Crude oil exerts a strong influence on national economy. Changes of international crude oil price have an important effect on Chinese economy because of China’s high dependence on the import of the crude oil. Thus, Chinese stock market can be shocked by the fluctuation of oil price. Reversely, changes in crude oil imports of China have some effect on demands and price of the crude oil. This art...

This article studies the consequences of price discrimination in a market for experts’ services. In the case of experts markets, where the expert observes the intervention that a consumer needs to fix his problem and also provides a treatment, price discrimination proceeds along the dimension of quality of advice offered. High quality advice and appropriate treatment is provided to the most pro...

We develop a model in which a profit-maximizing monopolist with uncertain cost of production sells to loss-averse, yet rational, consumers. We first introduce (portable) techniques for analyzing the demand of such consumers, and then investigate the monopolist’s pricing strategy. In contrast to the standard monopoly model, we find that in relatively stable environments, the firm chooses a discr...

The usual analysis of monopolistic markets focuses merely on the seller ́s behavior. In this paper, we interpret the relationship between seller and buyers as a multiple Ultimatum Bargaining Game. We show that a profit maximizing monopolist may not sell at Cournot Price. When buyers are committed to reject price offers leading to an unfair split of the surplus, a monopolist will have to reduce t...

Basic economic theory tells us to expect that an increase in demand should lead to an increase in price. However, studies have found the opposite trend in the prices of seasonal goods, such as canned soup. I propose an explanation of this phenomenon: consumers are more likely to purchase without search in low demand periods, reducing the gains of temporary price reductions, and decreasing estim...

the main purpose of this research is to evaluate the effect of commercial brands on customers’ loyalty and behavior to hygienic products. here a commercial brand is under assessment about its credibility among consumers in relation to customers’ loyalty and behaviour. in this research the model presented by sweeny and swait consumers and its relationship with customers’ loyalty and behaviour. i...

While firms claim to be concerned with consumer reactions to price increases, these often do not cause large reductions in purchases. The model developed here fits this by letting consumers react negatively only when they become convinced that prices are unfair. This can explain price rigidity, though its implications are not identical to those of existing models of costly price adjustment. In ...

It is straightforward to evaluate how a perfectly-optimizing, perfectly-informed customer will respond to a non-linear price schedule, but such a customer is rare. In the common case of increasing-block pricing of water and electricity, consumers do not know what marginal price they face during a billing period, because they do not know what demand shocks will occur during the period. If consum...

Firms affect consumer demand not only through their pricing decisions, but also through the ways in which they release price information to consumers. Non-uniform price schedules or the inclusion of complex pricing elements hinder comparison shopping, possibly eliminating products from consideration for purchase. We study the effect of such price complexity on consumer search and demand in the ...