

77 FR 65279 - Domestic Competitive Products Pricing and Mailing Standards Changes

Science.gov (United States)

2012-10-26

... POSTAL SERVICE 39 CFR Part 111 Domestic Competitive Products Pricing and Mailing Standards Changes... and mailing standards for the following competitive products: Express Mail[supreg], Priority Mail.... SUPPLEMENTARY INFORMATION: This final rule describes new prices and product features for competitive products...

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.

Equity Prices, Productivity Growth, and the 'New Economy'

DEFF Research Database (Denmark)

Madsen, Jakob Brøchner; Davis, E. Philip

The sharp increase in equity prices over the 1990s was widely attributed to permanently higher productivity growth derived from the New Economy. This paper establishes a rational expectations model of technology innovations and equity prices, which shows that under plausible assumptions...

The influence of global benchmark oil prices on the regional oil spot market in multi-period evolution

International Nuclear Information System (INIS)

Jiang, Meihui; An, Haizhong; Jia, Xiaoliang; Sun, Xiaoqi

2017-01-01

Crude benchmark oil prices play a crucial role in energy policy and investment management. Previous research confined itself to studying the static, uncertain, short- or long-term relationship between global benchmark oil prices, ignoring the time-varying, quantitative, dynamic nature of the relationship during various stages of oil price volatility. This paper proposes a novel approach combining grey relation analysis, optimization wavelet analysis, and Bayesian network modeling to explore the multi-period evolution of the dynamic relationship between global benchmark oil prices and regional oil spot price. We analyze the evolution of the most significant decision-making risk periods, as well as the combined strategy-making reference oil prices and the corresponding periods during various stages of volatility. Furthermore, we determine that the network evolution of the quantitative lead/lag relationship between different influences of global benchmark oil prices shows a multi-period evolution phenomenon. For policy makers and market investors, our combined model can provide decision-making periods with the lowest expected risk and decision-making target reference oil prices and corresponding weights for strategy adjustment and market arbitrage. This study provides further information regarding period weights of target reference oil prices, facilitating efforts to perform multi-agent energy policy and intertemporal market arbitrage. - Highlights: • Multi-period evolution of the influence of different oil prices is discovered. • We combined grey relation analysis, optimization wavelet and Bayesian network. • The intensity of volatility, synchronization, and lead/lag effects are analyzed. • The target reference oil prices and corresponding period weights are determined.

The Triggers, Timing and Speed of New Product Price Landings

NARCIS (Netherlands)

C. Hernández-Mireles (Carlos); D. Fok (Dennis); Ph.H.B.F. Franses (Philip Hans)

2008-01-01

textabstractMany high-tech products and durable goods exhibit exactly one significant price cut some time after their launch. We call this sudden transition from high to low prices the price landing. In this paper we present a new model that describes two important features of price landings: their

Successful New Product Pricing Practices: A Contingency Approach

NARCIS (Netherlands)

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

2003-01-01

The purpose of this study is to examine the success of new product pricing practices and the conditions upon which success is contingent. We distinguish three different pricing practices that refer to the use of information on customer value, competition, and costs respectively. Following Monroe's

Successful New Product Pricing Practices: A Contingency Approach

NARCIS (Netherlands)

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

2003-01-01

Abstract The purpose of this study is to examine the success of new product pricing practices and the conditions upon which success is contingent. We distinguish three different pricing practices that refer to the use of information on customer value, competition, and costs respectively. Following

Price, tax and tobacco product substitution in Zambia.

Science.gov (United States)

Stoklosa, Michal; Goma, Fastone; Nargis, Nigar; Drope, Jeffrey; Chelwa, Grieve; Chisha, Zunda; Fong, Geoffrey T

2018-03-24

In Zambia, the number of cigarette users is growing, and the lack of strong tax policies is likely an important cause. When adjusted for inflation, levels of tobacco tax have not changed since 2007. Moreover, roll-your-own (RYO) tobacco, a less-costly alternative to factory-made (FM) cigarettes, is highly prevalent. We modelled the probability of FM and RYO cigarette smoking using individual-level data obtained from the 2012 and 2014 waves of the International Tobacco Control (ITC) Zambia Survey. We used two estimation methods: the standard estimation method involving separate random effects probit models and a method involving a system of equations (incorporating bivariate seemingly unrelated random effects probit) to estimate price elasticities of FM and RYO cigarettes and their cross-price elasticities. The estimated price elasticities of smoking prevalence are -0.20 and -0.03 for FM and RYO cigarettes, respectively. FM and RYO are substitutes; that is, when the price of one of the products goes up, some smokers switch to the other product. The effects are stronger for substitution from FM to RYO than vice versa. This study affirms that increasing cigarette tax with corresponding price increases could significantly reduce cigarette use in Zambia. Furthermore, reducing between-product price differences would reduce substitution from FM to RYO. Since RYO use is associated with lower socioeconomic status, efforts to decrease RYO use, including through tax/price approaches and cessation assistance, would decrease health inequalities in Zambian society and reduce the negative economic consequences of tobacco use experienced by the poor. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

Establishing a pricing structure for software products : Case study: Viope Solutions Oy

OpenAIRE

Nguyen, Tram

2013-01-01

This thesis is a case study that explores how to establish a pricing structure for software products. The objective is to provide a guideline to establish a pricing structure for Viope Solutions Oy. A new pricing structure is crucial for the company due to recent changes in its business such as internationalisation and new product launches. The literature review introduces five attributes of a pricing structure. They are the unit definition, price determination, price segmentation, versio...

Detecting Chaos from Agricultural Product Price Time Series

Directory of Open Access Journals (Sweden)

Xin Su

2014-12-01

Full Text Available Analysis of the characteristics of agricultural product price volatility and trend forecasting are necessary to formulate and implement agricultural price control policies. Taking wholesale cabbage prices as an example, a multiple test methodology has been adopted to identify the nonlinearity, fractality, and chaos of the data. The approaches used include the R/S analysis, the BDS test, the power spectra, the recurrence plot, the largest Lyapunov exponent, the Kolmogorov entropy, and the correlation dimension. The results show that there is chaos in agricultural wholesale price data, which provides a good theoretical basis for selecting reasonable forecasting models as prediction techniques based on chaos theory can be applied to forecasting agricultural prices.

Petroleum product pricing in Asian developing countries: Lessons from the past and future issues

International Nuclear Information System (INIS)

Bhattacharyya, S.C.

1997-01-01

This paper looks at the pricing of petroleum products in ten Asian developing countries using a data series for 1973--1992. Prices of petroleum products are compared with international prices. Differential prices are measured with respect to diesel prices. It is found that energy prices are used as instruments for revenue earnings. Pricing policies vary widely among countries and neighbors have different fuel prices. Countries try to align the local prices of petroleum products in line with international prices but with a lag of 1--2 years. The wave of liberalization and privatization is sweeping many developing countries. Additionally, environmental issues are gaining importance even in developing countries. The paper also discusses these emerging issues that need to be taken into account in the petroleum product pricing

Automobile Marketing Strategies, Pricing, and Product Planning

Science.gov (United States)

1978-04-01

The objective of the study was to determine the decision-making processes concerning major model year product introductions and alterations in the automotive industry as well as to investigate techniques of price positioning, product and image positi...

Automobile Marketing Strategies, Pricing, and Product Planning

Science.gov (United States)

1978-01-01

The objective of the study was to determine the decision-making processes concerning major model year product introductions and alterations in the automotive industry as well as to investigate techniques of price positioning, product and image positi...

Duopoly price competition on markets with agricultural products

Directory of Open Access Journals (Sweden)

Marie Prášilová

2011-01-01

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

Accurate market price formation model with both supply-demand and trend-following for global food prices providing policy recommendations.

Science.gov (United States)

Lagi, Marco; Bar-Yam, Yavni; Bertrand, Karla Z; Bar-Yam, Yaneer

2015-11-10

Recent increases in basic food prices are severely affecting vulnerable populations worldwide. Proposed causes such as shortages of grain due to adverse weather, increasing meat consumption in China and India, conversion of corn to ethanol in the United States, and investor speculation on commodity markets lead to widely differing implications for policy. A lack of clarity about which factors are responsible reinforces policy inaction. Here, for the first time to our knowledge, we construct a dynamic model that quantitatively agrees with food prices. The results show that the dominant causes of price increases are investor speculation and ethanol conversion. Models that just treat supply and demand are not consistent with the actual price dynamics. The two sharp peaks in 2007/2008 and 2010/2011 are specifically due to investor speculation, whereas an underlying upward trend is due to increasing demand from ethanol conversion. The model includes investor trend following as well as shifting between commodities, equities, and bonds to take advantage of increased expected returns. Claims that speculators cannot influence grain prices are shown to be invalid by direct analysis of price-setting practices of granaries. Both causes of price increase, speculative investment and ethanol conversion, are promoted by recent regulatory changes-deregulation of the commodity markets, and policies promoting the conversion of corn to ethanol. Rapid action is needed to reduce the impacts of the price increases on global hunger.

Valuing ecosystem services. A shadow price for net primary production

International Nuclear Information System (INIS)

Richmond, Amy; Kaufmann, Robert K.; Myneni, Ranga B.

2007-01-01

We analyze the contribution of ecosystem services to GDP and use this contribution to calculate an empirical price for ecosystem services. Net primary production is used as a proxy for ecosystem services and, along with capital and labor, is used to estimate a Cobb Douglas production function from an international panel. A positive output elasticity for net primary production probably measures both marketed and nonmarketed contributions of ecosystems services. The production function is used to calculate the marginal product of net primary production, which is the shadow price for ecosystem services. The shadow price generally is greatest for developed nations, which have larger technical scalars and use less net primary production per unit output. The rate of technical substitution indicates that the quantity of capital needed to replace a unit of net primary production tends to increase with economic development, and this rate of replacement may ultimately constrain economic growth. (author)

The impact of German biogas production on European and global agricultural markets, land use and the environment

International Nuclear Information System (INIS)

Britz, Wolfgang; Delzeit, Ruth

2013-01-01

As part of its climate policy, Germany promotes the production of biogas via its so-called Renewable-Energy-Act (EEG). The resulting boost in biogas output went along with a significant increase in production of green maize, the dominant feedstock. Existing studies of the EEG have analysed its impacts on German agriculture without considering market feedback. We thus expand existing quantitative analysis by also considering impacts on European and global agricultural markets, land use and the environment by combining a detailed location model for biogas plants, the Regionalised Location Information System-Maize (ReSi-M2012), with a global Partial Equilibrium model for agriculture, the Common Agricultural Policy Regional Impact (CAPRI) model. Our results indicate that the German biogas production is large enough to have sizeable impacts on global agricultural markets in prices and quantities, causing significant land use change outside of Germany. While profits in the agricultural sector increase, food consumer face higher prices, and subsidies for biogas production are passed on to electricity consumers. The German biogas program, as long as it is almost entirely based on non-waste feedstocks, is probably not a promising avenue towards a GHG-saving renewable energy production, but a rather expensive one. - Highlights: • Recent changes to that program decrease green maize use but increase land demands. • The program could raise EU prices for cereals by 3%. • Agricultural land use expansion outside of the EU estimated at 1 Mio ha

Nonlinear joint dynamics between prices of crude oil and refined products

Science.gov (United States)

Zhang, Tao; Ma, Guofeng; Liu, Guangsheng

2015-02-01

In this paper, we investigate the relationships between crude oil and refined product prices. We find that nonlinear correlations are stronger in the long-term than in the short-term. Crude oil and product prices are cointegrated and financial crisis in 2007-2008 caused a structural break of the cointegrating relationship. Moreover, different from the findings in most studies, we reveal that the relationships are almost symmetric based on a threshold error correction model. The so-called 'asymmetric relationships' are caused by some outliers and financial crisis. Most of the time, crude oil prices play the major role in the adjustment process of the long-term equilibrium. However, refined product prices dominated crude oil prices during the period of financial crisis. Important policy and risk management implications can be learned from the empirical findings.

Transfer prices assignment with integrated production and marketing optimization models

Directory of Open Access Journals (Sweden)

Enrique Parra

2018-04-01

Full Text Available Purpose: In decentralized organizations (today a great majority of the large multinational groups, much of the decision-making power is in its individual business units-BUs-. In these cases, the management control system (MCS uses transfer prices to coordinate actions of the BUs and to evaluate their performance with the goal of guaranteeing the whole corporation optimum. The purpose of the investigation is to design transfer prices that suit this goal. Design/methodology/approach: Considering the results of the whole company supply chain optimization models (in the presence of seasonality of demand the question is to design a mechanism that creates optimal incentives for the managers of each business unit to drive the corporation to the optimal performance. Mathematical programming models are used as a start point. Findings: Different transfer prices computation methods are introduced in this paper for decentralised organizations with two divisions (production and marketing. The methods take into account the results of the solution of the whole company supply chain optimization model, if exists, and can be adapted to the type of information available in the company. It is mainly focused on transport costs assignment. Practical implications: Using the methods proposed in this paper a decentralized corporation can implement more accurate transfer prices to drive the whole organization to the global optimum performance. Originality/value: The methods proposed are a new contribution to the literature on transfer prices with special emphasis on the practical and easy implementation in a modern corporation with several business units and with high seasonality of demand. Also, the methods proposed are very flexible and can be tuned depending on the type of information available in the company.

Prediction of seasonal climate-induced variations in global food production

Science.gov (United States)

Iizumi, Toshichika; Sakuma, Hirofumi; Yokozawa, Masayuki; Luo, Jing-Jia; Challinor, Andrew J.; Brown, Molly E.; Sakurai, Gen; Yamagata, Toshio

2013-10-01

Consumers, including the poor in many countries, are increasingly dependent on food imports and are thus exposed to variations in yields, production and export prices in the major food-producing regions of the world. National governments and commercial entities are therefore paying increased attention to the cropping forecasts of important food-exporting countries as well as to their own domestic food production. Given the increased volatility of food markets and the rising incidence of climatic extremes affecting food production, food price spikes may increase in prevalence in future years. Here we present a global assessment of the reliability of crop failure hindcasts for major crops at two lead times derived by linking ensemble seasonal climatic forecasts with statistical crop models. We found that moderate-to-marked yield loss over a substantial percentage (26-33%) of the harvested area of these crops is reliably predictable if climatic forecasts are near perfect. However, only rice and wheat production are reliably predictable at three months before the harvest using within-season hindcasts. The reliabilities of estimates varied substantially by crop--rice and wheat yields were the most predictable, followed by soybean and maize. The reasons for variation in the reliability of the estimates included the differences in crop sensitivity to the climate and the technology used by the crop-producing regions. Our findings reveal that the use of seasonal climatic forecasts to predict crop failures will be useful for monitoring global food production and will encourage the adaptation of food systems toclimatic extremes.

Domestic petroleum product pricing policy: Old issues in new perspective

International Nuclear Information System (INIS)

Bhattacharyya, S.C.

1995-01-01

It appears that the economic basis of domestic petroleum product pacing has, hitherto, received inadequate attention from economists. International comparisons of petroleum product pricing show that domestic markets are highly distorted This article argues that despite significant developments in theoretical and applied economics, economic theories do not provide any ready made solutions for energy pricing issues to the policy makers who have to deal with a large set of practical issues. As a result, it is not unusual to encounter gross misapplication of economic rules in petroleum pricing policies. This work also focuses on the possible effects of changing domestic market structure vis-a-vis pricing policies

Prices, production, and inventories over the automotive model year

OpenAIRE

Adam Copeland; Wendy E. Dunn; George J. Hall

2005-01-01

This paper studies the within-model-year pricing and production of new automobiles. Using new monthly data on U.S. transaction prices, we document that for the typical new vehicle, prices typically fall over the model year at a 9.2 percent annual rate. Concurrently, both sales and inventories are hump shaped. To explain these time series, we formulate a market equilibrium model for new automobiles in which inventory and pricing decisions are made simultaneously. On the demand side, we use mic...

Supply disruptions and regional price effects in a spatial oligopoly. An application to the global gas market

International Nuclear Information System (INIS)

Growitsch, Christian; Hecking, Harald; Panke, Timo

2013-01-01

Supply shocks in the global gas market may affect countries differently, as the market is regionally interlinked but not perfectly integrated. Additionally, high supply-side concentration may expose countries to market power in different ways. To evaluate the strategic position of importing countries with regard to gas supplies, we disentangle import price components into increasing and decreasing factors. Due to the complexity of the interrelations in the global gas market, we use an equilibrium model programmed as a mixed complementarity problem (MCP) and simulate the blockage of LNG ows through the Strait of Hormuz. This enables us to account for the oligopolistic nature and the asymmetry of the gas supply. We find that Japan faces the most severe price increases, as the Japanese gas demand completely relies on LNG supply. In contrast, European countries such as the UK benefit from good interconnection to the continental pipeline system and domestic pricetaking production, both of which help to mitigate an increase in physical costs of supply as well as in the exercise of market power.

Price promotions for food and beverage products in a nationwide sample of food stores.

Science.gov (United States)

Powell, Lisa M; Kumanyika, Shiriki K; Isgor, Zeynep; Rimkus, Leah; Zenk, Shannon N; Chaloupka, Frank J

2016-05-01

Food and beverage price promotions may be potential targets for public health initiatives but have not been well documented. We assessed prevalence and patterns of price promotions for food and beverage products in a nationwide sample of food stores by store type, product package size, and product healthfulness. We also assessed associations of price promotions with community characteristics and product prices. In-store data collected in 2010-2012 from 8959 food stores in 468 communities spanning 46 U.S. states were used. Differences in the prevalence of price promotions were tested across stores types, product varieties, and product package sizes. Multivariable regression analyses examined associations of presence of price promotions with community racial/ethnic and socioeconomic characteristics and with product prices. The prevalence of price promotions across all 44 products sampled was, on average, 13.4% in supermarkets (ranging from 9.1% for fresh fruits and vegetables to 18.2% for sugar-sweetened beverages), 4.5% in grocery stores (ranging from 2.5% for milk to 6.6% for breads and cereals), and 2.6% in limited service stores (ranging from 1.2% for fresh fruits and vegetables to 4.1% for breads and cereals). No differences were observed by community characteristics. Less-healthy versus more-healthy product varieties and larger versus smaller product package sizes generally had a higher prevalence of price promotion, particularly in supermarkets. On average, in supermarkets, price promotions were associated with 15.2% lower prices. The observed patterns of price promotions warrant more attention in public health food environment research and intervention. Copyright © 2016 Elsevier Inc. All rights reserved.

Review of uranium market price

International Nuclear Information System (INIS)

Maragatham Kumar; Nik Arlina Nik Ali; Koh You Beng

2007-01-01

Uranium is used as an abundant source of concentrated energy and is the principal fuel for the generation of electricity by nuclear reactors. In nuclear reactors, the uranium fuel is assembled in such a way that a controlled fission chain reaction can be achieved. Since uranium is the main source of nuclear energy, demand prospects for uranium has increased dramatically with the renewed global interest in nuclear power generation in recent years. Although the global uranium market is relatively small worldwide, compared to other mineral and energy sources, it is a very important market as nuclear power generation accounts for about 18% of global electricity supply. After reaching historic lows in 1990s, uranium prices have risen substantially in recent years. The outlook for nuclear power has changed since 2000, with concerns over global warming, proven excellent safety record, competitive costs, progress on nuclear waste disposal issues and also continuing new nuclear plant construction around the world. These and various other influencing factors have resulted in the uranium market evolving from one that was driven by excess secondary supplies to that by primary production. This paper reviews the global market prices for the years 1987 until 2006 and the factors, which influence the changes in global uranium market prices. (Author)

Inflation and Intramarket Price Variability: Empirical Evidence from U.S. Food Products

OpenAIRE

Baek, Jungho

2010-01-01

The objective of this paper is to examine the response of relative price variability on U.S. food markets to food price inflation to identify whether such inflation influences the structure of relative prices between different food products. Results show that changes in food price inflation rate have a strong positive effect on the structure of relative prices across food products. In addition, the expected rate of inflation is found to be more important than the unexpected components as a de...

78 FR 25784 - Re-pricing of Several Silver Coin Products

Science.gov (United States)

2013-05-02

... DEPARTMENT OF THE TREASURY United States Mint Re-pricing of Several Silver Coin Products AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: Because of the recent decrease in the market price of silver, the United States Mint is lowering the price of several numismatic...

Pricing hospital care: Global budgets and marginal pricing strategies.

Science.gov (United States)

Sutherland, Jason M

2015-08-01

The Canadian province of British Columbia (BC) is adding financial incentives to increase the volume of surgeries provided by hospitals using a marginal pricing approach. The objective of this study is to calculate marginal costs of surgeries based on assumptions regarding hospitals' availability of labor and equipment. This study is based on observational clinical, administrative and financial data generated by hospitals. Hospital inpatient and outpatient discharge summaries from the province are linked with detailed activity-based costing information, stratified by assigned case mix categorizations. To reflect a range of operating constraints governing hospitals' ability to increase their volume of surgeries, a number of scenarios are proposed. Under these scenarios, estimated marginal costs are calculated and compared to prices being offered as incentives to hospitals. Existing data can be used to support alternative strategies for pricing hospital care. Prices for inpatient surgeries do not generate positive margins under a range of operating scenarios. Hip and knee surgeries generate surpluses for hospitals even under the most costly labor conditions and are expected to generate additional volume. In health systems that wish to fine-tune financial incentives, setting prices that create incentives for additional volume should reflect knowledge of hospitals' underlying cost structures. Possible implications of mis-pricing include no response to the incentives or uneven increases in supply. Copyright © 2015 The Authors. Published by Elsevier Ireland Ltd.. All rights reserved.

Pricing of Traffic Light Options and other Hybrid Products

DEFF Research Database (Denmark)

Kokholm, Thomas

2009-01-01

companies stay solvent in the traffic light stress test system introduced by the Danish Financial Supervisory Authorities in 2001. Similar systems are now being implemented in several other European countries. A pricing approach for general payoffs is presented and illustrated with simulation via...... the pricing of a hybrid derivative known as the EUR Sage Note. The approach can be used to price many existing structured products....

Optimal advertising and pricing decisions for complementary products

Science.gov (United States)

Taleizadeh, Ata Allah; Charmchi, Masoud

2015-03-01

Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon supply chain consisting of one manufacturer and one retailer with two complementary goods. The demand of each good is influenced not only by its price but also by the price of the other product. We use two game theory approaches to model this problem; Stackelberg manufacturer and Stackelberg retailer.

Exploring asymmetric behavior pattern from Indian oil products prices using NARDL and GHSOM approaches

International Nuclear Information System (INIS)

Chattopadhyay, Manojit; Kumar Mitra, Subrata

2015-01-01

The present work endeavors to explore the potential asymmetries in the pricing of oil products in India where prices are not only affected by the crude oil price changes in the international markets but are also subject to government interventions. In order to protect domestic consumers from this volatility, historically the government of India tried to control the domestic price of petroleum products by cross subsidization and giving subsidies. In this paper, we analyze the impact of crude oil price on domestic oil prices by applying nonlinear autoregressive distributed lag (NARDL) and Growing Hierarchical Self-Organizing Map (GHSOM) approaches for the period of April, 2005–July, 2014. The GHSOM has been explored through pattern analysis on the asymmetric behavior using similarity measures. From the study it can be interpreted that the prices of products left to be determined by the market exhibit a strong asymmetry. However, pricing of the products that are monitored and controlled by the government do not exhibit any such asymmetry. Hence, the question still remains – should the government intervene in pricing petroleum products when monopolistic attitudes of large oil companies are detrimental to the interest of retail consumers? - Highlights: • We explored the potential asymmetries in the pricing of oil products in India. • Analyze cointegration and asymmetric behavior of oil products by NARDL approach. • GHSOM method has been explored for pattern analysis on the asymmetric behavior. • The analysis reveals that the market determined prices exhibits a strong asymmetry. • Oil product pricing controlled by the government do not exhibit such asymmetry.

Phosphate rock costs, prices and resources interaction.

Science.gov (United States)

Mew, M C

2016-01-15

This article gives the author's views and opinions as someone who has spent his working life analyzing the international phosphate sector as an independent consultant. His career spanned two price hike events in the mid-1970's and in 2008, both of which sparked considerable popular and academic interest concerning adequacy of phosphate rock resources, the impact of rising mining costs and the ability of mankind to feed future populations. An analysis of phosphate rock production costs derived from two major industry studies performed in 1983 and 2013 shows that in nominal terms, global average cash production costs increased by 27% to $38 per tonne fob mine in the 30 year period. In real terms, the global average cost of production has fallen. Despite the lack of upward pressure from increasing costs, phosphate rock market prices have shown two major spikes in the 30 years to 2013, with periods of less volatility in between. These price spike events can be seen to be related to the escalating investment cost required by new mine capacity, and as such can be expected to be repeated in future. As such, phosphate rock price volatility is likely to have more impact on food prices than rising phosphate rock production costs. However, as mining costs rise, recycling of P will also become increasingly driven by economics rather than legislation. Copyright © 2015 Elsevier B.V. All rights reserved.

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)

78 FR 41195 - Re-pricing of Several Silver Coin Products

Science.gov (United States)

2013-07-09

... DEPARTMENT OF THE TREASURY United States Mint Re-pricing of Several Silver Coin Products AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: Because of the recent decrease in the market price of silver, the United States Mint is lowering the price of several silver coin...

