Nonlinear Pricing in Energy and Environmental Markets

NASA Astrophysics Data System (ADS)

Ito, Koichiro

This dissertation consists of three empirical studies on nonlinear pricing in energy and environmental markets. The first investigates how consumers respond to multi-tier nonlinear price schedules for residential electricity. Chapter 2 asks a similar research question for residential water pricing. Finally, I examine the effect of nonlinear financial rewards for energy conservation by applying a regression discontinuity design to a large-scale electricity rebate program that was implemented in California. Economic theory generally assumes that consumers respond to marginal prices when making economic decisions, but this assumption may not hold for complex price schedules. The chapter "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing" provides empirical evidence that consumers respond to average price rather than marginal price when faced with nonlinear electricity price schedules. Nonlinear price schedules, such as progressive income tax rates and multi-tier electricity prices, complicate economic decisions by creating multiple marginal prices for the same good. Evidence from laboratory experiments suggests that consumers facing such price schedules may respond to average price as a heuristic. I empirically test this prediction using field data by exploiting price variation across a spatial discontinuity in electric utility service areas. The territory border of two electric utilities lies within several city boundaries in southern California. As a result, nearly identical households experience substantially different nonlinear electricity price schedules. Using monthly household-level panel data from 1999 to 2008, I find strong evidence that consumers respond to average price rather than marginal or expected marginal price. I show that even though this sub-optimizing behavior has a minimal impact on individual welfare, it can critically alter the policy implications of nonlinear pricing. The second chapter " How Do Consumers Respond to Nonlinear Pricing? Evidence from Household Water Demand" provides similar empirical evidence in residential water markets. In this paper, I exploit variation in residential water pricing in Southern California to examine how consumers respond to nonlinear pricing. Contrary to the standard predictions for nonlinear budget sets, I find no bunching of consumers around the kink points of their nonlinear price schedule. I then explore whether consumers respond to marginal price, expected marginal price, or average price when faced with nonlinear water price schedules. The price schedule of one service area was changed from a linear price schedule to a nonlinear price schedule. This policy change lead to an increase in marginal price and expected marginal price but a decrease in average price for many consumers. Using household-level panel data, I find strong evidence that consumers respond to average price rather than marginal or expected marginal price. Estimates of the short-run price elasticity for the summer and winter months are -.127 and -.097, and estimates of the long-run price elasticity for the summer and winter months are -.203 and -.154. I conclude with "The Effect of Cash Rewards on Energy Conservation: Evidence from a Regression Discontinuity Design" to examine the effect of an alternative form of nonlinear pricing that was developed to provide an explicit financial incentive for conservation. In the summer of 2005, California residents received a 20% discount on their summer electricity bills if they could reduce their electricity consumption by 20% relative to 2004. Nearly all households automatically participated in the program, but the eligibility rule required households to have started their electricity service by a certain cutoff date in 2004. This rule generated an essentially random assignment of the program among households that started their service right before and after the cutoff date. Using household-level monthly billing records from the three largest California electric utilities, I find evidence that the rebate incentive reduced consumption by 5% to 10% in the areas where summer temperature is persistently high and income-level is relatively low, but the estimated treatment effects are nearly zero in other areas. To save 1 kWh of electricity, the program cost 2 cents in inland areas, 91 cents in coastal areas, and 14.8 cents for all service areas.

Consumer behaviour towards price-reduced suboptimal foods in the supermarket and the relation to food waste in households.

PubMed

Aschemann-Witzel, Jessica; Jensen, Jacob Haagen; Jensen, Mette Hyldetoft; Kulikovskaja, Viktorija

2017-09-01

To combat food waste, supermarkets offer food items at a reduced price in-store when they are close to the expiration date or perceived as suboptimal. It is yet unknown, however, which considerations consumers engage in when deciding about the offer, and whether focusing particularly on the price during food purchase might be related to greater food waste at home. Knowledge about both the consumers' food purchase process for these price-reduced foods and the potential wastage of price-focused consumers can contribute to the assessment of whether or not offering suboptimal food at reduced prices in-store actually reduces food waste across the supply chain. We explore these questions in a mixed-method study including 16 qualitative accompanied shopping interviews and a quantitative online experimental survey with 848 consumers in Denmark. The interviews reveal that the consumers interviewed assess their ability to consume the price-reduced suboptimal food at home already while in the store. Consumers consider the relation between product-related factors of package unit, expiration date, and product quality, in interaction with household-related factors of freezing/storing, household size/demand, and possible meal/cooking. The survey shows that consumers who are more price-focused report lower food waste levels and lower tendency to choose the optimal food item first at home, than those who are not emphasizing the price-quality relation or do not search for price offers to the same extent. Higher age and high education also played a role, and the price-focus is lower in high-income groups and among single households. The findings allow deriving recommendations for retailers and policy makers to support both the marketability and the subsequent actual consumption of price-reduced suboptimal food, but they also raise questions for further research of this underexplored area. Copyright © 2017 Elsevier Ltd. All rights reserved.

45 CFR 305.1 - Definitions.

Code of Federal Regulations, 2011 CFR

2011-10-01

..., STANDARDS, FINANCIAL INCENTIVES, AND PENALTIES § 305.1 Definitions. The definitions found in § 301.1 of this... Consumer Price Index or CPI means the last Consumer Price Index for all-urban consumers published by the Department of Labor. The CPI for a fiscal year is the average of the Consumer Price Index for the 12-month...

Most Americans Do Not Believe That There Is An Association Between Health Care Prices And Quality Of Care

PubMed Central

Phillips, Kathryn A; Schleifer, David; Hagelskamp, Carolin

2016-01-01

Many organizations are developing health care price information tools for consumers. However, consumers may avoid low-price care if they perceive price to be associated with quality. We conducted a nationally representative survey to examine whether consumers perceive that price and quality are associated and whether the way in which questions are framed affects consumers’ responses. Most Americans (58–71 percent, depending on question framing) did not think that price and quality are associated, but a substantial minority did perceive an association (21–24 percent) or were unsure if there was one (8–16 percent). Responses to questions framed in terms of high price and high quality differed from responses to questions framed in terms of low price and low quality. People who had compared prices were more likely than those who have not compared prices to perceive that price and quality were associated. We explore implications of these findings, including how behavioral economics can inform approaches to helping consumers use price and quality information. PMID:27044965

Retailer branding of consumer sales promotions. A major development in food marketing?

PubMed

Hamlin, Robert P; Lindsay, Sophie; Insch, Andrea

2012-02-01

This article examines retailer branding of consumer price promotions. It discusses the mechanics of price promotions, consumers' reactions to them and the benefits that accrue to those that use them. It describes how large food retailers can now deploy branded price promotion systems that are fundamentally different to 'traditional' price promotions in both their mechanics and their effects on consumer decision processes. The article describes a field experiment that compared the performance of a food retailer's branded price promotion system with that of a generic (manufacturer) price promotion. The research involved three experiments that covered two food categories (sliced bread and margarine) and two levels of discount (10% and 20%). The results indicate that food retailers are able to attach powerful brands to their price promotion systems, and these brand heuristics can significantly increase consumer purchase intent relative to an equivalent generic/manufacturer promotion. This incremental heuristic effect was stable in both categories and for both levels of price discount studied. These results are consistent with the predictions of alternative, non-cognitive and heuristic based models of food consumer choice that have been published recently in 'Appetite'. Copyright © 2011 Elsevier Ltd. All rights reserved.

Behavior analysis in consumer affairs: Retail and consumer response to publicizing food price information

PubMed Central

Greene, Brandon F.; Rouse, Mark; Green, Richard B.; Clay, Connie

1984-01-01

A popular program among consumer action groups involves publicizing comparative food price information (CFPI) gathered from retail stores. Its significance is based on the assumption that publishing CFPI maximizes retail competition (i.e., moderates price levels or price increases) and occasions more frugal store selections among consumers. We tested these assumptions during a 2-year analysis. Specifically, we monitored the prices of two distinct market baskets in the supermarkets of two midwestern cities (target and contrast cities). Following a lengthy baseline, we published the prices of only one of the market baskets at stores in the target city in the local newspaper on five different occasions. The results suggested that reductions in price inflation occurred for both market baskets at the independently operated target stores. The corporate chain stores were not similarly affected. In addition, surveys indicated that many consumers used the CFPI as a basis for store selection. Finally, the analysis included a discussion of the politics, economics, and future of CFPI programs. PMID:16795672

12 CFR 222.72 - General requirements for risk-based pricing notices.

Code of Federal Regulations, 2011 CFR

2011-01-01

... provided to a consumer by placing the consumer within one of a discrete number of pricing tiers for a... lowest-priced tier). For example, a person that uses a tiered pricing structure with annual percentage...

12 CFR 1022.72 - General requirements for risk-based pricing notices.

Code of Federal Regulations, 2014 CFR

2014-01-01

... provided to a consumer by placing the consumer within one of a discrete number of pricing tiers for a... lowest-priced tier). For example, a person that uses a tiered pricing structure with annual percentage...

12 CFR 1022.72 - General requirements for risk-based pricing notices.

Code of Federal Regulations, 2012 CFR

2012-01-01

... consumer by placing the consumer within one of a discrete number of pricing tiers for a specific type of...-priced tier). For example, a person that uses a tiered pricing structure with annual percentage rates of...

12 CFR 1022.72 - General requirements for risk-based pricing notices.

Code of Federal Regulations, 2013 CFR

2013-01-01

... provided to a consumer by placing the consumer within one of a discrete number of pricing tiers for a... lowest-priced tier). For example, a person that uses a tiered pricing structure with annual percentage...

12 CFR 222.72 - General requirements for risk-based pricing notices.

Code of Federal Regulations, 2012 CFR

2012-01-01

... provided to a consumer by placing the consumer within one of a discrete number of pricing tiers for a... lowest-priced tier). For example, a person that uses a tiered pricing structure with annual percentage...

Limited Use of Price and Quality Advertising Among American Hospitals

PubMed Central

Wilks, Chrisanne E A; Richter, Jason P

2013-01-01

Background Consumer-directed policies, including health savings accounts, have been proposed and implemented to involve individuals more directly with the cost of their health care. The hope is this will ultimately encourage providers to compete for patients based on price or quality, resulting in lower health care costs and better health outcomes. Objective To evaluate American hospital websites to learn whether hospitals advertise directly to consumers using price or quality data. Methods Structured review of websites of 10% of American hospitals (N=474) to evaluate whether price or quality information is available to consumers and identify what hospitals advertise about to attract consumers. Results On their websites, 1.3% (6/474) of hospitals advertised about price and 19.0% (90/474) had some price information available; 5.7% (27/474) of hospitals advertised about quality outcomes information and 40.9% (194/474) had some quality outcome data available. Price and quality information that was available was limited and of minimal use to compare hospitals. Hospitals were more likely to advertise about service lines (56.5%, 268/474), access (49.6%, 235/474), awards (34.0%, 161/474), and amenities (30.8%, 146/474). Conclusions Insufficient information currently exists for consumers to choose hospitals on the basis of price or quality, making current consumer-directed policies unlikely to realize improved quality or lower costs. Consumers may be more interested in information not related to cost or clinical factors when choosing a hospital, so consumer-directed strategies may be better served before choosing a provider, such as when choosing a health plan. PMID:23988296

Limited use of price and quality advertising among American hospitals.

PubMed

Muhlestein, David B; Wilks, Chrisanne E A; Richter, Jason P

2013-08-29

Consumer-directed policies, including health savings accounts, have been proposed and implemented to involve individuals more directly with the cost of their health care. The hope is this will ultimately encourage providers to compete for patients based on price or quality, resulting in lower health care costs and better health outcomes. To evaluate American hospital websites to learn whether hospitals advertise directly to consumers using price or quality data. Structured review of websites of 10% of American hospitals (N=474) to evaluate whether price or quality information is available to consumers and identify what hospitals advertise about to attract consumers. On their websites, 1.3% (6/474) of hospitals advertised about price and 19.0% (90/474) had some price information available; 5.7% (27/474) of hospitals advertised about quality outcomes information and 40.9% (194/474) had some quality outcome data available. Price and quality information that was available was limited and of minimal use to compare hospitals. Hospitals were more likely to advertise about service lines (56.5%, 268/474), access (49.6%, 235/474), awards (34.0%, 161/474), and amenities (30.8%, 146/474). Insufficient information currently exists for consumers to choose hospitals on the basis of price or quality, making current consumer-directed policies unlikely to realize improved quality or lower costs. Consumers may be more interested in information not related to cost or clinical factors when choosing a hospital, so consumer-directed strategies may be better served before choosing a provider, such as when choosing a health plan.

Demystifying patient price estimates. The advantages of transparency.

PubMed

Kane, Cheri S; Harvey, Gayla

2015-05-01

With the increase of high-deductible health plans, more consumers want to know the cost of their health care before they purchase services. A healthcare organization should formulate transparent price policies that: Fit with its intentions, processes, and goals. Ensure consumers are thoroughly educated about their financial responsibilities. Include the use of consumer pricing tools that help patients feel like empowered consumers. Reflect an enterprisewide culture of transparency.

Impact of price and thickness on consumer selection of ribeye, sirloin, and top loin steaks.

PubMed

Leick, C M; Behrends, J M; Schmidt, T B; Schilling, M W

2012-05-01

Consumers (n=316) were recruited from college football picnickers to select ribeye, sirloin, and top loin steaks from 3 price groups based on thickness (n=10 steaks per price/type combination). Constant weight steaks were assigned to these groups: P1, thinnest, $19.80/kg ribeye and top loin, $10.99/kg sirloin; P2, average thickness, $22.00/kg ribeye and top loin, $13.19/kg sirloin; P3, thickest, $24.21/kg ribeye and top loin, $15.40/kg sirloin. Consumers selected 3 steaks per type and ranked selection criteria (price, color, marbling, thickness, texture). Percentage of steaks chosen from each price group did not differ (P>0.05), but consumers tended to select thinner ribeye steaks (P1 and P2) and thicker sirloin steaks (P2 and P3). Across all steak types, a greater number of consumers reported that marbling, color, and thickness were more important than price and visual texture. Data indicate that consumers may select steaks that display their preferred attributes, even if the steaks cost more. Copyright © 2011 Elsevier Ltd. All rights reserved.

Price-Shopping in Consumer-Directed Health Plans

PubMed Central

Sood, Neeraj; Wagner, Zachary; Huckfeldt, Peter; Haviland, Amelia

2013-01-01

We use health insurance claims data from 63 large employers to estimate the extent of price shopping for nine common outpatient services in consumer-directed health plans (CDHPs) compared to traditional health plans. The main measures of price-shopping include: (1) the total price paid on the claim, (2) the share of claims from low and high cost providers and (3) the savings from price shopping relative to choosing prices randomly. All analyses control for individual and zip code level demographics and plan characteristics. We also estimate differences in price shopping within CDHPs depending on expected health care costs and whether the service was bought before or after reaching the deductible. For 8 out of 9 services analyzed, prices paid by CDHP and traditional plan enrollees did not differ significantly; CDHP enrollees paid 2.3% less for office visits. Similarly, office visits was the only service where CDHP enrollment resulted in a significantly larger share of claims from low cost providers and greater savings from price shopping relative to traditional plans. There was also no evidence that, within CDHP plans, consumers with lower expected medical expenses exhibited more price-shopping or that consumers exhibited more price-shopping before reaching the deductible. PMID:25342936

Tradeoffs between Price and Quality: How a Value Index Affects Preference Formation.

ERIC Educational Resources Information Center

Creyer, Elizabeth H.; Ross, William T., Jr.

1997-01-01

Some of a group of 143 consumers were given a choice between higher-priced, higher-quality items and items with lower price and quality but higher value index (benefit/cost tradeoff); others were given price and quality information only. Consumers were more likely to choose lower-priced, higher-value options when the index information was…

Authorized generic drugs, price competition, and consumers' welfare.

PubMed

Berndt, Ernst R; Mortimer, Richard; Bhattacharjya, Ashoke; Parece, Andrew; Tuttle, Edward

2007-01-01

The growing frequency of authorized generics has important implications for the welfare of prescription drug consumers. Authorized generic entry could affect the timing of generic entry, brand-name and generic prices, and generic penetration. We reviewed 1999-2003 data and found that generic entry in the absence of short-run exclusivity restrictions benefits consumers through lower short-run prices. We suggest that these benefits likely also result from authorized generics. We posit that long-run prices and shares are likely essentially unaffected by authorized generics and that potential costs to consumers from any delayed generic entry are likely small.

Price Transparency in the Online Age.

PubMed

Kaplan, Jonathan L; Mills, Parker H

2016-05-01

Plastic surgeons are sometimes hesitant to provide their pricing information online, due to several concerns. However, if implemented right, price transparency can be used as a lead generation tool that provides consumers with the pricing information they want and gives the physician the consumer's contact information for follow-up. This study took place during the author's first year in private practice in a new city. An interactive price transparency platform (ie, cost estimator) was integrated into his website, allowing consumers to submit a "wishlist" of procedures to check pricing on these procedures of interest. However, the consumer must submit their contact information to receive the desired breakdown of costs that are tailored based on the author's medical fees. During that first year, without any advertising expenditure, the author's website received 412 wishlists from 208 unique consumers. Consumers (17.8%) that submitted a wishlist came in for a consultation and 62% of those booked a procedure. The average value of a booked procedure was over US $4000 and cumulatively, all of the leads from this one lead source in that first year generated over US $92,000 in revenue. When compared with non-price-aware patients, price-aware patients were 41% more likely to book a procedure. Price transparency led to greater efficiency and reduced consultations that ended in "sticker shock." When prudently integrated into a medical practice, price transparency can be a great lead generation source for patients that are (1) paying out of pocket for medically necessary services due to a high-deductible health plan or (2) paying for services not typically covered by insurance, such as cosmetic services.

Reference Pricing Changes The 'Choice Architecture' Of Health Care For Consumers.

PubMed

Robinson, James C; Brown, Timothy T; Whaley, Christopher

2017-03-01

Reference pricing in health insurance creates incentives for patients to select for nonemergency services providers that charge relatively low prices and still offer high quality of care. It changes the "choice architecture" by offering standard coverage if the patient chooses cost-effective providers but requires considerable consumer cost sharing if more expensive alternatives are selected. The short-term impact of reference pricing has been to shift patient volumes from hospital-based to freestanding surgical, diagnostic, imaging, and laboratory facilities. This article summarizes reference pricing's impacts to date on patient choice, provider prices, surgical complications, and employer spending and estimates its potential impacts if expanded to more services and a broader population. Reference pricing induces consumers to select lower-price alternatives for all of the forms of care studied, leading to significant reductions in prices paid and spending incurred by insurers and employers. The impact on consumer cost sharing is mixed, with some studies finding higher copayments and some lower. We conclude with a discussion of the incentives created for providers to redesign their clinical processes and for efficient providers to expand into price-sensitive markets. Over time, reference pricing may increase pressures for price competition and lead to further cost-reducing innovations in health care products and processes. Project HOPE—The People-to-People Health Foundation, Inc.

In-Store Experimental Approach to Pricing and Consumer Behavior

ERIC Educational Resources Information Center

Sigurdsson, Valdimar; Foxall, Gordon; Saevarsson, Hugi

2010-01-01

This study assessed how, and to what extent, it is possible to use behavioral experimentation and relative sales analysis to study the effects of price on consumers' brand choices in the store environment. An in-store experiment was performed in four stores to investigate the effects of different prices of a target brand on consumers' relative…

Follow Your Heart: How Is Willingness to Pay Formed under Multiple Anchors?

PubMed Central

Lin, Chien-Huang; Chen, Ming

2017-01-01

In sales, a common promotional tactic is to supplement a required purchase (i.e., a focal product) by offering a free or discounted product (i.e., a supplementary product). The present research examines the contextual factors driving consumer evaluations of the supplementary product after the promotion has been terminated. Two experiments are used to demonstrate that consumers use multiple anchors to determine the value of a supplementary product. Consumers use other types of price information, such as the internal reference price (IRP), promotional price, and original price of the supplementary product, as anchors to adjust their willingness to pay. Among the multiple anchors, the consumer’s IRP is not only the crucial anchor to estimate the willingness to pay but also the criterion to determine whether other price information can serve as anchors. Price information, such as the promotional and original price of the supplementary product, which is higher (lower) than the IRP, will increase (decrease) the willingness to pay. However, these anchors are only employed when the price information is considered to be plausible. Assimilation and contrast effects occur when the IRP is used by consumers as a criterion to judge the reasonableness of other anchors. When the external price information belongs (does not belong) to consumers’ distribution of IRP, assimilation (contrast) effects occur, and consumers will regard the external reference price (ERP) to be a plausible (implausible) price. Limitations and future avenues for research are also discussed. PMID:29312098

Joint Decisions on Production and Pricing with Strategic Consumers for Green Crowdfunding Products.

PubMed

Chen, Yuting; Zhang, Rong; Liu, Bin

2017-09-20

Green crowdfunding is developing as a novel and popular transaction method, which can largely improve the efficiency of raising initial funds and selling innovative green products or services. In this paper, we explore the creator's joint decisions regarding green crowdfunding products of different quality levels that can sufficiently satisfy consumer preferences. Firstly, considering the characteristics of a green crowdfunding product, we present four pricing strategies when substitutes exist. Then we propose the optimal pricing strategies to maximize the total profit for the creator under different circumstances, facing strategic and myopic consumers. Finally, for the heterogeneity of consumer valuations, we compare the total profits of the four pricing strategies under different values of the substitution coefficient to obtain the optimal pricing and product strategies under the coexistence of strategic and myopic consumers. According to the result, we find that when the fraction of high-type consumers and the gap between high and low valuations is big, or when they are both small, traditional single pricing shows its benefit. However, when the green crowdfunding products are better than their substitute, a line of green products is more likely to be optimal.

Energy services in the information age: The convergence of energy, communications, and information technologies

DOE Office of Scientific and Technical Information (OSTI.GOV)

Centolella, P.A.

1998-07-01

Most of the economic efficiency benefits of electric restructuring--consumer choice based on price and risk preferences, efficient capacity utilization, capacity expansion that reflects marketability, and innovative products--depend upon consumer access to information and opportunities to respond to time- and location-specific prices and customized products. Information and communications technologies from back-room data management centers to intelligent consumer gateways will play an essential role in marketing energy services in a retail access environment. This paper describes the role of information and communications technology in electric industry restructuring and retailing of energy services. It includes a survey of economic analyses on the likelymore » variability in competitive generation prices and consumer responses if such prices are effectively communicated. The paper describes the potential benefits and cost savings associated with flexible consumer responses to price variability. It identifies consumer loads and preferences. Finally, the paper describes the building blocks of information systems being developed to facilitate price-responsive energy management and provide a range of other energy services. Intelligent gateways, analytical tools for facility load prediction and optimizing energy management responses, and electronic commerce applications are discussed.« less

Joint Decisions on Production and Pricing with Strategic Consumers for Green Crowdfunding Products

PubMed Central

Chen, Yuting; Zhang, Rong

2017-01-01

Green crowdfunding is developing as a novel and popular transaction method, which can largely improve the efficiency of raising initial funds and selling innovative green products or services. In this paper, we explore the creator’s joint decisions regarding green crowdfunding products of different quality levels that can sufficiently satisfy consumer preferences. Firstly, considering the characteristics of a green crowdfunding product, we present four pricing strategies when substitutes exist. Then we propose the optimal pricing strategies to maximize the total profit for the creator under different circumstances, facing strategic and myopic consumers. Finally, for the heterogeneity of consumer valuations, we compare the total profits of the four pricing strategies under different values of the substitution coefficient to obtain the optimal pricing and product strategies under the coexistence of strategic and myopic consumers. According to the result, we find that when the fraction of high-type consumers and the gap between high and low valuations is big, or when they are both small, traditional single pricing shows its benefit. However, when the green crowdfunding products are better than their substitute, a line of green products is more likely to be optimal. PMID:28930198

42 CFR 447.505 - Determination of best price.

Code of Federal Regulations, 2014 CFR

2014-10-01

...; (7) Prices of sales directly to patients; (8) Prices available to mail order pharmacies; (9) Prices... consumer, agent, pharmacy or another entity acting on behalf of the manufacturer; but only to the extent that the full value of the coupon is passed on to the consumer and the pharmacy, agent, or other entity...

42 CFR 447.505 - Determination of best price.

Code of Federal Regulations, 2011 CFR

2011-10-01

...; (7) Prices of sales directly to patients; (8) Prices available to mail order pharmacies; (9) Prices... consumer, agent, pharmacy or another entity acting on behalf of the manufacturer; but only to the extent that the full value of the coupon is passed on to the consumer and the pharmacy, agent, or other entity...

42 CFR 447.505 - Determination of best price.

Code of Federal Regulations, 2010 CFR

2010-10-01

...; (7) Prices of sales directly to patients; (8) Prices available to mail order pharmacies; (9) Prices... consumer, agent, pharmacy or another entity acting on behalf of the manufacturer; but only to the extent that the full value of the coupon is passed on to the consumer and the pharmacy, agent, or other entity...

Non-price competition in the regional high-rise construction market

NASA Astrophysics Data System (ADS)

Ganebnykh, Elena; Burtseva, Tatyana; Gurova, Ekaterina; Polyakova, Irina

2018-03-01

The article analyzes the market of high-rise residential construction in the city of Kirov (Russia). A minimal significance of price factors has been revealed in the process of the market analysis. This suggests that a lower price does not guarantee an increase in consumer demand. Thus, factors of non-price competition are of great importance in the market in question. The expert survey has identified the factors of non-price competition which influence consumer perceptions. A perceptual map has been constructed on the basis of the identified factors by means of the factor analysis to determine the positioning of each high-rise building relative to the consumer requirements. None of the high-rise residential buildings in the market in question meets the consumers' expectations of an "ideal facility".

State prescription drug price Web sites: how useful to consumers?

PubMed

Tu, Ha T; Corey, Catherine G

2008-02-01

To aid consumers in comparing prescription drug costs, many states have launched Web sites to publish drug prices offered by local retail pharmacies. The current push to make retail pharmacy prices accessible to consumers is part of a much broader movement to increase price transparency throughout the health-care sector. Efforts to encourage price-based shopping for hospital and physician services have encountered widespread concerns, both on grounds that prices for complex services are difficult to measure and compare accurately and that quality varies substantially across providers. Experts agree, however, that prescription drugs are much easier to shop for than other, more complex health services. However, extensive gaps in available price information--the result of relying on Medicaid data--seriously hamper the effectiveness of state drug price-comparison Web sites, according to a new study by the Center for Studying Health System Change (HSC). An alternative approach--requiring pharmacies to submit price lists to the states--would improve the usefulness of price information, but pharmacies typically oppose such a mandate. Another limitation of most state Web sites is that price information is restricted to local pharmacies, when online pharmacies, both U.S. and foreign, often sell prescription drugs at substantially lower prices. To further enhance consumer shopping tools, states might consider expanding the types of information provided, including online pharmacy comparison tools, lists of deeply discounted generic drugs offered by discount retailers, and lists of local pharmacies offering price matches.

Spanish, French and British consumers' acceptability of Uruguayan beef, and consumers' beef choice associated with country of origin, finishing diet and meat price.

PubMed

Realini, C E; Font i Furnols, M; Sañudo, C; Montossi, F; Oliver, M A; Guerrero, L

2013-09-01

The effect of country of origin (local, Switzerland, Argentina, Uruguay), finishing diet (grass, grass plus concentrate, concentrate), and price (low, medium, high) on consumer's beef choice and segmentation was evaluated in Spain, France and United Kingdom. Sensory acceptability of Uruguayan beef from different production systems was also evaluated and contrasted with consumers' beef choices. Origin was the most important characteristic for the choice of beef with preference for meat produced locally. The second most important factor was animal feed followed by price with preference for beef from grass-fed animals and lowest price. The least preferred product was beef from Uruguay, concentrate-fed animals and highest price. Sensory data showed higher acceptability scores for Uruguayan beef from grass-fed animals with or without concentrate supplementation than animals fed concentrate only. Consumer segments with distinct preferences were identified. Foreign country promotion seems to be fundamental for marketing beef in Europe, as well as the development of different marketing strategies to satisfy each consumer segment. Copyright © 2013 Elsevier Ltd. All rights reserved.

Demand side management in recycling and electricity retail pricing

NASA Astrophysics Data System (ADS)

Kazan, Osman

This dissertation addresses several problems from the recycling industry and electricity retail market. The first paper addresses a real-life scheduling problem faced by a national industrial recycling company. Based on their practices, a scheduling problem is defined, modeled, analyzed, and a solution is approximated efficiently. The recommended application is tested on the real-life data and randomly generated data. The scheduling improvements and the financial benefits are presented. The second problem is from electricity retail market. There are well-known patterns in daily usage in hours. These patterns change in shape and magnitude by seasons and days of the week. Generation costs are multiple times higher during the peak hours of the day. Yet most consumers purchase electricity at flat rates. This work explores analytic pricing tools to reduce peak load electricity demand for retailers. For that purpose, a nonlinear model that determines optimal hourly prices is established based on two major components: unit generation costs and consumers' utility. Both are analyzed and estimated empirically in the third paper. A pricing model is introduced to maximize the electric retailer's profit. As a result, a closed-form expression for the optimal price vector is obtained. Possible scenarios are evaluated for consumers' utility distribution. For the general case, we provide a numerical solution methodology to obtain the optimal pricing scheme. The models recommended are tested under various scenarios that consider consumer segmentation and multiple pricing policies. The recommended model reduces the peak load significantly in most cases. Several utility companies offer hourly pricing to their customers. They determine prices using historical data of unit electricity cost over time. In this dissertation we develop a nonlinear model that determines optimal hourly prices with parameter estimation. The last paper includes a regression analysis of the unit generation cost function obtained from Independent Service Operators. A consumer experiment is established to replicate the peak load behavior. As a result, consumers' utility function is estimated and optimal retail electricity prices are computed.

The effect of Taiwan's tax-induced increases in cigarette prices on brand-switching and the consumption of cigarettes.

PubMed

Tsai, Yi-Wen; Yang, Chung-Lin; Chen, Chin-Shyan; Liu, Tsai-Ching; Chen, Pei-Fen

2005-06-01

The effect of raising cigarette taxes to reduce smoking has been the subject of several studies, which often treat the price of cigarettes as an exogenous factor given to smokers who respond to it by adjusting their smoking behavior. However, cigarette prices vary with brand and quality, and smokers can and do switch to lower-priced brands to reduce the impact of the tax on the cost of cigarettes as they try to consume the same number of cigarettes as they had before a tax hike. Using data from a two-year follow-up interview survey conducted before and after a new cigarette tax scheme was imposed in Taiwan in 2002, this study examines three behavioral changes smokers may make to respond to tax-induced cigarette price increase: brand-switching, amount consumed, and amount spent on smoking. These changes were studied in relation to smoker income, before-tax cigarette price, level of addiction, exposure to advertizing, and consumer loyalty. We found that smokers, depending upon exposure to advertizing, level of consumer loyalty and initial price of cigarettes, switched brands to maintain current smoking habits and control costs. We also found that the initial amount smoked and level of addiction, not price, at least not at the current levels in Taiwan, determined whether a smoker reduced the number of cigarettes he consumed. Copyright 2005 John Wiley & Sons, Ltd.

Optimal public rationing and price response.

PubMed

Grassi, Simona; Ma, Ching-To Albert

2011-12-01

We study optimal public health care rationing and private sector price responses. Consumers differ in their wealth and illness severity (defined as treatment cost). Due to a limited budget, some consumers must be rationed. Rationed consumers may purchase from a monopolistic private market. We consider two information regimes. In the first, the public supplier rations consumers according to their wealth information (means testing). In equilibrium, the public supplier must ration both rich and poor consumers. Rationing some poor consumers implements price reduction in the private market. In the second information regime, the public supplier rations consumers according to consumers' wealth and cost information. In equilibrium, consumers are allocated the good if and only if their costs are below a threshold (cost effectiveness). Rationing based on cost results in higher equilibrium consumer surplus than rationing based on wealth. Copyright © 2011 Elsevier B.V. All rights reserved.

Do higher-priced generic medicines enjoy a competitive advantage under reference pricing?

PubMed

Puig-Junoy, Jaume

2012-11-01

In many countries with generic reference pricing, generic producers and distributors compete by means of undisclosed discounts offered to pharmacies in order to reduce acquisition costs and to induce them to dispense their generic to patients in preference over others. The objective of this article is to test the hypothesis that under prevailing reference pricing systems for generic medicines, those medicines sold at a higher consumer price may enjoy a competitive advantage. Real transaction prices for 179 generic medicines acquired by pharmacies in Spain have been used to calculate the discount rate on acquisition versus reimbursed costs to pharmacies. Two empirical hypotheses are tested: the discount rate at which pharmacies acquire generic medicines is higher for those pharmaceutical presentations for which there are more generic competitors; and, the discount rate at which pharmacies acquire generic medicines is higher for those pharmaceutical forms for which the consumer price has declined less in relation to the consumer price of the brand drug before generic entry (higher-priced generic medicines). An average discount rate of 39.3% on acquisition versus reimbursed costs to pharmacies has been observed. The magnitude of the discount positively depends on the number of competitors in the market. The higher the ratio of the consumer price of the generic to that of the brand drug prior to generic entry (i.e. the smaller the price reduction of the generic in relation to the brand drug), the larger the discount rate. Under reference pricing there is intense price competition among generic firms in the form of unusually high discounts to pharmacies on official ex-factory prices reimbursed to pharmacies. However, this effect is highly distorting because it favours those medicines with a higher relative price in relation to the brand price before generic entry.

75 FR 69145 - Postal Rate Changes

Federal Register 2010, 2011, 2012, 2013, 2014

2010-11-10

.... Attachment 2--a redacted copy of Governors' Decision No. 09-15 which establishes prices and classifications... Notice states that Governors' Decision No. 09-15 established prices and classifications not of general... annual inflation information from the Consumer Price Index for All Urban Consumers. Id. Based on this and...

JPRS Report, East Europe.

DTIC Science & Technology

1991-06-19

percent, and gross agricultural output by 3.4 percent. b) The average level of consumer prices was 10 percent higher in 1990 than in 1989, even...in the form of continuing subsidies to small consumers for heat and heating energy. Yet even after raising the retail prices (effective 1 May) the...18.9 Consumer price supports 13,290 42.5 Contributions after state property 6,195 34.3 Accumulation expendi- tures 8,500 13.7 General sales taxes

Effects of price manipulations on consumer behavior in sheltered workshop token economy.

PubMed

Schroeder, S R; Barrera, F J

1976-09-01

The consumer behavior of institutionalized retarded clients in a sheltered workshop token economy were evaluated by changing prices in the workshop store. In the first experiment we found that clients displayed elasticity of demand in that raising the prices of frequently purchased goods reduced the frequency and amount spent on more expendable items. Results from the second experiment showed that this change in spending pattern was not due to the relative modal unit price of item classes. The regulation of demand for consumer goods is a potentially useful way to maintain economic balance and effectiveness of a token economy.

JPRS Report China

DTIC Science & Technology

1988-07-06

particular, we cannot arbitrarily raise prices and thus increase the burden on consumers . Rather, we must rely on enterprises them- selves to tap...state, there is the possibility that due to the price differences in the means of produc- tion consumed by enterprises producing the same kind of... rationalize the prices of major commodities and production materials; improve all kinds of support measures; link prices on the domestic market with those on

The Economics of Pricing and Customer Decision-Making. Research Notes.

ERIC Educational Resources Information Center

Jordan, Debra J.

1996-01-01

Reviews two research articles. Gratton and Taylor, using economic analysis and market research, found that consumers of leisure experiences complained about price increases, but continued consuming. They recommend discounts for those in need and price increases focusing on service quality. Greenleaf and Lehmann identified 11 reasons why people…

CPI detailed report : data for December 1998

DOT National Transportation Integrated Search

1998-12-01

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in December, before seasonal adjustment. The December 1998 CPI-U level of 163.9 (1982-84=100) was 1.6 percent higher than the index in December 1997. The Consumer Price Ind...

CPI detailed report : data for February 1999

DOT National Transportation Integrated Search

1999-02-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in February, before seasonal adjustment, to a level of 164.5 (1982-84=100). For the 12-month period ended in February, the CPI-U increased 1.6 percent. The Consumer Price ...

CPI detailed report : data for February 1998

DOT National Transportation Integrated Search

1998-02-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in February, before seasonal adjustment, to a level of 161.9 (1982-84=100). For the 12-month period ended in February, the CPI-U increased 1.4 percent. The Consumer Price ...

CPI detailed report : data for February 2002

DOT National Transportation Integrated Search

2002-05-01

The Consumer Price Index for All urban Consumers (CPI-U) increased 0.4 percent in February, before seasonal adjustment, to a level of 177.8 (1982-84=100). For the 12-month period ended in February, the CPI-U increased 1.1 percent. The Consumer Price ...

CPI detailed report : data for February 2001

DOT National Transportation Integrated Search

2001-02-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in February, before seasonal adjustment, to a level of 175.8 (1982-84=100). For the 12-month period ended in February, the CPI-U increased 3.5 percent. The Consumer Price ...

CPI detailed report : data for November 2001

DOT National Transportation Integrated Search

2001-01-01

The Consumer Price Index for All urban Consumers (CPI-U) increased 0.2 percent in November, before seasonal adjustment, to a level of 177.4 (1982-84=100). For the 12-month period ended in November, the CPI-U increased 1.9 percent. The Consumer Price ...

[Policies encouraging price competition in the generic drug market: Lessons from the European experience].

PubMed

Puig-Junoy, Jaume

2010-01-01

To describe alternative policies aimed at encouraging price competition in generic drug markets in countries with strict price regulation, and to present some case studies drawn from the European experience. Systematic literature review of articles and technical reports published after 1999. The shortcomings in consumer price competition observed in some European generic markets, including Spain, may be reduced through three types of public reimbursement or financing reforms: policies aimed at improving the design of current maximum reimbursement level policies; policies aimed at monitoring competitive prices in order to reimburse real acquisition cost to pharmacies; and, more radical and market-oriented policies such as competitive tendering of public drug purchases. The experience of recent reforms adopted in Germany, Belgium, Holland, Norway, and Sweden offers a useful guide for highly price-regulated European countries, such as Spain, currently characterized by limited consumer price competition and the high discounts offered to pharmacy purchases. Direct price regulation and/or the generic reference pricing systems used to reduce generic drug prices in many European countries can be successfully reformed by adopting measures more closely aimed at encouraging consumer price competition in generic drug markets. Copyright 2009 SESPAS. Published by Elsevier Espana. All rights reserved.

The behavioral economics of consumer brand choice: patterns of reinforcement and utility maximization.

PubMed

Foxall, Gordon R; Oliveira-Castro, Jorge M; Schrezenmaier, Teresa C

2004-06-30

Purchasers of fast-moving consumer goods generally exhibit multi-brand choice, selecting apparently randomly among a small subset or "repertoire" of tried and trusted brands. Their behavior shows both matching and maximization, though it is not clear just what the majority of buyers are maximizing. Each brand attracts, however, a small percentage of consumers who are 100%-loyal to it during the period of observation. Some of these are exclusively buyers of premium-priced brands who are presumably maximizing informational reinforcement because their demand for the brand is relatively price-insensitive or inelastic. Others buy exclusively the cheapest brands available and can be assumed to maximize utilitarian reinforcement since their behavior is particularly price-sensitive or elastic. Between them are the majority of consumers whose multi-brand buying takes the form of selecting a mixture of economy -- and premium-priced brands. Based on the analysis of buying patterns of 80 consumers for 9 product categories, the paper examines the continuum of consumers so defined and seeks to relate their buying behavior to the question of how and what consumers maximize.

Value for money or making the healthy choice: the impact of proportional pricing on consumers' portion size choices.

PubMed

Vermeer, Willemijn M; Alting, Esther; Steenhuis, Ingrid H M; Seidell, Jacob C

2010-02-01

Large food portion sizes are determinants of a high caloric intake, especially if they have been made attractive through value size pricing (i.e. lower unit prices for large than for small portion sizes). The purpose of the two questionnaire studies that are reported in this article was to assess the impact of proportional pricing (i.e. removing beneficial prices for large sizes) on people's portion size choices of high caloric food and drink items. Both studies employed an experimental design with a proportional pricing condition and a value size pricing condition. Study 1 was conducted in a fast food restaurant (N = 150) and study 2 in a worksite cafeteria (N = 141). Three different food products (i.e. soft drink, chicken nuggets in study 1 and a hot meal in study 2) with corresponding prices were displayed on pictures in the questionnaire. Outcome measures were consumers' intended portion size choices. No main effects of pricing were found. However, confronted with proportional pricing a trend was found for overweight fast food restaurant visitors being more likely to choose small portion sizes of chicken nuggets (OR = 4.31, P = 0.07) and less likely to choose large soft drink sizes (OR = 0.07, P = 0.04). Among a general public, proportional pricing did not reduce consumers' size choices. However, pricing strategies can help overweight and obese consumers selecting appropriate portion sizes of soft drink and high caloric snacks. More research in realistic settings with actual behaviour as outcome measure is required.

CPI detailed report : data for August 1998

DOT National Transportation Integrated Search

1998-08-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in August, before seasonal adjustment, to a level of 163.4 (1982-84=100). For the 12-month period ended in August, the CPI-U increased 1.6 percent. The Consumer Price Inde...

CPI detailed report : data for March 2001

DOT National Transportation Integrated Search

2001-03-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in March, before seasonal adjustment, to a level of 176.2 (1982-84+100). For the 12-month period ended in March, the CPI-U increased 2.9 percent. The Consumer Price Index ...

CPI detailed report : data for March 1998

DOT National Transportation Integrated Search

1998-03-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in March before seasonal adjustment, to a level of 162.2 (1982-84=100). For the 12-month period ended in March, the CPI-U increased 1.4 percent. The Consumer Price Index f...

CPI detailed report : data for June 2001

DOT National Transportation Integrated Search

2001-09-01

The Consumer Price Index for All urban Consumers (CPI-U) increased 0.2 percent in June, before seasonal adjustment, to a level of 178.0 (1982-84=100). For the 12-month period ended in June, the CPI-U increased 3.2 percent. The Consumer Price Index fo...

CPI detailed report : data for October 1998

DOT National Transportation Integrated Search

1998-10-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in October, before seasonal adjustment, to a level of 164.0 (1982-84=100). For the 12-month period ended in October, the CPI-U increased 1.5 percent. The Consumer Price In...

CPI detailed report : data for April 2001

DOT National Transportation Integrated Search

2001-08-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in April, before seasonsal adjustment, to a level of 176.9 (1982-84=100). For the 12-month period ended in April, the CPI-U increased 3.3 percent. The Consumer Price Index...

CPI detailed report : data for May 2001

DOT National Transportation Integrated Search

2001-05-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percecnt in May, before seasonal adjustment, to a level of 177.7 (1982-84=100). For the 12-month period ended in May, the CPI-U increased 3.6 percent. The Consumer Price Index for...

CPI detailed report : data for April 2002

DOT National Transportation Integrated Search

2002-06-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in April, before seasonal adjustment, to a level of 179.8 (1982-84=100). For the 12-month period ended in April, the CPI-U increased 1.6 percent. The Consumer Price Index ...

CPI detailed report : data for August 1997

DOT National Transportation Integrated Search

1997-08-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in August, before seasonal adjustment, to a level of 160.8 (1982-84=100). For the 12-month period ended in August, the CPI-U increased 2.2 percent. The Consumer Price Inde...

CPI detailed report : data for May 1998

DOT National Transportation Integrated Search

1998-05-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in May, before seasonal adjustment, to a level of 162.8 (1982-84=100). For the 12-month period ended in May, the CPI-U increased 1.7 percent. The Consumer Price Index for ...

Pricing Strategy in Online Retailing Marketplaces of Homogeneous Goods: Should High Reputation Seller Charge More?

NASA Astrophysics Data System (ADS)

Liu, Yuewen; Wei, Kwok Kee; Chen, Huaping

There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers.

JUDGING QUALITY BY PRICE, SNOB APPEAL, AND THE NEW CONSUMER THEORY.

DTIC Science & Technology

The paper provides an analytical treatment of judgment of quality by price and snob appeal . It summarizes the relevant aspects of Lancaster’s...approach and shows how snob appeal and judgment of quality by price can be incorporated into the ’new consumer theory’. Making use of this integration, the

A Bayesian Multi-Level Factor Analytic Model of Consumer Price Sensitivities across Categories

ERIC Educational Resources Information Center

Duvvuri, Sri Devi; Gruca, Thomas S.

2010-01-01

Identifying price sensitive consumers is an important problem in marketing. We develop a Bayesian multi-level factor analytic model of the covariation among household-level price sensitivities across product categories that are substitutes. Based on a multivariate probit model of category incidence, this framework also allows the researcher to…

Achieving Consumer Purchase Payoffs: A Used Car Purchase.

ERIC Educational Resources Information Center

Maynes, E. Scott; Maynes, Blanche R.

1997-01-01

This case study of a used car purchase illuminates the concepts and principles that should guide purchase decisions. It suggests that consumers should be aware there is little correlation between price and quality; competent shopping yields better quality; and consumers must decide their preferred trade-off between price and quality. (SK)

Determining consumer purchase intentions: the importance of dry matter, size, and price of kiwifruit.

PubMed

Jaeger, Sara R; Harker, Roger; Triggs, Chris M; Gunson, Anne; Campbell, Rachel L; Jackman, Richard; Requejo-Jackman, Cecilia

2011-04-01

Knowledge of the relative importance of food quality attributes in determining consumer purchase intention is critical for robust assessment of economic opportunities for industry growth. The aim of this study is to demonstrate how conjoint analysis methodology that incorporates tasting of fruit can be used to collect such information. Three hundred Japanese consumers took part in research designed to measure the importance of dry matter (DM), size, and price of kiwifruit (Actinidia deliciosa "Hayward" and Actinidia chinensis "Hort16A") for purchase intention. Measurement of consumer liking for kiwifruit of different DM content was a key first step. Liking increased as DM increased and was accompanied by increased purchase likelihood/choice probability for kiwifruit. The size of kiwifruit presented to consumers varied from "small" to "extra large." Consumers liked "mid-sized" kiwifruit over "small" or "extra-large" kiwifruit. Despite these differences in liking, size was of little importance in determining purchase likelihood/choice probability for kiwifruit. Price was a very important factor in determining purchase likelihood/choice probability but was less important than DM content. As price increased, purchase likelihood/choice probability decreased. Beneath these general findings, heterogeneity existed. Some consumers placed more/less importance on the focal purchase drivers than suggested by the aggregate model. Overall, the results suggest that incentive schemes already implemented by industry should consider rewarding high-DM fruit more than fruit size.   This research has contributed to the New Zealand kiwifruit industry gaining a better understanding of the relative importance consumers place on DM, size, and price of kiwifruit and has resulted in changes to grower incentive schemes. The research approach presented forces consumer to tradeoff attributes of kiwifruit against each other and decide on how important two key quality attributes-DM and size-are relative to each other and relative to price. The application of conjoint analysis in this article can be transferred to other fruits, food, and beverages and help guide consumer-led innovation.

Can neural activation in dorsolateral prefrontal cortex predict responsiveness to information? An application to egg production systems and campaign advertising.

PubMed

McFadden, Brandon R; Lusk, Jayson L; Crespi, John M; Cherry, J Bradley C; Martin, Laura E; Aupperle, Robin L; Bruce, Amanda S

2015-01-01

Consumers prefer to pay low prices and increase animal welfare; however consumers are typically forced to make tradeoffs between price and animal welfare. Campaign advertising (i.e., advertising used during the 2008 vote on Proposition 2 in California) may affect how consumers make tradeoffs between price and animal welfare. Neuroimaging data was used to determine the effects of brain activation in dorsolateral prefrontal cortex (dlPFC) on choices making a tradeoff between price and animal welfare and responsiveness to campaign advertising. Results indicated that activation in the dlPFC was greater when making choices that forced a tradeoff between price and animal welfare, compared to choices that varied only by price or animal welfare. Furthermore, greater activation differences in right dlPFC between choices that forced a tradeoff and choices that did not, indicated greater responsiveness to campaign advertising.

Can Neural Activation in Dorsolateral Prefrontal Cortex Predict Responsiveness to Information? An Application to Egg Production Systems and Campaign Advertising

PubMed Central

McFadden, Brandon R.; Lusk, Jayson L.; Crespi, John M.; Cherry, J. Bradley C.; Martin, Laura E.; Aupperle, Robin L.; Bruce, Amanda S.

2015-01-01

Consumers prefer to pay low prices and increase animal welfare; however consumers are typically forced to make tradeoffs between price and animal welfare. Campaign advertising (i.e., advertising used during the 2008 vote on Proposition 2 in California) may affect how consumers make tradeoffs between price and animal welfare. Neuroimaging data was used to determine the effects of brain activation in dorsolateral prefrontal cortex (dlPFC) on choices making a tradeoff between price and animal welfare and responsiveness to campaign advertising. Results indicated that activation in the dlPFC was greater when making choices that forced a tradeoff between price and animal welfare, compared to choices that varied only by price or animal welfare. Furthermore, greater activation differences in right dlPFC between choices that forced a tradeoff and choices that did not, indicated greater responsiveness to campaign advertising. PMID:26018592

Are Alcohol Taxation and Pricing Policies Regressive? Product-Level Effects of a Specific Tax and a Minimum Unit Price for Alcohol.

PubMed

Vandenberg, Brian; Sharma, Anurag

2016-07-01

To compare estimated effects of two policy alternatives, (i) a minimum unit price (MUP) for alcohol and (ii) specific (per-unit) taxation, upon current product prices, per capita spending (A$), and per capita consumption by income quintile, consumption quintile and product type. Estimation of baseline spending and consumption, and modelling policy-to-price and price-to-consumption effects of policy changes using scanner data from a panel of demographically representative Australian households that includes product-level details of their off-trade alcohol spending (n = 885; total observations = 12,505). Robustness checks include alternative price elasticities, tax rates, minimum price thresholds and tax pass-through rates. Current alcohol taxes and alternative taxation and pricing policies are not highly regressive. Any regressive effects are small and concentrated among heavy consumers. The lowest-income consumers currently spend a larger proportion of income (2.3%) on alcohol taxes than the highest-income consumers (0.3%), but the mean amount is small in magnitude [A$5.50 per week (95%CI: 5.18-5.88)]. Both a MUP and specific taxation will have some regressive effects, but the effects are limited, as they are greatest for the heaviest consumers, irrespective of income. Among the policy alternatives, a MUP is more effective in reducing consumption than specific taxation, especially for consumers in the lowest-income quintile: an estimated mean per capita reduction of 11.9 standard drinks per week (95%CI: 11.3-12.6). Policies that increase the cost of the cheapest alcohol can be effective in reducing alcohol consumption, without having highly regressive effects. © The Author 2015. Medical Council on Alcohol and Oxford University Press. All rights reserved.

Assessment of Gasoline Prices and its Predictive Power on U.S. Consumers' Retail Spending and Savings

NASA Astrophysics Data System (ADS)

Alvarado-Bonilla, Joel

The rising costs of fuels and specifically gasoline pose an economic challenge to U.S. consumers. Thus, the specific problem considered in this study was a rise in gasoline prices can reduce consumer spending, disposable income, food service traffic, and spending on healthy food, medicines, or visits to the doctor. Aligned with the problem, the purpose of this quantitative multiple correlation study was to examine the economic aspects for a rise in gasoline prices to reduce the six elements in the problem. This study consisted of a correlational design based on a retrospective longitudinal analysis (RLA) to examine gasoline prices versus the economic indexes of: (a) Retail Spending and (b) personal savings (PS). The RLA consisted on historic archival public data from 1978 to 2015. This RLA involved two separate linear multiple regression analyses to measure gasoline price's predictive power (PP) on two indexes while controlling for Unemployment Rate (UR). In summary, regression Formula 1 revealed Gasoline Price had a significant 61.1% PP on Retail Spending. In contrast, Formula 2 had Gasoline Price not having a significant PP on PS. Formula 2 yielded UR with 38.8% PP on PS. Results were significant at p<.01. Gasoline Price's PP on Retail Spending means a spending link to retail items such as: food service traffic, healthy food, medicines, and consumer spending. The UR predictive power on PS was unexpected, but logical from an economic view. Also unexpected was Gasoline Price's non-predictive power on PS, which suggests Americans may not save money when gasoline prices drop. These results shed light on the link of gasoline and UR on U.S. consumer's economy through savings and spending, which can be useful for policy design on gasoline and fuels taxing and pricing. The results serve as a basis for future study on gasoline and economics.

GASP- General Aviation Synthesis Program. Volume 7: Economics

NASA Technical Reports Server (NTRS)

1978-01-01

The economic analysis includes: manufacturing costs; labor costs; parts costs; operating costs; markups and consumer price. A user's manual for a computer program to calculate the final consumer price is included.

Comparison of physicochemical characteristics and consumer perception of rice samples with different countries of origin and prices.

PubMed

Jang, Eun-Hee; Lim, Seung-Taik; Kim, Sang Sook

2012-06-01

Rice is the only food item which is not liberalized in Korea. To prepare for future liberalization of the rice market in Korea, the physicochemical characteristics and consumer perception of four domestic rice samples were compared with those of 11 foreign rice samples. Additionally, the influences of country of origin (CO) and price on purchase intent (PI) and willingness to pay (WTP) were investigated. Consumer acceptance of rice samples from Japan was generally higher than that of rice samples from other countries. In an informed test, PI was affected by price and CO, while WTP was affected mostly by price. The PI decreased with the price provided while the WTP increased. In a blind test, consumers evaluated PI and WTP according to sensory liking. The PI was higher in the informed test than in the blind test in all domestic samples. Generally, consumer acceptance was highly correlated with fat acidity (r = - 0.76), protein content (r = - 0.72), and b value (r = - 0.64) of the rice samples. Further efforts to increase the quality of rice are recommended for survival in the global market after liberalization of rice, even though consumers showed loyalty for PI of domestic samples. Copyright © 2011 Society of Chemical Industry.

Pricing behaviour of pharmacies after market deregulation for OTC drugs: the case of Germany.

PubMed

Stargardt, Tom; Schreyögg, Jonas; Busse, Reinhard

2007-11-01

To examine the price reactions of German pharmacies to changes made to OTC drug regulations in 2004. Prior to these changes, regulations guaranteed identical prices in all German pharmacies. Two years after market deregulation, 256 pharmacies were surveyed to determine the retail prices of five selected OTC drugs. A probit regression model was used to identify factors that increased the likelihood of price changes. In addition, 409 pharmacy consumers were interviewed to gather information on their knowledge of the regulatory changes and to better explain consumer behaviour. Data was collected on a total of 1215 prices. Two years after deregulation, 23.1% of the participating pharmacies had modified the price of at least one of the five OTCs included in our study. However, in total, only 7.5% of the prices differed from their pre-deregulation level. The probit model showed that population density and the geographic concentration of pharmacies were significantly associated with price changes. Interestingly, the association with the geographic concentration of pharmacies was negative. The consumer survey revealed that 47.1% of those interviewed were aware of the deregulation. Our findings indicate that, two years after deregulation, very few pharmacies had made use of individual pricing strategies; price competition between pharmacies in Germany is thus taking place only a very small scale.

The influence of an online auction's product price and e-retailer reputation on consumers' perception, attitude, and behavioral intention.

PubMed

Wu, Wann-Yih; Huang, Po-Ching; Fu, Chen-Su

2011-06-01

Online auctions combine the conventional auction model with information technology. However, information asymmetry within such auctions causes risks and uncertainties that influence consumer purchase intentions. In this study, a 2 (product price: high vs. low) × 2 (e-retailer reputation: high vs. low) experimental design was used to understand whether the product price and e-retailer reputation will influence consumers' perceived risk, attitude toward the website and purchase intention. The results of this study indicate that perceived risk negatively influences consumer attitude toward the website and online purchase intention, while consumer attitude toward the website positively influences purchase intention. Moreover, involvement moderates the influence of product price and e-retailer reputation only on social risk but does not have a significant effect on consumer attitude toward the website. This study contributes to a more comprehensive understanding of online auction users' behavior. Finally, the managerial implications, limitations and future research directions are also provided. © 2011 The Authors. Scandinavian Journal of Psychology © 2011 The Scandinavian Psychological Associations.

