21,009 research outputs found
The Long Run, Market Power and Retail Pricing
The paper uses the Johansen cointegration approach to analyse long-run pricing strategies of pork and chicken retailers in Austria. Long-run retail pricing strategy is found to be dependent on market share and price elasticity of demand for product. A combination of mark-up pricing strategy for pork and a competitive pricing strategy for chicken is considered by retailers to yield maximum profit. Long-run price adjustment reveals linkages to pricing strategy. The versatility of the Johansen cointegration technique as a tool capable of analysing both competitive and imperfect market situations is also revealed. The paper recommends meat policy to be product specific rather than holistic.Market power, Markup pricing, Cointegration, Long run
Strategy bifurcation and spatial inhomogeneity in a simple model of competing sellers
We present a simple one-parameter model for spatially localised evolving
agents competing for spatially localised resources. The model considers selling
agents able to evolve their pricing strategy in competition for a fixed market.
Despite its simplicity, the model displays extraordinarily rich behavior. In
addition to ``cheap'' sellers pricing to cover their costs, ``expensive''
sellers spontaneously appear to exploit short-term favorable situations. These
expensive sellers ``speciate'' into discrete price bands. As well as variety in
pricing strategy, the ``cheap'' sellers evolve a strongly correlated spatial
structure, which in turn creates niches for their expensive competitors. Thus
an entire ecosystem of coexisting, discrete, symmetry-breaking strategies
arises.Comment: 6 pages, 6 figures, epl2; 1 new figure, include nash equilibrium
analysis, typo fixe
Towards Economic Models for MOOC Pricing Strategy Design
MOOCs have brought unprecedented opportunities of making high-quality courses
accessible to everybody. However, from the business point of view, MOOCs are
often challenged for lacking of sustainable business models, and academic
research for marketing strategies of MOOCs is also a blind spot currently. In
this work, we try to formulate the business models and pricing strategies in a
structured and scientific way. Based on both theoretical research and real
marketing data analysis from a MOOC platform, we present the insights of the
pricing strategies for existing MOOC markets. We focus on the pricing
strategies for verified certificates in the B2C markets, and also give ideas of
modeling the course sub-licensing services in B2B markets
The price-setting behavior of Austrian firms: some survey evidence
This paper explores the price-setting behavior of Austrian firms based on survey evidence. Our main result is that customer relationships are a major source of price stickiness in the Austrian economy. We also find that the majority of firms in our sample follows a timedependent pricing strategy. However, a substantial fraction of firms deviates from time-dependent pricing in the case of large shocks and switches to a state-dependent pricing strategy. In addition, we present evidence suggesting that the price response to various shocks is subject to asymmetries. JEL Classification: C25, E30price rigidity, price-setting behavior
Determinants of export performance in textile industries of Pakistan
This research is a correlation study of export performance determinants to investigate the interdependency between independent (Increase of pricing strategy adaptation, Increase of export intensity, Firm's commitment to exporting, Export market development, Export market competition, Past Pricing Strategy Adaptation, Past Export Performance Satisfaction, Past Export Intensity, Export market distance) and dependent variables (i.e. Expected Short-Term Export Performance improvement) of export performance. The framework is tested via a survey through questionnaire from industrial exporters of textile in Pakistan. Findings reveals that the past export performance satisfaction with r value reported is positive r=54.2% and p=0.002Export Performance; export; textile industries
Strategic Implications of Retail Pricing in the U.S. Fluid Milk Market
We explore brand level strategic interactions between skim/low fat and whole milk brands by estimating detailed price elasticity matrix using quadratic almost ideal demand system for eight major U.S. cities. Results of our analysis suggest that the market and demand behavior of skim/low fat and whole milk brands are different. Demand for skim/low fat milk is more elastic than in the case of whole milk. Highly inelastic demand for large number of Private label whole milk brands suggests 'loss leader' pricing strategy by the retailers. Such pricing strategy does not seem to be the norm in skim/low fat milk market.Agribusiness,
Making the Most of Your Samples
We study the problem of setting a price for a potential buyer with a
valuation drawn from an unknown distribution . The seller has "data"' about
in the form of i.i.d. samples, and the algorithmic challenge is
to use these samples to obtain expected revenue as close as possible to what
could be achieved with advance knowledge of .
Our first set of results quantifies the number of samples that are
necessary and sufficient to obtain a -approximation. For example,
for an unknown distribution that satisfies the monotone hazard rate (MHR)
condition, we prove that samples are
necessary and sufficient. Remarkably, this is fewer samples than is necessary
to accurately estimate the expected revenue obtained by even a single reserve
price. We also prove essentially tight sample complexity bounds for regular
distributions, bounded-support distributions, and a wide class of irregular
distributions. Our lower bound approach borrows tools from differential privacy
and information theory, and we believe it could find further applications in
auction theory.
Our second set of results considers the single-sample case. For regular
distributions, we prove that no pricing strategy is better than
-approximate, and this is optimal by the Bulow-Klemperer theorem.
For MHR distributions, we show how to do better: we give a simple pricing
strategy that guarantees expected revenue at least times the maximum
possible. We also prove that no pricing strategy achieves an approximation
guarantee better than
An Integrated Approach to Teaching Price Discrimination
Textbooks present the three 'degrees' of price discrimination as a sequence of independent pricing methods and consequently provide inadequate insight as to when a firm might adopt a particular pricing strategy. The paper describes a taxonomy of the various mechanisms of price discrimination, which can be used to teach monopolistic price discrimination in an integrated way. The pricing strategy adopted by firms is based on (i) the information on consumer demand available to it and (ii) whether the firm has the ability to conduct non-linear pricing. The paper proposes a method for ranking profit and efficiency levels under different price discrimination strategies. The proposed taxonomy is compared to the existing textbook approach.
Opportunity costs calculation in agent-based vehicle routing and scheduling
In this paper we consider a real-time, dynamic pickup and delivery problem with timewindows where orders should be assigned to one of a set of competing transportation companies. Our approach decomposes the problem into a multi-agent structure where vehicle agents are responsible for the routing and scheduling decisions and the assignment of orders to vehicles is done by using a second-price auction. Therefore the system performance will be heavily dependent on the pricing strategy of the vehicle agents. We propose a pricing strategy for vehicle agents based on dynamic programming where not only the direct cost of a job insertion is taken into account, but also its impact on future opportunities. We also propose a waiting strategy based on the same opportunity valuation. Simulation is used to evaluate the benefit of pricing opportunities compared to simple pricing strategies in different market settings. Numerical results show that the proposed approach provides high quality solutions, in terms of profits, capacity utilization and delivery reliability
- …