Organic vs. Non-Organic Food Products: Credence and Price Competition

Directory of Open Access Journals (Sweden)

Yi Wang

2017-04-01

Full Text Available We analyze the organic and non-organic production choices of two firms by considering customers’ trust in organic food products. In the context of customers’ possible willingness to pay a premium price and their mistrust in organic food products, two firms first make choices on offering organic and non-organic food products. If offering organic products, a firm can further invest in the credence system to increase customers’ trust in their organic products. At the final stage, two firms determine prices. We provide serval insights. First, we characterize the market conditions in which only one firm, both firms or neither firm will choose to offer organic food products. We find that the higher the production costs or credence investment costs for organic food products are, the more likely firms are to choose to produce non-organic food products. Second, if it is expensive enough to invest in organic credence, offering organic food products may still be uncompetitive, even if organic production cost appears to have no disadvantage compared to non-organic food products. Third, we highlight how the prices of organic food products in equilibrium are affected by market parameters. We show that when only one firm offers organic food products, this firm tends to offer a relatively low price if organic credence investment is expensive. Fourth, we highlight how one firm’s credence investment decision in equilibrium can be affected by the product type choice of the other firm. We find that the investment in organic credence is lower when both firms offer organic food products compared with the case when only one firm offers organic food products.

Crude oil price shocks and stock returns. Evidence from Turkish stock market under global liquidity conditions

Energy Technology Data Exchange (ETDEWEB)

Berk, Istemi [Koeln Univ. (Germany). Energiewirtschaftliches Inst.; Aydogan, Berna [Izmir Univ. of Economics (Turkey). Dept. of International Trade and Finance

2012-09-15

The purpose of this study is to investigate the impacts of crude oil price variations on the Turkish stock market returns. We have employed vector autoregression (V AR) model using daily observations of Brent crude oil prices and Istanbul Stock Exchange National Index (ISE- 1 00) returns for the period between January 2, 1990 and November 1, 2011. We have also tested the relationship between oil prices and stock market returns under global liquidity conditions by incorporating a liquidity proxy variable, Chicago Board of Exchange's (CBOE) S and P 500 market volatility index (VIX), into the model. Variance decomposition test results suggest little empirical evidence that crude oil price shocks have been rationally evaluated in the Turkish stock market. Rather, it was global liquidity conditions that were found to account for the greatest amount of variation in stock market returns.

Exploratory study on the effect of discount pricing strategies for new product introduction

Science.gov (United States)

Mat Zaib, Nurul Afiqah; Bazin, Nor Erne Nazira; Mustaffa, Noorfa Haszlinna

2013-04-01

Rapid introduction of new product into the market has resulted in growing competition between retailers. Nowadays, retailers compete with one another in order to increase revenue and to maintain their position in the marketplace. This situation has forced the retailers to enhance their strategic management as well as creating competitive advantages. Generally, this situation can be observed in highly demanded product such as fashion goods and high technology electronic devices (smart phone, notebook). The consequence from the intense competition and new product introduction is difficulties in retailers pricing management. Retailers are now facing with complexity in making decisions on suitable pricing strategies and discount level for new product in association with the product life cycle. Thus, this research aims to investigate the suitable discount pricing strategies that can be integrated in every phase of product life cycle. This paper presents relationships between the discount pricing and the stages in the product life cycle in the form of conceptual diagram and mathematical expression. A system dynamic approach is used for developing the conceptual diagram and formulating the mathematical expression for the discount pricing strategies to visualize the relationship between discount pricing and product life cycle.

What Happens to Patterns of Food Consumption when Food Prices Change? Evidence from A Systematic Review and Meta-Analysis of Food Price Elasticities Globally.

Science.gov (United States)

Cornelsen, Laura; Green, Rosemary; Turner, Rachel; Dangour, Alan D; Shankar, Bhavani; Mazzocchi, Mario; Smith, Richard D

2015-12-01

Recent years have seen considerable interest in examining the impact of food prices on food consumption and subsequent health consequences. Fiscal policies targeting the relative price of unhealthy foods are frequently put forward as ways to address the obesity epidemic. Conversely, various food subsidy interventions are used in attempts to reduce levels of under-nutrition. Information on price elasticities is essential for understanding how such changes in food prices affect food consumption. It is crucial to know not only own-price elasticities but also cross-price elasticities, as food substitution patterns may have significant implications for policy recommendations. While own-price elasticities are common in analyses of the impact of food price changes on health, cross-price effects, even though generally acknowledged, are much less frequently included in analyses, especially in the public health literature. This article systematically reviews the global evidence on cross-price elasticities and provides combined estimates for seven food groups in low-income, middle-income and high-income countries alongside previously estimated own-price elasticities. Changes in food prices had the largest own-price effects in low-income countries. Cross-price effects were more varied and depending on country income level were found to be reinforcing, undermining or alleviating own-price effects. Copyright © 2014 John Wiley & Sons, Ltd.

ANALYSIS OF GROSS REGIONAL PRODUCT FLUCTUATIONS AND ELECTRIC POWER CONSUMPTION IN 2005- 2014. RESERVES FOR DECREASING ELECTRIC POWER PRICES

Directory of Open Access Journals (Sweden)

Suslov N. I.

2016-09-01

Full Text Available In this work we considered the trajectories of change in indicators characterizing the status of economics and power industry: gross regional product, electric power consumption, industrial production, energy prices and costs of delivering electric power to consumers in Russian regions for the last 10 years. Low global commodity prices and sanctions led to a sharp decrease of equipment import, which resulted in an acute problem of import substitution. The level of tariffs of natural monopolies is of great importance for industrial development. The goal of this work was to analyze possibilities for reducing electric power prices by changing the institutional and economic conditions of management. We analyzed not only the official information from Rosstat, but also government regulations, figures given in the official government publication «The Rossiyskaya Gazeta» as well as articles and interviews on economic problems of the electric power industry over the recent years published in «The Kommersant» newspaper. High tariffs of network marketing companies for electric energy transmission, state regulation of heating prices, financing the construction of new capacities by charging the payment in power provision contracts, high price of electric power of nuclear power plants lead to an annual increase in electric power prices for end users. In this work we considered possible solutions to limit the growth of electric power prices.

Essays on sovereign bond pricing and inflation-linked products

NARCIS (Netherlands)

Simon, Zorka

2016-01-01

This doctoral dissertation consists of three chapters on the pricing of sovereign debt and inflation-linked products. The first chapter examines the relative pricing of nominal and inflation-linked debt of the three largest Eurozone sovereign issuers. Its main contribution is to present evidence of

Tobacco product prices before and after a statewide tobacco tax increase.

Science.gov (United States)

Brock, Betsy; Choi, Kelvin; Boyle, Raymond G; Moilanen, Molly; Schillo, Barbara A

2016-03-01

In 2013, the State of Minnesota Legislature passed a tobacco tax increase that increased the combined cigarette excise and sales tax by US$1.75 (from US$1.60 to US$3.35) and increased the tax on non-cigarette tobacco products from 70% to 95% of the wholesale price. The current study explores the change in tobacco prices in retail locations and whether the tax increase was fully passed to consumers. An observational study of tobacco retail prices was performed in a sample of 61 convenience stores in Minnesota, North Dakota, South Dakota and Wisconsin. Six rounds of data were collected between May 2013 and January 2014. In each round, purchases were made at the same stores for the same four tobacco products (Camel Blue cigarettes, Marlboro Gold cigarettes, Grizzly Wintergreen moist smokeless tobacco and Copenhagen Wintergreen moist smokeless tobacco). For all studied tobacco products, prices in Minnesota increased significantly after the tax increase (Round 1-Round 6). After controlling for price changes in neighbouring states, the average price difference in Minnesota for the two cigarette brands increased by US$1.89 and US$1.81, which are both more than the US$1.75 tax increase. For moist smokeless, the average price difference increased by US$0.90 and US$0.94. Significant price changes were not observed in the comparison states. After the introduction of the minimum moist smokeless tax, a significantly higher proportion of Minnesota stores offered price promotions on smokeless tobacco. A large tobacco tax resulted in an average retail cigarette price exceeding the tax, suggesting the industry over-shifted the cigarette tax increase to consumers in Minnesota. The findings support the known public health benefit of tobacco tax increases while highlighting the need for additional information about how, or if, tobacco companies use price promotions to blunt the impact of tax increases. Published by the BMJ Publishing Group Limited. For permission to use (where not

Production Contracts and the Spot Market Price of Hogs

OpenAIRE

Key, Nigel D.

2010-01-01

The increasing use of production contracts in the hog sector has reduced the number of spot market transactions, raised concerns about price manipulation and helped to spur legislation requiring price reporting by packers. Using data from the 2002 and 2007 Censuses of Agriculture, this study looks for evidence of market manipulation by examining whether the local prevalence of contracting affects the average price received by independent producers. The empirical approach uses a fixed-effects ...

Oil production, oil prices, and macroeconomic adjustment under different wage assumptions

International Nuclear Information System (INIS)

Harvie, C.; Maleka, P.T.

1992-01-01

In a previous paper one of the authors developed a simple model to try to identify the possible macroeconomic adjustment processes arising in an economy experiencing a temporary period of oil production, under alternative wage adjustment assumptions, namely nominal and real wage rigidity. Certain assumptions were made regarding the characteristics of actual production, the permanent revenues generated from that oil production, and the net exports/imports of oil. The role of the price of oil, and possible changes in that price was essentially ignored. Here we attempt to incorporate the price of oil, as well as changes in that price, in conjunction with the production of oil, the objective being to identify the contribution which the price of oil, and changes in it, make to the adjustment process itself. The emphasis in this paper is not given to a mathematical derivation and analysis of the model's dynamics of adjustment or its comparative statics, but rather to the derivation of simulation results from the model, for a specific assumed case, using a numerical algorithm program, conducive to the type of theoretical framework utilized here. The results presented suggest that although the adjustment profiles of the macroeconomic variables of interest, for either wage adjustment assumption, remain fundamentally the same, the magnitude of these adjustments is increased. Hence to derive a more accurate picture of the dimensions of adjustment of these macroeconomic variables, it is essential to include the price of oil as well as changes in that price. (Author)

Food product prices and its implications for food security in Nigeria ...

African Journals Online (AJOL)

PROMOTING ACCESS TO AFRICAN RESEARCH ... The study examined the prices of food products and its implications for food security in Nigeria. Data was ... The study show that food price inflation is caused by frequent hike in the prices of ...

Can Equity Volatility Explain the Global Loan Pricing Puzzle?

OpenAIRE

Lewis Gaul; Pinar Uysal

2013-01-01

This paper examines whether unobservable differences in firm volatility are responsible for the global loan pricing puzzle, which is the observation that corporate loan interest rates appear to be lower in Europe than in the United States. We analyze whether equity volatility, an error prone measure of firm volatility, can explain this difference in loan spreads. We show that using equity volatility in OLS regressions will result in biased and inconsistent estimates of the difference in U.S. ...

Trends and prospects of international major commodity prices

Directory of Open Access Journals (Sweden)

Maria Cartas

2013-04-01

Full Text Available Trends and prospects of international major commodity prices. In 2012, the international commodity markets have seen declining prices, especially during the first half of the year, with some improvement mainly in the last quarter. On the whole, most of major commodity prices declined, following generally weaker demand and the uncertain global economic situation. The short term outlook shows broad declines of prices for all major commodity groups, including oil and excepting metal prices, which are expected to be sustained by the global economic recovery and increasing demand, mainly in China. This country represents a major player, with a great contribution to the movement of prices on most of international commodity markets, as she has a great role in the world consumption and trade of commodities, as well as in the world production of some of these goods, on the one hand, and enjoys huge financial resources, on the other.

The Pricing Evolution in the Air Transportation Industry. Implication for the Romanian Tourism Sector in the Era of Globalization

Directory of Open Access Journals (Sweden)

Andreea Marin-Pantelescu

2016-06-01

Full Text Available The globalization process involves the liberalization of the services and the air transportation industry is responsive to this reality. There is a developing tendency for global alliances and strategies in major airline companies. The globalization implies extending service networks in the whole world. Currently we are witnessing lower prices for domestic and foreign airline flights with benefits for the tourists’ business and leisure activities. The last minute offers and early booking prices provide a win-win situation, for the airline companies on one side and for the customers on the other side. The positive online reviews influence people buying decision because customers are more sensitive than ever to the services prices. Under this condition it is very interesting to see the evolution of pricing in the air transportation industry and the implication for the Romanian tourism sector.

Implicit CO_2 prices of fossil fuel use in Switzerland

International Nuclear Information System (INIS)

Schleiniger, Reto

2016-01-01

This study aims to assess the efficiency of the fossil fuel taxation scheme currently in effect in Switzerland. To this end, the concept of implicit CO_2 prices is introduced, based on which prices for different fossil fuel uses are derived. Implicit CO_2 prices are defined as the difference between actual prices paid by consumers and efficient domestic fuel prices. Efficient domestic fuel prices, in turn, consist of private production costs, a uniform value added tax and only local external costs, not including external costs due to CO_2 emissions and global climate change. The resulting prices differ substantially, which suggests that there is considerable cost-saving potential in reducing CO_2 emissions in Switzerland. For passenger cars and air traffic, the implicit prices are negative. For these uses, higher fuel charges would therefore be beneficial from a purely domestic perspective, i.e., without considering the negative repercussions of global warming. - Highlights: •Efficient fossil fuel policy must take into account local and global externalities. •Implicit CO_2 prices are applied as efficiency indicator of fossil energy policy. •Implicit CO_2 prices vary strongly for different fossil fuel uses in Switzerland. •There is a large cost-saving potential in terms of reducing CO_2 emissions.

Pricing and inventory policies for Hi-tech products under replacement warranty

Science.gov (United States)

Tsao, Yu-Chung; Teng, Wei-Guang; Chen, Ruey-Shii; Chou, Wang-Ying

2014-06-01

Companies, especially in the Hi-tech (high-technology) industry (such as computer, communication and consumer electronic products), often provide a replacement warranty period for purchased items. In reality, simultaneously determining the price and inventory decisions under warranty policy is an important issue. The objective of this paper is to develop a joint pricing and inventory model for Hi-tech products under replacement warranty policy. In the first model, we consider a Hi-tech product feature in which the selling price is declining in a trend. We determine the optimal inventory level for each period and retail price for the first period while maximising the total profit. In the second model, we further determine the optimal retail price and inventory level for each period in the dynamic demand market. This study develops solution approaches to solve the problems described above. Numerical analysis discusses the influence of system parameters on the company's decisions and behaviours. The results of this study could serve as a reference for business managers or administrators.

Speculation on commodities futures markets and destabilization of global food prices: exploring the connections.

Science.gov (United States)

Ghosh, Jayati; Heintz, James; Pollin, Robert

2012-01-01

In December 2010, the United Nations Food and Agriculture Organization's Food Price Index surpassed its previous peak of June 2008, and prices remained at this level through September 2011. This pattern is creating justified fears of a renewal or intensification of the global food crisis. This paper reviews arguments and evidence to inform debates on how to regulate commodity futures markets in the face of such price volatility and sustained high prices. We focus on the relationship between market liquidity and price patterns in asset markets in general and in commodities futures markets in particular, as well as the relationship between spot and futures market prices for food. We find strong evidence supporting the need to limit huge increases in trading volume on futures markets through regulations. We find that arguments opposing regulation are not supported. We find no support for the claim that liquidity in futures markets stabilizes prices at "fundamental" values or that spot market prices are free of any significant influence from futures markets. Given these results, the most appropriate position for regulators is precautionary: they should enact and enforce policies capable of effectively dampening excessive speculative trading on the commodities markets for food.

Effects of anchoring and adjustment in the evaluation of product pricing.

Science.gov (United States)

Elaad, Eitan; Sayag, Neta; Ezer, Aliya

2010-08-01

Anchoring and adjustment comprise a heuristic that creates expectations. Two types of anchors were applied on participants' evaluation of products: the price reference of the product (maximum, minimum, or no price reference) and the context in which the products were evaluated (the prestige of the shopping center). Results showed that both factors anchored evaluations of products' value. Context effects were explained by the different expectations of visitors in prestigious (looking for quality) and less prestigious (seeking a bargain) centers.

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 ...

Crude prices - is OPEC relevant?

International Nuclear Information System (INIS)

Verleger, P.K. Jr.

1994-01-01

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

Biofuels and their by-products: Global economic and environmental implications

International Nuclear Information System (INIS)

Taheripour, Farzad; Hertel, Thomas W.; Tyner, Wallace E.; Beckman, Jayson F.; Birur, Dileep K.

2010-01-01

Recently a number of papers have used general equilibrium models to study the economy-wide and environmental consequences of the first generation of biofuels (FGB). In this paper, we argue that nearly all of these studies have overstated the impacts of FGB on global agricultural and land markets due to the fact that they have ignored the role of biofuel by-products. Feed by-products of FGB, such as dried distillers grains with solubles (DDGS) and oilseed meals (VOBP), are used in the livestock industry as protein and energy sources. Their presence mitigates the price impacts of biofuel production. More importantly, they reduce the demand for cropland and moderate the indirect land use consequences of FGB. This paper explicitly introduces DDGS and VOBP into a global computational general equilibrium (CGE) model, developed at the Center for Global Trade Analysis at Purdue University, to examine the economic and environmental impacts of regional and international mandate policies designed to stimulate bioenergy production and use. We show that models with and without by-products reveal different portraits of the economic impacts of the US and EU biofuel mandates for the world economy in 2015. While both models demonstrate significant changes in the agricultural production pattern across the world, the model with by-products shows smaller changes in the production of cereal grains and larger changes for oilseeds products in the US and EU, and the reverse for Brazil. Models that omit by-products are found to overstate cropland conversion from US and EU mandates by about 27%. (author)

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...

Price and Service Competition between New and Remanufactured Products

Directory of Open Access Journals (Sweden)

Bin Wang

2015-01-01

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

Dynamic replenishment, production, and pricing decisions in the face of supply disruption and random price-sensitive demand

NARCIS (Netherlands)

Zhu, Stuart X.

2013-01-01

We study a joint decision problem for replenishment, production, pricing strategies in the face of both supply and demand uncertainties. The supply of the raw material suffers from a potential supply disruption while the demand for the finished goods is price-sensitive and random. We assume that the

Oil company profitability: observations on the use of oil product price assessments and associated errors

International Nuclear Information System (INIS)

Jenkins, Gilbert

2000-01-01

Oil companies often report the exact price obtained for crude oil sales. Furthermore, crude oil prices may be linked to the price of Brent crude oil which is actively and very transparently traded on the International Petroleum Exchange. Brent crude oil prices are reported worldwide electronically and in many newspapers on a daily basis. Gas oil (No. 2 Fuel oil in the USA) is actively traded on the IPE and on NYMEX and the prices are also reported worldwide almost instantaneously. One grade of unleaded gasoline is traded on NYMEX but all other oil products do not have regulated and transparent markets. The prices of these products are assessed by price reporters following daily discussions with active oil traders. Two prices are assessed and reported, the bid (low) and offer (high) even if no trade has taken place. The oil industry itself and oil products consumers make much use of these assessed prices. The object of this paper is to provide some statistical detail on the differences between various product price assessments made through 2000. From these differences, it is possible to provide an indication of the precision of oil product price assessments However, it is doubtful if precision data based on a simple determination of the standard deviation of the differences between the assessment made by the various price reporting services would be of practical use. (Author)

Raising objectives: how global PV production could reach 5 GWp by 2010

International Nuclear Information System (INIS)

Cameron, A.; Jones, J.

2006-01-01

A recent international workshop for the solar photovoltaic (PV) industry organised by the European Photovoltaic Industry Association (EPIA) examined market trends and technological developments. Under a business-as-usual (BAU) scenario, the EPIA predicts that the global PV market would only reach 3.2 GWp by 2010. But workshop participants believe that, given sufficient support measures to encourage investment, the global market could be accelerated to reach 5400 MW per year by 2010, with an achievable annual installed capacity of over 5 GWp and production of 30,000 tonnes of solar-grade silicon per year at a cost of 30-40 euros/kg. Major markets are expected to be Germany, Japan, USA, China and Spain. Examples of the type of policies and strategies necessary for accelerated growth are given and countries with potential for a significant increase in annual PV installation rates are identified. The current main constraint on market growth is the global shortage of suitable silicon, but confidence in the solar market is now sufficient for significant new manufacturing plant to be planned. Investment in other PV technologies is also required, plus a decrease in the price of PV modules. EPIA does not expect a short-term price reduction for PV until after 2007 but the workshop concluded that the PV industry could expect to see an average price reduction of around 5% per year (for cells, modules and complete systems) by 2011

Heterodox surplus approach: production, prices, and value theory

OpenAIRE

Lee, Frederic

2011-01-01

In this paper I argue that that there is a heterodox social surplus approach that has its own account of output-employment and prices, and its own value theory which draws upon various heterodox traditions. Starting with the Sraffian technical definition of the social surplus and then working with a Sraffa-Leontief input-output framework, the particular distinguishing feature of the heterodox approach is the role of agency in determining prices, the social surplus, and total social product a...

Product-line extensions and pricing strategies of brand-name drugs facing patent expiration.

Science.gov (United States)

Hong, Song Hee; Shepherd, Marvin D; Scoones, David; Wan, Thomas T H

2005-01-01

This study proposed an alternative to brand loyalty as the explanation for the continued price rigidity of patent-expired brand-name prescription drugs despite the increase in market entry of generic drugs facilitated by the 1984 Drug Price Competition and Patent Term Restoration Act. Study hypotheses were to test (1) whether market entries of new-product extensions are associated with market success of original brand-name drugs before generic drug entry, and (2) whether original brand-name drugs exhibit price rigidity to generic entry only when they are extended. The design is a retrospective follow-up study for the prescription drug brands that lost their patents between 1987 and 1992. The drug brands were limited to nonantibiotic, orally administered drugs containing only 1 active pharmaceutical ingredient. Information on patent expiration, entry of a product extension, and market success were determined from the U.S. Food and Drug Administration.s Orange Book, First DataBank, and American Druggist, respectively. Market success was defined as whether an original drug brand was listed in the top 100 prescriptions most frequently dispensed before facing generic entry. Product-line extension was defined as the appearance of another product that a company introduces within the same market after its existing product. Drug prices were average wholesale prices from the Drug Topics Red Book. The relationship between product-line extension and market success was examined using a logistic regression analysis. The price rigidity to entry was tested using a panel regression analysis. A total of 27 drug brands lost their patents between 1987 and 1992. Drug brands that achieved market success were 16 times more likely to be extended than were those that did not (OR=16, 95% confidence interval, 2.12-120.65). The price rigidity to entry existed in drug brands with extensions (beta=2.65%, P new product-line extension introduced for an original brand helps the original price be

The uncertainty of marketing research in the formation of prices of production

Directory of Open Access Journals (Sweden)

S. A. Bagretsov

2017-01-01

Full Text Available The general conditions of formation of prices of products is obligatory accounting of all types of expenses. In the conditions of market relations, for each enterprise, the system of objective accounting of costs and management of costs necessary for production of products (services becomes especially important. The system of management accounting, on the one hand, allows for the accounting of production costs, and on the other – to analyze costs and assess their impact on the final result of the enterprise and the adoption of appropriate management decisions. Unlike the full cost costing system, the cost accounting system known in economic theory is based on separate accounting of fixed and variable costs, which allows to take into account the impact of fixed costs on pricing and profits from the sale of final output. On the basis of application of the device of fuzzy sets the technique of determination of rational, from the point of view of the producer, the price of production (services in the conditions of the available uncertainty of market researches and competitive advantages of the enterprise in the market of identical production is developed. In General, instrumental support of such approach to the determination of the product price is considered as a specialized information system to support the decision-making on the product price based on the results of market research. The market determined by this yield vector can be considered acceptable for the enterprise with a value of 0.55. At the same time, it may be accepted as unacceptable, but the level of clarity of assessment will be lower, namely 0.45. As you can see, the classification was quite blurred, which is a reflection of the fuzzy initial estimates of the proposed sales volumes for a certain price corridor.

Is Power Production Flexibility a Substitute for Storability? Evidence from Electricity Futures Prices

Energy Technology Data Exchange (ETDEWEB)

Kilic, M.; Huisman, R. [Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam (Netherlands)

2010-07-15

Electricity is not storable. As a consequence, electricity demand and supply need to be in balance at any moment in time as a shortage in production volume cannot be compensated with supply from inventories. However, if the installed power supply capacity is very flexible, variation in demand can be counterbalanced with flexible adjustment of production volumes. Therefore, supply flexibility can replace the role of inventory. In this paper, we question whether power production flexibility is a substitute for storability. To do so, we examine power futures prices from countries that differ in their power supply and test whether power futures prices contain information about expected future spot prices and risk premiums and examine whether futures prices from a market in which power supply is more flexible would lead to futures prices that are more in line with the theory of storage. We find the opposite; futures prices from markets with flexible power supply behave according to the expectations theory. The implicit view from futures prices is that flexibility is not a substitute for storability.

Is Power Production Flexibility a Substitute for Storability? Evidence from Electricity Futures Prices

International Nuclear Information System (INIS)

Kilic, M.; Huisman, R.

2010-07-01

Electricity is not storable. As a consequence, electricity demand and supply need to be in balance at any moment in time as a shortage in production volume cannot be compensated with supply from inventories. However, if the installed power supply capacity is very flexible, variation in demand can be counterbalanced with flexible adjustment of production volumes. Therefore, supply flexibility can replace the role of inventory. In this paper, we question whether power production flexibility is a substitute for storability. To do so, we examine power futures prices from countries that differ in their power supply and test whether power futures prices contain information about expected future spot prices and risk premiums and examine whether futures prices from a market in which power supply is more flexible would lead to futures prices that are more in line with the theory of storage. We find the opposite; futures prices from markets with flexible power supply behave according to the expectations theory. The implicit view from futures prices is that flexibility is not a substitute for storability.

PRICING, REIMBURSEMENT, AND HEALTH TECHNOLOGY ASSESSMENT OF MEDICINAL PRODUCTS IN BULGARIA.

