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Price Adjustment in Taiwan Retail Gasoline Market  [cached]
Kuowei Chou
International Journal of Economics and Finance , 2012, DOI: 10.5539/ijef.v4n7p132
Abstract: This paper uses weekly data over a sample research period of 2002M4 - 2011M11 to estimate the impact of crude oil price on pre-tax retail gasoline price in Taiwan. We found that there is a significant, long-run equilibrium relationship between crude oil price and retail gasoline price. In the asymmetric ECM framework, this paper finds that there was distributed lag effect symmetry (DLES) between oil price and retail gasoline price. By the cumulated adjustment function, we show that retail gasoline price in Taiwan respond more quickly to reductions in crude oil price.
Retail Price Optimization from Sparse Demand Data  [PDF]
Philip Thomas, Alec Chrystal
American Journal of Industrial and Business Management (AJIBM) , 2013, DOI: 10.4236/ajibm.2013.33035

It will be shown how the retailer can use economic theory to exploit the sparse information available to him to set the price of each item he is selling close to its profit-maximizing level. The variability of the maximum price acceptable to each customer is modeled using a probability density for demand, which provides an alternative to the conventional demand curve often employed. This alternative way of interpreting retail demand data provides insights into the optimal price as a central measure of a demand distribution. Modeling individuals variability in their maximum acceptable price using a near-exhaustive set of demand densities, it will be established that the optimal price will be close both to the mean of the underlying demand density and to the mean of the Rectangular distribution fitted to the underlying distribution. An algorithm will then be derived that produces a near-optimal price, whatever the market conditions prevailing, monopoly, oligopoly, monopolistic competition or, in the limiting case, perfect competition, based on the minimum of market testing. The algorithm given for optimizing the retail price, even when demand data are sparse, is shown in worked examples to be accurate and thus of practical use to retail businesses.

Market Middlemen and Determinants of the Price Spread under Competition  [PDF]
Michael K. Wohlgenant
Theoretical Economics Letters (TEL) , 2014, DOI: 10.4236/tel.2014.49106
Abstract: Neoclassical economics is shown to yield predictions consistent with empirical industrial organization models regarding market middlemen behavior. Diminishing marginal returns to use of variable factor inputs produces three important predictions: a) the price spread between the output price and raw material price is positively correlated with output price, b) the raw material quantity is positively correlated with the price spread, and c) the price spread is positively correlated with other variable factor prices. An application to US farm-to-retail price spread time series data shows the consistency of the predictions.
Specialized advertising and price competition in vertically differentiated markets
Lola Esteban,José M. Hernández
SERIEs , 2011, DOI: 10.1007/s13209-010-0033-4
Abstract: This paper studies how the emergence of specialized communication media focused on both high quality contents and high quality advertised products, affects the functioning of a vertically differentiated market. To that end, we formulate a simultaneous game of pricing and targeted advertising with two firms producing different levels of quality. We find that the transition from uniform advertising to targeted advertising can turn a pure vertically differentiated market into a hybrid market which incorporates some features of a monopoly, thus changing the pattern of price competition between the firms. In particular, we show that (1) compared to uniform advertising, targeting leads both firms to always charge higher prices, (2) the increase in prices is more intense in highly competitive (low differentiated) markets, (3) the expected price of the low-quality firm is non-monotonic with the degree of product differentiation, and (4) the low-quality product may be sold at a higher expected price than the high-quality product. We also show that a progressive growth of specialized advertising vehicles leads to a further increase in prices. In addition, more specialized targeting may raise price competition, so firms may find it optimal to use low specialized targeting.
Supply Chain Inventory Problem with Price Increased and Demand Rate Depends on Retail Price
Chih-Te Yang,Liang-Yuh Ouyang
International Journal of Machine Learning and Computing , 2013, DOI: 10.7763/ijmlc.2013.v3.277
Abstract: This study investigates the supply chain inventory problems when the supply price increases and market demand rate depends on retail price. The purpose of this study will be to determine optimal special order quantity, retail price and production cycle by maximizing the increment of joint total profit. Furthermore, due to the vendor may or not provide all the special order quantity at the buyer’s next replenishment date and hence the shortage will or not occur, two specific situations are discussed in this study. A simple algorithm to find the optimal solution is developed. Finally, several numerical examples will be presented to demonstrate the developed model and solution procedure to provide manager a useful decision consultation.
