Price Setting Research Articles

Carrot or stick? A study on “bid-rigging norms” by simulation: inducing factors and deterring measures

This study aims to analyze the structure of the emergence and maintenance of the cartel mechanism as an informal organization and the measures to deter bid-rigging. We propose an agent-based bid-rigging norms model and validate it with a mathematical model. We clarify that the auction system primarily used in public procurements has a structure inducing bid-rigging in which meta-norms are unnecessary. We also show that punishment for deviation from bid-rigging plays a critical role in establishing and maintaining it. In addition, we explore the authorities' actions to deter bid-rigging by examining three measures: the flexible setting of reserve prices, the administrative surcharge and leniency system under the Antimonopoly Law, and applying the bid-rigging offense under the Criminal Law. As a result, the study reveals that the administrative surcharge and the leniency system are insufficient to deter bid-rigging, and the adequate measures are the flexible setting of reserve prices and applying the bid-rigging offense. Furthermore, the simultaneous implementation of these three measures more effectively enables deterring bid-rigging.

The risk premium in New Keynesian DSGE models: The cost of inflation channel

We study the role of the cost of inflation channel in determining the risk premium in a (nonlinear) New Keynesian DSGE model. Relying on a Calvo (or Rotemberg) price setting, we show that while the cost of inflation channel generates the desired term premium moments, it suffers from nontrivial, counterintuitive approximation errors in the price dispersion function. In addition to documenting the issues, we propose ways to alleviate them, including a quasikinked demand function as a risk-generating mechanism.

Strategi Dinas Kelautan, Perikanan Dan Ketahanan Pangan Dalam Peningkatan Ekonomi Kelompok Pengolah Dan Pemasar (Poklahsar) Di Kabupaten Pangandaran

This research was started because there was a problem where the economic existence of the people who were members of the Fish Processing and Marketing Group (Poklahsar) in Pangandaran Regency was still not optimal. Their income is still fluctuating. There are many obstacles, especially raw materials and nature, which greatly affect the process of implementing the processing and marketing of these fish, considering that not all fish can be processed and marketed, only certain fish can be processed and marketed, and even that is constrained by the season. Thus, the purpose of this study is to determine the strategy of the Department of Maritime Affairs, Fisheries and Food Security in improving the economics of the Processing and Marketing Group (Poklahsar) in Pangandaran Regency, the obstacles and efforts it has made. The method used is descriptive qualitative. The results of the study concluded that the Department of Marine Affairs, Fisheries and Food Security implemented the main generic, main and functional strategies in improving the economics of the Processing and Marketing Group (Poklahsar) in Pangandaran Regency. The obstacles faced by the Office of Maritime Affairs, Fisheries and Food Security in implementing strategies to improve the economics of the Processing and Marketing Group (Poklahsar) in Pangandaran Regency are human resources, raw materials, funds and prices. Efforts made by the Office of Maritime Affairs, Fisheries and Food Security to overcome obstacles in implementing strategies for improving the economy of the Processing and Marketing Group (Poklahsar) in Pangandaran Regency are conducting training and developing HR competencies, providing injections of funds and assistance with processing infrastructure facilities to Poklahsar, and set prices. While the raw materials have not yet found its efforts.

British imbalance market paradox: Variable renewable energy penetration in energy markets

The expansion of variable renewable energy (VRE) generation propagates numerous challenges for national energy systems. Despite recent years of VRE expansion and declining coal utilisation in the overall market profile, coal energy generation has maintained and grown its position as a marginal seller in the imbalance market. Coal’s disproportionate resurgence as a bidder of later resort in the imbalance market also represents a shift in its bidding behaviour. A comparative breakdown of Britain’s overall market with that of Germany, followed by a specific investigation of Britain’s imbalance market provides insight into changing roles of VRE, fossil fuelled energy, and compensation technologies. Historically, VRE trends in the British and German markets have been broadly consistent. Recently, increasing distress in Britain’s overall market is found to result in the increased use of high pollution technologies to meet imbalances. As a result, the composition of the overall and imbalance markets have increasingly diverged, and although the dominance of gas in the latter is expected, the resurgence of coal energy is more remarkable. Thus, while the proportion of generation by renewables has continued to increase, fossil fuelled (notably including coal) capacity, and its associated infrastructure costs and influence as the price setting marginal seller, remains dominant in the imbalance market.

