Concept Of Price Research Articles

Pricing in the contemporary electricity market: Theoretical considerations

Subject. This article examines and analyzes the theoretical aspects of the formation of prices for electricity and capacities of power supply companies. Objectives. The article aims to examine fundamental approaches to price formation and consider the systems of intra-company management in the supply and sales sector of the electric power industry in order to identify the areas for developing the pricing concept of energy supply companies. Methods. For the study, we used analysis and synthesis, generalization and comparison, and system reasoning. Results. The article summarizes the classical approaches to pricing and characterizes the theoretical provisions regarding the possibility of their adaptation to the formation of the pricing policy of energy supply companies in present-day conditions. On the basis of streamlining the system of views regarding the formation of pricing policy, the article proposes conceptual provisions for price formation in the electric power industry in the form of a grid of price achievements, which helps energy supply companies modify the applied methods of price formation in current realities. Conclusions and Relevance. The article concludes that it is necessary to synthesize different pricing approaches that integrate the specifics of the activities of energy supply companies in the changing business environment. This will help develop conceptual provisions for pricing in the electric power industry on the basis of a grid of price opportunities that takes into account the basic elements of the pricing system. The results of the study can be used for further theoretical research related to the electric power industry, taking into account the needs of market participants and consumers.

A Framework for Distributed Orchestration of Cyber-Physical Systems: An Energy Trading Case Study

The increasing number of active energy consumers, also known as energy prosumers, is dramatically changing the electricity system. New products and services that adopt the concept of dynamic pricing are available to the market, where demand and price forecasting are applied to determine schedule loads and prices. Throughout this manuscript, a novel framework for energy trading among prosumers is introduced. Rather than solving the problem in a centralized manner, the proposed orchestrator relies on a distributed game theory to determine optimal bids. Experimental results validate the efficiency of proposed solution, since it achieves average energy cost reduction of 2×, as compared to the associated cost from the main grid. Additionally, the hardware implementation of the introduced framework onto a low-cost embedded device achieves near real-time operation with comparable performance to state-of-the-art computational intensive solvers.

Basic Concepts of Stock Option Pricing Models Traded in the Capital Market

An option, in the world of capital markets, is a right based on an agreement to buy or sell a commodity, financial securities, or a foreign currency at an agreed price at any time within a three-month contract period. Factors that determine the value of an option include the current price of the stock, intrinsic value, expiration time or time value, volatility, interest rate, and cash dividends paid. Some options pricing models use this parameter to determine the fair market value of an option. This paper aims to learn the basic concepts of option pricing. The method used in studying the pricing of options is a literature review, which is an activity to collect scientific data, especially in the form of theories, methods, or research that has been carried out previously, either in the form of books, manuscripts, journals, and others that already exist in the library. Based on the results of the study, concepts, scientific findings, and method innovations that have been achieved previously are obtained, which are very relevant and useful for understanding the determination of stock option prices. An option, in the world of capital markets, is a right based on an agreement to buy or sell a commodity, financial securities, or a foreign currency at an agreed price at any time within a three-month contract period. Factors that determine the value of an option include the current price of the stock, intrinsic value, expiration time or time value, volatility, interest rate, and cash dividends paid. Some options pricing models use this parameter to determine the fair market value of an option. This paper aims to learn the basic concepts of option pricing. The method used in studying the pricing of options is a literature review, which is an activity to collect scientific data, especially in the form of theories, methods, or research that has been carried out previously, either in the form of books, manuscripts, journals, and others that already exist in the library. Based on the results of the study, concepts, scientific findings, and method innovations that have been achieved previously are obtained, which are very relevant and useful for understanding the determination of stock option prices.

Offshore Market Design in Integrated Energy systems: A Case Study on the North Sea Region towards 2050

Offshore grids, with multiple interacting transmission and generation units connecting to the shores of several countries, are expected to have an important role in the cost-effective energy transition. Such massive new infrastructure expanding into a new physical space will require new offshore energy market designs. Decisions on these designs today will influence the overall value potential of offshore grids in the future. This paper investigates different possible market configurations and their impacts on operational costs and required congestion management, as well as prices and emissions. We use advanced integrated energy system optimisation, applied to a study case on the North Sea region towards 2050. Our analysis confirms the well-known concept of nodal pricing as the most preferable market configuration. Nodal pricing minimises costs (0.2–1.6 b€/year lower) and CO2 emissions (0.6–5.6 Mton/year lower) with respect to alternative market designs investigated. The performance of the different market designs is highly influenced by the overall architecture of the offshore grid, and the rest of the energy system. E.g., flexibility options help reducing the spread between the designs. But the results are robust: nodal pricing in offshore grids emerges as the preferable market configuration for a cost-effective energy transition to carbon neutrality.

