Factor price

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

Effect of Price on the Demand for Durables: Modeling, Estimation, and Findings

Abstract: The focus of this article is on the effect of price on the adoption of durables. Most empirical research on the timing of adoption of new products has centered on the growth without explicitly incorporating any marketing-mix variables. Recently, some researchers have pursued ways of enriching the Bass model by including such controllable variables as price and advertising. Our interest in this article is to propose diffusion models that incorporate price. We use these models to study the price effect for four durable products. We report the estimation results and discuss the insights they provide. In particular, our empirical results suggest that price influences consumers' decisions on whether or not to buy and the diffusion process governs the timing of purchase given the decision to buy. Moreover, we find that the estimated coefficient of imitation in the Bass model is understated if price is inappropriately modeled.

Demand aggregation through online buying groups

Abstract: An online buying group (referred to herein as a “co-op”) is formed for the specific purpose of purchasing a particular product at ( 102 ) by defining a start time, end time, critical mass, any minimum number of units offered, any maximum number of units offered, starting price and product cost curve. As data is gathered from buyers, by means of their making binding purchase offers, the co-op is modified at ( 108 ) using a pricing tool, so as to take into account for this market data in the definition of the price curve. A buyer chooses a product co-op of interest at ( 114 ). The buyer is presented with the following essential co-op information: current price, closing time, next price level (as defined by a price curve visibility window and the price curve) sufficient to entice the buyer to make an offer. Once a buyer has made up his mind, the decision must be made at ( 116 ) to offer a purchase price which includes the current price, guaranteeing availability if critical mass has been achieved, or to make an offer at a lower price range that can be accepted only if the co-op price drops to that level, which may not occur. Given a decision to make an offer at such lower price, the buyer enters such maximum price at which he is willing to purchase the product at ( 118 ). Should the current price drop to the level at which the offer was made, the price contingency is removed from such offer and assuming critical mass is achieved, the offer is accepted at at the close of the co-op at ( 122 ), and processed accordingly. Inventory is allocated to fulfill the accepted offer at ( 126 ) following the closing of the co-op at ( 124 ).

Price and Authority in Inter-Profit Center Transactions

Abstract: Price and authority have traditionally been regarded as alternative social mechanisms for allocating resources. However, actual transactions-whether inter- or intrafirm-can be evaluated in terms of the extent to which they combine both of these mechanisms. An especially revealing example of this is the exchange of goods between two profit centers in the multi-profit center firm. Three of the most common arrangements, or transfer pricing polices, for effecting these transactions are examined here. Exchange autonomy transfers depend primarily on price, with no or minimal use of authority. Mandated full cost transfers involve a substantial exercise of authority relative to the use of price. Mandated market based transfers use both authority and price in important ways. For all three policies, the transaction costs of these internal transactions may exceed these costs on external transactions.