The present value model of asset prices a la Campbell and Shiller predicts the price-rent ratio in the housing market to be stationary. The observed movements in the actual price-rent ratio, often exhibiting large and long swings in the ratio, may put into question the validity of the standard present value model. In this paper, we allow for two sources of possibly unwieldy deviations in the pr...

We study a general model of common-value second-price auctions with differential information. We show that one of the bidders has an information advantage over the other bidders if and only if he possesses a dominant strategy. A dominant strategy is, in fact, unique, and is given by the conditional expectation of the common value with respect to his information field. Furthermore, when a bidder...

Abstract Bounded rationality, asymmetric information and foreign trade are widespread in the economic market, have been studied extensively oligopoly games, but there not many works discussing bounded rationality supply chain hybrid game. In contrast with existing works, our study, we innovatively construct a duopoly Bertrand–Cournot game model transnational information. It is assumed that upst...

Mobile technology is getting changed very fast in commensurate with other technological hyper changes. Buyers’ expectation from a new cellular phone is also changing over time. Producers, thereby, have to keep themselves abreast of changes in customer taste and preferences to attract, capture, grow, and retain both existing and potential customers. This study is set to measure factors affecting...

In a general model of common-value second-price auctions with differential information, we show equivalence between the following characteristics of a bidder: (i) having a dominant strategy; (ii) possessing superior information; (iii) being immune from winner’s curse. When a dominant strategy exists, it is given by the conditional expectation of the common value with respect to bidder’s informa...

A calibrated New Keynesian model of the euro area is used to evaluate stabilization properties alternative monetary policy strategies when natural rate interest low (“new normal”) and probability reaching effective lower bound (ELB) non-negligible. Price level targeting most strategy in terms stabilizing inflation output reducing duration frequency ELB episodes. Temporary price also mitigating ...

This paper examines the competitiveness of winner-take-all price competition in homogeneous product oligopoly environments where underlying buyer demands and/or firms’ costs need not be continuous. Our analysis is motivated by the observation that a variety of economic settings have these features. For example, in 1996 an Ivy League university solicited bids from several vendors for its initiat...

We propose a priority-pricing scheme for zonal access to the electric power grid that is uniform across all buses in each zone. The Independent System Operator (ISO) charges bulk power traders a per unit ex-ante transmission access fee based on the expected option value of the generated power with respect to the random zonal spot prices. The zonal access fee depends on the injection zone and a ...

We propose a priority-pricing scheme for zonal access to the electric power grid that is uniform across all buses in each zone. The Independent System Operator (ISO) charges bulk power traders a per unit ex-ante transmission access fee based on the expected option value of the generated power with respect to the random zonal spot prices. The zonal access fee depends on the injection zone and a ...