Science.gov

Sample records for marginal cost pricing

  1. Electricity Prices in a Competitive Environment: Marginal Cost Pricing

    EIA Publications

    1997-01-01

    Presents the results of an analysis that focuses on two questions: (1) How are prices for competitive generation services likely to differ from regulated prices if competitive prices are based on marginal costs rather than regulated cost-of-service pricing? (2) What impacts will the competitive pricing of generation services (based on marginal costs) have on electricity consumption patterns, production costs, and the financial integrity of electricity suppliers?

  2. Marginal Cost Pricing and Efficient Provision of Public Recreation.

    ERIC Educational Resources Information Center

    Daniels, Steven E.

    1987-01-01

    Analysis of supply and demand functions for public campground recreation indicated that the estimated equilibrium price was considerably below the current price and that social welfare can be increased by charging the equilibrium price. Shifting to the equilibrium price had significantly negative revenue effects on the recreation-providing agency.…

  3. Price-cost margin in the pharmaceutical industry. Empirical evidence from Finland.

    PubMed

    Linnosmaa, Ismo; Hermans, Raine; Hallinen, Taru

    2004-06-01

    This contribution estimates the price-cost margin in the Finnish pharmaceutical industry. The estimation is based on the method developed by Hall who shows that under constant returns to scale total factor productivity growth depends on the growth of output-capital ratio if the market is imperfectly competitive. Measurement of the price-cost margin is based on this theoretical result. We utilize data on the Finnish pharmaceutical industry. The data cover the years 1975-1999 and include information on output, labor hours, and capital stock. The results show that the estimated price-cost margin is in the range 0.59-0.67, which is close to the estimates obtained in the United States market.

  4. Toward a new spacecraft optimal design lifetime? Impact of marginal cost of durability and reduced launch price

    NASA Astrophysics Data System (ADS)

    Snelgrove, Kailah B.; Saleh, Joseph Homer

    2016-10-01

    The average design lifetime of satellites continues to increase, in part due to the expectation that the satellite cost per operational day decreases monotonically with increased design lifetime. In this work, we challenge this expectation by revisiting the durability choice problem for spacecraft in the face of reduced launch price and under various cost of durability models. We first provide a brief overview of the economic thought on durability and highlight its limitations as they pertain to our problem (e.g., the assumption of zero marginal cost of durability). We then investigate the merging influence of spacecraft cost of durability and launch price, and we identify conditions that give rise cost-optimal design lifetimes that are shorter than the longest lifetime technically achievable. For example, we find that high costs of durability favor short design lifetimes, and that under these conditions the optimal choice is relatively robust to reduction in launch prices. By contrast, lower costs of durability favor longer design lifetimes, and the optimal choice is highly sensitive to reduction in launch price. In both cases, reduction in launch prices translates into reduction of the optimal design lifetime. Our results identify a number of situations for which satellite operators would be better served by spacecraft with shorter design lifetimes. Beyond cost issues and repeat purchases, other implications of long design lifetime include the increased risk of technological slowdown given the lower frequency of purchases and technology refresh, and the increased risk for satellite operators that the spacecraft will be technologically obsolete before the end of its life (with the corollary of loss of value and competitive advantage). We conclude with the recommendation that, should pressure to extend spacecraft design lifetime continue, satellite manufacturers should explore opportunities to lease their spacecraft to operators, or to take a stake in the ownership

  5. Wholesale marginal prices in competitive generation markets

    SciTech Connect

    Perez-Arriaga, I.J.; Meseguer, C.

    1997-05-01

    Wholesale marginal electricity prices are being used in several actual competitive generation markets worldwide, both to remunerate generators and to charge consumption. These prices must account not only for energy, but also for guarantee of supply in the long and the short term. This paper: (a) provides a sound conceptual and quantitative foundation for wholesale pricing based on generation services, where any existing restrictions in operation or planning in real power markets are accounted for, (b) clearly establishes the relationship between short term marginal costs, long term marginal costs and optimal wholesale electricity prices, and (c) identifies the reasons for mismatches in cost recovery with marginal generation prices. The theoretical results are verified with a detailed realistic power system model.

  6. Price and cost estimation

    NASA Technical Reports Server (NTRS)

    Stewart, R. D.

    1979-01-01

    Price and Cost Estimating Program (PACE II) was developed to prepare man-hour and material cost estimates. Versatile and flexible tool significantly reduces computation time and errors and reduces typing and reproduction time involved in preparation of cost estimates.

  7. Wastewater Treatment Costs and Outlays in Organic Petrochemicals: Standards Versus Taxes With Methodology Suggestions for Marginal Cost Pricing and Analysis

    NASA Astrophysics Data System (ADS)

    Thompson, Russell G.; Singleton, F. D., Jr.

    1986-04-01

    With the methodology recommended by Baumol and Oates, comparable estimates of wastewater treatment costs and industry outlays are developed for effluent standard and effluent tax instruments for pollution abatement in five hypothetical organic petrochemicals (olefins) plants. The computational method uses a nonlinear simulation model for wastewater treatment to estimate the system state inputs for linear programming cost estimation, following a practice developed in a National Science Foundation (Research Applied to National Needs) study at the University of Houston and used to estimate Houston Ship Channel pollution abatement costs for the National Commission on Water Quality. Focusing on best practical and best available technology standards, with effluent taxes adjusted to give nearly equal pollution discharges, shows that average daily treatment costs (and the confidence intervals for treatment cost) would always be less for the effluent tax than for the effluent standard approach. However, industry's total outlay for these treatment costs, plus effluent taxes, would always be greater for the effluent tax approach than the total treatment costs would be for the effluent standard approach. Thus the practical necessity of showing smaller outlays as a prerequisite for a policy change toward efficiency dictates the need to link the economics at the microlevel with that at the macrolevel. Aggregation of the plants into a programming modeling basis for individual sectors and for the economy would provide a sound basis for effective policy reform, because the opportunity costs of the salient regulatory policies would be captured. Then, the government's policymakers would have the informational insights necessary to legislate more efficient environmental policies in light of the wealth distribution effects.

  8. Costing and pricing.

    PubMed

    Jones, T

    1993-01-01

    With spreadsheets at the ready, accountants in the NHS are waiting to apply the uniform costing methodology emerging from the National Steering Group on Costing. Before the money-number-crunchers hijack its eventual final report Costing for contracts, general managers need to work out the implications for their role in pricing services and contracts.

  9. Cost Validation Using PRICE H

    NASA Technical Reports Server (NTRS)

    Jack, John; Kwan, Eric; Wood, Milana

    2011-01-01

    PRICE H was introduced into the JPL cost estimation tool set circa 2003. It became more available at JPL when IPAO funded the NASA-wide site license for all NASA centers. PRICE H was mainly used as one of the cost tools to validate proposal grassroots cost estimates. Program offices at JPL view PRICE H as an additional crosscheck to Team X (JPL Concurrent Engineering Design Center) estimates. PRICE H became widely accepted ca, 2007 at JPL when the program offices moved away from grassroots cost estimation for Step 1 proposals. PRICE H is now one of the key cost tools used for cost validation, cost trades, and independent cost estimates.

  10. Cost and Price Collaboration

    DTIC Science & Technology

    2016-04-30

    Management and currently teaches acquisition and program management courses for the Defense Acquisition University (DAU). Rao is part of the faculty of...Engineering and Management , Air Force Institute of Technology Cost and Price Collaboration Venkat Rao, Professor, Defense Acquisition University David Holm...the 12 states within the Midwest. Rao is also the Site Lead for the DAU-Midwest Sterling Heights office and has broad program management and product

  11. Wheeling rates based on marginal-cost theory

    SciTech Connect

    Merrill, H.M.; Erickson, B.W. )

    1989-11-01

    Knowledge of what rates for wheeling electric power would be, if based on marginal costs, is vital in the debate on how wheeling should be priced. This paper presents the first extensive computations of marginal costs of wheeling, and of rates based on these marginal costs. Sensitivities to losses, constraints, load levels, amount of power wheeled, revenue reconciliation, etc., are examined in the context of two case studies.

  12. The importance of time cost in pricing outpatient care.

    PubMed

    Heshmat, S

    1988-01-01

    The purpose of this article is to discuss the component of the full price charged to patients using outpatient care. The full price of a visit to a physician is equal to out-of-pocket payment (money price), and time costs. In particular, the article discusses the concept of time price (marginal value of time for a patient), and presents a specific example to illustrate the concept of time price elasticity. The concepts and information presented in this article can help marketing managers in setting pricing strategy that would explicitly consider time price.

  13. Marginal Pricing and Student Investment in Higher Education

    ERIC Educational Resources Information Center

    Hemelt, Steven W.; Stange, Kevin M.

    2016-01-01

    This paper examines the effect of marginal price on students' educational investments using rich administrative data on students at Michigan public universities. Marginal price refers to the amount colleges charge for each additional credit taken in a semester. Institutions differ in how they price credits above the full-time minimum (of 12…

  14. Marginal Costs and Formula-Based Funding.

    ERIC Educational Resources Information Center

    O'Connor, Ellen

    Marginal cost is the cost of producing an additional unit. In higher education, one marginal cost would be cost of educating an additional student. Formula-based budget determination for public higher education is usually based on average cost per student. This study estimates marginal cost and compares it with average cost. There are several…

  15. A comparison of pay-as-bid and marginal pricing in electricity markets

    NASA Astrophysics Data System (ADS)

    Ren, Yongjun

    This thesis investigates the behaviour of electricity markets under marginal and pay-as-bid pricing. Marginal pricing is believed to yield the maximum social welfare and is currently implemented by most electricity markets. However, in view of recent electricity market failures, pay-as-bid has been extensively discussed as a possible alternative to marginal pricing. In this research, marginal and pay-as-bid pricing have been analyzed in electricity markets with both perfect and imperfect competition. The perfect competition case is studied under both exact and uncertain system marginal cost prediction. The comparison of the two pricing methods is conducted through two steps: (i) identify the best offer strategy of the generating companies (gencos); (ii) analyze the market performance under these optimum genco strategies. The analysis results together with numerical simulations show that pay-as-bid and marginal pricing are equivalent in a perfect market with exact system marginal cost prediction. In perfect markets with uncertain demand prediction, the two pricing methods are also equivalent but in an expected value sense. If we compare from the perspective of second order statistics, all market performance measures exhibit much lower values under pay-as-bid than under marginal pricing. The risk of deviating from the mean is therefore much higher under marginal pricing than under pay-as-bid. In an imperfect competition market with exact demand prediction, the research shows that pay-as-bid pricing yields lower consumer payments and lower genco profits. This research provides quantitative evidence that challenges some common claims about pay-as-bid pricing. One is that under pay-as-bid, participants would soon learn how to offer so as to obtain the same or higher profits than what they would have obtained under marginal pricing. This research however shows that, under pay-as-bid, participants can at best earn the same profit or expected profit as under marginal

  16. Marginal Costing Techniques for Higher Education.

    ERIC Educational Resources Information Center

    Allen, Richard; Brinkman, Paul

    The techniques for calculating marginal costs in higher education are examined in detail. Marginal costs, as defined in economics, is the change in total cost associated with producing one additional unit of output. In higher education, the most frequently selected unit of output is a full-time-equivalent student or, alternatively, a student…

  17. The Shuttle Cost and Price model

    NASA Technical Reports Server (NTRS)

    Leary, Katherine; Stone, Barbara

    1983-01-01

    The Shuttle Cost and Price (SCP) model was developed as a tool to assist in evaluating major aspects of Shuttle operations that have direct and indirect economic consequences. It incorporates the major aspects of NASA Pricing Policy and corresponds to the NASA definition of STS operating costs. An overview of the SCP model is presented and the cost model portion of SCP is described in detail. Selected recent applications of the SCP model to NASA Pricing Policy issues are presented.

  18. Power systems locational marginal pricing in deregulated markets

    NASA Astrophysics Data System (ADS)

    Wang, Hui-Fung Francis

    Since the beginning of the 1990s, the electricity business is transforming from a vertical integrating business to a competitive market operations. The generation, transmission, distribution subsystem of an electricity utility are operated independently as Genco (generation subsystem), Transco (transmission subsystem), and Distco (distribution subsystem). This trend promotes more economical inter- and intra regional transactions to be made by the participating companies and the users of electricity to achieve the intended objectives of deregulation. There are various types of electricity markets that are implemented in the North America in the past few years. However, transmission congestion management becomes a key issue in the electricity market design as more bilateral transactions are traded across long distances competing for scarce transmission resources. It directly alters the traditional concept of energy pricing and impacts the bottom line, revenue and cost of electricity, of both suppliers and buyers. In this research, transmission congestion problem in a deregulated market environment is elucidated by implementing by the Locational Marginal Pricing (LMP) method. With a comprehensive understanding of the LMP method, new mathematical tools will aid electric utilities in exploring new business opportunities are developed and presented in this dissertation. The dissertation focuses on the development of concept of (LMP) forecasting and its implication to the market participants in deregulated market. Specifically, we explore methods of developing fast LMP calculation techniques that are differ from existing LMPs. We also explore and document the usefulness of the proposed LMP in determining electricity pricing of a large scale power system. The developed mathematical tools use of well-known optimization techniques such as linear programming that are support by several flow charts. The fast and practical security constrained unit commitment methods are the

  19. Phosphate rock costs, prices and resources interaction.

    PubMed

    Mew, M C

    2016-01-15

    This article gives the author's views and opinions as someone who has spent his working life analyzing the international phosphate sector as an independent consultant. His career spanned two price hike events in the mid-1970's and in 2008, both of which sparked considerable popular and academic interest concerning adequacy of phosphate rock resources, the impact of rising mining costs and the ability of mankind to feed future populations. An analysis of phosphate rock production costs derived from two major industry studies performed in 1983 and 2013 shows that in nominal terms, global average cash production costs increased by 27% to $38 per tonne fob mine in the 30 year period. In real terms, the global average cost of production has fallen. Despite the lack of upward pressure from increasing costs, phosphate rock market prices have shown two major spikes in the 30 years to 2013, with periods of less volatility in between. These price spike events can be seen to be related to the escalating investment cost required by new mine capacity, and as such can be expected to be repeated in future. As such, phosphate rock price volatility is likely to have more impact on food prices than rising phosphate rock production costs. However, as mining costs rise, recycling of P will also become increasingly driven by economics rather than legislation.

  20. Acquisition Cost/Price Estimating

    DTIC Science & Technology

    1981-01-01

    REVIEW AND VALIDATION, (3) RESEARCH AND METHODOLOGY AND (4) DATA ANALYSIS. THESE FUNCTIONAL THRUSTS ARE IN TURN FOCUSED TO ESTIMATING AND ANALISIS ...RELATIONSHIPS, CERs, IS LARGELY A FUNCTION OF THE QUANTITY AND QUALITY OF DATA THAT IS AVAILABLE AT THE TINE OF FORMULATION. IN ORDER TO ENSURE THAT SUCH COST...HAVE BEEN DISCUSSED PREVIOUSLY AS GOOD SOURCES OF DATA FOR COST ESTIMATING. THEIR PRIMARY FUNCTION , HOWEVER, IS TO PROVIDE THE ARMY WITH EARLY

  1. 49 CFR 19.45 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... 49 Transportation 1 2013-10-01 2013-10-01 false Cost and price analysis. 19.45 Section 19.45... Requirements Procurement Standards § 19.45 Cost and price analysis. Some form of cost or price analysis shall... analysis may be accomplished in various ways, including the comparison of price quotations...

  2. 29 CFR 95.45 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-07-01

    ... 29 Labor 1 2014-07-01 2013-07-01 true Cost and price analysis. 95.45 Section 95.45 Labor Office of... Procurement Standards § 95.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  3. 41 CFR 105-72.505 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... 41 Public Contracts and Property Management 3 2012-01-01 2012-01-01 false Cost and price analysis... § 105-72.505 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  4. 43 CFR 12.945 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... 43 Public Lands: Interior 1 2014-10-01 2014-10-01 false Cost and price analysis. 12.945 Section 12... Requirements § 12.945 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  5. 36 CFR 1210.45 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-07-01

    ... 36 Parks, Forests, and Public Property 3 2012-07-01 2012-07-01 false Cost and price analysis. 1210... § 1210.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be...

  6. 43 CFR 12.945 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... 43 Public Lands: Interior 1 2012-10-01 2011-10-01 true Cost and price analysis. 12.945 Section 12... Requirements § 12.945 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  7. 22 CFR 518.45 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... 22 Foreign Relations 2 2014-04-01 2014-04-01 false Cost and price analysis. 518.45 Section 518.45... Requirements Procurement Standards § 518.45 Cost and price analysis. Some form of cost or price analysis shall... analysis may be accomplished in various ways, including the comparison of price quotations...

  8. 43 CFR 12.945 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... 43 Public Lands: Interior 1 2013-10-01 2013-10-01 false Cost and price analysis. 12.945 Section 12... Requirements § 12.945 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  9. 7 CFR 550.47 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... 7 Agriculture 6 2011-01-01 2011-01-01 false Cost and price analysis. 550.47 Section 550.47... Agreements Procurement Standards § 550.47 Cost and price analysis. Some form of cost or price analysis shall... analysis may be accomplished in various ways, including the comparison of price quotations...

  10. 29 CFR 95.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... 29 Labor 1 2011-07-01 2011-07-01 false Cost and price analysis. 95.45 Section 95.45 Labor Office... Procurement Standards § 95.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  11. 41 CFR 105-72.505 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... 41 Public Contracts and Property Management 3 2011-01-01 2011-01-01 false Cost and price analysis... § 105-72.505 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  12. 14 CFR § 1260.145 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ... 14 Aeronautics and Space 5 2014-01-01 2014-01-01 false Cost and price analysis. § 1260.145....145 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in...

  13. 29 CFR 95.45 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-07-01

    ... 29 Labor 1 2012-07-01 2012-07-01 false Cost and price analysis. 95.45 Section 95.45 Labor Office... Procurement Standards § 95.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may...

  14. 22 CFR 518.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... 22 Foreign Relations 2 2011-04-01 2009-04-01 true Cost and price analysis. 518.45 Section 518.45... Requirements Procurement Standards § 518.45 Cost and price analysis. Some form of cost or price analysis shall... analysis may be accomplished in various ways, including the comparison of price quotations...

  15. 36 CFR 1210.45 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-07-01

    ... 36 Parks, Forests, and Public Property 3 2014-07-01 2014-07-01 false Cost and price analysis. 1210... § 1210.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be...

  16. Decommissioning Cost Estimating -The ''Price'' Approach

    SciTech Connect

    Manning, R.; Gilmour, J.

    2002-02-26

    Over the past 9 years UKAEA has developed a formalized approach to decommissioning cost estimating. The estimating methodology and computer-based application are known collectively as the PRICE system. At the heart of the system is a database (the knowledge base) which holds resource demand data on a comprehensive range of decommissioning activities. This data is used in conjunction with project specific information (the quantities of specific components) to produce decommissioning cost estimates. PRICE is a dynamic cost-estimating tool, which can satisfy both strategic planning and project management needs. With a relatively limited analysis a basic PRICE estimate can be produced and used for the purposes of strategic planning. This same estimate can be enhanced and improved, primarily by the improvement of detail, to support sanction expenditure proposals, and also as a tender assessment and project management tool. The paper will: describe the principles of the PRICE estimating system; report on the experiences of applying the system to a wide range of projects from contaminated car parks to nuclear reactors; provide information on the performance of the system in relation to historic estimates, tender bids, and outturn costs.

  17. Estimation of marginal costs at existing waste treatment facilities.

    PubMed

    Martinez-Sanchez, Veronica; Hulgaard, Tore; Hindsgaul, Claus; Riber, Christian; Kamuk, Bettina; Astrup, Thomas F

    2016-04-01

    This investigation aims at providing an improved basis for assessing economic consequences of alternative Solid Waste Management (SWM) strategies for existing waste facilities. A bottom-up methodology was developed to determine marginal costs in existing facilities due to changes in the SWM system, based on the determination of average costs in such waste facilities as function of key facility and waste compositional parameters. The applicability of the method was demonstrated through a case study including two existing Waste-to-Energy (WtE) facilities, one with co-generation of heat and power (CHP) and another with only power generation (Power), affected by diversion strategies of five waste fractions (fibres, plastic, metals, organics and glass), named "target fractions". The study assumed three possible responses to waste diversion in the WtE facilities: (i) biomass was added to maintain a constant thermal load, (ii) Refused-Derived-Fuel (RDF) was included to maintain a constant thermal load, or (iii) no reaction occurred resulting in a reduced waste throughput without full utilization of the facility capacity. Results demonstrated that marginal costs of diversion from WtE were up to eleven times larger than average costs and dependent on the response in the WtE plant. Marginal cost of diversion were between 39 and 287 € Mg(-1) target fraction when biomass was added in a CHP (from 34 to 303 € Mg(-1) target fraction in the only Power case), between -2 and 300 € Mg(-1) target fraction when RDF was added in a CHP (from -2 to 294 € Mg(-1) target fraction in the only Power case) and between 40 and 303 € Mg(-1) target fraction when no reaction happened in a CHP (from 35 to 296 € Mg(-1) target fraction in the only Power case). Although average costs at WtE facilities were highly influenced by energy selling prices, marginal costs were not (provided a response was initiated at the WtE to keep constant the utilized thermal capacity). Failing to systematically

  18. 32 CFR 32.45 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-07-01

    ... 32 National Defense 1 2013-07-01 2013-07-01 false Cost and price analysis. 32.45 Section 32.45... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  19. 40 CFR 30.45 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-07-01

    ... 40 Protection of Environment 1 2014-07-01 2014-07-01 false Cost and price analysis. 30.45 Section... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  20. 38 CFR 49.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... 38 Pensions, Bonuses, and Veterans' Relief 2 2010-07-01 2010-07-01 false Cost and price analysis... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  1. 14 CFR 1260.145 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... 14 Aeronautics and Space 5 2012-01-01 2012-01-01 false Cost and price analysis. 1260.145 Section... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  2. 14 CFR 1260.145 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ... 14 Aeronautics and Space 5 2010-01-01 2010-01-01 false Cost and price analysis. 1260.145 Section... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  3. 40 CFR 30.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... 40 Protection of Environment 1 2011-07-01 2011-07-01 false Cost and price analysis. 30.45 Section... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  4. 40 CFR 30.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... 40 Protection of Environment 1 2010-07-01 2010-07-01 false Cost and price analysis. 30.45 Section... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  5. 40 CFR 30.45 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-07-01

    ... 40 Protection of Environment 1 2013-07-01 2013-07-01 false Cost and price analysis. 30.45 Section... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  6. 32 CFR 32.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... 32 National Defense 1 2011-07-01 2011-07-01 false Cost and price analysis. 32.45 Section 32.45... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  7. 32 CFR 32.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... 32 National Defense 1 2010-07-01 2010-07-01 false Cost and price analysis. 32.45 Section 32.45... price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various...

  8. 40 CFR 35.937-6 - Cost and price considerations.

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... 40 Protection of Environment 1 2011-07-01 2011-07-01 false Cost and price considerations. 35.937-6... Cost and price considerations. (a) General. EPA policy is that the cost or price of all subagreements... equivalent process. (b) Subagreements over $100,000. For each subagreement expected to exceed $100,000,...

  9. 40 CFR 35.937-6 - Cost and price considerations.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... 40 Protection of Environment 1 2010-07-01 2010-07-01 false Cost and price considerations. 35.937-6... Cost and price considerations. (a) General. EPA policy is that the cost or price of all subagreements... equivalent process. (b) Subagreements over $100,000. For each subagreement expected to exceed $100,000,...

  10. 48 CFR 1602.170-5 - Cost or pricing data.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... 48 Federal Acquisition Regulations System 6 2012-10-01 2012-10-01 false Cost or pricing data. 1602... Terms 1602.170-5 Cost or pricing data. (a) Experience-rated carriers. Cost or pricing data for experience-rated carriers includes: (1) Information such as claims data; (2) Actual or negotiated...

  11. 48 CFR 1602.170-5 - Cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Cost or pricing data. 1602... Terms 1602.170-5 Cost or pricing data. (a) Experience-rated carriers. Cost or pricing data for experience-rated carriers includes: (1) Information such as claims data; (2) Actual or negotiated...

  12. 48 CFR 1602.170-5 - Cost or pricing data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... 48 Federal Acquisition Regulations System 6 2014-10-01 2014-10-01 false Cost or pricing data. 1602... Terms 1602.170-5 Cost or pricing data. (a) Experience-rated carriers. Cost or pricing data for experience-rated carriers includes: (1) Information such as claims data; (2) Actual or negotiated...

  13. 28 CFR 70.45 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-07-01

    ... 28 Judicial Administration 2 2013-07-01 2013-07-01 false Cost and price analysis. 70.45 Section 70... NON-PROFIT ORGANIZATIONS Post-Award Requirements Procurement Standards § 70.45 Cost and price analysis. Some form of cost or price analysis must be made and documented in the procurement files in...

  14. 40 CFR 35.6585 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-07-01

    ... 40 Protection of Environment 1 2013-07-01 2013-07-01 false Cost and price analysis. 35.6585... Response Actions Procurement Requirements Under A Cooperative Agreement § 35.6585 Cost and price analysis. (a) General. The recipient must conduct and document a cost or price analysis in connection...

  15. 45 CFR 2543.45 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... 45 Public Welfare 4 2013-10-01 2013-10-01 false Cost and price analysis. 2543.45 Section 2543.45... ORGANIZATIONS Post-Award Requirements Property Standards § 2543.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with...

  16. 14 CFR 1274.506 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ... 14 Aeronautics and Space 5 2010-01-01 2010-01-01 false Cost and price analysis. 1274.506 Section... WITH COMMERCIAL FIRMS Procurement Standards § 1274.506 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with...

  17. 45 CFR 2543.45 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... 45 Public Welfare 4 2014-10-01 2014-10-01 false Cost and price analysis. 2543.45 Section 2543.45... ORGANIZATIONS Post-Award Requirements Property Standards § 2543.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with...

  18. 14 CFR 1274.506 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... 14 Aeronautics and Space 5 2012-01-01 2012-01-01 false Cost and price analysis. 1274.506 Section... WITH COMMERCIAL FIRMS Procurement Standards § 1274.506 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with...

  19. 22 CFR 226.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 22 Foreign Relations 1 2010-04-01 2010-04-01 false Cost and price analysis. 226.45 Section 226.45...-GOVERNMENTAL ORGANIZATIONS Post-award Requirements Procurement Standards § 226.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection...

  20. 45 CFR 2543.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... 45 Public Welfare 4 2011-10-01 2011-10-01 false Cost and price analysis. 2543.45 Section 2543.45... ORGANIZATIONS Post-Award Requirements Property Standards § 2543.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with...

  1. 14 CFR § 1274.506 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ... 14 Aeronautics and Space 5 2014-01-01 2014-01-01 false Cost and price analysis. § 1274.506... AGREEMENTS WITH COMMERCIAL FIRMS Procurement Standards § 1274.506 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with...

  2. 15 CFR 14.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ... 15 Commerce and Foreign Trade 1 2010-01-01 2010-01-01 false Cost and price analysis. 14.45 Section... COMMERCIAL ORGANIZATIONS Post-Award Requirements Procurement Standards § 14.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection...

  3. 28 CFR 70.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... 28 Judicial Administration 2 2010-07-01 2010-07-01 false Cost and price analysis. 70.45 Section 70... NON-PROFIT ORGANIZATIONS Post-Award Requirements Procurement Standards § 70.45 Cost and price analysis. Some form of cost or price analysis must be made and documented in the procurement files in...

  4. 22 CFR 226.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... 22 Foreign Relations 1 2011-04-01 2011-04-01 false Cost and price analysis. 226.45 Section 226.45...-GOVERNMENTAL ORGANIZATIONS Post-award Requirements Procurement Standards § 226.45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection...

  5. 48 CFR 52.215-10 - Price Reduction for Defective Certified Cost or Pricing Data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... complete, accurate, and current as certified in its Certificate of Current Cost or Pricing Data; (2) A... complete, accurate, and current as certified in the Contractor's Certificate of Current Cost or Pricing... been modified even if accurate, complete, and current certified cost or pricing data had been...

  6. Mean-reversion in income over feed cost margins: evidence and implications for managing margin risk by US dairy producers.

    PubMed

    Bozic, M; Newton, J; Thraen, C S; Gould, B W

    2012-12-01

    With the increased volatility of feed prices, dairy farm managers are no longer concerned with managing only milk price volatility, but are considering the adoption of risk management programs that address income over feed cost (IOFC) margin risk. Successful margin risk management should be founded on an understanding of the behavior of IOFC margins. To that end, we have constructed forward IOFC margins using Class III milk, corn, and soybean meal futures prices. We focus on the characteristics of the term structure of forward IOFC margins, that is, the sequence of forward margins for consecutive calendar months, all observed on the same trading day. What is apparent from the shapes of these term structures is that both in times when margins were exceptionally high and in times when they were disastrously low, market participants expected that a reversal back to average margin levels would not come quickly, but rather would take up to 9 mo. Slopes of the forward margin term structure before and after most of the major swings in IOFC indicate these shocks were mostly unanticipated, whereas the time needed for recovery to normal margin levels was successfully predicted. This suggests that IOFC margins may exhibit slow mean-reverting, rather than predictable cyclical behavior, as is often suggested in the popular press. This finding can be exploited to design a successful catastrophic risk management program by initiating protection at 9 to 12 mo before futures contract maturity. As a case study, we analyzed risk management strategies for managing IOFC margins that used Livestock Gross Margin for Dairy Cattle insurance contracts and created 2 farm profiles. The first one represents dairy farms that grow most of their feed, whereas the second profile is designed to capture the risk exposure of dairy farms that purchase all their dairy herd, dry cow, and heifer feed. Our case study of this program encompasses the 2009 period, which was characterized by exceptionally

  7. 45 CFR 74.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 45 Public Welfare 1 2010-10-01 2010-10-01 false Cost and price analysis. 74.45 Section 74.45... analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including...

  8. 45 CFR 74.45 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... 45 Public Welfare 1 2012-10-01 2012-10-01 false Cost and price analysis. 74.45 Section 74.45... analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including...

  9. 48 CFR 570.110 - Cost or pricing data and information other than cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... to and waivers for submitting cost or pricing data. Most leasing actions will have adequate price competition. For price analysis, you may use a market survey or an appraisal conducted using accepted real property appraisal procedures to establish a market price for comparison. (c) In exceptional cases,...

  10. 26 CFR 1.925(b)-1T - Temporary regulations; marginal costing rules.

    Code of Federal Regulations, 2012 CFR

    2012-04-01

    ... 954(d)(3) to the seller give rise to foreign base company sales income as described in section 954(d....51, i.e., 23% of combined taxable income as determined under the marginal costing rules (23% of $154... gross receipts 950.00 Less: F's expenses 170.00 F's profit 35.51 Total (205.51) Transfer price...

  11. 48 CFR 52.215-20 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Certificate of Current Cost or Pricing Data, as prescribed by FAR 15.406-2. (End of provision) Alternate I... Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data. 52.215-20 Section 52.215-20... Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data. As prescribed in...

  12. 48 CFR 52.215-21 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing...

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Contractor shall submit a Certificate of Current Cost or Pricing Data, as prescribed by FAR 15.406-2. (End of... Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data-Modifications. 52.215-21... Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing...

  13. Locational Marginal Pricing in the Campus Power System at the Power Distribution Level

    SciTech Connect

    Hao, Jun; Gu, Yi; Zhang, Yingchen; Zhang, Jun Jason; Gao, David Wenzhong

    2016-11-14

    In the development of smart grid at distribution level, the realization of real-time nodal pricing is one of the key challenges. The research work in this paper implements and studies the methodology of locational marginal pricing at distribution level based on a real-world distribution power system. The pricing mechanism utilizes optimal power flow to calculate the corresponding distributional nodal prices. Both Direct Current Optimal Power Flow and Alternate Current Optimal Power Flow are utilized to calculate and analyze the nodal prices. The University of Denver campus power grid is used as the power distribution system test bed to demonstrate the pricing methodology.

  14. 10 CFR 600.145 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... 10 Energy 4 2012-01-01 2012-01-01 false Cost and price analysis. 600.145 Section 600.145 Energy DEPARTMENT OF ENERGY (CONTINUED) ASSISTANCE REGULATIONS FINANCIAL ASSISTANCE RULES Uniform Administrative... Nonprofit Organizations Post-Award Requirements § 600.145 Cost and price analysis. Some form of cost...

  15. 10 CFR 600.145 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... 10 Energy 4 2011-01-01 2011-01-01 false Cost and price analysis. 600.145 Section 600.145 Energy DEPARTMENT OF ENERGY (CONTINUED) ASSISTANCE REGULATIONS FINANCIAL ASSISTANCE RULES Uniform Administrative... Nonprofit Organizations Post-Award Requirements § 600.145 Cost and price analysis. Some form of cost...

  16. 10 CFR 600.145 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ... 10 Energy 4 2014-01-01 2014-01-01 false Cost and price analysis. 600.145 Section 600.145 Energy DEPARTMENT OF ENERGY (CONTINUED) ASSISTANCE REGULATIONS FINANCIAL ASSISTANCE RULES Uniform Administrative... Nonprofit Organizations Post-Award Requirements § 600.145 Cost and price analysis. Some form of cost...

  17. 10 CFR 600.145 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-01-01

    ... 10 Energy 4 2013-01-01 2013-01-01 false Cost and price analysis. 600.145 Section 600.145 Energy DEPARTMENT OF ENERGY (CONTINUED) ASSISTANCE REGULATIONS FINANCIAL ASSISTANCE RULES Uniform Administrative... Nonprofit Organizations Post-Award Requirements § 600.145 Cost and price analysis. Some form of cost...

  18. 22 CFR 226.45 - Cost and price analysis.

    Code of Federal Regulations, 2013 CFR

    2013-04-01

    ... 22 Foreign Relations 1 2013-04-01 2013-04-01 false Cost and price analysis. 226.45 Section 226.45 Foreign Relations AGENCY FOR INTERNATIONAL DEVELOPMENT ADMINISTRATION OF ASSISTANCE AWARDS TO U.S. NON-GOVERNMENTAL ORGANIZATIONS Post-award Requirements Procurement Standards § 226.45 Cost and price analysis....

  19. 22 CFR 226.45 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-04-01

    ... 22 Foreign Relations 1 2012-04-01 2012-04-01 false Cost and price analysis. 226.45 Section 226.45 Foreign Relations AGENCY FOR INTERNATIONAL DEVELOPMENT ADMINISTRATION OF ASSISTANCE AWARDS TO U.S. NON-GOVERNMENTAL ORGANIZATIONS Post-award Requirements Procurement Standards § 226.45 Cost and price analysis....

  20. 22 CFR 226.45 - Cost and price analysis.

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... 22 Foreign Relations 1 2014-04-01 2014-04-01 false Cost and price analysis. 226.45 Section 226.45 Foreign Relations AGENCY FOR INTERNATIONAL DEVELOPMENT ADMINISTRATION OF ASSISTANCE AWARDS TO U.S. NON-GOVERNMENTAL ORGANIZATIONS Post-award Requirements Procurement Standards § 226.45 Cost and price analysis....

  1. 7 CFR 550.47 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ..., market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of... 7 Agriculture 6 2010-01-01 2010-01-01 false Cost and price analysis. 550.47 Section 550.47 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL RESEARCH SERVICE,...

  2. 48 CFR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-27 Section 52.214-27 Federal... Certified Cost or Pricing Data—Modifications—Sealed Bidding. As prescribed in 14.201-7(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed...

  3. 48 CFR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-27 Section 52.214-27 Federal... Certified Cost or Pricing Data—Modifications—Sealed Bidding. As prescribed in 14.201-7(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed...

  4. 48 CFR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-27 Section 52.214-27 Federal... Certified Cost or Pricing Data—Modifications—Sealed Bidding. As prescribed in 14.201-7(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed...

  5. 48 CFR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-27 Section 52.214-27 Federal... Certified Cost or Pricing Data—Modifications—Sealed Bidding. As prescribed in 14.201-7(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed...

  6. 48 CFR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-27 Section 52.214-27 Federal... Certified Cost or Pricing Data—Modifications—Sealed Bidding. As prescribed in 14.201-7(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed...

  7. The economic cost of fuel price subsidies in Ghana

    NASA Astrophysics Data System (ADS)

    Ofori, Roland Oduro

    I adapt the Harberger formula for deadweight loss to develop approximations for the deadweight loss created by multiple fuel price subsidies. I also estimate the own-price, cross-price, and income elasticities of demand for gasoline and diesel in Africa. I use data on fuel prices and sales in combination with my formulas and elasticity estimates to calculate the deadweight loss of fuel price subsidies in Ghana from 2009 to 2014. I show that the average efficiency cost of the gasoline and diesel price subsidies in Ghana is 0.8% of fuel price subsidy transfers. This result stresses the futility of basing subsidy reforms on economic efficiency losses, which are relatively small due to very inelastic energy demand, and the need for such reforms to be motivated by the poor-targeting of subsidies to low-income households and the impact of subsidies on government debt-financing.

  8. Incremental cost pricing of transmission services. Final report

    SciTech Connect

    Not Available

    1994-12-01

    This report, prepared by ICF Resources, under a sub-contract with IT Corporation, is concerned chiefly with examining the economic concepts underlying an Incremental Cost Pricing Framework (ICPF), which is defined here as a pricing regime that takes into account several factors: economic efficiency in terms of sending the correct long-term price signals to both users and owners of transmission assets; pricing of individual services in relationship to cost causation; full recovery of costs associated with transmission service; and applicability to real-world power systems without extraordinary administrative burdens. In the course of this examination, the report makes assumptions, as necessary, and assesses the extent to which they may or may not comport with real-world conditions. It also assesses the pros and cons of different approaches to pricing various components of transmission service without making a recommendation as to the superiority of one approach over another from a public policy perspective.

