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1 – 10 of over 2000Xigang Yuan, Zujun Ma and Xiaoqing Zhang
This paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic…
Abstract
Purpose
This paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, it explores the effect of a limited trade-in duration on the choice of the myopic and strategic customers, besides the optimal dynamic pricing and trade-in strategy of the firm.
Design/methodology/approach
Based on the choice behavior of the myopic and strategic customers, the authors have developed a two-period game-theoretic analytical model to decide the optimal retail prices of the successive-generation products and the optimal trade-in rebate when the firm adopts a dynamic pricing strategy and then investigate three extensions of the basic model to discuss the change in the results owing to the relaxation of certain conditions.
Findings
The authors find from the results that, in terms of profit maximization, it is better to extend the limited trade-in duration, and hence, the firm should implement a dynamic pricing strategy. However, in the situation of using a static pricing strategy, the firm should extend the limited trade-in duration only if the incremental value of the new generation products is below a certain threshold. Moreover, the firm should use a dual rollover strategy instead of a single rollover one. If all customers in the market are myopic, then the firm should also extend the limited trade-in duration.
Research limitations/implications
This study mainly discusses the impact of limited trade-in duration on the firm's dynamic pricing strategy when facing strategic customers, which provides several directions for future research. First, if the government offers subsidies to consumers, how will strategic consumers make purchase decisions? How would the enterprise make its pricing decision? Second, when asymmetric information exists between consumers and firms, how will it affect consumers' choice behavior and firms' pricing decisions? All these issues are worth exploring in the future.
Practical implications
These results offer certain managerial insights for the firm in the decision making on pricing within the trade-in program.
Originality/value
This is the first work to study the dynamic pricing strategy of the firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, this work discusses the changes in results owing to the relaxation of certain conditions.
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Peter Huaiyu Chen, Kasing Man, Junbo Wang and Chunchi Wu
We examine the informational roles of trades and time between trades in the domestic and overseas US Treasury markets. A vector autoregressive model is employed to assess the…
Abstract
We examine the informational roles of trades and time between trades in the domestic and overseas US Treasury markets. A vector autoregressive model is employed to assess the information content of trades and time duration between trades. We find significant impacts of trades and time duration between trades on price changes. Larger trade size induces greater price revision and return volatility, and higher trading intensity is associated with a greater price impact of trades, a faster price adjustment to new information and higher volatility. Higher informed trading and lower liquidity contribute to larger bid–ask spreads off the regular daytime trading period.
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Carmen Díaz-Mora, Rosario Gandoy and Belen Gonzalez-Diaz
Drawing on the literature that has shown the prevalence of short-lived trade relationships, the purpose of this paper is to provide further understanding about this issue by…
Abstract
Purpose
Drawing on the literature that has shown the prevalence of short-lived trade relationships, the purpose of this paper is to provide further understanding about this issue by exploring the impact of engaging in Global Value Chains (GVCs) on the chance of export survival at product-country level, paying special attention to the differences between advanced and developing countries. The authors also investigate whether the type of GVC participation (backward or forward) matters for export survival.
Design/methodology/approach
To capture to what extent a country’s exports are integrated in GVCs, the authors use the OECD Inter-Country Input-Output database to estimate value added incorporated in exports. Through the estimation of a discrete-time duration model, the authors explore the impact of engaging in GVCs on export survival using highly disaggregated trade data from the CEPII’s BACI database.
Findings
The findings endorse the hypothesis that deeper participation in GVCs is a key factor in explaining stability in trade relationships, mainly for developing countries where the trade flows are especially fragile. The authors also find different effects depending on the type of GVC involvement and on whether the value chain partners are advanced or developing.
Originality/value
The paper contributes to the literature by extending the understanding on the factors that promote the stability of exports, including among them, involvement on GVCs (and its forms) which is one of the most relevant factors to explain recent behavior of trade.
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Ruonan Liu, Yuhui Yue, Dongling Miao and Baodong Cheng
This article will select 25 years of subdivided data to perform Kaplan–Meier survival analysis on the export trade relations of Chinese wooden flooring, use discrete-time cloglog…
Abstract
Purpose
This article will select 25 years of subdivided data to perform Kaplan–Meier survival analysis on the export trade relations of Chinese wooden flooring, use discrete-time cloglog models to analyze influencing factors, use logit and probit models to test the robustness, and try to systematically reveal the duration of China's wood flooring export trade and its influencing factors.
Design/methodology/approach
This study used Kaplan–Meier survival function estimation method. In the survival analysis, survival function and hazard rate function are often used to characterize the distribution of survival time.
Findings
The continuous average export time of China's wooden flooring is relatively long, about 14 years. China's wooden flooring has a negative time dependency. After the export trade exceeds the threshold value of 15 years, the failure rate of trade greatly decreases, which has a “threshold effect.” Gravity model variables have a significant impact on the duration of China's wooden floor export.
Originality/value
Studying the duration of forest products trade is of great significance for clearing deep-level trade relations and promoting sustainable development of forest products trade.
