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Returns Policies and Retail Price Competition

Padmanabhan, V.; Png, I.P.L. - EconWPA - 2004

We show that returns policies do increase manufacturer profitability by attenuating price competition between retailers. This effect holds only in the presence of end-user demand uncertainty. The conditions under which a returns policy raises the manufacturer's profit are weaker when retailing...

Persistent link: https://www.econbiz.de/10005134512

Relative Thinking Theory

Azar, Ofer H. - EconWPA - 2005

The article presents a theory that I denote “Relative Thinking Theory,” which claims that people consider relative differences and not only absolute differences when making various economics decisions, even in those cases where the rational model dictates that people should consider only...

Persistent link: https://www.econbiz.de/10005135074

When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws

Bergen, Mark; Levy, Daniel; Ray, Sourav; Rubin, Paul; … - EconWPA - 2004

We study item-pricing laws (which require that each item in a store be individually marked with a price sticker) and examine and quantify their costs and benefits. On the cost side, we argue that item-pricing laws increase the retailers’ costs, forcing them to raise prices. We test this...

Persistent link: https://www.econbiz.de/10005412533

Explicit Evidence on an Implicit Contract

Young, Andrew; Levy, Daniel - EconWPA - 2005

We offer the first direct evidence of an implicit contract in a goods market. The evidence we offer comes from the market for Coca-Cola. We demonstrate that the Coca-Cola Company left a substantial amount of written evidence of its implicit contract with its consumers—a very explicit form of...

Persistent link: https://www.econbiz.de/10005412684

Loss Leaders: An Indirect Empirical Test

Lee, Tom S.; Png, I.P.L. - EconWPA - 2004

We apply an indirect method to test for the extent of loss leader pricing. Specifically, the extent of loss leader pricing should increase with the profit from other regularly-priced items. Bookstores customarily use bestsellers as loss leaders. Among conventional bookstores, we found that the...

Persistent link: https://www.econbiz.de/10005412883

Parallel Imports and Music CD Prices

Chen, Yeh-ning; Png, I.P.L. - EconWPA - 2004

Parallel imports are a significant academic and policy issue. Official investigations into the impact of parallel imports on music CD prices have reached widely conflicting conclusions. This note reports an event study on an international panel of changes in copyright law to permit or disallow...

Persistent link: https://www.econbiz.de/10005119281

Value Creation and Profit Optimization

Winther, K. Tobias - EconWPA - 2002

The present paper develops a basic framework for evaluating and optimizing profits in a business operation. In developing a business we are often faced with an infinity of choices ranging from what products or services to sell and what customers to target to how to structure and manage the...

Persistent link: https://www.econbiz.de/10005561773

Centralization and Decentralization of Public Policy in a Complex Framework

Alfano, Maria Rosaria - EconWPA - 2005

positive and normative issues related to centralization and decentralization in a globalized framework as well as the … conflicting centralization and decentralization processes. Finally, this paper concludes with an exploration of how a form of in … usefulness of new optimizing procedures for the governance of decentralization. The first section of the paper explores both …

Persistent link: https://www.econbiz.de/10005556929

Empirical Investigation of Autonomy and Motivation

Petrova, Kameliia - EconWPA - 2005

I study the effect of workers' motivation on the firm's choice of how much autonomy employees should be given. The main hypothesis of the paper is that employers give autonomy to workers who are already especially motivated. The empirical work is based on data from Wave 1 of the Health and...

Persistent link: https://www.econbiz.de/10005125716

Coasean economics and the evolution of marine property in Hawaii

kaiser, brooks; roumasset, james - EconWPA - 2004

The standard view that the absence of property rights is inefficient contradicts the Coasean proposition that the relative efficiency of different institutions depends on their ability to economize on transaction costs. Moreover, the comparative theory of open access and private property...

Persistent link: https://www.econbiz.de/10005135079