Science.gov (United States)

Benisheva-Dimitrova, Tatyana; Sidjimova, Dobriana; Cherneva, Daniela; Kralimarkov, Nikolay

2017-01-01

The aim of this study was to investigate the analysis, discussion, and challenges of the price and reimbursement process of medicinal products in Bulgaria in the period 2000-15 and health technology assessment (HTA) role in these processes. The dynamics of the reform, with respect to the healthcare and pharmaceutical sectors, are tracked by documentary review of regulations, articles, and reports in the European Union (EU), as well as analytical and historical analysis. Pricing and reimbursement processes have passed through a variety of committees between 2003 and 2012. Separate units for pricing and reimbursement of medicinal products were established in Bulgaria for the first time, in 2013, when an independent body, the National Council at Prices and Reimbursement of Medicinal Products, was set up to approve medicinal products with new international nonproprietary names (INN) for reimbursement in Bulgaria. Over the course of 2 years (2013-14), thirty-three new INNs were approved for reimbursement. In December 2015, a new HTA body was introduced, and assigned to the National Centre for Public Health and Analyses. Although Bulgaria has current legislation on pricing and reimbursement which is in accordance with the EU rules, there is no mechanism for reporting and monitoring these processes or the financial resources annually, so as to provide an overall objective assessment and analysis by year. Therefore, this financial assessment should become a national policy objective for the future.

75 FR 13345 - Pricing for Certain United States Mint Products

Science.gov (United States)

2010-03-19

... DEPARTMENT OF THE TREASURY United States Mint Pricing for Certain United States Mint Products AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing the price of First Spouse Bronze Medals and 2010 First Spouse Bronze Medal Series: Four...

How does increased corn-ethanol production affect US natural gas prices?

International Nuclear Information System (INIS)

Whistance, Jarrett; Thompson, Wyatt

2010-01-01

In recent years, there has been a push to increase biofuel production in the United States. The biofuel of choice, so far, has been ethanol produced from corn. The effects of increased corn-ethanol production on the consumer prices of food and energy continue to be studied and debated. This study examines, in particular, the effects of increased corn-ethanol production on US natural gas prices. A structural model of the natural gas market is developed and estimated using two stage least squares. A baseline projection for the period 2007-2018 is determined, and two scenarios are simulated. In the first scenario, current biofuel policies including EISA mandates, tariffs, and tax credits are removed. In the second scenario, we hold ethanol production to the level required only for largely obligatory additive use. The results indicate that the increased level of corn-ethanol production occurring as a result of the current US biofuel policies may lead to natural gas prices that are as much as 0.25% higher, on average, than if no biofuel policies were in place. A similar comparison between the baseline and second scenario indicates natural gas prices could be as much as 0.5% higher, on average, for the same period.

Price elasticity estimates for tobacco products in India.

Science.gov (United States)

John, Rijo M

2008-05-01

The tax base of tobacco in India is heavily dependent on about 14% of tobacco users, who smoke cigarettes. Non-cigarette tobacco products accounting for 85% of the tobacco consumption contributes only 15% of the total tobacco taxes. Though taxation is an important tool to regulate consumption of tobacco, there have been no estimates of price elasticities for different tobacco products in India to date, which can guide tax policy on tobacco. This paper, for the first time in India, examines the price elasticity of demand for bidis, cigarettes and leaf tobacco at the national level using a representative cross-section of households. This study found that own-price elasticity estimates of different tobacco products in India ranged between -0.4 to -0.9, with bidis (an indigenous hand-rolled smoked tobacco preparation in India) and leaf tobacco having elasticities close to unity. Cigarettes were the least price elastic of all. With some assumptions, it is shown that the tax on bidis can be increased to Rs. 100 per 1000 sticks compared with the current Rs. 14 and the tax on an average cigarette can be increased to Rs. 3.5 per stick without any fear of losing revenue. The paper argues that the current system of taxing cigarettes in India based on the presence of filters and the length of cigarettes has no justification on health grounds, and should be abolished, if reducing tobacco consumption and the consequent disease burden is one of the objectives of tobacco taxation policy. It also argues that attempts to regulate tobacco use without effecting significant tax increases on bidis may not produce desired results.

Policy Brief: Petroleum product pricing reforms in India. Are we on the right track?

Energy Technology Data Exchange (ETDEWEB)

Agarwal, Pravin Kumar; Soni, Anmol

2013-03-15

The path to petroleum product pricing reforms in India has been full of undulations. Even though Administered Pricing Mechanism (APM) was dismantled during 1 April 1998 to 31 March 2002, the government continued to regulate the prices of petrol, diesel, Public distribution System (PDS) kerosene, and domestic LPG, except for over a year, when oil marketing companies (OMCs) revised the consumer prices of petrol and diesel in line with the international prices. In June 2010, petrol pricing was deregulated, but government control continued to an extent. This control of petroleum product prices has not only severely affected the fiscal balance of the economy, but has also adversely impacted the oil companies (both upstream and downstream), eventually affecting the overall development of the sector. In fact, the impact of petroleum product subsidies has compelled the government to announce certain reforms in the past few months.

The Influence of Organic Product Classification On Charitable Contributions Embedded in Retail Prices

Directory of Open Access Journals (Sweden)

Levens Michael

2017-06-01

Full Text Available Research on embedding direct charitable contributions into purchase transactions through increasing product price has revealed mutual benefits for charitable organisations and for-profit companies. This process is referred to as the embedded premium (EP. The potential for this type of mutually beneficial cause marketing has been shown to apply to a wide range of products. The fastest growing product classification in the United States, organic products generally cost more than their non-organic alternatives. The basis of this research is to examine if organic products enhance the utility of EP offerings. Eight different organic and non-organic food products are presented in a 64-block, single choice set design to a national sample of consumers with choice options between current market price and current market price plus 5% price premium with entire premium going directly to charity. The results of the research indicate that organic products with EP were, on an average, chosen almost five percentage points less frequently than similar EP choices involving non-organic products.

Law proposition aiming to establish the double display of sale prices of petroleum products

International Nuclear Information System (INIS)

Vannson, F.

2006-03-01

Petroleum products are submitted to the internal tax (called TIPP in France) and the sales tax (called TVA in France). The TVA product is increasing proportionally to the petroleum products prices. On the other hand the TIPP product, which is five time as much high as the TVA, is proportional to the consumed volumes and decreases proportionally with the consumption decrease, resulting from the prices increase. In a framework of transparency for the consumers, and to reveal the importance of the taxes in the hydrocarbons prices, it should be desirable to display the sale prices without and with the taxes. Here are the objectives of this law proposition. (A.L.B.)

Legal and policy foundations for global generic competition: Promoting affordable drug pricing in developing societies.

Science.gov (United States)

Zapatero Miguel, Pablo

2015-01-01

The so-called 'TRIPS flexibilities' restated in 2001 by the World Trade Organization's Doha Declaration on TRIPS and Public Health offer a variety of policy avenues for promoting global price-based competition for essential medicines, and thus for improving access to affordable medicines in the developing world. In recent years, developing countries and international organisations alike have begun to explore the potentialities of global generic markets and competition generally, and also of using compulsory licensing to remedy anti-competitive practices (e.g. excessive pricing) through TRIPS-compatible antitrust enforcement. These and other 'pro-competitive' TRIPS flexibilities currently available provide the critical leverage and policy space necessary to improve access to affordable medicines in the developing world.

Joint Ordering and Pricing Decisions for New Repeat-Purchase Products

OpenAIRE

Wu, Xiang; Zhang, Jinlong

2015-01-01

This paper studies ordering and pricing problems for new repeat-purchase products. We incorporate the repeat-purchase rate and price effects into the Bass model to characterize the demand pattern. We consider two decision models: (1) two-stage decision model, in which the sales division chooses a price to maximize the gross profit and the purchasing division determines an optimal ordering decision to minimize the total cost under a given demand subsequently, and (2) joint decision model, in w...

High oil prices are here to stay

International Nuclear Information System (INIS)

Toennesen, Bjoern Inge

2004-01-01

The presentation discusses the development in the OPEC countries with emphasis on oil price fluctuation, spare production capacity and OPEC control. The capacity expansion in non-OPEC countries and the global demand development are also surveyed. (tk)

Do ultra-orphan medicinal products warrant ultra-high prices? A review

Directory of Open Access Journals (Sweden)

Picavet E

2013-06-01

Full Text Available Eline Picavet,1 David Cassiman,2 Steven Simoens1 1Department of Pharmaceutical and Pharmacological Sciences, KU Leuven, Leuven, Belgium; 2Department of Hepatology, University Hospital Leuven, Leuven, Belgium Abstract: Ultra-orphan medicinal products (ultra-OMPs are intended for the treatment, prevention, or diagnosis of ultra-rare diseases, ie, life-threatening or chronically debilitating diseases that affect less than one per 50,000 individuals. Recently, high prices for ultra-OMPs have given rise to debate on the sustainability and justification of these prices. The aim of this article is to review the international scientific literature on the pricing of ultra-OMPs and to provide an overview of the current knowledge on the drivers of ultra-OMP pricing. The pricing process of ultra-OMPs is a complex and nontransparent issue. Evidence in the literature seems to indicate that ultra-OMPs are priced according to rarity and what the manufacturer believes the market will bear. Additionally, there appears to be a trend between the price of an ultra-OMP and the number of available alternatives. Patients, third-party payers, and pharmaceutical companies could benefit from more transparent pricing strategies. With a view to containing health care costs, it is likely that cost-sharing strategies, such as performance-based risk sharing arrangements, will become increasingly more important. However, it is vital that any measures for price control are consistent with the intended goals of the incentives to promote the development of new OMPs. Ideally, a balance must be struck between attaining affordable prices for ultra-OMPs and securing a realistic return on investment for the pharmaceutical industry. Keywords: ultra-orphan medicinal product, ultra-rare disease, pricing

OPEC's production under fluctuating oil prices. Further test of the target revenue theory

International Nuclear Information System (INIS)

Ramcharran, H.

2001-01-01

Oil production cutbacks in recent years by OPEC members to stabilize price and to increase revenues warrant further empirical verification of the target revenue theory (TRT). We estimate a modified version of Griffin (1985) target revenue model using data from 1973 to 2000. The sample period, unlike previous investigations, includes phases of both price increase (1970s) and price decrease (1980s-1990s), thus providing a better framework for examining production behavior. The results, like the earlier study, are not supportive of the strict version of the TRT, however, evidence (negative and significant elasticity of supply) of the partial version are substantiated. Further empirical estimates do not support the competitive pricing model, hypothesizing a positive elasticity of supply. OPEC's loss of market share and the drop in the share of oil-based energy should signal an adjustment in pricing and production strategies

Optimal Pricing and Advertising Policies for New Product Oligopoly Models

OpenAIRE

Gerald L. Thompson; Jinn-Tsair Teng

1984-01-01

In this paper our previous work on monopoly and oligopoly new product models is extended by the addition of pricing as well as advertising control variables. These models contain Bass's demand growth model, and the Vidale-Wolfe and Ozga advertising models, as well as the production learning curve model and an exponential demand function. The problem of characterizing an optimal pricing and advertising policy over time is an important question in the field of marketing as well as in the areas ...

Endogeneous price leadership in a duopoly: equal products, unequal technology

NARCIS (Netherlands)

Dastidar, K.G.; Furth, D.

2005-01-01

In the present paper we study endogenous price leadership in the context of a homogeneous product Bertrand duopoly model in which the firms have different, strictly convex cost functions. In such a framework it is well known that a simultaneous move price choice game does not have an equilibrium in

Food versus fuel: What do prices tell us?

International Nuclear Information System (INIS)

Zhang Zibin; Lohr, Luanne; Escalante, Cesar; Wetzstein, Michael

2010-01-01

Sorting out the impacts of biofuels on global agricultural commodity prices is impossible without turning to data and distinguishing between the short-run versus the long-run impacts. Using time-series prices on fuels and agricultural commodities, the aim is to investigate the long-run cointegration of these prices simultaneously with their multivariate short-run interactions. Results indicate no direct long-run price relations between fuel and agricultural commodity prices, and limited if any direct short-run relationships. In terms of short-run price movements, sugar prices are influencing all the other agricultural commodity prices except rice. With sugar the number one world input for ethanol, results indicate increased ethanol production is potentially influencing short-run agricultural commodity prices. Overall, results support the effect of agricultural commodity prices as market signals which restore commodity markets to their equilibria after a demand or supply event (shock).

Local Staple Food Price Indices in the Age of Biofuels

Science.gov (United States)

Brown, Molly E.

2012-01-01

In many poor, food insecure regions, agriculture is a primary source of income and farmers are reliant both on their own production and on purchasing food in the market to feed their families. Large local food price increases over a short time period can be indicative of a deteriorating food security situation and may be the consequence of weather-related food production declines, Dr can simply be the result of price transmission from the international commodity market. Food price indices developed by the United Nations Food and Agriculture Organization (FAO) are used to monitor food price trends at a global level, but largely reflect supply and demand conditions in export markets far from the places where the chronically food insecure live. A much better understanding of how local staple food prices in isolated regions such as West Africa that grow most of the food they eat to better understand the impact of global commodity market transformations on sensitive communities at the margin. This information will also enable improved strategies for these farmers who are extraordinarily sensitive to climate change impacts on agricultural growing conditions.

Globalization and Productivity

DEFF Research Database (Denmark)

Hayakawa, Kazunobu; Machikita, Tomohiro

2012-01-01

Recent empirical studies which utilize plant- or establishment-level data to examine globalization's impact on productivity have discovered many causal mechanisms involved in globalization's impact on firms’ productivity. Because these pathways have been broad, there have been few attempts...

EFFECTS OF OIL AND NATURAL GAS PRICES ON INDUSTRIAL PRODUCTION IN THE EUROZONE MEMBER COUNTRIES

Directory of Open Access Journals (Sweden)

Yılmaz BAYAR

2014-04-01

Full Text Available Industrial production is one of the leading indicators of gross domestic product which reflects the overall economic performance of a country. In other words decreases or increases in industrial production point out a contracting or expanding economy. Therefore, changes in prices of oil and natural gas which are the crucial inputs to the industrial production are also important for the overall economy. This study examines the effects of changes in oil and natural gas prices on the industrial production in the 18 Eurozone member countries during the period January 2001-September 2013 by using panel regression. We found that oil prices and natural gas prices had negative effect on industrial production in the Eurozone member countries.

Decomposing productivity growth allowing efficiency gains and price-induced technical progress

NARCIS (Netherlands)

Oude Lansink, A.G.J.M.; Silva, E.; Stefanou, S.

2000-01-01

Time- and firm-specific output technical efficiency measures are generated within a price-induced technological change framework. The firm-specific production frontier incorporates past prices as an argument encouraging innovation and a time trend to account for exogenous technical change. The

The impact of energy prices on industrial energy efficiency and productivity

International Nuclear Information System (INIS)

Boyd, G.A.

1993-01-01

Energy prices moved into the forefront of concern in the mid and late seventies when two oil price shocks drove up energy prices dramatically. The analysis of the subsequent increase in industrial energy efficiency, i.e., decline in energy use per unit of industrial output, has filled volumes of government and private studies. Despite the volumes of analysis, there remains no consensus on the magnitude of the effect of energy prices on industrial energy efficiency or the effect of the change in energy prices on productivity. This paper examines some sources of the controversy to initiate a dialog between policy makers, analysts, and the energy consumers and producers

Pricing model for biodiesel feedstock. A case study of Chhattisgarh in India

International Nuclear Information System (INIS)

Pohit, Sanjib; Biswas, Pradip Kumar; Kumar, Rajesh; Goswami, Anandajit

2010-01-01

Following the global trend, India declared its biofuel policy in which biodiesel, primarily from jatropha, would meet 20% of the diesel demand beginning with 2011-2012. To promote biofuel, Indian government has announced biodiesel purchase price as well as compulsory blending ratio. But, these measures have not worked to create large scale biodiesel production in India. With this backdrop, this paper highlights about the importance of a sound pricing policy focusing on the entire value chain of biodiesel production. The analysis is based on field level data from Chhattisgarh, the leading state in the production of jatropha. Such a sound pricing policy has to deal with the prices of feedstock, by-products and final product like biodiesel. It would also have to reflect on the business model of production of biodiesel. The simulation exercises in our model shows that the business returns from the production of biodiesel and the minimum support price (MSP) of the feedstock for biodiesel (i.e. jatropha seeds in this case) are sensitive to various parameters like seed yields, technological efficiency, by product and petro-diesel prices. An effective price policy framework has to consider all these factors to create a platform for sustainable biodiesel production in India. (author)

MANUFACTURING PRICES, PRODUCTIVITY, AND LABOR COSTS IN 5 ECONOMIES

NARCIS (Netherlands)

VANARK, B

The United States continues to surge ahead of other major industrial economies in terms of lower prices, higher levels of labor productivity, and better unit labor cost performance; while the depreciation of the dollar plays an important role, real productivity gains are important as well.

Macroeconomic factors and oil futures prices. A data-rich model

International Nuclear Information System (INIS)

Zagaglia, Paolo

2010-01-01

I study the dynamics of oil futures prices in the NYMEX using a large panel dataset that includes global macroeconomic indicators, financial market indices, quantities and prices of energy products. I extract common factors from the panel data series and estimate a Factor-Augmented Vector Autoregression for the maturity structure of oil futures prices. I find that latent factors generate information that, once combined with that of the yields, improves the forecasting performance for oil prices. Furthermore, I show that a factor correlated to purely financial developments contributes to the model performance, in addition to factors related to energy quantities and prices. (author)

Impact of variable renewable production on electricity prices in Germany: a Markov switching model

International Nuclear Information System (INIS)

Martin de Lagarde, Cyril; Lantz, Frederic

2016-01-01

This paper aims at assessing the impact of renewable energy sources (RES) production on electricity spot prices. To do so, we use a two-regime Markov Switching (MS) model, that enables to disentangle the so-called 'merit-order effect' due to wind and solar photovoltaic productions (used in relative share of the electricity demand), depending on the price being high or low. We find that there are effectively two distinct price regimes that are put to light thanks to an inverse hyperbolic sine transformation that allows to treat negative prices. We also show that these two regimes coincide quite well with two regimes for the electricity demand (load). Indeed, when demand is low, prices are low and the merit-order effect is lower than when prices are high, which is consistent with the fact that the inverse supply curve is convex (i.e. has increasing slope). To illustrate this, we computed the mean marginal effects of RES production and load. On average, an increase of 1 GW of wind will decrease the price in regime 1 (resp. 2) by 0.77 euro /MWh (resp. 1 euro /MWh). The influence of solar is slightly weaker, as an extra gigawatt lowers the price of 0.73 euro /MWh in period 1, and 0.96 euro /MWh in regime 2. On the contrary, if the demand increases by 1 GW in regime 1 (resp. 2), the price increases on average by 0.93 euro /MWh (resp. 1.18 euro /MWh). Although we made sure these marginal effects are significantly different from one another, they are much more variable than the estimated coefficients of the model. Also, note that these marginal effects are only valid inside each regime when there is no switching. The latter regime partly corresponds to the high load regime, at the exception of periods during which RES production is high. The impact on volatility could also be observed: the variance of the (transformed) price is higher during the high-price regime than in the low-price one. In addition to the switching of the coefficients, we allowed the probabilities of

Understanding gasoline pricing in Canada

International Nuclear Information System (INIS)

Anon.

2001-01-01

Pricing policies for gasoline by Canadian oil companies are discussed. An attempt is made to demonstrate that competition between oil companies is extremely keen, and markups are so small that to stay in business, retail outlets have to sell huge volumes and sell non-fuel products, as a means to increase revenues and margins. An explanation is provided for why gasoline prices move in unison, and why what appears to the public as collusion and gouging is, in fact, the result of retail dealers attempting to stay in business. The high prices are attributed mainly to taxes by municipalities, the provinces and the federal government; taxes are said to account for 40 to 50 per cent of the pump price. The cost of crude makes up another 35 to 45 per cent, refining adds 10 to 15 per cent, with the remaining 5 to 10 per cent representing retail costs. (Taxes in the United States average 20 to 30 per cent). Over the longer term, gasoline prices consistently reflect the cost of crude oil, dominated by the OPEC countries which supply about 41 per cent of daily world production. Another factor is the rise of global and regional commodity markets for refined products such as gasoline. Commodity traders buy wholesale gasoline cheaply whenever it is in oversupply, and sell it for a profit into markets where the demand is greater. While this is claimed to ensure competitive prices in all markets, the practice can also trigger abrupt changes in regional markets

Fish is food--the FAO's fish price index.

Science.gov (United States)

Tveterås, Sigbjørn; Asche, Frank; Bellemare, Marc F; Smith, Martin D; Guttormsen, Atle G; Lem, Audun; Lien, Kristin; Vannuccini, Stefania

2012-01-01

World food prices hit an all-time high in February 2011 and are still almost two and a half times those of 2000. Although three billion people worldwide use seafood as a key source of animal protein, the Food and Agriculture Organization (FAO) of the United Nations-which compiles prices for other major food categories-has not tracked seafood prices. We fill this gap by developing an index of global seafood prices that can help to understand food crises and may assist in averting them. The fish price index (FPI) relies on trade statistics because seafood is heavily traded internationally, exposing non-traded seafood to price competition from imports and exports. Easily updated trade data can thus proxy for domestic seafood prices that are difficult to observe in many regions and costly to update with global coverage. Calculations of the extent of price competition in different countries support the plausibility of reliance on trade data. Overall, the FPI shows less volatility and fewer price spikes than other food price indices including oils, cereals, and dairy. The FPI generally reflects seafood scarcity, but it can also be separated into indices by production technology, fish species, or region. Splitting FPI into capture fisheries and aquaculture suggests increased scarcity of capture fishery resources in recent years, but also growth in aquaculture that is keeping pace with demand. Regionally, seafood price volatility varies, and some prices are negatively correlated. These patterns hint that regional supply shocks are consequential for seafood prices in spite of the high degree of seafood tradability.

Fish is food--the FAO's fish price index.

Directory of Open Access Journals (Sweden)

Sigbjørn Tveterås

Full Text Available World food prices hit an all-time high in February 2011 and are still almost two and a half times those of 2000. Although three billion people worldwide use seafood as a key source of animal protein, the Food and Agriculture Organization (FAO of the United Nations-which compiles prices for other major food categories-has not tracked seafood prices. We fill this gap by developing an index of global seafood prices that can help to understand food crises and may assist in averting them. The fish price index (FPI relies on trade statistics because seafood is heavily traded internationally, exposing non-traded seafood to price competition from imports and exports. Easily updated trade data can thus proxy for domestic seafood prices that are difficult to observe in many regions and costly to update with global coverage. Calculations of the extent of price competition in different countries support the plausibility of reliance on trade data. Overall, the FPI shows less volatility and fewer price spikes than other food price indices including oils, cereals, and dairy. The FPI generally reflects seafood scarcity, but it can also be separated into indices by production technology, fish species, or region. Splitting FPI into capture fisheries and aquaculture suggests increased scarcity of capture fishery resources in recent years, but also growth in aquaculture that is keeping pace with demand. Regionally, seafood price volatility varies, and some prices are negatively correlated. These patterns hint that regional supply shocks are consequential for seafood prices in spite of the high degree of seafood tradability.

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

International Nuclear Information System (INIS)

Ji, Qiang; Geng, Jiang-Bo; Fan, Ying

2014-01-01

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

Price transmission in the trans-atlantic northern shrimp value chain

DEFF Research Database (Denmark)

Nielsen, Max; Ankamah-Yeboah, Isaac; Staahl, Lisa

2018-01-01

affect northern shrimp fisheries. In this paper, price transmission in the trans-Atlantic northern shrimp value chain is analysed using a Vector Auto Regressive model in Error Correction form. Cointegration, the Law of One Price (LOP) and weak exogeneity are tested. The results reveal linkages from......Recent research has found that markets for farmed shrimp and wild-caught northern shrimp in Europe are integrated, indicating that northern shrimp prices are affected by total supply and demand of shrimp. Thus, the continued growth of global aquaculture production and associated price decline...

76 FR 67793 - Notification of Expanded Pricing Grid for Precious Metals Products Containing Platinum and Gold...

Science.gov (United States)

2011-11-02

... in the Federal Register on January 6, 2009, outlining the new pricing methodology for numismatic... the gold numismatic products. Pricing of Numismatic Products Containing Gold Coins American American....00 \\1/4\\ oz 828.00 \\1/10\\ oz 345.50 4 coins 5,990.50 Pricing of Numismatic Products Containing...

How German Online Retailers Price Foods: An Empirical Analysis for Chocolate Products

Directory of Open Access Journals (Sweden)

Svetlana Fedoseeva

2017-01-01

Full Text Available Despite the increasing importance of online grocery retailing, little is known about price dispersion across online providers, the relation between online and offline prices as well as the frequency of price adjustments. We employ means of descriptive and inductive statistics as well as panel econometrics to address these issues for German online food retailers. Daily online prices for twelve chocolate products charged by eight pure online and multichannel retailers and collected over three months are investigated. Information economics suggests that a maturing online market will call forth more price homogeneity online due to lower search costs by consumers as well as more flexible prices due to lower costs of price adjustments by retailers. Our results suggest, however, that neither homogenous prices nor frequent price adjustments do occur on the German online chocolate market.

Alcohol tax pass-through across the product and price range: do retailers treat cheap alcohol differently?