Optimizing Industrial Consumer Demand Response Through Disaggregation, Hour-Ahead Pricing, and Momentary Autonomous Control

NASA Astrophysics Data System (ADS)

Abdulaal, Ahmed

The work in this study addresses the current limitations of the price-driven demand response (DR) approach. Mainly, the dependability on consumers to respond in an energy aware conduct, the response timeliness, the difficulty of applying DR in a busy industrial environment, and the problem of load synchronization are of utmost concern. In order to conduct a simulation study, realistic price simulation model and consumers' building load models are created using real data. DR action is optimized using an autonomous control method, which eliminates the dependency on frequent consumer engagement. Since load scheduling and long-term planning approaches are infeasible in the industrial environment, the proposed method utilizes instantaneous DR in response to hour-ahead price signals (RTP-HA). Preliminary simulation results concluded savings at the consumer-side at the cost of increased supplier-side burden due to the aggregate effect of the universal DR policies. Therefore, a consumer disaggregation strategy is briefly discussed. Finally, a refined discrete-continuous control system is presented, which utilizes multi-objective Pareto optimization, evolutionary programming, utility functions, and bidirectional loads. Demonstrated through a virtual testbed fit with real data, the new system achieves momentary optimized DR in real-time while maximizing the consumer's wellbeing.

JPRS Report China

DTIC Science & Technology

1988-07-22

or no pressure to reduce prices to sell their products, and monopolistic prices are hard to avoid in the absence of true capital markets. (4) The...2.3 percent rises in her consumer price index and economic growth rates of 11.3 and 5.9 percent during the 1950s and 1960s, respectively. And...between 1953 and 1972, Japan’s gross national product climbed at an average annual rate of 9.46 percent, while her consumer price index rose by only

Toward crustacean without chemicals: a descriptive analysis of consumer response using price comparisons

PubMed Central

Okpala, Charles Odilichukwu R.; Bono, Gioacchino; Pipitone, Vito; Vitale, Sergio; Cannizzaro, Leonardo

2016-01-01

Background To date, there seems to be limited-to-zero emphasis about how consumers perceive crustacean products subject to either chemical and or non-chemical preservative treatments. In addition, studies that investigated price comparisons of crustacean products subject to either chemical or chemical-free preservative methods seem unreported. Objective This study focused on providing some foundational knowledge about how consumers perceive traditionally harvested crustaceans that are either chemical-treated and or free of chemicals, incorporating price comparisons using a descriptive approach. Design The study design employed a questionnaire approach via interview using a computer-assisted telephone system and sampled 1,540 participants across five key locations in Italy. To actualize consumer sensitivity, ‘price’ was the focus given its crucial role as a consumption barrier. Prior to this, variables such as demographic characteristics of participants, frequency of purchasing, quality attributes/factors that limit the consumption of crustaceans were equally considered. Results By price comparisons, consumers are likely to favor chemical-free (modified atmosphere packaging) crustacean products amid a price increase of up to 15%. But, a further price increase such as by 25% could markedly damage consumers’ feelings, which might lead to a considerable number opting out in favor of either chemical-treated or other seafood products. Comparing locations, the studied variables showed no statistical differences (p>0.05). On the contrary, the response weightings fluctuated across the studied categories. Both response weightings and coefficient of variation helped reveal more about how responses deviated per variable categories. Conclusions This study has revealed some foundational knowledge about how consumers perceive traditionally harvested crustaceans that were either chemical-treated or subject to chemical-free preservative up to price sensitivity using Italy as a reference case, which is applicable to other parts of the globe. PMID:27799084

Alcohol prices, beverage quality, and the demand for alcohol: quality substitutions and price elasticities.

PubMed

Gruenewald, Paul J; Ponicki, William R; Holder, Harold D; Romelsjö, Anders

2006-01-01

Although the published literature on alcohol beverage taxes, prices, sales, and related problems treats alcoholic beverages as a simple good, alcohol is a complex good composed of different beverage types (i.e., beer, wine, and spirits) and quality brands (e.g., high-, medium-, and low-quality beers). As a complex good, consumers may make substitutions between purchases of different beverage types and brands in response to price increases. For this reason, the availability of a broad range of beverage prices provides opportunities for consumers to mitigate the effects of average price increases through quality substitutions; a change in beverage choice in response to price increases to maintain consumption. Using Swedish price and sales data provided by Systembolaget for the years 1984 through 1994, this study assessed the relationships between alcohol beverage prices, beverage quality, and alcohol sales. The study examined price effects on alcohol consumption using seemingly unrelated regression equations to model the impacts of price increases within 9 empirically defined quality classes across beverage types. The models enabled statistical assessments of both own-price and cross-price effects between types and classes. The results of these analyses showed that consumers respond to price increases by altering their total consumption and by varying their brand choices. Significant reductions in sales were observed in response to price increases, but these effects were mitigated by significant substitutions between quality classes. The findings suggest that the net impacts of purposeful price policy to reduce consumption will depend on how such policies affect the range of prices across beverage brands.

Pricing schemes for new drugs: a welfare analysis.

PubMed

Levaggi, Rosella

2014-02-01

Drug price regulation is acquiring increasing significance in the investment choices of the pharmaceutical sector. The overall objective is to determine an optimal trade-off between the incentives for innovation, consumer protection, and value for money. However, price regulation is itself a source of distortion. In this study, we examine the welfare properties of listing through a bargaining process and value-based pricing schemes. The latter are superior instruments to uncertain listing processes for maximising total welfare, but the distribution of the benefits between consumers and the industry depends on rate of rebate chosen by the regulator. However, through an appropriate choice, it is always possible to define a value-based pricing scheme with risk sharing, which both consumers and the industry prefer to an uncertain bargaining process. Copyright © 2013 Elsevier Ltd. All rights reserved.

21 CFR 200.200 - Prescription drugs; reminder advertisements and reminder labeling to provide price information to...

Code of Federal Regulations, 2010 CFR

2010-04-01

... 21 Food and Drugs 4 2010-04-01 2010-04-01 false Prescription drugs; reminder advertisements and reminder labeling to provide price information to consumers. 200.200 Section 200.200 Food and Drugs FOOD AND DRUG ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) DRUGS: GENERAL GENERAL Prescription Drug Consumer Price Listing §...

Generic script share and the price of brand-name drugs: the role of consumer choice.

PubMed

Rizzo, John A; Zeckhauser, Richard

2009-09-01

Pharmaceutical expenditures have grown rapidly in recent decades, and now total nearly 10% of health care costs. Generic drug utilization has risen substantially alongside, from 19% of scripts in 1984 to 47% in 2001, thus tempering expenditure growth through significant direct dollar savings. However, generic drugs may lead to indirect savings as well if their use reduces the average price of those brand-name drugs that are still purchased. Prior work indicates that brand-name producers do not lower their prices in the face of generic competition, and our study confirms that finding. However, prior work is silent on how the mix of consumer choices between generic and brand-name drugs might affect the average price of those brand-name drugs that are purchased. We use a nationally representative panel of data on drug utilization and costs for the years 1996-2001 to examine how the share of an individual's prescriptions filled by generics (generic script share) affects his average out-of-pocket cost for brand-name drugs, and the net cost paid by the insurer. Our principal finding is that a higher generic script share lowers average brand-name prices to consumers, presumably because consumers are more likely to substitute generics when brand-name drugs would cost them more. This effect is substantial: a 10% increase in the consumer's generic script share is associated with a 15.6% decline in the average price paid for brand-name drugs by consumers. This implies that the potential cost savings to consumers from generic substitution are far greater than prior work suggests. In contrast, the percentage reduction in average brand costs to health plans is far smaller, and statistically insignificant.

Impact of European pharmaceutical price regulation on generic price competition: a review.

PubMed

Puig-Junoy, Jaume

2010-01-01

Although economic theory indicates that it should not be necessary to intervene in the generic drug market through price regulation, most EU countries intervene in this market, both by regulating the maximum sale price of generics (price cap) and by setting the maximum reimbursement rate, especially by means of reference pricing systems. We analyse current knowledge of the impact of direct price-cap regulation of generic drugs and the implementation of systems regulating the reimbursement rate, particularly through reference pricing and similar tools, on dynamic price competition between generic competitors in Europe. A literature search was carried out in the EconLit and PubMed databases, and on Google Scholar. The search included papers published in English or Spanish between January 2000 and July 2009. Inclusion criteria included that studies had to present empirical results of a quantitative nature for EU countries of the impact of price capping and/or regulation of the reimbursement rate (reference pricing or similar systems) on price dynamics, corresponding to pharmacy sales, in the generic drug market. The available evidence indicates that price-cap regulation leads to a levelling off of generic prices at a higher level than would occur in the absence of this regulation. Reference pricing systems cause an obvious and almost compulsory reduction in the consumer price of all pharmaceuticals subject to this system, to a varying degree in different countries and periods, the reduction being greater for originator-branded drugs than for generics. In several countries with a reference pricing system, it was observed that generics with a consumer price lower than the reference price do not undergo price reductions until the reference price is reduced, even when there are other lower-priced generics on the market (absence of price competition below the reference price). Beyond the price reduction forced by the price-cap and/or reference pricing regulation itself, the entry of new generic competitors is useful for lowering the real transaction price of purchases made by pharmacies (dynamic price competition at ex-factory level), although this effect is weaker or non-significant for official ex-factory prices and consumer prices in some countries. When maximum reimbursement systems such as reference pricing or similar types are applied, pharmacies are seen to receive large discounts on the price they pay for the pharmaceuticals, although these discounts are not transferred to the consumer price. The percentage discount offered to pharmacies in a country that uses a price-cap system combined with reference pricing is positively and significantly related to the number of generic competitors in the market for the pharmaceutical (dynamic price competition at ex-factory level).

Analysis of Consumers' Preferences and Price Sensitivity to Native Chickens.

PubMed

Lee, Min-A; Jung, Yoojin; Jo, Cheorun; Park, Ji-Young; Nam, Ki-Chang

2017-01-01

This study analyzed consumers' preferences and price sensitivity to native chickens. A survey was conducted from Jan 6 to 17, 2014, and data were collected from consumers (n=500) living in Korea. Statistical analyses evaluated the consumption patterns of native chickens, preference marketing for native chicken breeds which will be newly developed, and price sensitivity measurement (PSM). Of the subjects who preferred broilers, 24.3% do not purchase native chickens because of the dryness and tough texture, while those who preferred native chickens liked their chewy texture (38.2%). Of the total subjects, 38.2% preferred fried native chickens (38.2%) for processed food, 38.4% preferred direct sales for native chicken distribution, 51.0% preferred native chickens to be slaughtered in specialty stores, and 32.4% wanted easy access to native chickens. Additionally, the price stress range (PSR) was 50 won and the point of marginal cheapness (PMC) and point of marginal expensiveness (PME) were 6,980 won and 12,300 won, respectively. Evaluation of the segmentation market revealed that consumers who prefer broiler to native chicken breeds were more sensitive to the chicken price. To accelerate the consumption of newly developed native chicken meat, it is necessary to develop a texture that each consumer needs, to increase the accessibility of native chickens, and to have diverse menus and recipes as well as reasonable pricing for native chickens.

Nonlinear Road Pricing : [Summary

DOT National Transportation Integrated Search

2012-01-01

Nonlinear pricing is an unfamiliar term for a familiar idea. Linear pricing charges all consumers the same price for the same quantity of goods or services; in nonlinear schemes, the price varies, depending, for example, on quantity purchased or a co...

Four Essays on Applied Energy Economics and Policy

NASA Astrophysics Data System (ADS)

Buenestado, Raul Bajo

This thesis is divided in two parts. The first part (chapters 1 and 2) studies capacity payments in the electricity sector. The second part (chapter 3 and 4) is on gasoline retail markets. The first chapter explores welfare implications of capacity markets in the electricity sector. We propose a theoretical model with cost heterogeneous firms, for which price and quantity equilibria are obtained both with and without a capacity market. The consequences for consumers are assessed using three different measures: consumer surplus, probability of blackout and price volatility. We conclude that a capacity market is able to reduce extreme events. Under some circumstances, we show that a capacity market is also efficiency enhancing. In the second chapter, we use data from the Texas ERCOT to study the impact of capacity payments in a stylized wholesale electricity market. We find that the introduction of capacity payments has two countervailing effects. On the one hand, it increases consumers' bills. On the other hand, it reduces price volatility and blackout probability. We find that the net impact on consumer surplus is negative both in a perfectly competitive market and in the presence of market power. In the third chapter, we use monthly data from the Spanish gasoline retail market to explore asymmetries in consumers' responses to changes in gasoline prices and taxes. We investigate whether an increase in taxes has a more negative impact on the demand than an increase in the "pre-tax" price of gasoline. We estimate consumers' behavioral responses using a rich set of robust models. We find evidence of asymmetric responses for the demand of unleaded fuels and agricultural diesel fuel. In the final chapter we study a game of spatial competition in prices. We focus on the linear city duopoly model to see what we can learn about the distribution of consumers, which is approximated using variation in equilibrium prices and costs. We apply our methodology to a dataset on prices of a pair of gas stations in a straight highway. Using our approximation, we are able to calculate where should be located an entrant gas station to maximize welfare.

Residential water demand with endogenous pricing: The Canadian Case

NASA Astrophysics Data System (ADS)

Reynaud, Arnaud; Renzetti, Steven; Villeneuve, Michel

2005-11-01

In this paper, we show that the rate structure endogeneity may result in a misspecification of the residential water demand function. We propose to solve this endogeneity problem by estimating a probabilistic model describing how water rates are chosen by local communities. This model is estimated on a sample of Canadian local communities. We first show that the pricing structure choice reflects efficiency considerations, equity concerns, and, in some cases, a strategy of price discrimination across consumers by Canadian communities. Hence estimating the residential water demand without taking into account the pricing structures' endogeneity leads to a biased estimation of price and income elasticities. We also demonstrate that the pricing structure per se plays a significant role in influencing price responsiveness of Canadian residential consumers.

Special Interests and Transnational Relations in Agricultural Trade: Implications for United States-Mexico Relations,

DTIC Science & Technology

1980-01-01

their livelihood. U.S. consumers in- directly beccme members of this alliance because their interest in taste, nutrition and price leads them to...factor arises when U.S. consumer groups become involved in the issue. Three elements trigger consumer defense of Mexican tomato imports: price, nutrition ...addition, some consumers prefer Mexican tomatoes because they are vine-ripened, a process utilizing more labor but producing more nutritional and more

Evaluating availability and price of essential medicines in Boston area (Massachusetts, USA) using WHO/HAI methodology.

PubMed

Sharma, Abhishek; Rorden, Lindsey; Ewen, Margaret; Laing, Richard

2016-01-01

Many patients even those with health insurance pay out-of-pocket for medicines. We investigated the availability and prices of essential medicines in the Boston area. Using the WHO/HAI methodology, availability and undiscounted price data for both originator brand (OB) and lowest price generic (LPG) equivalent versions of 25 essential medicines (14 prescription; 11 over-the-counter (OTC)) were obtained from 17 private pharmacies. The inclusion and prices of 26 essential medicines in seven pharmacy discount programs were also studied. The medicine prices were compared with international reference prices (IRPs). In surveyed pharmacies, the OB medicines were less available as compared to the generics. The OB and LPG versions of OTC medicines were 21.33 and 11.53 times the IRP, respectively. The median prices of prescription medicines were higher, with OB and LPG versions at 158.14 and 38.03 times the IRP, respectively. In studied pharmacy discount programs, the price ratios of surveyed medicines varied from 4.4-13.9. While noting the WHO target that consumers should pay no more than four times the IRPs, medicine prices were considerably higher in the Boston area. The prices for medicines included in the pharmacy discount programs were closest to WHO's target. Consumers should shop around, as medicine inclusion and prices vary across discount programs. In order for consumers to identify meaningful potential savings through comparison shopping, price transparency is needed.

Dynamic pricing of network goods with boundedly rational consumers.

PubMed

Radner, Roy; Radunskaya, Ami; Sundararajan, Arun

2014-01-07

We present a model of dynamic monopoly pricing for a good that displays network effects. In contrast with the standard notion of a rational-expectations equilibrium, we model consumers as boundedly rational and unable either to pay immediate attention to each price change or to make accurate forecasts of the adoption of the network good. Our analysis shows that the seller's optimal price trajectory has the following structure: The price is low when the user base is below a target level, is high when the user base is above the target, and is set to keep the user base stationary once the target level has been attained. We show that this pricing policy is robust to a number of extensions, which include the product's user base evolving over time and consumers basing their choices on a mixture of a myopic and a "stubborn" expectation of adoption. Our results differ significantly from those that would be predicted by a model based on rational-expectations equilibrium and are more consistent with the pricing of network goods observed in practice.

Multifractality of sectoral price indices: Hurst signature analysis of Cantillon effects in disequilibrium factor markets

NASA Astrophysics Data System (ADS)

Mulligan, Robert F.

2014-06-01

This paper presents Hurst exponent signatures from time series of aggregate price indices for the US over the 1975-2011 time period. Though all highly aggregated, these indices include both broad measures of consumer and producer prices. The constellation of prices evolves as a complex system throughout processes of production and distribution, culminating in the final delivery of output to consumers. Massive feedback characterizes this system, where the demand for consumable output determines the demand for the inputs used to produce it, and supply scarcities for the necessary inputs in turn determine the supply of the final product. Prices in both factor and output markets are jointly determined by interdependent supply and demand conditions. Fractal examination of the interplay among market prices would be of interest regardless, but added interest arises from the consideration of how these markets respond to external shocks over the business cycle, particularly monetary expansion. Because the initial impact of monetary injection is localized in specific sectors, the way the impact on prices diffuses throughout the economy is of special interest.

Rice Grain Quality and Consumer Preferences: A Case Study of Two Rural Towns in the Philippines

PubMed Central

Velarde, Orlee; Demont, Matty

2016-01-01

Hedonic pricing analysis is conducted to determine the implicit values of various attributes in the market value of a good. In this study, hedonic pricing analysis was applied to measure the contribution of grain quality search and experience attributes to the price of rice in two rural towns in the Philippines. Rice samples from respondents underwent quantitative routine assessments of grain quality. In particular, gelatinization temperature and chalkiness, two parameters that are normally assessed through visual scores, were evaluated by purely quantitative means (differential scanning calorimetry and by digital image analysis). Results indicate that rice consumed by respondents had mainly similar physical and chemical grain quality attributes. The respondents’ revealed preferences were typical of what has been previously reported for Filipino rice consumers. Hedonic regression analyses showed that grain quality characteristics that affected price varied by income class. Some of the traits or socioeconomic factors that affected price were percent broken grains, gel consistency, and household per capita rice consumption. There is an income effect on rice price and the characteristics that affect price vary between income classes. PMID:26982587

Rice Grain Quality and Consumer Preferences: A Case Study of Two Rural Towns in the Philippines.

PubMed

Cuevas, Rosa Paula; Pede, Valerien O; McKinley, Justin; Velarde, Orlee; Demont, Matty

2016-01-01

Hedonic pricing analysis is conducted to determine the implicit values of various attributes in the market value of a good. In this study, hedonic pricing analysis was applied to measure the contribution of grain quality search and experience attributes to the price of rice in two rural towns in the Philippines. Rice samples from respondents underwent quantitative routine assessments of grain quality. In particular, gelatinization temperature and chalkiness, two parameters that are normally assessed through visual scores, were evaluated by purely quantitative means (differential scanning calorimetry and by digital image analysis). Results indicate that rice consumed by respondents had mainly similar physical and chemical grain quality attributes. The respondents' revealed preferences were typical of what has been previously reported for Filipino rice consumers. Hedonic regression analyses showed that grain quality characteristics that affected price varied by income class. Some of the traits or socioeconomic factors that affected price were percent broken grains, gel consistency, and household per capita rice consumption. There is an income effect on rice price and the characteristics that affect price vary between income classes.

Dynamic pricing of network goods with boundedly rational consumers

PubMed Central

Radner, Roy; Radunskaya, Ami; Sundararajan, Arun

2014-01-01

We present a model of dynamic monopoly pricing for a good that displays network effects. In contrast with the standard notion of a rational-expectations equilibrium, we model consumers as boundedly rational and unable either to pay immediate attention to each price change or to make accurate forecasts of the adoption of the network good. Our analysis shows that the seller’s optimal price trajectory has the following structure: The price is low when the user base is below a target level, is high when the user base is above the target, and is set to keep the user base stationary once the target level has been attained. We show that this pricing policy is robust to a number of extensions, which include the product’s user base evolving over time and consumers basing their choices on a mixture of a myopic and a “stubborn” expectation of adoption. Our results differ significantly from those that would be predicted by a model based on rational-expectations equilibrium and are more consistent with the pricing of network goods observed in practice. PMID:24367101

Influence of Price and Labeling on Energy Drink Purchasing in an Experimental Convenience Store.

PubMed

Temple, Jennifer L; Ziegler, Amanda M; Epstein, Leonard H

2016-01-01

To examine the impact of energy drink (ED) pricing and labeling on the purchase of EDs. Participants visited a laboratory-based convenience store 3 times and purchased a beverage under different ED labeling (none, caffeine content, and warning labels) and pricing conditions. The 36 participants (aged 15-30 years) were classified as energy drink consumers (≥ 2 energy drinks/wk) and nonconsumers (< 1 energy drink/mo). Data were log transformed to generate elasticity coefficients. The authors analyzed changes in elasticity as a function of price and labeling using mixed-effects regression models. Increasing the price of EDs reduced ED purchases and increased purchasing of other caffeinated beverages among ED consumers. Energy drink labels affected ED sales in adolescents. These data suggest that ED pricing and labeling may influence the purchasing of ED, especially in adolescent consumers. Copyright © 2016 Society for Nutrition Education and Behavior. Published by Elsevier Inc. All rights reserved.

Problems in the regulatory policy of the drug market

PubMed Central

Miziara, Nathália Molleis; Coutinho, Diogo Rosenthal

2015-01-01

OBJECTIVE Analyze the implementation of drug price regulation policy by the Drug Market Regulation Chamber. METHODS This is an interview-based study, which was undertaken in 2012, using semi-structured questionnaires with social actors from the pharmaceutical market, the pharmaceuticals industry, consumers and the regulatory agency. In addition, drug prices were compiled based on surveys conducted in the state of Sao Paulo, at the point of sale, between February 2009 and May 2012. RESULTS The mean drug prices charged at the point of sale (pharmacies) were well below the maximum price to the consumer, compared with many drugs sold in Brazil. Between 2009 and 2012, 44 of the 129 prices, corresponding to 99 drugs listed in the database of compiled prices, showed a variation of more than 20.0% in the mean prices at the point of sale and the maximum price to the consumer. In addition, many laboratories have refused to apply the price adequacy coefficient in their sales to government agencies. CONCLUSIONS The regulation implemented by the pharmaceutical market regulator was unable to significantly control prices of marketed drugs, without succeeding to push them to levels lower than those determined by the pharmaceutical industry and failing, therefore, in its objective to promote pharmaceutical support for the public. It is necessary reconstruct the regulatory law to allow market prices to be reduced by the regulator as well as institutional strengthen this government body. PMID:26083945

Perceptions on the use of pricing strategies to stimulate healthy eating among residents of deprived neighbourhoods: a focus group study

PubMed Central

2010-01-01

Background Pricing strategies are mentioned frequently as a potentially effective tool to stimulate healthy eating, mainly for consumers with a low socio-economic status. Still, it is not known how these consumers perceive pricing strategies, which pricing strategies are favoured and what contextual factors are important in achieving the anticipated effects. Methods We conducted seven focus groups among 59 residents of deprived neighbourhoods in two large Dutch cities. The focus group topics were based on insights from Rogers' Diffusion of Innovations Theory and consisted of four parts: 1) discussion on factors in food selection; 2) attitudes and perceptions towards food prices; 3) thinking up pricing strategies; 4) attitudes and perceptions regarding nine pricing strategies that were nominated by experts in a former Delphi Study. Analyses were conducted with Atlas.ti 5.2 computer software, using the framework approach. Results Qualitative analyses revealed that this group of consumers consider price to be a core factor in food choice and that they experience financial barriers against buying certain foods. Price was also experienced as a proficient tool to stimulate healthier food choices. Yet, consumers indicated that significant effects could only be achieved by combining price with information and promotion techniques. In general, pricing strategies focusing on encouraging healthy eating were valued to be more helpful than pricing strategies which focused on discouraging unhealthy eating. Suggested high reward strategies were: reducing the price of healthier options of comparable products (e.g., whole meal bread) compared to unhealthier options (e.g., white bread); providing a healthy food discount card for low-income groups; and combining price discounts on healthier foods with other marketing techniques such as displaying cheap and healthy foods at the cash desk. Conclusion This focus group study provides important new insights regarding the use of pricing strategies to stimulate healthy eating. The observed perceptions and attitudes of residents of deprived neighbourhoods can be integrated into future experimental studies and be used to reveal if and how pricing strategies are effective in stimulating healthy eating. PMID:20482857

Perceptions on the use of pricing strategies to stimulate healthy eating among residents of deprived neighbourhoods: a focus group study.

PubMed

Waterlander, Wilma E; de Mul, Anika; Schuit, Albertine J; Seidell, Jacob C; Steenhuis, Ingrid Hm

2010-05-19

Pricing strategies are mentioned frequently as a potentially effective tool to stimulate healthy eating, mainly for consumers with a low socio-economic status. Still, it is not known how these consumers perceive pricing strategies, which pricing strategies are favoured and what contextual factors are important in achieving the anticipated effects. We conducted seven focus groups among 59 residents of deprived neighbourhoods in two large Dutch cities. The focus group topics were based on insights from Rogers' Diffusion of Innovations Theory and consisted of four parts: 1) discussion on factors in food selection; 2) attitudes and perceptions towards food prices; 3) thinking up pricing strategies; 4) attitudes and perceptions regarding nine pricing strategies that were nominated by experts in a former Delphi Study. Analyses were conducted with Atlas.ti 5.2 computer software, using the framework approach. Qualitative analyses revealed that this group of consumers consider price to be a core factor in food choice and that they experience financial barriers against buying certain foods. Price was also experienced as a proficient tool to stimulate healthier food choices. Yet, consumers indicated that significant effects could only be achieved by combining price with information and promotion techniques. In general, pricing strategies focusing on encouraging healthy eating were valued to be more helpful than pricing strategies which focused on discouraging unhealthy eating. Suggested high reward strategies were: reducing the price of healthier options of comparable products (e.g., whole meal bread) compared to unhealthier options (e.g., white bread); providing a healthy food discount card for low-income groups; and combining price discounts on healthier foods with other marketing techniques such as displaying cheap and healthy foods at the cash desk. This focus group study provides important new insights regarding the use of pricing strategies to stimulate healthy eating. The observed perceptions and attitudes of residents of deprived neighbourhoods can be integrated into future experimental studies and be used to reveal if and how pricing strategies are effective in stimulating healthy eating.

Quality rating and private-prices: Evidence from the nursing home industry.

PubMed

Huang, Sean Shenghsiu; Hirth, Richard A

2016-12-01

We use the rollout of the five-star rating of nursing homes to study how private-pay prices respond to quality rating. We find that star rating increases the price differential between top- and bottom-ranked facilities. On average, prices of top-ranked facilities increased by 4.8 to 6.0 percent more than the prices of bottom-ranked facilities. We find stronger price effects in markets that are less concentrated where consumers may have more choices of alternative nursing homes. Our results suggest that with simplified design and when markets are less concentrated, consumers are more responsive to quality reporting. Copyright © 2016 Elsevier B.V. All rights reserved.

Distance travelled to purchase alcohol and the mediating effect of price.

PubMed

Hobday, M; Lensvelt, E; Gordon, E; Liang, W; Meuleners, L; Chikritzhs, T

2017-03-01

Little research has been done into the distance travelled by consumers to purchase alcohol, whether this is influenced by demographic characteristics or drinking levels of consumers, and the effect of price on purchase distance. This study aimed to explore distances drinkers were prepared to travel to purchase alcohol at on- and off-site outlets and how these decisions were affected by price discounting. Online survey. The study, including 831 alcohol consumers aged 18 years and older living in Australian capital cities, was undertaken in 2012. The survey was used to gather data on the distances which participants anticipated that they usually travelled to purchase alcohol. The data provided insight into which factors influence where participants would choose to purchase alcohol and the possible effects of price discounts on purchase distance. Most participants would choose to travel less than 10 km to purchase alcohol. Data indicated that price discounting might increase the purchase distance that most participants would be prepared to travel to purchase alcohol; this was more marked regarding off-site outlets and among high-risk drinking groups including young males and participants with risky drinking levels. Price discounting affects hypothetical purchase distance choices, indicating the importance of price when implementing alcohol control policies. Purchase distance might be more affected by price discounting among consumers visiting off-site outlets, but less useful when exploring associations with on-site outlets. Copyright © 2016 The Royal Society for Public Health. Published by Elsevier Ltd. All rights reserved.

Does Intellectual Property Restrict Output? An Analysis of Pharmaceutical Markets*

PubMed Central

Lakdawalla, Darius; Philipson, Tomas

2013-01-01

Standard normative analysis of intellectual property focuses on the balance between incentives for research and the static welfare costs of reduced price-competition from monopoly. However, static welfare loss from patents is not universal. While patents restrict price competition, they may also provide static welfare benefits by improving incentives for marketing, which is a form of non-price competition. We show theoretically how stronger marketing incentives mitigate, and can even offset, the static costs of monopoly pricing. Empirical analysis in the pharmaceutical industry context suggests that, in the short-run, patent expirations reduce consumer welfare as a result of decreased marketing effort. In the long-run, patent expirations do benefit consumers, but by 30% less than would be implied by the reduction in price alone. The social value of monopoly marketing to consumers alone is roughly on par with its costs to firms. PMID:25221349

Does Intellectual Property Restrict Output? An Analysis of Pharmaceutical Markets.

PubMed

Lakdawalla, Darius; Philipson, Tomas

2012-02-01

Standard normative analysis of intellectual property focuses on the balance between incentives for research and the static welfare costs of reduced price-competition from monopoly. However, static welfare loss from patents is not universal. While patents restrict price competition, they may also provide static welfare benefits by improving incentives for marketing, which is a form of non -price competition. We show theoretically how stronger marketing incentives mitigate, and can even offset, the static costs of monopoly pricing. Empirical analysis in the pharmaceutical industry context suggests that, in the short-run, patent expirations reduce consumer welfare as a result of decreased marketing effort. In the long-run, patent expirations do benefit consumers, but by 30% less than would be implied by the reduction in price alone. The social value of monopoly marketing to consumers alone is roughly on par with its costs to firms.

Brand Name, Store Image, and Country-of-Origin: The Effects on Consumers' Perception of Quality and Price.

ERIC Educational Resources Information Center

King, Margaret C. A.

1993-01-01

A review of literature indicated that, with regard to brand labels, consumers' perception of price, but not of quality, was affected. Consumers expected to pay more for goods bought in a higher status store and rated imported goods as being more expensive than domestically produced goods. Products from developing countries received lower quality…

Analysis of rice purchase decision on rice consumer in Bandung city

NASA Astrophysics Data System (ADS)

Kusno, K.; Imannurdin, A.; Syamsiyah, N.; Djuwendah, E.

2018-03-01

This study was conducted at three kinds of purchase location which were traditional market, rice kiosk, and supermarket in Bandung City, with survey data of 108 respondents which were selected by systematic random sampling. The aim of this study is to (1) identify consumer characteristics, (2) identify which atribute is considered by consumer in buying rice, and (3) analyze the relationship between purchase decision and income class. Data were analyzed by descriptive analysis and Chi Square test. The results showed most consumers in the traditional market were middle-educated and lower middle-income, at the rice kiosk, the consumer were generally middle-educated and middle-income, and in the supermarkets, the majority were high-educated and upper middle-income consumers. “Kepulenan” be the first priority of most consumers, but for the lower-middle class, the main priority was price. Thus, in case of scarcity and rice price increase, the government should immediately arrange market operations which targeting to lower-middle class consumers. There was a significant relationship between (1) the quality of rice consumed, (2) the frequency of rice purchase per month, and (3) attitudes toward rice price increase; each with the income class. Although the price of rice increase, consumers of middle and upper-middle were remain loyal to the quality of rice they consumed. This indicates rice market in Bandung city is an ideal market for premium rice so that traders and producers are expected to maintain the quality of rice, such as keep using superior seeds and applying good cultivation based on Good Agricultural Practice (GAP) rules.

Measuring Price Changes: A Study of the Price Indexes. Fourth Edition.

ERIC Educational Resources Information Center

Wallace, William H.; Cullison, William E.

This three-part monograph examines the major price indexes used to measure the intensity of inflation. The first part discusses the recent behavior of prices as measured by the Consumer Price Index (commodities, goods, and services), the Producer Price Index (wholesale prices of crude materials, intermediate materials, supplies, components, and…

Spatial competition and price formation

NASA Astrophysics Data System (ADS)

Nagel, Kai; Shubik, Martin; Paczuski, Maya; Bak, Per

2000-12-01

We look at price formation in a retail setting, that is, companies set prices, and consumers either accept prices or go someplace else. In contrast to most other models in this context, we use a two-dimensional spatial structure for information transmission, that is, consumers can only learn from nearest neighbors. Many aspects of this can be understood in terms of generalized evolutionary dynamics. In consequence, we first look at spatial competition and cluster formation without price. This leads to establishement size distributions, which we compare to reality. After some theoretical considerations, which at least heuristically explain our simulation results, we finally return to price formation, where we demonstrate that our simple model with nearly no organized planning or rationality on the part of any of the agents indeed leads to an economically plausible price.

Assistive technology pricing in Australia: is it efficient and equitable?

PubMed

Summers, Michael P; Verikios, George

2018-02-01

Objective To examine available systematically collected evidence regarding prices for assistive technology (AT; e.g. disability aids and equipment) in Australia with other comparable countries. Issues of appropriate AT pricing are coming to the fore as a consequence of efforts to move to consumer-centric purchasing decisions with the National Disability Insurance Scheme (NDIS) and also in the recent aged care reforms. Methods We identified and present three sets of AT price comparisons. Two comparisons were based solely on the lowest prices advertised on the internet, and one comparison examined recommended retail prices. Variables essential to ensuring accurate comparisons, as well as significant supply-chain issues were also examined and considered in the analyses. Results The first internet-only price comparison found that overall AT prices were 38% higher in Australia compared to other countries, but did not factor in shipping and other related costs that are essential to include given that most AT is imported. The second internet-only price comparison found that overall Australian prices were 24% lower when shipping and related costs were included. The recommended retail price comparisons found that Australian prices were between 14% and 27% lower. Prices for internet-only retailers (those with no bricks-and-mortar presence) are consistently lower for all products than those sold by retailers with actual shop-fronts. Further, there is no evidence of suppliers earning supranormal profits in Australia. Conclusions The results indicate that AT prices in Australia are efficient and equitable, with no significant indicators of market failure which would require government intervention. Efforts to reduce prices through the excessive use of large-scale government procurement programs are likely to reduce diversity and innovation in AT and raise AT prices over time. Open markets and competition with centralised tracking of purchases and providers to minimise possible over-servicing/over-charging align well with the original intention of the NDIS, and are likely to yield the best outcomes for consumers at the lowest costs. What is known about the topic? Government-funded programs are used extensively to purchase AT because it is a primary enabler for people of all ages with disabilities. Perceptions of unreasonably high prices for AT in Australia are resulting in the widespread adoption of bulk purchasing and related strategies by governments. What does this paper add? Carefully undertaken systematic price comparisons between Australia and comparable Organization For Economic Cooperation and Development countries indicate that, on average, Australian prices are lower than elsewhere when delivery to Australia is taken into account. It was also found that prices at brick-and-mortar shops, with all the services they provide to ensure the appropriateness of the products provided to meet the consumers' needs and goals, are substantially higher than Internet purchases in which the consumer bears all the risks and responsibilities for outcomes. What are the implications? Overuse of government bulk purchasing and similar arrangements will lead to less diversity in the available AT products, related services and retail outlets, resulting in less choice for consumers and higher risks of poor outcomes through less focus on matching consumers with the 'right' products for their needs and goals, and ultimately higher AT prices over time as competition is reduced to a few major suppliers.

Which types of hospital mergers save consumers money?

PubMed

Connor, R A; Feldman, R D; Dowd, B E; Radcliff, T A

1997-01-01

This study analyzes the changes in costs and prices from 1986 to 1994 for more than 3,500 U.S. short-term general hospitals, including 122 horizontal mergers. These mergers were generally financially beneficial to consumers, providing average price reductions of approximately 7 percent. Merger-related price reductions were considerably less in market areas with higher market concentration levels. Merger-related price reductions in areas with higher penetration by health maintenance organizations (HMOs) were approximately twice those in areas with lower HMO penetration. Merger-related price reductions were greater for low-occupancy hospitals, nonteaching hospitals, nonsystem hospitals, similar-size hospitals, and hospitals with greater premerger service duplication.

JPRS Report, Soviet Union, Economic Affairs.

DTIC Science & Technology

1988-09-02

May-4 Jun 88] 36 Higher Cooperative Prices Censured [A. Rubinov; LITERATURNAYA GAZETA, 15 Jun 88] 42 Tadzhik SSR Consumer Goods, Services Report...11409 JPRS-UEA-88-033 2 September 1988 CONSUMER GOODS, DOMESTIC TRADE 36 POLICY, ORGANIZATION Publicist Nuykin Faults Arguments for Price Hikes on...meat in their ration . The fighters for social justice have already roughed out the sizes of the price increases. Almost all food products are

East Europe Report, Economic and Industrial Affairs

DTIC Science & Technology

1984-08-24

inclusion in the prices of extra overhead costs of monopolistic enterprises also have a distorting effect on prices (pp 97ff). Kopatsy is also right... price of petroleum has led to the reconsid- eration of the energy policy in all the petroleum- consuming countries, turning from the era of waste to...the tasks that face the Romanian exporters of petroleum equipment, by creating proper representations in areas and countries consuming such equipment

Retrading, production, and asset market performance.

PubMed

Gjerstad, Steven D; Porter, David; Smith, Vernon L; Winn, Abel

2015-11-24

Prior studies have shown that traders quickly converge to the price-quantity equilibrium in markets for goods that are immediately consumed, but they produce speculative price bubbles in resalable asset markets. We present a stock-flow model of durable assets in which the existing stock of assets is subject to depreciation and producers may produce additional units of the asset. In our laboratory experiments inexperienced consumers who can resell their units disregard the consumption value of the assets and compete vigorously with producers, depressing prices and production. Consumers who have first participated in experiments without resale learn to heed their consumption values and, when they are given the option to resell, trade at equilibrium prices. Reproducibility is therefore the most natural and most effective treatment for suppression of bubbles in asset market experiments.

The impact of advertising on price and practice volume. A case study of dental markets.

PubMed

Kwon, I W; Safranski, S R; Kim, J H

1993-02-01

Advertising is often considered a catalyst which stimulates competition by communicating the important attributes (information) of goods and services to consumers. Theoretically, advertising makes demand responsive to strategic price differences. This advertisement-induced price elasticity puts competitive pressure on the providers' pricing strategy. It has been assumed that this effect also exists in the health care market. This study investigates the impact that the advertising of services has on the price and demand behaviour in the dental care market. The sampling frame includes 1,326 dentists, 558 (44.3%) of whom have advertised their services. The statistical results seem to dispute the claim that advertising lowers the consumer's price and increases the advertising dentist's market share.

Understanding tobacco industry pricing strategy and whether it undermines tobacco tax policy: the example of the UK cigarette market.

PubMed

Gilmore, Anna B; Tavakoly, Behrooz; Taylor, Gordon; Reed, Howard

2013-07-01

Tobacco tax increases are the most effective means of reducing tobacco use and inequalities in smoking, but effectiveness depends on transnational tobacco company (TTC) pricing strategies, specifically whether TTCs overshift tax increases (increase prices on top of the tax increase) or undershift the taxes (absorb the tax increases so they are not passed onto consumers), about which little is known. Review of literature on brand segmentation. Analysis of 1999-2009 data to explore the extent to which tax increases are shifted to consumers, if this differs by brand segment and whether cigarette price indices accurately reflect cigarette prices. UK. UK smokers. Real cigarette prices, volumes and net-of-tax- revenue by price segment. TTCs categorise brands into four price segments: premium, economy, mid and 'ultra-low price' (ULP). TTCs have sold ULP brands since 2006; since then, their real price has remained virtually static and market share doubled. The price gap between premium and ULP brands is increasing because the industry differentially shifts tax increases between brand segments; while, on average, taxes are overshifted, taxes on ULP brands are not always fully passed onto consumers (being absorbed at the point each year when tobacco taxes increase). Price indices reflect the price of premium brands only and fail to detect these problems. Industry-initiated cigarette price changes in the UK appear timed to accentuate the price gap between premium and ULP brands. Increasing the prices of more expensive cigarettes on top of tobacco tax increases should benefit public health, but the growing price gap enables smokers to downtrade to cheaper tobacco products and may explain smoking-related inequalities. Governments must monitor cigarette prices by price segment and consider industry pricing strategies in setting tobacco tax policies. © 2013 Society for the Study of Addiction.

Firm strategy and consumer behaviour under a complex tobacco tax system: implications for the effectiveness of taxation on tobacco control.

PubMed

Atuk, Oğuz; Özmen, M Utku

2017-05-01

The current tobacco taxation scheme in Turkey, a mix of high ad valorem tax and low specific tax, contains incentives for firms and consumers to change pricing and consumption patterns, respectively. The association between tax structure and price and tax revenue stability has not been studied in detail with micro data containing price segment information. In this study, we analyse whether incentives for firms and consumers undermine the effectiveness of tax policy in reducing consumption. We calculate alternative taxation scheme outcomes using differing ad valorem and specific tax rates through simulation analysis. We also estimate price elasticity of demand using detailed price and volume statistics between segments via regression analysis. A very high ad valorem rate provides strong incentives to firms to reduce prices. Therefore, this sort of tax strategy may induce even more consumption despite its initial aim of discouraging consumption. While higher prices dramatically reduce consumption of economy and medium price segment cigarettes, demand for premium segment cigarettes is found to be highly price-inelastic. The current tax scheme, based on both ad valorem and specific components, introduces various incentives to firms as well as to consumers which reduce the effectiveness of the tax policy. Therefore, on the basis of our theoretical predictions, an appropriate tax scheme should involve a balanced combination of ad valorem and specific rates, away from extreme ( ad valorem or specific dominant) cases to enhance the effectiveness of tax policy for curbing consumption. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

Understanding tobacco industry pricing strategy and whether it undermines tobacco tax policy: the example of the UK cigarette market

PubMed Central

Gilmore, Anna B; Tavakoly, Behrooz; Taylor, Gordon; Reed, Howard

2013-01-01

Aims Tobacco tax increases are the most effective means of reducing tobacco use and inequalities in smoking, but effectiveness depends on transnational tobacco company (TTC) pricing strategies, specifically whether TTCs overshift tax increases (increase prices on top of the tax increase) or undershift the taxes (absorb the tax increases so they are not passed onto consumers), about which little is known. Design Review of literature on brand segmentation. Analysis of 1999–2009 data to explore the extent to which tax increases are shifted to consumers, if this differs by brand segment and whether cigarette price indices accurately reflect cigarette prices. Setting UK. Participants UK smokers. Measurements Real cigarette prices, volumes and net-of-tax- revenue by price segment. Findings TTCs categorise brands into four price segments: premium, economy, mid and ‘ultra-low price’ (ULP). TTCs have sold ULP brands since 2006; since then, their real price has remained virtually static and market share doubled. The price gap between premium and ULP brands is increasing because the industry differentially shifts tax increases between brand segments; while, on average, taxes are overshifted, taxes on ULP brands are not always fully passed onto consumers (being absorbed at the point each year when tobacco taxes increase). Price indices reflect the price of premium brands only and fail to detect these problems. Conclusions Industry-initiated cigarette price changes in the UK appear timed to accentuate the price gap between premium and ULP brands. Increasing the prices of more expensive cigarettes on top of tobacco tax increases should benefit public health, but the growing price gap enables smokers to downtrade to cheaper tobacco products and may explain smoking-related inequalities. Governments must monitor cigarette prices by price segment and consider industry pricing strategies in setting tobacco tax policies. PMID:23445255

A cost-benefit analysis of demand for food.

PubMed Central

Hursh, S R; Raslear, T G; Shurtleff, D; Bauman, R; Simmons, L

1988-01-01

Laboratory studies of consumer demand theory require assumptions regarding the definition of price in the absence of a medium of exchange (money). In this study we test the proposition that the fundamental dimension of price is a cost-benefit ratio expressed as the effort expended per unit of food value consumed. Using rats as subjects, we tested the generality of this "unit price" concept by varying four dimensions of price: fixed-ratio schedule, number of food pellets per fixed-ratio completion, probability of reinforcement, and response lever weight or effort. Two levels of the last three factors were combined in a 2 x 2 x 2 design giving eight groups. Each group was studied under a series of six FR schedules. Using the nominal values of all factors to determine unit price, we found that grams of food consumed plotted as a function of unit price followed a single demand curve. Similarly, total work output (responses x effort) conformed to a single function when plotted in terms of unit price. These observations provided a template for interpreting the effects of biological factors, such as brain lesions or drugs, that might alter the cost-benefit ratio. PMID:3209958

Heterogeneity and nonlinearity in consumers' preferences: An application to the olive oil shopping behavior in Chile.

PubMed

Romo-Muñoz, Rodrigo Alejandro; Cabas-Monje, Juan Hernán; Garrido-Henrríquez, Héctor Manuel; Gil, José María

2017-01-01

In relatively unknown products, consumers use prices as a quality reference. Under such circumstances, the utility function can be non-negative for a specific price range and generate an inverted U-shaped function. The extra virgin olive oil market in Chile is a good example. Although domestic production and consumption have increased significantly in the last few years, consumer knowledge of this product is still limited. The objective of this study was to analyze Chilean consumer preferences and willingness to pay for extra virgin olive oil attributes. Consumers were segmented taking into account purchasing frequency. A Random Parameter Logit model was estimated for preference heterogeneity. Results indicate that the utility function is nonlinear allowing us to differentiate between two regimes. In the first regime, olive oil behaves as a conspicuous good, that is, higher utility is assigned to higher prices and consumers prefer foreign products in smaller containers. Under the second regime, Chilean olive oil in larger containers is preferred.

The Feedback-Related Negativity and the P300 Brain Potential Are Sensitive to Price Expectation Violations in a Virtual Shopping Task.

PubMed

Schaefer, Alexandre; Buratto, Luciano G; Goto, Nobuhiko; Brotherhood, Emilie V

A large body of evidence shows that buying behaviour is strongly determined by consumers' price expectations and the extent to which real prices violate these expectations. Despite the importance of this phenomenon, little is known regarding its neural mechanisms. Here we show that two patterns of electrical brain activity known to index prediction errors-the Feedback-Related Negativity (FRN) and the feedback-related P300 -were sensitive to price offers that were cheaper than participants' expectations. In addition, we also found that FRN amplitude time-locked to price offers predicted whether a product would be subsequently purchased or not, and further analyses suggest that this result was driven by the sensitivity of the FRN to positive price expectation violations. This finding strongly suggests that ensembles of neurons coding positive prediction errors play a critical role in real-life consumer behaviour. Further, these findings indicate that theoretical models based on the notion of prediction error, such as the Reinforcement Learning Theory, can provide a neurobiologically grounded account of consumer behavior.

Motor fuels : California gasoline price behavior

DOT National Transportation Integrated Search

2000-04-01

Retail gasoline prices in the United States have risen sharply since early 1999, mostly in response to sharply rising world crude oil prices. Although gasoline prices have, in general, been relatively low for U.S. consumers-compared with both histori...

[The price-based certainty of purchase influences consumer behavior for discount].

PubMed

Arihara, Katsuhiko; Ariga, Atsunori; Furuya, Takeshi

2016-04-01

Tversky & Kahneman (1981) reported that most participants decided to drive when they could save money on a low-price good as compared to when they could save on a high-price good, even though the discount prices were same. Although this irrational decision making has been interpreted as a rate-dependent estimation of value (prospect theory), this study newly proposes that it can be explained by the certainty of purchase based on the price of goods. Experiment 1 replicated the previously reported difference in decision making, and additionally demonstrated that participants' certainty of purchase was lower for a high- than a low-price good. When it was emphasized that participants' intention to purchase high- and low-price goods were equally sure, decision making did not significantly differ (Experiment 2). Furthermore, decision making differed based only on the certainty of purchase even,when prices of goods were-same (Experiment 3). Consumers' decision making may be rather rational, depending straightforwardly on the certainty of purchase that is susceptible to price.

Pricing products: juxtaposing affordability with quality appeal.

PubMed

1984-01-01

Choosing appropriate product prices is 1 of the most crucial steps in creating an effective contraceptive social marketing (CSM) sales campaign. The Social Marketing Forum conducted an informal survey of social marketing project managers, international contractors, and marketing consultants to determine how CSM programs cope with pricing problems and ways to circumvent some obstacles. According to Diana Altman, a family planning consultant, low prices that make products available to needy individuals are more important than the program's self sufficiency, yet if prices are too low, consumers think the products were unusable in the US and thus were dumped on local markets. Other key factors include commercial competition, spiraling inflation rates, and problems with rising prices and retailer/distributor margins. A sampling of per capita gross national products indicates the poverty level of most CSM projects' target market. Consequently, CSM projects must set low pices, regardless of program operating costs. The goal often is to increase the demand and availability for contraceptives. The fact that social marketing products must pass through retail networks to reach consumers complicates the pricing equation. To deal with the problem, India's Nirodh program gives a 25% margin to distributors/wholesalers, compared to 6% offered on most other goods. Retailers also receive a 25% margin, more than double the commercial rate. Once prices are set, increases pose hazards. Local government approval often is a prerequisite and can require lengthy negotiations. Market studies remain a valuable approach to effective pricing, according to PNA's Mallamad and other research consultants. They cite such effective research strategies as test marketing products and asking consumers how prices affect buying habits. Further, CSM projects can jump over some pricing hurdles through creative marketing. An effective pricing strategy alone cannot produce a successful CSM program. Pricing must accompany such factors as strong advertising, committed management, and adept salespersons.

Modeling Philippine Stock Exchange Composite Index Using Time Series Analysis

NASA Astrophysics Data System (ADS)

Gayo, W. S.; Urrutia, J. D.; Temple, J. M. F.; Sandoval, J. R. D.; Sanglay, J. E. A.

2015-06-01

This study was conducted to develop a time series model of the Philippine Stock Exchange Composite Index and its volatility using the finite mixture of ARIMA model with conditional variance equations such as ARCH, GARCH, EG ARCH, TARCH and PARCH models. Also, the study aimed to find out the reason behind the behaviorof PSEi, that is, which of the economic variables - Consumer Price Index, crude oil price, foreign exchange rate, gold price, interest rate, money supply, price-earnings ratio, Producers’ Price Index and terms of trade - can be used in projecting future values of PSEi and this was examined using Granger Causality Test. The findings showed that the best time series model for Philippine Stock Exchange Composite index is ARIMA(1,1,5) - ARCH(1). Also, Consumer Price Index, crude oil price and foreign exchange rate are factors concluded to Granger cause Philippine Stock Exchange Composite Index.

An analysis of the impact of Renewable Portfolio Standards on residential electricity prices

NASA Astrophysics Data System (ADS)

Larson, Andrew James

A Renewable Portfolio Standard (RPS) has become a popular policy for states seeking to increase the amount of renewable energy generated for consumers of electricity. The success of these state programs has prompted debate about the viability of a national RPS. The impact that these state level policies have had on the price consumers pay for electricity is the subject of some debate. Several federal organizations have conducted studies of the impact that a national RPS would have on electricity prices paid by consumers. NREL and US EIA utilize models that analyze the inputs in electricity generation to examine the future price impact of changes to electricity generation and show marginal increases in prices paid by end users. Other empirical research has produced similar results, showing that the existence of an RPS increases the price of electricity. These studies miss important aspects of RPS policies that may change how we view these price increases from RPS policies. By examining the previous empirical research on RPS policies, this study seeks to identify the controls necessary to build an effective model. These controls are utilized in a fixed effects model that seeks to show how the controls and variables of interest impact electricity prices paid by residential consumers of electricity. This study utilizes a panel data set from 1990 to 2014 to analyze the impact of these policies controlling for generating capacity, the regulatory status of utilities in each state, demographic characteristics of the states, and fuel prices. The results of the regressions indicate that prices are likely to be higher in states that have an RPS compared to states that do not have such a policy. Several of the characteristics mentioned above have price impacts, and so discussing RPS policies in the context of other factors that contribute to electricity prices is essential. In particular, the regulatory status of utilities in each state is an important determinate of price as well as the amount of renewable energy generated in each state. There are several implications of this analysis that are relevant for policy makers who seek to gain the environmental benefits of these policies, but who are also concerned with the costs those polices may impose on consumers of electricity. First, allowing utilities as much time as possible to comply with the mandates of the RPS will mitigate the price increases associated with implementation of and compliance with the policy. Secondly, policy makers need not fear imposing high targets for their RPS as this is not associated with higher electricity prices. Finally, policy makers should be concerned with the bindingness of the policies they impose. States with non-binding policies tend to have higher electricity prices, likely due to the costs of early compliance. As such imposing interim targets may raise rates more than simply allowing compliance at a pace utilities can bear without substantially increasing prices.

Crowdsourcing healthcare costs: Opportunities and challenges for patient centered price transparency.

PubMed

Meisel, Zachary F; VonHoltz, Lauren A Houdek; Merchant, Raina M

2016-03-01

Efforts to improve health care price transparency have garnered significant attention from patients, policy makers, and health insurers. In response to increasing consumer demand, state governments, insurance plans, and health care providers are reporting health care prices. However, such data often do not provide consumers with the most salient information: their own actual out-of-pocket cost for medical care. Although untested, crowdsourcing, a mechanism for the public to help answer complex questions, represents a potential solution to the problem of opaque hospital costs. This article explores, the challenges and potential opportunities for crowdsourcing out-of-pocket costs for healthcare consumers. Copyright © 2015 Elsevier Inc. All rights reserved.

Energy data report: prices and margins of No. 2 distillate fuel oil. Monthly report, January 1982

DOE Office of Scientific and Technical Information (OSTI.GOV)

Whatley, A.

1982-03-22

Data are presented on the average prices and gross margins for the refining, reselling, and retailing sectors of the No. 2 distillate fuel oil market. Data are tabulated on prices and sales volumes of No. 2 fuel oil and No. 2 diesel fuel for residential, industrial/commercial, institutional/utility, other ultimate consumer sales, and nonultimate consumer sales. A brief discussion of the sampling and estimation procedures used in this report appears in the appendix.

Energy data report: prices and margins of No. 2 distillate fuel oil. Monthly report, October 1982

DOE Office of Scientific and Technical Information (OSTI.GOV)

Whatley, A.

1982-12-20

Data are presented on the average prices and gross margins for the refining, reselling, and retailing sectors of the No. 2 distillate fuel oil market. Data are tabulated on prices and sales volumes of No. 2 fuel oil and No. 2 diesel fuel for residential, industrial/commercial, institutional/utility, other ultimate consumer sales, and nonultimate consumer sales. A brief discussion of the sampling and estimation procedures used in this report appears in the appendix.

Energy data report: prices and margins of No. 2 distillate fuel oil. Monthly report, November 1982

DOE Office of Scientific and Technical Information (OSTI.GOV)

Whatley, A.