  9. Revenue Sufficiency and Reliability in a Zero Marginal Cost Future: Preprint

    SciTech Connect

    Frew, Bethany A.; Milligan, Michael; Brinkman, Greg; Bloom, Aaron; Clark, Kara; Denholm, Paul

    2016-12-01

    Features of existing wholesale electricity markets, such as administrative pricing rules and policy-based reliability standards, can distort market incentives from allowing generators sufficient opportunities to recover both fixed and variable costs. Moreover, these challenges can be amplified by other factors, including (1) inelastic demand resulting from a lack of price signal clarity, (2) low- or near-zero marginal cost generation, particularly arising from low natural gas fuel prices and variable generation (VG), such as wind and solar, and (3) the variability and uncertainty of this VG. As power systems begin to incorporate higher shares of VG, many questions arise about the suitability of the existing marginal-cost-based price formation, primarily within an energy-only market structure, to ensure the economic viability of resources that might be needed to provide system reliability. This article discusses these questions and provides a summary of completed and ongoing modelling-based work at the National Renewable Energy Laboratory to better understand the impacts of evolving power systems on reliability and revenue sufficiency.

  10. 48 CFR 239.7406 - Certified cost or pricing data and data other than certified cost or pricing data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... submit certified cost or pricing data before award of contracts for tariffed services. Rates or... after execution of the contract. (b) Rates or preliminary estimates quoted by a common carrier for... considered prices set by law or regulation. (c) Contracting officers shall obtain sufficient data...

  11. Cost accounting to determine prices: how well do prices reflect costs in the German DRG-system?

    PubMed

    Schreyögg, Jonas; Tiemann, Oliver; Busse, Reinhard

    2006-08-01

    Germany has recently introduced a system of Diagnosis Related Groups (DRGs) to engender more appropriate resource allocation. The following article describes the German DRG-system and the methodologies used to determine prices. It analyses the extent to which prices, or calculated cost weights, reflect the actual costs incurred by hospitals for their respective services. We reveal that a "compression" of DRG cost weights occurs, and that the data sample used to calculate cost weights is lacking in terms of its representativeness. Although cost data accuracy has improved over the last few years there are still a number of challenges that need to be addressed.

  12. Marginal cost of natural gas in developing countries: concepts and applications

    SciTech Connect

    Mashayekhi, A.

    1983-01-01

    Many developing nations are facing complex questions regarding the best strategy for developing their domestic gas reserves. The World Bank has addressed these questions in studies on the cost and prices of gas and its optimal allocation among different markets. Based on the average incremental method, an estimate of the marginal cost of natural gas in 10 developing countries proved to be $0.61-1.79/1000 CF or $3.59-10.54/bbl of oil equivalent, far below the border prices of competing fuels in these nations. Moreover, the cost of gas is not expected to rise in these countries within the next 20 years while the reserves/production ratios remain high. The sample involves a variety of gas compositions and production conditions among the countries of Bangladesh, Cameroon, Egypt, India, Morocco, Nigeria, Pakistan, Tanzania, Thailand, and Tunisia.

  13. 48 CFR 52.215-11 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... subcontractor furnished certified cost or pricing data that were not complete, accurate, and current as certified in its Certificate of Current Cost or Pricing Data, (2) a subcontractor or prospective... current as certified in the Contractor's Certificate of Current Cost or Pricing Data, or (3) any of...

  14. 48 CFR 15.406-2 - Certificate of current cost or pricing data.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... of a Certificate of Current Cost or Pricing Data is not a substitute for examining and analyzing the... cost or pricing data. 15.406-2 Section 15.406-2 Federal Acquisition Regulations System FEDERAL....406-2 Certificate of current cost or pricing data. (a) When certified cost or pricing data...

  15. 48 CFR 52.215-11 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... 48 Federal Acquisition Regulations System 2 2014-10-01 2014-10-01 false Price Reduction for Defective Certified Cost or Pricing Data-Modifications. 52.215-11 Section 52.215-11 Federal Acquisition... CONTRACT CLAUSES Text of Provisions and Clauses 52.215-11 Price Reduction for Defective Certified Cost...

  16. PACE 2: Pricing and Cost Estimating Handbook

    NASA Technical Reports Server (NTRS)

    Stewart, R. D.; Shepherd, T.

    1977-01-01

    An automatic data processing system to be used for the preparation of industrial engineering type manhour and material cost estimates has been established. This computer system has evolved into a highly versatile and highly flexible tool which significantly reduces computation time, eliminates computational errors, and reduces typing and reproduction time for estimators and pricers since all mathematical and clerical functions are automatic once basic inputs are derived.

  17. 26 CFR 1.994-2 - Marginal costing rules.

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... sales of such item, product, or product line for the DISC's taxable year does not exceed gross receipts...) INCOME TAXES (CONTINUED) Domestic International Sales Corporations § 1.994-2 Marginal costing rules. (a... maintain a foreign market for sales of an item, product, or product line of export property (as defined...

  18. 26 CFR 1.994-2 - Marginal costing rules.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... sales of such item, product, or product line for the DISC's taxable year does not exceed gross receipts...) INCOME TAXES Domestic International Sales Corporations § 1.994-2 Marginal costing rules. (a) In general... foreign market for sales of an item, product, or product line of export property (as defined in §...

  19. 26 CFR 1.994-2 - Marginal costing rules.

    Code of Federal Regulations, 2012 CFR

    2012-04-01

    ... sales of such item, product, or product line for the DISC's taxable year does not exceed gross receipts...) INCOME TAXES (CONTINUED) Domestic International Sales Corporations § 1.994-2 Marginal costing rules. (a... maintain a foreign market for sales of an item, product, or product line of export property (as defined...

  20. 26 CFR 1.994-2 - Marginal costing rules.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... sales of such item, product, or product line for the DISC's taxable year does not exceed gross receipts...) INCOME TAXES (CONTINUED) Domestic International Sales Corporations § 1.994-2 Marginal costing rules. (a... maintain a foreign market for sales of an item, product, or product line of export property (as defined...

  1. 26 CFR 1.994-2 - Marginal costing rules.

    Code of Federal Regulations, 2013 CFR

    2013-04-01

    ... sales of such item, product, or product line for the DISC's taxable year does not exceed gross receipts...) INCOME TAXES (CONTINUED) Domestic International Sales Corporations § 1.994-2 Marginal costing rules. (a... maintain a foreign market for sales of an item, product, or product line of export property (as defined...

  2. The cost of lithium is unlikely to upend the price of Li-ion storage systems

    NASA Astrophysics Data System (ADS)

    Ciez, Rebecca E.; Whitacre, J. F.

    2016-07-01

    As lithium ion batteries become more common in electric vehicles and other storage applications, concerns about the cost of their namesake material, and its impact on the cost of these batteries, will continue. However, examining the constituent materials of these devices shows that lithium is a relatively small contributor to both the battery mass and manufacturing cost. The use of more expensive lithium precursor materials results in less than 1% increases in the cost of lithium ion cells considered. Similarly, larger fluctuations in the global lithium price (from 0 to 25/kg from a baseline of 7.50 per kg of Li2CO3) do not change the cost of lithium ion cells by more than 10%. While this small cost increase will not have a substantial impact on consumers, it could affect the manufacturers of these lithium ion cells, who already operate with small profit margins.

  3. Marginal abatement cost curves for NOx that account for ...

    EPA Pesticide Factsheets

    A marginal abatement cost curve (MACC) traces out the relationship between the quantity of pollution abated and the marginal cost of abating each additional unit. In the context of air quality management, MACCs typically are developed by sorting end-of-pipe controls by their respective cost effectiveness. Alternative measures, such as renewable electricity, energy efficiency, and fuel switching (RE/EE/FS), are not considered as it is difficult to quantify their abatement potential. In this paper, we demonstrate the use of an energy system model to develop a MACC for nitrogen oxides (NOx) that incorporates both end-of-pipe controls and these alternative measures. We decompose the MACC by sector, and evaluate the cost-effectiveness of RE/EE/FS relative to end-of-pipe controls. RE/EE/FS are shown to produce considerable emission reductions after end-of-pipe controls have been exhausted. Furthermore, some RE/EE/FS are shown to be cost-competitive with end-of-pipe controls. Demonstrate how the MARKAL energy system model can be used to evaluate the potential role of renewable electricity, energy efficiency and fuel switching (RE/EE/FS) in achieving NOx reductions. For this particular analysis, we show that RE/EE/FSs are able to increase the quantity of NOx reductions available for a particular marginal cost (ranging from $5k per ton to $40k per ton) by approximately 50%.

  4. 20 CFR 435.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 20 Employees' Benefits 2 2010-04-01 2010-04-01 false Cost and price analysis. 435.45 Section 435.45 Employees' Benefits SOCIAL SECURITY ADMINISTRATION UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NON-PROFIT ORGANIZATIONS,...

  5. 34 CFR 74.45 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-07-01

    ... 34 Education 1 2012-07-01 2012-07-01 false Cost and price analysis. 74.45 Section 74.45 Education Office of the Secretary, Department of Education ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS Post-Award...

  6. 40 CFR 35.6585 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... ASSISTANCE STATE AND LOCAL ASSISTANCE Cooperative Agreements and Superfund State Contracts for Superfund Response Actions Procurement Requirements Under A Cooperative Agreement § 35.6585 Cost and price analysis... performance, and industry profit rates in the surrounding geographical area for similar work....

  7. FARM LABOR COSTS AND FOOD PRICES, 1964-65.

    ERIC Educational Resources Information Center

    1966

    TO MEASURE THE IMPACT OF THE DECLINE OF FOREIGN AGRICULTURAL WORKER EMPLOYMENT ON FARM-LABOR COSTS, FOOD PRICES, AND RETURN TO THE FARMER, AN ANALYSIS WAS MADE OF THE 1964-65 CHANGES IN THESE FACTORS FOR SELECTED CALIFORNIA CROPS. TOMATOES, LETTUCE, STRAWBERRIES, CANTALOUPES, CELERY, LEMONS, AND ASPARAGUS, WHICH ACCOUNTED FOR 71 PERCENT OF THE…

  8. 22 CFR 145.45 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 22 Foreign Relations 1 2010-04-01 2010-04-01 false Cost and price analysis. 145.45 Section 145.45 Foreign Relations DEPARTMENT OF STATE CIVIL RIGHTS GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS Post-Award Requirements Procurement Standards §...

  9. 22 CFR 145.45 - Cost and price analysis.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... 22 Foreign Relations 1 2011-04-01 2011-04-01 false Cost and price analysis. 145.45 Section 145.45 Foreign Relations DEPARTMENT OF STATE CIVIL RIGHTS GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS Post-Award Requirements Procurement Standards §...

  10. 40 CFR 30.45 - Cost and price analysis.

    Code of Federal Regulations, 2012 CFR

    2012-07-01

    ... 40 Protection of Environment 1 2012-07-01 2012-07-01 false Cost and price analysis. 30.45 Section 30.45 Protection of Environment ENVIRONMENTAL PROTECTION AGENCY GRANTS AND OTHER FEDERAL ASSISTANCE UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER...

  11. 48 CFR 1352.215-76 - Cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... information required by CAR 1352.215-70, the cost/price proposal must contain an explanation of the offeror's... Statement of Work. A brief definition of the education and experience requirements which qualify an employee... location(s) where work is to be performed will be proposed. Company-wide, joint venture, or affiliate...

  12. 48 CFR 1352.215-76 - Cost or pricing data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... information required by CAR 1352.215-70, the cost/price proposal must contain an explanation of the offeror's... Statement of Work. A brief definition of the education and experience requirements which qualify an employee... location(s) where work is to be performed will be proposed. Company-wide, joint venture, or affiliate...

  13. 48 CFR 1652.215-70 - Rate Reduction for Defective Pricing or Defective Cost or Pricing Data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... that were not complete, accurate, or current as certified in the Certificate of Accurate Cost or... accurate, complete, and current cost or pricing data had been submitted or maintained and identified. (ii... submit or keep in its files a Certificate of Current Cost or Pricing Data. (2)(i) Except as prohibited...

  14. 48 CFR 15.406-2 - Certificate of current cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ....406-2 Certificate of current cost or pricing data. (a) When certified cost or pricing data are required, the contracting officer shall require the contractor to execute a Certificate of Current Cost or... contract file. Certificate of Current Cost or Pricing Data This is to certify that, to the best of...

  15. 48 CFR 15.407-1 - Defective certified cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... contractor's or subcontractor's Certificate of Current Cost or Pricing Data, the Government is entitled to a..., the contractor or subcontractor did not submit a Certificate of Current Cost or Pricing Data relating... Current Cost or Pricing Data but were not submitted. Such offsets need not be in the same cost...

  16. Cost and Price Increases in Higher Education: Evidence of a Cost Disease on Higher Education Costs and Tuition Prices and the Implications for Higher Education Policy

    ERIC Educational Resources Information Center

    Trombella, Jerry

    2011-01-01

    As concern over rapidly rising college costs and tuition sticker prices have increased, a variety of research has been conducted to determine potential causes. Most of this research has focused on factors unique to higher education. In contrast, cost disease theory attempts to create a comparative context to explain cost increases in higher…

  17. The Effect of Price Competition on Weapon System Acquisition costs

    DTIC Science & Technology

    1979-09-01

    projected savings, the break- even point, and simultaneously, the pay-back period for the initial front - end expenditures. S ch a summation is an i’,ccm...expected savings in system price against the front end costs. When there is unolanned expansion of the sole-source production quantities over time...simply for lack of front - end funds. Required expenditures vary considerably from system to sys- tem. They typically begin with the acquisition of the

  18. 77 FR 2680 - Defense Federal Acquisition Regulation Supplement; Definition of Cost or Pricing Data

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-01-19

    ... RIN 0750-AH49 Defense Federal Acquisition Regulation Supplement; Definition of Cost or Pricing Data... text addressing the definition of cost or pricing data. The DFARS changes are necessary to ensure... definition of cost or pricing data, published at 75 FR 53135 on August 30, 2010. II. Executive Orders...

  19. 48 CFR 52.214-28 - Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-28 Section 52.214-28 Federal Acquisition... Cost or Pricing Data—Modifications—Sealed Bidding (OCT 2010) (a) The requirements of paragraphs (b) and... CONTRACT CLAUSES Text of Provisions and Clauses 52.214-28 Subcontractor Certified Cost or Pricing...

  20. 48 CFR 52.214-28 - Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-28 Section 52.214-28 Federal Acquisition... Cost or Pricing Data—Modifications—Sealed Bidding (OCT 2010) (a) The requirements of paragraphs (b) and... CONTRACT CLAUSES Text of Provisions and Clauses 52.214-28 Subcontractor Certified Cost or Pricing...

  1. 48 CFR 52.214-28 - Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-28 Section 52.214-28 Federal Acquisition... Cost or Pricing Data—Modifications—Sealed Bidding (OCT 2010) (a) The requirements of paragraphs (b) and... CONTRACT CLAUSES Text of Provisions and Clauses 52.214-28 Subcontractor Certified Cost or Pricing...

  2. 48 CFR 52.214-28 - Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-28 Section 52.214-28 Federal Acquisition... Cost or Pricing Data—Modifications—Sealed Bidding (OCT 2010) (a) The requirements of paragraphs (b) and... CONTRACT CLAUSES Text of Provisions and Clauses 52.214-28 Subcontractor Certified Cost or Pricing...

  3. 48 CFR 52.214-28 - Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... Cost or Pricing Data-Modifications-Sealed Bidding. 52.214-28 Section 52.214-28 Federal Acquisition... Cost or Pricing Data—Modifications—Sealed Bidding (OCT 2010) (a) The requirements of paragraphs (b) and... CONTRACT CLAUSES Text of Provisions and Clauses 52.214-28 Subcontractor Certified Cost or Pricing...

  4. Estimated generic prices of cancer medicines deemed cost-ineffective in England: a cost estimation analysis

    PubMed Central

    Hill, Andrew; Redd, Christopher; Gotham, Dzintars; Erbacher, Isabelle; Meldrum, Jonathan; Harada, Ryo

    2017-01-01

    Objectives The aim of this study was to estimate lowest possible treatment costs for four novel cancer drugs, hypothesising that generic manufacturing could significantly reduce treatment costs. Setting This research was carried out in a non-clinical research setting using secondary data. Participants There were no human participants in the study. Four drugs were selected for the study: bortezomib, dasatinib, everolimus and gefitinib. These medications were selected according to their clinical importance, novel pharmaceutical actions and the availability of generic price data. Primary and secondary outcome measures Target costs for treatment were to be generated for each indication for each treatment. The primary outcome measure was the target cost according to a production cost calculation algorithm. The secondary outcome measure was the target cost as the lowest available generic price; this was necessary where export data were not available to generate an estimate from our cost calculation algorithm. Other outcomes included patent expiry dates and total eligible treatment populations. Results Target prices were £411 per cycle for bortezomib, £9 per month for dasatinib, £852 per month for everolimus and £10 per month for gefitinib. Compared with current list prices in England, these target prices would represent reductions of 74–99.6%. Patent expiry dates were bortezomib 2014–22, dasatinib 2020–26, everolimus 2019–25 and gefitinib 2017. The total global eligible treatment population in 1 year is 769 736. Conclusions Our findings demonstrate that affordable drug treatment costs are possible for novel cancer drugs, suggesting that new therapeutic options can be made available to patients and doctors worldwide. Assessing treatment cost estimations alongside cost-effectiveness evaluations is an important area of future research. PMID:28110283

  5. 48 CFR 5252.215-9000 - Submission of cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... awarded based upon a determination that there is adequate price competition; therefore, the offeror is not... the proposals, the contracting officer determines that adequate price competition does not exist in... adequate price competition does not exist, the offeror shall provide certified cost or pricing data...

  6. Fundamental Drivers of the Cost and Price of Operating Reserves

    SciTech Connect

    Hummon, M. R.; Denholm, P.; Jorgenson, J.; Palchak, D.; Kirby, B.; Ma, O.

    2013-07-01

    Operating reserves impose a cost on the electric power system by forcing system operators to keep partially loaded spinning generators available for responding to system contingencies variable demand. In many regions of the United States, thermal power plants provide a large fraction of the operating reserve requirement. Alternative sources of operating reserves, such as demand response and energy storage, may provide more efficient sources of these reserves. However, to estimate the potential value of these services, the cost of reserve services under various grid conditions must first be established. This analysis used a commercial grid simulation tool to evaluate the cost and price of several operating reserve services, including spinning contingency reserves and upward regulation reserves. These reserve products were evaluated in a utility system in the western United States, considering different system flexibilities, renewable energy penetration, and other sensitivities. The analysis demonstrates that the price of operating reserves depend highly on many assumptions regarding the operational flexibility of the generation fleet, including ramp rates and the fraction of fleet available to provide reserves.

  7. Competitive Electricity Prices: An Update

    EIA Publications

    1998-01-01

    Illustrates a third impact of the move to competitive generation pricing -- the narrowing of the range of prices across regions of the country. This feature article updates information in Electricity Prices in a Competitive Environment: Marginal Cost Pricing of Generation Services and Financial Status of Electric Utilities.

  8. Production costs of biodiversity zones on field and forest margins: a case study in Finland.

    PubMed

    Miettinen, Antti; Hyytiäinen, Kari; Mäkinen, Antti

    2012-07-30

    This paper estimates and compares the costs incurred to a private landowner from establishing and managing 25-m wide biodiversity zones on field and forest margins in southern Finland. Crop and timber prices being at their long-term averages, current agricultural support paid and the real discount rate 3%, the average annual net costs per hectare of field and forest biodiversity zones were €30 ha(-1) and €108 ha(-1), respectively, the field zones being the less costly alternative in 95% of cases. This result is mainly due to the poor productivity of field cultivation relative to timber production under boreal climate conditions. In addition to soil quality, the initial stand structure affects the costs of both biodiversity zone types. It is less costly for a landowner to establish biodiversity zones in forests where no final felling is imminent but which already contain some tree volume. In field biodiversity zones, costs are slightly lower on fields where forest shading is great. Uneven-aged management practiced in forest biodiversity zones was found to lead to a 3-32% reduction in the net present value of forest land compared to conventional forest management. An increase in the real discount rate increases the relative efficiency of forest biodiversity zones.

  9. Cutting costs: the impact of price lists on the cost development at the emergency department.

    PubMed

    Schilling, Ulf Martin

    2010-12-01

    It was shown that physicians working at the Swedish emergency department (ED) are unaware of the costs for investigations performed. This study evaluated the possible impact of price lists on the overall laboratory and radiology costs at the ED of a Swedish university hospital. Price lists including the most common laboratory analyses and radiological investigations at the ED were created. The lists were distributed to all internal medicine physicians by e-mail and exposed above their working stations continually. No lists were provided for the orthopaedic control group. The average costs for laboratory and radiological investigations during the months of June and July 2007 and 2008 were calculated. Neither clinical nor admission procedures were changed. The physicians were blinded towards the study. Statistical analysis was performed using the Student's t-test. A total of 1442 orthopaedic and 1585 medical patients were attended to in 2007. In 2008, 1467 orthopaedic and 1637 medical patients required emergency service. The average costs per patient were 980.27 SKR (98€)/999.41 SKR (100€, +1.95%) for orthopaedic and 1081.36 SKR (108€)/877.3 SKR (88€, -18.8%) for medical patients. Laboratory costs decreased by 9% in orthopaedic and 21.4% in medical patients. Radiology costs changed +5.4% in orthopaedic and -20.59% in medical patients. The distribution and promotion of price lists as a tool at the ED to heighten cost awareness resulted in a major decrease in the investigation costs. A significant decrease in radiological costs could be observed. It can be concluded that price lists are an effective tool to cut costs in public healthcare.

  10. The high cost of medicines in Ireland. Is it time to change the pricing mechanism?

    PubMed

    Tilson, Lesley; McGowan, Bernadette; Bennett, Kathleen; Barry, Michael

    2004-12-01

    This study compared the prices of prescription medicines in Ireland to those in other countries to determine potential cost savings on the largest community drug scheme if an alternative pricing mechanism were adopted. The analysis covered a sample of 39 drugs (44.8% of the total ingredient cost) selected from the top 70 drugs in order of total ingredient cost. Potential cost savings ranged from Euro 20.73 million if a Danish price were adopted, to Euro 16.23 million for the average European price, to Euro 6.82 million for the UK price. The estimated savings were statistically significant for the Danish and average European price but not for the UK price. This study demonstrates the high ex-wholesale price of prescription medications in Ireland.

  11. Evidence of cost growth under cost-plus and fixed-price contracting

    SciTech Connect

    Scott, M.J.; Paananaen, O.H.; Redgate, T.E.; Ulibarri, C.A.; Jaksch, J.A.

    1998-09-01

    As defined by the US Department of Energy (DOE), privatization refers to a shifting of responsibilities for the completion of projects from a cost-plus Management and Operations (M and O) contract, to incentive-based contracts with the private sector. DOE`s new vision is to arrange cleanup work around incentives-based contracts, which are won via competitive bidding. Competition in awarding cleanup contracts can make use of market incentives to lower project costs and reduce slippage time. Fixed-price contracts encourage contractors to minimize schedule delays and cost overruns once the scope of a project has been negotiated. Conversely, cost-plus contracting offers weak incentives for contractors to select cost-minimizing production and management approaches. Because privatization explicitly allocates more risk to the contractor, it forces the government to better define its goals and methods. This study summarizes actual cost experiences with government contracts performed under cost-plus and fixed-price incentive structures at all levels of government. The first section provides some background on the problem of making contractor activity more cost-efficient. Following this are sections on the measurement of performance and the costs of projects, limitations on measurement, and findings of similar studies. The study concludes with appendices discussing the details of the performance measurement methodology and the project data sets used in the study.

  12. The Basic Economics of CD-ROM Pricing.

    ERIC Educational Resources Information Center

    Erkkila, John E.

    1991-01-01

    This explanation of how the basic economic model of pricing applies to the CD-ROM industry considers the supply and demand sides of the market and compares three distinct pricing strategies: (1) pricing to maximize profits; (2) average cost pricing; and (3) marginal cost pricing. (EAM)

  13. Avoiding Terminations, Single Offer Competition, and Costly Changes with Fixed Price Contracts

    DTIC Science & Technology

    2015-05-13

    robust . Overall, 25.3 percent of fixed price contracts with durations greater than a year receive only one offer compared to 31.4 percent of cost-plus...WWW.CSIS.ORG Avoiding Terminations, Single Offer Competition, and Costly Changes with Fixed Price Contracts Greg Sanders, Fellow, Defense...and Costly Changes with Fixed Price Contracts 5a. CONTRACT NUMBER 5b. GRANT NUMBER 5c. PROGRAM ELEMENT NUMBER 6. AUTHOR(S) 5d. PROJECT NUMBER 5e

  14. Marginal abatement cost curves for NOx incorporating both controls and alternative measures

    EPA Science Inventory

    A marginal abatement cost curve (MACC) traces out the efficient marginal abatement cost level for any aggregate emissions target when a least cost approach is implemented. In order for it to represent the efficient MAC level, all abatement opportunities across all sectors and loc...

  15. Are retail prices "just" when they do not include social costs?

    PubMed

    McMahon, T F

    1999-01-01

    The price is "right" when the buyer agrees to purchase goods or service. But is it "just"? That is, does the price include social costs such as pollution and discrimination? Cost shifting is the passing down of these costs from the seller to the buyer. The amount of cost shifting depends upon the inelasticity or elasticity of supply or demands, methods of assigning social costs, means used in promotion and the role of the market price. Wal-Mart and Body Shop International exemplify the problems of social costs. Recommendations for marketing managers concludes the article.

  16. Design the price signal mechanism of suppliers' cost in the commercial procurement process

    NASA Astrophysics Data System (ADS)

    Jinming, Huang; Wenjing, Li; Huazhen, Zhu

    2016-06-01

    In the process of commercial procurement, there exists information asymmetry between purchasers and suppliers in terms of commodity cost. The strike price is what purchasers care about, while the focus of suppliers is only the sales revenue. In order to achieve the relatively lower strike price, purchasers need to design a price signal mechanism, explicating the commodity cost of suppliers. In this article, we have designed a mechanism that purchasers can explicit the commodity cost price based on suppliers' choices by providing a variety of purchase contracts to suppliers.

  17. Reflections on Costing, Pricing and Income Measurement at UK Higher Education Institutions

    ERIC Educational Resources Information Center

    Oduoza, Chike F.

    2009-01-01

    In these days of radical contraction of funding and expansion in student numbers, universities are under pressure to prioritise their resources, as well as to achieve effective costing and pricing to support judgement and decision making for funding and any external work undertaken. This study reviews costing, pricing and income measurement in…

  18. 48 CFR 15.406-2 - Certificate of current cost or pricing data.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... 48 Federal Acquisition Regulations System 1 2011-10-01 2011-10-01 false Certificate of current cost or pricing data. 15.406-2 Section 15.406-2 Federal Acquisition Regulations System FEDERAL... knowledge and belief, the cost or pricing data (as defined in section 2.101 of the Federal...

  19. Price-Cost Ratios in Higher Education: Subsidy Structure and Policy Implications

    ERIC Educational Resources Information Center

    Xie, Yan

    2010-01-01

    The diversity of US institutions of higher education is manifested in many ways. This study looks at that diversity from the economic perspective by studying the subsidy structure through the distribution of institutional price-cost ratio (PCR), defined as the sum of net tuition price divided by total supplier cost and equals to one minus…

  20. Marginal abatement cost curve for NOx incorporating controls, renewable electricity, energy efficiency and fuel switching

    EPA Science Inventory

    A marginal abatement cost curve (MACC) traces out the relationship between the quantity of pollution abated and the marginal cost of abating each additional unit. In the context of air quality management, MACCs typically are developed by sorting end-of-pipe controls by their resp...

  1. Marginal abatement cost curves for NOx that account for renewable electricity, energy efficiency, and fuel switching

    EPA Science Inventory

    A marginal abatement cost curve (MACC) traces out the relationship between the quantity of pollution abated and the marginal cost of abating each additional unit. In the context of air quality management, MACCs typically are developed by sorting end-of-pipe controls by their resp...

  2. Pharmaceutical prices continue to drive up supply costs.

    PubMed

    Hard, R

    1992-03-05

    The 1992 purchasing outlook from the Joint Purchasing Corp. (JPC), New York City, forecasts a difficult winter followed by a mild economic recovery beginning in the spring or early summer. Pharmaceuticals, however, are forecast to undergo significant price increases, due in part to hospital pharmaceutical price hikes associated with the ramifications of the 1990 Medicaid drug rebate legislation passed by Congress.

  3. Operator/service team cuts cost of completing marginal gas wells

    SciTech Connect

    Walker, R.N.; Watson, P. ); Buchanan, L.; Martin, C.D. )

    1995-01-16

    By combining optimized drilling and completion procedures with an operator/service company alliance, Union Pacific Resources Corp. (UPRC) decreased drilling/completion costs by 24%/well in its East Texas Cotton Valley gas production operations. Improved design of tubulars, cement, mud system, bits, fracturing gel, and zone isolation led to the steep decline in drilling and completion costs. In the past, gas reserves easily justified well costs of $1 million/well. However, for marginal areas this cost had to be substantially reduced. Many areas considered margin at $1 million are feasible at one-half that cost. The exploit marginal-acreage team (EMAT) of UPRC and Halliburton Energy Services (HES) personnel was formed in March 1993 to find ways to improve the economics of completing wells in marginal areas. The paper discusses drilling cost, completion styles, fracture stimulation, zone isolation, the alliance and its benefits.

  4. Multi-period equilibrium/near-equilibrium in electricity markets based on locational marginal prices

    NASA Astrophysics Data System (ADS)

    Garcia Bertrand, Raquel

    In this dissertation we propose an equilibrium procedure that coordinates the point of view of every market agent resulting in an equilibrium that simultaneously maximizes the independent objective of every market agent and satisfies network constraints. Therefore, the activities of the generating companies, consumers and an independent system operator are modeled: (1) The generating companies seek to maximize profits by specifying hourly step functions of productions and minimum selling prices, and bounds on productions. (2) The goals of the consumers are to maximize their economic utilities by specifying hourly step functions of demands and maximum buying prices, and bounds on demands. (3) The independent system operator then clears the market taking into account consistency conditions as well as capacity and line losses so as to achieve maximum social welfare. Then, we approach this equilibrium problem using complementarity theory in order to have the capability of imposing constraints on dual variables, i.e., on prices, such as minimum profit conditions for the generating units or maximum cost conditions for the consumers. In this way, given the form of the individual optimization problems, the Karush-Kuhn-Tucker conditions for the generating companies, the consumers and the independent system operator are both necessary and sufficient. The simultaneous solution to all these conditions constitutes a mixed linear complementarity problem. We include minimum profit constraints imposed by the units in the market equilibrium model. These constraints are added as additional constraints to the equivalent quadratic programming problem of the mixed linear complementarity problem previously described. For the sake of clarity, the proposed equilibrium or near-equilibrium is first developed for the particular case considering only one time period. Afterwards, we consider an equilibrium or near-equilibrium applied to a multi-period framework. This model embodies binary

  5. 40 CFR 35.6585 - Cost and price analysis.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... recipient must negotiate profit as a separate element of the price. To establish a fair and reasonable... performance, and industry profit rates in the surrounding geographical area for similar work....

  6. Fairness and dynamic pricing: comments

    SciTech Connect

    Hogan, William W.

    2010-07-15

    In ''The Ethics of Dynamic Pricing,'' Ahmad Faruqui lays out a case for improved efficiency in using dynamic prices for retail electricity tariffs and addresses various issues about the distributional effects of alternative pricing mechanisms. The principal contrast is between flat or nearly constant energy prices and time-varying prices that reflect more closely the marginal costs of energy and capacity. The related issues of fairness criteria, contracts, risk allocation, cost allocation, means testing, real-time pricing, and ethical policies of electricity market design also must be considered. (author)

  7. 48 CFR 5215.804-3 - Exemptions from or waiver of submission of certified cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... of submission of certified cost or pricing data. 5215.804-3 Section 5215.804-3 Federal Acquisition... 5215.804-3 Exemptions from or waiver of submission of certified cost or pricing data. (a) General. As explained in 5215.402, cost or pricing data would not normally be obtained because the predominant...

  8. 75 FR 53135 - Federal Acquisition Regulation; Definition of Cost or Pricing Data

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-08-30

    ...-0001, Sequence 15] RIN 9000-AK74 Federal Acquisition Regulation; Definition of Cost or Pricing Data... pricing data,'' the obligation of the offeror to provide this data, and the definition of this term. This lack of clarity is due, in large part, to definitions that overlap and are not identical to TINA....

  9. Proportional Transaction Costs in the Robust Control Approach to Option Pricing: The Uniqueness Theorem

    SciTech Connect

    El Farouq, Naïma; Bernhard, Pierre

    2015-10-15

    We prove the missing uniqueness theorem for the viscosity solution of a quasi-variational inequality related to a minimax impulse control problem modeling the option pricing with proportional transactions costs. This result makes our robust control approach of option pricing in the interval market model essentially complete.

  10. Marginal ambulatory teaching cost under varying levels of service utilization.

    PubMed

    Panton, D M; Mushlin, A I; Gavett, J W

    1980-06-01

    The ambulatory component of residency training jointly produces two products, namely, training and patient services. In costing educational programs of this type, two approaches are frequently taken. The first considers the total costs of the educational program, including training and patient services. These costs are usually constructed from historical accounting records. The second approach attempts to cost the joint products separately, based upon estimates of future changes in program costs, if the product in question is added to or removed from the program. The second approach relates to typical decisions facing the managers of medical centers and practices used for teaching purposes. This article reports such a study of costs in a primary-care residency training program in a hospital outpatient setting. The costs of the product, i.e., on-the-job training, are evaluated using a replacement-cost concept under different levels of patient services. The results show that the cost of the product, training, is small at full clinical utilization and is sensitive to changes in the volume of services provided.

  11. College Costs, Prices and the Great Recession. Lumina Issue Papers

    ERIC Educational Resources Information Center

    Johnson, Nate

    2014-01-01

    As states and families begin to recover from the effects of the Great Recession, some of the urgency about college affordability may start to ease. The most recent "Trends in College Pricing" report shows tuition rising more slowly than in recent years (Baum and Ma 2013). Growth in Pell grant applications is also expected to slow as…

  12. Optimal pricing policies for services with consideration of facility maintenance costs

    NASA Astrophysics Data System (ADS)

    Yeh, Ruey Huei; Lin, Yi-Fang

    2012-06-01

    For survival and success, pricing is an essential issue for service firms. This article deals with the pricing strategies for services with substantial facility maintenance costs. For this purpose, a mathematical framework that incorporates service demand and facility deterioration is proposed to address the problem. The facility and customers constitute a service system driven by Poisson arrivals and exponential service times. A service demand with increasing price elasticity and a facility lifetime with strictly increasing failure rate are also adopted in modelling. By examining the bidirectional relationship between customer demand and facility deterioration in the profit model, the pricing policies of the service are investigated. Then analytical conditions of customer demand and facility lifetime are derived to achieve a unique optimal pricing policy. The comparative statics properties of the optimal policy are also explored. Finally, numerical examples are presented to illustrate the effects of parameter variations on the optimal pricing policy.

  13. CONSUMPTION AND RESPONSE OUTPUT AS A FUNCTION OF UNIT PRICE: MANIPULATION OF COST AND BENEFIT COMPONENTS

    PubMed Central

    Delmendo, Xeres; Borrero, John C; Beauchamp, Kenneth L; Francisco, Monica T

    2009-01-01

    We conducted preference assessments with 4 typically developing children to identify potential reinforcers and assessed the reinforcing efficacy of those stimuli. Next, we tested two predictions of economic theory: that overall consumption (reinforcers obtained) would decrease as the unit price (response requirement per reinforcer) increased and that the cost and benefit components that defined unit price would not influence overall consumption considerably when unit price values were equal. We tested these predictions by arranging unit price such that the denominator was one (e.g., two responses produced one reinforcer) or two (e.g., four responses produced two reinforcers). Results showed that consumption decreased as unit price increased and that unit price values with different components produced similar consumption. PMID:20190922

  14. Consumption and response output as a function of unit price: manipulation of cost and benefit components.

    PubMed

    Delmendo, Xeres; Borrero, John C; Beauchamp, Kenneth L; Francisco, Monica T

    2009-01-01

    We conducted preference assessments with 4 typically developing children to identify potential reinforcers and assessed the reinforcing efficacy of those stimuli. Next, we tested two predictions of economic theory: that overall consumption (reinforcers obtained) would decrease as the unit price (response requirement per reinforcer) increased and that the cost and benefit components that defined unit price would not influence overall consumption considerably when unit price values were equal. We tested these predictions by arranging unit price such that the denominator was one (e.g., two responses produced one reinforcer) or two (e.g., four responses produced two reinforcers). Results showed that consumption decreased as unit price increased and that unit price values with different components produced similar consumption.

  15. Straight Talk about College Costs and Prices. Report of The National Commission on the Cost of Higher Education.

    ERIC Educational Resources Information Center

    Harvey, James; Williams, Roger M.; Kirshstein, Rita J.; O'Malley, Amy Smith; Wellman, Jane V.

    This report reviews trends affecting rising costs and prices in higher education and proposes an action agenda for colleges, government at all levels, families and students, and other patrons. The recommendations emphasize shared responsibility to (1) strengthen institutional cost control; (2) improve market information and public accountability;…

  16. Ramsey pricing and supply-side incentives in physician markets.

    PubMed

    Wedig, G J

    1993-12-01

    In this paper, I develop a theory of optimal prices using a relative value scale where there are fixed costs of medical practice. I consider a regulator constrained to set prices in excess of marginal cost, in markets where physicians can create demand at the margin. Under these conditions, basing prices on physician costs alone is shown to be suboptimal. Instead, prices should anticipate the behavior of physicians by setting profit margins highest for services least susceptible to demand creation. This is equivalent to a form of Ramsey pricing, used in this case to minimize the deadweight loss of oversupply.

