			Home About us Contact

Pricing Behavior (pricing + behavior)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Pricing Behavior and the Response of Hours to Productivity Shocks

JOURNAL OF MONEY, CREDIT AND BANKING, Issue 7 2007
DOMENICO J. MARCHETTI
pricing behavior; technology shocks; hours Recent contributions have suggested that technology shocks have a negative impact on hours, contrary to the prediction of standard flexible-price models of the business cycle. Some authors have interpreted this finding as evidence in favor of sticky-price models, while others have either extended flexible-price models or disputed the empirical finding itself. In this paper, we estimate a variety of alternative total factor productivity measures for a representative sample of Italian manufacturing firms and on average find a negative effect of productivity shocks on hours growth. More interestingly, using the reported frequency of price reviews, we show that the contractionary effect is stronger for firms with stickier prices and weaker or not significant for firms with more flexible prices. Price stickiness remains a crucial factor in shaping the response of hours after controlling for product storability or market power. [source]

Trade Reform and Manufacturing Pricing Behavior in Four Archetype Asia-Pacific Economies*

ASIAN ECONOMIC JOURNAL, Issue 2 2005
Rod Tyers
F12; F14; N75 General equilibrium models are constructed of four Asia-Pacific economies that differ according to their levels of development, the comparative sizes of their manufacturing sectors and their patterns of comparative advantage and trade protection. The countries chosen are Australia, an industrialized importer of manufactures; Japan, an industrialized exporter; the Philippines, a developing importer; and the Republic of Korea, a developing exporter. Manufacturing industries are characterized as comprising identical oligopolistic firms producing homogeneous goods that are differentiated from competing imports. Oligopoly behavior notwithstanding, trade reforms are found to yield conventional results in that net economic gains are small while implicit transfers are substantial. More competitive (non-collusive) pricing by oligopolistic firms, which might be achieved through reform of competition law and trade practices surveillance, yields larger net gains and these gains tend to accrue to all domestic primary factors. Such reforms also yield substantial interaction between oligopoly behavior and economic and industrial structure. [source]

Learning-by-Doing, Organizational Forgetting, and Industry Dynamics

ECONOMETRICA, Issue 2 2010
David Besanko
Learning-by-doing and organizational forgetting are empirically important in a variety of industrial settings. This paper provides a general model of dynamic competition that accounts for these fundamentals and shows how they shape industry structure and dynamics. We show that forgetting does not simply negate learning. Rather, they are distinct economic forces that interact in subtle ways to produce a great variety of pricing behaviors and industry dynamics. In particular, a model with learning and forgetting can give rise to aggressive pricing behavior, varying degrees of long-run industry concentration ranging from moderate leadership to absolute dominance, and multiple equilibria. [source]

Measuring Market Power in the Ready-to-Eat Cereal Industry

ECONOMETRICA, Issue 2 2001
Aviv Nevo
The ready-to-eat cereal industry is characterized by high concentration, high price-cost margins, large advertising-to-sales ratios, and numerous introductions of new products. Previous researchers have concluded that the ready-to-eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense nonprice competition. This paper empirically examines this conclusion. In particular, I estimate price-cost margins, but more importantly I am able empirically to separate these margins into three sources: (i) that which is due to product differentiation; (ii) that which is due to multi-product firm pricing; and (iii) that due to potential price collusion. The results suggest that given the demand for different brands of cereal, the first two effects explain most of the observed price-cost margins. I conclude that prices in the industry are consistent with noncollusive pricing behavior, despite the high price-cost margins. Leading firms are able to maintain a portfolio of differentiated products and influence the perceived product quality. It is these two factors that lead to high price-cost margins. [source]

Obstacles to disinflation: what is the role of fiscal expectations?

ECONOMIC POLICY, Issue 40 2004
Oya Celasun
SUMMARY Disinflation deficits Persistently high expected inflation often makes it difficult for policy-makers to recover from inflationary episodes without substantial output losses. Using survey data from eleven disinflation episodes, we can assess whether the more or less sluggish decline of inflation rates towards lower target levels is related to backward-looking pricing behavior or to imperfect credibility of the stabilization efforts. We find that expectations of future inflation play a much more important role than past inflation in shaping the inflation process. Second, we find that an improvement in various measures of fiscal balances significantly reduces inflation expectations. This evidence suggests that, when attempting to stabilize inflation, priority should be given to building fiscal credibility. , Oya Celasun, R. Gaston Gelos and Alessandro Prati [source]

Pricing Behavior and the Response of Hours to Productivity Shocks

Credit Risk Assessment and Relationship Lending: An Empirical Analysis of German Small and Medium-Sized Enterprises,

JOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 2 2007
Patrick Behr
We estimate a logit scoring model for the prediction of the probability of default by German small and medium-sized enterprises (SMEs) using a unique data set on SME loans in Germany. Our scoring model helps SMEs to gain knowledge about their default risk, which can be used to approximate their risk adequate cost of debt. This knowledge is likely to lead to a detection of hold-up problems that German SMEs might be confronted with in their bank relationships. Furthermore, it allows them to monitor their bank's pricing behavior and it reduces information asymmetries between lenders and borrowers. Finally, it can influence their future financing decisions toward capital market-based financing. [source]

Horizontale Fusionen auf zweiseitigen Märkten am Beispiel von Printmedien

PERSPEKTIVEN DER WIRTSCHAFTSPOLITIK, Issue 3 2006
Ralf Dewenter
This discussion frequently neglects the particularities of media markets, for example the mutual interconnection of advertising and media markets, i.e. of "two-sided markets". In this paper the impact of "two-sided markets" on mergers is analyzed. The results indicate that an intensive analysis of each case because of the heterogeneity of each market and a stronger economization of merger control would be useful. The basis for an economization could be quantitative analyses that are conducted using existing market data. The print media market is an example of the peculiarities of "two-sided markets" at which network externalities lead to pricing behavior that deviates from that on normal markets. [source]