This paper examines the role of money in understanding the behavior of asset prices and whether and how monetary policy should react to asset prices such as stock prices and equity premiums. To do so, I introduce money via the form of transaction cost into a production economy with limited stock market participation where agents with lower inter-temporal elasticity of substitution (IES), called...

[1] European water policy requires all EU Member States to implement volumetric water pricing at rates that roughly cover the total costs of providing water services. The objective of this paper is to develop a methodology that will enable us to analyze the differential impact that a water pricing policy for irrigation would have on heterogeneous farmers of an irrigated area. For this purpose, ...

In this paper we study the effect of dynamic behavior of the market on the optimum pricing policy for a revenue maximizing firm in a monopoly market. We show that the optimum pricing policy in the dynamic market can be very different from the static one, and the most important contributing factors for this difference are: consumer response time, planning period and the discount rate. Furt...

We consider a stylized dynamic pricing model in which a monopolist prices a product to a sequence of customers, who independently make purchasing decisions based on the price offered according to a logit choice model. The parameters of the logit model are unknown to the seller, whose objective is to determine a pricing policy that minimizes the regret, which is the expected difference between t...

Knowing each customer’s preferences enhances the ability to design and market the right offer in terms of content and price. The more a retailer interacts with its customers, the more it learns as it observes revealed preferences. Lower prices typically lead to more interactions and more learning but lower short-term profits. This paper brings the concept of learning functions to this dynamic p...

Future communication networks are envisioned to be based upon a new communication paradigm which is user centric, i.e., users have freedom to choose a service provider to maximize their utilities. Pricing schemes adopted by service providers will impact the decision of users in selecting networks. In this paper, we formulate the problem as a Markov Decision Process (MDP) framework and apply Q-l...

Pricing is one of the major aspects of decision making in supply chain. In the previous works mostly a centralized environment is considered indicating the retailers cannot independently apply their decisions on the pricing strategy. Although in a two-echelon decentralized environment it may be possible that supply chain contributors have encountered with different market power situations which...

Predictive pricing (e.g., Google’s “Smart Pricing” and Yahoo’s “Quality-Based Pricing”) and revenue sharing are two important tools that online advertising networks can use in order to attract content publishers and advertisers. We develop a simple model of the pay-per-click advertising market to study the market effects of these tools. We then present an algorithm, PricingPolicy, for computing...

BACKGROUND Restaurants are among the most important and promising venues for environmental, policy, and pricing initiatives to increase fruit and vegetable (F&V) intake. This article reviews restaurant-based environmental, policy and pricing strategies for increasing intake of fruits and vegetables and identifies promising strategies, research needs, and innovative opportunities for the future....

We consider the setting in which an electric power utility seeks to curtail its peak electricity demand by offering a fixed group of customers a uniform price for reductions in consumption relative to their predetermined baselines. The underlying demand curve, which describes the aggregate reduction in consumption in response to the offered price, is assumed to be affine and subject to unobserv...