Factor price

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

Locational Competition under Environmental Regulation when Input Prices and Productivity Differ

Abstract: The purpose of the paper is to outline an analytical framework which captures the ample scope of locational competition: cost differences, resulting from differences in factor prices including taxes, human capital, infrastructure services and total factor productivity. If cost differences are small, locational competition controls excessive government power. We have modeled locational competition by assuming that governments have a vital interest to keep mobile factors of production at home. We represent this aspect by restricting the usage of environmental instruments such that they will at most exhaust the cost difference to a competing foreign firm. If cost differences are large enough there is no binding restriction for the cost-benefit calculus of a national environmental policy. The tax will be below marginal damage due to strategic reasons of rent shifting. If small international cost differences do not allow taxation in accordance with marginal damage considerations, then locational competition restricts the size of the tax rate such that the firm is indifferent in relocating or staying at home. If no cost differences exist, it is even possible that both governments will subsidize the pollution intensive input in order to make the domestic location attractive.

The role of saving and investment in a SAM price model

Abstract: Social accounting matrices (SAMs) are normally used to analyse the income generation process. They are also useful, however, for analysing the cost transmission and price formation mechanisms. For price contributions, Roland-Holst and Sancho (1995) used the SAM structure to analyse the price and cost linkages through a representation of the interdependence between activities, households and factors. This paper is a further analysis of the cost transmission mechanisms, in which we add the capital account to the endogenous components of the Roland-Holst and Sancho approach. By doing this we reflect the responses of prices to the exogenous shocks in saving and investment. We also present an additive decomposition of the global price effects into categories of interdependence that isolates the impact on price levels of shocks in the capital account. We use a 2001 social accounting matrix to make an empirical application of the Catalan economy.

Search at different price levels: the impact of knowledge and search cost

Abstract: Studies the impact of search cost and prior knowledge on consumer search at different price points in a market price distribution for telecommunications products. In an experiment it is found that buyers search differently on premium price products than they do on moderate and low price products, and that this behavior depends on the search costs of the purchase situation and the knowledge of the buyer involved. The results suggest a number of implications for marketers on the role of premium priced brands, ranging from product line pricing strategy to information communication strategy.