We investigate how gasoline prices affect automobile purchases. We find that the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets. In the new car market, the adjustment is primarily in market shares, while in the used car market, the adjustment is primarily in prices. The effects are largest for the mostand ...

This paper investigates the extent to which world market price changes are transmitted through changes in border prices into local producer prices for four agricultural product markets in Tanzania: sugar, cotton, wheat and rice. The changes in the marketing channels for each of these products resulting from market liberalization are described. The statistical analysis finds that, in general, Ta...

We apply methods of quantum mechanics for mathematical modeling of price dynamics at the financial market. The Hamiltonian formalism on the price/price-change phase space describes the classicallike evolution of prices. This classical dynamics of prices is determined by ”hard” conditions (natural resources, industrial production, services and so on). These conditions are mathematically describe...

Japan's rice sector is supported by high prices paid by consumers that allow many farm households to maintain small rice farms. Japan's government controls trade within a tariff-rate quota and imposes a prohibitively high tariff on imports outside the quota. Within Japan, diversion programs pay farmers to substitute other crops for rice since, without government-mandated diversion, supply would...

We investigate how gasoline prices affect automobile purchases. We find that the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets. In the new car market, the adjustment is primarily in market shares, while in the used car market, the adjustment is primarily in prices. The effects are largest for the mostand ...

Experimental economics techniques are used in this paper to examine the benefits and potential adoption of Internet-based electronic auctions for the initial public offerings (IPO) market. The IPO market is dominated by investment banks, which organize the promotion, pricing, and allocation of new securities. The high transaction costs and inefficiency evident in the IPO market make it an appar...

In this paper we empirically analyze and compare the Libor and Swap Market Models, developed by Brace, Gatarek, and Musiela (1997) and Jamshidian (1997), using paneldata on prices of US caplets and swaptions. A Libor Market Model can directly be calibrated to observed prices of caplets, whereas a Swap Market Model is calibrated to a certain set of swaption prices. For both one-factor and two-fa...

The futures market in West Texas Intermediate crude oil was introduced in 1983 with a posted-price cash market in which the posted price changed a few times a year. By 2002, the cash price changed almost daily. Evidence from producers’ invoices shows that this initially low frequency of price changes reflects transactions prices. Using experiments, we show that the introduction of a futures mar...

Entrepreneurs need cash to finance their investments. Since cash is costly to hold, entrepreneurs underinvest. If entrepreneurs are able to access secondary financial markets, then they can sell some of their less liquid assets for cash and invest at a higher level. When the secondary financial markets are over-the-counter (OTC), the amount of liquidity (cash) that is in the market affects asse...