  17. Prices, Costs, and Affordability of New Medicines for Hepatitis C in 30 Countries: An Economic Analysis

    PubMed Central

    Tay-Teo, Kiu; Vogler, Sabine; Beyer, Peter; Wiktor, Stefan; de Joncheere, Kees; Hill, Suzanne

    2016-01-01

    Introduction New hepatitis C virus (HCV) medicines have markedly improved treatment efficacy and regimen tolerability. However, their high prices have limited access, prompting wide debate about fair and affordable prices. This study systematically compared the price and affordability of sofosbuvir and ledipasvir/sofosbuvir across 30 countries to assess affordability to health systems and patients. Methods and Findings Published 2015 ex-factory prices for a 12-wk course of treatment were provided by the Pharma Price Information (PPI) service of the Austrian public health institute Gesundheit Österreich GmbH or were obtained from national government or drug reimbursement authorities and recent press releases, where necessary. Prices in Organisation for Economic Co-operation and Development (OECD) member countries and select low- and middle-income countries were converted to US dollars using period average exchange rates and were adjusted for purchasing power parity (PPP). We analysed prices compared to national economic performance and estimated market size and the cost of these drugs in terms of countries’ annual total pharmaceutical expenditure (TPE) and in terms of the duration of time an individual would need to work to pay for treatment out of pocket. Patient affordability was calculated using 2014 OECD average annual wages, supplemented with International Labour Organization median wage data where necessary. All data were compiled between 17 July 2015 and 25 January 2016. For the base case analysis, we assumed a 23% rebate/discount on the published price in all countries, except for countries with special pricing arrangements or generic licensing agreements. The median nominal ex-factory price of a 12-wk course of sofosbuvir across 26 OECD countries was US$42,017, ranging from US$37,729 in Japan to US$64,680 in the US. Central and Eastern European countries had higher PPP-adjusted prices than other countries: prices of sofosbuvir in Poland and Turkey (PPP

  18. Cost accounting models used for price-setting of health services: an international review.

    PubMed

    Raulinajtys-Grzybek, Monika

    2014-12-01

    The aim of the article was to present and compare cost accounting models which are used in the area of healthcare for pricing purposes in different countries. Cost information generated by hospitals is further used by regulatory bodies for setting or updating prices of public health services. The article presents a set of examples from different countries of the European Union, Australia and the United States and concentrates on DRG-based payment systems as they primarily use cost information for pricing. Differences between countries concern the methodology used, as well as the data collection process and the scope of the regulations on cost accounting. The article indicates that the accuracy of the calculation is only one of the factors that determine the choice of the cost accounting methodology. Important aspects are also the selection of the reference hospitals, precise and detailed regulations and the existence of complex healthcare information systems in hospitals.

  19. A Distribution-class Locational Marginal Price (DLMP) Index for Enhanced Distribution Systems

    NASA Astrophysics Data System (ADS)

    Akinbode, Oluwaseyi Wemimo

    The smart grid initiative is the impetus behind changes that are expected to culminate into an enhanced distribution system with the communication and control infrastructure to support advanced distribution system applications and resources such as distributed generation, energy storage systems, and price responsive loads. This research proposes a distribution-class analog of the transmission LMP (DLMP) as an enabler of the advanced applications of the enhanced distribution system. The DLMP is envisioned as a control signal that can incentivize distribution system resources to behave optimally in a manner that benefits economic efficiency and system reliability and that can optimally couple the transmission and the distribution systems. The DLMP is calculated from a two-stage optimization problem; a transmission system OPF and a distribution system OPF. An iterative framework that ensures accurate representation of the distribution system's price sensitive resources for the transmission system problem and vice versa is developed and its convergence problem is discussed. As part of the DLMP calculation framework, a DCOPF formulation that endogenously captures the effect of real power losses is discussed. The formulation uses piecewise linear functions to approximate losses. This thesis explores, with theoretical proofs, the breakdown of the loss approximation technique when non-positive DLMPs/LMPs occur and discusses a mixed integer linear programming formulation that corrects the breakdown. The DLMP is numerically illustrated in traditional and enhanced distribution systems and its superiority to contemporary pricing mechanisms is demonstrated using price responsive loads. Results show that the impact of the inaccuracy of contemporary pricing schemes becomes significant as flexible resources increase. At high elasticity, aggregate load consumption deviated from the optimal consumption by up to about 45 percent when using a flat or time-of-use rate. Individual load

  20. Marginal capacity costs of electricity distribution and demand for distributed generation

    SciTech Connect

    Woo, Chi-Keung, Lloyd-Zanetti, D.; Orans, R.

    1995-12-31

    Marginal costs of electricity vary by time and location. Past researchers attributed these variations to factors related to electricity generation, transmission and distribution. Past authors, however, did not fully analyze the large variations in marginal distribution capacity costs (MDCC) by area and time. Thus, the objectives of this paper are as follows: (1) to show that large MDCC variations exist within a utility`s service territory; (2) to demonstrate inter-utility variations in MDCC; and (3) to demonstrate the usefulness of these costs in determining demand for distributed generation (DG). 27 refs., 3 figs., 2 tabs.

  1. Financial Impact of Dual Vendor, Matrix Pricing, and Sole-Source Contracting on Implant Costs.

    PubMed

    Althausen, Peter L; Lapham, Joan; Mead, Lisa

    2016-12-01

    Implant costs comprise the largest proportion of operating room supply costs for orthopedic trauma care. Over the years, hospitals have devised several methods of controlling these costs with the help of physicians. With increasing economic pressure, these negotiations have a tremendous ability to decrease the cost of trauma care. In the past, physicians have taken no responsibility for implant pricing which has made cost control difficult. The reasons have been multifactorial. However, industry surgeon consulting fees, research support, and surgeon comfort with certain implant systems have played a large role in slowing adoption of cost-control measures. With the advent of physician gainsharing and comanagement agreements, physicians now have impetus to change. At our facility, we have used 3 methods for cost containment since 2009: dual vendor, matrix pricing, and sole-source contracting. Each has been increasingly successful, resulting in massive savings for the institution. This article describes the process and benefits of each model.

  2. Automobile Industry Retail Price Equivalent and Indirect Cost Multipliers

    EPA Science Inventory

    This report develops a modified multiplier, referred to as an indirect cost (IC) multiplier, which specifically evaluates the components of indirect costs that are likely to be affected by vehicle modifications associated with environmental regulation. A range of IC multipliers a...

  3. 48 CFR 2152.216-71 - Fixed price with limited cost redetermination-service charge.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... request, OPM will furnish, during the third quarter of the current contract year, an accounting of the... cost redetermination-service charge. 2152.216-71 Section 2152.216-71 Federal Acquisition Regulations....216-71 Fixed price with limited cost redetermination—service charge. As prescribed in...

  4. 48 CFR 2152.216-70 - Fixed price with limited cost redetermination-risk charge.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... request, OPM will furnish, during the third quarter of the current contract year, an accounting of the... cost redetermination-risk charge. 2152.216-70 Section 2152.216-70 Federal Acquisition Regulations....216-70 Fixed price with limited cost redetermination—risk charge. As prescribed in...

  5. Fuel prices, emission standards, and generation costs for coal vs natural gas power plants.

    PubMed

    Pratson, Lincoln F; Haerer, Drew; Patiño-Echeverri, Dalia

    2013-05-07

    Low natural gas prices and stricter, federal emission regulations are promoting a shift away from coal power plants and toward natural gas plants as the lowest-cost means of generating electricity in the United States. By estimating the cost of electricity generation (COE) for 304 coal and 358 natural gas plants, we show that the economic viability of 9% of current coal capacity is challenged by low natural gas prices, while another 56% would be challenged by the stricter emission regulations. Under the current regulations, coal plants would again become the dominant least-cost generation option should the ratio of average natural gas to coal prices (NG2CP) rise to 1.8 (it was 1.42 in February 2012). If the more stringent emission standards are enforced, however, natural gas plants would remain cost competitive with a majority of coal plants for NG2CPs up to 4.3.

  6. Marginal-cost contracting in the NHS: results of a preliminary survey.

    PubMed

    Beddow, A J; Cohen, D R

    2001-05-01

    Market disciplines and incentives were expected to improve efficiency in the UK National Health Service following the introduction of an 'internal market' in 1991. An exploratory survey of all Health Authorities and Trusts in the UK was undertaken to investigate whether players in the NHS managed market are behaving as economic theory predicts they should. The focus was on how and to what extent marginal costing has been used in the contracting process and on whether in some instances an inappropriate use of marginal costing may be resulting in inappropriate investment decisions. Twenty of 29 responding Health Authorities (69%) and 16 of 39 Trusts (41%) stated that they had considered purchasing/providing services on a marginal-cost basis and all of these led to contracts. Marginal-cost contracting appears to be fairly commonplace and the process does not appear to be causing insurmountable conflicts between players. Most marginal-cost contracts were specifically to meet waiting-list initiative targets. Overall results suggest that economic principles are not being particularly adhered to, with expansion in output rarely being related to available capacity. As increased responsibility for commissioning passes to primary care teams and local health groups, there are lessons for those involved in this more disaggregated approach to service shaping and service delivery.

  7. Pricing postselection: the cost of indecision in state discrimination

    NASA Astrophysics Data System (ADS)

    Combes, Joshua; Ferrie, Christopher

    2015-03-01

    Postselection is the process of discarding outcomes from statistical trials that are not the event one desires. Postselection can be useful in many applications where the cost of getting the wrong event is implicitly high. However, unless this cost is specified exactly, one might formally conclude that discarding all data is optimal. Here we analyze the optimal decision rules and quantum measurements in a decision theoretic setting where a pre-specified cost is assigned to discarding data. Non-trivial solutions are found for even the simplest state discrimination problem of choosing between two nonorthogonal qubit states. Our solutions interpolate between the Helstrom measurement and the unambiguous state discrimination experiment.

  8. Identifying cost-minimizing strategies for guaranteeing target dairy income over feed cost via use of the Livestock Gross Margin dairy insurance program.

    PubMed

    Valvekar, M; Cabrera, V E; Gould, B W

    2010-07-01

    Milk and feed price volatility are the major source of dairy farm risk. Since August 2008 a new federally reinsured insurance program has been available to many US dairy farmers to help minimize the negative effects of adverse price movements. This insurance program is referred to as Livestock Gross Margin Insurance for Dairy Cattle. Given the flexibility in contract design, the dairy farmer has to make 3 critical decisions when purchasing this insurance: 1) the percentage of monthly milk production to be covered, 3) declared feed equivalents used to produce this milk, and 3) the level of gross margin not covered by insurance (i.e., deductible). The objective of this analysis was to provide an optimal strategy of how a dairy farmer could incorporate this insurance program to help manage the variability in net farm income. In this analysis we assumed that a risk-neutral dairy farmer wants to design an insurance contract such that a target guaranteed income over feed cost is obtained at least cost. We undertook this analysis for a representative Wisconsin dairy farm (herd size: 120 cows) producing 8,873 kg (19,545 lb) of milk/cow per year. Wisconsin statistical data indicates that dairy farms of similar size must require an income over feed cost of at least $110/Mg ($5/cwt) of milk to be profitable during the coverage period. Therefore, using data for the July 2009 insurance contract to insure $110/Mg of milk, the least cost contract was found to have a premium of $1.22/Mg ($0.055/cwt) of milk produced insuring approximately 52% of the production with variable monthly production covered during the period of September 2009 to June 2010. This premium represented 1.10% of the desired IOFC. We compared the above optimal strategy with an alternative nonoptimal strategy, defined as a contract insuring the same proportion of milk as the optimal (52%) but with a constant amount insured across all contract months. The premium was found to be almost twice the level obtained

  9. How much does it cost? Physician pricing in the era of consumerism.

    PubMed

    Vernon, Robert

    2006-10-01

    Setting physician pricing--whether based on actual costs, historical charges or current competitive forces--faces new challenges. The new consumerism in health care has led to a larger retail market. Patients increasingly pay physicians directly for their services, and the role of third-party payers has changed, if not diminished. Two types of self-pay patients are growing in number, and the challenges to physician pricing strategies are, too.

  10. Understanding the cost bases of Space Shuttle pricing policies for commercial and foreign customers

    NASA Technical Reports Server (NTRS)

    Stone, Barbara A.

    1984-01-01

    The principles and underlying cost bases of the 1977 and 1982 Space Shuttle Reimbursement Policies are compared and contrasted. Out-of-pocket cost recovery has been chosen as the base of the price for the 1986-1988 time period. With this cost base, it is NASA's intent to recover the total cost of consumables and the launch and flight operations costs added by commercial and foreign customers over the 1986-1988 time period. Beyond 1988, NASA intends to return to its policy of full cost recovery.

  11. Pollution's Price--The Cost in Human Health

    ERIC Educational Resources Information Center

    Newill, Vaun A.

    1973-01-01

    Discusses the detrimental effects of air pollution, and especially sulfur dioxide, on human health. Any relaxation of existing national air pollution standards because of the energy crisis could be costly in terms of the nation's health. (JR)

  12. Marginal costs of water savings from cooling system retrofits: a case study for Texas power plants

    NASA Astrophysics Data System (ADS)

    Loew, Aviva; Jaramillo, Paulina; Zhai, Haibo

    2016-10-01

    The water demands of power plant cooling systems may strain water supply and make power generation vulnerable to water scarcity. Cooling systems range in their rates of water use, capital investment, and annual costs. Using Texas as a case study, we examined the cost of retrofitting existing coal and natural gas combined-cycle (NGCC) power plants with alternative cooling systems, either wet recirculating towers or air-cooled condensers for dry cooling. We applied a power plant assessment tool to model existing power plants in terms of their key plant attributes and site-specific meteorological conditions and then estimated operation characteristics of retrofitted plants and retrofit costs. We determined the anticipated annual reductions in water withdrawals and the cost-per-gallon of water saved by retrofits in both deterministic and probabilistic forms. The results demonstrate that replacing once-through cooling at coal-fired power plants with wet recirculating towers has the lowest cost per reduced water withdrawals, on average. The average marginal cost of water withdrawal savings for dry-cooling retrofits at coal-fired plants is approximately 0.68 cents per gallon, while the marginal recirculating retrofit cost is 0.008 cents per gallon. For NGCC plants, the average marginal costs of water withdrawal savings for dry-cooling and recirculating towers are 1.78 and 0.037 cents per gallon, respectively.

  13. Scaling and long-range dependence in option pricing III: A fractional version of the Merton model with transaction costs

    NASA Astrophysics Data System (ADS)

    Wang, Xiao-Tian; Yan, Hai-Gang; Tang, Ming-Ming; Zhu, En-Hui

    2010-02-01

    A model for option pricing of fractional version of the Merton model with ‘Hurst exponent’ H being in [1/2,1) is established with transaction costs. In particular, for H∈(1/2,1) the minimal price Cmin(t,St) of an option under transaction costs is obtained, which displays that the timestep δt and the ‘Hurst exponent’ H play an important role in option pricing with transaction costs.

  14. Alternative methods of marginal abatement cost estimation: Non- parametric distance functions

    SciTech Connect

    Boyd, G.; Molburg, J.; Prince, R.

    1996-12-31

    This project implements a economic methodology to measure the marginal abatement costs of pollution by measuring the lost revenue implied by an incremental reduction in pollution. It utilizes observed performance, or `best practice`, of facilities to infer the marginal abatement cost. The initial stage of the project is to use data from an earlier published study on productivity trends and pollution in electric utilities to test this approach and to provide insights on its implementation to issues of cost-benefit analysis studies needed by the Department of Energy. The basis for this marginal abatement cost estimation is a relationship between the outputs and the inputs of a firm or plant. Given a fixed set of input resources, including quasi-fixed inputs like plant and equipment and variable inputs like labor and fuel, a firm is able to produce a mix of outputs. This paper uses this theoretical view of the joint production process to implement a methodology and obtain empirical estimates of marginal abatement costs. These estimates are compared to engineering estimates.

  15. Price transparency for MRIs increased use of less costly providers and triggered provider competition.

    PubMed

    Wu, Sze-jung; Sylwestrzak, Gosia; Shah, Christiane; DeVries, Andrea

    2014-08-01

    To encourage patients to select high-value providers, an insurer-initiated price transparency program that focused on elective advanced imaging procedures was implemented. Patients having at least one outpatient magnetic resonance imaging (MRI) scan in 2010 or 2012 were divided according to their membership in commercial health plans participating in the program (the intervention group) or in nonparticipating commercial health plans (the reference group) in similar US geographic regions. Patients in the intervention group were informed of price differences among available MRI facilities and given the option of selecting different providers. For those patients, the program resulted in a $220 cost reduction (18.7 percent) per test and a decrease in use of hospital-based facilities from 53 percent in 2010 to 45 percent in 2012. Price variation between hospital and nonhospital facilities for the intervention group was reduced by 30 percent after implementation. Nonparticipating members residing in intervention areas also observed price reductions, which indicates increased price competition among providers. The program significantly reduced imaging costs. This suggests that patients select lower-price facilities when informed about available alternatives.

  16. Reduction potential, shadow prices, and pollution costs of agricultural pollutants in China.

    PubMed

    Tang, Kai; Gong, Chengzhu; Wang, Dong

    2016-01-15

    This paper analyses the reduction potential, shadow prices, and pollution costs of agricultural pollutants in China based on provincial panel data for 2001-2010. Using a parameterized quadratic form for the directional output distance function, we find that if agricultural sectors in all provinces were to produce on the production frontier, China could potentially reduce agricultural emissions of chemical oxygen demand (COD), total nitrogen (TN), and total phosphorus (TP) by 16.0%, 16.2%, and 20.4%, respectively. Additionally, our results show that the shadow price of TN increased rapidly and continuously, while that of COD and TP fluctuated for the whole period. For the whole country, the average shadow price of COD, TN, and TP are 8266 Yuan/tonne, 25,560 Yuan/tonne, and 10,160 Yuan/tonne, respectively. The regional shadow prices of agricultural pollutants are unbalanced. Furthermore, we show that the pollution costs from emissions of COD, TN, and TP are 6.09% of the annual gross output value of the agricultural sector and are highest in the Western and lowest in the Eastern provinces. Our estimates suggest that there is scope for further pollution abatement and simultaneous output expansion for China's agriculture if farmers promote greater efficiency in their production process. Policymakers are required to dynamically adjust the pollution tax rates and ascertain the initial permit price in an emission trading system. Policymakers should also consider the different pollution costs for each province when making the reduction allocations within the agricultural sector.

  17. [Comparison of Costs and Revenues in Conservative and Invasive Treatment in Cardiology: a Contribution Margin Analysis].

    PubMed

    Plehn, G; Oernek, A; Vormbrock, J; Maagh, P; Butz, T; Meissner, A

    2015-12-15

    Aim of the study: Direct costing is a specialized form of cost analysis well suited for medical areas with DRG-orientated flat rate payments. By comparing case-related variable costs and payments, it is possible to compare the economic benefits of different medical treatments. This aim was pursued by developing a direct costing concept and by its application to invasively and non-invasively treated cardiac patients. Methods: The entire database comprised 7 330 cases of a tertiary cardiac center between 2007 and 2011. It was derived from databases of the hospital information system, the materials management department and the catheter laboratory. On the revenue side, DRG payments were included. Costs related to heart catheterization such as material, personnel and maintenance expenses were considered to be variable costs. Contribution margins and relative contribution margins were calculated by introducing the length of hospital stay as a time reference. Results: During the observation period, caseload and annual revenues increased by about 20 percent. Contribution margins were higher in invasively than in non-invasively treated patients (2 097±1 590 vs. 1 614±1 105 €; p<0,001). However, the relative relation of both patient groups was not altered during the observation period. A remarkable shortening of the duration of catheter laboratory examinations was observed between 2007 and 2011 (46,2±39,1 auf 36,7±33,5 min; p<0,001). In the same period, relative contribution margins increased from 461±306 to 530±335 € (p<0,001). Conclusions: Within existing supply structures, direct costing is a useful tool for economic comparison of different treatment services. Furthermore, temporal constraints of an economic bottleneck can be easily monitored and tackled with the help of time management tools.

  18. Issue Brief #1: Who Pays for Higher Education? Changing Patterns in Cost, Price, and Subsidies

    ERIC Educational Resources Information Center

    Delta Project on Postsecondary Education Costs, Productivity and Accountability, 2010

    2010-01-01

    To understand why tuitions are increasing at institutions of higher education, policymakers need to look at the relationships between and among cost, price and subsidy. This brief explains how to understand those relationships, what the trend data show at a national level, places to go for more information, and questions to ask. (Contains 3…

  19. 48 CFR 5252.215-9000 - Submission of cost or pricing data.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... 48 Federal Acquisition Regulations System 7 2013-10-01 2012-10-01 true Submission of cost or pricing data. 5252.215-9000 Section 5252.215-9000 Federal Acquisition Regulations System DEPARTMENT OF THE NAVY ACQUISITION REGULATIONS SOLICITATION PROVISIONS AND CONTRACT CLAUSES Texts of Provisions...

  20. Congressionally Mandated Studies of College Costs and Prices. NCES 2003-171

    ERIC Educational Resources Information Center

    National Center for Education Statistics, 2002

    2002-01-01

    In its 1998 Amendments to the Higher Education Act, Congress directed the Commissioner of Education Statistics to conduct a study of higher education costs paid by institutions and prices paid by students and their families for a postsecondary education. (For the full law, see: http://www.ed.gov/legislation/HEA/sec101C.html). Section 131 of the…

  1. Why Do Higher-Education Costs Rise More Rapidly than Prices in General?

    ERIC Educational Resources Information Center

    Archibald, Robert B.; Feldman, David H.

    2008-01-01

    Why do costs in higher education rise more rapidly than prices in general? They do so due to four factors: (1) higher education is a personal-service industry; (2) higher education relies on highly educated labor; (3) because of increased capital usage (in the form of the new technologies), higher education's reliance on highly educated labor has…

  2. Putting a Price Tag on the Common Core: How Much Will Smart Implementation Cost?

    ERIC Educational Resources Information Center

    Murphy, Patrick; Regenstein, Elliot

    2012-01-01

    The Common Core State Standards (CCSS) for English language arts and mathematics represent a sea change in standards-based reform and their implementation is the movement's next--and greatest--challenge. Yet, while most states have now set forth implementation plans, these tomes seldom address the crucial matter of cost. Putting a Price Tag on the…

  3. 23 CFR 636.508 - Can price or cost be an issue in discussions?

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 23 Highways 1 2010-04-01 2010-04-01 false Can price or cost be an issue in discussions? 636.508 Section 636.508 Highways FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION ENGINEERING AND TRAFFIC OPERATIONS DESIGN-BUILD CONTRACTING Discussions, Proposal Revisions and Source Selection §...

  4. Increasing Fuel Costs Hit Hard: Districts Change Policies to Offset Rising Prices

    ERIC Educational Resources Information Center

    Ash, Katie

    2008-01-01

    This article reports that with fuel prices soaring nationwide, reaching more than $4 for each gallon of gas or diesel, school districts are struggling to supplement transportation-budget shortfalls and find ways to offset the increasing costs as a new school year approaches. Now districts--most of whose buses run on diesel fuel--are scrambling to…

  5. Use of Programmed Review of Information for Costing and Evaluation (PRICE) model at CNES

    NASA Astrophysics Data System (ADS)

    Roux, J. B.

    The bases of the PRICE model, which calculates a cost-mass relation for a given project from data of thousands of other projects are outlined, and its application to the Ariane project is outlined. Ten to 20 descriptors per project define key elements, like manufacturing processes, and regression analysis calculates their coefficients and range. The model assesses physical parameters and others such as time limits. The few differences between model forecasts and actual production costs for Ariane were due to special circumstances.

  6. Impact of Coverage-Dependent Marginal Costs on Optimal HPV Vaccination Strategies

    PubMed Central

    Ryser, Marc D.; McGoff, Kevin; Herzog, David P.; Sivakoff, David J.; Myers, Evan R.

    2015-01-01

    The effectiveness of vaccinating males against the human papillomavirus (HPV) remains a controversial subject. Many existing studies conclude that increasing female coverage is more effective than diverting resources into male vaccination. Recently, several empirical studies on HPV immunization have been published, providing evidence of the fact that marginal vaccination costs increase with coverage. In this study, we use a stochastic agent-based modeling framework to revisit the male vaccination debate in light of these new findings. Within this framework, we assess the impact of coverage-dependent marginal costs of vaccine distribution on optimal immunization strategies against HPV. Focusing on the two scenarios of ongoing and new vaccination programs, we analyze different resource allocation policies and their effects on overall disease burden. Our results suggest that if the costs associated with vaccinating males are relatively close to those associated with vaccinating females, then coverage-dependent, increasing marginal costs may favor vaccination strategies that entail immunization of both genders. In particular, this study emphasizes the necessity for further empirical research on the nature of coverage-dependent vaccination costs. PMID:25979280

  7. Impact of coverage-dependent marginal costs on optimal HPV vaccination strategies.

    PubMed

    Ryser, Marc D; McGoff, Kevin; Herzog, David P; Sivakoff, David J; Myers, Evan R

    2015-06-01

    The effectiveness of vaccinating males against the human papillomavirus (HPV) remains a controversial subject. Many existing studies conclude that increasing female coverage is more effective than diverting resources into male vaccination. Recently, several empirical studies on HPV immunization have been published, providing evidence of the fact that marginal vaccination costs increase with coverage. In this study, we use a stochastic agent-based modeling framework to revisit the male vaccination debate in light of these new findings. Within this framework, we assess the impact of coverage-dependent marginal costs of vaccine distribution on optimal immunization strategies against HPV. Focusing on the two scenarios of ongoing and new vaccination programs, we analyze different resource allocation policies and their effects on overall disease burden. Our results suggest that if the costs associated with vaccinating males are relatively close to those associated with vaccinating females, then coverage-dependent, increasing marginal costs may favor vaccination strategies that entail immunization of both genders. In particular, this study emphasizes the necessity for further empirical research on the nature of coverage-dependent vaccination costs.

  8. Accounting for the drug life cycle and future drug prices in cost-effectiveness analysis.

    PubMed

    Hoyle, Martin

    2011-01-01

    Economic evaluations of health technologies typically assume constant real drug prices and model only the cohort of patients currently eligible for treatment. It has recently been suggested that, in the UK, we should assume that real drug prices decrease at 4% per annum and, in New Zealand, that real drug prices decrease at 2% per annum and at patent expiry the drug price falls. It has also recently been suggested that we should model multiple future incident cohorts. In this article, the cost effectiveness of drugs is modelled based on these ideas. Algebraic expressions are developed to capture all costs and benefits over the entire life cycle of a new drug. The lifetime of a new drug in the UK, a key model parameter, is estimated as 33 years, based on the historical lifetime of drugs in England over the last 27 years. Under the proposed methodology, cost effectiveness is calculated for seven new drugs recently appraised in the UK. Cost effectiveness as assessed in the future is also estimated. Whilst the article is framed in mathematics, the findings and recommendations are also explained in non-mathematical language. The 'life-cycle correction factor' is introduced, which is used to convert estimates of cost effectiveness as traditionally calculated into estimates under the proposed methodology. Under the proposed methodology, all seven drugs appear far more cost effective in the UK than published. For example, the incremental cost-effectiveness ratio decreases by 46%, from £61, 900 to £33, 500 per QALY, for cinacalcet versus best supportive care for end-stage renal disease, and by 45%, from £31,100 to £17,000 per QALY, for imatinib versus interferon-α for chronic myeloid leukaemia. Assuming real drug prices decrease over time, the chance that a drug is publicly funded increases over time, and is greater when modelling multiple cohorts than with a single cohort. Using the methodology (compared with traditional methodology) all drugs in the UK and New

  9. 48 CFR 1616.7001 - Clause-contracts based on a combination of cost and price analysis (community rated).

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Clause-contracts based on a...—contracts based on a combination of cost and price analysis (community rated). The clause at section 1652.216-70 shall be inserted in all FEHBP contracts based on a combination of cost and price...

  10. Estimating the environmental and resource costs of leakage in water distribution systems: A shadow price approach.

    PubMed

    Molinos-Senante, María; Mocholí-Arce, Manuel; Sala-Garrido, Ramon

    2016-10-15

    Water scarcity is one of the main problems faced by many regions in the XXIst century. In this context, the need to reduce leakages from water distribution systems has gained almost universal acceptance. The concept of sustainable economic level of leakage (SELL) has been proposed to internalize the environmental and resource costs within economic level of leakage calculations. However, because these costs are not set by the market, they have not often been calculated. In this paper, the directional-distance function was used to estimate the shadow price of leakages as a proxy of their environmental and resource costs. This is a pioneering approach to the economic valuation of leakage externalities. An empirical application was carried out for the main Chilean water companies. The estimated results indicated that for 2014, the average shadow price of leakages was approximately 32% of the price of the water delivered. Moreover, as a sensitivity analysis, the shadow prices of the leakages were calculated from the perspective of the water companies' managers and the regulator. The methodology and findings of this study are essential for supporting the decision process of reducing leakage, contributing to the improvement of economic, social and environmental efficiency and sustainability of urban water supplies.

  11. Presenting Germany's drug pricing rule as a cost-per-QALY rule.

    PubMed

    Gandjour, Afschin

    2012-06-01

    In Germany, the Institute for Quality and Efficiency in Health Care (IQWiG) makes recommendations for ceiling prices of drugs based on an evaluation of the relationship between costs and effectiveness. To set ceiling prices, IQWiG uses the following decision rule: the incremental cost-effectiveness ratio of a new drug compared with the next effective intervention should not be higher than that of the next effective intervention compared to its comparator. The purpose of this paper is to show that IQWiG's decision rule can be presented as a cost-per-QALY rule by using equity-weighted QALYs. This transformation shows where both rules share commonalities. Furthermore, it makes the underlying ethical implications of IQWiG's decision rule transparent and open to debate.

  12. Regional and sectoral marginal abatement cost curves for NOx incorporating controls, renewable electricity, energy efficiency and fuel switching

    EPA Science Inventory

    A marginal abatement cost curve (MACC) traces out the relationship between the quantity of pollution abated and the marginal cost of abating each additional unit. In the context of air quality management, MACCs typically are developed by sorting end-of-pipe controls by their resp...

  13. The importance of vehicle costs, fuel prices, and fuel efficiency to HEV market success.

    SciTech Connect

    Santini, D. J.; Patterson, P. D.; Vyas, A. D.

    1999-12-08

    Toyota's introduction of a hybrid electric vehicle (HEV) named ''Prius'' in Japan and Honda's proposed introduction of an HEV in the United States have generated considerable interest in the long-term viability of such fuel-efficient vehicles. A performance and cost projection model developed entirely at Argonne National Laboratory (ANL) is used here to estimate costs. ANL staff developed fuel economy estimates by extending conventional vehicle (CV) modeling done primarily under the National Cooperative Highway Research Program. Together, these estimates are employed to analyze dollar costs vs. benefits of two of many possible HEV technologies. We project incremental costs and fuel savings for a Prius-type low-performance hybrid (14.3 seconds zero to 60 mph acceleration, 260 time) and a higher-performance ''mild'' hybrid vehicle, or MHV (11 seconds 260 time). Each HEV is compared to a U.S. Toyota Corolla with automatic transmission (11 seconds 260 time). The base incremental retail price range, projected a decade hence, is $3,200-$3,750, before considering battery replacement cost. Historical data are analyzed to evaluate the effect of fuel price on consumer preferences for vehicle fuel economy, performance, and size. The relationship between fuel price, the level of change in fuel price, and consumer attitude toward higher fuel efficiency is also evaluated. A recent survey on the value of higher fuel efficiency is presented and U.S. commercial viability of the hybrids is evaluated using discount rates of 2090 and 870. Our analysis, with our current HEV cost estimates and current fuel savings estimates, implies that the U.S. market for such HEVS would be quite limited.

  14. Cost and price estimate of Brayton and Stirling engines in selected production volumes

    NASA Technical Reports Server (NTRS)

    Fortgang, H. R.; Mayers, H. F.

    1980-01-01

    The methods used to determine the production costs and required selling price of Brayton and Stirling engines modified for use in solar power conversion units are presented. Each engine part, component and assembly was examined and evaluated to determine the costs of its material and the method of manufacture based on specific annual production volumes. Cost estimates are presented for both the Stirling and Brayton engines in annual production volumes of 1,000, 25,000, 100,000 and 400,000. At annual production volumes above 50,000 units, the costs of both engines are similar, although the Stirling engine costs are somewhat lower. It is concluded that modifications to both the Brayton and Stirling engine designs could reduce the estimated costs.

  15. 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

  16. Cost, Price and Public Policy: Peering into the Higher Education Black Box. New Agenda Series[TM], Volume 1, Number 3.

    ERIC Educational Resources Information Center

    Stringer, William L.; Cunningham, Alisa F.

    This report contains a conceptual framework for analyzing costs and prices by evaluating the higher education production function and the determinants of both prices and costs. The framework can be used to strengthen understanding of costs and prices within individual institutions and to inform macro level investments at state and national levels.…

  17. Pricing landfill externalities: Emissions and disamenity costs in Cape Town, South Africa

    SciTech Connect

    Nahman, Anton

    2011-09-15

    Highlights: > The paper estimates landfill externalities associated with emissions, disamenities and transport. > Transport externalities vary from 24.22 to 31.42 Rands per tonne. > Costs of emissions (estimated using benefits transfer) vary from 0.07 to 28.91 Rands per tonne. > Disamenities (estimated using hedonic pricing) vary from 0.00 to 57.46 Rands per tonne. > Overall, external costs for urban landfills exceed those of a regional landfill. - Abstract: The external (environmental and social) costs of landfilling (e.g. emissions to air, soil and water; and 'disamenities' such as odours and pests) are difficult to quantify in monetary terms, and are therefore not generally reflected in waste disposal charges or taken into account in decision making regarding waste management options. This results in a bias against alternatives such as recycling, which may be more expensive than landfilling from a purely financial perspective, but preferable from an environmental and social perspective. There is therefore a need to quantify external costs in monetary terms, so that different disposal options can be compared on the basis of their overall costs to society (financial plus external costs). This study attempts to estimate the external costs of landfilling in the City of Cape Town for different scenarios, using the benefits transfer method (for emissions) and the hedonic pricing method (for disamenities). Both methods (in particular the process of transferring and adjusting estimates from one study site to another) are described in detail, allowing the procedures to be replicated elsewhere. The results show that external costs are currently R111 (in South African Rands, or approximately US$16) per tonne of waste, although these could decline under a scenario in which energy is recovered, or in which the existing urban landfills are replaced with a new regional landfill.

  18. 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.

  19. Reimbursement and value-based pricing: stratified cost-effectiveness analysis may not be the last word.

    PubMed

    Hawkins, Neil; Scott, David A

    2011-06-01

    During recent discussions, it has been argued that stratified cost-effectiveness analysis has a key role in reimbursement decision-making and value-based pricing (VBP). It has previously been shown that when manufacturers are price-takers, reimbursement decisions made in reference to stratified cost-effectiveness analysis lead to a more efficient allocation of resources than decisions based on whole-population cost-effectiveness analysis. However, we demonstrate that when manufacturers are price setters, reimbursement or VBP based on stratified cost-effectiveness analysis may not be optimal. Using two examples - one considering the choice of thrombolytic treatment for specific patient subgroups and the other considering the extension of coverage for a cancer treatment to include an additional indication - we show that combinations of extended coverage and reduced price can be identified that are advantageous to both payers and manufacturers. The benefits of a given extension in coverage and reduction in price depend both upon the average treatment benefit in the additional population and its size relative to the original population. Negotiation regarding trade-offs between price and coverage may lead to improved outcomes both for health-care systems and manufacturers compared with processes where coverage is determined conditional simply on stratified cost-effectiveness at a given price.

  20. 75 FR 13414 - Federal Acquisition Regulation; FAR Case 2008-012, Clarification of Submission of Cost or Pricing...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-03-19

    ... items with the Truth In Negotiation Act (TINA) threshold for cost or pricing data. DATES: Effective Date... following changes: PART 15--CONTRACTING BY NEGOTIATION 0 1. The authority citation for 48 CFR part...

  1. 48 CFR 52.215-20 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... establishing the price offered. If the price is controlled under law by periodic rulings, reviews, or similar... pricing data, and supporting attachments in accordance with the instructions contained in Table 15-2 of... inserted here in full text. The instructions in Table 15-2 are incorporated as a mandatory format to...

  2. 48 CFR 52.215-20 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... establishing the price offered. If the price is controlled under law by periodic rulings, reviews, or similar... pricing data, and supporting attachments in accordance with the instructions contained in Table 15-2 of... inserted here in full text. The instructions in Table 15-2 are incorporated as a mandatory format to...

  3. 48 CFR 52.215-20 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... establishing the price offered. If the price is controlled under law by periodic rulings, reviews, or similar... pricing data, and supporting attachments in accordance with the instructions contained in Table 15-2 of... inserted here in full text. The instructions in Table 15-2 are incorporated as a mandatory format to...

