scholarly journals A theoretical analysis of product versioning in the context of commercial piracy

2018 ◽  
Vol 63 (219) ◽  
pp. 115-135 ◽  
Author(s):  
Paulomi Basu ◽  
Tanmoyee Banerjee
Keyword(s):  
Theoretical Analysis ◽  
Government Policy ◽  
Marginal Cost ◽  
Home Group ◽  
Duopoly Model ◽  
Quality Product ◽  
Price Leader ◽  
Commercial Piracy ◽  
Original Information ◽  
Two Equilibria

The study develops a vertically differentiated duopoly model in the presence of commercial piracy with two groups of consumers, a business group and a home group, with the former having higher willingness to pay for the product. A firm producing an original information good sells it with endogenously chosen product quality and acts as a price leader, and the commercial pirate becomes the price follower. There exists a stringent government policy of monitoring commercial piracy, which increases the marginal cost of the pirate. We study and compare the two regimes of no-versioning (selling a single quality product) and product versioning (selling products with different price and quality combinations to different consumer groups). In the versioning regime, depending upon demand and government monitoring parameters, two equilibria are observed. Comparing the original firm?s profit in each of these versioning cases suggests that versioning may or may not be the original firm?s optimal strategy in the presence of commercial piracy. This result is counterintuitive to existing literature on product versioning in the context of enduser piracy.

Large-Scale Bundle-Size Pricing: A Theoretical Analysis

2021 ◽  
Author(s):  
Tarek Abdallah ◽  
Arash Asadpour ◽  
Josh Reed
Keyword(s):  
Theoretical Analysis ◽  
Marginal Cost ◽  
Large Scale ◽  
Theoretical Framework ◽  
Multiproduct Firm ◽  
Bundle Size

Can you sell multiple items by providing only prices for different sizes of bundles rather than the different possible combinations of them? In this paper, we provide a framework for understanding “bundle-size pricing” (or simply, BSP) where only a menu of bundle sizes and their corresponding prices are offered. Although BSP is commonly used across several industries, little is known about the optimal BSP policy in terms of sizes and prices, along with the theoretical properties of its profit. In this paper, we provide a simple and tractable theoretical framework to analyze the large-scale BSP problem where a multiproduct firm is selling a large number of products. We characterize the circumstances under which such policies perform well by studying the effect of various factors such as marginal cost or customers’ budget on the performance of BSP and identify possible causes of its inefficiency.

scholarly journals OPTIMAL TRADE POLICIES UNDER PRODUCT DIFFERENTIATIONS

2020 ◽  
Vol 21 (1) ◽  
pp. 241-254 ◽  
Author(s):  
Yong-cong Yang ◽  
Pu-yan Nie
Keyword(s):  
Marginal Cost ◽  
Foreign Firm ◽  
Transportation Cost ◽  
Domestic Market ◽  
Foreign Firms ◽  
Trade Policies ◽  
Competitive Advantages ◽  
Developed Country ◽  
Duopoly Model ◽  
Optimal Tariff

This article focuses on the optimal international trade policy considered product differentiations. A duopoly model with a home firm in a developing country and a foreign firm in a developed country is established. The findings indicate that, the optimal tariff relies on the product differentiations significantly. On one hand, higher marginal cost of home firms have opposite effects on optimal tariff compared to higher marginal cost of foreign firms. On the other hand, the optimal tariff is monotonically decreasing in the amount of consumers caring about brands and increasing in the scale of consumers not caring about brands. Moreover, an increase in the marginal cost and transportation cost of imported goods triggers price rising in domestic market as the market power of home firms is consolidated. In addition, a foreign firm may withdraw from domestic market if its competitive advantages vanishes under high tariffs.

A VERTICALLY DIFFERENTIATED DUOPOLY WITH MARGINAL COST DIFFERENTIALS

2003 ◽  
Vol 05 (01) ◽  
pp. 73-81 ◽  
Author(s):  
PAMELA M. SCHMITT
Keyword(s):  
Marginal Cost ◽  
Market Quality ◽  
High Quality ◽  
Two Stage ◽  
Marginal Costs ◽  
Duopoly Model ◽  
Stage Game ◽  
The Impact ◽  
Cost Differentials

A vertically differentiated duopoly model analyzes the impact of marginal cost differentials on price and quality. Firms play a two-stage game, first simultaneously choosing quality and then simultaneously choosing price. When the firm producing the high quality good faces an increase in its marginal cost, both firms increase price and upgrade quality. When the firm producing the low quality good faces an increase in its marginal cost, both firms decrease price and downgrade quality. When a first firm enters the market, quality position decisions are examined under the assumption that both the firm-specific and the quality-specific marginal costs are higher when a firm produces a higher quality good. The results show that the first entrant produces the low quality good and earns higher profits.

