Modelling Pricing Behavior with Weak A‐Priori Information: Exploratory Approach

The joint estimation of bank-level market power and efficiency

Small and medium-sized enterprises (SMEs) are fighting for survival due to globalization, growing competition with big retailers, and strategies adopted by large industrial companies. Difficulties in pricing are also revealed in the literature. Therefore, appropriate activity is needed to be more a price maker than a taker, and to reach a better market power. On the other hand, market opportunities for SMEs are related to demand evolution toward food quality and traditional food products. To profit by such opportunities, SMEs need to focus on consumer requirements, by differentiating their products. In this way, firms could apply a premium price that justifies the peculiar value of the product, and that the consumer should be willing to pay. Nonetheless, the ability to influence the price is different among firms, and often depends on firm bargaining power. Indeed, horizontal and vertical competition highly affects the ability of price setting, especially for SMEs, due to their small dimension. In order to enhance their capability to decide the price, SMEs should focus mostly on marketing, as price setting is a significant component of the marketing mix. This paper aims to evaluate the relationship between marketing capability and price setting ability in traditional food SMEs, to outline the role to have well developed marketing activities. A survey was carried out, through an interactive questionnaire aimed at assessing SME marketing capabilities. The sample was composed by 130 Italian firms producing traditional food products. An ordinal regression model explained the relationship between the ability of firms to influence the price and the marketing capability. The analysis showed a good capability to affect the price setting for the Italian traditional SMEs. Moreover, we found that good marketing capabilities enhance the ability to be price maker, especially in relation to product differentiation and market research.

Behavioral finance is a new issue raised by some financial intellectuals over the past two decades and has been quickly addressed by professors, experts, and students throughout the world. Investigating the factors affecting investment decisions is carried out in the field of behavioral finance; in other words, the focus of behavioral finance is on the specific charac-teristics of human behavior and applying them in asset pricing. Empirically, pricing models rarely include psychological factors, but the noticeable point is that nowadays, researchers have found behavioral factors influencing empirical asset pricing models that can manipulate returns on asset mispricing. Behavioral asset pricing is the result of applying behavioral finance theories within traditional asset pricing theories. Thus, despite the existence of many asset pricing models, due to their weaknesses and lack of comprehensiveness, as well as the necessity of reviewing behavioral factors, this study aims to model asset pricing through behavioral models. Using the data from 141 listed firms in Tehran Stock Exchange over the years 2008 to 2017 and multivariate regression, this study is an attempts to model asset pric-ing through employing behavioral models and Fama-French approach. Using Fama-French approach, the results showed that accounting information risk, investors’ trading behavior, and investors' sentiment have a direct and significant impact on asset pricing.

Abstract: The aim of this paper is to identify the pricing factor structure of Italian equity returns. The Italian Stock Market is characterized mainly by small quoted firms. Small stocks have higher beta but beta differences are not enough to explain returns differences. We investigate how these differences can be explained by other factors like size, value and momentum. A two step empirical analysis is provided where first we estimate an unrestricted multi-factor model to test if there is any evidence of mispecification. Secondly, we estimate the restricted model, with pricing errors equal to zero, through the Generalized Methods of Moments (GMM). In accordance with the main literature (see e.g. Fama and French 1992, 1993) we find that the size premium for stocks is confirmed for a domestic Italian investor. On the contrary the value premium is statistically weakly different from zero. Finally, augmenting the model with a momentum factor does not improve its performance.

