This paper uses laboratory methods to evaluate determinants of supra-competitive pricing. The experiment involves three treatments, each with the same market supply, demand, and competitive price. In the baseline treatment, capacity is divided among five sellers so that the competitive price is a Nash equilibrium. Market power is created in a second treatment by reallocating capacity among the ...

A firm with a product that competes in a market that has a complementary product (in a different market) must consider the interdependence between the complementary products as well as the competition within markets. If the firm participates in both markets, the balancing act becomes even more challenging. This paper provides insights about strategies in this latter setting. When should the fir...

Bounded rationality and heterogeneity have been developed in the recent asset pricing literature to explain complicated market behaviour, such as market booming and crashes, and various stylized facts in high frequency data, such as fat tails, volatility clustering and power-law behaviour in returns, which are difficult to be explained by the standard asset pricing theory based on rational expe...

In many market situations such as in shopping centers, grocery stores, industrial-goods distributors, and ‘full-line manufacturers’ we see the marketing and distribution of complementary products. Sometimes the distribution function is handled by the manufacturer himself, and sometimes it is spun off to an independent distributor or middleman. This paper presents an economics-based model which ...

This paper builds on tobacco document research by analysing contemporary materials to explore how the global tobacco market has changed, how transnational tobacco companies (TTCs) are responding and the implications for tobacco control. The methods involved analysis of a variety of materials, including tobacco company annual reports, investor relations materials, financial analyst reports, mark...

A good model of the relationship between the market demand and prices plays a very important role in economic decision-making. In this work we shall state four basic requirements which should be satisfied by any realistic demand function. The fourth of these is apparently new: essentially it requires that the total demand for substitutable products in a closed system should not increase for any...

The determination of the selling price will affect level consumer purchasing power, specifically, if offered is too high, it have an impact on decline in power. As a result, product willbe unable to compete market and vice versa. Even though products at low prices can market, profit achieved by company not be maximized. This study aims determine dried lomek BUMDes Kuala Alam, as well using cost...

My primary research interest concerns product pricing with market power. In some cases my research is motivated by observing perplexing pricing patterns and asking what about the environment, the objectives of sellers, or biases of customers can lead to such pricing? In other cases my motivation is reversed: I am intrigued by an interesting environment or regulatory intervention and ask what ar...

Remanufacturing is a production strategy whose goal is to recover the residual value of used products. Used products can be remanufactured at a lower cost than the initial production cost, but remanufactured products are valued less than new products by consumers. The choice of production technology influences the value that can be recovered from a used product. In this paper, we solve the join...