  4. A menu with prices: Annual per person costs of programs addressing community integration.

    PubMed

    Leff, H Stephen; Cichocki, Ben; Chow, Clifton; Salzer, Mark; Wieman, Dow

    2016-02-01

    Information on costs of programs addressing community integration for persons with serious mental illness in the United States, essential for program planning and evaluation, is largely lacking. To address this knowledge gap, community integration programs identified through directories and snowball sampling were sent an online survey addressing program costs and organizational attributes. 64 Responses were received for which annual per person costs (APPC) could be computed. Programs were categorized by type of services provided. Program types differed in median APPCs, though median APPCs identified were consistent with the ranges identified in the limited literature available. Multiple regression was used to identify organizational variables underlying APPCs such as psychosocial rehabilitation program type, provision of EBPs, number of volunteers, and percentage of budget spent on direct care staff, though effects sizes were moderate at best. This study adds tentative prices to the menu of community integration programs, and the implications of these findings for choosing, designing and evaluating programs addressing community integration are discussed.

  5. Natural gas and CO2 price variation: impact on the relative cost-efficiency of LNG and pipelines

    PubMed Central

    Ulvestad, Marte; Overland, Indra

    2012-01-01

    This article develops a formal model for comparing the cost structure of the two main transport options for natural gas: liquefied natural gas (LNG) and pipelines. In particular, it evaluates how variations in the prices of natural gas and greenhouse gas emissions affect the relative cost-efficiency of these two options. Natural gas is often promoted as the most environmentally friendly of all fossil fuels, and LNG as a modern and efficient way of transporting it. Some research has been carried out into the local environmental impact of LNG facilities, but almost none into aspects related to climate change. This paper concludes that at current price levels for natural gas and CO2 emissions the distance from field to consumer and the volume of natural gas transported are the main determinants of transport costs. The pricing of natural gas and greenhouse emissions influence the relative cost-efficiency of LNG and pipeline transport, but only to a limited degree at current price levels. Because more energy is required for the LNG process (especially for fuelling the liquefaction process) than for pipelines at distances below 9100 km, LNG is more exposed to variability in the price of natural gas and greenhouse gas emissions up to this distance. If the prices of natural gas and/or greenhouse gas emission rise dramatically in the future, this will affect the choice between pipelines and LNG. Such a price increase will be favourable for pipelines relative to LNG. PMID:24683269

  6. Natural gas and CO2 price variation: impact on the relative cost-efficiency of LNG and pipelines.

    PubMed

    Ulvestad, Marte; Overland, Indra

    2012-06-01

    THIS ARTICLE DEVELOPS A FORMAL MODEL FOR COMPARING THE COST STRUCTURE OF THE TWO MAIN TRANSPORT OPTIONS FOR NATURAL GAS: liquefied natural gas (LNG) and pipelines. In particular, it evaluates how variations in the prices of natural gas and greenhouse gas emissions affect the relative cost-efficiency of these two options. Natural gas is often promoted as the most environmentally friendly of all fossil fuels, and LNG as a modern and efficient way of transporting it. Some research has been carried out into the local environmental impact of LNG facilities, but almost none into aspects related to climate change. This paper concludes that at current price levels for natural gas and CO2 emissions the distance from field to consumer and the volume of natural gas transported are the main determinants of transport costs. The pricing of natural gas and greenhouse emissions influence the relative cost-efficiency of LNG and pipeline transport, but only to a limited degree at current price levels. Because more energy is required for the LNG process (especially for fuelling the liquefaction process) than for pipelines at distances below 9100 km, LNG is more exposed to variability in the price of natural gas and greenhouse gas emissions up to this distance. If the prices of natural gas and/or greenhouse gas emission rise dramatically in the future, this will affect the choice between pipelines and LNG. Such a price increase will be favourable for pipelines relative to LNG.

  7. Marginal biotin deficiency can be induced experimentally in humans using a cost-effective outpatient design.

    PubMed

    Stratton, Shawna L; Henrich, Cindy L; Matthews, Nell I; Bogusiewicz, Anna; Dawson, Amanda M; Horvath, Thomas D; Owen, Suzanne N; Boysen, Gunnar; Moran, Jeffery H; Mock, Donald M

    2012-01-01

    To date, marginal, asymptomatic biotin deficiency has been successfully induced experimentally by the use of labor-intensive inpatient designs requiring rigorous dietary control. We sought to determine if marginal biotin deficiency could be induced in humans in a less expensive outpatient design incorporating a self-selected, mixed general diet. We sought to examine the efficacy of three outpatient study designs: two based on oral avidin dosing and one based on a diet high in undenatured egg white for a period of 28 d. In study design 1, participants (n = 4; 3 women) received avidin in capsules with a biotin binding capacity of 7 times the estimated dietary biotin intake of a typical self-selected diet. In study design 2, participants (n = 2; 2 women) received double the amount of avidin capsules (14 times the estimated dietary biotin intake). In study design 3, participants (n = 5; 3 women) consumed egg-white beverages containing avidin with a biotin binding capacity of 7 times the estimated dietary biotin intake. Established indices of biotin status [lymphocyte propionyl-CoA carboxylase activity; urinary excretion of 3-hydroxyisovaleric acid, 3-hydroxyisovaleryl carnitine (3HIA-carnitine), and biotin; and plasma concentration of 3HIA-carnitine] indicated that study designs 1 and 2 were not effective in inducing marginal biotin deficiency, but study design 3 was as effective as previous inpatient study designs that induced deficiency by egg-white beverage. Marginal biotin deficiency can be induced experimentally by using a cost-effective outpatient design by avidin delivery in egg-white beverages. This design should be useful to the broader nutritional research community.

  8. Cost accounting methodologies in price setting of acute inpatient services in Hungary.

    PubMed

    Gaal, Peter; Stefka, Nóra; Nagy, Júlia

    2006-08-01

    On the basis of documentary analysis and interviews with decision makers, this paper discusses the cost accounting methodologies used for price setting of inpatient services in the Hungarian health care system focusing on sector of acute inpatient care, which is financed through the Hungarian adaptation of Diagnosis Related Groups since 1993. Hungary has a quite sophisticated DRG system, which had a deep impact on the efficiency of the acute inpatient care sector. Nevertheless, the system requires continuous maintenance, where the cooperation of hospitals, as well as the minimisation of political influence are critical success factors.

  9. Joint pricing and production management: a geometric programming approach with consideration of cubic production cost function

    NASA Astrophysics Data System (ADS)

    Sadjadi, Seyed Jafar; Hamidi Hesarsorkh, Aghil; Mohammadi, Mehdi; Bonyadi Naeini, Ali

    2014-08-01

    Coordination and harmony between different departments of a company can be an important factor in achieving competitive advantage if the company corrects alignment between strategies of different departments. This paper presents an integrated decision model based on recent advances of geometric programming technique. The demand of a product considers as a power function of factors such as product's price, marketing expenditures, and consumer service expenditures. Furthermore, production cost considers as a cubic power function of outputs. The model will be solved by recent advances in convex optimization tools. Finally, the solution procedure is illustrated by numerical example.

  10. Commonsense System Pricing; Or, How Much Will that $1,200 Computer Really Cost?

    ERIC Educational Resources Information Center

    Crawford, Walt

    1984-01-01

    Three methods employed to price and sell computer equipment are discussed: computer pricing, hardware pricing, system pricing (system includes complete computer and support hardware system and relatively complete software package). Advantages of system pricing are detailed, the author's system is described, and 10 systems currently available are…

  11. Activism on rifapentine pricing: removing cost barriers to improve the uptake of tuberculosis research innovations

    PubMed Central

    Frick, M.; Lessem, E.; Kanouse, J.; Wegener, D.; Mingote, L. Ruiz

    2014-01-01

    As recent advances have been made in developing tools to fight tuberculosis (TB), there is also a trend towards increasing advocacy by the civil society for TB research and access. One recent successful effort to increase access to treatment options for TB involved a collaborative effort to identify the need for and barriers to the use of rifapentine (RPT) use in the United States. Survey responses confirmed the under-utilization of RPT: 82% of survey respondents selected cost as a significant or potential barrier to use. Survey results provided data to support a year-long advocacy campaign urging the drug company Sanofi to lower the price of RPT. This campaign was based on a common evidence base built in part by the stakeholders themselves. After multiple engagements with communities and providers, Sanofi US announced on 12 December 2013 that they would drop the price of RPT to US$32 per blister pack of 32 tablets for US public health programs. While further work remains to secure access to RPT in the United States and worldwide, the lowering of the price of RPT reflects the positive impact that collaborative advocacy can accomplish, and sets an example for other drug companies to follow. PMID:26400702

  12. The hidden cost of low prices: limited access to new drugs in India.

    PubMed

    Berndt, Ernst R; Cockburn, Iain M

    2014-09-01

    The pricing and accessibility of patent-protected drugs in low- and middle-income countries is a contentious issue in the global context. But questions about price have little meaning if a drug is not available for purchase, and the extent to which patent policy affects when (and if) new drugs become available in these countries has largely been overlooked. We examined data on the sales of 184 drugs approved by the US Food and Drug Administration between 2000 and 2009. We found that 50 percent of those 184 drugs went on sale in India only after lags of more than five years from their first worldwide introduction. More than half of the drugs that became newly available in India during the study period were produced and sold by multiple manufacturers in the country within one year of their introduction. The presence of multiple manufacturers indicates sharp competition and weak patent protection--factors that are disincentives to manufacturers to incur the costs of gaining access to the market. We conclude that modest patent and regulatory reform could bring the faster availability of a wider range of new drugs in India with limited impact on prices--a trade-off that merits greater policy attention.

  13. Activism on rifapentine pricing: removing cost barriers to improve the uptake of tuberculosis research innovations.

    PubMed

    DeLuca, A; Frick, M; Lessem, E; Kanouse, J; Wegener, D; Mingote, L Ruiz

    2014-12-21

    As recent advances have been made in developing tools to fight tuberculosis (TB), there is also a trend towards increasing advocacy by the civil society for TB research and access. One recent successful effort to increase access to treatment options for TB involved a collaborative effort to identify the need for and barriers to the use of rifapentine (RPT) use in the United States. Survey responses confirmed the under-utilization of RPT: 82% of survey respondents selected cost as a significant or potential barrier to use. Survey results provided data to support a year-long advocacy campaign urging the drug company Sanofi to lower the price of RPT. This campaign was based on a common evidence base built in part by the stakeholders themselves. After multiple engagements with communities and providers, Sanofi US announced on 12 December 2013 that they would drop the price of RPT to US$32 per blister pack of 32 tablets for US public health programs. While further work remains to secure access to RPT in the United States and worldwide, the lowering of the price of RPT reflects the positive impact that collaborative advocacy can accomplish, and sets an example for other drug companies to follow.

  14. Some Simple Arguments about Cost Externalization and its Relevance to the Price of Fusion Energy

    SciTech Connect

    Budny, R.; Winfree, R.

    1999-09-27

    The primary goal of fusion energy research is to develop a source of energy that is less harmful to the environment than are the present sources. A concern often expressed by critics of fusion research is that fusion energy will never be economically competitive with fossil fuels, which in 1997 provided 75% of the world's energy. And in fact, studies of projected fusion electricity generation generally project fusion costs to be higher than those of conventional methods. Yet it is widely agreed that the environmental costs of fossil fuel use are high. Because these costs aren't included in the market price, and furthermore because many governments subsidize fossil fuel production, fossil fuels seem less expensive than they really are. Here we review some simple arguments about cost externalization which provide a useful background for discussion of energy prices. The collectively self-destructive behavior that is the root of many environmental problems, including fossil fuel use, was termed ''the tragedy of the commons'' by the biologist G. Hardin. Hardin's metaphor is that of a grazing commons that is open to all. Each herdsman, in deciding whether to add a cow to his herd, compares the benefit of doing so, which accrues to him alone, to the cost, which is shared by all the herdsmen using the commons, and therefore adds his cow. In this way individually rational behavior leads to the collective destruction of the shared resource. As Hardin pointed out, pollution is one kind of tragedy of the commons. CO{sub 2} emissions and global warming are in this sense classic tragedies.

  15. 48 CFR 15.403-4 - Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... contracting officer to determine that the price is fair and reasonable. (2) A Certificate of Current Cost or..., the cost or pricing data were accurate, complete, and current as of the date of agreement on price or... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Requiring certified...

  16. The Role of Inflation and Price Escalation Adjustments in Properly Estimating Program Costs: F-35 Case Study

    DTIC Science & Technology

    2016-03-01

    First, the analyst must use a price index when normalizing historical cost data to a common point in time (where the normalized costs are referred to...escalation in the historical period. We demonstrate the effect of different escalation methodologies using top-level CER models. Cost analysts usually...both normalizing historical data and making projections, are also valid in more typical cost estimating applications. For example, escalation rates for

  17. The Role of Inflation and Price Escalation Adjustments in Properly Estimating Program Costs: F-35 Case Study

    DTIC Science & Technology

    2016-04-30

    policies and the cost , measurement , and enhancement of readiness. Recently he has also been studying the use of inflation indexes in the DoD. He has...use a price index when normalizing historical cost data to a common point in time (where the normalized costs are referred to as “base year” [BY...expressed in TY (nominal) dollars. In CER development, adjustments needed to normalize historical cost data to BY dollars used as the dependent variable

  18. 48 CFR 1616.7001 - Clause-contracts based on a combination of cost and price analysis (community rated).

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... 48 Federal Acquisition Regulations System 6 2012-10-01 2012-10-01 false Clause-contracts based on... Clause—contracts based on a combination of cost and price analysis (community rated). The clause at section 1652.216-70 shall be inserted in all FEHBP contracts based on a combination of cost and...

  19. 48 CFR 1616.7001 - Clause-contracts based on a combination of cost and price analysis (community rated).

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... 48 Federal Acquisition Regulations System 6 2014-10-01 2014-10-01 false Clause-contracts based on... Clause—contracts based on a combination of cost and price analysis (community rated). The clause at section 1652.216-70 shall be inserted in all FEHBP contracts based on a combination of cost and...

  20. 48 CFR 15.403-4 - Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b). 15.403-4 Section 15.403-4 Federal Acquisition... NEGOTIATION Contract Pricing 15.403-4 Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b). (a)(1) The contracting officer shall obtain certified cost or pricing data only if...

  1. 48 CFR 15.403-4 - Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b). 15.403-4 Section 15.403-4 Federal Acquisition... NEGOTIATION Contract Pricing 15.403-4 Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b). (a)(1) The contracting officer shall obtain certified cost or pricing data only if...

  2. 48 CFR 1615.407-1 - Rate reduction for defective pricing or defective cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Regulations System OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.407-1 Rate reduction... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Rate reduction...

  3. A dynamic water accounting framework based on marginal resource opportunity cost

    NASA Astrophysics Data System (ADS)

    Tilmant, A.; Marques, G.; Mohamed, Y.

    2014-10-01

    Many river basins throughout the world are increasingly under pressure as water demands keep rising due to population growth, industrialization, urbanization and rising living standards. In the past, the typical answer to meet those demands focused on the supply-side and involved the construction of hydraulic infrastructures to capture more water from surface water bodies and from aquifers. As river basins were being more and more developed, downstream water users and ecosystems have become increasingly dependent on the management actions taken by upstream users. The increased interconnectedness between water users, aquatic ecosystems and the built environment is further compounded by climate change and its impact on the water cycle. Those pressures mean that it has become increasingly important to measure and account for changes in water fluxes and their corresponding economic value as they progress throughout the river system. Such basin water accounting should provide policy makers with important information regarding the relative contribution of each water user, infrastructure and management decision to the overall economic value of the river basin. This paper presents a dynamic water accounting approach whereby the entire river basin is considered as a value chain with multiple services including production and storage. Water users and reservoirs operators are considered as economic agents who can exchange water with their hydraulic neighbours at a price corresponding to the marginal value of water. Effective water accounting is made possible by keeping track of all water fluxes and their corresponding hypothetical transactions using the results of a hydro-economic model. The proposed approach is illustrated with the Eastern Nile River basin in Africa.

  4. A dynamic water accounting framework based on marginal resource opportunity cost

    NASA Astrophysics Data System (ADS)

    Tilmant, A.; Marques, G.; Mohamed, Y.

    2015-03-01

    Many river basins throughout the world are increasingly under pressure as water demands keep rising due to population growth, industrialization, urbanization and rising living standards. In the past, the typical answer to meet those demands focused on the supply side and involved the construction of hydraulic infrastructures to capture more water from surface water bodies and from aquifers. As river basins have become more and more developed, downstream water users and ecosystems have become increasingly dependent on the management actions taken by upstream users. The increased interconnectedness between water users, aquatic ecosystems and the built environment is further compounded by climate change and its impact on the water cycle. Those pressures mean that it has become increasingly important to measure and account for changes in water fluxes and their corresponding economic value as they progress throughout the river system. Such basin water accounting should provide policy makers with important information regarding the relative contribution of each water user, infrastructure and management decision to the overall economic value of the river basin. This paper presents a dynamic water accounting approach whereby the entire river basin is considered as a value chain with multiple services including production and storage. Water users and reservoir operators are considered as economic agents who can exchange water with their hydraulic neighbors at a price corresponding to the marginal value of water. Effective water accounting is made possible by keeping track of all water fluxes and their corresponding hypothetical transactions using the results of a hydro-economic model. The proposed approach is illustrated with the Eastern Nile River basin in Africa.

  5. An economic approach that links volumetric estimates of resources with cost and price information

    SciTech Connect

    Nesbitt, D.M. )

    1993-01-01

    For many years, organizations such as the US Geological Survey have assembled volumetric estimates of gas and oil in place. It is legitimate for people in industry to ask: [open quotes]What do such estimates mean to me What do they mean to my business What do they mean for commodity prices [close quotes] In a world of ideal, efficient markets, such estimates would have little relevance; the best use of one's time would be to merely survey the various markets. In reality, markets are not completely efficient, and methods other than market observations are required. Volumetric estimates can contribute to better decisionmaking if they can be associated with cost and price information and if their implications in the market can thereby be determined. Until the generalized equilibrium approach, volumetric information has never been linked with the market. It has never entered the decision process of private companies the United States, Canada, or the rest of the world. With the approach outlined, the US Geological Survey volumetric estimates can be used to support such decisionmaking and lead to better industry profits, more enlightened regulation and Government administration, and more efficient use of resources. 66 refs., 28 figs.

  6. Residential, Commercial, and Utility-Scale Photovoltaic (PV) System Prices in the United States: Current Drivers and Cost-Reduction Opportunities

    SciTech Connect

    Goodrich, A.; James, T.; Woodhouse, M.

    2012-02-01

    The price of photovoltaic (PV) systems in the United States (i.e., the cost to the system owner) has dropped precipitously in recent years, led by substantial reductions in global PV module prices. However, system cost reductions are not necessarily realized or realized in a timely manner by many customers. Many reasons exist for the apparent disconnects between installation costs, component prices, and system prices; most notable is the impact of fair market value considerations on system prices. To guide policy and research and development strategy decisions, it is necessary to develop a granular perspective on the factors that underlie PV system prices and to eliminate subjective pricing parameters. This report's analysis of the overnight capital costs (cash purchase) paid for PV systems attempts to establish an objective methodology that most closely approximates the book value of PV system assets.

  7. The UNESCO Bioethics Declaration 'social responsibility' principle and cost-effectiveness price evaluations for essential medicines.

    PubMed

    Faunce, Thomas Alured

    2005-07-01

    The United Nations Scientific, Education and Cultural Organisation (UNESCO) has commenced drafting a Universal Bioethics Declaration. Some in the relevant UNESCO drafting committee have previously desired to restrict its content to general principles concerning the application (but not necessarily the goals) of science and technology. As potentially a crucial agenda-setting statement of global bioethics, however, it is arguable important the Universal Bioethics Declaration transparently address major bioethical dilemmas in the field of public health, such as universal access to affordable, essential medicines. Article 13 (Social Responsibility) of the Preliminary Draft Universal Bioethics Declaration states: 'Any decision or practice shall ensure that progress in science and technology contributes, wherever possible, to the common good, including the achievement of goals such as: (i) access to quality health care and essential medicines, including for reproductive health and health of children.' Cost effectiveness pricing systems, such as that most notably used in Australia's Pharmaceutical Benefits Scheme (PBS), arguably represent one of the most scientifically effective mechanisms whereby public monies may be utilised to assist in the provision of medicines for the common good. They contain two essential elements: first, a process of scientific evaluation of objectively demonstrated therapeutic significance, and then, a fiscal lever (the government reimbursement price) attached to that evaluation. It is now well established that the US Pharmaceutical Research and Manufacturers Association (Pharma), through the assistance of the US Trade Representative (USTR), saw the Australia United States Free Trade Agreement (AUSFTA) as an opportunity to fulfill a legislative mandate to 'eliminate' the cost-effectiveness pricing system in Australia's PBS. One of the most remarkable features of the arguments raised against the PBS in this context was the fact that they made

  8. [Business administration of PET facilities: a nationwide survey for prices of PET screening and a cost analysis of three facilities].

    PubMed

    Mitsutake, Naohiro; Fujii, Ryo; Oku, Shinya; Furui, Yuji; Yasunaga, Hideo

    2007-05-01

    The purpose of this study is to analyze the business administration of PET facilities based on the survey of the price of PET cancer screening and cost analysis of PET examination. The questionnaire survey of the price of PET cancer screening was implemented for all PET facilities in Japan. Cost data of PET examination, including fixed costs and variable costs, were obtained from three different medical institutions. The marked price of the PET cancer screening was 111,499 yen in average, and the most popular range of prices was between 80,000 yen and 90,000 yen. Costs of PET per examination were accounted for 110,675 yen, 79,158 yen and Y11,644 yen in facility A, B and C, respectively. The results suggested that facilities with two or more PET/CT per a cyclotron could only secure profits. In Japan, the boom in PET facility construction could not continue in accordance with increasing number of PET facilities. It would become more essential to analyze the appropriate distribution of PET facilities and the adequate amount of PET procedures from the perspective of efficient utilization of the PET equipments and supply of PET-related healthcare.

  9. Dual pricing algorithm in ISO markets

    SciTech Connect

    O'Neill, Richard P.; Castillo, Anya; Eldridge, Brent; Hytowitz, Robin Broder

    2016-10-10

    The challenge to create efficient market clearing prices in centralized day-ahead electricity markets arises from inherent non-convexities in unit commitment problems. When this aspect is ignored, marginal prices may result in economic losses to market participants who are part of the welfare maximizing solution. In this essay, we present an axiomatic approach to efficient prices and cost allocation for a revenue neutral and non-confiscatory day-ahead market. Current cost allocation practices do not adequately attribute costs based on transparent cost causation criteria. Instead we propose an ex post multi-part pricing scheme, which we refer to as the Dual Pricing Algorithm. Lastly, our approach can be incorporated into current dayahead markets without altering the market equilibrium.

  10. Dual pricing algorithm in ISO markets

    DOE PAGES

    O'Neill, Richard P.; Castillo, Anya; Eldridge, Brent; ...

    2016-10-10

    The challenge to create efficient market clearing prices in centralized day-ahead electricity markets arises from inherent non-convexities in unit commitment problems. When this aspect is ignored, marginal prices may result in economic losses to market participants who are part of the welfare maximizing solution. In this essay, we present an axiomatic approach to efficient prices and cost allocation for a revenue neutral and non-confiscatory day-ahead market. Current cost allocation practices do not adequately attribute costs based on transparent cost causation criteria. Instead we propose an ex post multi-part pricing scheme, which we refer to as the Dual Pricing Algorithm. Lastly,more » our approach can be incorporated into current dayahead markets without altering the market equilibrium.« less

  11. An Economic Analysis of Textbook Pricing and Textbook Markets. ACSFA College Textbook Cost Study Plan Proposal

    ERIC Educational Resources Information Center

    Koch, James V.

    2006-01-01

    Between 1986 and 2004, textbook prices rose 186 percent in the United States, or slightly more than six percent per year. Meanwhile, other prices rose only about three percent per year. This paper examines the economic reasons why textbook prices have escalated so briskly and what reasonable alternatives are available that might slow down these…

  12. Time-changed geometric fractional Brownian motion and option pricing with transaction costs

    NASA Astrophysics Data System (ADS)

    Gu, Hui; Liang, Jin-Rong; Zhang, Yun-Xiu

    2012-08-01

    This paper deals with the problem of discrete time option pricing by a fractional subdiffusive Black-Scholes model. The price of the underlying stock follows a time-changed geometric fractional Brownian motion. By a mean self-financing delta-hedging argument, the pricing formula for the European call option in discrete time setting is obtained.

  13. A Methodology for Evaluating Technical Performance Parameter Design Margins to Control Earth and Space Science Instrument Cost

    NASA Astrophysics Data System (ADS)

    Jones-Selden, Felicia L.

    Costs of aerospace missions have increased over the last twenty years, placing the future of the space program in jeopardy. A potential source for such growth can be attributed to the complex multidisciplinary and challenging nature of earth and space science instrument development. Design margins are additional resources carried in technical performance parameters to mitigate uncertainties throughout the product lifecycle. Margins are traditionally derived and allocated based upon historical experience intrinsic to organizations, as opposed to quantitative methods, jeopardizing the development of low-cost space-based instruments. This dissertation utilizes a methodology to evaluate the interrelationships between pre-launch and actual launch margins for the key technical performance parameters of mass, power, and data-rate to identify the extent to which excessive or insufficient margins are used in the design of space-based instruments in an effort to control instrument cost growth. The research examined 62 space-based instruments from the National Aeronautics and Space Administration, Federally Funded Research and Development Centers, and universities. Statistical analysis consisting of paired t-tests and multiple linear regression were utilized to determine the degree to which space-based instruments are over or under designed by the use of excessive or insufficient design margins and to determine the effect of design margins for the technical performance parameters of mass, power, and data-rate on the percentage instrument cost growth from the preliminary design phase to launch. Findings confirm, that in the implementation of space-based instruments, design margins are allocated to technical performance parameters above suggested government/industry standards, impacting the development of low-cost space-based instruments. The findings provide senior leadership, systems engineers, project managers, and resource managers with the ability to determine where

  14. 48 CFR 52.215-21 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing...

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... price is controlled under law by periodic rulings, reviews, or similar actions of a governmental body... in accordance with the instructions contained in Table 15-2 of FAR 15.408, which is incorporated by... Table 15-2 are incorporated as a mandatory format to be used in this contract, unless the...

  15. 48 CFR 52.215-21 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing...

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... price is controlled under law by periodic rulings, reviews, or similar actions of a governmental body... in accordance with the instructions contained in Table 15-2 of FAR 15.408, which is incorporated by... Table 15-2 are incorporated as a mandatory format to be used in this contract, unless the...

  16. 48 CFR 52.215-21 - Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing...

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... price is controlled under law by periodic rulings, reviews, or similar actions of a governmental body... in accordance with the instructions contained in Table 15-2 of FAR 15.408, which is incorporated by... Table 15-2 are incorporated as a mandatory format to be used in this contract, unless the...

  17. Comparison of Nutrient Content and Cost of Home-Packed Lunches to Reimbursable School Lunch Nutrient Standards and Prices

    ERIC Educational Resources Information Center

    Johnson, Cara M.; Bednar, Carolyn; Kwon, Junehee; Gustof, Alissa

    2009-01-01

    Purpose: The purpose of this study was to compare nutrient content and cost of home-packed lunches to nutrient standards and prices for reimbursable school lunches. Methods: Researchers observed food and beverage contents of 333 home packed lunches at four north Texas elementary schools. Nutritionist Pro was used to analyze lunches for calories,…

  18. Drug price regulation under consumer moral hazard. Two-part tariffs, uniform price or third-degree price discrimination?

    PubMed

    Felder, Stefan

    2004-12-01

    Drug price differences across national markets as they exist in the EU are often justified by the concept of Ramsey prices: with fixed costs for R&D, the optimal mark-ups on marginal costs are inversely related to the price elasticity in the individual markets. This well-known result prevails if consumer moral hazard is taken into account. Contrary to the situation without moral hazard, the uniform price does not necessarily dominate discriminatory pricing in welfare terms. The two-part tariff is a better alternative as it allows governments to address moral hazard. A uniform price combined with lump-payments reflecting differences in the willingness to pay and the moral hazard in member states appears to be an attractive option for a common EU drug market.

  19. Contribution of food prices and diet cost to socioeconomic disparities in diet quality and health: a systematic review and analysis

    PubMed Central

    Drewnowski, Adam

    2015-01-01

    Context: It is well established in the literature that healthier diets cost more than unhealthy diets. Objective: The aim of this review was to examine the contribution of food prices and diet cost to socioeconomic inequalities in diet quality. Data Sources: A systematic literature search of the PubMed, Google Scholar, and Web of Science databases was performed. Study Selection: Publications linking food prices, dietary quality, and socioeconomic status were selected. Data Extraction: Where possible, review conclusions were illustrated using a French national database of commonly consumed foods and their mean retail prices. Data Synthesis: Foods of lower nutritional value and lower-quality diets generally cost less per calorie and tended to be selected by groups of lower socioeconomic status. A number of nutrient-dense foods were available at low cost but were not always palatable or culturally acceptable to the low-income consumer. Acceptable healthier diets were uniformly associated with higher costs. Food budgets in poverty were insufficient to ensure optimum diets. Conclusions: Socioeconomic disparities in diet quality may be explained by the higher cost of healthy diets. Identifying food patterns that are nutrient rich, affordable, and appealing should be a priority to fight social inequalities in nutrition and health. PMID:26307238

  20. Product Characteristics, Market Conditions and Contract Type: U.S. Department of Defense Use of Fixed-Price and Cost Reimbursement Contracts

    DTIC Science & Technology

    2015-07-27

    SERIES Product Characteristics, Market Conditions and Contract Type: U.S. Department of Defense Use of Fixed-Price and Cost Reimbursement Contracts... market conditions on the use of fixed-price and cost reimbursement contracts by the Department of Defense. When the product is easy to specify...easy to produce, and there is a thick market of buyers and sellers, fixed-price contracts are more likely. When the product is difficult to produce

  1. 48 CFR 1652.215-70 - Rate Reduction for Defective Pricing or Defective Cost or Pricing Data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... Regulations System OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION... inserted in FEHBP contracts exceeding the threshold at FAR 15.403-4(a)(1) that are based on a combination... Contracting Officer. (iii) The contract was based on an agreement about the total cost of the contract...

  2. 48 CFR 1652.215-70 - Rate Reduction for Defective Pricing or Defective Cost or Pricing Data.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... Regulations System OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION... inserted in FEHBP contracts exceeding the threshold at FAR 15.403-4(a)(1) that are based on a combination... Contracting Officer. (iii) The contract was based on an agreement about the total cost of the contract...

  3. Two essays on real-time pricing of electric power

    NASA Astrophysics Data System (ADS)

    Gupta, Nainish Kumar

    1997-09-01

    This dissertation contains two essays on a new innovative pricing mechanism in the electric power industry known as Real Time Pricing (RTP). RTP is a method of pricing electric power wherein at least one component of the price is set at or near levels that reflect the marginal costs of providing power during each time-specific interval. These prices vary in accord with time-specific, incremental supplier costs. RTP allows customers to manage their own bills by adjusting their consumption as spot prices and supplier costs vary, which may amount during a single day from 2 cents to 85 cents for one kilowatt hour (kWh) of usage. Using 1995 data the hypothesis that industrial customers shift their usage patterns of electricity in response to real time prices is tested. To measure customer responsiveness to real time electric rates, econometric techniques are applied to estimate demand elasticities.

  4. Price pressure. As the number of costly specialty drugs grows, insurers and providers push for more reasonable alternatives.

    PubMed

    Evans, Melanie

    2013-01-28

    Faced with a rising tide of specialty drugs with eyebrow-raising prices, hospitals and insurers are pushing back. That means looking for less-costly alternatives, though options are limited. "Our goal is, as more patients come along, we get them on Elelyso and not on more expensive Cerezyme," says Eric Cannon, chief of pharmacy for insurer SelectHealth. Elelyso entered the market in 2012 and costs about $150,000 per year for a patient, versus the more costly rival drug Cerezyme.

  5. U.S. Photovoltaic Prices and Cost Breakdowns. Q1 2015 Benchmarks for Residential, Commercial, and Utility-Scale Systems

    SciTech Connect

    Chung, Donald; Davidson, Carolyn; Fu, Ran; Ardani, Kristen; Margolis, Robert

    2015-09-01

    The price of photovoltaic (PV) systems in the United States (i.e., the cost to the system owner) has continued to decline across all major market sectors. This report provides a Q1 2015 update regarding the prices of residential, commercial, and utility scale PV systems, based on an objective methodology that closely approximates the book value of a PV system. Several cases are benchmarked to represent common variations in business models, labor rates, and system architecture choice. We estimate a weighted-average cash purchase price of $3.09/W for residential scale rooftop systems, $2.15/W for commercial scale rooftop systems, $1.77/W for utility scale systems with fixed mounting structures, and $1.91/W for utility scale systems using single-axis trackers. All systems are modeled assuming standard-efficiency, polycrystalline-silicon PV modules, and further assume installation within the United States.

  6. 48 CFR 15.403-3 - Requiring data other than certified cost or pricing data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ....403-1(b)(1) or (2) applies; and (v) Consider the guidance in section 3.3, chapter 3, volume I, of the... to submit. (2) The contractor's format for submitting the data should be used (see 15.403-5(b)(2... award is not made. (b) Adequate price competition. When adequate price competition exists (see...

  7. 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

  8. Natural gas price uncertainty and the cost-effectiveness of hedging against low hydropower revenues caused by drought

    NASA Astrophysics Data System (ADS)

    Kern, Jordan D.; Characklis, Gregory W.; Foster, Benjamin T.

    2015-04-01

    Prolonged periods of low reservoir inflows (droughts) significantly reduce a hydropower producer's ability to generate both electricity and revenues. Given the capital intensive nature of the electric power industry, this can impact hydropower producers' ability to pay down outstanding debt, leading to credit rating downgrades, higher interests rates on new debt, and ultimately, greater infrastructure costs. One potential tool for reducing the financial exposure of hydropower producers to drought is hydrologic index insurance, in particular, contracts structured to payout when streamflows drop below a specified level. An ongoing challenge in developing this type of insurance, however, is minimizing contracts' "basis risk," that is, the degree to which contract payouts deviate in timing and/or amount from actual damages experienced by policyholders. In this paper, we show that consideration of year-to-year changes in the value of hydropower (i.e., the cost of replacing it with an alternative energy source during droughts) is critical to reducing contract basis risk. In particular, we find that volatility in the price of natural gas, a key driver of peak electricity prices, can significantly degrade the performance of index insurance unless contracts are designed to explicitly consider natural gas prices when determining payouts. Results show that a combined index whose value is derived from both seasonal streamflows and the spot price of natural gas yields contracts that exhibit both lower basis risk and greater effectiveness in terms of reducing financial exposure.

  9. Price adjustment in the hospital sector: how should the NHS discriminate between providers. A comment on Miraldo, Siciliani and Street.

    PubMed

    Mougeot, Michel; Naegelen, Florence

    2012-01-01

    Miraldo et al. (2011) have analyzed the price adjustment policy of a payer implementing a Prospective Payment System in the hospital sector in the presence of exogenous cost differences when no lump-sum transfers are allowed. They focus on deriving conditions for the price adjustment being positive. In this paper, using a result of Miraldo et al., we emphasize whether the price adjustment is larger or smaller than the marginal cost. We show how the discrimination operates against either the low-cost or the high-cost hospitals according to the value of the elasticity of the additional marginal cost with respect to the quantity of services.

  10. 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

  11. Estimating the cost of improving service quality in water supply: A shadow price approach for England and wales.

    PubMed

    Molinos-Senante, María; Maziotis, Alexandros; Sala-Garrido, Ramón

    2016-01-01

    Service quality to customers is an aspect that cannot be ignored in the performance assessment of water companies. Nowadays water regulators introduce awards or penalties to incentivize companies to improve service quality to customers when setting prices. In this study, the directional distance function is employed to estimate the shadow prices of variables indicating the lack of service quality to customers in the water industry i.e., written complaints, unplanned interruptions and properties below the reference level. To calculate the shadow price of each undesirable output for each water company, it is needed to ascribe a reference price for the desirable output which is the volume of water delivered. An empirical application is carried out for water companies in England and Wales. Hence, the shadow price of each undesirable output is expressed both as a percentage of the price of the desirable output and in pence per cubic meter of water delivered The estimated results indicate that on average, each additional written complaint that needs to be dealt with by the water company includes a service quality cost of 0.399p/m(3). As expected, when looking at the other service quality variables which involve network repair or replacement, these values are considerably higher. On average, the water company must spend an extra 0.622p/m(3) to prevent one unplanned interruption and 0.702p/m(3) to avoid one water pressure below the reference level. The findings of this study are of great importance for regulated companies and regulators as it has been illustrated that improvements in the service quality in terms of customer service could be challenging and therefore ongoing investments will be required to address these issues.

  12. The marginal effects of the price for carbon dioxide: quantifying the effects on the market for electric generation in Florida

    SciTech Connect

    Kury, Theodore J.; Harrington, Julie

    2010-05-15

    Greater emphasis on public policy aimed at internalizing the societal cost of carbon dioxide emissions leads to more questions about the economic impacts of that policy. In cooperation with the State of Florida's Department of Environmental Protection, the authors have constructed a model to simulate the dispatch of electric generating units to serve electric load in the state - and obtained some counterintuitive results. (author)

  13. Estimating marginal and incremental effects in the analysis of medical expenditure panel data using marginalized two-part random-effects generalized Gamma models: Evidence from China healthcare cost data.

