Acquisition Price Research Articles

Change in the Affordability of Owner-Occupied Housing in the Context of Rising Energy Prices

Household energy constitutes an important share of affordable housing. Unaffordable housing and inadequate household energy represent a new dimension of poverty. Connections between energy, housing affordability and well-being are still under-researched. Building on housing affordability framework, this study explores the magnitude in changes in affordability of acquisition and use of an apartment between January 2018 and January 2022. Over the last four years, the real estate market in Europe has changed significantly. This paper deals with primary data for the Czech Republic, where acquisition prices of residential real estate increased depending on the region in the range of 50 to 120%. Since January 2022, there has been a sharp rise in energy prices and a tightening of conditions for the acquisition of mortgage loans. All these factors affect the standard of living in the Czech Republic. The article quantifies the magnitude of this change by calculating shares of total housing costs to total average net household income for the period January 2018 and January 2022. It is found that the affordability of owner-occupied housing in the Czech Republic has deteriorated and part of the middle class will be forced to move to the rental housing sector, multifamily housing and sharing. Finally, we argue that energy poverty needs to be considered in addressing the government housing policies. The aim of the article is to analyze the changes that have taken place in the real estate market over the last four years in relation to the growth of total housing costs and energy costs associated with housing.

Information Salience and Mispricing in Housing

Making the purchase price fully salient to consumers has been shown to affect demand and equilibrium prices in various markets. Using a setting where part of the home acquisition price is in the form of nonsalient debt, we show this can happen in housing—a market where a typical household makes its largest acquisition. A regulation that made the debt and the total price salient for homebuyers eliminated a large mispricing caused by consumers’ inattention to the debt before the regulation. An average homebuyer would lose about $13,300 by acquiring a dwelling with one-standard deviation ($51,000)-higher debt, but this is nearly eliminated after the regulation. To shed light on the underlying channels, we use administrative data and show that young, financially inexperienced, and first-time homebuyers used to overpay the most. The results are not driven by rational channels based on liquidity constraints and adverse selection. Our findings imply that making all-inclusive house price and mortgage features salient at the time of advertising the sale can help avoid unintentional borrowing. This paper was accepted by David Simchi-Levi, finance. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2021.4253 .

A machine learning approach to find the determinants of Peruvian cocaine local price

The coca leaf has many uses in the Peruvian culture. Although there are legal usages, people employ coca for illicit business. The most infamous illegal use is cocaine production. The cocaine business is highly profitable, but it harms human health. Then, what are the determinants of cocaine price? The current analysis aims to get the variables with the capability to explain the cocaine prices in Peru. The period analyzed is 2003-2019. The study gathered variables from DEVIDA and UNDOC databases. The Lasso technique selected the variables with the best capability to predict cocaine price. Those variables were: ENACO acquisition, coca seizures, and coca crops. OLS, VAR, and Granger analyses employed those variables to analyze the relationship between them. According to the OLS analysis, both ENACO acquisition and coca crops had adverse effects on cocaine prices, while coca seizures were positively related to the cocaine price. VAR analysis showed that only ENACO acquisition had a short-term relationship with the dependent variable. Moreover, it showed that the whole set of variables influenced the dependent variable. The Granger analysis proved that there was a cause-effect relationship between ENACO acquisition and cocaine price. Hence, the ENACO purchases expansion can rest the attractiveness of illegal groups to farmers. However, lowering cocaine prices might attract more users. Therefore, educational activities are also required.

The impact of self-driving cars on the national transport system: an assessment for Belgium

We study how full automation of the car fleet affects traffic volumes, congestion, and fuel consumption at the country level in Belgium. The central scenario in this paper looks at the combined effect of a lower opportunity cost of travel time, an increase in the acquisition price of cars by 20%, a decrease in insurance costs by 50% and a decrease in fuel consumption per km by 10%. The improvement in fuel efficiency always dominates the increase in acquisition costs, and average monetary costs decrease. Overall car travel increases by 21 up to 26%. Despite the improvement in fuel efficiency, total fuel consumption for diesel and gasoline increases by 5 up to 10%. The impact on the speed of road modes is highly location specific. A sensitivity analysis revealed that there is a threshold improvement in fuel efficiency where the “rebound effect” is nullified. To counteract the effects of full automation on total demand for car travel, a road charge close to 20 EUR cent per km would be needed.

