scispace - formally typeset
Search or ask a question
Topic

Factor price

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


Papers
More filters
Posted Content
TL;DR: In this article, the authors analyzed the results of a survey conducted by the Banco de Portugal between May and September 2004 on a sample of 1370 Portuguese firms with the main purpose of investigating their price setting behavior.
Abstract: This paper analyses the results of a survey conducted by the Banco de Portugal between May and September 2004 on a sample of 1370 Portuguese firms with the main purpose of investigating their price setting behaviour. The evidence points to the presence of a considerable degree of price stickiness: most firms do not review or change their prices more than once a year; time lags in price reactions to cost and demand shocks were found to be significant; and slightly more than half of the firms follow time-dependent price reviewing, though only one-third stick to this practice after the occurrence of specific shocks. The degree of price stickiness seems to be higher in services than in manufacturing. The presence of implicit contracts between firms and their customers under which the former pledge to stabilise their prices as a way to increase customers’ loyalty is apparently the main reason that prevents firms from changing their prices more promptly. Other relevant sources of price stickiness were also found: coordination problems arising from the preference of firms not to change their prices unless their competitors do so, the constraint imposed by a high proportion of fixed costs, marginal costs that vary little when costs are an important determinant in firms’ pricing decisions or the presence of formal contracts that are costly to renegotiate. In contrast, alternative explanations such as the existence of menu costs, the preference of firms to quote their prices according to certain thresholds and the costs of collecting the relevant information for pricing decisions were not considered very important.

87 citations

Journal ArticleDOI
TL;DR: In this article, the authors developed an empirical model that also included crop inventory adjustments, a factor that is underemphasized in the literature, and showed that if inventory effects are not taken into account, the impacts of the various factors on food commodity price inflation would be overestimated.
Abstract: The food commodity price inflation beginning in 2001 and culminating in the food crisis of 2007/08, and which returned in 2010, reflects a combination of several factors including economic growth, biofuel expansion, exchange rate fluctuations, and energy price inflation. To quantify these influence we developed an empirical model that also included crop inventory adjustments, a factor that is underemphasized in the literature. The study shows that, if inventory effects are not taken into account, the impacts of the various factors on food commodity price inflation would be overestimated. Although our model explains most of the price fluctuation observed in 2001–2011, it is not able to explain all of it. Other factors, such as speculation, trade policy and weather shocks, which are not included in the analysis, might be responsible for the remaining contribution to the food commodity price increase.

87 citations

Journal ArticleDOI
TL;DR: In this article, a conceptual model of consumer response to different types of price-matching characteristics (i.e., refund depth, length, and scope) across consumer segments with varying levels of price consciousness was developed and tested.

86 citations

Journal ArticleDOI
TL;DR: In this paper, the authors focus on the relationship between price adjustment in response to changes in economic conditions and industrial market structure and propose a synthesis between the long-standing "administered prices" hypothesis, and the recent theories associated with the "new view" of Keynes.
Abstract: The present thesis is concerned with the relationship between price adjustments in response to changes in economic conditions and industrial market structure. Its point of departure consists of abandoning the time-honoured assumption that firms in industrial markets act as if they were price takers. Instead, attention is focused on the determinants of price adjustment in a more realistic industrial setting. Following the introductory analysis, a synthesis is proposed between the long-standing "administered prices" hypothesis, and the recent theories associated with the "new view" of Keynes. It is suggested that both approaches have common theoretical underpinnings which are themselves closely related to this thesis. The main body of analysis consists of a theoretical and an empirical investigation. In the theoretical section, two distinct aspects of the price adjustment decision are examined. The first concerns the comparative statics of adjustment and involves an analysis of the factors which determine the magnitude of price adjustments following changes in cost and demand. Moreover, the influence of market structure on the adjustment process is examined through its impact on the costs of search which are associated with the pricing decision. The second, and no less important aspect of the theoretical investigation concerns the dynamics of price adjustment. The object of this analysis is to assess the impact of market structure on the rate of price adjustment over time. The two hypotheses developed in the theoretical section are put to extensive empirical testing. The quantitative analysis involves mainly time-series and cross-section regressions, but other statistical techniques such as rank correlation and covariance tests are also employed. The first of these hypotheses is that price adjustments in response to short-run changes in demand could be attenuated relative to those occasioned by changes in marginal costs. The rationale for this asymmetry is based on the unequal impact of search costs. The empirical findings, whilst by no means conclusive, do not contradict this view. The second hypothesis suggests that a high degree of industrial concentration will be associated with high rates of price adjustment. This is because concentration facilitates the process of dynamic co-ordination amongst firms by reducing the costs of search. The empirical results come out strongly in favour of this hypothesis. The consequential implications regarding "administered prices" and the management of inflation are explored in the concluding chapter of this thesis.

86 citations

Journal ArticleDOI
TL;DR: Chaiken et al. as discussed by the authors investigated consumer decisions concerning price search using the heuristic-systematic model of social judgment and found that consumers used the size of the percentage discount as a heuristic cue to help decide whether a better price was likely to be available elsewhere.
Abstract: Consumer decisions concerning price search were investigated using the heuristic-systematic model of social judgment (S. Chaiken, A. Liberman, & A. H. Eagly, 1989 ). Consumers used the size of the percentage discount as a heuristic cue to help decide whether a better price was likely to be available elsewhere. However, as predicted, participants relied on this cue only when the initial base price of the item was low. In contrast, search was continued despite the offer ofa large percentage discount when consumers were shopping for items that were relatively expensive. This finding was attributed to the higher potential costs associated with missing a better price when consumers were shopping for more expensive items. In general, the heuristic-systematic model proved to be a useful way to characterize price search decisions. It was also suggested that these findings might be useful in explaining some conflicting results in the price search literature. Implications for behavioral price theories are also discussed.

86 citations


Network Information
Related Topics (5)
Wage
47.9K papers, 1.2M citations
88% related
Monetary policy
57.8K papers, 1.2M citations
87% related
Productivity
86.9K papers, 1.8M citations
87% related
Interest rate
47K papers, 1M citations
86% related
Unemployment
60.4K papers, 1.3M citations
86% related
Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20236
20227
202115
202017
201919
201816