Price Effects Research Articles

Do Institutional Investors Stabilize Equity Markets in Crisis Periods? Evidence from COVID-19

During the COVID-19 stock market crash, U.S. stocks with higher institutional ownership (IO) performed worse than those with lower IO. By studying firm-level changes, we identify two mechanisms behind this effect: a sudden downscaling of institutional capital in the equity market and a collective attempt by institutions to reposition their equity portfolios toward more COVID-resilient stocks. The stock price effects of their “portfolio downscaling” trades quickly reversed in the market’s recovery phase, whereas those of their “portfolio repositioning” trades lingered. The institutional rush for firm resilience also caused price pressures, with retail investors providing liquidity to stocks sold by institutional investors, both during the crisis and afterward. Overall, our results indicate that when a tail risk is realized, institutional investors amplify price crashes. This paper was accepted by Lukas Schmid, finance. Funding: S. Glossner and P. Matos acknowledge financial support from the Richard A. Mayo Center for Asset Management at the Darden School of Business. S. Ramelli and A. F. Wagner acknowledge financial support from the University of Zurich Research Priority Program “Financial Market Regulation.” Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.03411 .

Pengaruh Harga, Promosi Penjualan dan Kualitas Pelayanan Terhadap Kepuasan Konsumen (Studi Pada Mixue Ice Cream & Tea Kopo Soetta, Kota Bandung)

In today's free market era, marketing is evolving at a rapid pace. Mixue Ice Cream & Tea successfully has many outlets spread across various cities in Indonesia. Mixue came to the attention of researchers, from a survey distributed to 97 people. This study aims to determine the effect of Price, Sales Promotion and Service Quality on Consumer Satisfaction (Study on Mixue Ice Cream & Tea Kopo Soetta Bandung City) with a sample size of 97 respondents. This research method is quantitative based on the philosophy of positivism, data using quantitative or statistical research instruments, with the aim of testing predetermined hypotheses. The results of the study descriptively variable Consumer Satisfaction, Price, Sales Promotion are in the good category while the service quality variable is in the unfavorable category. Partially the effect of price on customer satisfaction has a t-count value of 2.135. So it can be concluded that price has an effect on customer satisfaction. The effect of Sales Promotion on Consumer Satisfaction has a t-count value of 2.403. So it can be concluded that Sales Promotion has no effect on Consumer Satisfaction. The effect of Service Quality on Customer Satisfaction has a t-count value of 1.421. So it can be concluded that Service Quality has no effect on customer satisfaction. simultaneously shows the influence between Price, Sales Promotion, and Service Quality.

The effect of crypto price fluctuations on crypto mining, and CO2 emissions amid geopolitical risk

We examine the interlinkages between cryptocurrency prices, the energy consumption of crypto mining, and the resulting CO2 emissions, considering the conditioning impact of geopolitical risk (GPR). Employing multivariate quantile-on-quantile regression (MQQR), we find that cryptocurrency price fluctuations significantly impact both cryptocurrency mining and its attendant environmental impact, particularly at higher quantile levels of crypto prices and GPR. The effect of bitcoin pricing on environmental awareness is seen across several quantiles. We add to the continuing discussion regarding the long-term viability of cryptocurrencies.

Costing disasters with hedonic pricing and neighborhood effects: An application to the Nepal Gorkha Earthquakes

Costing disasters with hedonic pricing and neighborhood effects: An application to the Nepal Gorkha Earthquakes

The Influence of Words of Mouth, Company Credibility, and Price on the Decision to Purchase Ship Repair Services from Shipyard Companies

