A recent strategy carried out by the aircraft industry to reduce the total cost of the new generation fighters has consisted in the development of a single airframe with different technical and operational specifications. This strategy has been designed to reduce costs in the Research, Design and Development phase with the ultimate objective of reducing the final unit price per aircraft. This i...

In estimating the cost-effectiveness of diagnostic procedures, it is helpful to treat diagnostic information as a commodity with a unit price. The amount of useful information provided by a test result can be measured in binary units (bits), and the unit price of the information produced by the test result can be expressed in dollars per bit in much the same way that the price of gold is given ...

We examine the effects o subscription behavior and wealth transferring controlled by larger shareholders on price discount of private placement. Price discount of private placement and wealth transferring effect exhibits a significant trend when larger shareholders subscribe more private placement shares. Shares proportion subscribed by larger shareholders, shares size of private placement and ...

When new tradable fishing allowance markets are established, they are often accompanied by a period of high price volatility. These fluctuations play a significant role in determining the outcomes for the traders involved, and for the investment decisions that allowance holders make when using noisy price signals. This paper reports an evaluation of two market design features that may reduce vo...

T single-product firms with different quality levels and fixed limited capacities engage in sequential price competition in an essentially deterministic model where customers have heterogeneous valuations for both products. We develop conditions under which the leader (she) can take strategic advantage of her limited capacity by pricing relatively low, purposefully creating shortages and leavin...

A commonly observed two-stage pricing strategy for a custom-made product involves a prepurchase entry fee for a potential consumer and a purchase price if he decides to buy the product. We solve and compare two settings: In the first, the firm does not commit in advance to the second-stage price and in the second, the firm does. We show that without a commitment mechanism, the two price points ...

The manipulation of transfer prices changes the relative tax burdens multinational firms face in their different countries of operation and may even reduce a firm’s worldwide tax payments. At the same time, transfer price manipulation will often trigger changes in the tariffs that are levied on intra-company imports. For this reason, when tax rates change, as they did for many countries during ...

The transfer paradox, whereby a of resources that influences the equilibrium price benefits donor while harming recipient, is classic paradox in general theory. This paper pursues an experimental investigation using three-agent pure exchange economy predicted to have such paradox. results indicate endowment adjustment among agents market price, and consequently donors benefit from transfer, con...