Price Adjustment Research Articles

Strategi Bisnis Internasional Untuk Menghadapi Tantangan Ekonomi dan Politik di Tahun 2024

The year 2024 will be a year full of economic and political challenges for companies operating in international markets. Some of the factors that may affect international business are the Covid-19 pandemic, climate change, geopolitical tensions, trade protectionism, and digital transformation. This article aims to identify and analyze international business strategies that can help companies face these challenges. The strategies discussed include strategic alliances, product diversification, segmented digital marketing, flexible pricing adjustments, and international human resource management. The article also provides examples of companies that have successfully implemented these strategies in various markets. This article is expected to provide insights and inspiration for business people who want to improve their performance and competitiveness in the international market

Belief-dependent pricing decisions

How do inflation and idiosyncratic cost expectations affect firms’ price-adjusting decisions? Evidence on micro price adjustment has emphasized that price changes follow a fixed adjustment schedule, i.e., time-dependent pricing, or that they respond to the state of the economy, i.e., state-dependent pricing. We use firm expectation survey data to argue that price-adjustment decisions are also belief-dependent. While controlling for time- and state-dependent factors, we find that for the decision to adjust prices, inflation expectations do not play any role, but firms’ beliefs about their overall costs do. This highlights a robust correlation between idiosyncratic expectations and economic decisions. We show that the expectation channel is heterogeneous across firms and operates with a delay. When studying firms’ expected magnitude of price changes, the relevance of current inflation expectations is recovered apart from costs. Our findings provide empirical support for the belief-driven nature of pricing decisions and their economic implications.

Geographic links and predictable returns

AbstractUsing establishment‐level data of U.S. public firms, we construct a novel measure of geographic linkage between firms. We show that the returns of geography‐linked firms have strong predictive power for focal firm returns and fundamentals. This effect is distinct from other cross‐firm return predictability and is not easily attributable to risk‐based explanations. It is more pronounced for focal firms that receive lower investor attention, are more costly to arbitrage, and during high sentiment periods. The cross‐firm information spillovers and return predictability are also stronger for geographic peers with economic linkages and with positive information. Our results are broadly consistent with sluggish price adjustment to nuanced geographic information.

Pricing Adjustments of Investment Costs of Infrastructure Projects in the Slovak Republic: A Risk Worthy of Attention

The present article aims to highlight the risk of potential price adjustments associated with the uncertainty of market price volatility of construction activities during the implementation phase of infrastructure transport projects. Price adjustments in the conditions of the Slovak Republic are regulated by methodological guidelines, the main determinants of which are selected items of macroeconomic inflation indicators with a significant impact on the resulting volumes of financial claims for price adjustment and the total investment costs of project implementation. The impacts of the values of the macroeconomic forecast indicators in question on the volumes of price adjustments and co-financing of the public administration budget were examined based on regularly updated and published macroeconomic forecasts.

Reakcije ulagača na objave tromjesečne dobiti na Zagrebačkoj burzi

This study investigates the investors’ reactions to the publication ofquarterly earnings for companies at the Zagreb Stock Exchange. The empiricalresearch based on the event study and 409 firm-year observationsconfirms that investors react to the publication of quarterly earnings, whilethe Friedman test indicates that the reactions are most frequent for earningsannouncements from the second quarter (Q2). The occurrence of abnormalstandardized returns on announcement day suggests that the efficient markethypothesis in semi-strong form does not hold for the Croatian capital market.Moreover, there is evidence of gradual price adjustment after announcementday. Longitudinal analysis in the period 2010-2022 indicated that investors’reactions are stable and that there is no trend of growth or decline in standardizedabnormal returns. The estimated pool regression model revealedthat several firm characteristics influence the information content of quarterly earnings. The earnings surprise variable positively affects standardizedabnormal returns, while firm size and reporting of losses variables negativelyaffect standardized abnormal returns. The results of the study confirm tocapital market regulators the practical benefits of quarterly financial reporting,to firms that they can use quarterly financial reports to reduce informationasymmetry and to investors that after the quarterly earnings publicationthere is the possibility of achieving abnormal returns. The limitation of thisstudy is relatively small sample in comparison with similar studies. Findingsabout slow price adjustment after the day of earnings release might be challengedby the occurrence of other price-sensitive information. Some futureresearch might improve findings by use of additional independent variables,like management analysis and analyst forecast, which could shed new lighton the quarterly earnings information content at ZSE.