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Ruixiang Jiang, Bo Wang, Chunchi Wu and Yue Zhang
This chapter examines the impacts of scheduled announcements of 14 widely followed macroeconomic news on the corporate bond market from July 2002 to June 2017 and documents…
Abstract
This chapter examines the impacts of scheduled announcements of 14 widely followed macroeconomic news on the corporate bond market from July 2002 to June 2017 and documents several new findings. First, good (bad) macroeconomic news tends to have a negative (positive) effect on IG bond returns and a positive (negative) effect on high-yield (HY) bond returns. Second, nonfarm payroll (NFP) appears to be the “King of announcements” for the corporate bond market. Third, while information about revisions of prior releases is incorporated into bond prices on announcement days, future revisions fail to be priced in. Fourth, the news information is thoroughly and quickly reflected in bond prices on the announcement day. Finally, corporate bond volatility increases on announcement days, whereas the Zero Lower Bound (ZLB) policy has little effect on conditional volatility.
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The CDROM industry is surrounded by hype. Many believe that it will be the panacea for information storage and delivery. Others predict that it will disappear as online systems…
Abstract
The CDROM industry is surrounded by hype. Many believe that it will be the panacea for information storage and delivery. Others predict that it will disappear as online systems and services become increasingly prevalent. The most‐likely scenario — at least for the rest of the century — is peaceful co‐existence and some convergence of the two technologies. CDROM technology and applications will strive for years to come. This keynote address reviews the most current and the likely future developments in the areas of CDROM database contents, software, hardware and marketing.
Yuqian Zhou, Gongbing Bi, Jiancheng Lv and Hongping Li
This paper aims to develop an optimal buyback promotion strategy for enterprises, including multibuyback strategy and self-buyback strategy, taking both the consumer's…
Abstract
Purpose
This paper aims to develop an optimal buyback promotion strategy for enterprises, including multibuyback strategy and self-buyback strategy, taking both the consumer's multichannel psychological acquisition attributes and remaining market into account.
Design/methodology/approach
Based on the game theory and Hotelling model, the authors formulate a new model to study the equilibrium of different buyback models, given the utility maximization of the consumers, the profit maximization and the constraint on nondecreasing market share of the enterprises, and the authors conduct comparative analysis.
Findings
Intuitively, enterprises buying back products of other brands would appeal to some consumers. However, the authors find that after implementing the multibuyback scheme, enterprises may not be able to seize competitors' markets or even lose their original customer base in the context considered in this article counterintuitive. In addition, the size of remaining market share and the consumer's multichannel psychological acquisition affect the choice of buyback promotion strategies. Moreover, after implementing multibuyback scheme, customers with old products subsidize those who receive additional discounts. Finally, the authors point out that the buyback strategy choices of companies with different goal-oriented are diverse.
Practical implications
This study has a very solid realistic background and provides guidance for enterprises to implement buyback promotion strategies. In addition, the authors unearth new influencing factors to provide a reasonable explanation for different buyback strategies in reality.
Originality/value
To the best of the authors’ knowledge, this study is one of the first to explore the multibuyback promotion strategy as a new buyback method, where the two influencing factors the authors have not been proposed so far.
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Haoyu Gao, Ruixiang Jiang, Chunchi Wu and Xiaoguang Yang
This chapter presents evidence of persistence in pricing new corporate bond issues. Both transition matrix and regression analyses show that cross-sectional differences in the…
Abstract
This chapter presents evidence of persistence in pricing new corporate bond issues. Both transition matrix and regression analyses show that cross-sectional differences in the yields of initial public bond offerings across issuers persist over time, and the persistence effect is stronger for firms with no rating changes, less frequent bond issuance, and higher information asymmetry. Our findings support the hypothesis of the “ride on past” behavior and confirm the value of information production accumulated from the past bond issuances for the pricing of newly issued bonds.
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Exchanges are designed to be default tolerant. The exchange functions as a counter-party in all transactions. A system of margining ensures that a transaction is always…
Abstract
Exchanges are designed to be default tolerant. The exchange functions as a counter-party in all transactions. A system of margining ensures that a transaction is always consummated even if either the buyer or the seller fails to honour his/her commitment. Investigations on the payment crisis at the National Spot Exchange Limited (NSEL) in 2013 involving Rs. 5,600 crore revealed that the reasons for the crisis lay in the hubris of the promoters, connivance and collusion of the independent and institutional directors on the board of NSEL, benevolence of the government and ambivalence of the regulator. The failure raises serious concerns about governance at all levels in the country. Fundamental principles of governance were given a short shrift.
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Hai Lin, Xinyuan Stacie Tao, Junbo Wang and Chunchi Wu
This chapter examines momentum in the corporate bond market using a comprehensive data set that includes bonds with different characteristics and provisions. We find that momentum…
Abstract
This chapter examines momentum in the corporate bond market using a comprehensive data set that includes bonds with different characteristics and provisions. We find that momentum exists in a wide range of corporate bonds. The momentum effect is more significant for callable bonds and lower-rated bonds. This effect cannot be explained by standard risk factors and liquidity in the bond market. Bond momentum prevails over time and remains strong even after the corporate bond market becomes more transparent and liquid with establishment of TRACE. The high magnitude of momentum profits casts doubt that they can be explained by risk-based theories.
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