THE INFLUENCE OF TOURIST ATTRACTION POSITIONING ON TOURIST DECISIONS TO VISIT THE ‘XYZ’ IN SAMARINDA, INDONESIA

To develop a good image, a tourist attraction must have good positioning so that it creates a positive impression and invite tourists to visit. This research aims to examine the influence of the positioning of a tourist attraction, consisting of experimental concept, price concept, and product attribute concept variables, on tourists' decisions to visit the "XYZ" tourist attraction in Samarinda. This quantitative study involved 100 tourist respondents who visited the "XYZ" tourist attraction in Samarinda, selected using non-probability purposive sampling technique. Data analysis in this research employed multiple linear regression. Data was processed using SPSS 27.00 for Windows. The results of the study show that the positioning of the tourist attraction consisting of experimental concept, price concept, and product attribute concept variables has a positive and significant impact on tourists' decisions to visit the "XYZ" tourist attraction in Samarinda. The product attribute concept variable is a dominant factor influencing tourists' decisions to visit the "XYZ" in Samarinda, with a coefficient value of 0.398, followed by the experimental concept variable with a coefficient value of 0.249, and the price concept variable with a coefficient value of 0.218.

The Relevance of Ibnu Khaldun's Price Concept to the Prohibition of Sales in E-Commerce

The background of the problem in this study suggests that the impact of the internet, one of which is technological advances, has opened up new business opportunities. As one of the urgencies of digital business progress in Indonesia today is e-commerce through the encouragement of advanced technology. The focus of this research explains that the relationship between Ibnu Khaldun's theory and the concept of e-commerce. This research uses a qualitative method with a description approach. The data collection is through literature articles, books and newsletter. As for the results of the research that the regulation of the Minister of Trade Number 31 of 2023 officially prohibits the merger of e-commerce and social commerce through e-commerce platforms, they are only allowed to promote products or services. This is called political dumping; the practice of dumping is expressly prohibited in Islam. In Ibnu Khaldun's price theory: the Islamic principle of determining the seller's price of a good tends to use the concept of average, because the demands of justice must be linked to effort.

BINTHE BILUHUTA ACCOUNTING: A STUDY OF ISLAMIC ETHNOMETHODOLOGY

This research departs from problems regarding adopting and implementing accounting originating from Western countries, which impact the increasingly marginalized accounting practices based on local cultural values. This study uses an Islamic ethnomethodology approach. The study results show that accounting practices are in the form of value-based affection (motoliango) pricing. This value is reflected through the actions of binthe biluhuta sellers who still accept buyers when they buy less than the set selling price. This is driven by a sense of affection between people and the belief that one should not refuse sustenance. The novelty of this research is that it is the first study to uncover accounting practices by binthe biluhuta sellers based on local cultural values. The contribution of this research is the presence of a holistic accounting concept that consists of material, cultural values, and religiosity. This research implies that the value of local wisdom in the form of compassion can be combined with accounting concepts or theories regarding selling prices. The implemented selling price concept can be used by traders with a materialist, humanist, and spiritual spirit when building a business.

Hugo Grotius on exchange and price

This paper explores the way Grotius's construction of a theory of acts which aimed at dealing with legal issues, in the chapter on contracts in a book from De Jure Belli ac Pacis (1625) where the causes of the birth of war are discussed (bk II), gave birth to an original understanding of exchange and price. The latter is part of a more extended economic analysis which, at the difference of economic policy aspects, has been paid till now little attention. Yet, Grotius' conception of exchange and price occupies an interesting position between the scholastic analysis where price was compared to a norm of just price and the later articulation, in classical economic thought, between typically natural prices and market prices. In a way, his conception of price might be viewed as a continuation of the Scholastic approach, illustrated two centuries and a half ago by Thomas Aquinas in the Summa Theologica, IIa-IIae, q. 77, where the issues debated aim to enlighten the priest about the morality of a transaction carried out by such of his parishioners. But here, with Grotius, the issue is no longer the morality or sinfulness of the transaction, but its lawfulness. This shift from a religious to a legal approach gives birth to an attempt to explain why individuals can deviate from a commonly accepted price in an exchange, and under what conditions, in the framework of either natural law or the law of nations, this effective price can be regarded as legal by a magistrate.

