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  1. Four essays on behavioral pricing
    Erschienen: [2021]

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    Quelle: Verbundkataloge
    Sprache: Englisch
    Medientyp: Dissertation
    Format: Online
    Schlagworte: Preispolitik; Verbraucherverhalten; gift cards; dynamic pricing; price promotions; virtual currencies; Behavioral pricing
    Umfang: 1 Online-Ressource (circa 123 Seiten), Illustrationen
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    Dissertation, University of St. Gallen, 2021

  2. Two-sided platforms
    dynamic pricing and multiple equilibria
    Erschienen: 2020
    Verlag:  European Commission, Seville

    The static model of two sided markets proposed by Rochet and Tirole analyses optimal pricing of a monopolistic platform at the equilibrium point. Their framework implicitly assumes that for each prices set by the platform, the equilibrium number of... mehr

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    The static model of two sided markets proposed by Rochet and Tirole analyses optimal pricing of a monopolistic platform at the equilibrium point. Their framework implicitly assumes that for each prices set by the platform, the equilibrium number of users on each side will be unique. However, under general conditions, the uniqueness of market equilibrium is not guaranteed. Optimal static prices do not ensure convergence to the preferred full market outcome, as platform may face failure-to-launch or failure-to-grow problems. Hence, to study problems around multiplicity of equilibria, a different framework is required. We propose a dynamic model of monopolistic platform and demonstrate the effects of different dynamic pricing strategies for equilibrium selection and convergence. The main conclusion from the study is that emerging platform can reach the preferred equilibrium by using tariffs with subsidies for early stage users. We give examples of dynamically adjusting tariffs that minimize subsidies. Finally, the dynamic setting reveals a trade-off between the platform profits and social welfare, related to the speed of user base growth.

     

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    Sprache: Englisch
    Medientyp: Buch (Monographie)
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    Weitere Identifier:
    hdl: 10419/266520
    Schriftenreihe: JRC digital economy working paper ; 2020, 14
    JRC technical report
    Schlagworte: two-sided markets; dynamic pricing; multiplicity of equilibria; dynamic system; online platforms
    Umfang: 1 Online-Ressource (circa 32 Seiten), Illustrationen
  3. The (alleged) environmental and social benefits of dynamic pricing
    Erschienen: November 2021
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    This paper provides a cautionary tale about claiming environmental costs and benefits when justifying the use of public funds. Using the example of a dynamic pricing policy, we show that the resulting impact on short-term operating costs and... mehr

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    This paper provides a cautionary tale about claiming environmental costs and benefits when justifying the use of public funds. Using the example of a dynamic pricing policy, we show that the resulting impact on short-term operating costs and emissions is at best ambiguous. Moreover, it is hard to quantify even in ideal scenarios where data is plentiful and the behavioral response can be estimated precisely using a randomized control trial of customers of an electric utility. While dynamic pricing has been touted as a means to control generation costs and pollution, price-induced reallocation of electricity consumption within a day may actually increase net emissions depending on the source-generation mix of a region.

     

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    hdl: 10419/250507
    Schriftenreihe: Discussion paper series / IZA ; no. 14846
    Schlagworte: dynamic pricing; randomized experiment; load shifting; air pollution
    Umfang: 1 Online-Ressource (circa 61 Seiten), Illustrationen
  4. Green energy pricing for digital Europe
    Erschienen: May 2021
    Verlag:  Toulouse School of Economics, [Toulouse]

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    Schriftenreihe: Working papers / Toulouse School of Economics ; no 1209
    Schlagworte: electricity; dynamic pricing; digitalisation; Artificial Intelligence
    Umfang: 1 Online-Ressource (circa 9 Seiten)
  5. Switching beers?
    the effects of switching costs on prices and profits in competitive markets
    Erschienen: May 2021
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    We consider a dynamic oligopoly on the beer market and study the differential effects of switching costs on product prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching costs across... mehr

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    We consider a dynamic oligopoly on the beer market and study the differential effects of switching costs on product prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching costs across customer income segments and beer brands. Our supply estimation results show that the low-quality firm experiences a higher competitive pressure on price since low-quality consumers are more price sensitive and switch more easily to the high-quality firm’s product than vice versa. The high-quality firm is better shielded from price competition, as its consumers are less likely to switch to the low-quality product.