NUMBERS DON’T LIE: DECODING FINANCIAL ERROR AND FRAUD THROUGH BENFORD’S LAW

This research investigates Benford’s Law as a statistical instrument to detect financial fraud and errors. Benford's Law, also known as the First-Digit Law, states that lesser digits, specifically '1', frequently appear as the leading digit in numerous numerical datasets, and deviations from this distribution may indicate potential financial irregularities. This research examines literature demonstrating the application and efficacy of Benford’s Law in identifying numerical inconsistencies indicative of financial misconduct. This research investigates the use of Benford’s Law as a tool of detecting error and fraudulent activities within the sales data of two branches during 2022. A comprehensive dataset of 3098 records from Bandung and 539 records from Surabaya was collected after excluding certain data points that exhibited abnormalities. The application of Benford's statistical test discovered a discrepancy between the Benford probability and the observed probability, suggesting the presence of possible errors and frauds. The audit findings unveiled anomalies in pricing and instances of fraudulent activities in both locations, primarily due to pricing discrepancies and incorrect price inputs from sales orders. Furthermore, instances of fraud involved the manipulation of set prices for personal gain by salesmen. The results affirmed the hypothesis that a larger deviation between Benford’s probability and the observed probability corresponded with a higher incidence of error and fraud. However, it observes that Benford’s Law is not a stand-alone solution for detecting fraud, as not all financial datasets conform to it and deviations from the law only indicate the possibility of fraud, not confirm it. Therefore, the research suggests using Benford’s Law in conjunction with other data analysis and auditing techniques to conduct a comprehensive investigation. The conclusion of research emphasizes the significance of Benford’s Law in the field of forensic accounting and the need for multidimensional strategies for effective error and fraud detection.

MARKETING STRATEGY ANALYSIS OF HYDROPONIC VEGETABLES OF KEBUN SEHATI

E-commerce has now also penetrated agricultural products, including hydroponic vegetables. This study aims to determine the marketing mix strategy of hydroponic vegetables at Kebun Sehati that uses e-commerce in its marketing. Kebun Sehati as a newcomer in hydroponic vegetable e-commerce in Yogyakarta of course has strengths and, weaknesses, and has opportunities and threats in running its business. The marketing mix which includes the product, price, place, and promotion is an important factor in this business. This research is descriptive. Respondents in this study consisted of the management of Kebun Sehati who was taken by the census method, and the determination of the consumer sample was carried out by the accidental sampling method. The total number of samples in the study was 85 respondents. The analytical method to determine the strategy of developing a hydroponic vegetable marketing mix in Kebun Sehati uses SWOT analysis. From the results of this study, it can be concluded that the right strategy for the development of hydroponic vegetable marketing at Kebun Sejati is an aggressive strategy which includes: (1) Increasing product variety and freshness, as well as providing guarantees by utilizing community assistance to expand the market; (2) Setting prices that are affordable and following quality to expand the market; (3) Using applications in the play store to serve consumers who are information technology literate; (4) Conduct promotions with complete attributes on various social media to increase consumer awareness of healthy food ingredients.
 