1983-01-18

Data are presented on the average prices and gross margins for the refining, reselling, and retailing sectors of the No. 2 distillate fuel oil market. Data are tabulated on prices and sales volumes of No. 2 fuel oil and No. 2 diesel fuel for residential, industrial/commercial, institutional/utility, other ultimate consumer sales, and nonultimate consumer sales. A brief discussion of the sampling and estimation procedures used in this report appears in the appendix.

Energy data report: prices and margins of No. 2 distillate fuel oil. Monthly report, December 1981

DOE Office of Scientific and Technical Information (OSTI.GOV)

Whatley, A.

1982-02-22

Data are presented on the average prices and gross margins for the refining, reselling, and retailing sectors of the No. 2 distillate fuel oil market. Data are tabulated on prices and sales volumes of No. 2 fuel oil and No. 2 diesel fuel for residential, industrial/commercial, institutional/utility, other ultimate consumer sales, and nonultimate consumer sales. A brief discussion of the sampling and estimation procedures used in this report appears in the appendix.

The relationship between alcohol price and brand choice among underage drinkers: are the most popular alcoholic brands consumed by youth the cheapest?

PubMed

Albers, Alison B; DeJong, William; Naimi, Timothy S; Siegel, Michael; Jernigan, David H

2014-11-01

We examined the influence of price on alcohol brand choice among underage youth. Using a national sample of 1,032 youth, ages 13-20, recruited from a national Internet panel in 2011-2012, we compared differences in mean prices between popular and unpopular brands, examined the association of price and brand popularity using logistic regression, and rank ordered the average price of top brands. Lower brand-specific prices were significantly associated with higher levels of past 30-day consumption prevalence. However, youth did not preferentially consume the cheapest brands. These findings indicate that youth have preferences for certain brands, even if those brands cost more than competing brands. Our study highlights the need for research on the impact of brand-specific alcohol marketing on underage drinking.

Third-Degree Price Discrimination Revisited

ERIC Educational Resources Information Center

Kwon, Youngsun

2006-01-01

The author derives the probability that price discrimination improves social welfare, using a simple model of third-degree price discrimination assuming two independent linear demands. The probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. He derives the…

16 CFR 640.3 - General requirements for risk-based pricing notices.

Code of Federal Regulations, 2011 CFR

2011-01-01

... notice (“risk-based pricing notice”) in the form and manner required by this part if the person both— (1... of, credit to that consumer that is primarily for personal, family, or household purposes; and (2... directly comparing the material terms offered to each consumer and the material terms offered to other...

The increased concentration of health plan markets can benefit consumers through lower hospital prices.

PubMed

Melnick, Glenn A; Shen, Yu-Chu; Wu, Vivian Yaling

2011-09-01

The long-term trend of consolidation among US health plans has raised providers' concerns that the concentration of health plan markets can depress their prices. Although our study confirmed that, it also revealed a more complex picture. First, we found that 64 percent of hospitals operate in markets where health plans are not very concentrated, and only 7 percent are in markets that are dominated by a few health plans. Second, we found that in most markets, hospital market concentration exceeds health plan concentration. Third, our study confirmed earlier studies showing that greater hospital market concentration leads to higher hospital prices. Fourth, we found that hospital prices in the most concentrated health plan markets are approximately 12 percent lower than in more competitive health plan markets. Overall, our results show that more concentrated health plan markets can counteract the price-increasing effects of concentrated hospital markets, and that-contrary to conventional wisdom-increased health plan concentration benefits consumers through lower hospital prices as long as health plan markets remain competitive. Our findings also suggest that consumers would benefit from policies that maintained competition in hospital markets or that would restore competition to hospital markets that are uncompetitive.

Smokers' strategic responses to sin taxes: evidence from panel data in Thailand.

PubMed

White, Justin S; Ross, Hana

2015-02-01

In addition to quitting and cutting consumption, smokers faced with higher cigarette prices may compensate in several ways that mute the health impact of cigarette taxes. This study examines three price avoidance strategies among adult male smokers in Thailand: trading down to a lower-priced brand, buying individual sticks of cigarettes instead of packs, and substituting roll-your-own tobacco for factory-manufactured cigarettes. Using two panels of microlevel data from the International Tobacco Control Southeast Asia Study, collected in 2005 and 2006, we estimate the effects of a substantial excise tax increase implemented throughout Thailand in December 2005. We present estimates of the marginal effects and price elasticities for each of five consumer behaviors. We find that, controlling for baseline smoking characteristics, sociodemographics, and policy variables, quitting is highly sensitive to changes in cigarette prices, but so are brand choice, stick-buying, and use of roll-your-own tobacco. Neglecting such strategic responses leads to overestimates of a sin tax's health impact, and neglecting product substitution distorts estimates of the price elasticity of cigarette demand. We discuss the implications for consumer welfare and several policies that mitigate the adverse impact of consumer responses. Copyright © 2013 John Wiley & Sons, Ltd.

Smokers’ Strategic Responses to Sin Taxes: Evidence from Panel Data in Thailand

PubMed Central

White, Justin S.; Ross, Hana

2014-01-01

In addition to quitting and cutting consumption, smokers faced with higher cigarette prices may compensate in several ways that mute the health impact of cigarette taxes. This study examines three price avoidance strategies among adult male smokers in Thailand: trading down to a lower-priced brand, buying individual sticks of cigarettes instead of packs, and substituting roll-your-own (RYO) tobacco for factory-manufactured cigarettes. Using two panels of microlevel data from the International Tobacco Control Southeast Asia Study, collected in 2005 and 2006, we estimate the effects of a substantial excise tax increase implemented throughout Thailand in December 2005. We present estimates of the marginal effects and price elasticities for each of five consumer behaviors. We find that, controlling for baseline smoking characteristics, socio-demographics, and policy variables, quitting is highly sensitive to changes in cigarette prices, but so are brand choice, stick-buying, and use of RYO tobacco. Neglecting such strategic responses leads to over-estimates of a sin tax’s health impact, and neglecting product substitution distorts estimates of the price elasticity of cigarette demand. We discuss the implications for consumer welfare and several policies that mitigate the adverse impact of consumer responses. PMID:24677731

Impacts of demand response and renewable generation in electricity power market

NASA Astrophysics Data System (ADS)

Zhao, Zhechong

This thesis presents the objective of the research which is to analyze the impacts of uncertain wind power and demand response on power systems operation and power market clearing. First, in order to effectively utilize available wind generation, it is usually given the highest priority by assigning zero or negative energy bidding prices when clearing the day-ahead electric power market. However, when congestion occurs, negative wind bidding prices would aggravate locational marginal prices (LMPs) to be negative in certain locations. A load shifting model is explored to alleviate possible congestions and enhance the utilization of wind generation, by shifting proper amount of load from peak hours to off peaks. The problem is to determine proper amount of load to be shifted, for enhancing the utilization of wind generation, alleviating transmission congestions, and making LMPs to be non-negative values. The second piece of work considered the price-based demand response (DR) program which is a mechanism for electricity consumers to dynamically manage their energy consumption in response to time-varying electricity prices. It encourages consumers to reduce their energy consumption when electricity prices are high, and thereby reduce the peak electricity demand and alleviate the pressure to power systems. However, it brings additional dynamics and new challenges on the real-time supply and demand balance. Specifically, price-sensitive DR load levels are constantly changing in response to dynamic real-time electricity prices, which will impact the economic dispatch (ED) schedule and in turn affect electricity market clearing prices. This thesis adopts two methods for examining the impacts of different DR price elasticity characteristics on the stability performance: a closed-loop iterative simulation method and a non-iterative method based on the contraction mapping theorem. This thesis also analyzes the financial stability of DR load consumers, by incorporating explicit LMP formulations and consumer payment requirements into the network-constrained unit commitment (NCUC) problem. The proposed model determines the proper amount of DR loads to be shifted from peak hours to off-peaks under ISO's direct load control, for reducing the operation cost and ensuring that consumer payments of DR loads will not deteriorate significantly after load shifting. Both MINLP and MILP models are discussed, and improved formulation strategies are presented.

The consumer welfare implications of governmental policies and firm strategy in markets for medicines.

PubMed

Chatterjee, Chirantan; Kubo, Kensuke; Pingali, Viswanath

2015-12-01

This paper empirically examines the consumer welfare implications of changes in government policies related to patent protection and compulsory licensing in the Indian market for oral anti-diabetic (OAD) medicines. In contrast to previous studies on the impact of pharmaceutical patents in India, we observe, and estimate the welfare effects accruing from differential pricing and voluntary licensing strategies of patent-holding innovator firms. Three novel molecules belonging to the dipeptidyl peptidase-4 (DPP-4) inhibitor class of OADs have been launched in India by the patent holders, at lower prices than those prevailing in the developed countries. Using aggregate market transaction data, we structurally estimate demand and supply and use the parameter estimates in our model to simulate consumer welfare under various counterfactual scenarios. Our results suggest that the introduction of DPP-4 inhibitors generated a consumer surplus gain of around 7.6 cents per day for a typical DPP-4 inhibitor user under the existing differential pricing and voluntary licensing strategies. If the innovators decide to price at developed-country levels, this surplus is eliminated almost entirely. The issuance of compulsory licensing does not always improve consumer welfare because if innovators defer or delay the introduction of new drugs in response, the loss in consumer welfare could be substantial. Copyright © 2015 Elsevier B.V. All rights reserved.

Has it become increasingly expensive to follow a nutritious diet? Insights from a new price index for nutritious diets in Sweden 1980-2012.

PubMed

Håkansson, Andreas

2015-01-01

Health-related illnesses such as obesity and diabetes continue to increase, particularly in groups of low socioeconomic status. The increasing cost of nutritious food has been suggested as an explanation. To construct a price index describing the cost of a diet adhering to nutritional recommendations for a rational and knowledgeable consumer and, furthermore, to investigate which nutrients have become more expensive to obtain over time. Linear programming and goal programming were used to calculate two optimal and nutritious diets for each year in the interval under different assumptions. The first model describes the rational choice of a cost-minimizing consumer; the second, the choice of a consumer trying to deviate as little as possible from average consumption. Shadow price analysis was used to investigate how nutrients contribute to the diet cost. The cost of a diet adhering to nutritional recommendations has not increased more than general food prices in Sweden between 1980 and 2012. However, following nutrient recommendations increases the diet cost even for a rational consumer, particularly for vitamin D, iron, and selenium. The cost of adhering to the vitamin D recommendation has increased faster than the general food prices. Not adhering to recommendations (especially those for vitamin D) offers an opportunity for consumers to lower the diet cost. However, the cost of nutritious diets has not increased more than the cost of food in general between 1980 and 2012 in Sweden.

Consumer satisfaction with pork meat and derived products in five European countries.

PubMed

Resano, Helena; Perez-Cueto, Federico J A; de Barcellos, Marcia D; Veflen-Olsen, Nina; Grunert, Klaus G; Verbeke, Wim

2011-02-01

This paper investigates consumers' satisfaction level with pork meat and derived products in five European countries. Data were collected through a cross-sectional web-based survey in Belgium, Denmark, Germany, Greece, and Poland during January 2008 with a total sample of 2437 consumers. Data included socio-demographics and questions regarding satisfaction with 27 common pork-based products; classified into fresh pork, processed pork and pork meat products. Satisfaction was evaluated in terms of overall satisfaction, as well as satisfaction with health-giving qualities, price, convenience and taste. Logistic regression analyses showed taste as the main determinant of satisfaction, followed by convenience. Healthfulness is not a significant driver of overall satisfaction. Price influences satisfaction with fresh pork more than with processed products. Tasty pork, easy to prepare and consume, with adequate promotion of its healthfulness, and with a good price/quality relationship appears to be the key factor to satisfy pork consumers. Copyright © 2010 Elsevier Ltd. All rights reserved.

Heterogeneity and nonlinearity in consumers’ preferences: An application to the olive oil shopping behavior in Chile

PubMed Central

Romo-Muñoz, Rodrigo Alejandro; Cabas-Monje, Juan Hernán; Garrido-Henrríquez, Héctor Manuel

2017-01-01

In relatively unknown products, consumers use prices as a quality reference. Under such circumstances, the utility function can be non-negative for a specific price range and generate an inverted U-shaped function. The extra virgin olive oil market in Chile is a good example. Although domestic production and consumption have increased significantly in the last few years, consumer knowledge of this product is still limited. The objective of this study was to analyze Chilean consumer preferences and willingness to pay for extra virgin olive oil attributes. Consumers were segmented taking into account purchasing frequency. A Random Parameter Logit model was estimated for preference heterogeneity. Results indicate that the utility function is nonlinear allowing us to differentiate between two regimes. In the first regime, olive oil behaves as a conspicuous good, that is, higher utility is assigned to higher prices and consumers prefer foreign products in smaller containers. Under the second regime, Chilean olive oil in larger containers is preferred. PMID:28892516

Price elasticity of tobacco products among economic classes in India, 2011–2012

PubMed Central

Selvaraj, Sakthivel; Srivastava, Swati; Karan, Anup

2015-01-01

Objectives The objectives of this study are to: (1) examine the pattern of price elasticity of three major tobacco products (bidi, cigarette and leaf tobacco) by economic groups of population based on household monthly per capita consumption expenditure in India and (2) assess the effect of tax increases on tobacco consumption and revenue across expenditure groups. Setting Data from the 2011–2012 nationally representative Consumer Expenditure Survey from 101 662 Indian households were used. Participants Households which consumed any tobacco or alcohol product were retained in final models. Primary outcome measures The study draws theoretical frameworks from a model using the augmented utility function of consumer behaviour, with a two-stage two-equation system of unit values and budget shares. Primary outcome measures were price elasticity of demand for different tobacco products for three hierarchical economic groups of population and change in tax revenue due to changes in tax structure. We finally estimated price elasticity of demand for bidi, cigarette and leaf tobacco and effects of changes in their tax rates on demand for these tobacco products and tax revenue. Results Own price elasticities for bidi were highest in the poorest group (−0.4328) and lowest in the richest group (−0.0815). Cigarette own price elasticities were −0.832 in the poorest group and −0.2645 in the richest group. Leaf tobacco elasticities were highest in the poorest (−0.557) and middle (−0.4537) groups. Conclusions Poorer group elasticities were the highest, indicating that poorer consumers are more price responsive. Elasticity estimates show positive distributional effects of uniform bidi and cigarette taxation on the poorest consumers, as their consumption is affected the most due to increases in taxation. Leaf tobacco also displayed moderate elasticities in poor and middle tertiles, suggesting that tax increases may result in a trade-off between consumption decline and revenue generation. A broad spectrum rise in tax rates across all products is critical for tobacco control. PMID:26656009

Creating a Student Price Index. Lesson Plan.

ERIC Educational Resources Information Center

Lewin, Roland

This lesson plan gives students a hands-on understanding of a price index, how it is composed, what it is used for, and some of its limitations. Students then can make the connection to some of the popular price indices such as the Consumer Price Index and the Producer Price Index. The lesson states a purpose; cites learning objectives; suggests…

Consumer choice between common generic and brand medicines in a country with a small generic market.

PubMed

Fraeyman, Jessica; Peeters, Lies; Van Hal, Guido; Beutels, Philippe; De Meyer, Guido R Y; De Loof, Hans

2015-04-01

Generic medicines offer an opportunity for governments to contain pharmaceutical expenditures, since generics are generally 10%-80% lower in price than brand medicines. Belgium has a small generic market that takes up 15% of the total pharmaceutical market in packages sold. To determine the knowledge of consumers about the different available packages of a common over-the-counter medicine (acetaminophen) with regard to price advantage, quality, and effectiveness in a country with a small generic market. We conducted an online survey in the general Flemish population using a questionnaire with 25 statements. The questionnaire also contained 2 informative interventions. First, we showed the price per package and per tablet that the patient would pay in the pharmacy. Second, we provided the respondent with general information about generic medication (equivalence, effectiveness, price, and recognition). Before and after the interventions, we probed for preferences and knowledge about the different packages. Multivariate logistic models were used to examine the independent effects of consumer characteristics on responses to the survey statements. We obtained a sample of 1,636 respondents. The general attitude towards generic medication was positive-only 5% would rather not use a generic. Nevertheless, only 17% of the respondents were able to recognize a generic medicine. Older consumers (aged 60 years and above) were more often confused about the different packages (OR = 2.59, 95% CI = 1.76-3.80, P ≤ 0.001). Consumers without a higher education degree tended to be more doubtful about the difference in effectiveness and quality between the different brands (OR = 0.59, 95% CI = 0.44-0.79, P ≤ 0.001). Consumer recognition of the name of the active substance of acetaminophen was poor. When different brands were displayed, possible price advantage seemed to be an important motive to switch to a cheaper brand. Consumers generally found medicines to be too expensive; however, consumers with medical or paramedical training had a different opinion. Two main recommendations can be made to increase the knowledge and enhance the trust in cheaper equivalent medicines. First, highlighting the name of the active substance on the label of medicine packages can reduce confusion and avoid health risks, especially among older consumers. Second, new investments or reallocation of budgets should be considered in order to provide consumers with authoritative information on the bioequivalence and price differences between the different available brands. This would be a cost-effective and potentially cost-saving investment for health care payers.

Consumers' choice of drinking water: Is it dependent upon perceived quality, convenience, price and attitude?

NASA Astrophysics Data System (ADS)

Wahid, Nabsiah Abdul; Cheng, Patrick Tan Foon; Abustan, Ismail; Nee, Goh Yen

2017-10-01

Tap water is one of the many sources of water that the public as consumers can choose for drinking. This study hypothesized that perceived quality, convenience, price and environmental attitude would determine consumers's choice of drinking water following the Attribution Theory as the underlying model. A survey was carried out on Malaysia's public at large. From 301 usable data, the PLS analysis revealed that only perceived quality, convenience and price attributed towards the public's choice of drinking water while attitude was not significant. The findings are beneficial for the water sector industry, particularly for drinking water operators, state governments, and alternative drinking water manufacturers like bottled water companies. The ability to identify factors for why consumers in the marketplace choose the source of their drinking water would enable the operators to plan and strategize tactics that can disseminate accurate knowledge about the product that can motivate marketability of drinking water in Malaysia.

Price differentiation and transparency in the global pharmaceutical marketplace.

PubMed

Ridley, David B

2005-01-01

Pharmaceutical manufacturers have increased the availability of their products and sometimes increased their own financial returns by charging lower prices outside of the US and by discounting to lower-income patients in the US. Examples include discounted HIV-AIDS drugs in developing countries and pharmaceutical manufacturers' discount cards in the US. Representatives of some international organisations argue that the price reductions are insufficient to make the medications widely available to lower-income patients. The WHO advocates both differential pricing and price transparency. While its efforts are well meaning, this paper identifies six concerns about its methods of comparing the price of a given molecule across manufacturers and across countries. More significantly, the WHO efforts to increase transparency are likely to lead to less price differentiation and less access to innovative pharmaceuticals. An important reason why manufacturers are reluctant to charge lower prices in lower-income countries is that they fear that such low prices will undermine the prices they charge to higher-income consumers. International organisations should not facilitate transparency but should dissuade governments from making price comparisons and basing their prices on those of lower-income countries. Furthermore, they should endeavour to keep low-priced and free drugs in the hands of the low-income consumers for which they were intended.

The analysis of consumption level and preferences of freshshallots consumers in Medan

NASA Astrophysics Data System (ADS)

Yani, F.; Supriana, T.

2018-02-01

Comprehension about consumer preferences gives a very important contribution to the consumer’s decision making process, which eventually affects the level of consumer consumption. This study aims to analyze the level of consumer consumption, consumer preferences, as well as the combination of the most preferred attributes by the fresh shallots consumers in Medan. The number of respondents in this study is 100 households. Consumer preferences were identified using conjoint analysis. Attributes of the product that were observed are the size of the root, aroma, price, and dryness. The result of this study shows that the average level of fresh shallots consumption in Medan is 11.67 grams/capita/day, which is higher compared to the 7 grams/capita/day average of national consumption. Consumers assume that the dryness is a very high importance value in judging and deciding whether to buy the fresh shallots, followed by the attribute of aroma, price, and size of the root. Meanwhile, the combination of attributes that is most preferred are fresh shallots with bulb diameter of 2.5 cm, strong aroma, low price ranging below Rp 35000/kg and dryness level in medium category which means the products are in a rather moist/dry condition, and has a little skin waste.

Promotional Frames' Influence on Price Perceptions of Two Apparel Products.

ERIC Educational Resources Information Center

Stanforth, Nancy; Lennon, Sharron; Shin, Jung Im

2001-01-01

A study explored the differences in price perceptions of two apparel products when promotions were framed as either a price discount or a gift-with-purchase. The majority preferred the discount. Results illustrate the importance of promotional framing in forming consumer price perceptions. (Contains 30 references.) (Author/JOW)

75 FR 68616 - Notice of Certain Operating Cost Adjustment Factors for 2011

Federal Register 2010, 2011, 2012, 2013, 2014

2010-11-08

... Labor Statistics (BLS) Consumer Price Index, All Items Less Food, Energy and shelter (Series ID.... Fuel Oil: Energy Information Agency, 2008 to 2009 Retail Price of No. 2 Fuel Oil to Residential... . Natural Gas: Energy Information Agency, Natural Gas, Residential Energy Price, 2008-2009 annual prices in...

Mitigating Distributed Denial of Service Attacks with Dynamic Resource Pricing

DTIC Science & Technology

2001-10-01

should be nearly comparable to a system that does not use the payment mechanisms. There is prior work on how pricing can be used to influence consumer ... behavior , how to integrate pricing mechanisms with OS and network resource management mechanisms. In this paper, we instead focus on how pricing

How College Pricing Undermines Financial Aid

ERIC Educational Resources Information Center

Martin, Robert E.; Gillen, Andrew

2011-01-01

The primary purpose of government provided student financial aid is to increase college access by bringing the out-of-pocket price of attendance within reach of more students. The basic idea is quite straightforward. If a good or service costs $100 to buy and the government gives consumers a $50 subsidy, then consumers need only spend $50 of their…

Should Consumers Be Priced Out of Pollution-Permit Markets?

ERIC Educational Resources Information Center

Smith, Stefani C.; Yates, Andrew J.

2003-01-01

Presents a simple diagrammatic exposition of a pollution-permit market in which firms that generate pollution and consumers who are harmed by pollution are allowed to purchase permits at a single market price. Illustrates that the market equilibrium is efficient only if the endowment of permits is equal to the efficient level of pollution. (JEH)

42 CFR 124.707 - Waiver of recovery where facility is sold or transferred to a proprietary entity.

Code of Federal Regulations, 2010 CFR

2010-10-01

... OF HEALTH AND HUMAN SERVICES HEALTH RESOURCES DEVELOPMENT MEDICAL FACILITY CONSTRUCTION AND... deficits will be adjusted by the percent change in the National Consumer Price Index for Medical Care... adjusted by the percent change in the National Consumer Price Index for Medical Care between that year and...

42 CFR 124.707 - Waiver of recovery where facility is sold or transferred to a proprietary entity.

Code of Federal Regulations, 2011 CFR

2011-10-01

... OF HEALTH AND HUMAN SERVICES HEALTH RESOURCES DEVELOPMENT MEDICAL FACILITY CONSTRUCTION AND... deficits will be adjusted by the percent change in the National Consumer Price Index for Medical Care... adjusted by the percent change in the National Consumer Price Index for Medical Care between that year and...

75 FR 49411 - Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability-Vessels and...

Federal Register 2010, 2011, 2012, 2013, 2014

2010-08-13

... collection OMB Control Number 1625-0046 entitled ``Financial Responsibility for Water Pollution (Vessels... Consumer Price Index Adjustments of Oil Pollution Act of 1990 Limits of Liability--Vessels and Deepwater..., the Coast Guard amended the Oil Pollution Act of 1990 limits of liability for vessels and deepwater...

Reducing the Burden of Price.

ERIC Educational Resources Information Center

Hansen, Janet S.

1984-01-01

Setting prices for undergraduate education and assessing their effects on consumers and institutions is complicated by widespread price discounting. Student aid programs, credit, subsidized employment, and tax policy can reduce the actual costs paid by students and their families. (MSE)

The impact of condom prices on sales in social marketing programs.

PubMed

Harvey, P D

1994-01-01

The issue of pricing contraceptives in family planning programs is becoming more and more important. What is the relationship between consumer prices and demand, and how can we strike the correct balance between the two? This report examines the correlation between consumer prices for condoms, expressed as a percentage of per-capita gross national product, and per-capita sales of condoms in 24 social marketing programs. The correlation that emerges is strong and negative: Even when the data are controlled for age of program and other independent variables, there is a clear negative correlation between prices and contraceptive sales in these programs. The conclusion is clear that condom prices must be set very low--well below the equivalent of 1 percent of per-capita gross national product for a year's supply--in order to achieve satisfactory prevalence for condoms in either a family-planning or an AIDS-prevention context.

Analysis of consumers' preferences and behavior with regard to horse meat using a structured survey questionnaire.

PubMed

Oh, Woon Yong; Lee, Ji Woong; Lee, Chong Eon; Ko, Moon Seok; Jeong, Jae Hong

2009-12-01

In this study, a structured survey questionnaire was used to determine consumers' preferences and behavior with regard to horse meat at a horse meat restaurant located in Jeju, Korea, from October 1 to December 24, 2005. The questionnaire employed in this study consisted of 20 questions designed to characterize six general attributes: horse meat sensory property, physical appearance, health condition, origin, price, and other attributes. Of the 1370 questionnaires distributed, 1126 completed questionnaires were retained based on the completeness of the answers, representing an 82.2% response rate. Two issues were investigated that might facilitate the search for ways to improve horse meat production and marketing programs in Korea. The first step was to determine certain important factors, called principal components, which enabled the researchers to understand the needs of horse meat consumers via principal component analysis. The second step was to define consumer segments with regard to their preferences for horse meat, which was accomplished via cluster analysis. The results of the current study showed that health condition, price, origin, and leanness were the most critical physical attributes affecting the preferences of horse meat consumers. Four segments of consumers, with different demands for horse meat attributes, were identified: origin-sensitive consumers, price-sensitive consumers, quality and safety-sensitive consumers, and non-specific consumers. Significant differences existed among segments of consumers in terms of age, nature of work, frequency of consumption, and general level of acceptability of horse meat.

Milk marketing policy options for the dairy industry in New England.

PubMed

Doyon, M; Criner, G; Bragg, L A

2008-03-01

New England dairy farmers are under intense price pressure resulting from important growth in milk production from lower cost of production Southwest states as well as by retailers' market power. Agricultural officials and legislative bodies in New England and in other Northeast US states are aware of these pressures and have been reacting with emergency dairy farm aid, following a very low 2006 milk price, and with state legislations in an attempt to address perceived excess retailing margins for fluid milk. In this paper, we suggest that a sigmoid demand relationship exists for fluid milk. This demand relationship would explain fluid milk asymmetric price transmission, high-low pricing, and the creation of a large retailing margin (chain surplus) often observed for fluid milk. It is also argued that a sigmoid demand relationship offers an opportunity for state legislators to help Northeast dairy farmers capturing a larger share of the dollar of the consumers through various policy options. Therefore, 5 milk market channel regulatory mechanisms (status quo, price gouging, supply control, fair share policy, and chain surplus return) are discussed and compared. The supply control mechanism was found the most effective at redistributing the chain surplus, associated with the sigmoid demand relationship for fluid milk, to dairy farmers. However, this option is unlikely to be politically acceptable in the United States. Second-best options for increasing dairy farmers' share of the consumers' dollar are the fair price policy and the chain surplus return. The former mechanism would distribute the chain surplus between retailers, processors, and farmers, whereas the latter would distribute it between consumers, retailers, and farmers. Remaining mechanisms would either transfer the chain surplus to retailers (status quo) or to consumers (price gouging).

The Prescription Drug Pricing Moment: Using Public Health Analysis to Clarify the Fair Competition Debate on Prescription Drug Pricing and Consumer Welfare.

PubMed

Marciarille, Ann Marie

2017-03-01

Fair competition law and public health law talk past each other when discussing pharmaceutical pricing and distribution. The former cannot agree on the relevant definition of consumer welfare. The latter does not fully comprehend the highly complex but inherently collective nature of pharmaceutical drug acquisition in the United States. This essay proposes to inject public health discourse into this debate to enrich it, focus it, and render it more accessible to those who must live by its outcome.

The role of internal reference prices in consumers' willingness to pay judgments: Thaler's Beer Pricing Task revisited.

PubMed

Ranyard, R; Charlton, J P; Williamson, J

2001-02-01

Alternative reference prices, either displayed in the environment (external) or recalled from memory (internal) are known to influence consumer judgments and decisions. In one line of previous research, internal reference prices have been defined in terms of general price expectations. However, Thaler (Marketing Science 4 (1985) 199; Journal of Behavioral Decision Making 12 (1999) 183) defined them as fair prices expected from specific types of seller. Using a Beer Pricing Task, he found that seller context had a substantial effect on willingness to pay, and concluded that this was due to specific internal reference prices evoked by specific contexts. In a think aloud study using the same task (N = 48), we found only a marginal effect of seller context. In a second study using the Beer Pricing Task and seven analogous ones (N = 144), general internal reference prices were estimated by asking people what they normally paid for various commodities. Both general internal reference prices and seller context influenced willingness to pay, although the effect of the latter was again rather small. We conclude that general internal reference prices have a greater impact in these scenarios than specific ones, because of the lower cognitive load involved in their storage and retrieval.

Short run effects of a price on carbon dioxide emissions from U.S. electric generators.

PubMed

Newcomer, Adam; Blumsack, Seth A; Apt, Jay; Lave, Lester B; Morgan, M Granger

2008-05-01

The price of delivered electricity will rise if generators have to pay for carbon dioxide emissions through an implicit or explicit mechanism. There are two main effects that a substantial price on CO2 emissions would have in the short run (before the generation fleet changes significantly). First, consumers would react to increased price by buying less, described by their price elasticity of demand. Second, a price on CO2 emissions would change the order in which existing generators are economically dispatched, depending on their carbon dioxide emissions and marginal fuel prices. Both the price increase and dispatch changes depend on the mix of generation technologies and fuels in the region available for dispatch, although the consumer response to higher prices is the dominant effect. We estimate that the instantaneous imposition of a price of $35 per metric ton on CO2 emissions would lead to a 10% reduction in CO2 emissions in PJM and MISO at a price elasticity of -0.1. Reductions in ERCOT would be about one-third as large. Thus, a price on CO2 emissions that has been shown in earlier workto stimulate investment in new generation technology also provides significant CO2 reductions before new technology is deployed at large scale.

DOE Office of Scientific and Technical Information (OSTI.GOV)

Daly, G.G.; Mayor, T.H.

This paper develops a technique for extracting the expectations embedded in the current prices of energy-using durable goods and applies it to be used-car markets during the two energy crises of the 1970s. The resulting estimates indicate that consumers took the energy crises seriously and formed expectations about future gasoline prices that appear rational when compared with the historical gasoline price series, with the forecasts of specialists and experts, or with the actual postsample behavior of gasoline prices. The evidence therefore supports the view that consumers are able to make rather complex choices with a great deal of rationality andmore » casts doubt on the wisdom of policies based on assumptions to the contrary. 17 references, 2 figures.« less

An analysis of strategic price setting in retail gasoline markets

NASA Astrophysics Data System (ADS)

Jaureguiberry, Florencia

This dissertation studies price-setting behavior in the retail gasoline industry. The main questions addressed are: How important is a retail station's brand and proximity to competitors when retail stations set price? How do retailers adjust their pricing when they cater to consumers who are less aware of competing options or have less discretion over where they purchase gasoline? These questions are explored in two separate analyses using a unique datasets containing retail pricing behavior of stations in California and in 24 different metropolitan areas. The evidence suggests that brand and location generate local market power for gasoline stations. After controlling for market and station characteristics, the analysis finds a spread of 11 cents per gallon between the highest and the lowest priced retail gasoline brands. The analysis also indicates that when the nearest competitor is located over 2 miles away as opposed to next door, consumers will pay an additional 1 cent per gallon of gasoline. In order to quantify the significance of local market power, data for stations located near major airport rental car locations are utilized. The presumption here is that rental car users are less aware or less sensitive to fueling options near the rental car return location and are to some extent "captured consumers". Retailers located near rental car locations have incentives to adjust their pricing strategies to exploit this. The analysis of pricing near rental car locations indicates that retailers charge prices that are 4 cent per gallon higher than other stations in the same metropolitan area. This analysis is of interest to regulators who are concerned with issues of consolidation, market power, and pricing in the retail gasoline industry. This dissertation concludes with a discussion of the policy implications of the empirical analysis.

Association of Reference Payment for Colonoscopy With Consumer Choices, Insurer Spending, and Procedural Complications.

PubMed

Robinson, James C; Brown, Timothy T; Whaley, Christopher; Finlayson, Emily

2015-11-01

Regulatory limits on consumer cost sharing permit wide variation in the prices charged for screening and diagnostic tests such as colonoscopy. Employers are experimenting with reference payment initiatives that offer full insurance coverage at low-priced facilities but require substantial cost sharing if patients select high-priced alternatives. To ascertain the effect of reference payment on facility choice, insurer spending, consumer cost sharing, and procedural complications for colonoscopy. The California Public Employees' Retirement System (CalPERS) implemented reference payment in January 2012. We obtained data on 21 644 CalPERS enrollees who underwent colonoscopy in the 3 years prior to implementation and on 13 551 patients in the 2 years after implementation. Control group data were obtained on 258 616 Anthem Blue Cross enrollees who underwent colonoscopy and who were not subject to reference payment initiatives during this 5-year period. Consumer choice of facility, price paid per procedure, total insurer spending, consumer cost sharing, and procedural complications. Choices, prices, and complications were compared for CalPERS and Anthem patients before and after implementation of reference payments, using difference-in-difference multivariable regressions to adjust for patient demographic characteristics and comorbidities, procedure indications, and geographic location. Utilization of low-priced facilities for CalPERS members increased from 68.6% in 2009 to 90.5% in 2013. After adjusting for patient demographic characteristics, comorbidities, and other factors, the implementation of reference payment increased use of low-priced facilities by 17.6 percentage points (95% CI, 11.8 to 23.4; P < .001). The mean price paid for colonoscopy for the CalPERS population increased from $1587 (95% CI, $1555-$1618) in 2009 to $1716 (95% CI, $1678-$1753) in 2011 and then decreased to $1508 (95% CI, $1469-$1548) in 2013 for patients subject to reference payment. After adjustment for other relevant factors, reference payment was responsible for a 21.0% (95% CI, -26.0% to -15.6%, P < .001) reduction in the price. Reference payment was associated with a small but statistically insignificant decline in procedural complications, from 2.1% in 2009 to 2.0% in 2013 (P = .47). In the first 2 years after implementation, CalPERS saved $7.0 million (28%) on spending for the procedure. Implementation of reference payment for colonoscopy was associated with reduced spending and no change in complications.

Pricing Strategies to Encourage Availability, Purchase, and Consumption of Healthy Foods and Beverages: A Systematic Review.

PubMed

Gittelsohn, Joel; Trude, Angela Cristina Bizzotto; Kim, Hyunju

2017-11-02

Food pricing policies to promote healthy diets, such as taxes, price manipulations, and food subsidies, have been tested in different settings. However, little consensus exists about the effect of these policies on the availability of healthy and unhealthy foods, on what foods consumers buy, or on the impact of food purchases on consumer health outcomes. We conducted a systematic review of studies of the effect of food-pricing interventions on retail sales and on consumer purchasing and consumption of healthy foods and beverages. We used MEDLINE, Embase, PsycINFO, Web of Science, ClinicalTrials.gov, and the Cochrane Library to conduct a systematic search for peer-reviewed articles related to studies of food pricing policies. We selected articles that were published in English from January 2000 through December 2016 on the following types of studies: 1) real-world experimental studies (randomized controlled trials, quasi-experimental studies, and natural experiments); 2) population studies of people or retail stores in middle-income and high-income countries; 3) pricing interventions alone or in combination with other strategies (price promotions, coupons, taxes, or cash-back rebates), excluding studies of vending-machine or online sales; and 4) outcomes studies at the retail (stocking, sales) and consumer (purchasing, consumption) levels. We selected 65 articles representing 30 studies for review. Sixteen pricing intervention studies that sought to improve access to healthy food and beverage options reported increased stocking and sales of promoted food items. Most studies (n = 23) reported improvement in the purchasing and consumption of healthy foods or beverages or decreased purchasing and consumption of unhealthy foods or beverages. Most studies assessed promotions of fresh fruits and vegetables (n = 20); however, these foods may be hard to source, have high perishability, and raise concerns about safety and handling. Few of the pricing studies we reviewed discouraged purchasing and consumption of unhealthy foods (n = 6). Many studies we reviewed had limitations, including lack of formative research, process evaluation, or psychosocial and health assessments of the intervention's impact; short intervention duration; or no assessment of food substitutions or the effects of pricing interventions on food purchasing and diets. Pricing interventions generally increased stocking, sales, purchasing, and consumption of promoted foods and beverages. Additional studies are needed to differentiate the potential impact of selected pricing strategies and policies over others.

Pricing Strategies to Encourage Availability, Purchase, and Consumption of Healthy Foods and Beverages: A Systematic Review

PubMed Central

Trude, Angela Cristina Bizzotto; Kim, Hyunju

2017-01-01

Introduction Food pricing policies to promote healthy diets, such as taxes, price manipulations, and food subsidies, have been tested in different settings. However, little consensus exists about the effect of these policies on the availability of healthy and unhealthy foods, on what foods consumers buy, or on the impact of food purchases on consumer health outcomes. We conducted a systematic review of studies of the effect of food-pricing interventions on retail sales and on consumer purchasing and consumption of healthy foods and beverages. Methods We used MEDLINE, Embase, PsycINFO, Web of Science, ClinicalTrials.gov, and the Cochrane Library to conduct a systematic search for peer-reviewed articles related to studies of food pricing policies. We selected articles that were published in English from January 2000 through December 2016 on the following types of studies: 1) real-world experimental studies (randomized controlled trials, quasi-experimental studies, and natural experiments); 2) population studies of people or retail stores in middle-income and high-income countries; 3) pricing interventions alone or in combination with other strategies (price promotions, coupons, taxes, or cash-back rebates), excluding studies of vending-machine or online sales; and 4) outcomes studies at the retail (stocking, sales) and consumer (purchasing, consumption) levels. We selected 65 articles representing 30 studies for review. Results Sixteen pricing intervention studies that sought to improve access to healthy food and beverage options reported increased stocking and sales of promoted food items. Most studies (n = 23) reported improvement in the purchasing and consumption of healthy foods or beverages or decreased purchasing and consumption of unhealthy foods or beverages. Most studies assessed promotions of fresh fruits and vegetables (n = 20); however, these foods may be hard to source, have high perishability, and raise concerns about safety and handling. Few of the pricing studies we reviewed discouraged purchasing and consumption of unhealthy foods (n = 6). Many studies we reviewed had limitations, including lack of formative research, process evaluation, or psychosocial and health assessments of the intervention’s impact; short intervention duration; or no assessment of food substitutions or the effects of pricing interventions on food purchasing and diets. Conclusion Pricing interventions generally increased stocking, sales, purchasing, and consumption of promoted foods and beverages. Additional studies are needed to differentiate the potential impact of selected pricing strategies and policies over others. PMID:29101767

Ecolabeled paper towels: consumer valuation and expenditure analysis.

PubMed

Srinivasan, Arun K; Blomquist, Glenn C

2009-01-01

Ecolabeled paper towels are manufactured using post-consumer recycled material and sold in markets using a recycle logo. Environmentally conscious consumers purchase these paper towels and thereby contribute to improving environmental quality. In this paper, we estimate the implicit value placed by consumers on ecolabeled paper towels using a hedonic price function and conduct an expenditure analysis using Heckman's selection model. Using the data set from the Internet-based grocery stores called as Peapod we find that some consumers recognize ecolabels on paper towels and place a substantial, positive price premium on them. The expenditure analysis indicates that for the preferred functional form, the demand for ecolabeled paper towels is inelastic for environmentally conscious consumers. The simulated results from the selection model indicate that a small subsidy for ecolabeled paper towels will not substantially change consumers' purchase decisions.

Full employment and competition in the Aspen economic model: implications for modeling acts of terrorism.

DOE Office of Scientific and Technical Information (OSTI.GOV)

Sprigg, James A.; Ehlen, Mark Andrew

2004-11-01

Acts of terrorism could have a range of broad impacts on an economy, including changes in consumer (or demand) confidence and the ability of productive sectors to respond to changes. As a first step toward a model of terrorism-based impacts, we develop here a model of production and employment that characterizes dynamics in ways useful toward understanding how terrorism-based shocks could propagate through the economy; subsequent models will introduce the role of savings and investment into the economy. We use Aspen, a powerful economic modeling tool developed at Sandia, to demonstrate for validation purposes that a single-firm economy converges tomore » the known monopoly equilibrium price, output, and employment levels, while multiple-firm economies converge toward the competitive equilibria typified by lower prices and higher output and employment. However, we find that competition also leads to churn by consumers seeking lower prices, making it difficult for firms to optimize with respect to wages, prices, and employment levels. Thus, competitive firms generate market ''noise'' in the steady state as they search for prices and employment levels that will maximize profits. In the context of this model, not only could terrorism depress overall consumer confidence and economic activity but terrorist acts could also cause normal short-run dynamics to be misinterpreted by consumers as a faltering economy.« less

U.S. pharmaceutical policy in a global marketplace

PubMed Central

Lakdawalla, Darius; Goldman, Dana P.; Michaud, Pierre-Carl; Sood, Neeraj; Lempert, Robert; Cong, Ze; de Vries, Han; Gutierrez, Italo

2013-01-01

Markets for innovative goods involve significant spillovers in a global economy. When US consumers pay higher prices for drugs, this stimulates innovation that benefits consumers all over the world. Conversely, when large European markets restrict prices and profits, foreign consumers bear some of the long-run cost in the form of less innovation. The result is a free-riding problem at a global level. These incentives are particularly strong for smaller markets, whose policies have relatively little impact on global innovation, but can have relatively large impacts on national pharmaceutical budgets. The result is a system in which the largest countries bear disproportionate burdens for stimulating innovation. Using a microsimulation approach, we estimate the impact of these incentive effects. The model’s baseline estimates demonstrates that the US adoption of European-style price controls would harm consumers in the US and Europe; over a 50-year period, it would cost $8 trillion in the US, and $5 trillion in Europe. Similarly, repealing European price controls would add $10 trillion to the wealth of US society, and $6 trillion to wealth in Europe. Even under the most conservative assumptions, adopting price controls generates at best a small benefit, but risks a large cost. On the other hand, reducing pharmaceutical copayments would increase wealth in both societies, a result which is robust to a wide variety of parameter values. PMID:19088101

Oil shocks in New Keynesian models: Positive and normative implications

NASA Astrophysics Data System (ADS)

Chang, Jian

Chapter 1 investigates optimal monetary policy response towards oil shocks in a New Keynesian model. We find that optimal policy, in general, becomes contractionary in response to an adverse oil shock. However, the optimal policy rule and the inflation-output trade-off depend on the specific structure of the model. The benchmark economy consists of a flexible-price energy sector and a sticky-price manufacturing sector where energy is used as an intermediate input. We show that optimal policy is to stabilize the sticky (core) price level. We then show that after incorporating a less oil-dependent sticky-price service sector, the model exhibits a trade-off in stabilizing prices and output gaps in the different sticky-price sectors. It predicts that central bank should not try to stabilize the core price level, and the economy will experience higher inflation and rising output gaps, even if central banks respond optimally. Chapter 2 addresses the observed volatility and persistence of real exchange rates and the terms of trade. It contributes to the literature with a quantitative study on the U.S. and Canada. A two-country New Keynesian model consisting of traded, non-traded, and oil production sectors is proposed to examine the time series properties of the real exchange rate, the terms of trade and the real oil price. We find that after incorporating several realistic features (namely oil price shocks, sector specific labor, non-traded goods, asymmetric pricing decisions of exporters and asymmetric consumer preferences over tradables), the benchmark model broadly matches the volatilities of the relative prices and some business cycle correlations. The model matches the data more closely after adding real demand shocks, suggesting their importance in explaining the relative price movements between the US and Canada. Chapter 3 explores several sources and transmission channels of international relative price movements. In particular, we elaborate on the role of imperfect labor mobility, pricing decisions of exporting firms, oil price shocks and asymmetric consumer preferences over tradables. Our results suggest that: Incorporating both producer currency pricing and local currency pricing assumptions produces more reasonable relative price movements. A model with imperfect labor mobility generates larger relative price volatility. Oil price shocks only contribute to terms of trade variability when oil is modeled as part of the traded basket. And asymmetric consumer preferences contribute to the volatility of the real exchange rate.

The Minimum Wage, Restaurant Prices, and Labor Market Structure

ERIC Educational Resources Information Center

Aaronson, Daniel; French, Eric; MacDonald, James

2008-01-01

Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…

Unit Pricing and Alternatives: Developing an Individualized Shopping Strategy.

ERIC Educational Resources Information Center

Cude, Brenda; Walker, Rosemary

1985-01-01

This article offers a new perspective on the teaching of unit pricing in consumer economics classes by identifying ways to teach the costs as well as the benefits of unit pricing and realistic guidelines for suggesting situations in which it is most appropriate. Alternatives to unit pricing will also be explored. (CT)

Who Uses a Price Transparency Tool? Implications for Increasing Consumer Engagement.

PubMed

Gourevitch, Rebecca A; Desai, Sunita; Hicks, Andrew L; Hatfield, Laura A; Chernew, Michael E; Mehrotra, Ateev

2017-01-01

Despite the recent proliferation of price transparency tools, consumer use and awareness of these tools is low. Better strategies to increase the use of price transparency tools are needed. To inform such efforts, we studied who is most likely to use a price transparency tool. We conducted a cross-sectional study of use of the Truven Treatment Cost Calculator among employees at 2 large companies for the 12 months following the introduction of the tool in 2011-2012. We examined frequency of sign-ons and used multivariate logistic regression to identify which demographic and health care factors were associated with greater use of the tool. Among the 70 408 families offered the tool, 7885 (11%) used it at least once and 854 (1%) used it at least 3 times in the study period. Greater use of the tool was associated with younger age, living in a higher income community, and having a higher deductible. Families with moderate annual out-of-pocket medical spending ($1000-$2779) were also more likely to use the tool. Consistent with prior work, we find use of this price transparency tool is low and not sustained over time. Employers and payers need to pursue strategies to increase interest in and engagement with health care price information, particularly among consumers with higher medical spending.

Effectively managing consumer fuel price driven transit demand.

DOT National Transportation Integrated Search

2013-05-01

This study presents a literature review of transit demand elasticities with respect to gas prices, describes features of a transit service area population that may be more sensitive to fuel prices, identifies where stress points in the family of tran...

Synthesizing Econometric Evidence: The Case of Demand Elasticity Estimates.

PubMed

DeCicca, Philip; Kenkel, Don

2015-06-01

Econometric estimates of the responsiveness of health-related consumer demand to higher prices are often key ingredients for risk policy analysis. We review the potential advantages and challenges of synthesizing econometric evidence on the price-responsiveness of consumer demand. We draw on examples of research on consumer demand for health-related goods, especially cigarettes. We argue that the overarching goal of research synthesis in this context is to provide policy-relevant evidence for broad-brush conclusions. We propose three main criteria to select among research synthesis methods. We discuss how in principle and in current practice synthesis of research on the price-elasticity of smoking meets our proposed criteria. Our analysis of current practice also contributes to academic research on the specific policy question of the effectiveness of higher cigarette prices to reduce smoking. Although we point out challenges and limitations, we believe more work on research synthesis in this area will be productive and important. © 2015 Society for Risk Analysis.

Strategic exploration of battery waste management: A game-theoretic approach.

PubMed

Kaushal, Rajendra Kumar; Nema, Arvind K; Chaudhary, Jyoti

2015-07-01

Electronic waste or e-waste is the fastest growing stream of solid waste today. It contains both toxic substances as well as valuable resources. The present study uses a non-cooperative game-theoretic approach for efficient management of e-waste, particularly batteries that contribute a major portion of any e-waste stream and further analyses the economic consequences of recycling of these obsolete, discarded batteries. Results suggest that the recycler would prefer to collect the obsolete batteries directly from the consumer rather than from the manufacturer, only if, the incentive return to the consumer is less than 33.92% of the price of the battery, the recycling fee is less than 6.46% of the price of the battery, and the price of the recycled material is more than 31.08% of the price of the battery. The manufacturer's preferred choice of charging a green tax from the consumer can be fruitful for the battery recycling chain. © The Author(s) 2015.

Price-transparency and cost accounting: challenges for health care organizations in the consumer-driven era.

PubMed

Hilsenrath, Peter; Eakin, Cynthia; Fischer, Katrina

2015-01-01

Health care reform is directed toward improving access and quality while containing costs. An essential part of this is improvement of pricing models to more accurately reflect the costs of providing care. Transparent prices that reflect costs are necessary to signal information to consumers and producers. This information is central in a consumer-driven marketplace. The rapid increase in high deductible insurance and other forms of cost sharing incentivizes the search for price information. The organizational ability to measure costs across a cycle of care is an integral component of creating value, and will play a greater role as reimbursements transition to episode-based care, value-based purchasing, and accountable care organization models. This article discusses use of activity-based costing (ABC) to better measure the cost of health care. It describes examples of ABC in health care organizations and discusses impediments to adoption in the United States including cultural and institutional barriers. © The Author(s) 2015.

Retrading, production, and asset market performance

PubMed Central

Gjerstad, Steven D.; Porter, David; Smith, Vernon L.; Winn, Abel

2015-01-01

Prior studies have shown that traders quickly converge to the price–quantity equilibrium in markets for goods that are immediately consumed, but they produce speculative price bubbles in resalable asset markets. We present a stock-flow model of durable assets in which the existing stock of assets is subject to depreciation and producers may produce additional units of the asset. In our laboratory experiments inexperienced consumers who can resell their units disregard the consumption value of the assets and compete vigorously with producers, depressing prices and production. Consumers who have first participated in experiments without resale learn to heed their consumption values and, when they are given the option to resell, trade at equilibrium prices. Reproducibility is therefore the most natural and most effective treatment for suppression of bubbles in asset market experiments. PMID:26553991

A Linear City Model with Asymmetric Consumer Distribution

PubMed Central

Azar, Ofer H.

2015-01-01

The article analyzes a linear-city model where the consumer distribution can be asymmetric, which is important because in real markets this distribution is often asymmetric. The model yields equilibrium price differences, even though the firms’ costs are equal and their locations are symmetric (at the two endpoints of the city). The equilibrium price difference is proportional to the transportation cost parameter and does not depend on the good's cost. The firms' markups are also proportional to the transportation cost. The two firms’ prices will be equal in equilibrium if and only if half of the consumers are located to the left of the city’s midpoint, even if other characteristics of the consumer distribution are highly asymmetric. An extension analyzes what happens when the firms have different costs and how the two sources of asymmetry – the consumer distribution and the cost per unit – interact together. The model can be useful as a tool for further development by other researchers interested in applying this simple yet flexible framework for the analysis of various topics. PMID:26034984

What Drives U.S. Gasoline Prices?

EIA Publications

2014-01-01

This analysis provides context for considering the impact of rising domestic light crude oil production on the price that U.S. consumers pay for gasoline, and provides a framework to consider how changes to existing U.S. crude oil export restrictions might affect gasoline prices.

Can Standards Increase Consumer Welfare? Evidence from a Change in Clothes Washer

DOE Office of Scientific and Technical Information (OSTI.GOV)

Chen, Xiaomei; Roberts, Michael J.; Yang, Hung-Chia

We study prices and sales of individual clothes washer models before, during and after a 2007 standard that banned manufacture (but not sale) of low-e ciency units and increased the threshold for Energy Star certi cation. While quantities sold of washer models banned from manufacture decreased sharply, prices for banned models increased only modestly. At the same time, sales of higher-e ciency units rose markedly while prices for high-e ciency units declined. On average, washer e ciency increased but prices changed little. A simple welfare analysis indicates that consumer welfare loss from banned washers was far outweighed by gains frommore » lower-priced high-e ciency units. While a full cost-bene t analysis is not feasible with the available data, we estimate a lower-bound gain in consumer surplus equal to 6-16 percent of total sales. This result may accord with earlier theoretical research that shows quality standards can increase welfare in monopolistically competitive industries that possess increasing returns to scale (Ronnen, 1991). Thus, if energy e ciency is a close proxy for quality, energy e ciency standards may increase competition, market e ciency and welfare.« less

16 CFR 233.3 - Advertising retail prices which have been established or suggested by manufacturers (or other...

Code of Federal Regulations, 2010 CFR

2010-01-01

... distributors). (a) Many members of the purchasing public believe that a manufacturer's list price, or suggested... price is advertised, many people will believe that they are being offered a genuine bargain. To the... consumer. (b) There are many methods by which manufacturers' suggested retail or list prices are advertised...

Some Evidence on the Importance of Sticky Prices.

ERIC Educational Resources Information Center

Bils, Mark; Klenow, Peter J.

2004-01-01

We examine the frequency of price changes for 350 categories of goods and services covering about 70 percent of consumer spending, on the basis of unpublished data from the Bureau of Labor Statistics for 1995-97. In comparison with previous studies, we find much more frequent price changes, with haft of prices lasting less than 4.3 months. Even…

Second-Degree Price Discrimination: A Graphical and Mathematical Approach

ERIC Educational Resources Information Center

Gotlibovski, Chemi; Kahana, Nava

2009-01-01

The authors use a relatively simple diagram accompanied by mathematical analysis to compare two pricing strategies: price-quantity packages and a two-part tariff. This is done both from the monopolist's point of view and from the welfare point of view. The authors show that in the case of two consumer types, the price-quantity packages strategy…

Consumer Perception of Retail Pork Bacon Attributes Using Adaptive Choice-based Conjoint Analysis and Maximum Differential Scaling.

PubMed

McLean, K G; Hanson, D J; Jervis, S M; Drake, M A

2017-11-01

Bacon is one of the most recognizable consumer pork products and is differentiated by appearance, flavor, thickness, and several possible product claims. The objective of this study was to explore the attributes of retail bacon that influence consumers to purchase and consume bacon. An Adaptive Choice-Based Conjoint (ACBC) survey was designed for attributes of raw American-style bacon. An ACBC survey (N = 1410 consumers) and Kano questioning were applied to determine the key attributes that influenced consumer purchase. Attributes included package size, brand, thickness, label claims, flavor, price, and images of the bacon package displaying fat:lean ratio. Maximum Difference Scaling (MaxDiff) was used to rank appeal of 20 different bacon images with variable fat:lean ration and slice shape. The most important attribute for bacon purchase was price followed by fat:lean appearance and then flavor. Three consumer clusters were identified with distinct preferences. For 2 clusters, price was not the primary attribute. Understanding preferences of distinct consumer clusters will enable manufacturers to target consumers and make more appealing bacon. Adaptive Choice-Based Conjoint (ACBC) is a research technique that allows consumers to react to assembled products and identify product attributes that they prefer. Kano questions allow researchers to look at the individual aspects of a product and understand consumer sentiment and expectations towards those product qualities while Maximum Difference scaling allows consumers to directly rank single attributes of a product relative to one another. A combination of these 3 approaches can provide key understandings on consumer perception of retail bacon allowing companies to optimize and maximize their development and advertising resources. © 2017 Institute of Food Technologists®.

Cognitive antecedents of consumers' willingness to purchase fish rich in polyunsaturated fatty acids (PUFA).

PubMed

Foxall, G; Leek, S; Maddock, S

1998-12-01

A sample of UK consumers (N = 311) was interviewed in order to identify the attitudinal, cognitive and involvement characteristics of probable early adopters of polyunsaturated fatty acid (PUFA) fed fish. Attitude to fish significantly influenced PUFA fish, premium price PUFA fish, PUFA salmon, PUFA eel and PUFA sturgeon purchase. Involvement in healthy eating influenced PUFA fish, premium price PUFA fish and PUFA salmon purchase. Cognitive style did not influence PUFA fish and premium price PUFA fish purchase; nor, contrary to earlier research, did cognitive style and involvement interact to influence intended PUFA fish purchases.

