We empirically test the hypothesis that the discounts offered by firms to consumers who purchase tickets in advance increase with the intensity of competition. We develop a new measure of competition for which we use the proximity (in departure time) of a given flight to its competitors to infer...

This paper provides a cautionary tale about claiming environmental costs and benefits when justifying the use of public funds. Using the example of a dynamic pricing policy, we show that the resulting impact on short-term operating costs and emissions is at best ambiguous. Moreover, it is hard...

The German petrol station market is characterized by strong intraday price cycles, which probably correspond to the well-known Edgeworth cycles. The prices go up strongly in the late evening or in the middle of the night, fall relatively heavily in the early morning and then go up and down...

The electricity price arbitrage from the utility grid can be a major source of revenue for energy storage systems. In most countries, the electricity price is tightly regulated by their government statutory authority or energy regulator to which obey the different power utility and distribution...

This paper develops a model which can be used to minimize the electricity cost of South African farms through the usage of a wind pump with pico hydro generator and a borehole in pumped hydro storage configuration referred to as "hydro aeropower". This model will optimally schedule the...

The static model of two sided markets proposed by Rochet and Tirole analyses optimal pricing of a monopolistic platform at the equilibrium point. Their framework implicitly assumes that for each prices set by the platform, the equilibrium number of users on each side will be unique. However,...

Emerging tracking data allow precise predictions of individuals' reservation values. However, firms are reluctant to conspicuously implement personalized pricing because of concerns about consumer and regulatory reprisals. This paper proposes and applies a method which disguises personalized...

A seller with commitment power sets prices over time. Risk-averse buyers arrive to the market and decide when to purchase. We obtain that the optimal price path is a "regular" price, with occasional episodes of sequential discounts that occur at random times. The optimal price path has the...

Time-varying prices are thought to be critical for increasing economic efficiency of the power system. However, a rigorous assessment of the evidence from field trials that use time-of-use pricing, critical peak pricing, etc. in households is missing. This machine learning-assisted systematic...

Competition in the German gasoline retail market is characterized by strong intraday price cycles. The cycles are described in the literature as corresponding to the well-known Edgeworth cycles. Cyclical pricing patterns are observable all over Germany and throughout the world. So far, research...