    PubMed

    Zhang, Bo; Liu, Wei; Hu, Yingyao

    2017-01-01

    Conditional two-part random-effects models have been proposed for the analysis of healthcare cost panel data that contain both zero costs from the non-users of healthcare facilities and positive costs from the users. These models have been extended to accommodate more flexible data structures when using the generalized Gamma distribution to model the positive healthcare expenditures. However, a major drawback with the extended model, which is inherited from the conditional models, is that it is fairly difficult to make direct marginal inference with respect to overall healthcare costs that includes both zeros and non-zeros, or even on positive healthcare costs. In this article, we first propose two types of marginalized two-part random-effects generalized Gamma models (m2RGGMs): Type I m2RGGMs for the inference on positive healthcare costs and Type II m2RGGMs for the inference on overall healthcare costs. Then, the concepts of marginal effect and incremental effect of a covariate on overall and positive healthcare costs are introduced, and estimation of these effects is carefully discussed. Especially, we derive the variance estimates of these effects by following the delta methods and Taylor series approximations for the purpose of making marginal inference. Parameter estimates of Type I and Type II m2RGGMs are obtained through maximum likelihood estimation. An empirical analysis of longitudinal healthcare costs collected in the China Health and Nutrition Survey is conducted using the proposed methodologies.

  14. Indirect reciprocity provides only a narrow margin of efficiency for costly punishment.

    PubMed

    Ohtsuki, Hisashi; Iwasa, Yoh; Nowak, Martin A

    2009-01-01

    Indirect reciprocity is a key mechanism for the evolution of human cooperation. Our behaviour towards other people depends not only on what they have done to us but also on what they have done to others. Indirect reciprocity works through reputation. The standard model of indirect reciprocity offers a binary choice: people can either cooperate or defect. Cooperation implies a cost for the donor and a benefit for the recipient. Defection has no cost and yields no benefit. Currently there is considerable interest in studying the effect of costly (or altruistic) punishment on human behaviour. Punishment implies a cost for the punished person. Costly punishment means that the punisher also pays a cost. It has been suggested that costly punishment between individuals can promote cooperation. Here we study the role of costly punishment in an explicit model of indirect reciprocity. We analyse all social norms, which depend on the action of the donor and the reputation of the recipient. We allow errors in assigning reputation and study gossip as a mechanism for establishing coherence. We characterize all strategies that allow the evolutionary stability of cooperation. Some of those strategies use costly punishment; others do not. We find that punishment strategies typically reduce the average payoff of the population. Consequently, there is only a small parameter region where costly punishment leads to an efficient equilibrium. In most cases the population does better by not using costly punishment. The efficient strategy for indirect reciprocity is to withhold help for defectors rather than punishing them.

  15. 48 CFR 15.403-3 - Requiring data other than certified cost or pricing data.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... a cost realism analysis; (iii) Consider whether cost data are necessary to determine a fair and... should request data to determine the cost realism of competing offers or to evaluate competing...

  16. 48 CFR 15.403-3 - Requiring data other than certified cost or pricing data.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... a cost realism analysis; (iii) Consider whether cost data are necessary to determine a fair and... should request data to determine the cost realism of competing offers or to evaluate competing...

  17. 48 CFR 15.403-3 - Requiring data other than certified cost or pricing data.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... a cost realism analysis; (iii) Consider whether cost data are necessary to determine a fair and... should request data to determine the cost realism of competing offers or to evaluate competing...

  18. 48 CFR 15.403-3 - Requiring data other than certified cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... a cost realism analysis; (iii) Consider whether cost data are necessary to determine a fair and... should request data to determine the cost realism of competing offers or to evaluate competing...

  19. Marginal cost curves for water footprint reduction in irrigated agriculture: a policy and decision making guide for efficient water use in crop production

    NASA Astrophysics Data System (ADS)

    Chukalla, Abebe; Krol, Maarten; Hoekstra, Arjen

    2016-04-01

    Reducing water footprints (WF) in irrigated crop production is an essential element in water management, particularly in water-scarce areas. To achieve this, policy and decision making need to be supported with information on marginal cost curves that rank measures to reduce the WF according to their cost-effectiveness and enable the estimation of the cost associated with a certain WF reduction target, e.g. towards a certain reasonable WF benchmark. This paper aims to develop marginal cost curves (MCC) for WF reduction. The AquaCrop model is used to explore the effect of different measures on evapotranspiration and crop yield and thus WF that is used as input in the MCC. Measures relate to three dimensions of management practices: irrigation techniques (furrow, sprinkler, drip and subsurface drip); irrigation strategies (full and deficit irrigation); and mulching practices (no mulching, organic and synthetic mulching). A WF benchmark per crop is calculated as resulting from the best-available production technology. The marginal cost curve is plotted using the ratios of the marginal cost to WF reduction of the measures as ordinate, ranking with marginal costs rise with the increase of the reduction effort. For each measure, the marginal cost to reduce WF is estimated by comparing the associated WF and net present value (NPV) to the reference case (furrow irrigation, full irrigation, no mulching). The NPV for each measure is based on its capital costs, operation and maintenances costs (O&M) and revenues. A range of cases is considered, including: different crops, soil types and different environments. Key words: marginal cost curve, water footprint benchmark, soil water balance, crop growth, AquaCrop

  20. 48 CFR 1815.403-170 - Waivers of cost or pricing data.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... applies to the CCC and its subcontractors. The CCC will provide assurance of the fairness and reasonableness of the proposed price. This assurance should be relied on; however, contracting officers shall... analysis. The CCC also will provide for follow-up audit activity to ensure that any excess profits...

  1. Solar PV Manufacturing Cost Model Group: Installed Solar PV System Prices (Presentation)

    SciTech Connect

    Goodrich, A. C.; Woodhouse, M.; James, T.

    2011-02-01

    EERE's Solar Energy Technologies Program is charged with leading the Secretary's SunShot Initiative to reduce the cost of electricity from solar by 75% to be cost competitive with conventional energy sources without subsidy by the end of the decade. As part of this Initiative, the program has funded the National Renewable Energy Laboratory (NREL) to develop module manufacturing and solar PV system installation cost models to ensure that the program's cost reduction targets are carefully aligned with current and near term industry costs. The NREL cost analysis team has leveraged the laboratories' extensive experience in the areas of project finance and deployment, as well as industry partnerships, to develop cost models that mirror the project cost analysis tools used by project managers at leading U.S. installers. The cost models are constructed through a "bottoms-up" assessment of each major cost element, beginning with the system's bill of materials, labor requirements (type and hours) by component, site-specific charges, and soft costs. In addition to the relevant engineering, procurement, and construction costs, the models also consider all relevant costs to an installer, including labor burdens and overhead rates, supply chain costs, and overhead and materials inventory costs, and assume market-specific profits.

  2. Star Wars: A Case Study of Marginal Cost Analysis and Weapon System Technology,

    DTIC Science & Technology

    1994-01-01

    34*20 KKVs per satellite Communications satellites at 5 x geo * 6 km/sec * 60g average acceleration Surveillance, tracking , and target designation...level (e.g., mirror, cross- track motors, cryogenic cooling components). Component-level cost estimates are best for this analysis because...Launch Cost Estimates (1985 dollars) design compared with the design of a surveillance, acquisition, tracking , and kill assessment (SATKA) satellite

  3. Substitution and price elasticity estimates using inter-countrypooled data in a translog cost model

    SciTech Connect

    Roy, Joyashree; Sanstad, Alan H.; Sathaye, Jayant A.; Khaddaria,Raman

    2006-06-01

    Pooled data across several developing countries and the U.S. were used to estimate long-run substitution and price elasticities ina translog framework for the paper, iron and steel, and aggregatemanufacturing industries. While the quality of the estimates variesacross the several industry-specific models, the results suggest highervalues for these elasticities than appear commonly used in integratedassessment models. Estimates of own-price elasticities of energy rangefrom - 0.80 to - 1.76 and are comparable to estimates from previouseconometric studies in the context of developed countries (- 0.77 to -0.87). Substitution elasticities show wider variation across countriesand industries. For energy and capital they range from -1.96 to 9.80, forlabor and energy from 2.61 to 7.11, and for energy and material from -0.26 to 2.07.

  4. Automatic control of electric thermal storage (heat) under real-time pricing. Final report

    SciTech Connect

    Daryanian, B.; Tabors, R.D.; Bohn, R.E.

    1995-01-01

    Real-time pricing (RTP) can be used by electric utilities as a control signal for responsive demand-side management (DSM) programs. Electric thermal storage (ETS) systems in buildings provide the inherent flexibility needed to take advantage of variations in prices. Under RTP, optimal performance for ETS operations is achieved under market conditions where reductions in customers` costs coincide with the lowering of the cost of service for electric utilities. The RTP signal conveys the time-varying actual marginal cost of the electric service to customers. The RTP rate is a combination of various cost components, including marginal generation fuel and maintenance costs, marginal costs of transmission and distribution losses, and marginal quality of supply and transmission costs. This report describes the results of an experiment in automatic control of heat storage systems under RTP during the winter seasons of 1989--90 and 1990--91.

  5. Price Estimation Guidelines

    NASA Technical Reports Server (NTRS)

    Chamberlain, R. G.; Aster, R. W.; Firnett, P. J.; Miller, M. A.

    1985-01-01

    Improved Price Estimation Guidelines, IPEG4, program provides comparatively simple, yet relatively accurate estimate of price of manufactured product. IPEG4 processes user supplied input data to determine estimate of price per unit of production. Input data include equipment cost, space required, labor cost, materials and supplies cost, utility expenses, and production volume on industry wide or process wide basis.

  6. Cost-utility analysis of 10- and 13-valent pneumococcal conjugate vaccines: Protection at what price in the Thai context?

    PubMed Central

    Kulpeng, Wantanee; Leelahavarong, Pattara; Rattanavipapong, Waranya; Sornsrivichai, Vorasith; Baggett, Henry C.; Meeyai, Aronrag; Punpanich, Warunee; Teerawattananon, Yot

    2015-01-01

    Objective This study aims to evaluate the costs and outcomes of offering the 10-valent pneumococcal conjugate vaccine (PCV10) and 13-valent pneumococcal conjugate vaccine (PCV13) in Thailand compared to the current situation of no PCV vaccination. Methods Two vaccination schedules were considered: two-dose primary series plus a booster dose (2 + 1) and three-dose primary series plus a booster dose (3 + 1). A cost-utility analysis was conducted using a societal perspective. A Markov simulation model was used to estimate the relevant costs and health outcomes for a lifetime horizon. Costs were collected and values were calculated for the year 2010. The results were reported as incremental cost-effectiveness ratios (ICERs) in Thai Baht (THB) per quality adjusted life year (QALY) gained, with future costs and outcomes being discounted at 3% per annum. One-way sensitivity analysis and probabilistic sensitivity analysis using a Monte Carlo simulation were performed to assess parameter uncertainty. Results Under the base case-scenario of 2 + 1 dose schedule and a five-year protection, without indirect vaccine effects, the ICER for PCV10 and PCV13 were THB 1,368,072 and THB 1,490,305 per QALY gained, respectively. With indirect vaccine effects, the ICER of PCV10 was THB 519,399, and for PCV13 was THB 527,378. The model was sensitive to discount rate, the change in duration of vaccine protection and the incidence of pneumonia for all age groups. Conclusions At current prices, PCV10 and PCV13 are not cost-effective in Thailand. Inclusion of indirect vaccine effects substantially reduced the ICERs for both vaccines, but did not result in cost effectiveness. PMID:23588084

  7. How Much Does It Cost Institutions to Produce Stem Degrees? Data Brief. The Price and Cost of Science Degrees Series

    ERIC Educational Resources Information Center

    Delta Cost Project at American Institutes for Research, 2013

    2013-01-01

    This AIR Data Brief breaks down the "cost per degree" estimates for 28 disciplines, including those in the STEM fields, which among the most expensive degrees to produce. The brief points to ways colleges can change their tuition structure to finance STEM degrees more affordably. This data brief is the fourth of four in the series. (See…

  8. The Marginal Damage Costs of Different Greenhouse Gases: An Application of FUND

    SciTech Connect

    Waldhoff, Stephanie T.; Anthoff, David; Rose, Steven K.; Tol, Richard

    2014-01-01

    We use FUND 3.8 to estimate the social cost of four greenhouse gases: carbon dioxide, methane, nitrous oxide, and sulphur hexafluoride emissions. The damage potential for each gas—the ratio of the social cost of the non-carbon dioxide greenhouse gas to the social cost of carbon dioxide—is also estimated. The damage potentials are compared to several metrics, focusing in particular on the global warming potentials, which are frequently used to measure the trade-off between gases in the form of carbon dioxide equivalents. We find that damage potentials could be significantly higher than global warming potentials. This finding implies that previous papers have underestimated the relative importance of reducing non-carbon dioxide greenhouse gas emissions from an economic damage perspective. We show results for a range of sensitivity analyses: carbon dioxide fertilization on agriculture productivity, terrestrial feedbacks, climate sensitivity, discounting, equity weighting, and socioeconomic and emissions scenarios. The sensitivity of the results to carbon dioxide fertilization is a primary focus as it is an important element of climate change that has not been considered in much of the previous literature. We estimate that carbon dioxide fertilization has a large positive impact that reduces the social cost of carbon dioxide with a much smaller effect on the other greenhouse gases. As a result, our estimates of the damage potentials of methane and nitrous oxide are much higher compared to estimates that ignore carbon dioxide fertilization. As a result, our base estimates of the damage potential for methane and nitrous oxide that include carbon dioxide fertilization are twice their respective global warming potentials. Our base estimate of the damage potential of sulphur hexafluoride is similar to the one previous estimate, both almost three times the global warming potential.

  9. The price of information: Increased inspection costs reduce the confirmation bias in visual search.

    PubMed

    Rajsic, Jason; Wilson, Daryl E; Pratt, Jay

    2017-01-31

    In visual search, there is a confirmation bias such that attention is biased towards stimuli that match a target template, which has been attributed to covert costs of updating the templates that guide search [Rajsic, Wilson, & Pratt, 2015. Confirmation bias in visual search. Journal of Experimental Psychology: Human Perception and Performance. Advance online publication. doi: 10.1037/xhp0000090 ]. In order to provide direct evidence for this speculation, the present study increased the cost of inspections in search by using gaze- and mouse-contingent searches, which restrict the manner in which information in search displays can be accrued, and incur additional motor costs (in the case of mouse-contingent searches). In a fourth experiment, we rhythmically mask elements in the search display to induce temporal inspection costs. Our results indicated that confirmation bias is indeed attenuated when inspection costs are increased. We conclude that confirmation bias results from the low-cost strategy of matching information to a single, concrete visual template, and that more sophisticated guidance strategies will be used when sufficiently beneficial. This demonstrates that search guidance itself comes at a cost, and that the form of guidance adopted in a given search depends on a comparison between guidance costs and the expected benefits of their implementation.

  10. Value of crops: Quantity, quality and cost price. [algae as a nutritional supplement

    NASA Technical Reports Server (NTRS)

    Meyer, C.

    1979-01-01

    Possibilities of using algae as a nutritional supplement are examined. The nutritional value and protein content of spirulines of blue algae are discussed. A cost analysis of growing them artificially is presented.

  11. Optimal pricing and investment in the electricity sector in Tamil Nadu, India

    NASA Astrophysics Data System (ADS)

    Murthy, Ranganath Srinivas

    2001-07-01

    Faulty pricing policies and inadequate investment in the power sector are responsible for the chronic power shortages that plague Tamil Nadu and the rest of India. Formulae for optimal pricing rules are derived for a social welfare maximizing Electricity Board which sells electricity that is used both as an intermediate, and as a final good. Because of distributional constraints, the optimal prices deviate systematically from marginal costs. Optimal relative price-marginal cost differentials are computed for Tamil Nadu, and are found to indicate a lower degree of subsidization than the prevailing prices. The rationalization of electricity tariffs would very likely increase the Board's revenues. The cost-effectiveness of nuclear power in India is examined by comparing actual data for the Madras Atomic Power Project and the Singrauli coal-fired thermal power station. The conventional (non-environmental) costs of power generation are compared at both market prices and shadow prices, calculated according to the UNIDO guidelines for project evaluation. Despite favorable assumptions for the costs of the nuclear plant, coal had a decided edge over nuclear in Tamil Nadu. Remarkably, the edge varied little when market prices are replaced by shadow prices in the computations. With regard to the environmental costs, far too much remains unknown. More research is therefore needed on the environmental impacts of both types of power generation before a final choice can be made.

  12. Cost-Effectiveness of Price Subsidies on Fortified Packaged Infant Cereals in Reducing Iron Deficiency Anemia in 6-23-Month-Old-Children in Urban India

    PubMed Central

    Plessow, Rafael; Arora, Narendra Kumar; Brunner, Beatrice

    2016-01-01

    Introduction Iron deficiency anaemia (IDA) is a major public health problem in India and especially harmful in early childhood due to its impact on cognitive development and increased all-cause mortality. We estimate the cost-effectiveness of price subsidies on fortified packaged infant cereals (F-PICs) in reducing IDA in 6-23-monthold children in urban India. Materials and Methods Cost-effectiveness is estimated by comparing the net social cost of price subsidies with the disability-adjusted life-years (DALYs) averted with price subsidies. The net social costs correspond to the cost of the subsidy minus the monetary costs saved by reducing IDA. The estimation proceeds in three steps: 1) the current lifetime costs of IDA are assessed with a health economic model combining the prevalence of anemia, derived from a large population survey, with information on the health consequences of IDA and their costs in terms of mortality, morbidity, and DALYs. 2) The effects of price subsidies on the demand for F-PICs are assessed with a market survey among 4801 households in 12 large Indian cities. 3) The cost-effectiveness is calculated by combining the findings of the first two steps with the results of a systematic review on the effectiveness of F-PICs in reducing IDA. We compare the cost-effectiveness of interventions that differ in the level of the subsidy and in the socio-economic strata (SES) eligible for the subsidy. Results The lifetime social costs of IDA in 6-23-month-old children in large Indian cities amount to production losses of 3222 USD and to 726,000 DALYs. Poor households incur the highest costs, yet even wealthier households suffer substantial losses. The market survey reveals that few households currently buy F-PICs, with the share ranging from 14% to 36%. Wealthier households are generally more likely to buy FPICs. The costs of the subsidies per DALY averted range from 909 to 3649 USD. Interventions targeted at poorer households are most effective. Almost

  13. The Price: A Study of the Costs of Racism in America.

    ERIC Educational Resources Information Center

    Tidwell, Billy J.

    America cannot afford to continue to pay the sociopsychological, sociopolitical, and economic costs of racism. The economic and psychosocial benefits of racism to the majority population during the slavery era are obvious. Similar interests motivated the discriminatory treatment of African Americans during the Jim Crow period, when Whites still…

  14. 43 CFR 426.6 - Leasing and full-cost pricing.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... water delivered to any acreage that exceeds their nonfull-cost entitlement. (d) Types of lands that... 426.14; and (ii) Land that is leased for incidental grazing or similar purposes during periods when... assumption that equal amounts of water per acre are being delivered to both types of land during periods...

  15. 43 CFR 426.6 - Leasing and full-cost pricing.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... water delivered to any acreage that exceeds their nonfull-cost entitlement. (d) Types of lands that... 426.14; and (ii) Land that is leased for incidental grazing or similar purposes during periods when... assumption that equal amounts of water per acre are being delivered to both types of land during periods...

  16. 43 CFR 426.6 - Leasing and full-cost pricing.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... water delivered to any acreage that exceeds their nonfull-cost entitlement. (d) Types of lands that... 426.14; and (ii) Land that is leased for incidental grazing or similar purposes during periods when... assumption that equal amounts of water per acre are being delivered to both types of land during periods...

  17. 43 CFR 426.6 - Leasing and full-cost pricing.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... water delivered to any acreage that exceeds their nonfull-cost entitlement. (d) Types of lands that... 426.14; and (ii) Land that is leased for incidental grazing or similar purposes during periods when... assumption that equal amounts of water per acre are being delivered to both types of land during periods...

  18. 43 CFR 426.6 - Leasing and full-cost pricing.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... water delivered to any acreage that exceeds their nonfull-cost entitlement. (d) Types of lands that... 426.14; and (ii) Land that is leased for incidental grazing or similar purposes during periods when... assumption that equal amounts of water per acre are being delivered to both types of land during periods...

  19. Using Cost Estimating Relationships to Develop A Price Index for Tactical Aircraft

    DTIC Science & Technology

    2014-04-30

    stealth (Nelson, Harmon, Bontz, & Devers , 2001). By including the quantity variables in the regression, the coefficients of the quality variables are...D-908-REV). Alexandria, VA: Institute for Defense Analyses. Nelson, R., Harmon, B. R., Bontz, R. J., & Devers , W. C. (2001, June). Cost estimating

  20. Utility-Scale Solar 2014. An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States

    SciTech Connect

    Bolinger, Mark; Seel, Joachim

    2015-09-01

    Other than the nine Solar Energy Generation Systems (“SEGS”) parabolic trough projects built in the 1980s, virtually no large-scale or “utility-scale” solar projects – defined here to include any groundmounted photovoltaic (“PV”), concentrating photovoltaic (“CPV”), or concentrating solar thermal power (“CSP”) project larger than 5 MWAC – existed in the United States prior to 2007. By 2012 – just five years later – utility-scale had become the largest sector of the overall PV market in the United States, a distinction that was repeated in both 2013 and 2014 and that is expected to continue for at least the next few years. Over this same short period, CSP also experienced a bit of a renaissance in the United States, with a number of large new parabolic trough and power tower systems – some including thermal storage – achieving commercial operation. With this critical mass of new utility-scale projects now online and in some cases having operated for a number of years (generating not only electricity, but also empirical data that can be mined), the rapidly growing utility-scale sector is ripe for analysis. This report, the third edition in an ongoing annual series, meets this need through in-depth, annually updated, data-driven analysis of not just installed project costs or prices – i.e., the traditional realm of solar economics analyses – but also operating costs, capacity factors, and power purchase agreement (“PPA”) prices from a large sample of utility-scale solar projects in the United States. Given its current dominance in the market, utility-scale PV also dominates much of this report, though data from CPV and CSP projects are presented where appropriate.

  1. The Frozen Price Game

    ERIC Educational Resources Information Center

    Alden, Lori

    2003-01-01

    In this article, the author discusses the educational frozen price game she developed to teach the basic economic principle of price allocation. In addition to demonstrating the advantages of price allocation, the game also illustrates such concepts as opportunity costs, cost benefit comparisons, and the trade-off between efficiency and equity.…

  2. Three essays on access pricing

    NASA Astrophysics Data System (ADS)

    Sydee, Ahmed Nasim

    In the first essay, a theoretical model is developed to determine the time path of optimal access price in the telecommunications industry. Determining the optimal access price is an important issue in the economics of telecommunications. Setting a high access price discourages potential entrants; a low access price, on the other hand, amounts to confiscation of private property because the infrastructure already built by the incumbent is sunk. Furthermore, a low access price does not give the incumbent incentives to maintain the current network and to invest in new infrastructures. Much of the existing literature on access pricing suffers either from the limitations of a static framework or from the assumption that all costs are avoidable. The telecommunications industry is subject to high stranded costs and, therefore, to address this issue a dynamic model is imperative. This essay presents a dynamic model of one-way access pricing in which the compensation involved in deregulatory taking is formalized and then analyzed. The short run adjustment after deregulatory taking has occurred is carried out and discussed. The long run equilibrium is also analyzed. A time path for the Ramsey price is shown as the correct dynamic price of access. In the second essay, a theoretical model is developed to determine the time path of optimal access price for an infrastructure that is characterized by congestion and lumpy investment. Much of the theoretical literature on access pricing of infrastructure prescribes that the access price be set at the marginal cost of the infrastructure. In proposing this rule of access pricing, the conventional analysis assumes that infrastructure investments are infinitely divisible so that it makes sense to talk about the marginal cost of investment. Often it is the case that investments in infrastructure are lumpy and can only be made in large chunks, and this renders the marginal cost concept meaningless. In this essay, we formalize a model of

  3. Enhancing the comparability of costing methods: cross-country variability in the prices of non-traded inputs to health programmes

    PubMed Central

    Johns, Benjamin; Adam, Taghreed; Evans, David B

    2006-01-01

    Background National and international policy makers have been increasing their focus on developing strategies to enable poor countries achieve the millennium development goals. This requires information on the costs of different types of health interventions and the resources needed to scale them up, either singly or in combinations. Cost data also guides decisions about the most appropriate mix of interventions in different settings, in view of the increasing, but still limited, resources available to improve health. Many cost and cost-effectiveness studies include only the costs incurred at the point of delivery to beneficiaries, omitting those incurred at other levels of the system such as administration, media, training and overall management. The few studies that have measured them directly suggest that they can sometimes account for a substantial proportion of total costs, so that their omission can result in biased estimates of the resources needed to run a programme or the relative cost-effectiveness of different choices. However, prices of different inputs used in the production of health interventions can vary substantially within a country. Basing cost estimates on a single price observation runs the risk that the results are based on an outlier observation rather than the typical costs of the input. Methods We first explore the determinants of the observed variation in the prices of selected "non-traded" intermediate inputs to health programmes – printed matter and media advertising, and water and electricity – accounting for variation within and across countries. We then use the estimated relationship to impute average prices for countries where limited data are available with uncertainty intervals. Results Prices vary across countries with GDP per capita and a number of determinants of supply and demand. Media and printing were inelastic with respect to GDP per capita, with a positive correlation, while the utilities had a surprisingly negative

  4. Recovery of Indirect Costs in the Pricing of Equitable Adjustments and Terminations for Convenience

    DTIC Science & Technology

    1988-05-01

    28,219. But see Rossen Builders, ASBCA 32305, 87-1 BCA 19538 at 98,727-28 (prior year’s G&A rate was used by Government and accepted by Board in lieu of...3 87 See e.g., Rossen Builders, ASBCA 32305, 87-1 BCA 19538 at 98,727 (holding bid estimator’s time and delivery costs were already in G&A--allowance

  5. Program Information Digest for the Professional Designation in Cost Analysis and Price Analysis

    DTIC Science & Technology

    1981-01-01

    Science degree. THE PROGRAM The primary purpose of the graduate programs offered by ’the School of Systems and Logistics is to provide selected...Each of the graduate programs conducted by the School is designed to help students accomplish the following specific educational objectives: 1. Apply...Management/Cost Analysis Elective STUDENTS Students are accepted in the graduate programs of the School of Systems and Logistics in t;.e grades of

  6. Reliability-based pricing of electricity service

    SciTech Connect

    Hagazy, Y.A.

    1993-01-01

    This research has two objectives: (a) to develop a price structure that unbundles electricity service by reliability levels, and (b) to analyze the implications of such a structure on economic welfare, system operation, load management, and energy conservation. The authors developed a pricing mechanism for electricity service that combines priority (reliability differentiation) pricing with real-time Ramsey type pricing. The electric utility is assumed to be a single welfare-maximizing firm able to set and communicate prices instantly. At time of supply shortages, the utility has direct control over customer loads and follows a rationing method among customers willing to accept power interruptions. Therefore, customers are given the choice either to be served with a high reliability [open quotes]firm[close quotes] service, or to be subject to interruption. To encourage customers to make rational reliability choices, a payment/compensation mechanism was integrated into the welfare-maximization model. In order to account for uncertainties associated with the operation of electric power systems, a stochastic production cost simulation is also integrated with the model. The stochastic production cost simulation yields the estimation of the expected production, cost, marginal costs, and system reliability level at total demand. The authors examine the welfare gain and energy and reserve saving possibilities due to different pricing schemes. The results show that reliability-based pricing yields higher economic efficiency and energy and power saving than both spot and Ramsey pricing when system imperfect reliability is considered. Therefore, the implication of this research is that reliability-based pricing provides a feasible solution to electric utilities as a substitute for power purchases, and/or new capacity investment.

  7. Bounding the marginal cost of producing potable water including the use of seawater desalinization as a backstop potable water production technology

    SciTech Connect

    Dooley, James J.

    2014-04-01

    The analysis presented in this technical report should allow for the creation of high, medium, and low cost potable water prices for GCAM. Seawater reverse osmosis (SWRO) based desalinization should act as a backstop for the cost of producing potable water (i.e., the literature seems clear that SWRO should establish an upper bound for the plant gate cost of producing potable water). Transporting water over significant distances and having to lift water to higher elevations to reach end-users can also have a significant impact on the cost of producing water. The three potable fresh water scenarios describe in this technical report are: low cost water scenario ($0.10/m3); medium water cost scenario ($1.00/m3); and high water cost scenario ($2.50/m3).

  8. An Analysis of Price Determination and Markups in the Air-Conditioning and Heating Equipment Industry

    SciTech Connect

    Dale, Larry; Millstein, Dev; Coughlin, Katie; Van Buskirk, Robert; Rosenquist, Gregory; Lekov, Alex; Bhuyan, Sanjib

    2004-01-30

    In this report we calculate the change in final consumer prices due to minimum efficiency standards, focusing on a standard economic model of the air-conditioning and heating equipment (ACHE) wholesale industry. The model examines the relationship between the marginal cost to distribute and sell equipment and the final consumer price in this industry. The model predicts that the impact of a standard on the final consumer price is conditioned by its impact on marginal distribution costs. For example, if a standard raises the marginal cost to distribute and sell equipment a small amount, the model predicts that the standard will raise the final consumer price a small amount as well. Statistical analysis suggest that standards do not increase the amount of labor needed to distribute equipment the same employees needed to sell lower efficiency equipment can sell high efficiency equipment. Labor is a large component of the total marginal cost to distribute and sell air-conditioning and heating equipment. We infer from this that standards have a relatively small impact on ACHE marginal distribution and sale costs. Thus, our model predicts that a standard will have a relatively small impact on final ACHE consumer prices. Our statistical analysis of U.S. Census Bureau wholesale revenue tends to confirm this model prediction. Generalizing, we find that the ratio of manufacturer price to final consumer price prior to a standard tends to exceed the ratio of the change in manufacturer price to the change in final consumer price resulting from a standard. The appendix expands our analysis through a typical distribution chain for commercial and residential air-conditioning and heating equipment.

  9. Avoiding Terminations, Single Offer Competition, and Costly Change Orders with Fixed-Price Contracts

    DTIC Science & Technology

    2015-04-30

    ååì~ä=^Åèìáëáíáçå= oÉëÉ~êÅÜ=póãéçëáìã= qÜìêëÇ~ó=pÉëëáçåë= sçäìãÉ=ff= = Avoiding Terminations, Single Offer Competition, and Costly Change Orders With...REPORT DATE 30 APR 2015 2. REPORT TYPE 3. DATES COVERED 00-00-2015 to 00-00-2015 4. TITLE AND SUBTITLE Avoiding Terminations, Single Offer...www.acquisitionresearch.net). ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ãW= `êÉ~íáåÖ=póåÉêÖó=Ñçê=fåÑçêãÉÇ=`Ü~åÖÉ= - 307 - Avoiding Terminations, Single Offer Competition, and

  10. Study of College Costs and Prices, 1988-89 to 1997-98. Volume 2: Commissioned Papers. Statistical Analysis Report. Postsecondary Education Descriptive Analysis Reports.

    ERIC Educational Resources Information Center

    Cunningham, Alisa F.; Wellman, Jane V.; Clinedinst, Melissa E.; Merisotis, Jamie P.

    In the 1998 Amendments to the Higher Education Act, Congress directed the National Center for Education Statistics to conduct a new study of higher education costs paid by institutions and prices paid by students and their families. This report contains commissioned papers prepared in support of this study and a summary of a meeting convened to…

  11. Anomalous Aspects of Pricing in Higher Education.

    ERIC Educational Resources Information Center

    Yanikoski, Richard A.

    1989-01-01

    Discusses six propositions concerning higher education contradicting prevailing pricing wisdom: high demand rarely drives prices up; market share increases rarely drive prices down; competition drives prices up; tuition prices are only loosely tied to delivery costs; student tuition is only loosely tied to price; and high tuition prices do not…

  12. Implications of Cost Effectiveness Screening Practices in a Low Natural Gas Price Environment: Case Study of a Midwestern Residential Energy Upgrade Program

    SciTech Connect

    Hoffman, Ian M.; Borgeson, Merrian Goggio; Zimring, Mark

    2013-04-12

    With the proliferation of statewide energy savings targets and other policies favorable to energy efficiency, savings from utility customer-funded energy efficiency programs could rise to offset much of annual load growth by 2025 (Barbose et al 2013). For these increased savings to occur, however, nearly all of these programs must pass screening for cost effectiveness. Some program administrators and state regulators are finding that conventional analyses, which only consider a narrow set of energy-savings related efficiency program benefits, are now resulting in some natural gas efficiency programs failing their cost-effectiveness criteria in the new low natural gas price environment. Regulators are considering whether to scale back or terminate gas portfolios in at least four states (WA, OR, ID, NM) because of cost-effectiveness concerns. Stakeholders in several regions of the country have asked LBNL to help assess alternatives to reducing the pursuit of energy savings in their regions. We address these requests by producing two working papers: one exploring cost-effectiveness screening policy implications of low to moderate natural gas prices, and a second assessing some of the values that policymakers may take into account in weighing the pros and cons of ending natural gas efficiency programs. In this policy brief, we lay out the challenges that low gas prices pose for cost effectiveness of an electric-gas efficiency program and portfolio. We then quantify options available to regulators and administrators who want to evaluate the tradeoffs among multiple policy objectives. A multi-measure, residential energy upgrade program in the Midwest is used as a lens to explore the implications of common and emerging cost-effectiveness policies in the context of low prices for natural gas. We illustrate the results across a range of cost-effectiveness screening options, including different discount rates, levels of test application, various benefit-cost tests, and the

  13. Unit pricing of household garbage in Melbourne: improving welfare, reducing garbage, or neither?

    PubMed

    Pickin, Joe

    2008-12-01

    Charging for household garbage collection per unit of waste is becoming more popular. Discussions in the practical literature focus on unit pricing as a way to encourage diversion to recycling and reduction in waste, but the economics literature emphasizes welfare maximization through charging at the marginal social cost. In the present study unit pricing was examined from both perspectives through a case study on unit pricing by volume in Melbourne, Australia, using longitudinal data. The marginal social cost per unit weight was estimated using a custom costing model and a valuation of environmental externalities. This cost was applied to a derived regression equation for change in waste quantities with unit price. The results suggest a very weak link between marginal pricing and change in garbage quantities, with an arc elasticity of demand at the margin of -0.02. Small reductions in garbage may have been achieved by local governments that overtly used pricing systems to this end. Enforced reduction of standard bin sizes had much more impact on waste quantities and did not lead to any significant management or political problems.

  14. Impact of energy pricing and discount-rate policies on energy conservation in federal buidings. Final report

    SciTech Connect

    Fuller, S.K.; Ruegg, R.T.

    1985-11-01

    The study investigates how energy-conservation projects for federal buildings would be affected by a change in energy pricing and discount-rate policies. It focuses on the choice between marginal-cost prices versus average market prices and a 10% discount rate versus a 7% discount rate. Graphical and numerical comparisons of hypothetical cases in selected geographical areas illustrate the expected impact on selection, design and sizing, and priority of energy-saving projects.

  15. Cost-effectiveness analysis in markets with high fixed costs.

    PubMed

    Cutler, David M; Ericson, Keith M Marzilli

    2010-01-01

    We consider how to conduct cost-effectiveness analysis when the social cost of a resource differs from the posted price. From the social perspective, the true cost of a medical intervention is the marginal cost of delivering another unit of a treatment, plus the social cost (deadweight loss) of raising the revenue to fund the treatment. We focus on pharmaceutical prices, which have high markups over marginal cost due to the monopoly power granted to pharmaceutical companies when drugs are under patent. We find that the social cost of a branded drug is approximately one-half the market price when the treatment is paid for by a public insurance plan and one-third the market price for mandated coverage by private insurance. We illustrate the importance of correctly accounting for social costs using two examples: coverage for statin drugs and approval for a drug to treat kidney cancer (sorafenib). In each case, we show that the correct social perspective for cost-effectiveness analysis would be more lenient than researcher recommendations.

  16. Utility-Scale Solar 2015: An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States

    SciTech Connect

    Bolinger, Mark; Seel, Joachim

    2016-08-17

    The utility-scale solar sector—defined here to include any ground-mounted photovoltaic (“PV”), concentrating photovoltaic (“CPV”), or concentrating solar power (“CSP”) project that is larger than 5 MWAC in capacity—has led the overall U.S. solar market in terms of installed capacity since 2012. It is expected to maintain its market-leading position for at least another five years, driven in part by December 2015’s three-year extension of the 30% federal investment tax credit (“ITC”) through 2019 (coupled with a favorable switch to a “start construction” rather than a “placed in service” eligibility requirement, and a gradual phase down of the credit to 10% by 2022). In fact, in 2016 alone, the utility-scale sector is projected to install more than twice as much new capacity as it ever has previously in a single year. This unprecedented boom makes it difficult, yet more important than ever, to stay abreast of the latest utility-scale market developments and trends. This report—the fourth edition in an ongoing annual series—is intended to help meet this need, by providing in-depth, annually updated, data-driven analysis of the utility-scale solar project fleet in the United States. Drawing on empirical project-level data from a wide range of sources, this report analyzes not just installed project costs or prices—i.e., the traditional realm of most solar economic analyses—but also operating costs, capacity factors, and power purchase agreement (“PPA”) prices from a large sample of utility-scale solar projects throughout the United States. Given its current dominance in the market, utility-scale PV also dominates much of this report, though data from CPV and CSP projects are also presented where appropriate.

  17. The Prices of Secrecy: The Social, Intellectual, and Psychological Costs of Current Assessment Practice. A Report to the Ford Foundation.

    ERIC Educational Resources Information Center

    Schwartz, Judah L., Ed.; Viator, Katherine A., Ed.

