Search results
1 – 10 of over 65000Manuel A. Hernandez, Anirban Sengupta and Steven N. Wiggins
Firms with linear pricing offer their customers the same price for each unit of a good or service. Anything else is nonlinear pricing. Nonlinear pricing in imperfect markets…
Abstract
Firms with linear pricing offer their customers the same price for each unit of a good or service. Anything else is nonlinear pricing. Nonlinear pricing in imperfect markets indicates a fundamental asymmetry in information between firms and consumers. Consumers are commonly expected to exhibit quality- or quantity-preference differences and have different reservation values for different product attributes. The firms, however, cannot observe consumers' preferences. When complete information regarding preferences is not observable, nonlinear pricing strategies with firms offering a menu or schedule of prices allow consumers to sort themselves according to their own preferences, resulting in market segmentation.
Abhishek Poddar, Sangita Choudhary, Aviral Kumar Tiwari and Arun Kumar Misra
The current study aims to analyze the linkage among bank competition, liquidity and loan price in an interconnected bank network system.
Abstract
Purpose
The current study aims to analyze the linkage among bank competition, liquidity and loan price in an interconnected bank network system.
Design/methodology/approach
The study employs the Lerner index to estimate bank power; Granger non-causality for estimating competition, liquidity and loan price network structure; principal component for developing competition network index, liquidity network index and price network index; and panel VAR and LASSO-VAR for analyzing the dynamics of interactive network effect. Current work considers 33 Indian banks, and the duration of the study is from 2010 to 2020.
Findings
Network structures are concentrated during the economic upcycle and dispersed during the economic downcycle. A significant interaction among bank competition, liquidity and loan price networks exists in the Indian banking system.
Practical implications
The study meaningfully contributes to the existing literature by adding new insights concerning the interrelationship between bank competition, loan price and bank liquidity networks. While enhancing competition in the banking system, the regulator should also pay attention toward making liquidity provisions. The interactive network framework provides direction to the regulator to formulate appropriate policies for managing competition and liquidity while ensuring the solvency and stability of the banking system.
Originality/value
The study contributes to the limited literature concerning interactive relationship among bank competition, liquidity and loan price in the Indian banks.
Details
Keywords
During the last decade, we have witnessed a steady stream of research focusing on the nature of competition between different brand tiers (e.g. high‐priced brands vs low‐priced…
Abstract
During the last decade, we have witnessed a steady stream of research focusing on the nature of competition between different brand tiers (e.g. high‐priced brands vs low‐priced brands, national brands vs store label brands). Several interesting research findings have been reported in the literature. This article highlights the methodological issues associated with the research on price‐tier competition and delineates the connection between methodological issues and managerial implications of the substantive research findings.
Details
Keywords
– This research aims to examine the role of national culture dimensions in the nature of tier competition between high-tier brands and low-tier brands.
Abstract
Purpose
This research aims to examine the role of national culture dimensions in the nature of tier competition between high-tier brands and low-tier brands.
Design/methodology/approach
It starts with a conceptual framework based on prospect theory to explain the asymmetric inter-tier competition. It then describes how the national culture dimensions influence the implications of prospect theory and as a result, the nature of inter-tier competition. The paper uses Hofstede's framework to operationalize national culture and derives a number of research propositions that explicate the role of national culture in inter-tier price competition.
Findings
The study finds that the extent of asymmetry favouring high-tier brands over low-tier brands depends on the national culture dimensions. Whereas high levels of individualism, power distance, uncertainty avoidance, and masculinity increase the asymmetry favouring high-tier brands, higher long-term orientation decreases asymmetric price competition favouring high-tier brands.
Practical implications
The findings offer important guidelines for understanding the nature of inter-tier price competition as a function of national culture.
Originality/value
This is the first study to extend inter-tier price competition in the global setting and also the first study that links national culture with prospect theory to examine the boundary conditions of inter-tier price competition.
Details
Keywords
Khaled Hesham Hyari and Mujahed Thneibat
Public construction authorities need to evaluate the level of competition in the submitted bids for a certain project before awarding the contract. A lack of adequate competition…
Abstract
Purpose
Public construction authorities need to evaluate the level of competition in the submitted bids for a certain project before awarding the contract. A lack of adequate competition is a reason for rejecting all bids and reissuing an invitation to bid for the project. This paper aims to present an analysis of the adequacy of competition in public construction projects.
Design/methodology/approach
The paper uses five competition indicators to correlate the level of competition effect obtained with the number of contractors competing for the project. The analysis is based on the bid opening results for 917 public construction projects in Jordan that include 6,309 bids, with an average number of 6.88 bids per project.
