[PDF] Effects Of Demand Uncertainty On Equilibrium Of Prices And Quantities In A Competitive Market eBook

Author : Dung Nguyen
Publisher : Springer Science & Business Media
Page : 320 pages
File Size : 10,91 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 1461562090

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Remarkable advance in quantitative marketing research in the last two decades, incorporating applied microeconomic theories, operations research and management applications, has brought the field of marketing alongside with finance, accounting and productionto within an executive'sreach for a sophisticatedtoolbox for decision making in an increasingly competitive and complex business environment. A quick look at Marketing, a recently published book edited by Eliashberg and Lilien would indicate even to the casual reader the extent of such methodological progress made by marketing scholars. Even in such an impressive and nearly exhaustive collection oftopics, with the notable exception pointed out by the editors of applicationsofthe scanner data, and in spite of the reference to it, an important omission is related to the issues ofmarketing decisions under conditions ofuncertainty. It is fairly obvious to the marketing executive and academician alike to recognize the important role uncertaintyplays in marketingdecisions such as pricing, promotion, advertising, sales force management, and others. The major purpose of this study is to address certain major marketing decision variables within the general context of an uncertain environment. While there have been significant progresses in analyzing marketing behaviors in a stochastic environment,the sourcesscatteramong differentmanagementandmarketingjoumals; and to the extent that these issues are addressed at all, they have aimed mainly at each separate, specifictopic at a time. Thus, our effort to bring these studies together in the same framework should facilitate our in-depth analysis of these important phenomena.

Author : Peter A. Diamond
Publisher :
Page : 584 pages
File Size : 12,91 MB
Release : 1978
Category : Business & Economics
ISBN :

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The First Edition, published in 1978, brought together classic and modern thinking in the economics of uncertainty and provided the first text in the area. This Second Edition includes three new articles, added material on search theory, an additional preface, and updated references. Articles, introduced with brief commentaries, are divided into three broad sections: theory of choice under uncertainty, general equilibrium models of financial institutions, and models of the effects of uncertainty on market institutions.

Author : Kai-Uwe Kühn
Publisher :
Page : 148 pages
File Size : 19,19 MB
Release : 1995
Category : Business & Economics
ISBN :

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"The report assesses the initiatives for information exchange among firms and their consequences for welfare with a view towards the design of competition policy in this domain. To this end the report surveys critically the academic literature on static and dynamic models of competition in their relation to information exchange and examines the main antitrust legislation and cases in Europe and the US."--Page i.

Author : Marcus Asplund
Publisher :
Page : 0 pages
File Size : 39,38 MB
Release : 1998
Category :
ISBN :

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In this paper we consider how the degree of risk aversion, and demand/cost uncertainty, influence competition on oligopolistic markets. Under demand uncertainty, the best response strategies (both quantities and prices) are decreasing in risk aversion, but for cost uncertainty, quantities are decreasing while prices are increasing. If firms are risk averse, past profits and fixed costs are important because they affect net wealth. The paper also studies multi-stage games, where firms take into account that today's profit will determine the intensity of tomorrow's competition. Finally, we characterise the equilibrium number of risk averse firms in the market. Under demand uncertainty and price competition, concentration is never lower but prices may be higher or lower in equilibrium, compared to a risk neutral market, whereas with quantity competition the effects are ambiguous.

Author : Meng Li
Publisher :
Page : 0 pages
File Size : 28,68 MB
Release : 2023
Category :
ISBN :

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While the existing literature has studied the impact of demand uncertainty extensively within various monopoly settings, there is little research on its impact among competitive retailers. In this paper, we study the effects of demand uncertainty reduction in a setting with two newsvendor retailers competing on product availability. We parameterize the uncertainty level via a mean-preserving spread, and investigate the behavior of both retailers' equilibrium stocks and their expected profits in response to demand uncertainty reduction. We find that as one retailer's demand uncertainty decreases, it might move its order quantity away from the demand mean, which contrasts with the “pull-to-center” effect in the monopoly setting. Moreover, we show that as a retailer's demand uncertainty decreases, its own equilibrium profit increases while that of its competitor decreases.

Author : Anna Cretì
Publisher : Cambridge University Press
Page : 369 pages
File Size : 31,64 MB
Release : 2019-05-30
Category : Business & Economics
ISBN : 1107185653

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Explains the economics of electricity at each step of the supply chain: production, transportation and distribution, and retail.