We consider the revenue-maximization problem for a seller with an unlimited supply of identical goods, interacting sequentially with a population of n buyers through an on-line posted-price auction mechanism, a paradigm which is frequently available to vendors selling goods over the Internet. For each buyer, the seller names a price between 0 and 1; the buyer decides whether or not to buy the i...

This paper examines the competitiveness of winner-take-all price competition in homogeneous product oligopoly environments where underlying buyer demands and/or firms’ costs need not be continuous. Our analysis is motivated by the observation that a variety of economic settings have these features. For example, in 1996 an Ivy League university solicited bids from several vendors for its initiat...

Factor price equality across countries is an important implication of the Heckscher-Ohlin-Samuelson model of international trade. Although an influential theoretical result, the model has received surprisingly little empirical support. Burgman and Geppert (1993) argue that this might be due to the neglect of the nonstationarity property of the time series under consideration. Using a cointegrat...

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We analyze optimal production and pricing strategies in the single period (newsvendor) dual sourcing problem that entails local and offshore suppliers. The local supplier is used reactively as an emergency source following the realization of random demand. A multiplicative demand model is employed. We show that dual sourcing flexibility may decrease optimal price when emergency supply cost is s...

According to static models of industrial organization, a rise in competition decreases prices. In this paper, I test whether this conclusion can be reversed in the mobile telecommunications markets where dynamic e ciency e ects might be signi cant. The empirical test relies on the change in the intensity of competition introduced by the entry of the fourth mobile operator in France and the merg...

The scales used to describe the attributes of different choice options are usually open to alternative expressions, such as inches versus feet or minutes versus hours. More generally, a ratio scale can be multiplied by an arbitrary factor (e.g., 12) while preserving all of the information it conveys about different choice alternatives. We propose that expanded scales (e.g., price per year) lead...

Mobile number portability (MNP) means that customers using mobile service can retain their telephone numbers when they change operators. Mobile carriers are concerned about which factors influence willingness to churn of customers. This study examined these concerns through three steps. The first is checking whether willingness to churn between the different situations, without MNP and with MNP...

The value of a gas fired power plant depends on the spark spread, defined as the difference between the unit price of electricity and the cost of gas. We model the spark spread using two-factor model, allowing mean-reversion in short-term variations and uncertainty in the equilibrium price to which prices revert. We analyze two types of gas plants. The first type is a base load plant, generatin...