 Keywords: E-commerce, hydroponic vegetables, marketing mix, SWOT analysis

A game theoretic approach for time-of-use pricing with considering renewable portfolio standard effects and investment in energy storage technologies under government interventions

To remain in the competitive market, power companies, in addition to price competition, need to develop technologies to improve the reliability of electricity supply and achieve sustainable development goals. This paper explores energy pricing in an electricity supply chain consisting of renewable and conventional electricity producers and a distribution grid, focusing on improving supply reliability and achieving sustainable development goals. The study employs game theory to model government intervention in the electricity market through subsidization and Renewable Portfolio Standard (RPS) strategies. Three investment scenarios for improving reliability are considered, with producers determining wholesale prices and the distribution grid setting prices for low-and-high-load periods. The renewable producer and the distribution grid manage the reliability level by investing in energy storage technologies in the first and second scenarios, respectively, while it is ignored in the third scenario. The results reveal that optimal subsidy and RPS rates depend on the government's priorities regarding environmental effects, government revenue, and social welfare. Scenario two, is found to be the most favorable for improving supply reliability and achieving social welfare and environmental goals. Additionally, prioritizing social welfare maximization policy is found to be advantageous for producers' profit, the distribution grid, and supply reliability improvement.

STRATEGI PEMASARAN TABUNGAN HAJI DI BANK SYARIAH INDONESIA

Marketing strategy is basically the whole business activity that aims to plan products based on needs, set prices, promote and distribute, improve marketing management in a global competitive environment, and achieve the target market and company goals. For the implementation of marketing strategy in Islamic banking, there are three components of the marketing mix, these components form the basic strategy of Islamic banking in Indonesia, these components include product, price and promotion. Hajj is the 5th pillar in Islam, which consists of the creed, prayer, zakat and fasting. The Hajj is performed annually by Muslims around the world who can perform various activities (material, physical and scientific) in various places in Saudi Arabia during this period. designated as the pilgrimage season. 
 These topics discuss how Islamic banks in Indonesia implement marketing strategies for Hajj savings products so that people know and are interested in these products. This study collects data with information carried out using library research methods to collect data related to the topic or problem that is the subject of writing, in accordance with the wishes of the author. The results of this academic journal writing show aspects of socialization and application of the ideas behind the marketing strategy of Indonesian Islamic banks for Hajj savings products. There are still some obstacles in the BSI Hajj savings product where prospective pilgrims wish to register.

ANALISIS STRATEGI PEMASARAN GERAI BATIK MANGGUR PERSPEKTIF ETIKA BISNIS ISLAM

Batik is a cultural treasure of Indonesia, with each region having its own unique characteristics. The city of Probolinggo also has a special type of batik called Manggur batik. The reason for researching Manggur batik is that it has started to gain popularity among schools and madrasahs. When madrasahs or pesantren-based schools begin to procure batik, they consider several important aspects, especially because they are pesantren-based. Pesantrens have their own unique way of doing business with their students. This research uses qualitative descriptive analysis with a normative approach. The results of this study indicate that: 1) The management of the Manggur Batik Shop applies the marketing mix strategy in their product marketing efforts. The Manggur Batik management sets prices by considering the complexity of the production process and the types of main materials used, so the set prices are considered appropriate. Product distribution is also carried out directly, both through direct orders from consumers and through direct sales from the available stock at the internal shop and externally through DEKRANASDA. The Manggur Batik Shop also actively participates in exhibitions, bazaars, and special events. 2) The promotion strategy includes direct interaction with consumers, the use of social media such as the Umik Hebat website, Nurul Islam Pesantren's Facebook page, and WhatsApp to reach all members of the Nurul Islam Pesantren community. Additionally, word-of-mouth promotion is applied in educational institutions. All these elements form a holistic marketing strategy to enhance the success of Manggur Batik product marketing. 3) The marketing strategy of Manggur Batik products aligns with Islamic Business Ethics by collaborating with sharia financial institutions (BMT Nusantara) and using a system free from elements of usury. Keywords: Analysis, Business Ethics, Manggur Batik.

