scholarly journals Implications for Firms with Limited Information to Take Advantage of Reference Price Effect in Competitive Settings

Complexity ◽  
2017 ◽  
Vol 2017 ◽  
pp. 1-16 ◽  
Author(s):  
Junhai Ma ◽  
Zhanbing Guo
Keyword(s):  
Reference Price ◽  
Partial Information ◽  
Necessary Condition ◽  
Adjustment Process ◽  
Flip Bifurcation ◽  
Limited Information ◽  
Dynamic Adjustment ◽  
Internal Reference ◽  
Special Cases ◽  
Price Effects

This paper studies internal reference price effects when competitive firms face reference price effects and make decisions based on partial information, where their decision-making mechanism is modeled by a dynamic adjustment process. It is shown that the evolution of this dynamic adjustment goes to stabilization if both adjustment speeds are small and the complexity of this evolution increases in adjustment speeds. It is proved that the necessary condition for flip bifurcation or Neimark-Sacker bifurcation will occur with the increase of adjustment speed in two special cases. What is more, numerical simulations show that these bifurcations do occur. Then, the impacts of parameters on stability and profits are investigated and some management insights for firms with limited information to take advantage of reference price effects are provided.

scholarly journals Cournot Duopoly Games: Models and Investigations

Mathematics ◽  
2019 ◽  
Vol 7 (11) ◽  
pp. 1079 ◽  
Author(s):  
S. S. Askar ◽  
A. Al-khedhairi
Keyword(s):  
Fixed Point ◽  
Bounded Rationality ◽  
Local Stability ◽  
Adjustment Process ◽  
Limited Information ◽  
Cournot Duopoly ◽  
Dynamic Adjustment ◽  
Local Stability Analysis ◽  
Tit For Tat ◽  
Adjustment Parameter

This paper analyzes Cournot duopoly games that are constructed based on Cobb–Douglas preferences. We introduce here two models whose dynamic adjustments depend on bounded rationality, dynamic adjustment, and tit-for-tat mechanism. In the first model, we have two firms with limited information and due to that they adopt the bounded rationality mechanism. They update their productions based on the changing occurred in the marginal profit. For this model, its fixed point is obtained and its stability condition is calculated. In addition, we provide conditions by which this fixed point loses its stability due to flip and Neimark–Sacker bifurcations. Furthermore, numerical simulation shows that this model possesses some chaotic behaviors which are recovered due to corridor stability. In the second model, we handle two different mechanisms of cooperation. These mechanisms are dynamic adjustment process and tit-for-tat strategy. The players who use the dynamic adjustment increase their productions based on the cooperative output while, in tit-for-tat mechanism, they increase the productions based on the cooperative profit. The local stability analysis shows that adopting tit-for-tat makes the model unstable and then the system becomes chaotic for any values of the system’s parameters. The obtained results show that the dynamic adjustment makes the system’s fixed point stable for a certain interval of the adjustment parameter.

scholarly journals Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects

2021 ◽  
Vol 16 (5) ◽  
pp. 1492-1516
Author(s):  
Wenhua Hou ◽  
Yuwen Zeng
Keyword(s):  
Supply Chain ◽  
Discount Rate ◽  
Reference Price ◽  
Stackelberg Game ◽  
Lower Boundary ◽  
Retail Price ◽  
Reference Points ◽  
Price Effects ◽  
Retail Prices ◽  
Online Book

(1) Background: A binding recommended retail price has been used in several markets in a variety of forms, and the book market is a typical example. Publishers sell books to online retailers at a unit wholesale discount computed on the cover price. Retailers are then allowed to set the retail price. Therefore, if consumers regard the cover prices as reference points, then they may be more likely to purchase books if retail prices are lower than the cover prices. (2) Methods: We develop a Stackelberg game model for a book supply chain to investigates how reference price effects affect retailers and publisher’s pricing strategies. (3) Results: The results show that retailers will sell printed books at a discount only when the publisher’s wholesale discount rate is not high. Further, as the intensity of the reference price effects increases, (a) the lower boundary of the wholesale discount rate rises, (b) publishers’ profits increase and (c) retailers’ profits increase relative to the level of consumers’ e-books acceptance. (4) Conclusions: This result is related to the fact that the online retailer, such as Amazon and JD.com, like to invoke reference price effects in consumers’ minds by highlighting the printed book’s discount rate.