Dynamic Price Discovering Models for Differentiated Wireless Services  [cached]
Swarup Mandal,Debashis Saha,Mainak Chatterjee
Journal of Communications , 2006, DOI: 10.4304/jcm.1.5.50-56
Abstract: Heterogeneous subscriber base with wide range of wireless services makes the wireless service market more challenging for a service provider (SP). This challenge is related to the revenue model of the SP, where pricing policy plays a central role. The pricing policy should be such that an SP will recover the investment while keeping the desired level of customer satisfaction. An ideal pricing policy should be less complex and be able to price the service close to the worth, a subscriber attached to it. This calls for dynamic price discovering models for differentiated wireless service. In this paper, we have proposed auction based price discovering models like uniform pricing auction and discriminatory pricing auction for dynamic pricing of differentiated wireless services. We have compared their performances with flat-pricing scheme for differentiated wireless services, which is quite popular in the wireless domain. Simulation results show that auction based models have a potential to replace the traditional flat pricing models.
The Effect of the Internet in the Book Retail Market  [cached]
Lulu Yang
Asian Social Science , 2009, DOI: 10.5539/ass.v5n2p90
Abstract: There are many new challenges for small businesses in the 21st century, especially the extensive use of Internet. It leads that the competition of small businesses, such as the book retail market, is fierce and getting fiercer. How the internet affect on the book retail market? In this paper, I will focuses on three different parts that Internet affects on the book retail market for both buyers and sellers. This paper is organized as follows: at first, I will introduce three main different issues about the effect of the Internet. At the same time I will cite ample data to illustrate the effect. Then I will illustrate the future of book retail market. Finally, I will summarize my points.
Price Transmission Analysis in Iran Chicken Market
Seyed Safdar Hosseini,Afsaneh Nikoukar,Arash Dourandish
International Journal of Agricultural Management and Development , 2012,
Abstract: Over the past three decades vertical price transmissionanalysis has been the subject of considerable attention inapplied agricultural economics. It has been argued that theexistence of asymmetric price transmission generates rents formarketing and processing agents. Retail prices allegedly movefaster upwards than downwards in response to farm level pricemovements. This is an important issue for many agriculturalmarkets, including the Iranian chicken market. Chicken is animportant source of nutrition in Iranian society and many ruralhouseholds depend on this commodity market as a source of income.The purpose of this paper is to analyze the extent, if any,of asymmetric price transmission in Iran chicken market usingthe Houck, Error Correction and Threshold models. The analysisis based on weekly chicken price data at farm and retail levelsover the period October 2002 to March 2006. The results oftests on all three models show that price transmission in Iranianchicken market is long-run symmetric, but short-run asymmetric.Increases in the farm price transmit immediately to the retaillevel, while decreases in farm price transmit relatively moreslowly to the retail level. We conjecture the asymmetric pricetransmission in this market is the result of high inflation ratesthat lead the consumers to expect continual price increases anda different adjustment costs in the upwards direction comparedto the downwards direction for the marketing agents and a noncompetitiveslaughtering industry and that looking for ways tomake this sector of the chicken supply chain more competitivewill foster greater price transmission symmetry and lead towelfare gains for both consumers and agricultural producers.
The Analysis on the Factors Which Affecting Price Dispersion between Traditional Retail Channel and Internet Retail Channel  [cached]
Xujin Pu
International Journal of Business and Management , 2009, DOI: 10.5539/ijbm.v3n12p52
Abstract: With network economy springing up and communication technology expanding fast, the retailing channels composed of Internet retail channel become the choice of many traditional retailers. Price dispersion always exists between traditional retail channel and Internet retail channel. In this text, we bring forward the model about traditional retail channel and internet retail channel based on classical hotelling linear city model. We find the price dispersion will be different when the parameters affecting the price in Internet retail channel are different. In some conditions, the price in Internet retail channel will be lower than in traditional retail channel, but in other conditions, the price in Internet retail channel will be higher than in traditional retail channel.
A measure of marketing price transmission in the rice market of Taiwan
Kuan-Min Wang,Yuan-Ming Lee
Zbornik Radova Ekonomskog Fakulteta u Rijeci : ?asopis za Ekonomsku Teoriju i Praksu , 2009,
Abstract: The goal of this paper is to test whether changes in the marketing margin betweenthe farm and the retail prices can result in an asymmetric relationship between the farm and the retail prices in the rice market of Taiwan. By separating the transaction cost variation into two regimes, this paper utilizes a two-regime TVECM with the error correction term serving as the threshold variable to create a non-linear threshold model. The empirical results show that when the marketing margin is lower than the threshold value, the market system operates freely and there is feedback between the farm and retail prices. However, when the marketing margin is higher than the threshold value, the government intervenes in the market and the causality between the farm and retail prices no longer exists. The conclusions are as follows. Changes in the marketing margin can cause the asymmetric price transmission between the farm and retail prices in Taiwan’s rice markets; therefore, ignoring the effect of the marketing margin could lead to errors in the models. When the marketing margin is higher than the threshold value, the government intervenes in the market and the causality between the two prices is broken.
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