An exploratory analysis of cigarette price premium, market share and consumer loyalty in relation to continued consumption versus cessation in a national US panel

PubMed Central

Lewis, Michael; Wang, Yanwen; Cahn, Zachary; Berg, Carla J

2015-01-01

Introduction Brand equity and consumer loyalty play a role in continued purchasing behaviour; however, this research has largely focused on non-addictive products without counter-marketing tactics. We examined the impact of brand equity (price premium, market share) and consumer loyalty (switching rates) on smoking cessation (discontinued cigarette purchases for 1 year) among smokers in a consumer panel. Methods In Spring 2015, we analysed 1077 cigarette-purchasing households in the Nielsen Homescan Panel. We analysed cessation in relation to brand equity, consumer loyalty, other purchasing behaviours (nicotine intake, frequency), sociodemographics and tobacco control activities (per state-specific data) over a 6-year period (2004–2009) using Cox proportional hazard modelling. Results The sample was 13.28% African-American; the average income was $52 334 (SD=31 445). The average price premium and market share of smokers’ dominant brands were $1.31 (SD=0.49) and 15.41% (SD=19.15), respectively. The mean brand loyalty level was 0.90 (SD=0.17), indicating high loyalty. In our final model, a higher price premium and market share were associated with lower quit rates (p=0.039); however, an interaction effect suggested that greater market share was not associated with lower cessation rates for African-American smokers (p=0.006). Consumer loyalty was not associated with cessation. Other predictors of lower quit rates included a higher nicotine intake (p=0.006) and baseline purchase frequency (p<0.001). Tobacco control factors were not significantly associated. Conclusions Smokers of high-equity cigarette brands are less likely to quit, perhaps due to strong brand–consumer relationships. Thus, continued efforts should aim to regulate tobacco marketing efforts in order to disrupt these relationships to promote cessation. PMID:26534732

Can increases in the cigarette tax rate be linked to cigarette retail prices? Solving mysteries related to the cigarette pricing mechanism in China.

PubMed

Gao, Song; Zheng, Rong; Hu, Teh-wei

2012-11-01

To explain China's cigarette pricing mechanism and the role of the Chinese State Tobacco Monopoly Administration (STMA) on cigarette pricing and taxation. Published government tobacco tax documentation and statistics published by the Chinese STMA are used to analyse the interrelations among industry profits, taxes and retail price of cigarettes in China. The 2009 excise tax increase on cigarettes in China has not translated into higher retail prices because the Chinese STMA used its policy authority to ensure that retail cigarette prices did not change. The government tax increase is being collected at both the producer and wholesale levels. As a result, the 2009 excise tax increase in China has resulted in higher tax revenue for the government and lower profits for the tobacco industry, with no increase in the retail price of cigarettes for consumers. Numerous studies have found that taxation is one of the most effective policy instruments for tobacco control. However, these findings come from countries that have market economies where market forces determine prices and influence how cigarette taxes are passed to the consumers in retail prices. China's tobacco industry is not a market economy; therefore, non-market forces and the current Chinese tobacco monopoly system determine cigarette prices. The result is that tax increases do not necessarily get passed on to the retail price.

Do High Consumers of Sugar-Sweetened Beverages Respond Differently to Price Changes? A Finite Mixture IV-Tobit Approach.

PubMed

Etilé, Fabrice; Sharma, Anurag

2015-09-01

This study compares the impact of sugar-sweetened beverages (SSBs) tax between moderate and high consumers in Australia. The key methodological contribution is that price response heterogeneity is identified while controlling for censoring of consumption at zero and endogeneity of expenditure by using a finite mixture instrumental variable Tobit model. The SSB price elasticity estimates show a decreasing trend across increasing consumption quantiles, from -2.3 at the median to -0.2 at the 95th quantile. Although high consumers of SSBs have a less elastic demand for SSBs, their very high consumption levels imply that a tax would achieve higher reduction in consumption and higher health gains. Our results also suggest that an SSB tax would represent a small fiscal burden for consumers whatever their pre-policy level of consumption, and that an excise tax should be preferred to an ad valorem tax. Copyright © 2015 John Wiley & Sons, Ltd.

Price elasticity of tobacco products among economic classes in India, 2011-2012.

PubMed

Selvaraj, Sakthivel; Srivastava, Swati; Karan, Anup

2015-12-09

The objectives of this study are to: (1) examine the pattern of price elasticity of three major tobacco products (bidi, cigarette and leaf tobacco) by economic groups of population based on household monthly per capita consumption expenditure in India and (2) assess the effect of tax increases on tobacco consumption and revenue across expenditure groups. Data from the 2011-2012 nationally representative Consumer Expenditure Survey from 101,662 Indian households were used. Households which consumed any tobacco or alcohol product were retained in final models. The study draws theoretical frameworks from a model using the augmented utility function of consumer behaviour, with a two-stage two-equation system of unit values and budget shares. Primary outcome measures were price elasticity of demand for different tobacco products for three hierarchical economic groups of population and change in tax revenue due to changes in tax structure. We finally estimated price elasticity of demand for bidi, cigarette and leaf tobacco and effects of changes in their tax rates on demand for these tobacco products and tax revenue. Own price elasticities for bidi were highest in the poorest group (-0.4328) and lowest in the richest group (-0.0815). Cigarette own price elasticities were -0.832 in the poorest group and -0.2645 in the richest group. Leaf tobacco elasticities were highest in the poorest (-0.557) and middle (-0.4537) groups. Poorer group elasticities were the highest, indicating that poorer consumers are more price responsive. Elasticity estimates show positive distributional effects of uniform bidi and cigarette taxation on the poorest consumers, as their consumption is affected the most due to increases in taxation. Leaf tobacco also displayed moderate elasticities in poor and middle tertiles, suggesting that tax increases may result in a trade-off between consumption decline and revenue generation. A broad spectrum rise in tax rates across all products is critical for tobacco control. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/

Do Consumers Substitute Opium for Hashish? An Economic Analysis of Simultaneous Cannabinoid and Opiate Consumption in a Legal Regime

PubMed Central

Chandra, Madhur

2015-01-01

Aim To analyze interrelationships in the consumption of opiates and cannabinoids in a legal regime and, specifically, whether consumers of opiates and cannabinoids treat them as substitutes for each other. Method Econometric dynamic panel data models for opium consumption are estimated using the generalized method of moments (GMM). A unique dataset containing information about opiate (opium) consumption from the Punjab province of British India for the years 1907–1918 is analyzed (n=272) as a function of its own price, the prices of two forms of cannabis (the leaf (bhang), and the resin (charas, or hashish)), and wage income. Cross-price elasticities are examined to reveal substitution or complementarity between opium and cannabis. Results Opium is a substitute for charas (or hashish), with a cross price elasticity (β3) of 0.14 (p < 0.05), but not for bhang (cannabis leaves; cross price elasticity = 0.00, p > 0.10). Opium consumption (β1 = 0.47 to 0.49, p < 0.01) shows properties of habit persistence consistent with addiction. The consumption of opium is slightly responsive (inelastic) to changes in its own price (β2 = −0.34 to −0.35, p < 0.05 to 0.01) and consumer wages (β4 = 0.15, p < 0.05). Conclusion Opium and hashish, a form of cannabis, are substitutes. In addition, opium consumption displays properties of habit persistence and slight price and wage income responsiveness (inelasticity) consistent with an addictive substance. PMID:26455552

Can harms associated with high-intensity drinking be reduced by increasing the price of alcohol?

PubMed

Byrnes, Joshua; Shakeshaft, Anthony; Petrie, Dennis; Doran, Christopher

2013-01-01

Increasing the price of alcohol is consistently shown to reduce the average level of consumption. However, the evidence for the effect of increasing the price on high-intensity drinking is both limited and equivocal. The aim of this analysis is to estimate the effect of changes in price on patterns of consumption. Self-reported patterns of alcohol consumption and demographic data were obtained from the Australian National Drug Strategy Household Surveys, conducted in 2001, 2004 and 2007. A pooled three-stage least-squares estimator was used to simultaneously model the impact of the price on the frequency (measured in days) of consuming no, low, moderate and high quantities of alcohol. A 1% increase in the price of alcohol was associated with a statistically significant increase of 6.41 days per year on which no alcohol is consumed (P ≤ 0.049), and a statistically significant decrease of 7.30 days on which 1-4 standard drinks are consumed (P ≤ 0.021). There was no statistically significant change for high or moderate-intensity drinking. For Australia, and countries with a similar pattern of predominant high-intensity drinking, taxation policies that increase the price of alcohol and are very efficient at decreasing harms associated with reduced average consumption may be relatively inefficient at decreasing alcohol harms associated with high-intensity drinking. © 2012 Australasian Professional Society on Alcohol and other Drugs.

7 CFR 1220.115 - Net market price.

Code of Federal Regulations, 2010 CFR

2010-01-01

... AGREEMENTS AND ORDERS; MISCELLANEOUS COMMODITIES), DEPARTMENT OF AGRICULTURE SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION Soybean Promotion and Research Order Definitions § 1220.115 Net market price. The term... 7 Agriculture 10 2010-01-01 2010-01-01 false Net market price. 1220.115 Section 1220.115...

Partnerships and Pricing Services. Research Notes.

ERIC Educational Resources Information Center

Jordan, Debra J.

1998-01-01

Research shows that partnerships have become crucial to long-term organizational success. Benefits and constraints of partnerships are outlined. A second research article on pricing shows that establishing and advertising an anchor price helps consumers understand increases and discounts. Implications for camp management are discussed. (SAS)

Optimal dynamic pricing for deteriorating items with reference-price effects

NASA Astrophysics Data System (ADS)

Xue, Musen; Tang, Wansheng; Zhang, Jianxiong

2016-07-01

In this paper, a dynamic pricing problem for deteriorating items with the consumers' reference-price effect is studied. An optimal control model is established to maximise the total profit, where the demand not only depends on the current price, but also is sensitive to the historical price. The continuous-time dynamic optimal pricing strategy with reference-price effect is obtained through solving the optimal control model on the basis of Pontryagin's maximum principle. In addition, numerical simulations and sensitivity analysis are carried out. Finally, some managerial suggestions that firm may adopt to formulate its pricing policy are proposed.

Paying for Express Checkout: Competition and Price Discrimination in Multi-Server Queuing Systems

PubMed Central

Deck, Cary; Kimbrough, Erik O.; Mongrain, Steeve

2014-01-01

We model competition between two firms selling identical goods to customers who arrive in the market stochastically. Shoppers choose where to purchase based upon both price and the time cost associated with waiting for service. One seller provides two separate queues, each with its own server, while the other seller has a single queue and server. We explore the market impact of the multi-server seller engaging in waiting cost-based-price discrimination by charging a premium for express checkout. Specifically, we analyze this situation computationally and through the use of controlled laboratory experiments. We find that this form of price discrimination is harmful to sellers and beneficial to consumers. When the two-queue seller offers express checkout for impatient customers, the single queue seller focuses on the patient shoppers thereby driving down prices and profits while increasing consumer surplus. PMID:24667809

Paying for express checkout: competition and price discrimination in multi-server queuing systems.

PubMed

Deck, Cary; Kimbrough, Erik O; Mongrain, Steeve

2014-01-01

We model competition between two firms selling identical goods to customers who arrive in the market stochastically. Shoppers choose where to purchase based upon both price and the time cost associated with waiting for service. One seller provides two separate queues, each with its own server, while the other seller has a single queue and server. We explore the market impact of the multi-server seller engaging in waiting cost-based-price discrimination by charging a premium for express checkout. Specifically, we analyze this situation computationally and through the use of controlled laboratory experiments. We find that this form of price discrimination is harmful to sellers and beneficial to consumers. When the two-queue seller offers express checkout for impatient customers, the single queue seller focuses on the patient shoppers thereby driving down prices and profits while increasing consumer surplus.

The legalization of cannabis derivatives in Spain: Hypothesis on a potential emerging market.

PubMed

Álvarez, Arturo; Gamella, Juan F; Parra, Iván

2017-06-28

First, this paper estimates the dimensions of the market for cannabis in Spain using data on the extent of consumption and the main patterns of use of consumers. Then the paper reviews the hypothetical production and distribution costs of these drugs in different production regimes under different legal conditions. The review shows that current prices of cannabis in the illegal market could be notably reduced if production and distribution of cannabis were decriminalized and even more if they were performed by legal enterprises. Thirdly, we examine the relationship between prices and consumption levels by analysing the price elasticity of demand. A fall in the prices of cannabis products will likely result in an increase in the number of users and in the total amount consumed. Lastly we consider several alternatives for the taxation of cannabis derivatives to counteract the likely fall in prices, and their pros and cons.

Switching gains and health plan price elasticities: 20 years of managed competition reforms in The Netherlands.

PubMed

Douven, Rudy; Katona, Katalin; T Schut, Frederik; Shestalova, Victoria

2017-11-01

In this paper we estimate health plan price elasticities and financial switching gains for consumers over a 20-year period in which managed competition was introduced in the Dutch health insurance market. The period is characterized by a major health insurance reform in 2006 to provide health insurers with more incentives and tools to compete, and to provide consumers with a more differentiated choice of products. Prior to the reform, in the period 1995-2005, we find a low number of switchers, between 2 and 4% a year, modest average total switching gains of 2 million euros per year and short-term health plan price elasticities ranging from -0.1 to -0.4. The major reform in 2006 resulted in an all-time high switching rate of 18%, total switching gains of 130 million euros, and a high short-term price elasticity of -5.7. During 2007-2015 switching rates returned to lower levels, between 4 and 8% per year, with total switching gains in the order of 40 million euros per year on average. Total switching gains could have been 10 times higher if all consumers had switched to one of the cheapest plans. We find short-term price elasticities ranging between -0.9 and -2.2. Our estimations suggest substantial consumer inertia throughout the entire period, as we find degrees of choice persistence ranging from about 0.8 to 0.9.

Diverging Influences of Money Priming on Choice.

PubMed

Kim, Hee Jin

2017-01-01

Prior research on money priming has suggested two seemingly contradicting findings. On the one hand, money has been shown to highlight the importance of cost saving, leading to the choice of a low-quality/low-price option. On the other hand, individuals primed with money as a symbol of social status, and capabilities may focus on social value of money, e.g., higher spending symbolizes higher status and prefer an option with high quality/high price. Current research proposes and demonstrates that whether money priming will lead different choices depends on the nature of the consumption context. Specifically, when the product is to be consumed privately, money priming will highlight the importance of cost, thus increasing the preference for lower price at a lower quality. However, when the product is to be consumed publicly, reversed pattern of consumer preference will be found.

Analysis of Consumers’ Preferences and Price Sensitivity to Native Chickens

PubMed Central

Lee, Min-A; Jung, Yoojin; Jo, Cheorun

2017-01-01

This study analyzed consumers’ preferences and price sensitivity to native chickens. A survey was conducted from Jan 6 to 17, 2014, and data were collected from consumers (n=500) living in Korea. Statistical analyses evaluated the consumption patterns of native chickens, preference marketing for native chicken breeds which will be newly developed, and price sensitivity measurement (PSM). Of the subjects who preferred broilers, 24.3% do not purchase native chickens because of the dryness and tough texture, while those who preferred native chickens liked their chewy texture (38.2%). Of the total subjects, 38.2% preferred fried native chickens (38.2%) for processed food, 38.4% preferred direct sales for native chicken distribution, 51.0% preferred native chickens to be slaughtered in specialty stores, and 32.4% wanted easy access to native chickens. Additionally, the price stress range (PSR) was 50 won and the point of marginal cheapness (PMC) and point of marginal expensiveness (PME) were 6,980 won and 12,300 won, respectively. Evaluation of the segmentation market revealed that consumers who prefer broiler to native chicken breeds were more sensitive to the chicken price. To accelerate the consumption of newly developed native chicken meat, it is necessary to develop a texture that each consumer needs, to increase the accessibility of native chickens, and to have diverse menus and recipes as well as reasonable pricing for native chickens. PMID:28747834

76 FR 13902 - Fair Credit Reporting Risk-Based Pricing Regulations

Federal Register 2010, 2011, 2012, 2013, 2014

2011-03-15

... consumer when the creditor uses a consumer report to grant or extend credit to the consumer on material.... Information from a consumer report is often used in evaluating the risk posed by the consumer. Creditors that... report in connection with an extension of credit and, based in whole or in part on the consumer report...

5 CFR 591.224 - How does OPM adjust price indexes between surveys?

Code of Federal Regulations, 2011 CFR

2011-01-01

... price indexes between the triennial surveys in each COLA area that is not surveyed in that year. To do this, OPM uses the annual or biennial change in the Consumer Price Index (CPI) for the COLA area... Islands, OPM will adjust as warranted the price indexes and COLA rates for Puerto Rico, the U.S. Virgin...

5 CFR 591.224 - How does OPM adjust price indexes between surveys?

Code of Federal Regulations, 2010 CFR

2010-01-01

... price indexes between the triennial surveys in each COLA area that is not surveyed in that year. To do this, OPM uses the annual or biennial change in the Consumer Price Index (CPI) for the COLA area... Islands, OPM will adjust as warranted the price indexes and COLA rates for Puerto Rico, the U.S. Virgin...

5 CFR 591.224 - How does OPM adjust price indexes between surveys?

Code of Federal Regulations, 2014 CFR

2014-01-01

... price indexes between the triennial surveys in each COLA area that is not surveyed in that year. To do this, OPM uses the annual or biennial change in the Consumer Price Index (CPI) for the COLA area... Islands, OPM will adjust as warranted the price indexes and COLA rates for Puerto Rico, the U.S. Virgin...

5 CFR 591.224 - How does OPM adjust price indexes between surveys?

Code of Federal Regulations, 2012 CFR

2012-01-01

... price indexes between the triennial surveys in each COLA area that is not surveyed in that year. To do this, OPM uses the annual or biennial change in the Consumer Price Index (CPI) for the COLA area... Islands, OPM will adjust as warranted the price indexes and COLA rates for Puerto Rico, the U.S. Virgin...

5 CFR 591.224 - How does OPM adjust price indexes between surveys?

Code of Federal Regulations, 2013 CFR

2013-01-01

... price indexes between the triennial surveys in each COLA area that is not surveyed in that year. To do this, OPM uses the annual or biennial change in the Consumer Price Index (CPI) for the COLA area... Islands, OPM will adjust as warranted the price indexes and COLA rates for Puerto Rico, the U.S. Virgin...

Inflation and the Capital Budgeting Process.

DTIC Science & Technology

1985-04-01

model . [10:22] Friend, Landskroner and Losq assert that the traditional capital asset pricing model *( CAPM ...value (NPV) capital budgeting model is used extensively in this report and the Consumer Price Index - Urban (CPI-U) and the Wholesale Price Index (WPI...general price level adjustments into the capital budgeting model . The consideration of inflation risk is also warranted. The effects of inflation

What drives petroleum product prices

EIA Publications

2017-01-01

This new section discusses the various factors that influence the prices of gasoline and distillate fuel oil—the two most-consumed petroleum products in the United States. Charts detailing prices, consumption, production, inventories, and trade for both petroleum products will be updated each month in the Short-Term Energy Outlook.

Pricing and performance in health maintenance organizations: a strategic management perspective.

PubMed

Conant, J S; Mokwa, M P; Burnett, J J

1989-03-01

Innovative, consumer-oriented pricing strategies have contributed to the impressive growth of health maintenance organizations (HMOs). In a national study of HMO marketing directors, the relationships between strategic management style and (1) the relative importance of pricing in competitive marketing strategy, (2) the effectiveness of price strategy planning, and (3) financial performance are examined. The findings indicate that HMOs practicing effective price planning also perform well on an overall basis. Insight into the content and substance of HMO pricing strategies is also provided.

Creative pricing strategies for medical services.

PubMed

Tellis, G J

1987-01-01

This paper discusses the strategic role of the pricing of medical services. Strategic pricing is a creative process that can be a vital means of defining marketing segments, differentiating services, and gaining a competitive advantage. The central issue in strategic pricing is creatively using the principle of cross-subsidies or shared economies over consumer groups, service sets, or competitors. This principle yields a rich set of pricing strategies that can be used in response to various environments.

Consumer price sensitivity in Dutch health insurance.

PubMed

van Dijk, Machiel; Pomp, Marc; Douven, Rudy; Laske-Aldershof, Trea; Schut, Erik; de Boer, Willem; de Boo, Anne

2008-12-01

To estimate the price sensitivity of consumer choice of health insurance firm. Using paneldata of the flows of insured between pairs of Dutch sickness funds during the period 1993-2002, we estimate the sensitivity of these flows to differences in insurance premium. The price elasticity of residual demand for health insurance was low during the period 1993-2002, confirming earlier findings based on annual changes in market share. We find small but significant elasticities for basic insurance but insignificant elasticities for supplementary insurance. Young enrollees are more price sensitive than older enrollees. Competition was weak in the market for health insurance during the period under study. For the market-based reforms that are currently under way, this implies that measures to promote competition in the health insurance industry may be needed.

Rent-to-Own: A Consumer Purchasing Alternative.

ERIC Educational Resources Information Center

Stein, Pat; Brown, Judy

1988-01-01

Examines rent-to-own, an alternative purchasing method that allows the consumer to rent an item and gain ownership after a specified number of payments. Addresses industry trends, the rent-to-own consumer, pricing structure, and legalities. (JOW)

Consumer preferences and willingness to pay for value-added chicken product attributes.

PubMed

Martínez Michel, Lorelei; Anders, Sven; Wismer, Wendy V

2011-10-01

A growing demand for convenient and ready-to-eat products has increased poultry processors' interest in developing consumer-oriented value-added chicken products. In this study, a conjoint analysis survey of 276 chicken consumers in Edmonton was conducted during the summer of 2009 to assess the importance of the chicken part, production method, processing method, storage method, the presence of added flavor, and cooking method on consumer preferences for different value-added chicken product attributes. Estimates of consumer willingness to pay (WTP) premium prices for different combinations of value-added chicken attributes were also determined. Participants'"ideal" chicken product was a refrigerated product made with free-range chicken breast, produced with no additives or preservatives and no added flavor, which could be oven heated or pan heated. Half of all participants on average were willing to pay 30% more for a value-added chicken product over the price of a conventional product. Overall, young consumers, individuals who shop at Farmers' Markets and those who prefer free-range or organic products were more likely to pay a premium for value-added chicken products. As expected, consumers' WTP was affected negatively by product price. Combined knowledge of consumer product attribute preferences and consumer WTP for value-added chicken products can help the poultry industry design innovative value-added chicken products. Practical Application:  An optimum combination of product attributes desired by consumers for the development of a new value-added chicken product, as well as the WTP for this product, have been identified in this study. This information is relevant to the poultry industry to enhance consumer satisfaction of future value-added chicken products and provide the tools for future profit growth. © 2011 Institute of Food Technologists®

12 CFR 226.35 - Prohibited acts or practices in connection with higher-priced mortgage loans.

Code of Federal Regulations, 2010 CFR

2010-01-01

..., and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage transactions that have low-risk pricing characteristics. The Board publishes average... and premiums for mortgage-related insurance required by the creditor, such as insurance against loss...

Potential savings from an evidence-based consumer-oriented public education campaign on prescription drugs.

PubMed

Donohue, Julie M; Fischer, Michael A; Huskamp, Haiden A; Weissman, Joel S

2008-10-01

To estimate potential savings associated with the Consumer Reports Best Buy Drugs program, a national educational program that provides consumers with price and effectiveness information on prescription drugs. National data on 2006 prescription sales and retail prices paid for angiotensin-converting enzyme inhibitors (ACEIs), β-blockers, calcium channel blockers, and 3-hydroxy-3-methylglutaryl coenzyme A (HMG-coA) reductase inhibitors (statins). We converted national data on aggregate unit sales of drugs in the four classes to defined daily doses (DDD) and estimated a range of potential savings from generic and therapeutic substitution. We estimated that $2.76 billion, or 7.83 percent of sales, could be saved if use of the drugs recommended by the educational program was increased. The recommended drugs' prices were 15-65 percent lower per DDD than their therapeutic alternatives. The majority (57.4 percent) of potential savings would be achieved through therapeutic substitution. Substantial savings can be achieved through greater use of comparatively effective and lower cost drugs recommended by a national consumer education program. However, barriers to dissemination of consumer-oriented drug information must be addressed before savings can be realized. © Health Research and Educational Trust.

Potential Savings from an Evidence-Based Consumer-Oriented Public Education Campaign on Prescription Drugs

PubMed Central

Donohue, Julie M; Fischer, Michael A; Huskamp, Haiden A; Weissman, Joel S

2008-01-01

Objective To estimate potential savings associated with the Consumer Reports Best Buy Drugs program, a national educational program that provides consumers with price and effectiveness information on prescription drugs. Data Sources National data on 2006 prescription sales and retail prices paid for angiotensin-converting enzyme inhibitors (ACEIs), β-blockers, calcium channel blockers, and 3-hydroxy-3-methylglutaryl coenzyme A (HMG-coA) reductase inhibitors (statins). Study Design We converted national data on aggregate unit sales of drugs in the four classes to defined daily doses (DDD) and estimated a range of potential savings from generic and therapeutic substitution. Principal Findings We estimated that $2.76 billion, or 7.83 percent of sales, could be saved if use of the drugs recommended by the educational program was increased. The recommended drugs’ prices were 15–65 percent lower per DDD than their therapeutic alternatives. The majority (57.4 percent) of potential savings would be achieved through therapeutic substitution. Conclusions Substantial savings can be achieved through greater use of comparatively effective and lower cost drugs recommended by a national consumer education program. However, barriers to dissemination of consumer-oriented drug information must be addressed before savings can be realized. PMID:18479406

DO CONSUMER PRICE SUBSIDIES REALLY IMPROVE NUTRITION?*

PubMed Central

Jensen, Robert T.; Miller, Nolan H.

2010-01-01

Many developing countries use food-price subsidies or controls to improve nutrition. However, subsidizing goods on which households spend a high proportion of their budget can create large wealth effects. Consumers may then substitute towards foods with higher non-nutritional attributes (e.g., taste), but lower nutritional content per unit of currency, weakening or perhaps even reversing the subsidy’s intended impact. We analyze data from a randomized program of large price subsidies for poor households in two provinces of China and find no evidence that the subsidies improved nutrition. In fact, it may have had a negative impact for some households. (JEL I38; O12; Q18) PMID:22505779

Can Increases in the Cigarette Tax Rate be Linked to Cigarette Retail Prices? Solving mysteries related to the cigarette pricing mechanism in China

PubMed Central

Gao, Song; Zheng, Rong; Hu, Teh-wei

2013-01-01

Objective To explain China’s cigarette pricing mechanism and the role of the Chinese State Tobacco Monopoly Administration (STMA) on cigarette pricing and taxation. Methods Published government tobacco tax documentation and statistics published by the Chinese State Tobacco Monopoly Administration (STMA) are used to analyze the interrelations among industry profits, taxes, and retail price of cigarettes in China. Results The 2009 excise tax increase on cigarettes in China has not translated into higher retail prices because the Chinese STMA used its policy authority to ensure that retail cigarette prices did not change. The government tax increase is being collected at both the producer and wholesale levels. As a result, the 2009 excise tax increase in China has resulted in higher tax revenue for the government and lower profits for the tobacco industry, with no increase in the retail price of cigarettes for consumers. Conclusions Numerous studies have found that taxation is one of the most effective policy instruments for tobacco control. However, these findings come from countries that have market economies where market forces determine prices and influence how cigarette taxes are passed to the consumers in retail prices. China’s tobacco industry is not a market economy; therefore, nonmarket forces and the current Chinese tobacco monopoly system determine cigarette prices. The result is that tax increases do not necessarily get passed on to the retail price. PMID:23076787

Agribusiness Group Paper

DTIC Science & Technology

2002-11-21

services, markets, and consumers. A Consumer-Driven Market Increasingly, consumers define the food market. Changes in consumer preferences have resulted...ownership and production becomes more concentrated to better meet consumer preferences and the demand for food. 8 CHALLENGES While the United States is...vie for market share. In order to obtain competitive advantage, agribusinesses must focus on price and value- added products that meet consumer

The economics of prescription drug prices, government intervention, and the importation of drugs from Canada.

PubMed

Openshaw, Matthew S

2005-01-01

Popular attention has focused on the skyrocketing health care costs in the United States and specifically on increasing insurance and prescription drug prices. Individuals and some local governments have advocated importing price-controlled prescription drugs from Canada to help ease the financial burden. What effects would this have on consumer prices, drug companies' incentives, and the development of new medications?

Historical price trends of nonconiferous tropical logs and sawnwood imported to the United States, Europe, and Japan

Treesearch

C. Denise Ingram

1993-01-01

This report reviews historical price trends of nonconiferous and tropical sawlogs and tropical sawnwood imports to several major consuming regions of the world. Data on real prices for imports from Africa, Asia, and Latin America to the United States, Europe, and Japan are presented as a reference for policymakers interested in the relative price movements of tropical...

JPRS Report, East Europe.

DTIC Science & Technology

1990-07-18

marketing , and retail prices of goods and services which are the result of nonproduction organizations; the first tentative steps our economy has taken to...create -imported consumer goods ; market conditions. -products priced according to contracted retail prices. The elimination of a few mammoth general...eign competitors are entering the market will in time retail prices before the season is over. force these firms to engage in more effective business

Judgments about Judgments: The Dissociation of Consideration Price and Transaction Commitment Judgments

ERIC Educational Resources Information Center

Janiszewski, Chris; Lichtenstein, Donald R.; Belyavsky, Julia

2008-01-01

There are many contexts in which people make judgments about prior judgments. For example, Internet shopping bots (e.g., NexTag.com) allow consumers to search for products and, if the price is too high, list a price at which they would consider making the purchase (i.e., base judgment). If the price drops to this level, the vendor generates an…

The price of a drink: levels of consumption and price paid per unit of alcohol by Edinburgh's ill drinkers with a comparison to wider alcohol sales in Scotland

PubMed Central

Black, Heather; Gill, Jan; Chick, Jonathan

2011-01-01

Aim To compare alcohol purchasing and consumption by ill drinkers in Edinburgh with wider alcohol sales in Scotland. Design Cross-sectional. Setting Two hospitals in Edinburgh in 2008/09. Participants A total of 377 patients with serious alcohol problems; two-thirds were in-patients with medical, surgical or psychiatric problems due to alcohol; one-third were out-patients. Measurements Last week's or typical weekly consumption of alcohol: type, brand, units (1 UK unit 8 g ethanol), purchase place and price. Findings Patients consumed mean 197.7 UK units/week. The mean price paid per unit was £0.43 (lowest £0.09/unit) (£1 = 1.6 US$ or 1.2€), which is below the mean unit price, £0.71 paid in Scotland in 2008. Of units consumed, 70.3% were sold at or below £0.40/unit (mid-range of price models proposed for minimum pricing legislation by the Scottish Government), and 83% at or below £0.50/unit proposed by the Chief Medical Officer of England. The lower the price paid per unit, the more units a patient consumed. A continuous increase in unit price from lower to higher social status, ranked according to the Scottish Index of Multiple Deprivation (based on postcode), was not seen; patients residing in postcodes in the mid-quintile paid the highest price per unit. Cheapness was quoted commonly as a reason for beverage choice; ciders, especially ‘white’ cider, and vodka were, at off-sales, cheapest per unit. Stealing alcohol or drinking alcohol substitutes was only very rarely reported. Conclusions Because patients with serious alcohol problems tend to purchase very cheap alcohol, elimination of the cheapest sales by minimum price or other legislation might reduce their consumption. It is unknown whether proposed price legislation in Scotland will encourage patients with serious alcohol problems to start stealing alcohol or drinking substitutes or will reduce the recruitment of new drinkers with serious alcohol problems and produce predicted longer-term gains in health and social wellbeing. PMID:21134019

Do consumers substitute opium for hashish? An economic analysis of simultaneous cannabinoid and opiate consumption in a legal regime.

PubMed

Chandra, Siddharth; Chandra, Madhur

2015-11-01

To analyze interrelationships in the consumption of opiates and cannabinoids in a legal regime and, specifically, whether consumers of opiates and cannabinoids treat them as substitutes for each other. Econometric dynamic panel data models for opium consumption are estimated using the generalized method of moments (GMM). A unique dataset containing information about opiate (opium) consumption from the Punjab province of British India for the years 1907-1918 is analyzed (n=252) as a function of its own price, the prices of two forms of cannabis (the leaf (bhang), and the resin (charas, or hashish)), and wage income. Cross-price elasticities are examined to reveal substitution or complementarity between opium and cannabis. Opium is a substitute for charas (or hashish), with a cross price elasticity (βˆ3) of 0.14 (p<0.05), but not for bhang (cannabis leaves; cross price elasticity=0.00, p>0.10). Opium consumption (βˆ1=0.47 to 0.49, p<0.01) shows properties of habit persistence consistent with addiction. The consumption of opium is slightly responsive (inelastic) to changes in its own price (βˆ2=-0.34 to -0.35, p<0.05 to 0.01) and consumer wages (βˆ1=0.15, p<0.05). Opium and hashish, a form of cannabis, are substitutes. In addition, opium consumption displays properties of habit persistence and slight price and wage income responsiveness (inelasticity) consistent with an addictive substance. Copyright © 2015 Elsevier Ireland Ltd. All rights reserved.

How do Brazilian consumers perceive a non-traditional and innovative fruit juice? An approach looking at the packaging.

PubMed

Romano, Karen R; Rosenthal, Amauri; Deliza, Rosires

2015-08-01

Consumer interest in nutritious and innovative foods encourages the development of products based on raw materials with nutraceutical potential. The health benefits provided by pomegranate have been recognized; therefore, the development of pomegranate juice may match consumer expectations regarding this goal. However, the concept has to first be accepted by the consumer. The aim of the study was to utilize a rating based conjoint analysis to investigate how Brazilian consumers perceive pomegranate juice by identifying the role of packaging attributes relevant to the consumer's intention to purchase. Five factors were considered in the study: technology used in the juice production (high hydrostatic pressure - HHP - a technology that preserves nutritional and sensory properties), antioxidants, price, preservatives, and colorant. Eight hypothetical pomegranate juice packages were created following an incomplete block design and evaluated by 150 fruit juice consumers. Three clusters were identified. The average results revealed that antioxidants were the attribute of greatest relative importance to cluster 1 (RI: 36%), followed by HHP (RI: 25%) and colorants (14%). Consumers in cluster 2 considered price as the most important attribute (RI: 41%), followed by antioxidants (RI: 21%) and HHP (RI: 18%). Cluster 3, as well as cluster 2, considered price the most important attribute (RI: 28%), followed by antioxidants (RI: 26%) and HHP (RI: 22%). The results showed that consumers valued information on the health benefits of antioxidants as well as on the technology, suggesting that both types of information may be relevant tools to increase the intention to purchase the product. The application of HHP for pomegranate juice processing was positively perceived by consumers, suggesting a potential commercial application in the Brazilian industry. Copyright © 2015 Elsevier Ltd. All rights reserved.

Impact of a targeted direct marketing price promotion intervention (Buywell) on food-purchasing behaviour by low income consumers: a randomised controlled trial.

PubMed

Stead, M; MacKintosh, A M; Findlay, A; Sparks, L; Anderson, A S; Barton, K; Eadie, D

2017-08-01

Price promotions are a promising intervention for encouraging healthier food purchasing. We aimed to assess the impact of a targeted direct marketing price promotion combined with healthy eating advice and recipe suggestions on the purchase of selected healthier foods by low income consumers. We conducted a randomised controlled trial (n = 53 367) of a direct marketing price promotion (Buywell) combined with healthy eating advice and recipe suggestions for low income consumers identified as 'less healthy' shoppers. Impact was assessed using electronic point of sale data for UK low income shoppers before, during and after the promotion. The proportion of customers buying promoted products in the intervention month increased by between 1.4% and 2.8% for four of the five products. There was significantly higher uptake in the promotion month (P < 0.001) for the intervention group than would have been expected on the basis of average uptake in the other months. When product switching was examined for semi-skimmed/skimmed milk, a modest increase (1%) was found in the intervention month of customers switching from full-fat to low-fat milk. This represented 8% of customers who previously bought only full-fat milk. The effects were generally not sustained after the promotion period. Short-term direct marketing price promotions combined with healthy eating advice and recipe suggestions targeted at low income consumers are feasible and can have a modest impact on short-term food-purchasing behaviour, although further approaches are needed to help sustain these changes. © 2017 The British Dietetic Association Ltd.

Animal health and price transmission along livestock supply chains.

PubMed

Aragrande, M; Canali, M

2017-04-01

Animal health diseases can severely affect the food supply chain by causing variations in prices and market demand. Price transmission analysis reveals in what ways price variations are transmitted along the supply chain, and how supply chains of substitute products and different regional markets are also affected. In perfect markets, a price variation would be completely and instantaneously transmitted across the different levels of the supply chain: producers, the processing industry, retailers and consumers. However, empirical studies show that food markets are often imperfect, with anomalies or asymmetries in price transmission and distortions in the distribution of market benefits. This means, for instance, that a price increase at the consumer level may not be transmitted from retailers to processors and producers; yet, on the other hand, price falls may rapidly affect the upstream supply chain. Market concentration and the consequent exertion of market power in key segments of the supply chain can explain price transmission asymmetries and their distributional effects, but other factors may also be involved, such as transaction costs, scale economies, and imperfect information. During the bovine spongiform encephalopathy (BSE) crisis, asymmetric price transmission in the beef supply chain and related meat markets determined distributional effects among sectors. After the spread of the BSE food scare, the fall in demand marginally affected the price paid to retailers, but producers and wholesalers suffered much more, in both price reductions and the time needed to recover to precrisis demand. Price transmission analysis investigates how animal health crises create different economic burdens for various types of stakeholder, and provides useful socioeconomic insights when used with other tools.

78 FR 56911 - Notice of Certain Operating Cost Adjustment Factors for 2014

Federal Register 2010, 2011, 2012, 2013, 2014

2013-09-16

... Bureau of Labor Statistics (BLS) Consumer Price Index, All Items Less Food, Energy and Shelter (Series ID.../february2013.pdf . Natural Gas: Energy Information Agency, Natural Gas, Residential Energy Price, 2011-2012.... The best current price data sources for the nine cost categories were used in calculating annual...

Calculating the Candy Price Index: A Classroom Inflation Experiment.

ERIC Educational Resources Information Center

Hazlett, Denise; Hill, Cynthia D.

2003-01-01

Outlines how students develop a price index based on candy-purchasing decisions made by class members. Explains that students used the index to practice calculating inflation rates and to consider the strengths and weaknesses of the consumer price index (CPI). States that the exercise has been used in introductory and intermediate macroeconomics…

The Feedback-Related Negativity and the P300 Brain Potential Are Sensitive to Price Expectation Violations in a Virtual Shopping Task

PubMed Central

Schaefer, Alexandre; Buratto, Luciano G.; Goto, Nobuhiko; Brotherhood, Emilie V.

2016-01-01

A large body of evidence shows that buying behaviour is strongly determined by consumers’ price expectations and the extent to which real prices violate these expectations. Despite the importance of this phenomenon, little is known regarding its neural mechanisms. Here we show that two patterns of electrical brain activity known to index prediction errors–the Feedback-Related Negativity (FRN) and the feedback-related P300 –were sensitive to price offers that were cheaper than participants’ expectations. In addition, we also found that FRN amplitude time-locked to price offers predicted whether a product would be subsequently purchased or not, and further analyses suggest that this result was driven by the sensitivity of the FRN to positive price expectation violations. This finding strongly suggests that ensembles of neurons coding positive prediction errors play a critical role in real-life consumer behaviour. Further, these findings indicate that theoretical models based on the notion of prediction error, such as the Reinforcement Learning Theory, can provide a neurobiologically grounded account of consumer behavior. PMID:27658301

Innovations in Consumer Education, Part 2: Three R's in Consumer Education

ERIC Educational Resources Information Center

Rice, Ann Smith

1975-01-01

Rights, remedies, and responsibilities are the consumer education three R's. Only one right, the right to be informed, is discussed in the article. It is examined in relationship to labelling, warranties, price information, contracts, and legislation. (AG)

Pricing in health care organizations. A key component of the marketing mix.

PubMed

Marlowe, D

1989-01-01

Pricing is one of the key components of a successful marketing mix. Pricing objectives, strategies, and tactics cannot stand alone, however. To be effective, price must work in harmony with other marketing and management activities. Despite its importance, use of pricing as a management tool is limited in health care compared to other industries. Many factors contribute to this situation, including the structure of the health-care exchange process, limited consumer knowledge, and a limited ability to measure costs. I will provide an overview of pricing information, both within and outside health care. Specifically, we will explore the definition of pricing, nonmonetary pricing, price elasticity, classical pricing theory, and the role of pricing in a health-care setting.

Climate Change, Global Food Markets, and Urban Unrest

DTIC Science & Technology

2013-02-01

prices on unrest. Higher food prices for consumers erode real incomes, increasing the gap between expectations of welfare and actual welfare, thus...these gaps in understanding the political links between food prices and urban unrest, this brief focuses on the role of political institutions. In...This theoretical discussion yields two observable implications that this study has sought to test. First, if global food prices go up, incidents of

Robust Unit Commitment Considering Uncertain Demand Response

DOE PAGES

Liu, Guodong; Tomsovic, Kevin

2014-09-28

Although price responsive demand response has been widely accepted as playing an important role in the reliable and economic operation of power system, the real response from demand side can be highly uncertain due to limited understanding of consumers' response to pricing signals. To model the behavior of consumers, the price elasticity of demand has been explored and utilized in both research and real practice. However, the price elasticity of demand is not precisely known and may vary greatly with operating conditions and types of customers. To accommodate the uncertainty of demand response, alternative unit commitment methods robust to themore » uncertainty of the demand response require investigation. In this paper, a robust unit commitment model to minimize the generalized social cost is proposed for the optimal unit commitment decision taking into account uncertainty of the price elasticity of demand. By optimizing the worst case under proper robust level, the unit commitment solution of the proposed model is robust against all possible realizations of the modeled uncertain demand response. Numerical simulations on the IEEE Reliability Test System show the e ectiveness of the method. Finally, compared to unit commitment with deterministic price elasticity of demand, the proposed robust model can reduce the average Locational Marginal Prices (LMPs) as well as the price volatility.« less

Price elasticity of demand for malt liquor beer: findings from a US pilot study.

PubMed

French, Michael Thomas; Browntaylor, Didra; Bluthenthal, Ricky Neville

2006-05-01

Our objective is to estimate the relative price elasticity of demand for malt liquor beer (MLB), regular beer, hard liquor, and a combined group of all other alcoholic beverages. Three hundred and twenty-nine alcohol consumers (mostly male) in South-Central Los Angeles answered a series of questions pertaining to expected consumption responses to hypothetical price increases. We found that based on a 10% price increase, the mean price elasticity of demand (% change in quantity demanded / % change in price) was -0.79 for MLB drinkers, -1.14 for regular beer drinkers, -1.11 for hard liquor drinkers, and -1.69 for the combined group of all other drinkers. Logistic regression analysis revealed that the personal characteristics significantly related to being a MLB drinker were older age, not working, being homeless, and a daily drinker. Daily (or nearly daily) drinkers were more likely to be married, earning lower incomes, and hard liquor drinkers. This study is the first to investigate the price elasticity of demand for MLB drinkers and other heavy alcohol consumers in poor urban neighborhoods of the US. Future research can use the methods from this pilot study to more rigorously examine and compare the price sensitivity among heavy drinking groups.

Social Security cost-of-living adjustments and the Consumer Price Index.

PubMed

Burdick, Clark; Fisher, Lynn

2007-01-01

OASDI benefits are indexed for inflation to protect beneficiaries from the loss of purchasing power implied by inflation. In the absence of such indexing, the purchasing power of Social Security benefits would be eroded as rising prices raise the cost of living. By statute, cost-of-living adjustments (COLAs) for Social Security benefits are calculated using the Bureau of Labor Statistics (BLS) Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Some argue that this index does not accurately reflect the inflation experienced by the elderly population and should be changed to an elderly-specific price index such as the Experimental Consumer Price Index for Americans 62 Years of Age and Older, often referred to as the Consumer Price Index for the Elderly (CPI-E). Others argue that the measure of inflation underlying the COLA is technically biased, causing it to overestimate changes in the cost of living. This argument implies that current COLAs tend to increase, rather than merely maintain, the purchasing power of benefits over time. Potential bias in the CPI as a cost-of-living index arises from a number of sources, including incomplete accounting for the ability of consumers to substitute goods or change purchasing outlets in response to relative price changes. The BLS has constructed a new index called the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) that better accounts for those consumer adjustments. Price indexes are not true cost-of-living indexes, but approximations of cost-of-living indexes (COLI). The Bureau of Labor Statistics (2006a) explains the difference between the two: As it pertains to the CPI, the COLI for the current month is based on the answer to the following question: "What is the cost, at this month ' market prices, of achieving the standard of living actually attained in the base period?" This cost is a hypothetical expenditure-the lowest expenditure level necessary at this month's prices to achieve the base-period's living standard.... Unfortunately, because the cost of achieving a living standard cannot be observed directly, in operational terms, a COLI can only be approximated. Although the CPI cannot be said to equal a cost-of-living index, the concept of the COLI provides the CPI's measurement objective and the standard by which we define any bias in the CPI. While all versions of the CPI only approximate the actual changes in the cost of living, the CPI-E has several additional technical limitations. First, the CPI-E may better account for the goods and services typically purchased by the elderly, but the expenditure weights for the elderly are the only difference between the CPI-E and CPI-W. These weights are based on a much smaller sample than the other two indices, making it less precise. Second, the CPI-E does not account for differences in retail outlets frequented by the aged population or the prices they pay. Finally, the purchasing population measured in the CPI-E is not necessarily identical to the Social Security beneficiary population, where more than one-fifth of OASDI beneficiaries are under age 62. Likewise, over one-fifth of persons aged 62 or older are not beneficiaries, but they are included in the CPI-E population. Finally, changes in the index used to calculate COLAs directly affect the amount of benefits paid, and as a result, projected solvency of the Social Security program. A switch to the CPI-E for the December 2006 COLA (received in January 2007) would have resulted in an average monthly benefit $0.90 higher than that received. If the December 2006 COLA had been adjusted by the Chained CPI-U instead, the average monthly benefit would have been $4.70 less than with current indexing. Any changes to the COLA that would cause faster growth in individual benefits would make the projected date of insolvency sooner, while slower growth would delay insolvency. Hobijn and Lagakos (2003) estimated that switching to the CPI-E for COLAs would move projected insolvency sooner by 3-5 years. A projection by SSA's Office of the Chief Actuary estimated that annual COLAs based on the Chained C-CPI-U beginning in 2006 would delay the date of OASDI insolvency by 4 years.

Economic and market issues on the sustainability of egg production in the United States: analysis of alternative production systems.

PubMed

Sumner, D A; Gow, H; Hayes, D; Matthews, W; Norwood, B; Rosen-Molina, J T; Thurman, W

2011-01-01

Conventional cage housing for laying hens evolved as a cost-effective egg production system. Complying with mandated hen housing alternatives would raise marginal production costs and require sizable capital investment. California data indicate that shifts from conventional cages to barn housing would likely cause farm-level cost increases of about 40% per dozen. The US data on production costs of such alternatives as furnished cages are not readily available and European data are not applicable to the US industry structure. Economic analysis relies on key facts about production and marketing of conventional and noncage eggs. Even if mandated by government or buyers, shifts to alternative housing would likely occur with lead times of at least 5 yr. Therefore, egg producers and input suppliers would have considerable time to plan new systems and build new facilities. Relatively few US consumers now pay the high retail premiums required for nonconventional eggs from hens housed in alternative systems. However, data from consumer experiments indicate that additional consumers would also be willing to pay some premium. Nonetheless, current data do not allow easy extrapolation to understand the willingness to pay for such eggs by the vast majority of conventional egg consumers. Egg consumption in the United States tends to be relatively unresponsive to price changes, such that sustained farm price increases of 40% would likely reduce consumption by less than 10%. This combination of facts and relationships suggests that, unless low-cost imports grew rapidly, requirements for higher cost hen housing systems would raise US egg prices considerably while reducing egg consumption marginally. Eggs are a low-cost source of animal protein and low-income consumers would be hardest hit. However, because egg expenditures are a very small share of the consumer budget, real income loss for consumers would be small in percentage terms. Finally, the high egg prices imposed by alternative hen housing systems raise complex issues about linking public policy costs to policy beneficiaries.

An exploratory analysis of cigarette price premium, market share and consumer loyalty in relation to continued consumption versus cessation in a national US panel.

PubMed

Lewis, Michael; Wang, Yanwen; Cahn, Zachary; Berg, Carla J

2015-11-03

Brand equity and consumer loyalty play a role in continued purchasing behaviour; however, this research has largely focused on non-addictive products without counter-marketing tactics. We examined the impact of brand equity (price premium, market share) and consumer loyalty (switching rates) on smoking cessation (discontinued cigarette purchases for 1 year) among smokers in a consumer panel. In Spring 2015, we analysed 1077 cigarette-purchasing households in the Nielsen Homescan Panel. We analysed cessation in relation to brand equity, consumer loyalty, other purchasing behaviours (nicotine intake, frequency), sociodemographics and tobacco control activities (per state-specific data) over a 6-year period (2004-2009) using Cox proportional hazard modelling. The sample was 13.28% African-American; the average income was $52,334 (SD=31,445). The average price premium and market share of smokers' dominant brands were $1.31 (SD=0.49) and 15.41% (SD=19.15), respectively. The mean brand loyalty level was 0.90 (SD=0.17), indicating high loyalty. In our final model, a higher price premium and market share were associated with lower quit rates (p=0.039); however, an interaction effect suggested that greater market share was not associated with lower cessation rates for African-American smokers (p=0.006). Consumer loyalty was not associated with cessation. Other predictors of lower quit rates included a higher nicotine intake (p=0.006) and baseline purchase frequency (p<0.001). Tobacco control factors were not significantly associated. Smokers of high-equity cigarette brands are less likely to quit, perhaps due to strong brand-consumer relationships. Thus, continued efforts should aim to regulate tobacco marketing efforts in order to disrupt these relationships to promote cessation. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/

Early Impacts of Marijuana Legalization: An Evaluation of Prices in Colorado and Washington.

PubMed

Hunt, Priscillia; Pacula, Rosalie Liccardo

2017-06-01

Following the legalization and regulation of marijuana for recreational purposes in states with medical markets, policymakers and researchers seek empirical evidence on how, and how fast, supply and demand changed over time. Prices are an indication of how suppliers and consumers respond to policy changes, so this study uses a difference-in-difference approach to exploit the timing of policy implementation and identify the impacts on marijuana prices 4-5 months after markets opened. This study uses unique longitudinal survey data of prices paid by consumers and a web-scraped dataset of dispensary prices advertised online for three U.S. medical marijuana states that all eventually legalized recreational marijuana. Results indicate there were no impacts on the prices paid for medical or recreational marijuana by state-representative residents within the short 4- to 5-months window following legalization. However, there were differences in how much people paid if they obtained marijuana for recreational purposes from a recreational store. Further analysis of advertised prices confirms this result, but further demonstrates heterogeneous responses in prices across types of commonly advertised strains; prices either did not change or increased depending on the strain type. A key implication of our findings is that there are both supply and demand responses at work in the opening of legalized markets, suggesting that evaluations of immediate effects may not accurately reflect the long run impact of legalization on consumption.

An island apart? Risks and prices in the Australian cryptomarket drug trade.

PubMed

Cunliffe, Jack; Martin, James; Décary-Hétu, David; Aldridge, Judith

2017-12-01

Australia has a reputation as an anomaly with regard to cryptomarket drug trading, with seemingly disproportionately high levels of activity given its relatively small size, high prices and anecdotal accounts of it being a destination where many foreign-based vendors will not sell. This paper aims to investigate these claims from a risk and prices perspective. By analysing data for over 60,000 drug products available for purchase from eight cryptomarkets in January 2016 this work builds a descriptive picture of the Australian online market in comparison to the rest of the world, before moving onto analyse the prices of drugs available to Australian consumers, both online and though conventional drug supply routes. Results show that the Australian online illicit drugs market is of considerable size, internally isolated and with methamphetamine sales being particularly large by comparison to other countries. Australian cryptomarket vendors sell drugs at significantly higher prices than those listed by their foreign counterparts. Online prices are however broadly comparable to street prices, with the exception of methamphetamine where prices appear to be much lower online. These findings indicate that the perceived stringency of Australian border protection inadvertently increases the competitiveness and local market share of domestic cryptomarket vendors via a consumer side 'risk tariff', challenging the traditionally vendor-oriented drugs risk and prices framework. Copyright © 2017 Elsevier B.V. All rights reserved.

Lessons from game theory about healthcare system price inflation: evidence from a community-level case study.

PubMed

Agee, Mark D; Gates, Zane

2013-02-01

Game theory is useful for identifying conditions under which individual stakeholders in a collective action problem interact in ways that are more cooperative and in the best interest of the collective. The literature applying game theory to healthcare markets predicts that when providers set prices for services autonomously and in a noncooperative fashion, the market will be susceptible to ongoing price inflation. We compare the traditional fee-for-service pricing framework with an alternative framework involving modified doctor, hospital and insurer pricing and incentive strategies. While the fee-for-service framework generally allows providers to set prices autonomously, the alternative framework constrains providers to interact more cooperatively. We use community-level provider and insurer data to compare provider and insurer costs and patient wellness under the traditional and modified pricing frameworks. The alternative pricing framework assumes (i) providers agree to manage all outpatient claims; (ii) the insurer agrees to manage all inpatient clams; and (iii) insurance premiums are tied to patients' healthy behaviours. Consistent with game theory predictions, the more cooperative alternative pricing framework benefits all parties by producing substantially lower administrative costs along with higher profit margins for the providers and the insurer. With insurance premiums tied to consumers' risk-reducing behaviours, the cost of insurance likewise decreases for both the consumer and the insurer.

Support vector machine for day ahead electricity price forecasting

NASA Astrophysics Data System (ADS)

Razak, Intan Azmira binti Wan Abdul; Abidin, Izham bin Zainal; Siah, Yap Keem; Rahman, Titik Khawa binti Abdul; Lada, M. Y.; Ramani, Anis Niza binti; Nasir, M. N. M.; Ahmad, Arfah binti

2015-05-01

Electricity price forecasting has become an important part of power system operation and planning. In a pool- based electric energy market, producers submit selling bids consisting in energy blocks and their corresponding minimum selling prices to the market operator. Meanwhile, consumers submit buying bids consisting in energy blocks and their corresponding maximum buying prices to the market operator. Hence, both producers and consumers use day ahead price forecasts to derive their respective bidding strategies to the electricity market yet reduce the cost of electricity. However, forecasting electricity prices is a complex task because price series is a non-stationary and highly volatile series. Many factors cause for price spikes such as volatility in load and fuel price as well as power import to and export from outside the market through long term contract. This paper introduces an approach of machine learning algorithm for day ahead electricity price forecasting with Least Square Support Vector Machine (LS-SVM). Previous day data of Hourly Ontario Electricity Price (HOEP), generation's price and demand from Ontario power market are used as the inputs for training data. The simulation is held using LSSVMlab in Matlab with the training and testing data of 2004. SVM that widely used for classification and regression has great generalization ability with structured risk minimization principle rather than empirical risk minimization. Moreover, same parameter settings in trained SVM give same results that absolutely reduce simulation process compared to other techniques such as neural network and time series. The mean absolute percentage error (MAPE) for the proposed model shows that SVM performs well compared to neural network.

Age and gender differences in the influence of extrinsic product information on acceptability for RTD green tea beverages.