ABSTRACT: This study aims to determine the effect of taste, price, and promotion of the purchase decision consumers in select Arabica coffee of Wamena in Papua, Indonesia, and to know which factor is dominant. By using an associative quantitative research method, namely research that explains causal relationships, t he result study showed a significant effect on the taste, price, and promotion to decision of purchasing and taste dominant factor that has the greatest influence on purchase decisions in choosing the Arabica coffee of Wamena. Good taste and quality improvement to maintain Arabica coffee flavor will attract the interest of consumers in the decision to buy coffee of Arabica in Wamena. The price of Arabica coffee, which formed for a commodity, is the result of interaction between sellers and buyers. Prices is strongly influenced by the quantity of goods being transacted. Many factors can influence the behavior of the interaction of supply and demand in price formation. Performers processing business Arabica coffee of Wamena should always pay attention to the pricing, whether the price has been determined that in accordance with the products offered, expected the manager to fix prices always follow the price competition occurs, so that the price set can be affordable by the purchasing power of consumers who are target market. Promotion of the factors, that most small influence on purchasing decisions, should businesses conduct sales promotion using more effective media that is by delivering products that are promoted delivered directly to consumers through electronic media. KEY WORDS : Taste; Price; Promotion; Purchase Decision; Arabica Coffee of Wamena. About the Authors: Tiomy Butsianto Adi and Rema Meriana are the Lecturers at the STISIP ( Sekolah Tinggi Ilmu Sosial dan Ilmu Politik or College of Social and Political Sciences) Amal Ilmiah YAPIS ( Yayasan Pendidikan Islam or Islamic Education Foundation) in Wamena, Papua, Indonesia. For academic interests, the Authors are able to be contacted via e-mail address at: tiomybig@gmail.com Suggested Citation: Adi, Tiomy Butsianto & Rema Meriana. (2019). “Analysis of Factors that Affect the Purchase Decision of Wamena Arabica Coffee” in HONAI: International Journal for Educational, Social, Political & Cultural Studies , Volume 2(1), May, pp.59-70. Bandung, Indonesia: Minda Masagi Press owned by ASPENSI and STISIP Amal Ilmiah, Wamena, Papua, with ISSN 2621-1653 (print) and ISSN 2621-3621 (online). Article Timeline: Accepted (February 5, 2019); Revised (March 24, 2019); and Published (May 30, 2019).

We propose an original method to estimate the market price of risk under stress, which is needed to correct for risk aversion the CDS-implied probabilities of distress. The method is based, for simplicity, on a one-factor asset pricing model. The market price of risk under stress (the expectation of the market price of risk, conditional on it exceeding a certain threshold) is computed from the price of risk (which is the variance of the market price of risk) and the discount factor (which is the inverse of the expected market price of risk). The threshold is endogenously determined so that the probability of the price of risk exceeding it is also the probability of distress of the asset. The price of risk can be estimated via different methods, for instance derived from the VIX or from the factors in a Fama-MacBeth regression.

This Study uses an analysis factor that aim to find out the main factors that influence the public interest to become the driver of PT. GO-JEK Indonesia. The results of analysis using SPSS 20 has provided evidence that the variables Sharing 1 Revenue 2 Revenue 4 , Surge Pricing 2 , Surge Pricing 3 , Surge Pricing 4 , and Accessibility 4 are variables that are important to gain attention in influencing the public interest to be GO - JEK driver . Meanwhile , the variables : Income 1 Income 3 Accessibility 1 Accessibility 2 Accessibility 3 , For Outcome 2 , Share Results 3 Sharing 4 , and Surge Pricing 1 ie variables that are not included in the explanatory factor main act as auxiliary factor for major factor. Keywords: PT. GO-JEK Indonesia, Transportation, Service, Application, Public Interest, Driver, Factor

This thesis seeks to contribute to the understanding and measurement of the aggregate macroeconomic risks that drive security prices, via three empirical studies. Following Abreu and Brunnermeier (2002), Chapter 2 examines a wide cross-section of global equity markets to test the hypothesis that not only do deviations from fundamentals occur, but it is optimal for an arbitrageur to delay trades that would correct the mispricing. The evidence supports the hypothesis that market prices can and do experience sustained deviations from fundamentals despite the presence of arbitrageurs. Chapter 3 examines the tangled evidence that relates firm-level financial distress to the market, size and value factors of Fama and French (1996). Using panel data it is then shown that exposure to the Fama-French factors can be linked to distress risk, which demonstrates a link between priced aggregate macroeconomic risks and the financial performance of individual firms. Frazzini & Pedersen (2013)’s Betting-Against-Beta (BAB) factor is theorized to occur due to the leverage constraints of a subset of the population of investors. Chapter 4 demonstrates that in the post-1990 subsample the premium on the BAB factor is significantly diminished. Furthermore a conditional model using Carhart (1997)’s 4-factors reduces the alpha further, suggesting that part of the anomaly is in fact attributable to conditional exposure to existing factors, rather than market frictions.

Partial central subspace and sliced average variance estimation

Sliced inverse regression (SIR), which includes linear discriminant analysis (LDA) as a special case, is a popular and powerful dimension reduction tool. In this article, we extend SIR to address the challenges of decentralized data, prioritizing privacy and communication efficiency. Our approach, termed as federated sliced inverse regression (FSIR), facilitates distributed computing of the sufficient dimension reduction subspace among multiple clients, solely sharing local estimates to protect sensitive datasets from exposure. To guard against potential adversary attacks, FSIR employs diverse perturbation strategies, including a novel vectorized Gaussian mechanism that guarantees ( ε , δ ) -differential privacy at a low cost of statistical accuracy. Additionally, FSIR achieves a tight composition of various privacy mechanisms by adopting a hypothesis testing perspective on differential privacy. It also incorporates a collaborative feature screening procedure, enabling effective handling of high-dimensional client data with varying feature sets. Theoretical properties of FSIR are established for both low-dimensional and high-dimensional settings, supported by extensive numerical experiments and real data analysis. Supplementary materials for this article are available online, including a standardized description of the materials available for reproducing the work.

