Questions tagged [price]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
2
votes
1answer
29 views

Measuring quantities for price indices?

I'm confused about how one acquires the data necessary to compute price indices--specifically, how one acquires quantity data. Suppose I wanted to compute the Laspeyres Index, defined as $\sum\...
1
vote
2answers
65 views

How does price fixing work if it requires an almost universal agreement?

From what I gather, price fixing works by getting all the relevant actors in a certain economic sector to agree to fix the price of the goods they sell at a certain, higher-than-normal price, so that ...
2
votes
0answers
30 views

Price Synchronization in the Calvo Model

In the paper Gorodnichenko, Sheremirov and Talavera (2014) the authors compute empirically the degree of price synchronization across different goods. In a nutshell their definition of synchronization ...
0
votes
1answer
27 views

What does pilot price mean in the context of marketing?

In my lecture slide, it is said to be one of the competition-based price determination. When I searched online, I was unable to find anything relevant.
5
votes
2answers
615 views

What Creates the Price in the First Place

I just wanted to know if price changes how much quantity is supplied or demanded then what creates the price in the first place? If you say that price affects supply and demand and supply and demand ...
0
votes
1answer
910 views

Why is there negative sign for income effect in slutsky equation? [closed]

Slutsky identity is given by: ∆x/∆p = (∆x/∆p)|substitution effect + (∆x/∆p)|income effect Now we know ∆m= x*∆p => ∆p=∆m/x Therefore, ∆x/∆p = (∆x/∆p)|substitution effect + (x*(∆x/∆m))|income effect But ...
1
vote
0answers
10 views

Modeling Asymmetric price adjustment (downward price inflexibility)

There is any way to model downward price inflexibility? Because the different models of sticky prices, don´t have more downward inflexibility than upward.
-1
votes
1answer
38 views

Central Banks Currency being used as value keeping hypothesis

I recently came up with the idea that all the worlds currencies with central banks may be being used as a way to steal value from people who give value to them. And no, im not talking about inflation (...
4
votes
2answers
605 views

Including (demand) price elasticity in a price regression model

I am wondering how to include price elasticity (demand side) in a linear price regression model that is based on asuming price is the result of demand=supply. Constructing a price regression under ...
1
vote
0answers
295 views

Modelling prices to identify price outliers

I am currently trying to find 'Price Outliers' in a set of data. Given a set of product prices (within a product category, e.g. milk) I want to filter for prices that are suspicious - for example I ...
5
votes
1answer
770 views

Simple model to predict oil prices

Back when Hugo Chavez was still alive (former leader of Venezuela), he said they made "simulations" to predict how much oil prices will increase if they retire the supply of oil they were giving to ...
2
votes
1answer
198 views

Is it valid to compare cryptocurrencies by using their smallest divisible unit?

I'd like to compare the relative value (in USD) of three cryptocurrencies: Bitcoin, Ethereum, and IOTA. (See spreadsheet below.) Specifically, I'm comparing the price of each currency's smallest unit ...
1
vote
2answers
35 views

Converting price for service in the foreign market to local price

I am a student researching 3D scanning service and developing it for a specific centre in my country, where the service does not exist in the way it does in USA. I know the price for the service in US....
11
votes
5answers
471 views

Why isn't the cost of shoes affected by their size?

I have noticed that many shoe selling shops I have visited have the same price tag regardless of the shoe size. Intuitively I'd think the bigger the shoe the more material and consequently capital ...
0
votes
2answers
84 views

What gives value to precious, luxury things?

What makes things precious? For example Gold, Silver, Diamonds, etc. Once they were unknown to human being. And now they are the more pricey things. I guess its just the way these things were ...
4
votes
3answers
5k views

Why is the Market-Clearing Price also an Equilibrium Price?

When the price is such that supply equals demand for e.g. bicycles, everybody who wants to buy a bike at that price gets one, and every bike gets sold. Everybody goes home happy and the marketplace ...
0
votes
2answers
507 views

Price optimization with demand forecast

I have one year sales data of a retail company and lets say I am forecasting the next month sales for the product. I have got the sales using time series in R. Now I want to forecast the price as well....
1
vote
1answer
69 views

The existence of free lunch

Is there a free lunch or something beneficial but with zero price? Is air in an unpolluted area free lunch? If so, the sentence "there is always a tradeoff between benefit and cost" is not in general ...
2
votes
0answers
40 views

How to estimate signifcance of price difference?

I am trying to estimate how significant is a difference between two prices. Preface It seems to not be percentage, as price difference of \$0.10 vs \$0.09 wouldn't make me go for the cheaper shop ...
1
vote
1answer
30 views

How to measure expected price growth rate for oil?

How can someone measure the expected annual price growth rate for oil? Also, where can I find past annual price growth rate for oil values? Any help would be appreciated.
0
votes
1answer
120 views

Why are Massachusetts electricity costs so high?