PubMed

Bae, Ye-Won; Lee, Soh Min; Kim, Kwang-Ok

2016-03-15

The introduction of ready-to-drink (RTD) green tea beverage has allowed diverse consumers to consume green teas and related products. Green tea that has been traditionally consumed for its delicate flavor characteristics is also widely consumed for its recognition as a healthy product. Because it is reported that age difference exists in consideration of health-related information, the objective of the study was to investigate how sensory and non-sensory factors, in particular health-related information, price and packaging, would affect the flavor acceptability of green tea beverages, depending on consumers' age and gender. Regardless of the product information, old consumers preferred products that provided an indication of health beneficial effect. On the other hand, young consumers tended to be influenced by extrinsic product information such as packaging, brand/manufacturer and/or price, though these consumers were not so much influenced by health beneficial information as were the old consumers. The findings of the study implied that the influence of non-sensory information such as health beneficial information in flavor liking differed depending mostly on consumers' age, and little on gender, for RTD green tea beverages. © 2015 Society of Chemical Industry.

How Readers and Advertisers Benefit from Local Newspaper Competition.

ERIC Educational Resources Information Center

Everett, Shu-Ling Chen; Everett, Stephen E.

1989-01-01

Explores relations among three competitive schemes with respect to newspapers' price structures, including advertising rates and prices to consumers. Finds that readers get some benefit from greater competition, but that advertisers do not. (MM)

Overcoming information asymmetry in consumer-directed health plans.

PubMed

Retchin, Sheldon M

2007-04-01

Consumer-centric healthcare has been extolled as the centerpiece of a new model for managing both quality and price. However, information asymmetry in consumer-directed health plans (CDHPs) is a challenge that must be addressed. For CDHPs to work as intended and to gain acceptance, consumers need information regarding the quality and price of healthcare purchases. The federal government, particularly the Agency for Healthcare Research and Quality, could function as an official resource for information on performance and comparisons among facilities and providers. Because of workforce constraints among primary care physicians, a new group of healthcare professionals called "medical decision advisors" could be trained. Academic health centers would have to play a critical role in devising an appropriate curriculum, as well as designing a certification and credentialing process. However, with appropriate curricula and training, medical decision advisors could furnish information for consumers and aid in the complicated decisions they will face under CDHPs.

Managing imperfect competition by pay for performance and reference pricing.

PubMed

Mak, Henry Y

2018-01-01

I study a managed health service market where differentiated providers compete for consumers by choosing multiple service qualities, and where copayments that consumers pay and payments that providers receive for services are set by a payer. The optimal regulation scheme is two-sided. On the demand side, it justifies and clarifies value-based reference pricing. On the supply side, it prescribes pay for performance when consumers misperceive service benefits or providers have intrinsic quality incentives. The optimal bonuses are expressed in terms of demand elasticities, service technology, and provider characteristics. However, pay for performance may not outperform prospective payment when consumers are rational and providers are profit maximizing, or when one of the service qualities is not contractible. Copyright © 2017 Elsevier B.V. All rights reserved.

Deregulating electricity in the American states

NASA Astrophysics Data System (ADS)

Terbush, Thomas Lee

This dissertation develops nine stylized facts that summarize the major consequences of deregulation and tests these against recent experience in the electric utility industry. The experience of the electric utility industry matches the predictions of the stylized facts, except in one instance: although real electricity prices fell between 1982 and 1999, real prices fell less in states that deregulated. This dissertation presents three possible explanations for this discrepancy. First, through dynamic efficiency, consumers may benefit in the long run through lower rates and better service in the electricity market, or deregulation may be a public good that benefits electricity consumers through economy-wide improvements in efficiency. Second, higher prices may be a long-run outcome as predicted by the theory of the second best. Or third, both regulators and utilities may use deregulation to generate new rents. Because the original rents from regulation had dissipated, new rents could be generated under deregulation by making consumers pay off the utilities and then creating more new rents through re-regulation of the industry. Close examination tends to support the first and third explanations, although the second-best explanation cannot yet be ruled out completely. Higher prices appear to be a transitional phenomenon, resulting from a short-term payoff from consumers to incumbent utilities that was required to move deregulation forward. This payoff occurs as residential and commercial consumers bear relatively higher rates over three to five years to compensate utilities for stranded costs, investments thought to be unrecoverable under full competition. All states are benefiting from deregulation, but states that are deregulating are benefiting less while stranded costs are being recovered. This dissertation also examines California electricity deregulation and finds that the experience in California conforms with to the stylized facts, and that certain structural, demand and supply factors caused the electricity crisis in 2000 and 2001. The most important factor was the disallowance of long-term contracts and other instruments for shedding price risk, which discouraged the construction of new generating plants.

An analysis of at-home demand for ice cream in the United States.

PubMed

Davis, C G; Blayney, D P; Yen, S T; Cooper, J

2009-12-01

Ice cream has been manufactured commercially in the United States since the middle of the 19th century. Ice cream and frozen dessert products comprise an important and relatively stable component of the United States dairy industry. As with many other dairy products, ice cream is differentiated in several dimensions. A censored translog demand system model was employed to analyze purchases of 3 ice cream product categories. The objective of this study was to determine the effect that changes in retail prices and consumer income have on at-home ice cream consumption. The analysis was based on Nielsen 2005 home scan retail data and used marital status, age, race, education, female employment status, and location in the estimations of aggregate demand elasticities. Results revealed that price and consumer income were the main determinants of demand for ice cream products. Calculated own-price elasticities indicated relatively elastic responses by consumers for all categories except for compensated bulk ice cream. All expenditure elasticities were inelastic except for bulk ice cream, and most of the ice cream categories were substitutes. Ongoing efforts to examine consumer demand for these products will assist milk producers, dairy processors and manufacturers, and dairy marketers as they face changing consumer responses to food and diet issues.

Recycling Pricing and Coordination of WEEE Dual-Channel Closed-Loop Supply Chain Considering Consumers' Bargaining.

PubMed

Zhu, Xiaodong; Wang, Jing; Tang, Juan

2017-12-15

Environmentally friendly handling and efficient recycling of waste electrical on Waste Electrical and Electronic Equipment (WEEE) have grown to be a global social problem. As holders of WEEE, consumers have a significant effect on the recycling process. A consideration of and attention to the influence of consumer behavior in the recycling process can help achieve more effective recycling of WEEE. In this paper, we built a dual-channel closed-loop supply chain model composed of manufacturers, retailers, and network recycling platforms. Based on the influence of customer bargaining behavior, we studied several different scenarios of centralized decision-making, decentralized decision-making, and contract coordination, using the Stackelberg game theory. The results show that retailers and network recycling platforms will reduce the direct recovery prices to maintain their own profit when considering the impact of consumer bargaining behavior, while remanufacturers will improve the transfer payment price for surrendering part of the profit under revenue and the expense sharing contract. Using this contract, we can achieve supply chain coordination and eliminate the effect of consumer bargaining behavior on supply chain performance. It can be viewed from the parameter sensitivity analysis that when we select the appropriate sharing coefficient, the closed-loop supply chain can achieve the same system performance under a centralized decision.

The new nordic diet--consumer expenditures and economic incentives estimated from a controlled intervention.

PubMed

Jensen, Jørgen Dejgård; Poulsen, Sanne Kellebjerg

2013-12-02

Several studies suggest that a healthy diet with high emphasis on nutritious, low-energy components such as fruits, vegetables, and seafood tends to be more costly for consumers. Derived from the ideas from the New Nordic Cuisine--and inspired by the Mediterranean diet, the New Nordic Diet (NND) has been developed as a palatable, healthy and sustainable diet based on products from the Nordic region. The objective of the study is to investigate economic consequences for the consumers of the NND, compared with an Average Danish Diet (ADD). Combine quantity data from a randomized controlled ad libitum dietary 6 month intervention for central obese adults (18-65 years) and market retail price data of the products consumed in the intervention. Adjust consumed quantities to market price incentives using econometrically estimated price elasticities. Average daily food expenditure of the ADD as represented in the unadjusted intervention (ADD-i) amounted to 36.02 DKK for the participants. The daily food expenditure in the unadjusted New Nordic Diet (NND-i) costs 44.80 DKK per day per head, and is hence about 25% more expensive than the Average Danish Diet (or about 17% when adjusting for energy content of the diet). Adjusting for price incentives in a real market setting, the estimated cost of the Average Danish Diet is reduced by 2.50 DKK (ADD-m), compared to the unadjusted ADD-i diet, whereas the adjusted cost of the New Nordic Diet (NND-m) is reduced by about 3.50 DKK, compared to the unadjusted NND-i. The distribution of food cost is however much more heterogeneous among consumers within the NND than within the ADD. On average, the New Nordic Diet is 24-25 per cent more expensive than an Average Danish Diet at the current market prices in Denmark (and 16-17 per cent, when adjusting for energy content). The relatively large heterogeneity in food costs in the NND suggests that it is possible to compose an NND where the cost exceeds that of ADD by less than the 24-25 per cent.

The new nordic diet – consumer expenditures and economic incentives estimated from a controlled intervention

PubMed Central

2013-01-01

Background Several studies suggest that a healthy diet with high emphasis on nutritious, low-energy components such as fruits, vegetables, and seafood tends to be more costly for consumers. Derived from the ideas from the New Nordic Cuisine – and inspired by the Mediterranean diet, the New Nordic Diet (NND) has been developed as a palatable, healthy and sustainable diet based on products from the Nordic region. The objective of the study is to investigate economic consequences for the consumers of the NND, compared with an Average Danish Diet (ADD). Methods Combine quantity data from a randomized controlled ad libitum dietary 6 month intervention for central obese adults (18–65 years) and market retail price data of the products consumed in the intervention. Adjust consumed quantities to market price incentives using econometrically estimated price elasticities. Results Average daily food expenditure of the ADD as represented in the unadjusted intervention (ADD-i) amounted to 36.02 DKK for the participants. The daily food expenditure in the unadjusted New Nordic Diet (NND-i) costs 44.80 DKK per day per head, and is hence about 25% more expensive than the Average Danish Diet (or about 17% when adjusting for energy content of the diet). Adjusting for price incentives in a real market setting, the estimated cost of the Average Danish Diet is reduced by 2.50 DKK (ADD-m), compared to the unadjusted ADD-i diet, whereas the adjusted cost of the New Nordic Diet (NND-m) is reduced by about 3.50 DKK, compared to the unadjusted NND-i. The distribution of food cost is however much more heterogeneous among consumers within the NND than within the ADD. Conclusion On average, the New Nordic Diet is 24–25 per cent more expensive than an Average Danish Diet at the current market prices in Denmark (and 16–17 per cent, when adjusting for energy content). The relatively large heterogeneity in food costs in the NND suggests that it is possible to compose an NND where the cost exceeds that of ADD by less than the 24–25 per cent. PMID:24294977

Teaching Consumer Price Discrimination: An Interdisciplinary Case Study for Business Law Students

ERIC Educational Resources Information Center

Edwards, Matthew A.

2014-01-01

It is generally agreed that price discrimination can, in some circumstances at least, be an extraordinarily unpopular business practice. In late 2000, customers discovered that Amazon.com was varying its prices online for the exact same products. Although the incident is almost fifteen years old, it has become the standard reference in law review…

Expert views on most suitable monetary incentives on food to stimulate healthy eating.

PubMed

Waterlander, Wilma E; Steenhuis, Ingrid H M; de Vet, Emely; Schuit, Albertine J; Seidell, Jacob C

2010-06-01

Pricing strategies are an important component in the marketing mix and may also be useful in stimulating healthier food choices. However, due to competing interests and feasibility problems, the introduction of pricing strategies is complicated. For successfully introducing food pricing strategies, it is essential to explore incentives that are not only promising but also realizable and being approved by different sectors. We aimed to assemble a list of pricing strategies by exploring expert views using the Delphi method. Subjects included experts from academia, industry, retail, agriculture, policymakers, consumers and non-governmental organizations. Data were collected in three rounds. In round one, experts designed promising pricing strategies. Based on a time-budget model incorporating Sleep, Leisure, Occupation, Transportation and Home-based activities, these strategies were in the subsequent rounds judged on several criteria. Results were analysed using median and interquartile deviations scores. We found fair consensus levels among experts and a varied list of promising pricing strategies. The panel agreed on the potential success of offering small presents, providing price-cuts on healthy foods and discounting healthier foods more frequently. Also, it was found that experts gave higher rates to pricing strategies for which the implementation responsibilities could be placed elsewhere. The resulted list of promising monetary incentives is an essential first step for the future design of pricing strategies. Following this study, it is important to determine how to make solid agreements on responsibility and implementation issues. Also, consumer perceptions regarding the proposed pricing strategies should be studied.

National Economic Policies: The Impact on Consumer Welfare. Proceedings of the American Council on Consumer Interests Annual Conference (29th, Kansas City, Missouri, March 16-19, 1983).

ERIC Educational Resources Information Center

Goebel, Karen P., Ed.

These proceedings contain the texts of the papers presented at a conference on consumer interests. Addressed in the first series of concurrent sessions are the following topics: consumers' new economic positions, consumers' choices with respect to price and quality trade-offs, time value in consumption decisions, and consumer information issues.…

Strategies to enhance price and quality competition in health care: lessons learned from tracking local markets.

PubMed

Lesser, Cara S; Ginsburg, Paul B

2006-06-01

Drawing on observations from tracking changes in local health care markets over the past ten years, this article critiques two Federal Trade Commission and Department of Justice recommendations to enhance price and quality competition. First, we take issue with the notion that consumers, acting independently, will drive greater competition in health care markets. Rather we suggest an important role remains for trusted agents who can analyze inherently complex price and quality information and negotiate on consumers' behalf. With aggregated information identifying providers who deliver cost-effective care, consumers would be better positioned to respond to financial incentives about where to seek care and thereby drive more meaningful competition among providers to reduce costs and improve quality. Second, we take issue with the FTC/DOJ recommendation to provide more direct subsidies to prevent distortions in competition. In the current political environment, it is not practical to provide direct subsidies for all of the unfunded care that exists in health care markets today; instead, some interference with competition may be necessary to protect cross subsidies. Barriers can be reduced, though, by revising pricing policies that have resulted in marked disparities in the relative profitability of different services.

CPI detailed report : data for September 1997

DOT National Transportation Integrated Search

1997-09-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in September, before seasonal adjustment, to a level of 161.2 (1982-84=100). For the 12-month period ended in September, the CPI-U increased 2.2 percent. The Consumer Pric...

CPI detailed report : data for November 1998

DOT National Transportation Integrated Search

1998-11-01

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November, before seasonal adjustment, remaining at a level of 164.0 (1982-84=100). For the 12-month period ended in November, the CPI-U increased 1.5 percent. The Consumer Pric...

CPI detailed report : data for September 1998

DOT National Transportation Integrated Search

1998-09-01

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.i percent in September, before seasonal adjustment, to a level of 163.6 (1982-84=100). For the 12-month period ended in September, the CPI-U increased 1.5 percent. The Consumer Pric...

76 FR 41726 - Reporting Ancillary Airline Passenger Revenues

Federal Register 2010, 2011, 2012, 2013, 2014

2011-07-15

... mishandled bags per unit of checked bags. Fees for checked baggage have changed consumer behavior regarding... delivery services, et cetera. The Department wants to make airline pricing more transparent to consumers..., Commercial Aviation--Consumers Could Benefit from Better Information about Airline-Imposed Fees and...

Consumers' purchase intention of organic food in China.

PubMed

Yin, Shijiu; Wu, Linhai; Du, Lili; Chen, Mo

2010-06-01

The global market for organic food has developed significantly in the past decade. The organic food industry in China is export oriented, with production growing rapidly, although the domestic market remains relatively small. This paper surveys 432 consumers from three cities in China, consequently establishing a logit model to analyse the main factors affecting consumers' choice for organic food. The result indicates that Chinese consumers' intent to purchase organic food is strongly affected by factors such as income, degree of trust in organic food, degree of acceptance of organic food price, and consumers' concern on self-health. This intent is only slightly affected by factors such as consumers' age, education level and concern about environmental protection. Based on the results, the following measures are recommended: reduce the cost of organic food through multiple channels to cut down the market price; establish and perfect the supervision system of organic food; and promote organic food through various channels. Copyright (c) 2010 Society of Chemical Industry.

Beef, Real Food for Real People: An Industrial Analysis of the Beef Industry

DTIC Science & Technology

1992-04-01

poultry . In 1989 Amrericans spent an average of $3.89 per person per week on beef products. Consumer bought $21 billion in beef products in 1989; they...or decreases in price. If the price of beef gets to high, consumers will switch their purchase to another red meat, poultry or seafood. TECHNOLOGY...The beginning of organized labor in meatpacking occurred with the -- •formation of the Amalgamated Meat Cutters and Butcher Workman of North America

EUROPE 1992: Catalyst for Change in Defense Acquisition. Report of the DSMC 1989-1990 Military Research Fellows

DTIC Science & Technology

1990-09-01

decrease in average consumer prices , to think of Europe 1992 as a starting date or a point of departure for what some have called the largest...overall The European Community’s four consumer prices . executive institutions-- Commission, Parliament, Council of Ministers and Court In 1985, the...of the draft, but also for may want to skim Chapter One and go to the extra effort he put forth to ensure that Chapter Two’s discussion on parallel

The impact of deregulation and restructuring: An empirical case study of the electric utility industry from 1998 through 2007

NASA Astrophysics Data System (ADS)

Robinson, Deborah E.

This qualitative study analyzed the residential electricity prices in the competitive U.S. electric market from 1998 to 2007. This analysis revealed that electricity restructuring has not yet resulted in lower prices for the majority of residential consumers in areas open to competition. This study reviewed actual experiences of eight states in the deregulated and restructured electricity markets: Illinois, Maine, Massachusetts, New Hampshire, Nevada, Pennsylvania, Rhode Island, and Virginia. The study began with a historical look at the deregulated and restructured electricity market from 1990 to 2007. The electricity market was deregulated to include retail competition and price caps. The results indicated that both had an effect on residential prices. This study used data from the Energy Information Administration and the 8 public utility commissions. Contrary to common expectations, residential electricity costs for consumers have increased rather than decreased.

S-shape relationship between customer satisfaction and willingness to pay premium prices for high quality cured pork products in Spain.

PubMed

Cotes-Torres, Alejandro; Muñoz-Gallego, Pablo A; Cotes-Torres, José Miguel

2012-03-01

This paper explores 2 different probabilistic models explaining willingness to pay premium prices for high-quality cured products from the swine industry. Seven cured pork products (sausage, fuet, ham, loin, shoulder, salami and pepperoni) were studied in 9 food-stores in Valladolid, Spain. Consumers of the products were interviewed (686 completed surveys). It was found by using mixed effect statistical models that the relationship between willingness to pay a premium price and customer satisfaction had nonlinear behavior, following an S-shape with inverted slope which was the first empirical evidence of this type of behavior in meat products in real market conditions. It was also established that the interaction between satisfaction and current expenditure on the product was significant and indispensable for explaining consumers' willingness to pay premium price for cured pork products. Copyright © 2011 Elsevier Ltd. All rights reserved.

Price-Transparency and Cost Accounting

PubMed Central

Eakin, Cynthia; Fischer, Katrina

2015-01-01

Health care reform is directed toward improving access and quality while containing costs. An essential part of this is improvement of pricing models to more accurately reflect the costs of providing care. Transparent prices that reflect costs are necessary to signal information to consumers and producers. This information is central in a consumer-driven marketplace. The rapid increase in high deductible insurance and other forms of cost sharing incentivizes the search for price information. The organizational ability to measure costs across a cycle of care is an integral component of creating value, and will play a greater role as reimbursements transition to episode-based care, value-based purchasing, and accountable care organization models. This article discusses use of activity-based costing (ABC) to better measure the cost of health care. It describes examples of ABC in health care organizations and discusses impediments to adoption in the United States including cultural and institutional barriers. PMID:25862425

The tobacco excise system in Indonesia: hindering effective tobacco control for health.

PubMed

Barber, Sarah; Ahsan, Abdillah

2009-07-01

Comprehensive tobacco control policies include high taxes. This paper describes the tobacco excise structure in Indonesia from 2007 to 2009. The design of the tobacco excise system contributes to neutralizing the effect of a tax increase on consumption. Wide gaps in tax rates allow for the availability of low-priced products, and consumers can substitute to cheaper products in response to price increases. There has been no systematic increase in the tax rates, which promotes affordable of tobacco products. Firms can reduce their prices at point of sale and absorb the tax increase instead of passing it onto consumers. Tiered tax rates by production scale allow firms to evade paying the highest tax brackets legally, thereby increasing profit margins while reducing prices at point of sale. Increases in tobacco excise rates in Indonesia may not have a large health impact under the current system of tax administration.

Budget Constraints Affect Male Rats' Choices between Differently Priced Commodities.

PubMed

van Wingerden, Marijn; Marx, Christine; Kalenscher, Tobias

2015-01-01

Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal consumers, as demand theory predicts different elasticities for both conditions. However, in these studies, demand elasticity was only evaluated over the entirety of choices made from a budget. As compensating budgets changes the number of attainable commodities relative to uncompensated conditions, and thus the number of choices, it remained unclear whether budget compensation has a trivial effect on demand elasticity by simply sampling from a different total number of choices or has a direct effect on consumers' sequential choice structure. If the budget context independently changes choices between commodities over and above price effects, this should become apparent when demand elasticity is assessed over choice sets of any reasonable size that are matched in choice opportunities between budget conditions. To gain more detailed insight in the sequential choice dynamics underlying differences in demand elasticity between budget conditions, we trained N=8 rat consumers to spend a daily budget by making a number of nosepokes to obtain two liquid commodities under different price regimes, in sessions with and without budget compensation. We confirmed that demand elasticity for both commodities differed between compensated and uncompensated budget conditions, also when the number of choices considered was matched, and showed that these elasticity differences emerge early in the sessions. These differences in demand elasticity were driven by a higher choice rate and an increased reselection bias for the preferred commodity in compensated compared to uncompensated budget conditions, suggesting a budget context effect on relative valuation.

Pricing strategy for aesthetic surgery: economic analysis of a resident clinic's change in fees.

PubMed

Krieger, L M; Shaw, W W

1999-02-01

The laws of microeconomics explain how prices affect consumer purchasing decisions and thus overall revenues and profits. These principles can easily be applied to the behavior aesthetic plastic surgery patients. The UCLA Division of Plastic Surgery resident aesthetics clinic recently offered a radical price change for its services. The effects of this change on demand for services and revenue were tracked. Economic analysis was applied to see if this price change resulted in the maximization of total revenues, or if additional price changes could further optimize them. Economic analysis of pricing involves several steps. The first step is to assess demand. The number of procedures performed by a given practice at different price levels can be plotted to create a demand curve. From this curve, price sensitivities of consumers can be calculated (price elasticity of demand). This information can then be used to determine the pricing level that creates demand for the exact number of procedures that yield optimal revenues. In economic parlance, revenues are maximized by pricing services such that elasticity is equal to 1 (the point of unit elasticity). At the UCLA resident clinic, average total fees per procedure were reduced by 40 percent. This resulted in a 250-percent increase in procedures performed for representative 4-month periods before and after the price change. Net revenues increased by 52 percent. Economic analysis showed that the price elasticity of demand before the price change was 6.2. After the price change it was 1. We conclude that the magnitude of the price change resulted in a fee schedule that yielded the highest possible revenues from the resident clinic. These results show that changes in price do affect total revenue and that the nature of these effects can be understood, predicted, and maximized using the tools of microeconomics.

Demand response-enabled model predictive HVAC load control in buildings using real-time electricity pricing

NASA Astrophysics Data System (ADS)

Avci, Mesut

A practical cost and energy efficient model predictive control (MPC) strategy is proposed for HVAC load control under dynamic real-time electricity pricing. The MPC strategy is built based on a proposed model that jointly minimizes the total energy consumption and hence, cost of electricity for the user, and the deviation of the inside temperature from the consumer's preference. An algorithm that assigns temperature set-points (reference temperatures) to price ranges based on the consumer's discomfort tolerance index is developed. A practical parameter prediction model is also designed for mapping between the HVAC load and the inside temperature. The prediction model and the produced temperature set-points are integrated as inputs into the MPC controller, which is then used to generate signal actions for the AC unit. To investigate and demonstrate the effectiveness of the proposed approach, a simulation based experimental analysis is presented using real-life pricing data. An actual prototype for the proposed HVAC load control strategy is then built and a series of prototype experiments are conducted similar to the simulation studies. The experiments reveal that the MPC strategy can lead to significant reductions in overall energy consumption and cost savings for the consumer. Results suggest that by providing an efficient response strategy for the consumers, the proposed MPC strategy can enable the utility providers to adopt efficient demand management policies using real-time pricing. Finally, a cost-benefit analysis is performed to display the economic feasibility of implementing such a controller as part of a building energy management system, and the payback period is identified considering cost of prototype build and cost savings to help the adoption of this controller in the building HVAC control industry.

Essays on environmental regulations in electricity markets

NASA Astrophysics Data System (ADS)

Sun, Yanming

Reducing the Greenhouse Gas pollution and promoting energy efficiency among consumers' energy use have been major public policy issues recently. Currently, both the United States and the European Union have set up explicit percentage requirements that require energy generators or consumers to undertake a certain percentage of their energy production or consumption from renewable sources. To achieve their renewable targets, the Tradable Green Certificates (TGC) system has been introduced in their electricity markets. Moreover, in order to promote energy conservation and achieve energy efficiency targets, price policies and price changes derived from environmental regulations have played a more important role in reducing electricity consumption. My research studies problems associated with these policy implementations. In Chapter 1, I analyze a competitive electricity market with two countries operated under a common TGC system. By using geometric illustrations, I compare the two countries' welfare when the renewable quota is chosen optimally under the common certificate market with three different situations. The policy recommendation is that when the value of damage parameter is sufficiently small, full integration with a TGC market is welfare superior to full integration of an all fossil-fuel based market with an optimal emissions standard. In Chapter 2, by analyzing a stylized theoretical model and numerical examples, I investigate the performance of the optimal renewables policy under full separation and full integration scenarios for two countries' electricity markets operated under TGC systems. In my third chapter, I look at residential electricity consumption responsiveness to increases of electricity price in the U.S. and the different effect of a price increase on electricity use for states of different income levels. My analysis reveals that raising the energy price in the short run will not give consumers much incentive to adjust their appliances and make energy conservation investments to reduce electricity use, while in the long run, consumers are more likely to lower their electricity consumption, facing the higher electricity price induced from regulation policies. In addition, for states of higher per capita GDP, raising the electricity price may be more effective to ensure a cut in electricity consumption.

B'More Healthy: Retail Rewards--design of a multi-level communications and pricing intervention to improve the food environment in Baltimore City.

PubMed

Budd, Nadine; Cuccia, Alison; Jeffries, Jayne K; Prasad, Divya; Frick, Kevin D; Powell, Lisa; Katz, Fred A; Gittelsohn, Joel

2015-03-24

Low-income black residents of Baltimore City have disproportionately higher rates of obesity and chronic disease than other Maryland residents. Increasing the availability and affordability of healthy food are key strategies to improve the food environment and can lead to healthier diets. This paper describes B'More Healthy: Retail Rewards (BHRR), an intervention that tests the effectiveness of performance-based pricing discounts and health communications, separately and combined, on healthy food purchasing and consumption among low-income small store customers. BHRR is 2x2 factorial design randomized controlled trial. Fifteen regular customers recruited from each of 24 participating corner stores in Baltimore City were enrolled. Food stores were randomized to 1) pricing intervention, 2) communications intervention, 3) combined intervention, or 4) control. Pricing stores were given a 10-30% price discount on selected healthier food items, such as fresh fruits, frozen vegetables, and baked chips, at the point of purchase from two food wholesale stores during the 6-month trial. Storeowners agreed to pass on the discount to the consumer to increase demand for healthy food. Communications stores received visual and interactive materials to promote healthy items, including signage, taste tests, and refrigerators. Primary outcome measures include consumer food purchasing and associated psychosocial variables. Secondary outcome measures include consumer food consumption, store sales, and associated storeowner psychosocial factors. Process evaluation was monitored throughout the trial at wholesaler, small store, and consumer levels. This is the first study to test the impact of performance-based pricing and communications incentives in small food stores, an innovative strategy to encourage local wholesalers and storeowners to share responsibility in creating a healthier food supply by stocking, promoting, and reducing costs of healthier foods in their stores. Local food wholesalers were involved in a top-down, participatory approach to develop and implement an effective and sustainable program. This study will provide evidence on the effectiveness of price incentives and health communications, separately and combined, among a low-income urban U.S. ClinicalTrials.gov: NCT02279849 (2/18/2014).

An annual quasidifference approach to water price elasticity

NASA Astrophysics Data System (ADS)

Bell, David R.; Griffin, Ronald C.

2008-08-01

The preferred price specification for retail water demand estimation has not been fully settled by prior literature. Empirical consistency of price indices is necessary to enable testing of competing specifications. Available methods of unbiasing the price index are summarized here. Using original rate information from several hundred Texas utilities, new indices of marginal and average price change are constructed. Marginal water price change is shown to explain consumption variation better than average water price change, based on standard information criteria. Annual change in quantity consumed per month is estimated with differences in climate variables and the new quasidifference marginal price index. As expected, the annual price elasticity of demand is found to vary with daily high and low temperatures and the frequency of precipitation.

16 CFR 700.11 - Written warranty, service contract, and insurance distinguished for purposes of compliance under...

Code of Federal Regulations, 2010 CFR

2010-01-01

... the consumer product and the consumer must not give any consideration beyond the purchase price of the consumer product in order to benefit from the agreement. It is not a requirement of the Act that an... agreements which may provide similar coverage of consumer products, the written warranty, and the service...

Sunscreen Product Performance and Other Determinants of Consumer Preferences.

PubMed

Xu, Shuai; Kwa, Michael; Agarwal, Ashwin; Rademaker, Alfred; Kundu, Roopal V

2016-08-01

Sunscreen use is a modifiable behavior that can help reduce the risk for skin cancer, prevent sunburns, mitigate photoaging, and treat photosensitive dermatoses. A better understanding of consumer sunscreen preferences would inform dermatologists in their own recommendations. To determine the characteristics and the most commonly cited positive and negative features of highly rated sunscreens described by consumers. The top 1 percentile of sunscreen products on Amazon.com as of December 2015 was selected according to average consumer review (≥4 stars) and the highest number of consumer reviews. Descriptive data for each product were collected from the product page and manufacturer claims. The top 5 "most helpful" reviews (positive and critical) were analyzed and coded by a consensus qualitative coding scheme, which included positive and negative descriptors in 6 major categories according to consumer comments: affordability, cosmetic elegance, separate ratings, product ingredients, product performance, and skin compatibility. The Kruskal-Wallis test was performed to determine whether characteristics of each product (eg, American Academy of Dermatology [AAD] criteria, sun protection factor [SPF], or vehicle) could be used to predict price per ounce. The number (percentage) of comments categorized by major themes and subthemes was determined. Illustrative consumer comments were also collected. There were 6500 products categorized as sunscreens in the Amazon.com, online catalog. Of the 65 products evaluated, the median price per ounce was $3.32 (range, $0.68-$23.47). Of products, 40% (26 of 65) did not adhere to AAD guidelines (broad spectrum, SPF ≥30, and water resistant) for sunscreens. Vehicles, AAD, and sunscreen type predicted a higher price per ounce. Cosmetic elegance was the most cited positive feature (198 of 325 [61%] comments) followed by product performance (146 of 325 [45%] comments) and skin type compatibility (78 of 325 [24%] comments). In this cohort of highly rated sunscreen products, a significant proportion did not adhere to AAD guidelines, mostly attributable to a lack of water resistance. The most striking variation in this cohort was price, which varied by more than 3000%. Dermatologists should balance the importance of cosmetic elegance, cost, and AAD guidelines for sun protection in making their recommendations to consumers.

Determinant Behavior Characteristics of Older Consumers.

ERIC Educational Resources Information Center

Tongren, Hale N.

1988-01-01

The behavior variables in 67 studies of marketing and consumer behavior were analyzed; significant variables relevant to satisfying the needs of older consumers were identified. Meta analysis revealed such factors as price consciousness, use of information sources, habituated shopping, and age-related concerns useful in predicting the consumer…

77 FR 22200 - Rescission of Rules

Federal Register 2010, 2011, 2012, 2013, 2014

2012-04-13

... ``Identity Theft Rules,'' 16 CFR part 681, and its rules governing ``Disposal of Consumer Report Information...; Duties of Creditors Regarding Risk-Based Pricing, 16 CFR part 640; Duties of Users of Consumer Reports... collection, assembly, and use of consumer report information and provides the framework for the credit...

Credence quality coordination and consumers' willingness-to-pay for certified halal labelled meat.

PubMed

Verbeke, Wim; Rutsaert, Pieter; Bonne, Karijn; Vermeir, Iris

2013-12-01

This paper reports on halal credence quality coordination and Muslim consumers' willingness to buy and pay for certified halal labelled meat at the supermarket and the Islamic butcher. Cross-sectional data were collected through a survey with 202 Muslim consumers in Belgium. Findings indicate that more acculturated and female consumers are more in favour of purchasing certified halal labelled meat in a supermarket. Important conditions are that supermarkets can provide a guarantee of separating halal from non-halal meat and of the organisation of adequate verification and control. Results further show that more Muslim consumers are willing to pay a price premium (of 13% on average) for halal labelled meat at the Islamic butcher shop than at the supermarket. The higher the importance attached to a certified halal label and the more distrust in the actual halal meat status, the higher the likelihood that a Muslim consumer is willing to pay a higher price for certified halal labelled meat at the Islamic butcher shop. Gender and generation determine the actual premium Muslim consumers are willing to pay. Copyright © 2013 Elsevier Ltd. All rights reserved.

Service quality and asymmetric information in the regulation of monopolies: The Chilean electricity distribution industry

NASA Astrophysics Data System (ADS)

Melo, Oscar Alfredo

This study is an enquiry about the role that service quality, asymmetric information, scope of regulation and regulator's preferences play in the regulation of monopolies, with an application to the case of the Chilean electricity distribution industry. In Chapter 1, I present the problem of regulating a monopolist and introduce the special conditions that the electricity sector has. Later I discuss the main characteristics of the electricity system that operates in Chile. The literature on regulation is reviewed in Chapter 2. A special emphasis is given to the problems of quality and information, and the lack of its proper joint treatment. In Chapter 3, I develop four theoretical models of regulation that explicitly consider the regulation of price and quality versus price-only regulation, and a symmetric versus asymmetric information structure where only the regulator knows its true costs. In these models, I also consider the effect of a regulator that may have a preference between consumers and the regulated monopolistic firms. I conclude that with symmetric information and independent of the scope of regulation, having a regulator that prefers consumers or producers does not affect the efficiency of the outcome. I also show that the regulator's inability to set quality, thus regulating only price, leads to an inefficient outcome, away from the first best solution that can be achieved by regulating both price and quality, even with asymmetric information, as long as the regulator does not have a "biased" preference for consumers or the monopolistic producers. If the regulator has a "bias," then the equilibrium will be inefficient with asymmetric information. But the effect on equilibrium price and quality depends on the direction of the effect of quality on the marginal effect of price in demand. More importantly, no closed-form solution can be derived unless drastic simplifications are made. To further investigate the outcome of the models, I use numerical simulation in Chapter 4, assuming flexible functional forms and alternative sets of parameters that represent the scenarios of interest. The results show that when the regulator is biased toward consumers (producers), symmetric information models yield higher (lower) quality except for the most efficient firm. Chapter 5 uses data from the electricity sector in Chile and estimates the price and quality elasticity of demand and finds a positive effect of quality on the price elasticity of demand.

Prices Paid by Colleges Rise 3.6 Percent, Trailing Consumer Price Index

ERIC Educational Resources Information Center

Blumenstyk, Goldie

2008-01-01

This article reports that the Higher Education Price Index (HEPI), a widely used measure of colleges' costs, rose by 3.6 percent for the 2008 fiscal year, which ended on June 30. But even as they reported the good news of that moderate increase, experts at the Commonfund Institute who maintain the index noted that broader economic trends could…

Modeling agricultural commodity prices and volatility in response to anticipated climate change

NASA Astrophysics Data System (ADS)

Lobell, D. B.; Tran, N.; Welch, J.; Roberts, M.; Schlenker, W.

2012-12-01

Food prices have shown a positive trend in the past decade, with episodes of rapid increases in 2008 and 2011. These increases pose a threat to food security in many regions of the world, where the poor are generally net consumers of food, and are also thought to increase risks of social and political unrest. The role of global warming in these price reversals have been debated, but little quantitative work has been done. A particular challenge in modeling these effects is that they require understanding links between climate and food supply, as well as between food supply and prices. Here we combine the anticipated effects of climate change on yield levels and volatility with an empirical competitive storage model to examine how expected climate change might affect prices and social welfare in the international food commodity market. We show that price level and volatility do increase over time in response to decreasing yield, and increasing yield variability. Land supply and storage demand both increase, but production and consumption continue to fall leading to a decrease in consumer surplus, and a corresponding though smaller increase in producer surplus.

Quantity discounts on a virtual good: The results of a massive pricing experiment at King Digital Entertainment

PubMed Central

Levitt, Steven D.; List, John A.; Neckermann, Susanne; Nelson, David

2016-01-01

We report on a natural field experiment on quantity discounts involving more than 14 million consumers. Implementing price reductions ranging from 9–70% for large purchases, we found remarkably little impact on revenue, either positively or negatively. There was virtually no increase in the quantity of customers making a purchase; all the observed changes occurred for customers who already were buyers. We found evidence that infrequent purchasers are more responsive to discounts than frequent purchasers. There was some evidence of habit formation when prices returned to pre-experiment levels. There also was some evidence that consumers contemplating small purchases are discouraged by the presence of extreme quantity discounts for large purchases. PMID:27382146

The effect of prices on nutrition: Comparing the impact of product- and nutrient-specific taxes.

PubMed

Harding, Matthew; Lovenheim, Michael

2017-05-01

This paper provides an analysis of the role of prices in determining food purchases and nutrition using very detailed transaction-level observations for a large, nationally-representative sample of US consumers over the period 2002-2007. Using product-specific nutritional information, we develop a new method of partitioning the product space into relevant nutritional clusters that define a set of nutritionally-bundled goods, which parsimoniously characterize consumer choice sets. We then estimate a large utility-derived demand system over this joint product-nutrient space that allows us to calculate price and expenditure elasticities. Using our structural demand estimates, we simulate the role of product taxes on soda, sugar-sweetened beverages, packaged meals, and snacks, and nutrient taxes on fat, salt, and sugar. We find that a 20% nutrient tax has a significantly larger impact on nutrition than an equivalent product tax, due to the fact that these are broader-based taxes. However, the costs of these taxes in terms of consumer utility are only about 70 cents per household per day. A sugar tax in particular is a powerful tool to induce healthier nutritive bundles among consumers. Copyright © 2017 Elsevier B.V. All rights reserved.

Reference Pricing, Consumer Cost-Sharing, and Insurer Spending for Advanced Imaging Tests.

PubMed

Robinson, James C; Whaley, Christopher; Brown, Timothy T

2016-12-01

Fees charged for similar imaging tests often vary dramatically within the same market, leading to wide variation in insurer spending and consumer cost-sharing. Reference pricing is an insurance design that offers good coverage to patients up to a defined contribution limit but requires the patients who select high-priced facilities to pay the remainder out of pocket. To measure the association between implementation of reference pricing and patient choice of facility, test prices, out-of-pocket spending, and insurer spending for advanced imaging (CT and MRI) procedures. Difference-in-differences multivariable analysis of insurance claims data. Study included 4751 employees of a national grocery chain (treatment group) and 23,428 enrollees in the nation's largest private insurance plan (comparison group) that used CT or MRI tests between 2010 and 2013. Patient choice of facility, price paid per test, patient out-of-pocket cost-sharing, and employer spending. Compared with trends in prices paid by insurance enrollees not subject to reference pricing, and after adjusting for characteristics of tests and patients, implementation of reference pricing was associated with a 12.5% (95% CI, -25.0%, 2.1%) reduction in average price paid per test by the end of the second full year of the program for CT scans and a 10.5% (95% CI, -16.9%, 3.6%) for MRIs. Out-of-pocket cost-sharing by patients declined by $71,508 (13.8%). The savings accruing to employees amounted to 45.5% of total savings from reference pricing, with the remainder accruing to the employer. Implementation of reference pricing led to reductions in payments by both employer and employees.

Tiered co-payments, pricing, and demand in reference price markets for pharmaceuticals.

PubMed

Herr, Annika; Suppliet, Moritz

2017-12-01

Health insurance companies curb price-insensitive behavior and the moral hazard of insureds by means of cost-sharing, such as tiered co-payments or reference pricing in drug markets. This paper evaluates the effect of price limits - below which drugs are exempt from co-payments - on prices and on demand. First, using a difference-in-differences estimation strategy, we find that the new policy decreases prices by 5 percent for generics and increases prices by 4 percent for brand-name drugs in the German reference price market. Second, estimating a nested-logit demand model, we show that consumers appreciate co-payment exempt drugs and calculate lower price elasticities for brand-name drugs than for generics. This explains the different price responses of brand-name and generic drugs and shows that price-related co-payment tiers are an effective tool to steer demand to low-priced drugs. Copyright © 2017 Elsevier B.V. All rights reserved.

Policy-relevant behaviours predict heavier drinking and mediate the relationship with age, gender and education status: Analysis from the International Alcohol Control study.

PubMed

Casswell, Sally; Huckle, Taisia; Wall, Martin; Parker, Karl; Chaiyasong, Surasak; Parry, Charles D H; Viet Cuong, Pham; Gray-Phillip, Gaile; Piazza, Marina

2018-02-21

To investigate behaviours related to four alcohol policy variables (policy-relevant behaviours) and demographic variables in relation to typical quantities of alcohol consumed on-premise in six International Alcohol Control study countries. General population surveys with drinkers using a comparable survey instrument and data analysed using path analysis in an overall model and for each country. typical quantities per occasion consumed on-premise; gender, age; years of education, prices paid, time of purchase, time to access alcohol and liking for alcohol advertisements. In the overall model younger people, males and those with fewer years of education consumed larger typical quantities. Overall lower prices paid, later time of purchase and liking for alcohol ads predicted consuming larger typical quantities; this was found in the high-income countries, less consistently in the high-middle-income countries and not in the low middle-income country. Three policy-relevant behaviours (prices paid, time of purchase, liking for alcohol ads) mediated the relationships between age, gender, education and consumption in high-income countries. International Alcohol Control survey data showed a relationship between policy-relevant behaviours and typical quantities consumed and support the likely effect of policy change (trading hours, price and restrictions on marketing) on heavier drinking. The path analysis also revealed policy-relevant behaviours were significant mediating variables between the effect of age, gender and educational status on consumption. However, this relationship is clearest in high-income countries. Further research is required to understand better how circumstances in low-middle-income countries impact effects of policies. © 2018 The Authors Drug and Alcohol Review published by John Wiley & Sons Australia, Ltd on behalf of Australasian Professional Society on Alcohol and other Drugs.

Switching insurer in the Irish voluntary health insurance market: determinants, incentives, and risk equalization.

PubMed

Keegan, Conor; Teljeur, Conor; Turner, Brian; Thomas, Steve

2016-09-01

The determinants of consumer mobility in voluntary health insurance markets providing duplicate cover are not well understood. Consumer mobility can have important implications for competition. Consumers should be price-responsive and be willing to switch insurer in search of the best-value products. Moreover, although theory suggests low-risk consumers are more likely to switch insurer, this process should not be driven by insurers looking to attract low risks. This study utilizes data on 320,830 VHI healthcare policies due for renewal between August 2013 and June 2014. At the time of renewal, policyholders were categorized as either 'switchers' or 'stayers', and policy information was collected for the prior 12 months. Differences between these groups were assessed by means of logistic regression. The ability of Ireland's risk equalization scheme to account for the relative attractiveness of switchers was also examined. Policyholders were price sensitive (OR 1.052, p < 0.01), however, price-sensitivity declined with age. Age (OR 0.971; p < 0.01) and hospital utilization (OR 0.977; p < 0.01) were both negatively associated with switching. In line with these findings, switchers were less costly than stayers for the 12 months prior to the switch/renew decision for single person (difference in average cost = €540.64) and multiple-person policies (difference in average cost = €450.74). Some cost differences remain for single-person policies following risk equalization (difference in average cost = €88.12). Consumers appear price-responsive, which is important for competition provided it is based on correct incentives. Risk equalization payments largely eliminated the profitable status of switchers, although further refinements may be required.

Essays in applied microeconomics

NASA Astrophysics Data System (ADS)

Wang, Xiaoting

In this dissertation I use Microeconomic theory to study firms' behavior. Chapter One introduces the motivations and main findings of this dissertation. Chapter Two studies the issue of information provision through advertisement when markets are segmented and consumers' price information is incomplete. Firms compete in prices and advertising strategies for consumers with transportation costs. High advertising costs contribute to market segmentation. Low advertising costs promote price competition among firms and improves consumer welfare. Chapter Three also investigates market power as a result of consumers' switching costs. A potential entrant can offer a new product bundled with an existing product to compensate consumers for their switching cost. If the primary market is competitive, bundling simply plays the role of price discrimination, and it does not dominate unbundled sales in the process of entry. If the entrant has market power in the primary market, then bundling also plays the role of leveraging market power and it dominates unbundled sales. The market for electric power generation has been opened to competition in recent years. Chapter Four looks at issues involved in the deregulated electricity market. By comparing the performance of the competitive market with the social optimum, we identify the conditions under which market equilibrium generates socially efficient levels of electric power. Chapter Two to Four investigate the strategic behavior among firms. Chapter Five studies the interaction between firms and unemployed workers in a frictional labor market. We set up an asymmetric job auction model, where two types of workers apply for two types of job openings by bidding in auctions and firms hire the applicant offering them the most profits. The job auction model internalizes the determination of the share of surplus from a match, therefore endogenously generates incentives for an efficient division of the matching surplus. Microeconomic foundation for competitive auctions is also discussed in this chapter.

Global integration of European tuna markets

NASA Astrophysics Data System (ADS)

Jiménez-Toribio, Ramòn; Guillotreau, Patrice; Mongruel, Rémi

2010-07-01

This paper evaluates the degree of integration between the world market and the major European marketplaces of frozen and canned tuna through both vertical and horizontal price relationships. Spatial linkages are investigated horizontally in order to estimate the connection between the European market and the world-wide market on the primary stage of the value chain. One of the key results is the high level of market integration at the ex-vessel stage, and the price leadership of yellowfin tuna over skipjack tuna. The same approach is applied at the ex-factory level. Basically, the European market for final goods appears to be segmented between the Northern countries consuming low-priced canned skipjack tuna imported from Asia (mainly Thailand) and the Southern countries (Italy, Spain) processing and importing yellowfin-based products sold at higher prices. France appears to be an intermediate market where both products are consumed. The former market is found to be well integrated to the world market and can be considered to be competitive, but there is a suspicion of market power being exercised on the latter. Price relationships are therefore tested vertically between the price of frozen tuna paid by the canneries and the price of canned fish in both Italy and France. The two species show an opposite pattern in prices transmission along the value chain: price changes along the chain are far better transmitted for the “global” skipjack tuna than for the more “European” yellowfin tuna. The results are discussed, along with their implications for the fishing industry.

The role of product design in consumers' choices in the individual insurance market.

PubMed

Marquis, M Susan; Buntin, Melinda Beeuwkes; Escarce, José J; Kapur, Kanika

2007-12-01

To evaluate the role of health plan benefit design and price on consumers' decisions to purchase health insurance in the nongroup market and their choice of plan. Administrative data from the three largest nongroup insurers in California and survey data about those insured in the nongroup market and the uninsured in California. We fit a nested logit model to examine the effects of plan characteristics on consumer choice while accounting for substitutability among certain groups of products. Product choice is quite sensitive to price. A 10 percent decrease in the price of a product would increase its market share by about 20 percent. However, a 10 percent decrease in prices of all products would only increase overall market participation by about 4 percent. Changes in the generosity of coverage will also affect product choice, but have only small effects on overall participation. A 20 percent decrease in the deductible or maximum out-of-pocket payment of all plans would increase participation by about 0.3-0.5 percent. Perceived information search costs and other nonprice barriers have substantial effects on purchase of nongroup coverage. Modest subsidies will have small effects on purchase in the nongroup market. New product designs with higher deductibles are likely to be more attractive to healthy purchasers, but the new benefit designs are likely to have only small effects on market participation. In contrast, consumer education efforts have a role to play in helping to expand coverage.

Addendum: Are Supermarket Advertisements Designed to Deceive Consumers?

ERIC Educational Resources Information Center

Mason, J. Barry; Wilkinson, J. B.

1978-01-01

Assesses the magnitude and incidence of experimentally determined deceptive advertising decisions in supermarket advertisements. Shows that many reduced-priced items are displayed less prominently, lessening a consumer's ability to show economically. (RL)

Physicians' and consumers' conflicting attitudes toward health care advertising.

PubMed

Krohn, F B; Flynn, C

2001-01-01

The purpose of this paper is to explore the conflicting attitudes held by physicians and health care consumers toward health care advertising in an attempt to resolve the question. The paper introduces the differing positions held by the two groups. The rationale behind physicians' attitudes is then presented that advertising can be unethical, misleading, deceptive, and lead to unnecessary price increases. They believe that word-of-mouth does and should play the major role in attracting new patients. The opposite view of consumers is then presented which contends that health care advertising leads to higher consumer awareness of services, better services, promotes competitive pricing, and lowers rather than raises health care costs. The final section of the paper compares the arguments presented and concludes that health care advertising clearly has a place in the health care industry.

77 FR 65999 - Assessments, Large Bank Pricing

Federal Register 2010, 2011, 2012, 2013, 2014

2012-10-31

... period for PD estimation, as opposed to a longer history, to capture the consumer behavior that generated... default behavior of consumers during a period of economic stress, the default rate is to be calculated as... consumer behavior that affect the riskiness of different product types. To ensure that the PD methodology...

Effects of species information and furniture price on consumer preferences for selected woods

Treesearch

Matthew Bumgardner; David Nicholls; Geoffrey Donovan

2007-01-01

Changing consumer tastes and species availability are influencing the design and manufacture of hardwood products. In addition, the globalization of wood product markets is exposing U.S. consumers to new species. This research evaluates consumer preferences for six domestic wood species--three from the eastern United States and three from the western United States. The...

Agribusiness Group Paper

DTIC Science & Technology

2002-01-01

obtain competitive advantage, agribusinesses must focus on price and value- added products that meet consumer preferences and desires. In today’s global...Driven Market Increasingly, consumers define the food market. Changes in consumer preferences have resulted in declining markets for certain...concentrated to better meet consumer preferences and the demand for food. 8 CHALLENGES While the United States is the world leader in agribusiness, it

Pharmaceutical companies' variation of drug prices within and among countries can improve long-term social well-being.

PubMed

Lichtenberg, Frank R

2011-08-01

Drug prices vary considerably across and within countries. On average, pharmaceutical companies charge lower prices in low-income countries than in industrialized nations. Manufacturers' ability to price products differently for different markets--a practice known as price discrimination--increases their profits overall. But it is also likely to result in greater investment in research and development, and therefore in more new drugs on the market. Although reducing price discrimination in order to cut costs might benefit consumers in the short run, it would harm them in the long run by reducing the number of new drugs developed.

Do consumers of manufactured cigarettes respond differently to price changes compared with their Roll-Your-Own counterparts? Evidence from New Zealand.

PubMed

Tait, Peter; Rutherford, Paul; Saunders, Caroline

2015-05-01

Price-based mechanisms are an important tobacco cessation policy tool in New Zealand (NZ) and so measurement of smokers' reaction to price changes is crucial in determining efficacy of this approach. Although approximately two-thirds of NZ tobacco demand is for manufactured cigarettes (MC) and one-third is for Roll-Your-Own (RYO) tobacco, previous price elasticity estimates have ignored differences between RYO tobacco and MC consumers. We employ a seemingly unrelated regression econometric approach applied to quarterly data over the period 1991-2011 to estimate price elasticities of demand separately for MC and RYO tobacco. Estimate of price elasticity of demand for MC is -1.033, and -0.441 for RYO tobacco. RYO tobacco is an inferior good; a 1% increase in average weekly income is associated with a 0.8% reduction in demand. RYO tobacco is a substitute for MC; a 1% increase in the price of MC is associated with a 0.867% increase in demand for RYO tobacco. There is significantly different price responsiveness across the two tobacco product types. MC smokers react far more strongly to price increases compared with RYO tobacco smokers. These findings suggest that pricing mechanisms may be more effective for reducing MC demand than for RYO tobacco. However, substitution between products means that this pricing effect is muted by the uptake of RYO tobacco use. Cessation policy specific to RYO use should be designed to target this growing group. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

Mind your pricing cues.

PubMed

Anderson, Eric; Simester, Duncan

2003-09-01

For most of the items they buy, consumers don't have an accurate sense of what the price should be. Ask them to guess how much a four-pack of 35-mm film costs, and you'll get a variety of wrong answers: Most people will underestimate; many will only shrug. Research shows that consumers' knowledge of the market is so far from perfect that it hardly deserves to be called knowledge at all. Yet people happily buy film and other products every day. Is this because they don't care what kind of deal they're getting? No. Remarkably, it's because they rely on retailers to tell them whether they're getting a good price. In subtle and not-so-subtle ways, retailers send signals to customers, telling them whether a given price is relatively high or low. In this article, the authors review several common pricing cues retailers use--"sale" signs, prices that end in 9, signpost items, and price-matching guarantees. They also offer some surprising facts about how--and how well--those cues work. For instance, the authors' tests with several mail-order catalogs reveal that including the word "sale" beside a price can increase demand by more than 50%. The practice of using a 9 at the end of a price to denote a bargain is so common, you'd think customers would be numb to it. Yet in a study the authors did involving a women's clothing catalog, they increased demand by a third just by changing the price of a dress from $34 to $39. Pricing cues are powerful tools for guiding customers' purchasing decisions, but they must be applied judiciously. Used inappropriately, the cues may breach customers' trust, reduce brand equity, and give rise to lawsuits.

Reference pricing with endogenous generic entry.

PubMed

Brekke, Kurt R; Canta, Chiara; Straume, Odd Rune

2016-12-01

Reference pricing intends to reduce pharmaceutical expenditures by increasing demand elasticity and stimulating generic competition. We develop a novel model where a brand-name producer competes in prices with several generics producers in a market with brand-biased and brand-neutral consumers. Comparing with coinsurance, we show that reference pricing, contrary to policy makers' intentions, discourages generic entry, as it induces the brand-name producer to price more aggressively. Thus, the net effect of reference pricing on drug prices is ambiguous, implying that reference pricing can be counterproductive in reducing expenditures. However, under price regulation, we show that reference pricing may stimulate generic entry, since a binding price cap weakens the aggressive price response by the brand-name producer. This may explain mixed empirical results on the competitive effects of reference pricing. Finally, we show that reference pricing may be welfare improving when accounting for brand preferences despite its adverse effects on entry and prices. Copyright © 2016 Elsevier B.V. All rights reserved.

The price of alcohol: a consideration of contextual factors.

