This paper presents a two-country model in which consumers’ utility from tradable goods depends on their consumption of complementary goods and services. The model is consistent with the stylized fact that markups are higher in rich countries: In countries with more complementary goods and services consumer demand is less elastic, enabling monopolistically competitive firms to charge higher pri...

---------------------------------------------------------------------***--------------------------------------------------------------------Abstract In restructured electricity markets, an effective transmission pricing method is required to address transmission issues and to generate correct economic signals to reduce the generation cost. It is necessary to develop an appropriate pricing schem...

The market for selling reusable products (e.g., car rental, cloud services and network access resources) is growing rapidly over the last few years, where service providers maximize their revenues through setting the optimal prices. While there has been lots of research on pricing optimization, existing works often ignore dynamic property of demand and the competition among providers. Thus, exi...

In determining consumer’s acceptance of any products in the market, packaging appearance, branding and pricing of the products are important. This study focused on consumer’s perception towards the outlook of the coffee packaging which resulted in influencing their purchasing decision through survey study. This current study was done on three main issues namely appropriateness of appearance, br...

Recent advances in information technologies create numerous opportunities for retailers to turn customer information into additional pro ts by targeted pricing: charging different prices to di erent market segments based on customer demographic variables. However, rigorous theoretical analysis regarding what is the pro t-maximizing set of variables remains scarce. This study develops a game-the...

We consider pricing problems when customers choose according to the generalized extreme value (GEV) models and the products have the same price sensitivity parameter. First, we consider the static pricing problem, where we maximize the expected profit obtained from each customer. We show that the optimal prices of the different products have a constant markup over their unit costs. We provide a...