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Fixed Price Versus Spot Price Contracts : A Study in Risk Allocation

Polinsky, A. Mitchell - 1986

Thi spaper is concerned with the risk-allocation effects of alternative types of contracts used to set the price of a good tobe delivered in the future. Under a fixed price contract, the price is specified in advance. Under a spot price contract, the price is the price prevailing in the spot...

Persistent link: https://www.econbiz.de/10012477260

Empirical Evidence on Conditional Pricing Practices

Genchev, Bogdan - 2016

Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary based on the ability of the downstream firm to meet a set of conditions put forward by the producer. The conditions may require a downstream firm to accept minimum quantities or multiple...

Persistent link: https://www.econbiz.de/10012456362

Exclusionary Minimum Resale Price Maintenance

Asker, John - 2010

An upstream manufacturer can use minimum retail price maintenance (RPM) to exclude potential competitors. RPM lets the incumbent manufacturer transfer profits to retailers. If entry is accommodated, upstream competition leads to fierce down- stream competition and the breakdown of RPM. Hence,...

Persistent link: https://www.econbiz.de/10012462093

Vertical Information Restraints : Pro- and Anti-Competitive Impacts of Minimum Advertised Price Restrictions

Asker, John - 2016

We consider vertical contracts where the retail market may involve search frictions. Minimum advertised price restrictions (MAP) act as a restraint on customers' information and so can increase search frictions in the retail sector. Such restraints, thereby, soften retail competition--an impact...

Persistent link: https://www.econbiz.de/10012455909

The economics of new goods : [contains revised versions of the papers and discussion presented at the Conference on Research in Income and Wealth entitled New Products : history, t...

Bresnahan, Timothy F. (ed.); Gordon, Robert J. (ed.) - 1997

Persistent link: https://www.econbiz.de/10000592908

Uniform Pricing in US Retail Chains

DellaVigna, Stefano - 2017

We show that most US food, drugstore, and mass merchandise chains charge nearly-uniform prices across stores, despite wide variation in consumer demographics and the level of competition. Estimating a model of consumer demand reveals substantial within-chain variation in price elasticities and...

Persistent link: https://www.econbiz.de/10012453718

Pricing when Customers Care about Fairness but Misinfer Markups

Eyster, Erik - 2017

This paper proposes a theory of price rigidity consistent with survey evidence that firms stabilize prices out of … fairness to their consumers. The theory relies on two psychological assumptions. First, customers care about the fairness of … rigid. Embedded in a simple macroeconomic model, our pricing theory produces nonneutral monetary policy, a short …

Persistent link: https://www.econbiz.de/10012453933

Flexible Prices and Leverage

D’Acunto, Francesco - 2017

The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most flexible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...

Persistent link: https://www.econbiz.de/10012455614

On What States Do Prices Depend? Answers From Ecuador

Benedict, Craig - 2016

In this paper, we argue that differences in the cost structure across sectors play an important role in the decision of firms to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers. An important facet of our...

Persistent link: https://www.econbiz.de/10012456172

Paralyzed by Fear : Rigid and Discrete Pricing under Demand Uncertainty

Ilut, Cosmin L. - 2016

certain robust empirical facts from micro price datasets. We propose a new, parsimonious theory of price rigidity, built …

Persistent link: https://www.econbiz.de/10012456187

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