Price Determination Process Research Articles

Cross-hedging wild salmon prices

A number of studies have documented that there is a global market for salmon, in which wild and farmed salmon have a common price determination process. Recent studies report that Norwegian farmed salmon spot prices are also highly correlated with the Fish Pool salmon future contract price, indicating that the futures market can be an important risk management tool, as producers and buyers can hedge price risk. Here, we investigate whether the wild salmon prices can be cross-hedged against the Fish Pool salmon future contract, by testing whether the two prices are correlated.. If so, the Fish Pool future contracts can be used as a risk management tool for fishers and buyers of wild salmon. We find that this is the case, providing an additional link between wild and farmed salmon specifically, and between fisheries and aquaculture generally.

IMPLEMENTASI FUZZY LOGIC DALAM MENENTUKAN HARGA PERBAIKAN ALTERNATOR MENGGUNAKAN METODE MAMDANI

The alternator is the component of the generator that produces electricity. A short circuit in the alternator causes a surge in electric current so that it can cause an explosion of sparks, it is necessary to prevent an electric short circuit so that maintenance is needed to repair the alternator. Problems in making decisions also occur in companies, in transactions that are used by companies that are still done manually, in determining the price of alternator repairs it is still based on estimates and during the price determination process you have to wait for confirmation from the company's leadership so that the process takes longer and the error rate is relatively high. Fuzzy logic mamdani one method that can be used to overcome this problem. This research will get the best price quickly and minimize the error rate in pricing and adapt it to the implementation design in MATLAB. In the process of determining the repair price, several weighted criteria are required as input variables, namely alternator capacity, level of difficulty and warranty period, which will then produce output variables, namely alternator repair prices. This study aims to assist companies in determining the price of alternator repairs.

Determinants of cancer drug pricing and how to overcome the cancer premium

The high and increasing prices of cancer drugs are a public health challenge. To disrupt the cancer premium and improve patient access to cancer drugs, different action steps are indicated: more transparency on the price determination process and actual prices, value-based pricing, and "price with evidence development."

ТЕОРЕТИЧЕСКИЕ АСПЕКТЫ ЦЕНООБРАЗОВАНИЯ НА ПРОДУКЦИЮ ПО ГОСУДАРСТВЕННОМУ ОБОРОННОМУ ЗАКАЗУ

The article deals with problematic issues of pricing for products supplied under the state defense order in the Russian Federation. The author considers the problems of the concept of “efficiency of budget spending” and proposes a refined formulation, and also, based on the problems of the price determination process, the term “pricing by state defense order” is proposed.

Analysis of Changes in the Soundness of Korean Stocks after Capital Market Opening: Focusing on Role and Identification of Long-term Equilibrium Variables

This study examines and evaluates changes in the soundness of Korean stock prices by classifying the financial and global financial crises after the 1990s, when the capital market was first opened. The criteria for judging soundness include whether stock prices are determined by long-term equilibrium variables, whether there is a trend among non-long-term equilibrium variables, and whether long-term equilibrium variables of overseas stocks are identified during the Korean stock price determination process. Further, a co-integration test is performed using the VAR model which comprises the stock prices from Korea and the United States, and their long-term economic equilibrium variables. Furthermore, a transformation error correction model with a VAR type consisting of differences and cointegration errors in Korean stock prices is derived. Accordingly, the trend of long-term equilibrium variables is estimated using the Beveridge-Nelson decomposition of Korean stock prices. Furthermore, a test for its presence is performed. According to the empirical analysis conducted using monthly Korean data; the influence of the long-term equilibrium variable trend in the Korean economy tends to increase the stock prices following a financial crisis.

The study of local beef market structure in Jakarta, Indonesia

This study was implemented to determine benefit distribution from the value chain and analyze Jakarta’s local beef market’s price determination processes. The research method was a survey, and a purposive sampling technique was used to select key informants. A structured questionnaire was designed to collect the data supplemented with focus group discussion. Data were analyzed using descriptive quantitative statistics. The descriptive statistics revealed a market structure based on the elements to have many consumers and suppliers with ex-imported cattle (98 percent) and local cattle from East Nusa Tenggara and East Java (2 percent) fulfilled the demand in a year. Middlemen in the supply chain have more significant benefits than producers (feedlots and farmers) and consumers. The implication of the study is developing a business model for modern retail or butchering-based meat shops that increases the added value of local meat and benchmarking of a long beef chain efficiency at post-cutting (downstream). The development of a modern retail business model is expected to drive the shifting system sales of beef from a commodity to a product basis.