Massachusetts has the third highest electricity cost in the US (after Hawaii and Connecticut). Why is this?
1
vote
1answer
693 views

price elasticity: Linear regression low r square

I faced an interview question for a job where interviewer asked me suppose your r square is very low (between 5 to 10%) for a price elasticity model. How would you solve this question? Anything that ...
1
vote
1answer
77 views

Can heterogeneous prices be consistent with competitive equilibrium?

I do not want to put many constraints on the structure of the problem, except by defining a competitive equilibrium as such where firms are price takers in the factor and good(s) market, and, perhaps (...
0
votes
2answers
779 views

Ranking products according to Price Elasticity Of Demand

Assuming ceteris paribus conditions, rank the following products in order from the most price elastic to the least price elastic. Explain why. Ice Cream Peter’s Chocolate Ice Cream Chocolate Ice ...
-1
votes
1answer
297 views

price floor and price ceiling

I am studying basics of economics. I don't understand why a maximum price should be set below equilibrium price and minimum should be above. shouldn't it be the other way round?
4
votes
1answer
65 views

Effects of price transparency

Company I work at provides software services. After customers sign up, they then can go and order different combinations of services and consume them. We do not expose prices within the flow of them ...
5
votes
2answers
145 views

Can Linear Supply-Demand Equilibria Be Understood as a Feedback-Control Process?

I'm not an economist, but rather an applied mathematician working in control theory. I've recently been watching Berkeley's intro to econ course in a personal project to better understand economics ...
2
votes
0answers
59 views

Addressing endogenity in price elasticity and the Promotion Optimization Problem

I have data on purchases gross prices discounts (like coupons) net prices (i.e. gross price - discounts) number of leads (potential customers at any given time) conversion rates (# purchases / # ...
3
votes
2answers
66 views

Recent estimates of CPI bias?

The Dec 1996 Boskin report (May 1997 AER summary) concluded that the change in the Consumer Price Index (CPI) overstates the change in the cost of living by about 1.1 percentage points per year (...
5
votes
1answer
389 views

How does Brouwer's fixed point theorem relate to Walrasian equilibrium?

I am trying to understand Walrasian equilibrium and its connection to fixed points, especially how we can apply Brouwer’s fixed point theorem to the notion of Walrasian equilibrium. I understand the ...
0
votes
2answers
3k views

What are examples of inversely (negatively) correlated stock prices in economics?

I’m looking for example of two goods/wealth that demonstrate inverse/negative correlation. For example if price of A rises then price of ...
3
votes
1answer
893 views

Why two goods are of different types of Cross Elasticity if we swap them in formula?

I am using this formula for calculating Cross elasticity of demand: $ E_{XY}^D = \Large\frac{(Q_2^X - Q_1^X)(P_2^Y + P_1^Y)}{(Q_2^X + Q_1^X)(P_2^Y - P_1^Y)} $ If $E_{XY}^D$ > 0 Then goods X and Y ...
2
votes
2answers
516 views

Two-good economy, can we tell if the demand of good 1 rises or falls when the price of good 2 rises (price of 1 is constant)?

Suppose we have a two-good economy, and we know that good 1 is a normal good. Can we then make any meaningful observation about the demand for good 1 when we change the price of good 2 and keep the ...
6
votes
3answers
163 views

When to use the market and when to use central planning?

I have a basic question: my understanding is that in a market economy, economic decisions are governed by prices, i.e prices signal what should be produced & how much. This is opposed to central ...
2
votes
0answers
1k views

Price Floors and Subsidies

Why would a government choose to impose a price floor for agricultural commodities when subsidies would prove to be more beneficial for not only consumers, but also the government itself, since they ...
1
vote
1answer
174 views

How can 1 BTC gain value in USD if inflation is happening?

So, right now, 1 BTC (bitcoin) is worth ≈ 578.25 USD. But, with the inflation of the USD, how can 1 BTC still hold its value at 578.25? Why doesn't it decrease? Let's set this example: 1 BTC = 1 USD....
1
vote
0answers
49 views

Find change in gross profit after price change

How do you solve this question? A company has 3 products. They contribute to 30%, 30% and 40% of sales respectively. They have profit margins of 15%, 30%, and 50% respectively. If the ...
1
vote
1answer
276 views

What is autocorrelation of prices?

In my econometrics and economics classes, the term autocorrelation has come up this quarter. I have read the Wikipedia pages about it and tried to understand them, but they are a bit beyond me. They ...
1
vote
1answer
73 views

How to measure home value distribution in a city? [closed]

I would like to know how I can measure and compare the distributions of home values across cities. I have collected the following data for each city: a) median price in the city; b) number of ...
-1
votes
1answer
223 views

Price Optimization from Data

How can I find the optimal price that maximizes profits, given past sales data? I thought I could do this, but I've been running into problems. Data: ...
10
votes
3answers
3k views

Why do low-budget films charge the same amount at the box office as super-high budget films?

In most occurrences, lower production costs translate into lower sales costs. Obviously there are other factors that influence price, including perceived value (affected by advertising), monopolies, ...