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Positive Price (positive + price)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Further Reflections on the Corn,Guano Model

METROECONOMICA, Issue 3 2001
Christian Bidard
The corn,guano model is the simplest model with exhaustible resources. On the constant rate of profit hypothesis, a change of the numeraire from corn to corn-and-labour affects the price trajectories. In particular, the corn price at the exhaustion date is no longer equal to its long-term level. The system of intertemporal prices admits one degree of freedom. Only one path, called the natural path, admits a positive price, wage and royalty for any number of periods before exhaustion. But, for a given exhaustion date, the non-natural paths close to it are also associated with positive prices, wages and royalties. In this paper we study the characteristics of the natural path and the properties of the non-natural paths. The results are partly extended to multisector models. [source]

Educational Standards in Private and Public Schools,

THE ECONOMIC JOURNAL, Issue 533 2008
Giorgio Brunello
When school quality increases with the educational standard set by schools, education before college need not be a hierarchy with private schools offering better quality than public schools. In our model, private schools can offer a lower educational standard at a positive price because they attract students with a relatively high cost of effort, who would find the high standards of public schools excessively demanding. We estimate the key parameters of the model and show that majority voting supports a system where private schools have higher quality in the US and public schools have higher quality in Italy. [source]

PROFIT MAXIMIZATION AND SOCIAL OPTIMUM WITH NETWORK EXTERNALITY,

THE MANCHESTER SCHOOL, Issue 2 2006
URIEL SPIEGEL
The paper analyzes the options open to monopoly firms that sell Internet services. We consider two groups of customers that are different in their reservation prices. The monopoly uses price discrimination between customers by producing two versions of the product at positive price for high-quality product and a free version at zero price for lower-quality product. The monopoly can sell advertising space to increase its revenue but risks losing customers who are annoyed by advertising. Network externalities increase the incentive to increase output; thus we find cases where the profit maximization is consistent with maximum social welfare. [source]

Peer-to-Peer File Sharing and the Market for Digital Information Goods

JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 2 2010
Ramon Casadesus-Masanell
We study competitive interaction between two alternative models of digital content distribution over the Internet: peer-to-peer (p2p) file sharing and centralized client,server distribution. We present microfoundations for a stylized model of p2p file sharing where all peers are endowed with standard preferences and show that the endogenous structure of the network is conducive to sharing by a significant number of peers, even if sharing is costlier than freeriding. We build on this model of p2p to analyze the optimal strategy of a profit-maximizing firm, such as Apple, that offers content available at positive prices. We characterize the size of the p2p network as a function of the firm's pricing strategy, and show that the firm may be better off setting high prices, allowing the network to survive, and that the p2p network may work more efficiently in the presence of the firm than in its absence. [source]