The Structure and Behavior of Cayenne Pepper Market

The sale of cayenne pepper from farmers/producers to consumers required a marketing process. The long chain of cayenne pepper marketing and market structure leading to an unfair competition and price determination were dominated by the collectors. The research objective was to determine the marketing channels, market structure and market behavior of cayenne pepper in Sekadau Regency. The determination of the sample in this research was using a non-probability sampling method by using the Slovin formula. Data were analyzed using the Herfindahl Index (IH) and Minimum Economies of Scale (MES). The results showed that the cayenne pepper marketing channels that available in Sekadau Regency were 2 marketing channels. In general, the market structure of cayenne pepper lead to an oligopoly market, market behavior showed that the highest profit and income ratio was obtained by wholesalers. The price determination process was influenced by the large traders, the existence of price discrimination practices at each level of the marketing channel, and the establishment of binding cooperation between collectors and farmers. Farmers were advised to form institutions to strengthen their bargaining position in dealing with collector traders as price determinants and not always being price takers, as happened in the marketing channel 1. Local governments were expected to create an Agribusiness Sub Terminal (STA) which can help to open the market access.

Hedonic Price Analysis of Ex-Vessel Cod Markets in Norway

AbstractDespite seafood markets becoming increasingly globalized with common price determination processes, there is increasing evidence of heterogeneity within these markets, creating differentiat...

Asymmetric price transmission in a changing food supply chain

The farmed salmon supply chain in Europe is changing. There is a growing concentration at intermediary levels in the supply chain and more product differentiation in the market. This means that different price determination processes could apply in various product sub-markets. In this study, price transmission relationships in the salmon value chain were investigated at two different product levels. Specifically, a relatively unprocessed salmon product (fresh salmon) and a more processed product (smoked salmon) were investigated since processing costs might have a significant impact on a vertical price linkage. A threshold cointegration model was applied to estimate the price transmission between the Norwegian export market and the retail markets of France and Spain. The results indicated a price transmission relationship along the fresh salmon chain in both markets; but not along the smoked salmon chains in either market. Furthermore, for the fresh salmon value chain, asymmetric adjustment was observed in both markets.

Malem Songolikur: Menyingkap Makna Harga Dibalik Tradisi Lelang Bandeng di Gresik

The purpose of this study is to reveal the determination process and the meaning of prices implemented through the milkfish auction tradition in Gresik. This research is qualitative using an ethnographic approach, data collected through interviews and participant observation. The results showed that the price determination process used the Rohmatan Lil ‘Alamin principle. The researcher found three meanings of the first price, self-esteem; second, the form of reward; third, the form of obedience to the Creator. Prices are not always matched with material or nominal. Price has a different meaning through the perspective of the Gresik’s.
 Keywords: Milkfish Biding; Fix Cost Price; Etnography.

Urban Vibrancy: An Emerging Factor that Spatially Influences the Real Estate Market

Urban vibrancy is defined and measured differently in the literature. Originally, it was described as the number of people in and around streets or neighborhoods. Now, it is commonly associated with activity intensity, the diversity of land-use configurations, and the accessibility of a place. The aim of this paper is to study urban vibrancy, its relationship with neighborhood services, and the real estate market. Firstly, it is used a set of neighborhood service variables, and a Principal Component Analysis is performed in order to create a Neighborhood Services Index (NeSI) that is able to identify the most and least vibrant urban areas of a city. Secondly, the influence of urban vibrancy on the listing prices of existing housing is analyzed by performing spatial analyses. To achieve this, the presence of spatial autocorrelation is investigated and spatial clusters are identified. Therefore, spatial autoregressive models are applied to manage spatial effects and to identify the variables that significantly influence the process of housing price determination. The results confirm that housing prices are spatially autocorrelated and highlight that housing prices and NeSI are statistically associated with each other. The identification of the urban areas characterized by different levels of vibrancy and housing prices can effectively support the revision of the urban development plan and its regulatory act, as well as strategic urban policies and actions. Such data analyses support a deep knowledge of the current status quo, which is necessary to drive important changes to develop more efficient, sustainable, and competitive cities.

