Topic
Limit price
About: Limit price is a research topic. Over the lifetime, 4865 publications have been published within this topic receiving 148546 citations.
Papers published on a yearly basis
Papers
More filters
TL;DR: In this paper, the authors investigate whether sellers treat consumers differently on the basis of how well informed consumers appear to be, and they implement a large-scale field experiment in which callers request price quotes from automotive repair shops.
Abstract: The authors investigate whether sellers treat consumers differently on the basis of how well informed consumers appear to be. They implement a large-scale field experiment in which callers request price quotes from automotive repair shops. The authors show that sellers alter their initial price quotes depending on whether consumers appear to be correctly informed, uninformed, or misinformed about market prices. The authors find that repair shops quote higher prices to callers who cite a higher benchmark price and that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention a benchmark price for the repair. Finally, the authors find that repair shops are more likely to offer a price concession if asked to do so by a woman than if asked by a man.
33 citations
TL;DR: This article developed a model to derive how much price distortion a government would introduce when it cares about stability in a situation with limited policy options, and identified the optimal combination of distortions and stability for given international price shocks and interest groups preferences for stability.
Abstract: This paper addresses to what extent governments have traded off price distortions for reduced volatility in intervening in agricultural and food markets during the recent food price spikes. We develop a model to derive how much distortions a government would introduce when it cares about stability in a situation with limited policy options. We show a trade-off and identify the optimal combination of distortions and stability for given international price shocks and interest groups preferences for stability. Empirical evidence shows that several countries have been able to reduce (short run) price volatility in the domestic markets while at the same time allowing structural (medium and long term) price changes to pass through to producers and consumers. However, this is not the general case. For many countries, even when explicitly taking into account the trade-off (and the benefits of reducing volatility) government policies appear far removed from the optimal trade-off and there appears to be much room for policy improvement.
33 citations
12 Jun 2005
TL;DR: In this article, the authors start from the fundamental concepts of market clearing price (MCP) and locational marginal price (LMP) in the electricity markets, and present some interesting observations on MCP and LMP.
Abstract: This paper starts from the fundamental concepts of market clearing price (MCP) and locational marginal price (LMP) in the electricity markets, and presents some interesting observations on MCP and LMP. The point at which demand curve and supply curve intersects establishes the MCP. The non-existence of MCP and existence of multiple MCPs is explored. LMP is the marginal cost of supplying the next MW of load at a specific location. LMPs with the presence of price-responsive demand and multi-period coupling constraints are discussed. For the first time, the cases where LMP is higher than the highest generation bidding price and where LMP is lower than the lowest generation bidding price are discussed, all using examples for a simple 3-bus network.
33 citations
TL;DR: In this paper, the authors quantified what is meant by higher price level and dispersion in an oligopoly market with imperfectly informed consumers for both fixed sample search and sequential search.
Abstract: This paper qualifies and quantifies what is meant by higher price level and dispersion in an oligopoly market with imperfectly informed consumers for both Fixed Sample Search and Sequential Search. The objective is to identify the conditions under which prices become lower and price dispersion reduces as a function of consumers’ information. Surprisingly, the mean price is an increasing function of search intensity and price dispersion is an inverse U-shaped function of the proportion of informed consumers.
33 citations
TL;DR: In this article, the authors report an evaluation of two market design features that may reduce volatility during price discovery: a uniform price auction, in which all trades within a period take place at the same price, and an initial lease period, which prohibits permanent trading at the beginning of the program.
Abstract: Newly established tradable fishing allowance markets are often accompanied by a period of high price volatility. These fluctuations complicate capital investment decisions and play a significant role in determining outcomes for the traders involved. This paper reports an evaluation of two market design features that may reduce volatility during price discovery: a uniform price auction, in which all trades within a period take place at the same price, and an initial lease period, which prohibits permanent allowance transfers at the beginning of the program. We find that initial lease periods effectively reduce volatility once permanent trading is introduced.
33 citations