Chain-Store Competition: Customized vs. Uniform Pricing

Retail chains essentially practice one of two broad strategies in setting prices across their stores. The more straightforward is to set a chain- or country- wide price. Alternatively, managers of retail chains may customize prices to the store level according to local demand and competitive conditions. For example, a chain may price lower in a location with lower demand and/or more competition. However, despite having the ability to customize prices to local market conditions, some choose instead to commit to uniform pricing with a “one price policy” across their entire store network. As an illustration, we focus on UK supermarket chains. Is there an advantage to be gained from deliberately choosing not to price discriminate across locations? We show generally and illustrate through means of a specific model that there exists a strategic incentive to soften competition in competitive markets by committing not to customize prices at the store level and instead adopt uniform pricing across the store network, and to raise overall profits thereby. Furthermore, we characterize quite precisely the circumstances under which uniform pricing is, and is not, profitable and illustrate that under a range of circumstances uniform pricing may be the preferable strategy.Chain-store retailers ; price discrimination ; uniform pricing ; local pricing ; commitment

CHAIN-STORE PRICING FOR STRATEGIC ACCOMMODATION

Chain-stores now dominate most areas of retailing. While retailers may operate nationally or even internationally, the markets they compete in are largely local. How should they best operate pricing policy in respect of the different markets served - price uniformly across the local markets or on a local basis according to market conditions? We model this by allowing local market differences, with entry being inevitable in certain markets while being naturally or institutionally blockaded in others. We show that practising price discrimination is not always best for the chain-store. Competitive conditions exist under which uniform pricing can raise profits.Chain-store ; Pricing Policy ; Price Discrimination ; Local Markets

Mergers and Business Model Assimilation: Evidence from Low-Cost Airlines Takeovers

This paper examines mergers that lead to an almost immediate replacement of the target firm’s business model in favor of that of the acquiring firm. We examine the post-merger behavior of the two leading European dedicated low-cost airlines, EasyJet and Ryanair, each acquiring another low-cost airline, respectively Go Fly and Buzz. We find that both takeovers had an immediate and sustained impact on both the pricing structures and the extent of inter-temporal price schedules used on the acquired routes, with early booking fares noticeably reduced and only very late booking fares increased. The analysis suggests that the takeovers had a net beneficial effect as a consequence of the introduction of the acquiring firms’ business models and associated yield management pricing systems. .merger policy; Business model; Low-cost airline; Price discrimination; Yield management .

Japan and the East Asian financial crisis: patterns, motivations and instrumentalisation of Japanese regional economic diplomacy

At first sight, the East Asian financial crisis represents an instance of Japan failing the test of regional leadership - as evidenced by its abandonment of initial proposals for an Asian Monetary Fund (AMF) in the face of US and Chinese opposition in 1997. However, if a second look is taken, and one which is sensitised to the fundamental characteristics of its diplomacy, then Japan can be seen as far more effective in augmenting its regional leadership role than previously imagined. Indeed, this article demonstrates that Japanese policy-makers have resurrected, over the longer term and in different guises, AMF-like frameworks which provide a potential springboard for further regional cooperation. Hence, the aims of this article are twofold. The first is to demonstrate the overall efficacy of Japanese regional economic diplomacy, and its ability to control outcomes through steering East Asia towards enhanced monetary cooperation. The second is to explain the reasons behind Japan's distinctive policy approach towards the financial crisis and general lessons for understanding its foreign policy. The article seeks to do so by asking three fundamental questions about the 'what', 'why' and 'how' of Japan's regional role: 'what' in terms of the dominant behavioural patterns of Japan's economic diplomacy; 'why' in terms of the motivations for this behaviour; and 'how' in terms of Japan's instrumentalisation of its regional policy

Information enforcement in learning with graphics : improving syllogistic reasoning skills

