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Cost Models (cost + models)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting70%
Mathematics and Statistics20%

Selected Abstracts

Comparing Travel Cost Models And The Precision Of Their Consumer Surplus Estimates: Albert Park And Maroondah Reservoir

AUSTRALIAN ECONOMIC PAPERS, Issue 4 2003
Nicola Lansdell
This study examines different types of Travel Cost Models to estimate and compare the recreational values of two parks in Victoria, Australia: Maroondah Reservoir and Albert Park. Zonal Travel Cost models and a number of different functional forms are used in this study. Standard errors are used to estimate upper and lower bounds for the recreational value estimates, enabling comparison between the precision of the different types of Travel Cost Models and functional forms estimated. The double log functional form city zone Travel Cost Model was chosen as the best estimate for Albert Park's recrea-tional value at $22.9 million per year. Maroondah Reservoir's best estimate is provided by the double log functional form regional zone Travel Cost Model at a value of $2.5 million per year, consider-ably less than that of Albert Park. Albert Park is found to have a comparatively larger ,proximity power' (attracting many more visitors) while Maroondah Reservoir exhibited a larger degree of ,pulling power' (a higher proportion of its visitors travel further distances). [source]

Optimizing Service Attributes: The Seller's Utility Problem,

DECISION SCIENCES, Issue 2 2001
Fred F. Easton
Abstract Service designers predict market share and sales for their new designs by estimating consumer utilities. The service's technical features (for example, overnight parcel delivery), its price, and the nature of consumer interactions with the service delivery system influence those utilities. Price and the service's technical features are usually quite objective and readily ascertained by the consumer. However, consumer perceptions about their interactions with the service delivery system are usually far more subjective. Furthermore, service designers can only hope to influence those perceptions indirectly through their decisions about nonlinear processes such as employee recruiting, training, and scheduling policies. Like the service's technical features, these process choices affect quality perceptions, market share, revenues, costs, and profits. We propose a heuristic for the NP-hard service design problem that integrates realistic service delivery cost models with conjoint analysis. The resulting seller's utility function links expected profits to the intensity of a service's influential attributes and also reveals an ideal setting or level for each service attribute. In tests with simulated service design problems, our proposed configurations compare quite favorably with the designs suggested by other normative service design heuristics. [source]

Measures of Fit for Rational Expectations Models

JOURNAL OF ECONOMIC SURVEYS, Issue 3 2002
Tom Engsted
This survey provides a detailed description of some of the recent theoretical and empirical literature on rational expectations econometrics. The survey pays special attention to non,stationarity of the data, and to the various methods for evaluating rational expectations models that have been developed as alternatives to the classical statistical approach of testing overidentifying restrictions. These methods have become very popular and widely used in empirical research. We provide an illustration using Danish stock market data, and we summarize the many results obtained recently using these measures in areas as diverse as stock prices, the term structure of interest rates, exchange rates, consumption and saving, the balance of payments, tax,smoothing, hyperinflation, and linear quadratic adjustment cost models for inventories, labour demand, and money demand. [source]

Small price changes and menu costs

MANAGERIAL AND DECISION ECONOMICS, Issue 7 2007
Saul Lach
We find that while some individual price changes are indeed ,small', the average price change of different products within a store in any given month is not. Moreover, the smaller the price change of an individual product, the larger the average price change of the remaining products sold by the store. We argue that these findings are consistent with extensions of menu cost models of price-setting behavior to multiproduct firms when these firms have high average costs and low marginal costs of changing prices. Copyright © 2007 John Wiley & Sons, Ltd. [source]

Probabilistic solution and bounds for serial inventory systems with discounted and average costs

NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 6 2007
Xiuli Chao
Abstract We consider the infinite horizon serial inventory system with both average cost and discounted cost criteria. The optimal echelon base-stock levels are obtained in terms of only probability distributions of leadtime demands. This analysis yields a novel approach for developing bounds and heuristics for optimal inventory control polices. In addition to deriving the known bounds in literature, we develop several new upper bounds for both average cost and discounted cost models. Numerical studies show that the bounds and heuristic are very close to optimal.© 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007 [source]

The testable implications of a capital-accumulating, price-taking, vertically integrated, non-renewable resource extracting model of the firm,

OPTIMAL CONTROL APPLICATIONS AND METHODS, Issue 1 2010
Michael R. Caputo
Abstract An exhaustive set of refutable implications of a price-taking, capital-accumulating, vertically integrated Hotelling model is derived by way of intertemporal duality theory. The curvature properties of the model come in the form of a semidefinite matrix, and an upper bound to the rank of the matrix is established. The theorems, for the first time, permit one to determine if a given sample of data is fully consistent with the generalized Hotelling model, as well as the recovery of theoretically valid estimates of the shadow values of non-renewable resource and capital stocks. The testable implications of the model go beyond those of the archetypal Hotelling and adjustment cost models, and as such, display several properties not present in the prototype models. Copyright © 2008 John Wiley & Sons, Ltd. [source]

Dynamic adjustment cost models with forward-looking behaviour

THE ECONOMETRICS JOURNAL, Issue 1 2006
Luca Fanelli
Summary, In this paper we propose a new approach for dynamic decision problems where forward-looking agents choose a set of non-stationary variables subject to quadratic adjustment costs. It is assumed that expectations are computed by a cointegrated Vector Equilibrium Correction Model (VEqCM). The role of feedbacks from the decision to the explanatory variables on solution properties and modelling approach is discussed. We show that once the system of interrelated Euler equations stemming from the agent's optimization problem is embedded within the VEqCM, a switching algorithm based on Generalized Least Squares can be used to estimate and test the model. A labour demand model for two Danish manufacturing industries is investigated empirically. [source]

Ranked Set Sampling: Cost and Optimal Set Size

BIOMETRICS, Issue 4 2002
Ramzi W. Nahhas
Summary. Mclntyre (1952, Australian Journal of Agricultural Research3, 385,390) introduced ranked set sampling (RSS) as a method for improving estimation of a population mean in settings where sampling and ranking of units from the population are inexpensive when compared with actual measurement of the units. Two of the major factors in the usefulness of RSS are the set size and the relative costs of the various operations of sampling, ranking, and measurement. In this article, we consider ranking error models and cost models that enable us to assess the effect of different cost structures on the optimal set size for RSS. For reasonable cost structures, we find that the optimal RSS set sizes are generally larger than had been anticipated previously. These results will provide a useful tool for determining whether RSS is likely to lead to an improvement over simple random sampling in a given setting and, if so, what RSS set size is best to use in this case. [source]