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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 effects of demand and price expectations on price behavior were analyzed, using data from the manufacturing sector and a model formulated to pinpoint the demand-oriented factors affecting prices and to incorporate price expectations as a direct influence on price behaviour.
Abstract: The effects of demand and price expectations on price behavior are analyzed, using data from the manufacturing sector and a model formulated to pinpoint the demand-oriented factors affecting prices and to incorporate price expectations as a direct influence on price behavior. The expected normal demand is seen to have a strong and systemic influence on price behavior. The expected normal level of new orders is found to be an adequate measure with sector data in general, although some industries require more specification. The effects of inventories and unfilled orders on prices are sporadic and across sectors and industries. Demand-oriented forces are concluded to perform as well statistically as cost-push determinants. Expectations concerning the current normal industry price level have a significant and consistent impact on price behavior. This supports the idea that firms setting prices take into account their estimates of competitor's prices. Future price expectations appear to have little effect on current price information. 15 references.
60 citations
TL;DR: The authors showed that tariffs will not emerge as a policy choice if income is redistributed solely through trade policy-induced factor price changes, and a production tax cum subsidy will be adopted as both gainers and losers are better off than with a tariff.
60 citations
TL;DR: The authors found that prices respond more to increases in costs driven by changes in factor prices than to an increase in marginal cost precipitated by expansions in output in U.S. manufacturing industries.
59 citations
TL;DR: In this article, a resale price maintenance policy is proposed for third-degree price discrimination by rival retailers, where a retail price ceiling (or floor) enables the manufacturer to restore the first best.
Abstract: Oligopoly price discrimination in the retail market prevents a manufacturer from inducing optimal retail margins through any wholesale price. This motivates the manufacturer to impose resale price maintenance. In a model of third-degree price discrimination by rival retailers, a retail price ceiling (or floor) enables the manufacturer to restore the first best. Imposing a fixed retail price is generally not optimal because the manufacturer wants to eliminate price discrimination based on consumers’ abilities to switch retailers, not based on consumers’ valuations. Under resale price maintenance, welfare may either increase or decrease, and it may increase even when total output is reduced.
59 citations
TL;DR: In this article, a theoretical model of the factors influencing both the location and the method of production chosen by multinational enterprises and examines the extent to which it can be used to explain aggregate foreign direct investment in the United Kingdom over the last two decades.
Abstract: This paper constructs a theoretical model of the factors influencing both the location and the method of production chosen by multinational enterprises and examines the extent to which it can be used to explain aggregate foreign direct investment in the United Kingdom over the last two decades. The results suggest that market size, relative factor prices, and the nonproduction costs of trade have an important influence on the location of investment. The evidence presented is also consistent with the hypothesis that investment in the United Kingdom is viewed as offering access to a wider (tariff free) European market. Copyright 1993 by Scottish Economic Society.
59 citations