Implementasi Activity Base Costing Dalam Pengendalian Biaya Pada CV. Berlian Kilau Abadi-Breakshoot Billiar

This study aims to describe the determination of the cost of production that has existed so far in the company CV Berlian Kilau Abadi-Breakshoot Billiard. Furthermore, calculating the production costs using the Activity-Based Costing approach. This study uses a qualitative approach with the case method. This study obtained data from the company in the form of secondary data, and primary data in the form of direct interviews with research informants. Research data through the data credibility testing process. Data were analyzed using the approach of Miles and Huberman (1994), which was carried out simultaneously with the process of data collection, data presentation, data reduction, and drawing conclusions or verification. The research results show that the company has never done a detailed calculation of production costs, only they are exploring the amount of costs that are likely to be incurred before determining the selling price. The selling price set for the billiard table rental game / sports service is primarily based on the price prevailing in the Bengkulu City market. The company has not detailed the types of costs incurred and how much they cost in determining the existing rental rates. The bookkeeping and financial management system still uses the traditional system by recording all the receipts and expenses that have occurred, and at the end of the month the total will be calculated to see if it gets a profit or a loss. The calculation of production costs using the Activity-Based Costing (ABC) approach is carried out in order to obtain the total production costs for each available hour. There are 19 cost items and their triggers which are identified as components of production costs. Costs are separated into direct and indirect production costs, then calculated the amount of the cost of production per hour of billiard table rental services. The total production costs generated are still below the selling price, namely IDR 17,638.09 (direct production costs IDR 15,691.88, and indirect costs IDR 1,946.21). Judging by the selling price of IDR 25,000, it can be concluded that the company is still in the profit category.

DA’WAH AS A MARKETING STRATEGY (STUDY ON “FATHIMAH COLLECTION” BUSINESS, JOMBANG)

Abstract : Da'wah, in Islamic teachings, is the process of spreading good things. Even when doing business. Business must also be done well and honestly so the company becomes a blessing. Da'wah as a marketing strategy is also permissible as long as it does not go beyond Islamic law and must invite people to goodness. This was done by Fathimatuz Zahroh, the owner of the Fatima Collection business selling Muslim clothing in Jombang, who is known for preaching through his company. This study aims to see how Fatima's form of da'wah is used for her business and what marketing strategies are implemented at the Fathimah Collection. This research uses qualitative methods with field studies which will later analyze the form of da'wah and is strengthened by the marketing mix theory by Kolter & Armstrong (2016). The results of this study are the da'wah carried out by Fatima in her Fathimah Collection business, namely Bil-Lisan preaching, Bil-Qolam preaching, and Bil-Hal preaching. In contrast, the marketing mix strategy carried out by Fathimah Collection includes product selection, price setting, selection of places (place), and implementation of promotions (promotion).
 Keywords: da'wah, marketing strategy, marketing mix

Price setting frequency and the Phillips curve

We develop a New Keynesian (NK) model with endogenous price setting frequency. Whether a firm updates its price is a discrete choice: when expected benefits outweigh expected costs, prices are reset optimally. The model gives rise to a non-linear Phillips curve as prices are more flexible during demand-driven expansions and less so during demand-driven recessions. Monetary policy can have substantial real effects despite the model having a state-dependent pricing component. Our quantitative analysis shows that contrary to the standard NK model, the assumed price setting behavior: (i) is consistent with micro data on price setting frequency; (ii) generates a direct effect of the time-varying price setting frequency on inflation; (iii) creates time-variation in the Phillips curve slope that explains shifts in the Phillips curve associated with different historical episodes; (iv) explains inflation dynamics without relying on implausible high cost-push shocks and nominal rigidities inconsistent with micro data; (v) reconciles the NK model with observed inflation moments.

