Costs, Demand, and Producer Price Changes

Heterogeneous Demand Responses to Discrete Price Changes

Abstract. This paper discusses the possibility of exploiting price variations that may occur during the survey period of any household expenditure survey in order to identify heterogeneous demand responses to discrete price changes. This is feasible since expenditure surveys usually contain a large number of observations. The principal difficulty for estimation arises from the observation windo...

Producer price highlights, 1998

Market Structure and Price Responses to Seasonal Demand Changes*

The demand for gasoline follows a seasonal cycle in Sweden. The paper investigates the response in prices and profits over the cycle. In contrast to what has been found for the gasoline market in the United States I find no support for seasonal price changes compatible with the recently developed theories for cyclical variations of intensity of competition. Some possible explanations for this d...

Switching Costs and the Timing of Merger-Induced Price Changes

This paper formalizes a non-cooperative explanation for pre-merger price increases. When consumers face switching costs, firms have strong incentives to offer bargain prices to lock in consumers whom they can exploit in the future. A future merger reduces a firm’s incentive to gain current market share, however, because the firm anticipates sharing future profits. Focusing on near-term profit, ...

Dynamic Inventory Planning with Unknown Costs and Stochastic Demand

Generally ordering policies are done by two methods, including fix order quantity (FOQ) and fix order period (FOP). These methods are static and either the quantity of ordering or the procedure of ordering is fixing in throughout time horizon. In real environments, demand is varying in any period and may be considered as uncertainty. When demand is variable in any period, the traditional and st...