The effect of supply channel structures on remanufacturing, pricing, and acquisition management

This paper developed an acquisition management problem in a Closed-Loop Supply chain (CLSC) network. This study determines optimal selling prices of brand-new and remanufactured products, wholesale prices, and acquisition prices in various distribution and collection channel structures. It shows that determining the best structure is highly affected by the model’s parameters, as well as the decision-makers’ objectives. Moreover, precious managerial insights from five different viewpoints have been provided for decision-makers in order to benefit considerably from various situations of remanufacturing and acquisition activities, as well as manufacturing and distribution activities. Simulation approach is employed for analyzing the proposed solutions in different conditions.

Cost-benefit Analysis of Point-of-care Dental Implant Guides

Guided dental implant surgery is becoming more common and has been shown to have higher accuracy than freehand implant placement. Many surgeons outsource the fabrication of implant guides, even as the tools needed to produce a guide in-house become more ubiquitous and less expensive. The authors' institution prints the majority of its implant guides in-house. Currently, there are very few studies that evaluate the economics of point-of-care 3D printing and dental implants. This study aimed to perform a cost-benefit analysis of point-of-care dental implant guides. A retrospective review of guides made in-house at the University of Louisville Oral and Maxillofacial Surgery Department from July 2020 through July 2021 was conducted. A cost-benefit analysis was performed with the costs defined as the annualized price of acquisition for a 3D printing system, materials, and annual maintenance. This was then divided by the number of annual guides printed to obtain a cost per part. The benefit was defined as the price per outsourced guide minus the price per guide when printed in-house. This benefit per guide was then multiplied by the number of guides printed annually to calculate annual cost-savings. A total of 79 implant guides were printed in-house from July 2020 through July 2021. Total annual costs including the printing system, materials, and maintenance were $13,790. The majority of these costs were associated with the startup cost of the 3D printing system digital scanner, and implant planning software. The annual cost per part of in-house guides was $175. Outsourced guides in Louisville are $350. Subtracting the cost of the in-house guide from the dental lab guides gave a per-guide benefit of $175. The annual benefit of cost-savings for the program was $13,825. In conclusion, this cost-benefit analysis showed that cost reduction with point-of-care implant guides is substantial. This amount could easily be increased as more guides are produced. Not only are in-house guides more affordable, but they also have a faster turnaround time and are just as accurate as surgical guides commercially produced in a lab. As 3D printing and CAD-CAM technologies become more ubiquitous and affordable, more multi-surgeon practices with large implant volumes will likely produce their guides in-house. To maximize efficiency, these offices could train an employee to handle all aspects of 3D printing and processing. Point-of-care dental implant guides are becoming an increasing reality and offer significant cost-savings potential for practices with high implant volumes that outsource their guide fabrication.

Design and operation of feeder systems in the era of automated and electric buses

• Impact of vehicle automation and electrification on the feeder transit design. • Two operating strategies, fixed routes versus door-to-door trips, are compared. • Variations of the cost structure of the service define different scenarios of study. • Automation presents the main impact on the applicability of door-to-door trips. • Significant impacts require mature technologies, small areas and high values of time. This paper evaluates the impact of vehicle automation and electrification on the applicability of fixed routes and door-to-door services to supply a feeder transit solution in suburban areas. These technologies will modify the current cost structure of the bus system depending on how mature they are, reducing operating costs and increasing capital costs. By means of a continuum approximation model, we evaluate the performance for users and agency of the two feeder strategies in different scenarios of technological development. The results show that automation has the main impact on the applicability between the two feeder alternatives while the effects of electrification are considerably smaller. The future applicability of door-to-door trips reaches wider ranges, although this change is especially significant under some circumstances of technology, service area and users. The expansion of this range is relevant in case the automated bus is mature enough (high reduction of operating cost and low vehicle acquisition price), the areas are small, the trips are short and the value of time is high. However, the results reveal that fixed routes will remain a competitive feeder solution in a wide range of scenarios. We identify that the demand density threshold grows sharply in front of any reduction of agency costs once its value is around 200–300 pax/km 2 -h. Therefore, flexible services will gain applicability especially in environments that allow reaching this threshold.

VALUASI NILAI SAHAM PERUSAHAAN NON-TBK DALAM PELAKSANAAN IMPAIRMENT GOODWILL

This study aims to analyze the causes of the emergence of goodwill in the acquisition of company shares, analyze how the stages in performing goodwill impairment on the parent company, and analyze how to evaluate the shares of non-listed companies and their effect on goodwill impairment. This study focuses on a case study on PT Tebu as the object of acquisition by testing goodwill using the income approach and the Discounted Cashflow method. Based on the case study, it is concluded that goodwill in an acquisition arises due to the difference between the excess of fair value and book value over the acquisition price of shares, and it is also known that the stages in implementing impairment goodwill are by comparing Goodwill per Book with Goodwill based on fair value (test results) currently on the books of the Parent Company.