Supply, Demand and Asymmetric Adjustment of House Prices in Poland

Abstract In recent years, a lot of empirical effort has been made to search for potential nonlinear responses of house prices to various demand and supply factors. This paper examines Poland's heterogeneous regional housing market reactions to key economic variables from 2000 to 2022. The study raises two research questions related to the asymmetric adjustment of housing markets to selected demand and supply shocks. Firstly, we ask whether the house price adjustments to negative shocks are relatively minor (for example, during an economic downturn) when compared to positive shocks (prevalent in booming markets), mainly due to the loss aversion behavior theory and nominal rigidity of house prices. In particular, we test the hypothesis that house prices react more to positive impulses from supply and demand than negative ones. Secondly, we investigate whether market reactions are similar for large and small metropolitan markets. The second hypothesis posits that metropolitan housing markets adjust asymmetrically to demand and supply shocks based on the city size (population and housing stock in a given city). The study uses a nonlinear ARDL model to test the research hypotheses empirically. This paper provides new insights into the nonlinear reactions of house prices to exogenous shocks and adds to the limited empirical evidence from less developed economies.

Cost-effectiveness analysis of rimegepant for on-demand acute treatment of migraine in China.

This study assesses the cost-effectiveness of rimegepant for the on-demand acute treatment of migraine in the Chinese population, focusing on headache relief within a 2 h timeframe. Utilizing data from Phase III clinical trials on rimegepant involving Asian populations, this analysis aims to provide essential insights for healthcare decision-making in the context of migraine management in China. Employing a decision tree model, this research evaluates the cost-effectiveness of rimegepant over a concise 2 h period, exclusively considering its direct market price of 219.00 CNY per dose for on-demand, single-use treatment upon approval in China. This model is based on pain relief outcomes from a clinical trial, categorizing health outcomes by the achievement of pain freedom and alleviation from the most bothersome symptom within two hours post-administration. The study unveils that rimegepant adds 0.0018 quality-adjusted life days (QALD) with an incremental cost-effectiveness ratio (ICER) of 122,166.07 CNY/QALD. Against a daily cost-effectiveness threshold derived from the 2023 per capita GDP of China (734.45 CNY/day), rimegepant falls short of proving its cost-effectiveness. A significant price reduction to approximately 1.32 CNY per dose is required for rimegepant to be considered cost-effective within this framework. Furthermore, a series of sensitivity analyses were conducted to validate the robustness of these results. While rimegepant shows clinical efficacy in providing rapid relief from migraine symptoms, its current pricing exceeds the threshold for cost-effectiveness in the Chinese healthcare setting. This study underscores the need for price adjustments to enhance the accessibility and economic viability of new migraine treatments.

МЕТОДОЛОГІЧНІ АСПЕКТИ ФОРМУВАННЯ ЦІНОВОЇ ПОЛІТИКИ НА ПІДПРИЄМСТВІ

The article studies and systematizes the theoretical and methodological aspects of price policy management in the modern market environment, emphasizing its importance for maintaining competitiveness, profitability, and overall financial stability. It examines various definitions of "pricing policy" and proposes its interpretation as a set of managerial actions aimed at optimizing prices to meet both strategic and tactical business objectives. The study defines the methodology of pricing policy as a system of interconnected rules, principles, and procedures, that account for internal and external factors, ensuring price flexibility, adaptability, and overall effectiveness in a dynamic market environment. This research aims to enhance the existing approaches to pricing policy by introducing a cyclical methodology that allows for continuous analysis, fine-tuning, and adjustment of pricing strategies over time. The proposed model integrates key stages such as comprehensive market analysis, decision-making processes, pricing implementation, and consistent post-implementation monitoring. The study employs an analytical method, reviewing a wide range of existing literature on pricing strategies, market dynamics, and price management to identify current gaps and propose concrete improvements. The results highlight the growing importance of a flexible, adaptive pricing strategy that not only reacts to market changes but anticipates shifts, ensuring sustained competitive advantage and long-term financial stability. It has been firmly established that enterprises today require a more dynamic pricing approach, which involves regular and strategic price adjustments based on evolving competitive conditions, consumer behaviors, and fluctuating market demands. The theoretical contribution of the article lies in the refinement and further development of pricing policy management, while the practical implications provide enterprises with actionable tools and frameworks for implementing adaptive pricing strategies in real-world scenarios. The originality of the research is evident in the development of a cyclical model that enhances the responsiveness of businesses to market fluctuations and varying consumer needs. Future research may explore the application of this model in specific industries or test its efficacy across different market environments.

Public sector employment rigidity and macroeconomic fluctuation: A DSGE simulation for China.

