Author: Jan Y. Yang
Publisher: Springer Nature
ISBN: 3030507777
Category : Business & Economics
Languages : en
Pages : 173
Book Description
The price of virtually any product or service can reveal intriguing stories. The author looks back at his own decade-long pricing journey and shares some of the most exciting and insightful pricing stories, allowing readers to see the world from a different angle. From pricing a chilled Coke in Tehran, to iPhone, to explaining the fall of MUJI, this book reveals the rationales behind and outcomes of various pricing strategies. The author also presents a number of stories from China, a "price wonderland" in which he, both as a consumer and a pricing consultant, has observed unconventional pricing practices rarely found elsewhere, such as the frequent use of negative prices among tech unicorns, i.e., sellers paying consumers to use their products. Structured as a collection of short stories, the book offers a delightful and eye-opening reading experience for business owners, managers, and anyone interested in understanding what prices are, and how pricing works and interacts with us as customers.
The Pricing Puzzle
Author: Jan Y. Yang
Publisher: Springer Nature
ISBN: 3030507777
Category : Business & Economics
Languages : en
Pages : 173
Book Description
The price of virtually any product or service can reveal intriguing stories. The author looks back at his own decade-long pricing journey and shares some of the most exciting and insightful pricing stories, allowing readers to see the world from a different angle. From pricing a chilled Coke in Tehran, to iPhone, to explaining the fall of MUJI, this book reveals the rationales behind and outcomes of various pricing strategies. The author also presents a number of stories from China, a "price wonderland" in which he, both as a consumer and a pricing consultant, has observed unconventional pricing practices rarely found elsewhere, such as the frequent use of negative prices among tech unicorns, i.e., sellers paying consumers to use their products. Structured as a collection of short stories, the book offers a delightful and eye-opening reading experience for business owners, managers, and anyone interested in understanding what prices are, and how pricing works and interacts with us as customers.
Publisher: Springer Nature
ISBN: 3030507777
Category : Business & Economics
Languages : en
Pages : 173
Book Description
The price of virtually any product or service can reveal intriguing stories. The author looks back at his own decade-long pricing journey and shares some of the most exciting and insightful pricing stories, allowing readers to see the world from a different angle. From pricing a chilled Coke in Tehran, to iPhone, to explaining the fall of MUJI, this book reveals the rationales behind and outcomes of various pricing strategies. The author also presents a number of stories from China, a "price wonderland" in which he, both as a consumer and a pricing consultant, has observed unconventional pricing practices rarely found elsewhere, such as the frequent use of negative prices among tech unicorns, i.e., sellers paying consumers to use their products. Structured as a collection of short stories, the book offers a delightful and eye-opening reading experience for business owners, managers, and anyone interested in understanding what prices are, and how pricing works and interacts with us as customers.
The Price Puzzle
Author: Efrem Castelnuovo
Publisher:
ISBN:
Category :
Languages : en
Pages : 51
Book Description
This paper re-examines the empirical evidence on the price puzzle and proposes a new theoretical interpretation. Using structural VARs and two different identification strategies based on zero restrictions and sign restrictions, we find that the positive response of prices to a monetary policy shock is historically limited to the subsamples associated with a weak central bank response to inflation. These subsamples correspond to the pre-Volcker period for the United States and the period prior to the introduction of the inflation targeting framework for the United Kingdom. Using a micro-founded NewKeynesian monetary policy model for the US economy, we then show that the structural VARs are capable of reproducing the price puzzle from artificial data only when monetary policy is passive and hence multiple equilibria arise. In contrast, this model never generates on impact a positive inflation response to a policy shock. The omission in the VARs of a variable capturing the high persistence of expected inflation under indeterminacy is found to account for the price puzzle observed in actual data.
Publisher:
ISBN:
Category :
Languages : en
Pages : 51
Book Description
This paper re-examines the empirical evidence on the price puzzle and proposes a new theoretical interpretation. Using structural VARs and two different identification strategies based on zero restrictions and sign restrictions, we find that the positive response of prices to a monetary policy shock is historically limited to the subsamples associated with a weak central bank response to inflation. These subsamples correspond to the pre-Volcker period for the United States and the period prior to the introduction of the inflation targeting framework for the United Kingdom. Using a micro-founded NewKeynesian monetary policy model for the US economy, we then show that the structural VARs are capable of reproducing the price puzzle from artificial data only when monetary policy is passive and hence multiple equilibria arise. In contrast, this model never generates on impact a positive inflation response to a policy shock. The omission in the VARs of a variable capturing the high persistence of expected inflation under indeterminacy is found to account for the price puzzle observed in actual data.
Alternative Explanation of the Price Puzzle
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The Stockholm School of Economics presents the full text of the December 4, 2000 working paper entitled "An Alternative Explanation of the Price Puzzle," written by Paolo Giordani. The text is available in PDF format. This paper features an explanation for the appearance of a price puzzle in vector autoregression models (VAR) designed for monetary policy analysis, finding that the answer implies a close connection between theory and empirics.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The Stockholm School of Economics presents the full text of the December 4, 2000 working paper entitled "An Alternative Explanation of the Price Puzzle," written by Paolo Giordani. The text is available in PDF format. This paper features an explanation for the appearance of a price puzzle in vector autoregression models (VAR) designed for monetary policy analysis, finding that the answer implies a close connection between theory and empirics.
The Price Puzzle Revisited
Author: Steffen Henzel
Publisher:
ISBN:
Category :
Languages : en
Pages : 47
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 47
Book Description
How to Solve the Price Puzzle?
