The purpose of this article is to present a class of consumption sectors which exhibit a continuously differentiable mean demand although individual preferences are not assumed to be convex. As we have argued in an earlier paper [Dierker et al. (1980b, introduction)], several economic questions require mean demand to be a continuously differentiable function and not only to be a continuous one....

In the current conditions of over-supply, firms are paying high attention to pricing decisions in order to defend their competitive positioning. Modern pricing strategies are able to take into account changed market conditions or, in other words, demand characterised by strong volatility and non loyal behaviour flanking known loyalty mechanisms. Moreover, suppliers are also looking for innovati...

We analyze whether noncooperative collusive equilibria are harder to sustain when individual demand levels are not fixed but are able to fluctuate. To do this, we extend a Bertrand-type model of price competition to allow for fluctuating market shares when prices are equal. We find that, the larger the market share fluctuations may be, the higher the discount factor should be to sustain a collu...

Numerous contract scenarios in information technology goods and services, telecommunications, digital entertainment, and supply chain contracting feature demand uncertainty for individual customers (demand is subject to idiosyncratic demand shocks that change marginal valuations). Sellers in these scenarios often use non-linear pricing mechanisms (flat rate, two part tariffs, three-part tariffs...

This paper estimates a model of residential electricity demand to project the impact of proposed tariff changes on a representative sample of 130 Barbadian households. The results from the demand function suggest that the price elasticities of demand for particular appliances varied significantly, with households that utilize solar water heating being more price elastic than households that use...

This study analyzes factors affecting the price of South Korea’s Certified Emission Reduction (CER) using statistical methods. CER refers to the transaction price for the amount of carbon emitted. Analysis of results found a co-integration relationship among the price of South Korea’s CER, oil price (WTI), and South Korea’s maximum electric power demand, which means that there is a long-term re...

Using the most recently available data, this paper estimates the price and income elasticities of gasoline demand in the United States from a semiparametric smooth coefficient model. The econometric approach provides more flexibility by allowing functional coefficients to accommodate heterogeneity in gasoline demand. Instrumental variables are used to correct for the potential endogeneity of th...

this paper employs a multivariate dynamic conditional correlation garch model, which is developed by engle (2001, 2002), to detect the timing and nature of changes in the comovement between iranian output and prices for the periods after iran–iraq war , known as imposed war . the results showed that there is a weak correlation between output and prices after imposed war and  varies periodically...

We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand splitting rules, namely proportional demand allocation and demand reallocation. Although competition ...