Firms that use nonlinear pricing may distort product characteristics away from their efficient levels. This paper offers the first empirical study of this issue. Using data from a specialty coffee market, I estimate a structural utility model to compute consumers’ benefits from changing products’ sizes. I then compare the estimated benefits to cost data. Design distortions are relatively large ...

abstract management of water resources in iran is faced with growing demand for water resources, a considerable increase in the costs of supplying additional water and uncontrolled exploitation of underground waters. economists suggest water pricing to improve water use efficiency; however, government tends to reject that advice due to political risk, economic and cultural concerns. we used a p...

In many differentiated product markets prices are determined through a negotiation process between buyers and sellers. Sellers post a price, but consumers may be able to negotiate a discount. The extent to which sellers negotiate may depend on consumer characteristics; ignoring the actual pricing mechanism can lead to an incomplete and biased analysis. Moreover, discounting is an important form...

This paper explores adverse selection in the voluntary and compulsory individual annuity markets in the United Kingdom. Two empirical regularities support standard models of adverse selection. First, annuitants are longer-lived than non-annuitants. These mortality differences are more pronounced in the voluntary than in the compulsory annuity market. We estimate that the amount of adverse selec...

This paper studies congestion management based on congestion pricing as may be done by an Independent System Operator. Four main concepts are discussed: congestion pricing can lead to the same solution as an Optimal Power Flow, pricing need not have cost information available, good estimates of nonlinear cost coefficients are necessary, and pricing for congestion management is separable from pr...

The locational Marginal Pricing (LMP) is very important issue in deregulated environment. This paper provides a method to minimize the locational marginal pricing in the energy market. This market works under locational marginal pricing, i.e., generating units and demand loads are paid and pay, respectively, the locational marginal prices corresponding to the nodes they are connected to. An ind...

This paper presents a location-inventory-pricing model for designing the distribution network of a supply chain with price-sensitive demands and inventory-capacity constraints. The supply chain has market power and uses markup pricing. An efficient Lagrangian relaxation algorithm is proposed to solve the model. Our numerical study shows that by moderately increasing the number of possible value...

the strategic pricing decisions of assembly products in assembly products supply chain are studied in this paper. firstly, a two-stage assembly products supply chain model is developed. by building nash game model, the nash equilibrium solution of pricing strategy of supplier and assemblers is obtained. next, a union decision model is built to analyze the optimal combination pricing strategy of...

In recent years, the development in the deregulated electricity market structure increases the number of market participants thereby, creates the market more competitive. It is important for the independent power producer (IPP), independent system operator and bulk power customer to know and select the least cost transaction. In this paper, a method for selecting the optimal multi-nodal bilater...