Strategic Nondisclosure in Takeovers

ABSTRACTWe examine takeover auctions when an informed bidder has better information about the target value than a rival and target shareholders. The informed bidder's information is either hard or soft, and only hard information can be credibly disclosed. We show that withholding information creates a winner's curse, thereby serving as a preemption device that deters the rival's participation. In turn, an endogenous disclosure cost arises that induces the informed bidder to optimally withhold favorable information to minimize the acquisition price—breaking down the standard unraveling result, even if his information is always hard. Perhaps surprisingly, stronger competition from the uninformed bidder can reduce the target shareholders' payoff and increase the payoff of the informed bidder while unambiguously improving social welfare. Moreover, “hardened” information can reduce the gains to trade, decreasing welfare, but increasing shareholders' payoff. Our results provide a cautionary note to promoting more competition and more disclosure.JEL Classifications: D44; D82; G34; M41.

Coordinating a closed-loop green supply chain for remanufactured product under competition

The success of any remanufacturing system depends on proper supply of used product. In the real-world, many remanufacturers are unable to collect it directly from customers. This article considers a closed-loop green supply chain consisting of a single remanufacturer, two competing retailers and collectors for dealing with used and remanufactured products. Considering the effect of acquisition price and greening level on collection quantity of used product, and the effect of selling price and greening level on the demand, closed-form solutions are derived for a centralized model and two decentralized models depending on collectors' cooperation and competition. Optimal results of the decentralized models are compared to find the best decentralized policy. Moreover, a novel multi-link two-part tariff contract among the channel members is proposed to resolve the channel coordination issue. The numerical analysis indicates that (i) cooperation between the collectors is only beneficial for themselves while competition between them is favorable from the viewpoint of the whole supply chain; (ii) utilization ratio has a noteworthy effect on the performance of the supply chain; (iii) the proposed contract assists the collectors with getting more than double transfer price and the remanufacturer to improve its profit over 21% compared to the decentralized setting.

The Role of Contracts in Venture Capital Returns

During contract negotiations with startups, venture capitalists (VCs) can receive preferred stock with additional cash flow rights to yield a higher return than the common stock return. The common share price is currently used to calculate payoffs to limited partners (LPs), but incorporating contract terms can considerably change the payoff distribution. Realized proceeds to LPs reveal that VCs exercise all available cash flow rights. Such choices are most financially significant when startups have relatively low acquisition prices, which is also the most frequent outcome. Consequently, the current post-money valuation method is an overvaluation of the true price of all outstanding securities. <b>Key Findings</b> ▪ After constructing a novel dataset of realized proceeds to LPs, the author found that VCs exercise all the preferred stock cash flow rights available to them in their contracts. ▪ VCs invest relatively the same amount of money into startups that become failures, small acquisitions, large acquisitions, or IPOs. Because they are not able to accurately predict a startup’s exit outcome, the cash flow rights accumulate into a significant amount for a fund. ▪ The post-money valuation calculation assumes common stock, and it is an overvaluation of the startup’s true value that considers all outstanding securities.

Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain

The rapid development of information technologies enables recycling companies to purchase and collect used products from consumers through both traditional and Internet-based online channels. Because an online channel transmits price information instantly to consumers, choosing the best time to announce the recycling price (i.e., acquisition price) of used products to consumers has become a critical problem for recycling companies. This paper seeks to solve this problem by developing a game-theoretic model describing a dual-channel reverse supply chain consisting of a recycling company and a third-party collector in which the recycling company purchases products not only through a third-party collector, but also directly from consumers online. We derive two major results by solving the model. The first is that first-mover advantage arises, which indicates that each firm constituting a dual-channel reverse supply chain should announce its own recycling price before the other. This first result is notable because it is exactly opposite to conventional wisdom that the second-mover advantage of pricing usually emerges when price competition occurs among firms in a horizontal relationship, which is well known in noncooperative game theory. The second result is that the recycling company can maximize its own profit and consumers' surplus by announcing its recycling price in the online channel before or upon, but not after, determining the transfer price paid to the collector for products collected in the offline channel. Both results can be used as practical decision-making guidelines in dual-recycling channel reverse supply chain management.