Public sector employment in China has exhibited pronounced non-cyclical characteristics, with a recruiting scale and wage level showing limited responsiveness to economic fluctuations. The allure of civil service jobs in China has seen a significant resurgence post-COVID-19, with an observable increase in demand among educated job seekers for stable government positions amid growing economic uncertainties. This study investigates the implications of public sector employment rigidity on macroeconomic stability using a dynamic stochastic general equilibrium (DSGE) model integrated with search and matching (S&M) theory. Simulations incorporating alternative government job policies reveal that non-cyclical public employment exacerbates macroeconomic cyclical fluctuations. The low elasticity of public sector wages with respect to corporate wages fosters stable expectations among workers regarding the future value of government jobs, increasing the perceived value of the current state of unemployment. This leads job seekers to voluntarily remain unemployed, reducing labor supply to firms. Meantime, it preserves workers' bargaining power with firms, reinforcing wage stickiness and undermining the stabilizing role of price adjustments in employment. Hypothetical scenario analyses indicate that adopting a pro-cyclical wage policy for the public sector can mitigate the obstacles of wage cuts for firms, stimulate the creation of new jobs during economic downturns, and consequently reduce the magnitude and duration of rising unemployment rates. In contrast, maintaining a non-cyclical public sector wage may not prevent a continuous rise in unemployment or a worsening economic situation, even with expanded sector recruitment. This finding holds significant relevance in the context of the post-COVID era characterized by an economic slump and employment tension, providing theoretical support for establishing a transparent and flexible wage adjustment mechanism in the public sector that is linked to market conditions.

Pengaruh Daya Tarik Iklan, Kualitas Produk, Citra Merek, Serta Harga Terhadap Keputusan Pembelian Luwak White Coffee Di Toko Virdasari Desa Sitanggal Kabupaten Brebes

One of the new beverage or food industry competitions that are ready to compete and enter the market nationally is the white coffee industry. Efforts to increase promotion, price adjustments, and product quality, or need to carry out a more effective marketing strategy in accordance with the findings of market research conducted. The purpose of this study is to analyze the influence of advertising attractiveness, product quality, brand image, and price on purchasing decisions for Luwak White Coffee drinks. The quantitative approach method carried out is based on concrete research data, which is a numerical value that will be measured by statistics as a calculation test tool and related to problems, resulting in a conclusion. The population of this study was consumers of Luwak White Coffee drinks at the Virdasari store in SiDate Village. The sample was obtained from subjects 25% of the population of 332 people, obtained 83 respondents. The research instrument used is the primary data from filling out the questionnaire. The results of the study found that advertising attractiveness does not affect purchasing decisions, product quality does not affect purchasing decisions, brand image does not affect purchasing decisions, price affects purchasing decisions. Simultaneously, advertising attractiveness, product quality, brand image and price influence purchasing decisions at Toko Virdasari Desa SiDate

Dynamic Analysis of a Dual-Channel Closed-Loop Supply Chain with Heterogeneous Players and a Delay Decision

This paper considers a dual-channel closed-loop supply chain (CLSC) consisting of a manufacturer who wholesales new products through the traditional retail channel and distributes remanufactured products via a direct (online) channel established by himself. Two dynamical Stackelberg game models are developed based on the assumption that the retailer is an adaptive player, and the manufacturer is a bounded rational player who may adopt a delay decision. The existence and locally asymptotic stability of the Nash equilibrium are examined. Moreover, the impacts of key parameters on the complexity characteristics of the models and the performance of chain members are studied by numerical simulation. The results reveal that the excessively fast price adjustment speeds of the manufacturer, the larger consumers’ discount perception for the remanufactured products, and the consumers’ preference for the direct channel have a strong destabilizing effect on the Nash equilibrium’s stability. Furthermore, the delay decision implemented by the manufacturer could be a stabilizing or destabilizing factor for the system. The manufacturer will tolerate a considerable profit reduction while the retailer gains more profits when the dual-channel CLSC system enters periodic cycles and chaotic motions.

Research on Industrial Economic Development and Electricity Price Adjustment Strategy Based on Multi-Agent Game

With the deepening of the electricity market reform and the accelerating transformation of the new power system, the number of new electricity customers in the market with local development characteristics has increased. The local industrial and economic development have been affected by the ability to guide electricity prices. In this paper, using the multi-agent game based on exploring the impact of electricity price on the industrial economy, the specific optimization scheme of electricity price adjustment is proposed with the aim of improving the overall efficiency of the power grid and reducing the cost of electricity for industrial users. After the game, the overall efficiency of the electricity supplier will be increased by about 3.06 percent, and the cost of electricity used by various special industries will be reduced by about 6.86 percent to 4.48 percent. The win-win situation of the electricity suppliers’ income and the featured industries’ development can be achieved by the optimization results. As well as the cost of electricity consumption in featured industries can be reduced, and the comprehensive benefits of electricity suppliers can be improved by using the electricity price adjustment scheme after game interaction, which promotes the rational use of energy and meets the current social requirements for the green and sustainable development of the electricity industry.

