More than two decades of US purchasers essentially allowing pharmaceutical manufacturers to charge whatever they want have resulted in US companies' global leadership in biomedical sciences. President Donald Trump's proposed "most favored nation" drug pricing policies are causing a shift, whereby drugs' value stops being a national conversation and becomes a mechanical convergence of prices under US pressure and under coming threat of new, fierce competition. Presumably, the proposed policies could lead to higher drug prices in the European Union (EU), but they will hardly generate more income for US pharmaceutical companies, which might even stay away from European markets to avoid having to disclose their EU net prices, unless they develop global breakthrough competitive strategies. The proposals certainly will change EU manufacturers' investment strategies and are already accelerating the polarization of their national price negotiation goals and methods. Within this new geopolitical context, European nations' policies should be driven by a much more holistic and strategic approach to what "value" means.

ABSTRACT Considering variations in price convergence rates as indicators of economic agents’ adaptability, we examine the impact of the 2008 Great Recession on price convergence across U.S. cities. Using a combination of comparative and regression analysis, we analyse quarterly retail price data for 51 commodities across 284 cities from 1992 Q1 to 2019 Q3. The comparative analysis reveals that the speed of price convergence increased or accelerated for most commodities following the Great Recession, with the effect being more pronounced for non-perishable goods. Moreover, the gap in convergence rates between the most and least affected areas widened, as the most affected regions experienced significantly faster convergence after the recession. The regression analysis disentangles the effects of the Great Recession, revealing relatively more instances of temporary, delayed, or sustained accelerating impacts, especially for perishable and non-perishable tradable goods.

In this study, we examine how investors update their price forecasts over time within a "perturbated metric space," which incorporates behavioral influences and market friction. Classical metric structures are inadequate when the measured distance changes with perceived deviations. Therefore, a new structure is proposed in which the measured distance is modified by perceived deviations. In this context, the existence of a fixed point is guaranteed through an extended contraction inequality, and the convergence behavior of the model is analyzed using different examples. Simulations established under different linear and nonlinear update functions demonstrate that the model can reflect both slow and fast market behaviors that reach equilibrium. The proposed approach mathematically demonstrates that investors can reach a common price expectation in the long run, even with heterogeneous psychological responses.

This study aims to interdisciplinary analyze the influence of overconfidence and herding behavior on the dynamics of the Islamic capital market, as well as examine the role of sharia principles as a moderating mechanism against investor behavioral bias. This study uses a Systematic Literature Review (SLR) approach with reference to the PRISMA guidelines to identify, select, and synthesize reputable scientific articles for the 2020-2025 period relevant to the theme of Islamic behavioral finance. The results of the study indicate that overconfidence increases trading intensity and risk exposure, while herding behavior amplifies short-term volatility and convergence of Islamic stock prices, especially during periods of market uncertainty. However, sharia principles, through screening mechanisms, prohibitions on riba and gharar, and strengthening ethical values ​​such as justice and responsibility, act as moderating variables that relatively reduce the destructive impact of these biases. These findings confirm that Islamic capital markets are not completely immune to behavioral distortions, but possess a normative-institutional framework that can strengthen market discipline. This research contributes to the development of Islamic behavioral finance by offering an integration of psychological and normative perspectives to explain Muslim investor behavior and its implications for the stability and efficiency of Islamic capital markets.

Transparency, Repricing, and Price Convergence in Cancer Care.

Using weekly price data from 97 Nigerian markets, we examine how seasonal harvest timing shapes price dynamics for staple grains using a dyadic panel design. Our analysis reveals that markets operating in the same harvest phase experience faster price convergence, while asynchronous seasonal conditions slow adjustments-particularly for local rice and cowpea. In contrast, imported long-grain rice shows stable price behavior throughout the year. These results highlight the critical influence of seasonal cycles on market integration and offer fresh insights for food security strategies.

