We examine how gasoline price volatility impacts consumers’ price elasticity of demand for gasoline. Results show that volatility in prices decreases consumer demand for gasoline in the intermediate run. We also find that consumers appear to be less elastic in response to changes in gasoline price when gasoline price volatility is medium or high, compared to when it is low. Moreover, we find th...

Uncertainty over future output prices or input costs can affect investment by a riskneutral firm in two opposing ways. First, it can increase the value of the marginal unit of capital, which leads to more investment. This only requires that the stream of future profits generated by the marginal unit be a convex function of the stochastic variable; by Jensen's inequality, the expected present va...

Amazon Elastic Compute Cloud (EC2) is a web service that provides secure, re-sizable compute capacity in the cloud. It is designed to make web-scale cloud computing for developers. There are three different ways of pricing for Amazon EC2 instances: On-demand, Reserved instances, and Spot instances. Spot instances provide users with access to unused Amazon EC2 capacity at high discounts relative...

Previous research indicates that consumers often exhibit surprisingly poor knowledge of product prices. The present study investigates whether price knowledge, as measured by reference price accuracy, is related to price-sensitivity as measured by the price-elasticity of demand. We hypothesize that consumers are most knowledgeable regarding the prices of goods for which demand is most price-ela...

abstract in order to evaluation the effects of price policies (wheat guarantee price in each period and its price lag), environmental (planted area) and climatic (min and max average temperature, total annual precipitation, cold-day degree and hot-day degree) factors, we considered wheat yield in razavi-khorasan province (9 cities) for a 13-year statistical period (1371-72 to 1383-84). in this ...

Previous research, assuming linear pricing, has argued that telecommunications networks may use a high access charge as an instrument of collusion. I show that this conclusion is difficult to maintain when operators compete in nonlinear pricing: (i) As long as subscription demand is inelastic, profits can remain independent of the access charge, even when customers are heterogeneous and network...