Aplikasi Pendukung Penetapan Harga Produk Untuk Usaha Mikro, Kecil, dan Menengah (UMKM) Berbasis Web Responsive

This study aims to create a design for supporting pricing applications in Micro, Small and Medium Enterprises (MSMEs). Determination of product prices is an important thing, one of them from the aspect of costs so that products sold can provide benefits for the company. In pricing, companies must pay attention to production and nonproduction costs, in general, there are 4 main variables that must be included in the calculation of product prices namely Raw Material Costs, Labor Costs, Fixed Factory Overhead Costs and Variables, and Nonproduction Costs. In order for research to be directed, then the method of developing an Extreme Programming system is object-oriented, it can be done with a small team, and interactions that are intent- live with the user can maximize the development of an effective and efficient system. Stages of Extreme Programming, Planning, Design, Coding, and Testing. It is expected that with the pricing application the company can maximize profits through the price determination process. Based on the results of the Blackbox Testing test, all functional systems on the application work well.

On the study of a rational expectation model with lagged endogenous variables

ABSTRACTA rational expectation model with lagged endogenous variables is used to describe how the current price level is influenced by the expectation and historic price level. The time domain of the rational expectation model is extended to a complex discrete time domain which is a collection of points along the real number line. The rational expectation model with lagged endogenous variables is solved in multi-dimensional cases where the agents possess multiple assets, and the current price of each asset is related to the expected price and historical prices. An example about price determination process of storable commodities is given to illustrate the advantages of the rational expectation model on isolate time domain.

LIBOR, foreign exchange and the illusion of liquidity

The London Interbank Offered Rate (LIBOR) and foreign exchange (FX) controversies revealed that prices and benchmarks related to money and currencies were highly susceptible to manipulative and collusive practices. The reform process since has strived to ensure that market participants and end-users can rely on a fair price determination process. Put differently, the emphasis has been on the price aspects of LIBOR and FX. When studying market liquidity, however, the price always needs to be put into a broader context. This paper uses two case studies to illustrate how ignoring other dimensions of market liquidity, such as volume and speed, can result in misleading assessments of the state of the market. At worst, it can lead to, and perhaps even sustain, an illusion of liquidity. This is of particular relevance for over-the-counter (OTC) markets, which ultimately depend on human relationships and trust.

Housing Vulnerability and Property Prices: Spatial Analyses in the Turin Real Estate Market

In the literature, several vulnerability/resilience indicators and indexes are based and assessed by taking into account and combining different dimensions. Housing vulnerability is one of these dimensions and is strictly related to the buildings’ physical features and to the socio-economic condition of their occupants. This research aims to study housing vulnerability in relation to the real estate market by identifying possible indicators and spatially analyzing their influence on property prices. Assuming the city of Turin and its territorial segmentation as a case study, spatial analyses were performed to take into account the presence of spatial dependence and to identify the variables that significantly influence the process of property price determination. The results of this study highlighted the fact that two housing vulnerability indicators, representative of fragile buildings’ physical features, were spatially correlated with property prices and had a significant and negative influence on them. In addition, their comparison with two social vulnerability indicators demonstrated that the presence of economical buildings and council houses was spatially correlated with the presence of people with a low education level. The results of the spatial regression model also confirmed that one of the social vulnerability indicators had the highest and most negative explanatory power in the property price determination process.

Domestic landings and imports of seafood in emerging economies: The Brazilian sardines market

Seafood imports have increased strongly in emerging economies during the last decades. However, the impacts of increased imports on price determination process, local fishers' income and fish stocks have received limited attention. This paper presents a market integration and price transmission analysis for the Brazilian sardine market, comprising the fresh and canned sardines segments, to shed light on these issues. Imports currently supply about one-half the sardines in the Brazilian market, and even more when the domestic fishery landings are low. The results suggest not only a fully integrated market but also a complete price transmission in both sardine value chains. Hence, import competition with domestic fisheries limit price increases in the domestic fishery and reduce fishers' income and fishing effort. However, the canneries, consumers and fish stocks are better off.

