Accessibility is one of the major determinants of housing price. To model housing price, many urban researchers have adopted the method of hedonic analysis. The main question addressed in this paper is: Are the existing hedonic price models adequate in capturing the effect of accessibility? In most of these models, accessibility is represented by rather simplistic measures, such as "distance-to...

The relationship between inflation and relative price variability (RPV) is widely believed to be positive and stable. Using disaggregated CPI data for the U.S. and Japan, however, this study finds that the relationship is neither linear nor stable over time. The overall relationship is approximately U-shaped and symmetric around a certain threshold: a positive correlation on one side but a trad...

The oft-observed inverse relationship between farm size and productivity is generally explained by labor market imperfections. Although other explanations exist (e.g., size-sensitive cropping patterns and variable soil quality), the literature ignores uncertainty as an explanation. Using a simple two-period model of an agricultural household that both produces and consumes under price uncertain...

versus Concrete Inputs: Construal Level Theory While there may be several different ways of addressing this inconsistency, the current research proposes one such resolution by drawing on construal level theory (CLT; Trope, Liberman, and Wakslak 2007). CLT states that objects, events, and individuals can be perceived as being either psychologically near or far along different dimensions of dista...

We address the simultaneous determination of pricing and capacity investment strategies in a multi-period setting under demand uncertainty. In our model a monopolistic firm makes three decisions: capacity investment (or disinvestment), production (inventory), and price, all of which can be specified dynamically as a function of the state of the system. We analyze the optimal joint strategy and ...

Do consumers prefer auctions that allow them to place more precise bids to auctions that accept less precise bids? Can consumers accurately estimate their need for price-elicitation precision? This research addresses these questions by applying the notion of compatibility to the relationship between consumers’ bidding price uncertainty and the precision implied by the price-elicitation task. Da...

This paper uses annual data from 1980-1998 to test two models of the relationship between wholesale and retail marijuana prices. Results from regressions of retail prices on wholesale prices reject a multiplicative model, in which the difference in prices between levels is proportional to the wholesale price, in favor of an additive model, in which the price difference is a fixed amount. This f...

This paper considers a duopoly price-choice game in which the unique Nash equilibrium is the Bertrand outcome. Price competition, however, is imperfect in the sense that the market share of the high-price firm is not zero. Economic intuition suggests that price levels should be positively related to the market share of the high-price firm. Although this relationship is not predicted by standard...

Maximizing economic earnings is the most common goal in cut-off grade optimization of open-pit mining operations. When this is the case, the price of the product has a critical effect on optimum value of cut-off grade. This paper investigates the relationship between optimum cut-off grade and price to maximize total cash flow and net percent value (NPV) of operation. In order to visualize this ...