Author: Marek Rusnák
Publisher:
ISBN:
Category : Monetary policy
Languages : en
Pages : 37
Book Description
Publisher:
ISBN:
Category : Monetary policy
Languages : en
Pages : 37
Book Description
The Price Puzzle
Author: Philip Arestis
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Book Description
An Alternative Explanation of the Price Puzzle
Author: Paolo Giordani
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
Book Description
Productivity, Tradability and the Long-run Price Puzzle
Author: Paul R. Bergin
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 70
Book Description
"Long-run cross-country price data exhibit a puzzle. Today, richer countries exhibit higher price levels than poorer countries, a stylized fact usually attributed to the Balassa- Samuelson' effect. But looking back fifty years, or more, this effect virtually disappears from the data. What is often assumed to be a universal property is actually quite specific to recent times. What might explain this historical pattern? We adopt a framework where goods are differentiated by tradability and productivity. A model with monopolistic competition, a continuum-of-goods, and endogenous tradability allows for theory and history to be consistent for a wide range of underlying productivity shocks"--NBER website
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 70
Book Description
"Long-run cross-country price data exhibit a puzzle. Today, richer countries exhibit higher price levels than poorer countries, a stylized fact usually attributed to the Balassa- Samuelson' effect. But looking back fifty years, or more, this effect virtually disappears from the data. What is often assumed to be a universal property is actually quite specific to recent times. What might explain this historical pattern? We adopt a framework where goods are differentiated by tradability and productivity. A model with monopolistic competition, a continuum-of-goods, and endogenous tradability allows for theory and history to be consistent for a wide range of underlying productivity shocks"--NBER website
NBER Macroeconomics Annual 1995
Author: Ben S. Bernanke
Publisher: MIT Press
ISBN: 9780262522052
Category : Business & Economics
Languages : en
Pages : 364
Book Description
Contents : Wage Inequality and Regional Unemployment Persistence: U.S. vs. Europe, Guiseppe BErtola and Andreas Ichino. Capital Utilization and Returns to Scale, Craig Burnside, Martin Eichenbaum, and Sergio Rebelo. Banks and Derivatives, Gary Gorton and Richard Rosen. Exchange-Rate-Based Stabilizations: Theory and Evidence, Sergio Rebelo and Carlos Vegh. Inflation Indicators and Inflation Policy, Stephen Cecchetti. Recent Central Bank Reforms and the Role of Price Stability as the Sole Objective of Monetary Policy, Carl Walsh. Is Central Bank Independence (and Low Inflation) the Result of Effective Financial Opposition to Inflation?, Adam Posen. The Unending Quest for Monetary Salvation, Stanley Fischer.
Publisher: MIT Press
ISBN: 9780262522052
Category : Business & Economics
Languages : en
Pages : 364
Book Description
Contents : Wage Inequality and Regional Unemployment Persistence: U.S. vs. Europe, Guiseppe BErtola and Andreas Ichino. Capital Utilization and Returns to Scale, Craig Burnside, Martin Eichenbaum, and Sergio Rebelo. Banks and Derivatives, Gary Gorton and Richard Rosen. Exchange-Rate-Based Stabilizations: Theory and Evidence, Sergio Rebelo and Carlos Vegh. Inflation Indicators and Inflation Policy, Stephen Cecchetti. Recent Central Bank Reforms and the Role of Price Stability as the Sole Objective of Monetary Policy, Carl Walsh. Is Central Bank Independence (and Low Inflation) the Result of Effective Financial Opposition to Inflation?, Adam Posen. The Unending Quest for Monetary Salvation, Stanley Fischer.
The Price Puzzle Revisited
Author: Blen Solomon
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The price puzzle has been the focus of many studies, however, most of these studies have focused on developed economies and especially on the U.S. Owing to this tendency; we do not know if the VAR framework produces the price puzzle in developing economies. This study investigates the existence of the price puzzle for the period 1980-2003 in Colombia by using Vector Error Correction Model (VECM). Since the sample period of study is not characterized with a uniform monetary policy regime, following Balke and Emery (1994) we divide our sample period according to existent structural breaks. We test for the price puzzle by dividing our sample into pre-1991 period (before inflation targeting started) and during inflation targeting period. We employ impulse response functions as our main tool to investigate the price puzzle. The impulse response functions show that during both the pre-1991 and post 1991 periods, prices do not rise in response to positive shocks in short term interest rates. Therefore we conclude that Colombia does not exhibit the price puzzle. In fact, during both periods as well as the whole sample period, prices are not responsive to short-term interest rate shocks. The unresponsiveness of prices to positive interest rate shocks is not expected since we would anticipate prices to decrease due to a positive interest rate shock.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The price puzzle has been the focus of many studies, however, most of these studies have focused on developed economies and especially on the U.S. Owing to this tendency; we do not know if the VAR framework produces the price puzzle in developing economies. This study investigates the existence of the price puzzle for the period 1980-2003 in Colombia by using Vector Error Correction Model (VECM). Since the sample period of study is not characterized with a uniform monetary policy regime, following Balke and Emery (1994) we divide our sample period according to existent structural breaks. We test for the price puzzle by dividing our sample into pre-1991 period (before inflation targeting started) and during inflation targeting period. We employ impulse response functions as our main tool to investigate the price puzzle. The impulse response functions show that during both the pre-1991 and post 1991 periods, prices do not rise in response to positive shocks in short term interest rates. Therefore we conclude that Colombia does not exhibit the price puzzle. In fact, during both periods as well as the whole sample period, prices are not responsive to short-term interest rate shocks. The unresponsiveness of prices to positive interest rate shocks is not expected since we would anticipate prices to decrease due to a positive interest rate shock.