Assuming consumers choose retailers based on their average price perceptions, previous research examined how different retailer pricing strategies (frequent discounting, deep discounting and everyday low pricing) influence these perceptions. In these studies, participants typically viewed competing retailer's product prices over multiple trials that simulated multiple shopping occasions. Then, ...

We establish the entry-deterring role of vertical contracts in a setting that does not rely on asymmetric information, the exclusivity of the incumbent’s contracts, limits on distribution channels, or restrictions on the ability to renegotiate contracts in case of entry. The optimal contract we describe is a three-part quantity discounting contract that involves the payment of an allowance to t...

The fastest and most effective way for a company to realize maximum profit is to get its pricing right. The right price can boost profit faster than increasing volume will; the wrong price can shrink it just as quickly. Yet many otherwise tough-minded managers miss out on significant profits because they shy away from pricing decisions for fear that they will alienate their customers. Worse, if...

The authors conducted in-depth qualitative research to examine questions around provider networks in employer health plans, particularly the development of so-called “narrow networks,” which have grown in the individual market exchanges under the Patient Protection and Affordable Care Act of 2010 (ACA). These narrow networks are characterized by offering considerably fewer health providers than...

We develop a model of sequential search when the cost of searching in each period is stochastic and show that in this setting optimal search entails delay when the cost of searching is high. This characterizes the fact that search activity is often intermittent. Furthermore, we show that if an individual has present-biased preferences this will lead to procrastination, i.e. non-optimal delay th...

Inspired by real-time ad exchanges for online display advertising, we consider the problem of inferring a buyer’s value distribution for a good when the buyer is repeatedly interacting with a seller through a posted-price mechanism. We model the buyer as a strategic agent, whose goal is to maximize her long-term surplus, and we are interested in mechanisms that maximize the seller’s long-term r...

A random life expectancy and a positive relationship between the probability of dying and the degree of addiction are incorporated into a model of rational addiction. The BeckerMurphy equality between the addictive commodity’s full price and marginal utility is modified by discounting the market price and marginal utility of the addictive commodity by the probability of survival. The individual...

We study a general network of agents that can be built with Zeus [?]. Relationships between agents can be peer, slave, master, discounter, or no relation at all. There are four possible strategies: the cheapest agent is selected, preference to slaves first, cut-price discounting based on the utility, and cheapest agent chosen, but preference given to cheapest slave. The cost of a task for the a...

We propose a new put asset where the option buyer receives the maximum price (discounted) that the option has ever traded at during the time period (which may be inde nitely long) between the purchase time and the exercise time | so that the buyer need look at the uctuations only occasionally and enjoys having little or no regret that he didn't exercise the option at an earlier time (except for...

The DCF model is a simple and effective way to predict the intrinsic value of stock by discounting future dividends. In this paper, China Construction Bank used as research object valued [1]. results show that current share price undervalued, with large gap between seen public true Bank, there still plenty room go in decades come. so it recommended increase wait for gains [2].