Contemporaneous causality among office property prices of major Chinese cities with vector error correction modeling and directed acyclic graphs

PurposeThis study aims to investigate dynamic relations among office property price indices of 10 major cities in China for the years 2005–2021.Design/methodology/approachUsing monthly data, the authors adopt vector error correction modeling and the directed acyclic graph for the characterization of contemporaneous causality among the 10 indices.FindingsThe PC algorithm identifies the causal pattern, and the linear non-Gaussian acyclic model algorithm further determines the causal path from which we perform innovation accounting analysis. Sophisticated price dynamics are found in price adjustment processes following price shocks, which are generally dominated by the top tier of cities.Originality/valueThis suggests that policies on office property prices, in the long run, might need to be planned with particular attention paid to the top tier of cities.

Non-cooperative and Nash-bargaining game of a two-parallel maritime supply chain considering government subsidy and forwarder's CSR strategy: A dynamic perspective

In recent years, sustainable and environmental issues have increasingly raised concerns of the government and enterprises. Motivated by the environmental regulations of IMO and shippers' green preferences, new energy vessels (NEV) have been developed, and there are still many traditional fuel vessels (TFV) providing maritime transport services. Considering the reality of the shipping market, a two-parallel maritime supply chain (MSC) involving a NEV carrier, a TFV carrier, and a freight forwarder with corporate social responsibility (CSR) has been constituted. The government may encourage the NEV carrier to make green innovation (GI) by providing subsidies. Most existing research on supply chain decisions considered different supply chain power structures or coordination issues and assumed that enterprises are entirely rational. However, in practice, bargaining games between stakeholders are common. Consequently, non-cooperative game (NCG), two types of Nash-bargaining game, i.e. horizontal Nash-bargaining game (HNBG) and vertical Nash-bargaining game (VNBG) are formulated in this paper. Based on bounded rationality, we investigate the dynamic price and GI adjustment strategies of MSC participants under government subsidy (GS) and freight forwarder's CSR (FCSR) with three game patterns. Furthermore, the impacts of adjustment parameters, GS, and FCSR on equilibrium strategies and expected profits are also explored. Setting NCG as the benchmark case, we uncovered that both HNBG and VNBG help improve the NEV carrier's equilibrium green innovation level (GIL), and HNBG (VNBG) raises (lowers) equilibrium prices of two carriers (freight prices and selling prices). In addition, HNBG (VNBG) can stabilize the adjustment of GI (freight prices and selling prices). For all MSC participants, excessive adjustment strategies harm robust revenues. We also found that GS and FCSR have different impacts on the dynamic decision-makings. When adjustment parameters are in their stable regions, GS always benefits the NEV carrier and the freight forwarder. But the impact of GS on the TFV's revenues may be related to the intensity of FCSR. Moreover, the effect of FCSR on stakeholders' expected profits depends on the choice of game pattern. Finally, we revealed that the TFV carrier's CSR-sharing behavior helps improve the stability of the MSC dynamic decisions and promotes the mutual benefit of MSC participants.

Accounting for Inflation: The Dog That Didn't Bark

A fundamental flaw in the methods that academics and practitioner bodies have proposed to account for price changes is that they assume the real and monetary sectors are independent. This is the logic of classical macroeconomics pre‐Keynes/Friedman, which long since has been discredited by theory and evidence. Both economy‐wide and idiosyncratic shocks to firms’ factor prices are unlikely to be positively correlated with their financial strengths, as assumed by the price adjustment methods that have been proposed. This helps explain the historical reluctance of governments and regulatory bodies to embrace proposed accounting standards that require firms to adjust their financial statements for either general or firm‐specific price changes. For example, firms then would tend to report stronger balance sheets at a time of weakened financial positions.

STRATEGI PENGEMBANGAN DAN PENINGKATAN USAHA JAMU HERBAL TRADISIONAL (STUDI PADA WARUNG IBU PEBRI JL. PULAU OBI GANG DURIAN SINGARAJA)

The purpose in this study is to know. Strategy for Development and Improvement of Traditional Herbal Medicine Business (Study at Warung Ibu Pebri Jl. Obi Island Gang Durian Singaraja) The type of research used is a type of qualitative descriptive research. The data collection techniques used are interview techniques and documentation techniques. As for The results in this case can be seen from 2 aspects, namely: 1. For Warung Bu Ferbi, a) product quality, b) product prices, c) technology benefits, d) customer satisfaction, 2. For consumers, a) there is an improvement in product quality, b) product price adjustments, c) the use of technology in product marketing, d) there is satisfaction felt by customers with the products sold.