This thesis is an investigation into the factors that contribute to good choices among graphical systems used in teaching, and the feasibility of implementing teaching software that uses this knowledge.The thesis describes a mathematical metric derived from a cognitive theory of human diagram processing. The theory characterises differences among representations by their ability to express information. The theory provides the factors and relationships needed to build the metric. It says that good representations are easily processed because they are more vivid, more tractable and less expressive, than poor representations.The metric is applied to abstract systems for teaching and learning syllogistic reasoning, TARSKI'S WORLD, EULER CIRCLES, VENN DIAGRAMS and CARROLL'S GAME OF LOGIC. A rank ordering reflects the value of each system predicted by the theory and the metric. The theory, the metric and the systems are then tested in empirical studies. Five studies involving sixty-eight learners, examined the benefit of software based on these abstract systems.Studies showed the theory correctly predicted learners' success with the circle systems and poorer performance with TARSKI'S WORLD. The metric showed small but clear differences in expressivity between the circle systems. Differences between results of the learners using the circle systems contradicted the predictions of the metric.Learners with mathematical training were better equipped and more successful at learning syllogistic reasoning with the systems. Performance of learners without mathematical training declined after using the software systems. Diagrams drawn by learners together with video footage collected during problem solving, led to a catalogue of errors, misconceptions and some helpful strategies for learning from graphical systems.A cognitive style test investigated the poor performance of non-mathematically trained learners. Learners with mathematics training showed serialist and versatile learning styles while learners without this training showed a holist learning style. This is consistent with the hypothesis that non-mathematically trained learners emphasise the use of semantic cues during learning and problem solving.A card-sorting task investigated learners' preferences for parts of the graphical lexicon used in the diagram systems. Preferences for the EULER lexicon increased difficulty in explaining the system's poor results in earlier studies. Video footage of learners using the systems in the final study illustrated useful learning strategies and improved performance with EULER while individual instruction was available.Further work describes a preliminary design for an adaptive syllogism tutor and other related work

Quantum Continuum Mechanics Made Simple

In this paper we further explore and develop the quantum continuum mechanics (CM) of [Tao \emph{et al}, PRL{\bf 103},086401] with the aim of making it simpler to use in practice. Our simplifications relate to the non-interacting part of the CM equations, and primarily refer to practical implementations in which the groundstate stress tensor is approximated by its Kohn-Sham version. We use the simplified approach to directly prove the exactness of CM for one-electron systems via an orthonormal formulation. This proof sheds light on certain physical considerations contained in the CM theory and their implication on CM-based approximations. The one-electron proof then motivates an approximation to the CM (exact under certain conditions) expanded on the wavefunctions of the Kohn-Sham (KS) equations. Particular attention is paid to the relationships between transitions from occupied to unoccupied KS orbitals and their approximations under the CM. We also demonstrate the simplified CM semi-analytically on an example system

Mesoscale monitoring of the soil freeze/thaw boundary from orbital microwave radiometry

A technique was developed for mapping the spatial extent of frozen soils from the spectral characteristics of the 10.7 to 37 GHz radiobrightness. Through computational models for the spectral radiobrightness of diurnally heated freesing soils, a distinctive radiobrightness signature was identified for frozen soils, and the signature was cast as a discriminant for unsupervised classification. In addition to large area images, local area spatial averages of radiobrightness were calculated for each radiobrightness channel at 7 meteorologic sites within the test region. Local area averages at the meteorologic sites were used to define the preliminary boundaries in the Freeze Indicator discriminate. Freeze Indicator images based upon Nimbus 7, Scanning Multichannel Microwave Radiometer (SMMR) data effectively map temporal variations in the freeze/thaw pattern for the northern Great Plains at the time scale of days. Diurnal thermal gradients have a small but measurable effect upon the SMMR spectral gradient. Scale-space filtering can be used to improve the spatial resolution of a freeze/thaw classified image

Retailer buyer power in European markets: lessons from grocery supply

Developments in Grocery Retailing and Associated Policy Issues Retailers represent the final and therefore the most visible point of the grocery supply chain for most consumers. Developments at this level consequently have a direct effect on consumer interests in relation to price, choice and quality of products on offer. In the last couple of decades the face of grocery retailing has changed significantly with the emergence of new, large-store formats and the increased prevalence of large retail chains. These developments have offered consumers increased shopping convenience through superstores offering one-stop shopping for food and other daily consumer goods.1 However, with consumers’ shopping habits changing in favour of these large-store formats the consequence has been a sharp decline in the number of traditional and specialist retailers. This pattern of development has been common across most of Europe

Many-body approach to infinite non-periodic systems: application to the surface of semi-infinite jellium

A method to implement the many-body Green function formalism in the GW approximation for infinite non periodic systems is presented. It is suitable to treat systems of known ``asymptotic'' properties which enter as boundary conditions, while the effects of the lower symmetry are restricted to regions of finite volume. For example, it can be applied to surfaces or localized impurities. We illustrate the method with a study of the surface of semi-infinite jellium. We report the dielectric function, the effective potential and the electronic self-energy discussing the effects produced by the screening and by the charge density profile near the surface.Comment: 11 pages, 4 figure