In this paper, we study a multi-stage production sourcing problem where tariff concessions can be exploited at the firm level using free trade agreements between countries. To solve the problem, an algorithm which embeds a very large-scale neighborhood (VSLN) search into a simulated annealing framework is developed. A numerical study is conducted to verify the effectiveness of the solution appr...

We study supply chain contracting with investment in demand forecasting under downstream competition. Supporting some recent industry observations, we show that under common pricing schemes, such as wholesale price or two-part tariff, downstream firms overinvest in demand forecasting. Analyzing the bounds and determinants of overinvestment, we demonstrate that the wholesale price and two-part t...

This paper extends the work of Wang (2002) by considering a differentiated Stackelberg model, when the leader firm is an inside innovator and licenses its new technology by three options, that is, fixed-fee licensing, royalty licensing, and two-part tariff licensing. The main contributions and conclusions of this paper are threefold. First of all, this paper derives a very different result from...

Policy-makers and analysts are often concerned with the effect of tariff reductions, as part of trade liberalisation, on the volume of imports, and in particular adverse effects on domestic import-competing sectors. While there is limited evidence at an aggregate country level that imports increase following trade liberalisation, there is very little empirical evidence at a sector level. In the...

 Most debates about the role of tariff cuts on the level of employment and rate of wages in labor market have come out of well-known Hecscher – Ohlin and Stopler – Samuelson (HOS) theorems. Considering the fact that we have divided the workforce into skilled and unskilled labors the present paper assesses the impacts of tariff cuts on labor market indicators in Iran. To address these issues...

One of the major areas for research and investment related to the Internet is the provision of quality of service (QoS). In this paper, study the equilibrium outcomes when two Internet Access Providers (IAPs) interact. These IAPs are assumed to be rural dialup providers (as data shows that duopolies often exist in such markets), using empirically based demand functions. To determine the equilib...

This paper analyzes the increasing tariff protection in the Spanish iron and steel industry over the first third of the 20th century. Learning effects are explicitly included to model a dynamic game of trade liberalization. The government chooses the tariff level while firms decide how much to produce each period. Firm’s production decisions determine their future cost levels. Assuming that lea...

In this paper we examine how preferential trade liberalization affects the terms of trade, external tariffs and welfare of the integrating countries and the rest of the world. Our analysis is based on a three-country, three-good, general equilibrium model with symmetric customs union (CU) members. The model generalizes previous work by considering more general consumer preferences and productio...

Past research in marketing and psychology suggests that pricing structure may influence consumers’ perception of value. In the context of two commonly used pricing schemes, pay-peruse and two-part tariff, we evaluate the impact of pricing structure on consumer preferences for access services. To this end, we develop a utility-based model of consumer retention and usage of a new service. A notab...

tele.ring is a mobile phone organization selling contracts and cell phones in the Austrian market. The market situation in 2005 was highly competitive and dynamic resulting in relatively short tariff life cycles. Excessively long lead times made tele.ring’s management feel dissatisfied with their new tariff development process. Furthermore, a new competitor had entered the market posing a major...