The Quanto option is a cash-settled, cross-currency derivative in which the underlying asset has a payoff in one country, but the payoff is converted to another currency in which the option is settled. Thus, the correlation between the underlying asset and currency exchange rate plays an important role on pricing such options. Market observations give clear evidence that financial quantities ar...

Pricing Asian options based on the arithmetic average, under the Black and Scholes model, involves estimating an integral (a mathematical expectation) for which no analytical solution is available. Pricing their American-style counterparts, which provide early exercise opportunities, poses the additional difficulty of solving a dynamic optimization problem to determine the optimal exercise stra...

A dual-channel supply chain system composed of one manufacturer and one retailer is considered in this paper, which existed uncertainty demands in both distribution channels and capital constraint on retailer. It set up the profit model of manufacturer dominated dual-channel supply chain system, studied to the optimal pricing and inventory strategies of decentralized and centralized supply chai...

With the new realities of the digital age, print newspapers are experimenting with different pricing models for their online content. Using NYT’s paywall rollout as a natural experiment, our study finds that a firm’s information pricing policy influences the pattern and effectiveness of online word of mouth (WOM) in social media. Using difference-in-difference-indifferences analysis, we find th...

awareness of wheat farmers’ personal preferences towards environmental issues and weed types is important in pricing bioherbicides for sustainable weed management and could consequently be a fundamental guide to agricultural authorities and policy-makers. in the present study, a survey was carried out by using data collected from 180 wheat farmers of korasan razavi province during 2008, togethe...

For the Small and Medium-Sized Manufacturers who are in the weak position in dual-channel marketing, they are often faced with channel price conflict. Therefore, it is necessary for the Small and Medium-Sized Manufacturers to formulate effective pricing strategies. This paper modeled pricing strategies for two scenarios, which involved the manufacturer and retailer make decisions individually a...

Designing a global pricing strategy for a new pharmaceutical product has become increasingly difficult as geographic reference pricing and parallel trade have introduced global price interdependencies between different nations. What may have been an optimal pricing strategy in a single country may no longer be optimal when considering the international ramifications of this price. The prices se...

Virtually all manufacturing and service industries are susceptible to periods of supply and demand mismatches. Due to capacity limitations and demand uncertainties, firms producing multiple products may frequently encounter instances where one of their products faces shortages while the other has excess inventories. In order to alleviate the level of such inventory mismatches, several tools may...

Textbooks present the three ‘degrees’ of price discrimination as a sequence of independent pricing methods. These textbook treatments consequently provide inadequate insight as to when a firm might adopt a particular pricing strategy. The paper describes an informationbased taxonomy of price discrimination, which can be used to teach monopolistic price discrimination in an integrated way. The p...

The business performance and economic profit of the firm can be summarized in market share. One of the most important aims of firms is to enhance market share to achieve greater scale in its operations and improve profitability. Due to this, managers always want to expand their market share. Market share responds to elements of marketing strategy and one of the important items that affect marke...