Factor price

About: Factor price is a research topic. Over the lifetime, 2764 publications have been published within this topic receiving 86176 citations.

Competition for customers

Abstract: We consider an oligopolistic market with a given finite number of price setting firms. We study the dependence of the market share of a firm on its own price and give conditions on the distribution of consumers' characteristics such that the profit of a firm becomes a quasiconcave function of its price.

Macroeconomic Variables and Stock Price: New Evidence from Iran

Abstract: The main purpose of this paper is to investigate the impact of macroeconomic variables such as interest rate, house price and gold price on stock price in capital market of Iran. To do so, we have used a sample of monthly data from March 2001 to April2011. The study is based upon a vector auto regression (VAR) model and Johansen-Juselius Cointegration positive relationship between stock price and house price, but the relationship between nominal interest rate and gold price with stock price are negative. Also, the results of Impulse-Response Functions shocks show that stock price reaction to the shocks is very fast. Furthermore, study of the variance decomposition indicated although most of fluctuation in stock price can be attributed to itself, but among the selected variables, the house price has main role on stock price fluctuation. that investors choose their portfolio based on Markowitz Many researchers have been done the long-run and mean-variance criterion. This model summarizes the effect short-run relationships among stock price index and of all factors on stock market in one factor, whereas the macroeconomic variables in developed and developing stock market may be affected by various factors. These countries. Empirical results show that interest rate, can be divided into macro and micro economic factors housing market and gold price can greatly affect the including economic development, gold price, house price, economy and stock market. Historical experience shows money supply, interest rate, exchange rate and internal that in countries during period of stock market slump, the factors of companies and economic institutes such as gold market always has uptrend.

Fanning the Flames? How Media Coverage of a Price War Affects Retailers, Consumers, and Investors

Abstract: This article explores how media coverage of a price war affects customer, retailer, and investor reactions over time. Using data covering a Dutch supermarket price war (2003–2005), the authors find that price reductions, especially deep reductions, trigger media coverage of the price conflict. This sets off a chain of reactions. Press messages have a significant effect on market share and abnormal stock returns, beyond retailers' own price and advertising. Importantly, this study uncovers striking asymmetries regarding the kind of coverage to which stakeholders react: whereas consumers only respond to the tone of price-related press coverage, retailers and investors only react to its quantity. Next, media coverage feeds back into the retailers' pricing actions: more media coverage triggers new price cuts in addition to those dictated by competitive reactions. As such, media coverage triggers a deeper spiral of price cuts, intensifying the competitive price battle. However, as the price war progresses, med...

Size and efficiency in African manufacturing firms: Evidence from firm-level panel data

Abstract: Three dimensions of the performance of firms in Ghana’s manufacturing sector are investigated in this paper: their technology and the importance of technical and allocative efficiency. We show that the diversity of factor choices in not due to a non-homothetic technology. Observable skills are not quantitatively important as determinants of productivity. Technical inefficiency is not lower in firms with foreign ownership or older firms and its dispersion across firms is similar to that found in other economies. Large firms face far higher relative labour costs than small firms. If these factor price differentials could be levelled out, substantial gains thorough improvements in allocative efficiency would be possible.

Inflation and real activity with firm-level productivity shocks: a quantitative framework ∗

Abstract: Recent measurements of the extent of price stickiness indicate that there is a substantial amount of relative price variability. Extending our prior state-dependent pricing model, we study a setting in which there are discrete "micro states" interpreted as stochastic productivity variations at the firm level. The new model shares the "generalized partial adjustment" implications of our prior analysis and also its tractability for macroeconomic analysis. Notably, it can be used to study the strength of general equilibrium influences on price adjustment and the consequences of alternative monetry policy rules. Without aggregate uncertainty, the microstate model has rich implications for the dynamics of prices, including links from firm level productivity to the likelihood of price adjustment (”conditional hazards”) and magnitudes of price adjustments. In this steady state — where firms face substantial uncertainties while aggregates are constant — there are also implications for the cross-sectional distribution of relative prices and price changes, among other things. When linearized around this stationary point, the microstate model also has important implications for the dynamic of aggregate economic activity. To exposit these, we build quantitative examples which we link to recent studies in the literature.