Price Setting Research Articles

The centralised data envelopment analysis model integrated with cost information and utility theory for power price setting under carbon peak strategy at the firm-level

The post-pandemic economic rebound has accelerated power demand. However, in a power generation system dominated thermal power plants, implementing the carbon peak strategy induces a contradiction between power supply and demand. This gives rise to the issues of the rational power allocation. To address this issue, based on enterprise micro-data, this study develops a model that allows power allocation across industrial enterprises to maximise their output. The ladder price is used for power redistribution seeking to ensure efficiency and fairness of the power allocation. Then, the utility theory is used to explore the effects of changes in the power use under different ladder prices. The paper relies on the unique dataset for Chinese enterprises. The results show that the proposed model renders power re-allocation among the enterprises (31 % of enterprises should reduce their power use, 32 % whereas should increase their power use by more than 50 %). By including the power cost in the model, significant differences were discovered between the optimal power use of three ladder price levels. This study provides recommendations for power allocation and the use of the ladder prices.

Price sensitivity of students to their favorite applications and programs

Purpose: The aim of the article is to determine the price sensitivity of students to their favorite 6 applications and programs. Design/methodology/approach: The main research problem is: What is the price sensitivity of students to their favorite applications and programs? The study was conducted using the quantitative method, the survey technique on students in Krakow (Poland) in May and June 2023. The research sample was 424 people. Findings: Every second student would not give up Messenger if it was paid at an affordable price, every third from Instagram and Spotify, every fourth from YouTube, and every fifth from TikTok. They would be less willing to pay, for example, for Facebook. Every third student would be willing to pay up to PLN 20 per month for their favorite application or program (above this amount, they would rather not use it than pay). Every fifth respondent indicated PLN 30 per month as the upper limit. The vast majority of students (71%) declared that if the respondents' favorite application or program was paid at an affordable price, they would continue to use it. One in four respondents said they would look for a replacement (25%). Research limitations/implications: Studying price sensitivity in the new technologies sector is a complex problem and the research presented in this work covers only selected aspects in this field. Practical implications: The research results show young people's declarations of price changes in the new technologies sector. Could raising the prices of their favorite apps cause them to use them less? The new technologies sector can use the research results to set prices for selected applications or programs. Social implications: The research conclusions can be used to determine whether price manipulation for new technologies can result in less use of them by young people, and thus have a positive social effect. Originality/value: The study provides insights into the willingness of students to pay for these services and identifies specific preferences and behaviors regarding the use of paid and free versions of applications. The research results can be used by owners of online platforms, marketers, educators and students. Keywords: price elasticity of demand, consumer price sensitivity, willingness to pay, new technologies, social media. Category of the paper: research paper.

ЦІНОУТВОРЕННЯ ЯК ІНСТРУМЕНТ МАРКЕТИНГОВОГО ПЛАНУВАННЯ

Pricing plays a pivotal role in marketing planning, shaping the success and profitability of businesses. This annotation explores the multifaceted nature of pricing as a strategic tool in marketing, highlights various pricing strategies employed by companies. Cost-based pricing involves setting prices based on production costs and desired profit margins. Competitor-based pricing entails benchmarking prices against rival products to maintain competitiveness. Customer-based pricing focuses on determining prices based on customer preferences, perceived value, and willingness to pay. Examining these pricing approaches allows businesses to identify the most suitable strategy for their products or services. Factors such as production costs, market demand, competition, and target customer segments need to be carefully analyzed when making pricing decisions. Effective pricing strategies should strike a balance between attracting customers, maximizing revenue, and achieving profitability. By understanding pricing dynamics, businesses can optimize their marketing efforts. They can align pricing with their overall marketing objectives, differentiate their offerings, and create perceived value for customers. Moreover, pricing strategies can be adapted to accommodate changes in market conditions, customer preferences, and competitive landscapes. The research shows that the right pricing can have a significant impact on the success of a business. Improper pricing may result in loss competitiveness, low profitability or even losses. Therefore, choosing an appropriate pricing strategy is an important task for managers and marketers. When choosing a pricing strategy, companies must consider many factors, such as production costs, raw material costs, competitive prices, consumer preferences, elasticity of demand, and others. Analysis of these factors helps to establish optimal prices that satisfy the needs of customers, ensure profitability and maintain the competitiveness of the company. Additionally, it is important to note that pricing strategies are not static and may change over time.

Striving for Affordable Medicine: Lessons in Price Negotiation Learned from the United Kingdom.