     

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    hdl: 10419/235435
    Schriftenreihe: CESifo working paper ; no. 9065 (2021)
    Schlagworte: consumer heterogeneity; differentiated products; dynamic oligopoly; dynamic pricing; loyalty; state dependence; switching costs
    Umfang: 1 Online-Ressource (circa 55 Seiten), Illustrationen
  6. How to reach the land of Cockaigne?
    Edgeworth cycle theory and why a gasoline station is the first to raise its price
    Erschienen: [2022]
    Verlag:  Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre, Lüneburg

    Competition in the German gasoline retail market is characterized by strong intraday price cycles. The cycles are described in the literature as corresponding to the well-known Edgeworth cycles. Cyclical pricing patterns are observable all over... mehr

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    Competition in the German gasoline retail market is characterized by strong intraday price cycles. The cycles are described in the literature as corresponding to the well-known Edgeworth cycles. Cyclical pricing patterns are observable all over Germany and throughout the world. So far, research has focused on analyzing price patterns using average prices. We are the first to study the initiation of new price cycles by looking at the exact timing of competition in the daily cycle. We modified the data to be able to analyze local competition on a second-by-second level. What determines that a certain gasoline station increases its price to initiate a new price cycle? We are the first to empirically analyze whether the theoretically and economically significant price differences of the Edgeworth cycles explain the cyclical patterns throughout a day, or whether brand affiliation, local characteristics, or services offered predict the behavior of price increases. To provide first evidence and to do justice to the complexity of analyzing second-by-second intraday price cycles, we limit ourselves to one local market in Germany. We find that price considerations, as well as services offered, play a minor role in explaining why a gasoline station is the first to increase its price. Brand affiliation, as well as location parameters, are much more important in a gasoline stations' decision on whether they will be the first to increase prices. Furthermore, we show that the dominant suppliers Aral and Shell, who jointly account for more than 80 percent of price increases in the market, are the major drivers of the size of the price cycles. Together, the strong results for oligopoly players Aral and Shell suggest that market power is the major driver of the cyclical pricing pattern in the gasoline market.

     

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    hdl: 10419/273136
    Schriftenreihe: University of Lüneburg working paper series in economics ; no. 411 (April 2022)
    Schlagworte: Edgeworth cycles; gasoline prices; dynamic pricing; gasoline market
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  7. Why abandoning the paradise?
    stations incentives to reduce gasoline prices at first
    Autor*in: Thomas, Wein,
    Erschienen: Monday, 22 February 2021
    Verlag:  Verein für Socialpolitik, [Köln]

    The German petrol station market is characterized by strong intraday price cycles, which probably correspond to the well-known Edgeworth cycles. The prices go up strongly in the late evening or in the middle of the night, fall relatively heavily in... mehr

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    The German petrol station market is characterized by strong intraday price cycles, which probably correspond to the well-known Edgeworth cycles. The prices go up strongly in the late evening or in the middle of the night, fall relatively heavily in the early morning and then go up and down several times in the course of the day. Locally, the analysis is limited to the 26 petrol stations that plausibly form a common market in the Lueneburg region. This essay picks out the specific sequence in which, after generally rising prices during the day, a single supplier is the first to reverse the price trend and lower its price. For this purpose, current price reports are used to define the price reduction event down to the second, and to show only the valid prices of competitors prior to the event. All German petrol stations have to report price changes to the Bundeskartellamt's Market Transparency Unit. Tankerkoenig then publishes the full reports. This results in one panel observation for each price reduction event. Out of nearly 300,000 price observations, just over 10,000 panel observations result. Fixed-effect logit estimates are used to test whether the theoretically and economically significant price differences of the Edgeworth cycles explain the behavior of the price decreasers, or whether market structure factors, such as brand affiliation/independence of the petrol station, service offerings, or location characteristics predict price-cutting behavior. The novel recording of the price dynamics in the petrol station market by using the accurate petrol station price data to the second indicates promising research of extensive price data and avoids the enormous loss of information in the previously common calculation of average prices at certain times.