SET-VALUED PERFORMANCE APPROXIMATIONS FOR THE QUEUE GIVEN PARTIAL INFORMATION

2020 ◽  
pp. 1-23
Author(s):  
Yan Chen ◽  
Ward Whitt
Keyword(s):  
Steady State ◽  
Decay Rate ◽  
Waiting Time ◽  
Partial Information ◽  
Upper And Lower Bounds ◽  
Interarrival Time ◽  
Limited Information ◽  
Wide Range ◽  
The Mean ◽  
Third Moment

In order to understand queueing performance given only partial information about the model, we propose determining intervals of likely values of performance measures given that limited information. We illustrate this approach for the mean steady-state waiting time in the $GI/GI/K$ queue. We start by specifying the first two moments of the interarrival-time and service-time distributions, and then consider additional information about these underlying distributions, in particular, a third moment and a Laplace transform value. As a theoretical basis, we apply extremal models yielding tight upper and lower bounds on the asymptotic decay rate of the steady-state waiting-time tail probability. We illustrate by constructing the theoretically justified intervals of values for the decay rate and the associated heuristically determined interval of values for the mean waiting times. Without extra information, the extremal models involve two-point distributions, which yield a wide range for the mean. Adding constraints on the third moment and a transform value produces three-point extremal distributions, which significantly reduce the range, producing practical levels of accuracy.

The Olympic Games as a News Shock

2017 ◽  
Vol 19 (6) ◽  
pp. 884-906 ◽  
Author(s):  
Viktoria C. E. Langer ◽  
Wolfgang Maennig ◽  
Felix Richter
Keyword(s):  
Steady State ◽  
Olympic Games ◽  
Structural Models ◽  
Adjustment Process ◽  
Dynamic Adjustment ◽  
Economic Variables ◽  
Long Run ◽  
News Shock ◽  
Steady State Levels ◽  
The Olympic Games

The awarding of the Olympic Games to a certain city or the announcement of a city’s Olympic bid may be considered as a news shock that affects agents’ market expectations. A news shock implies potential impacts on the dynamic adjustment process that change not only the volatility but also the long-run steady-state levels of endogenous economic variables. In this study, we contribute to and extend previous researchers’ attempts to empirically test for the Olympic Games as a news shock by implementing full structural models and by matching Olympic hosts and bidders to structurally similar countries.

Maximin: a direct approach to sustainability

2006 ◽  
Vol 11 (3) ◽  
pp. 275-300 ◽  
Author(s):  
ROBERT D. CAIRNS ◽  
NGO VAN LONG
Keyword(s):  
Precautionary Principle ◽  
Direct Approach ◽  
Necessary Condition ◽  
Hyperbolic Discount ◽  
Discount Factors ◽  
Discounted Utility ◽  
Special Cases ◽  
Analytic Expression ◽  
Hotelling's Rule ◽  
Competitive Economy

We solve directly a general maximin (sustainment, intergenerational-equity) problem. Because the shadow values of a maximin problem do not correspond to the shadow values from a general discounted-utility solution, they correspond to the prices of only a very special competitive economy. Virtual discount factors for the economy arise. They do not correspond to hyperbolic discount factors. Hartwick's rule is derived and generalized naturally to take into account non-autonomous and non-deterministic features of the economy. Under uncertainty, Hartwick's rule is the analytic expression of a form of precautionary principle. Hotelling's rule is a necessary condition, but may be more complex than has been appreciated in simple models. Some interpretations of strong sustainment are special cases of weak sustainment but, paradoxically, may be more difficult to solve.