PubMed

Treno, Andrew J; Gruenewald, Paul J; Wood, Darryl S; Ponicki, William R

2006-10-01

The current study considers the determinants of prices charged for alcoholic beverages by on-premise and off-premise outlets in Alaska. Alcohol outlet densities, a surrogate measure for local retail competition, are expected to be negatively associated with prices while costs associated with distribution are expected to be positively related to prices. Community demographic and economic characteristics may affect observed local prices via the level of demand, retail costs borne by retailers, or the quality of brands offered for sale. The core data for these analyses came from a telephone survey of Alaskan retail establishments licensed to serve alcohol. This survey utilized computer-assisted telephone interviewing (CATI) techniques to collect alcohol-pricing information from on-premise (i.e., establishments where alcohol is consumed at the point of purchase such as bars and restaurants) and off-premise (i.e., establishments such as grocery stores and convenience markets where consumption occurs in other locations) alcohol retailers throughout the state of Alaska. Price estimates were developed for each beverage-type based on alcohol content. Separate regression analyses were used to model each of the 8 price indices (on-premise and off-premise measures for beer, spirits, wine, and the average price across beverage types). All regressions also controlled for a set of zip-code level indicators of community economic and demographic characteristics based on census data. Outlet density per roadway mile was unrelated to price for both on- and off-premise establishments, either across or between beverage types. In contrast, overall distribution costs did appear to be related to alcohol price. The demographic and economic variables, as a group, were significantly related to observed prices. More attention needs to be directed to the manner in which sellers and buyers behave relative to alcoholic beverages. Alcohol demand remains responsive to prices; yet, consumers have considerable latitude in determining the price that they pay for alcohol.

Consumer evaluations of processed meat products reformulated to be healthier - A conjoint analysis study.

PubMed

Shan, Liran C; De Brún, Aoife; Henchion, Maeve; Li, Chenguang; Murrin, Celine; Wall, Patrick G; Monahan, Frank J

2017-09-01

Recent innovations in processed meats focus on healthier reformulations through reducing negative constituents and/or adding health beneficial ingredients. This study explored the influence of base meat product (ham, sausages, beef burger), salt and/or fat content (reduced or not), healthy ingredients (omega 3, vitamin E, none), and price (average or higher than average) on consumers' purchase intention and quality judgement of processed meats. A survey (n=481) using conjoint methodology and cluster analysis was conducted. Price and base meat product were most important for consumers' purchase intention, followed by healthy ingredient and salt and/or fat content. In reformulation, consumers had a preference for ham and sausages over beef burgers, and for reduced salt and/or fat over non reduction. In relation to healthy ingredients, omega 3 was preferred over none, and vitamin E was least preferred. Healthier reformulations improved the perceived healthiness of processed meats. Cluster analyses identified three consumer segments with different product preferences. Copyright © 2017 Elsevier Ltd. All rights reserved.

Consumer preferences and brand equity measurement of Spanish national daily newspapers: a conjoint analysis approach.

PubMed

Varela Mallou, J; Rial Boubeta, A; Braña Tobío, T

2001-05-01

Brand is a product attribute that, for many types of goods or services, makes a major contribution to consumer preferences. Conjoint analysis is a useful technique for the assessment of brand values for a given consumer or group of consumers. In this paper, an application of conjoint analysis to the estimation of brand values in the Spanish daily newspaper market is reported. Four newspaper attributes were considered: brand (i.e., newspaper name), price (0.60, 1.05, or 1.50 euros), Sunday supplement (yes/no), and daily pullout (yes/no). A total of 510 regular readers of the national press, stratified by age and sex, were asked to rank 16 profiles representing an orthogonal fraction of the possible attribute-level combinations. Brand was by far the most important attribute, whereas price had negligible effect. More generally, the results confirm the utility of conjoint analysis for assessing brand equity in the newspaper market and for estimating the relative importance of the various attributes to different subgroups of consumers.

Explaining EIA Crude Oil and Petroleum Product Price Data and Comparing with Other U.S. Government Data Sources, 2001 to 2010

EIA Publications

2012-01-01

This article describes the sampling frames and basic data collection methods for petroleum price data reported by Energy Information Administration (EIA) and other Government agencies. In addition, it compares and contrasts annual average prices reported by EIA with comparable prices from the Bureau of Labor Statistics (BLS) CPI (Consumer Price Indexes) for the retail prices of residential No. 2 distillate, on-highway diesel fuel and motor gasoline (all grades.) Further, it compares refiner wholesale/resale prices for No. 2 fuel oil, No. 2 diesel fuel, motor gasoline (all grades,) kerosene-type jet fuel and residual fuel oil reported by EIA with comparable prices from the BLS PPI (Producer Price Index.) A discussion of the various crude oil prices and spot/futures prices published by EIA and other Government agencies is also included in the article.

Dynamic Pricing in Electronic Commerce Using Neural Network

NASA Astrophysics Data System (ADS)

Ghose, Tapu Kumar; Tran, Thomas T.

In this paper, we propose an approach where feed-forward neural network is used for dynamically calculating a competitive price of a product in order to maximize sellers’ revenue. In the approach we considered that along with product price other attributes such as product quality, delivery time, after sales service and seller’s reputation contribute in consumers purchase decision. We showed that once the sellers, by using their limited prior knowledge, set an initial price of a product our model adjusts the price automatically with the help of neural network so that sellers’ revenue is maximized.

Energy efficiency standards and innovation

NASA Astrophysics Data System (ADS)

Morrison, Geoff

2015-01-01

Van Buskirk et al (2014 Environ. Res. Lett. 9 114010) demonstrate that the purchase price, lifecycle cost and price of improving efficiency (i.e. the incremental price of efficiency gain) decline at an accelerated rate following the adoption of the first energy efficiency standards for five consumer products. The authors show these trends using an experience curve framework (i.e. price/cost versus cumulative production). While the paper does not draw a causal link between standards and declining prices, they provide suggestive evidence using markets in the US and Europe. Below, I discuss the potential implications of the work.

Price elasticity of the demand for sugar sweetened beverages and soft drinks in Mexico.

PubMed

Colchero, M A; Salgado, J C; Unar-Munguía, M; Hernández-Ávila, M; Rivera-Dommarco, J A

2015-12-01

A large and growing body of scientific evidence demonstrates that sugar drinks are harmful to health. Intake of sugar-sweetened beverages (SSB) is a risk factor for obesity and type 2 diabetes. Mexico has one of the largest per capita consumption of soft drinks worldwide and high rates of obesity and diabetes. Fiscal approaches such as taxation have been recommended as a public health policy to reduce SSB consumption. We estimated an almost ideal demand system with linear approximation for beverages and high-energy food by simultaneous equations and derived the own and cross price elasticities for soft drinks and for all SSB (soft drinks, fruit juices, fruit drinks, flavored water and energy drinks). Models were stratified by income quintile and marginality index at the municipality level. Price elasticity for soft drinks was -1.06 and -1.16 for SSB, i.e., a 10% price increase was associated with a decrease in quantity consumed of soft drinks by 10.6% and 11.6% for SSB. A price increase in soft drinks is associated with larger quantity consumed of water, milk, snacks and sugar and a decrease in the consumption of other SSB, candies and traditional snacks. The same was found for SSB except that an increase in price of SSB was associated with a decrease in snacks. Higher elasticities were found among households living in rural areas (for soft drinks), in more marginalized areas and with lower income. Implementation of a tax to soft drinks or to SSB could decrease consumption particularly among the poor. Substitutions and complementarities with other food and beverages should be evaluated to assess the potential impact on total calories consumed. Copyright © 2015 The Authors. Published by Elsevier B.V. All rights reserved.

Switching benefits and costs in competitive health insurance markets: A conceptual framework and empirical evidence from the Netherlands.

PubMed

Duijmelinck, Daniëlle M I D; Mosca, Ilaria; van de Ven, Wynand P M M

2015-05-01

Competitive health insurance markets will only enhance cost-containment, efficiency, quality, and consumer responsiveness if all consumers feel free to easily switch insurer. Consumers will switch insurer if their perceived switching benefits outweigh their perceived switching costs. We developed a conceptual framework with potential switching benefits and costs in competitive health insurance markets. Moreover, we used a questionnaire among Dutch consumers (1091 respondents) to empirically examine the relevance of the different switching benefits and costs in consumers' decision to (not) switch insurer. Price, insurers' service quality, insurers' contracted provider network, the benefits of supplementary insurance, and welcome gifts are potential switching benefits. Transaction costs, learning costs, 'benefit loss' costs, uncertainty costs, the costs of (not) switching provider, and sunk costs are potential switching costs. In 2013 most Dutch consumers switched insurer because of (1) price and (2) benefits of supplementary insurance. Nearly half of the non-switchers - and particularly unhealthy consumers - mentioned one of the switching costs as their main reason for not switching. Because unhealthy consumers feel not free to easily switch insurer, insurers have reduced incentives to invest in high-quality care for them. Therefore, policymakers should develop strategies to increase consumer choice. Copyright © 2014 Elsevier Ireland Ltd. All rights reserved.

Choices in the Marketplace: A Basic Unit on Consumer Economics.

ERIC Educational Resources Information Center

Heyne, Paul; Stevahn, Laurie

Consumer decision-making and its consequences for individual consumers and societal groups are examined in this economic unit for secondary school students. Seven lessons focus on developing an understanding of the concepts of scarcity, supply and demand, resources, choice, price, and interdependence and on fostering an economic way of thinking.…

Profile and effects of consumer involvement in fresh meat.

PubMed

Verbeke, Wim; Vackier, Isabelle

2004-05-01

This study investigates the profile and effects of consumer involvement in fresh meat as a product category based on cross-sectional data collected in Belgium. Analyses confirm that involvement in meat is a multidimensional construct including four facets: pleasure value, symbolic value, risk importance and risk probability. Four involvement-based meat consumer segments are identified: straightforward, cautious, indifferent, and concerned. Socio-demographic differences between the segments relate to gender, age and presence of children. The segments differ in terms of extensiveness of the decision-making process, impact and trust in information sources, levels of concern, price consciousness, claimed meat consumption, consumption intention, and preferred place of purchase. The two segments with a strong perception of meat risks constitute two-thirds of the market. They can be typified as cautious meat lovers versus concerned meat consumers. Efforts aiming at consumer reassurance through quality improvement, traceability, labelling or communication may gain effectiveness when targeted specifically to these two segments. Whereas straightforward meat lovers focus mainly on taste as the decisive criterion, indifferent consumers are strongly price oriented.

Factors for consumer choice of dairy products in Iran.

PubMed

Rahnama, Hassan; Rajabpour, Shayan

2017-04-01

Little is known about consumers' behavior especially their choice behavior toward purchasing and consuming dairy products in developing countries. Hence, the aim of the present work is understanding the factors that affect on consumers' choice behavior toward dairy products in Iran. The study applies the theory of consumption values, which includes the functional values (taste, price, health, and body weight), social value, emotional value, conditional value and epistemic value. The sample were 1420 people (men and women). The data was collected using face to face survey in summer and fall 2015. Chi-square, confirmatory factor analysis, and structural equation modelling is used to assess data collected. The results indicate that functional values, social value, emotional value and epistemic value have a positive impact on choosing dairy products and conditional value didn't have a positive impact. It was concluded that the main influential factors for consumers' choice behavior toward dairy products included consumers experience positive emotion (e.g. enjoyment, pleasure, comfort and feeling relaxed) and functional value-health. This study emphasized the proper pricing of dairy products by producers and sellers. Copyright © 2016 Elsevier Ltd. All rights reserved.

FUNGIBILITY AND CONSUMER CHOICE: EVIDENCE FROM COMMODITY PRICE SHOCKS.

PubMed

Hastings, Justine S; Shapiro, Jesse M

2013-11-01

We formulate a test of the fungibility of money based on parallel shifts in the prices of different quality grades of a commodity. We embed the test in a discrete-choice model of product quality choice and estimate the model using panel microdata on gasoline purchases. We find that when gasoline prices rise consumers substitute to lower octane gasoline, to an extent that cannot be explained by income effects. Across a wide range of specifications, we consistently reject the null hypothesis that households treat "gas money" as fungible with other income. We compare the empirical fit of three psychological models of decision-making. A simple model of category budgeting fits the data well, with models of loss aversion and salience both capturing important features of the time series.

Four steps for improving the consumer healthcare experience across the continuum of care.

PubMed

Roberts, Keith

2016-04-01

In response to 2 articles recently published in The American Journal of Managed Care, "Characterizing Health Plan Price Estimator Tools: Findings from a National Survey" (February 2016), and "National Estimates of Price Variation by Site of Care" (March 2016), by Higgins et al, this editorial details best practices that healthcare organizations should employ in an effort to improve pricing transparency, enhancing patient engagement, and ultimately change patient behaviors to improve patient outcomes. Specifically, this article details a fourfold framework to help healthcare organizations, including both payers and providers, to understand consumers across the spectrum of care. As a part of this, key ways of leveraging technology to observe, segment, and communicate with patients to elicit positive behavioral change and improved outcomes, are discussed.

FUNGIBILITY AND CONSUMER CHOICE: EVIDENCE FROM COMMODITY PRICE SHOCKS*

PubMed Central

Hastings, Justine S.; Shapiro, Jesse M.

2015-01-01

We formulate a test of the fungibility of money based on parallel shifts in the prices of different quality grades of a commodity. We embed the test in a discrete-choice model of product quality choice and estimate the model using panel microdata on gasoline purchases. We find that when gasoline prices rise consumers substitute to lower octane gasoline, to an extent that cannot be explained by income effects. Across a wide range of specifications, we consistently reject the null hypothesis that households treat “gas money” as fungible with other income. We compare the empirical fit of three psychological models of decision-making. A simple model of category budgeting fits the data well, with models of loss aversion and salience both capturing important features of the time series. PMID:26937053

Using one-way communications in a market-based resource allocation system

DOEpatents

Chassin, David P.; Pratt, Robert G.

2014-07-22

Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.

Electric power grid control using a market-based resource allocation system

DOEpatents

Chassin, David P

2014-01-28

Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.

Using bi-directional communications in a market-based resource allocation system

DOEpatents

Chassin, David P; Pratt, Robert G

2014-04-01

Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.

Electric power grid control using a market-based resource allocation system

DOEpatents

Chassin, David P.

2015-07-21

Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.

Using bi-directional communications in a market-based resource allocation system

DOEpatents

Chassin, David P.; Pratt, Robert G.

2015-09-08

Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.

Using bi-directional communications in a market-based resource allocation system

DOEpatents

Chassin, David P; Pratt, Robert G

2015-05-05

Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.

Price and consumption of tobacco.

PubMed

Singh, Virendra; Sharma, Bharat Bhushan; Saxena, Puneet; Meena, Hardayal; Mangal, Daya Krishan

2012-07-01

It is thought that price increase in tobacco products leads to reduced consumption. Though many studies have substantiated this concept, it has not been well studied in India. Recently, price of tobacco products was increased due to ban on plastic sachets of chewing tobacco and increased tax in Rajasthan. This study was designed to evaluate the effect of price rise on overall consumption of tobacco in Jaipur city, Rajasthan. This study was carried out in Jaipur city. Two-staged stratified sampling was used. In the first phase of study, cost and consumption of various tobacco products in the months of February and April were enquired from 25 retail tobacco shops. In the second phase, tobacco consumption was enquired from 20 consecutive consumers purchasing any tobacco product from all the above retail tobacco shops. The data were statistically analyzed using descriptive statistics and paired "t" test. The comparison of prices of tobacco products between February and April revealed that the price of cigarette, bidi, and chewing tobacco has increased by 19%, 21%, and 68%, respectively. Average decrease in sales of cigarettes, bidi, and chewing tobacco at shops included in the study were 14%, 23%, and 38%, respectively. The consumers purchasing tobacco also reported decreased consumption. Chewing tobacco showed the maximum reduction (21%). Consumption of cigarette and bidi has also reduced by 15% and 13%, respectively. It may be concluded that reduction in consumption is associated with increased price of tobacco products. Reduced consumption is comparative to the magnitude of price increase.

Young adults' responses to alternative messages describing a sugar-sweetened beverage price increase.

PubMed

Gollust, Sarah E; Tang, Xuyang; White, James M; French, Simone A; Runge, Carlisle Ford; Rothman, Alexander J

2017-01-01

Many jurisdictions in the USA and globally are considering raising the prices of sugar-sweetened beverages (SSB) through taxes as a strategy to reduce their consumption. The objective of the present study was to identify whether the rationale provided for an SSB price increase affects young adults' behavioural intentions and attitudes towards SSB. Participants were randomly assigned to receive one of eight SSB price increase rationales. Intentions to purchase SSB and attitudes about the product and policy were measured. A forty-six-item cross-sectional Internet survey. Undergraduate students (n 494) at a large US Midwestern university. Rationale type was significantly associated with differences in participants' purchasing intentions for the full sample (F 7,485=2·53, P=0·014). Presenting the rationale for an SSB price increase as a user fee, an effort to reduce obesity, a strategy to offset health-care costs or to protect children led to lower SSB purchasing intentions compared with a message with no rationale. Rationale type was also significantly associated with differences in perceptions of soda companies (F 7,485=2·10, P=0·043); among low consumers of SSB, messages describing the price increase as a user fee or tax led to more negative perceptions of soda companies. The rationale attached to an SSB price increase could influence consumers. However, these message effects may depend on individuals' level of SSB consumption.

Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots

PubMed Central

Johnson, Kamina Keiko; Pendell, Dustin L.

2017-01-01

Bovine respiratory disease (BRD) is a common endemic disease among North American feedlot cattle. BRD can lead to significant economic losses for individual beef cattle feedlot producers through mortality and morbidity. With promising new management and technology research that could reduce BRD prevalence, this study evaluates the potential impacts of a reduction of BRD in the US beef cattle feedlot sector. Using a multi-market, multi-commodity partial equilibrium economic model of the US agricultural industry, we evaluate the market impacts of reduced BRD to producers from various livestock, meat, and feedstuffs industries. We find that as morbidity and mortality is reduced, beef cattle producers experience losses due to increased supplies (lower beef cattle prices) and increased demand for feedstuff (higher feedstuff prices). Beef cattle processors see gains as the price of beef cattle is lower, whereas feedstuff producers gain from higher feedstuff prices. Producers in the allied industries (pork, lamb, poultry, and eggs) see a small reduction in returns as consumers substitute with less expensive beef products. Consumers see gains in welfare as the increase in beef cattle supply results in lower beef prices. These lower beef prices more than offset the small increases in pork, lamb, poultry, and egg prices. Overall, the potential economic welfare change due to management and technologies that reduce BRD is a net gain for the US society as a whole. PMID:29170739

Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots.

PubMed

Johnson, Kamina Keiko; Pendell, Dustin L

2017-01-01

Bovine respiratory disease (BRD) is a common endemic disease among North American feedlot cattle. BRD can lead to significant economic losses for individual beef cattle feedlot producers through mortality and morbidity. With promising new management and technology research that could reduce BRD prevalence, this study evaluates the potential impacts of a reduction of BRD in the US beef cattle feedlot sector. Using a multi-market, multi-commodity partial equilibrium economic model of the US agricultural industry, we evaluate the market impacts of reduced BRD to producers from various livestock, meat, and feedstuffs industries. We find that as morbidity and mortality is reduced, beef cattle producers experience losses due to increased supplies (lower beef cattle prices) and increased demand for feedstuff (higher feedstuff prices). Beef cattle processors see gains as the price of beef cattle is lower, whereas feedstuff producers gain from higher feedstuff prices. Producers in the allied industries (pork, lamb, poultry, and eggs) see a small reduction in returns as consumers substitute with less expensive beef products. Consumers see gains in welfare as the increase in beef cattle supply results in lower beef prices. These lower beef prices more than offset the small increases in pork, lamb, poultry, and egg prices. Overall, the potential economic welfare change due to management and technologies that reduce BRD is a net gain for the US society as a whole.

[Consumer reaction to information on the labels of genetically modified food].

PubMed

Sebastian-Ponce, Miren Itxaso; Sanz-Valero, Javier; Wanden-Berghe, Carmina

2014-02-01

To analyze consumer opinion on genetically modified foods and the information included on the label. A systematic review of the scientific literature on genetically modified food labeling was conducted consulting bibliographic databases (Medline - via PubMed -, EMBASE, ISI-Web of knowledge, Cochrane Library Plus, FSTA, LILACS, CINAHL and AGRICOLA) using the descriptors "organisms, genetically modified" and "food labeling". The search covered the first available date, up to June 2012, selecting relevant articles written in English, Portuguese or Spanish. Forty articles were selected after applying the inclusion and exclusion criteria. All of them should have conducted a population-based intervention focused on consumer awareness of genetically modified foods and their need or not, to include this on the label. The consumers expressed a preference for non-genetically modified products, and added that they were prepared to pay more for this but, ultimately, the product bought was that with the best price, in a market which welcomes new technologies. In 18 of the articles, the population was in favor of obligatory labelling, and in six, in favor of this being voluntary; seven studies showed the consumer knew little about genetically modified food, and in three, the population underestimated the quantity they consumed. Price was an influencing factor in all cases. Label should be homogeneous and clarify the degree of tolerance of genetically modified products in humans, in comparison with those non-genetically modified. Label should also present the content or not of genetically modified products and how these commodities are produced and should be accompanied by the certifying entity and contact information. Consumers express their preference for non-genetically modified products and they even notice that they are willing to pay more for it, but eventually they buy the item with the best price, in a market that welcomes new technologies.

7 CFR 1220.115 - Net market price.

Code of Federal Regulations, 2011 CFR

2011-01-01

... AGREEMENTS AND ORDERS; MISCELLANEOUS COMMODITIES), DEPARTMENT OF AGRICULTURE SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION Soybean Promotion and Research Order Definitions § 1220.115 Net market price. The term... other value received by a producer for soybeans after adjustments for any premium or discount based on...

Where the rubber meets the road : reforming California's roadway system

DOT National Transportation Integrated Search

1995-08-01

The current system of roadway pricing and finance in California primarily employs fees applied to retail motor fuel sales. Consequently, most users of roadways pay a price for road use that is in proportion to fuel consumed, rather than in a manner t...

The analysis of Taiwan's residential electricity demand under the electricity tariff policy

NASA Astrophysics Data System (ADS)

Chen, Po-Jui

In October 2013, the Taiwan Power Company (Taipower), the monopolized state utility service in Taiwan, implemented an electricity tariff adjustment policy to reduce residential electricity demand. Using bi-monthly billing data from 6,932 electricity consumers, this study examine how consumers respond to an increase in electricity prices. This study employs an empirical approach that takes advantage of quasi-random variation over a period of time when household bills were affected by a change in electricity price. The study found that this price increase caused a 1.78% decline in residential electricity consumption, implying a price elasticity of -0.19 for summer-season months and -0.15 for non-summer-season months. The demand for electricity is therefore relatively inelastic, likely because it is hard for people to change their electricity consumption behavior in the short-term. The results of this study highlight that demand-side management cannot be the only lever used to address Taiwan's forecasted decrease in electricity supply.

Nutrition labeling and value size pricing at fast-food restaurants: a consumer perspective.

PubMed

O'Dougherty, Maureen; Harnack, Lisa J; French, Simone A; Story, Mary; Oakes, J Michael; Jeffery, Robert W

2006-01-01

This pilot study examined nutrition-related attitudes that may affect food choices at fast-food restaurants, including consumer attitudes toward nutrition labeling of fast foods and elimination of value size pricing. A convenience sample of 79 fast-food restaurant patrons aged 16 and above (78.5% white, 55% female, mean age 41.2 [17.1]) selected meals from fast-food restaurant menus that varied as to whether nutrition information was provided and value pricing included and completed a survey and interview on nutrition-related attitudes. Only 57.9% of participants rated nutrition as important when buying fast food. Almost two thirds (62%) supported a law requiring nutrition labeling on restaurant menus. One third (34%) supported a law requiring restaurants to offer lower prices on smaller instead of bigger-sized portions. This convenience sample of fast-food patrons supported nutrition labels on menus. More research is needed with larger samples on whether point-of-purchase nutrition labeling at fast-food restaurants raises perceived importance of nutrition when eating out.

Word of mouth and physician referrals still drive health care provider choice.

PubMed

Tu, Ha T; Lauer, Johanna R

2008-12-01

Sponsors of health care price and quality transparency initiatives often identify all consumers as their target audiences, but the true audiences for these programs are much more limited. In 2007, only 11 percent of American adults looked for a new primary care physician, 28 percent needed a new specialist physician and 16 percent underwent a medical procedure at a new facility, according to a new national study by the Center for Studying Health System Change (HSC). Among consumers who found a new provider, few engaged in active shopping or considered price or quality information--especially when choosing specialists or facilities for medical procedures. When selecting new primary care physicians, half of all consumers relied on word-of-mouth recommendations from friends and relatives, but many also used doctor recommendations (38%) and health plan information (35%), and nearly two in five used multiple information sources when choosing a primary care physician. However, when choosing specialists and facilities for medical procedures, most consumers relied exclusively on physician referrals. Use of online provider information was low, ranging from 3 percent for consumers undergoing procedures to 7 percent for consumers choosing new specialists to 11 percent for consumers choosing new primary care physicians

Which product characteristics are preferred by Chinese consumers when choosing pork? A conjoint analysis on perceived quality of selected pork attributes.

PubMed

Ma, Xiu Q; Verkuil, Julia M; Reinbach, Helene C; Meinert, Lene

2017-05-01

Due to the economic growth achieved by China over the past 20 years, Chinese consumers have changed their purchasing behavior regarding meat. Instead of buying locally produced pork, they are increasingly willing to purchase imported pork. A conjoint analysis investigated how intrinsic pork attributes ( fat content and processing) and extrinsic pork attributes ( origin , price , and packaging ) relate to the perceived quality of pork and the choices made by Chinese consumers. A questionnaire distributed among a sample of Chinese consumers ( n  = 81) revealed that processing (fresh/frozen) is the most important determinant of pork choice (36%), followed by fat content (27%), origin (18%), price (12%), and packaging (6.6%). Estimates of utility showed that Chinese consumers value fresh pork highly (0.147), followed by lean pork (0.111) and pork imported from countries other than China (0.073). The findings indicate that Chinese consumer's value both intrinsic and extrinsic attributes, and these results may help the meat industry improve China's competitive meat market by developing new and more products that are tailored to the needs of the consumer.

Enhancing the economic value and consumer preferences of commercial mondol stingray (Himantura gerardi) leather creative products

NASA Astrophysics Data System (ADS)

Sahubawa, L.; Pertiwiningrum, A.; Rahmadian, Y.

2018-03-01

The research objectives were to design, assess the economic value and consumer preference level of stingray leather products. The research method included a product design, analysis of economic value and consumer preferences. Mondol stingray (Himantura gerardi) leather, with a length of 50 cm and width of 30 cm, were processed into ID card wallet, man and women’s wallet and key holder. The number of respondents involved to analyze the preference level is 75 respondents (students, lecturers and employees of Universitas Gadjah Mada). Indicators of consumer preferences were model, color, price and purchasing power. The price of ID card wallet is Rp. 450,000; women wallet is Rp. 650,000 and a key holder is Rp. 300,000. Consumer preferences on ID card wallet were as follow: 84 % stated very interesting model; 83 % stated very interesting color; 61 % stated cheap and 53 % had enough. Consumer preferences of women’s wallet were as follow: 81 % stated very interesting model; 84 % stated very interesting color; 56 % stated cheap and 57 % had enough. Consumer preferences on key holder were as follow: 49 % stated interesting model; 72 % stated very interesting color; 61 % stated cheap and 57 % had enough.

JPRS Report, Latin America.

DTIC Science & Technology

1987-06-29

finances. The tourism Industry bettered Its 1985 performance. The apprecia- tion of European currencies against the U.S dollar since the second...ing Industry , the output of which fell by 19.6 per cent during 1986. : Consumers benflted from the drop In crude oil prices and the Barbados...corresponding period in 1985. Price increases were mainly associated with an 8.8 per cent increase in the price of food and non-alcoholic beverage . With a

Association of body mass with price of bushmeat in Nigeria and Cameroon.

PubMed

Macdonald, David W; Johnson, Paul J; Albrechtsen, Lise; Dutton, Adam; Seymour, Sarah; Dupain, Jef; Hall, Amy; Fa, John E

2011-12-01

Spatially extensive patterns of bushmeat extraction (and the processes underlying these patterns) have not been explored. We used data from a large sample (n= 87) of bushmeat trading points in urban and rural localities in Nigeria and Cameroon to explore extraction patterns at a regional level. In 7,594 sample days, we observed 61,267 transactions involving whole carcasses. Rural and urban trading points differed in species for sale and in meat condition (fresh or smoked). Carcass price was principally associated with body mass, with little evidence that taxonomic group (primate, rodent, ungulate, or mammalian carnivore) affected price. Moreover, meat condition was not consistently associated with price. However, some individual species were more expensive throughout the region than would be expected for their size. Prices were weakly positively correlated with human settlement size and were highest in urban areas. Supply did not increase proportionally as human settlement size increased, such that per capita supply was significantly lower in urban centers than in rural areas. Policy options, including banning hunting of more vulnerable species (those that have low reproductive rates), may help to conserve some species consumed as bushmeat because carcass prices indicate that faster breeding, and therefore the more sustainable species, may be substituted and readily accepted by consumers. ©2011 Society for Conservation Biology.

A price- and-time-slot-negotiation mechanism for Cloud service reservations.

PubMed

Son, Seokho; Sim, Kwang Mong

2012-06-01

When making reservations for Cloud services, consumers and providers need to establish service-level agreements through negotiation. Whereas it is essential for both a consumer and a provider to reach an agreement on the price of a service and when to use the service, to date, there is little or no negotiation support for both price and time-slot negotiations (PTNs) for Cloud service reservations. This paper presents a multi-issue negotiation mechanism to facilitate the following: 1) PTNs between Cloud agents and 2) tradeoff between price and time-slot utilities. Unlike many existing negotiation mechanisms in which a negotiation agent can only make one proposal at a time, agents in this work are designed to concurrently make multiple proposals in a negotiation round that generate the same aggregated utility, differing only in terms of individual price and time-slot utilities. Another novelty of this work is formulating a novel time-slot utility function that characterizes preferences for different time slots. These ideas are implemented in an agent-based Cloud testbed. Using the testbed, experiments were carried out to compare this work with related approaches. Empirical results show that PTN agents reach faster agreements and achieve higher utilities than other related approaches. A case study was carried out to demonstrate the application of the PTN mechanism for pricing Cloud resources.

Energy Security Role of Biofuels in Evolving Liquid Fuel Markets

DOE Office of Scientific and Technical Information (OSTI.GOV)

Brown, Maxwell; Uria-Martinez, Rocio; Leiby, Paul N.

We explore the role of biofuels in mitigating the negative impacts of oil supply shocks on fuel markets under a range of oil price trajectories and biofuel blending mandate levels. Using a partial equilibrium model of US biofuels production and petroleum fuels trade, we discuss the adjustments in light-duty vehicle fuel mix, fuel prices, and renewable identification number (RIN) prices following each shock as well as the distribution of shock costs across market participants. Ethanol is used as both a complement (blend component in E10) and a substitute (in E15 and E85 blends) to gasoline. Results show that, during oilmore » supply shocks, the role of ethanol as a substitute dominates and allows some mitigation of the shock. As US petroleum imports decrease with growing US oil production, the net economic welfare effect of sudden oil price changes and the energy security role of biofuels becomes less clear than it has been in the past. Although fuel consumers lose when oil price increases due to an external shock, domestic fuel producers gain. In some cases, depending on import share and supply and demand elasticities, we show that the gain to producers could more than offset consumer losses. However, in most cases evaluated here, sudden oil-price increases remain costly.« less

The Role of Product Design in Consumers' Choices in the Individual Insurance Market

PubMed Central

Marquis, M Susan; Buntin, Melinda Beeuwkes; Escarce, José J; Kapur, Kanika

2007-01-01

Objective To evaluate the role of health plan benefit design and price on consumers' decisions to purchase health insurance in the nongroup market and their choice of plan. Data Sources and Study Setting Administrative data from the three largest nongroup insurers in California and survey data about those insured in the nongroup market and the uninsured in California. Study Design We fit a nested logit model to examine the effects of plan characteristics on consumer choice while accounting for substitutability among certain groups of products. Principal Findings Product choice is quite sensitive to price. A 10 percent decrease in the price of a product would increase its market share by about 20 percent. However, a 10 percent decrease in prices of all products would only increase overall market participation by about 4 percent. Changes in the generosity of coverage will also affect product choice, but have only small effects on overall participation. A 20 percent decrease in the deductible or maximum out-of-pocket payment of all plans would increase participation by about 0.3–0.5 percent. Perceived information search costs and other nonprice barriers have substantial effects on purchase of nongroup coverage. Conclusions Modest subsidies will have small effects on purchase in the nongroup market. New product designs with higher deductibles are likely to be more attractive to healthy purchasers, but the new benefit designs are likely to have only small effects on market participation. In contrast, consumer education efforts have a role to play in helping to expand coverage. PMID:17995560

The welfare effects of raising household energy prices in Poland

DOE Office of Scientific and Technical Information (OSTI.GOV)

Freund, C.L.; Wallich, C.I.

1996-06-01

We examine the welfare effects from increasing household energy prices in Poland. Subsidizing household energy prices, common in the transition economies, is shown to be highly regressive. The wealthy spend a larger portion of their income on energy and consume more energy in absolute terms. We therefore rule out the oft-used social welfare argument for delaying household energy price increases. Raising prices, while targeting relief to the poor through a social assistance program is the first-best response. However, if governments want to ease the adjustment, several options are open, including: in-kind transfers to the poor, vouchers, in-cash transfers, and lifelinemore » pricing for electricity. Our simulations show that if raising prices to efficient levels is not politically feasible at present and social assistance targeting is sufficiently weak, it may be socially better to use lifeline pricing and a large price increase than an overall, but smaller, price increase.« less

Endogenous versus exogenous generic reference pricing for pharmaceuticals.

PubMed

Antoñanzas, F; Juárez-Castelló, C A; Rodríguez-Ibeas, R

2017-12-01

In this paper we carry out a vertical differentiation duopoly model applied to pharmaceutical markets to analyze how endogenous and exogenous generic reference pricing influence competition between generic and branded drugs producers. Unlike the literature, we characterize for the exogenous case the equilibrium prices for all feasible relevant reference prices. Competition is enhanced after the introduction of a reference pricing system. We also compare both reference pricing systems on welfare grounds, assuming two different objective functions for health authorities: (i) standard social welfare and (ii) gross consumer surplus net of total pharmaceutical expenditures. We show that regardless of the objective function, health authorities will never choose endogenous reference pricing. When health authorities are paternalistic, the exogenous reference price that maximizes standard social welfare is such that the price of the generic drug is the reference price while the price of the branded drug is higher than the reference price. When health authorities are not paternalistic, the optimal exogenous reference price is such that the price of the branded drug is the reference price while the price of the generic drug is lower than the reference price.

The shopping brain: math anxiety modulates brain responses to buying decisions.

PubMed

Jones, William J; Childers, Terry L; Jiang, Yang

2012-01-01

Metacognitive theories propose that consumers track fluency feelings when buying, which may have biological underpinnings. We explored this using event-related potential (ERP) measures as twenty high-math anxiety (High MA) and nineteen low-math anxiety (Low MA) consumers made buying decisions for promoted (e.g., 15% discount) and non-promoted products. When evaluating prices, ERP correlates of higher perceptual and conceptual fluency were associated with buys, however only for High MA females under no promotions. In contrast, High MA females and Low MA males demonstrated greater FN400 amplitude, associated with enhanced conceptual processing, to prices of buys relative to non-buys under promotions. Concurrent late positive component (LPC) differences under no promotions suggest discrepant retrieval processes during price evaluations between consumer groups. When making decisions to buy or not, larger (smaller) P3, sensitive to outcome responses in the brain, was associated with buying for High MA females (Low MA females) under promotions, an effect also present for males under no promotions. Thus, P3 indexed decisions to buy differently between anxiety groups, but only for promoted items among females and for no promotions among males. Our findings indicate that perceptual and conceptual processes interact with anxiety and gender to modulate brain responses during consumer choices. Copyright © 2011 Elsevier B.V. All rights reserved.

Recycling Pricing and Coordination of WEEE Dual-Channel Closed-Loop Supply Chain Considering Consumers’ Bargaining

PubMed Central

Zhu, Xiaodong; Wang, Jing; Tang, Juan

2017-01-01

Environmentally friendly handling and efficient recycling of waste electrical on Waste Electrical and Electronic Equipment (WEEE) have grown to be a global social problem. As holders of WEEE, consumers have a significant effect on the recycling process. A consideration of and attention to the influence of consumer behavior in the recycling process can help achieve more effective recycling of WEEE. In this paper, we built a dual-channel closed-loop supply chain model composed of manufacturers, retailers, and network recycling platforms. Based on the influence of customer bargaining behavior, we studied several different scenarios of centralized decision-making, decentralized decision-making, and contract coordination, using the Stackelberg game theory. The results show that retailers and network recycling platforms will reduce the direct recovery prices to maintain their own profit when considering the impact of consumer bargaining behavior, while remanufacturers will improve the transfer payment price for surrendering part of the profit under revenue and the expense sharing contract. Using this contract, we can achieve supply chain coordination and eliminate the effect of consumer bargaining behavior on supply chain performance. It can be viewed from the parameter sensitivity analysis that when we select the appropriate sharing coefficient, the closed-loop supply chain can achieve the same system performance under a centralized decision. PMID:29244778

The effect on social welfare of a switch of second-generation antihistamines from prescription to over-the-counter status: a microeconomic analysis.

PubMed

Shih, Ya-Chen Tina; Prasad, Manishi; Luce, Bryan R

2002-04-01

The US Food and Drug Administration (FDA) recently held a meeting to determine whether the status of second-generation antihistamines (SGAs) should be switched from prescription (Rx) to over-the-counter (OTC) status. This article provides a conceptual microeconomic framework for addressing issues regarding the impact of such a switch on social welfare. A review of the economic literature on Rx-to-OTC switches was conducted. Relevant articles published in English between 1990 and 2001 were identified through searches of ABI Info, EconLit, PsychInfo, MEDLINE, CANCERLIT, AIDSLINE, and HealthStar, as well as a general Internet search for statements in the press or on the FDA Web site. The search terms used were Rx, prescription, OTC, over-the-counter, second-generation antihistamines, nonsedating antihistamines, first-generation antihistamines, and sedating antihistamines. Microeconomic models focusing on consumer surplus were employed to determine the potential price response and social-welfare implications of a switch of SGAs to OTC status. Unlike the agents involved in previous Rx-to-OTC switches, SGAs are still under patent protection. Economic theory suggests that a firm that is protected by a patent will price aggressively. The market for OTC SGAs is likely to be more elastic due to a lack of insurance coverage for OTC products; hence, drug manufacturers would be likely to charge a lower price if SGAs were sold OTC. However, a lower price does not necessarily guarantee an improvement in social welfare; the net impact is determined by whether the increase in consumer surplus outweighs the deadweight loss (losses of consumer and producer surplus not transferred to other parties). Additionally, the assumption of a price reduction would be called into question if there were inequalities in marginal costs between the Rx and OTC markets. In this situation, the postswitch price might increase or not be reduced significantly. It is uncertain whether granting OTC status to SGAs would be cost saving to society, particularly as these drugs are patent protected. The social-welfare implications of such a switch would depend heavily on pricing strategies and consumer behavior. Further analyses are needed to determine how both factors influence social welfare; only then can the costs and benefits of a switch be understood completely.

Consumers Buy Lower-Cost Plans On Covered California, Suggesting Exposure To Premium Increases Is Less Than Commonly Reported.

PubMed

Gabel, Jon R; Arnold, Daniel R; Fulton, Brent D; Stromberg, Sam T; Green, Matthew; Whitmore, Heidi; Scheffler, Richard M

2017-01-01

With the notable exception of California, states have not made enrollment data for their Affordable Care Act (ACA) Marketplace plans publicly available. Researchers thus have tracked premium trends by calculating changes in the average price for plans offered (a straight average across plans) rather than for plans purchased (a weighted average). Using publicly available enrollment data for Covered California, we found that the average purchased price for all plans was 11.6 percent less than the average offered price in 2014, 13.2 percent less in 2015, and 15.2 percent less in 2016. Premium growth measured by plans purchased was roughly 2 percentage points less than when measured by plans offered in 2014-15 and 2015-16. We observed shifts in consumer choices toward less costly plans, both between and within tiers, and we estimate that a $100 increase in a plan's net annual premium reduces its probability of selection. These findings suggest that the Marketplaces are helping consumers moderate premium cost growth. Project HOPE—The People-to-People Health Foundation, Inc.

Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India

DOE Office of Scientific and Technical Information (OSTI.GOV)

Phadke, Amol; Shah, Nihar; Abhyankar, Nikit

Improving efficiency of air conditioners (ACs) typically involves improving the efficiency of various components such as compressors, heat exchangers, expansion valves, refrigerant,and fans. We estimate the incremental cost of improving the efficiency of room ACs based on the cost of improving the efficiency of its key components. Further, we estimate the retail price increase required to cover the cost of efficiency improvement, compare it with electricity bill savings, and calculate the payback period for consumers to recover the additional price of a more efficient AC. The finding that significant efficiency improvement is cost effective from a consumer perspective is robustmore » over a wide range of assumptions. If we assume a 50% higher incremental price compared to our baseline estimate, the payback period for the efficiency level of 3.5 ISEER is 1.1 years. Given the findings of this study, establishing more stringent minimum efficiency performance criteria (one-star level) should be evaluated rigorously considering significant benefits to consumers, energy security, and environment« less

Calibrating the social value of prospective new goods: The case of hydrogen fuel cell electric Vehicles

NASA Astrophysics Data System (ADS)

Topel, Robert H.

2018-01-01

Economic studies of the value of a new good or product innovation are typically retrospective: after a new good has been developed and marketed to consumers, data on prices and consumer choices can be used to estimate welfare gains. This paper calibrates the prospective welfare gains in the United States from a nascent vehicle platform, fuel cell electric vehicles (FCVs), that may or may not succeed in competition with existing vehicle platforms. Prospective gains are due to three main sources: (1) possibly reduced carbon emissions compared to existing vehicle alternatives; (2) the monopsony benefit to the U.S. from reducing world oil demand and hence the price of oil; (3) national security benefits due to reduced "oil dependence", mitigating the impact of oil price shocks on national income. I find that the benefits of reduced carbon emissions are likely to be quite small because reduced oil demand in the U.S. as only a small impact on world oil consumption and carbon emissions. Net monopsony benefits to U.S. consumers are much larger.

Pharmaceutical cost containment and innovation in the United States.

PubMed

Kane, N M

1997-09-01

In the United States, government has played a limited role in containing the costs of pharmaceuticals. There are no price controls, no national drug formularies, no universal cost-sharing policies, and perhaps most important, no national coverage of prescription drugs. Rather, pharmaceutical cost containment was historically left to private insurers and managed care companies, while consumers paid out of pocket for close to 62% of all drug expenditures. US utilization has historically been relatively low and prices by far the highest of the four industrialized countries. The major change in pharmaceutical cost containment in the 1990s has been the consolidation of purchaser power at the level of the insurer and managed care companies. These 'whole sale' purchasers now represent 70% of direct manufacturer sales, and they are demanding and receiving deeper price discounts. Meanwhile these same players are implementing formulary policies, utilization controls, and disease management programs, the outcomes of which have not yet been systematically evaluated. Failure to pass on savings to consumers, cost shifting by manufacturers to vulnerable consumer groups, and potential under-utilization of cost-effective drugs remain of concern.

DOE Office of Scientific and Technical Information (OSTI.GOV)

Bird, L.; Brown, E.

This report presents year-end 2005 data on utility green pricing programs, and examines trends in consumer response and program implementation over time. The data in this report, which were obtained via a questionnaire distributed to utility green pricing program managers, can be used by utilities to benchmark the success of their green power programs.

Kicking the oil addiction

NASA Astrophysics Data System (ADS)

Vilenchik, Yaakov; Peled, Emanuel; Andelman, David

2010-01-01

Few people were left unaffected by the soaring oil prices of summer 2008. Motorists were the hardest hit as the price at the pumps reached an all time high, but nobody could avoid paying more for their food as higher transport costs were passed on from the retailer to the consumer.

Browsing for the Best Internet Access Provider?

ERIC Educational Resources Information Center

Weil, Marty

1996-01-01

Highlights points to consider when choosing an Internet Service Provider. Serial Line Internet Protocol (SLIP) and Point to Point Protocol (PPP) are compared regarding price, performance, bandwidth, speed, and technical support. Obtaining access via local, national, consumer online, and telephone-company providers is discussed. A pricing chart and…

Analysis of Supermarket Research.

ERIC Educational Resources Information Center

Keil, Beverly J.; Ferris, E. Linda

1996-01-01

Volunteers priced grocery items twice per month for three months in eight rural Ohio stores, examined advertising flyers, and surveyed stores weekly for a month to track pricing trends. Advice for consumers on choice of stores and items as well as food budgeting was developed based on the results. (SK)

Marketing Secondary Information Products and Services.

ERIC Educational Resources Information Center

King, Donald W.

1982-01-01

Discusses the components of marketing (i.e., consumer markets, product development, sales, advertising and promotion, packaging, distribution, pricing, and market research), how information products and services relate to those components, and the pricing of products from a bibliographic database. Two figures and a 17-item reference list are…

Pay-what-you-want, identity, and self-signaling in markets

PubMed Central

Gneezy, Ayelet; Gneezy, Uri; Riener, Gerhard; Nelson, Leif D.

2012-01-01

We investigate the role of identity and self-image consideration under “pay-what-you-want” pricing. Results from three field experiments show that often, when granted the opportunity to name the price of a product, fewer consumers choose to buy it than when the price is fixed and low. We show that this opt-out behavior is driven largely by individuals’ identity and self-image concerns; individuals feel bad when they pay less than the “appropriate” price, causing them to pass on the opportunity to purchase the product altogether. PMID:22529370

Pay-what-you-want, identity, and self-signaling in markets.

PubMed

Gneezy, Ayelet; Gneezy, Uri; Riener, Gerhard; Nelson, Leif D

2012-05-08

We investigate the role of identity and self-image consideration under "pay-what-you-want" pricing. Results from three field experiments show that often, when granted the opportunity to name the price of a product, fewer consumers choose to buy it than when the price is fixed and low. We show that this opt-out behavior is driven largely by individuals' identity and self-image concerns; individuals feel bad when they pay less than the "appropriate" price, causing them to pass on the opportunity to purchase the product altogether.

75 FR 5716 - Federal Acquisition Regulation; FAR Case 2008-024, Inflation Adjustment of Acquisition-Related...

Federal Register 2010, 2011, 2012, 2013, 2014

2010-02-04

... Consumer Price Index for all urban consumers, except for Davis-Bacon Act, Service Contract Act, and trade... consumers, except for Davis-Bacon Act, Service Contract Act, and trade agreements thresholds (see FAR 1.109... acquisition-related thresholds established by the Davis-Bacon Act, the Service Contract Act, or the United...

78 FR 66643 - Civil Monetary Penalty Inflation Adjustment Rule

Federal Register 2010, 2011, 2012, 2013, 2014

2013-11-06

... Consumer Price Index \\2\\ for all-urban consumers (CPI-U) for the month of June of the calendar year... Index for all-urban consumers published by the Department of Labor.'' Interested parties may find the... $11,000 $11,000 $16,000 $16,000 BASED PAINT HAZARD REDUCTION ACT OF 1992. 42 U.S.C. 4910(a)(2) NOISE...

77 FR 15125 - United States v. Morgan Stanley; Public Comments and Response on Proposed Final Judgment

Federal Register 2010, 2011, 2012, 2013, 2014

2012-03-14

... purchase capacity, and, in turn, to increase the prices consumers pay for electricity. \\1\\ MSCG and Morgan..., especially given the likely magnitude of the injury to consumers from any increase in New York City capacity... being remitted to the Treasury, should directly or indirectly benefit electricity consumers who paid...

75 FR 2723 - Fair Credit Reporting Risk-Based Pricing Regulations

Federal Register 2010, 2011, 2012, 2013, 2014

2010-01-15

... application, grant, extension, or other provision of credit and, based in whole or in part on the consumer....\\1\\ \\1\\ Under Sec. 615(a) of the FCRA, creditors that deny a consumer's application for credit, based... with an application for, or a grant, extension, or other provision of, credit to a consumer; and (ii...

Enhancing efficiency of production cost on seafood process with activity based management method

NASA Astrophysics Data System (ADS)

Tarigan, U.; Tarigan, U. P. P.

2018-02-01

The efficiency of production costs has an important impact maintaining company presence in the business world, as well as in the face of increasingly sharp global competition. It was done by identifying and reducing non-value-added activities to decrease production costs and increase profits. The study was conducted at a company engaged in the production of squid (seafood). It has a higher product price than the market as Rp 50,000 per kg while the market price of squid is only Rp 35,000 per kg. The price of the product to be more expensive compared with market price, and thereby a lot more consumers choose the lower market price. Based on the discussions conducted, the implementation of Activity Based Management was seen in the reduction of activities that are not added value in the production process. Since each activities consumers cost, the reduction of nonvalue-added activities has effects on the decline of production cost. The production’s decline costs mainly occur in the reduction of material transfer costs. The results showed that there was an increase after the improvement of 2.60%. Increased production cost efficiency causes decreased production costs and increased profits.

A natural value unit—Econophysics as arbiter between finance and economics

NASA Astrophysics Data System (ADS)

Defilla, Steivan

2007-08-01

Foreign exchange markets show that currency units ( = accounting or nominal price units) are variables. Technical and economic progress evidences that the consumer baskets ( = purchasing power units or real price units) are also variables. In contrast, all physical measurement units are constants and either defined in the SI (=metric) convention or based upon natural constants ( = “natural” or Planck units). Econophysics can identify a constant natural value scale or value unit (natural numeraire) based upon Planck energy. In honor of the economist L. Walras, this “Planck value” could be called Walras (Wal), thereby using the SI naming convention. One Wal can be shown to have a physiological and an economic interpretation in that it is equal to the annual minimal real cost of physiological life of a reference person at minimal activity. The price of one Wal in terms of any currency can be estimated by hedonic regression techniques used in inflation measurement (axiometry). This pilot research uses official disaggregated Swiss Producer and Consumer Price Index (PPI and CPI) data and estimates the hedonic Walras price (HWP), quoted in Swiss francs in 2003, and its inverse, the physical purchasing power (PhPP) of the Swiss franc in 2003.

Oil and the American Way of Life: Don't Ask, Don't Tell

ScienceCinema

Kaufmann, Robert [Boston University, Boston, Massachusetts, United States

2018-04-19

In the coming decades, US consumers will face a series of important decisions about oil. To make effective decisions, consumers must confront some disturbing answers to questions they would rather not ask. These questions include: is the US running out of oil, is the world running out of oil, is OPEC increasing its grip on prices, is the US economy reducing its dependence on energy, and will the competitive market address these issues in a timely fashion? Answers to these questions indicate that the market will not address these issues: the US has already run out of inexpensive sources of oil such that rising prices no longer elicit significant increases in supply. The US experience implies that within a couple of decades, the world oil market will change from increasing supply at low prices to decreasing supply at higher prices. As the world approaches this important turning point, OPEC will strengthen its grip on world oil prices. Contrary to popular belief, the US economy continues to be highly dependent on energy, especially inexpensive sources of energy. Together, these trends threaten to undermine the basic way in which the US economy generates a high standard of living.

Real inflation of journal prices: medical journals, U.S. journals, and Brandon list journals.

PubMed Central

Kronenfeld, M R; Gable, S H

1983-01-01

Increases in price during the last twenty years were studied for the journals listed in the 1983 Brandon list, and during the last fifteen years for all medical journals and for U.S. periodicals overall. When compared with increases in the Consumer Price Index (CPI), prices in all three categories of publications have increased much more rapidly than have prices overall. Libraries whose journal-acquisition budgets increased merely at the same rate as the CPI during the periods examined today can purchase only 50% to 70% of the journals they purchased in 1963. This information should help librarians justify budget increases. PMID:6652296

Price and welfare effects of a pharmaceutical substitution reform.

PubMed

Granlund, David

2010-12-01

The price effects of the Swedish pharmaceutical substitution reform are analyzed using data for a panel of all pharmaceutical product sold in Sweden in 1997-2007. The price reduction due to the reform was estimated to average 10% and was found to be significantly larger for brand-name pharmaceuticals than for generics. The results also imply that the reform amplified the effect that generic entry has on brand-name prices by a factor of 10. Results of a demand estimation imply that the price reductions increased total pharmaceutical consumption by 8% and consumer welfare by SEK 2.7 billion annually. Copyright © 2010 Elsevier B.V. All rights reserved.

Estimating the Cost of Early Infant Male Circumcision in Zimbabwe: Results From a Randomized Noninferiority Trial of AccuCirc Device Versus Mogen Clamp.

PubMed

Mangenah, Collin; Mavhu, Webster; Hatzold, Karin; Biddle, Andrea K; Madidi, Ngonidzashe; Ncube, Getrude; Mugurungi, Owen; Ticklay, Ismail; Cowan, Frances M; Thirumurthy, Harsha

2015-08-15

Safe and cost-effective programs for implementing early infant male circumcision (EIMC) in Africa need to be piloted. We present results on a relative cost analysis within a randomized noninferiority trial of EIMC comparing the AccuCirc device with Mogen clamp in Zimbabwe. Between January and June 2013, male infants who met inclusion criteria were randomized to EIMC through either AccuCirc or Mogen clamp conducted by a doctor, using a 2:1 allocation ratio. We evaluated the overall unit cost plus the key cost drivers of EIMC using both AccuCirc and Mogen clamp. Direct costs included consumable and nonconsumable supplies, device, personnel, associated staff training, and environmental costs. Indirect costs comprised capital and support personnel costs. In 1-way sensitivity analyses, we assessed potential changes in unit costs due to variations in main parameters, one at a time, holding all other values constant. The unit costs of EIMC using AccuCirc and Mogen clamp were $49.53 and $55.93, respectively. Key cost drivers were consumable supplies, capacity utilization, personnel costs, and device price. Unit prices are likely to be lowest at full capacity utilization and increase as capacity utilization decreases. Unit prices also fall with lower personnel salaries and increase with higher device prices. EIMC has a lower unit cost when using AccuCirc compared with Mogen clamp. To minimize unit costs, countries planning to scale-up EIMC using AccuCirc need to control costs of consumables and personnel. There is also need to negotiate a reasonable device price and maximize capacity utilization.

Estimating the 'consumer surplus' for branded versus standardised tobacco packaging.

PubMed

Gendall, Philip; Eckert, Christine; Hoek, Janet; Farley, Tessa; Louviere, Jordan; Wilson, Nick; Edwards, Richard

2016-11-01

Tobacco companies question whether standardised (or 'plain') packaging will change smokers' behaviour. We addressed this question by estimating how standardised packaging compared to a proven tobacco control intervention, price increases through excise taxes, thus providing a quantitative measure of standardised packaging's likely effect. We conducted an online study of 311 New Zealand smokers aged 18 years and above that comprised a willingness-to-pay task comparing a branded and a standardised pack at four different price levels, and a choice experiment. The latter used an alternative-specific design, where the alternatives were a branded pack or a standardised pack, with warning theme and price varied for each pack. Respondents had higher purchase likelihoods for the branded pack (with a 30% warning) than the standardised pack (with a 75% warning) at each price level tested, and, on average, were willing to pay approximately 5% more for a branded pack. The choice experiment produced a very similar estimate of 'consumer surplus' for a branded pack. However, the size of the 'consumer surplus' varied between warning themes and by respondents' demographic characteristics. These two experiments suggest standardised packaging and larger warning labels could have a similar overall effect on adult New Zealand smokers as a 5% tobacco price increase. The findings provide further evidence for the efficacy of standardised packaging, which focuses primarily on reducing youth initiation, and suggest this measure will also bring notable benefits to adult smokers. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

Health Insurance as a Two-Part Pricing Contract *

PubMed Central

Lakdawalla, Darius; Sood, Neeraj

2013-01-01

Monopolies appear throughout health care. We show that health insurance operates like a conventional two-part pricing contract that allows monopolists to extract profits without inefficiently constraining quantity. When insurers are free to offer a range of insurance contracts to different consumer types, health insurance markets perfectly eliminate deadweight losses from upstream health care monopolies. Frictions limiting the sorting of different consumer types into different insurance contracts restore some of these upstream monopoly losses, which manifest as higher rates of uninsurance, rather than as restrictions in quantity utilized by insured consumers. Empirical analysis of pharmaceutical patent expiration supports the prediction that heavily insured markets experience little or no efficiency loss under monopoly, while less insured markets exhibit behavior more consistent with the standard theory of monopoly. PMID:23997354

Minimum energy efficiency standards for appliances: Old and new economic rationales

DOE Office of Scientific and Technical Information (OSTI.GOV)

Houde, Sebastien; Spurlock, C. Anna

In this study, we revisit Hausman and Joskow (1982)'s economic rationales for appliance minimum energy efficiency standards. In addition to the four market failures they argued could justify appliance standards--energy prices below marginal social cost, consumers underestimating energy prices, consumer discount rates above social discount rates, or principal agent problems--we discuss two additional market failures that are relevant and potentially economically important in this context: market power and innovation market failures. We highlight puzzles uncovered by recent empirical results, and suggest directions future research should take to better understand the normative implications of appliance standards.

