107,693 research outputs found
R&D and Price Elasticity of Demand
No full textThis note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elasticity of demand. This proposition is confirmed by an empirical investigation of export demand for manufactured goods from major industrialised countries. Consequently, real exchange rate changes have an impact on the commodity structure of exports.R&D intensity; Price elasticity; Exports
Price competition with consumer confusion
No full textThis paper proposes a model in which identical sellers of a homogenous product compete in both prices and price frames (i.e., ways to present price information). We model price framing by assuming that firms’ frame choices affect the
comparability of their price offers: consumers may fail to compare prices due to frame differentiation, and due to frame complexity. In the symmetric equilibrium the firms randomize over both price frames and prices, and make positive profits. This result is consistent with the observed coexistence of price and price frame dispersion in the market. We also show that (i) the nature of equilibrium
depends on which source of consumer confusion dominates, and (ii) an increase in the number of firms can increase industry profits and harm consumers
Pharmaceutical Stock Price Reactions to Price Constraint Threats and Firm-Level R&D Spending
No full textPolitical pressure in the United States is again building to constrain pharmaceutical prices either directly or through legalized reimportation of lower-priced pharmaceuticals from foreign countries. This study uses the Clinton Administration's Health Security Act (HSA) of 1993 as a natural experiment to show how threats of price constraints affect firm-level R&D spending. We link events surrounding the HSA to pharmaceutical company stock price changes and then examine the cross-sectional relation between the stock price changes and subsequent unexpected R&D spending changes. Results show that the HSA had significant negative effects on firm stock prices and R&D spending. Conservatively, the HSA reduced R&D spending by $1.6 billion, even though it never became law. If the HSA had passed, and had many small firms not raised capital just prior to the HSA, the R&D effects could have been much larger.
Oil price shocks and labor market fluctuations
No full textWe examine the impact of real oil price shocks on labor market flows in the U.S. We first use smooth transition regression (STR) models to investigate to what extent oil prices can be considered as a driving force of labor market fluctuations. Then we develop and calibrate a modified version of Pissarides’ (2000) model with energy costs, which we simulate in response to shocks mimicking the behavior of the actual oil price shocks. We find that (i) these shocks are an important driving force of job market flows; (ii) the job finding probability is the main transmission mechanism of such shocks; and (iii) they bring a new amplification mechanism for the volatility and should thus be seen as complementary of labor productivity shocks. Overall we conclude that shocks in oil prices cannot be neglected in explaining cyclical labor adjustments in the U.S.Oil Prices, Unemployment, Vacancies, Business Fluctuations.
Programme of Louise Burge, February 25, 1941, Oak Park, Illinois, Including a Performance of a Work by Florence Price
No full textMy Soul's Been Anchored in de LordProgramme of Louise Burge, contralto, February 25, 1941, in Oak Park, Illinois. Burge performed Price's "My Soul's Anchored in de Lord."Programme of
LOUISE BURGE - Contralto
Tuesday, February 25, 1941-8:15 p. m.
LOWELL SCHOOL —(Lake St at Forest Ave.)
OAK PARK, ILLINOIS
Under the auspices of First United Presbyterian Church Choir
I.
MY HEART EVER FAITHFUL.......................................................................................Bach
O DEL MIO DOLCE ARDOR.....................................................................................Gluck
DANZA, DANZA FANCIULLA............................................................................Durante
II;
AVE MARIA............................................................................................................Schubert
AUFENTHALT..............................(My Lone Abode).........................................Schubert
ZUEIGNUNG.......................................(Devotion)................................................. Strauss
VERGEBLICHES STAENDCHEN (A Disappointed Lover)...............................Brahms
IV.
BLOW, BLOW THOU WINTER WIND................................................................Quitter
LIFE AND DEATH..................................................................................Coleridge-Taylor
THOU ART RISEN, MY BELOVED.....................................................Coleridge-Taylor
LOVE WENT A-RIDING................................................................................Frank Bridge
Spirituals:
CITY CALLED HEAVEN......................................................................Hall Johnson
HONOR-HONOR ............................................................................................................................Hall Johnson
YOU DON KNOW WEN........................................................Camille Nickerson
MY SOUL S ANCHORED IN DE LORD .......................................Florence Price
JANICE JOHNSON at the Piano
III.