Science.gov (United States)

Ally, Abdallah K; Meng, Yang; Chakraborty, Ratula; Dobson, Paul W; Seaton, Jonathan S; Holmes, John; Angus, Colin; Guo, Yelan; Hill-McManus, Daniel; Brennan, Alan; Meier, Petra S

2014-12-01

Effective use of alcohol duty to reduce consumption and harm depends partly on retailers passing duty increases on to consumers via price increases, also known as 'pass-through'. The aim of this analysis is to provide evidence of UK excise duty and sales tax (VAT) pass-through rates for alcohol products at different price points. March 2008 to August 2011, United Kingdom. Panel data quantile regression estimating the effects of three duty changes, two VAT changes and one combined duty and VAT change on UK alcohol prices, using product-level supermarket price data for 254 alcohol products available weekly. Products were analysed in four categories: beers, ciders/ready to drink (RTDs), spirits and wines. Within all four categories there exists considerable heterogeneity in the level of duty pass-through for cheaper versus expensive products. Price increases for the cheapest 15% of products fall below duty rises (undershifting), while products sold above the median price are overshifted (price increases are higher than duty increases). The level of undershifting is greatest for beer [0.85 (0.79, 0.92)] and spirits [0.86 (0.83, 0.89)]. Undershifting affects approximately 67% of total beer sales and 38% of total spirits sales. Alcohol retailers in the United Kingdom appear to respond to increases in alcohol tax by undershifting their cheaper products (raising prices below the level of the tax increase) and overshifting their more expensive products (raising prices beyond the level of the tax increase). This is likely to impact negatively on tax policy effectiveness, because high-risk groups favour cheaper alcohol and undershifting is likely to produce smaller consumption reductions. © 2014 Society for the Study of Addiction.

75 FR 13345 - Pricing for Certain 2010 United States Mint Products

Science.gov (United States)

2010-03-19

... DEPARTMENT OF THE TREASURY United States Mint Pricing for Certain 2010 United States Mint Products AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing the price of the 2010 United States Mint Presidential $1 Coin and First Spouse Medal...

The impact of global oil price shocks on China’s bulk commodity markets and fundamental industries

International Nuclear Information System (INIS)

Zhang, Chuanguo; Chen, Xiaoqing

2014-01-01

This paper investigated the reaction of aggregate commodity market to oil price shocks and also explored the effects of oil price shocks on China's fundamental industries: metals, petrochemicals, grains and oilfats. We separated the volatilities of oil price into expected, unexpected and negatively expected categories to identify how oil prices influence bulk commodity markets. We contrasted the results between different periods and among classified indices, in order to discover the significant changes in recent years and the differences at an industry level. Our results indicate that the aggregate commodity market was affected by both expected and unexpected oil price volatilities in China. The impact of unexpected oil price volatilities became more complex after 2007. The metals and grains indices did not significantly respond to the expected volatility in oil prices, in contrast to the petrochemicals and oilfats indices. These results not only contribute to advancing the existing literature, but also merit particular attention from policy makers and market investors in China. - Highlights: • We investigated the impact of global oil price shocks on China’s bulk commodity markets and fundamental industries. • The aggregate commodity market was affected by both expected and unexpected oil price volatilities. • The impact of unexpected oil price volatilities became more complex after 2007. • The metals and grains indices did not significantly respond to the expected volatility in oil prices

Joint Ordering and Pricing Decisions for New Repeat-Purchase Products

Directory of Open Access Journals (Sweden)

Xiang Wu

2015-01-01

Full Text Available This paper studies ordering and pricing problems for new repeat-purchase products. We incorporate the repeat-purchase rate and price effects into the Bass model to characterize the demand pattern. We consider two decision models: (1 two-stage decision model, in which the sales division chooses a price to maximize the gross profit and the purchasing division determines an optimal ordering decision to minimize the total cost under a given demand subsequently, and (2 joint decision model, in which the firm makes ordering and pricing decisions simultaneously to maximize the profit. We combine the generalized Bass model with dynamic lot sizing model to formulate the joint decision model. We apply both models to a specific imported food provided by an online fresh produce retailer in Central China, solve them by Gaussian Random-Walk and Wagner-Whitin based algorithms, and observe three results. First, joint pricing and ordering decisions bring more significant profits than making pricing and ordering decisions sequentially. Second, a great initiative in adoption significantly increases price premium and profit. Finally, the optimal price shows a U-shape (i.e., decreases first and increases later relationship and the profit increases gradually with the repeat-purchase rate when it is still not very high.

Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China

Directory of Open Access Journals (Sweden)

Chuxiong Deng

2018-04-01

Full Text Available The efficiency and effects analysis of a new pricing mechanism would have significant policy implications for the further design of a pricing mechanism in an emerging market. Unlike most of the existing literature, which focuses on the impacts to the macro-economy, this paper firstly uses an econometrics model to discuss the efficiency of the new pricing mechanism, and then establishes an augmented Phillips curve to estimate the impact of pricing reform on inflation in China. The results show that: (1 the new pricing mechanism would strengthen the linkage between Chinese oil prices and international oil prices; (2 oil price adjustments are still inadequate in China. (3 The lag in inflation is the most important factor that affects inflation, while the impact of the Chinese government’s price adjustments on inflation is limited and insignificant. In order to improve the efficiency of the petroleum products pricing mechanism and shorten lags, government should shorten the adjustment period and diminish the fluctuation threshold.

Price elasticity of demand of non-cigarette tobacco products: a systematic review and meta-analysis.

Science.gov (United States)

Jawad, Mohammed; Lee, John Tayu; Glantz, Stanton; Millett, Christopher

2018-01-23

To systematically review the price elasticity of demand of non-cigarette tobacco products. Medline, Embase, EconLit and the Web of Science without language or time restrictions. Two reviewers screened title and abstracts, then full texts, independently and in duplicate. We based eligibility criteria on study design (interventional or observational), population (individuals or communities without geographic restrictions), intervention (price change) and outcome (change in demand). We abstracted data on study features, outcome measures, statistical approach, and single best own- and cross-price elasticity estimates with respect to cigarettes. We conducted a random effects meta-analysis for estimates of similar product, outcome and country income level. For other studies we reported median elasticities by product and country income level. We analysed 36 studies from 15 countries yielding 125 elasticity estimates. A 10% price increase would reduce demand by: 8.3% for cigars (95% CI 2.9 to 13.8), 6.4% for roll your owns (95% CI 4.3 to 8.4), 5.7% for bidis (95% CI 4.3 to 7.1) and 2.1% for smokeless tobacco (95% CI -0.6 to 4.8). Median price elasticities for all ten products were also negative. Results from few studies that examined cross-price elasticity suggested a positive substitution effect between cigarette and non-cigarette tobacco products. There is sufficient evidence in support of the effectiveness of price increases to reduce consumption of non-cigarette tobacco products as it is for cigarettes. Positive substitutability between cigarette and non-cigarette tobacco products suggest that tax and price increases need to be simultaneous and comparable across all tobacco products. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

Production, prices, employment, and trade in Northwest forest industries, all quarters 2012

Science.gov (United States)

Xiaoping Zhou

2013-01-01

Provides current information on lumber and plywood production and prices; employment in the forest industries; international trade in logs, lumber, and plywood; volume and average prices of stumpage sold by public agencies; and other related items.

Production, prices, employment, and trade in Northwest forest industries, all quarters 2013

Science.gov (United States)

Xiaoping Zhou

2015-01-01

Provides current information on lumber and plywood production and prices; employment in the forest industries; international trade in logs, lumber, and plywood; volume and average prices of stumpage sold by public agencies; and other related items.

Production, prices, employment, and trade in Northwest forest industries, all quarters 2011

Science.gov (United States)

Xiaoping Zhou; Debra D Warren

2012-01-01

Provides current information on lumber and plywood production and prices; employment in the forest industries; international trade in logs, lumber, and plywood; volume and average prices of stumpage sold by public agencies; and other related items.

Production, prices, employment, and trade in Northwest forest industries, all quarters 2014

Science.gov (United States)

Xiaoping Zhou; Jean M. Daniels

2018-01-01

Provides current information on lumber and plywood production and prices; employment in the forest industries; international trade in logs, lumber, and plywood; volume and average prices of stumpage sold by public agencies; and other related items.

Price elasticity of tobacco products among economic classes in India, 2011-2012.

Science.gov (United States)

Selvaraj, Sakthivel; Srivastava, Swati; Karan, Anup

2015-12-09

The objectives of this study are to: (1) examine the pattern of price elasticity of three major tobacco products (bidi, cigarette and leaf tobacco) by economic groups of population based on household monthly per capita consumption expenditure in India and (2) assess the effect of tax increases on tobacco consumption and revenue across expenditure groups. Data from the 2011-2012 nationally representative Consumer Expenditure Survey from 101,662 Indian households were used. Households which consumed any tobacco or alcohol product were retained in final models. The study draws theoretical frameworks from a model using the augmented utility function of consumer behaviour, with a two-stage two-equation system of unit values and budget shares. Primary outcome measures were price elasticity of demand for different tobacco products for three hierarchical economic groups of population and change in tax revenue due to changes in tax structure. We finally estimated price elasticity of demand for bidi, cigarette and leaf tobacco and effects of changes in their tax rates on demand for these tobacco products and tax revenue. Own price elasticities for bidi were highest in the poorest group (-0.4328) and lowest in the richest group (-0.0815). Cigarette own price elasticities were -0.832 in the poorest group and -0.2645 in the richest group. Leaf tobacco elasticities were highest in the poorest (-0.557) and middle (-0.4537) groups. Poorer group elasticities were the highest, indicating that poorer consumers are more price responsive. Elasticity estimates show positive distributional effects of uniform bidi and cigarette taxation on the poorest consumers, as their consumption is affected the most due to increases in taxation. Leaf tobacco also displayed moderate elasticities in poor and middle tertiles, suggesting that tax increases may result in a trade-off between consumption decline and revenue generation. A broad spectrum rise in tax rates across all products is critical for

Transparency, price-dependent demand and product variety

OpenAIRE

Gu, Yiquan; Wenzel, Tobias

2010-01-01

This paper revisits the relationship between transparency on the consumer side and product variety as analyzed in Schultz (2009). We identify two welfare effects of transparency. More transparency decreases price-cost margins which is beneficial forwelfare. On the other hand, more transparency reduces variety which can be positive or negative for welfare. Overall, more transparency is always welfareimproving.

Life Cycle Price Trends and Product Replacement: Implications for the Measurement of Inflation

OpenAIRE

Daniel Melser; Iqbal A. Syed

2014-01-01

The paper explores the extent to which products follow systematic pricing patterns over their life cycle and the impact this has on the measurement of inflation. Using a large US scanner data set on supermarket products and applying flexible regression methods, we find that on average prices decline as items age. This life cycle price change is often attributed to quality difference in the construction of CPI as items are replaced due to disappearance or during sample rotations. This introduces a...

Production Costs of Alternative Transportation Fuels. Influence of Crude Oil Price and Technology Maturity

Energy Technology Data Exchange (ETDEWEB)

Cazzola, Pierpaolo; Morrison, Geoff; Kaneko, Hiroyuki; Cuenot, Francois; Ghandi, Abbas; Fulton, Lewis

2013-07-01

This study examines the production costs of a range of transport fuels and energy carriers under varying crude oil price assumptions and technology market maturation levels. An engineering ''bottom-up'' approach is used to estimate the effect of the input cost of oil and of various technological assumptions on the finished price of these fuels. In total, the production costs of 20 fuels are examined for crude oil prices between USD 60 and USD 150 per barrel. Some fuel pathways can be competitive with oil as their production, transport and storage technology matures, and as oil price increases. Rising oil prices will offer new opportunities to switch to alternative fuels for transport, to diversify the energy mix of the transport sector, and to reduce the exposure of the whole system to price volatility and potential distuption of supply. In a time of uncertainty about the leading vehicle technology to decarbonize the transport sector, looking at the fuel cost brings key information to be considered to keep mobility affordable yet sustainable.

IDENTIFYING PRODUCT AND PRICE STRATEGIES FOR DESIGNING TRANSACTIONAL BANKING PACKAGES ADDRESSED TO SMES (CONSIDERATIONS

Directory of Open Access Journals (Sweden)

Giuca Simona-Mihaela

2014-07-01

Full Text Available The current paper has the aim to provide guidelines for designing efficient product and price strategies, through proposed business cases which could be used especially for banking products addressed to SMEs. While identifying the optimal product and price strategy and designing the product catalogue structure, the marketing specialist should definitely consider existing portfolio behaviour and estimate the growing potential (if possible, overall portfolio, with focus on accurately defining the additional impact of the newly proposed product/ products. A business case contains estimations for results to be generated by products to be launched or optimized. This paper presents complex schemes for business case scenarios for migration of existing portfolio to the new products, but also considers new clients acquisition based on important features of the products. The pricing strategy is not a simple task to manage. Especially when speaking about transactional packages (for which the price is lower than separate services included, some segments or clusters may generate loss to the bank if they already used the services at a higher price than the one of the package. Therefore, the decision of setting up specific prices needs to be based on an accurate and complex analysis, as presented in current paper. The assumptions used in a business case need to be relevant for the entire process of designing and launching a product, therefore they can always be adjusted for better calculation of the impact. No matter if the assumptions and prices remain as in the initial proposal or not, the steps to be followed are the same. Segmentation also plays an important role in designing the product strategy, since the target for a product or product catalogue can be represented by a segment, a sub segment or a cluster of many segments. Not always the initial segmentation represents the clustering for the product strategy. Sometimes, behaviour of existing clients

Oil price shocks and economy: an open question

International Nuclear Information System (INIS)

Di Marzio, G.

2006-01-01

During the 1970s and 1980s advanced oil importing economies faced the adverse effects of oil supply disruptions with abrupt energy price rise, followed by sensible business cycle inversions and stagflation. The negative effects of the sharp energy price increase were amplified by factors such the induced costly resources reallocation between labour and capital, and between sectors of activity; rising uncertainty discouraging investments, and income redistribution consequences on aggregate demands After a shock the economic system generally adjusts in favour of less energy intensive industries; this leads pauses in production as part of the existing capital stock become obsolete, and causes resources under utilization. Since the 1970s a number of economists have been sceptical about why even large price shocks in a resource that accounts for less than 3-4 pct. of global GDP could cause losses of magnitude as those experienced in most advanced economies. They believe that monetary policy has played a role in generating the observed negative correlation between oil prices and economic activity, and question whether the post-oil-shock recessions were attributable to the oil price shocks themselves or to the monetary policy responding to these shocks. Empirical research largely shows a primary responsibility of large price shocks and major oil-supply disruptions on recessionary movements of GDP. Energy prices have risen sharply since 2003, driven by strengthening global demand; market fundamentals suggest that a considerable fraction of recent hikes will be permanent and current price levels remain credible. With limited spare capacity, the medium term oil supply-demand balance is expected to remain tight, and the price probably near current levels. Today' s high oil prices reflect the effects of sustained energy demand trends and, jointly, oil industry under investment during and after the low price era of the 1990s. The apparent moderate macro economic effects of the

Formulation of price strategies in the software sector: outsourcing of development and maintenance software product case

Directory of Open Access Journals (Sweden)

Antonio Cezar Bornia

2008-07-01

Full Text Available The main goal of this article is to discuss the formulation of price strategies in the software sector. In the intention of reaching the proposed goal, strategies models of prices are introduced along with the procedure to the formulation of price strategies, composed by five stages: external and internal analyses, consolidation, positioning, price strategy formalization and market attendance. As for the methodology, the study is classified as qualitative, exploratory, descriptive, documental, of field and case study, according to the approach of Vergara (1998. In the case study, the model to the formulation of price strategies is applied in a company’s software sector, being analyzed the outsourcing of development and maintenance software product. As main contributions, it is highlighted the price procedure application that emphasizes strategic price logic and prices strategies formulations, with base in the analysis of five main factors: quality, comparison with the competition, company life cycle, product life cycle and characteristics of the segment-objective. Based on the analyzed factors, a possible strategy to be adopted considering the characteristics of the product and the company is the price strategy and superior value. Key-words: Pricing Strategies. Price Formulation. Software Enterprises.

Are Alcohol Taxation and Pricing Policies Regressive? Product-Level Effects of a Specific Tax and a Minimum Unit Price for Alcohol.

Science.gov (United States)

Vandenberg, Brian; Sharma, Anurag

2016-07-01

To compare estimated effects of two policy alternatives, (i) a minimum unit price (MUP) for alcohol and (ii) specific (per-unit) taxation, upon current product prices, per capita spending (A$), and per capita consumption by income quintile, consumption quintile and product type. Estimation of baseline spending and consumption, and modelling policy-to-price and price-to-consumption effects of policy changes using scanner data from a panel of demographically representative Australian households that includes product-level details of their off-trade alcohol spending (n = 885; total observations = 12,505). Robustness checks include alternative price elasticities, tax rates, minimum price thresholds and tax pass-through rates. Current alcohol taxes and alternative taxation and pricing policies are not highly regressive. Any regressive effects are small and concentrated among heavy consumers. The lowest-income consumers currently spend a larger proportion of income (2.3%) on alcohol taxes than the highest-income consumers (0.3%), but the mean amount is small in magnitude [A$5.50 per week (95%CI: 5.18-5.88)]. Both a MUP and specific taxation will have some regressive effects, but the effects are limited, as they are greatest for the heaviest consumers, irrespective of income. Among the policy alternatives, a MUP is more effective in reducing consumption than specific taxation, especially for consumers in the lowest-income quintile: an estimated mean per capita reduction of 11.9 standard drinks per week (95%CI: 11.3-12.6). Policies that increase the cost of the cheapest alcohol can be effective in reducing alcohol consumption, without having highly regressive effects. © The Author 2015. Medical Council on Alcohol and Oxford University Press. All rights reserved.

Declining Global Per Capita Agricultural Production and Warming Oceans Threaten Food Security

Science.gov (United States)

Funk, Chris C.; Brown, Molly E.

2009-01-01

Despite accelerating globalization, most people still eat food that was grown locally. Developing countries with weak purchasing power tend to import as little food as possible from global markets, suffering consumption deficits during times of high prices or production declines. Local agricultural production, therefore, is critical to both food security and economic development among the rural poor. The level of local agricultural production, in turn, will be controlled by the amount and quality of arable land, the amount and quality of agricultural inputs (fertilizer, seeds, pesticides, etc.), as well as farm-related technology, practices, and policies. In this paper we discuss several emerging threats to global and regional food security, including declining yield gains that are failing to keep up with population increases, and warming in the tropical Indian Ocean and its impact on rainfall. If yields continue to grow more slowly than per capita harvested area, parts of Africa, Asia, and Central and Southern America will experience substantial declines in per capita cereal production. Global per capita cereal production will potentially decline by 14 percent between 2008 and 2030. Climate change is likely to further affect food production, particularly in regions that have very low yields due to lack of technology. Drought, caused by anthropogenic warming in the Indian and Pacific Oceans, may also reduce 21 st century food availability by disrupting Indian Ocean moisture transports and tilting the 21 st century climate toward a more El Nino-like state. The impacts of these circulation changes over Asia remain uncertain. For Africa, however, Indian Ocean warming appears to have already reduced main growing season rainfall along the eastern edge of tropical Africa, from southern Somalia to northern parts of the Republic of South Africa. Through a combination of quantitative modeling of food balances and an examination of climate change, we present an analysis of

Declining global per capita agricultural production and warming oceans threaten food security

Science.gov (United States)

Funk, Christopher C.; Brown, Molly E.

2009-01-01

Despite accelerating globalization, most people still eat food that is grown locally. Developing countries with weak purchasing power tend to import as little food as possible from global markets, suffering consumption deficits during times of high prices or production declines. Local agricultural production, therefore, is critical to both food security and economic development among the rural poor. The level of local agricultural production, in turn, will be determined by the amount and quality of arable land, the amount and quality of agricultural inputs (fertilizer, seeds, pesticides, etc.), as well as farm-related technology, practices and policies. This paper discusses several emerging threats to global and regional food security, including declining yield gains that are failing to keep up with population increases, and warming in the tropical Indian Ocean and its impact on rainfall. If yields continue to grow more slowly than per capita harvested area, parts of Africa, Asia and Central and Southern America will experience substantial declines in per capita cereal production. Global per capita cereal production will potentially decline by 14% between 2008 and 2030. Climate change is likely to further affect food production, particularly in regions that have very low yields due to lack of technology. Drought, caused by anthropogenic warming in the Indian and Pacific Oceans, may also reduce 21st century food availability in some countries by disrupting moisture transports and bringing down dry air over crop growing areas. The impacts of these circulation changes over Asia remain uncertain. For Africa, however, Indian Ocean warming appears to have already reduced rainfall during the main growing season along the eastern edge of tropical Africa, from southern Somalia to northern parts of the Republic of South Africa. Through a combination of quantitative modeling of food balances and an examination of climate change, this study presents an analysis of emerging

The impact of ethanol production on food prices: The role of interplay between the U.S. and Brazil

International Nuclear Information System (INIS)

Monteiro, Nathalia; Altman, Ira; Lahiri, Sajal

2012-01-01

Food prices have increased rapidly in recent years, and so has ethanol production. Some studies have claimed that there is a connection between the two. The main purpose of this paper is to add to this literature by examining the influence that the interplay between Brazil and the U.S. in ethanol production has on food prices. Specifically, and controlling for other variables, which have been shown to affect food prices, we investigate whether sugarcane ethanol and corn ethanol production have similar impacts on food prices, and whether ethanol productivity affects food prices. We find a positive significant effect of Brazilian market share in world ethanol market on relative food prices. We also find that an increase of Brazilian cane ethanol area has a negative effect on relative food prices. - Highlights: ► We examine if sugarcane ethanol and corn ethanol have similar impacts on food price. ► We examine if ethanol productivity affects food prices. ► We control for many other variables, which have been shown to affect food prices. ► Brazilian market share in ethanol market has a positive effect on food prices. ► Brazilian cane ethanol area has a negative effect on relative food prices.

The development of a value based pricing index for new drugs in metastatic colorectal cancer

OpenAIRE

Lubbe, Martha Susanna; Dranitsaris, George; Truter, Ilse

2011-01-01

Background Worldwide, prices for cancer drugs have been under downward pressure where several governments have mandated price cuts of branded products. A better alternative to government mandated price cuts would be to estimate a final price based on drug performance, cost effectiveness and a country’s ability to pay. We developed a global pricing index for new cancer drugs in patients with metastatic colorectal cancer (mCRC) that encompasses all of these attributes. Methods ...

Dynamic Pricing Competition with Strategic Customers Under Vertical Product Differentiation

OpenAIRE

Qian Liu; Dan Zhang

2013-01-01

We consider dynamic pricing competition between two firms offering vertically differentiated products to strategic customers who are intertemporal utility maximizers. We show that price skimming arises as the unique pure-strategy Markov perfect equilibrium in the game under a simple condition. Our results highlight the asymmetric effect of strategic customer behavior on quality-differentiated firms. Even though the profit of either firm decreases as customers become more strategic, the low-qu...

Bundle Pricing Decisions for Fresh Products with Quality Deterioration

OpenAIRE

Fang, Yan; Jiang, Yiping; Han, Xingxing

2018-01-01

How to sell fresh products quickly to decrease the storage cost and to meet customer quality requirement is of vital importance in the food supply chain. Bundling fresh products is an efficient strategy to promote sales and reduce storage pressure of retailers. In this paper, we consider the bundle pricing decisions for homogeneous fresh products with quality deterioration. The value of fresh products with quality deterioration is approximated as an exponential function based on which custome...

Dynamic impacts of high oil prices on the bioethanol and feedstock markets

International Nuclear Information System (INIS)

Cha, Kyung Soo; Bae, Jeong Hwan

2011-01-01

This study investigates the impacts of high international oil prices on the bioethanol and corn markets in the US. Between 2007 and 2008, the prices of major grain crops had increased sharply, reflecting the rise in international oil prices. These dual price shocks had caused substantial harm to the global economy. Employing a structural vector auto-regression model (SVAR), we analyze how increases in international oil prices could impact the prices of and demand for corn, which is used as a major bioethanol feedstock in the US. The results indicate that an increase in the oil price would increase bioethanol demand for corn and corn prices in the short run and that corn prices would stabilize in the long run as corn exports and feedstock demand for corn decline. Consequently, policies supporting biofuels should encourage the use of bioethanol co-products for feed and the development of marginal land to mitigate increases in the feedstock price. - Research highlights: → World economy experienced 'dual shocks', which were caused by skyrocketed oil prices and grain prices between 2007 and 2008. → Sharp increases in ethanol production in response to high oil prices were considered as a major driving force to 'ag-flation' in the United States. → Applying a time series econometric tool, called the 'structural vector auto-regression model', we evaluated relationship between ethanol production and corn prices. → The result shows that ethanol production affects corn prices in the short run, while corn prices are lowered as other corn demands (feed for livestock or export demand) decline in the long run.

Global product development

DEFF Research Database (Denmark)

Hansen, Zaza Nadja Lee; Ahmed-Kristensen, Saeema

2011-01-01

Globalisation has enabled companies to globalise their product development process. Today, everything from manufacturing to R&D can be globally distributed. This has led to a more complex and disintegrated product development process. This paper investigates the impacts companies have experienced...... operational solutions to counteract the negative impacts with varying degrees of success. This paper presents a unique look into global product development through an investigation of its impact on the organisation, the product development process, and the product. Furthermore, it shows the solutions...... as a result of this, and how they have been addressed. Data was collected through case studies of five Danish multinational corporations. The findings showed that the companies experienced several challenges when they globalised their product development process. They consequently implemented various...

Oil industry consolidation and refined product prices. Evidence from US wholesale gasoline terminals

International Nuclear Information System (INIS)

Kendix, Michael; Walls, W.D.

