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Limit price
About: Limit price is a research topic. Over the lifetime, 4865 publications have been published within this topic receiving 148546 citations.
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TL;DR: In this paper, the optimal capacity of a road is affected by a pricing constraint which keeps the toll fixed below its optimal value, and the answer is found to depend on the value of the price elasticity of travel demand at the second-best optimum.
64 citations
TL;DR: In this paper, the effects of CO2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets were analyzed using an agent-based electricity market simulation with endogenous investment and a CO2 market including banking.
64 citations
TL;DR: In this paper, the authors compare the impact on retailer profitability of two price discrimination mechanisms: quantity discounts based on package size and store-level pricing or micromarketing (third-degree price discrimination).
Abstract: Retailers typically engage in some form of price discrimination to increase profitability. In this article, the authors compare the impact on retailer profitability of two price discrimination mechanisms: quantity discounts based on package size (second-degree price discrimination) and store-level pricing or micromarketing (third-degree price discrimination). Whereas the latter has been well addressed in the marketing literature, there is limited empirical research on the use of quantity discounts for price discrimination. Using store-level sales data, the authors estimate a structural demand model, accounting for parameter heterogeneity and price endogeneity. They combine the parameter estimates with a model of retailer pricing to conduct optimal pricing and profitability simulations under several scenarios, ranging from constraining the retailer not to engage in any form of price discrimination to the least restrictive scenario of setting nonlinear price schedules specific to each store. The pr...
64 citations
TL;DR: In this article, the authors show that lags between retail and wholesale food prices can be explained by inventory behavior of retailers, and they show that the markup model should be modified to include a Jorgenson-type user cost variable, which depends on expected future wholesale price.
Abstract: This paper demonstrates that lags between retail and wholesale food prices can be explained by inventory behavior of retailers. Theoretical considerations indicate that the markup model should be modified to include a Jorgenson-type user cost variable, which depends on expected future wholesale price. The rational expectations hypothesis is used to derive price expectations. The retail price specification, therefore, depends on the stochastic process generating expected wholesale price. The econometric methodology, employing both causality testing and nonlinear estimation, is illustrated by estimating monthly price relationships for beef. The results are consistent with the theory and indicate rejection of the markup model.
64 citations
64 citations