Cooperative Pricing Research Articles

To what extent can prisoners dilemma in game theory be used in pricing strategy?

The title of this dissertation is to what extent can prisoners dilemma in game theory be used in pricing strategy? The purpose of the current study was to determine the extent of prisoner's dilemma used in pricing strategies, and how the prisoner's dilemma is used in pricing strategies. We first comprehensive analysis and evaluation of relevant literature about prisoners dilemma and common pricing strategies in literature review section. Then in discussion part, we use game theory models to describe and analyze the prisoner's dilemma in pricing strategies to predict various situations, make the optimal pricing strategies. In the dissertation, we found the effects of prisoners dilemma strategies on payoffs when pricing and explained why cooperative pricing agreements promote mutual benefits and long-term stability than non-cooperative pricing strategies. Then we analyzed the stability of cooperative pricing strategy, we also developed a pricing model based on Bayes theorem. Our research has important implications for economics, marketing and game theory. By applying prisoner's dilemma theory, firms can better understand the behavioral of competitors and enhance decision-making processes, optimize their pricing strategies, thereby enhancing market efficiency and profitability.

Sponsored Data: Cooperative Pricing and Subsidizing Strategies of Mobile Telecom Carriers and Internet Content Providers

Sponsored Data: Cooperative Pricing and Subsidizing Strategies of Mobile Telecom Carriers and Internet Content Providers

PrivCPM: Privacy-Preserving Cooperative Pricing Mechanism in Coupled Power-Traffic Networks

PrivCPM: Privacy-Preserving Cooperative Pricing Mechanism in Coupled Power-Traffic Networks

Coordination of complementary tourism supply through a destination card: The pursuit of profitability in the presence of a foreign tour operator

A destination card has been widely used by destination management organizations to coordinate the complementary tourism supply. Such coordination, which involves pricing a destination card, is challenging when a foreign tour operator is present. Though the literature shows that cooperative pricing between a destination management organization and a tour operator increases total profits, the most advantageous profit sharing for a destination has not been addressed. With a theoretical model of base and add-on products, this paper identifies the arrangement between a public destination management organization and a foreign tour operator that will accrue the highest profits for a destination. It is found that the most profitable option for a destination is a cooperative agreement in which the foreign tour operator is offered the same profits as a price leader under non-cooperation. This result comes from the fact that non-cooperation entails an unstable situation in which the tour operator is not willing to relinquish price leadership. The findings are of practical interest to help achieve economic sustainability in tourism destinations that rely on foreign tour operators and seek to coordinate their complementary tourism supply.

Cooperative Pricing for Vehicle-Traffic-Power Nexus to Support City Decarbonization: A Federated Deep Reinforcement Learning Framework

Cooperative Pricing for Vehicle-Traffic-Power Nexus to Support City Decarbonization: A Federated Deep Reinforcement Learning Framework

When Payments Go Social: The Use of Person-to-Person Payment Methods Attenuates the Endowment Effect

The authors examine how person-to-person (P2P) payment methods affect consumers’ participative pricing decisions. Participative pricing occurs when people choose how much to pay for a good or how much they will sell it for. This pricing mechanism is increasingly common, for example, on platforms like Craigslist, eBay, or Etsy. A successful transaction requires that consumers converge on a mutually acceptable price, yet decades of research on the endowment effect show that sellers often demand more for goods than buyers are willing to pay. The authors propose that compared with traditional payment methods, when consumers use P2P payments they make somewhat more cooperative pricing decisions: buyers are willing to pay a bit more and sellers are willing to accept a bit less. This attenuates the endowment effect and increases the odds of a successful trade. This occurs because even when the trade is with a stranger, P2P payments can subtly activate a social transaction context, cuing the social transaction pricing norm of making more cooperative pricing offers. The authors test these proposals in eight studies using consequential and hypothetical choices, moderation, and mediated moderation. A simulation indicates that compared with traditional payment methods, the use of P2P payments can increase successful transactions in a marketplace by nearly 10%.

Is Soft Law Making Hard Law Too Hard?