Exploring scalar quantum walks on Cayley graphs

2008 ◽  
Vol 8 (1&2) ◽  
pp. 68-81
Author(s):  
O.L. Acevedo ◽  
J. Roland ◽  
N.J. Cerf
Keyword(s):  
Evolution Operator ◽  
Cayley Graphs ◽  
Quantum Walk ◽  
Quantum Walks ◽  
Constructive Method ◽  
Quantum Evolution ◽  
Necessary Condition ◽  
Internal Space ◽  
Special Cases ◽  
Scalar Quantum

A quantum walk, \emph{i.e.}, the quantum evolution of a particle on a graph, is termed \emph{scalar} if the internal space of the moving particle (often called the coin) has dimension one. Here, we study the existence of scalar quantum walks on Cayley graphs, which are built from the generators of a group. After deriving a necessary condition on these generators for the existence of a scalar quantum walk, we present a general method to express the evolution operator of the walk, assuming homogeneity of the evolution. We use this necessary condition and the subsequent constructive method to investigate the existence of scalar quantum walks on Cayley graphs of groups presented with two or three generators. In this restricted framework, we classify all groups -- in terms of relations between their generators -- that admit scalar quantum walks, and we also derive the form of the most general evolution operator. Finally, we point out some interesting special cases, and extend our study to a few examples of Cayley graphs built with more than three generators.

Reference Price and Its Asymmetric Effects on Price Evaluations: The Moderating Role of Gender

2017 ◽  
Vol 59 (2) ◽  
pp. 189-194 ◽  
Author(s):  
Choongbeom Choi ◽  
Sung Jun Joe ◽  
Anna S. Mattila
Keyword(s):  
Reference Price ◽  
Internal Reference ◽  
External Reference ◽  
Internal Reference Price ◽  
Scant Attention ◽  
Managerial Implications ◽  
Prior Literature ◽  
External Reference Price ◽  
Promotional Strategies ◽  
The Impact

Empirical research shows that customers form price evaluations by comparing the actual price with a reference price. The relative use of an internal reference price (IRP) versus an external reference price (ERP) is an important issue in the lodging industry due to the popularity of price-comparison–based advertising. Although prior literature shows that demographic factors influence the relative use of IRP and ERP, the impact of gender on the relationship between reference prices and price evaluations has received scant attention in both hospitality and marketing contexts. Drawing on the agency-communal theory, the current research examines the effect of gender on the use of IRP and ERP in price evaluations. The findings indicate that males are more susceptible to IRP than to ERP, whereas females are only influenced by ERP. Relevant managerial implications are drawn in terms of pricing and promotional strategies.

Effect of different connection modes of electromagnets on the performance of levitation control

2018 ◽  
Vol 232 (8) ◽  
pp. 2111-2125 ◽  
Author(s):  
Zhang Min ◽  
Gao Chang ◽  
MA Weihua
Keyword(s):  
Vertical Direction ◽  
Vertical Motion ◽  
Vertical Displacement ◽  
Control Mode ◽  
Adjustment Process ◽  
Dynamic Adjustment ◽  
Series Connection ◽  
Relative Safety ◽  
The Mean ◽  
Mean Current

In medium- and low-speed maglev vehicles, each levitation module contains four electromagnetic coils. In order to find a better coil control mode, the difference between the series connection in the control mode of the first and third coils (M1,3) and the series connection in the control mode of the first and second coils (M1,2) was analysed in this paper. By applying a malposition excitation of +2 mm in the vertical direction of the track for comparing the dynamic adjustment processes of the levitation module (including the vertical motion and rotation) in the two control modes, according to the current fluctuation in the coils in the above processes, the extreme position parameters and the mean current values during the adjustment were obtained. The adjustment process was analysed based on the instantaneous levitation force and the torque of the plate at the extreme positions in different control modes; the performance of the levitation module in the adjustment process and during the fluctuation of the coil current was analysed. The results indicate that for the dangerous ends at the two extreme positions in the selected working condition, the vertical displacement in M1,3 reduces by 11.11 and 48.98%, respectively, compared with that in M1,2. In the whole adjustment process, the mean current of the front and rear controllers in M1,3 reduces by 0.25 and 0.36 A, respectively. Therefore, it has been concluded that with regard to the relative safety and coil heating during vibration of the levitation module, M1,3 performs better than M1,2.

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