Search results

1 – 10 of over 7000

Abstract

Details

The Political Economy of Antitrust
Type: Book
ISBN: 978-0-44453-093-6

Article
Publication date: 1 February 1979

K.J. BUTTON

Consumer's surplus now plays an important role in public sector investment analysis (notably social cost‐benefit analysis) and is central to much of modern welfare…

Abstract

Consumer's surplus now plays an important role in public sector investment analysis (notably social cost‐benefit analysis) and is central to much of modern welfare economic theory. Despite this it is still a topic of considerable controversy and debate; indeed few concepts in the recent history of economic thought have aroused such a diversity of opinion. It must be almost unique, for example, for two Nobel laureates in the same discipline to take diametrically opposed positions over the importance of a basic method of measurement in their own subject. We find, however, Sir John Hicks arguing that ‘if economists are to play their part in shaping the canons of economic policy fit for a new age, they will have to build on the foundations of consumer's surplus’ whilst on the contrary Paul Samuelson dismisses the concept as being of ‘historical and doctrinal interest with a limited amount of appeal as a purely mathematical puzzle’.

Details

Journal of Economic Studies, vol. 6 no. 2
Type: Research Article
ISSN: 0144-3585

Article
Publication date: 20 May 2022

Xue Chi, Zhi-Ping Fan and Xiaohuan Wang

In recent years, some peer-to-peer (P2P) service sharing platforms have improved their service quality by setting an entry quality threshold for service providers…

Abstract

Purpose

In recent years, some peer-to-peer (P2P) service sharing platforms have improved their service quality by setting an entry quality threshold for service providers. Considering consumers' heterogeneous preferences for service quality and commission rate, it is worth studying how to select the commission rate contract for a P2P platform under a predetermined entry quality threshold for service providers.

Design/methodology/approach

In this study, the platform's profit-maximizing model is constructed under two proposed contracts: unilateral commission rate contract and bilateral commission rate contract. The optimal entry quality threshold and the optimal commission rate are obtained. This study also explores the impacts of cross-side network externality and service price on a platform's optimal decisions and social welfare.

Findings

Results show that it is always advantageous for the platform to adopt the bilateral commission rate contract, which is closely related to the strength of cross-side network externality, service price and quality sensitivity coefficient. Under certain conditions, adopting the unilateral commission rate contract can reduce platform profit and service provider surplus, and improve consumer surplus and social welfare.

Originality/value

This study analyzes the unilateral commission rate contract and the bilateral commission rate contract of the platform, and discusses which contract is beneficial to the platform, consumers and service providers. In addition, this study provides a basis for the operation decision of a P2P service sharing platform and the pricing decision of service providers.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 29 August 2019

Xiong Zhang, Wei T. Yue and Wendy Hui

The emergence of internet-enabled technology has led to the software service model in which the software firm, instead of the consumer, maintains software ownership. This…

291

Abstract

Purpose

The emergence of internet-enabled technology has led to the software service model in which the software firm, instead of the consumer, maintains software ownership. This model can curtail software piracy more effectively than the traditional on-premises software model. However, software firms are not abandoning traditional on-premises software but embracing both models simultaneously. In this study, the authors consider a firm’s software bundling decision in combination with its piracy deterrence strategy. The paper aims to discuss these issues.

Design/methodology/approach

The authors build three stylized models to analytically compare the bundling strategies under three scenarios: no piracy, piracy is present and piracy is present while the firm applies digital rights management (DRM).

Findings

The authors find pure bundling (PB) to be the optimal strategy due to the combination of competition and cannibalization effects in mixed bundling (MB). Simultaneously, consumers may enjoy greater surplus in PB than in MB, making PB the preferred strategy for both the firm and consumers. Interestingly, the win-win outcome coexists with some degree of piracy in the market.

Originality/value

The results provide important insights for firms and policy-makers and contribute to the literature on piracy and product bundling. First, the authors show piracy could be another driver for product bundling, which has never been discussed in prior literature. Second, the authors suggest an alternative perspective; that PB may be a desirable outcome for both firms and consumers when considering piracy and DRM. More surprisingly, this desirable outcome occurs with some level of piracy in the market. The presence of piracy leads to competition and cannibalization effects in MB, which eventually results in the win-win outcome in the software market for both the firm and the consumers.

