116,384 research outputs found

    Vertical integration and firm boundaries : the evidence

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    Since Ronald H. Coase's (1937) seminal paper, a rich set of theories has been developed that deal with firm boundaries in vertical or input–output structures. In the last twenty-five years, empirical evidence that can shed light on those theories also has been accumulating. We review the findings of empirical studies that have addressed two main interrelated questions: First, what types of transactions are best brought within the firm and, second, what are the consequences of vertical integration decisions for economic outcomes such as prices, quantities, investment, and profits. Throughout, we highlight areas of potential cross-fertilization and promising areas for future work

    Deep recommender engine based on efficient product embeddings neural pipeline

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    Predictive analytics systems are currently one of the most important areas of research and development within the Artificial Intelligence domain and particularly in Machine Learning. One of the "holy grails" of predictive analytics is the research and development of the "perfect" recommendation system. In our paper, we propose an advanced pipeline model for the multi-task objective of determining product complementarity, similarity and sales prediction using deep neural models applied to big-data sequential transaction systems. Our highly parallelized hybrid model pipeline consists of both unsupervised and supervised models, used for the objectives of generating semantic product embeddings and predicting sales, respectively. Our experimentation and benchmarking processes have been done using pharma industry retail real-life transactional Big-Data streams.Comment: 2018 17th RoEduNet Conference: Networking in Education and Research (RoEduNet

    Price Flexibility in Channels of Distribution: Evidence from Scanner Data

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    In this study, we empirically examine the extent of price rigidity using a unique store-level time series data set - consisting of (i) actual retail transaction prices, (ii) actual wholesale transaction prices which represent both the retailers' costs and the prices received by manufacturers, and (iii) a measure of manufacturers' costs - for twelve goods in two widely used consumer product categories. We simultaneously examine the extent of price rigidity for each of the twelve products at both, final goods and intermediate goods levels. We study two notions of price rigidity employed in the existing literature: (i) the frequency of price changes, and (ii) the response of prices to exogenous cost changes. We find that retail prices exhibit remarkable flexibility in terms of both notions of price rigidity. i.e., they change frequently and they seem to respond quickly and fully to cost changes. Furthermore, we find that retail prices respond not just to their direct costs, but also to the upstream manufacturers' costs, which further reinforces the extent of the retail price flexibility. At the intermediate goods level of the market, in contrast, we find relatively more evidence of rigidity in the response of manufacturers prices to cost changes. This despite the fact that wholesale prices change frequently and therefore exhibit flexibility according to the first notion of price rigidity.Price Flexibility, Price Rigidity, Final Goods Market, Intermediate Goods Market, Stages of Processing, Structural VAR, Scanner Data, Transaction Price Data, Frequency of Price Changes, Price Response to Exogeneous Cost Changes, Retail Price, Wholesale Price, New Keynesian Macroeconomics, How Markets Clear, Time Series Analysis, Orange Juice, Orange Juice Frozen Concentrate, Futures Market

    The interface between transactional and relational orientation in small service firm's marketing behaviour

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    This paper presents and discusses findings of a cross-country study of small service firm marketing behavior. These findings demonstrate that small service firms are flexible in the marketing approaches that they adopt. They reveal that such firms are transactional and relational orientated in their marketing activities and that for growing firms, marketing activities are used to create short-term transactions and form relations with key stakeholders. This finding implies that transactional and relationship marketing should be regarded as complementary. The findings presented also demonstrate that the marketing approach selected by participating small firms is determined by a range of customer characteristics of which repeat business is only one. An integrated framework containing elements of transactional and relational approaches is proposed as an appropriate way of describing the marketing behaviours of investigated firms

    House price momentum and strategic complementarity

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    House prices exhibit substantially more momentum, positive autocorrelation in price changes, than existing theories can explain. I introduce an amplification mechanism to reconcile this discrepancy. Sellers do not set a unilaterally high or low list price because they face a concave demand curve: increasing the price of an above-average-priced house rapidly reduces its sale probability, but cutting the price of a below-average-priced house only slightly improves its sale probability. The resulting strategic complementarity amplifies frictions because sellers gradually adjust their price to stay near average. I provide empirical evidence for concave demand using a quantitative search model that amplifies momentum two- to threefold
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