Using weekly price data from 97 Nigerian markets, we examine how seasonal harvest timing shapes price dynamics for staple grains using a dyadic panel design. Our analysis reveals that markets operating in the same harvest phase experience faster price convergence, while asynchronous seasonal conditions slow adjustments—particularly for local rice and cowpea. In contrast, imported long-grain rice shows stable price behavior throughout the year. These results highlight the critical influence of seasonal cycles on market integration and offer fresh insights for food security strategies.

This study employs the Nonlinear Autoregressive Distributed Lag (NARDL) methodology to examine how asymmetric exchange rate variations influence inflation in Nigeria, covering the period from early 1992Q1 to late 2024Q4. The theoretical framework draws from purchasing power parity (PPP) and the law of one price (LOP) principles. The research aimed to analyze both immediate and extended temporal relationships between inflation and exchange rate movements, alongside other economic indicators. Using bounds testing for co integration, the study established a sustained equilibrium relationship among the examined variables. Results reveal that exchange rate fluctuations both strengthening and weakening demonstrate minimal and statistically insignificant positive effects on inflation across both timeframes, suggesting no asymmetric relationship exists. Additionally, the analysis shows that crude oil prices, monetary supply, and lending rates maintain significant inverse relationships with inflation over extended periods, while GDP exhibits significant negative correlations with price levels. Import levels display an insignificant positive correlation with inflation and demonstrate no substantial impact throughout the observation period. Given these outcomes, the research recommends that Nigerian monetary policymakers adopt an integrated strategy emphasizing exchange rate steadiness, careful monetary supply control, and structural economic transformations to enhance local production capacity. A comprehensive approach combining inflation management and macroeconomic stability measures would facilitate sustainable outcomes

We examine the hypothesis of nonlinear rental price convergence using the relative house price index across nine major regions of the United Kingdom: East, East Midlands, London, North East, North West, South East, South West, West Midlands, and Yorkshire and the Humber. The analysis covers the period from January 1995 to May 2016. Our findings indicate that none of these regions exhibit convergence in house prices toward the national mean, clearly suggesting market segmentation within the UK property market across housing types—detached, semi-detached, terraced houses, and flats in the specified sample time period.

In the present investigation, an attempt was made to study the price convergence of cotton in selected markets before and after the integration of markets through e-NAM. The study period was divided into two phases: the Before-e-NAM phase, which spanned from January 2012 to December 2016, and the After-e-NAM phase, which extended from January 2017 to December 2021. Johansen integration, Granger causality and VECM were the tools used for analysis purposes. The results revealed that the prominence of the Adoni market declined after the e-NAM period, compared with before it. This decline may be due to farmers' preference for selling cotton to processing industries or village traders. The Government should take steps to reduce the costs borne by cotton farmers in the market, thereby helping them to achieve better price realisation. Keywords: Agricultural markets, agricultural policy, causality, market integration, price dynamics. JEL Codes: C32, Q13, Q18.

Sustainability concerns and rising consumer environmental awareness (CEA) have fundamentally reshaped competitive dynamics in modern supply chains. This study examines the influence of CEA on pricing and environmental effort competition between store brand (SB) and national brand (NB) products in a two-stage supply chain with one manufacturer and one retailer. We develop a mathematical model to evaluate strategic interactions under three power structures: Manufacturer Stackelberg (MS), Retailer Stackelberg (RS), and Vertical Nash (VN), considering two environmental investment scenarios: NB-only investment and bilateral SB-NB investment. Our findings indicate that (i) when only NB products invest environmentally, CEA increases environmental effort levels, wholesale prices, and retail prices for both brands, expanding total channel value rather than merely redistributing profits; (ii) CEA and channel competition on jointly determine optimal channel power structure, with MS dominating in differentiated markets with low CEA while RS yields superior outcomes under high competition and high CEA; (iii) retailers consistently achieve maximum profits under VN structure through balanced negotiation positions; and (iv) bilateral environmental investment causes price convergence across structures, shifting competitive focus from governance to operational excellence. By integrating environmental investment, channel power structure, and channel competition into a unified framework, this study offers managers practical decision tools for selecting optimal channel structures based on observable market conditions. Furthermore, it demonstrates how grocery retail chains and consumer goods manufacturers can transform environmental initiatives from compliance costs into value creation mechanisms that enhance both profitability and sustainability.

