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This paper discusses the interaction between one manufacturer and a single retailer in a channel in which both are willing to optimize their profit by adjusting pricing and advertising decisions. The manufacturer produces and sells a product at wholesale price to the retailer who in turn distributes it to consumers with retail price. The market demand is simultaneously affected by retail price, brand advertising of the manufacturer, and local advertising of the retailer. A Cobb-Douglas demand function is used to demonstrate the relationship between the parameters. Decision variables are two firms’ prices and their advertising investments. The problem is modelled under integrated policy and... 

Purpose: The purpose of this paper is to estimate long-run elasticities for housing prices in Tehran's (capital of Iran) 20 different zones relative to several explanatory variables available for use such as land price, total substructure area, material price, etc. Moreover, another goal of this paper is to propose a new approach to deal with problems which arise due to a lack of proper data. Design/methodology/approach: The data set is gathered from "The Municipality of Tehran" and "The Central Bank of Islamic Republic of Iran (CBI)". One-way fixed effects and one-way random effects approaches (which are panel data approaches) are applied to model housing price forecasting function in... 

Real-time electricity prices along with demand-side potentials can provide distribution companies (DisCos) with considerable financial and technical benefits compared to the conventional flat prices. This paper incorporates demand response in DisCos' short-term decision model in a real-time pricing (RTP) environment wherein consumers are charged based on hourly varying prices. Besides the hourly RTP sale prices, the established model deals with other DisCo's short-term activities including hourly purchases from the grid, commitment of distributed generation (DG) units, dispatch of shunt compensators, and invocation of load curtailments (LCs). The stochastic nature of wholesale market prices... 

Selling correlated products faces the sellers with the cross-selling, which is a key factor in managing revenue and costs of the sellers. Cross-selling is a phenomenon which happens when the demands of products are correlated so that the demand for one of the correlated products automatically initiates demand of another. In these cases, different selling tactics such as bundling, tying, mixed bundling, etc. are applied to sell the items. In this paper, an integrated pricing-inventory model for two complementary products under three selling strategies is developed. In the first model, it is assumed that the seller sells the products separately while those are packed and sold as bundling in... 

Morck, Yeung, and Yu (2000), in their pioneering study of international differences in stock price synchronicity, emphasize the effect of market development on investors' ability to incorporate firm-specific information into prices. We use a unique institutional feature in the Hong Kong market to investigate one of the important tools investors use to do this and hence reduce stock price synchronicity: short selling. Examining the cross-sectional and time-series variation in short-sale constraints in the Hong Kong market, we find that after the removal of short-sale constraints, stock prices become more informative and move less in tandem with the market. © 2018 Elsevier Inc  

Morck, Yeung, and Yu (2000), in their pioneering study of international differences in stock price synchronicity, emphasize the effect of market development on investors' ability to incorporate firm-specific information into prices. We use a unique institutional feature in the Hong Kong market to investigate one of the important tools investors use to do this and hence reduce stock price synchronicity: short selling. Examining the cross-sectional and time-series variation in short-sale constraints in the Hong Kong market, we find that after the removal of short-sale constraints, stock prices become more informative and move less in tandem with the market  

Selling correlated products faces the sellers with the cross-selling, which is a key factor in managing revenue and costs of the sellers. Cross-selling is a phenomenon which happens when the demands of products are correlated so that the demand for one of the correlated products automatically initiates demand of another. In these cases, different selling tactics such as bundling, tying, mixed bundling, etc. are applied to sell the items. In this paper, an integrated pricing-inventory model for two complementary products under three selling strategies is developed. In the first model, it is assumed that the seller sells the products separately while those are packed and sold as bundling in... 

The main focus of this study is on reserve market settlement in an electricity market with marginal pricing scheme as the pricing mechanism. Following a day-ahead market clearing, the marginal prices are found using the appropriate Lagrange multipliers as the bi-products of the optimisation process. The payments to energy and reserve providers can then be found based on these prices. However, it is hard to find an appropriate settlement scheme that provides the fair and justifiable consumer payments based on marginal pricing scheme considering the actual reserve functions in power systems. In this study, a reserve marginal pricing that is based on a proper reserve marginal price definition... 

In this article, we address the multiple-night stay hotel revenue management. Using a decomposition method, we transform the multiple-night stay revenue management into a single night. To this end, we define effective arrival rate for each night that is derived from all the booking requests that contain the night, excluding the possible 'customer losses'. A customer is labeled 'loss' either because of the existence of an expensive night in his itinerary or because of a stock-out occurrence over his stay. We calculate the probabilities of these two incidents and then update the effective daily arrival rate, accordingly. In this way, we can use the classical single-night revenue management,... 