2010-01-01

Our objective in this paper is to quantify the impact of petroleum industry consolidation on refined product prices, controlling for other important factors that could also impact prices. Our empirical analysis focuses on the US petroleum refining industry using data on industry consolidation and wholesale gasoline prices collected over the interval 2000-2008. We match refinery units to wholesale city-terminal gasoline markets, and then estimate pooled cross-section time-series regressions to quantify the impact of petroleum industry consolidation on wholesale gasoline prices at city-specific terminals. The results of the empirical analysis of mergers are mixed, showing that some petroleum industry mergers resulted in statistically significant increases in refined product prices; others resulted in statistically significant declines and still others had no statistical impact at all. Our analysis of the effects of measures of market concentration - one at the level of city-specific wholesale terminals and another at the level of regional spot markets - found evidence that less concentrated markets are associated with lower price levels. (author)

The resilience of the Indian economy to rising oil prices as a validation test for a global energy-environment-economy CGE model

International Nuclear Information System (INIS)

Guivarch, C.; Hallegatte, St.; Crassous, R.

2008-09-01

This paper proposes to test the global hybrid computable general equilibrium model IMACLIM-R against macro-economic data. To do so, it compares the modeled and observed responses of the Indian economy to the rise of oil price during the 2003-2006 period. The objective is twofold: first, to disentangle the various mechanisms and policies at play in India's economy response to rising oil prices and, second, to validate our model as a tool capable of reproducing short-run statistical data. With default parametrization, the model predicts a significant decrease in the Indian growth rate that is not observed. However, this discrepancy is corrected if three additional mechanisms identified by the International Monetary Fund are introduced, namely the rise in exports of refined oil products, the imbalance of the trade balance allowed by large capital inflows, and the incomplete pass-through of the oil price increase to Indian customers. This work is a first step toward model validation, and provides interesting insights on the modeling methodology relevant to represent an economy's response to a shock, as well as on how short-term mechanisms - and policy action - can smooth the negative impacts of energy price shocks or climate policies. (authors)

The resilience of the Indian economy to rising oil prices as a validation test for a global energy-environment-economy CGE model

International Nuclear Information System (INIS)

Guivarch, Celine; Hallegatte, Stephane; Crassous, Renaud

2009-01-01

This paper proposes to test the global hybrid computable general equilibrium model IMACLIM-R against macroeconomic data. To do so, it compares the modeled and observed responses of the Indian economy to the rise of oil price during the 2003-2006 period. The objective is twofold: first, to disentangle the various mechanisms and policies at play in India's economy response to rising oil prices and, second, to validate our model as a tool capable of reproducing short-run statistical data. With default parameterization, the model predicts a significant decrease in the Indian growth rate that is not observed. However, this discrepancy is corrected if three additional mechanisms identified by the International Monetary Fund are introduced, namely the rise in exports of refined oil products, the imbalance of the trade balance allowed by large capital inflows, and the incomplete pass-through of the oil price increase to Indian customers. This work is a first step toward model validation, and provides interesting insights on the modeling methodology relevant to represent an economy's response to a shock, as well as on how short-term mechanisms - and policy action - can smooth the negative impacts of energy price shocks or climate policies. (author)

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...

Increasing crop production in Russia and Ukraine—regional and global impacts from intensification and recultivation

Science.gov (United States)

Deppermann, Andre; Balkovič, Juraj; Bundle, Sophie-Charlotte; Di Fulvio, Fulvio; Havlik, Petr; Leclère, David; Lesiv, Myroslava; Prishchepov, Alexander V.; Schepaschenko, Dmitry

2018-02-01

Russia and Ukraine are countries with relatively large untapped agricultural potentials, both in terms of abandoned agricultural land and substantial yield gaps. Here we present a comprehensive assessment of Russian and Ukrainian crop production potentials and we analyze possible impacts of their future utilization, on a regional as well as global scale. To this end, the total amount of available abandoned land and potential yields in Russia and Ukraine are estimated and explicitly implemented in an economic agricultural sector model. We find that cereal (barley, corn, and wheat) production in Russia and Ukraine could increase by up to 64% in 2030 to 267 million tons, compared to a baseline scenario. Oilseeds (rapeseed, soybean, and sunflower) production could increase by 84% to 50 million tons, respectively. In comparison to the baseline, common net exports of Ukraine and Russia could increase by up to 86.3 million tons of cereals and 18.9 million tons of oilseeds in 2030, representing 4% and 3.6% of the global production of these crops, respectively. Furthermore, we find that production potentials due to intensification are ten times larger than potentials due to recultivation of abandoned land. Consequently, we also find stronger impacts from intensification at the global scale. A utilization of crop production potentials in Russia and Ukraine could globally save up to 21 million hectares of cropland and reduce average global crop prices by more than 3%.

Farmgate Private Standards and Price Premium: Evidence From the GlobalGAP Scheme in Kenya's French Beans Marketing

OpenAIRE

Kariuki, Isaac Maina; Loy, Jens-Peter; Herzfeld, Thomas

2012-01-01

The proliferation of private quality and assurance schemes in international trade is defining market access in high value chains. The prime concern for small-scale producers is whether price premiums are realizable due to compliance. Using French beans marketing, the authors find that GlobalGAP certification, produce traceability, number of suppliers, competition for supplies, direct procurement, a good road network, and supply contracts have positive farmgate price effects for smallholders. ...

A comprehensive examination of own- and cross-price elasticities of tobacco and nicotine replacement products in the U.S.

Science.gov (United States)

Huang, Jidong; Gwarnicki, Cezary; Xu, Xin; Caraballo, Ralph S; Wada, Roy; Chaloupka, Frank J

2018-04-21

While much is known about the demand for cigarettes, research on the demand for non-cigarette tobacco products and the cross-price impacts among those products is limited. This study aims to comprehensively examine the own- and cross-price elasticities of demand for tobacco and nicotine replacement products (NRPs) in the U.S. We analyzed market-level quarterly data on sales and prices of 15 different types of tobacco products and NRPs from 2007 to 2014, compiled from retail store scanner data. Fixed effects models with controls were used to estimate their own-price elasticities and cross-price elasticities between cigarettes and the other 14 products. Our results show that, except for cigars, the demand for combustible tobacco products was generally elastic, with the estimated own-price elasticity >1 (10% increase in prices reduces sales by >10%). The own-price elasticities for smokeless tobacco products were smaller than those for combustible tobacco, although not always significant. The demand for electronic cigarettes and NRPs was found to be elastic. The cross-price elasticities with respect to cigarettes were positive for cigarillos, little cigars, loose tobacco, pipe tobacco, electronic cigarettes and NRPs, but only results for little cigars, loose tobacco, pipe tobacco, and dissolvable lozenges were consistently significant. Our findings suggest demand for tobacco products and NRPs was responsive to changes in their own prices. Substitutions or positive cross-price impacts between cigarettes and certain other products exist. It is important that tobacco control policies take into account both own- and cross-price impacts among tobacco products and NRTs. Copyright © 2018 Elsevier Inc. All rights reserved.

Grain price spikes and beggar-thy-neighbor policy responses

DEFF Research Database (Denmark)

Jensen, Hans Grinsted; Anderson, Kym

When prices spike in international grain markets, national governments often reduce the extent to which that spike affects their domestic food markets. Those actions exacerbate the price spike and international welfare transfer associated with that terms of trade change. Several recent analyses...... have assessed the extent to which those policies contributed to the 2006-08 international price rise, but only by focusing on one commodity or using a back-of-the envelope (BOTE) method. This paper provides a more-comprehensive analysis using a global economy-wide model that is able to take account...... of the interactions between markets for farm products that are closely related in production and/or consumption, and able to estimate the impacts of those insulating policies on grain prices and on the grain trade and economic welfare of the world’s various countries. Our results support the conclusion from earlier...

Production price of hydrogen from grid connected electrolysis in a power market with high wind penetration

International Nuclear Information System (INIS)

Joergensen, Claus; Ropenus, Stephanie

2008-01-01

In liberalized power markets, there are significant power price fluctuations due to independently varying changes in demand and supply, the latter being substantial in systems with high wind power penetration. In such systems, hydrogen production by grid connected electrolysis can be cost optimized by operating an electrolyzer part time. This paper presents a study on the minimization of the hydrogen production price and its dependence on estimated power price fluctuations. The calculation of power price fluctuations is based on a parameterization of existing data on wind power production, power consumption and power price evolution in the West Danish power market area. The price for hydrogen is derived as a function of the optimal electrolyzer operation hours per year for four different wind penetration scenarios. It is found to amount to 0.41-0.45 EUR/Nm 3 . The study further discusses the hydrogen price sensitivity towards investment costs and the contribution from non-wind power sources. (author)

Production price of hydrogen from grid connected electrolysis in a power market with high wind penetration

Energy Technology Data Exchange (ETDEWEB)

Joergensen, Claus [Materials Research Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark); Ropenus, Stephanie [Systems Analysis Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark)

2008-10-15

In liberalized power markets, there are significant power price fluctuations due to independently varying changes in demand and supply, the latter being substantial in systems with high wind power penetration. In such systems, hydrogen production by grid connected electrolysis can be cost optimized by operating an electrolyzer part time. This paper presents a study on the minimization of the hydrogen production price and its dependence on estimated power price fluctuations. The calculation of power price fluctuations is based on a parameterization of existing data on wind power production, power consumption and power price evolution in the West Danish power market area. The price for hydrogen is derived as a function of the optimal electrolyzer operation hours per year for four different wind penetration scenarios. It is found to amount to 0.41-0.45 EUR/Nm{sup 3}. The study further discusses the hydrogen price sensitivity towards investment costs and the contribution from non-wind power sources. (author)

Production price of hydrogen from grid connected electrolysis in a power market with high wind penetration.

Energy Technology Data Exchange (ETDEWEB)

Joergensen, Claus [Materials Research Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark); Ropenus, Stephanie [Systems Analysis Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark)

2008-10-15

In liberalized power markets, there are significant power price fluctuations due to independently varying changes in demand and supply, the latter being substantial in systems with high wind power penetration. In such systems, hydrogen production by grid connected electrolysis can be cost optimized by operating an electrolyzer part time. This paper presents a study on the minimization of the hydrogen production price and its dependence on estimated power price fluctuations. The calculation of power price fluctuations is based on a parameterization of existing data on wind power production, power consumption and power price evolution in the West Danish power market area. The price for hydrogen is derived as a function of the optimal electrolyzer operation hours per year for four different wind penetration scenarios. It is found to amount to 0.41-0.45 EUR/Nm{sup 3}. The study further discusses the hydrogen price sensitivity towards investment costs and the contribution from non-wind power sources. (author)

Pharmaceutical pricing: an empirical study of market competition in Chinese hospitals.

Science.gov (United States)

Wu, Jing; Xu, Judy; Liu, Gordon; Wu, Jiuhong

2014-03-01

High pharmaceutical prices and over-prescribing of high-priced pharmaceuticals in Chinese hospitals has long been criticized. Although policy makers have tried to address these issues, they have not yet found an effective balance between government regulation and market forces. Our objective was to explore the impact of market competition on pharmaceutical pricing under Chinese government regulation. Data from 11 public tertiary hospitals in three cities in China from 2002 to 2005 were used to explore the effect of generic and therapeutic competition on prices of antibiotics and cardiovascular products. A quasi-hedonic regression model was employed to estimate the impact of competition. The inputs to our model were specific attributes of the products and manufacturers, with the exception of competition variables. Our results suggest that pharmaceutical prices are inversely related to the number of generic and therapeutic competitors, but positively related to the number of therapeutic classes. In addition, the product prices of leading local manufacturers are not only significantly lower than those of global manufacturers, but are also lower than their non-leading counterparts when other product attributes are controlled for. Under the highly price-regulated market in China, competition from generic and therapeutic competitors did decrease pharmaceutical prices. Further research is needed to explore whether this competition increases consumer welfare in China's healthcare setting.

73 Activity Based Costing and Product Pricing Decision: the Nigerian Case

Directory of Open Access Journals (Sweden)

Ebipanipre Gabriel Mieseigha

2014-06-01

Full Text Available This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability and cost control can be achieved by implementing activity based costing approach by manufacturing firms. The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately. Thus, it was recommended amongst others that activity based costing need to be practiced, maintained and implemented by manufacturing firms since it has a broad range of uses for a wide variety of company functions and operations in the area of process analysis, strategy support, time-based accounting, monitoring wastage, as well as quality and productivity management.

The transitory and permanent volatility of oil prices: What implications are there for the US industrial production?

International Nuclear Information System (INIS)

Ali Ahmed, Huson Joher; Bashar, Omar H.M.N.; Wadud, I.K.M. Mokhtarul

2012-01-01

Highlights: ► This study examines the impact of oil price uncertainty on the US industrial production (IPI). ► The transitory component of the oil price volatility has an adverse impact on the US IPI. ► The transitory oil price volatility induces higher volatility in CPI, commodity prices and IPI. -- Abstract: This study examines the impact of oil price uncertainty on the US industrial production by decomposing oil price volatility into permanent and transitory components. The decompositions provide important evidence on sources and asymmetric effects of oil price volatility. To estimate the component structure of volatility and to analyse the dynamic impacts of the volatility components, the study uses a threshold based CGARCH and VAR modelling over a period from 1980 to 2010 for the US economy. The CGARCH model estimates show significant asymmetric effect of oil price shock on the transitory oil price volatility. Dynamic impulse response functions obtained from the estimated VAR models reveal that there is a significant and prolonged dampening impact of increased transitory oil price volatility on industrial production. The results also suggest that shocks to transitory component induce increased volatility in the general price level and non-fuel commodity prices in the US. Variance decomposition analysis reconfirms that the transitory volatility is the second most important factor to explain the variance of industrial production. These results provide additional insights on the sources of oil price uncertainty and point to the need to direct US energy policies towards stabilising short-term uncertainties in oil prices.

Provisioning in Agricultural Communities: Local, Regional and Global Cereal Prices and Local Production on Three Continents

Science.gov (United States)

Brown, Molly E.; Tondel, Fabien; Essam, Timothy; Thorne, Jennifer A.; Mann, Bristol F.; Eilerts, Gary

2012-01-01

Monitoring and incorporating diverse market and staple food information into food price indices is critical for food price analyses. Satellite remote sensing data and earth science models have an important role to play in improving humanitarian aid timing, delivery and distribution. Incorporating environmental observations into econometric models will improve food security analysis and understanding of market functioning.

Price and Product Pooling: Impact on Development and Operation of Differentiated Value Chains

OpenAIRE

Hobbs, Jill E.; Kerr, William A.

2006-01-01

Price pooling has long been used as a means to deal with risk in the marketing of agricultural commodities. For commodities, product pooling may also generate potential benefits through economies of scale or the provision of market power. Yet there has also been a growing interest in product differentiation and the development of value chains as a means to increase returns to farmers. This article explores the question of whether price or product pooling is compatible with a strategy of pro-a...

Pricing decision model for new and remanufactured short-life cycle products with time-dependent demand

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Shu San Gan

2015-12-01

Full Text Available In this study we develop a model that optimizes the price for new and remanufactured short life-cycle products where demands are time-dependent and price sensitive. While there has been very few published works that attempt to model remanufacturing decisions for products with short life cycle, we believe that there are many situations where remanufacturing short life cycle products is rewarding economically as well as environmentally. The system that we model consists of a retailer, a manufacturer, and a collector of used product from the end customers. Two different scenarios are evaluated for the system. The first is the independent situation where each party attempts to maximize his/her own total profit and the second is the joint profit model where we optimize the combined total profit for all three members of the supply chain. Manufacturer acts as the Stackelberg leader in the independently optimized scenario, while in the other the intermediate prices are determined by coordinated pricing policy. The results suggest that (i reducing the price of new products during the decline phase does not give better profit for the whole system, (ii the total profit obtained from optimizing each player is lower than the total profit of the integrated model, and (iii speed of change in demand influences the robustness of the prices as well as the total profit gained.

World oil prices, precious metal prices and macroeconomy in Turkey

International Nuclear Information System (INIS)

Soytas, Ugur; Sari, Ramazan; Hammoudeh, Shawkat; Hacihasanoglu, Erk

2009-01-01

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

Supply chains in global production

Directory of Open Access Journals (Sweden)

Anatolii Mazaraki

2017-10-01

Full Text Available Introduction. Analyzing the current processes of global sales and sales interaction over the past two decades shows that the world’s system of exchanges has undergone significant changes that have been caused by a multitude of factors. The formation of a complex model of global production, determined by the peculiarities of the transformation of individual economies’ growth models, the specifics of their industrialization and the forms of development of their national production business, its institutional and market-wise restructuring and the degree of inclusion in the system of international division of labor. The change in the level and depth of the specialization of individual countries in the field of production and sale of products, in turn, has accelerated the overcoming of economic distance (which is measured by the cost of transport and information services. Based on the above, namely, within the framework of forming a new model of global production, the issue of studying the role and value of supply chains in this model is made relevant. Aim and tasks. The purpose of the article is to study the modern transformation of supply chains within the global production system. The findings will allow to determine what exactly needs to be done in the direction of further redeveloping the regulatory tools of global supply chain management. Research results. The article presents the results of studying the transformation of supply chains’ role in global production. It is determined that taking into account the existing specificity of industrialization and fragmentation of national production, as well as the rapid spread of the results of scientific and technological progress in the world economy, there is a need for a more thorough study of this change. As a result of analyzing open source statistical data, a conclusion was reached regarding the transition from the competition of individual business entities to the competition of global

Dynamic Pricing and Production Control of an Inventory System with Remanufacturing

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Chunyan Gao

2015-01-01

Full Text Available We consider optimal pricing and manufacturing control of a continuous-review inventory system with remanufacturing. Customer demand and product return follow independent Poisson processes. Customer demand is filled by serviceable product, which can be either manufactured or remanufactured from the returned product. The lead times for both manufacturing and remanufacturing are exponentially distributed. The objective is to maximize the expected total discounted profit over an infinite planning horizon. We characterize the structural properties of the optimal policy through the optimality equation. Specifically, the optimal manufacturing policy is a base-stock policy with the base-stock level nonincreasing in the return inventory level. The optimal pricing policy is also a threshold policy, where the threshold level is nonincreasing in the return inventory level.

Organic vs. Non-Organic Food Products: Credence and Price Competition

OpenAIRE

Yi Wang; Zhanguo Zhu; Feng Chu

2017-01-01

We analyze the organic and non-organic production choices of two firms by considering customers’ trust in organic food products. In the context of customers’ possible willingness to pay a premium price and their mistrust in organic food products, two firms first make choices on offering organic and non-organic food products. If offering organic products, a firm can further invest in the credence system to increase customers’ trust in their organic products. At the final stage, two firms deter...

Dynamics of global supply chain and electric power networks: Models, pricing analysis, and computations

Science.gov (United States)

Matsypura, Dmytro

In this dissertation, I develop a new theoretical framework for the modeling, pricing analysis, and computation of solutions to electric power supply chains with power generators, suppliers, transmission service providers, and the inclusion of consumer demands. In particular, I advocate the application of finite-dimensional variational inequality theory, projected dynamical systems theory, game theory, network theory, and other tools that have been recently proposed for the modeling and analysis of supply chain networks (cf. Nagurney (2006)) to electric power markets. This dissertation contributes to the extant literature on the modeling, analysis, and solution of supply chain networks, including global supply chains, in general, and electric power supply chains, in particular, in the following ways. It develops a theoretical framework for modeling, pricing analysis, and computation of electric power flows/transactions in electric power systems using the rationale for supply chain analysis. The models developed include both static and dynamic ones. The dissertation also adds a new dimension to the methodology of the theory of projected dynamical systems by proving that, irrespective of the speeds of adjustment, the equilibrium of the system remains the same. Finally, I include alternative fuel suppliers, along with their behavior into the supply chain modeling and analysis framework. This dissertation has strong practical implications. In an era in which technology and globalization, coupled with increasing risk and uncertainty, complicate electricity demand and supply within and between nations, the successful management of electric power systems and pricing become increasingly pressing topics with relevance not only for economic prosperity but also national security. This dissertation addresses such related topics by providing models, pricing tools, and algorithms for decentralized electric power supply chains. This dissertation is based heavily on the following

Price trends and project viability

International Nuclear Information System (INIS)

Olsen, W.H.

1999-01-01

The paper discusses some of the remarkable changes that have occurred in the oil and gas industry over about the past 25 years. In the past ten years alone, technology and politics have brought new ways of working together and the recovery of resources once thought of as impossible. Cooperation appears to be a key word. The paper was presented under the sub-headings of the environment, global energy outlook, technological drivers and the challenge ahead. The current low price of oil will inevitably slow down exploration and field development but the author remains optimistic despite the tough challenges. The paper contains many diagrams relating to production, costs, efficiency, exploration, reserves, price forecasts and exploration technology

From Rio to Rio: a global carbon price signal to escape the great climate inconsistency

International Nuclear Information System (INIS)

Dion, Stephane; Laurent, Eloi

2012-05-01

Two decades after the 1992 Rio Conference, we must admit to collective failure in combating human-induced climate change. The problem is not that no efforts have been undertaken, but that these efforts have just not been enough. We cannot escape serious climate disruption - which, to some extent, has already begun - if we keep going down that road. We must change direction, and we must move quickly. To this end, we call in this paper for a fine-tuning of the international negotiations on climate. We propose refocusing these international efforts on negotiating a global carbon price signal, harmonized in principle but flexible in practice, instead of doggedly spending the next few years attempting to convince countries to accept stricter national targets for quantitative reduction of their greenhouse gas (GHG) emissions. We cannot afford to spend the next few years missing the wrong targets. Simply put, we must move away, collectively, from an ineffective logic of constraint to a pragmatic logic of price incentives. The December 2011 Durban Conference proved, once again, that the 'to each their own target' approach does not work. We must instead adopt a 'one price signal for all' strategy. If there were a single reason to improve the current mitigation logic, it would be this evident fact: developing countries, which now account for 60% of emissions worldwide, cannot accept what they perceive as an obstacle to their economic development, when developed countries have been able to get rich on unlimited use of fossil fuel energy. Indeed, in the foreseeable future, emerging economies, particularly China and India with Gross Domestic Product (GDP) annual growth rates of between 8% and 10%, will not accept absolute reduction targets for GHG emissions. On the other hand, these countries might be more open to the idea of a flexible levy of a price per tonne of carbon dioxide, a price from which they would derive revenues, and which their economic

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...

Implementation of fuzzy logic to determining selling price of products in a local corporate chain store

Science.gov (United States)

Kristiana, S. P. D.

2017-12-01

Corporate chain store is one type of retail industries companies that are developing growing rapidly in Indonesia. The competition between retail companies is very tight, so retailer companies should evaluate its performance continuously in order to survive. The selling price of products is one of the essential attributes and gets attention of many consumers where it’s used to evaluate the performance of the industry. This research aimed to determine optimal selling price of product with considering cost factors, namely purchase price of the product from supplier, holding costs, and transportation costs. Fuzzy logic approach is used in data processing with MATLAB software. Fuzzy logic is selected to solve the problem because this method can consider complexities factors. The result is a model of determination of the optimal selling price by considering three cost factors as inputs in the model. Calculating MAPE and model prediction ability for some products are used as validation and verification where the average value is 0.0525 for MAPE and 94.75% for prediction ability. The conclusion is this model can predict the selling price of up to 94.75%, so it can be used as tools for the corporate chain store in particular to determine the optimal selling price for its products.

78 FR 5245 - Pricing for New Product-America the Beautiful Quarters® Three-Roll Set

Science.gov (United States)

2013-01-24

... DEPARTMENT OF THE TREASURY United States Mint Pricing for New Product--America the Beautiful Quarters[supreg] Three-Roll Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing pricing for a new product, the America the Beautiful...

Optimal Control of a Make-to-Stock System with Outsourced Production and Price-Sensitive Demand

Directory of Open Access Journals (Sweden)

Liuxin Chen

2014-01-01

and a choice of either high or low price, the system decides at any point in time whether to produce or even outsource for additional capacity as well as which price to sell the product at. We show in the paper that the optimal control policy is of dynamic threshold type: all decisions are based on the product inventory position which represents the state of the system; there is a state dependent base stock level to decide on production and a higher level on outsourcing; and there is a state dependent threshold which divides the choice of high and low prices.

CONFLICT OF INTERESTS IN TRANSFER PRICING

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M. Osvald

2014-09-01

Full Text Available In the conditions of globalization all the companies try to find the effective ways of maximizing their profit. One of the instruments is the system of the transfer pricing that helps to optimize the costs and allocate effective the resources of the company. Transfer pricing has detrimental effect on the economy of countries, though the governments use the regulations to minimize this effect on their economy. In this case the conflict of interests appears. Paper deals with an analysis of the functions and reasons of the economic agents which use the transfer prices to demonstrate the conflict of interests in transfer pricing. The purpose of the study is the determination of the best ways to solve the conflict situations in the process of transfer pricing according to the economic interests of the agents: company and government and within the company: headquarters and subsidiaries. The main point of resolving the conflict between company and government is to make clear regulations of transfer pricing for enterprises and productive relations between company and government. The methods to resolve the conflict within the company are: clear guidelines, decentralization and motivation for stuff members.

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

IMPLICATIONS OF GLOBAL PRICING POLICIES ON ACCESS TO INNOVATIVE DRUGS: THE CASE OF TRASTUZUMAB IN SEVEN LATIN AMERICAN COUNTRIES.