The Empirical Study on Market Liquidity and Determinants of Sukuk in Malaysia

The purpose of this study is to examine the relationship between market liquidity and the determinants of Sukuk in Malaysia’s perspective. This study is also to determine whether the Sukuk market is also reacting as similar to the bond market regarding market liquidity. A sample of 933 issued Sukuk in Malaysia is collected from secondary data of Bond Pricing of Agency Malaysia (BPAM) and Bond Info hub of Bank Negara Malaysia from the period of 2005 to 2015. The sample of issued Sukuk is based on Malaysian Ringgit denominated currency and these Sukuk are actively traded in the secondary market of Malaysia. The sample comprises five (5) sectors inclusive government, quasi-government, finance; Asset-Backed Securities (ABS) and corporates. Market Microstructure Theory is using on the impact of numerous market frictions in the market structure and individual behaviour during the price determination process in this study. The empirical results of this study show that age and maturity have a positive relationship with Sukuk market liquidity and they are significantly correlated. The findings of this study could assist investors in the making decision by choosing the right type of Sukuk structure and by utilising the suitable Sukuk determinants at the right time. From the analysis, the researcher concludes that investors prefer to hold their securities until meeting its maturity rather than traded it in the secondary market. Further research should be done by incorporating other liquidity factors such as the liquidity risk, yield spread and price in order to have more input to the study on liquidity since the Sukuk market is increasing in demand and becomes more sophisticated as the financial market is moving towards digitalisation and electrification.

Sustainability and Ethics in the Process of Price Determination in Financial Markets: A Conceptual Analysis

This paper explores how financial markets can support the practical applicability of Sustainability Development Goals (SDGs) principles and why ethics has a central role in this process. The efficient market hypothesis holds that a financial market is efficient when prices equate value. Extending this assertion to sustainability, it can be said that prices should become equal to sustainable value. Prices can be regarded as the addition of the present value of future expectations and the impact of short-term volatility. This property parallels the existence of two different types of shareholders: long-run shareholders, who are often involved in the management of the corporation, and short-run shareholders, who usually apply speculative strategies to the choice of their investments. The SGDs’ principles are logically thought for a long-run horizon. Their impact on corporate value stems mainly from the changes they introduce in environmental and social risk, apart from becoming a potential source of innovation. Nevertheless, their effects on the short-run perspective can be very small unless either market traders assume sustainability as a goal of their own or the sustainability effects are incorporated into prices. We hold that the second issue is safer and preferable. Both involve ethics: the former would require that investors perform any trade from an ethical perspective. The latter needs that the ethical emphasis is placed on the process of price determination. The achievement of this goal demands a wide display of information on sustainability, placed together with financial information, and appropriate regulation. Its analysis considers the principles of behavioral finance.

Microeconomic Analysis of Bitcoin Pricing and Establishing Theoretical Conditions for the Possibility of a Bubble or a Crash

Crypto currencies are becoming popular on the digital platform as a medium of exchange and more as a store of value, specifically to satisfy the speculative motive. Bitcoin is one such and the trendiest crypto currency which is in news due to considerable volatility observed in its price in recent times. This paper began by examining the history of bitcoin and questioning whether the volatility in its price is yet another bubble in the making. After distinguishing bitcoin from traditional currencies, this paper examined the process of bitcoin price determination from a pure microeconomic point of view using the popular demand and supply cross diagram as a tool and deduction as a methodology and established theoretical conditions that can lead to a bitcoin price bubble or a crash. Here, the concept of price elasticity of demand and supply is brought into play to understand stable and unstable equilibrium. The paper also debated about the possibility of valuation of bitcoin and warned the governments and investors about the damaging potential of this currency in upsetting their goals with reference to regulation and investment returns, respectively.

Market integration in the crustaceans market: Evidence from Germany

In this paper the price dynamics and the degree of market integration in the German crustaceans market is examined using cointegration methods. The study focuses on wild caught cold water shrimp, farmed warm water shrimp as well as lobster and derives implications for the fisheries sector. In the analysis, both the import market and the retail market price reactions are distinguished. Therefore, it is evaluated how price changes affect competing commodities within and between the value chain of a given crustaceans commodity. Evidence of partial market integration is found for all species under study at the import level while at the retail level; there is weak evidence of perfect market integration. At the import-retail level linkages, shrimp markets are partially integrated, while the lobster market is fully integrated. Consequently, it can be concluded that the species under consideration are substitutes. Price determination processes for the shrimp markets vary with the level of the value chain. The results imply that the wild and farmed crustaceans markets are interacting through substitution effects. Hence, the markets have the capability to shield volatile and rising prices that would emanate from supply shocks. Overexploited wild caught species would have the potential to recover and the competing farmed species could expand to at least insure against rising prices due to supply shortage. Thus, alternative fisheries management and development strategies should consider competing species, at least from an economic perspective.