We model the demand-pressure effect on prices when options cannot be perfectly hedged. The model shows that demand … option. Similarly, the demand pressure increases the price of any other option by an amount proportional to the covariance of … show that demand-pressure effects help explain well-known option-pricing puzzles. First, end users are net long index …

This paper provides a new and simple model of endogenous horizontal product differentiation based on a standard demand …

elastic demand, which triggers more intensive price competition and leads to lower prices and profits for competing firms. As …

is too high because firms ignore an aggregate demand externality, and when there are costs of changing prices, price …

provide two examples to illustrate this point. In the context of a Cournot duopoly, we show that an implementation scheme in …

Japanese and US firms in their markets. The duopoly model is used to determine export prices and volumes in response to the …

-constrained consumers' access to financial markets make demand insensitive to interest rate fluctuations. The demand of credit … price sector influence aggregate demand and, for monetary policy to have its desired effect, the central bank has to …