Reforma energética en México: los subsidios eléctricos y su impacto en las finanzas públicas

Oikos ◽  
2016 ◽  
Vol 19 (40) ◽  
pp. 151
Author(s):  
Gilberto Márquez De la Cruz ◽  
Maria Antonieta Andrade Vallejo ◽  
María Del Pilar Peña Cruz
Keyword(s):  
Theoretical Analysis ◽  
Income Distribution ◽  
Marginal Cost ◽  
Negative Impact ◽  
Price Policy ◽  
Financial Viability ◽  
Pricing Policy ◽  
Public Finances ◽  
Electricity Rates

RESUMEN Este artículo describe brevemente la política de subsidios vía tarifas eléctricas que ha sido implementada en México en el periodo 2000-2014, así como el impacto negativo que ha tenido en las finanzas públicas. Asimismo sugiere mediante un análisis teórico la aplicación de una Política de Precios basada en Costos Marginales de Largo Plazo considerando criterios de equidad y distribución del ingreso que lleven a una situación de viabilidad financiera a la empresa suministradora de energía eléctrica del país.Palabras clave: tarifas eléctricas, subsidios, finanzas públicas, política de precios, costos marginales de largo plazo.Energy reform in Mexico: the electrical subsidies and their impact on public finances ABSTRACT This article briefly describes the policy of subsidies through electricity rates has been implemented in Mexico in the period 2000-2014, and the negative impact it has had on public finances. It also suggests a theoretical analysis by the application of a pricing policy based on Long Term Marginal Cost considering criteria of equity and income distribution leading to a situation of financial viability to the company supplying electricity in the country.Keywords: electricity rates, subsidies, public finances, price policy, long-term marginal costs.Reforma energética no México: os subsídios elétricos e seu impacto nas finanças públicas RESUMO Este artigo descreve brevemente a política de subsídios através de tarifas elétricas que tem sido realizada no México no período 2000-2014, bem como o impacto negativo que teve sobre as finanças públicas. Também sugere uma análise teórica com a aplicação de uma Política de Preços baseado em Custos Marginais de Longo Prazo, considerando critérios de equidade e de distribuição de renda que levam a uma situação de viabilidade financeira a empresa fornecedora de energia elétrica do país.Palavras-chave: tarifas elétricas, subsídios, finanças públicas, política de preços, custos marginais de longo prazo.

Microdiffraction Patterns of Small Metallic Particles II; Theoretical Analysis

1982 ◽  
Vol 40 ◽  
pp. 668-669
Author(s):  
A. Gómez ◽  
P. Schabes-Retchkiman ◽  
M. José-Yacamán ◽  
T. Ocaña
Keyword(s):  
Experimental Data ◽  
Electron Diffraction ◽  
Theoretical Analysis ◽  
Size Range ◽  
Dynamical Theory ◽  
Metallic Particles ◽  
Splitting Effect

The splitting effect that is observed in microdiffraction pat-terns of small metallic particles in the size range 50-500 Å can be understood using the dynamical theory of electron diffraction for the case of a crystal containing a finite wedge. For the experimental data we refer to part I of this work in these proceedings.

Theoretical analysis of a monopole antenna with conducting flat disk above the earth

2001 ◽  
Vol 84 (7) ◽  
pp. 27-36
Author(s):  
Aki Yuasa ◽  
Daisuke Itatsu ◽  
Naoki Inagaki ◽  
Nobuyoshi Kikuma
Keyword(s):  
Theoretical Analysis ◽  
Monopole Antenna ◽  
The Earth ◽  
Flat Disk

Context Aversion, Pavlovian Conditioning, and the Psychological Side Effects of Chemotherapy

1997 ◽  
Vol 2 (2) ◽  
pp. 118-124
Author(s):  
Geoffrey Hall
Keyword(s):  
Animal Model ◽  
Side Effects ◽  
Theoretical Analysis ◽  
Conditioned Response ◽  
Behavioral Strategies ◽  
Contextual Cues ◽  
Anticipatory Nausea ◽  
Laboratory Rats ◽  
Anticipatory Nausea And Vomiting ◽  
Parallel Case

Patients who have undergone several sessions of chemotherapy for cancer will sometimes develop anticipatory nausea and vomiting (ANV), these unpleasant side effects occurring as the patients return to the clinic for a further session of treatment. Pavlov's analysis of learning allows that previously neutral cues, such as those that characterize a given place or context, can become associated with events that occur in that context. ANV could thus constitute an example of a conditioned response elicited by the contextual cues of the clinic. In order to investigate this proposal we have begun an experimental analysis of a parallel case in which laboratory rats are given a nausea-inducing treatment in a novel context. We have developed a robust procedure for assessing the acquisition of context aversion in rats given such training, a procedure that shows promise as a possible animal model of ANV. Theoretical analysis of the conditioning processes involved in the formation of context aversions in animals suggests possible behavioral strategies that might be used in the alleviation of ANV, and we report a preliminary experimental test of one of these.

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