Science.gov (United States)

Pichon-Riviere, Andres; Garay, Osvaldo Ulises; Augustovski, Federico; Vallejos, Carlos; Huayanay, Leandro; Bueno, Maria del Pilar Navia; Rodriguez, Alarico; de Andrade, Carlos José Coelho; Buendía, Jefferson Antonio; Drummond, Michael

2015-01-01

Differential pricing, based on countries' purchasing power, is recommended by the World Health Organization to secure affordable medicines. However, in developing countries innovative drugs often have similar or even higher prices than in high-income countries. We evaluated the potential implications of trastuzumab global pricing policies in terms of cost-effectiveness (CE), coverage, and accessibility for patients with breast cancer in Latin America (LA). A Markov model was designed to estimate life-years (LYs), quality-adjusted life-years (QALYs), and costs from a healthcare perspective. To better fit local cancer prognosis, a base case scenario using transition probabilities from clinical trials was complemented with two alternative scenarios with transition probabilities adjusted to reflect breast cancer epidemiology in each country. Incremental discounted benefits ranged from 0.87 to 1.00 LY and 0.51 to 0.60 QALY and incremental CE ratios from USD 42,104 to USD 110,283 per QALY (2012 U.S. dollars), equivalent to 3.6 gross domestic product per capita (GDPPC) per QALY in Uruguay and to 35.5 GDPPC in Bolivia. Probabilistic sensitivity analysis showed 0 percent probability that trastuzumab is CE if the willingness-to-pay threshold is one GDPPC per QALY, and remained so at three GDPPC threshold except for Chile and Uruguay (4.3 percent and 26.6 percent, respectively). Trastuzumab price would need to decrease between 69.6 percent to 94.9 percent to became CE in LA. Although CE in other settings, trastuzumab was not CE in LA. The use of health technology assessment to prioritize resource allocation and support price negotiations is critical to making innovative drugs available and affordable in developing countries.

The Impact of Supply Chain Cost on the Price of the Final Product

Directory of Open Access Journals (Sweden)

Indrė Lapinskaitė

2014-06-01

Full Text Available Nowadays, as consumption and production are growing enormously fast, companies are seeking for costs reduction aimed at ensuring competitiveness. In manufacturing companies, supply chain expenses play a colossal role in the cost of the final product. This paper focuses on the main processes in the logistics chain and their components. The authors analyse the relationship between the sup- ply chain expenses and the price of the final product, the classification of logistics chain costs and their minimization as an assumption for the competitiveness of the final price.

Food Price Volatility and Decadal Climate Variability

Science.gov (United States)

Brown, M. E.

2013-12-01

The agriculture system is under pressure to increase production every year as global population expands and more people move from a diet mostly made up of grains, to one with more meat, dairy and processed foods. Weather shocks and large changes in international commodity prices in the last decade have increased pressure on local food prices. This paper will review several studies that link climate variability as measured with satellite remote sensing to food price dynamics in 36 developing countries where local monthly food price data is available. The focus of the research is to understand how weather and climate, as measured by variations in the growing season using satellite remote sensing, has affected agricultural production, food prices and access to food in agricultural societies. Economies are vulnerable to extreme weather at multiple levels. Subsistence small holders who hold livestock and consume much of the food they produce are vulnerable to food production variability. The broader society, however, is also vulnerable to extreme weather because of the secondary effects on market functioning, resource availability, and large-scale impacts on employment in trading, trucking and wage labor that are caused by weather-related shocks. Food price variability captures many of these broad impacts and can be used to diagnose weather-related vulnerability across multiple sectors. The paper will trace these connections using market-level data and analysis. The context of the analysis is the humanitarian aid community, using the guidance of the USAID Famine Early Warning Systems Network and the United Nation's World Food Program in their response to food security crises. These organizations have worked over the past three decades to provide baseline information on food production through satellite remote sensing data and agricultural yield models, as well as assessments of food access through a food price database. Econometric models and spatial analysis are used

Pricing Mining Concessions Based on Combined Multinomial Pricing Model

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Chang Xiao

2017-01-01

Full Text Available A combined multinomial pricing model is proposed for pricing mining concession in which the annualized volatility of the price of mineral products follows a multinomial distribution. First, a combined multinomial pricing model is proposed which consists of binomial pricing models calculated according to different volatility values. Second, a method is provided to calculate the annualized volatility and the distribution. Third, the value of convenience yields is calculated based on the relationship between the futures price and the spot price. The notion of convenience yields is used to adjust our model as well. Based on an empirical study of a Chinese copper mine concession, we verify that our model is easy to use and better than the model with constant volatility when considering the changing annualized volatility of the price of the mineral product.

Price elasticity of tobacco products among economic classes in India, 2011–2012

Science.gov (United States)

Selvaraj, Sakthivel; Srivastava, Swati; Karan, Anup

2015-01-01

Objectives The objectives of this study are to: (1) examine the pattern of price elasticity of three major tobacco products (bidi, cigarette and leaf tobacco) by economic groups of population based on household monthly per capita consumption expenditure in India and (2) assess the effect of tax increases on tobacco consumption and revenue across expenditure groups. Setting Data from the 2011–2012 nationally representative Consumer Expenditure Survey from 101 662 Indian households were used. Participants Households which consumed any tobacco or alcohol product were retained in final models. Primary outcome measures The study draws theoretical frameworks from a model using the augmented utility function of consumer behaviour, with a two-stage two-equation system of unit values and budget shares. Primary outcome measures were price elasticity of demand for different tobacco products for three hierarchical economic groups of population and change in tax revenue due to changes in tax structure. We finally estimated price elasticity of demand for bidi, cigarette and leaf tobacco and effects of changes in their tax rates on demand for these tobacco products and tax revenue. Results Own price elasticities for bidi were highest in the poorest group (−0.4328) and lowest in the richest group (−0.0815). Cigarette own price elasticities were −0.832 in the poorest group and −0.2645 in the richest group. Leaf tobacco elasticities were highest in the poorest (−0.557) and middle (−0.4537) groups. Conclusions Poorer group elasticities were the highest, indicating that poorer consumers are more price responsive. Elasticity estimates show positive distributional effects of uniform bidi and cigarette taxation on the poorest consumers, as their consumption is affected the most due to increases in taxation. Leaf tobacco also displayed moderate elasticities in poor and middle tertiles, suggesting that tax increases may result in a trade-off between consumption decline and

Pricing Strategies for CD-ROM Products.

Science.gov (United States)

Rowley, J. E.

1994-01-01

Pricing strategies for subscriptions and licenses for CD-ROMs are different for single users and networks. The basic components of pricing strategies are charges for subscription, connect line, display/print, telecommunication, session rate, special commands, and special services. Highlights selected supplier pricing strategies for single users…

ANALYSIS OF SUPPLY RESPONSE AND PRICE RISK ON RICE PRODUCTION IN NIGERIA

Directory of Open Access Journals (Sweden)

Opeyemi Eyitayo Ayinde

2017-03-01

Full Text Available  Nigeria, like most African countries, has engaged in agricultural liberalization since 1986 in the hope that reforms emphasizing price incentives will encourage producers to respond. Thus far, the reforms seem to have introduced greater uncertainty into the market given increasing rates of price volatility. This study amongst other things therefore seeks to determine and model the responsiveness of rice supply to price risk in Nigeria. Statistical information on domestic and imported quantities of rice was obtained for 41 years (1970 to 2011 from various sources, such as the Food and Agriculture Organization (FAO database, Federal Ministry of Agriculture statistical bulletins, Central Bank of Nigeria statistical bulletins and National Bureau of Statistic (NBS. Data were analyzed using equilibrium output supply function, co-integration models, and vector autoregressive distributed lag model. Rice importation was statistically significant and changes in output were also responsive to changes in price. The results indicate that producers are more responsive not only to price and non-price factor but also to price risk and exchange rate. It is therefore imperative to reduce the effects of price risk as to increase the response of producer to supply by bridging the gap in production

Beyond excise taxes: a systematic review of literature on non-tax policy approaches to raising tobacco product prices.

Science.gov (United States)

Golden, Shelley D; Smith, Margaret Holt; Feighery, Ellen C; Roeseler, April; Rogers, Todd; Ribisl, Kurt M

2016-07-01

Raising the price of tobacco products is considered one of the most effective ways to reduce tobacco use. In addition to excise taxes, governments are exploring other policies to raise tobacco prices and minimise price dispersion, both within and across price tiers. We conducted a systematic review to determine how these policies are described, recommended and evaluated in the literature. We systematically searched six databases and the California Tobacco Control library for English language studies or reports, indexed on or before 18 December 2013, that included a tobacco keyword (eg, cigarette), policy keyword (eg, legislation) and a price keyword (eg, promotion). We identified 3067 abstracts. Two coders independently reviewed all abstracts and identified 56 studies or reports that explicitly described a public policy likely to impact the retail price of tobacco products through non-tax means. Two coders independently identified tobacco products targeted by policies described, recommendations for implementing policies and empirical assessments of policy impacts. The most prevalent non-tax price policies were price promotion restrictions and minimum price laws. Few studies measured the impact of non-tax policies on average prices, price dispersion or disparities in tobacco consumption, but the literature includes suggestions for crafting policies and preparing for legal challenges or tobacco industry opposition. Price-focused evaluations of well-implemented non-tax price policies are needed to determine whether they can deliver on their promise to raise prices, reduce price dispersion and serve as an important complement to excise taxes. 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/

Prices over the Product Life Cycle: Implications for Quality-Adjustment and the Measurement of Inflation

OpenAIRE

Daniel Melser; Iqbal A. Syed

2013-01-01

The paper explores the extent to which products follow systematic pricing patterns over their life cycle and the impact this has on the measurement of inflation. Using a large US scanner data set on supermarket products and applying exible regression methods, we find that on average prices decline as items age. This life cycle price change is often attributed to quality difference in the construction of CPI as items are replaced due to disappearance and at sample rotations. This introduces a ...

Oil Market and Prices Prospects for 2014

Directory of Open Access Journals (Sweden)

Mariana Papatulica

2013-10-01

Full Text Available The international crude oil prices started the year 2014 within parameters comparable to those of the precedent year: WTI (USA recorded 92 $/barrel, on the American spot market, considered a minimum value for the last 5 weeks, while Brent (Great Britain had a more stable evolution, on the spot Rotterdam market, staying around a value of 107,50 $/barrel. Despite analysts’ forecasts, which during the last 3 years staked on a lower oil price, as a consequence of the spectacular increase in non-OPEC oil production, namely of shale oil, the international oil price, namely that of Brent, closed each of the last 3 years around the same level, of 108 $/barrel. As for 2014, the great majority of oil analysts estimates again a decline of oil prices, as a result of a significant rise of oil offer globally, which will greatly surpass the demand rise.

The Effects of High and Volatile Oil Prices

International Nuclear Information System (INIS)

Artus, Patrick; Autume, Antoine d'; Chalmin, Philippe; Chevalier, Jean-Marie; Coeure, Benoit; Kalantizs, Yannick; Klein, Caroline; Guesnerie, Roger; Callonnec, Gael; Gaudin, Thomas; Moisan, Francois; Lescaroux, Francois; Clerc, Marie; Marcus, Vincent; Lalanne, Guy; Pouliquen, Erwan; Simon, Olivier; Mignon, Valerie

2010-01-01

demand into play (this is estimated at around 0.2 in the short term and around 0.4 over the longer term for fuel demand) and possibly caused behavioural changes such as those seen in France and described in the report. The other explanation is related to energy and environmental policies, which have helped reduce oil demand. However, the strong growth expected in emerging markets is likely to increase global demand for oil by several million barrels per day by 2014. This reflects the expectation that the number of cars on the road worldwide will double by 2030, and it seems unlikely that tougher environmental constraints will contain these trends. Half of this growth will come from Asia. Such an increase in global oil demand will only be sustainable if it is accompanied by higher prices that will enable the exploitation of new unconventional oil fields or fields with high production costs. As regards volatility, the authors first repeat that there are real determinants at play: the level of oil prices encourages or discourages investment in production capacity. Low oil prices slow capacity investments and therefore limit future supply, which then causes prices to rise, thereby providing an incentive to invest and develop supply. However, neither these (endogenous) irregularities in the investment programs of oil companies and exporting countries nor changing demand trends alone can account for the sharp rise in prices between 2002 and 2008 and the very sudden drop that followed in July-August 2008. A number of observers believe that the explanation lies in speculation on the oil market. The report's authors sift through all the arguments for and against this theory. While it is undeniable that speculation has developed on the oil futures market, the authors question two key points: was this speculation really focused on an oil price rally, and could it have such a significant retroactive effect on spot prices? Their conclusions recognise that speculation was indeed

Value based pricing: the least valued pricing strategy

OpenAIRE

Hoenen, Bob

2017-01-01

Pricing has been one of the least researched topics in marketing, although within these pricing strategies: cost-plus pricing is considered as the leading pricing strategy worldwide. Why should companies use such an unprofitable strategy, where fighting for a higher market share due to low prices is more a rule than exception? VBP is one of the most underestimated strategies by organizations. The definition of VBP is: 'value pricing applies to products that have the potential of being differe...

Tomorrow's Energy Prices: An Analysis of System, Actors and Shaping Factors. Crude price drop and its consequences

International Nuclear Information System (INIS)

Chevalier, Jean-Marie; Chauvin, Dominique

2017-01-01

If one sector in recent decades has been a byword for how difficult it is to anticipate future developments at the global level, it has been the energy sector. We have seen fears over the dangers of a hydrocarbon shortage, the announcement of 'peak oil' and a boom in shale gas and oil. Forecasts based on major trends within the field have been revised as non-conventional sources with a substantial impact on price levels have emerged. Added to this is the need to confront climate change and hence to revamp our modes of energy production to give an enhanced role to renewables. In such a context, as Jean-Marie Chevalier stresses here, it is quite tricky to say how energy prices will develop or how energy production systems will change. This is why, in addition to the overview of possible developments in the prices of oil, natural gas and coal which this article provides, it particularly stresses the many elements of uncertainty that still prevail. Chevalier demonstrates the multiplicity of factors - and actor - involved in the way energy systems and prices develop and highlights the key elements that will play a role in enhancing or curbing those developments in the medium-to-long term. (author)

Hedonic Retail Beef and Pork Product Prices

OpenAIRE

Parcell, Joseph L.; Schroeder, Ted C.

2007-01-01

Consumer-level hedonic models are estimated to determine factors affecting retail pork and beef meat cuts. Results indicate that brand premium and discount varies across private, national, and store brands and that brand premium varies across meat cuts carrying the same brand name. Product size discounts are linear for beef and nonlinear for pork, meat items on sale are significantly discounted to non-sale items, specialty stores typically will not garner higher prices than supermarket/grocer...

JOINT DETERMINATION OF PRICE, WAR RANTY LENGTH AND PRODUCTION QUANTITY FOR NEW PRODUCTS UNDER FREE RENEWAL WARRANTY POLICY

Directory of Open Access Journals (Sweden)

K. Jeyakumar

2010-03-01

Full Text Available An optimal business strategy which integrates the decisions, such as pricing, production quantity, and custom er service, in or der to maximize profit is vital for any manufacturing industry. Post sale factors like warranty, spare parts availability, maintenance, service and cost play an important role in the sale of a product. As better warranty signals higher product quality which provides greater assurance to customers, warranty is an important factor in marketing new products. In this paper, a decision model with the price, warranty length and production quantity of a product as decision variables to maximize profit based on the pre-determined product life cycle is presented. The study considers free renewal warranty policy for producers in the static sales market. The expected number of renewals based on the warranty length is derived for lognormally distributed products. The effect of model parameters on the profit is studied.

A multi-product green supply chain under government supervision with price and demand uncertainty

Science.gov (United States)

Hafezalkotob, Ashkan; Zamani, Soma

2018-05-01

In this paper, a bi-level game-theoretic model is proposed to investigate the effects of governmental financial intervention on green supply chain. This problem is formulated as a bi-level program for a green supply chain that produces various products with different environmental pollution levels. The problem is also regard uncertainties in market demand and sale price of raw materials and products. The model is further transformed into a single-level nonlinear programming problem by replacing the lower-level optimization problem with its Karush-Kuhn-Tucker optimality conditions. Genetic algorithm is applied as a solution methodology to solve nonlinear programming model. Finally, to investigate the validity of the proposed method, the computational results obtained through genetic algorithm are compared with global optimal solution attained by enumerative method. Analytical results indicate that the proposed GA offers better solutions in large size problems. Also, we conclude that financial intervention by government consists of green taxation and subsidization is an effective method to stabilize green supply chain members' performance.

Sensitivity of district heating system operation to heat demand reductions and electricity price variations: A Swedish example

International Nuclear Information System (INIS)

Åberg, M.; Widén, J.; Henning, D.

2012-01-01

In the future, district heating companies in Sweden must adapt to energy efficiency measures in buildings and variable fuel and electricity prices. Swedish district heating demands are expected to decrease by 1–2% per year and electricity price variations seem to be more unpredictable in the future. A cost-optimisation model of a Swedish local district heating system is constructed using the optimisation modelling tool MODEST. A scenario for heat demand changes due to increased energy efficiency in buildings, combined with the addition of new buildings, is studied along with a sensitivity analysis for electricity price variations. Despite fears that heat demand reductions will decrease co-generation of clean electricity and cause increased global emissions, the results show that anticipated heat demand changes do not increase the studied system's primary energy use or global CO 2 emissions. The results further indicate that the heat production plants and the fuels used within the system have crucial importance for the environmental impact of district heat use. Results also show that low seasonal variations in electricity price levels with relatively low winter prices promote the use of electric heat pumps. High winter prices on the other hand promote co-generation of heat and electricity in CHP plants. -- Highlights: ► A MODEST optimisation model of the Uppsala district heating system is built. ► The impact of heat demand change on heat and electricity production is examined. ► An electricity price level sensitivity analysis for district heating is performed. ► Heat demand changes do not increase the primary energy use or global CO 2 emissions. ► Low winter prices promote use of electric heat pumps for district heating production.

Junk Food, Health and Productivity: Taste, Price, Risk and Rationality

OpenAIRE

Levy, Amnon

2006-01-01

Junk-food consumption, health and productivity are analyzed within an expectedlifetime- utility-maximizing framework in which the probability of living and productivity rise with health and health deteriorate with the consumption of junkfood. So long that the junk food’s relative taste-price differential is positive, the rational diet deviates from the physiologically optimal and renders the levels of health and productivity lower than the maximal. Taxing junk-food can eliminate this discrepa...

Dynamic Pricing of New Products in Competitive Markets: A Mean-Field Game Approach

OpenAIRE

Chenavaz, Régis; Paraschiv, Corina; Turinici, Gabriel

2017-01-01

Dynamic pricing of new products has been extensively studied in monopolistic and oligopolistic markets. But, the optimal control and differential game tools used to investigate the pricing behavior on markets with a finite number of firms are not well-suited to model competitive markets with an infinity of firms. Using a mean-field games approach, this paper examines dynamic pricing policies in competitive markets, where no firm exerts market power. The theoretical setting is based on a diffu...

A cross-country study of cigarette prices and affordability: evidence from the Global Adult Tobacco Survey.

Science.gov (United States)

Kostova, Deliana; Chaloupka, Frank J; Yurekli, Ayda; Ross, Hana; Cherukupalli, Rajeev; Andes, Linda; Asma, Samira

2014-01-01

To describe the characteristics of two primary determinants of cigarette consumption: cigarette affordability and the range of prices paid for cigarettes (and bidis, where applicable) in a set of 15 countries. From this cross-country comparison, identify places where opportunities may exist for reducing consumption through tax adjustments. Self-response data from 45,838 smokers from 15 countries, obtained from the Global Adult Tobacco Survey (GATS) 2008-2011. Using self-response data on individual cigarette expenditure and consumption, we construct a measure of the average cigarette price smokers pay for manufactured cigarettes (and bidis, where applicable) in 15 countries. We use these prices to evaluate cigarette affordability and the range of prices available in each country. These survey-derived measures of cigarette price and affordability are uniquely suited for cross-country comparison because they represent each country's distinctive mix of individual consumption characteristics such as brand choice, intensity of consumption, and purchasing behavior. In this sample of countries, cigarettes are most affordable in Russia, which has the most room for tobacco tax increase. Affordability is also relatively high in Brazil and China for cigarettes, and in India and Bangladesh for bidis. Although the affordability of cigarettes in India is relatively low, the range of cigarette prices paid is relatively high, providing additional evidence to support the call for simplifying the existing tax structure and reducing the width of price options. China has both high affordability and wide price ranges, suggesting multiple opportunities for reducing consumption through tax adjustments.

Impact of the oil price and fiscal facilities on offshore mining at the Dutch Continental Shelf

International Nuclear Information System (INIS)

Cate, Arie ten; Mulder, Machiel

2007-01-01

The surge in the oil price has raised questions about the magnitude of global reserves of oil. According to some analysts, the current high oil prices indicate a looming decline in the global production of oil. Others believe, however, that the increased level of the oil price encourages exploration and production activities, bringing the oil price to a lower equilibrium level in the near future. In this paper, we assess the impact of the unit profit (depending on the oil price) as well as fiscal facilities on the level of exploration and development drillings in the Dutch Continental Shelf. We conducted an econometric analysis of exploration and development drillings in the Dutch Continental Shelf over the period 1981-2003. Except a few fiscal changes, the regulatory framework for offshore activities in the Netherlands, the so-called 'small fields policy' was unchanged in this period. We find that the expected unit profit based on a moving average of the oil price significantly explains the level of both exploration and development drillings. In addition, the analysis suggests that fiscal facilities have only a temporary effect on exploration activities but are more important for development activities. We conclude that the oil price is a major economic incentive for activities of the mining industry

Global production through 2005

International Nuclear Information System (INIS)

Foreman, N.E.

1996-01-01

Two companion studies released recently should provide great food for thought among geo-political strategists and various national governments. If predictions contained in these Petroconsultants studies of oil and gas production trends for the next 10 years are realized, there will be great repercussions for net exporters and importers, alike. After analyzing and predicting trends within each of the world's significant producing nations for the 1996--2005 period, the crude oil and condensate report concludes tat global production will jump nearly 24%. By contrast, worldwide gas output will leap 40%. The cast of characters among producers and exporters that will benefit from these increases varies considerably for each fuel. On the oil side, Russia and the OPEC members, particularly the Persian Gulf nations, will be back in the driver's seat in terms of affecting export and pricing patterns. On the gas side, the leading producers will be an interesting mix of mostly non-OPEC countries. The reemergence of Persian Gulf oil producers, coupled with an anticipated long-term decline among top non-OPEC producing nations should present a sobering picture to government planners within large net importers, such as the US. They are likely to find themselves in much the same supply trap as was experienced in the 1970s, only this time the dependence on foreign oil supplies will be much worse. Gas supplies will not be similarly constrained, and some substitution for oil is probable. Here, two articles, ''World oil industry is set for transition'' and ''Worldwide gas surges forward in next decade,'' present a summary of the findings detailed in Petroconsultants' recent studies

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.

The analysis of indiference and the price elasticity of demand between different categories of agricultural products

Directory of Open Access Journals (Sweden)

Vukadinović Predrag

2017-01-01

Full Text Available In this paper, the analysis of the price elasticity of demand of four different categories of agricultural products in the Republic of Serbia was described. Differentiating the price and demand of these products by sales points, and using the least squares approximation method, the elasticity for all different agricultural categories was expressed in the functional form. According to this, the coefficients of elasticity of the price and demand were computed and between different agricultural categories were analyzed. The results we obtained show that the market of agricultural products in Serbia is mostly inelastic because the coefficients of inelasticity and indifference of demand to change of prices, are dominant. The influence of factors on the elasticity of demand that are not of price character, proved to be very pronounced. The relationship of the two segments of agricultural market (markets and shops was also analysed and it was demonstrated that these two segments have a slight correlation.

Pricing Power of Agricultural Products under the Background of Small Peasant Management and Information Asymmetry

Institute of Scientific and Technical Information of China (English)

Dexuan LI

2016-01-01

From the background of small peasant management and information asymmetry,this paper introduced the middle profit sharing model and discussed influence factors and ownership of pricing power of agricultural products. It obtained following results:( i) the transaction scale has positive effect on farmer’s pricing power of agricultural products,while the competitor’s transaction scale has negative effect on it,so does the cost for information search;( ii) under the condition of small peasant management system,farmer is in a relatively weak position in the distribution of pricing power of agricultural products,due to factors such as small transaction scale,information asymmetry and farmer’s weak negotiation ability;( iii) through cooperative game,farmer and buyers can share cooperative surplus at the agreed ratio;( iv) the introduction of self-organizing specialized farmers cooperatives is favorable for solving the problem of pricing power of agricultural products,and possible problems,such as " collective action dilemma" and " fake cooperatives" in the cooperative development process can be solved by internal and external division of labor and specialization of cooperatives.

Measuring global gasoline and diesel price and income elasticities

International Nuclear Information System (INIS)

Dahl, Carol A.

2012-01-01

Price and income elasticities of transport fuel demand have numerous applications. They help forecast increases in fuel consumption as countries get richer, they help develop appropriate tax policies to curtail consumption, help determine how the transport fuel mix might evolve, and show the price response to a fuel disruption. Given their usefulness, it is understandable why hundreds of studies have focused on measuring such elasticities for gasoline and diesel fuel consumption. In this paper, I focus my attention on price and income elasticities in the existing studies to see what can be learned from them. I summarize the elasticities from these historical studies. I use statistical analysis to investigate whether income and price elasticities seem to be constant across countries with different incomes and prices. Although income and price elasticities for gasoline and diesel fuel are not found to be the same at high and low incomes and at high and low prices, patterns emerge that allow me to develop suggested price and income elasticities for gasoline and diesel demand for over one hundred countries. I adjust these elasticities for recent fuel mix policies, and suggest an agenda of future research topics. - Research highlights: ► Surveyed econometric studies of transport fuel demand. ► Developed price elasticities of demand for gasoline and diesel fuel for 120 countries. ► Developed income elasticities of demand for gasoline and diesel fuel for 120 countries. ► Suggested a research agenda for future work.