Details

Internet Research, vol. 30 no. 1
Type: Research Article
ISSN: 1066-2243

Keywords

Abstract

Details

Contingent Valuation: A Critical Assessment
Type: Book
ISBN: 978-1-84950-860-5

Book part
Publication date: 1 July 2004

Richard O. Zerbe and Sunny Knott

Merger review policy among countries varies according to the weight given to consumers relative to producers. When both receive their full welfare weight it is said that…

Abstract

Merger review policy among countries varies according to the weight given to consumers relative to producers. When both receive their full welfare weight it is said that the efficiencies defense is fully realized. No well-developed economic rationale has been given for giving more weight to consumers. Such a rationale is given here by considering equity and efficiency both as goods for which there is a willingness to pay. The willingness to pay approach not only provides a rationale for giving consumers greater weight as with, e.g. a price standard, but also shows how in principle the weight is to be derived. The merger of Superior Propane and ICG Propane in Canada raises issues of the tradeoff of equity and efficiency. The willingness to pay approach is applied to this merger as an illustration.

Details

Antitrust Law and Economics
Type: Book
ISBN: 978-0-76231-115-6

Article
Publication date: 8 November 2013

Priyodorshi Banerjee

To analyse the implications of signs of reform modification, stoppage or reversal, such as price controls, that have emerged in many developing economies, it is necessary…

Abstract

Purpose

To analyse the implications of signs of reform modification, stoppage or reversal, such as price controls, that have emerged in many developing economies, it is necessary to understand their efficiency consequences. This paper aims to study the effect of price interventions in imperfectly competitive product markets, to investigate whether reforms reversals are necessarily harmful.

Design/methodology/approach

The model assumes firm set prices and face sunk costs of entry.

Findings

The paper shows that a minimum price can induce a Pareto improvement, by preventing price wars and encouraging entry. The result is supported by empirical evidence from some developed economies, holds when sunk cost vanishes, and is robust to some extensions. A fixed price may be optimal in the environment investigated.

Originality/value

The results may be of interest to theorists and policy-makers interested in imperfectly competitive markets.

Details

Indian Growth and Development Review, vol. 6 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Abstract

Details

Agricultural Markets
Type: Book
ISBN: 978-0-44482-481-3

Article
Publication date: 1 July 2000

Jeff Bennett

Whilst demands for benefit cost analysis (BCA) to be applied to a wide variety of policy decisions are growing, there remains a degree of dissatisfaction amongst policy…

Abstract

Whilst demands for benefit cost analysis (BCA) to be applied to a wide variety of policy decisions are growing, there remains a degree of dissatisfaction amongst policy makers, non‐economist specialists and some economists with its use. Part of that dissatisfaction arises because of a degree of confusion relating to what is meant by the term value as it is used in BCA. Furthermore, proponents of other techniques that have been suggested as substitutes for BCA are keen to cast doubts on the ability of BCA to perform its role in consolidating the disparate information relating to the outcomes of alternative policies. An attempt is made to clarify the notion of value as it is used in a variety of guises. These alternative notions are assessed in terms of their abilities to assist in policy formulation. Second, some of the alternative techniques are critiqued, with particular attention being paid to the use of the value concept. Concludes that clarity in the specification of the goals to which a specific concept of value is to be applied is vital. Different concepts relate to different goals and the application of the wrong concept to a goal could be costly. In a final section, the confusion that has arisen within the discipline regarding the concept of value that underpins some non‐market valuation techniques is explored.

Details

International Journal of Social Economics, vol. 27 no. 7/8/9/10
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 20 August 2021

Feng Yang, Wei Wang and Xiabing Zheng

The purpose of this paper is to establish a stylized model to solve the pricing strategy, resource allocation and consumer surplus problems of multichannel healthcare services.

Abstract

Purpose

The purpose of this paper is to establish a stylized model to solve the pricing strategy, resource allocation and consumer surplus problems of multichannel healthcare services.

Design/methodology/approach

This paper considers a two-stage decision model with different levels of consumers’ knowledge. Faced with physical problems, knowledgeable consumers can solve their problems by seeking online healthcare channels, while unknowledgeable consumers need to make a two-stage decision to try to solve their problems.

Findings

The effective diagnosis rate and the proportion of knowledgeable consumers positively impact the optimal pricing in online and offline channels. In addition, a higher proportion of knowledgeable consumers does not result in higher demand in the online and offline channels. Moreover, if service providers lower their prices a small amount, they will lose some profit, but the consumer surplus will be higher, which will encourage more consumers to access healthcare services.

Research limitations/implications

Knowledge levels are simplified into two categories. Also, the authors assume the resources of online and offline healthcare services are comparable.

Originality/value

This paper incorporates the knowledge level and misdiagnosis rate into the model framework to study the most effective pricing strategy for multichannel healthcare services.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5664

Keywords

1 – 10 of over 7000