Asymmetric Wholesale Pricing: Theory and Evidence

Asymmetric Wholesale Pricing: Theory and Evidence*

Asymmetric pricing is the phenomenon where prices rise more readily than they fall. We articulate, and provide empirical support for, a theory of asymmetric pricing in wholesale prices. In particular, we show how wholesale prices may be asymmetric in the small but symmetric in the large, when retailers face costs of price adjustments. Such retailers will not adjust prices for small changes in t...

A new approach to wholesale access pricing

Ambiguity Theory and Asset Pricing: Empirical Evidence from Tehran Stock Exchange

Modern portfolio theory is based on the relationship between risk and return and in this paper, specific uncertainty conditions are introduced as ambiguity which affects the asset pricing. Also, the relationship between risk, ambiguity and return is examined. First, ambiguity is estimated by the means of three-variable and main component method, trading volume, ask-bid spread, error of earnings...

Pricing Security Software: Theory and Evidence

This paper presents a model of multi-product pricing for consumer security software. It highlights two aspects unique to this kind of software. The …rst is a supply-side e¤ect relating to the security software update process that alters its cost structure, and the second is a demand-side e¤ect relating to the fact that customers often get free substitutes for components of security software sui...

Understanding Competitive Pricing and Market Power in Wholesale Electricity Markets

In the ̄rst year of the deregulated California electricity market, a number of issues have arisen that relate to the competitiveness of the wholesale electricity market in the state. There have been lively debates over the need for price caps in the California Power Exchange (PX) day-ahead market and the California Independent System Operator's (ISO) real-time and ancillary services markets. The...