Consumer decision-making varies depending on the types of purchasing decisions; more complex decisions may involve more participation and greater freedom to buy. The purpose of this study was to determine the effect of word of mouth on purchase intention, the effect of word of mouth on purchase decision mediated by purchase intention, the effect of word of mouth on purchase decision, the effect of price on purchase intention, the effect of price on purchase decision mediated by purchase intention, the effect of price on purchase decision, the effect of credibility on purchase intention, the effect of credibility on purchase decision mediated by purchase intention, the effect of credibility on purchase decision and the effect of purchase intention on purchase decision. This type of research is quantitative research. The sample in this study were companies or individuals who owned ships, shipping agents, or ship management who had carried out ship repairs at PT PAL Indonesia. As many as 100 respondents used purposive sampling techniques. The analysis technique in this study used Warp Partial Least Square (Warp PLS) analysis. The results of the analysis in this study are that there is a significant influence of word of mouth on purchase intention, there is no significant influence of word of mouth on purchasing decisions mediated by purchase intention, there is a significant influence of word of mouth on purchasing decisions, there is a significant influence of price on purchasing decisions mediated by purchase intention, there is a significant influence of price on purchasing decisions, there is a significant influence of credibility on purchasing intentions, there is no significant influence of credibility on purchasing decisions mediated by purchase intention, there is a significant influence of credibility on purchasing decisions, and there is a significant influence of purchasing intentions on purchasing decisions.

Information sharing across MLS platforms and housing prices: Evidence from a temporary suspension of an agreement

AbstractThis study examines a unique case of a suspension of a data‐sharing agreement between two multiple listing services (MLSs) in South Florida, and investigates the impact of such a (negative) shock on the trading outcomes of the MLS platforms. Using property listing data from the two MLSs, we find that sale prices were lower during the data suspension period for transactions involving properties that were in areas where the listing broker may rely on brokers from the other MLS to bring potential buyers. The negative price impact remains stable and consistent under various robustness checks. Furthermore, the results also reveal heterogeneous pricing and liquidity effects due to the data‐sharing suspension‐related shock.

Risk Spillover Effect of Crude Oil Prices Against Stock Price Indices: Case Study of Oil-Producing and Consumer Countries for The Period of 2000-2022

This research investigates the risk spillover effects of crude oil prices on stock price indices in both oil-producing and consumer countries during the period 2000–2022. The research employs the GARCH Copula Quantile Regression (CQR) model, a method capable of capturing nonlinear dependencies and tail risks between crude oil prices and stock indices across different risk levels. The data includes daily crude oil prices (WTI) and stock indices of oil-producing countries (S&P500, TASI, MOEX, TSX) and consumer countries (SSE, BSE SENSEX, Nikkei 225). The findings reveal significant downside and upside risk spillovers from crude oil prices to stock indices, with oil-producing countries experiencing higher spillover risks compared to consumer countries. Notably, the TASI index exhibits the greatest risk spillover among producing countries, while the SSE index is most affected among consumer countries. These results highlight the asymmetrical nature of risk spillovers, with downside risks posing greater challenges than upside risks. This research contributes to the existing literature by providing a more detailed analysis of risk dependencies using the GARCH CQR model and offering practical insights for investors and policymakers to better manage risks in volatile markets. The study underscores the importance of understanding tail dependencies in financial markets affected by crude oil price fluctuations.

Quality cue or price anchoring: The effect of price on consumer behavior in repeat experiments

AbstractPrice is one of the most important factors affecting consumer purchase decisions. Consumers may use price as a quality cue or reference point to make the decisions. However, few studies have considered the quality cue by controlling the price anchoring and vice versa. We conduct four identical experiments weeks apart to estimate the effect of price on consumers' product quality evaluation and WTP. The results show that (1) the price has a significant impact on appearance rating and taste rating; (2) product quality mediates the price effect on consumer WTP only if consumers have incomplete quality information about the product; and (3) the marginal effect of price on consumer WTP differs over time. The results of this study provide deep insights into the role of price on consumers' quality assessment and valuation formation of products.

Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets

Abstract This article analyzes the consequences of the United States implementing unilateral policies to reduce greenhouse gas (GHG) emissions from agriculture. The policy representation is based loosely on current and past policy initiatives that have subsidized GHG reductions and considered special treatment for sectors heavily involved in trade. To do so, our first step is to generate new estimates of key parameters, elasticities of demand and supply, that are critical to understanding interactions among agricultural commodities, such as between livestock and crop products, in this area of research and more broadly. We apply these parameters in a widely used economic model that estimates the effects of a unilateral U.S. agricultural GHG policy on both domestic and foreign markets as well as global GHG emissions. Livestock effects dominate, driving most U.S. livestock product consumer prices higher and causing mixed crop and crop product price effects. A unilateral policy increases food costs in the implementing country and, if applied to all supplies, domestic and imported, tends to raise prices elsewhere as well. Alternative implementation strategies, such as not imposing the costs on exports or not imposing the costs on imports, can lead to lower food prices and greater consumption in other countries, as well as have important implications for the overall GHG reductions achieved by the unilateral effort.

Crude oil price and exchange rate: An econometric analysis on commodity price in Nigeria

This study empirically examined the effects of crude oil price and exchange rate on commodity price in Nigeria from 1990 to 2022 employing Autoregressive Distributed Lag (ARDL) testing procedures. Commodity price index is utilised to proxy commodity price while the adopted independent variables are crude oil price and exchange rate, with government capital expenditure and interest rate employed as control variables. The study utilized time series data sourced from Central Bank of Nigeria (CBN) statistical bulletin and World Development Indicators (WDIs) of the World Bank. Diagnosis for unit roots in the time series data were conducted employing the Augmented Dickey Fuller method and the upshots suggested mixture of I(0) order and I(1) order of integration, with the Bounds cointegration estimate showing long-run relationship. The ARDL upshots showed that crude oil price contributed long-run direct and substantial effects on commodity price index in Nigeria but negatively in the short-run while rise in official exchange rate positively and substantially contributed to long-run and short-run CPI effects. The study therefore concluded that upsurge in crude oil price and exchange rate are major determinants of commodity price level in Nigeria. It is thus recommended among others that Nigeria's heavy earnings from crude oil exports which is vulnerable to fluctuations in global oil prices should be supported with strengthening the non-oil sector to stabilize commodity prices in the long-run. Also, the CBN should ensure real non-oil sector friendly revaluation of the Naira relative to the US Dollar as this will strengthen the domestic economy and curb future inflationary pressures. Keywords: Crude Oil Price Per Barrel, Official Exchange Rate, Commodity Price Index, ARDL Testing Procedure and Nigeria.

BUNDLING POWER: A STRATEGY TO INCREASE SALES VOLUME IN A COMPETITIVE MARKET AT INDOMARET

The purpose of the study was to determine the effect of product, price, promotion and place on Purchasing Decisions at Indomaret Simpang Kandis Bengkulu. Data collection using questionnaires to 95 people who shop at Indomaret Simpang Kandis. Data analysis techniques use multiple linear regression, coefficient of determination and hypothesis testing. The results showed that the product has a positive and significant influence on purchasing decisions at Indomaret Simpang Kandis area, Bengkulu city, meaning that the more product quality increases, the purchasing decisions will also increase. Price has a negative and significant effect on purchasing decisions at Indomaret Simpang Kandis area, Bengkulu city. This means that if there is an increase in price at Indomaret in the Simpang Kandis area of Bengkulu city, the purchasing decision will decrease. Promotion has a positive and significant effect on purchasing decisions at Indomaret in the Simpang Kandis area of Bengkulu city, which means that if the promotion increases, the purchasing decision will also increase. Place has a positive and significant effect on purchasing decisions, Indomaret Simpang Kandis area Bengkulu. This means that the more strategic the place, the purchasing decisions will also increase.