METODE PENGAKUAN KEUNTUNGAN PEMBIAYAAN MURABAHAH DI LEMBAGA KEUANGAN SYARIAH (Analisis Fatwa No: 84/DSN-MUI/XII/2012)

Murabahah financing is a transaction for the sale of goods by stating the acquisition price and profit (margin) agreed by the seller and buyer. As for the implementation, murabaha financing uses the profit recognition method which refers to Fatwa No.84 / DSN-MUI / XII / 2012 and PSAK No. 102 about Murabaha. Based on the author's search results, there are two methods applied by Islamic Banking and Islamic Financial Institutions namely, the Proportional method and the Annuity method. The workings of these two methods can be seen from the process which includes, the Proportional method tends to refer to PSAK No. 10. While the Annuity method tends to refer to the DSN-MUI fatwa. Keywords: Murabahah, Method and Fatwa.

Improving the monitoring of chronic heart failure in Argentina: is the implantable pulmonary artery pressure with CardioMEMS Heart Failure System cost-effective?

BackgroundThe CardioMEMS® sensor is a wireless pulmonary artery pressure device used for monitoring symptomatic heart failure (HF). The use of CardioMEMS was associated with a reduction of hospitalizations of HF patients, but the acquisition cost could be high in low-and-middle income countries. Evidence of cost-effectiveness is needed to help decision-makers to allocate resources according to “value for money”. This study is aimed at estimating the cost-effectiveness of CardioMEMS used in HF patients from the third-party payer perspective -Social Security (SS) and Private Sector (PS)- in Argentina.MethodsA Markov model was developed to estimate the cost-effectiveness of CardioMEMS versus usual medical care over a lifetime horizon. The model was applied to a hypothetical population of patients with HF functional class III with at least one hospitalization in the previous 12 months. The main outcome was the incremental cost-effectiveness ratio (ICER). To populate the model we retrieved clinical, epidemiological and utility parameters from the literature, whilst direct medical costs were estimated through a micro-costing approach (exchange rate USD 1 = ARS 76.95). Uncertainties in all parameters were assessed by deterministic, probabilistic and scenario sensitivity analysis.ResultsCompared with the usual medical care, CardioMEMS increased quality-adjusted life years (QALY) by 0.37 and increased costs per patient by ARS 1,081,703 for SS and ARS 919,051 for PS. The resultant ICER was ARS 2,937,756 per QALY and ARS 2,496,015 per QALY for SS and PS, respectively. ICER was most sensitive to the hazard ratio of HF hospital admission and the acquisition price of CardioMEMS. The probability that CardioMEMS is cost-effective at one (ARS 700,473), three (ARS 2,101,419,) and five (ARS 3,502,363) Gross Domestic Product per capita is 0.6, 17.9 and 64.1% for SS and 5.4, 33.3 and 73.2% for PS.ConclusionsCardioMEMS was more effective and more costly than usual care in class III HF patients. Since in Argentina there is no current explicit threshold, the final decision to determine its cost-effectiveness will depend on the willingness-to-pay for QALYs in each health subsector.

Information acquisition and asset price volatility

I provide a channel by which information cost affects asset price volatility. Asset payoffs depend on two exogenous states, an unknown state about which buyers obtain costly information and a known state at the time of trading. Whereas the price of an asset with a higher information cost shows less sensitivity in response to changes in an unknown state, the asset price exhibits excess volatility in response to a known shock. This can explain how a small liquidty shock causes large fluctuations in asset markets.

KONSEP MURABAHAH DALAM DIKTUM FILSAFAT EKONOMI ISLAM

This article explores the concept of murabaha, in the dictum of Islamic economic philosophy. Murabahah is a form of sale and purchase in which the seller offers his merchandise by stating the price which is the sum of the acquisition price by adding a certain amount as profit. The focus of the discussion here is how a transaction is said to be murabaha? How are the instructions of the Qur'an and hadith regarding murabaha? How is the dictum of Islamic economic philosophy against murabaha? The research method used is literature, and other related references. This article provides a final review that the concept of murabahah by implementing it based on tauhid, justice and maslahah because obeying the instructions of the Qur'an and hadith is an obligation for every Muslim convert. It would be better if someone understands trading as an art as well as worship and kindness, so that it becomes motivation and passion for the perpetrators.