     

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    hdl: 10419/242362
    Schriftenreihe: Jahrestagung 2021 / Verein für Socialpolitik ; 10
    Schlagworte: Edgeworth cycles; gasoline prices; dynamic pricing
    Umfang: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  8. Estimating the gains (and losses) of revenue management
    Erschienen: [2022]
    Verlag:  University of Warwick, Department of Economics, Coventry, United Kingdom

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    Schriftenreihe: Warwick economics research papers ; no: 1412 (June 2022)
    Schlagworte: Revenue management; dynamic pricing; demand estimation; demandlearning; moment inequalities
    Umfang: 1 Online-Ressource (circa 71 Seiten), Illustrationen
  9. A dynamic theory of random price discounts
    Erschienen: August 2022
    Verlag:  ECONtribute, Bonn

    A seller with commitment power sets prices over time. Risk-averse buyers arrive to the market and decide when to purchase. We obtain that the optimal price path is a "regular" price, with occasional episodes of sequential discounts that occur at... mehr

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    A seller with commitment power sets prices over time. Risk-averse buyers arrive to the market and decide when to purchase. We obtain that the optimal price path is a "regular" price, with occasional episodes of sequential discounts that occur at random times. The optimal price path has the property that the price a buyer ends up paying is independent of his arrival and purchase times, and only depends on his valuation. Our theory accommodates empirical findings on the timing of discounts.

     

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    hdl: 10419/268024
    Schriftenreihe: ECONtribute discussion paper ; no. 191
    Schlagworte: dynamic pricing; sales; random mechanisms
    Umfang: 1 Online-Ressource (circa 30 Seiten), Illustrationen
  10. Discreet personalized pricing
    Erschienen: October 2022
    Verlag:  CESifo, Munich, Germany

    Emerging tracking data allow precise predictions of individuals' reservation values. However, firms are reluctant to conspicuously implement personalized pricing because of concerns about consumer and regulatory reprisals. This paper proposes and... mehr

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    Emerging tracking data allow precise predictions of individuals' reservation values. However, firms are reluctant to conspicuously implement personalized pricing because of concerns about consumer and regulatory reprisals. This paper proposes and applies a method which disguises personalized pricing as dynamic pricing. Specifically, a firm can sometimes tailor the "posted" price for the arriving consumer but privately commits to change price infrequently. Note such pricing may unintentionally arise through algorithmic pricing. I examine outcomes in four contexts: one empirical and three hypothetical distributions of consumer valuations. I find that this strategy is most intense and raises profits most for medium popularity products. Furthermore, improvements in the precision of individual-level demand estimates raise the range of popularities this strategy can be profitably applied to. I conclude that this is an auspicious strategy for online platforms, if not already secretly in use.

     

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    hdl: 10419/267258
    Schriftenreihe: CESifo working papers ; 10025 (2022)
    Schlagworte: personalized pricing; algorithmic pricing; price discrimination; targeted pricing; behavioural pricing; dynamic pricing; sticky pricing
    Umfang: 1 Online-Ressource (circa 36 Seiten), Illustrationen
  11. Joint dynamic pricing and lot-sizing under competition
    Erschienen: [2017]
    Verlag:  CORE, [Louvain-la-Neuve]

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    hdl: 2078.1/187360
    Schriftenreihe: CORE discussion papers ; 2017, 23
    Schlagworte: Production; dynamic pricing; competition; lot-sizing; joint production/marketing decisions
    Umfang: 1 Online-Ressource (circa 36 Seiten), Illustrationen
  12. Public transport pricing
    an evaluation of the 9-Euro Ticket and an alternative policy proposal
    Erschienen: 2023
    Verlag:  RWI - Leibniz-Institut für Wirtschaftsforschung, Essen, Germany

