Search results

This paper seeks to reconcile two very different views existing in the literature concerning how exchange and demand affect the magnitude of commodity values. Traditionally, value is considered to be created in production and subsequently realized in exchange. An alternative monetary approach posits that exchange itself contributes to the determination of commodity values. Proponents of each view claim that significant parts of Marx’s theory of value are compromised if their interpretation of the role of exchange is not adopted. Drawing on the work of Rosdolsky and Roberts, I argue that it is necessary to distinguish between the effects of exchange and demand. Exchange acts to reduce concrete, private labor to abstract social labor, while demand affects the magnitude of labor considered “socially necessary” in the sense of being expended in accordance with existing social need. I identify a new category of exchange value – the market-price of production – and use it to explain how changes in demand act to redistribute value across industries by affecting the magnitude of abstract labor considered to be socially necessary. In this way the major claim of the two approaches to exchange are reconciled. The magnitude of value is fully determined in production. At the same time monetary exchange effects, or brings about, a social division of labor by reducing concrete, private labor to abstract social labor and by distributing value according to social need as expressed by effective demand.

Several tests have been conducted to determine which valuation model best fits stock price data. Given very little success, those studies suggest the need for a clear understanding of the market process of stock price determination. This paper advances the concepts of product costing and product pricing, which pertain to financial accounting valuation and the stock market price determination, respectively. This research effort presents a workable hypothesis of stock price determination.

The paper argues in favor of reestablishing sociological or social economics as a legitimate discipline of economic science. Conspires toward undertaking analyses of the social co‐determination of economic behaviors, variables and systems. Suggests the need for incorporation of sociological/social economics in the existing semi‐official (JEL) taxonomy of economic fields and subjects. The argument for sociological economics can be made on two grounds: ontological or empirical‐historical and epistemological or theoretical‐methodological ones. The article bases the argument for sociological economics on the former, i.e., the empirical‐historical social co‐determination of the economy. The relations of sociological economics to sociology of economics are specified and the implications of sociological/social economics for modern economic science are also discussed.

South Africa’s wool industry plays an important role in the agricultural sector. The wool industry provides a valuable source of income for farmers who practice sustainable farming practices. However, wool farmers face numerous challenges, such as wool contamination, dirty wool and producing good-quality wool. Good-quality wool is determined by fibre diameter, clean yield, vegetable matter and staple length. This study aims to address these challenges.

A multiple regression analysis of price (R/kg) of White wool and Merino wool was applied to four variables fibre diameter: vegetable matter, clean yield and staple length. The analysis was based on the data for the 2009–2019 data from Cape Wools auctions.

Fibre diameter, clean yield and staple length, with exception of vegetable matter, made a statistically significant contribution to the determination of wool price after all other independent variables were controlled for (p < 0.05). A one-unit (micron) increase in fibre diameter resulted in a 0.404-unit decrease in wool price (R/kg). A one-unit (mm) increase in staple length resulted in a 0.022-unit increase in wool price (R/kg). There was no statistically significant association between vegetable matter and wool price. A one-unit increase in clean yield was associated with a 0.111-unit increase in wool price (R/kg).

Since wool fleeces consist of the largest portion of wool shorn from sheep, it is important for wool farmers to focus on wool with low fibre diameter, high clean yield percentage, low percentage of vegetable matter content and good length of the wool.

Since wool fleeces consist of the largest portion of wool shorn from sheep, it is important for wool farmers to focus on wool with low fibre diameter, high clean yield percentage, low percentage of vegetable matter content and good length of the wool.

In a developing country such as South Africa, this study is important for the following reason. It is understanding the wool characteristics that have the most significance influence on the determination of wool price for Merino wool and White wool might effectively help the wool farmers to adapt their production systems to improve the wool characteristics that determine wool price.

This study identified a need for a study to be conducted on all wool classes.

The purpose of this paper is to study the process of price determination by the market in the existing variable fiat money regime and its consequences.

Scientific knowledge pertaining to units and measurement has been applied to study the issue of wealth measurement and to arrive at the consequences of monetary manipulation. As regards Shariah perspective it may be described as guided application of science to the issue of currency and wealth measurement to analyze and solve economic problems.

Manipulation of currency that is manipulation of quantity of what determines purchasing power of money does not allow market to determine just prices implying lack of justice in exchange. Profitability of economic activities no longer relates to their utility for the economy implying gross inefficiency in profit driven investment. Market fails to maintain economic balances. These amount to extreme losses. It has led to massive economic uncertainty, instability, disparity, corruption and conflicts. Economic growth, justice and peace become unattainable. It is a serious crime as currency being unit of wealth is the most important unit and it is strictly prohibited in Shariah. Unless corrected for monetary manipulation financial modes recommended by Shariah seem to be unjust and impractical.

Application of scientific approach and scientific knowledge to economic issues especially the issue of wealth measurement needs higher emphasis, efforts and resources.

