Search results for "Demand curve"
showing 9 items of 9 documents
Duopoly signal jamming
1993
This paper examines a repeated duopoly market with heterogeneous outputs. Firms have (common) prior beliefs over the values of an unknown parameter of each firm's demand curve. Firms cannot observe rivals' quantities, but can observe market prices, which are subject to random disturbances and hence provide noisy information that firms use to update their beliefs concerning the unknown parameters' values. Each firm can potentially signal jam, or strategically vary its output level in order to manipulate the distribution of likely market prices and hence the likely inferences drawn by the opponent. We find that the opportunity to signal-jam introduces two conflicting effects, arising out of t…
Market efficiency and the long-memory of supply and demand: is price impact variable and permanent or fixed and temporary?
2016
In this comment we discuss the problem of reconciling the linear efficiency of price returns with the long-memory of supply and demand. We present new evidence that shows that efficiency is maintained by a liquidity imbalance that co-moves with the imbalance of buyer vs. seller initiated transactions. For example, during a period where there is an excess of buyer initiated transactions, there is also more liquidity for buy orders than sell orders, so that buy orders generate smaller and less frequent price responses than sell orders. At the moment a buy order is placed the transaction sign imbalance tends to dominate, generating a price impact. However, the liquidity imbalance rapidly incre…
Screening Investments to Reduce the Risk of Hydrologic Failures in the Headwork System Supplying Apulia (Italy) – Role of Economic Evaluation and Ope…
2014
The paper introduces and applies a methodology to screen investments aimed at reducing water supply risks due to hydrologic failures in headwork systems for municipal use, based on the principles of cost-benefit analysis. As risk includes both the probability of a failure and its effect, the methodology combines a simulation module of the system, fed by a stochastic hydrologic input to reproduce the probability distribution of the failures, with a metric for supply failure damage provided by the price – demand relationship for municipal water. Benefits are assessed as the averted damage compared to a base case without investments. This approach is then combined with the classic discounted c…
Group Buying of Competing Retailers
2010
Under group buying, quantity discounts are offered based on the buyers' aggregated purchasing quantity, instead of individual quantities. As the price decreases with the total quantity, buyers receive lower prices than they otherwise would be able to obtain individually. Previous studies on group buying focus on the benefit buyers receive in reduced acquisition costs or enhanced bargaining power. In this paper, we show that buyers can instead get hurt from such cooperation. Specifically, we consider a two-level distribution channel with a single manufacturer and two retailers who compete for end customers. We show that, under linear demand curves, group buying is always preferable for symme…
A model for evaluating the environmental and functional benefits of “innovative” roundabouts
2015
This study looks at the singling out of a multi-parameter criterion for choosing conventional or innovative roundabout layouts, by taking functional, environmental and economic aspects into consideration. The performances of three conventional roundabouts (with different lane number at entries and through the ring), turbo-roundabouts and roundabouts with right-turn bypass lane on all the arms (flower roundabouts) have been compared in terms of vehicle delays and pollutant (carbon dioxide, nitrogen oxides, particle pollution (PM10 and PM2.5)) emissions. By means of closed-form capacity models and with the help of COPERT IV© software, several traffic simulations have been carried out, referre…
Environmental, functional and economic criteria for comparing “target roundabouts” with one- or two-level roundabout intersections
2015
The article describes a criterion based on functional, environmental and economic aspects for comparing conventional roundabouts with innovative one- or two-level roundabouts. We compared the performances of eight roundabout types, differing in geometric layout, number of lanes and traffic flow regulation from each other, with regard to vehicle delays and CO2, NOx, PM2.5 and PM10 pollutant emissions. Recently-designed roundabouts - target roundabouts and flyover roundabouts - have also been studied for their undoubted practical interest. By means of closed-form capacity models and CORINAIR methodology, several traffic simulations were carried out to examine a typical annual traffic demand c…
A Partial Equilibrium Model of Option Markets
2000
This paper addresses the questions who is buying and who is selling options on a stock, the optimal position to hold, and how this affects the price. The individual demand functions and the equilibrium allocation are derived using an asymptotically valid expansion. Trading occurs only at discrete dates; the option does not have to complete the market. The paper also discusses the conditions under which trade results, the importance of heterogeneity for trade, when preferences become irrelevant to price options, and the case in which there is only a spanning demand, but no risk-sharing demand in options.
Why Don't We Do What We Want? Non-Consumers and the Public Dilemma in Cultural Promotion
2005
We deal with tastes and preferences, revising the linkages between both in order to analyse the special case where we express preferences to goods that do not appeal to us. We deduce the concept of a deconstructed demand and define two types of goods (embarrassing and reputable). With the help of this structure we build a demand function for cultural promotion, where the non-market-expressed non-consumers' preferences are the basis of the demand for cultural policies. Finally, in this framework the State faces a dilemma that could be solved in different ways.
Retail pricing decisions and product category competitive structure
2010
This study addresses the use of demand forecasting techniques by retailers to support their decision making. Specifically, the authors propose a pricing decision support model for retailers to estimate optimal prices, whose output depends on the configuration of a supporting measurement model. The measurement model is a demand function that relates sales and prices within the category; optimal prices are those whose effects on demand and retail margins maximize the category's profitability. This investigation focuses particularly on the role of competitive structure, such that the authors consider two types of price competition asymmetries for demand forecasting: those depending on the bran…