Implementing price increases in turbulent economies: Pricing approaches for reducing perceptions of price unfairness

Consumer frustration over having less money in their pockets and, at the same time facing higher prices for products and services in the marketplace, arises during turbulent economic times (e.g., post-2007). Sellers suffer increased costs and pass along increases by raising prices to consumers. The current article discusses trends in the pricing literature and in practice that sellers utilize in limiting perceptions of price unfairness, particularly when increasing price in turbulent economic times. Specifically, engaging in transparency in pricing by revealing information about price changes to the consumer during poor economic times potentially reduces perceptions of price unfairness. Using industry-common price-setting practices, shrinking product volume, providing automatic rebates promotions, or offering price-matching promotions also likely reduces perceptions of price unfairness.     

GAME CALL OPTIONS REVISITED

In this paper, having been inspired by the work of Kunita and Seko, we study the pricing of δ‐penalty game call options on a stock with a dividend payment. For the perpetual case, our result reveals that the optimal stopping region for the option seller depends crucially on the dividend rate d. More precisely, we show that when the penalty δ is small, there are two critical dividends 0 < d₁ < d₂ < ∞ such that the optimal stopping region for the option seller takes one of the following forms: (1) an interval if d < d₁; (2) a singleton if d∈ [d₁, d₂]; or (3) an empty set if d > d₂. When d∈ [d₁, d₂], the value function is not continuously differentiable at the optimal stopping boundary for the option seller, therefore our result in the perpetual case cannot be established by the free boundary approach with smooth‐fit conditions imposed on both free boundaries. For the finite time horizon case, the dependence of the optimal stopping region for the option seller on the time to maturity is exhibited; more precisely, when both δ and d are small, we show that there are two critical times 0 < T₁ < T₂ < T, such that the optimal stopping region for the option seller takes one of the following forms: (1) an interval if t < T₁; (2) a singleton if t∈ [T₁, T₂]; or (3) an empty set if t > T₂. In summary, for both the perpetual and the finite horizon cases, we characterize in terms of model parameters how the optimal stopping region for the option seller shrinks when the dividend rate d increases and the time to maturity decreases; these results complete the original work of Emmerling for the perpetual case and Kunita and Seko for the finite maturity case. In addition, for the finite time horizon case, we also extend the probabilistic method for the establishment of existence and regularity results of the classical American option pricing problem to the game option setting. Finally, we characterize the pair of optimal stopping boundaries for both the seller and the buyer as the unique pair of solutions to a couple of integral equations and provide numerical illustrations.     

Asian firms and the restructuring of global value chains

Asian trans-national garment manufacturers are transforming the structure of global value chains in the apparel industry. Recent studies show such first tier suppliers undertaking a greater range of functional activities. In many cases, these firms originate from the so-called ‘Rising Power’ economies, particularly ‘Greater China’ and South Asia. We argue that such, transnational, Asian firms can play a pivotal and strategic role in shaping the geography and organisational restructuring of the global value chain. Drawing on secondary sources and primary research we illustrate how such firms manage complex international production linkages, and ensure the incorporation of Jordan into the global garment industry. The paper contributes to the understanding of the role of these firms and how their behaviour is driven by complex dynamics linked to their own business strategies, their linkages with buyers, and their ability to exploit production and trade opportunities while maintaining high levels of global locational flexibility.     

