We value the option of subcontracting to improve Þnancial performance and system coordination by analyzing a competitive stochastic investment game with recourse. The manufacturer and subcontractor decide separately on their capacity investment levels. Then demand uncertainty is resolved and both parties have the option to subcontract when deciding on their production and sales. We analyze and ...

Despite increasing availability of household water treatment products, demand in developing countries remains low. Willingness to pay for water treatment products and factors that affect demand are not well understood. In this study, we estimate willingness to pay for WaterGuard, a dilute chlorine solution for point-of-use water treatment, using actual purchase decisions at randomly assigned pr...

We study the e¤ect of price cap regulation on investment in new capacity in an oligopolistic (Cournot) industry, using a continuous time model with stochastic demand. A price cap has two mutually competing e¤ects on investment under demand uncertainty: it makes the option of deferring investment very valuable, but it also reduces the interest of strategic underinvestment to raise prices. We sho...

In this article, we estimate the vertical price transmission through the Iranian rice marketing chain by usingmonthly data from March 2000 to February, 2009 and error correction model (ECM).The causality testresults indicate that changes in the producer price clearly led changes in wholesale and retail prices. InProducer-Retail and Wholesale-Retail models, price transmission is asymmetric but i...

W purchase and consumption decisions are separated in time and when future utility is state dependent, consumers may desire to pursue consumption flexibility by purchasing different products together (multiple buying). This paper analyzes the effects of consumption flexibility on competing firms’ marketing mix decisions, in a model in which future preference uncertainty exists and consumers dif...

abstract the main aim of the paper is to determine the marketing efficiency of poultry industry in karaj. in this research the marketing margin and the marketing efficiency of poultry market in different level of the market in karaj was calculated. the results showed that slaughter houses gain the main part of marketing margin and marking profit. the share of slaughter house was more that 50 pe...