We provide a simple behavioral explanation of why manufacturers frequently announce non-binding suggested retail prices for their products. Our model is based on the assumption that once the actual price for a product exceeds its suggested retail price, the marginal propensity to consume suddenly jumps downward. We show that this may induce a monopolistic retailer to set the price equal to the ...

Changes in production cost always lead to changes in wholesale and retail price. How to adjust the wholesale price, retail price and order quantity in order to derive an optimal strategy for the supplier and the retailer is one of the most perplexing problems. The purpose of this study is to develop a strategy to maximize the expected profit by simultaneously determining the adjustment ratio o...

In this paper, an incentive policy is proposed to coordinate ordering, lead time, and pricing strategies in a two-echelon manufacturing supply chain (SC) consisting of one manufacturer and one retailer. The system is faced with a stochastic demand which depends on both price and lead time. The manufacturer decides on production size and manufacturing acceleration rate while the retailer determi...

This study investigates the effects of dynamic-price retail contracting on end-to-end power system operations. Performance is evaluated by means of carefully defined metrics for system stability, market efficiency, and market participant welfare. The study is carried out for an Integrated Retail and Wholesale (IRW) Test Case for which households have smart (price-responsive) air-conditioning (A...

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...

abstract producing of flowers and ornamental plants in iran has some challenges and failure in the market structure and marketing of these products. in this study, we evaluated the different marketing channels of flowers and ornamental plants in the existing market structure according to economic criteria and the characteristics of market structure. cut-rose and esfahan province were selected a...

OBJECTIVES Price is a key obstacle for consumer access to essential drugs, especially in developing countries. This study sought to compare the retail prices of essential drugs on the private market in Brazil with that of two international pricing standards. METHODS The retail price of all drugs on Brazil's Essential Drugs List, July 2000 edition, were compared to the retail price of the same...

INTRODUCTION China is the biggest tobacco producer and consumer in the world. Raising cigarette taxes and increasing tobacco retail prices have been prove as effective strategies to reduce tobacco consumption and the prevalence of smoking in western countries. But in China, it is uncertain how an increase of cigarette retail price will influence the tobacco consumption. METHODS From April to ...

We use bank retail interest rates as price examples in a study of the determinants of price durations. The extraordinary richness of the data allows us to address some major open issues from the price rigidity literature, such as the functional form of the hazard of changing a price, the effect of firm and market characteristics on the duration of prices, and asymmetry in the speed of adjustmen...

it is very important to analyze the rice market structure in mazandaran province, as this province is competent to produce rice. mazandaran rice market was analyzed by completing 55 questionnaires in producer, wholesaler and retailers level, randomly in 2009. results show that marketing margins of two varieties namely- local (tarom) and multi-product- were 5850 and 3700 rials, respectively; als...