Minimum energy efficiency standards for appliances: Old and new economic rationales

DOE PAGES

Houde, Sebastien; Spurlock, C. Anna

2016-09-01

In this study, we revisit Hausman and Joskow (1982)'s economic rationales for appliance minimum energy efficiency standards. In addition to the four market failures they argued could justify appliance standards--energy prices below marginal social cost, consumers underestimating energy prices, consumer discount rates above social discount rates, or principal agent problems--we discuss two additional market failures that are relevant and potentially economically important in this context: market power and innovation market failures. We highlight puzzles uncovered by recent empirical results, and suggest directions future research should take to better understand the normative implications of appliance standards.

Unveiling consumer's privacy paradox behaviour in an economic exchange.

PubMed

Motiwalla, Luvai F; Li, Xiao-Bai

2016-01-01

Privacy paradox is of great interest to IS researchers and firms gathering personal information. It has been studied from social, behavioural, and economic perspectives independently. However, prior research has not examined the degrees of influence these perspectives contribute to the privacy paradox problem. We combine both economic and behavioural perspectives in our study of the privacy paradox with a price valuation of personal information through an economic experiment combined with a behavioural study on privacy paradox. Our goal is to reveal more insights on the privacy paradox through economic valuation on personal information. Results indicate that general privacy concerns or individual disclosure concerns do not have a significant influence on the price valuation of personal information. Instead, prior disclosure behaviour in specific scenario, like with healthcare providers or social networks, is a better indicator of consumer price valuations.

The Insulation Board Industry - An Economic Analysis

Treesearch

Albert T. Schuler

1978-01-01

An econometric model of the domestic insulation board industry was developed to identify and quantify the major factors affecting quantity consumed and price. The factors identified were housing starts, residential improvement activity, disposable personal income, productivity, pulpwood and residue prices, and power costs. Disposable personal income was the most...

Strategies for Energy Conservation

ERIC Educational Resources Information Center

Rudd, Nancy M.; Longstreth, Molly

1978-01-01

Focusing on conservation in the residential area, the author describes five ways in which conservation can be encouraged or enforced: (1) higher prices, changed pricing structures, and/or taxes on energy to discourage use; (2) consumer education; (3) tax incentives and subsidies to promote installation of energy-saving equipment; (4) rationing;…

A Model of Price Search Behavior in Electronic Marketplace.

ERIC Educational Resources Information Center

Jiang, Pingjun

2002-01-01

Discussion of online consumer behavior focuses on the development of a conceptual model and a set of propositions to explain the main factors influencing online price search. Integrates the psychological search literature into the context of online searching by incorporating ability and cost to search for information into perceived search…

Quick Access: Find Statistical Data on the Internet.

ERIC Educational Resources Information Center

Su, Di

1999-01-01

Provides an annotated list of Internet sources (World Wide Web, ftp, and gopher sites) for current and historical statistical business data, including selected interest rates, the Consumer Price Index, the Producer Price Index, foreign currency exchange rates, noon buying rates, per diem rates, the special drawing right, stock quotes, and mutual…

Accounting for Water Insecurity in Modeling Domestic Water Demand

NASA Astrophysics Data System (ADS)

Galaitsis, S. E.; Huber-lee, A. T.; Vogel, R. M.; Naumova, E.

2013-12-01

Water demand management uses price elasticity estimates to predict consumer demand in relation to water pricing changes, but studies have shown that many additional factors effect water consumption. Development scholars document the need for water security, however, much of the water security literature focuses on broad policies which can influence water demand. Previous domestic water demand studies have not considered how water security can affect a population's consumption behavior. This study is the first to model the influence of water insecurity on water demand. A subjective indicator scale measuring water insecurity among consumers in the Palestinian West Bank is developed and included as a variable to explore how perceptions of control, or lack thereof, impact consumption behavior and resulting estimates of price elasticity. A multivariate regression model demonstrates the significance of a water insecurity variable for data sets encompassing disparate water access. When accounting for insecurity, the R-squaed value improves and the marginal price a household is willing to pay becomes a significant predictor for the household quantity consumption. The model denotes that, with all other variables held equal, a household will buy more water when the users are more water insecure. Though the reasons behind this trend require further study, the findings suggest broad policy implications by demonstrating that water distribution practices in scarcity conditions can promote consumer welfare and efficient water use.

Price and consumption of tobacco

PubMed Central

Singh, Virendra; Sharma, Bharat Bhushan; Saxena, Puneet; Meena, Hardayal; Mangal, Daya Krishan

2012-01-01

Background: It is thought that price increase in tobacco products leads to reduced consumption. Though many studies have substantiated this concept, it has not been well studied in India. Recently, price of tobacco products was increased due to ban on plastic sachets of chewing tobacco and increased tax in Rajasthan. This study was designed to evaluate the effect of price rise on overall consumption of tobacco in Jaipur city, Rajasthan. Materials and Methods: This study was carried out in Jaipur city. Two-staged stratified sampling was used. In the first phase of study, cost and consumption of various tobacco products in the months of February and April were enquired from 25 retail tobacco shops. In the second phase, tobacco consumption was enquired from 20 consecutive consumers purchasing any tobacco product from all the above retail tobacco shops. The data were statistically analyzed using descriptive statistics and paired “t” test. Results: The comparison of prices of tobacco products between February and April revealed that the price of cigarette, bidi, and chewing tobacco has increased by 19%, 21%, and 68%, respectively. Average decrease in sales of cigarettes, bidi, and chewing tobacco at shops included in the study were 14%, 23%, and 38%, respectively. The consumers purchasing tobacco also reported decreased consumption. Chewing tobacco showed the maximum reduction (21%). Consumption of cigarette and bidi has also reduced by 15% and 13%, respectively. Conclusion: It may be concluded that reduction in consumption is associated with increased price of tobacco products. Reduced consumption is comparative to the magnitude of price increase. PMID:22919157

Food prices and consumer demand: differences across income levels and ethnic groups.

PubMed

Ni Mhurchu, Cliona; Eyles, Helen; Schilling, Chris; Yang, Qing; Kaye-Blake, William; Genç, Murat; Blakely, Tony

2013-01-01

Targeted food pricing policies may improve population diets. To assess their effects on inequalities, it is important to determine responsiveness to price changes across income levels and ethnic groups. Our goal was to estimate price elasticity (PE) values for major commonly consumed food groups in New Zealand, by income and ethnicity. PE values represent percentage change in demand associated with 1% change in price of that good (own-PE) or another good (cross-PE). We used food expenditure data from national household economic surveys in 2007/08 and 2009/10 and Food Price Index data from 2007 and 2010. Adopting an Almost Ideal Demand System approach, own-PE and cross-PE estimates were derived for 24 food categories, household income quintiles, and two ethnic groups (Māori and non-Māori). Own-PE estimates (with two exceptions) ranged from -0.44 to -1.78. Cross-PE estimates were generally small; only 31% of absolute values were greater than 0.10. Excluding the outlier 'energy drinks', nine of 23 food groups had significantly stronger own-PEs for the lowest versus highest income quintiles (average regression-based difference across food groups -0.30 (95% CI -0.62 to 0.02)). Six own-PEs were significantly stronger among Māori; the average difference for Māori: non-Māori across food groups was -0.26 (95% CI -0.52 to 0.00). Food pricing policies have potential to improve population diets. The greater sensitivity of low-income households and Māori to price changes suggests the beneficial effects of such policies on health would be greatest for these groups.

Estimating Price Elasticity using Market-Level Appliance Data

DOE Office of Scientific and Technical Information (OSTI.GOV)

Fujita, K. Sydny

This report provides and update to and expansion upon our 2008 LBNL report “An Analysis of the Price Elasticity of Demand for Appliances,” in which we estimated an average relative price elasticity of -0.34 for major household appliances (Dale and Fujita 2008). Consumer responsiveness to price change is a key component of energy efficiency policy analysis; these policies influence consumer purchases through price both explicitly and implicitly. However, few studies address appliance demand elasticity in the U.S. market and public data sources are generally insufficient for rigorous estimation. Therefore, analysts have relied on a small set of outdated papers focusedmore » on limited appliance types, assuming long-term elasticities estimated for other durables (e.g., vehicles) decades ago are applicable to current and future appliance purchasing behavior. We aim to partially rectify this problem in the context of appliance efficiency standards by revisiting our previous analysis, utilizing data released over the last ten years and identifying additional estimates of durable goods price elasticities in the literature. Reviewing the literature, we find the following ranges of market-level price elasticities: -0.14 to -0.42 for appliances; -0.30 to -1.28 for automobiles; -0.47 to -2.55 for other durable goods. Brand price elasticities are substantially higher for these product groups, with most estimates -2.0 or more elastic. Using market-level shipments, sales value, and efficiency level data for 1989-2009, we run various iterations of a log-log regression model, arriving at a recommended range of short run appliance price elasticity between -0.4 and -0.5, with a default value of -0.45.« less

Understanding Price Elasticities to Inform Public Health Research and Intervention Studies: Key Issues

PubMed Central

Nghiem, Nhung; Genç, Murat; Blakely, Tony

2013-01-01

Pricing policies such as taxes and subsidies are important tools in preventing and controlling a range of threats to public health. This is particularly so in tobacco and alcohol control efforts and efforts to change dietary patterns and physical activity levels as a means of addressing increases in noncommunicable diseases. To understand the potential impact of pricing policies, it is critical to understand the nature of price elasticities for consumer products. For example, price elasticities are key parameters in models of any food tax or subsidy that aims to quantify health impacts and cost-effectiveness. We detail relevant terms and discuss key issues surrounding price elasticities to inform public health research and intervention studies. PMID:24028228

USSR Report, Consumer Goods and Domestic Trade, No. 77.

DTIC Science & Technology

1983-10-24

above all to the prices of clothing, knitwear and other products manufactured by consumer service enterprises on custom or- der for individuals. In...light of the fact that filling custom orders is more time- consuming , other things being equal, than large-scale industrial produc- tion of the same...340033 JPRS 84592 24 October 1983 USSR Report CONSUMER GOODS AND DOMESTIC TRADE No. 77 flätöltö FBIS FOREIGN BROADCAST INFORMATION SERVICE

The impact of taxation on tobacco consumption in Mexico.

PubMed

Jiménez-Ruiz, J A; Sáenz de Miera, B; Reynales-Shigematsu, L M; Waters, H R; Hernández-Avila, M

2008-04-01

The price of cigarettes to consumers in Mexico, and Latin America in general, remains low in comparison with other regions of the world. In Mexico, taxes represented 59% of the total price of cigarettes in 2006, compared to 75% or more in many high-income countries. The feasibility of raising taxes on cigarettes in Mexico--to both discourage consumption and increase revenues--is an important policy question. Using household survey data, we undertake a pooled cross-sectional analysis of the demand for cigarettes in Mexico. We use a two-part model to estimate the price elasticity of cigarettes. This model controls for the selection effect that arises from the fact that the impact of price on the decision to smoke or not is estimated using all households in the dataset. The results indicate that price is a significant factor in household decisions concerning smoking and the number of cigarettes smoked. Holding other factors constant, our simulations show that a 10% increase in the cigarette tax in Mexico--calculated as a percentage of the price--yields a 12.4% increase in the price to the consumer, a 6.4% decrease in consumption of cigarettes and a 15.7% increase in the revenue yielded by the tax. In Mexico, there are strong arguments for increasing cigarette taxes. Revenue raised could be used to further prevent tobacco consumption and to finance current funding shortages for the treatment of diseases related to smoking.

Half-size me? How calorie and price information influence ordering on restaurant menus with both half and full entrée portion sizes.

PubMed

Haws, Kelly L; Liu, Peggy J

2016-02-01

Many restaurants are increasingly required to display calorie information on their menus. We present a study examining how consumers' food choices are affected by the presence of calorie information on restaurant menus. However, unlike prior research on this topic, we focus on the effect of calorie information on food choices made from a menu that contains both full size portions and half size portions of entrées. This different focus is important because many restaurants increasingly provide more than one portion size option per entrée. Additionally, we examine whether the impact of calorie information differs depending on whether full portions are cheaper per unit than half portions (non-linear pricing) or whether they have a similar per unit price (linear pricing). We find that when linear pricing is used, calorie information leads people to order fewer calories. This decrease occurs as people switch from unhealthy full sized portions to healthy full sized portions, not to unhealthy half sized portions. In contrast, when non-linear pricing is used, calorie information has no impact on calories selected. Considering the impact of calorie information on consumers' choices from menus with more than one entrée portion size option is increasingly important given restaurant and legislative trends, and the present research demonstrates that calorie information and pricing scheme may interact to affect choices from such menus. Copyright © 2015 Elsevier Ltd. All rights reserved.

5 CFR 591.225 - Which CPIs does OPM use?

Code of Federal Regulations, 2014 CFR

2014-01-01

...—the BLS Consumer Price Index, All Urban Consumers (CPI-U); (b) For all COLA areas in the State of Alaska—the BLS CPI-U for Anchorage, AK; (c) For all COLA areas in the State of Hawaii and for Guam and...

5 CFR 591.225 - Which CPIs does OPM use?

Code of Federal Regulations, 2011 CFR

2011-01-01

...—the BLS Consumer Price Index, All Urban Consumers (CPI-U); (b) For all COLA areas in the State of Alaska—the BLS CPI-U for Anchorage, AK; (c) For all COLA areas in the State of Hawaii and for Guam and...

5 CFR 591.225 - Which CPIs does OPM use?

Code of Federal Regulations, 2010 CFR

2010-01-01

...—the BLS Consumer Price Index, All Urban Consumers (CPI-U); (b) For all COLA areas in the State of Alaska—the BLS CPI-U for Anchorage, AK; (c) For all COLA areas in the State of Hawaii and for Guam and...

5 CFR 591.225 - Which CPIs does OPM use?

Code of Federal Regulations, 2013 CFR

2013-01-01

...—the BLS Consumer Price Index, All Urban Consumers (CPI-U); (b) For all COLA areas in the State of Alaska—the BLS CPI-U for Anchorage, AK; (c) For all COLA areas in the State of Hawaii and for Guam and...

5 CFR 591.225 - Which CPIs does OPM use?

Code of Federal Regulations, 2012 CFR

2012-01-01

...—the BLS Consumer Price Index, All Urban Consumers (CPI-U); (b) For all COLA areas in the State of Alaska—the BLS CPI-U for Anchorage, AK; (c) For all COLA areas in the State of Hawaii and for Guam and...

14 CFR 254.6 - Periodic adjustments.

Code of Federal Regulations, 2010 CFR

2010-01-01

... Aeronautics and Space OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION (AVIATION PROCEEDINGS) ECONOMIC REGULATIONS DOMESTIC BAGGAGE LIABILITY § 254.6 Periodic adjustments. The Department of Transportation will... the Consumer Price Index for All Urban Consumers as of July of each review year to calculate the...

A Model to Predict Shopper Reaction to Commissary Stockouts

DTIC Science & Technology

1989-12-01

consumer behavior brought about by inflation. Because food items doubled in price during the 1970s, these authors focus their study on the purchase...situation, and shopper characteristics - were used to predict consumer behavior . The investigative questions which addressed demographics used ten...demographic variables in an attempt to predict consumer behavior . The variables were sex, age, education, household description, number of children

The Determinants of Organic Vegetable Purchasing in Jabodetabek Region, Indonesia.

PubMed

Slamet, Alim Setiawan; Nakayasu, Akira; Bai, Hu

2016-12-07

Over the last few years, the global market of organic vegetables has grown. This is due to increased consumer concern regarding environmental and health issues, especially for food products. This study aims to examine factors that influence consumer behavior in purchasing organic vegetables. In this study, data were obtained from household surveys conducted in the Jabodetabek region (Greater Jakarta) from February to March 2015. Descriptive analysis, factor analysis, and a binary logit model were used to analyze the data. Subsequently, the results show that consumers with fewer family members and have a higher income, and are price tolerant, are more likely to purchase organic vegetables. Meanwhile, female consumers are less likely to buy organic vegetables. Another important finding is that positive attitude towards organic products, safety and health, environmental concerns, as well as degree of trust in organic attributes, are the determinants of organic vegetable purchasing among consumers. Therefore, based on the study results, the following recommendations are needed for organic vegetable development in Indonesia: (a) implementing an appropriate pricing strategy; (b) encouraging organic labeling and certification for vegetables; and (c) intensively promoting organic food with respect to consumers' motives and concerns on health, safety, as well as environmental sustainability.

Consumers' acceptance of innovations in traditional cheese. A comparative study in France and Norway.

PubMed

Almli, Valérie Lengard; Naes, Tormod; Enderli, Géraldine; Sulmont-Rossé, Claire; Issanchou, Sylvie; Hersleth, Margrethe

2011-08-01

This study explores consumers' acceptance of innovations in traditional cheese in France (n=120) and Norway (n=119). The respondents were presented with 16 photographs of a traditional cheese from their respective countries, varying according to six factors: pasteurisation, organic production, omega-3, packaging, price and appropriateness. For each of the scenarios the consumers indicated their willingness to buy the cheese on a nine-point scale. Results show that consumers' willingness to buy traditional cheese is highly driven by price, appropriateness and pasteurisation in both countries. However, on average consumers in the French sample prefer buying raw milk cheese, while consumers in the Norwegian sample prefer buying pasteurised cheese. These general trends are led by a pro-raw milk segment in France and a pro-pasteurised milk segment in Norway. Several interaction effects involving appropriateness are detected, indicating the importance of the consumption context on the acceptance of innovations in traditional cheese. On a general level, the results indicate that well-accepted innovations in traditional cheese are those that reinforce the traditional and authentic character of the product. Copyright © 2011 Elsevier Ltd. All rights reserved.

A Multilateral Negotiation Model for Cloud Service Market

NASA Astrophysics Data System (ADS)

Yoo, Dongjin; Sim, Kwang Mong

Trading cloud services between consumers and providers is a complicated issue of cloud computing. Since a consumer can negotiate with multiple providers to acquire the same service and each provider can receive many requests from multiple consumers, to facilitate the trading of cloud services among multiple consumers and providers, a multilateral negotiation model for cloud market is necessary. The contribution of this work is the proposal of a business model supporting a multilateral price negotiation for trading cloud services. The design of proposed systems for cloud service market includes considering a many-to-many negotiation protocol, and price determining factor from service level feature. Two negotiation strategies are implemented: 1) MDA (Market Driven Agent); and 2) adaptive concession making responding to changes of bargaining position are proposed for cloud service market. Empirical results shows that MDA achieved better performance in some cases that the adaptive concession making strategy, it is noted that unlike the MDA, the adaptive concession making strategy does not assume that an agent has information of the number of competitors (e.g., a consumer agent adopting the adaptive concession making strategy need not know the number of consumer agents competing for the same service).

Racial and Ethnic Differences in What Smokers Report Paying for Their Cigarettes

PubMed Central

Kong, Amanda Y.; Ribisl, Kurt M.

2016-01-01

Introduction: Smoking rates and tobacco-related health problems vary by race and ethnicity. We explore whether cigarette prices, a determinant of tobacco use, differ across racial and ethnic groups, and whether consumer behaviors influence these differences. Methods: We used national Tobacco Use Supplement data from 23 299 adult smokers in the United States to calculate average reported cigarette pack prices for six racial and ethnic groups. Using multivariate regression models, we analyzed the independent effect of race and ethnicity on price, and whether these effects changed once indicators of carton purchasing, menthol use, Indian reservation purchase, and state market prices were incorporated. Results: American Indians and whites pay similar amounts and report the lowest prices. Blacks, Hispanics, and Asians reported paying $0.42, $0.68, and $0.89 more for a pack of cigarettes than whites. After accounting for differences in consumer behaviors, these gaps shrunk to $0.27, $0.29, and $0.27, respectively, while American Indians paid $0.38 more than whites. Pack buying was associated with $0.99 higher per-pack prices than carton buying, which was most common among whites. Additionally, people who purchased off an Indian reservation reporting paying $1.54 more than those who purchased on reservation. Conclusions: Average reported cigarette prices vary by race and ethnicity, in part due to differences in product use and purchase location. Tobacco price policies, especially those that target low prices for multipack products or on Indian reservations may increase the prices paid by whites and American Indians, who smoke at the highest rates and pay the least per pack. Implications: This study examines differences in reported prices paid by different racial and ethnic groups, using recent, national data from the United States. Results indicating that racial and ethnic groups that smoke at the highest rates (American Indians and whites) also pay the least are consistent with evidence that price is a key factor in cigarette use. Additional analysis finds that cigarette purchasing behaviors, especially carton buying and purchasing on Indian reservations, partially account for the documented price differences, and suggest that policies focused on bulk purchases (carton, multipack) and reservation prices have strong tobacco control potential. PMID:26874329

Neurofunctional correlates of ethical, food-related decision-making.

PubMed

Cherry, J Bradley C; Bruce, Jared M; Lusk, Jayson L; Crespi, John M; Lim, Seung-Lark; Bruce, Amanda S

2015-01-01

For consumers today, the perceived ethicality of a food's production method can be as important a purchasing consideration as its price. Still, few studies have examined how, neurofunctionally, consumers are making ethical, food-related decisions. We examined how consumers' ethical concern about a food's production method may relate to how, neurofunctionally, they make decisions whether to purchase that food. Forty-six participants completed a measure of the extent to which they took ethical concern into consideration when making food-related decisions. They then underwent a series of functional magnetic resonance imaging (fMRI) scans while performing a food-related decision-making (FRDM) task. During this task, they made 56 decisions whether to purchase a food based on either its price (i.e., high or low, the "price condition") or production method (i.e., with or without the use of cages, the "production method condition"), but not both. For 23 randomly selected participants, we performed an exploratory, whole-brain correlation between ethical concern and differential neurofunctional activity in the price and production method conditions. Ethical concern correlated negatively and significantly with differential neurofunctional activity in the left dorsolateral prefrontal cortex (dlPFC). For the remaining 23 participants, we performed a confirmatory, region-of-interest (ROI) correlation between the same variables, using an 8-mm3 volume situated in the left dlPFC. Again, the variables correlated negatively and significantly. This suggests, when making ethical, food-related decisions, the more consumers take ethical concern into consideration, the less they may rely on neurofunctional activity in the left dlPFC, possibly because making these decisions is more routine for them, and therefore a more perfunctory process requiring fewer cognitive resources.

Metal prices in the United States through 2010

USGS Publications Warehouse

,

2013-01-01

This report, which updates and revises the U.S. Geological Survey (USGS) (1999) publication, “Metal Prices in the United States Through 1998,” presents an extended price history for a wide range of metals available in a single document. Such information can be useful for the analysis of mineral commodity issues, as well as for other purposes. The chapter for each mineral commodity includes a graph of annual current and constant dollar prices for 1970 through 2010, where available; a list of significant events that affected prices; a brief discussion of the metal and its history; and one or more tables that list current dollar prices. In some cases, the metal prices presented herein are for some alternative form of an element or, instead of a price, a value, such as the value for an import as appraised by the U.S. Customs Service. Also included are the prices for steel, steel scrap, and iron ore—steel because of its importance to the elements used to alloy with it, and steel scrap and iron ore because of their use in steelmaking. A few minor metals, such as calcium, potassium, sodium, strontium, and thorium, for which price histories were insufficient, were excluded. The annual prices given may be averages for the year, yearend prices, or some other price as appropriate for a particular commodity. Certain trade journals have been the source of much of this price information—American Metal Market, ICIS Chemical Business, Engineering and Mining Journal, Industrial Minerals, Metal Bulletin, Mining Journal, Platts Metals Week, Roskill Information Services Ltd. commodity reports, and Ryan’s Notes. Price information also is available in minerals information publications of the USGS (1880–1925, 1996–present) and the U.S. Bureau of Mines (1926–95), such as Mineral Commodity Summaries, Mineral Facts and Problems, Mineral Industry Surveys, and Minerals Yearbook. In addition to prices themselves, these journals and publications contain information relevant to prices, which has been helpful in the preparation of this publication. Prices in this report have been graphed in 1992 constant dollars to show the effects of inflation as measured by the U.S. Bureau of Labor Statistics Consumer Price Index for All Urban Consumers, a widely used measure of overall inflation in the United States. These prices are not tabulated, but a table of the deflators used is given in an appendix. Constant dollar prices can be used to show how prices that producers receive would have less purchasing power.

Inflation Accounting Methods and their Effectiveness

DTIC Science & Technology

1992-06-01

security is measured by the standard deviation of its returns in the past periods and is reflected in the security’ s market price . The Capital Asset Pricing ...purchasing power should be limited to items which are used by an average consumer. Economists tend to perceive the general price level as the cost of living...accounting. Two common measures of business performance are income and rate of return on capital . Since depreciation charges for long-lived assets do

How Much Will My Child's Operation Cost? Availability of Consumer Prices From US Hospitals for a Common Pediatric Orthopaedic Surgical Procedure.

PubMed

Racimo, Allison R; Talathi, Nakul S; Zelenski, Nicole A; Wells, Lawrence; Shah, Apurva S

2018-05-02

Price transparency allows patients to make value-based health care decisions and is particularly important for individuals who are uninsured or enrolled in high-deductible health care plans. The availability of consumer prices for children undergoing orthopaedic surgery has not been previously investigated. We aimed to determine the availability of price estimates from hospitals in the United States for an archetypal pediatric orthopaedic surgical procedure (closed reduction and percutaneous pinning of a distal radius fracture) and identify variations in price estimates across hospitals. This prospective investigation utilized a scripted telephone call to obtain price estimates from 50 "top-ranked hospitals" for pediatric orthopaedics and 1 "non-top-ranked hospital" from each state and the District of Columbia. Price estimates were requested using a standardized script, in which an investigator posed as the mother of a child with a displaced distal radius fracture that needed closed reduction and pinning. Price estimates (complete or partial) were recorded for each hospital. The number of calls and the duration of time required to obtain the pricing information was also recorded. Variation was assessed, and hospitals were compared on the basis of ranking, teaching status, and region. Less than half (44%) of the 101 hospitals provided a complete price estimate. The mean price estimate for top-ranked hospitals ($17,813; range, $2742 to $49,063) was 50% higher than the price estimate for non-top-ranked hospitals ($11,866; range, $3623 to $22,967) (P=0.020). Differences in price estimates were attributable to differences in hospital fees (P=0.003), not surgeon fees. Top-ranked hospitals required more calls than non-top-ranked hospitals (4.4±2.9 vs. 2.8±2.3 calls, P=0.003). A longer duration of time was required to obtain price estimates from top-ranked hospitals than from non-top-ranked hospitals (8.2±9.4 vs. 4.1±5.1 d, P=0.024). Price estimates for pediatric orthopaedic procedures are difficult to obtain. Top-ranked hospitals are more expensive and less likely to provide price information than non-top-ranked hospitals, with price differences primarily caused by variation in hospital fees, not surgeon fees. Level II-economic and decision analyses.

78 FR 11109 - International Settlements Policy Reform

Federal Register 2010, 2011, 2012, 2013, 2014

2013-02-15

... to foreign carriers' anticompetitive behavior in and timely and effective manner. Eliminating the ISP... routes giving U.S. consumers competitive pricing when they make international calls. The Commission also adopts certain limited measures to improve the Commission's ability to protect U.S. consumers from the...

78 FR 76033 - Truth in Lending (Regulation Z)

Federal Register 2010, 2011, 2012, 2013, 2014

2013-12-16

... BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 Truth in Lending (Regulation Z) AGENCY... Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) and the Home Ownership and... re-calculated annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers...

Preliminary Assessment of Spatial Competition in the Market for E85

DOE Office of Scientific and Technical Information (OSTI.GOV)

Clinton, Bentley

Anecdotal evidence suggests retail E85 prices may track retail gasoline prices rather than wholesale costs. This indicates E85 prices may be higher than they would be if priced on a cost basis hence limiting adoption by some price-sensitive consumers. Using publicly available and proprietary E83 and regular gasoline price data, we examine pricing behavior in the market for E85. Specifically, we assess the extent to which local retail competition in E85 markets decreases E85 retail prices. Results of econometric analysis suggest that higher levels of retail competition (measured in terms of station density) are associated with lower E85 prices atmore » the pump. While more precise causal estimates may be produced from more comprehensive data, this study is the first to our knowledge that estimates the spatial competition dimension of E85 pricing behavior by firms. This is an initial presentation; a related technical report is also available.« less

Preliminary Assessment of Spatial Competition in the Market for E85: Presentation Supplement

DOE Office of Scientific and Technical Information (OSTI.GOV)

Clinton, Bentley; Johnson, Caley; Moriarty, Kristi

Anecdotal evidence suggests retail E85 prices may track retail gasoline prices rather than wholesale costs. This indicates E85 prices may be higher than they would be if priced on a cost basis hence limiting adoption by some price-sensitive consumers. Using publicly available and proprietary E85 and regular gasoline price data, we examine pricing behavior in the market for E85. Specifically, we assess the extent to which local retail competition in E85 markets decreases E85 retail prices. Results of econometric analysis suggest that higher levels of retail competition (measured in terms of station density) are associated with lower E85 prices atmore » the pump. While more precise causal estimates may be produced from more comprehensive data, this study is the first to our knowledge that estimates the spatial competition dimension of E85 pricing behavior by firms. This technical report elaborates on a related presentation.« less

The effect of information on beef husbandry systems on consumers' preferences and willingness to pay.

PubMed

Risius, Antje; Hamm, Ulrich

2017-02-01

This paper evaluates communication treatments and price differentiation for beef raised organically and in conventional animal husbandry production systems. Data were obtained from a choice experiment, assessing animal husbandry, organic or conventional production and price, with 676 consumers in six grocery stores in three different German cities. When choosing beef, participants exhibited a high preference for enhanced husbandry conditions and organic production. Without further information about the husbandry conditions, 'organic' and 'pasture-based' production labelling was most likely to influence buying decisions. When informed about the conditions of 'extensive suckler cow husbandry', consumers were most likely to be motivated by the label 'extensive suckler cow husbandry', followed by 'organic production'; accordingly, willingness to pay for a beef steak was highest for 'extensive suckler cow husbandry'. Informing consumers about suckler cow husbandry results in a change of their preferences from 'organic' to 'extensive suckler cow husbandry'. This holds great potential for extensively produced beef. Copyright © 2016 Elsevier Ltd. All rights reserved.

Analyzing the Sensitivity of Hydrogen Vehicle Sales to Consumers' Preferences

DOE Office of Scientific and Technical Information (OSTI.GOV)

Greene, David L; Lin, Zhenhong; Dong, Jing

2013-01-01

The success of hydrogen vehicles will depend on consumer behavior as well as technology, energy prices and public policy. This study examines the sensitivity of the future market shares of hydrogen-powered vehicles to alternative assumptions about consumers preferences. The Market Acceptance of Advanced Automotive Technologies model was used to project future market shares. The model has 1,458 market segments, differentiated by travel behavior, geography, and tolerance to risk, among other factors, and it estimates market shares for twenty advanced power-train technologies. The market potential of hydrogen vehicles is most sensitive to the improvement of drive train technology, especially cost reduction.more » The long-run market success of hydrogen vehicles is less sensitive to the price elasticity of vehicle choice, how consumers evaluate future fuel costs, the importance of fuel availability and limited driving range. The importance of these factors will likely be greater in the early years following initial commercialization of hydrogen vehicles.« less

The influence of involvement and outcome messages on consumer reference prices

Treesearch

Gerard Kyle; Ercan Sirakaya

1998-01-01

As public leisure and recreation services become more accountable for their service's fiscal independence, service providers dependence on user fees continues to be a contentious issue. Annually, service managers are required to recommend price changes for services offered the following year in order to maintain existing service quality. Despite the emergent role...

College Costs: Recent Trends, Likely Future. Policy Brief.

ERIC Educational Resources Information Center

Henderson, Cathy

Recent trends in college costs and reasons why college costs have been increasing are considered. Comparative data are presented on recent rates of growth among average college charges, faculty salaries, the Higher Education Price Index (HEPI), and the Consumer Price Index (CPI). It is shown that from 1977 through 1982, average total tuition,…

21 CFR 200.200 - Prescription drugs; reminder advertisements and reminder labeling to provide price information to...

Code of Federal Regulations, 2011 CFR

2011-04-01

... 21 Food and Drugs 4 2011-04-01 2011-04-01 false Prescription drugs; reminder advertisements and... AND DRUG ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) DRUGS: GENERAL GENERAL Prescription Drug Consumer Price Listing § 200.200 Prescription drugs; reminder advertisements and reminder...

21 CFR 200.200 - Prescription drugs; reminder advertisements and reminder labeling to provide price information to...

Code of Federal Regulations, 2013 CFR

2013-04-01

... 21 Food and Drugs 4 2013-04-01 2013-04-01 false Prescription drugs; reminder advertisements and... AND DRUG ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) DRUGS: GENERAL GENERAL Prescription Drug Consumer Price Listing § 200.200 Prescription drugs; reminder advertisements and reminder...

21 CFR 200.200 - Prescription drugs; reminder advertisements and reminder labeling to provide price information to...

Code of Federal Regulations, 2014 CFR

2014-04-01

... 21 Food and Drugs 4 2014-04-01 2014-04-01 false Prescription drugs; reminder advertisements and... AND DRUG ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) DRUGS: GENERAL GENERAL Prescription Drug Consumer Price Listing § 200.200 Prescription drugs; reminder advertisements and reminder...

21 CFR 200.200 - Prescription drugs; reminder advertisements and reminder labeling to provide price information to...

Code of Federal Regulations, 2012 CFR

2012-04-01

... 21 Food and Drugs 4 2012-04-01 2012-04-01 false Prescription drugs; reminder advertisements and... AND DRUG ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) DRUGS: GENERAL GENERAL Prescription Drug Consumer Price Listing § 200.200 Prescription drugs; reminder advertisements and reminder...

E-Texts in the Classroom

ERIC Educational Resources Information Center

Hannon, Charles

2008-01-01

A May 2007 Congressional advisory committee found that average full-time undergraduates spent between $700 and $1,000 on textbooks in 2003-2004 and that from 1987-2004, textbook prices at four-year public colleges rose 109 percent compared to a rise in the Consumer Price Index of 65 percent. Higher education is transitioning from atoms…

What's the Difference? Teacher's Guide.

ERIC Educational Resources Information Center

National Federation of Independent Business, San Mateo, CA. Research and Education Foundation.

To assist students in comparing living standards in the Soviet Union and Western Nations, a chart containing data from a 1982 survey of the retail prices of 179 selected consumer goods and services is provided. Prices were converted into worktime equivalents and the capital of each country, with the exception of Munich, was chosen to represent the…

75 FR 33611 - Implementing the National Broadband Plan by Empowering Consumers and the Smart Grid: Data Access...

Federal Register 2010, 2011, 2012, 2013, 2014

2010-06-14

... Smart Grid: Data Access, Third Party Use, and Privacy AGENCY: Department of Energy. ACTION: Notice of... information from smart meters, historical consumption data, and pricing and billing information. DOE will hold... electronic form--including real-time information from smart meters, historical consumption data, and pricing...

On the Losing End

ERIC Educational Resources Information Center

Nealy, Michelle J.

2008-01-01

How well a particular industry fares during any given time has an impact on countless other industries and consumers. Case in point--rising gas prices are affecting everything from airfares to the price of getting a pizza delivered. This article describes a similar situation that is happening with the wave of home foreclosures as the subprime…

77 FR 11618 - Additional Guidance on Airfare/Air Tour Price Advertisements

Federal Register 2010, 2011, 2012, 2013, 2014

2012-02-27

... advertising rule. It describes several airline and ticket agent practices that the Office of Aviation... pop-ups or links adjacent to an advertised price to take the consumer to a listing of such charges, or... carrier's actual paid enplanements and fuel expenditures. It has come to our attention that some carriers...

Entry, Pricing, and Product Design in an Initially Monopolized Market

ERIC Educational Resources Information Center

Davis, Steven J.; Murphy, Kevin M.; Topel, Robert H.

2004-01-01

We analyze entry, pricing, and product design in a model with differentiated products. Market equilibrium can be "separating," with multiple sellers and a sorting of heterogeneous consumers across goods, or "exclusionary," with one seller serving all customer types. Entry into an initially monopolized market can occur because of cost reductions or…

Fruit and vegetable environment, policy, and pricing workshop: introduction to the conference proceedings.

PubMed

Seymour, Jennifer D; Fenley, Mary Ann; Yaroch, Amy Lazarus; Khan, Laura Kettel; Serdula, Mary

2004-09-01

Americans' consumption of fruits and vegetables has increased slightly over the last 10 years, but most people still do not meet the Dietary Guidelines recommendation to consume 5 to 9 servings per day. New and innovative strategies are needed if we are to significantly increase the mean population intake of fruits and vegetables. To help formulate such strategies as well as to evaluate evidence and identify research gaps, the American Cancer Society and the Centers for Disease Control and Prevention convened the Fruit and Vegetable Environment, Policy, and Pricing Workshop, which brought together experts in how environmental change, policy, and pricing affect fruit and vegetable consumption. The papers in this supplement consist of a review of environmental interventions to improve nutrition and papers covering pricing and consumer value and how fruit and vegetable consumption can be promoted at worksites, restaurants, grocery stores and other community settings, and schools. Conclusions from the workshop were that existing intervention strategies need to be evaluated, promising example programs need to be disseminated, and new innovative interventions and programs need to be created and evaluated.

Marketing and pricing strategies of online pharmacies.

PubMed

Levaggi, Rosella; Orizio, Grazia; Domenighini, Serena; Bressanelli, Maura; Schulz, Peter J; Zani, Claudia; Caimi, Luigi; Gelatti, Umberto

2009-10-01

Internet and e-commerce have profoundly changed society, the economy, and the world of health care. The web offers opportunities to improve health, but it may also represent a big health hazard since it is a basically unregulated market with very low consumer protection. In this paper we analyze marketing and pricing strategies of online pharmacies (OPs). Our analysis shows that OPs use strategies that would be more suitable for a commodity market than for drugs. These strategies differentiate according to variety (brand or generic), quality, quantity, and target group. OPs are well aware that the vacuum in the legislation allows them to reach a target of consumers that pharmacies cannot normally reach, such as those who would like to use the drug without consulting a physician (or, even worse, against the physician's advice). In this case, they usually charge a higher price, reassure the users by minimizing on the side effects, and induce them to bulk purchase through sensible price discounts. This analysis suggests that the selling of drugs via the Internet can turn into a "public health risk", as has been pointed out by the US Food and Drug Administration.

Economic indicators selection for crime rates forecasting using cooperative feature selection

NASA Astrophysics Data System (ADS)

Alwee, Razana; Shamsuddin, Siti Mariyam Hj; Salleh Sallehuddin, Roselina

2013-04-01

Features selection in multivariate forecasting model is very important to ensure that the model is accurate. The purpose of this study is to apply the Cooperative Feature Selection method for features selection. The features are economic indicators that will be used in crime rate forecasting model. The Cooperative Feature Selection combines grey relational analysis and artificial neural network to establish a cooperative model that can rank and select the significant economic indicators. Grey relational analysis is used to select the best data series to represent each economic indicator and is also used to rank the economic indicators according to its importance to the crime rate. After that, the artificial neural network is used to select the significant economic indicators for forecasting the crime rates. In this study, we used economic indicators of unemployment rate, consumer price index, gross domestic product and consumer sentiment index, as well as data rates of property crime and violent crime for the United States. Levenberg-Marquardt neural network is used in this study. From our experiments, we found that consumer price index is an important economic indicator that has a significant influence on the violent crime rate. While for property crime rate, the gross domestic product, unemployment rate and consumer price index are the influential economic indicators. The Cooperative Feature Selection is also found to produce smaller errors as compared to Multiple Linear Regression in forecasting property and violent crime rates.

On the demand for prescription drugs: heterogeneity in price responses.

PubMed

Skipper, Niels

2013-07-01

This paper estimates the price elasticity of demand for prescription drugs using an exogenous shift in consumer co-payment caused by a reform in the Danish subsidy scheme for the general public. Using purchasing records for the entire Danish population, I show that the average price response for the most commonly used drug yields demand elasticities in the range of -0.36 to -0.5. The reform is shown to affect women, the elderly, and immigrants the most. Furthermore, this paper shows significant heterogeneity in the price response over different types of antibiotics, suggesting that the price elasticity of demand varies considerably even across relatively similar drugs. Copyright © 2012 John Wiley & Sons, Ltd.

How Market Structure Drives Commodity Prices

NASA Astrophysics Data System (ADS)

Li, Bin; Wong, K. Y. Michael; Chan, Amos H. M.; So, Tsz Yan; Heimonen, Hermanni; Saad, David

To understand how market structure drives commodity price trends with respect to resource availability we introduce an agent-based model, in which agents set their prices to maximize profit. At steady state the market self-organizes into three groups: excess producers, consumers and balanced agents. When resources are scarce prices rise sharply below a turning point marking the disappearance of excess producers. By introducing an elasticity parameter to mitigate noise and long-term changes in commodities data, we confirm the trend of rising prices, provide evidence for turning points, and indicate yield points for less essential commodities. This work is supported by Research Grants Council of Hong Kong (Grant Numbers 604512, 605813, and 16322616) and the Leverhulme Trust RPG-2013-48.

Competition in the pharmaceutical industry: how do quality differences shape advertising strategies?

PubMed

de Frutos, Maria-Angeles; Ornaghi, Carmine; Siotis, Georges

2013-01-01

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side effects. Promotional effort results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising intensities are strategic substitutes, with the better quality drugs being the ones that are most advertised. This positive association stems from the higher rents that firms can extract from consumers whose brand loyalty is endogenously determined by promotional effort. The model's main results on advertising and pricing strategies are taken to the data. The latter consists of product level data on prices and quantities, product level advertising data, as well as the qualitative information on drug quality contained in the Orange Book compiled by the Food and Drug Administration (FDA). The empirical results provide strong support to the model's predictions. Copyright © 2012 Elsevier B.V. All rights reserved.

Consumer-defined health plans: emerging challenges from tort and contract.

PubMed

Morreim, E Haavi

2006-01-01

The emergence of Consumer-Defined Health Plans with large deductibles means that many people will be financially responsible for all or most of their healthcare during any given year. This increasing exposure to costs will bring important changes in the physician-patient relationship, as patients seek more information about the care their physicians propose. Litigation can be anticipated in two areas. First, in tort law, informed consent claims may allege that providers failed to disclose the likely costs and medical importance of their care. Second, in contract law, patients may challenge the reasonableness of the prices they are charged. This Article explores potential causes of action in both areas. Ultimately, increasing transparency of pricing may lend greater rationality not only to pricing structures but also, it is to be hoped, to healthcare itself, as cost-worthiness of care assumes higher priority in medical decisionmaking.

Association of consumers' sex and eyedness and lighting and wall color of a store with price attraction and perceived quality of goods and inside visual appeal.

PubMed

Barli, Onder; Bilgili, Bilsen; Dane, Senol

2006-10-01

The associations of sex and eyedness of consumers in a market and the market's lighting and wall color with price attraction and perceived quality of goods and the inside visual appeal were studied using an inventory after shopping by 440 men and 478 women, 20 to 60 years old (M = 29.3, SD = 10.2). Two lights (soft and bright) and 4 colors (blue, yellow, green, and red) and neutral light (white) were used. Women rated the prices of goods more attractive compared to men. In the total sample, left-eye preferents rated visual appeal higher compared to right-eye preferents. Bright light was associated with higher visual appeal than soft light. Green was associated with the highest inside visual appeal and perceived quality of goods, which may be due to its intermediate wavelength.

Transparency--"Deal or no deal"?

PubMed

Lutz, Sandy

2007-01-01

In the United States, transparency is becoming an ideal worthy of Mom and apple pie, like quality in healthcare. Physicians, payers, hospitals, business associations, and organizations representing patients have all chimed in expressing support. At the local, state, and national levels a variety of transparency initiatives are under way. How will transparency affect the healthcare industry? Transparency could profoundly change today's balance of power, for it is about information, and information is power. As employers push more cost sharing to workers, hospitals and health systems will have to construct a pricing structure that is meaningful to consumers. What are providers to do? To be successful with this new demand, providers should make sure they are making quality information as well as pricing information available to consumers. They will have to know the market, know what their own prices mean, consider the customer, and reengineer business processes around the patient rather than around the billing side of business.

Pigouvian taxation of energy for flow and stock externalities and strategic, noncompetitive energy pricing

DOE Office of Scientific and Technical Information (OSTI.GOV)

Wirl, F.

1994-01-01

The literature on energy and carbon taxes is by and large concerned about the derivation of (globally) efficient strategies. In contrast, this paper considers the dynamic interactions between cartelized energy suppliers and a consumers' government that collectively taxes energy carriers for Pigouvian motives. Two different kinds of external costs are associated with energy consumption: flow (e.g., acid rain) and stock externalities (e.g., global warming). The dynamic interactions between a consumers' government and a producers' cartel are modeled as a differential game with a subgame perfect Nash equilibrium in linear and nonlinear Markov strategies. The major implications are that the nonlinearmore » solutions are Pareto-inferior to the linear strategies and energy suppliers may preempt energy taxation and thereby may raise the price at front; however, this effect diminishes over time because the producers' price declines, while taxes increase. 22 refs., 5 figs., 1 tab.« less

Pay less, consume more? The price elasticity of home care for the disabled elderly in France.

PubMed

Roquebert, Quitterie; Tenand, Marianne

2017-09-01

Little is known about the price sensitivity of demand for home care of the disabled elderly. We partially fill this knowledge gap by using administrative data on the beneficiaries of the main French home care subsidy program in a department and exploiting interindividual variation in provider prices. We address the potential endogeneity of prices by taking advantage of the unequal spatial coverage of providers and instrumenting price by the number of municipalities served by a provider. We estimate a price elasticity of around -0.4 that is significantly different from both 0 and -1. This less than proportionate response of consumption to price has implications for the efficiency and redistributive impact of variation in the level of copayments in home care subsidy schemes. Copyright © 2017 John Wiley & Sons, Ltd.

Financial effects of pharmaceutical price regulation on R&D spending by EU versus US firms.

PubMed

Golec, Joseph; Vernon, John A

2010-01-01

EU countries closely regulate pharmaceutical prices, whereas the US does not. This paper shows how price constraints affect the profitability, stock returns and R&D spending of EU and US firms. Compared with EU firms, US firms are more profitable, earn higher stock returns and spend more on R&D. We tested the relationship between price regulation and R&D spending, and estimated the costs of tight EU price regulation. Although results show that EU consumers enjoyed much lower pharmaceutical price inflation, we estimated that price controls cost EU firms 46 fewer new medicines and 1680 fewer research jobs during our 19-year sample period. Had the US used controls similar to those used in the EU, we estimate it would have led to 117 fewer new medicines and 4368 fewer research jobs in the US.

[Animal welfare standards in ecological animal husbandry and the possibilities of their regulation].

PubMed

Sundrum, A

1993-02-01

There is an ethic claim to an increasing consideration of animal welfare in agricultural husbandry. To put this in practise requires the consumer's willingness to pay higher prices for food, produced according to animal's needs. A growing number of consumers is willing to do that. For the higher price the consumer expects a product-security, which guarantees processing standards by transparent criteria and inspection. Guidelines in organic agriculture regulate standards of animal welfare and environmental friendly production. Standards of animal welfare are far beyond those in protection of animals legislation. Nevertheless, they don't allow a general judgement about animal welfare in husbandry systems on organic ruled farms. A practicable and conclusive valuation-concept is necessary. It is referred to the animal needs index as a concept for valuation, which is already tested in practice.

State Approaches to Demand Reduction Induced Price Effects: Examining How Energy Efficiency Can Lower Prices for All

DOE Office of Scientific and Technical Information (OSTI.GOV)

Taylor, Colin; Hedman, Bruce; Goldberg, Amelie

Effects (DRIPE) as a real, quantifiable benefit of energy efficiency and demand response programs. DRIPE is a measurement of the value of demand reductions in terms of the decrease in wholesale energy prices, resulting in lower total expenditures on electricity or natural gas across a given grid. Crucially for policymakers and consumer advocates, DRIPE savings accrue not only to the subset of customers who consume less, but to all consumers. Rate-paying customers realize DRIPE savings when price reductions across an electricity or natural gas system are passed on to all retail customers as lower rates (depending upon regulation and marketmore » structure, residual savings may be wholly or partially retained by utilities). DRIPE savings, though seemingly small in terms of percent price reductions or dollars per household, can amount to hundreds of millions of dollars per year across entire states or grids. Therefore, accurately assessing DRIPE benefits can help to ensure appropriate programs are designed and implemented for energy efficiency measures. This paper reviews the existing knowledge and experience from select U.S. states regarding DRIPE (including New York and Ohio), and the potential for expanded application of the concept of DRIPE by regulators. Policymakers and public utility commissions have a critical role to play in setting the methodology for determining DRIPE, encouraging its capture by utilities, and allocating DRIPE benefits among utilities, various groups of customers, and/or society at large. While the methodologies for estimating DRIPE benefits are still being perfected, policymakers can follow the examples of states such as Maryland and Vermont in including conservative DRIPE estimates in their resource planning.« less

Estimating the Cost of Early Infant Male Circumcision in Zimbabwe: Results From a Randomized Noninferiority Trial of AccuCirc Device Versus Mogen Clamp

PubMed Central

Mavhu, Webster; Hatzold, Karin; Biddle, Andrea K.; Madidi, Ngonidzashe; Ncube, Getrude; Mugurungi, Owen; Ticklay, Ismail; Cowan, Frances M.; Thirumurthy, Harsha

2015-01-01

Background: Safe and cost-effective programs for implementing early infant male circumcision (EIMC) in Africa need to be piloted. We present results on a relative cost analysis within a randomized noninferiority trial of EIMC comparing the AccuCirc device with Mogen clamp in Zimbabwe. Methods: Between January and June 2013, male infants who met inclusion criteria were randomized to EIMC through either AccuCirc or Mogen clamp conducted by a doctor, using a 2:1 allocation ratio. We evaluated the overall unit cost plus the key cost drivers of EIMC using both AccuCirc and Mogen clamp. Direct costs included consumable and nonconsumable supplies, device, personnel, associated staff training, and environmental costs. Indirect costs comprised capital and support personnel costs. In 1-way sensitivity analyses, we assessed potential changes in unit costs due to variations in main parameters, one at a time, holding all other values constant. Results: The unit costs of EIMC using AccuCirc and Mogen clamp were $49.53 and $55.93, respectively. Key cost drivers were consumable supplies, capacity utilization, personnel costs, and device price. Unit prices are likely to be lowest at full capacity utilization and increase as capacity utilization decreases. Unit prices also fall with lower personnel salaries and increase with higher device prices. Conclusions: EIMC has a lower unit cost when using AccuCirc compared with Mogen clamp. To minimize unit costs, countries planning to scale-up EIMC using AccuCirc need to control costs of consumables and personnel. There is also need to negotiate a reasonable device price and maximize capacity utilization. PMID:26017658

The 2008 food price crisis negatively affected household food security and dietary diversity in urban Burkina Faso.

PubMed

Martin-Prevel, Yves; Becquey, Elodie; Tapsoba, Sylvestre; Castan, Florence; Coulibaly, Dramane; Fortin, Sonia; Zoungrana, Mahama; Lange, Matthias; Delpeuch, Francis; Savy, Mathilde

2012-09-01

Although the 2008 food price crisis presumably plunged millions of households into poverty and food insecurity, the real impact of the crisis has rarely been documented using field data. Our objective was to assess the consequences of this crisis for household food insecurity and dietary diversity in urban Burkina Faso. Two cross-sectional surveys were conducted among randomly selected households in Ouagadougou in July 2007 (n = 3017) and July 2008 (n = 3002). At each round, food insecurity assessed by the Household Food Insecurity Access Scale (HFIAS), the Dietary Diversity Score of an index-member of the household (IDDS = number of food groups consumed in the last 24 h), and food expenditure were collected. Food prices of the 17 most frequently consumed food items were recorded throughout the study area. Food prices at local markets increased considerably between 2007 and 2008, especially those of fish (113%), cereals (53%), and vegetable oil (44%), increasing the household monthly food expenditure by 18%. Thirty-three percent of households were food secure in 2007 and 22% in 2008 (P = 0.02). Individuals consumed fewer fruits and vegetables, dairy products, and meat/poultry in 2008 than in 2007 (mean IDDS = 5.7 ± 1.7 food groups in 2007 vs. 5.2 ± 1.5 in 2008; P < 0.0001). Differences in IDDS and HFIAS between the 2 y were even more marked after adjustment for confounding factors and food expenditure. Food security and dietary diversity significantly decreased between 2007 and 2008, whereas food prices increased. Households increased their food expenditure, but this was not sufficient to compensate the effects of the crisis.

Budget Constraints Affect Male Rats’ Choices between Differently Priced Commodities

PubMed Central

Kalenscher, Tobias

2015-01-01

Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal consumers, as demand theory predicts different elasticities for both conditions. However, in these studies, demand elasticity was only evaluated over the entirety of choices made from a budget. As compensating budgets changes the number of attainable commodities relative to uncompensated conditions, and thus the number of choices, it remained unclear whether budget compensation has a trivial effect on demand elasticity by simply sampling from a different total number of choices or has a direct effect on consumers’ sequential choice structure. If the budget context independently changes choices between commodities over and above price effects, this should become apparent when demand elasticity is assessed over choice sets of any reasonable size that are matched in choice opportunities between budget conditions. To gain more detailed insight in the sequential choice dynamics underlying differences in demand elasticity between budget conditions, we trained N=8 rat consumers to spend a daily budget by making a number of nosepokes to obtain two liquid commodities under different price regimes, in sessions with and without budget compensation. We confirmed that demand elasticity for both commodities differed between compensated and uncompensated budget conditions, also when the number of choices considered was matched, and showed that these elasticity differences emerge early in the sessions. These differences in demand elasticity were driven by a higher choice rate and an increased reselection bias for the preferred commodity in compensated compared to uncompensated budget conditions, suggesting a budget context effect on relative valuation. PMID:26053764

Conjoint analysis on the purchase intent for traditional fermented soy product (natto) among Japanese housewives.

PubMed

Kimura, Atsushi; Kuwazawa, Shigetaka; Wada, Yuji; Kyutoku, Yasushi; Okamoto, Masako; Yamaguchi, Yui; Masuda, Tomohiro; Dan, Ippeita

2011-04-01

The effect of sensory and extrinsic attributes on consumer intentions to purchase the Japanese traditional fermented soybean product natto was evaluated using conjoint analysis. Six attributes with 2 levels each were chosen and manipulated: price (high compared with low), the country of origin of the soybeans (domestic compared with imported), stickiness (strong compared with moderate), smell (rich compared with moderate), attached seasonings (attached compared with no attached seasonings), and the environmental friendliness of the packaging (high compared with low). A fractional factorial design was applied and 8 hypothetical product labels were produced. A sample of 479 Japanese housewives ranked these product labels based on their purchase intentions. Overall purchase intention was affected by country of origin, attached seasonings, and price; those attributes accounted for 81.0%, while the sensory attributes of the product accounted for 19.0% of purchase intents. In order to estimate market segments for the natto products based on consumer preference, a cluster analysis was performed. It identified 4 segments of consumers: 1 oriented to attached seasonings, another conscious of the price, and the other 2 oriented to origins. The behavioral and demographic characteristics of the respondents had a limited influence on segment membership.   This research was conducted to understand how consumers valuate various sensory and nonsensory product attributes based on their assessment of the overall product in the case of Japanese fermented soy product (natto). The data of this research would be of great importance both in understanding consumer behavior and in designing strategies for product development.