J'Al PLEURE EN REVE.........(I wept as I dreamed)..................................................Hue
BEAU SOIR....................................(Beautiful Evening)........................................DeBussy
MON COEUR S OUVRE A TA VOIX "Samson et Dalila.....................Saint-Saens
("My Heart opens at thy Voice")
— INTERMISSION---------------
Price Competition and Consumer Confusion
No full textThis paper proposes a model in which identical sellers of a homogenous product compete in both prices and price frames (i.e., ways to present price information). We model price framing by assuming that firms’ frame choices affect the comparability of their price offers: consumers may fail to compare prices due to frame differentiation, and due to frame complexity. In the symmetric equilibrium the firms randomize over both price frames and prices, and make positive profits. This result is consistent with the observed coexistence of price and price frame dispersion in the market. We also show that (i) the nature of equilibrium depends on which source of consumer confusion dominates, and (ii) an increase in the number of firms can increase industry profits and harm consumers.bounded rationality, framing, frame dispersion, incomplete preferences, price competition, price dispersion
Price Points and Price Rigidity
No full textWe offer new evidence on the link between price points and price rigidity using two datasets. One is a large weekly transaction price dataset, covering 29 product categories over an eight-year period from a large U.S. supermarket chain. The other is from the Internet, and includes daily prices over a two-year period for 474 consumer electronic goods covering ten product categories, from 293 different Internet retailers. Across the two datasets, we find that (i) 9 is the most frequently used price-ending for the penny, dime, dollar and the ten-dollar digits, (ii) the most common price changes are in multiples of dimes, dollars, and ten-dollars, (iii) 9-ending prices are at least 24% (and as much as 73%) less likely to change in comparison to prices ending with other digits, and (iv) the average size of the price change is higher if the price ends with 9 in comparison to non-9-ending prices. This link between price points and price rigidity is robust across a wide range of prices, products, product categories, and retail formats. We offer a behavioral explanation for the findings.Price Point; 9-Ending Price; Price Rigidity; Rational Inattention; E-Commerce
Price transmission and market power analysis in the Spanish seafood market chain
No full text[cat] Espanya és un dels principals mercats de productes pesquers d’Europa i del món. El consum de productes pesquers ha estat tradicionalment molt important a Espanya, el 2005 es varen consumir 36,7 kg per persona (MAPA, diversos anys). Malgrat això, el mercat i cóm interactuen els diversos nivells de la cadena de comercialització han gaudit de poca atenció. En aquest estudi, utilitzant dades setmanals, s’analitza per als dotze principals productes pesquers, l’elasticitat en la transmissió de preus al llarg de la cadena de comercialització a Espanya (llotja, mercat central i detallista). Finalment s’investiga la presència d’assimetria en la transmissió de preus entre aquests nivells de mercat. Els resultats obtinguts tenen importants implicacions a l’hora d’analitzar la demanda, poder de mercat i marges al llarg del mercat per als productes pesquers.[eng] Spain is one of the largest seafood markets in Europe and the world. Seafood consumption has traditionally been very high in Spain; in 2005, for instance, around 36.7 kg per capita were consumed (MAPA, several years). However, little attention has been paid to the market and how the different levels of the market chain interact. This paper uses weekly data to analyse the price transmission elasticity of the main twelve seafood products in the Spanish market chain (Ex-vessel, Wholesale and Retail stages). We then investigate the price transmission asymmetry in these market stages. The results have significant implications for demand analysis, market power and margins in the seafood value chain
Price Points and Price Rigidity
No full textWe offer new evidence on the link between price points and price rigidity using two datasets. One is a large weekly transaction price dataset, covering 29 product categories over an eight-year period from a large U.S. supermarket chain. The other is from the Internet, and includes daily prices over a two-year period for 474 consumer electronic goods covering ten product categories, from 293 different Internet retailers. Across the two datasets, we find that (i) 9 is the most frequently used price-ending for the penny, dime, dollar and the ten-dollar digits, (ii) the most common price changes are in multiples of dimes, dollars, and ten-dollars, (iii) 9-ending prices are at least 24% (and as much as 73%) less likely to change in comparison to prices ending with other digits, and (iv) the average size of the price change is higher if the price ends with 9 in comparison to non-9-ending prices. This link between price points and price rigidity is robust across a wide range of prices, products, product categories, and retail formats. We offer a behavioral explanation for the findings.
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