Topic
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 article, the authors examine whether crude oil prices are transmitted to the retail gasoline prices in the short and long run and test the symmetry of price adjustments hypothesis and find that the retail fuel speed of upward/downward price adjustment to equilibrium is considered as symmetric in all four economies analyzed.
35 citations
TL;DR: This article applied a recursive model of structure-entry-performance with structural feedbacks to sixty-two Korean manufacturing industries for 1976-81 and found that the results strongly support the market power hypothesis and that the invisible hand is working: structure is evolving as expected with high profits leading to entry and consequently lower profits.
Abstract: This paper applies a recursive model of structure-entry-performance with structural feedbacks to sixty-two Korean manufacturing industries for 1976-81. The results strongly support the market power hypothesis. The results also indicate that, despite active government intervention, the invisible hand is working: structure is evolving as expected with high profits leading to entry and consequently lower profits. However, there is little support for limit pricing hypotheses in this explosively growing economy. Copyright 1990 by MIT Press.
35 citations
TL;DR: In this article, the authors proposed a system that supplements the existing price system with a cap-and-trade measure to reconcile conflicts among the goals of residential water use, and a simulation of this system applied to Taipei, Taiwan shows that those with lower income per capita are better off under this system even though the equilibrium price of residential Water is higher.
Abstract: In practice, water pricing is the main economic instrument used to discourage the wasteful use of residential water. Owing to considerations of affordability, residential water is systematically underpriced because water is essential for life. Such a low price results in water being used inefficiently. This paper proposes a system that supplements the existing price system with a cap-and-trade measure to reconcile conflicts among the goals of residential water use. It forces all people (independent of income) to be faced with reasonable price signals and to use water efficiently. The poor could, however, gain from trade and afford water. By taking advantage of the agent-based model, a simulation of this system applied to Taipei, Taiwan shows that those with lower income per capita are better off under this system even though the equilibrium price of residential water is higher. The simulated average price elasticity of market demand is −0.449.
35 citations
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TL;DR: In this article, a two-country dynamic general-equilibrium model with imperfect competition and price stickiness is considered, and the conditions under which price stability can implement the flexible-price allocation as a Nash equilibrium are discussed.
Abstract: A two-country dynamic general-equilibrium model with imperfect competition and price stickiness is considered. This work shows the conditions under which price stability can implement the flexible-price allocation as a Nash equilibrium. This is possible if and only if both countries maintain a certain positive degree of monopolistic competition. In such equilibrium, the monetary policymakers have no incentive to surprise price setters ex post.
35 citations
TL;DR: In this article, the authors study price rivalry between two firms facing a population of imperfectly informed buyers and show that the competitive process either suffers from cyclical instability or stabilises at that price at which no buyer searches.
35 citations