Determinants of marketed quantities of potato in tete province of Mozambique

In Mozambique 88% of the area allocated to potato production comes from Tete province, mainly on the districts of Angonia and Tsangano, and no studies have evaluated the determinants of the marketed quantities of this food crop, in this region. Hence, this study addressed this knowledge gap. The study used primary data. The primary data were obtained in February 2021 through the administration of the structured questionnaires to 453 smallholder potato farmers in Angónia and Tsangano districts. Descriptive statistics and a quantile regression model were the tools applied to analyze data. Results showed that the area allocated to potato production, cost of fertilizer per hectare, and cost of hired labour per hectare were significant at 1% confidence interval with volume sales of potatoes at all three levels of median studied. These are indications that an increase in any of these variables would increase the productivity of potatoes and hence the quantities available for market. Some of the constraints reported by the potato farmers were incidence of pests and diseases (100%), lack of credit access (100%), lack of certified seed (100%), lack of collective action on setting price (100%), inadequate storage materials (100%), poor road quality to access markets (79%), lack of funds to hire labour (36.2%), low level of extension services (36.9%), inadequate price information (17.9%) and inadequate fertilizer application (2%). To increase potatoes productivity, condition to increase marketed quantities, certified seeds, fertilizers and good storage materials should be made available to potato farmers.

Judicial and public control over the discretionary powers of the national regulatory commission in the fields of energy and public utilities

The article analyzes the judicial and public control over the discretionary powers of the National Commission for State Regulation of Energy and Utilities. The Authority of the Regulator in the field of setting tariffs in the energy sector is a broad discretion, therefore, an important legal issue is the regulation and implementation of control activities for their implementation.
 It has been established that the legislation does not provide for the responsibility of the National Commission for State Regulation of Energy and Utilities before consumers - natural persons for making illegal decisions, which can significantly complicate the process of receiving compensation by the consumer for losses incurred as a result of making such decisions by the National Commission for State Regulation of Energy and Utilities in court. This indicates a very high degree of risk and opportunities for abuse in decision-making by the regulator in the field of setting prices (tariffs), including for housing and communal services, which are related to his discretionary powers.
 The article analyzes court cases over the past 3 years by courts of administrative jurisdiction in courts of first instance, in which of the National Commission for State Regulation of Energy and Utilities was a participant (in 2019 – 117 decisions were made, in 2020 – 167 decisions, in 2021 – 179 decisions). However, the results of the analysis led to the conclusion of a very low level of legal activity of consumers - natural persons. Such a low activity of appeals by natural persons against the decisions of the National Commission for State Regulation of Energy and Utilities in the field of setting tariffs may indicate either a low level of knowledge in the field of current mechanisms for setting tariffs in the field of energy and possible public control over their adoption, the need to incur significant costs of time and money to appeal the decisions of the regulator, and mistrust in court in terms of making fair decisions in a dispute with a subject of authority.
 It was concluded that today the household consumer of services in the field of energy is practically not protected from the arbitrariness of the Regulator in the context of the presence of an effective mechanism for checking the use of discretionary powers by the regulator in the field of tariff insertion. In general, only a combination of judicial and public control can give a positive result in the direction of implementing the principle of good governance in the activities of all administrative bodies, including the National Commission, which carries out state regulation in the fields of energy and communal services.

EFISIENSI PENGELOLAAN USAHA DAN PERHITUNGAN HARGA POKOK PRODUKSI SEBAGAI LANGKAH MENGOPTIMALKAN KEUNTUNGAN

Human resources are determinant in the wheels of business, so HR is required to be creative and innovative in developing strategies according to existing changes. One form of creating production efficiency is by calculating the cost of production using the ratio of raw materials in creating a low-cost finished product. Production efficiency is able to reduce costs so that the products produced are low-cost, which in the end the company is able to sell its products at lower prices as well. The calculation of the cost of production plays a very important role in determining the selling price of the product so that the set price can be competitive. In cost accounting, the function of calculating the cost of production is to determine, analyze and report the realization of cost items so that the financial reports can show reasonable data. Procurement of training activities by partnering with three rice mill business actors in Krangtowo Village in Demak City to provide training as well as guide business actors to be able to innovate in creating efficient rice production. The evaluation of this training is based on the understanding of the trainees in the given session. In addition, a questionnaire was also given which was filled in by participants to assess the quality of the training at the end of the session. From the training that was given enthusiastically and the participants' understanding was very good, this was evidenced from the questionnaire given at the end of the training session, the average understanding of the participants was on a scale of 4 which was included in the good category. So that the results of this training in the future must always be improved so that the understanding of village communities in managing finances and business management is even better.