Governments ought to be persuaded not to manipulate money. Right solution is to link currency with a standard basket of national products with sufficient weight for gold and silver having most stable purchasing power. Unless accounting is corrected for monetary manipulation preferred Islamic modes of finance seem to be unjust and impractical. Where currency is manipulated Shariah/justice requires accounting for dues, capital, profit and loss to be corrected for this manipulation and in present scenario relative change in Consumer Price Index and Whole Sale Price Index may be used as a measure of currency manipulation.

Monetary manipulation has been clearly defined and extreme severity of the problems it creates has been established. It is most important for researchers, academics, government functionaries, social workers and all those who are concerned with economic growth, justice and welfare.

The purpose of this general review paper is to provide a comparison and evaluation of the treatment of pricing by the disciplines of economics and marketing.

It is from three perspectives that the marketing and economics approaches to pricing are reviewed, namely, buyers' response to price, firm's determination of price, and industry‐ or economy‐wide role of price.

A comparative review of the relevant marketing and economics literature shows that there are important differences between the two disciplines in their treatment of pricing. Marketing demonstrates a richer and more empirically based treatment of the pricing issue from the buyer's perspective, while economics is unchallenged from the economy‐wide perspective. The differences found between the marketing and economics approaches to pricing are mostly due to their different historical origins, primary concerns and doctrinal evolution. In contrast, interdisciplinary loans especially from behavioral science have made possible considerable advances in marketing, particularly in the understanding of the buyer's perspective.

Previous reviews of the pricing literature do not attempt to provide a direct comparison and evaluation and offer no explanation for the observed differences among the economics and the marketing disciplines regarding their treatment of the pricing issue. The value and originality of the current paper lies in the fact that it represents the first attempt to provide such a comparison and evaluation.

This study aims to adopt illusion of control and lateral consumer relationship in order to investigate their effects on price fairness in online auction and group buying context. These two variables have been known to have strong influences in fairness perception on consumers' decision‐making processes and outcomes.

The authors draw their conceptual foundations from previous studies, supplement this from the electronic commerce literature, and test the model through laboratory experiments.

The study demonstrates that consumers' perception on illusion control in price determination and advantageous lateral consumer relationship significantly affect price fairness perception in both the online auction and group buying environments.

The findings are expected to provide researchers with useful insights to conduct future studies on uncovering the nomological networks associated with price fairness perception.

The findings are expected to help managers develop better pricing strategies and design effective dynamic pricing mechanisms.

The paper provides the first integrated perspective on the human decision processes in the dynamic pricing environment in electronic markets.

The purpose of this paper is to investigate the information-based microstructure theory’s effectiveness in explaining short-term disturbances in currency prices by determining whether the price discovery process in the US dollar (USD) and South African rand (ZAR)-USD/ZAR spot market is led by an individual market agent, around an exogenous news event.

The influence of central bank intervention-related events on USD/ZAR volatility is investigated through the application of Brown-Forsythe variance equality tests on individual dealer and market quotes. Furthermore, the study applies bivariate Granger-causality tests to individual dealers’ USD/ZAR spot rate quotes, in an effort to determine whether certain dealers can be established as price leaders around an exogenous news event.

The study finds significant evidence to suggest the USD/ZAR market price leadership of Nomura forex (FX) prior to the public announcement of a South African Reserve Bank intervention-related news event. This finding supports microstructure theory’s assertions regarding the existence of foreign-exchange market characteristics such as trader heterogeneity and private information.

The paper is conducted on a sample of eight USD/ZAR market agents, of which six are offshore dealers, and only two are located locally. Although these proportions are somewhat relatable to the locations of rand turnover, it would still be interesting to investigate the existence of price leadership solely amongst South African authorised FX dealers.

The results suggest the existence and price relevance of private information, as well as the heterogeneous nature of USD/ZAR market participants, based on informational asymmetries. The outcomes of the paper are useful to market participants, researchers, and central banks alike.

Though the study does not impugn the body of work related to the orthodox macroeconomic approaches to exchange rate determination, it seems apparent that much more microstructure-related research still has to be conducted in the context of emerging market currencies. It is this void that the current study has attempted to provide for in contribution to literature.

Contends that the management of information services should consider the pricing of information products as a challenge which demands an understanding of economic principles. Illustrates the range of ideas and tools economists offer for the practical development of a price strategy for information products. Uses three scenarios to demonstrate the formulation of different pricing strategies for different information products. The information products used as examples in these scenarios are a CD‐ROM database, a training programme and a report on the involvement of mechanical engineers with the Reconstruction and Development Programme in South Africa.

The paper is the result of an investigation into the pricing practices of large steel manufacturers in the European Community. From mid‐1993 to early 1994, steel prices in the community rose substantially. The unity of purpose displayed in an industry that has high fixed costs and chronic overcapacity caused some concern among steel users and policy makers. Research undertaken to ascertain whether or not collusive pricing had occurred indicated that steel firms priced their products to achieve long‐term survival. There was nothing to suggest that their pricing was collusive. The implication of this is that while certain practices may smack of collusion, a case by case investigation is always necessary to establish the presence or otherwise of any suspected anti‐competitive conduct.