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Questions tagged [pricing]

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1k views

Why doesn't Costco simply raise prices and nix the membership fee?

I know little about the field of economics. I realize this question may be too rudimentary for this forum but I am sure someone here can explain this. My question concerns Costco, which is a ...
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1answer
173 views

Approximating the socially-optimal price in a monopolist market

A monopoly firm has an incentive to increase the price and decrease the produced quantity in order to increase its revenues. But this decreases the social welfare. The government can intervene in ...
7
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3answers
154 views

Is there an economic analysis of how piracy allows a product to take a hegemonic position?

There's an interesting situation with the likes of Photoshop, where the software being pirated actually increases its market usage, and the software becomes the de facto standard, in part due to ...
0
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1answer
1k views

What is the correct way to calculate a selling price from margin and a cost?

There seems to be two formula to calculate a selling price. The first formula that I came upon would be ...
8
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1answer
168 views

Hedging with volatility swaps?

I'm studying financial derivatives, and became curiosity in volatility products, more specifically volatility swaps. It always intrigued me how can you create products based on volatility. Who is ...
7
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2answers
104 views

What are some different methods for pricing electricity?

I know that in New Zealand, the wholesale price of electricity is set using a spot market, whereby every half hour, each of the electricity producers provide offers for how much electricity they can ...