Book•
Intermediate microeconomics : A modern approach
01 Jan 2006-
TL;DR: The Varian approach as mentioned in this paper gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation, and is still the most modern presentation of the subject.
Abstract: This best-selling text is still the most modern presentation of the subject. The Varian approach gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation.
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TL;DR: In this paper, the authors view the same as a toss of the same coin in terms of product/service differentiation and positioning to achieve the same objectives of preventing declining sales-turnover, profitability, and market share and by extension secure market/competitive advantage over competitors.
Abstract: The increasing rate of the incidence of globalization of market, and the attendant intense competition amongst local business organizations in rapidly developing economies has taken a shift from price competition strategy (to avoid price war) to non-price competition strategy in terms of product/service differentiation and positioning to achieve the same objectives of preventing declining sales-turnover, profitability, and market-share and by extension secure market/competitive advantage over competitors. Differentiation and positioning have each been separately discussed in marketing literature; however, this paper represents an attempt to view same as a toss of the same coin.
3 citations
Cites background from "Intermediate microeconomics : A mod..."
...…research traditions and perspectives (Porter, 1991; Mas-Colell et al., 1995; Myers, 1996; Carroll and Green, 1997; Alden et al., 1999; Green et al., 2000; Browning et al., 2003; Varian, 2003; Perloff, 2004; Ries and Ries, 2004; Pindyck and Daniel, 2005; Lane and Suttcliffe, 2006) to mention a few....
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Posted Content•
TL;DR: In this paper, the authors discuss the role of natural gas in global energy, factors constraining its further development, the gas contracting process, and the absence of a global market, which is analyzed in the context of the economic rent in the gas price and the opaque nature of gas contracts.
Abstract: This paper discusses the rising profile of natural gas in global energy, factors constraining its further development, the gas contracting process, and the absence of a global market, which is analyzed in the context of the economic rent in the gas price and the opaque nature of gas contracts. A proposal for rationalizing the trade to ease these constraints is offered. Gas pricing, and factors driving demand are also analyzed using evidence from the literature. FDI can help to monetize some of the 'stranded' gas reserves, but success would depend on an investor-friendly climate, including appropriate tariff regimes in the domestic markets.
3 citations
TL;DR: The main message of as mentioned in this paper is that competition can and should be introduced in many parts of utilities' operations, but that competition is not a panacea and it requires supporting regulation and institutions if it is to work well.
Abstract: iberalisation, privatisation and independent regulation of utilities were popularised by the UK and Chile in the 1980s. By then the United States already had long experience of private provision and public regulation of utility services, and independent power production had been mandated by the Public Utilities Regulatory Policies Act 1978 (PURPA). Many countries have subsequently adopted some or all of these policies. Competition has been introduced in telecommunications, in electricity production and in the supply of electricity and natural gas to large users. Franchise competition exists in water supply and in some rail systems. Yardstick or comparative competition is used by regulators in industries where there are regional monopolies with national regulation. At the same time direct competition in the provision of network services has usually not been on the agenda, except in the telecommunications industry. Whether there should be direct product market competition in retail electricity and gas supply, in water and sanitation, in rail and post are all controversial issues. The main message of the paper is that competition can and should be introduced in many parts of utilities’ operations, but that competition is not a panacea and it requires supporting regulation and institutions if it is to work well. Introducing competition into a regulated and monopolised industry requires both imagination and care, and often entails costs which need to be balanced against the expected benefits of competition. It is important for policymakers to remember that competition is not an objective but is an instrument for achieving ultimate goals. The structure of the paper is as follows. The next section covers the general arguments in favour of competition. The costs of having various types of competition in regulated industries are then covered. This is followed by discussion of the parts of utilities where competition generally works well and where competition is of doubtful value. The interaction between regulation and competition is then considered. The penultimate section assesses the experience of competition in Californian electricity and a number of industries in the UK and conclusions are drawn.
3 citations
Cites background from "Intermediate microeconomics : A mod..."
...L Simon Cowan 352 Fundamental Theorem of Welfare Economics — see Varian (2003) for a simple treatment, or Varian (1992) for a more rigorous analysis of the theorems of welfare economics....
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TL;DR: This dissertation examines the shortand long-run impacts of timber prices and other factors affecting NIPF owners' timber harvesting and timber stocking decisions and the utilitybased Faustmann model provides testable hypotheses of the exogenous variables retained in the timber supply analysis.
Abstract: This dissertation examines the shortand long-run impacts of timber prices and other factors affecting NIPF owners' timber harvesting and timber stocking decisions. The utilitybased Faustmann model provides testable hypotheses of the exogenous variables retained in the timber supply analysis. The timber stock function, derived from a two-period biomass harvesting model, is estimated using a two-step GMM estimator based on balanced panel data from 1983 to 1991. Timber supply functions are estimated using a Tobit model adjusted for heteroscedasticity and nonnormality of errors based on panel data from 1994 to 1998. Results show that if specification analysis of the Tobit model is ignored, inconsistency and biasedness can have a marked effect on parameter estimates. The empirical results show that owner's age is the single most important factor determining timber stock; timber price is the single most important factor in harvesting decision. The results of the timber supply estimations can be interpreted using utility-based Faustmann model of a forest owner who values a growing timber in situ.
3 citations
Cites background from "Intermediate microeconomics : A mod..."
...The neo-classic distinction is that the short-run relates to feasible immediate production plans in which some factors are fixed; the long-run relates to feasible eventual production plans in which all factors can 13 vary (Varian 1996, p. 313)....
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TL;DR: In this paper, an agent-based model of innovation diffusion, which links consumer opinions with reservation prices, is used to show that a relatively strong WOM effect can lead to the creation of two separated price-quantity regimes, with a nonlinear transition between them.
Abstract: Empirical studies suggest that word-of-mouth (WOM) strongly influences the innovation diffusion process and is responsible for the 'S' shape of the adoption curve. However, it is not clear how WOM affects demand curves for innovative products and strategic decisions of producers. Using an agent-based model of innovation diffusion, which links consumer opinions with reservation prices, we show that a relatively strong WOM effect can lead to the creation of two separated price-quantity regimes, with a nonlinear transition between them. A small shift of the product's market price can result in a drastic change of the demanded quantity and, hence, the revenues of a firm. Using Monte Carlo simulations and mean-field treatment we demonstrate that WOM may have ambiguous consequences and should be taken into account when designing marketing strategies.
3 citations