Soft laws are created for many reasons to serve various purposes. This article focuses on acts of soft law that are adopted to facilitate the process of applying hard law (or complying with it) and to standardize the understanding of international agreements. In the field of customs law, one can point, for instance, to opinions adopted by the World Customs Organisation. The Organisation for Economic Co-operation and Development (the OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations and the Commentary to the OECD Model Tax Convention on Income and on Capital are globally recognized examples of the tax arena. The side effects of the application of acts of soft law in the fields of tax law and customs law are presented and analysed. Interpretative problems are observed at the international level, whereas clear-cut side effects often occur domestically. customs classification – World Customs Organisation (WCO) – double taxation conventions – Organisation for Economic Co-operation and Development (the OECD) – Model OECD – OECD Transfer Pricing Guidelines – OECD Commentary – interpretation

Research on interest coordination model of wind power supply chain with energy storage participation

In order to deal with energy and environmental problems, the proportion of clean energy needs to be greatly increased. The fluctuation and intermittence of wind power production limit the consumption of wind power and affect the realization of wind power value. The development of energy storage has brought new opportunities and value-added ways for wind power consumption. This paper constructs the wind power supply chain with energy storage participation, and explores the benefit coordination of wind power supply chain with energy storage participation on the basis of considering the dual effort cost. This paper establishes non cooperative pricing model and cooperative pricing model, respectively. On this basis, the benefit distribution of wind power provider and energy storage provider under the condition of cooperation is discussed, and four benefit distribution strategies based on different influencing factors are proposed. It is found that considering the impact of dual effort cost, cooperative pricing is more conducive to the consumption of wind power and the improvement of the overall benefits of wind power supply chain. At the same time, a reasonable benefit distribution strategy can make both wind power provider and energy storage provider obtain more profits. The research of this paper provides a reference for the cooperative pricing and benefit distribution between wind power providers and energy storage providers.

Do Certification Schemes Enhance Coffee Yields and Household Income? Lessons Learned Across Continents

While the market for sustainably certified products grows, the debate on whether smallholder farmers benefit from this certification movement is far from over. We present empirical findings across three continents. Identical household surveys were conducted among 738 smallholder coffee farmers organized in primary cooperatives in Ethiopia, India and Nicaragua. The comparative analysis which is based on the propensity score matching approach shows that the impacts of Fairtrade certification on coffee yields and income vary across countries. In Ethiopia, the coffee farmers from Fairtrade certified cooperatives fare worse than their non-certified counterparts both in coffee yield and income. In the Indian case study, the Fairtrade cooperative members have yield and price advantages over the non-certified farmers. This has in turn led to higher net revenue from coffee for certified farmers. In Nicaragua, coffee farmers from Fairtrade and double (Fairtrade-Organic) certified cooperatives also benefit in terms of net revenue but there is no statistically significant effect on yield and household income. A comparison of the Fairtrade minimum floor price and the weight-equivalent Fairtrade cooperative price in the three countries shows that Nicaraguan Fairtrade certified farmers have obtained a higher average price than the Fairtrade mandated minimum price, whereas in Ethiopia the certified farmers received a much lower price. In India, the certified average price was closer to the minimum floor price. We conclude that coffee cooperatives and the motivation and capability of their staff play a central role in training their member farmers about each aspect of coffee growing and certification.

Testing for Pricing Behavior in the Mortgage Loan Market

This study examines the pricing behavior of banks in the mortgage loan market. Firstly, the paper compares the loan pricing behavior of banks between two periods, one of which is marked as a more competitive state due to regulatory intervention. Secondly, the paper also test for the stock market reaction to model‐implied collusive profits. Using data from banks in Korea, the paper find that mortgage loan rates are more consistent with cooperative pricing behavior than independent pricing behavior in the period from 2006 to 2012.