In August 2022, the Centers for Medicaid and Medicare Services (CMS) were granted unprecedented power to negotiate the price of some pharmaceuticals covered under Medicare Part D of the Inflation Reduction Act (IRA). Price negotiation was previously banned by Medicare Part D legislation but is not a new idea globally. For decades, nations like the United Kingdom (UK) have price set or negotiated the cost of medicine with manufacturers, fine tuning their methodologies, with mixed success. The United States (US) can learn from other countries' work to develop a methodology capable of achieving increased affordability and patient access to medicine. Secretary Xavier Becerra should consider the UK's policy approach, which facilitates early and transparent collaboration with key stakeholders like patient groups and industry but limits flexibility in evidence submission, to help the US minimize unintended damage to patient access to new medicines and achieve the IRA's goals.

Penetapan Harga Jual pada Agribisnis Ayam Petelur Sumber Bungur dengan Metode Full Costing berdasarkan Teori Penetapan Harga dalam Islam

This research aims to determine price determination in the Sumber Bungur Laying Chicken Agribusiness in terms of the full costing method and price setting theory in Islamic economics. This research uses a quantitative descriptive research approach using interview, observation and documentation techniques. Price determination for the Sumber Bungur Laying Chicken Agribusiness is carried out by calculating the cost of production (HPP) using the full costing method, which uses markup pricing. Determining HPP is done by adding up raw material costs, direct labor costs, variable factory overhead costs, and fixed factory overhead costs. Apart from that, the selling price determination at the Sumber Bungur Laying Chicken Agribusiness is in accordance with the principles of price setting in Islamic economics, related to fairness, justice, and adjustment to conditions of supply and demand in the market.
 Keywords: Islamic Price Determination, Determining Selling Prices, Chicken Agribusiness

Bitcoin Price Prediction: ARIMA & SARIMA vs Linear Regression

This paper illustrates the working process of predicting the Bitcoin price applying ARIMA, SARIMA and linear regression. Since more and more machine learning models were developed and tested in the financial field, these three models are selected to examine their reliabilities. In this study, three methodologies have been used for the Bitcoin predictions under the data set of Bitcoin historical prices. With the help of python notebook, order (1, 1, 1) and seasonal order (0, 1, 1, 12) were applied to the predictions in ARIMA and SARIMA respectively. In terms of linear regression, this paper used two independent variables including historical data and trading volume to predict the Bitcoin prices. It was discovered that the predictive graph for these three methodologies can match the actual value well, and linear regression performs the best. Considering the rapid development of machine learning methods, adopting alternative methods deserve in-depth investigations.

Key Features of Smart Medication Adherence Products: Updated Scoping Review.

Older adults often face challenges in self-managing their medication owing to physical and cognitive limitations, complex medication regimens, and packaging of medications. Emerging smart medication dispensing and adherence products (SMAPs) offer the options of automated dispensing, tracking medication intake in real time, and reminders and notifications. A 2021 review identified 51 SMAPs owing to the rapid influx of digital technology; an update to this review is required. This review aims to identify new products and summarize and compare the key features of SMAPs. Gray and published literature and videos were searched using Google, YouTube, PubMed, Embase, and Scopus. The first 10 pages of Google and the first 100 results of YouTube were screened using 4 and 5 keyword searches, respectively. SMAPs were included if they were able to store and allowed for the dispensation of medications, tracked real-time medication intake data, and could automatically analyze data. Products were excluded if they were stand-alone software applications, not marketed in English, not for in-home use, or only used in clinical trials. In total, 5 researchers independently screened and extracted the data. This review identified 114 SMAPs, including 80 (70.2%) marketed and 34 (29.8%) prototypes, grouped into 15 types. Among the marketed products, 68% (54/80) were available for consumer purchase. Of these products, 26% (14/54) were available worldwide and 78% (42/54) were available in North America. There was variability in the hardware, software, data collection and management features, and cost of the products. Examples of hardware features include battery life, medication storage capacity, availability of types and number of alarms, locking features, and additional technology required for use of the product, whereas software features included reminder and notification capabilities and availability of manufacturer support. Data capture methods included the availability of sensors to record the use of the product and data-syncing capabilities with cloud storage with short-range communications. Data were accessible to users via mobile apps or web-based portals. Some SMAPs provided data security assurance with secure log-ins (use of personal identification numbers or facial recognition), whereas other SMAPs provided data through registered email addresses. Although some SMAPs were available at set prices or free of cost to end users, the cost of other products varied based on availability, shipping fees, and subscription fees. An expanding market for SMAPs with features specific to at-home patient use is emerging. Health care professionals can use these features to select and suggest products that meet their patients' unique requirements.

