This paper analyzes pharmaceutical producers’(of branded and generic drugs) pricing decisions in a context which combines the classical Hotelling framework (commonly adopted in the literature) with the possibility that consumers’demands are price elastic. We analyze with particular interest two commonly adopted reimbursement mechanisms: fixed percentage reimbursement (FPR) and reference pricing...

We study a dynamic pricing problem for a company that sells a single product to a group of customers over a finite time horizon. These customers are price sensitive and the price of today influences the group of customers of tomorrow. The objective is to set the prices over time so as to maximize revenue. We study two customer models: a multiplicative and an additive model. Our main contributio...

This paper studies the effect of the three most commonly used demand functions, i.e. additive, multiplicative and iso-elastic demand, on the investment decisions of two competitive firms. We show that the relative investment decision of the two firms can be very sensitive to the choice of a specific demand function. We find that the use of the multiplicative demand function results in a market ...

in this paper, productivity of and demand for water throughout eqlid’s sugar beet growers in 1385 were investigated. to address the objective 100 growers were selected using two-stage cluster sampling, then required dataset was obtained by interviewing and completing questionnaire. in order to study factors affecting sugar beet production, cobb-douglas production function was applied. based on ...

Do multinational Ž rms exhibit different patterns of labor demand from purely domestic Ž rms? Many standardmodels of trade and multinational companies suggest one such differencemay be labor-demand elasticities. For several reasons, multinationalsmay have more-elastic labor demands than do purely domestic Ž rms. In this paper we discuss the theory issues involved. We then present industry-level...

We estimate the slope of the Marshallian demand curve for newly auctioned FHLB discount notes and investigate the impacts of arbitrage risk and heterogeneity of beliefs on demand elasticity. Our dataset contains roughly 2,900 observations of two price-quantity pairs—the first from a pre-auction dealer survey, the second from actual auction results. Using this unique dataset, we find that demand...

A within-day dynamic demand model is formulated, embodying, in addition to the classic generation, distribution and modal split stages, an actual demand model taking into account departure time choice. The work focuses on this last stage, represented through an extension of the discrete choice framework to a continuous choice set. The dynamic multimodal supply and equilibrium model based on imp...

In recent years there has been much interest in alternative sources of income for farmers. This is because economic theory suggests that demand for agricultural commodities is inelastic so that, as incomes in society as a whole increase, those of farmers do not necessarily keep pace Ð hence the current problems with falling real farm incomes. In contrast the demand for services is relatively el...