Auctions allow regulators to identify land management changes with substantial environmental benefit and low opportunity cost. This paper reports an experiment in which seller subjects compete in sealed-offer auctions to obtain part of a fixed budget allocated by the experimenter-regulator to subsidize pollution abatement. One treatment employs uniform-price auction rules, whereas another treat...

In many markets, consumers obtain price quotes before making purchases. This paper considers a fixed-sample size model of consumer search for price quotes when sellers must spend resources to learn the true cost of providing goods/services. It is found that (1) even with ex ante identical consumers and sellers, there is price dispersion in the equilibrium; (2) the expected equilibrium price can...

We use the experimental method to compare second-price auctions with verifiable multilateral negotiations in which the sole buyer can credibly reveal to sellers the best price offer he currently holds. Despite the two institutions seeming equivalence, we find that prices are lower in verifiable multilateral negotiations than in second-price auctions. The difference occurs because low-cost selle...

The Australian Government has proposed to introduce a policy that will impose a cost on greenhouse emissions (a carbon price). The mechanism, intended to start on 1 July 2012, is to commence with a government-fixed carbon price – $23 per tonne CO2-e in 2012–13 increasing by 5% per annum (2.5% in real terms) – which would continue for three years, before being converted into a market-based emiss...

The ready-to-eat cereal industry is characterized by high concentration, high price-cost margins, large advertising to sales ratios, and numerous introductions of new products. Previous researchers have concluded that the ready-to-eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense non-price competition. This paper empirically examines this...

We introduce consumer loss aversion into the Salop (1979) model of price competition with differentiated products. Firms face uncertain costs of production, and after observing their own cost realizations simultaneously set prices. A consumer derives “gain-loss utility” from comparing the purchase price and her satisfaction with the acquired product to her recent expectations regarding the same...

We describe Cümülön, a system aimed at helping users develop and deploy matrix-based data analysis programs in a public cloud. A key feature of Cümülön is its end-to-end support for the so-called spot instances—machines whose market price fluctuates over time but is usually much lower than the regular fixed price. A user sets a bid price when acquiring spot instances, and loses them as soon as ...

demand is assumed constant in the classical economic order quantity (eoq) model. however, in the real world, the demand is dependent on many factors such as the selling price, warranty of product and marketing effort. in addition pricing and ordering quantity decisions are interdependent for a seller when demand for the product is price sensitive in the inventory models. these types of models a...