Practices of determining dowry and pisuke prices in Lombok

The objective of this study is to comprehend and define the notion of accounting methods in establishing dowry and pisuke pricing among the residents of Kateng Village, located in the West Praya District of Central Lombok Regency. This study employs ethnomethodology, a research approach that utilizes analytical techniques such as indexicality, reflexivity, contextual action, and the presentation of common-sense knowledge regarding social systems. The research employs an interpretive paradigm as its underlying framework. This study employs original data acquired through interviews and observations. This study suggests that accounting processes for estimating dowry and pisuke prices are conducted using four methods: referencing prices, considering social strata, assessing social position, and evaluating personal qualities. These approaches hold significance as symbols of honor and commitment, self-worth, a representation of family values, and the unification of two families. The determination of dowry and pisuke pricing is associated with traditional accounting theory, the distinction between price setter and price taker, and the presence of bargaining, as observed in a market. The results of this study should be tailored to accommodate the talents of individuals. Put simply, women should thoroughly examine the background and socioeconomic status of their possible spouses.

A generalization of the Taylor's theorem

In mathematics, Taylor's theorem is a formula that uses the information of a function to describe its proximity to a point. If the function is smooth enough, the conductive values can be used to construct a multiform to approximate the the function in the neighboring area of that point, which can even be extended to the convergence radius of the scale. Taylor’s theorem also gives the deviation between this multiform and the actual function value. The essay includes the proof and application of Taylor’s theorem and the Taylor’s theorem in multivariate functions. Special functions are set with unknown coefficients to deduce the Taylor’s theorem. Specific questions are solved by using the Taylor’s theorem as some examples. Taylor's theorem is frequently applied in real-world settings to solve problems. For instance, in engineering, it can be used to build a variety of numerical simulations and optimization algorithms. In physics, it can be used to analyze data from physical experiments. In finance, it can be used to manage risk and set prices for financial transactions.

SEQUENTIAL PRICE SETTING: THEORY AND EVIDENCE FROM A LAB EXPERIMENT

AbstractIn the Varian (1980; American Economic Review 70(4) (1980), 651–59) model of price competition, a change from simultaneous to sequential price setting dramatically changes equilibrium strategies, and in the unique symmetric, equilibrium prices are pushed up to the monopoly price. There also exists an asymmetric equilibrium with lower average prices. Our main contribution is to test these predictions in the laboratory. Our data strongly support the qualitative model predictions. However, a fraction of players set low prices in accordance with the asymmetric equilibrium, which is puzzling. We show that the puzzle to a large extent can be resolved by introducing competitive preferences in the model.

Profit-based unit commitment models with price-responsive decision-dependent uncertainty

Highlighting the increasing importance of demand elasticity in electricity markets and its impact on the revenues of power generating companies, this paper proposes new profit-based unit commitment models that effectively capture the uncertainty in the willingness-to-pay the price set for the elastic demand. To develop a new revenue scheme for power generating companies, we use a coupling function to model the willingness-to-pay response of the elastic demand as a decision-dependent source of uncertainty. The coupling function reflects how power generating companies’ pricing decisions may influence the market appeal (i.e., the buyer’s willingness-to-pay) and how it affects their revenues. The optimization models are stochastic mixed-integer nonlinear problems with nonconvex continuous relaxations and are not amenable to a numerical solution in their original forms. We devise a convexification reformulation method and derive valid inequalities to strengthen the formulation. We propose a learning framework to parameterize the willingness-to-pay functions and the concept of the value of the decision-dependent solution to quantify the value of the uncertainty modeling approach. Numerical tests on power systems of various sizes, demand portfolios, and price elasticity levels show (i) how the valid inequalities speed up the solution process, (ii) the benefits of properly modeling decision-dependent uncertainty and demand elasticity, and (iii) how the incorporation of decision-dependent uncertainty in demand elasticity can change the power generating companies’ decisions and revenue estimation.