Pricing and Welfare in Health Plan Choice.

PubMed

Bundorf, M Kate; Levin, Jonathan; Mahoney, Neale

2012-12-01

Premiums in health insurance markets frequently do not reflect individual differences in costs, either because consumers have private information or because prices are not risk rated. This creates inefficiencies when consumers self-select into plans. We develop a simple econometric model to study this problem and estimate it using data on small employers. We find a welfare loss of 2-11 percent of coverage costs compared to what is feasible with risk rating. Only about one-quarter of this is due to inefficiently chosen uniform contribution levels. We also investigate the reclassification risk created by risk rating individual incremental premiums, finding only a modest welfare cost.

Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India

DOE Office of Scientific and Technical Information (OSTI.GOV)

Shah, Nihar; Abhyankar, Nikit; Park, Won Young

Improving efficiency of air conditioners (ACs) typically involves improving the efficiency of various components such as compressors, heat exchangers, expansion valves, refrigerant and fans. We estimate the incremental cost of improving the efficiency of room ACs based on the cost of improving the efficiency of its key components. Further, we estimate the retail price increase required to cover the cost of efficiency improvement, compare it with electricity bill savings, and calculate the payback period for consumers to recover the additional price of a more efficient AC. We assess several efficiency levels, two of which are summarized below in the report.more » The finding that significant efficiency improvement is cost effective from a consumer perspective is robust over a wide range of assumptions. If we assume a 50% higher incremental price compared to our baseline estimate, the payback period for the efficiency level of 3.5 ISEER is 1.1 years. Given the findings of this study, establishing more stringent minimum efficiency performance criteria (one star level) should be evaluated rigorously considering significant benefits to consumers, energy security and environment.« less

Beyond Price Comparisons: Towards a More Critical Consumer Education for Adults through Informal Sites of Learning

ERIC Educational Resources Information Center

Sandlin, Jennifer A.

2004-01-01

Over a decade ago, Oduran (1993) argued that consumer education was an emerging frontier of adult education. While the Adult Performance Level (APL) project in the 1970s sparked some interest in consumer and life skills within adult basic education and English as a second language (Lankshear, 1993; Levine, 1986; Sandlin, 2000), and while this push…

Effect of organic poultry purchase frequency on consumer attitudes toward organic poultry meat.

PubMed

Van Loo, Ellen; Caputo, Vincenzina; Nayga, Rodolfo M; Meullenet, Jean-Francois; Crandall, Philip G; Ricke, Steven C

2010-09-01

Because of the growing consumers' interest in organic meat, consumers' (N = 976) attitude toward organic meat was evaluated. Most respondents (59%) occasionally purchased organic chicken. To determine the organic chicken consumer profile, the organic chicken consumption frequencies of different demographic groups were compared. The results show dependence on age (P= 0.039) and ethnicity (P = 0.015). Older respondents as well as respondents who identified themselves as Caucasians tended to buy organic chicken more frequently. However, many other socio-demographic factors were not correlated with organic chicken consumption: gender (P = 0.185), education (P = 0.235), household income (0.867), living with partner or not (P = 0.235), and number of children (P = 0.883). Taste was identified as the most important meat quality attribute (perceived as [very] important by 94% of the respondents). Other important meat quality criteria were: general appearance, overall health, price, nutritional value, and containing no medical residues. "Organically produced" appeared to not be that important compared with other criteria. When respondents bought organic chicken more often, the importance of most of the meat quality attributes shifted to higher levels of importance, except for the price where an adverse effect was shown. The main motivation factors to buy organic chicken were the perception that organic chicken has fewer residues (pesticides, hormones, antibiotics), is safer, and healthier. The high price for organic meats was the strongest limiting factor for organic meat purchases followed by poor availability. Approximately 41% of the non-buyers and 30% of the occasional buyers perceived organic meat as not or hardly likely to be available in their supermarket. This study obtained a better knowledge of consumers' attitudes and perception of organic chicken as well as the effect of various demographics on the likelihood of buying organic chicken. For marketing purposes of organic meats, it helps to know which attributes consumers perceive as important, where the consumer purchases organic chicken, and what the perceived availability of organic chicken is. Additionally, the motivation and deterrent factors are described indicating why the consumer does or does not purchase organic chicken. This information can be valuable to help promoting organic meats to the consumers.

Consumer Choice Between Hospital-Based and Freestanding Facilities for Arthroscopy: Impact on Prices, Spending, and Surgical Complications.

PubMed

Robinson, James C; Brown, Timothy T; Whaley, Christopher; Bozic, Kevin J

2015-09-16

Hospital-based outpatient departments traditionally charge higher prices for ambulatory procedures, compared with freestanding surgery centers. Under emerging reference-based benefit designs, insurers establish a contribution limit that they will pay, requiring the patient to pay the difference between that contribution limit and the actual price charged by the facility. The purpose of this study was to evaluate the impact of reference-based benefits on consumer choices, facility prices, employer spending, and surgical outcomes for orthopaedic procedures performed at ambulatory surgery centers. We obtained data on 3962 patients covered by the California Public Employees' Retirement System (CalPERS) who underwent arthroscopy of the knee or shoulder in the three years prior to the implementation of reference-based benefits in January 2012 and on 2505 patients covered by CalPERS who underwent arthroscopy in the two years after implementation. Control group data were obtained on 57,791 patients who underwent arthroscopy and were not subject to reference-based benefits. The impact of reference-based benefits on consumer choices between hospital-based and freestanding facilities, facility prices, employer spending, and surgical complications was assessed with use of difference-in-differences multivariable regressions to adjust for patient demographic characteristics, comorbidities, and geographic location. By the second year of the program, the shift to reference-based benefits was associated with an increase in the utilization of freestanding ambulatory surgery centers by 14.3 percentage points (95% confidence interval, 8.1 to 20.5 percentage points) for knee arthroscopy and by 9.9 percentage points (95% confidence interval, 3.2 to 16.7 percentage points) for shoulder arthroscopy and a corresponding decrease in the use of hospital-based facilities. The mean price paid by CalPERS fell by 17.6% (95% confidence interval, -24.9% to -9.6%) for knee procedures and by 17.0% (95% confidence interval, -29.3% to -2.5%) for shoulder procedures. The shift to reference-based benefits was not associated with a change in the rate of surgical complications. In the first two years after the implementation of reference-based benefits, CalPERS saved $2.3 million (13%) on these two orthopaedic procedures. Reference-based benefits increase consumer sensitivity to price differences between freestanding and hospital-based surgical facilities. This study shows that the implementation of reference-based benefits does not result in a significant increase in measured complication rates for those subject to reference-based benefits. Copyright © 2015 by The Journal of Bone and Joint Surgery, Incorporated.

Bib Pharma Monopoly: Why Consumers Keep Landing on "Park Place" and How the Game is Rigged.

PubMed

Levy, Mark S

Now, more than ever before, pharmacologists are contributing medical advances to confront ravaging disease. They are developing drugs to mitigate the effects of Alzheimer’s, HIV, multiple sclerosis, and various forms of cancer. To capitalize on the opportunity, brand-name pharmaceutical firms are patenting these drugs, consequently guarding formulas and, with it, profits. Patents grant brand-name firms market exclusivity, which essentially allows them to set their own prices. Even though brand-name firms are investing some of their capital to cultivate new drugs, they also are enjoying gigantic revenue streams, absurd profit margins, and seemingly unfettered control of their respective markets. Consequently, sick patients are unable to afford their medication; high prices are bankrupting consumers in the absence of reasonably-priced generic alternatives. Despite the fact that generic drugs contain identical ingredients, cure the same symptoms, and cost 70% less, brand-name drugs persistently dominate their generic counterparts. Indeed, brand-name firms are improperly preventing generic market entry. Without generic competition, no watchdog exists to curb big pharma’s prohibitive prices. Despite the Supreme Court’s fleeting fix in FTC v. Actavis, which condemned reverse payment settlements that precluded competition, brand-name firms are employing other tactics predatorily to extend their market exclusivity and charge consumers unaffordable prices. To prevent brand-name abuse and help infirm patients afford their medication, this Comment proposes that courts apply federal antitrust law to brand-name firms that attempt to monopolize a pharmaceutical market through anticompetitive means, particularly by abusing Risk Evaluation & Mitigation Strategies (REMS) and by "product hopping." To combat exclusionary conduct, courts should mirror the “rule of reason” framework set forth in Actavis and apply an "enhanced" version specifically tailored to the pharmaceutical industry, giving stronger credence to generic challengers. In addition to finding brand-name tactics exclusionary, this Comment also proposes that courts adopt a bright-line rule prohibiting brand-name firms from exploiting the "legitimate business" defense to immunize their destructive conduct. The current framework perpetuates abuse and grants brand-name firms ostensibly indefinite monopolies. Analyzing brand-name defensive tactics under federal antitrust law would facilitate generic market entry and consequently moderate drug prices. Even after sacrificing their entire financial portfolios, patients are still unable to afford their medication. This Comment interprets Actavis as prohibiting the “legitimate business” defense and provides a remedy to deserving consumers by preventing REMS abuse and product hopping, fostering generic competition, and tempering excessive drug prices.

Adjusting Health Expenditures for Inflation: A Review of Measures for Health Services Research in the United States.

PubMed

Dunn, Abe; Grosse, Scott D; Zuvekas, Samuel H

2018-02-01

To provide guidance on selecting the most appropriate price index for adjusting health expenditures or costs for inflation. Major price index series produced by federal statistical agencies. We compare the key characteristics of each index and develop suggestions on specific indexes to use in many common situations and general guidance in others. Price series and methodological documentation were downloaded from federal websites and supplemented with literature scans. The gross domestic product implicit price deflator or the overall Personal Consumption Expenditures (PCE) index is preferable to the Consumer Price Index (CPI-U) to adjust for general inflation, in most cases. The Personal Health Care (PHC) index or the PCE health-by-function index is generally preferred to adjust total medical expenditures for inflation. The CPI medical care index is preferred for the adjustment of consumer out-of-pocket expenditures for inflation. A new, experimental disease-specific Medical Care Expenditure Index is now available to adjust payments for disease treatment episodes. There is no single gold standard for adjusting health expenditures for inflation. Our discussion of best practices can help researchers select the index best suited to their study. © Published 2016. This article is a U.S. Government work and is in the public domain in the USA.

A game theory model for stabilizing price of chili: A case study

NASA Astrophysics Data System (ADS)

Wardayanti, Ari; Aviv, Afgan Suffan; Sutopo, Wahyudi; Hisjam, Muh.

2017-11-01

Chili is one of the important agricultural commodity in Indonesia because of its widely consumption by the Indonesian. Chili becomes one of the commodities that experience price fluctuations and important cause of yearly inflation in Indonesia. The unstable price of chili is affected by the scarcity of the commodity in some months and the difference of the harvest season. This study proposes a model to solve the problem by considering the substitution of fresh chilies with dried chili. We propose the cooperative of chili's farmer as entities that process fresh chili into dry ones. The existence of substitution products is expected to maintain the price stability chili. This research was conducted by taking a case study on chili commodity markets in Surakarta which consists of 19 traditional markets. This study aims to create a price stabilization scheme with product substitution using a game theory model. There are 4 strategies proposed in game theory model to describe the relationship between producers and consumers. In this case, the producers are the farmers and the consumers are the trade market. A mixed strategy of was chosen to determine the optimal value among 4 strategies. From the calculation results obtained optimal value when doing a mixed strategy of IDR 201,188,829,000.

The pricing of U.S. hospital services: chaos behind a veil of secrecy.

PubMed

Reinhardt, Uwe E

2006-01-01

Although Americans and foreigners alike tend to think of the U.S. health care system as being a "market-driven" system, the prices actually paid for health care goods and services in that system have remained remarkably opaque. This paper describes how U.S. hospitals now price their services to the various third-party payers and self-paying patients, and how that system would have to be changed to accommodate the increasingly popular concept of "consumer-directed health care."

Consumer reaction to information on the labels of genetically modified food

PubMed Central

Sebastian-Ponce, Miren Itxaso; Sanz-Valero, Javier; Wanden-Berghe, Carmina

2014-01-01

OBJECTIVE To analyze consumer opinion on genetically modified foods and the information included on the label. METHODS A systematic review of the scientific literature on genetically modified food labeling was conducted consulting bibliographic databases (Medline – via PubMed –, EMBASE, ISI-Web of knowledge, Cochrane Library Plus, FSTA, LILACS, CINAHL and AGRICOLA) using the descriptors “organisms, genetically modified” and “food labeling”. The search covered the first available date, up to June 2012, selecting relevant articles written in English, Portuguese or Spanish. RESULTS Forty articles were selected after applying the inclusion and exclusion criteria. All of them should have conducted a population-based intervention focused on consumer awareness of genetically modified foods and their need or not, to include this on the label. The consumers expressed a preference for non-genetically modified products, and added that they were prepared to pay more for this but, ultimately, the product bought was that with the best price, in a market which welcomes new technologies. In 18 of the articles, the population was in favor of obligatory labelling, and in six, in favor of this being voluntary; seven studies showed the consumer knew little about genetically modified food, and in three, the population underestimated the quantity they consumed. Price was an influencing factor in all cases. CONCLUSIONS Label should be homogeneous and clarify the degree of tolerance of genetically modified products in humans, in comparison with those non-genetically modified. Label should also present the content or not of genetically modified products and how these commodities are produced and should be accompanied by the certifying entity and contact information. Consumers express their preference for non-genetically modifiedproducts and they even notice that they are willing to pay more for it, but eventually they buy the item with the best price, in a market that welcomes new technologies. PMID:24789648

The effect of alcohol price on dependent drinkers' alcohol consumption.

PubMed

Falkner, Carolyn; Christie, Grant; Zhou, Lifeng; King, Julian

2015-12-18

To investigate the current purchasing behaviours of a group of dependent drinkers and their potential response to future increases in the price of alcohol. 115 clients undergoing medical detoxification completed an anonymous survey about their daily alcohol consumption, its cost, their response to potential price increases and strategies previously used when unable to afford alcohol. Mean and median number of standard drinks consumed per day was 24, at a median cost of $25 NZD (95%CI $22, $30). Thirty-six per cent (95%CI 26%, 46%) of the group bought alcohol at $1 or less per standard drink, and the median number of drinks consumed per day (30) by this group was significantly higher (p=0.0028) than the rest of the sample (22.5). The most common strategy used if no money was available to purchase alcohol was to forgo essentials. If facing a potential price rise, 77% (95%CI 69%, 85%) would switch wholly or partially to a cheaper product and 13% (95%CI 8%, 21%) would cut down their drinking. Although the majority of our group would be financially impacted by an increase in the minimum price per standard drink, any potential impacts would be most significant in those buying the cheapest alcohol (who also drink the most), suggesting that minimum pricing may be an important harm minimisation strategy in this group. A minimum price per standard drink would limit the possibility of switching to an alternate cheaper product and likely result in an overall reduction in alcohol consumption in this group. Stealing alcohol, or the use of non-beverage alcohol, were seldom reported as previous strategies used in response to unaffordable alcohol and fears of such are not valid reasons for rejecting minimum pricing to reduce general population consumption.

Pricing and the psychology of consumption.

PubMed

Gourville, John; Soman, Dilip

2002-09-01

Most executives know how pricing influences the demand for a product, but few of them realize how it affects the consumption of a product. In fact, most companies don't even believe they can have an effect on whether customers use products they have already paid for. In this article, the authors argue that the relationship between pricing and consumption lies at the core of customer strategy. The extent to which a customer uses a product during a certain time period often determines whether he or she will buy the product again. So pricing tactics that encourage people to use the products they've paid for help companies build long-term relationships with customers. The link between pricing and consumption is clear: People are more likely to consume a product when they are aware of its cost. But for many executives, the idea that they should draw consumers' attention to the price that was paid for a product or service is counterintuitive. Companies have long sought to mask the costs of their goods and services in order to boost sales. And rightly so--if a company fails to make the initial sale, it won't have to worry about consumption. So to promote sales, health club managers encourage members to get the payment out of the way early; HMOs encourage automatic payroll deductions; and cruise lines bundle small, specific costs into a single, all-inclusive fee. The problem is, by masking how much a buyer has spent on a given product, these pricing tactics decrease the likelihood that the buyer will actually use it. This article offers some new approaches to pricing--how and when to charge for goods and services--that may boost consumption.

Further Study on the Affordability of Alcoholic Beverages in the EU: A Focus on Excise Duty Pass-Through, On- and Off-Trade Sales, Price Promotions and Statutory Regulations.

PubMed

Rabinovich, Lila; Hunt, Priscillia; Staetsky, Laura; Goshev, Simo; Nolte, Ellen; Pedersen, Janice S; Tiefensee, Christine

2012-01-01

Policies related to alcohol pricing, promotion and discounts provide opportunities to address harms associated with alcohol misuse. However, there are important gaps in information and knowledge about the regulations in place across parts of Europe and their impacts on consumer prices and locations of purchase. Using market data, we explored the overall scale and trend of price promotions and discounts in the off-premise (e.g. supermarket) and on-premise (e.g. restaurants, pubs) across five EU Member States. To better understand the factors that may influence sales in the on- vs. off-premises, we performed regression analysis for four EU Member States with relevant data. This found that increases in broadband penetration and population density were associated with relatively higher levels of off-premise alcohol purchases and that increases in income were associated with relatively higher levels of on-premise purchases of alcohol. There was no statistically significant relationship for female higher education. We further used time-series methods, drawing on data for Ireland, Latvia, Slovenia and Finland, to estimate the impact of changes in excise duty on price ("pass-through"). This showed that a €1 increase in excise duty increased beer prices by €0.50-€2.50 in the off-premise, and increased spirits prices by €0.70-€1.40 in the off-premise. These findings suggest that, depending on the price sensitivity of consumers and other strategies employed by suppliers (e.g. advertising), changes in excise duty may be an effective instrument to reduce harmful alcohol consumption.

Self-reported price of cigarettes, consumption and compensatory behaviours in a cohort of Mexican smokers before and after a cigarette tax increase.

PubMed

Saenz-de-Miera, Belen; Thrasher, James F; Chaloupka, Frank J; Waters, Hugh R; Hernandez-Avila, Mauricio; Fong, Geoffrey T

2010-12-01

To assess the impact of a 2007 cigarette tax increase from 110% to 140% of the price to the retailer on cigarette price and consumption among Mexican smokers, including efforts to offset price increases. Data were analysed from the 2006 and 2007 administrations of the International Tobacco Control (ITC) Policy Evaluation Survey in Mexico, which is a population-based cohort of adult smokers. Self-reported price of last cigarette purchase, place of last purchase, preferred brand, daily consumption and quit behaviour were assessed at baseline and follow-up. Self-reported cigarette prices increased by 12.7% after the tax increase, with prices for international brands increasing more than for national brands (13.5% vs 8.7%, respectively). Although the tax increases were not fully passed onto consumers particularly on national brands, no evidence was found for smokers changing behaviour to offset price increases. Consistent declines in consumption across groups defined by sociodemographic and smoking-related psychosocial variables suggest a relatively uniform impact of the tax increase across subpopulations. However, decreased consumption appeared limited to people who smoked relatively more cigarettes a day (>5 cigarettes/day). Average daily consumption among lighter smokers did not significantly decline. A total of 13% (n=98) of the sample reported being quit for a month or more at follow-up. In multivariate models, lighter smokers were more likely than heavier smokers to be quit. Results suggest that the 2007 tax increase was passed on to consumers, whose consumption generally declined. Since no other tobacco control policies or programmes were implemented during the period analysed, the tax increase appears likely to have decreased consumption.

Self-reported price of cigarettes, consumption and compensatory behaviours in a cohort of Mexican smokers before and after a cigarette tax increase

PubMed Central

Saenz-de-Miera, Belen; Chaloupka, Frank J; Waters, Hugh R; Hernandez-Avila, Mauricio; Fong, Geoffrey T

2010-01-01

Objective To assess the impact of a 2007 cigarette tax increase from 110% to 140% of the price to the retailer on cigarette price and consumption among Mexican smokers, including efforts to offset price increases. Methods Data were analysed from the 2006 and 2007 administrations of the International Tobacco Control (ITC) Policy Evaluation Survey in Mexico, which is a population-based cohort of adult smokers. Self-reported price of last cigarette purchase, place of last purchase, preferred brand, daily consumption and quit behaviour were assessed at baseline and follow-up. Results Self-reported cigarette prices increased by 12.7% after the tax increase, with prices for international brands increasing more than for national brands (13.5% vs 8.7%, respectively). Although the tax increases were not fully passed onto consumers particularly on national brands, no evidence was found for smokers changing behaviour to offset price increases. Consistent declines in consumption across groups defined by sociodemographic and smoking-related psychosocial variables suggest a relatively uniform impact of the tax increase across subpopulations. However, decreased consumption appeared limited to people who smoked relatively more cigarettes a day (>5 cigarettes/day). Average daily consumption among lighter smokers did not significantly decline. A total of 13% (n=98) of the sample reported being quit for a month or more at follow-up. In multivariate models, lighter smokers were more likely than heavier smokers to be quit. Conclusions Results suggest that the 2007 tax increase was passed on to consumers, whose consumption generally declined. Since no other tobacco control policies or programmes were implemented during the period analysed, the tax increase appears likely to have decreased consumption. PMID:20870740

Food Prices and Consumer Demand: Differences across Income Levels and Ethnic Groups

PubMed Central

Ni Mhurchu, Cliona; Eyles, Helen; Schilling, Chris; Yang, Qing; Kaye-Blake, William; Genç, Murat; Blakely, Tony

2013-01-01

Background Targeted food pricing policies may improve population diets. To assess their effects on inequalities, it is important to determine responsiveness to price changes across income levels and ethnic groups. Objective Our goal was to estimate price elasticity (PE) values for major commonly consumed food groups in New Zealand, by income and ethnicity. PE values represent percentage change in demand associated with 1% change in price of that good (own-PE) or another good (cross-PE). Design We used food expenditure data from national household economic surveys in 2007/08 and 2009/10 and Food Price Index data from 2007 and 2010. Adopting an Almost Ideal Demand System approach, own-PE and cross-PE estimates were derived for 24 food categories, household income quintiles, and two ethnic groups (Māori and non-Māori). Results Own-PE estimates (with two exceptions) ranged from −0.44 to −1.78. Cross-PE estimates were generally small; only 31% of absolute values were greater than 0.10. Excluding the outlier ‘energy drinks’, nine of 23 food groups had significantly stronger own-PEs for the lowest versus highest income quintiles (average regression-based difference across food groups −0.30 (95% CI −0.62 to 0.02)). Six own-PEs were significantly stronger among Māori; the average difference for Māori: non-Māori across food groups was −0.26 (95% CI −0.52 to 0.00). Conclusions Food pricing policies have potential to improve population diets. The greater sensitivity of low-income households and Māori to price changes suggests the beneficial effects of such policies on health would be greatest for these groups. PMID:24098408

Evolutionary model of an anonymous consumer durable market

NASA Astrophysics Data System (ADS)

Kaldasch, Joachim

2011-07-01

An analytic model is presented that considers the evolution of a market of durable goods. The model suggests that after introduction goods spread always according to a Bass diffusion. However, this phase will be followed by a diffusion process for durable consumer goods governed by a variation-selection-reproduction mechanism and the growth dynamics can be described by a replicator equation. The theory suggests that products play the role of species in biological evolutionary models. It implies that the evolution of man-made products can be arranged into an evolutionary tree. The model suggests that each product can be characterized by its product fitness. The fitness space contains elements of both sites of the market, supply and demand. The unit sales of products with a higher product fitness compared to the mean fitness increase. Durables with a constant fitness advantage replace other goods according to a logistic law. The model predicts in particular that the mean price exhibits an exponential decrease over a long time period for durable goods. The evolutionary diffusion process is directly related to this price decline and is governed by Gompertz equation. Therefore it is denoted as Gompertz diffusion. Describing the aggregate sales as the sum of first, multiple and replacement purchase the product life cycle can be derived. Replacement purchase causes periodic variations of the sales determined by the finite lifetime of the good (Juglar cycles). The model suggests that both, Bass- and Gompertz diffusion may contribute to the product life cycle of a consumer durable. The theory contains the standard equilibrium view of a market as a special case. It depends on the time scale, whether an equilibrium or evolutionary description is more appropriate. The evolutionary framework is used to derive also the size, growth rate and price distribution of manufacturing business units. It predicts that the size distribution of the business units (products) is lognormal, while the growth rates exhibit a Laplace distribution. Large price deviations from the mean price are also governed by a Laplace distribution (fat tails). These results are in agreement with empirical findings. The explicit comparison of the time evolution of consumer durables with empirical investigations confirms the close relationship between price decline and Gompertz diffusion, while the product life cycle can be described qualitatively for a long time period.

Value-based differential pricing: efficient prices for drugs in a global context.

PubMed

Danzon, Patricia; Towse, Adrian; Mestre-Ferrandiz, Jorge

2015-03-01

This paper analyzes pharmaceutical pricing between and within countries to achieve second-best static and dynamic efficiency. We distinguish countries with and without universal insurance, because insurance undermines patients' price sensitivity, potentially leading to prices above second-best efficient levels. In countries with universal insurance, if each payer unilaterally sets an incremental cost-effectiveness ratio (ICER) threshold based on its citizens' willingness-to-pay for health; manufacturers price to that ICER threshold; and payers limit reimbursement to patients for whom a drug is cost-effective at that price and ICER, then the resulting price levels and use within each country and price differentials across countries are roughly consistent with second-best static and dynamic efficiency. These value-based prices are expected to differ cross-nationally with per capita income and be broadly consistent with Ramsey optimal prices. Countries without comprehensive insurance avoid its distorting effects on prices but also lack financial protection and affordability for the poor. Improving pricing efficiency in these self-pay countries includes improving regulation and consumer information about product quality and enabling firms to price discriminate within and between countries. © 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.

Trends in U.S. food prices, 1950-2007.

PubMed

Christian, Thomas; Rashad, Inas

2009-03-01

The potential effect that food prices may have on the health of the U.S. population needs to be further explored, particularly in light of the rising food prices currently being observed. Declining food prices over time have been singled out as a main contributor, for example, to the rising trend in obesity. In this paper we use data from the Bureau of Labor Statistics, the American Chamber of Commerce Researchers Association, the Consumer Expenditure Survey, and the United States Department of Agriculture to analyze trends in various types of food prices, to create a food price index, and to estimate the price of a calorie. Results may be used by future researchers in estimating the health implications of these trends. We find that while the general trend in food prices has been declining, that of restaurant meal prices and prices of fruits and vegetables has risen over time. It is doubtful that the decline in food prices has been sufficiently large to account for the large increase in caloric intake that is said to have contributed to the obesity epidemic in the U.S.

47 CFR 1.1117 - Adjustments to charges.

Code of Federal Regulations, 2010 CFR

2010-10-01

.... (1) The fees will be adjusted by the Commission to reflect the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U) from the date of enactment of the authorizing legislation... these decisions be subject to petitions for reconsideration under § 1.429 of the rules. Requests for...

42 CFR 418.309 - Hospice cap amount.

Code of Federal Regulations, 2010 CFR

2010-10-01

... change in the medical care expenditure category of the Consumer Price Index (CPI) for urban consumers... 42 Public Health 3 2010-10-01 2010-10-01 false Hospice cap amount. 418.309 Section 418.309 Public Health CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED...

Three Essays on the Economics of Search

ERIC Educational Resources Information Center

Koulayev, Sergei

2010-01-01

This dissertation studies consumer search behavior in markets where buyers have incomplete information about available goods, such as markets with many sellers or frequently changing prices. In these markets, consumers engage in costly search in order to collect information necessary for making a purchase. Our method of investigation combines…

A Consumer Education Strategy for the Primary Grades.

ERIC Educational Resources Information Center

Schofer, Gill

1979-01-01

Provides five exercises designed to include real world experiences in consumer education for primary students. The identification of basic food items, development of a shopping list, assignment of shopping behavior (careful, careless), and a field trip to the supermarket precede filling out a chart with comparative prices, brand names, and total…

Resources for Family and Consumer Science Teachers, 1995.

ERIC Educational Resources Information Center

Scholl, Jan

This annotated bibliography of resources for family and consumer science teachers lists 59 items developed for "Teacher Pages" (an electronic information service) by Penn State Cooperative Extension Service between December 1, 1993 and December 1, 1994. Each listing includes a short description, source, address, price if appropriate, and ordering…

75 FR 46837 - Truth in Lending

Federal Register 2010, 2011, 2012, 2013, 2014

2010-08-04

... contains regulatory documents #0;having general applicability and legal effect, most of which are keyed #0... payable by the consumer at or before loan consummation exceed the greater of $400 or 8 percent of the... the annual percentage change reflected in the Consumer Price Index as reported on June 1. The adjusted...

Three Essays Identifying Consumer Behavior by Groups

ERIC Educational Resources Information Center

Holmgren, Mark Andrew

2010-01-01

This dissertation examines consumer behavior in different markets. Six different types of Utah snow skiers, namely, half day, local, multiday, college and K-12 students, and season ticket holders, are analyzed in the first paper to determine their demand response to changes in prices, income, weather, transportation costs, and particular days. A…

Tobacco product prices before and after a statewide tobacco tax increase.

PubMed

Brock, Betsy; Choi, Kelvin; Boyle, Raymond G; Moilanen, Molly; Schillo, Barbara A

2016-03-01

In 2013, the State of Minnesota Legislature passed a tobacco tax increase that increased the combined cigarette excise and sales tax by US$1.75 (from US$1.60 to US$3.35) and increased the tax on non-cigarette tobacco products from 70% to 95% of the wholesale price. The current study explores the change in tobacco prices in retail locations and whether the tax increase was fully passed to consumers. An observational study of tobacco retail prices was performed in a sample of 61 convenience stores in Minnesota, North Dakota, South Dakota and Wisconsin. Six rounds of data were collected between May 2013 and January 2014. In each round, purchases were made at the same stores for the same four tobacco products (Camel Blue cigarettes, Marlboro Gold cigarettes, Grizzly Wintergreen moist smokeless tobacco and Copenhagen Wintergreen moist smokeless tobacco). For all studied tobacco products, prices in Minnesota increased significantly after the tax increase (Round 1-Round 6). After controlling for price changes in neighbouring states, the average price difference in Minnesota for the two cigarette brands increased by US$1.89 and US$1.81, which are both more than the US$1.75 tax increase. For moist smokeless, the average price difference increased by US$0.90 and US$0.94. Significant price changes were not observed in the comparison states. After the introduction of the minimum moist smokeless tax, a significantly higher proportion of Minnesota stores offered price promotions on smokeless tobacco. A large tobacco tax resulted in an average retail cigarette price exceeding the tax, suggesting the industry over-shifted the cigarette tax increase to consumers in Minnesota. The findings support the known public health benefit of tobacco tax increases while highlighting the need for additional information about how, or if, tobacco companies use price promotions to blunt the impact of tax increases. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/

Determinants of price setting decisions on anti-malarial drugs at retail shops in Cambodia.

PubMed

Patouillard, Edith; Hanson, Kara; Kleinschmidt, Immo; Palafox, Benjamin; Tougher, Sarah; Pok, Sochea; O'Connell, Kate; Goodman, Catherine

2015-05-30

In many low-income countries, the private commercial sector plays an important role in the provision of malaria treatment. However, the quality of care it provides is often poor, with artemisinin combination therapy (ACT) generally being too costly for consumers. Decreasing ACT prices is critical for improving private sector treatment outcomes and reducing the spread of artemisinin resistance. Yet limited evidence exists on the factors influencing retailers' pricing decisions. This study investigates the determinants of price mark-ups on anti-malarial drugs in retail outlets in Cambodia. Taking an economics perspective, the study tests the hypothesis that the structure of the anti-malarial market determines the way providers set their prices. Providers facing weak competition are hypothesized to apply high mark-ups and set prices above the competitive level. To analyse the relationship between market competition and provider pricing, the study used cross-sectional data from retail outlets selling anti-malarial drugs, including outlet characteristics data (e.g. outlet type, anti-malarial sales volumes), range of anti-malarial drugs stocked (e.g. dosage form, brand status) and purchase and selling prices. Market concentration, a measure of the level of market competition, was estimated using sales volume data. Market accessibility was defined based on travel time to the closest main commercial area. Percent mark-ups were calculated using price data. The relationship between mark-ups and market concentration was explored using regression analysis. The anti-malarial market was on average highly concentrated, suggesting weak competition. Higher concentration was positively associated with higher mark-ups in moderately accessible markets only, with no significant relationship or a negative relationship in other markets. Other determinants of pricing included anti-malarial brand status and generic type, with higher mark-ups on cheaper products. The results indicate that provider pricing as well as other key elements of anti-malarial supply and demand may have played an important role in the limited access to appropriate malaria treatment in Cambodia. The potential for an ACT price subsidy at manufacturer level combined with effective communications directed at consumers and supportive private sector regulation should be explored to improve access to quality malaria treatment in Cambodia.

Examining the short-run price elasticity of gasoline demand in the United States

NASA Astrophysics Data System (ADS)

Brannan, Michael James

Estimating the consumer demand response to changes in the price of gasoline has important implications regarding fuel tax policies and environmental concerns. There are reasons to believe that the short-run price elasticity of gasoline demand fluctuates due to changing structural and behavioral factors. In this paper I estimate the short-run price elasticity of gasoline demand in two time periods, from 2001 to 2006 and from 2007 to 2010. This study utilizes data at both the national and state levels to produce estimates. The short-run price elasticities range from -0.034 to -0.047 during 2001 to 2006, compared to -0.058 to -0.077 in the 2007 to 2010 period. This paper also examines whether there are regional differences in the short-run price elasticity of gasoline demand in the United States. However, there appears to only be modest variation in price elasticity values across regions.

JPRS Report, Soviet Union, Kommunist, No. 3, February 1989

DTIC Science & Technology

1989-05-22

consumer , it would be best to lower or, perhaps, maintain the stability of food retail prices. However, during the first postwar decade the "wise...taxes imposed on their personal auxiliary farms, were forced to leave the countryside. From producers they turned into consumers of food- stuffs...structural balance between production and consumer demand. In this case it is a question both of developing anti-outlay incentives and motivations

Consumer-driven health care: tangible employer actions.

PubMed

Beauregard, Thomas R

2004-01-01

In response to double-digit health care cost increases, leading employers are aiming aggressive strategies at changing participant and provider behaviors--strategies that go well beyond the narrow idea of a new cost-sharing design. This article describes the elements of a comprehensive consumer-driven health care strategy and provides examples of tangible consumer-driven health care initiatives in the areas of design, pricing, contracting, support and public policy.

Estimating Demand Elasticities for Mobile Telecommunications in Austria

DTIC Science & Technology

2004-12-01

method to measure price elasticities relies on individual or survey data of consumer behavior . Independently of whether aggregated or individual data has...are able to distinguish between short- and long-run elasticities and to distinguish between consumer behavior on the firm level. 3 The Austrian...Insert Table 2 about here * In order to take a closer look on consumer behavior in the Austrian mobile telephone market, we have used four different

Gasoline Marketing: Premium Gasoline Overbuying May Be Occurring, but Extent Unknown.

DTIC Science & Technology

1991-02-01

Atlantic Richfield Company (ARCO) Mobil Oil Company Shell Oil Company Sun Refining and Marketing Company Consumer Groups American Automobile Association...Chairman: Consumers have the option of purchasing several different grades of unleaded gasoline-regular, mid-grade, and premium-which are classi...determine: (1) whether consumers were buying premium gasoline that they may not need, (2) whether the I .higher retail price of premium gasoline includes

Cost Reduction in Vertically Related Industries: Integration versus Nonlinear Pricing,

DTIC Science & Technology

1983-05-01

monopoly controlled -.0. by a welfare (profit plus consumer surplus) maximizing social planner. In the latter case (and only then), it is assumed...sufficient for both superior welfare and profit performance. Inducing the same final good implies that both consumer surplus and industry revenue will be...profits at zero, industry cost savings translate dollar for dollar into higher profits for the upstream monopolist. And, with the same consumer surplus

Consumers' attitudes towards GM Free products in a European Region. The case of the Prefecture of Drama-Kavala-Xanthi in Greece.

PubMed

Tsourgiannis, L; Karasavvoglou, A; Florou, G

2011-10-01

This study aims to identify the factors that affect consumers purchasing behaviour towards food products that are free from Genetic Modified Organism (GM Free) in a European Region and more precisely in the Prefecture of Drama-Kavala-Xanthi. Field interviews conducted in a random selected sample consisted of 337 consumers in the cities of Drama, Kavala, Xanthi, in November and December of 2009. Principal components analysis (PCA) was conducted in order to identify the factors that affect people in preferring consuming products that are GM Free. The factors that influence people in the study area to buy GM Free products are: (a) products' certification as GM Free or organic products, (b) interest about the protection of the environment and nutrition value, (c) marketing issues, and (d) price and quality. Furthermore, cluster and discriminant analysis identified two groups of consumers: (a) those are influenced by the product price, quality and marketing aspects and (b) those are interested in product's certification and environmental protection. Non parametric statistical bivariate techniques were performed to profile the identified groups of consumers regarding their personal characteristics and some other factors affecting their buying behaviour. Copyright © 2011. Published by Elsevier Ltd.

How consumers respond to the behavior of missing a free gift promotion: inaction inertia effect on products offered as free gifts.

PubMed

Liu, Tsung-Chi; Cheng, Ti; Ni, Feng-Yu

2011-01-01

Inaction inertia describes the phenomenon that an individual is unlikely to act on an attractive opportunity after having bypassed an even more attractive one. The results of two experiments indicate that after missing an initial opportunity to obtain a product as a free gift during a promotional period, the inaction inertia effect reduces the likelihood of consumers buying the product at a discounted price (second, inferior opportunity), particularly if the free gift has a high regular price. Additionally, according to the results of Experiment 2, those consumers are less likely to buy a product that has been offered previously as a free gift when a greater total quantity of the free gift is offered during a promotional period. Moreover, the mediation analysis results indicate that anticipated regret and valuation significantly impact the mediating role of inaction inertia.

Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects

DOE PAGES

Sioshansi, Ramteen; Denholm, Paul; Jenkin, Thomas; ...

2008-10-31

Here, significant increases in prices and price volatility of natural gas and electricity have raised interest in the potential economic opportunities for electricity storage. In this paper, we analyze the arbitrage value of a price-taking storage device in PJM during the six-year period from 2002 to 2007, to understand the impact of fuel prices, transmission constraints, efficiency, storage capacity, and fuel mix. The impact of load-shifting for larger amounts of storage, where reductions in arbitrage are offset by shifts in consumer and producer surplus as well as increases in social welfare from a variety of sources, is also considered.

Regulated Medicare Advantage And Marketplace Individual Health Insurance Markets Rely On Insurer Competition.

PubMed

Frank, Richard G; McGuire, Thomas G

2017-09-01

Two important individual health insurance markets-Medicare Advantage and the Marketplaces-are tightly regulated but rely on competition among insurers to supply and price health insurance products. Many local health insurance markets have little competition, which increases prices to consumers. Furthermore, both markets are highly subsidized in ways that can exacerbate the impact of market power-that is, the ability to set price above cost-on health insurance prices. Policy makers need to foster robust competition in both sectors and avoid designing subsidies that make the market-power problem worse. Project HOPE—The People-to-People Health Foundation, Inc.

Loss Aversion and Time-Differentiated Electricity Pricing

DOE Office of Scientific and Technical Information (OSTI.GOV)

Spurlock, C. Anna

2015-06-01

I develop a model of loss aversion over electricity expenditure, from which I derive testable predictions for household electricity consumption while on combination time-of-use (TOU) and critical peak pricing (CPP) plans. Testing these predictions results in evidence consistent with loss aversion: (1) spillover effects - positive expenditure shocks resulted in significantly more peak consumption reduction for several weeks thereafter; and (2) clustering - disproportionate probability of consuming such that expenditure would be equal between the TOUCPP or standard flat-rate pricing structures. This behavior is inconsistent with a purely neoclassical utility model, and has important implications for application of time-differentiated electricitymore » pricing.« less

The Determinants of Organic Vegetable Purchasing in Jabodetabek Region, Indonesia

PubMed Central

Slamet, Alim Setiawan; Nakayasu, Akira; Bai, Hu

2016-01-01

Over the last few years, the global market of organic vegetables has grown. This is due to increased consumer concern regarding environmental and health issues, especially for food products. This study aims to examine factors that influence consumer behavior in purchasing organic vegetables. In this study, data were obtained from household surveys conducted in the Jabodetabek region (Greater Jakarta) from February to March 2015. Descriptive analysis, factor analysis, and a binary logit model were used to analyze the data. Subsequently, the results show that consumers with fewer family members and have a higher income, and are price tolerant, are more likely to purchase organic vegetables. Meanwhile, female consumers are less likely to buy organic vegetables. Another important finding is that positive attitude towards organic products, safety and health, environmental concerns, as well as degree of trust in organic attributes, are the determinants of organic vegetable purchasing among consumers. Therefore, based on the study results, the following recommendations are needed for organic vegetable development in Indonesia: (a) implementing an appropriate pricing strategy; (b) encouraging organic labeling and certification for vegetables; and (c) intensively promoting organic food with respect to consumers’ motives and concerns on health, safety, as well as environmental sustainability. PMID:28231181

Consumer Behavior Under Conflicting Information Provided by Interested Parties: Implications for Equilibrium in the Market for Credence Goods.

PubMed

Russo, Carlo; Tufi, Eleonora

2016-01-01

Incomplete information in food consumption is a relevant topic in agricultural economics. This paper proposes a theoretical model describing consumer behavior, market equilibrium and public intervention in an industry where consumers must rely on the information of interested parties such as producers or associations. We provide simple game theory model showing the link between price competition and the strategic use of information. If information are unverifiable (as in the case of credence attributes) firms may have no incentive to advertise true claims and consumer decisions may be biased. Our model incorporates the opportunistic behavior of self-interested information providers. The result is a model of competition in prices and information finding a potential for market failure and public intervention. In the paper we discuss the efficiency of three possible regulations: banning false claims, subsidizing advertising campaigns, and public statement if favor of true claims. In that context, some recent patents related to both the regulatory compliance in communication and to the reduction of asymmetric information between producers and consumers have been considered. Finally, we found that the efficiency of these policy tools is affected by the reputation of trustworthiness of the firms.

How market structure drives commodity prices

NASA Astrophysics Data System (ADS)

Li, Bin; Wong, K. Y. Michael; Chan, Amos H. M.; So, Tsz Yan; Heimonen, Hermanni; Wei, Junyi; Saad, David

2017-11-01

We introduce an agent-based model, in which agents set their prices to maximize profit. At steady state the market self-organizes into three groups: excess producers, consumers and balanced agents, with prices determined by their own resource level and a couple of macroscopic parameters that emerge naturally from the analysis, akin to mean-field parameters in statistical mechanics. When resources are scarce prices rise sharply below a turning point that marks the disappearance of excess producers. To compare the model with real empirical data, we study the relationship between commodity prices and stock-to-use ratios in a range of commodities such as agricultural products and metals. By introducing an elasticity parameter to mitigate noise and long-term changes in commodities data, we confirm the trend of rising prices, provide evidence for turning points, and indicate yield points for less essential commodities.

Racial and Ethnic Differences in What Smokers Report Paying for Their Cigarettes.

PubMed

Golden, Shelley D; Kong, Amanda Y; Ribisl, Kurt M

2016-07-01

Smoking rates and tobacco-related health problems vary by race and ethnicity. We explore whether cigarette prices, a determinant of tobacco use, differ across racial and ethnic groups, and whether consumer behaviors influence these differences. We used national Tobacco Use Supplement data from 23 299 adult smokers in the United States to calculate average reported cigarette pack prices for six racial and ethnic groups. Using multivariate regression models, we analyzed the independent effect of race and ethnicity on price, and whether these effects changed once indicators of carton purchasing, menthol use, Indian reservation purchase, and state market prices were incorporated. American Indians and whites pay similar amounts and report the lowest prices. Blacks, Hispanics, and Asians reported paying $0.42, $0.68, and $0.89 more for a pack of cigarettes than whites. After accounting for differences in consumer behaviors, these gaps shrunk to $0.27, $0.29, and $0.27, respectively, while American Indians paid $0.38 more than whites. Pack buying was associated with $0.99 higher per-pack prices than carton buying, which was most common among whites. Additionally, people who purchased off an Indian reservation reporting paying $1.54 more than those who purchased on reservation. Average reported cigarette prices vary by race and ethnicity, in part due to differences in product use and purchase location. Tobacco price policies, especially those that target low prices for multipack products or on Indian reservations may increase the prices paid by whites and American Indians, who smoke at the highest rates and pay the least per pack. This study examines differences in reported prices paid by different racial and ethnic groups, using recent, national data from the United States. Results indicating that racial and ethnic groups that smoke at the highest rates (American Indians and whites) also pay the least are consistent with evidence that price is a key factor in cigarette use. Additional analysis finds that cigarette purchasing behaviors, especially carton buying and purchasing on Indian reservations, partially account for the documented price differences, and suggest that policies focused on bulk purchases (carton, multipack) and reservation prices have strong tobacco control potential. © The Author 2016. Published by Oxford University Press on behalf of the Society for Research on Nicotine and Tobacco. All rights reserved. For permissions, please e-mail: journals.permissions@oup.com.

The effect of extrinsic attributes on liking of cottage cheese.

PubMed

Hubbard, E M; Jervis, S M; Drake, M A

2016-01-01

Preference mapping studies with cottage cheese have demonstrated that cottage cheese liking is influenced by flavor, texture, curd size, and dressing content. However, extrinsic factors such as package, label claims, and brand name may also influence liking and have not been studied. The objective of this study was to evaluate the role of package attributes and brand on the liking of cottage cheese. A conjoint survey with Kano analysis (n=460) was conducted to explore the effect of extrinsic attributes (brand, label claim, milkfat content, and price) on liking. Following the survey, 150 consumers evaluated intrinsic attributes of 7 cottage cheeses with and without brand information in a 2-d crossover design. Results were evaluated by 2-way ANOVA and multivariate analyses. Milkfat content and price had the highest influence on liking by conjoint analysis. Cottage cheese with 2% milkfat and a low price was preferred. Specific label claims such as "excellent source of calcium (>10%)" were more attractive to consumers than "low sodium" or "extra creamy." Branding influenced overall liking and purchase intent for cottage cheeses to differing degrees. For national brands, acceptance scores were enhanced in the presence of the brand. An all-natural claim was more appealing than organic by conjoint analysis and this result was also confirmed with consumer acceptance testing. Findings from this study can help manufacturers, as well as food marketers, better target their products and brands with attributes that drive consumer choice. Copyright © 2016 American Dairy Science Association. Published by Elsevier Inc. All rights reserved.

High-Price And Low-Price Physician Practices Do Not Differ Significantly On Care Quality Or Efficiency

PubMed Central

Roberts, Eric T.; Mehrotra, Ateev; McWilliams, J. Michael

2017-01-01

Provider consolidation has intensified concerns that providers with market power may be able to charge higher prices without having to deliver better care. Providers have argued that higher prices cover the costs of delivering higher-quality care. We examined the relationship between physician practice prices for outpatient services and the quality and efficiency of care provided to their patients. Using commercial claims, we classified practices as high-priced or low-priced. We compared care quality, utilization, and spending between high-priced and low-priced practices in the same areas using data from the Consumer Assessment of Health Care Providers and Systems survey and linked claims for Medicare beneficiaries. Compared with low-priced practices, high-priced practices were much larger and received 36% higher prices. Patients of high-priced practices reported significantly higher scores on some measures of care coordination and management, but did not differ meaningfully in their overall care ratings, other domains of patient experiences (including physician ratings and access to care), receipt of mammography, vaccinations, or diabetes services, acute care use, or total Medicare spending. These findings suggest an overall weak relationship between practices’ prices and the quality and efficiency of care they provide, calling into question claims that high-priced providers deliver substantially higher-value care. PMID:28461352

Consumer preferences for reduced packaging under economic instruments and recycling policy.

PubMed

Yamaguchi, Keiko; Takeuchi, Kenji

2016-02-01

This study was conducted using a web-based survey and bidding game in contingent valuation method to evaluate consumer preferences for packaging with less material. Results revealed that people who live in a municipality implementing unit-based pricing of waste have a higher willingness-to-pay (WTP) for a product. Economic instruments can affect the purchase of products with reduced packaging because a higher disposal cost increases the attractiveness of source reduction. However, unit-based pricing combined with plastic separation for recycling reduces WTP. This result suggests that recycling policy weakens the effect of economic instruments on source reduction of waste. Copyright © 2015 Elsevier Ltd. All rights reserved.

Distribution strategy of energy supply chain based on corporate social responsibility

NASA Astrophysics Data System (ADS)

Song, Qiaona

2018-02-01

From corporate social responsibilities influence on the consumer`s preferences, applying the basic Idea of game theory, the study on tactics of profit distribution of the one-period game between manufacturer and vendor in energy supply chain,then the repetitive game results of the two partners are discussed. The results show that alliance pricing is the unique nash equilibrium of the one-period game between manufacturer and vendor,and the expect profit of both manufacturer and vendor will increase after cooperation in the range of agreed value of the profit distribution factor. It`s optimal for manufacturer and vendor to insist on alliance pricing for their long-term benefits in energy supply chain.

International alcohol control study: pricing data and hours of purchase predict heavier drinking.

PubMed

Casswell, Sally; Huckle, Taisia; Wall, Martin; Yeh, Li Chia

2014-05-01

This study reports findings from the International Alcohol Control (IAC) study that assesses the impact of alcohol control policy on consumption and policy-related behaviors. Modeled on the International Tobacco Control study that uses longitudinal surveys with comparison between countries, the baseline survey was carried out in New Zealand. This study reports analysis of the purchasing behavior respondents report separately for on- and off-premise outlets, providing validation data for both alcohol consumption and reported prices. New Zealand is a high-income country with an adult per capita alcohol consumption (as of 2011) of 9.5 l. The survey was carried out among a nationally representative sample of drinkers. Interview data on place and time of purchase, amounts purchased, price paid, and consumption (beverage and location specific) was collected. Relationships between policy relevant variables and consumption were modeled taking into account demographic variables. Validation was provided by government data on alcohol available for consumption, aggregate expenditure and prices from the Consumer Price Index. Drinkers paying low prices at on- or off-licensed premises had higher odds of consuming 6+ drinks on a typical occasion, as did drinkers purchasing alcohol at later times. Regarding frequency, drinkers purchasing at later times were more likely to be daily drinkers. Lower price in off licenses but not on licenses predicted daily drinking. The data collected accounted for approximately 96% of alcohol available for consumption and the prices accounted for 98% of aggregate expenditure. Valid survey data were collected to give an accurate picture of alcohol consumption and prices paid by drinkers. Heavy drinkers were more likely to buy cheaper alcohol and purchase at later times; 2 policy issues under discussion in many settings. This analysis suggests the IAC study that has the potential to provide data to contribute to the debate on appropriate policy responses to reduce alcohol-related harm. Copyright © 2014 by the Research Society on Alcoholism.

An improved maize marketing system for African countries: the case of Zimbabwe.

PubMed

Child, B; Muir, K; Blackie, M

1985-11-01

This article proposes a system for Zimbabwe which retains government control of national stocks and enables the parastatal marketing system to stabilize prices, at the same time ensuring a more rational delivery system in rural areas with prices reflecting storage and transport costs. The local population is encouraged to fulfill local needs, thus avoiding the expense of directing all marketing and processing through the urban areas. A more localized system will also have greater multiplier effects. Zimbabwe's maize marketing system is used to show how this system could be modified with benefits to rural consumers, producers and government. Data suggest there is little market exploitation: price differentials between markts reflect transport costs, returns on storage are reasonable, and voluntary procurement operations are usually able to stabilize prices. Zoning, movement restrictions and compulsory procurement have been shown to destabilize food markets; prices between markets are higher in periods of strict control than when marketing is relatively free. Controlled marketing answers a real political and economic need in Zimbabwe. Existing public food marketing agencies are not inherently inefficient. While stabilizing maize supply, there are important advantages in announcing preplanting prices, but any trade in maize only takes place after price setting. It is unlikely that there would be both imports and exports in any 1 year, except when previous contracts are being fulfilled. 2 policy options are available to cover anticipated periods of insufficient national maize production: the maintenance of a strategic reserve; and importation of maize to cover supply shortfalls. Single-channel marketing should be replaced by an internal free market operating between floor and ceiling prices by supply manipulation to prevent excessive producer and consumer welfare fluctuations. This system would be more efficient and have beneficial effects on development. It is more equitable for the rural poor, and result in greater stability of producer incomes, more reliable food supplies, higher producer prices and the release of public funds.

Using the animal to the last bit: Consumer preferences for different beef cuts.

PubMed

Scozzafava, Gabriele; Corsi, Armando Maria; Casini, Leonardo; Contini, Caterina; Loose, Simone Mueller

2016-01-01

Meat is expensive to produce, making it is essential to understand the importance consumers pay to different meat cuts. Previous research on consumers' meat choices has mainly focused on meat species, while consumer preferences for meat cuts has so far only received limited interest. The aim of this study is to shed some light into this relatively unexplored area by answering four research questions. First, this study intends to show the relative importance meat cuts play in relation to other extrinsic product attributes. Secondly, this paper looks into differences in choice criteria between regular and special occasions. Third, consumer segments that differ in their preferences and beef purchase are identified, and, finally, the meat purchase portfolios of these segments are revealed. A stated preference methodology of a discrete choice experiment with cut-specific prices covering several meat cuts simultaneously is proposed to answer the research questions. The sample consists of 1500 respondents representative of the Italian population in terms of age, gender and geographic location The results shows that meat cut is the most important factor when choosing bovine meat followed by quality certification (origin), production technique, the type of breed and price. In terms of consumption occasions, we observe significantly lower price sensitivity for marbled steaks and cutlets for special occasions compared to normal occasions. Segmentation analysis shows that while the choices of two segments (comprising about 40% of the sample) are mostly driven by extrinsic product attributes, the remaining segments are mostly driven by meat cuts. These varying preferences are also reflected in the purchase portfolios of the different segments, while less variability is detected from a socio-demographic perspective. Copyright © 2015 Elsevier Ltd. All rights reserved.

Cracking the Books: Policy Measures to Contain Textbook Costs. Policy Matters: A Higher Education Policy Brief

ERIC Educational Resources Information Center

McBain, Lesley

2009-01-01

As parents and students struggle with increasing college costs, one issue receiving considerable attention over the past several years has been the rising price of textbooks. The question of whether a relationship exists between textbook pricing and the overall cost of college has attracted notice from consumer interest groups and, subsequently,…

Estimating consumer willingness to pay a price premium for Alaska secondary wood products.

Treesearch

Geoffrey H. Donovan; David L. Nicholls

2003-01-01

Dichotomous choice contingent valuation survey techniques were used to estimate mean willingness to pay (WTP) a price premium for made-in-Alaska secondary wood products. Respondents were asked to compare two superficially identical end tables, one made in China and one made in Alaska. The surveys were administered at home shows in Anchorage, Fairbanks, and Sitka in...

Understanding electricity market reforms and the case of Philippine deregulation

DOE Office of Scientific and Technical Information (OSTI.GOV)

Santiago, Andrea; Roxas, Fernando

2010-03-15

The experience of the Philippines offers lessons that should be relevant to any country seeking to deregulate its power industry. Regardless of structure, consumers must face the real price of electricity production and delivery that is closer to marginal cost. Politically motivated prices merely shift the burden from ratepayers to taxpayers. And any reform should work within a reasonable timetable. (author)