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Questions tagged [pricing]

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Why do two-sided marketplaces often charge both sides of the transaction?

Why do marketplace apps often charge both sides of the transaction, when charging one side could raise as much (or more) revenue and be simpler? i.e. if the marketplace knows which side of the market ...
dss's user avatar
  • 141
4 votes
0 answers
206 views

Dynamic demand model in many good competitive markets and price optimization

This is a question about demand models, price optimization, dynamic pricing, big data, online learning, so I will cross-post in other communities. $\mathbf{Background}$ I am interested in dynamic ...
VictorZurkowski's user avatar
3 votes
0 answers
177 views

How should I calculate bulk selling price for a small business?

Some friends of mine run a small business, in a small garage-like space, with a few employees, making and selling "plumbuses". The typical customer orders about 5 plumbuses at a time. When I heard ...
Conner Johnston's user avatar
2 votes
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33 views

What pricing strategies does Amazon use and how do they affect consumers' purchasing decisions?

As a frequent Amazon customer, I have noticed that the prices of products I am interested in buying often fluctuate over time. These changes could either be an increase or decrease in price, and I ...
paulmuaddib's user avatar
2 votes
0 answers
202 views

The pricing of complementary goods if one of them is purchased only once

Sorry for asking a homework question, however, I'll try to generalize it as much as possible for a future use. There are two complementary goods (A and B). B is produced under perfect competition, ...
sempol's user avatar
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2 votes
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Are there some guidelines/strategies for deciding between showing a list price vs "call for price"?

I suppose as a buyer many have been on the receiving end of "call for price" price discrimination or one of its less unpleasantly sounding synonyms. Now it's generally known that the average Joe hates ...
the gods from engineering's user avatar
2 votes
0 answers
31 views

Becker Social Pricing and Lack of Smooth Demand

I was reading an article on Becker Social Pricing, where your demand for a good depends on other people's demand for the good. So basically this paper is meant to be a primer into explaining why some ...
Kitsune Cavalry's user avatar
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1 vote
0 answers
20 views

Question about surplus/excess supply

My question is regarding the problem in the image above. As you can see, it says that if I have 300 tons priced at 150 dollars per ton, I should lower my price to the equilibrium price of 100 dollars ...
Anthony Fallone's user avatar
1 vote
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33 views

Is there a name for goods/services/rights/etc. for which the "direction" of payment in a transaction could vary based on circumstances?

For example, consider Amazon Hub Lockers, order pick-up boxes usually located in 3rd party retail venues such as drug/convenience stores, etc. Amazon benefits by reducing last mile delivery costs and ...
ShabbyDoo's user avatar
  • 111
1 vote
0 answers
37 views

The centralized shift from barter to currency economy

Suppose some ancient king of small bronze age city-state wants to introduce universal currency instead of barter that is currently in overwhelming practice in his kingdom. In order to smooth the shift,...
Мікалас Кaрыбутоў's user avatar
1 vote
0 answers
86 views

Why do some prices contain a sequence of a digit repeated several times?

I know about the psychology behind prices that end in 9 or 99, but I'm starting to notice that some prices contain the same digit (not 9) repeated two, three or even four times. For example, in this ...
Ilmer's user avatar
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1 vote
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The Saturn pricing model, did it work?

Has there been a post-mortem on the Saturn pricing model? For those who do not remember, in the 1990s GM sponsored a new car model, the Saturn, which featured "no haggle" pricing. The car would be ...
Lassie Fair's user avatar
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1 vote
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121 views

Metric for evaluating sales with dynamic pricing

Suppose you have a sausage maker. He buys batches of ground meat, then makes and sells sausages. Suppose each batch of ground meat makes N sausages, and each batch has specific level of quality that ...
Carl's user avatar
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1 vote
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How to dynamically update/calculate the price if we have the following values?

Need to update/calculate the price, the given values are: Reserve (Stock) (higher the price can be lower) Cost (the higher, the price can be higher) Sales Speed (the higher, the price can be higher) ...
Bahramdun Adil's user avatar
1 vote
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28 views

Where do economists look for reliable commodity prices for dairy products?

I would like to know the market commodity price of cream cheese. I know you can look up the price of gold in the Wall Street Journal. Where can I get info on dairy products like cream cheese?
Mr. A's user avatar
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65 views

How to model optimal market pricing?

I am interested in understanding how to mathematically model market interaction to optimize pricing strategy. In my model I have two kinds of knowledge: the market's order book and the price/volume ...
Lassie Fair's user avatar
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1 vote
1 answer
140 views

Practical advice for calculating optimal prices

The company I work for is interested in making the pricing for its products more quantitative. I researched the topic and I found some theory for calculating optimal pricing in Microeconomics texts ...
Arthur's user avatar
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How to isolate cross-price elasticities for a price increase across a portfolio of substitutable products?

My business offers a portfolio of 4 products which are substitutes for one another. Over the years, we have increased the prices of these products by varying amounts, such that we can estimate the ...
Josh's user avatar
  • 1
0 votes
1 answer
85 views

Can There Be a Dominant Strategy If Both Firms Choose to Match the Lowest Price in the Market in a Bertrand Model of Competition?

In a Bertrand duopoly model where firms choose to price match ie match the lowest price in the market, any price p∈[c,Pm] (where c is cost and Pm is the monopoly price) can be a Nash. Hence, there are ...
DR109's user avatar
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Relation between High government debt to GDP ratio, financial stability of a country and repricing effect on balance sheet of banks

Was reading an editorial in which author wrote following:- I understood it as follows: India having High Debt/GDP(around 84%), means Foreign portfolio investors(FPIs) will have less confidence to ...
MR LUN's user avatar
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What mathematical rule might eliminate .99 pricing?

What mathematical rule would effectively eliminate .99 pricing? MOTIVATION In the year 2013, the government of Canada stopped minting pennies Suppose that the United States government wanted to ...
Toothpick Anemone's user avatar
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96 views

Pricing elasticity*coefficient from glm

Problem: I would like to understand the pricing elasticity in an industry while factoring in other independent variables that affect units sold. Where I am currently at: Much of the data for this ...
I_like_insights's user avatar
0 votes
0 answers
26 views

Are there any economic reasons why luxury goods should not be auctioned off, or at least dynamically priced, when facing shortages?

Over the last year many prominent examples come to mind, where there does not seem to be any limiting moral or ethical reasons, and are simply not available most of the time due to demand greatly ...
M. Y. Zuo's user avatar
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