Values, prices and natural liberty: on the dual role of prices in the history of economic analysis

Natural liberty is a powerful idea of social order. However, a tension has always existed between its reality and social values. Here, I try to identify where the fault line may lie between an order that fulfils social expectation and one that does not. I claim that throughout history, this fault line had been manifested in the distinction drawn between the concepts of price and value. The first emerges in markets and the second reflects social expectations. Juxtaposing the two reveals either harmony or dissonance between natural liberty and social expectations. Convergence then is a necessary condition for social validity.

Offshore Market Design in Integrated Energy systems: A Case Study on the North Sea Region towards 2050

Offshore grids, with multiple interacting transmission and generation units connecting to the shores of several countries, are expected to have an important role in the cost-effective energy transition. Such massive new infrastructure expanding into a new physical space will require new offshore energy market designs. Decisions on these designs today will influence the overall value potential of offshore grids in the future. This paper investigates different possible market configurations and their impacts on operational costs and required congestion management, as well as prices and emissions. We use advanced integrated energy system optimisation, applied to a study case on the North Sea region towards 2050. Our analysis confirms the well-known concept of nodal pricing as the most preferable market configuration. Nodal pricing minimises costs (0.2–1.6 b€/year lower) and CO2 emissions (0.6–5.6 Mton/year lower) with respect to alternative market designs investigated. The performance of the different market designs is highly influenced by the overall architecture of the offshore grid, and the rest of the energy system. E.g., flexibility options help reducing the spread between the designs. But the results are robust: nodal pricing in offshore grids emerges as the preferable market configuration for a cost-effective energy transition to carbon neutrality.

ДОСЛІДЖЕННЯ МАРКЕТИНГОВОЇ ПОЛІТИКИ ЦІНОУТВОРЕННЯ ПІДПРИЄМСТВА

Abstract. Introduction. The article examines the economic concept of «price», «marketing pricing policy» and its interpretation by various domestic and foreign scientists. The process of the marketing policy of the enterprise's pricing and the use of various concepts of pricing, the choice of which depends on the characteristics of the product or service and the marketing goals of the enterprise, have been studied. Research in relation to a marketing pricing of enterprise policy is actual, as it will allow to decide the row of urgent problems, in particular, establishment of optimal price on products, increase of volumes of sales, increase of level of satisfaction of consumers and other and is especially appropriate in the conditions of strengthening of competition and introduction of new technologies in economic activity. The purpose of the article. Research of essence, maintenance and role of marketing pricing policy. Aims that can be attained by means of effective pricing policy. Metods. During research the methods of comparison, analysis, synthesis, abstraction, theoretical, historical and logical generalization are used. The dialectical method of research became methodological basis. Results. The essence of the economic concept "price", "marketing pricing policy" is revealed. It has been studied that the marketing policy of pricing is an important component of the company's marketing strategy. Formation of prices for goods and services requires the company to carefully analyze the market, competitors, consumers and own costs, and the main goal of pricing is to achieve maximum profit for the company. Conclusiоns. The analysis of the theoretical and practical aspects of marketing pricing policy showed the place and role that pricing policy plays in achieving strategic goals and ensuring the sustainable development of the enterprise, analyzed the main approaches to pricing and identified a number of factors affecting the choice of pricing strategy. It has been studied that in the process of marketing pricing policy, enterprises can use various concepts of pricing, such as price elasticity, competitiveness, consumer orientation and others. The choice of the pricing concept should depend on the characteristics of the product or service, as well as on the marketing goals of the enterprise. Further research is seen appropriate to point at sound determination of marketing strategies of companies of different patterns of ownership.

True Costing in Logistics & Supply Chain Management: How do we make decisions based on True Economic Trade-Offs (T-ETOs)?

Decision-making in logistics (including /supply chain management) is often based on traditional cost-price information from a company's accounting department. Externalities, like social and environmental impact, are usually not included in decision-making. To include a more integrated trade-off, the cost-price information should include information on the traditional costs and the costs of externalities like fair wages (social costs) and costs of damage, pollution, etc. (environmental costs). The article provides an overview of traditional costs and attempts to monetise externalities (by using the concept of shadow prices and the Lagrange multiplier or λ) as a base for decision-making in logistics. Some case studies are presented from the last decade and an example of a true economic trade-off for buying a diesel truck-tractor or an electric truck-tractor. In the previous example, much decision data is missing because no track record has yet been developed in this industry. The key issue is making external effects measurable so that business practices can make sound decisions based on financial, social, and environmental data. The author ends the contribution with a call for further (applied) research into true pricing in logistics.