This note provides some extensions on optimal policies on price, warranty length and production rate proposed by Wu et al. (2009) . [1] (Wu, C.C.; Chou, C.Y.; Huang C. Optimal price, warranty length and production rate for free replacement policy in the static demand market. Omega 2009; 37: 29-39.) More specifically, the assumptions of the original paper is extended in this note from the production rate being positive and the second derivative of the demand function with respect to price and warranty-length being negative to no restrictions on both  

This paper points out a flaw in the derivation of the optimal price and warranty length policies proposed by Wu et al. (2006) (Wu, C.C., Lin, P.C., Chou, C.Y. Determination of price and warranty length for a normal lifetime distributed product. International Journal of Production Economics 102 (2006): 95–107). While we show one of the optimal strategies that they considered is incorrect, correct versions of the optimal strategies are presented  

Purpose: Lack of a consistent standardized housing pricing system in Iran has led housing valuation to become solely dependent on appraisers' opinions. The purpose of this paper is to investigate some behavioral aspects of real estate decision makers, i.e. buyers and appraisers. Design/methodology/approach: First, and based on a content analysis of the valuation literature, a preliminary housing valuation model is proposed. This model is then contextualized and tested on two separate samples of 23 appraisers and 145 buyers, using interviewing technique and self-administered questionnaires. Findings: This study shows that buyers and appraisers may have different views about property valuation... 

Pricing is seen as a viable alternative to manage the demand for transportation facilities. While supply increase might aggravate the problem, pricing is envisaged to relieve large cities from adverse traffic effects (congestion and pollution, among others). Nevertheless, pricing has its own drawbacks, often overlooked by the operators of the networks. It will cause changes in the travel behavior of the different groups and their demands (shoppers, retailers, and even basic businesses/ employees). This paper presents an extensive review of the subject, and an equilibrium model to estimate the long–run effects of a cordon pricing scheme. The problem of designing a price for a Central Business... 

This paper studying the impact of strategic customer behavior on decentralized supply chain gains and decisions, which includes a supplier, and a monopoly firm as a retailer who sells a single product over a finite two periods of selling season. We consider three types of customers: myopic, strategic and low-value customers. The problem is formulated as a bi-level game where at the second level (e.g. horizontal game), the retailer determines his/her equilibrium pricing strategy in a non-cooperative simultaneous general game with strategic customers who choose equilibrium purchasing strategy to maximize their expected surplus. At the first level (e.g. vertical game), the supplier competes... 

Given the importance of crude oil prices for businesses, governments and policy makers, this paper investigates predictability of oil prices using artificial neural networks taking into account the exhaustible nature of crude oil and impact of monetary policy along with other major drivers of crude oil prices. A multilayer perceptron neural network is developed and trained with historical data from 1980 to 2014 and using mean square error for testing data, optimal number of hidden layer neurons is determined and the designed MLP neural network is used for estimation of the forecasting model. Meanwhile, an economic model for crude oil prices is developed and estimated using a vector... 

For many retailers, markdown decisions are taken by retail buyers whose compensation is based on sales revenue so their objective is to maximize it through the season. This implies that the buyers' objectives are not perfectly aligned with the overall profitability the firm. Many retailers set markdown budgets prior to the season to control margin erosion and increase profitability. Markdown budget constrains the buyers on the amount of discounts that they can apply on a given inventory of merchandise and sets a limit on the dollar value of markdowns for the season. While markdown budgets may be useful in preventing excessive discounts, they can have a detrimental effect on the buyers'... 

Existing revenue management methods and heuristics rely on specific demand-side assumptions such as customers' independent decisions over time. We relax the assumption that purchasing decisions depend only on the current price and are independent of previous prices of the same or similar products. On the contrary, we assume that customers' decisions depend on the product's past prices through a reference price. With this new dimension, a firm needs not only to manage its remaining capacity but also to control the reference price to maximize its expected future profit. In this situation, we show that some of the main analytical properties such as monotonicity or modularity of the firm's value... 

An agent-based model is employed for simulating the price of oil futures. The model proceeds as follows: On each time step agents choose their rule for price expectation formation. Next, they bid and ask based on their price and trend expectations. The new price is formed using “the market mechanism”. Finally, the time steps forward and the process is repeated in the next day. The agents use 6 different rules to make price and trend expectations. Brent future prices in a 2-year-period (2010-2011) and in 2012 are used for model calibration and validation, respectively. It was shown that market participants weigh U.S. stocks data more than other factors, while OECD stock’s data were not that...