Price bargaining and quantity bonus in developing economies

Consider a seller and a buyer bargaining over the price of an agricultural product in a developing economy. Think of the following common bargaining deal: the seller tries to persuade the buyer to accept a higher price and, in return, give the buyer a deal (i.e., extra units of the product for free). Why doesnÕt the seller just give the buyer a lower price instead of the deal? This paper provides an answer to this question. Although price can apparently replicate the use of quantity bonus (i.e., the free extra units), we argue that price bargaining per se limits the extent to which price can be used. Such bargaining deals are used because the seller can post them but cannot post prices. We explain why these sellers can post quantity bonuses. We give a condition under which the quantity bonus can replicate the equilibrium that would have obtained if the seller could directly post the price. We offer here a theory of bargaining deals.price bargaining, non-price competition, posted prices, quantity bonus

Exploring gastrointestinal variables affecting drug and formulation behavior: methodologies, challenges and opportunities

Various gastrointestinal (GI) factors affect drug and formulation behavior after oral administration, including GI transfer, motility, pH and GI fluid volume and composition. An in-depth understanding of these physiological and anatomical variables is critical for a continued progress in oral drug development. In this review, different methodologies (invasive versus non-invasive) to explore the impact of physiological variables on formulation behavior in the human GI tract are presented, revealing their strengths and limitations. The techniques mentioned allow for an improved understanding of the role of following GI variables: gastric emptying (magnetic resonance imaging (MRI), scintigraphy, acetaminophen absorption technique, ultrasonography, breath test, intraluminal sampling and telemetry), motility (MRI, small intestinal/colonic manometry and telemetry), GI volume changes (MRI and ultrasonography), temperature (telemetry) and intraluminal pH (intraluminal sampling and telemetry)