True Costing in Logistics & Supply Chain Management: How do we make decisions based on True Economic Trade-Offs (T-ETOs)?

Decision-making in logistics (including /supply chain management) is often based on traditional cost-price information from a company's accounting department. Externalities, like social and environmental impact, are usually not included in decision-making. To include a more integrated trade-off, the cost-price information should include information on the traditional costs and the costs of externalities like fair wages (social costs) and costs of damage, pollution, etc. (environmental costs). The article provides an overview of traditional costs and attempts to monetise externalities (by using the concept of shadow prices and the Lagrange multiplier or λ) as a base for decision-making in logistics. Some case studies are presented from the last decade and an example of a true economic trade-off for buying a diesel truck-tractor or an electric truck-tractor. In the previous example, much decision data is missing because no track record has yet been developed in this industry. The key issue is making external effects measurable so that business practices can make sound decisions based on financial, social, and environmental data. The author ends the contribution with a call for further (applied) research into true pricing in logistics.

Reciprocal Pricing Strategy to Improve MSME Performance

This study aims to prove that the new concept of reciprocal pricing can affect the improvement of MSME performance. This study uses a quantitative approach with the sample technique used is Cluster Random Sampling This technique is taken with the argument that this research was conducted in several areas, namely, the tourism area of MSMEs street food vendors, then the building owner sells drinks or other products that are not similar. There were 175 MSMEs that became the object of research using the SEM AMOS analysis tool. Empirical evidence proves that Reciprocal pricing is able to encourage the improvement of MSME performance. Implement a marketing strategy strategy that focuses on building and maintaining marketing relationships between one business unit and another for the long term with the aim of providing different value to customers from competitors. The novelty of this research is Reciprocal Pricing, which is the concept of reciprocal pricing by two or more business units that provide mutual benefits to the agreed price, this variable is thought to improve performance. The implication is that efforts to improve the performance of MSMEs need to use the concept of Reciprocal Pricing in this research which is proven to encourage the improvement of MSME performance. The implementation of reciprocal pricing in improving the performance of MSMEs in tourism areas is proven to increase the number of consumers.

Balance function generated by limiting conditions

This article conducts an analysis of the inherent constraints governing the formation of the price function that describes the interaction between two markets. The research not only identifies these constraints but also obtains an explicit form of the specified function.The key factors considered in constructing the price function are defined in the article. Through analyzing these constraints and their impact on market interaction, a formula for the price function is provided. This approach not only reveals the essence of natural constraints in forming the price function but also provides a contextual foundation for negotiations shaping a fair exchange price for the interaction process between two markets. This offers a theoretical basis for modeling and solving similar problems arising during practical economic activities.Two economies, Economy 1 and Economy 2, producing goods X and Y with linear Production Possibility Curve (PPC) graphs, are under consideration. The cost of producing one unit of good X relative to Y is denoted as R1 for Economy 1 and R2 for Economy 2. Exchange between economies occurs in a market, where the possible exchange is Δx units of X for Δy = Rmarket · Δx units of Y, and vice versa.If R1 is less than R2, Economy 1 specializes in the production of X, and Economy 2 specializes in Y, fostering mutually beneficial trade. For mutually beneficial exchange on the market with a price Rmarket, it is necessary and sufficient that R1 ≤ Rmarket ≤ R2.The article also explores the concept of a fair exchange price, specifying conditions for symmetry, reciprocity, and scale invariance. Notably, it indicates that the unique solution satisfying these conditions is f(R1,R2) = √ R1 · R2.In the context of balanced exchange, where economies gain equal profit per unit of the acquired good, the balanced exchange price Rmarket[balance] is determined as Rmarket = √ R1 · R2. This serves as a fair price, meeting the aforementioned conditions of symmetry, reciprocity, and scale invariance.In the provided example with R1 = 2 and R2 = 8, the article examines the mutually beneficial interval for Rmarket and computes the balanced and fair exchange price.

