All-units discounts in retail contracts refer to discounts that lower a retailer’s wholesale price on every unit purchased when the retailer’s purchases equal or exceed some quantity threshold. These discounts pose a challenge to economic theory because it is difficult to understand why a manufacturer ever would charge less for a larger order if its intentions were benign. In this paper, we sho...

This paper determines the effect that offset payments under the Continued Dumping and Subsidy Offset Act (CDSOA also known as the “Byrd Amendment”) have on tariff levels that are lobbied for by U.S. producer groups. We derive the optimum antidumping tariff that would maximize the welfare of producers receiving CDSOA offset payments. We compare and contrast this newly derived “optimal antidumpin...

In recent years, firms in a number of industries have introduced wide menus of pricing plans that grant access to a virtually identical product under different pricing schemes. These menus of tariffs allow consumers to self-select into the tariff that best fits their demand. They include pure pay-per-use tariffs, tariffs where the consumer pays an access price, and a marginal price only for usa...

Cost cap tariffs are pay-per-use tariffs for which costs cannot exceed a predefined cost limit. They were recently introduced to telecommunications markets, but were previously also applied in the insurance industry as deductibles or in the rental industry as day rates. This paper develops and empirically validates a consumer surplus model that explains the optimal consumption pattern under cos...

Traditional agency theory assumes that managers are egoistic and need incentives to act in the best interests of the firm. As such, agency theory is a key determinant of firm size, capital structure, corporate governance, and firm value. However, traditional theory ignores the fact that some people are virtuous and do not need such incentives. If some employees are selfless, diligent, and have ...

A study of Pakistan’s private road freight Irenspofl industry was undertaken and data on freight tariffs, vehicle utilisation, revenues andoperating costs were analyzed, Over a period of four years it was found that average !afiff levels closely followed the rate of inflation with a small marked seasonal variation depending on trip direction. Using multiple regression analysis of crosssectional...

Abstract In this paper, Markov chain and dynamic programming were used to represent a suitable pattern for tax relief and tax evasion decrease based on tax earnings in Iran from 2005 to 2009. Results, by applying this model, showed that tax evasion were 6714 billion Rials**. With 4% relief to tax payers and by calculating present value of the received tax, it was reduced to 3108 billion Rials. ...