Energy prices and agricultural commodity prices: Testing correlation using copulas method

International Nuclear Information System (INIS)

Koirala, Krishna H.; Mishra, Ashok K.; D'Antoni, Jeremy M.; Mehlhorn, Joey E.

2015-01-01

The linear relationships between energy prices and prices for agricultural commodities such as corn and soybeans may have been affected, over the last several years, by policy legislations in the farm sector, the Energy Independence and Security Act of 2007, and the Renewable Fuel Standard Program for 2014. Using high-frequency data and newer methodology, this study investigates dependence between agricultural commodity futures prices and energy futures prices. Results reveal that agricultural commodity and energy future prices are highly correlated and exhibit positive and significant relationship. Findings from this study highlight that an increase in energy price increases the price of agricultural commodities. - Highlights: • Energy policy mandates production of 15 billion gallons of corn ethanol by 2015. • Energy-intensive agriculture has a link between energy sector and crop production costs. • We investigate correlation between energy prices and agricultural commodity prices. • Agricultural commodity and energy future prices are highly correlated. • Increase in energy price increases the price of agricultural commodity

A Diffusion Model Incorporating Product Benefits, Price, Income and Information

OpenAIRE

Dan Horsky

1990-01-01

We start by assuming that a major benefit of many new durable products such as dishwashers and microwave ovens is time savings. Others, such as VCRs, also enhance the value of our leisure time. Using a household production framework we demonstrate that a utility maximizing individual will have a reservation price for the product which is a function of the product benefits and his wage rate. By assuming that the wage rate has an extreme value distribution across the population, we are able to ...

Students' Demand for Smartphones: Structural Relationships of Product Features, Brand Name, Product Price and Social Infuence

Science.gov (United States)

Suki, Norazah Mohd

2013-01-01

Purpose: The study aims to examine structural relationships of product features, brand name, product price and social influence with demand for Smartphones among Malaysian students'. Design/methodology/approach: Data collected from 320 valid pre-screened university students studying at the pubic higher learning institution in Federal Territory of…

Pulp & paper markets cope with high energy prices and growth in Asia : markets for paper, paperboard and woodpulp, 2005-2006

Science.gov (United States)

Peter J. Ince

2006-01-01

\\tPulp and paper markets in the UNECE region were influenced by higher energy prices and demand growth in Asia in 2005 and 2006. Important developments in Europe included the launching of the EU Emissions Trading Scheme, which was followed by substantial increases in electrical energy prices. High global energy prices pushed up costs of production and prices for pulp...

Global product development

DEFF Research Database (Denmark)

Taylor, Thomas Paul; Ahmed-Kristensen, Saeema

2016-01-01

Selecting key performance indicators in conventional product development is a challenging task for project management and is compound by global product development. Informed from the findings of two in depth case studies conducted with large Danish manufacturing companies, in this paper we develo...

Designing an agricultural vegetative waste-management system under uncertain prices of treatment-technology output products.

Science.gov (United States)

Broitman, D; Raviv, O; Ayalon, O; Kan, I

2018-05-01

Setting up a sustainable agricultural vegetative waste-management system is a challenging investment task, particularly when markets for output products of waste-treatment technologies are not well established. We conduct an economic analysis of possible investments in treatment technologies of agricultural vegetative waste, while accounting for fluctuating output prices. Under a risk-neutral approach, we find the range of output-product prices within which each considered technology becomes most profitable, using average final prices as the exclusive factor. Under a risk-averse perspective, we rank the treatment technologies based on their computed certainty-equivalent profits as functions of the coefficient of variation of the technologies' output prices. We find the ranking of treatment technologies based on average prices to be robust to output-price fluctuations provided that the coefficient of variation of the output prices is below about 0.4, that is, approximately twice as high as that of well-established recycled-material markets such as glass, paper and plastic. We discuss some policy implications that arise from our analysis regarding vegetative waste management and its associated risks. Copyright © 2018 Elsevier Ltd. All rights reserved.

To Cooperate or Not? An Analysis of Complementary Product Pricing in Green Supply Chain

Directory of Open Access Journals (Sweden)

Jie Wei

2018-05-01

Full Text Available This paper investigates the green supply chain pricing problem when two manufacturers sell complementary products to one retailer. Considering the manufacturers’ cooperation or noncooperation strategies, we first give the centralized pricing model as a benchmark. According to market power among the supply chain, we analyze two types of supply chains: supplier-led type where the green driving factor comes from the suppliers and retailer-led type where the core member retailer leads the green supply chain. We then give two decentralized pricing models through considering strategic cooperation between two manufacturers and different structures. Corresponding closed-form expressions for equilibrium pricing strategies are established. Finally, many valuable managerial results are acquired through comparing the profits and equilibrium decisions of these models. Our paper shows that consumers are indifferent as to who is the leader of the two echelons when the manufacturers adopt non-cooperative action; the two complementary products get the same optimal wholesale/retail prices, maximum retail margins, and maximum demands regardless of the manufacturers’ cooperation or noncooperation strategies.

Pricing-Decision and Coordination Contract considering Product Design and Quality of Recovery Product in a Closed-Loop Supply Chain

OpenAIRE

Qingming Zou; Guangyu Ye

2015-01-01

In a closed-loop supply chain consisting of a manufacturer and a retailer, this paper studies the pricing strategies and coordination mechanism of supply chain when the remanufacturing cost is random caused by the proportion of reusability parts in design stage and quality condition of recycling product. The results show that the wholesale price and retail price are negative correlation, while the recycling rate and total profit of supply chain system are positive correlation with the proport...

Product Bundling and Shared Information Goods: A Pricing Exercise

Science.gov (United States)

Morrison, William G.

2016-01-01

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

Global experience curves for wind farms

International Nuclear Information System (INIS)

Junginger, M.; Faaij, A.; Turkenburg, W.C.

2005-01-01

In order to forecast the technological development and cost of wind turbines and the production costs of wind electricity, frequent use is made of the so-called experience curve concept. Experience curves of wind turbines are generally based on data describing the development of national markets, which cause a number of problems when applied for global assessments. To analyze global wind energy price development more adequately, we compose a global experience curve. First, underlying factors for past and potential future price reductions of wind turbines are analyzed. Also possible implications and pitfalls when applying the experience curve methodology are assessed. Second, we present and discuss a new approach of establishing a global experience curve and thus a global progress ratio for the investment cost of wind farms. Results show that global progress ratios for wind farms may lie between 77% and 85% (with an average of 81%), which is significantly more optimistic than progress ratios applied in most current scenario studies and integrated assessment models. While the findings are based on a limited amount of data, they may indicate faster price reduction opportunities than so far assumed. With this global experience curve we aim to improve the reliability of describing the speed with which global costs of wind power may decline

Currency risk and prices of oil and petroleum products: a simulation with a quantitative model

International Nuclear Information System (INIS)

Aniasi, L.; Ottavi, D.; Rubino, E.; Saracino, A.

1992-01-01

This paper analyzes the relationship between the exchange rates of the US Dollar against the four major European currencies and the prices of oil and its main products in those countries. In fact, the sensitivity of the prices to the exchange rate movements is of fundamental importance for the refining and distribution industries of importing countries. The result of the analysis shows that in neither free market conditions, as those present in Great Britain, France and Germany, nor in regulated markets, i.e. the italian one, do the variations of petroleum product prices fully absorb the variation of the exchange rates. In order to assess the above relationship, we first tested the order of co-integration of the time series of exchange rates of EMS currencies with those of international prices of oil and its derivative products; then we used a transfer-function model to reproduce the quantitative relationships between those variables. Using these results, we then reproduced domestic price functions with partial adjustment mechanisms. Finally, we used the above model to run a simulation of the deviation from the steady-state pattern caused by exchange-rate exogenous shocks. 21 refs., 5 figs., 3 tabs

Entropy, pricing and productivity of pumped-storage

Science.gov (United States)

Karakatsanis, Georgios; Tyralis, Hristos; Tzouka, Katerina

2016-04-01

Pumped-storage constitutes today a mature method of bulk electricity storage in the form of hydropower. This bulk electricity storability upgrades the economic value of hydropower as it may mitigate -or even neutralize- stochastic effects deriving from various geophysical and socioeconomic factors, which produce numerous load balance inefficiencies due to increased uncertainty. Pumped-storage further holds a key role for unifying intermittent renewable (i.e. wind, solar) units with controllable non-renewable (i.e. nuclear, coal) fuel electricity generation plants into integrated energy systems. We develop a set of indicators for the measurement of performance of pumped-storage, in terms of the latter's energy and financial contribution to the energy system. More specifically, we use the concept of entropy in order to examine: (1) the statistical features -and correlations- of the energy system's intermittent components and (2) the statistical features of electricity demand prediction deviations. In this way, the macroeconomics of pumped-storage emerges naturally from its statistical features (Karakatsanis et al. 2014). In addition, these findings are combined to actual daily loads. Hence, not only the amount of energy harvested from the pumped-storage component is expected to be important, but the harvesting time as well, as the intraday price of electricity varies significantly. Additionally, the structure of the pumped-storage market proves to be a significant factor as well for the system's energy and financial performance (Paine et al. 2014). According to the above, we aim at postulating a set of general rules on the productivity of pumped-storage for (integrated) energy systems. Keywords: pumped-storage, storability, economic value of hydropower, stochastic effects, uncertainty, energy systems, entropy, intraday electricity price, productivity References 1. Karakatsanis, Georgios et al. (2014), Entropy, pricing and macroeconomics of pumped-storage systems

Industrial Pricing: Theory and Managerial Practice

OpenAIRE

Peter M. Noble; Thomas S. Gruca

1999-01-01

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

Globalization's effects on world agricultural trade, 1960–2050

Science.gov (United States)

Anderson, Kym

2010-01-01

Recent globalization has been characterized by a decline in the costs of cross-border trade in farm and other products. It has been driven primarily by the information and communication technology revolution and—in the case of farm products—by reductions in governmental distortions to agricultural production, consumption and trade. Both have boosted economic growth and reduced poverty globally, especially in Asia. The first but maybe not the second of these drivers will continue in coming decades. World food prices will depend also on whether (and if so by how much) farm productivity growth continues to outpace demand growth and to what extent diets in emerging economies move towards livestock and horticultural products at the expense of staples. Demand in turn will be driven not only by population and income growth, but also by crude oil prices if they remain at current historically high levels, since that will affect biofuel demand. Climate change mitigation policies and adaptation, water market developments and market access standards particularly for transgenic foods will add to future production, price and trade uncertainties. PMID:20713399

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...

The third oil price surge. What's different this time?

International Nuclear Information System (INIS)

Kesicki, Fabian

2010-01-01

The period from 2003 to 2008 was marked by an oil price increase comparable to the two oil price crises in the 1970s. This paper looks in detail at the situation of the oil price crises 30 years ago and compares them along various aspects on the demand and supply side with the recent price increase to identify similarities and differences. While both oil price crises in 1973 and 1979/1980 were ultimately caused by supply actions of members of the Organisation of Petroleum Exporting Countries (OPEC), all three oil price crises were preceded by high demand growth. Other aspects that favoured a high oil price in all three cases were low investments in new oil fields, as a consequence low spare capacity, and a weak US dollar. In addition, the recent oil price surge has been characterised by a high global refinery utilisation and refineries that did not adapt fast enough to the rising demand for lighter oil products. Moreover, broader geopolitical uncertainties, combined with risks associated with the oil trade helped push the oil price into a triple-digit zone. Speculation played only a limited and temporary role in accelerating price movements during the recent price increase. (author)

Impact of tobacco tax and price policies on tobacco use in China ...

International Development Research Centre (IDRC) Digital Library (Canada)

It aims to fill critical gaps in tobacco tax and price research in China, an area ... to improve livestock vaccine development and production to benefit farmers across the Global South. ... Building resilience through socially equitable climate action.

Optimal Prices and Trade-in Rebates for Durable, Remanufacturable Products

OpenAIRE

Saibal Ray; Tamer Boyaci; Necati Aras

2005-01-01

Most durable products have two distinct types of customers: first-time buyers and customers who already own the product, but are willing to replace it with a new one or purchase a second one. Firms usually adopt a price-discrimination policy by offering a trade-in rebate only to the replacement customers to hasten their purchase decisions. Any return flow of products induced by trade-in rebates has the potential to generate revenues through remanufacturing operations. In this paper, we study ...

Economic Exposure to Oil Price Shocks and the Fragility of Oil-Exporting Countries

Directory of Open Access Journals (Sweden)

Toon Vandyck

2018-04-01

Full Text Available From a price range between 100 and 120 USD (U.S. dollars per barrel in 2011–2014, the crude oil price fell from mid-2014 onwards, reaching a level of 26 USD per barrel in January 2016. Here we assess the economic consequences of this strong decrease in the oil price. A retrospective analysis based on data of the past 25 years sheds light on the vulnerability of oil-producing regions to the oil price volatility. Gross domestic product (GDP and government revenues in many Gulf countries exhibit a strong dependence on oil, while more diversified economies improve resilience to oil price shocks. The lack of a sovereign wealth fund, in combination with limited oil reserves, makes parts of Sub-Saharan Africa particularly vulnerable to sustained periods of low oil prices. Next, we estimate the macroeconomic impacts of a 60% oil price drop for all regions in the world. A numerical simulation yields a global GDP increase of roughly 1% and illustrates how the regional impact on GDP relates to oil export dependence. Finally, we reflect on the broader implications (such as migration flows of macroeconomic responses to oil prices and look ahead to the challenge of structural change in a world committed to limiting global warming.

Another look on the relationships between oil prices and energy prices

International Nuclear Information System (INIS)

Lahiani, Amine; Miloudi, Anthony; Benkraiem, Ramzi; Shahbaz, Muhammad

2017-01-01

This paper employs the Quantile Autoregressive Distributed Lags (QARDL) model developed recently by Cho et al. (2015) to investigate the pass-through of oil prices to a set of energy prices. This approach allows analyzing simultaneously short-term connections and long-run cointegrating relationships across a range of quantiles. It also provides insights on the short-run predictive power of oil prices in predicting energy prices while accounting for the cointegration between oil prices and each of the considered energy prices in low, medium and high quantiles. Two key findings emerge from this paper. First, all considered energy prices are shown to be cointegrated with oil price across quantiles meaning that a stationaryequilibriumrelationship exists between single energy price and oil price. Second, we find evidence that oil price is a significant predictor of individual petroleum products prices and natural gas in the short run. This paper has important policy implications for forecasters, energy policy-makers and portfolio managers. - Highlights: • The pass-through of oil prices to a set of energy prices is investigated for US economy. • All considered energy prices are shown to be cointegrated with oil price across quantiles. • Oil price is a significant predictor of individual petroleum products prices in the short run. • Oil price also predicts natural gas prices in the short run.

48 CFR 252.216-7000 - Economic price adjustment-basic steel, aluminum, brass, bronze, or copper mill products.

Science.gov (United States)

2010-10-01

...-basic steel, aluminum, brass, bronze, or copper mill products. 252.216-7000 Section 252.216-7000 Federal... adjustment—basic steel, aluminum, brass, bronze, or copper mill products. As prescribed in 216.203-4-70(a... Mill Products (JUL 1997) (a) Definitions. As used in this clause— Established price means a price which...

Tuberculosis drug issues: prices, fixed-dose combination products and second-line drugs.

Science.gov (United States)

Laing, R O; McGoldrick, K M

2000-12-01

Access to tuberculosis drugs depends on multiple factors. Selection of a standard list of TB drugs to procure is the first step. This paper reviews the advantages and disadvantages of procuring and using fixed-dose combination (FDC) products for both the intensive and continuation phases of treatment. The major advantages are to prevent the emergence of resistance, to simplify logistic management and to reduce costs. The major disadvantage is the need for the manufacturers to assure the quality of these FDCs by bioavailability testing. The paper reports on the inclusion of second-line TB drugs in the 1999 WHO Essential Drug List (EDL). The need to ensure that these drugs are used within established DOTS-Plus programs is stressed. The price of TB drugs is determined by many factors, including producer prices, local taxes and duties as well as mark-ups and fees. TB drug prices for both the public and private sectors from industrialized and developing countries are reported. Price trends over time are also reported. The key findings of this study are that TB drug prices have generally declined in developing countries while they have increased in developed countries, both for the public and private sectors. Prices vary between countries, with the US paying as much as 95 times the price paid in a specific developing country. The prices of public sector first-line TB drugs vary little between countries, although differences do exist due to the procurement methods used. The price of tuberculin, a diagnostic agent, has increased dramatically in the US, with substantial inter-country variations in price. The paper suggests that further research is necessary to identify the reasons for the price disparities and changes over time, and suggests methods which can be used by National Tuberculosis Programme managers to ensure availability of quality assured TB drugs at low prices.

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.

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...

Pricing-based revenue management for flexible products on a network

NARCIS (Netherlands)

Sierag, DIrk

2017-01-01

This paper proposes and analyses a pricing-based revenue management model that allows flexible products on a network, with a non-trivial extension to group reservations. Under stochastic demand the problem can be solved using dynamic programming, though it suffers from the curse of dimensionality.

Application of Derivatives Market for Controlling Risks of Commodity Prices

Directory of Open Access Journals (Sweden)

Rasuolė Drazdauskienė

2015-05-01

Full Text Available The issue of raw milk procurement cost level and fluctuation which inhibits strengthening negotiating positions of dairy product fabricants and probability of them staying competitive in the European Union, is examined. Scientific literature that analyzes risks of staple prices is overviewed in the article. The paper provides statistical data representing the situation of Lithuania in contrast with European Union rates. Global usage of prospective transactions and their possible influence on price regulation are analyzed. After examining statistical data and academic literature, conclusions are provided.

Trends and Possible Future Developments in Global Forest-Product Markets—Implications for the Swedish Forest Sector

Directory of Open Access Journals (Sweden)

Ragnar Jonsson

2011-01-01

Full Text Available This paper analyzes trends and possible future developments in global wood-product markets and discusses implications for the Swedish forest sector. Four possible futures, or scenarios, are considered, based on qualitative scenario analysis. The scenarios are distinguished principally by divergent futures with respect to two highly influential factors driving change in global wood-product markets, whose future development is unpredictable. These so-called critical uncertainties were found to be degrees to which: (i current patterns of globalization will continue, or be replaced by regionalism, and (ii concern about the environment, particularly climate change, related policy initiatives and customer preferences, will materialize. The overall future of the Swedish solid wood-product industry looks bright, irrespective of which of the four possible futures occurs, provided it accommodates the expected growth in demand for factory-made, energy-efficient construction components. The prospects for the pulp and paper industry in Sweden appear more ambiguous. Globalization is increasingly shifting production and consumption to the Southern hemisphere, adversely affecting employment and forest owners in Sweden. Further, technical progress in information and communication technology (ICT is expected to lead to drastic reductions in demand for newsprint and printing paper. Chemical pulp producers may profit from a growing bio-energy industry, since they could manufacture new, high-value products in integrated bio-refineries. Mechanical pulp producers cannot do this, however, and might suffer from higher prices for raw materials and electricity.

Pricing and sales tax collection policies for e-cigarette starter kits and disposable products sold online.

Science.gov (United States)

Cuomo, Raphael E; Miner, Angela; Mackey, Tim K

2015-10-23

Previous studies have examined marketing characteristics of e-cigarettes sold online and others have examined e-cigarettes pricing in retail (non-Internet) settings. This study expands on these findings by examining pricing and marketing characteristics of interest among e-cigarette online vendors. Structured web searches were conducted from August-September 2014 to identify popular e-cigarette Internet vendors. We then collected pricing data (e-cigarette starter kits and disposables), sales tax collection policies and other vendor marketing characteristics. Average price for each product category was then compared with marketing characteristics using linear regression for continuous variables and independent t-tests for binary variables. Our searches yielded 44 e-cigarette Internet vendors of which 77% (n = 34) sold a total of 238 starter kit offerings (Mprice = $55.89). Half (n = 22) sold disposable types of e-cigarettes (Mprice = $7.17 p/e-cigarette) at a price lower than reported elsewhere in retail settings. Average disposable e-cigarette prices were also significantly higher for vendors displaying more health warning notices (P = 0.001). Only 46% disclosed sales tax collection policies and only 39% collected sales tax in their state of business. This study expands on current understanding of e-cigarette pricing and availability online and finds variation in e-cigarette pricing may be influenced by type of product, use of online health warnings and vendor sales tax collection policies. It also finds that e-cigarette online access and availability may be impacted by a combination of pricing and marketing strategies uniquely different from e-cigarette retail settings that requires further study and targeted policy-making. [Cuomo RE, Miner A, Mackey TK. Pricing and sales tax collection policies for e-cigarette starter kits and disposable products sold online. Drug Alcohol Rev 2015]. © 2015 Australasian Professional Society on Alcohol and

The Effect of Vegetation Productivity on Millet Prices in the Informal Markets of Mali, Burkina Faso and Niger

Energy Technology Data Exchange (ETDEWEB)

Brown, M.E. [Department of Geography, University of Maryland, NASA Goddard Space Flight Center, Code 923, Greenbelt, MD 20771 (United States); Pinzon, J.E. [Science Systems and Applications Inc., NASA Goddard Space Flight Center, Code 923, Greenbelt, MD (United States); Prince, S.D. [Department of Geography, University of Maryland, College Park, MD (United States)

2006-09-15

Systematic evaluation of food security throughout the Sahel has been attempted for nearly two decades. Food security analyses have used both food prices to determine the ability of the population to access food, and satellite-derived vegetation indices that measure vegetation production to establish how much food is available each year. The relationship between these two food security indicators is explored here using correspondence analysis and through the use of Markov chain models. Two sources of quantitative data were used: 8 km normalized difference vegetation index (NDVI) data from the Advanced Very High Resolution Radiometers (AVHRR) carried on the NOAA series of satellites, and monthly millet prices from 445 markets in Mali, Niger and Burkina Faso. The results show that the growing season vegetation production is related to the price of millet at the annual and the seasonal time scales. If the growing season was characterized by erratic, sparse rainfall, it resulted in higher prices, and well-distributed, abundant rainfall resulted in lower prices. The correspondence between vegetation production and millet prices is used to produce maps of millet prices for West Africa.

The Effects of Oil Price Shocks on IIP and CPI in Emerging Countries

Directory of Open Access Journals (Sweden)

Yukino Sakashita

2016-09-01

Full Text Available In this paper, we investigate the effects of oil price shocks on the production and price level in five emerging countries through comparison with the United States, using a two-block structural VAR model of the global crude oil market proposed by Kilian and Park (see International Economic, vol. 50, 2009, pp. 1267–1287. Our main finding is that the effect of oil price shocks on the index of the industrial production (IIP and consumer price index (CPI in emerging countries also depends on where the changes fundamentally come from (this is also the case for the United States. We also found that some emerging countries showed unique impulse response patterns, the shapes of which are different from those of the United States and there are differences in impulse response patterns among emerging countries.

Product pricing in TAC SCM using adaptive real-time probability of acceptance estimations based on economic regimes

NARCIS (Netherlands)

Hogenboom, A.C.; Ketter, W.; Dalen, van Jan; Kaymak, U.; Collins, J.; Gupta, Alok

2009-01-01

Dynamic product pricing is a vital, yet non-trivial task in complex supply chains -- especially in case of limited visibility of the market environment. We propose to differentiate product pricing strategies using economic regimes. In our approach, we use economic regimes (characterizing market

Evaluating adaptation and the production development of Finnish agriculture in climate and global change

Directory of Open Access Journals (Sweden)

Heikki Sakari Lehtonen

2015-10-01

on production, land use and farm income in Finland. The results suggest that falling crop yields, if realized due to low prices and restrictive policies, will result in decreasing crop and livestock production and increasing nutrient surplus. Slowly increasing crop yields could stabilise production and increase farm income. Significantly higher crop prices and yields are required, however, for any marked increase in production in Finland. Cereals production would increase relatively more than livestock production, if there were high prices for agricultural products. This is explained by abundant land resources, a high opportunity cost of labour and policies maintaining current dairy and beef production.

Will India set the price for teleradiology?

Science.gov (United States)

McLean, Thomas R

2009-06-01

With a lower cost for labour, Indian teleradiologists have an absolute price advantage in the global market. However, because trade is determined by comparative advantage rather than absolute price advantage, India's ability to export teleradiology services may be limited. The issue is, can the 'India price' for teleradiology set the price for these services in the USA? Review of the economic literature concerning the global teleradiology market. Currently, minimal information exists concerning the economic of global teleradiology market. However, a Ricardian analysis of this market suggests that India's ability to export teleradiology may be limited by rising opportunity costs (i.e. social unrest). Similarly, Heckscher-Ohlin analysis suggests that a lack of English-speaking physicians will limit India's ability to export teleradiology services to the USA. It appears unlikely that India will gain sufficient market share in the USA to determine the price of teleradiology services.

An analysis of price and volatility transmission in butter, palm oil and crude oil markets

Directory of Open Access Journals (Sweden)

Dennis Bergmann

2016-11-01

Full Text Available Abstract Recent changes to the common agricultural policy (CAP saw a shift to greater market orientation for the EU dairy industry. Given this reorientation, the volatility of EU dairy commodity prices has sharply increased, creating the need to develop proper risk management tools to protect farmers’ income and to ensure stable prices for processors and consumers. In addition, there is a perceived threat that these commodities may be replaced by cheaper substitutes, such as palm oil, as dairy commodity prices become more volatile. Global production of palm oil almost doubled over the last decade while butter production remained relatively flat. Palm oil also serves as a feedstock for biodiesel production, thus establishing a new link between agricultural commodities and crude oil. Price and volatility transmission effects between EU and World butter prices, as well as between butter, palm oil and crude oil prices, before and after the Luxembourg agreement, are analysed. Vector autoregression (VAR models are applied to capture price transmission effects between these markets. These are combined with a multivariate GARCH model to account for potential volatility transmission. Results indicate strong price and volatility transmission effects between EU and World butter prices. EU butter shocks further spillover to palm oil volatility. In addition, there is evidence that oil prices spillover to World butter prices and World butter volatility.

