Menu costs, or price adjustment costs, refer to the total cost of changing the price of a product, which includes the physical cost of making the change as well as the managerial cost of making the price change decision. Prior work has presumed that online retailers face no menu costs, potentially leading to Bertrand competition and the Law of One Price. However, little empirical evidence exist...

Positive mathematical programming (PMP) has a substantial number of applications in the field agricultural and resource economics. Their focus often been placed on simulation analysis farmers’ response to drastic changes exogenous factors especially brought about by policy changes. In present study, an exploration was made widen application area PMP approach, targeting expectation toward farm-g...

What is the value of a financial instrument in an illiquid market? The classical valuation theory which is based on the law of one price assumes implicitly that market participants can trade freely in both directions at the same price. In the absence of perfect liquidity the law of one price should be replaced by a two price theory where the terms of trade depend on the direction of the trade. ...

The purpose of the present research is to investigate the effective channels of the monetary transmission mechanism in Iran. To do so, we devised a New Keynesian Dynamic Stochastic General Equilibrium Model. In our model, the different types of nominal rigidities are introduced beside all the related structural equations, which are extracted and linearized around a steady state point. Furthermo...

We conducted preference assessments with 4 typically developing children to identify potential reinforcers and assessed the reinforcing efficacy of those stimuli. Next, we tested two predictions of economic theory: that overall consumption (reinforcers obtained) would decrease as the unit price (response requirement per reinforcer) increased and that the cost and benefit components that defined...

This paper analyses the time series properties of the daily return from the ten year bond futures contracts traded on the Sydney Futures Exchange (SFE), together with the transmission of volatility from other interest rate futures contracts. The methodology relies on appropriate modelling of the conditional hetersocedasticity observed in the futures price change series. It is then evidnt that t...

We consider a non necessarily complete financial market with one bond and one risky asset, whose price process is modelled by a suitably integrable, strictly positive, càdlàg process S over [0, T ]. Every option price is defined as the conditional expectation under a given equivalent (true) martingale measure P, the same for all options. We show that every positive contingent claim on S can be ...