The classical Economic Order Quantity (EPQ) models consider that the production rate is fixed and constant. But in many manufacturing and production processes the production rate is a function of stock on hand. For this sort of situations we develop and analyze an EPQ model with the assumption that the production rate is a function of the on-hand inventory and demand is a function of selling pr...

The output supply and input demand are closely interlinked to each other. Therefore, any change in input and output prices affect the input demand and output supply simultaneously. The present study used cross sectional cum time series data of Vidarbha region of Maharashtra state for cotton crop for the ten years from 1999-00 to 2008-09 were collected from the Agricultural Prices and costs Sche...

We investigate the effect of sequential commitment in the decentralized newsvendor model with price-dependent demand. Sequential commitment allows the self-profit maximizing parties to commit to contract parameters (e.g., wholesale price, retail price, buyback price and order quantity) sequentially and alternately, and we investigate its effect on the equilibrium profits of the channel and its ...

We consider the design of strategies for market making in an exchange. A market maker generally seeks to profit from the difference between the buy and sell price of an asset, yet the market maker also takes exposure risk in the event of large price movements. Profit guarantees for market making strategies have typically required certain stochastic assumptions on the price fluctuations of the a...

Motivated by recent progress on pricing in the AI literature, we study marketplaces that contain multiple vendors offering identical or similar products and unit-demand buyers with different valuations on these vendors. The objective of each vendor is to set the price of its product to a fixed value so that its profit is maximized. The profit depends on the vendor’s price itself and the total v...

The use of N fertilizer in agriculture is a major source of Nitrous Oxide, an important greenhouse gases. Market-based instruments, such as incentives or taxes, may help reduce Nitrous Oxide emission by changing Nitrogen application rate. Using a dynamic programming approach, we found that changing corn price or fertilizer price have effects on both farm profit and Nitrogen application rate. Ho...

We use a statistical model to estimate impulse responses of sectoral price indices to aggregate shocks and to sector-specific shocks. In the median sector, 100 percent of the long-run response of the sectoral price index to a sector-specific shock occurs in the month of the shock. The Calvo model and the sticky-information model match this finding only under extreme assumptions concerning the p...

Determining an appropriate transfer price is of importance to a firm composed of divisional profit centers since it significantly affects decision-makings of each profit center and then the firm's profit. In this paper, we investigate the effects of negotiated and administered transfer pricing on the profits of each center and the firm based on a differential game involving an operations depart...

In the uniform-price auction with adjustable supply, the seller decides how much to sell after receiving the bids so as to maximize its ex post profit. Given N bidders and adjustable supply, all equilibria of the uniform-price auction lead to price on order 1 N3 below the Walrasian price. By contrast, given the usual market-clearing rule it is well-known that the uniform-price auction can lead ...