资产专用视角下PPP项目控制权均衡分配

引入控制权需求底线的概念,并在此基础上构建信息不对称条件下PPP项目控制权讨价还价分配模型,在双方投资专用性一定的前提下给出控制权均衡分配比例,有效避免双方因控制权分配不合理而导致的合作破裂。基于分配结果分析公私部门投资专用性之间的关系,并给出激励私人部门投资专用性的有效方式。     

A multi-spatial scale approach to urban sustainability – An illustration of the domestic and global hinterlands of the city of Beer-Sheva

Cities have always been dependent on ecological services from their local and regional hinterlands. In recent decades, however, urban population growth and rising material standards of living, in conjunction with technological development and globalization, have compelled cities to become reliant on global hinterlands. It follows that urban sustainability measures should target not only city and regional lands, but also the sustainability of global hinterlands. In this paper we disaggregate the urban hinterland into domestic and global hinterlands, using the city of Beer-Sheva, Israel as an example. We use a slightly revised ecological footprint analysis to separate the domestic and global hinterlands associated with various urban activities such as food, materials and water consumption, electricity use and transportation. We found that 94% of the Beer-Sheva footprint is ascribed to the global hinterland and only 6% to the domestic hinterland. We also found that the city's footprint is more than double that of a sustainable carrying capacity at the global scale and nine times more at the domestic level. After analyzing each component of the city's footprint, we identify some potential administrative measures at various scales – from local to global, which can help to minimize the size of the urban hinterland, reduce urban pressure on that hinterland, and thus promote urban sustainability.     

Price Behavior in a Dynamic Oligopsony: Washington Processing Potatoes

Punishment strategies are necessary to sustain a collusive oligopsony in a repeated game context when demand is uncertain and only market variables are observable. This paper proposes a test for tacit collusion among potato processors in Washington state using a dynamic regime-switching model estimated with a finite mixture method. The results support the existence of punishment and collusive regimes and show the welfare losses due to anti-competitive behavior on the part of processors to be significant. Processors' oligopsony power is enhanced by higher domestic production, imports, and existing stocks, but it is ameliorated by high capacity utilization rates and exports.     

Global models applied to agricultural and trade policies: a review and assessment

The continuing process of global integration bears implications for farmers and related supplying and processing industries in all parts of the world, but also for the rest of the world economy. An assessment of agricultural and trade policy impacts is bound to be complex and is often supported by quantitative modeling analysis. This article provides an assessment of the present state of applied modelling in the area of trade and agricultural policies. We provide in this paper a comparative assessment of alternative modelling approaches, considering a total of 16 partial equilibrium and general equilibrium models. The assessment includes theoretical modelling foundations, datasets employed and institutional aspects, such as model maintenance and dissemination of results. A typology of models is provided by structuring the assessment along a clear set of evaluation criteria.     

新型智慧城市建设中利益分配影响因素的演化博弈分析与仿真

对新型智慧城市建设中各参与方收益分配的原则和影响因素进行了探讨,从宏观层面上,运用演化博弈理论对政府和私营部门之间的非对称性重复博弈进行了分析,对影响各方策略选择的相关因素进行了实验仿真,揭示了风险分担、损失转移、激励与惩罚等因素对影响合作稳定性的规律,为制定新型智慧城市PPP项目建设和管理的政策制度提供借鉴。     

竞争还是合作：国际金融监管的博弈论分析

对于金融全球化条件下的金融监管,学术界一直有着两种不同的取向:监管竞争和监管合作。本文试图通过一个两国博弈模型来为国际金融监管合作寻求理论上的支持。通过模型分析,我们发现在一次博弈的假设下,两监管方的博弈是一个典型的囚徒困境。在更为符合现实的无限次重复博弈中,我们证明了(合作,合作)策略是无限次重复博弈的子博弈完美纳什均衡。也就是说,在长期中,合作策略将是博弈方最优的策略选择。     

银行资产证券化中发起行与SPV利益博弈关系分析

资产证券化自出现以来,就受到世界各国金融界的广泛关注,并被认为是世界金融领域近40年来最重要、影响力最大、引用最广泛的金融创新工具之一。因此,它对银行的发展也产生重要的影响。通过对银行资产证券化的利益博弈关系进行了研究,构建双向拍卖定价模型分析SPV与发起行之间的利益关系,并得出双方最优的交易区间。为各相关主体共同努力优化市场机制,促进银行资产证券化的良性发展提供一定的依据。