When a product’s price fluctuates at a store, how should rational, cost-minimizing shoppers shop for it? Specifically, how frequently should they visit the store, and how much of the product should they buy when they get there? Would this rational shopping behavior differ across Every Day Low Price (EDLP) and Promotional Pricing (HILO) stores? If shoppers are rational, which retail price format...

Firstly, this paper develop a basic two-echelon DCSC model as the comparative benchmark in the general case of the stochastic demand effected by the service level of the retailer, where the manufacturer's optimal direct price, wholesale price and the retailer's optimal retail price were achieved under Stackelberg game. Then, through incorporate the fairness preference and risk-aversion characte...

summary This study provides a model-based approach for implementing retail category management with a focus on markup decisions. We develop a reduced form Bayesian econometric model that captures price and sales variation for a retail chain. Based on this model, we derive the optimal retail markups on individual brands within a product category by maximizing the total category profit over a fin...

Abstract: This article provides model of the retail gasoline market as multi-agent systems. The main factors, which affecting on the retail price of gasoline were determined. The authors found that using the agent approach, which takes into consideration the coalitions in the market, in particular, tacit collusion, it is possible to describe the behaviour of players correctly. An description of...

The power of agent-based modelling (ABM), when integrated with other AI-based and conventional approaches, can be greatly enhanced. The resulting hybrid systems offer a flexible modelling environment that exploits the benefits of the component methods. In particular, the ABM paradigm can be used to explore and understand systems that are governed by complex, non-linear relationships and self-or...

I measure price dispersion among differentiated retail gasoline sellers and study the relationship between dispersion and the local competitive environment. Significant price dispersion exists even after controlling for differences in station characteristics, and price differences between sellers change frequently. The extent of price dispersion is related to the density of local competition, b...

In this paper, greening, pricing, and advertising policies in a supply chain will be examined with government intervention. The supply chain has two members. First, a manufacturer seeking to determine the wholesale price and the greening level and second, a retailer that has to determine the advertising cost and the retail price. The government is trying to encourage the manufacturer to green t...

The goal of this economics project is to see if various retail formats actually show a difference in their pricing. To execute this project I selected a product category that the many different retail formats carried, and compared the prices of identical products sold in this category between the different retail formats. The product category I chose to research was women’s fragrances. Identica...

in this paper asymmetric price transmission mechanism and nonlinear adjustment between producer and retail prices of milk were examined in zanjan province of iran. for this purpose, a two-regime threshold vector error correction model (tvecm) and a sup-lm test developed by hansen and seo (2002) were employed for checking presence of a threshold effect. application of unit root tests indicated t...

Determining an appropriate transfer price is of importance to a firm composed of divisional profit centers since it significantly affects decision-makings of each profit center and then the firm's profit. In this paper, we investigate the effects of negotiated and administered transfer pricing on the profits of each center and the firm based on a differential game involving an operations depart...