Energy at what price? Energy markets

International Nuclear Information System (INIS)

Favennec, J.P.; Amic, E.; Darmois, G.

2006-01-01

In 2005, the whole world had to stand a real energy shock due to the rise of oil, gas and electricity prices. The perspective of a possible shortage, even at the prospect of several decades, has led to a deep change of the world energy market. In this context, this book supplies a clear and didactical presentation of the mechanisms of petroleum, gas and electricity markets, with their advantages and limitations. At the time of a globalization of economy, the book analyzes the consequences of markets deregulation on the energy prices and tries to answer several main questions: why such a price volatility? Who will take the risk of investing now? Will the energy actors of the present day concentration be in a dominating position? Content: 1 - energy, markets and energy markets; 2 - crude oil and petroleum product markets; 3 - gas markets; 4 - electric power markets; 5 - perspectives. Glossary. Index. (J.S.)

Prediction of seasonal climate-induced variations in global food production

DEFF Research Database (Denmark)

Iizumi, Toshichika; Sakuma, Hirofumi; Yokozawa, Masayuki

2013-01-01

attention to the cropping forecasts of important food-exporting countries as well as to their own domestic food production. Given the increased volatility of food markets and the rising incidence of climatic extremes affecting food production, food price spikes may increase in prevalence in future years(2......Consumers, including the poor in many countries, are increasingly dependent on food imports(1) and are thus exposed to variations in yields, production and export prices in the major food-producing regions of the world. National governments and commercial entities are therefore paying increased...

How Do Companies Use the Price Strategies

Institute of Scientific and Technical Information of China (English)

赵亚男; 赵翠玲

2011-01-01

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

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...

Uncertain long-run emissions targets, CO2 price and global energy transition. A general equilibrium approach

International Nuclear Information System (INIS)

Durand-Lasserve, Olivier; Smeers, Yves; Pierru, Axel

2010-01-01

The persistent uncertainty about mid-century CO 2 emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO 2 price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO 2 policy scenarios. In these scenarios, economic agents know that credible long-run CO 2 emissions targets will be set in 2020, with two possible outcomes: either a hard cap or a soft cap. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories - with two branches after 2020 - for prices and quantities of energy commodities and CO 2 emissions permits. The impact of uncertain long-run CO 2 emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios. (author)

Internalizing external environmental costs of agriculture into product prices, Case study for milk and potatoes

NARCIS (Netherlands)

Masselink, Dirk Jan

2007-01-01

Society has to pay large amounts of money to compensate for the environmental damages caused by farm emissions. These external costs are not fully accounted for in product prices and internalization of these external costs into the cost price of agricultu

Russian oil prices: courting the world market

International Nuclear Information System (INIS)

Khartukov, E.M.

1995-01-01

The export and oil pricing of Russian crude was discussed. Russian crude and oil product exports are not yet wholly competitive with world oil markets. It was suggested that to do so, would be neither desirable nor actually possible at present. The reason for this is related to Russia's export duties regime and Russia's trade with its neighbouring countries which include the former Soviet republics. In the first half of 1995, the average border price of crude destined for those countries was US$75.04/tonne as opposed to US$114.77/tonne for crude exported to 'far-abroad', hard-currency markets. A breakdown of Russia's export duties for liquid fuels and a typical breakdown of export and domestic prices for Russian oil was provided. Russian crude is considerably under-priced mainly because of the poor state of the national refining industry which is in need of radical modernization. It was suggested that instead of globalization, it would be more appropriate to redirect the priorities of Russian energy policy towards defining optimal use of Russia's available energy potential, and rationalizing its domestic price structure first, which is the root cause of the national price problem. 5 refs., 5 tabs., 2 figs

Joint decision of pricing and order quantity by considering product substitution in dual channel supply chain

Science.gov (United States)

Widodo, Erwin

2017-11-01

Dual channel supply chain (DCSC) has been attracting many researchers' attention. Their contributions mainly are in two folds, namely pricing problem and inventory policy. However, research to address both pricing and inventory problems simultaneously are still scarce. Meanwhile in recent competitive market, product substitution is an unavoidable practice in fulfilling customer demand when the main product is unavailable. Thus how to decide price and order quantity by considering product substitution under DCSC setting is an interesting topic to address. In this paper, corresponding mathematical model incorporating such problem is proposed. This model consists of objective function measuring sales revenue and inventory cost, and some constraints to assure positive profit margin, interplaying price between online and offline channel, and positive demand. Two pricing schemes, namely Vertical Nash and Stackelberg Leadership are evaluated. The result shows that in any situation of substitution level, Vertical Nash solution provides higher financial performance than that under Stackelberg Leadership. In addition, this work's results have also revealed that there exist some threshold values differentiating when it is better off to apply Vertical Nash scenario an, when Stackelberg Leadership scenario is preferable.

World oil prices: Up or down in 1995? and beyond?

International Nuclear Information System (INIS)

Browning, R.E.

1994-01-01

After a brief review of historical oil prices up to 1993-94, the factors influencing future prices are discussed. A survey of oil supply and demand over 1986-1993 shows oil demand has risen in Asia and fallen in the former Soviet Union and central/eastern Europe (FSU/CEE). Non-OPEC oil supply fell from 42.1 million bbl/d (MMBD) in 1986 to 40.6 MMBD in 1993, reflecting declines in Russian and U.S. production. Total OPEC production rose in the same period from 18.3 MMBD to 24.7 MMBD. OPEC production will continue to be dominant in determining prices, and demand in growing Asian economies and the FSU/CEE countries will be the most important and uncertain demand-side factor. If 7.5 MMBD of new OPEC capacity comes on stream by 2000 and OPEC production averages 31 MMBD in 2000, the utilization rate for OPEC oil at that time would be about the same as in 1973-79 and 1994. World oil production costs vary considerably by region, with the USA, North Sea, and Canada having relatively high costs; yet even in those regions, costs have been declining. A global weighted average cost based on 1993 production is $8-9/bbl. Fiscal and financial factors affecting oil prices include the need for oil revenue among oil producers. This need will put pressure on FSU economies to continue exports, although increases in such exports will require new infrastructure. In any case, the world oil market is likely to see a continuing trend to regarding oil as a commodity, which tends to reduce the control that physical participants exert on price-setting. Long-term real prices are not expected to rise but will likely remain volatile, cycling around $13/bbl. Spot prices in 1995 for West Texas Intermediate are forecast to be in the $16-20/bbl range. 4 figs., 4 tabs

Measuring medicine prices in Peru: validation of key aspects of WHO/HAI survey methodology.

Science.gov (United States)

Madden, Jeanne M; Meza, Edson; Ewen, Margaret; Laing, Richard O; Stephens, Peter; Ross-Degnan, Dennis

2010-04-01

To assess the possibility of bias due to the limited target list and geographic sampling of the World Health Organization (WHO)/Health Action International (HAI) Medicine Prices and Availability survey used in more than 70 rapid sample surveys since 2001. A survey was conducted in Peru in 2005 using an expanded sample of medicine outlets, including remote areas. Comprehensive data were gathered on medicines in three therapeutic classes to assess the adequacy of WHO/HAI's target medicines list and the focus on only two product versions. WHO/HAI median retail prices were compared with average wholesale prices from global pharmaceutical sales data supplier IMS Health. No significant differences were found in overall availability or prices of target list medicines by retail location. The comprehensive survey of angiotensin-converting enzyme inhibitor, anti-diabetic, and anti-ulcer products revealed that some treatments not on the target list were costlier for patients and more likely to be unavailable, particularly in remote areas. WHO/HAI retail prices and IMS wholesale prices were strongly correlated for higher priced products, and weakly correlated for lower priced products (which had higher estimated retailer markups). The WHO/HAI survey approach strikes an appropriate balance between modest research costs and optimal information for policy. Focusing on commonly used medicines yields sufficient and valid results. Surveyors elsewhere should consider the limits of the survey data as well as any local circumstances, such as scarcity, that may call for extra field efforts.

Carbon Pricing: Design, Experiences and Issues

DEFF Research Database (Denmark)

Carbon Pricing reflects upon and further develops the ongoing and worthwhile global debate into how to design carbon pricing, and how to utilize the financial proceeds in the best possible way for society. The world has recently witnessed a significant downward adjustment in fossil fuel prices...

Labour in Global Production Networks

DEFF Research Database (Denmark)

Lund-Thomsen, Peter; Nadvi, Khalid; Chan, Anita

A critical challenge facing developing country producers is to meet international labour standards and codes of conduct in order to engage in global production networks. Evidence of gains for workers from compliance with such standards and codes remains limited and patchy. This paper focuses...... on the global football industry, a sector dominated by leading global brands who manage dispersed global production networks. It assesses the work conditions for football stitchers engaged in different forms of work organisation, factories, stitching centres, and home-based settings, in Pakistan, India......, and China. It draws on detailed qualitative primary field research with football stitching workers and producers in these three countries. The paper explains how, and why, work conditions of football stitchers differ across these locations through an analytical framework that interweaves both global...

Index of Real Sector Returns as Price Benchmarking for Islamic Banking Products

Directory of Open Access Journals (Sweden)

Researchers of Islamic Banking Department

2012-01-01

Full Text Available Objective – Islamic Banking is closely related to the real sector. Then, its operation should reflect the real sector which is expected to contribute to the sustainable economic growth. Nevertheless, Islamic banks are still benchmarking the price of their products (profit sharing and sales on interest rate. This is as an implication of the implementation of the dual banking system. Moreover, the small portion of Islamic banking compared to the total national banks causes the competitiveness of Islamic banking product in terms of pricing has a high correlation with the interest rate of conventional counterpart. This phenomenon indicates the need to find.Method – This research employed library research method since this paper relies on secondary data by thoroughly reviewing the most relevant literature. The paper attempt to propose a pricing indicator which is based on the real sector activities as the root of Islamic banking operations.Result – Theoretically, this indicator can reflect the real rate of return of every industry sector. In addition, it can help Bank Indonesia to monitor the real sector performance and analyze the possible gap between real sector activities and financial sector. Furthermore, when the benchmark of real rate of real sector return is available, the return index of Islamic banking reflecting the profit sharing performance of the whole Islamic banking industry can be formulated. This concept is different with other indexes which are corresponding to the price of financial assets.Conclusion – In general, return index of real sector as a reference for Islamic banking product pricing is expected to define the way of non-interest return analysis, to calculate the non-interest return of selected sectors that becomes the focus of analysis using Cash Recovery Rates (CRR, forming an index of industry by sector in the second stage, by doing a certain weighting of those companies, to analyze the relationship between macro

Managing the Newsvendor Modeled Product System with Random Capacity and Capacity-Dependent Price

Directory of Open Access Journals (Sweden)

Qingying Li

2015-01-01

Full Text Available We consider a newsvendor modeled product system, where the firm provides products to the market. The supply capacity of the product is random, so the firm receives either the amount of order quantity or the realized capacity, whichever is smaller. The market price is capacity dependent. We consider two types of production cost structures: the procurement case and the in-house production case. The firm pays for the received quantity in the former case and for the ordered quantity in the latter case. We obtain the optimal order quantities for both cases. Comparing with the traditional newsvendor model, we find that the optimal order quantity in both the procurement case and the in-house production case are no greater than that in the traditional newsvendor model with a fixed selling price. We also find that the optimal order quantity for the procurement case is greater than that for the in-house production case. Numerical study is conducted to investigate the sensitivity of the optimal solution versus the distribution of the random capacity/demand.

Enhancing medicine price transparency through price information mechanisms.

Science.gov (United States)

Hinsch, Michael; Kaddar, Miloud; Schmitt, Sarah

2014-05-08

Medicine price information mechanisms provide an essential tool to countries that seek a better understanding of product availability, market prices and price compositions of individual medicines. To be effective and contribute to cost savings, these mechanisms need to consider prices in their particular contexts when comparing between countries. This article discusses in what ways medicine price information mechanisms can contribute to increased price transparency and how this may affect access to medicines for developing countries. We used data collected during the course of a WHO project focusing on the development of a vaccine price and procurement information mechanism. The project collected information from six medicine price information mechanisms and interviewed data managers and technical experts on key aspects as well as observed market effects of these mechanisms.The reviewed mechanisms were broken down into categories including objective and target audience, as well as the sources, types and volumes of data included. Information provided by the mechanisms was reviewed according to data available on medicine prices, product characteristics, and procurement modalities. We found indications of positive effects on access to medicines resulting from the utilization of the reviewed mechanisms. These include the uptake of higher quality medicines, more favorable results from contract negotiations, changes in national pricing policies, and the decrease of prices in certain segments for countries participating in or deriving data from the various mechanisms. The reviewed mechanisms avoid the methodological challenges observed for medicine price comparisons that only use national price databases. They work with high quality data and display prices in the appropriate context of procurement modalities as well as the peculiarities of purchasing countries. Medicine price information mechanisms respond to the need for increased medicine price transparency and have the

Causes for an asymmetric relation between the price of crude oil and refined petroleum products

International Nuclear Information System (INIS)

Kaufmann, R.K.; Laskowski, C.

2005-01-01

We revisit the issue of asymmetries in the relation between the price of crude oil and refined petroleum products in the United States. An econometric analysis of monthly data indicates that the asymmetric relationship between the price of crude oil and motor gasoline is generated by refinery utilization rates and inventory behavior. The asymmetric relation between the price of crude oil and home heating oil probably is generated by contractual arrangements between retailers and consumers. Together, these results imply that price asymmetries may be generated by efficient markets. Under these conditions, there is little justification for policy interventions to reduce or eliminate price asymmetries in motor gasoline and home heating oil markets. (author)

MANAGERIAL ACCOUNTING AND PRICING FOR SALE OF GOODS AND PRODUCTS IN TRADE AND PUBLIC CATERING

Directory of Open Access Journals (Sweden)

TUHARI Tudor

2017-06-01

Full Text Available The most relevant problems of accounting and control in the sphere of commodity exchange are the reliable determination of the cost of mass goods and products during their storage and sale, as well as the operational orientation in pricing, taking into account the demand and supply in the interests of obtaining the necessary profit at an appropriate level of profitability. In the case of the sum stock accounting method for the goods in the retail trade and public catering, the especially important element of the accounting is the process of formation of retail sales prices and calculation of production cost of sales and profit of the enterprise. The article mainly focuses on the method of determining the retail sales prices for goods and products in the area of trade and public catering, respectively, through the use of trade mark-ups in percentage terms in relation not to the purchase, but to retail sales prices including VAT. Determining the cost of sales and its accounting is recommended to adjust only at the end of the month based on the calculation of the average percentage of trade mark-up (margin.

Produced water: Market and global trends - oil production - water production - choice of technology

International Nuclear Information System (INIS)

Robertson, Steve

2006-01-01

The presentation discusses various aspects of the world oil production, the energy demand, the future oil supply, the oil prices and the production growth. Some problems with produced water are also discussed as well as aspects of the market for produced water technology (tk)

Global maize production, utilization, and consumption.

Science.gov (United States)

Ranum, Peter; Peña-Rosas, Juan Pablo; Garcia-Casal, Maria Nieves

2014-04-01

Maize (Zea mays), also called corn, is believed to have originated in central Mexico 7000 years ago from a wild grass, and Native Americans transformed maize into a better source of food. Maize contains approximately 72% starch, 10% protein, and 4% fat, supplying an energy density of 365 Kcal/100 g and is grown throughout the world, with the United States, China, and Brazil being the top three maize-producing countries in the world, producing approximately 563 of the 717 million metric tons/year. Maize can be processed into a variety of food and industrial products, including starch, sweeteners, oil, beverages, glue, industrial alcohol, and fuel ethanol. In the last 10 years, the use of maize for fuel production significantly increased, accounting for approximately 40% of the maize production in the United States. As the ethanol industry absorbs a larger share of the maize crop, higher prices for maize will intensify demand competition and could affect maize prices for animal and human consumption. Low production costs, along with the high consumption of maize flour and cornmeal, especially where micronutrient deficiencies are common public health problems, make this food staple an ideal food vehicle for fortification. © 2014 New York Academy of Sciences. The World Health Organization retains copyright and all other rights in the manuscript of this article as submitted for publication.

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...

Determination of the fuel component in the cost price of the energy production in NPP

International Nuclear Information System (INIS)

Lakov, M.; Velev, V.

1997-01-01

An approach is proposed for the determination of the fuel component in the cost price of the nuclear units production with regards of the difference between the time of the fuel consumption and the energy production. This method gives the opportunity for fuel consumption prognostication, as well as an optimization of both short and long term fueling regimes. This approach permits current update of the economic conditions and the pre-history of the investments. It can be used both for the determination of the fuel component and the full cost price of the energy production in NPPs.(author)

The Temptation of Zero Price: Event-Related Potentials Evidence of How Price Framing Influences the Purchase of Bundles

Directory of Open Access Journals (Sweden)

Haiying Ma

2018-04-01

Full Text Available Studies have revealed that consumers are susceptible to price framing effect, a common cognitive bias, due to their limited capacity in processing information. The effect of price framing in a bundling context and its neural correlates, however, remain not clearly characterized. The present study applied the event-related potentials (ERPs approach to investigate the role of price framing in information processing and purchase decision making in a bundling context. Three price frames were created with practically identical total prices (with a maximum difference of ¥0.1, which was about equal to 0.016 US dollars for a bundle with two components, a focal product and a tie-in product. In normal price condition (NP, both the focal and tie-in products were offered at a normal discounted price; in zero price condition (ZP, the tie-in product was offered free while the total price of the bundle remained the same as NP; whereas in low price condition (LP, the tie-in product was offered at a low token price (¥0.1, and the focal product shared the same price as the focal product of ZP. The behavioral results showed a higher purchase rate and a shorter reaction time for ZP in contrast to NP. Neurophysiologically, enlarged LPP amplitude was elicited by ZP relative to NP, suggesting that ZP triggered a stronger positive affect that could motivate decision to buy. Thus, this study provides both behavioral and neural evidence for how different price framing information is processed and ultimately gives rise to price framing effect in purchase decision making.

The Temptation of Zero Price: Event-Related Potentials Evidence of How Price Framing Influences the Purchase of Bundles.

Science.gov (United States)

Ma, Haiying; Mo, Zan; Zhang, Huijun; Wang, Cuicui; Fu, Huijian

2018-01-01

Studies have revealed that consumers are susceptible to price framing effect, a common cognitive bias, due to their limited capacity in processing information. The effect of price framing in a bundling context and its neural correlates, however, remain not clearly characterized. The present study applied the event-related potentials (ERPs) approach to investigate the role of price framing in information processing and purchase decision making in a bundling context. Three price frames were created with practically identical total prices (with a maximum difference of ¥0.1, which was about equal to 0.016 US dollars) for a bundle with two components, a focal product and a tie-in product. In normal price condition (NP), both the focal and tie-in products were offered at a normal discounted price; in zero price condition (ZP), the tie-in product was offered free while the total price of the bundle remained the same as NP; whereas in low price condition (LP), the tie-in product was offered at a low token price (¥0.1), and the focal product shared the same price as the focal product of ZP. The behavioral results showed a higher purchase rate and a shorter reaction time for ZP in contrast to NP. Neurophysiologically, enlarged LPP amplitude was elicited by ZP relative to NP, suggesting that ZP triggered a stronger positive affect that could motivate decision to buy. Thus, this study provides both behavioral and neural evidence for how different price framing information is processed and ultimately gives rise to price framing effect in purchase decision making.

The Temptation of Zero Price: Event-Related Potentials Evidence of How Price Framing Influences the Purchase of Bundles

Science.gov (United States)

Ma, Haiying; Mo, Zan; Zhang, Huijun; Wang, Cuicui; Fu, Huijian

2018-01-01

Studies have revealed that consumers are susceptible to price framing effect, a common cognitive bias, due to their limited capacity in processing information. The effect of price framing in a bundling context and its neural correlates, however, remain not clearly characterized. The present study applied the event-related potentials (ERPs) approach to investigate the role of price framing in information processing and purchase decision making in a bundling context. Three price frames were created with practically identical total prices (with a maximum difference of ¥0.1, which was about equal to 0.016 US dollars) for a bundle with two components, a focal product and a tie-in product. In normal price condition (NP), both the focal and tie-in products were offered at a normal discounted price; in zero price condition (ZP), the tie-in product was offered free while the total price of the bundle remained the same as NP; whereas in low price condition (LP), the tie-in product was offered at a low token price (¥0.1), and the focal product shared the same price as the focal product of ZP. The behavioral results showed a higher purchase rate and a shorter reaction time for ZP in contrast to NP. Neurophysiologically, enlarged LPP amplitude was elicited by ZP relative to NP, suggesting that ZP triggered a stronger positive affect that could motivate decision to buy. Thus, this study provides both behavioral and neural evidence for how different price framing information is processed and ultimately gives rise to price framing effect in purchase decision making. PMID:29731705

An obsolete dichotomy? Rethinking the rural–urban interface in terms of food security and production in the global south.

Science.gov (United States)

Lerner, Amy M; Eakin, Hallie

2011-01-01

The global food system is coming under increasing strain in the face of urban population growth. The recent spike in global food prices (2007–08) provoked consumer protests, and raised questions about food sovereignty and how and where food will be produced. Concurrently, for the first time in history the majority of the global population is urban, with the bulk of urban growth occurring in smaller-tiered cities and urban peripheries, or ‘peri-urban’ areas of the developing world. This paper discusses the new emerging spaces that incorporate a mosaic of urban and rural worlds, and reviews the implications of these spaces for livelihoods and food security. We propose a modified livelihoods framework to evaluate the contexts in which food production persists within broader processes of landscape and livelihood transformation in peri-urban locations. Where and how food production persists are central questions for the future of food security in an urbanising world. Our proposed framework provides directions for future research and highlights the role of policy and planning in reconciling food production with urban growth.

The global economic long-term potential of modern biomass in a climate-constrained world

Science.gov (United States)

Klein, David; Humpenöder, Florian; Bauer, Nico; Dietrich, Jan Philipp; Popp, Alexander; Bodirsky, Benjamin Leon; Bonsch, Markus; Lotze-Campen, Hermann

2014-07-01

Low-stabilization scenarios consistent with the 2 °C target project large-scale deployment of purpose-grown lignocellulosic biomass. In case a GHG price regime integrates emissions from energy conversion and from land-use/land-use change, the strong demand for bioenergy and the pricing of terrestrial emissions are likely to coincide. We explore the global potential of purpose-grown lignocellulosic biomass and ask the question how the supply prices of biomass depend on prices for greenhouse gas (GHG) emissions from the land-use sector. Using the spatially explicit global land-use optimization model MAgPIE, we construct bioenergy supply curves for ten world regions and a global aggregate in two scenarios, with and without a GHG tax. We find that the implementation of GHG taxes is crucial for the slope of the supply function and the GHG emissions from the land-use sector. Global supply prices start at 5 GJ-1 and increase almost linearly, doubling at 150 EJ (in 2055 and 2095). The GHG tax increases bioenergy prices by 5 GJ-1 in 2055 and by 10 GJ-1 in 2095, since it effectively stops deforestation and thus excludes large amounts of high-productivity land. Prices additionally increase due to costs for N2O emissions from fertilizer use. The GHG tax decreases global land-use change emissions by one-third. However, the carbon emissions due to bioenergy production increase by more than 50% from conversion of land that is not under emission control. Average yields required to produce 240 EJ in 2095 are roughly 600 GJ ha-1 yr-1 with and without tax.

The global economic long-term potential of modern biomass in a climate-constrained world

International Nuclear Information System (INIS)

Klein, David; Humpenöder, Florian; Bauer, Nico; Dietrich, Jan Philipp; Popp, Alexander; Leon Bodirsky, Benjamin; Bonsch, Markus; Lotze-Campen, Hermann

2014-01-01

Low-stabilization scenarios consistent with the 2 °C target project large-scale deployment of purpose-grown lignocellulosic biomass. In case a GHG price regime integrates emissions from energy conversion and from land-use/land-use change, the strong demand for bioenergy and the pricing of terrestrial emissions are likely to coincide. We explore the global potential of purpose-grown lignocellulosic biomass and ask the question how the supply prices of biomass depend on prices for greenhouse gas (GHG) emissions from the land-use sector. Using the spatially explicit global land-use optimization model MAgPIE, we construct bioenergy supply curves for ten world regions and a global aggregate in two scenarios, with and without a GHG tax. We find that the implementation of GHG taxes is crucial for the slope of the supply function and the GHG emissions from the land-use sector. Global supply prices start at $5 GJ −1 and increase almost linearly, doubling at 150 EJ (in 2055 and 2095). The GHG tax increases bioenergy prices by $5 GJ −1 in 2055 and by $10 GJ −1 in 2095, since it effectively stops deforestation and thus excludes large amounts of high-productivity land. Prices additionally increase due to costs for N 2 O emissions from fertilizer use. The GHG tax decreases global land-use change emissions by one-third. However, the carbon emissions due to bioenergy production increase by more than 50% from conversion of land that is not under emission control. Average yields required to produce 240 EJ in 2095 are roughly 600 GJ ha −1 yr −1 with and without tax. (letter)