BACKGROUND In Bangladesh, the average excise tax on cigarettes accounted for just 38% of the average retail price of cigarettes in 2009, and 45% in 2010. Both these rates are well below the WHO recommended share of 70% of the retail price at a minimum. There is thus ample room for raising taxes on cigarettes in Bangladesh. The objective of the present work was therefore to estimate the price el...

We examine how gasoline price volatility impacts consumers’ price elasticity of demand for gasoline. Results show that volatility in prices decreases consumer demand for gasoline in the intermediate run. We also find that consumers appear to be less elastic in response to changes in gasoline price when gasoline price volatility is medium or high, compared to when it is low. Moreover, we find th...

Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal con...

In this paper we consider a utility-maximization model for health care. On the basis of the equilibrium conditions derived for patients and the providers of the medical service, we evaluate the importance of cost-sharing between the patients and the third party and provide an explanation for the rising medical expenditures. We effectively assume that some form of third-party payer is always inv...

Several studies have examined the market for employer-provided group health insurance in the United States. The theoretical side of the literature has struggled with the existence of equilibrium due to the adverse selection problem inherent in the sale of health insurance. The empirical side of the literature has had trouble estimating the price elasticity of demand for health insurance, in par...

one effective method for improving the performance of supply chain is making coordination among members of supply chain. this paper studies the subject of coordination of supply chain by using an insurance contract. the supply chain consists of one-manufacturer and one-retailer that the retailer is faced with potential demand and returning of goods from customer. acceptance of goods returned is...

water markets are instrumental in efficient allocation and pricing of scarce water by enhancing allocative and price efficiency of water use. the prerequisites for water market formation are tradable water rights independent from ownership of the land, extensive water canals, water use associations, and adequate market regulations. mojen water market has been facilitating exchange of alternativ...

Previous research indicates that consumers often exhibit surprisingly poor knowledge of product prices. The present study investigates whether price knowledge, as measured by reference price accuracy, is related to price-sensitivity as measured by the price-elasticity of demand. We hypothesize that consumers are most knowledgeable regarding the prices of goods for which demand is most price-ela...