INCOME DISCRIMINATION-A MANIFESTATION OF INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (IFAD) RICE PROGRAMME IN NIGERIA’S NIGER STATE: INVISIBLE OR INVINCIBLE

The present study evaluated the income inequalities between IFAD and non-IFAD rice farmers in Nigeria’s Niger state. Undated data of 2018 cropping season elicited through structured questionnaire coupled with interview schedules from a total of 296 rice farmers (111 IFAD rice farmers and 185 non-IFAD rice farmers) through a multi-stage sampling technique. Tools viz. descriptive statistics, censored regression, Chow F-test statistics, Average treatment effect (ATE) and Oaxaca-Blinder decomposition model were used for data analysis. The findings showed that the programme had effect on the farmers’ income in the short-run; while in the long-run, the non-remunerative product’s price has diffused the impact of the programme on the farmers’ income. However, it was observed that participation in the programme made the average income accumulation of the participated farmers to higher than that of the non-participants. The discrimination difference called programme participation accounts for more than 75% of the income gap, while endowment or characteristics difference accounts for less than 24% vis-à-vis the non-treated groups. Therefore, the programme should link the farmers with the appropriate off-takers in order to insulate them from adverse effect of market imperfection which tends to dampen the rice price during the boom season. Also, the farmers should engage in co-operative marketing and monitor price behavior using market information and intelligence. The scope of programme coverage should be expanded beyond the target group so as to enhance the farm families’ livelihoods; the rural, state and the national economies.

Editorial: the price of effective international co-operation

Editorial: the price of effective international co-operation

Production mode and pricing coordination strategy of sustainable products considering consumers’ preference

In order to study the pricing and coordination of sustainable supply chain (SSC), this paper investigates the equilibrium results of different production modes under non-cooperative game and cooperative game aiming at the market segmentation demand of sustainable products (SP), environment-friendly products (EFP) and general products (GP) which coexist and can be replaced under different preference levels. Theoretical analysis shows that when consumers have different preference coefficients for products, the critical zone of the manufacturer to choose production modes can be determined, and the system performance under cooperative game is significantly better than that under non-cooperative game. Through the cooperative pricing strategy of Rubinstein bargaining coordination, pareto optimization of profits of supply chain system and its members can be realized under different production modes. The system profits are 33.3% higher than that of non-cooperative game. The analysis of examples further verifies the influence of different production modes and the effectiveness of the coordinated pricing strategy.

A Kantian Analysis of Pricing and R & D

Can cooperation offer an innovative alternative to competition among firms? This design problem is analyzed in the context of Kantian cooperation among firms in a two-stage model. In the first stage, firms invest in R&D, which increases the probability of obtaining a superior technology. In the second stage, firms observe their technology, and choose their prices. The equilibrium R&D levels under competition, Kantian cooperation, and cartel cooperation are analyzed and compared. We show that without (with) perfect research spillovers, Kantian price cooperation supports weakly higher (lower) R&D than does cartel price cooperation. Moreover, the results are compared to the social optimum. Among the cases that we studied, only Kantian cooperative pricing with competitive R&D can induce an R&D investment that exceeds the socially optimal level, and all other R&D outcomes in our study unambiguously fall below the socially optimum level.

A study on online platforms’ price discrimination behavior and the same-side network effects

Purpose The purpose of this paper is to whether competition between platforms can be effective, thus leading to efficient allocations. Design/methodology/approach Based on the classic linear Hoteling model, this paper builds a two-period competition model for two competing platforms using two variants, namely, a discrimination pricing model and a unified pricing model. Findings In the case of the discrimination pricing model, the competition is moderate, and the two platforms split the market evenly in the first stage, while both platforms tended to offer preferential treatment to new users and set higher prices for regular customers in the second stage. Compared to the unified pricing model, in the first stage, the platform can provide a higher price that depends on the cross-network effect when it implements discrimination, and thus, obtains higher profits. However, in the second stage, fierce competition leads to the release of benefits, new and regular customers obtain lower prices and the platforms lose higher profits. In the long-run, discriminatory pricing is not the best option due to lower total profits. The two platforms will implement cooperative pricing or one platform becomes dominant. Originality/value Instead of focusing on the cross-network effects, this paper emphasizes the role of the same-side network effect on price discrimination regarding the platforms’ competition. The same-side network effects are investigated in relation to a discrimination pricing strategy and compared to a unified pricing strategy. Another innovative aspect is the study of these network effects in a dynamic setting based on a two-period competition model for two platforms.