Pendampingan Perhitungan Harga Pokok Produksi Dan Harga Jual Pada Rumah Tempe Indonesia

One of the problems that is often faced by UMKM is the calculation of production time which makes management look bad. The calculation of the cost of production is very helpful in determining the selling price of a product, so the company must calculate the cost of production first. After the cost of production is obtained, the company can determine the selling price of the products sold to customers. Determining the selling price that is not right can cause losses if the selling price is too low and cannot cover the production costs that have been incurred . The location that is the object of this review is Rumah Tempe Indonesia. This research is expected to provide an overview of the calculation of the cost of goods manufactured and the determination of the selling price correctly in accordance with applicable accounting rules. Rumah Tempe Indonesia (RTI) is one of the UMKM engaged in the tempe processing industry which is owned by KOPTI Bogor Regency. The results of this review indicate that the cost of production of tempe bacem according to Rumah Tempe Indonesia is not in accordance with cost accounting standards so that the selling price is set lower than the selling price calculated according to cost accounting standards. The calculation of the cost of production carried out by Rumah Tempe Indonesia is not yet detailed, so the profit generated is not maximized. The calculation of the selling price used by Rumah Tempe Indonesia is also not correct because the price set is in accordance with market competition prices while the selling price calculation is according to accounting standards which is higher than the calculation of Rumah Tempe Indonesia. Keywords: Cost, Cost of Production, Selling Price

Strategi Penentuan Harga Jasa Pendidikan

Setting prices is a crucial step in ensuring the operational viability of a learning institution. The price of educational services will inevitably be impacted by the current boom in the education sector, which is marked by offers of numerous programs and more facilities. The purpose of this study is to learn more about how much educational services cost. Using books, journals, and other literature as well as reading sources and references from the internet, a qualitative research methodology was employed (library research). The research's findings led to the conclusion that pricing strategies for educational services can be based on value (value-based pricing), competition (competition-based pricing), or cost (cost-based pricing).

Lawsuit Regarding Sale and Purchase (Case Study Against PT Antam and Budi Said Crazy Rich Surabaya)

Buying and selling is an activity that is carried out by many people, but in the transaction process it must be carried out with the consent of both parties, so that the sale and purchase is only valid according to law. This can also be interpreted in the buying and selling of gold between Budi Said as the buyer and also PT Antam as the gold provider. However, the problem was that when PT Antam employees sent gold to Budi Said, it was explained that the gold received was not in accordance with the weight agreed upon at the beginning. This made Budi Said file a lawsuit against PT Antam for the discrepancy between the gold he received and the amount agreed upon and promised together. The lawsuit was accepted by PT Antam for violating the law, even though clarification should have been made and employees were also responsible. If we look at it from the other side, then when Budi bought gold from PT Antam which he promised, namely through Eksi who was one of PT Antam's employees, this was explained by PT Antam that they had never sold gold below the price set in the company profile. , but in fact the agreement made by Eksi with Budi was far below the normal price or that explained by PT Antam.

STRATEGI PEMASARAN UNTUK MENINGKATKAN PENJUALAN COFFE DI GHONA COFFE KOTA JAMBI

This thesis aims to find out how marketing is to increase coffee sales at Ghona Coffee Jambi City. This study uses a qualitative approach by using the results of interviews and accurate data sources. From the results of research that has been carried out by researchers, in this case the following conclusions can be drawn: (1) The marketing strategy to increase sales at Ghona Coffee is dominantly using the 4 p marketing mix which includes product, price, promotion, and location or place . The products used at Ghona Coffee always prioritize the quality of goods and services.The price set at GhonaCoffe is fairly economical, friendly in the pocket, right for students and can be reached by all people. Promotions are carried out at GhonaCoffe by disseminating information about GhonaCoffe because more customers will affect sales levels and increase sales at GhonaCoffe. And as for the implementation of the location strategy carried out at Ghona Coffee, it can be said that it meets the criteria.(2) There are two obstacles in increasing the sales of GhonaCoffe regarding the product and also the location. Where the food products offered at Ghona Coffee can be said to be minimal in food products, while the location of Ghona Coffee is very narrow for parking vehicles.(3) GhonaCoffe's efforts in increasing sales are twofold, namely products and locations where GhonaCoffe's products will provide the best and also meet consumer demand, and GhonnaCoffe will provide a good parking space for vehicles.

RWD93 Quantifying Trends in Price Setting for Traditional and Innovative Advanced Rare Disease Therapies

RWD93 Quantifying Trends in Price Setting for Traditional and Innovative Advanced Rare Disease Therapies

Review of the Calculations Cost of Production and Selling Price in Rumah Tempe Indonesia

