On pure-strategy Nash equilibria in price–quantity games

This paper examines the existence and characteristics of pure-strategy Nash equilibria in oligopoly models in which firms simultaneously set prices and quantities. Existence of a pure-strategy equilibrium is proved for a class of price–quantity games. If the demand function is continuous, then the equilibrium outcome is similar to that of a price-only model. With discontinuous demand and limited spillover, there are rationing equilibria in which combined production falls short of market demand. Moreover, there might again be an equilibrium reflecting the outcome of a price game. Competition in price and quantity thus yields Bertrand outcomes under a variety of market conditions.     

The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research

This study aims to investigate consumer perceptions and reactions in terms of specific discount patterns (fixed price, 40% discount, discount from 500 TL to 300 TL and 20% + 25% discount) in price promotion. According to the results, specific discount patterns in price promotion have a significant effect on perceived price attractiveness and purchase intention. When the specific discount patterns in price promotion and gender interaction were analyzed in terms of perceived price attractiveness, the scenario of the “discount from TL 500 to TL 300” significantly differentiated from both the control scenario (fixed price) and experimental scenarios for female. For males, no significant difference was found between the control and experimental scenarios. In terms of purchase intention, a significant difference was found between the fixed price scenario and the discount scenario from 500 TL to 300 TL and between the fixed price and 20% + 25% discount scenario. The theoretical managerial implications of the study were discussed, and future research suggestions were presented.     

S&P 500 Affiliation and Stock Price Informativeness

Abstract

When firms are added to a stock index, more information should be discovered, traded on, and incorporated into their stock prices, making them more informative. We test this hypothesis using a large sample of additions to the S&P 500 index. Using two alternative statistical tests, we find that the stocks added experience more random, less predictable return and, thus, appear to be priced more efficiently information-wise. We further find concurrent increases in institutional ownership and investor awareness, which tend to contribute to the higher pricing efficiency, adding to the literature. These findings should be of interest to academics and practitioners.     

Promotion and Prevention Contracts in Industry Level Firm to Firm Dyad

ABSTRACT

Purpose

This article aims to introduce and distinguish two features of contract design – prevention and promotion contracts – and compares their effects on opportunism within the distributor–supplier relationship. It also examines the moderating role of ex post contract enforcement strategies.     

Price gap anomaly in the US stock market: The whole story

This paper analyses the price gap anomaly in the US stock market (comprised of the DJI, S&P 500 and NASDAQ) covering the period 1928 to 2018. This paper aims to investigate whether or not price gaps create market inefficiencies. Price gaps occur when the current day’s opening price is different from the previous day’s closing price due orders placed before the opening of the market. Several hypotheses are tested using various statistical tests (Student’s t-test, ANOVA, Mann-Whitney test), regression analysis, and special methods, that is, the modified cumulative returns and the trading simulation approaches. We find strong evidence in favour of abnormal price movements after price gaps. We observe that during a gap day prices tend to change in the direction of the gap. A trading strategy based on this anomaly was efficient in that its results were not random, indicating that this market was not efficient. The momentum effect was found to be temporary and no evidence of seasonality in price gaps was found. Lastly, our results were also contrary to the myth that price gaps tend to get filled.     

Price competition between green and non green products under corporate social responsible firm

This article deals with a newsvendor inventory model in light of green product marketing of corporate social responsible firms. In this model, comparison between green and non green marketing is analyzed including subsidy and tax implementation by Government where the Government offers higher subsidy and lower tax to the green producer unlike the lower subsidy and higher tax to the non green producer. There is also price contest between green and non green producer as the demands of the products are dependent on sales price, carbon emission and corporate social responsibility index. Assuming the cost and profit parameters, an expected profit function of the systems is formulated and maximized analytically. Finally, numerical examples are illustrated to justify the proposed model.     

The economics and geography of regional airline services in six countries

Do the determinants of service and pricing on “regional” routes – linking towns and smaller cities to main trunk routes and/or to each other – differ from the established results from the literature? We study all flights (about 3000) on all regional routes (about 250) with scheduled airline service from one of about 130 regional towns or cities, in regional airline markets in six countries: Australia, Canada, New Zealand, Norway, Sweden, and a sample of three U.S. states which closely resemble the other regions studied. For each flight we have observations on up to five prices offered at different times before flight date. We also have equipment type and social-economic data. Overall, our results give qualified support to the standard gravity model of the extent of service between city pairs, though with two interesting differences: operators on regional routes have greater flexibility in the size of aircraft they can deploy, which results in a finer-grained variability of service offerings and, the presence of competition on regional routes has a large effect on the total supply of seats. We are able to successfully estimate a well-specified airfare model, which shows strong effects of competition on prices, quite substantial intertemporal price discrimination, and interesting differences between regional and main trunk route pricing.     

石油金融：融合态势与中国发展战略

随着现代经济的发展,石油与金融的结合越来越紧,石油金融化趋势日益凸显。因此,为应对国际石油价格的未来走势,保障中国金融体系和中国经济的安全和长期稳定发展,中国迫切需要制定石油金融体系。新形势下中国石油金融体系构建的战略取向为：多层次构建石油交易市场体系;多渠道营造石油银行系统;多途径形成石油基金组合;多方位灵活运用石油外汇等。     

Retail channel price discrimination

This paper examines price differentials of identical items across retail channels. Many consumer packaged goods are sold through both grocery and drug stores. Liquor is unique in that in much of the country there is a third retail channel of distribution, liquor stores. If consumers in each retail channel differ in their willingness to pay for certain items, then sellers can exploit those differences and charge different prices for the same items in each channel. We examine a unique data set of pooled cross sectional retail scanner data on wine to test whether sellers use retail channel to identify heterogeneous consumer market segments and engage in price discrimination. We begin by presenting a model of price discrimination by retail channel along with behavioural assumptions regarding shoppers in each channel. Next we examine sales by retail channel and find persistent price differentials for the same item across retail channel after controlling for sample selection bias and seasonality. Lastly, we estimate the price elasticity of demand correcting for endogeneity and find differences across channel consistent with the price differentials. The extent of price differential, however, differs significantly with respect to price point.     

Stock liquidity and stock prices crash-risk: Evidence from India

In this paper, we examine the role of stock liquidity as a governance mechanism to discipline managers for withholding bad news (stock price crash-risk). This topic is useful to emerging markets because the dominance of controlling owners limits the monitoring of internal governance. Stock liquidity can be altered by the financial market regulations, thereby improving firm-level governance. In empirical analysis, we show that stock liquidity decreases stock price crash-risk. We identify two possible mechanisms through which stock liquidity reduces stock price crash-risk: the threat of intervention and price informativeness.