    Problems in accountability assessment are examined from a unique perspective by considering the prices paid as a result of the use of secret tests (tests comprised of items drawn from non-publicly available item banks). This report is a compilation of the following articles: (1) "The Social, Intellectual, and Psychological Prices of…

  18. Essays on pricing dynamics, price dispersion, and nested logit modelling

    NASA Astrophysics Data System (ADS)

    Verlinda, Jeremy Alan

    The body of this dissertation comprises three standalone essays, presented in three respective chapters. Chapter One explores the possibility that local market power contributes to the asymmetric relationship observed between wholesale costs and retail prices in gasoline markets. I exploit an original data set of weekly gas station prices in Southern California from September 2002 to May 2003, and take advantage of highly detailed station and local market-level characteristics to determine the extent to which spatial differentiation influences price-response asymmetry. I find that brand identity, proximity to rival stations, bundling and advertising, operation type, and local market features and demographics each influence a station's predicted asymmetric relationship between prices and wholesale costs. Chapter Two extends the existing literature on the effect of market structure on price dispersion in airline fares by modeling the effect at the disaggregate ticket level. Whereas past studies rely on aggregate measures of price dispersion such as the Gini coefficient or the standard deviation of fares, this paper estimates the entire empirical distribution of airline fares and documents how the shape of the distribution is determined by market structure. Specifically, I find that monopoly markets favor a wider distribution of fares with more mass in the tails while duopoly and competitive markets exhibit a tighter fare distribution. These findings indicate that the dispersion of airline fares may result from the efforts of airlines to practice second-degree price discrimination. Chapter Three adopts a Bayesian approach to the problem of tree structure specification in nested logit modelling, which requires a heavy computational burden in calculating marginal likelihoods. I compare two different techniques for estimating marginal likelihoods: (1) the Laplace approximation, and (2) reversible jump MCMC. I apply the techniques to both a simulated and a travel mode

  19. Determining the True Cost to Deliver Total Hip and Knee Arthroplasty Over the Full Cycle of Care: Preparing for Bundling and Reference-Based Pricing.

    PubMed

    DiGioia, Anthony M; Greenhouse, Pamela K; Giarrusso, Michelle L; Kress, Justina M

    2016-01-01

    The Affordable Care Act accelerates health care providers' need to prepare for new care delivery platforms and payment models such as bundling and reference-based pricing (RBP). Thriving in this environment will be difficult without knowing the true cost of care delivery at the level of the clinical condition over the full cycle of care. We describe a project in which we identified true costs for both total hip and total knee arthroplasty. With the same tool, we identified cost drivers in each segment of care delivery and collected patient experience information. Combining cost and experience information with outcomes data we already collect allows us to drive costs down while protecting outcomes and experiences, and compete successfully in bundling and RBP programs.

  20. Airport Pricing Strategies

    NASA Technical Reports Server (NTRS)

    Pels, Eric; Verhoef, Erik T.

    2003-01-01

    Conventional economic wisdom suggests that congestion pricing would be an appropriate response to cope with the growing congestion levels currently experienced at many airports. Several characteristics of aviation markets, however, may make naive congestion prices equal to the value of marginal travel delays a non-optimal response. This paper has developed a model of airport pricing that captures a number of these features. The model in particular reflects that airlines typically have market power and are engaged in oligopolistic competition at different sub-markets; that part of external travel delays that aircraft impose are internal to an operator and hence should not be accounted for in congestion tolls. We presented an analytical treatment for a simple bi-nodal symmetric network, which through the use of 'hyper-networks' would be readily applicable to dynamic problems (in discrete time) such as peak - off-peak differences, and some numerical exercises for the same symmetric network, which was only designed to illustrate the possible comparative static impacts of tolling, in addition to marginal equilibrium conditions as could be derived for the general model specification. Some main conclusions are that second-best optimal tolls are typically lower than what would be suggested by congestion costs alone and may even be negative, and that the toll as derived by Brueckner (2002) may not lead to an increase in total welfare. While Brueckner (2002) has made clear that congestion tolls on airports may be smaller than expected when congestion costs among aircraft are internal for a firm, our analysis adds to this that a further downward adjustment may be in order due to market power. The presence of market power (which causes prices to exceed marginal costs) may cause the pure congestion toll to be suboptimal, because the resulting decrease in demand is too high (the pure congestion tall does not take into account the decrease in consumer surplus). The various

  1. New type of price measurement for medical services: interest of a cost sensitivity index for a research agenda on pharmaceutical models.

    PubMed

    Huttin, Christine C

    2012-01-01

    This paper aims to propose a new methodological agenda for new price measurement for medical services; it is based on a cost sensitivity index coming from series of pilot studies on physicians, in order to provide adjustment methods to household surveys for health care expenditure budgets. The use of stated-revealed preference models with inclusion of stated preference studies is proposed with an example on a physician cost sensitivity study in Europe; it could also help the ISPOR task for force best practices in conjoint study designs.

  2. The ethics of dynamic pricing

    SciTech Connect

    Faruqui, Ahmad

    2010-07-15

    Dynamic pricing has garnered much interest among regulators and utilities, since it has the potential for lowering energy costs for society. But the deployment of dynamic pricing has been remarkably tepid. The underlying premise is that dynamic pricing is unfair. But the presumption of unfairness in dynamic pricing rests on an assumption of fairness in today's tariffs. (author)

  3. An Analysis of the RCA Price-S Cost Estimation Model as it Relates to Current Air Force Computer Software Acquisition and Management.

    DTIC Science & Technology

    1979-12-01

    of skill level, experience, productivity, efficiency, overhead, and labor rates for individual organizations on software development costs. This...GrE LE MfE T7 .. . . . . ESTr . ...... Tr. L o E . ...... . ........ OTFIC " STE UTG Eri TrJ F T NGjT . ..... . ..... .’ ......... ... ... . 5

  4. [Is the price of cancer drugs related to the cost of develo-pment and production or to the economic value of their clincal efficacy?].

    PubMed

    Russi, Alberto; Serena, Marta; Palozzo, Angelo C

    2016-04-01

    In the past years, the expenditure for cancer drugs has quickly increased, especially for biologic agents. Pharmaceutical companies and national health systems have different approaches in handling the issue of drug reimbursement. Companies support a price based on research and development (R&D) expenditures including those for unsuccessful drug projects while national health systems generally argue that pricing should be based on the incremental benefit generated by the agent under examination (value-based pricing - VBP). Nevertheless, current oncologic drugs prices are too high and not really justified by their incremental benefits or innovation, nor can they demonstrate that higher thresholds in QALYs could bring wider societal benefits. In this article we discuss these two points of view in the light of the most recent national and international literature. In Italy, drug reimbursement is currently managed through a mixed approach between the recognition of R&D expenditures and VBP. Reimbursement is also integrated with post-marketing patient-based national registries, particularly in the field of anti-cancer agents, that provide rebates based on financial risk sharing, cost-sharing, payment by results and success fee methods.

  5. Energy Prices, Tariffs, Taxes and Subsidies in Ukraine

    SciTech Connect

    Evans, Meredydd

    2007-04-01

    For many years, electricity, gas and district heating tariffs for residential consumers were very low in Ukraine; until recently, they were even lower than in neighbouring countries such as Russia. The increases in gas and electricity tariffs, implemented in 2006, are an important step toward sustainable pricing levels; however, electricity and natural gas (especially for households) are still priced below the long-run marginal cost. The problem seems even more serious in district heating and nuclear power. According to the Ministry of Construction, district heating tariffs, on average, cover about 80% of costs. Current electricity prices do not fully include the capital costs of power stations, which are particularly high for nuclear power. Although the tariff for nuclear electricity generation includes a small decommissioning charge, it has not been sufficient to accumulate necessary funds for nuclear plants decommissioning.

  6. Production costs and operative margins in electric energy generation from biogas. Full-scale case studies in Italy.

    PubMed

    Riva, C; Schievano, A; D'Imporzano, G; Adani, F

    2014-08-01

    The purpose of this study was to observe the economic sustainability of three different biogas full scale plants, fed with different organic matrices: energy crops (EC), manure, agro-industrial (Plants B and C) and organic fraction of municipal solid waste (OFMSW) (Plant A). The plants were observed for one year and total annual biomass feeding, biomass composition and biomass cost (€ Mg(-1)), initial investment cost and plant electric power production were registered. The unit costs of biogas and electric energy (€ Sm(-3)biogas, € kWh(-1)EE) were differently distributed, depending on the type of feed and plant. Plant A showed high management/maintenance cost for OFMSW treatment (0.155 € Sm(-3)biogas, 45% of total cost), Plant B suffered high cost for EC supply (0.130 € Sm(-3)biogas, 49% of total cost) and Plant C showed higher impact on the total costs because of the depreciation charge (0.146 € Sm(-3)biogas, 41% of total costs). The breakeven point for the tariff of electric energy, calculated for the different cases, resulted in the range 120-170 € MWh(-1)EE, depending on fed materials and plant scale. EC had great impact on biomass supply costs and should be reduced, in favor of organic waste and residues; plant scale still heavily influences the production costs. The EU States should drive incentives in dependence of these factors, to further develop this still promising sector.

  7. Large Extent Spatial Models of Grain Yield: Where Are the Marginal Areas?

    Technology Transfer Automated Retrieval System (TEKTRAN)

    Landscapes marginal for grain productivity are those having low or negative profitability due to lower grain yield or high risk of crop failure. These are the first acres to come into production when cost and price changes increase profitability. Food grain, biofuel grain and potential cellulosic bi...

  8. 48 CFR 1615.406-2 - Certificate of accurate cost or pricing data for community-rated carriers.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Regulations System OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.406-2 Certificate of... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Certificate of...

  9. STS pricing policy

    NASA Technical Reports Server (NTRS)

    Lee, C. M.; Stone, B.

    1982-01-01

    In 1977 NASA published Shuttle Reimbursement Policies for Civil U.S. Government, DOD and Commercial and Foreign Users. These policies were based on the principle of total cost recovery over a period of time with a fixed flat price for initial period to time to enhance transition. This fixed period was to be followed with annual adjustments thereafter, NASA is establishing a new price for 1986 and beyond. In order to recover costs, that price must be higher than the initial fixed price through FY 1985. NASA intends to remain competitive. Competitive posture includes not only price, but other factors such as assured launch, reliability, and unique services. NASA's pricing policy considers all these factors.

  10. Consumer Choice of E85 Denatured Ethanol Fuel Blend: Price Sensitivity and Cost of Limited Fuel Availability

    SciTech Connect

    Liu, Changzheng; Greene, David

    2014-12-01

    The promotion of greater use of E85, a fuel blend of 85% denatured ethanol, by flex-fuel vehicle owners is an important means of complying with the Renewable Fuel Standard 2. A good understanding of factors affecting E85 demand is necessary for effective policies that promote E85 and for developing models that forecast E85 sales in the United States. In this paper, the sensitivity of aggregate E85 demand to E85 and gasoline prices is estimated, as is the relative availability of E85 versus gasoline. The econometric analysis uses recent data from Minnesota, North Dakota, and Iowa. The more recent data allow a better estimate of nonfleet demand and indicate that the market price elasticity of E85 choice is substantially higher than previously estimated.

  11. Consumer Choice of E85 Denatured Ethanol Fuel Blend: Price Sensitivity and Cost of Limited Fuel Availability

    DOE PAGES

    Liu, Changzheng; Greene, David

    2014-12-01

    The promotion of greater use of E85, a fuel blend of 85% denatured ethanol, by flex-fuel vehicle owners is an important means of complying with the Renewable Fuel Standard 2. A good understanding of factors affecting E85 demand is necessary for effective policies that promote E85 and for developing models that forecast E85 sales in the United States. In this paper, the sensitivity of aggregate E85 demand to E85 and gasoline prices is estimated, as is the relative availability of E85 versus gasoline. The econometric analysis uses recent data from Minnesota, North Dakota, and Iowa. The more recent data allowmore » a better estimate of nonfleet demand and indicate that the market price elasticity of E85 choice is substantially higher than previously estimated.« less

  12. 48 CFR 32.501-3 - Contract price.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... costs exceed the target price, the contracting officer may provisionally increase the price up to the... REQUIREMENTS CONTRACT FINANCING Progress Payments Based on Costs 32.501-3 Contract price. (a) For the purpose... until modified. (3) Under a fixed-price incentive contract, the contract price is the target price...

  13. Target prices for mass production of tyrosine kinase inhibitors for global cancer treatment

    PubMed Central

    Hill, Andrew; Gotham, Dzintars; Fortunak, Joseph; Meldrum, Jonathan; Erbacher, Isabelle; Martin, Manuel; Shoman, Haitham; Levi, Jacob; Powderly, William G; Bower, Mark

    2016-01-01

    Objective To calculate sustainable generic prices for 4 tyrosine kinase inhibitors (TKIs). Background TKIs have proven survival benefits in the treatment of several cancers, including chronic myeloid leukaemia, breast, liver, renal and lung cancer. However, current high prices are a barrier to treatment. Mass production of low-cost generic antiretrovirals has led to over 13 million people being on HIV/AIDS treatment worldwide. This analysis estimates target prices for generic TKIs, assuming similar methods of mass production. Methods Four TKIs with patent expiry dates in the next 5 years were selected for analysis: imatinib, erlotinib, lapatinib and sorafenib. Chemistry, dosing, published data on per-kilogram pricing for commercial transactions of active pharmaceutical ingredient (API), and quotes from manufacturers were used to estimate costs of production. Analysis included costs of excipients, formulation, packaging, shipping and a 50% profit margin. Target prices were compared with current prices. Global numbers of patients eligible for treatment with each TKI were estimated. Results API costs per kg were $347–$746 for imatinib, $2470 for erlotinib, $4671 for lapatinib, and $3000 for sorafenib. Basing on annual dose requirements, costs of formulation/packaging and a 50% profit margin, target generic prices per person-year were $128–$216 for imatinib, $240 for erlotinib, $1450 for sorafenib, and $4020 for lapatinib. Over 1 million people would be newly eligible to start treatment with these TKIs annually. Conclusions Mass generic production of several TKIs could achieve treatment prices in the range of $128–$4020 per person-year, versus current US prices of $75161–$139 138. Generic TKIs could allow significant savings and scaling-up of treatment globally, for over 1 million eligible patients. PMID:26817636

  14. Concept of Price in a Library Context.

    ERIC Educational Resources Information Center

    Talaga, James A.

    1991-01-01

    Discusses pricing problems of public library service. The meaning of price in a library context is examined, including amount charged and patron's cost; components of price setting are described, including the impact of demand, cost, and competition; and library pricing strategies are suggested that should help achieve the library's goals. (13…

  15. The Financial Impact of Part-Time Enrollments on Two-Year Colleges: A Marginal-Cost Perspective.

    ERIC Educational Resources Information Center

    Brinkman, Paul T.

    In light of the increasing enrollment of part-time students at public two-year colleges, the question arises whether the conventional ratio (3:1 or so) for converting part-time to full-time equivalent (FTE) enrollment accurately represents the actual costs of providing services to part-time versus full-time students. A study was conducted to…

  16. Lower Costs, Higher Returns: UNCF HBCUs in a High-Priced College Environment. Financing African American College Aspirations Series

    ERIC Educational Resources Information Center

    Richards, David A. R.

    2014-01-01

    While research consistently shows the earning power of college degrees, those returns are best weighed against the cost of attending post-secondary institutions, historically black colleges and universities (HBCUs) included. This study is an update of "Affordability of UNCF-Member Institutions" (2009), and compares the average costs at…

  17. Tobacco use and asking prices of used cars: prevalence, costs, and new opportunities for changing smoking behavior.

    PubMed

    Matt, Georg E; Romero, Romina; Ma, Debbie S; Quintana, Penelope Je; Hovell, Melbourne F; Donohue, Michael; Messer, Karen; Salem, Simon; Aguilar, Mauricio; Boland, Justin; Cullimore, Jennifer; Crane, Marissa; Junker, Jonathan; Tassinario, Peter; Timmermann, Vera; Wong, Kristen; Chatfield, Dale

    2008-07-31

    Secondhand smoke (SHS) causes premature death and disease in children and adults, and the scientific evidence indicates that there is no risk-free level of exposure to SHS. Smoking tobacco in a car can pollute the microenvironment of the car with residual SHS, leaving telltale signs to potential buyers (e.g., odor, used ash tray). This study examined (a) the proportion of used cars sold in the private party market that may be polluted with tobacco smoke and (b) whether asking prices of smoker and nonsmoker cars differed for cars of otherwise equivalent value. A random sample of 1,642 private party sellers were interviewed by telephone, and content analyses of print advertisements were conducted. Findings indicate that 22% of used cars were advertised by smokers or had been smoked in during the previous year. Among nonsmokers, 94% did not allow smoking in their car during the past year. Only 33% of smokers had the same restrictions. The smoking status of the seller and tobacco use in the car were significantly (p < .01) associated with the asking price independent of a car's Kelley Blue Book value (KBB). Used nonsmoker cars were offered at a considerable premium above their KBB value (>11%) and above comparable smoker cars (7-9%). These findings suggest that community preferences are affecting the value of smoke-free cars. New directions for research, tobacco control policies, and health education are discussed to further reduce smoking behavior, to help consumers make informed purchasing decisions, and to protect nonsmokers from SHS exposure.

  18. Broadening the Appeal of Marginal Abatement Cost Curves: Capturing Both Carbon Mitigation and Development Benefits of Clean Energy Technologies; Preprint

    SciTech Connect

    Cowlin, S.; Cochran, J.; Cox, S.; Davison, C.; van der Gaast, Y.

    2012-08-01

    Low emission development strategies (LEDS) articulate policies and implementation plans that enable countries to advance sustainable, climate-resilient development and private sector growth while significantly reducing the greenhouse gas (GHG) emissions traditionally associated with economic growth. In creating a LEDS, policy makers often have access to information on abatement potential and costs for clean energy technologies, but there is a scarcity of economy-wide approaches for evaluating and presenting information on other dimensions of importance to development, such as human welfare, poverty alleviation, and energy security. To address this shortcoming, this paper proposes a new tool for communicating development benefits to policy makers as part of a LEDS process. The purpose of this tool is two-fold: 1. Communicate development benefits associated with each clean energy-related intervention; 2. Facilitate decision-making on which combination of interventions best contributes to development goals. To pilot this tool, the authors created a visual using data on developmental impacts identified through the Technology Needs Assessment (TNA) project in Montenegro. The visual will then be revised to reflect new data established through the TNA that provides information on cost, GHG mitigation, as well as the range and magnitude of developmental impacts.

  19. 48 CFR 22.101-2 - Contract pricing and administration.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ...-reimbursement contracts or for recognition of costs in pricing fixed-price contracts if they result in... organizations to settle disputes. (c) Strikes normally result in changing patterns of cost incurrence and... recognition of costs in pricing fixed-price contracts. Certain costs may increase because of strikes;...

  20. 48 CFR 22.101-2 - Contract pricing and administration.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ...-reimbursement contracts or for recognition of costs in pricing fixed-price contracts if they result in... organizations to settle disputes. (c) Strikes normally result in changing patterns of cost incurrence and... recognition of costs in pricing fixed-price contracts. Certain costs may increase because of strikes;...

  1. Getting the Price Right: Costing and Charging Commercial Provision in Centres of Vocational Excellence (CoVEs). Research Report

    ERIC Educational Resources Information Center

    Aitken, Liz; Chadwick, Arthur; Hughes, Maria

    2006-01-01

    Centres of Vocational Excellence (CoVEs) were established in 2001, intended to be a key driver in enhancing the contribution of the further education (FE) sector to meeting skills needs. Current government policy expects employers and individuals to pay a greater share of the costs of training, particularly at Level 3, which is the CoVE priority…

  2. Logical Design of a Decision Support System to Forecast Technology, Prices and Costs for the National Communications System.

    DTIC Science & Technology

    1984-09-01

    digital services upon ISDN technology growth can be modeled. The DSS is executed with the impacts as subjective values and are defined as desirable...communications media cost =I’ 2. Number of ISDN trained personnel = ’PI 3. Ccmpetiticn to provide digital services = ’C’ 4. Growth rate of ISDN

  3. How Much Debt Do Science Bachelor's Degree Recipients Accrue? Data Brief. The Price and Cost of Science Degrees Series

    ERIC Educational Resources Information Center

    Delta Cost Project at American Institutes for Research, 2013

    2013-01-01

    Concerns over college costs and student debt are at an all-time high. This AIR Data Brief looks into the impact that certain types of institutes, and degree programs (STEM or SBE sciences) can have on a student's potential debt load, particularly among students who are underrepresented in the STEM fields. This data brief is the second of four in…

  4. The Price of a Neglected Zoonosis: Case-Control Study to Estimate Healthcare Utilization Costs of Human Brucellosis.

    PubMed

    Vered, Oded; Simon-Tuval, Tzahit; Yagupsky, Pablo; Malul, Miki; Cicurel, Assi; Davidovitch, Nadav

    2015-01-01

    Human brucellosis has reemerged as a serious public health threat to the Bedouin population of southern Israel in recent years. Little is known about its economic implications derived from elevated healthcare utilization (HCU). Our objective was to estimate the HCU costs associated with human brucellosis from the insurer perspective. A case-control retrospective study was conducted among Clalit Health Services (CHS) enrollees. Brucellosis cases were defined as individuals that were diagnosed with brucellosis at the Clinical Microbiology Laboratory of Soroka University Medical Center in the 2010-2012 period (n = 470). Control subjects were randomly selected and matched 1:3 by age, sex, clinic, and primary physician (n = 1,410). HCU data, demographic characteristics and comorbidities were obtained from CHS computerized database. Mean±SD age of the brucellosis cases was 26.6±17.6 years. 63% were male and 85% were Bedouins. No significant difference in Charlson comorbidity index was found between brucellosis cases and controls (0.41 vs. 0.45, respectively, P = 0.391). Before diagnosis (baseline), the average total annual HCU cost of brucellosis cases was slightly yet significantly higher than that of the control group ($439 vs. $382, P<0.05), however, no significant differences were found at baseline in the predominant components of HCU, i.e. hospitalizations, diagnostic procedures, and medications. At the year following diagnosis, the average total annual HCU costs of brucellosis cases was significantly higher than that of controls ($1,327 vs. $380, respectively, P<0.001). Most of the difference stems from 7.9 times higher hospitalization costs (p<0.001). Additional elevated costs were 3.6 times higher laboratory tests (P<0.001), 2.8 times higher emergency room visits (P<0.001), 1.8 times higher medication (P<0.001) and 1.3 times higher diagnostic procedures (P<0.001). We conclude that human brucellosis is associated with elevated HCU costs. Considering these

  5. The Price of a Neglected Zoonosis: Case-Control Study to Estimate Healthcare Utilization Costs of Human Brucellosis

    PubMed Central

    Vered, Oded; Simon-Tuval, Tzahit; Yagupsky, Pablo; Malul, Miki; Cicurel, Assi; Davidovitch, Nadav

    2015-01-01

    Human brucellosis has reemerged as a serious public health threat to the Bedouin population of southern Israel in recent years. Little is known about its economic implications derived from elevated healthcare utilization (HCU). Our objective was to estimate the HCU costs associated with human brucellosis from the insurer perspective. A case-control retrospective study was conducted among Clalit Health Services (CHS) enrollees. Brucellosis cases were defined as individuals that were diagnosed with brucellosis at the Clinical Microbiology Laboratory of Soroka University Medical Center in the 2010–2012 period (n = 470). Control subjects were randomly selected and matched 1:3 by age, sex, clinic, and primary physician (n = 1,410). HCU data, demographic characteristics and comorbidities were obtained from CHS computerized database. Mean±SD age of the brucellosis cases was 26.6±17.6 years. 63% were male and 85% were Bedouins. No significant difference in Charlson comorbidity index was found between brucellosis cases and controls (0.41 vs. 0.45, respectively, P = 0.391). Before diagnosis (baseline), the average total annual HCU cost of brucellosis cases was slightly yet significantly higher than that of the control group ($439 vs. $382, P<0.05), however, no significant differences were found at baseline in the predominant components of HCU, i.e. hospitalizations, diagnostic procedures, and medications. At the year following diagnosis, the average total annual HCU costs of brucellosis cases was significantly higher than that of controls ($1,327 vs. $380, respectively, P<0.001). Most of the difference stems from 7.9 times higher hospitalization costs (p<0.001). Additional elevated costs were 3.6 times higher laboratory tests (P<0.001), 2.8 times higher emergency room visits (P<0.001), 1.8 times higher medication (P<0.001) and 1.3 times higher diagnostic procedures (P<0.001). We conclude that human brucellosis is associated with elevated HCU costs. Considering these

  6. Measuring the Readiness Cost of One-Size-Shoe-Fits-All Public Policy: A Look at Cost-, Hybrid-, and Price-Based Purchasing

    DTIC Science & Technology

    2000-01-01

    Harvard Business Review , pp. 94-102. DoD. Federal Acquisition Regulations. Parts 15 and 13. Washington...small businesses. Harvard Business Review , pp. 16–24. Myer, R. (1989, November-December). Suppliers—manage your customers. Harvard Business Review , pp... Business Review , pp. 127–135. Baron, D., & Meyerson, R. (1982). Regu- lating a monopolist with unknown costs. Econometrica, 50, pp. 911–930. DoD

  7. Paying the price works: increasing goal-state access cost improves problem solving and mitigates the effect of interruption.

    PubMed

    Morgan, Phillip L; Patrick, John

    2013-01-01

    The aim of this paper was to investigate whether it was possible to induce more internal planning in the four-disk Tower of Hanoi (ToH) in order not only to produce more efficient problem solving but also to make it more resistant to the negative effect of interruption. The theoretical frameworks of soft constraints and the memory for goals model underpinned Experiments 1 and 2. In both experiments, three goal-state access cost conditions were used: high (mouse movements and 2.5-s delay), medium (mouse movements) and low (goal state always available). In Experiment 1, more memory-based planning was induced by the high cost condition, which resulted in fewer moves to solution and the gradual development of an efficient subgoaling strategy, resulting in more perfect solutions. In Experiment 2, the same condition protected performance against a 10-s interruption irrespective of the interrupting task (blank screen, mental arithmetic, or three-disk ToH). The more memory-based planning strategy, induced by high access cost, presumably strengthened participants' goals during planning and problem solving, making them less susceptible to decay and interference from interruption. These novel results are discussed in the context of other recent studies.

  8. Estimation of own and cross price elasticities of alcohol demand in the UK—A pseudo-panel approach using the Living Costs and Food Survey 2001–2009☆

    PubMed Central

    Meng, Yang; Brennan, Alan; Purshouse, Robin; Hill-McManus, Daniel; Angus, Colin; Holmes, John; Meier, Petra Sylvia

    2014-01-01

    The estimation of price elasticities of alcohol demand is valuable for the appraisal of price-based policy interventions such as minimum unit pricing and taxation. This study applies a pseudo-panel approach to the cross-sectional Living Cost and Food Survey 2001/2–2009 to estimate the own- and cross-price elasticities of off- and on-trade beer, cider, wine, spirits and ready-to-drinks in the UK. A pseudo-panel with 72 subgroups defined by birth year, gender and socioeconomic status is constructed. Estimated own-price elasticities from the base case fixed effect models are all negative and mostly statically significant (p < 0.05). Off-trade cider and beer are most elastic (−1.27 and −0.98) and off-trade spirits and on-trade ready-to-drinks are least elastic (−0.08 and −0.19). Estimated cross-price elasticities are smaller in magnitude with a mix of positive and negative signs. The results appear plausible and robust and could be used for appraising the estimated impact of price-based interventions in the UK. PMID:24508846

  9. Estimation of own and cross price elasticities of alcohol demand in the UK--A pseudo-panel approach using the Living Costs and Food Survey 2001-2009.

    PubMed

    Meng, Yang; Brennan, Alan; Purshouse, Robin; Hill-McManus, Daniel; Angus, Colin; Holmes, John; Meier, Petra Sylvia

    2014-03-01

    The estimation of price elasticities of alcohol demand is valuable for the appraisal of price-based policy interventions such as minimum unit pricing and taxation. This study applies a pseudo-panel approach to the cross-sectional Living Cost and Food Survey 2001/2-2009 to estimate the own- and cross-price elasticities of off- and on-trade beer, cider, wine, spirits and ready-to-drinks in the UK. A pseudo-panel with 72 subgroups defined by birth year, gender and socioeconomic status is constructed. Estimated own-price elasticities from the base case fixed effect models are all negative and mostly statically significant (p<0.05). Off-trade cider and beer are most elastic (-1.27 and -0.98) and off-trade spirits and on-trade ready-to-drinks are least elastic (-0.08 and -0.19). Estimated cross-price elasticities are smaller in magnitude with a mix of positive and negative signs. The results appear plausible and robust and could be used for appraising the estimated impact of price-based interventions in the UK.

  10. Climate change mitigation in the agricultural sector- an analysis of marginal abatement costs of climate mitigation in global paddy rice agriculture based on DNDC simulations

    NASA Astrophysics Data System (ADS)

    Li, C.; Li, J.; Beach, R.; Salas, W.; Ingraham, P.; Ragnauth, S.

    2012-12-01

    Authors: Jia Li1, Robert H. Beach2, Changsheng Li3, William Salas4, Pete Ingraham5, Shaun Ragnauth1 INSTITUTIONS (ALL): 1. Climate Change Division, US Environmental Protection Agency, Washington, DC, United States. 2. RTI International, Durham, NC, United States. 3. ESRC, University of New Hampshire, Durham, NH, United States. 4. Applied Geosolutions, LLC, Newmarket, NH, United States. Global agriculture sector faces the dual challenge of climate change mitigation and providing food security for a growing population. In a new study, the U.S. EPA has developed an analysis of mitigation of non-CO2 greenhouse gases for the global agriculture sector. We estimate global greenhouse gas (GHG) emissions from paddy rice cultivation and rice yields under baseline management conditions as well as for alternative mitigation options. These biophysical effects are combined with data on input use and costs to estimate marginal abatement cost curves and evaluate the cost-effectiveness of mitigation options for global rice cropping systems. DNDC, a process-based crop model, is used to simulate crop yields, methane and nitrous oxide emissions, as well as soil carbon sequestration of the various rice cropping systems (irrigated and rainfed, and single, double, triple and mixed rotations) under local climatic and soil conditions at a 0.5 degree resolution at the global scale. We evaluate the impacts of various management alternatives (e.g., flooding methods, fertilizer applications, and crop residue management) on crop yields and GHG emissions and report the spatial and temporal distributions of the outcomes. The analysis provides important insights on the potential for closing the production efficiency gaps and the trade-offs and synergies between GHG mitigation and food security in different parts of the world.

  11. 48 CFR 215.403-1 - Prohibition on obtaining cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... requirements—(1) Adequate price competition. For acquisitions under dual or multiple source programs: (A) The determination of adequate price competition must be made on a case-by-case basis. Even when adequate price competition exists, in certain cases it may be appropriate to obtain additional information to assist in...

  12. Carbon pricing, nuclear power and electricity markets

    SciTech Connect

    Cameron, R.; Keppler, J. H.

    2012-07-01

    In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised

  13. Translating PrEP effectiveness into public health impact: key considerations for decision-makers on cost-effectiveness, price, regulatory issues, distributive justice and advocacy for access

    PubMed Central

    Hankins, Catherine; Macklin, Ruth; Warren, Mitchell

    2015-01-01

    Introduction The extraordinary feat of proving the effectiveness of oral pre-exposure prophylaxis (PrEP) in clinical trials in different populations in a variety of settings may prove to have been easier than ensuring it is used well. Decision-makers must make difficult choices to realize the promise of antiretroviral prophylaxis for their countries. This paper outlines key economic, regulatory and distributive justice issues that must be addressed for effective and acceptable PrEP implementation. Discussion In considering the role that PrEP can play in combination prevention programmes, decision-makers must determine who can benefit most from PrEP, how PrEP can be provided safely and efficiently, and what kind of health system support will ensure successful implementation. To do this, they need contextualized information on disease burden by population, analyses of how PrEP services might best be delivered, and projections of the human resource and infrastructure requirements for each potential delivery model. There are cost considerations, varying cost-effectiveness results and regulatory challenges. The principles of ethics can inform thorny discussions about who should be prioritized for oral PrEP and how best to introduce it fairly. We describe the cost-effectiveness of PrEP in different populations at higher risk of HIV exposure, its price in low- and middle-income countries, and the current regulatory situation. We explore the principles of ethics that can inform resource allocation decision-making about PrEP anchored in distributive justice, at a time when universal access to antiretroviral treatment remains to be assured. We then highlight the role of advocacy in moving the PrEP agenda forward. Conclusions The time is ripe now for decisions about whether, how and for whom PrEP should be introduced into a country's HIV response. It has the potential to contribute significantly to high impact HIV prevention if it is tailored to those who can most benefit

  14. 48 CFR 15.405 - Price negotiation.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Price negotiation. 15.405... AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.405 Price negotiation. (a) The purpose of performing cost or price analysis is to develop a negotiation position that permits...

  15. 48 CFR 15.405 - Price negotiation.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... 48 Federal Acquisition Regulations System 1 2011-10-01 2011-10-01 false Price negotiation. 15.405... AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.405 Price negotiation. (a) The purpose of performing cost or price analysis is to develop a negotiation position that permits...

  16. Estimating the price elasticity of expenditure for prescription drugs in the presence of non-linear price schedules: an illustration from Quebec, Canada.

    PubMed

    Contoyannis, Paul; Hurley, Jeremiah; Grootendorst, Paul; Jeon, Sung-Hee; Tamblyn, Robyn

    2005-09-01

    The price elasticity of demand for prescription drugs is a crucial parameter of interest in designing pharmaceutical benefit plans. Estimating the elasticity using micro-data, however, is challenging because insurance coverage that includes deductibles, co-insurance provisions and maximum expenditure limits create a non-linear price schedule, making price endogenous (a function of drug consumption). In this paper we exploit an exogenous change in cost-sharing within the Quebec (Canada) public Pharmacare program to estimate the price elasticity of expenditure for drugs using IV methods. This approach corrects for the endogeneity of price and incorporates the concept of a 'rational' consumer who factors into consumption decisions the price they expect to face at the margin given their expected needs. The IV method is adapted from an approach developed in the public finance literature used to estimate income responses to changes in tax schedules. The instrument is based on the price an individual would face under the new cost-sharing policy if their consumption remained at the pre-policy level. Our preferred specification leads to expenditure elasticities that are in the low range of previous estimates (between -0.12 and -0.16). Naïve OLS estimates are between 1 and 4 times these magnitudes.

  17. 48 CFR 46.707 - Pricing aspects of fixed-price incentive contract warranties.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 46.708), the estimated cost of the warranty to the contractor should be considered in establishing the incentive target price and the ceiling price of the contract. All costs incurred, or estimated to... final price shall be at no additional cost to the Government....

  18. Price transparency: building community trust.

    PubMed

    Clarke, Richard L

    2007-01-01

    With the push from policymakers, payers, and consumers for hospitals to make their prices public, healthcare executives need to recognize two central issues related to price transparency: 1) meaningful price transparency involves helping patients and consumers understand their financial obligation for an episode of care, and 2) price transparency is key to the most critical success strategy for healthcare providers: building trust. This article reviews the history of pricing and billing practices and explores why price transparency is not easily achieved in today's environment. Pricing is a mystery even to those of us who work in the field, yet despite its complexity, the call for price transparency is not going to go away. For transparency, the goal should be to establish a rational pricing system that is easily explainable and justified to all stakeholders. Healthcare executives must make pricing a priority, understand cost, develop a pricing philosophy, understand the overall revenue requirements, examine market conditions and prices, and set up systems for review. A rational process of price setting should enhance community trust. In this matter there is nothing less at stake than the hearts of our community members.

  19. Six Sigma pricing.

    PubMed

    Sodhi, ManMohan S; Sodhi, Navdeep S

    2005-05-01

    Many companies are now good at managing costs and wringing out manufacturing efficiencies. The TQM movement and the disciplines of Six Sigma have seen to that. But the discipline so often brought to the cost side of the business equation is found far less commonly on the revenue side. The authors describe how a global manufacturer of industrial equipment, which they call Acme Incorporated, recently applied Six Sigma to one major revenue related activity--the price-setting process. It seemed to Acme's executives that pricing closely resembled many manufacturing processes. So, with the help of a Six Sigma black belt from manufacturing, a manager from Acme's pricing division recruited a team to carry out the five Six Sigma steps: Define what constitutes a defect. At Acme, a defect was an item sold at an unauthorized price. Gather data and prepare it for analysis. That involved mapping out the existing pricing-agreement process. Analyze the data. The team identified the ways in which people failed to carry out or assert effective control at each stage. Recommend modifications to the existing process. The team sought to decrease the number of unapproved prices without creating an onerous approval apparatus. Create controls. This step enabled Acme to sustain and extend the improvements in its pricing procedures. As a result of the changes, Acme earned dollar 6 million in additional revenue on one product line alone in the six months following implementation--money that went straight to the bottom line. At the same time, the company removed much of the organizational friction that had long bedeviled its pricing process. Other companies can benefit from Acme's experience as they look for ways to exercise price control without alienating customers.

  20. Assessing the impact on chronic disease of incorporating the societal cost of greenhouse gases into the price of food: an econometric and comparative risk assessment modelling study

    PubMed Central

    Briggs, Adam D M; Kehlbacher, Ariane; Tiffin, Richard; Garnett, Tara; Rayner, Mike; Scarborough, Peter

    2013-01-01

    Objectives To model the impact on chronic disease of a tax on UK food and drink that internalises the wider costs to society of greenhouse gas (GHG) emissions and to estimate the potential revenue. Design An econometric and comparative risk assessment modelling study. Setting The UK. Participants The UK adult population. Interventions Two tax scenarios are modelled: (A) a tax of £2.72/tonne carbon dioxide equivalents (tCO2e)/100 g product applied to all food and drink groups with above average GHG emissions. (B) As with scenario (A) but food groups with emissions below average are subsidised to create a tax neutral scenario. Outcome measures Primary outcomes are change in UK population mortality from chronic diseases following the implementation of each taxation strategy, the change in the UK GHG emissions and the predicted revenue. Secondary outcomes are the changes to the micronutrient composition of the UK diet. Results Scenario (A) results in 7770 (95% credible intervals 7150 to 8390) deaths averted and a reduction in GHG emissions of 18 683 (14 665to 22 889) ktCO2e/year. Estimated annual revenue is £2.02 (£1.98 to £2.06) billion. Scenario (B) results in 2685 (1966 to 3402) extra deaths and a reduction in GHG emissions of 15 228 (11 245to 19 492) ktCO2e/year. Conclusions Incorporating the societal cost of GHG into the price of foods could save 7770 lives in the UK each year, reduce food-related GHG emissions and generate substantial tax revenue. The revenue neutral scenario (B) demonstrates that sustainability and health goals are not always aligned. Future work should focus on investigating the health impact by population subgroup and on designing fiscal strategies to promote both sustainable and healthy diets. PMID:24154517

  1. Palbociclib as a first-line treatment in oestrogen receptor-positive, HER2-negative, advanced breast cancer not cost-effective with current pricing: a health economic analysis of the Swiss Group for Clinical Cancer Research (SAKK).

