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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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Journal ArticleDOI
TL;DR: This article presents a comprehensive model to integrate pricing and capacity allocation decisions in most revenue management models for perishable products, and shows that at any time, a customer class is active if and only if the price offered is over a threshold level.

94 citations

Journal ArticleDOI
TL;DR: In this paper, the authors explored the role of a number of factors in explaining the heterogeneity in the degree of price stickiness across industries, on the basis of the information provided by surveys on pricing behavior conducted in nine euro area countries.
Abstract: This paper explores the role of a number of factors in explaining the heterogeneity in the degree of price stickiness across industries, on the basis of the information provided by surveys on pricing behavior conducted in nine euro area countries. The main focus is placed on the influence of competition on the degree of price flexibility. Our results suggest that the price setting strategies of the most competitive firms give them a greater capacity to react to shocks and make, in practice, for greater flexibility in their prices. The direct influence of market competition on price flexibility is corroborated by a cross-country cross-industry econometric analysis based on the information provided by surveys. This analysis also shows that the cost structure and demand conditions help to explain the degree of price flexibility. Finally, it suggests that countries in which product market regulation is more relevant are characterized by less price flexibility.

93 citations

Journal ArticleDOI
TL;DR: In this article, it was demonstrated that the presentation format of numeric price information and the arithmetic operation required in the price impose a hierarchy on consumers' evaluation effort for multi-dimensional prices.
Abstract: Prices in the marketplace often consist of multiple dimensions, such as a base price, percentage discounts, trade-in values, and monthly fees. The presence of multiple dimensions in a price forces consumers to compute the net price in order to determine the value of the presented offer. In two experiments, it is demonstrated that the presentation format of numeric price information and the arithmetic operation required in the price impose a hierarchy on consumers’ evaluation effort for multi-dimensional prices. The resulting variations in consumer effort are shown to systematically influence decision accuracy. Implications challenging the traditional uni-dimensional view of price are discussed.

93 citations

Journal ArticleDOI
TL;DR: In this paper, price competition yields a static equilibrium in which each seller draws a price from a specified density function, and the results suggest that some markets are indeed consistent with the marginal distributions of prices predicted by the model.
Abstract: I present tests of a competitive rationale for price promotions. In a model with a population of informed and uninformed customers, price competition yields a static equilibrium in which each seller draws a price from a specified density function. Price data on coffee and saltine crackers products are used to test whether the sample of prices on each product could have possibly come from the theoretically specified density function. The results suggest that some markets are indeed consistent with the marginal distributions of prices predicted by the model. Furthermore, in the process of testing this rationale for price promotions, estimates are obtained for the marginal cost of each product, the number of competing goods, and the percentage of informed consumers. The resulting excess variability of these estimates across competing brands can also raise questions with respect to the empirical validity of the model.

93 citations

Journal ArticleDOI
TL;DR: A small and very volatile fraction of total domestic food production is a small fraction of the average price of cereals, and domestic price fluctuations tend to be an amplified version of international price fluctuations as mentioned in this paper.
Abstract: a small and very volatile fraction of total domestic food production. Many countries aim at food self-sufficiency, with the consequence that the country may be an exporter in good years, but an importer in bad years. International and domestic transport and handling costs are a significant fraction of the average price of cereals, so the domestic price fluctuations will tend to be an amplified version of international price fluctuations - the difference between the domestic price in exporting and importing years will be twice the transport costs if the world price is unchanged. It would require a strong negative correlation between domestic and world supply to offset this additional source of instability.1

93 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20238
202215
20217
202013
201922
201837