Evaluasi Perbandingan Anggaran Biaya Konstruksi Antara Metode SNI Dengan Metode Kontraktor

It is very important to understand the more favorable cost estimation comparison between SNI 2022 and the Contractor, because this information is used as a reference in calculating contractors and preventing losses. The purpose of this research is to identify the differences and similarities between the contractor calculation method and SNI 2022, and also to find out which budgeting method is effective. This study uses the analysis method of SNI Number 1 of 2022 and the contractor calculation analysis method. Based on the research results, the effective price is Rp. 2,988,685,140.71 which is calculated based on the contractor's analysis. This price is 14.59% efficient from the price calculated based on the SNI 2022 analysis. Meanwhile the price set based on the SNI 2022 analysis is Rp. 3,424,599,423.59. From the results of the cost comparison between the 2016 SNI method and the contractor, it is known that the difference in costs is around Rp. 435,914,282.88. Based on the research results, the effective budget is calculated based on the analysis of contractor calculations.

Active timber management by outsourcing stumpage price uncertainty with the American put option

Timber production is risky, with price uncertainties caused by stumpage price fluctuations. In this study, the American put option is employed to outsource such uncertainty and establish the reservation prices at various stand ages. Put option values and the reservation prices derived thereof, thus, help forestland owners decide whether the stumpage price is high enough to justify an immediate timber harvest. With a series of simulations, we demonstrated that using an American put option to cover the downside price risk could substantially increase the average land expectation value compared to the certainty case. Besides, the simulations confirm that buying an American option as a price insurance would deduct land expectation values compared to the methods proposed by Brazee and Mendelsohn. In addition, we proposed a rolling put option method that allows forestland owners to buy partial length put options to balance their cost and price uncertainty protection. Overall, with the help of American put option, forestland owners for the first time could actively make their harvest decisions from the price setter perspective instead of being pure market price taker like they have been since the beginning of commercial forestry.

Deposit AI as the “invisible hand” to make the resale easier: A moderated mediation model

While existing works pay little attention to price setters and the application of artificial intelligence (AI) agents in second-hand trading, the current research examines whether, and how, price setter (AI VS. seller)affects buyers' willingness to pay (WTP)in the case of second-hand trading on P2P platform. 25 interviews and 3 online studies have been conducted to demonstrate the results: (i) compared with goods priced by sellers, buyers are more willing to pay for goods priced by platform AI (Studies 1&2), (ii) buyers' perceived objectivity mediates the relationship between price setter and buyers' WTP (Study 2), (iii) perceived reductionistic of AI eliminates the effect of price setter on WTP (Study 3), and (iv) augmented intelligence (vs. AI)can have equal effect on buyers’ WTP (Study 4). These findings offer considerable implications for practitioners on how to build an AI pricing agent that is superior to humans on P2P second-hand trading platforms while ensuring the well-being of platform traders.

Consequences of model choice in predicting horizontal merger effects

How practitioners model competition influences the predicted effects of a merger. We show how a Bertrand price setting and a second score auction model can be nested within a general bargaining framework. Through numerical simulations, we then show how the predicted merger effects vary with model choice, and that two commonly used strategies for obtaining demand parameters can yield markedly different outcomes across the models. Finally, we show how model and calibration strategy choices affect the magnitude of predicted harm in the 2012 Bazaarvoice/PowerReviews merger.

Partitioned Pricing and Collusion on Surcharges

Abstract Partitioned pricing is a pricing practice that divides the price of a product into a base price and one or more mandatory surcharges. This paper develops a theory of partitioned pricing using a duopoly model where the owner of each firm determines the surcharge, but delegates the setting of the base price to a manager. In equilibrium, both firms choose partitioned pricing over the conventional all-inclusive pricing. Moreover, partitioned pricing leads to higher full prices and larger profits than all-inclusive pricing. Most surprisingly, collusion on surcharges without any coordination on base prices is as profitable as collusion on all-inclusive prices.