This research was done at PT. Barata Indonesia (Persero) UUM Medan. This research aims to prove emprically the influence of the variables cash turnover, receivable turnover, days of receivanle, fixed asset turnover and total assets turnover to the profitability of the company. Technical data analysis using non parametric statistics with hypothesis testing using Spearman and Kendall correlation. The results of this research show that the variables cash turnover, receivable turnover, days of receivable, fixed asset turnover and total assets turnover effect was not significant the profitability at PT. Barata Indonesia (Persero) UUM Medan 2005- 2013. Other factors which influence significantly to profitability (gross profit margin) which are the other variables outside of the variables are used in this research are the amount and the sale price per unit, cost of goods sold, liquidity and labor productivity.

After deregulation in electricity markets, lots of studies were conducted especially in designing new systems and energy pricing in order to improve efficiency of power systems and increase investors’ profit. Investment’s profit could be increased by better contracts and better price bidding for buying and selling energy in electricity market, as a consequence price forecasting is essential. The main objective of this paper is to predict the price of electricity in Iran’s electricity market by using a combination of fuzzy-neural network and particle swarm optimization (PSO). In this paper, past prices, past loads, working and nonworking days, day hours and effect of seasons in 2015 have been taken into account as the effective factors in forecasting mechanism. The combined model is more precise than other methods like ARIMA, neural network, neural-fuzzy network, and a combination of fuzzy-neural and genetic algorithm. In the following, the process of price fluctuations has been discussed for increasing effectiveness of bidding. Results of simulation revealed that price forecasting is much more precise with price process mechanism.

As the price is always a prime factor taken into consideration when a 3PL provides logistics service. With increasingly cases of logistics service providing to retailers rather than manufacturers nowadays, quantity may be not as an important factor. For retailers always have certain amounts of goods, they can hardly expand the scale at their will to obtain a quantity discount. To logistics companies, most of them are medium-sized and small enterprises, under limitations of its fields and capability. They can neither provide enough warehousing area for retailers. This paper builds the price decision model in expectation of utility obtaining by service contract instead of the whole revenueof pricemultiplying quantity, and would be more suitable for 3PL to apply when working for a retailer. Besides, this paper sets the opponent’s acceptable price as uncertain information, which is more realistic than the usual complete and perfect information assumption. Based on the incomplete information game and introducing variables of service capability and service level, this paper will give the best decision of pricing order and a specific amount in quotingthe price stage. Further discussion will quantify the benefits of pricing first and factors affect the benefits which aremore conducive to the third -party logisticsenterprises to provide services for external companies.

Risk and return are two important things in investing. A good understanding of how risk is predicted to achieve the expected level of return will provide the optimal investment portfolio. In each of the expected return of an investment is always risky. Determination of risk and return to a central issue in asset pricing theory. The financial and investment experts have developed a model of asset pricing theory (APT) to determine the risk and return in the balance of investment portfolio selection. APT has been a focus of interest in financial and investment studies in the last few decades. APT starts by making the assumption that security returns associated with a number of factors. Factor based models of risk factors that affect expected return securities. The factors that generate these returns either the number or type unknown. Usually represents economic indicators and does not specifically reflect the characteristics of the company. APT as a model must be built on the basis of the assumptions that underlie the workings of the model. A good understanding of the assumptions underlying the Apr model and how the workings of these models will allow us to use these models with good investment decisions. Key words: Return, Risk, Factor Model, Asset pricing Theory (APT)

In more recent years, it has become increasingly recognized that R&D (research and development) is a key driver of economic growth, a source of innovation and change, and as such stimulates improvements in productivity and economic competitiveness. It is closely associated with knowledge and flexibility, two factors that have gained new significance as a source of competitiveness in an increasingly globalized world economy. In this paper the relationship between bilateral trade and R&D differences among selected east and west Asian countries is investigated, specifying a semi-parametric gravity model over 1990-2013. Despite the majority of empirical analysis, we explore the relationship between trade and R&D differences through a nonparametric analysis. The results confirm that there is a nonparametric relationship between bilateral exports and R&D differences for both. The implication is that countries with various levels of R&D activities, namely arising from entrepreneurial activities, can affect widely and substantially international trade flows. JEL Classification: C14, F15, O30