Game-theoretic analyses of strategic pricing decision problems in supply chains

We consider strategic pricing problems in which each firm chooses between a non-cooperative (individual pricing) strategy and a cooperative (price negotiation) strategy. We first analyze a monopoly supply chain involving a supplier and a retailer, and then investigate two competing supply chains each consisting of a supplier and a retailer. We find that an appropriate power allocation between the supplier and the retailer can make the two firms benefit from negotiating the wholesale and retail prices. When the supplier negotiates the wholesale price, the retailer’s cooperative strategy can always induce supply chain coordination in the monopoly setting, whereas the two supply chains in the duopoly setting can be possibly coordinated only when the retailers determine their retail prices individually. In both the monopoly and duopoly settings, the wholesale price negotiation is a necessary part of the communications between supply chain members. When the supply chain competition intensifies, all firms are more likely to determine their prices individually rather than to negotiate their prices.

Research on the Theoretical Model of CSR Realization in Energy Industry based on Evolutionary Game Theory

Corporate social responsibility (CSR) is a hot topic in recent years. From the perspective of game theory, this paper analyses the game process of the CSR realization in energy industry. From the perspective of the non-cooperative game and cooperative game theory, this paper constructs the theoretical model of CSR realization in energy industry based on evolutionary game theory. Through the research, this paper finds that cooperation is the premise of CSR to achieve sustainability and stability. Through cooperative pricing, the cost of CSR could be minimized.

МЕХАНИЗМ ИСПОЛЬЗОВАНИЯ КРЕДИТНЫХ СРЕДСТВ В ГОСУДАРСТВЕННОМ ОБОРОННОМ ЗАКАЗЕ И ПРЕДЛОЖЕНИЯ ПО ЕГО СОВЕРШЕНСТВОВАНИЮ

Актуальность. В оборонно-промышленный комплекс России входят около двух тысяч организаций и высокотехнологичных предприятий, расположенных в 64 субъектах Российской Федерации, в которых занято более 2 млн человек – рабочих, инженеров и ученых высочайшей квалификации. Несмотря на внушительный объем, рынок государственного оборонного заказа имеет специфические особенности как с экономической точки зрения, так и в области правового регулирования, особенно в вопросах кредитования предприятий и ценообразования на продукцию оборонного заказа. Целью статьи является разработка предложений по совершенствованию использования кредитных средств в государственном оборонном заказе. Одной из основных проблем, ведущих к несвоевременному заключению контрактов в России по государственному оборонному заказу, является ценообразование. В настоящий момент наблюдается полное отсутствие системы и алгоритмов управления ценами кооперации, что приводит к предсказуемому ухудшению финансового положения предприятий, работающих на оборону, и увеличению нагрузки на государственный бюджет. Методом сравнительного анализа нормативно-правовой базы и практики применения нормативных актов российскими предприятиями, работающими на оборонный заказ, выявлены проблемы в системе исполнения государственного заказа, в частности кредитовании предприятий и образовании цены на оборонную продукцию. Предложены механизмы совершенствования законодательной базы России по государственному оборонному заказу: законодательно закрепить разумную ставку кредитования и установить единый порядок образования цены на оборонную продукцию. Уделено внимание проблемам экономических и политических санкций против России, импортозамещения электронной компонентной базы, создания новых образцов военной техники, замещения кадров и привлечения молодых ученых и специалистов в производство.

Diagnostic system for cooperative pricing detection in retail markets

Diagnostic system for cooperative pricing detection in retail markets

Hierarchical Medical Cooperative Price Decision of County-Township Hospitals in Coastal Areas of China

Ma, J., Zhang, R., Huang, D., Chen, J., and Song, J., 2019. Hierarchical medical cooperative price decision of county-township hospitals in coastal areas of China. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 908–912. Coconut Creek (Florida), ISSN 0749-0208.This study aims to compare the price-decision between two different types of hospital systems in coastal cities of China. Generally, the difference of medical choice of patients is caused by different factors. Because of economic and social differences, residents in coastal areas usually afford to go to hospitals which fulfill their demands compared with inland areas; therefore, different types of hospitals will make each price decision to maximize the profits. However, in the context of the medical services- and- interests community (MSIC) mode, in order to examine how the two types' hospitals how to make price decisions so as to maximize the total revenue of both sides, Stackelberg game model is employed. Results show that the centralized decision-making mechanism is more profits than the decentralized method. Furthermore, a case study is carried out with the hospital system of a coastal city in China to highlight the topic, which will promote to the reform of China.