Consumer reservation price is a key concept in marketing and economics. Theoretically, this concept has been instrumental in studying consumer purchase decisions,competitive pricing strategies,and welfare economics. Managerially,knowledge of consumer reservation prices is critical for...

This paper proposes a tractable alternative to Cobb-Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb-Douglas utility or quasilinear utility. Another advantage of this alternative is that it provides a closed-form...

Universities spend almost $2 billion subsidizing their collegiate sports programs.  Even the most popular women’s sport, basketball, fails to break even. An application of Becker’s theory of customer discrimination is used to calculate the relative preference for men’s...

The paper presents an analysis of the main ethical aspects concerning the Romanian real estate intermediation sector. The analysis tries to evaluate the true utility of real estate agents’ services and to assess the potential negative effects of an unethical behavior for the clients. In...

We investigate the bearings of the level of demand on firms’ optimal locations and prices in a linear model of spatial differentiation with quadratic disutility of transportation. We show that demand affects both optimal prices and optimal locations of firms, in that firms increase product...

This essay argues that a liberalism that avoids legal moralism – that is neutral between rival conceptions of the good – cannot embrace intervention in commercial transactions, but is thereby precluded neither from identifying some such transactions as exploitative nor from...

(Originally published in Theory and Decision (2007) 62:281-301 (c) Springer) - We consider fixed and asking price strategies in the con- text of selling an asset with Bernoullian updating of the seller’s subjective probability of sale at a given price. The determination of optimal fixed,...

In this paper we set up an oligopolistic market model, where firms invest in pollution abatement in order to increase the whole market size via an increase in the consumers’ reservation price. Moreover, we suppose that the demand function is not a linear one and the resulting game is not a...

We present a theoretical model in tourism economics, assuming that the market for tourism is an oligopoly with differentiated products. Destinations (i.e., countries, regions, sites or even firms) can invest in order to improve their carrying capacity that can be interpreted as the stock of...