Search results for "discount"

Dynamic Portfolio Optimization with Stochastic Programming

2010

Welfare, Home Market Effects, and Horizontal Foreign Direct Investment

2005

We investigate the spatial distribution and organization of an imperfectly competitive industry when firms may choose to operate more than a single production unit. Focusing on a short-run setting with a fixed mass of firms, we fully characterize the spatial equilibria analytically. Comparing the equilibrium and the first-best, we show that both organizational and spatial inefficiencies may arise. In particular, when fixed costs are low enough the market outcome may well lead to overinvestment and, therefore, to too many multinationals operating from a social point of view. Furthermore, once multinationals are taken into account, the market outcome may well lead too little agglomeration.

Product and service bundling decisions and their effects on purchase intention

1997

Examines the effects of four factors (the bundle: pure or mixed, the price discount, the functional complementarity of bundle components, and the number of bundle components) on consumers’ intentions to purchase product and service bundles. The findings were relatively consistent across product (automobile) and service (automotive service) contexts, and illustrate that pure bundles are preferred to mixed bundles, and a greater price discount is preferred to a lesser one. The results also indicate that five component bundles generate greater purchase intention than either three or seven component bundles, and that “very related” bundle components result in greater purchase intention than eit…

Self-Enforcing International Environmental Agreements: Adaptation and Complementarity

2018

This paper studies the impact of adaptation on the stability of an international emission agreement. To address this issue we solve a three-stage coalition formation game where in the first stage countries decide whether or not to sign the agreement. Then, in the second stage, signatories (playing together) and non-signatories (playing individually) select their levels of emissions. Finally, in the third stage, each country decides on its level of adaptation non co-operatively. We solve this game for two models. For both, it is assumed that damages are linear with respect to emissions which guarantee that emissions are strategic complements in the second stage of the game. However, for the …

Identifying Portfolio-Based Risk Factors in Foreign Exchange Markets

2018

This paper shows that a link between the conditional mean and conditional volatility of any factor-mimicking portfolio in the foreign exchange (FX) market must exist if the proposed portfolio-based currency factor is priced and the pricing kernel has a linear factor structure. Thereby, this paper tests whether the carry risk factor and currency momentum are priced risk factors. Surprisingly, the carry risk factor does not meet the necessary conditions consistent with being a priced risk factor, whereas currency momentum indeed meets those criteria. The findings also indicate that the relation between the conditional mean and conditional risk is moreover economically reasonable for the curre…

Fair Executive Compensation: Is Kalai-Smorodinsky More Just than Nash ?

2015

By considering Phelps' curve, the best disagreement point (BATNA) and the gains of negotiation, we examine what a fair distribution of executive wages should be. Beyond equality and Rawls' maximin, we focus on equality-of-gains (Nash) and on relative-equality-of-gains (Kalai-Smorodinsky). Equality-of-gains is close to maximin; executives may not accept to bargain. Relative-equality-of-gains allows executives and workers to obtain equal gains in percentage; executive compensation is not intolerably high to the price of a higher total payroll.

Energy efficiency in the European Union: What can be learned from the joint application of directional distance functions and slacks-based measures?

2014

Abstract Over the last few years concerns have increased about the energy mix in many countries. These concerns have been of greater magnitude for countries with a common energy regulation such as European Union (EU) member states. An important aspect to take into account when choosing a given energy mix is the efficiency involved in its generation. In this context, the present study analyzes the efficiency with which electricity and derived heat was produced in 25 EU member states over the last decade. This analysis considers not only the inputs and outputs involved but, more importantly, which undesirable by-products were generated during the production process, a relevant issue for EU cl…

Productive Efficiency and Territorial Externalities in Small and Medium-Sized Industrial Firms: A Dynamic Analysis of the District Effect

2012

A series of works have analysed differential behaviour in terms of productive efficiency between companies inside a hypothetical industrial district and those outside the district. This objective has been addressed using measures of technical efficiency. The results obtained provide valuable information for quantifying the district effect at a given moment in time. However, constant changes in the market and business behaviour mean that it is worthwhile studying the business district effect from a dynamic point of view. In this study, we provide this new vision through the use of Malmquist productivity indices. This methodology enables us to analyse possible differential evolutions by compa…

Forecasts on the development of hydrogen refuelling infrastructures in Portugal

2021

In Portugal, the transition to new forms of mobility has begun in recent years, but there are still obstacles to overcome. Currently, hybrid vehicles (PHEVs) are the most widespread and accepted by the community and that is probably due to range anxiety, having in fact the possibility of double charging (both through the thermal engine and the electric battery). Furthermore, it must be considered that in addition to electric vehicles, another valid alternative to mobility in the near future is the hydrogen vehicles one. These appear to be even more sustainable from the point of view of air emissions, but on the other hand the costs for the production of hydrogen are still too high. Then, th…

Aggregation of preferences for skewed asset returns

2014

This paper characterizes the equilibrium demand and risk premiums in the presence of skewness risk. We extend the classical mean-variance two-fund separation theorem to a three-fund separation theorem. The additional fund is the skewness portfolio, i.e. a portfolio that gives the optimal hedge of the squared market return; it contributes to the skewness risk premium through co-variation with the squared market return and supports a stochastic discount factor that is quadratic in the market return. When the skewness portfolio does not replicate the squared market return, a tracking error appears; this tracking error contributes to risk premiums through kurtosis and pentosis risk if and only …