The growth of Internet price search tools, notably shopbots, has reduced consumers’ search costs for price and some product characteristics. While a variety of analytic models predict that increased consumer search through shopbots will lower price levels among competing retailers, there is no consensus in the empirical literature as to whether price dispersion will increase or decrease in resp...

We empirically investigate fluctuations in product prices in online markets by using a tick-bytick price data collected from a Japanese price comparison site, and find some similarities and differences between product and asset prices. The average price of a product across e-retailers behaves almost like a random walk, although the probability of price increase/decrease is higher conditional on...

The growth of Internet price search tools, notably shopbots, has reduced consumers’ search costs, allowing consumers to easily become informed of price and product characteristics among competing sellers online. While a variety of analytic models predict that increased consumer search through shopbots will lower price levels among competing retailers, there is no consensus in the empirical lite...

This article gives an analysis of the NormalHedge algorithm in continuous time. The NormalHedge algorithm is described and analyzed in discrete time in [CFH]. The continuous time analysis is mathematically cleaner, simpler and tighter than the discrete time analysis. To motivate the continuous time framework consider the problem of portfolio management. Suppose we are managing N different finan...

We examine the welfare effects of regulation in a model where firms can shroud add-on costs, such as penalty fees for credit cards. In isolation, imposing price controls or disclosure mandates on such fees can increase or decrease welfare, even when these regulations have no direct costs. There are, however, strong complementarities between price controls and disclosure mandates: conditional on...

Applying the simultaneous-equation model, this study finds that the output elasticity with respect to the real oil price is estimated to be -0.042, indicating that if the real oil price rises 10%, real GDP would decrease by 0.42%. In addition, real output in Korea is positively associated with the money supply, real deficit spending, and the real stock price and negatively influenced by real de...

A recent strategy carried out by the aircraft industry to reduce the total cost of the new generation fighters has consisted in the development of a single airframe with different technical and operational specifications. This strategy has been designed to reduce costs in the Research, Design and Development phase with the ultimate objective of reducing the final unit price per aircraft. This i...

In estimating the cost-effectiveness of diagnostic procedures, it is helpful to treat diagnostic information as a commodity with a unit price. The amount of useful information provided by a test result can be measured in binary units (bits), and the unit price of the information produced by the test result can be expressed in dollars per bit in much the same way that the price of gold is given ...

The aim of this research is to analyze the connection between dividend announcement and stock price on Croatian capital market using event study methodology. Research period was the period from the year 2007 to the year 2009. Results have confirmed that dividend change has statistically significant value for investors. Dividend increase and dividend decrease resulted with statistically signific...

This paper presents a heuristic method to solve a dynamic pricing problem under costly price modifications. This is a remarkably difficult problem that is solvable only under very few special cases. The method is applied to a more general form of the problem and is numerically tested for a variety of demand functions in the literature. The results show that the method is quite accurate, approxi...