Findings
The results illustrate that there is an improvement in the competition effect over the five analyzed competition indicators as the number of bidders increases. However, the rate of improvement decreases with the increase in bidders. The empirical analysis performed does not support the proposition that an optimum number of bidders exists in competitive bidding for construction projects or the proposition that a higher number of bidders may lead to higher bid prices. However, the indicators developed in this study found that at least 5 bidders are recommended and after 8 bidders, the rate of improvement continues at much slower rate.
Originality/value
The current research presented a multifaceted method for assessing the minimum number of bidders needed to ensure a competitive bidding process. Moreover, the research used actual data from 917 public projects.
Details
Keywords
Examines Spain’s problems in implementing regulatory reform and offers suggestions for addressing them. Hopes to be instructive to other countries embarking on regulatory reform…
Abstract
Examines Spain’s problems in implementing regulatory reform and offers suggestions for addressing them. Hopes to be instructive to other countries embarking on regulatory reform. Concludes that other countries should concentrate on problems on implementation that they are likely to face and should be prepared for.
Details
Keywords
Genessa M. Fratto, Michelle R. Jones and Nancy L. Cassill
The aim of this paper is to investigate competitive pricing strategies of apparel brands and retailers.
Abstract
Purpose
The aim of this paper is to investigate competitive pricing strategies of apparel brands and retailers.
Design/methodology/approach
The paper begins with a broad discussion of competition by examining Porter's five forces model, and narrows by examining price competition within price tiers in the retail apparel industry according to store format and brands. Included are case studies of apparel retailers and brands incorporating concepts of pricing strategies, brand positioning, and price competition, with a focus on retail channel relationships. The paper analyzes the impact of price competition on apparel retailers and brands, and further examines price tiers as a competitive strategy.
Findings
The study reveals that the concept of price tiers is applicable to apparel retailers and brands. Price tiering is a vehicle for market positioning for the retail apparel industry. Retailers are enacting a price tier strategy by branding their retail store formats or engaging store brands as a vehicle of differentiation for a tier. Retailers and brands can be successful with a price tier strategy, unless they fail to differentiate between tiers on factors other than on price alone.
Research limitations/implications
The lack of relevant price competition literature, relating to the retailer apparel industry, forced the exploration of price competition literature from grocery and automotive sectors.
Originality/value
The paper provides useful information on the impact of price competition on apparel retailers and brands, and also price tiers as a competitive strategy.
Details
Keywords
The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal…
Abstract
The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal took great pains to interpret the intention of the parties to the different site agreements, and it came to the conclusion that the agreed procedure was not followed. One other matter, which must be particularly noted by employers, is that where a final warning is required, this final warning must be “a warning”, and not the actual dismissal. So that where, for example, three warnings are to be given, the third must be a “warning”. It is after the employee has misconducted himself thereafter that the employer may dismiss.
The nature of competition between different tiers (e.g. high‐tier vs low‐tier brands) has become an important research domain for academic researchers and marketing managers…
Abstract
The nature of competition between different tiers (e.g. high‐tier vs low‐tier brands) has become an important research domain for academic researchers and marketing managers. Although research on inter‐tier competition is growing at an increasing rate, there has not been a comprehensive attempt to summarize the research in this stream. The objective of this article is to synthesize the research on inter‐tier competition, extract the key findings, discuss managerial implications, and offer future research directions.
Details
Keywords
The theory of monopoly price was originally formulated by Carl Menger at the inception of the marginalist revolution in 1871 and represented the dominant theoretical approach to…
Abstract
The theory of monopoly price was originally formulated by Carl Menger at the inception of the marginalist revolution in 1871 and represented the dominant theoretical approach to monopoly until the 1930s. Despite its impeccable doctrinal pedigree and lengthy dominance, the theory abruptly disappeared from the mainstream neoclassical literature after the Monopolistic Competition Revolution, to be revived and reformulated after World War II by Ludwig von Mises. The present paper describes the theory as it was offered in its most sophisticated pre‐war form by American economist Vernon A. Mund, who published an unjustifiably neglected volume on monopoly theory that appeared in the same year as the classic works by Joan Robinson and Edward Chamberlain. This paper then attempts to draw out the critical implications of Mund’s formulation of the theory for the current neoclassical orthodoxy in monopoly and competition theory, including the elasticity of demand curves facing individual producers under competition, the time perspectives that are most relevant in analyzing the pricing process, the proper role of long‐run equilibrium in this analysis, and the misapplication of the marginal revenue and marginal cost concepts. Finally, the paper suggests a number of reasons why the theory was swept aside in the aftermath of the Chamberlain/Robinson Revolution with almost no resistance from its most prominent exponents.
Details