Konsep Disruptive Marketing dalam Menanggulangi Praktik Jual Rugi oleh Perusahaan Penyedia Jasa Transportasi Online

The rapid development of app-based online transportation in Indonesia addresses the public's need for application-based transportation modes. However, intense competition among app-based transportation providers has led to the emergence of predatory pricing strategies. To investigate these practices and their implications for the relevant market and disruptive market from a legal perspective, a normative legal research was conducted. The results reveal regulatory ambiguities concerning promotional pricing concepts in online transportation companies, which have led to predatory pricing practices violating Article 20 of Law Number 5 of 1999. This discrepancy reflects legal frameworks lagging behind technological advancements, contrary to the concept of living law. Considering this, the urgent application of disruptive marketing by app-based transportation providers is essential to foster innovation without infringing upon the principles and laws of fair competition.

Indivisibilities in investment and the role of a capacity market

The topic of pricing non-convexities in power markets has been explored vividly in the literature and among practitioners for the past twenty years. The debate has been focused on indivisibilities in short-term auctions, the computational tractability of some pricing proposals, and the economic analysis of their behavior. In this paper, we analyse a source of non-convexities that is not discussed as broadly: the indivisibilities in investment decisions. The absence of equilibrium that we are primarily concerned about is the long-term equilibrium. We derive a capacity expansion model with indivisibilities and we highlight the issues arising from it. We discuss its relevance and address one particular argument for neglecting indivisibilities in investment, namely market size. We investigate to what extent a capacity market that clears discrete offers can mitigate the lumpiness problem. We particularly introduce the novel concept of convex hull pricing for capacity auctions. We illustrate the main findings with a numerical experiment conducted on the capacity expansion model used by ENTSO-E to assess the adequacy of the entire European system.

‘Because it matters’

AbstractBasic economic logic, which often simplifies assessments and explanations of agricultural policy issues, is vitally important in communicating with policy‐makers. Resources are limited, and there is a premium on getting decisions at least approximately right first time. Examples from southern Africa illustrate the importance of parity pricing, and its links to household food security (Lesotho), price risk, the emergence of an agricultural futures market, and its central role in allocating scarce agricultural resources (South Africa). Insights derived from an appreciation of parity pricing are relevant in other national contexts and also help explain how international grain markets operate. The parity pricing concept provides a framework for sense‐checking complicated debates relating to two issues that have been prominent in recent years; first, whether and to what extent speculation in futures markets has been a driver of agricultural price spikes, and second, how far indirect land use change (ILUC), triggered by the use of agricultural feedstocks to produce renewable energy, is a material issue. These issues are likely to be of heightened importance in the face of climate change. Each emphasises that agricultural economics matters, and that it matters that we get the economics right.

A risk-averse approach for distribution locational marginal price calculation in electrical distribution networks

As distributed generation (DG) systems continue reshaping power networks, optimizing pricing strategies at DG buses using the distribution locational marginal price (DLMP) concept becomes critical for economic efficiency and the optimal operation of the network. This paper proposes a novel approach that combines Information Gap Decision Theory (IGDT) and Particle Swarm Optimization (PSO) to address these challenges. IGDT offers a robust framework for optimizing pricing in the presence of uncertainties and incomplete information in the distribution network. It quantifies and models these uncertainties, enabling the creation of adaptable pricing strategies that respond effectively to changes in DG output and market conditions. To further refine pricing strategies, PSO is integrated into the IGDT framework. PSO's iterative approach allows for the discovery of optimal pricing parameters at DG buses, striking a balance between maximizing DG owner profits and ensuring system optimality. Extensive simulations on two realistic distribution network models validate the effectiveness of the proposed IGDT-PSO approach. It demonstrates that DG owners can reliably achieve their predefined profit targets while also adhering to the objectives of the distribution network.

Strategic Commodity Food Price Volatility of Central Java in 2020-2023

This study aims to analyze the volatility of food prices, especially rice, in Central Java from 2020 to 2023. Food price volatility can have a negative impact on consumer welfare and costs. Indonesia, as a country that still imports basic food needs, is vulnerable to food price volatility. Spikes in food prices can cause inflation to rise and economic growth to decline, which impacts the condition of people’s households, especially the poor. This research uses a quantitative method using ARCH GARCH time series data. The results of this study are expected to identify and analyze the volatility of rice food prices, predict rice food prices at the end of 2023, and determined Bank Indonesia’s policies related to rice food price volatility. This research is based on the concepts of volatility, food prices, and inflation. Quantitative methods such as ARCH and GARCH models are used to analyze the volatility of rice food prices. Secondary data is used in this study, and the research steps include data collection, data analysis and interpretation, and presentation of results to provide recommendations