We show for CES demands with heterogeneous production costs that profit, revenue, and output distributions lie in the same class as the productivity distribution (e.g., the "Pareto circle"), although the price distribution lies in the inverse class. We relate distribution shapes via the elasticities of their densities. Introducing product quality decouples the CES circle. Then, all distribution...

we developed an inventory model for decaying items with selling price dependent demand in inflationary environment. deterioration rate is taken as two parameter weibull distribution. shortages in inventory are allowed with partial backlogging. backlogging rate is taken as exponential decreasing function of time. profit maximization technique is used in this study.

The goal of this paper is to study a profit-maximization location-inventory problem in a multicommodity supply chain distribution network with price-sensitive demands. The problem determines location, allocation, price and order-size decisions in order to maximize the total profit of serving the customers. The problem is formulated as a mixed-integer nonlinear programming model and solved using...

Unique Nash Equilibrium: p1 = p2 = c. Proof: If pi = c, then there is no price at which firm j can earn strictly positive profit so that pj = c is a best response. Thus, p1 = p2 = c is a NE. To show uniqueness, note that if c < pi < pj , then firm j earns zero profit and can do strictly better by unilaterally deviating and charging a price ∈ (c, pi). If c = pi < pj , then firm i earns zero prof...

Exchanges often sell both trading services and price information. We study the effect of combining the sale of these two products on price discovery, in a rational expectations model. We show that pricing errors and thereby speculators’ trading profits decline when price information becomes available in real-time to a wider number of speculators. As a result, speculators’ willingness to pay for...

In this paper, a multi-item inventory model with space constraint is developed in both crisp and fuzzy environment. A profit maximization inventory model is proposed here to determine the optimal values of demands and order levels of a product. Selling price and unit price are assumed to be demand-dependent and holding and set-up costs sock dependent. Total profit and warehouse space are consid...

This study explores the equilibrium outcomes in the contexts of quantity-setting and price-setting mixed duopolies with consistent conjectures of both the social welfare maximizing public firm and the relative profit maximizing private firm. Similar to the private duopoly composed of only relative profit maximizing firms, we show that in the mixed duopoly, the equilibrium outcomes in the quanti...

This paper studies how implicit collusion may take place through simple non-exclusive contracting under adverse selection when multiple buyers (e.g., entrepreneurs with risky projects) non-exclusively contract with multiple firms (e.g., banks). It shows that any price schedule can be supported as equilibrium terms of trade in the market if each firm’s expected profit is no less than its reserva...

Free entry equilibria are usually characterized by the zero profit condition. We plead instead for a strict application of the Nash equilibrium concept to a symmetric simultaneous game played by actual and potential entrants, producing under decreasing average cost. Equilibrium is then typically indeterminate, with a number of active firms varying between an upper bound imposed by profitability...