Demand Uncertainty, Search Costs Costs and Price Dispersion PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Demand Uncertainty, Search Costs Costs and Price Dispersion PDF full book. Access full book title Demand Uncertainty, Search Costs Costs and Price Dispersion by Minhua Wan. Download full books in PDF and EPUB format.
Author: Minhua Wan
Publisher:
ISBN:
Category : Demand (Economic theory)
Languages : en
Pages : 106
Get Book Here
Book Description
Author: Minhua Wan
Publisher:
ISBN:
Category : Demand (Economic theory)
Languages : en
Pages : 106
Get Book Here
Book Description
Author: James D. Dana
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 40
Get Book Here
Book Description
Author: James D. Dana
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
When capacity is costly and prices are set in advance, firms facing uncertain demand will sell output at multiple prices and limit the quantity available at each price. I show that the optimal price strategy of a monopolist and the unique pure-strategy Nash equilibria of oligopolists both exhibit intrafirm price dispersion. Moreover, as the market becomes more competitive, prices become more dispersed, a pattern documented in the airline industry. While generating similar predictions, the model differs from the revenue management literature because it disregards market segmentation and fare restrictions that screen customers.
Author: Benjamin Eden
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Benjamin Eden
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Benjamin Eden
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
I use the Prescott (1975) hotels model to explain variations in price dispersion across items sold by supermarkets in Chicago. The effect of uncertainty about aggregate demand on price dispersion is highly significant and quantitatively important: My estimates suggest that more than 40% of the cross-sectional standard deviation of log prices is due to demand uncertainty. I also find that price dispersion measures are negatively correlated with the average price but are not negatively correlated with the revenues from selling the good (across stores and weeks) and with the number of stores that sell the good.
Author: Suxi Li
Publisher:
ISBN:
Category : Airlines
Languages : en
Pages : 238
Get Book Here
Book Description
Demand uncertainty has been recognized as one factor that may cause price dispersion in perfectly competitive markets with costly and perishable capacity. With the persistence of the degree of price dispersion in increasingly competitive markets, demand uncertainty has become more important for us to understand the phenomenon of fare inequality. This dissertation consists of three related studies on this topic. In the first study, Prescott (1975) model is extends by incorporating the heterogeneity of customers2 reservation values. The model shows that the equilibrium price dispersion also depends on the mix of customers and their reservation values. With customer segmentation based on reservation values, the equilibrium price dispersion is more efficient than what can be achieved without segmentation. In the airline industry context, the model implies that different prices can exist simultaneously in the market and carriers would provide more seats if they can segment their travelers. This sheds light on an alternative motivation for airlines to require Saturday night stay over other than the practice of price discrimination. In the second study, a price simulation in the airline industry is conducted. The stochastic demand for coach class, nonstop, air travel service on the observed routs is calculated. Then a market price schedule based on Prescott2s model is simulated by using nonparametric method. The comparison between the simulated price distribution and the actual price distribution provides evidence that on average more than 60 percent of the fare inequality on the observed routes can be accounted for by cost variation due to demand uncertainty under the condition of perfect competition. At last, an empirical model is specified to explore the relationship between route demand uncertainty and carrier price dispersion in U.S. air travel markets. The results demonstrate that the effect of route demand uncertainty on carrier price dispersion varies with the market structure. In monopoly market, the route demand uncertainty has no effect on carrier price dispersion. While in duopoly and competitive markets, the increase of route demand uncertainty is associated with the decrease of the carrier price dispersion. Furthermore, the negative relationship is magnified when the market becomes more competitive.
Author: Joshua Sherman
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
We exploit cross-sectional and temporal differences in search intensity in order to examine the relationship between search costs and price dispersion using a hand-collected panel data set from Jerusalem's Shuk Mahane Yehuda outdoor market. We present empirical evidence that price dispersion increases with the cost of search using several different measures of price dispersion, however, our interpretation of this finding is sensitive to the search proxy in question. We also address several acute difficulties facing empiricists seeking to test theoretical price-dispersion models in which consumers are heterogeneous in their search behavior.
Author: Vithala R. Rao
Publisher: Edward Elgar Publishing
ISBN: 1848447442
Category : Business & Economics
Languages : en
Pages : 617
Get Book Here
Book Description
Pricing is an essential aspect of the marketing mix for brands and products. Further, pricing research in marketing is interdisciplinary, utilizing economic and psychological concepts with special emphasis on measurement and estimation. This unique Handbook provides current knowledge of pricing in a single, authoritative volume and brings together new cutting-edge research by established marketing scholars on a range of topics in the area. The environment in which pricing decisions and transactions are implemented has changed dramatically, mainly due to the advent of the Internet and the practices of advance selling and yield management. Over the years, marketing scholars have incorporated developments in game theory and microeconomics, behavioral decision theory, psychological and social dimensions and newer market mechanisms of auctions in their contributions to pricing research. These chapters, specifically written for this Handbook, cover these various developments and concepts as applied to tackling pricing problems. Academics and doctoral students in marketing and applied economics, as well as pricing-focused business practitioners and consultants, will appreciate the state-of-the-art research herein.
Author: Robert E. Hall
Publisher: University of Chicago Press
ISBN: 0226313255
Category : Business & Economics
Languages : en
Pages : 302
Get Book Here
Book Description
This volume presents the latest thoughts of a brilliant group of young economists on one of the most persistent economic problems facing the United States and the world, inflation. Rather than attempting an encyclopedic effort or offering specific policy recommendations, the contributors have emphasized the diagnosis of problems and the description of events that economists most thoroughly understand. Reflecting a dozen diverse views—many of which challenge established orthodoxy—they illuminate the economic and political processes involved in this important issue.