Impact of extended warranty service on product pricing in online direct retailers' competitive market

In this paper, we consider a model composed of the three largest online direct retailers to investigate the impact of extended warranty service on product pricing. A single-period static game model and a dynamic game model with two delays are built. We discuss the optimal game strategies and dynamic evolution game behaviors of retailers and analyze the effects of warranty period and price adjustment speed on system stability. The result shows that the optimal extended warranty price, green degree, and extended warranty period lead to the biggest profits for the retailer. From the perspective of maximum profit, retailers should give priority to extending the warranty period, followed by extending the warranty price and extending the green degree of warranty. For the sake of system stability and player performance, retailers should take recent historical data as a reference, and a relatively slow price adjustment speed is needed. To better maintain the stability of the system, the delay feedback control method is adopted which can successfully control the instability of the system.

The pricing and sourcing strategies of competitive retailers under supply disruption in the presence of liquidated damages

Supply disruptions often make retailers face stock-outs and lead to higher selling price, which forcing retailers to adopt optimal sourcing strategies to avoid disruptions and carefully adjust their pricing when disruptions occur to achieve ideal profits in competition with other peers. In this paper, we optimize the combination of pricing levels and sourcing strategy of the competitive retailer having choices of cost or stable supplier when supply disruptions occur with the consideration of liquidated damages. Based on the procurement costs difference between retailers and competitors, we studied the optimal sourcing and pricing strategies under two types of Stackelberg game and one type of Nash game. We find that the Nash Equilibrium leads lower selling prices for retailers and larger purchases from cost suppliers compared to the Stackelberg game, but with the increase of retailer’s market potential, retailers gradually depend on stable suppliers. We also find that liquidated damages can have a significant impact on retailers’ decisions. Specifically, when the probability of disruption is high, retailers will mainly rely on stable suppliers in the presence of no liquidated damages, while in the case of liquidated damages, retailers will instead rely on cost suppliers. Furthermore, as liquidated damages increase, retailers prefer to source from cost suppliers and use very high price adjustments to account for supply disruptions. Especially when the risk of disruption is high, retailers rely mainly on cost suppliers and super high price adjustments. This highlights the critical role of liquidated damages on retailers’ optimal pricing and sourcing strategies.

Deep Learning Based Method for Early Warning of Price Risk in Railroad Bulk Freight Transport with Consideration of Time Series of Comprehensive Impact Index

The aim in this study is to enhance the price competitiveness of medium- and long-haul railroad bulk cargoes in the transportation market. Efficiently triggering an early warning for railroad bulk freight price risk is crucial. This paper discusses relevant factors affecting the pricing of railway freight from four aspects, namely the macroeconomy, the transportation market, the freight owner, and the railway enterprise. We construct a comprehensive index system for generating an early warning of railroad bulk freight prices. Utilizing a collected data set of 20 factor indicators that affected prices from 2015 to 2017, we calculate a comprehensive price risk warning index using the integrated entropy weight and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. We propose a risk warning level classification method based on the k-means clustering method to determine five levels of price risk warning. Subsequently, we establish comprehensive index prediction methods for issuing price risk warnings based on the back propagation (BP) neural network and the deep learning long short-term memory (LSTM) network. We verify that the prediction performance of the deep learning LSTM network is significantly better than that of the BP neural network by combining all coal freight data from the Shanghai Railway Bureau for the period 2015 to 2017 as a case study. The proposed method can predict the level of freight price risk more accurately in the next phase, based on the status of the factor indicators, and be used to assist railway departments in developing a more reasonable freight price adjustment strategy to scientifically mitigate freight price risk.

Solutions of fractional differential equations by using a blend of variational iteration method with Sumudu transform and application to price adjustment equations

The presence of delays in a mathematical model can improve its vitality and suitability in describing several phenomena. However, in the presence of delays, nonlinear fractional differential equations are more difficult to study. This paper presents the use of a blend of variational iteration method with Sumudu transform for solving delay differential equations with Caputo derivatives of fractional variable order. Moreover, the paper introduces delays into the price adjustment equations to propose new price adjustment models with more potential for vitality and suitability. The paper assigns suitable real values to the parameters for the graphical display and comparison of the obtained solutions. The paper presents the interactions that exist among the price, demand, supply and dependence of supply and demand on the price, which can be applied to estimate the equilibrium price.