Retail Pricing under Contract Self-Selection: An Empirical Exploration

Buyer Shopping Costs and Retail Pricing: An Indirect Empirical Test

Suppose that consumers incur fixed shopping costs and choose stores according to advertised discounts. Then, the extent to which a store will discount advertised items should increase with the profit from other regularly-priced items. Bookstores customarily advertise discounts on bestsellers. Among conventional bookstores, we found that the bestseller discount systematically increased with the ...

American option pricing under stochastic volatility: an empirical evaluation

Over the past few years, model complexity in quantitative finance has increased substantially in response to earlier approaches that did not capture critical features for risk management. However, given the preponderance of the classical Black–Scholes model, it is still not clear that this increased complexity is matched by additional accuracy in the ultimate result. In particular, the last dec...

Tenure-track contract helps self-selection

Tenure-track contract is criticized for curbing the incentives to expend effort after obtaining tenured status. Yet the most productive faculties seem to work on a tenure contract, and schools which aim to employ the best faculty seem to prefer to offer tenure-track contracts to their new recruits. I argue that tenure-track contracts are by construction more attractive to more able freshly mint...

Revenue management and seller pricing decisions in retail industry: An agent-based model

Fictitious Pricing in Retail

Prices in a wide variety of contexts come in three parts: an “original” or “suggested” price, a discount off that price, and the final price. Little empirical evidence is available that speaks to how each pricing component affects purchase behavior, even as theories abound. This paper outlines the main theories of fictitious pricing with their corresponding predictions and examines their releva...