Limit price

About: Limit price is a research topic. Over the lifetime, 4865 publications have been published within this topic receiving 148546 citations.

Pricing for Profitability: Activity-Based Pricing for Competitive Advantage

Abstract: Acknowledgements. Preface. Pricing for Profitability. Economics and Demand. Competitive Strategy and Pricing. Understanding Pricing Strategy. Costs. Activity-Based Costing. Activity-Based Pricing. Activity-Based Pricing Models. Influence of Capacity Utilization. Target Pricing. Price Negotiations. Conclusions and Summary. Glossary. Index.

Pricing management for a closed-loop supply chain

Abstract: A closed-loop supply chain includes the forward supply chain and the reverse supply chain. In a reverse supply chain, the used products are collected from the end-customers. Hence, the return rate of used products is affected by the end-customer's willingness, and the end-customer's willingness is affected by the collecting price. In a forward supply chain, the wholesale price and the retail price will be affected by the collecting price. In this paper, we focus on the managements of the collecting price, the wholesale price and the retail price for the closed-loop supply chain. On the assumption that the return rate of the used products is an increasing function of the collecting price, we obtain the optimal collecting price, the optimal wholesale price and the optimal retail price based on the following models: Model CMRC (The manufacturer for collecting), Model CRMRC (The retailer for collecting) and Model CTMRC (The third party for collecting). By comparing the optimal pricing and the profits of the models, we find that the manufacturer for collecting is the best choice, and the retailer for collecting is another choice if the manufacturer has decided to transfer all its cost saving to the retailer. At the end of the paper, a numerical example is given to illustrate the optimal results.

The Effect of Electronic Commerce on Geographic Purchasing Patterns and Price Dispersion

Abstract: The “law of one price” states that if prices for the same or highly similar goods vary across geographic locations by more than the cost of transport, then traders will shift supply and demand to exploit the price differences. However, several frictions prevent traders from doing this, including lack of information about prices and difficulty trading across locations. Electronic commerce has the potential to reduce these frictions by increasing price visibility and lowering transaction costs. We analyze this by studying how the diffusion of an electronic channel affected geographic trading patterns and price dispersion in the wholesale used vehicle market from 2003 to 2008. We find that buyers used the channel to shift their demand geographically to exploit price differences, which reduced geographic price dispersion. We find that the electronic channel also influenced how sellers distributed supply, but little evidence that this led to reduced geographic price dispersion.

Estimation of Residential Water Demand with Imperfect Price Perception

Abstract: Using data from a household survey carried out in the French overseas territory of Reunion, we investigate the price of drinking-water perceived by households faced with an increasing, multi-step pricing scheme. To this purpose we use an improved version of the method introduced by Shin (1985) to estimate the demand for residential water when consumers are imperfectly informed about their pricing schedule. The empirical results suggest that Reunion households underestimate the price of water and thus consume more than what is economically rational. Providing information to households about the marginal price of water may be an innovative means of inducing them to respond to pricing policies designed to promote water conservation.