We study the problem of setting transfer prices in a vertically integrated supply chain, in which the divisions share technology and transactions costs. We develop a cooperative game that provides transfer prices for the intermediate products in the supply chain. This model is applied both when the market prices for these products are known and also when their valuations differ. We provide a so...

A formula for deriving the price of SEW pigs using grain, soybean meal, and market hog prices was estimated based on return on investment being equal for all three phases of production – farrow, nursery, and finish. USDA reported SEW pig prices were compared with formula-derived prices. The level of correlation between these two series was sensitive to how grain, soybean meal, and market hog pr...

In this article we consider “the distribution of prices paid per share” and derive simple approximation formulas for its mean and other statistical characteristica. The formulas we derive are approximations since the data about the distribution of prices paid by each shareholder for each share is not available. After going through the derivation of the formula we will end up with recursive defi...

An input-output model is used to analyze price pass-through effects of a minimum wage increase on prices of the food and kindred products and food-service industries. These sectors employ a disproportionate share of minimum wage workers, but results suggest a $0.50 increase in the present minimum wage would increase food prices less than 1 percent for most of the 12 food and kindred products pr...

Given the unlimited needs of mankind and the limited resources available, human beings have always been thinking about how to use the available resources and facilities optimally. Energy plays an important role in economic activities and it is of great importance in agriculture. Over the past four decades, energy consumption in the agricultural sector has increased tremendously. In Iran, energy...

Energy poverty can be understood as the inability of a household to secure a socially and materially necessitated level of energy services in the home. While the condition is widespread across Europe, its spatial and social distribution is highly uneven. In this paper, the existence of a geographical energy poverty divide in the European Union (EU) provides a starting point for conceptualizing ...

It is a pleasure to be invited to discuss this rich paper by Jeffrey Frankel and Andrew Rose. After the events of the past few years, with a range of commodity prices exhibiting great volatility, it is not hard to motivate Frankel and Rose’s choice of topic, seen from either a longor medium-term perspective. The authors use annual data, mainly in a panel context, to examine the relationship bet...

Why Mergers Reduce Profits and Raise Share Prices — A Theory of Preemptive Mergers* by Sven-Olof Fridolfsson and Johan Stennek We explain the empirical puzzle why mergers reduce profits and raise share prices. If being an “insider” is better than being an “outsider,” firms may merge to preempt their partner merging with a rival. The stock-value of the insiders is increased, since the risk of be...

The inability to predict the future growth rates and earnings of growth stocks (such as biotechnology and internet stocks) leads to the high volatility of share prices and difficulty in applying the traditional valuation methods. This paper attempts to demonstrate that the high volatility of share prices can nevertheless be used in building a model that leads to a particular cross-sectional siz...