    The pricing of public transportation is a frequently debated subject, and a notable current trend is leaning towards flat-rate pricing. In the previous year, Germany introduced a flat-rate ticket, enabling individuals to access public transportation... mehr

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    The pricing of public transportation is a frequently debated subject, and a notable current trend is leaning towards flat-rate pricing. In the previous year, Germany introduced a flat-rate ticket, enabling individuals to access public transportation across the entire country for just 9 euros per month during the months of June through August. In this paper, we first examine the extent to which the 9-Euro Ticket policy was able to induce a shift from cars to public transport. To this end, we evaluate the policy's impact on mobility behavior and emissions, and compare our results with other analyses of the policy that use different empirical approaches. The combined evidence shows that the flat-rate access induced only a marginal shift from car to public transport. The 9-Euro Ticket has primarily been used to expand personal mobility rather than to substitute between modes of transportation. In a further step, we subject the 9-Euro Ticket to a cost-benefit analysis based on its achieved carbon reduction. When compared to other climate policies, the costs appear disproportionately high. We use these results as a starting point to discuss flat-rate pricing for public transport in conjunction with evidence from programs in other European cities and insights from economic theory. Synthesizing the collected sources, we conclude that there are better options. Instead of a flat-rate ticket, we call for a cheap and dynamic public fare system that prices peak times higher than off-peak times to avoid overcrowding during peak hours. At the same time, a dynamic road pricing system should be introduced. This would further reduce the negative externalities of driving, generate revenues to support public transport, and provide a stronger incentive to switch from car to public transport

     

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    ISBN: 9783969732144
    Schriftenreihe: Ruhr economic papers ; #1045
    Schlagworte: Public transport; dynamic pricing; congestion charging; road pricing; flat-rate tariffs; 9-Euro ticket
    Umfang: 16 Seiten
  13. Public transport pricing
    an evaluation of the 9-Euro Ticket and an alternative policy proposal
    Erschienen: 2023
    Verlag:  RWI - Leibniz-Institut für Wirtschaftsforschung, Essen, Germany

    The pricing of public transportation is a frequently debated subject, and a notable current trend is leaning towards flat-rate pricing. In the previous year, Germany introduced a flat-rate ticket, enabling individuals to access public transportation... mehr

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    The pricing of public transportation is a frequently debated subject, and a notable current trend is leaning towards flat-rate pricing. In the previous year, Germany introduced a flat-rate ticket, enabling individuals to access public transportation across the entire country for just 9 euros per month during the months of June through August. In this paper, we first examine the extent to which the 9-Euro Ticket policy was able to induce a shift from cars to public transport. To this end, we evaluate the policy's impact on mobility behavior and emissions, and compare our results with other analyses of the policy that use different empirical approaches. The combined evidence shows that the flat-rate access induced only a marginal shift from car to public transport. The 9-Euro Ticket has primarily been used to expand personal mobility rather than to substitute between modes of transportation. In a further step, we subject the 9-Euro Ticket to a cost-benefit analysis based on its achieved carbon reduction. When compared to other climate policies, the costs appear disproportionately high. We use these results as a starting point to discuss flat-rate pricing for public transport in conjunction with evidence from programs in other European cities and insights from economic theory. Synthesizing the collected sources, we conclude that there are better options. Instead of a flat-rate ticket, we call for a cheap and dynamic public fare system that prices peak times higher than off-peak times to avoid overcrowding during peak hours. At the same time, a dynamic road pricing system should be introduced. This would further reduce the negative externalities of driving, generate revenues to support public transport, and provide a stronger incentive to switch from car to public transport.

     

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    Sprache: Englisch
    Medientyp: Ebook
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    ISBN: 9783969732144
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    hdl: 10419/279544
    RVK Klassifikation: QR 820 ; QR 860
    Schriftenreihe: Ruhr economic papers ; #1045
    Schlagworte: Public transport; dynamic pricing; congestion charging; road pricing; flat-rate tariffs; 9-Euro ticket
    Umfang: 1 Online-Ressource (circa 21 Seiten), Illustrationen