    PubMed

    Matter-Walstra, K; Ruhstaller, T; Klingbiel, D; Schwenkglenks, M; Dedes, K J

    2016-07-01

    Endocrine therapy continues to be the optimal systemic treatment for metastatic ER(+)HER2(-) breast cancer. The CDK4/6 inhibitor palbociclib combined with letrozole has recently been shown to significantly improve progression-free survival. Here we examined the cost-effectiveness of this regimen for the Swiss healthcare system. A Markov cohort simulation based on the PALOMA-1 trial (Finn et al. in Lancet Oncol 16:25-35, 2015) was used as the clinical course. Input parameters were based on summary trial data. Costs were assessed from the Swiss healthcare system perspective. Adding palbociclib to letrozole (PALLET) compared to letrozole monotherapy was estimated to cost an additional CHF342,440 and gain 1.14 quality-adjusted life years, resulting in an incremental cost-effectiveness ratio (ICER) of CHF301,227/QALY gained. In univariate sensitivity analyses, no tested variation in key parameters resulted in an ICER below a willingness-to-pay threshold of CHF100,000/QALY. PALLET had a 0 % probability of being cost-effective in probabilistic sensitivity analyses. Lowering PALLET's price by 75 % resulted in an ICER of CHF73,995/QALY and a 73 % probability of being cost-effective. At current prices, PALLET would cost the Swiss healthcare system an additional CHF155 million/year. Palbociclib plus letrozole cannot be considered cost-effective for the first-line treatment of patients with metastatic breast cancer in the Swiss healthcare system.

  2. Pricing of new vaccines.

    PubMed

    Lee, Bruce Y; McGlone, Sarah M

    2010-08-01

    New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical, and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following ten components: 1. Conduct a target population analysis; 2. Map potential competitors and alternatives; 3. Construct a vaccine target product profile (TPP) and compare it to projected or actual TPPs of competing vaccines; 4. Quantify the incremental value of the new vaccine's characteristics; 5. Determine vaccine positioning in the marketplace; 6. Estimate the vaccine price-demand curve; 7. Calculate vaccine costs (including those of manufacturing, distribution, and research and development); 8. Account for various legal, regulatory, third party payer, and competitor factors; 9. Consider the overall product portfolio; 10. Set pricing objectives; 11. Select pricing and pricing structure. While the biomedical literature contains some studies that have addressed these components, there is still considerable room for more extensive evaluation of this important area.

  3. Pricing of new vaccines

    PubMed Central

    McGlone, Sarah M

    2010-01-01

    New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following eleven components: (1) Conduct a target population analysis; (2) Map potential competitors and alternatives; (3) Construct a vaccine target product profile (TPP) and compare it to projected or actual TPPs of competing vaccines; (4) Quantify the incremental value of the new vaccine's characteristics; (5) Determine vaccine positioning in the marketplace; (6) Estimate the vaccine price-demand curve; (7) Calculate vaccine costs (including those of manufacturing, distribution, and research and development); (8) Account for various legal, regulatory, third party payer and competitor factors; (9) Consider the overall product portfolio; (10) Set pricing objectives; (11) Select pricing and pricing structure. While the biomedical literature contains some studies that have addressed these components, there is still considerable room for more extensive evaluation of this important area. PMID:20861678

  4. Essays on microgrids, asymmetric pricing and market power in electricity markets

    NASA Astrophysics Data System (ADS)

    Lo Prete, Chiara

    This dissertation presents four studies of the electricity industry. The first and second essays use economic-engineering models to assess different aspects of microgrid penetration in regional electricity markets, while the last two studies contain empirical analyses aimed at evaluating the performance of wholesale electricity markets. Chapter 2 develops a framework to quantify economic, environmental, efficiency and reliability impacts of different power production scenarios in a regional system, focusing on the interaction of microgrids with the existing transmission and distribution grid. The setting is the regional network formed by Belgium, France, Germany and the Netherlands. The study presents simulations of power market outcomes under various policies and levels of microgrid penetration, and evaluates them using a diverse set of metrics. Chapter 3 studies the interaction between a microgrid and a regulated electric utility in a regional electricity market. I consider the interaction among the utility, the microgrid developer and consumers in the framework of cooperative game theory (assuming exchangeable utility), and use regional market models to simulate scenarios in which microgrid introduction may or may not be socially beneficial. Under the assumptions of this chapter, customer participation is essential to the development of socially beneficial microgrids, while the utility has little or no gain from it. Discussed incentives to avoid that utilities block microgrid entry include additional revenue drivers related to microgrid connection, decoupling and performance-based mechanisms targeted at service quality. When prices are below marginal costs of utility provided power, microgrid development may be socially beneficial, but unprofitable for microgrid customers and its developer. By imposing lower charges and higher remuneration for its services, the regulator could ensure that microgrid value is positive, without adversely impacting the utility

  5. Changes in Pricing Behavior during the 1980s: An Analysis of Selected Case Studies.

    ERIC Educational Resources Information Center

    St. John, Edward P.

    1992-01-01

    Reports on changes in pricing decisions at public and private colleges in a low-cost and a high-cost state in the 1980s. Five liberal arts colleges studied used several pricing strategies: "elite" pricing strategy; "prestige" pricing strategy; and price reduction strategy. Study found multiple causes for price increases, more sophisticated pricing…

  6. The 1990 Clean Air Act and the implicit price of sulfur in coal - article no. 41

    SciTech Connect

    Lange, I.; Bellas, A.S.

    2007-07-01

    Prior to implementation of the 1990 Clean Air Act Amendments (CAAA), many estimates of the marginal cost of SO{sub 2} abatement were provided to guide policy makers. Numerous studies estimated the marginal cost of abatement to be between $250 and $760 per ton, though permits initially traded well below $200 and remained below $220 until 2004. We use a fixed effects estimator and a hedonic price model of coal purchases in order to determine the implicit price of sulfur. Data on contract coal purchases are divided into regulatory regimes based on when the contract was signed or re-negotiated. We find that purchases by Phase I plants made under contracts signed or re-negotiated after the passage of the 1990 CAAA show an implicit price of SO{sub 2} of approximately $50 per ton, an amount much closer to the eventual permit price. The implicit market price of sulfur seems to have revealed better information than did the calculations of industry experts.

  7. 48 CFR 16.403 - Fixed-price incentive contracts.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... relationship of total final negotiated cost to total target cost. The final price is subject to a price ceiling, negotiated at the outset. The two forms of fixed-price incentive contracts, firm target and successive... becomes apparent that final negotiated cost will be substantially different from the target cost....

  8. Higher Education Cost Measurement: Public Policy Issues, Options, and Strategies. A Compilation of Background Papers Prepared for a Seminar on Cost Measurement and Management. The New Millennium Project on Higher Education Costs, Pricing, and Productivity.

    ERIC Educational Resources Information Center

    Wellman, Jane, Comp.; O'Brien, Colleen, Comp.

    This collection of papers is the result of a project by the Institute for Higher Education Policy designed to explore the public policy aspects of higher education cost measurement (expenditure analysis). Papers come from a 1-day seminar in 1999 that brought together individuals knowledgeable about cost measurement with institutional leaders and…

  9. Pricing Options.

    ERIC Educational Resources Information Center

    Tenopir, Carol

    1998-01-01

    Presents results of a recent survey of over 100 public and academic libraries about pricing options from online companies. Most options fall into three categories: pay-as-you-go, fixed-rate, and user-based. Results are discussed separately for public and academic libraries and for consortial discounts. Trends in pricing options preferred by…

  10. Pricing Films, Filmstrips and Records.

    ERIC Educational Resources Information Center

    Epstein, Connie C.

    1984-01-01

    Examines pricing practices of major producers of educational materials: Weston Woods, Listening Library, Random House Educational Media, Live Oak Media, S&S Communications Group, Phoenix/BFA, Benchmark, and Churchill Films. Royalties, production and manufacturing costs, list prices, recoveries to producers, and marketing are noted. (EJS)

  11. Forward and Spot Prices in Multi-Settlement Wholesale Electricity Markets

    NASA Astrophysics Data System (ADS)

    Larrieu, Jeremy

    In organized wholesale electricity markets, power is sold competitively in a multi-unit multi-settlement single-price auction comprised of a forward and a spot market. This dissertation attempts to understand the structure of the forward premium in these markets, and to identify the factors that may lead forward and spot prices to converge or diverge. These markets are unique in that the forward demand is price-sensitive, while spot residual demand is perfectly inelastic and must be met in full, a crucial design feature the literature often glosses over. An important contribution of this dissertation is the explicit modeling of each market separately in order to understand how generation and load choose to act in each one, and the consequences of these actions on equilibrium prices and quantities given that firms maximize joint profits over both markets. In the first essay, I construct a two-settlement model of electricity prices in which firms that own asymmetric capacity-constrained units facing convex costs compete to meet demand from consumers, first in quantities, then in prices. I show that the forward premium depends on the costliness of spot production relative to firms' ability to exercise market power by setting quantities in the forward market. In the second essay, I test the model from the first essay with unit-level capacity and marginal cost data from the California Independent System Operator (CAISO). I show that the model closely replicates observed price formation in the CAISO. In the third essay, I estimate a time series model of the CAISO forward premium in order to measure the impact that virtual bidding has had on forward and spot price convergence in California between April 2009 and March 2014. I find virtual bidding to have caused forward and spot prices to diverge due to the large number of market participants looking to hedge against - or speculate on - the occurrence of infrequent but large spot price spikes by placing virtual demand bids.

  12. Estimation of conjectural variation of competitive electricity prices and consumer response

    SciTech Connect

    Yu, Z.; Lusan, D.; Sparrow, F.T.

    1999-11-01

    This paper reviews major existing models for quantifying competitive electricity pricing strategies. Most of them are game models that assume a set of market behaviors for producers. The competitive producers` behavior is called conjectural variations in economics. Based on observations of the evolving deregulated electricity markets around the world, the paper concludes that none of the existing models can fully explain electricity market power and its impact on prices. One reason is because producers, depending on market conditions, sometimes adopt strategies that violate the assumption of least-cost (i.e., marginal cost) dispatch. Instead, this paper proposes a statistical method for estimating the combined effect of the consumers` responses and the producers` strategies on prices in electricity markets. Market data from the California power exchange (Cal-PX) are used to test the model that produces reasonably good results.

  13. 76 FR 53533 - Notification of New Pricing Methodology

    Federal Register 2010, 2011, 2012, 2013, 2014

    2011-08-26

    ... Mint is implementing a new pricing methodology for its commemorative gold coins to mitigate the effect that fluctuating gold commodity costs has on the pricing of these products. The new pricing methodology... previous Thursday A.M. Fix through the Wednesday A.M. Fix) gold prices, which reflect the cost of the...

  14. 48 CFR 15.403-1 - Prohibition on obtaining certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... data requirements—(1) Adequate price competition. A price is based on adequate price competition if— (i... offer; and (B) The determination that the proposed price is based on adequate price competition, is... and conditions under contracts that resulted from adequate price competition. (2) Prices set by law...

  15. Rising Food Prices: Who's Responsible?

    ERIC Educational Resources Information Center

    Brown, Lester R.

    1973-01-01

    Rise in food prices can be partially attributed to the high food consumption level throughout Europe and North America, coupled with failure to evolve systems for more production of cattle, soybeans, and fisheries at lower cost. (PS)

  16. Price-based vs. quantity-based environmental regulation under Knightian uncertainty: an info-gap robust satisficing perspective.

    PubMed

    Stranlund, John K; Ben-Haim, Yakov

    2008-05-01

    Conventional wisdom among environmental economists is that the relative slopes of the marginal social benefit and marginal social cost functions determine whether a price-based or quantity-based environmental regulation leads to higher expected social welfare. We revisit the choice between price-based vs. quantity-based environmental regulation under Knightian uncertainty; that is, when uncertainty cannot be modeled with known moments of probability distributions. Under these circumstances, the policy objective cannot be to maximize the expected net benefits of emissions control. Instead, we evaluate an emissions tax and an aggregate abatement standard in terms of maximizing the range of uncertainty under which the welfare loss from error in the estimates of the marginal benefits and costs of emissions control can be limited. The main result of our work is that the same criterion involving the relative slopes of the marginal benefit and cost functions determines whether price-based or quantity-based control is more robust to unstructured uncertainty. Hence, not only does the relative slopes criterion lead to the policy that maximizes the expected net benefits of control under structured uncertainty, it also leads to the policy that maximizes robustness to unstructured uncertainty.

  17. Marginal Matter

    NASA Astrophysics Data System (ADS)

    van Hecke, Martin

    2013-03-01

    All around us, things are falling apart. The foam on our cappuccinos appears solid, but gentle stirring irreversibly changes its shape. Skin, a biological fiber network, is firm when you pinch it, but soft under light touch. Sand mimics a solid when we walk on the beach but a liquid when we pour it out of our shoes. Crucially, a marginal point separates the rigid or jammed state from the mechanical vacuum (freely flowing) state - at their marginal points, soft materials are neither solid nor liquid. Here I will show how the marginal point gives birth to a third sector of soft matter physics: intrinsically nonlinear mechanics. I will illustrate this with shock waves in weakly compressed granular media, the nonlinear rheology of foams, and the nonlinear mechanics of weakly connected elastic networks.

  18. 48 CFR 16.204 - Fixed-price incentive contracts.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... establishing the final contract price by a formula based on the relationship of final negotiated total cost to total target cost. Fixed-price incentive contracts are covered in subpart 16.4, Incentive Contracts....

  19. Marginality principle

    Technology Transfer Automated Retrieval System (TEKTRAN)

    Soil is a fragile resource supplying many goods and services. Given the diversity of soil across the world and within a landscape, there are many different capacities among soils to provide the basic soil functions. Marginality of soils is a difficult process to define because the metrics to define ...

  20. Pricing effects on food choices.

    PubMed

    French, Simone A

    2003-03-01

    Individual dietary choices are primarily influenced by such considerations as taste, cost, convenience and nutritional value of foods. The current obesity epidemic has been linked to excessive consumption of added sugars and fat, as well as to sedentary lifestyles. Fat and sugar provide dietary energy at very low cost. Food pricing and marketing practices are therefore an essential component of the eating environment. Recent studies have applied economic theories to changing dietary behavior. Price reduction strategies promote the choice of targeted foods by lowering their cost relative to alternative food choices. Two community-based intervention studies used price reductions to promote the increased purchase of targeted foods. The first study examined lower prices and point-of-purchase promotion on sales of lower fat vending machine snacks in 12 work sites and 12 secondary schools. Price reductions of 10%, 25% and 50% on lower fat snacks resulted in an increase in sales of 9%, 39% and 93%, respectively, compared with usual price conditions. The second study examined the impact of a 50% price reduction on fresh fruit and baby carrots in two secondary school cafeterias. Compared with usual price conditions, price reductions resulted in a four-fold increase in fresh fruit sales and a two-fold increase in baby carrot sales. Both studies demonstrate that price reductions are an effective strategy to increase the purchase of more healthful foods in community-based settings such as work sites and schools. Results were generalizable across various food types and populations. Reducing prices on healthful foods is a public health strategy that should be implemented through policy initiatives and industry collaborations.

  1. Prices paid for adult and paediatric antiretroviral treatment by low- and middle-income countries in 2012: high, low or just right?

    PubMed

    Perriëns, Joseph H; Habiyambere, Vincent; Dongmo-Nguimfack, Boniface; Hirnschall, Gottfried

    2014-01-01

    A viable market for antiretroviral drugs in low- and middle-income countries is key to the continued scale-up of antiretroviral treatment. We describe the price paid by low- and middle-income countries for 10 first- and 7 second-line adult and paediatric treatment regimens from 2003 to 2012, and compare the price of their finished formulations with the price of their active pharmaceutical ingredients in 2005, 2007, 2010 and 2012. Between 2003 and 2012 the median price of adult first-line treatment regimens per treatment-year decreased from USD499 to USD122, and that of second-line regimens from USD2,934 to USD497. In 2005 adult formulations were sold for a price 170% higher than the cost of their active pharmaceutical ingredients. This margin had decreased to 28% in 2012. Between 2004 and 2013, the price of paediatric treatment per treatment-year decreased from USD585 to USD147 for first-line and from USD763 to USD288 for second-line treatment. In 2005, paediatric treatment regimens were sold at a price 231% higher than the cost of their active pharmaceutical ingredients. This margin remained high and was 195% in 2012. The prices paid for antiretroviral drugs by low- and middle-income countries decreased between 2003 and 2012. Although the margins on their sale decreased, there is likely still space for price reduction, especially for the more recent World Health Organization recommended adult first-line regimens and for paediatric treatment.

  2. 48 CFR 15.402 - Pricing policy.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... adequate price competition, except as provided by 15.403-3(b). (ii) Data other than certified cost or... officers shall— (a) Purchase supplies and services from responsible sources at fair and reasonable prices. In establishing the reasonableness of the offered prices, the contracting officer— (1) Shall...

  3. The Economics of Professional Journal Pricing.

    ERIC Educational Resources Information Center

    Stoller, Michael A.; And Others

    1996-01-01

    Evaluates the literature on journal pricing that emphasizes three types of price discrimination practiced by publishers. Concludes that the monopoly power of commercial publishers and a third party payment system are the cause of increasing journal costs. Recommends incentives to journal users, adoption of equitable pricing systems, and employing…

  4. Transmission access and pricing with multiple separate energy forward markets

    SciTech Connect

    Gribik, P.R.; Angelidis, G.A.; Kovacs, R.R.

    1999-08-01

    California`s congestion management protocols provide comparable access and prices to all users of the transmission system (power exchange and bilateral contract parties). The users implicitly bid for capacity on major transmission paths between zones. The Independent System Operator (ISO) allocates the available transmission capacity on these paths so that it maximizes the value of this capacity as measured by the users` bids. Everyone scheduling flow on a congested path is charged the marginal-cost-based price for using the path. The ISO keeps each party`s portfolio of generation and load individually in balance when adjusting schedules to relieve congestion on interzonal paths. By keeping the portfolios of the different parties separate, the ISO clears its transmission market without arranging energy trades between parties. Parties are responsible for arranging their own trades. The ISO does not become involved in the energy forward markets.

  5. Abatement costs of soil conservation in China's Loess Plateau: balancing income with conservation in an agricultural system.

    PubMed

    Hou, Lingling; Hoag, Dana L K; Keske, Catherine M H

    2015-02-01

    This study proposes the use of marginal abatement cost curves to calculate environmental damages of agricultural systems in China's Loess Plateau. Total system costs and revenues, management characteristics and pollution attributes are imputed into a directional output distance function, which is then used to determine shadow prices and abatement cost curves for soil and nitrogen loss. Marginal abatement costs curves are an effective way to compare economic and conservation tradeoffs when field-specific data are scarce. The results show that sustainable agricultural practices can balance soil conservation and agricultural production; land need not be retired, as is current policy.

  6. 48 CFR 15.407-3 - Forward pricing rate agreements.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... initial contract or for a contract modification. (See the Certificate of Current Cost or Pricing Data at... rate agreements. (a) When certified cost or pricing data are required, offerors are required to... apply and to identify the latest cost or pricing data already submitted in accordance with the FPRA....

  7. 48 CFR 15.404-3 - Subcontract pricing considerations.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... solicitation. (4) Subcontractor certified cost or pricing data shall be current, accurate, and complete as of... specified on the contractor's Certificate of Current Cost or Pricing Data. The contractor shall update... reasonable price for the prime contract, including subcontracting costs. The contracting officer...

  8. 48 CFR 15.404-3 - Subcontract pricing considerations.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... submit certified cost or pricing data also shall obtain and analyze certified cost or pricing data before... not relieve the contracting officer from the responsibility to analyze the contractor's submission, including subcontractor's certified cost or pricing data. (b) The prime contractor or subcontractor...

  9. Economic analysis of the water demand in the hotels and restaurants sector: Shadow prices and elasticities

    NASA Astrophysics Data System (ADS)

    Angulo, Ana; Atwi, Majed; Barberán, Ramón; Mur, Jesús

    2014-08-01

    Despite the growing economic importance of tourism, and its impact on relative water shortage, little is known about the role that water plays in the productive process of hotels and restaurants and, therefore, the possible implications of water demand management policy for this sector. This study aims to fill this gap. It is based on the microdata of 676 firms in the sector, operating in the city of Zaragoza (Spain) for a 12 year period. Based on the Translog cost function, we estimate the shadow price of water in the short run and, from a long-run perspective, its direct price elasticity, its cross elasticities relative to labor, capital, and supplies, and its elasticity with respect to the level of output. The results obtained show that water provides sector firms returns that are on average higher than its price, although in the case of hotels the margin is really narrow. This situation provides policy makers with a margin for applying price increases without affecting the sector's viability, with some caution in the case of hotels. Water demand elasticity equals -0.38 in the case of hotels, but it is not significant in the case of restaurants and bar-cafes; hence, only in hotels is there potential for influencing water use patterns, encouraging the resource's conservation through pricing policy. Moreover, capital is a substitutive factor of water, and the elasticity of water with respect to output is 0.40, all of which should also be considered by policy makers in water resource management.

  10. Surviving in the age of price transparency.

    PubMed

    Donovan, Christopher J; Mazoh, Margery; Brown, James P; Moore, Sarah; Skalka, Christi

    2008-10-01

    *Healthcare organizations can develop a value-based pricing strategy that benefits both patients and the organization. *The value-based pricing strategy of the Cleveland Clinic is based on five key components of value-relationship to cost, payment considerations, quality, market tolerance, and consistency. *Seven interrelated work streams can be used to align pricing inputs around the five components of value-based pricing.

  11. Enhancing medicine price transparency through price information mechanisms

    PubMed Central

    2014-01-01

    Background Medicine price information mechanisms provide an essential tool to countries that seek a better understanding of product availability, market prices and price compositions of individual medicines. To be effective and contribute to cost savings, these mechanisms need to consider prices in their particular contexts when comparing between countries. This article discusses in what ways medicine price information mechanisms can contribute to increased price transparency and how this may affect access to medicines for developing countries. Methods We used data collected during the course of a WHO project focusing on the development of a vaccine price and procurement information mechanism. The project collected information from six medicine price information mechanisms and interviewed data managers and technical experts on key aspects as well as observed market effects of these mechanisms. The reviewed mechanisms were broken down into categories including objective and target audience, as well as the sources, types and volumes of data included. Information provided by the mechanisms was reviewed according to data available on medicine prices, product characteristics, and procurement modalities. Results We found indications of positive effects on access to medicines resulting from the utilization of the reviewed mechanisms. These include the uptake of higher quality medicines, more favorable results from contract negotiations, changes in national pricing policies, and the decrease of prices in certain segments for countries participating in or deriving data from the various mechanisms. Conclusion The reviewed mechanisms avoid the methodological challenges observed for medicine price comparisons that only use national price databases. They work with high quality data and display prices in the appropriate context of procurement modalities as well as the peculiarities of purchasing countries. Medicine price information mechanisms respond to the need for increased

  12. Sticker shock at the hospital. Freed from reins of managed care, hospitals accelerate price hikes for fourth consecutive year; blame placed on staffing, tech costs.

    PubMed

    Jaklevic, Mary Chris

    2003-01-20

    Free from the shackles of managed care, the nation's hospitals boosted prices for the fourth consecutive year, according to a new report released by the government last week. David Cyganowski, left, a managing director at Salomon Smith Barney, says if taxes on dividends are wiped out, hospitals could be confronted with higher long-term interest rates.

  13. Pricing Mechanism Design for Centralized Pollutant Treatment with SME Alliances

    PubMed Central

    Li, Yuyu; Huang, Bo; Tao, Fengming

    2016-01-01

    In this paper, we assume that a professional pollutant treatment enterprise treats all of the pollutants emitted by multiple small and medium-sized enterprises (SMEs). In order to determine the treatment price, SMEs can bargain with the pollutant treatment enterprise individually, or through forming alliances. We propose a bargaining game model of centralized pollutant treatment to study how the pollutant treatment price is determined through negotiation. Then, we consider that there is a moral hazard from SMEs in centralized pollutant treatment; in other words, they may break their agreement concerning their quantities of production and pollutant emissions with the pollutant treatment enterprise. We study how the pollutant treatment enterprise can prevent this by pricing mechanism design. It is found that the pollutant treatment enterprise can prevent SMEs’ moral hazard through tiered pricing. If the marginal treatment cost of the pollutant treatment enterprise is a constant, SMEs could bargain with the pollutant treatment enterprise individually, otherwise, they should form a grand alliance to bargain with it as a whole. PMID:27338440

  14. Pricing Mechanism Design for Centralized Pollutant Treatment with SME Alliances.

    PubMed

    Li, Yuyu; Huang, Bo; Tao, Fengming

    2016-06-22

    In this paper, we assume that a professional pollutant treatment enterprise treats all of the pollutants emitted by multiple small and medium-sized enterprises (SMEs). In order to determine the treatment price, SMEs can bargain with the pollutant treatment enterprise individually, or through forming alliances. We propose a bargaining game model of centralized pollutant treatment to study how the pollutant treatment price is determined through negotiation. Then, we consider that there is a moral hazard from SMEs in centralized pollutant treatment; in other words, they may break their agreement concerning their quantities of production and pollutant emissions with the pollutant treatment enterprise. We study how the pollutant treatment enterprise can prevent this by pricing mechanism design. It is found that the pollutant treatment enterprise can prevent SMEs' moral hazard through tiered pricing. If the marginal treatment cost of the pollutant treatment enterprise is a constant, SMEs could bargain with the pollutant treatment enterprise individually, otherwise, they should form a grand alliance to bargain with it as a whole.

  15. 48 CFR 1852.216-83 - Fixed price incentive.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Price Incentive (OCT 1996) The target cost of this contract is $___. The Target profit of this contract is $___. The target price (target cost plus target profit) of this contract is $___. The cost sharing for target cost underruns is: Government ___percent; Contractor ___percent. The cost sharing...

  16. Definition of scarcity-based water pricing policies through hydro-economic stochastic programming

    NASA Astrophysics Data System (ADS)

    Macian-Sorribes, Hector; Pulido-Velazquez, Manuel; Tilmant, Amaury

    2014-05-01

    One of the greatest current issues in integrated water resources management is to find and apply efficient and flexible management policies. Efficient management is needed to deal with increased water scarcity and river basin closure. Flexible policies are required to handle the stochastic nature of the water cycle. Scarcity-based pricing policies are one of the most promising alternatives, which deal not only with the supply costs, but also consider the opportunity costs associated with the allocation of water. The opportunity cost of water, which varies dynamically with space and time according to the imbalances between supply and demand, can be assessed using hydro-economic models. This contribution presents a procedure to design a pricing policy based on hydro-economic modelling and on the assessment of the Marginal Resource Opportunity Cost (MROC). Firstly, MROC time series associated to the optimal operation of the system are derived from a stochastic hydro-economic model. Secondly, these MROC time series must be post-processed in order to combine the different space-and-time MROC values into a single generalized indicator of the marginal opportunity cost of water. Finally, step scarcity-based pricing policies are determined after establishing a relationship between the MROC and the corresponding state of the system at the beginning of the time period (month). The case study of the Mijares river basin (Spain) is used to illustrate the method. It consists in two reservoirs in series and four agricultural demand sites currently managed using historical (XIVth century) rights. A hydro-economic model of the system has been built using stochastic dynamic programming. A reoptimization procedure is then implemented using SDP-derived benefit-to-go functions and historical flows to produce the time series of MROC values. MROC values are then aggregated and a statistical analysis is carried out to define (i) pricing policies and (ii) the relationship between MROC and

  17. Food prices and blood cholesterol.

    PubMed

    Rahkovsky, Ilya; Gregory, Christian A

    2013-01-01

    Cardiovascular diseases (CVD) cost Americans billions of dollars per year. High cholesterol levels, which are closely related to dietary habits, are a major contributor to CVD. In this article, we study whether changes in food prices are related to cholesterol levels and whether taxes or subsidies on particular foods would be effective in lowering cholesterol levels and, consequently, CVD costs. We find that prices of vegetables, processed foods, whole milk and whole grains are significantly associated with blood cholesterol levels. Having analyzed the costs and benefits of government interventions, we find that a subsidy of vegetables and whole grains would be an efficient way to reduce CVD expenditures.

  18. Trends in College Pricing, 2001.

    ERIC Educational Resources Information Center

    College Board, Washington, DC. Washington Office.

    This report presents data on college costs from the College Board's Annual Survey of Colleges for the 2001-2002 academic year, as well as trends in costs for the past 30 years and analyses of college prices in relation to family income and available financial aid. Data include: (1) average fixed charges for undergraduates (tuition and fees and…

  19. 5 CFR 591.213 - What prices does OPM collect?

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ...-business prices, or area-wide distress sale prices. (2) OPM prices automobiles at dealers and obtains the... items, such as health insurance and K-12 education, based on employee usage of the item. For example, OPM estimates health insurance prices based on the employee's share of the premium costs and...

  20. 5 CFR 591.213 - What prices does OPM collect?

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ...-business prices, or area-wide distress sale prices. (2) OPM prices automobiles at dealers and obtains the... items, such as health insurance and K-12 education, based on employee usage of the item. For example, OPM estimates health insurance prices based on the employee's share of the premium costs and...

  1. 5 CFR 591.213 - What prices does OPM collect?

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ...-business prices, or area-wide distress sale prices. (2) OPM prices automobiles at dealers and obtains the... items, such as health insurance and K-12 education, based on employee usage of the item. For example, OPM estimates health insurance prices based on the employee's share of the premium costs and...

  2. 5 CFR 591.213 - What prices does OPM collect?

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ...-business prices, or area-wide distress sale prices. (2) OPM prices automobiles at dealers and obtains the... items, such as health insurance and K-12 education, based on employee usage of the item. For example, OPM estimates health insurance prices based on the employee's share of the premium costs and...

  3. Manufacturing Cost Levelization Model – A User’s Guide

    SciTech Connect

    Morrow, William R.; Shehabi, Arman; Smith, Sarah Josephine

    2015-08-01

    The Manufacturing Cost Levelization Model is a cost-performance techno-economic model that estimates total large-scale manufacturing costs for necessary to produce a given product. It is designed to provide production cost estimates for technology researchers to help guide technology research and development towards an eventual cost-effective product. The model presented in this user’s guide is generic and can be tailored to the manufacturing of any product, including the generation of electricity (as a product). This flexibility, however, requires the user to develop the processes and process efficiencies that represents a full-scale manufacturing facility. The generic model is comprised of several modules that estimate variable costs (material, labor, and operating), fixed costs (capital & maintenance), financing structures (debt and equity financing), and tax implications (taxable income after equipment and building depreciation, debt interest payments, and expenses) of a notional manufacturing plant. A cash-flow method is used to estimate a selling price necessary for the manufacturing plant to recover its total cost of production. A levelized unit sales price ($ per unit of product) is determined by dividing the net-present value of the manufacturing plant’s expenses ($) by the net present value of its product output. A user defined production schedule drives the cash-flow method that determines the levelized unit price. In addition, an analyst can increase the levelized unit price to include a gross profit margin to estimate a product sales price. This model allows an analyst to understand the effect that any input variables could have on the cost of manufacturing a product. In addition, the tool is able to perform sensitivity analysis, which can be used to identify the key variables and assumptions that have the greatest influence on the levelized costs. This component is intended to help technology researchers focus their research attention on tasks

  4. Reference pricing and firms' pricing strategies.

    PubMed

    Miraldo, Marisa

    2009-01-01

    Within a horizontal differentiation model and allowing for heterogeneous qualities, we analyze the effects of reference pricing reimbursement on firms' pricing strategies. With this analysis we find inherent incentives for firms' pricing behavior, and consequently we shed some light on the time consistency of such policy. The analysis encompasses different reference price rules: (i) reference price as the minimum of the observed prices in the market, (ii) reference price as a linear combination of firms' prices. Results show that under the "minimum policy" firms are not able to coordinate on higher prices while the "linear policy", implicitly, provides a coordination device. We have also found that, relatively to the "linear policy", when the reference price is the minimum of observed prices, after policy implementation, total and private expenditures are higher and consumer surplus and firms' profits are lower. With quality differentiation both the minimum and linear policies unambiguously lead to higher prices.

  5. Non-equilibrium price theories

    NASA Astrophysics Data System (ADS)

    Helbing, Dirk; Kern, Daniel

    2000-11-01

    We propose two theories for the formation of stock prices under the condition that the number of available stocks is fixed. Both theories consider the balance equations for cash and several kinds of stocks. They also take into account interest rates, dividends, and transaction costs. The proposed theories have the advantage that they do not require iterative procedures to determine the price, which would be inefficient for simulations with many agents.

  6. Patents and profits: A disparity of manufacturing margins in the tenofovir value chain.

    PubMed

    Walwyn, David

    2013-03-01

    Registered in 2001, tenofovir disoproxil fumarate (TDF) has quickly become a mainstay of first line regimens for the treatment of HIV. Initially only available in developed countries at a cost of US$5 000 per person per year (ppy), Gilead's Access Programme (GAP) has extended the use of the product to 2.4 million patients in low and middle income countries. The programme has two components: distribution of the branded product at reduced prices and licensing partnerships with generic manufacturers. The licensing partnerships now supply 75% of the market by volume, at a treatment cost of US$57 ppy (1% of the branded cost). From Gilead's perspective, GAP must be considered a huge success. It has enabled the company to maintain high prices in developed countries whilst reducing its input costs and deflecting criticism of its failure to provide essential medicines for the poor, hence risking the possibility of compulsory licensing. Over the period 2001 to 2011, TDF in its various forms has generated for Gilead more than US$31 billion revenue at a gross margin of 80%, equivalent to a gross profit of US$25 billion. Analysis of the TDF value chain, from preparation of the active pharmaceutical ingredient (API) to sale of the formulated product, shows that manufacturing margins are highly skewed in favour of the originator, with the latter's profit being US$3.2 billion vs. US$4 million for API manufacturers and US$39 million for formulators (2011). The data argues for a more rational approach to drug pricing including possible regulation in developed countries and more sustainable margins for the generic producers.

  7. The Price-Concentration Relationship in Early Residential Solar Third-Party Markets

    SciTech Connect

    Pless, Jacquelyn; Langheim, Ria; Machak, Christina; Hellow, Henar; Sigrin, Ben

    2017-01-01

    firms charged higher prices in more competitive markets in our sample. The finding is robust across multiple definitions of firm concentration. There are at least two potential explanations for our findings. First, firms could be conducting entry deterrence strategies. It is possible that firms are acting in a non-competitive way and setting prices lower than they would be otherwise. Setting low prices that are below potential competitors' marginal costs could deter entrants and ensure a larger market share. Second, there could be a group of dominant firms (with a competitive fringe), and the dominant firms may occasionally engage in price wars. If this is true, prices should be lower in more concentrated markets during the price wars (Salinger, 1990). As the rooftop PV market continues to grow, market structure will remain a relevant policy issue in consideration of the potential for rooftop solar to contribute to de-carbonization efforts or other policy objectives. This paper adds to a growing emphasis on understanding supply-side factors in scaling up solar markets in the residential sector. Generally, solar markets have become more competitive over the same time period that solar technology costs decreased. While solar system hard costs have come down, our research suggests that total costs are more nuanced in early solar system TPO markets. Policymakers should consider these findings when designing markets, and have the data needed to make informed decisions.

  8. Cost-effectiveness of controlling emissions for various alternative-fuel vehicle types, with vehicle and fuel price subsidies estimated on the basis of monetary values of emission reductions

    SciTech Connect

    Wang, M.Q.

    1993-12-31

    Emission-control cost-effectiveness is estimated for ten alternative-fuel vehicle (AFV) types (i.e., vehicles fueled with reformulated gasoline, M85 flexible-fuel vehicles [FFVs], M100 FFVs, dedicated M85 vehicles, dedicated M100 vehicles, E85 FFVS, dual-fuel liquefied petroleum gas vehicles, dual-fuel compressed natural gas vehicles [CNGVs], dedicated CNGVs, and electric vehicles [EVs]). Given the assumptions made, CNGVs are found to be most cost-effective in controlling emissions and E85 FFVs to be least cost-effective, with the other vehicle types falling between these two. AFV cost-effectiveness is further calculated for various cases representing changes in costs of vehicles and fuels, AFV emission reductions, and baseline gasoline vehicle emissions, among other factors. Changes in these parameters can change cost-effectiveness dramatically. However, the rank of the ten AFV types according to their cost-effectiveness remains essentially unchanged. Based on assumed dollars-per-ton emission values and estimated AFV emission reductions, the per-vehicle monetary value of emission reductions is calculated for each AFV type. Calculated emission reduction values ranged from as little as $500 to as much as $40,000 per vehicle, depending on AFV type, dollar-per-ton emission values, and baseline gasoline vehicle emissions. Among the ten vehicle types, vehicles fueled with reformulated gasoline have the lowest per-vehicle value, while EVs have the highest per-vehicle value, reflecting the magnitude of emission reductions by these vehicle types. To translate the calculated per-vehicle emission reduction values to individual AFV users, AFV fuel or vehicle price subsidies are designed to be equal to AFV emission reduction values. The subsidies designed in this way are substantial. In fact, providing the subsidies to AFVs would change most AFV types from net cost increases to net cost decreases, relative to conventional gasoline vehicles.