THE INFLUENCE OF BRAND IMAGE, SOCIAL INFLUENCE AND PRODUCT PRICE WITH TRUST AS MEDIATING VARIABLES ON THE PURCHASE INTENTION OF 'RAJA DIMSUM' CULINARY MSMES IN GENERATION Z IN PADANG CITY

The large number of culinary industry MSMEs that are developing at this time does not guarantee to avoid problems that affect their growth. Likewise, what was passed by “Raja Dimsum”, Culinary MSMEs which had several obstacles when running their business. This study aims to determine the effect of Brand Image, Social Influence and Product Price on Purchase Intention of UMKM Culinary 'Raja Dimsum' in Generation Z in Padang City. This research sampling technique with certain criteria. The research participants totaled 170 respondents who were selected as samples. Data were collected through online questionnaire distribution and then analyzed using SmartPLS 3.0 software. The results of this study reveal that (1) brand image has no direct effect on purchase intention, (2) social influence has a significant positive effect on purchase intention, (3) product price has a significant positive effect on purchase intention, (4) trust has a significant positive effect on purchase intention, (5) brand image has no direct effect on trust, (6) social influence has a significant positive effect on trust (7) product price has a significant positive effect on trust (8) brand image has no effect on purchase intention mediated by trust (9) social influence has a significant positive effect on purchase intention mediated by trust (10) product price has a significant positive effect on purchase intention mediated by trust.

Housing market, social housing, and fertility: evidence from urban China

ABSTRACT This study utilizes panel data from 283 Chinese cities between 2009 and 2017 and employs a fixed-effects model to analyze the effects of commercial housing prices and social housing supply on birth rates, considering the interaction between the housing market and social housing policies. The findings indicate that a 1% increase in housing prices results in a 0.063% decrease in the birth rate, while a 1% increase in social housing supply leads to a 0.075% increase in the birth rate. However, although increasing the supply of social housing can positively influence birth rates, its substitutability with commercial housing may reduce the availability of commercial properties, driving up housing prices and potentially lowering fertility rates. Therefore, an unlimited social housing supply policy may not effectively resolve the issue of low birth rates. To be more inclusive, local governments should adopt a demand-oriented social housing policy that addresses the diverse needs of families, rather than focusing solely on supply-side measures. Highlights Social housing supply in areas with lower housing prices positively affects birth rates. Social housing supply in areas with higher housing prices negatively affects birth rates. Among social housing types, economic and comfortable housing (ECH) has a greater impact on fertility rates than public rental housing (PRH). A demand-driven social housing supply policy is necessary for low-income households.

Will Bride Price Affect Household Savings: Evidence from Rural China

Does the increasing bride price affect household savings behaviour? This study investigates the relationship and the mechanism between the increase in the bride price and rural household savings behaviour using data from the China Labour-force Dynamics Survey (CLDS). The findings reveal that the bride price has a significant positive effect on rural household savings. Rooted in the traditional view of ‘raising a child to provide for the aged’, the paper identifies the bride price endowed with dual attributes, consumption and investment, as potential pathways through which the bride price stimulates household savings potential. Furthermore, the positive effect of a high bride price on rural household savings is stronger among families with fewer children.

The Effect of Transfer Pricing, Sales Growth, Thin Capitalization on Tax Avoidance Moderated by Size

This study provides analytical and experimental validation of the main functions and characteristics, focu sing on the impact of transfer pricing, sales growth, and thin capitalization on tax avoidance, with company size as a moderating variabl e. This study is very relevant in the context of mining companies. This study uses a quantitative approach by utilizing secondary data, specifically examining mining companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. To select the sample, this study uses a purposive sampling technique, resulting in a final sample of 60 mining companies for the specif ied period. Hypothesis testing and data analysis were carried out using multiple linear regression and moderated regression analysis (MRA), supported by SPSS version 22. The results of the study indicate that transfer pricing and thin capitalization do not affect tax avoidance, while sales growth has a significant impact. In addition, company size does not function as a moderating factor for the relationship between transfer pricing and sales growth on tax avoidance. Meanwhile, company size functions as a m oderating factor for the relationship between thin capitalization and tax avoidance.

New Evidence on Price Effects of Transparency Regulations in European Fuel Markets

This paper analyses the impact of transparency regulations on Super 95 and Diesel prices in Austria, France, and Germany to shed new light on the price effects of regulatory policies. To identify the effects of regulation, we use publicly available data from January 2005 to the end of December 2018 and estimate synthetic difference-in-difference models. In summary, our findings reveal notable differences. While prices in France did not change significantly, the results for Austria suggest that the price-reducing effect of the 2011 Price Fixing Act was offset by the transparency policy, ultimately leading to a price increase for Super 95 prices. In Germany, the Market Transparency Unit (MTU) has a price-reducing effect of two to three cents per litre, especially in the long term.