Pairs trading has been a successful tool for traders since its inception in the 1980s and has evolved significantly with the introduction of algorithmic, machine, and AI trading. This evolution has compli­cated the implementation of this strategy that traditionally benefits institutional or specialized investors. Despite this, the simplicity of pairs trading remains accessible, indicating potential benefits for ordinary traders. By focusing on the strategy’s fundamental principles and employing a real-time market test on a popular trading platform, the study aims to reveal its applicability and efficacy for short-term equity trading. Utilizing basic trading platform tools and Excel functions, the research aims to demonstrate a simplified approach to pairs trading. The findings will provide insights into the strategy’s effectiveness, providing non-expert traders with a viable approach to navigate today’s volatile markets through a simplified yet effective pairs trading model. The experiment’s findings highlight varying performances across different stock pairs, with notable differences in volatility. While five out of 11 pairs achieved positive returns, only two met the closure criteria within the short-term horizon, suggesting that a longer trading period and a more diversified pair’s portfolio may be necessary to fully capture expected price convergence.

ABSTRACT This paper investigates price rigidity in Sri Lanka’s service sector using monthly data from 2010 to 2023. First, an autoregressive model is employed to assess price rigidity. In the second stage, the Phillips and Sul panel club convergence method is applied to examine price convergence across service sub-sectors. The findings confirm the presence of price rigidity, while also revealing club convergence among various sub-sectors. From a policy perspective, this suggests that Sri Lanka’s monetary policy may have a limited impact on controlling service sector inflation. Consequently, the combination of price rigidity and the lack of broad-based convergence in service prices could have adverse long-term effects on economic growth.

U.S. price convergence: Faster than expected

The purpose of this article is to discuss price convergence within the Eurozone using Smooth transition models. The analysis focuses on annual data taken in logarithm. Indeed, our sample includes twelve Eurozone countries: Austria, Belgium, Portugal, Spain, the Netherlands, Italy, Luxembourg, Ireland, Greece, France, Finland and Germany. The study period runs from 1990 to 2018. These data are extracted from the OECD and Eurostat websites. The results found show that convergence is non-linear, and the speeds of adjustment are different depending on the country. This is explained by the differences in the evolution of price competitiveness and the rigidities of the labor market.

In light of the energy crisis, stricter climate policies, and disruptions from the COVID-19 pandemic and the war in Ukraine, understanding the convergence of electricity prices is essential, as it reflects market integration. This study assesses price convergence in 23 European electricity markets from January 2015 to December 2024 using monthly wholesale day-ahead prices. We employ a novel approach based on the Payne test (Payne et al., 2022), which allows for two structural breaks and accounts for cross-sectional dependence. To further explore the determinants of convergence, we apply clustering methods and logistic regression to assess the influence of cross-border interconnections, national electricity mix structures, and regional characteristics on electricity price dynamics. The findings indicate a persistently low integration of electricity market. Importantly, convergence is not strongly linked to physical interconnections between countries. Instead, differences in the structures of the national electricity mix emerge as more influential. Regional dynamics also play a role, with Northern and Central Western Europe showing greater convergence tendencies. These findings highlight structural obstacles to full market harmonisation and suggest that future policy should focus not only on infrastructure, but also on aligning electricity generation strategies and fostering regional cooperation to support a more integrated electricity market.