One of the problems that is often faced by MSMEs is the calculation of production time which makes management look bad. The calculation of the cost of production is very helpful in determining the selling price of a product, so the company must calculate the cost of production first. After the cost of production is obtained, the company can determine the selling price of the products sold to customers. Determining the selling price that is not right can cause losses if the selling price is too low and cannot cover the production costs that have been incurred. The location that is the object of this review is Rumah Tempe Indonesia. This research is expected to provide an overview of the calculation of the cost of goods manufactured and the determination of the selling price correctly in accordance with applicable accounting rules. Rumah Tempe Indonesia (RTI) is one of the MSMEs involved in the tempe processing industry which is owned by KOPTI Bogor Regency. The results of this review indicate that the cost of production of tempe bacem according to Rumah Tempe Indonesia is not in accordance with cost accounting standards so that the selling price is set lower than the selling price calculated according to cost accounting standards. The calculation of the cost of production carried out by Rumah Tempe Indonesia is not yet detailed, so the profit generated is not maximized. The calculation of the selling price used by Rumah Tempe Indonesia is also not correct because the price set is in accordance with market competition prices while the selling price calculation is according to accounting standards which is higher than the calculation of Rumah Tempe Indonesia

Price-Based Demand Response: A Three-Stage Monthly Time-of-Use Tariff Optimization Model

In this research, we developed a three-stage monthly time-of-use (TOU) tariff optimization model to address the concerns of confusing time period division, illogical price setting, and incomplete seasonal element consideration in the previous TOU tariff design. The empirical investigation was conducted based on load, power generation, and electricity pricing data from a typical northwest region in China in 2022. The findings indicate the following: (1) In producing the typical net load curves, the employed K-means++ technique outperformed the standard models in terms of the clustering effect by 4.27–26.70%. (2) Following optimization, there was a decrease of 1900 MW in the maximum monthly abandonment of renewable energy, a decrease of 0.31–53.94% in the peak–valley difference, and a decrease of 2.03–17.27% in the monthly net load cost. (3) By taking extra critical peak and deep valley time periods into account, the average net load cost decreased by 10.36% compared with conventional peak–flat–valley time period division criteria.

Exchange rate pass-through to export prices in China: does product quality matter?

ABSTRACT Using a unique data set of Chinese firm-product-destination level export on the period 2000–2013, this paper investigates the effect of real exchange rate changes on multi-product firms’ price setting decisions on export product with heterogeneous levels of quality. We find less exchange rate pass-through (ERPT) for higher-quality products. Meanwhile, the ERPT is higher when the Renminbi (RMB) appreciates than when it depreciates, and product quality has a greater effect on the ERPT during RMB depreciation. Furthermore, higher distribution costs lead to more pricing-to-market (PTM) and less pass-through. This heterogeneity in ERPT is also robust in different samples and econometric specifications. Combined with the existing studies on the effects of firm heterogeneity on the ERPT, our study helps piece together a more complete picture of the heterogeneity across firms in their reaction to export prices when the exchange rate changes.

A mixed integer programming model for vaccine pricing within a group purchasing organization

Background:Setting prices for life-saving medical or pharmaceutical products needs to consider multiple factors, e.g., affordability and health outcomes across different populations. When a group of buyers (e.g., countries) combine their purchasing power (e.g., via a group purchasing organization), the average procurement price decreases in the total volume. Decisions about what price to then charge to each member in a group are particularly challenging, considering the disparities in their respective ability and willingness to pay. Tiered pricing can be an effective way to set prices for a group of buyers, but its performance needs to be quantified and evaluated. Methods:We modeled the decision of setting prices of a medical product (for example, a vaccine) for a group of buyers using a mixed integer programming model, considering the buyers’ ability and willingness to pay. The objective is to minimize the unit price disparity adjusted by the buyers’ willingness to pay, subject to the constraint that the prices decrease in the buyers’ ability to pay. We also developed an analogous subsidy allocation model that applies if the group receives philanthropic donations to support procurement. The models were illustrated with two case studies based on the Bacillus Calmette-Guerin (BCG) vaccine procurement by Gavi, the Vaccine Alliance and Pan American Health Organization, and the performances of uniform, tiered, and differentiated pricing schemes were examined. Results:The adjusted unit price disparity is non-increasing in the number of price tiers allowed. The biggest decrease in the adjusted price disparity occurs when switching to two-tier pricing from uniform pricing. Tiered pricing performs better in the Gavi group compared to the PAHO group, in part because the ability to pay and willingness to pay have a higher degree of rank correlation within the former group of countries. Conclusions:This work provides a model for price-setting (subsidy allocation) decisions for a group of buyers and provides a quantitative comparison of different pricing schemes. The results of the case studies suggest that the performance of tiered pricing depends on various factors, including the disparities in the ability and willingness to pay across the buyers. Funding:This research has been supported in part by the Center for Health and Humanitarian Systems, the William W. George endowment, and the following benefactors at Georgia Tech: Andrea Laliberte, Richard Rick E. and Charlene Zalesky, and Claudia and Paul Raines.