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Factor price
About: Factor price is a research topic. Over the lifetime, 2764 publications have been published within this topic receiving 86176 citations.
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TL;DR: In this paper, the authors show that the final price in the electricity and natural gas public procurement is more sensitive to the purchaser's estimate than to actual market price, and identify that the price is reduced by using open procedure, electronic auction or attracting more competitors.
Abstract: The goal of this paper is to show how institutional and procedural characteristics affect the final price of the public procurement. In order to get comparable prices, only public procurement of homogeneous goods is analyzed. Presented model attempts to explain the variation in unit price as a function of price estimated by the contracting authority, market price and characteristic of procurement procedure – type of procedure, number of bidders and use of electronic auction. We find that the final price in the electricity and natural gas public procurement is more sensitive to purchaser’s estimate than to actual market price. At the same time, we identify that the final price is reduced by using open procedure, electronic auction or attracting more competitors.
14 citations
TL;DR: In this article, the authors compared the results for N firms in a linear market with the parametric price equilibria developed by Lerner and Singer and Eaton and Lipsey, and found that their conclusions are valid for the N-2 interior firms in the more general model.
Abstract: One of the fundamental contributions of Hotelling's classic “Stability in Competition” paper is the focus on the interaction of the price and location choice variables. In most of the subsequent research in this area, the price dimension has been assumed away. In this paper the jointness of the two decisions is reintroduced and the results for N firms in a linear market are compared to the parametric price equilibria developed by Lerner and Singer and Eaton and Lipsey. Their conclusions are found to be valid for the N-2 interior firms in the more general model. But what has been lost because of the equal price assumption is the actions of the two exterior firms who exploit their uniqueness by charging higher prices to their “captive” buyers. A simulation of the dynamics of the price and location choice process confirms the analytically defined equilibria.
14 citations
TL;DR: In this article, the authors focus on the practice of price discrimination among public utilities and propose strategies for transferring consumer surplus to the revenues of producers, and propose an approach to maximize profits.
14 citations
TL;DR: This paper showed that omitting individual prices introduces measurement errors in real output that are correlated with factor prices and these errors lead to biased estimates of the production function and productivity growth equations, and a method of simultaneously estimating real output and price is introduced to overcome these problems.
Abstract: For many years, economists have successfully analyzed aggregate production data using the single price assumption to construct real output However, economists using these same techniques to examine firm and establishment level data have had difficulty interpreting the ensuing results This paper explores whether price dispersion across individual producers could explain these problems Using data from the hydraulic cement industry, this paper shows that omitting individual prices introduces measurement errors in real output that are correlated with factor prices These errors lead to biased estimates of the production function and productivity growth equations A method of simultaneously estimating real output and price is introduced to overcome these problems
14 citations
TL;DR: In this article, the authors consider the make-or-buy decision of oligopolistic firms in an industry in which final good production requires specialized inputs, and show that firms acquire the intermediate by either producing it in a wholly owned subsidiary or outsourcing it to a supplier who must make a relationship specific investment.
Abstract: We consider the make-or-buy decision of oligopolistic firms in an industry in which final good production requires specialized inputs. Factor price considerations dictate that firms acquire the intermediate abroad, by either producing it in a wholly owned subsidiary or outsourcing it to a supplier who must make a relationship-specific investment. Firms’ internationalization mode depends on cost and strategic considerations. Crucially, asymmetric equilibria emerge, with firms choosing different modes of internationalization, even when they are ex ante identical. With ex ante asymmetries, lower cost producers have a stronger incentive to vertically integrate (FDI), while higher cost firms are more likely to outsource. Externalisation contre FDI (Foreign Direct Investment) en equilibre oligopolistique Resume Cet article concerne la decision de fabriquer ou d'acheter des entreprises oligopolistiques dans une industrie dans laquelle la bonne production finale necessite des intrants specialises. Les co...
14 citations