In order to explore the convergence effect of real estate consumption, this paper combines the hedonic price model and price index to analyze the convergence effect of real estate consumption and combines the regional economic structure to analyze the adjustment speed of housing prices in different regions. This paper finds that house prices tend to moderate as the distance from the inner ring area increases. Further, this paper adopts the panel unit root test, and the panel unit root test also believes that there is price convergence in the regional housing market. Moreover, this paper adopts two methods: separate regression and seemingly irrelevant regression to estimate the adjustment speed, and the results obtained by the seemingly irrelevant regression method are more effective and reliable. In addition, this paper proposes a convergence effect analysis model of real estate consumption. Through the simulation analysis, it can be seen that the regional economic structure and the convergence effect analysis model of real estate consumption proposed in this paper has a good effect.

Abstract This article scrutinises the volatility that has characterised European natural-gas prices in recent years, situating these fluctuations within the broader canvas of energy security and macroeconomic governance across the Union. Grounded in an exhaustive appraisal of specialised scholarship, the investigation interweaves qualitative interpretation with statistical examination of peer-reviewed data sets, thereby illuminating the constellation of geopolitical frictions, market imperfections and infrastructural rigidities that configure contemporary supply trajectories. The analysis reveals a pronounced synchronicity between price turbulence and diplomatic tensions affecting transit corridors from the Russian Federation, a dynamic that exposes latent systemic fragilities in member states whose import portfolios remain highly concentrated. Diversification initiatives—spanning liquefied-natural-gas terminals, interconnector upgrades and expanded strategic stockpiles—have softened short-term shocks yet have not yielded durable price convergence. A lasting recalibration appears contingent upon an accelerated incorporation of renewable sources, a shift expected to temper exposure to exogenous disturbances while sharpening the Union’s competitive stance within an increasingly decarbonised global economy. By tracing the intricate interplay of regulatory design, market behaviour and geostrategic contention, the study enriches ongoing debates and furnishes a textured analytical template for policy architects and future empirical inquiry.

Abstract We examine the convergence of lean hog futures and cash prices, focusing on the thinning of negotiated cash markets. Using daily Livestock Mandatory Reporting data from 2001 to 2024, we confirm significant non-convergence between negotiated and futures prices over the past two decades. Regression results show that as the share of negotiated transactions declines, the absolute basis increases, emphasizing the critical role of negotiated markets in ensuring convergence. These findings highlight concerns about the reliability of negotiated prices as a benchmark for contracts and offer valuable insights for price risk management in the hog industry.

Relevance. Since 2015, the Bank of Russia's priority target has been an inflation rate of around 4%. For this purpose, a unified state monetary policy is being implemented, which, through monetary levers, affects the amount of aggregate demand in the entire economy. The regulator does not establish convergence of the consumer price index with the target in all regions. The risk of an approach without taking into account spatial specifics is that in those regions where inflation is persistently below target, monetary policy is more stringent, and vice versa. This justifies the importance of analyzing the heterogeneity of regional inflation and finding ways to eliminate differences. The purpose is to assess and identify the causes of the heterogeneity of inflation in the regions of the Russian Federation, as well as to analyze its significance for monetary policy purposes. Objectives: to consider the significance of regional price heterogeneity and its distorting effect on monetary policy; to identify and systematize the causes; to analyze the dynamics and structure of inflation in the regions of the Russian Federation; to identify the causes of deviations from the national dynamics. Methodology. The following were used: statistical methods, the method of source analysis, the comparative method. Results. Regional heterogeneity of inflation is primarily associated with initial differences in prices for goods and services, while there is a stable interregional convergence of prices for all commodity groups. In different periods, there was a significant deviation in growth rates and price levels, which is associated with non-monetary factors, represented by both one-time shocks and regional differences. Conclusions. The degree of deviation of regional inflation from the all-Russian level has gradually decreased since the 2000s to the present, both in aggregate and broken down by commodity groups, which indicates a reduction in the contribution of regional factors in favor of federal ones, which justifies the effectiveness of establishing a single goal for monetary policy. The need for further elimination (compensation) of non-monetary factors in individual regions is substantiated.