Procuring Medical Devices: The Price Effect of Mergers Among Orthopedic Prostheses Producers

ABSTRACTThis paper quantifies the price effects of a merger between two major producers of orthopedic prostheses. It shows that, in the public procurement markets where these products are purchased, the effect of the merger hinges on the characteristics of both the procurement design and the organizational structure of the buyers. Using data from all public procurement events in Italy between 2012 and 2019, and exploiting a difference‐in‐differences model where pacemakers play the role of the control group, we find that the merger led to a 7.6% increase in prices and that this effect is concentrated in the first three years post‐merger. Further insights are: (i) a heterogeneous impact among gender and age groups such that most of the burden is on female patients aged 65 and above; (ii) short‐term quality does not change, but patenting activity declines; (iii) there is no evidence of the merger triggering ex‐post coordinated effects in the form of bidding and entry patterns compatible with firm collusion.

Efficient Frontier and Applications in Product Offering and Pricing

Problem definition: The joint assortment and pricing problem is notoriously difficult to solve, especially for large-scale issues subject to various operational constraints arising from business practices. In this paper, we delve into the joint optimization challenge under constrained logit choice models, accounting for product-differentiated price sensitivities across static, randomized, and dynamic contexts. Methodology/results: We develop a unified optimization methodology that applies efficient frontier and dimensional reduction and transforms the joint optimization problem into a single-variable one with respect to the total choice probability. The efficient frontier is employed to transform the nonconcave objective function equivalently into its concave counterpart. We show that the optimal prices are uniquely determined by the common target adjusted markup. The complexity of the mixed combinatorial optimization problem can be reduced by searching over efficient sets of polynomial size. In the randomized assortment and pricing problem in which the product offer sets and prices follow certain distribution, we show that randomization has the potential to elevate the total revenue to the exact efficient frontier, a feat that the static problem may fail to achieve (with a given total choice probability). For dynamic joint product selection and pricing, we find that the optimal policy adopts a simple time-threshold structure that can be precomputed. Furthermore, we illustrate the robustness of our methodology by extending the analysis to a variety of general settings, including the nested logit model. Managerial implications: The proposed methodology contributes to the increasingly popular topic in retail management by significantly reducing the computational complexity of joint product offering and pricing under different constraints. Our results regarding the effects of product set constraints and price bounds provide valuable insights and guidance to practitioners on product offering and pricing in various business scenarios. Funding: C. Ke acknowledges financial support from the National Natural Science Foundation of China [Grant 72101113]. L. Lu acknowledges financial support from the Hong Kong Research Grants Council [Grants 26501021 and 16502423]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0164 .

Assessing the extent of negative effect of higher electricity prices on energy security performance

Subject. The article considers strategic threats to the economic and energy security of the country and regions. Objectives. The aim is to substantiate the possibility and method of numerical assessment of the significance of price threat to energy security. Methods. We employed the systems analysis of relationship between energy and economics, using economic and mathematical models. Results. We proposed indicators characterizing price threats for consumers and producers of electricity, provided methods of numerical assessment of values of both individual indicators and their combination, presented the results of experimental calculations reflecting the impact of different scenario conditions on the average and marginal cost of electricity. Conclusions. Forecasts of the dynamics of electricity cost and numerical assessment of possible negative effect of electricity price hike should become an important component of the comprehensive analysis of the state of energy security.

Pengaruh Citra Merk dan Harga Terhadap Loyalitas Pelanggan pada Mie Gacoan Lippo

The purpose of this study was to analyse the effect of brand image and price on customer loyalty of Mie Gacoan in Lippo. The method used was a questionnaire distributed to 100 respondents. The results of the analysis show that brand image is good for price and customer loyalty. This research recommends Mie Gacoan to maintain its brand image and consider an attractive pricing strategy.