Redevelopment Strategies and Building Ages

An improved real option pricing model that incorporates the depreciation effect for two-stage redevelopment projects will be demonstrated to estimate the redevelopment project values in a wide range of scenarios. Based on a stochastic differential equation, numerical analyses will focus on new factors that influence the expected exercise time, that is, depreciation rate, the annual increase in average building age, building age of the targeted property, and the average building ages in the same region. The depreciation rate is the most influential factor in this model. More importantly, this study will summarize three exercise strategies that cover all combination of the parameters. In some cases, with a low capital return rate, or high depreciation rate, or both, the traditional simultaneous exercise strategy based on the optimal demolition price-to-cost ratio is not feasible. Instead, either a sequential exercise or simultaneous exercise that is based on the optimal rebuilding price-to-cost ratio is the best choice. Detailed procedures on how to adopt the best strategy will be demonstrated. The acquisition price of the old property proved to be sensitive to the depreciation rate and the capital return rate within a certain range. To apply this model properly, the feasible time interval for the traditional simultaneous exercise strategy and the depreciation rate should be estimated accurately.

LITERASI KEUANGAN BAGI PENGURUS KOPERASI AMBOY BANTUL

This activity was conducted at amboy bantul cooperative consisting of producers and sellers of various processed foods, especially foods made from bananas. The type of business conducted by this cooperative is a business to save loans. This cooperative is a MicroFinance Institution (LKM)Based on the observations, some of amboy bantul cooperative managers are not yet understanding financial literacy. Literacy is an individual's ability and skills in reading, writing, calculating, solving problems, processing data, conveying information and understanding information related to daily life. Initially, the board of AMBOY Bantul Cooperative did not yet understand the meaning of depreciation or depreciation of fixed assets that should be presented in the financial statements.Therefore, this activity is intended to improve the ability of AMBOY Bantul cooperative management in understanding how to prepare the correct financial statements, especially in recognizing the burden of depreciation and accumulated depreciation of fixed assets by providing counseling and training. After the management of this cooperative participated in counseling and training, finally AMBOY Bantul cooperative managers can understand how to calculate the burden of depreciation, accumulated depreciation and presentation in financial statement.They understand that depreciation expense accounts (all cooperative fixed assets) are presented on the Remaining Business Results Report as a reduction in service income accounts. They also understand that accumulated depreciation accounts reduce the acquisition price of each fixed asset presented on the balance sheet. Some administrators of AMBOY Bantul Cooperative can finally compile cooperative financial statements in accordance with Financial Accounting Standards for Entities Without Public Accountability (ETAP)

Joint Dynamic Pricing with Acquisition and Selling Opportunities

We analyze a novel dynamic pricing problem, where not only the demand depends on the dynamic selling price, but also the supply can be influenced through the dynamic acquisition price. This paper is motivated by firms that acquire and resell pre-owned items, such as cell phones. A firm with fixed inventory is always under pressure to sell the remaining inventory, yet when acquisition opportunities arise, the firm may become under pressure to acquire inventory in anticipation of a surge in demand. We establish conditions under which the firm will find itself under pressure to acquire versus pressure to sell. We study how the optimal acquisition and selling prices, and the difference between them (the optimal margin) behaves with respect to time and inventory. In addition, we devise heuristics with fixed prices based on a deterministic approximation, and we evaluate how much the firm gains by using a dynamic acquisition or selling price as opposed to fixing them at the beginning of the horizon.

Integrated biorefinery process for olive pomace valorisation

Due to the great importance of the olive sector in the Mediterranean area, it is necessary to develop an economical and environmentally friendly treatment for the valorisation of olive pomace. In the present study, an integrated valorisation scheme of two-phase olive pomace (TPOP) (main semi-solid by-product produced by two-phase centrifugation oil extraction systems) was assessed, where polyphenols were previously recovered in a high-value liquid extract to facilitate the subsequent continuous anaerobic digestion of dephenolised two-phase olive pomace (DTPOP). The average polyphenol extraction rate in this study was 55%, and the subsequent optimum methane production from DTPOP (416 ± 82 L CH4 kg VS−1 d−1) occurred at an Organic Loading Rate (OLR) of 2.89 ± 0.07 g VS L−1 d−1, and 24 days’ Hydraulic Retention Time (HRT). Although energy production from food industry waste is not a new process, the industrial implementation and application continues to be a challenge. Hence, the present paper also reports on the economic feasibility study of an industrial-scale integrated plant to treat 8000 t TPOP y−1 from a medium-sized olive mill. The economic assessment showed that the combination of polyphenol extraction and the subsequent anaerobic digestion is an attractive treatment option. Net Present Value (NPV) and Internal Return Rate (IRR) were 1,493,234 and 12.8%, respectively, for an extract selling price of €680 t−1 (820 USD t−1). The sensitivity analysis concluded that variations in the selling price of polyphenol extracts and ethanol acquisition are the most significant factors that might influence the global economic viability of the integrated TPOP valorisation plant.