  9. 48 CFR 30.606 - Resolving cost impacts.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... contract cost ceilings or target costs on flexibly-priced contracts. In such cases, the CFAO shall limit... costs on flexibly-priced contracts. In such cases, the CFAO shall limit any upward contract price...-priced contracts. In such cases, the CFAO shall limit any upward contract price adjustments to...

  10. Mental Depreciation and Marginal Decision Making

    PubMed

    Heath; Fennema

    1996-11-01

    We propose that individuals practice "mental depreciation," that is, they implicitly spread the fixed costs of their expenses over time or use. Two studies explore how people spread fixed costs on durable goods. A third study shows that depreciation can lead to two distinct errors in marginal decisions: First, people sometimes invest too much effort to get their money's worth from an expense (e.g., they may use a product a lot to spread the fixed expense across more uses). Second, people sometimes invest too little effort to get their money's worth: When people add a portion of the fixed cost to the current costs, their perceived marginal (i.e., incremental) costs exceed their true marginal costs. In response, they may stop investing because their perceived costs surpass the marginal benefits they are receiving. The latter effect is supported by two field studies that explore real board plan decisions by university students.

  11. A New Thermostat for Real-Time Price Demand Response: Cost, Comfort and Energy Impacts of Discrete-Time Control without Deadband

    SciTech Connect

    Chassin, David P.; Stoustrup, Jakob; Agathoklis, Pan; Djilali, Ned

    2015-10-01

    This paper presents a residential thermostat design that enables accurate aggregate load control systems for electricity demand response. The thermostat features a control strategy that can be modeled as a linear time-invariant system for short- term demand response signals from the utility. This control design maintains the same comfort and demand response characteristics of existing real-time price- responsive thermostats but gives rise to linear time-invariant models of aggregate load control and demand response, which facilitates the design of highly accurate load-based regulation services for electricity interconnections.

  12. Pricing strategies in inelastic energy markets: can we use less if we can't extract more?

    NASA Astrophysics Data System (ADS)

    Voinov, Alexey; Filatova, Tatiana

    2014-03-01

    Limited supply of nonrenewable energy resources under growing energy demand creates a situation when a marginal change in the quantity supplied or demanded causes non-marginal swings in price levels. The situation is worsened by the fact that we are currently running out of cheap energy resources at the global scale while adaptation to climate change requires extra energy costs. It is often argued that technology and alternative energy will be a solution. However, alternative energy infrastructure also requires additional energy investments, which can further increase the gap between energy demand and supply. This paper presents an explorative model that demonstrates that a smooth transition from an oil-based economy to alternative energy sources is possible only if it is started well in advance while fossil resources are still abundant. Later the transition looks much more dramatic and it becomes risky to rely entirely on technological solutions. It becomes increasingly likely that in addition to technological solutions that can increase supply we will need to find ways to decrease demand and consumption. We further argue that market mechanisms can be just as powerful tools to curb demand as they have traditionally been for stimulating consumption. We observe that individuals who consume more energy resources benefit at the expense of those who consume less, effectively imposing price externalities on the latters. We suggest two transparent and flexible methods of pricing that attempt to eliminate price externalities on energy resources. Such pricing schemes stimulate less consumption and can smooth the transition to renewable energy.

  13. Determining Price Reasonableness in Federal ESPCs

    SciTech Connect

    Shonder, J.A.

    2005-03-08

    This document reports the findings and implementation recommendations of the Price Reasonableness Working Group to the Federal ESPC Steering Committee. The working group was formed to address concerns of agencies and oversight organizations related to pricing and fair and reasonable price determination in federal energy savings performance contracts (ESPCs). This report comprises the working group's recommendations and is the proposed draft of a training curriculum on fair and reasonable price determination for users of federal ESPCs. The report includes: (1) A review of federal regulations applicable to determining price reasonableness of federal ESPCs (section 2), (2) Brief descriptions of the techniques described in Federal Acquisition Regulations (FAR) 15.404-1 and their applicability to ESPCs (section 3), and (3) Recommended strategies and procedures for cost-effectively completing price reasonableness determinations (sections 4). Agencies have struggled with fair and reasonable price determinations in their ESPCs primarily because this alternative financing vehicle is relatively new and relatively rare in the federal sector. The methods of determining price reasonableness most familiar to federal contracting officers (price competition based on the government's design and specifications, in particular) are generally not applicable to ESPCs. The regulatory requirements for determining price reasonableness in federal ESPCs have also been misunderstood, as federal procurement professionals who are inexperienced with ESPCs are further confused by multiple directives, including Executive Order 13123, which stresses life-cycle cost-effectiveness. Uncertainty about applicable regulations and inconsistent practice and documentation among agencies have fueled claims that price reasonableness determinations have not been sufficiently rigorous in federal ESPCs or that the prices paid in ESPCs are generally higher than the prices paid for similar goods and services

  14. The health of safety net hospitals following Massachusetts health care reform: changes in volume, revenue, costs, and operating margins from 2006 to 2009.

    PubMed

    Mohan, Arun; Grant, Jennifer; Batalden, Maren; McCormick, Danny

    2013-01-01

    Massachusetts health care reform, designed to expand coverage and access to care for vulnerable populations, serves as the model for national health reform in the United States that will be implemented in 2014. Yet, little is known about how the reform may have affected the demand for and the financial performance of safety net hospitals (SNH), the primary source of care for such populations before the reform. Using a quasi-experimental design that included all acute care hospitals in the state, we calculated changes in mean inpatient and outpatient volumes, revenue, and operating margins at SNH from the pre-reform (Fiscal Year 2006) to the post-reform (Fiscal Year 2009) period. We contrasted these changes with contemporaneous changes occurring among non-safety net hospitals (NSNH) using a difference-in-differences approach. We found that SNH in Massachusetts continue to play a disproportionately large role in caring for disadvantaged patients after reform, but that their financial performance has declined considerably compared with NSNH. Ongoing reform efforts in the United States should account for continued SNH demand among the most vulnerable patients and should be designed so as not to undermine the financial stability of SNH that meet this demand.

  15. External referencing and pharmaceutical price negotiation.

    PubMed

    Garcia Mariñoso, Begoña; Jelovac, Izabela; Olivella, Pau

    2011-06-01

    External referencing (ER) imposes a price cap for pharmaceuticals, based on prices of identical or comparable products in foreign countries. Suppose a foreign country (F) negotiates prices with a pharmaceutical firm, whereas a home country (H) can either negotiate prices independently or implement ER, based on the foreign price. We show that country H prefers ER if copayments in H are relatively high. This preference is reinforced when H's population is small. Irrespective of relative country sizes, ER by country H harms country F. Our model is inspired by the wide European experience with this cost-containment policy. Namely, in Europe, drug authorization and price negotiations are carried out by separate agencies. We confirm our main results in two extensions. The first one allows for therapeutic competition between drugs. In the second one, drug authorization and price negotiation take place in a single agency.

  16. 48 CFR 15.403-1 - Prohibition on obtaining certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... demonstrates that the proposed price is reasonable in comparison with current or recent prices for the same or... provided the total price of all such modifications under a particular contract action does not exceed the... total price of the contract at the time of contract award. (C) For acquisitions funded by DoD, NASA,...

  17. 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.

  18. [Drug prices: how they are established and existing price control systems].

    PubMed

    Rovira Forns, Joan

    2015-03-01

    Price is one of the main barriers of access to medicines. It is therefore important to understand how prices are formed and what factors determine the amount, as well as what interventions and regulations are the most appropriate considering their effects on access, innovation, local production and other potential objectives of drug policy. Economic analysis has developed a set of market models that can explain the behavior of prices, although actual markets diverge substantially from the theoretical models. Price regulation is justified by the so-called "market failures." Price regulation based on the cost of production, the most traditional form of price control, has fallen into disuse in favor of systems of international reference pricing and value-based pricing.

  19. Transit pricing and performance

    SciTech Connect

    Pickerell, D.H.; Abkowitz, M.; Tozzi, J.; McCord, M.R.; Cheng, L.H.

    1986-01-01

    The 9 papers in the report deal with the following areas: Federal operating assistance for urban mass transit; a decade of experience; transit route characteristics and headway-based reliability control; day-of-week and part-of-month variation in bus ridership; job satisfaction and transit operator recognition programs; results of a survey of muni operators; bus marketing costs: the experience of 18 section 15 reporters from 1981 to 1983; prospects for differential transit pricing in the United States; an initial analysis of total factor productivity for public-transit coordination of transportation resources: the Georgia experience; absenteeism, accidents, and attrition: part-time versus full-time bus drivers.

  20. Price regulation and generic competition in the pharmaceutical market.

    PubMed

    Dalen, Dag Morten; Strøm, Steinar; Haabeth, Tonje

    2006-09-01

    In March 2003 the Norwegian government implemented yardstick-based price regulation schemes on a selection of drugs subjected to generic competition. The retail price cap, termed the "index price," on a drug (chemical substance) was set equal to the average of the three lowest producer prices on that drug, plus a fixed wholesale and retail margin. This is supposed to lower barriers of entry for generic drugs and to trigger price competition. Using monthly data over the period 1998-2004 for the six drugs (chemical entities) included in the index price system, we estimate a structural model enabling us to examine the impact of the reform on both demand and market power. Our results suggest that the index price helped to increase the market shares of generic drugs and succeeded in triggering price competition.

  1. Price Discrimination, Economies of Scale, and Profits.

    ERIC Educational Resources Information Center

    Park, Donghyun

    2000-01-01

    Demonstrates that it is possible for economies of scale to induce a price-discriminating monopolist to sell in an unprofitable market where the average cost always exceeds the price. States that higher profits in the profitable market caused by economies of scale may exceed losses incurred in the unprofitable market. (CMK)

  2. Retrospective Evaluation of Appliance Price Trends

    SciTech Connect

    Dale, Larry; Antinori, Camille; McNeil, Michael; McMahon, James E.; Fujita, K. Sydny

    2008-07-20

    Real prices of major appliances (refrigerators, dishwashers, heating and cooling equipment) have been falling since the late 1970s despite increases in appliance efficiency and other quality variables. This paper demonstrates that historic increases in efficiency over time, including those resulting from minimum efficiency standards, incur smaller price increases than were expected by Department of Energy (DOE) forecasts made in conjunction with standards. This effect can be explained by technological innovation, which lowers the cost of efficiency, and by market changes contributing to lower markups and economies of scale in production of higher efficiency units. We reach four principal conclusions about appliance trends and retail price setting: 1. For the past several decades, the retail price of appliances has been steadily falling while efficiency has been increasing. 2. Past retail price predictions made by DOE analyses of efficiency standards, assuming constant prices over time, have tended to overestimate retail prices. 3. The average incremental price to increase appliance efficiency has declined over time. DOE technical support documents have typically overestimated this incremental price and retail prices. 4. Changes in retail markups and economies of scale in production of more efficient appliances may have contributed to declines in prices of efficient appliances.

  3. Oil prices in a new light

    SciTech Connect

    Fesharaki, F. )

    1994-05-01

    For a clear picture of how oil prices develop, the author steps away from the price levels to which the world is accustomed, and evaluates scientifically. What makes prices jump from one notch to another The move results from a political or economic shock or the perception of a particular position by the futures market and the media. The shock could range from a war or an assassination to a promise of cooperation among OPEC members (when believed by the market) or to speculation about another failure at an OPEC meeting. In the oil market, only a couple of factual figures can provide a floor to the price of oil. The cost of production of oil in the Gulf is around $2 to $3/bbl, and the cost of production of oil (capital and operating costs) in key non-OPEC areas is well under $10/bbl. With some adjustments for transport and quality, a price range of $13/bbl to $16/bbl would correspond to a reasonable sustainable floor price. The reason for prices above the floor price has been a continuous fear of oil supply interruptions. That fear kept prices above the floor price for many years. The fear factor has now almost fully disappeared. The market has gone through the drama of the Iranian Revolution, the Iran-Iraq war, the tanker war, the invasion of Kuwait, and the expulsions of the Iraqis. And still the oil flowed -- all the time. It has become abundantly clear that fears above the oil market were unjustified. Everyone needs to export oil, and oil will flow under the worst circumstances. The demise of the fear factor means that oil prices tend toward the floor price for a prolonged period.

  4. Optimising multi-product multi-chance-constraint inventory control system with stochastic period lengths and total discount under fuzzy purchasing price and holding costs

    NASA Astrophysics Data System (ADS)

    Allah Taleizadeh, Ata; Niaki, Seyed Taghi Akhavan; Aryanezhad, Mir-Bahador

    2010-10-01

    While the usual assumptions in multi-periodic inventory control problems are that the orders are placed at the beginning of each period (periodic review) or depending on the inventory level they can happen at any time (continuous review), in this article, we relax these assumptions and assume that the periods between two replenishments of the products are independent and identically distributed random variables. Furthermore, assuming that the purchasing price are triangular fuzzy variables, the quantities of the orders are of integer-type and that there are space and service level constraints, total discount are considered to purchase products and a combination of back-order and lost-sales are taken into account for the shortages. We show that the model of this problem is a fuzzy mixed-integer nonlinear programming type and in order to solve it, a hybrid meta-heuristic intelligent algorithm is proposed. At the end, a numerical example is given to demonstrate the applicability of the proposed methodology and to compare its performance with one of the existing algorithms in real world inventory control problems.

  5. Evaluation of the Impact of Wind Generation on the Electricity Market Prices and on the Profitability of New Wind Investments

    NASA Astrophysics Data System (ADS)

    Pereira, A. J.; Saraiva, J. T.

    2012-10-01

    This paper describes a Dynamic Model of the electricity sector that can be used to simulate the evolution of some key variables on the long term, namely the evolution of the electricity price, of the demand and of the capacity factors of the technologies in the generation mix. This model can be used in different ways and by several agents, for instance to estimate the impact on the electricity price of the increasing presence of renewable power stations, namely using wind power and PV systems. In several countries these stations are paid feed-in tariffs with a fixed price but in some cases this scheme is under discussion and there are opinions that payments determined by the market price are more adequate and would bring fewer costs to final consumers. Such a change has to be carefully evaluated given that the presence of renewable stations bidding at an infra marginal price will affect the price itself. The model described in this paper can be used in a profitable way both by governmental agencies when preparing or studying alternative remuneration schemes to renewable stations or by promoters themselves to get more insight to the profitability of their investments, namely if the fixed feed-in tariffs in force in several countries are changed.

  6. Development of the household sample for furnace and boilerlife-cycle cost analysis

    SciTech Connect

    Whitehead, Camilla Dunham; Franco, Victor; Lekov, Alex; Lutz, Jim

    2005-05-31

    Residential household space heating energy use comprises close to half of all residential energy consumption. Currently, average space heating use by household is 43.9 Mbtu for a year. An average, however, does not reflect regional variation in heating practices, energy costs, or fuel type. Indeed, a national average does not capture regional or consumer group cost impacts from changing efficiency levels of heating equipment. The US Department of Energy sets energy standards for residential appliances in, what is called, a rulemaking process. The residential furnace and boiler efficiency rulemaking process investigates the costs and benefits of possible updates to the current minimum efficiency regulations. Lawrence Berkeley National Laboratory (LBNL) selected the sample used in the residential furnace and boiler efficiency rulemaking from publically available data representing United States residences. The sample represents 107 million households in the country. The data sample provides the household energy consumption and energy price inputs to the life-cycle cost analysis segment of the furnace and boiler rulemaking. This paper describes the choice of criteria to select the sample of houses used in the rulemaking process. The process of data extraction is detailed in the appendices and is easily duplicated. The life-cycle cost is calculated in two ways with a household marginal energy price and a national average energy price. The LCC results show that using an national average energy price produces higher LCC savings but does not reflect regional differences in energy price.

  7. The Static Theory of Transfer Pricing

    DTIC Science & Technology

    1975-01-01

    form of average cost is the appropriate transfer price. What happens when a firm adopts an objective other than profit maximization is further examined... profit maxi- mization. His solution has been accepted as the theoretically correct solution by apparently all authors on transfer pricing, and has become...cost has to be adjusted in terms of opportunity profits . We will further examine what happens when a firm adopts an objective other than profit

  8. 48 CFR 15.403-1 - Prohibition on obtaining certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... contracting officer; (ii) There was a reasonable expectation, based on market research or other assessment... demonstrates that the proposed price is reasonable in comparison with current or recent prices for the same...

  9. The Physics of Traffic Congestion and Road Pricing in Transportation Planning

    NASA Astrophysics Data System (ADS)

    Levinson, David

    2010-03-01

    This presentation develops congestion theory and congestion pricing theory from its micro- foundations, the interaction of two or more vehicles. Using game theory, with a two- player game it is shown that the emergence of congestion depends on the players' relative valuations of early arrival, late arrival, and journey delay. Congestion pricing can be used as a cooperation mechanism to minimize total costs (if returned to the players). The analysis is then extended to the case of the three- player game, which illustrates congestion as a negative externality imposed on players who do not themselves contribute to it. A multi-agent model of travelers competing to utilize a roadway in time and space is presented. To realize the spillover effect among travelers, N-player games are constructed in which the strategy set includes N+1 strategies. We solve the N-player game (for N = 7) and find Nash equilibria if they exist. This model is compared to the bottleneck model. The results of numerical simulation show that the two models yield identical results in terms of lowest total costs and marginal costs when a social optimum exists. Moving from temporal dynamics to spatial complexity, using consistent agent- based techniques, we model the decision-making processes of users and infrastructure owner/operators to explore the welfare consequence of price competition, capacity choice, and product differentiation on congested transportation networks. Component models include: (1) An agent-based travel demand model wherein each traveler has learning capabilities and unique characteristics (e.g. value of time); (2) Econometric facility provision cost models; and (3) Representations of road authorities making pricing and capacity decisions. Different from small-network equilibrium models in prior literature, this agent- based model is applicable to pricing and investment analyses on large complex networks. The subsequent economic analysis focuses on the source, evolution

  10. State energy price and expenditure report 1994

    SciTech Connect

    1997-06-01

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs.

  11. A Case Study of Pharmaceutical Pricing in China: Setting the Price for Off-Patent Originators.

    PubMed

    Hu, Shanlian; Zhang, Yabing; He, Jiangjiang; Du, Lixia; Xu, Mingfei; Xie, Chunyan; Peng, Ying; Wang, Linan

    2015-08-01

    This article aims to define a value-based approach to pricing and reimbursement for off-patent originators using a multiple criteria decision analysis (MCDA) approach centered on a systematic analysis of current pricing and reimbursement policies in China. A drug price policy review was combined with a quantitative analysis of China's drug purchasing database. Policy preferences were identified through a MCDA performed by interviewing well-known academic experts and industry stakeholders. The study findings indicate that the current Chinese price policy includes cost-based pricing and the establishment of maximum retail prices and premiums for off-patent originators, whereas reference pricing may be adopted in the future. The literature review revealed significant differences in the dissolution profiles between originators and generics; therefore, dissolution profiles need to be improved. Market data analysis showed that the overall price ratio of generics and off-patent originators was around 0.54-0.59 in 2002-2011, with a 40% price difference, on average. Ten differentiating value attributes were identified and MCDA was applied to test the impact of three pricing policy scenarios. With the condition of implementing quality consistency regulations and controls, a reduction in the price gap between high-quality off-patent products (including originator and generics) seemed to be the preferred policy. Patents of many drugs will expire within the next 10 years; thus, pricing will be an issue of importance for off-patent originators and generic alternatives.

  12. A parametric determination of transport aircraft price

    NASA Technical Reports Server (NTRS)

    Anderson, J. L.

    1975-01-01

    Cost per unit weight and other airframe and engine cost relations are given. Power equations representing these relations are presented for six airplane groups: general aircraft, turboprop transports, small jet transports, conventional jet transports, wide-body transports, supersonic transports, and for reciprocating, turboshaft, and turbothrust engines. Market prices calculated for a number of aircraft by use of the equations together with the aircraft characteristics are in reasonably good agreement with actual prices. Such price analyses are of value in the assessment of new aircraft devices and designs and potential research and development programs.

  13. Analysis of alternative-fuel price trajectories

    SciTech Connect

    Not Available

    1980-12-31

    Findings are presented from a study to (1) acquire, analyze, and report alternative published price projections including both oil- and coal-price trajectories, and to (2) apply the fixed-annuity formula to the updated primary source projections (Energy Information Administration; Data Resources, Inc.; and Wharton Econometric Forecasting Associates, Inc.) and to the newly acquired price projections. This report also encompasses: comparisons of key assumptions underlying the price projections, and a discussion of the applicability of the fixed-annuity formula as used in the alternative-cost calculation. Section II contains graphic presentations of all updated and newly acquired coal and oil price forecasts and the corresponding calculated annuity equivalents, tabulated presentations and discussions of each forecast and underlying assumptions, and a description of how each forecast price series was transformed into input for the present-value formulas. Section III presents the fixed-annuity formula employed and discusses its appropriateness for this application. Section IV discusses the applicability of the net present value approach for comparing alternate-fuel price trajectories. Appendix A contains a listing of contacts as potential sources of price forecasts. Appendix B contains the raw forecast data from each forecast source and the coal and oil price series derived from the raw data which were actually input into the cost calculation procedure. Appendix C contains a description and listing of the computer program developed to implement the cost calculation procedure. Finally, Appendix D contains tabulations and discussions of other alternative world crude price forecasts that were identified, but for which no corresponding coal-price projections were available. (MCW)

  14. The Pricing of British Journals for the North American Market.

    ERIC Educational Resources Information Center

    Tuttle, Marcia

    1986-01-01

    Presents an informal report of seminar entitled "Learned Journals: The Problem of Pricing and Buying Round," held in London on March 22, 1985, in attempt to answer charges of discriminatory pricing. Price differential of British scholarly journals, costs, marketing, and role of subscription agent are discussed. Seven sources are given.…

  15. 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)

  16. 25 CFR 140.22 - Inspection of traders' prices.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 25 Indians 1 2010-04-01 2010-04-01 false Inspection of traders' prices. 140.22 Section 140.22... § 140.22 Inspection of traders' prices. It is the duty of the superintendent to see that the prices... the superintendent or inspecting officials the original invoice, showing cost, together with...

  17. Cataract, cost: curious questions.

    PubMed

    Moran, D J

    1999-02-01

    An investigation of the pricing of implantable prosthetic devices in Australia reveals some alarming practices. A governmental mechanism exists to prop up the pricing of 7500 listed devices to levels that are unacceptably high by world standards. Private hospitals and doctors are able, legally, to profit by marking up the cost of these devices from the market price to this artificially inflated price. Even the open market prices of implantable prosthetic items, such as intra-ocular lenses, are high by international standards. In a time of budgetary constraint for health spending and rapidly increasing use of these devices, these issues urgently need to be addressed in Australia.

  18. 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

  19. Hospitals respond to Medicare payment shortfalls by both shifting costs and cutting them, based on market concentration.

    PubMed

    Robinson, James

    2011-07-01

    The coverage expansions planned under the Affordable Care Act are to be financed in part by slowing Medicare payment updates to hospitals, thereby reigniting the debate over whether low prices paid by public payers cause hospitals to increase prices to private insurers--a practice known as cost shifting. Recently, the Medicare Payment Advisory Commission (MedPAC) proposed an alternative explanation of hospital pricing and profitability that could be used to support policies that pressure hospitals to reduce overall costs rather than to only raise prices. This study evaluated the cost-shift and MedPAC perspectives using 2008 data on hospital margins for 30,514 Medicare and privately insured patients undergoing any of seven major procedures in markets where robust hospital competition exists and in markets where hospital care is concentrated in the hands of a few providers. The study presents empirical evidence that, faced with shortfalls between Medicare payments and projected costs, hospitals in concentrated markets focus on raising prices to private insurers, while hospitals in competitive markets focus on cutting costs. Policy makers need to examine whether efforts to promote clinical coordination through provider integration may interfere with efforts to restrain overall health care cost growth by restraining Medicare payment rates.

  20. 48 CFR 30.606 - Resolving cost impacts.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... contract cost ceilings or target costs on flexibly-priced contracts. In such cases, the CFAO shall limit... contracting officers, increase or decrease individual contract prices, including costs ceilings or target..., increase or decrease individual contract prices, including costs ceilings or target costs on...

  1. Characterizing limit order prices

    NASA Astrophysics Data System (ADS)

    Withanawasam, R. M.; Whigham, P. A.; Crack, Timothy Falcon

    2013-11-01

    A computational model of a limit order book is used to study the effect of different limit order distribution offsets. Reference prices such as same side/contra side best market prices and last traded price are considered in combination with different price offset distributions. We show that when characterizing limit order prices, varying the offset distribution only produces different behavior when the reference price is the contra side best price. Irrespective of the underlying mechanisms used in computing the limit order prices, the shape of the price graph and the behavior of the average order book profile distribution are strikingly similar in all the considered reference prices/offset distributions. This implies that existing averaging methods can cancel variabilities in limit order book shape/attributes and may be misleading.

  2. Decomposing variation in dairy profitability: the impact of output, inputs, prices, labour and management

    PubMed Central

    WILSON, P.

    2011-01-01

    SUMMARY The UK dairy sector has undergone considerable structural change in recent years, with a decrease in the number of producers accompanied by an increased average herd size and increased concentrate use and milk yields. One of the key drivers to producers remaining in the industry is the profitability of their herds. The current paper adopts a holistic approach to decomposing the variation in dairy profitability through an analysis of net margin data explained by physical input–output measures, milk price variation, labour utilization and managerial behaviours and characteristics. Data are drawn from the Farm Business Survey (FBS) for England in 2007/08 for 228 dairy enterprises. Average yields are 7100 litres/cow/yr, from a herd size of 110 cows that use 0·56 forage ha/cow/yr and 43·2 labour h/cow/yr. An average milk price of 22·57 pence per litre (ppl) produced milk output of £1602/cow/yr, which after accounting for calf sales, herd replacements and quota leasing costs, gave an average dairy output of £1516/cow/yr. After total costs of £1464/cow/yr this left an economic return of £52/cow/yr (0·73 ppl) net margin profit. There is wide variation in performance, with the most profitable (as measured by net margin per cow) quartile of producers achieving 2000 litres/cow/yr more than the least profitable quartile, returning a net margin of £335/cow/yr compared to a loss of £361/cow/yr for the least profitable. The most profitable producers operate larger, higher yielding herds and achieve a greater milk price for their output. In addition, a significantly greater number of the most profitable producers undertake financial benchmarking within their businesses and operate specialist dairy farms. When examining the full data set, the most profitable enterprises included significantly greater numbers of organic producers. The most profitable tend to have a greater reliance on independent technical advice, but this finding is not statistically significant

  3. Decomposing variation in dairy profitability: the impact of output, inputs, prices, labour and management.

    PubMed

    Wilson, P

    2011-08-01

    The UK dairy sector has undergone considerable structural change in recent years, with a decrease in the number of producers accompanied by an increased average herd size and increased concentrate use and milk yields. One of the key drivers to producers remaining in the industry is the profitability of their herds. The current paper adopts a holistic approach to decomposing the variation in dairy profitability through an analysis of net margin data explained by physical input-output measures, milk price variation, labour utilization and managerial behaviours and characteristics. Data are drawn from the Farm Business Survey (FBS) for England in 2007/08 for 228 dairy enterprises. Average yields are 7100 litres/cow/yr, from a herd size of 110 cows that use 0·56 forage ha/cow/yr and 43·2 labour h/cow/yr. An average milk price of 22·57 pence per litre (ppl) produced milk output of £1602/cow/yr, which after accounting for calf sales, herd replacements and quota leasing costs, gave an average dairy output of £1516/cow/yr. After total costs of £1464/cow/yr this left an economic return of £52/cow/yr (0·73 ppl) net margin profit. There is wide variation in performance, with the most profitable (as measured by net margin per cow) quartile of producers achieving 2000 litres/cow/yr more than the least profitable quartile, returning a net margin of £335/cow/yr compared to a loss of £361/cow/yr for the least profitable. The most profitable producers operate larger, higher yielding herds and achieve a greater milk price for their output. In addition, a significantly greater number of the most profitable producers undertake financial benchmarking within their businesses and operate specialist dairy farms. When examining the full data set, the most profitable enterprises included significantly greater numbers of organic producers. The most profitable tend to have a greater reliance on independent technical advice, but this finding is not statistically significant

  4. [Sinaloa: the geography of marginalization].

    PubMed

    Aguayo Hernandez, J R

    1993-01-01

    Sinaloa's State Population Program for 1993-98 contains the objective of promoting integration of demographic criteria into the planning process. The action program calls for establishing indicators of economic and social inequality so that conditions of poverty and margination can be identified. To further these goals, the State Population Council used data from the National Population Council project on regional inequality and municipal margination in Mexico to analyze margination at the state level. Nine indicators of educational status, housing conditions, spatial distribution, and income provide information that allows the definition of municipios and regions that should receive priority in economic and social development programs. The index of municipal margination (IMM) is a statistical summary of the nine indicators, which are based on information in the 1990 census. As of March 1990, 9.9% of Sinaloa's population over age 15 was illiterate and 37.4% had incomplete primary education. 91.0% had electricity, but 18.7% lacked indoor toilet facilities and 19.4% had no piped water. 23.7% of houses had dirt floors. 60% of households were crowded, defined as having more than two persons per bedroom. 43.5% of the state population lived in localities with fewer than 5000 inhabitants, where service delivery is difficult and costly. 55.6% of the economically active population was judged to earn less than the amount needed to satisfy essential needs. All except one municipio bordering the Pacific ocean had low or very low indicators of margination, while all those in the sierra had a medium or high degree of margination. Sinaloa's statewide IMM was eighteenth among Mexico's 32 federal entities, with Chiapas showing the highest degree of margination and the Federal District the lowest.

  5. Factors influencing global antiretroviral procurement prices

    PubMed Central

    2009-01-01

    Background Antiretroviral medicines (ARVs) are one of the most costly parts of HIV/AIDS treatment. Many countries are struggling to provide universal access to ARVs for all people living with HIV and AIDS. Although substantial price reductions of ARVs have occurred, especially between 2002 and 2008, achieving sustainable access for the next several decades remains a major challenge for most low- and middle-income countries. The objectives of the present study were twofold: first, to analyze global ARV prices between 2005 and 2008 and associated factors, particularly procurement methods and key donor policies on ARV procurement efficiency; second, to discuss the options of procurement processes and policies that should be considered when implementing or reforming access to ARV programs. Methods An ARV-medicines price-analysis was carried out using the Global Price Reporting Mechanism from the World Health Organization. For a selection of 12 ARVs, global median prices and price variation were calculated. Linear regression models for each ARV were used to identify factors that were associated with lower procurement prices. Logistic regression models were used to identify the characteristics of those countries which procure below the highest and lowest direct manufactured costs. Results Three key factors appear to have an influence on a country's ARV prices: (a) whether the product is generic or not; (b) the socioeconomic status of the country; (c) whether the country is a member of the Clinton HIV/AIDS Initiative. Factors which did not influence procurement below the highest direct manufactured costs were HIV prevalence, procurement volume, whether the country belongs to the least developed countries or a focus country of the United States President's Emergency Plan For AIDS Relief. Conclusion One of the principal mechanisms that can help to lower prices for ARV over the next several decades is increasing procurement efficiency. Benchmarking prices could be one useful

  6. Apples with apples: accounting for fuel price risk in comparisons of gas-fired and renewable generation

    SciTech Connect

    Bolinger, Mark; Wiser, Ryan

    2003-12-18

    For better or worse, natural gas has become the fuel of choice for new power plants being built across the United States. According to the US Energy Information Administration (EIA), natural gas combined-cycle and combustion turbine power plants accounted for 96% of the total generating capacity added in the US between 1999 and 2002--138 GW out of a total of 144 GW. Looking ahead, the EIA expects that gas-fired technology will account for 61% of the 355 GW new generating capacity projected to come on-line in the US up to 2025, increasing the nationwide market share of gas-fired generation from 18% in 2002 to 22% in 2025. While the data are specific to the US, natural gas-fired generation is making similar advances in other countries as well. Regardless of the explanation for (or interpretation of) the empirical findings, however, the basic implications remain the same: one should not blindly rely on gas price forecasts when comparing fixed-price renewable with variable-price gas-fired generation contracts. If there is a cost to hedging, gas price forecasts do not capture and account for it. Alternatively, if the forecasts are at risk of being biased or out of tune with the market, then one certainly would not want to use them as the basis for resource comparisons or investment decisions if a more certain source of data (forwards) existed. Accordingly, assuming that long-term price stability is valued, the most appropriate way to compare the levelized cost of these resources in both cases would be to use forward natural gas price data--i.e. prices that can be locked in to create price certainty--as opposed to uncertain natural gas price forecasts. This article suggests that had utilities and analysts in the US done so over the sample period from November 2000 to November 2003, they would have found gas-fired generation to be at least 0.3-0.6 cents/kWh more expensive (on a levelized cost basis) than otherwise thought. With some renewable resources, in particular wind

  7. Higher cigarette prices influence cigarette purchase patterns

    PubMed Central

    Hyland, A; Bauer, J; Li, Q; Abrams, S; Higbee, C; Peppone, L; Cummings, K

    2005-01-01

    Objective: To examine cigarette purchasing patterns of current smokers and to determine the effects of cigarette price on use of cheaper sources, discount/generic cigarettes, and coupons. Background: Higher cigarette prices result in decreased cigarette consumption, but price sensitive smokers may seek lower priced or tax-free cigarette sources, especially if they are readily available. This price avoidance behaviour costs states excise tax money and dampens the health impact of higher cigarette prices. Methods: Telephone survey data from 3602 US smokers who were originally in the COMMIT (community intervention trial for smoking cessation) study were analysed to assess cigarette purchase patterns, use of discount/generic cigarettes, and use of coupons. Results: 59% reported engaging in a high price avoidance strategy, including 34% who regularly purchase from a low or untaxed venue, 28% who smoke a discount/generic cigarette brand, and 18% who report using cigarette coupons more frequently that they did five years ago. The report of engaging in a price avoidance strategy was associated with living within 40 miles of a state or Indian reservation with lower cigarette excise taxes, higher average cigarette consumption, white, non-Hispanic race/ethnicity, and female sex. Conclusion: Data from this study indicate that most smokers are price sensitive and seek out measures to purchase less expensive cigarettes, which may decrease future cessation efforts. PMID:15791017

  8. Manufacture of ammonium sulfate fertilizer from gypsum-rich byproduct of flue gas desulfurization - A prefeasibility cost estimate

    USGS Publications Warehouse

    Chou, I.-Ming; Rostam-Abadi, M.; Lytle, J.M.; Achorn, F.P.

    1996-01-01

    Costs for constructing and operating a conceptual plant based on a proposed process that converts flue gas desulfurization (FGD)-gypsum to ammonium sulfate fertilizer has been calculated and used to estimate a market price for the product. The average market price of granular ammonium sulfate ($138/ton) exceeds the rough estimated cost of ammonium sulfate from the proposed process ($111/ ton), by 25 percent, if granular size ammonium sulfate crystals of 1.2 to 3.3 millimeters in diameters can be produced by the proposed process. However, there was at least ??30% margin in the cost estimate calculations. The additional costs for compaction, if needed to create granules of the required size, would make the process uneconomical unless considerable efficiency gains are achieved to balance the additional costs. This study suggests the need both to refine the crystallization process and to find potential markets for the calcium carbonate produced by the process.

  9. Definition of efficient scarcity-based water pricing policies through stochastic programming

    NASA Astrophysics Data System (ADS)

    Macian-Sorribes, H.; Pulido-Velazquez, M.; Tilmant, A.

    2015-09-01

    Finding ways to improve the efficiency in water usage is one of the most important challenges in integrated water resources management. One of the most promising solutions is the use of scarcity-based pricing policies. This contribution presents a procedure to design efficient pricing policies based on the opportunity cost of water at the basin scale. Time series of the marginal value of water are obtained using a stochastic hydro-economic model. Those series are then post-processed to define step pricing policies, which depend on the state of the system at each time step. The case study of the Mijares River basin system (Spain) is used to illustrate the method. The results show that the application of scarcity-based pricing policies increases the economic efficiency of water use in the basin, allocating water to the highest-value uses and generating an incentive for water conservation during the scarcity periods. The resulting benefits are close to those obtained with the economically optimal decisions.

  10. Definition of efficient scarcity-based water pricing policies through stochastic programming

    NASA Astrophysics Data System (ADS)

    Macian-Sorribes, H.; Pulido-Velazquez, M.; Tilmant, A.

    2015-01-01

    Finding ways to improve the efficiency in water usage is one of the most important challenges in integrated water resources management. One of the most promising solutions is the use of scarcity-based pricing policies. This contribution presents a procedure to design efficient pricing policies based on the opportunity cost of water at the basin scale. Time series of the marginal value of water are obtained using a stochastic hydro-economic model. Those series are then post-processed to define step pricing policies, which depend on the state of the system at each time step. The case study of the Mijares river basin system (Spain) is used to illustrate the method. The results show that the application of scarcity-based pricing policies increases the economic efficiency of water use in the basin, allocating water to the highest-value uses and generating an incentive for water conservation during the scarcity periods. The resulting benefits are close to those obtained with the economically optimal decisions.

  11. 48 CFR 52.215-14 - Integrity of Unit Prices.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... among line items is not acceptable except when there is little or no variation in base cost. Nothing in this paragraph requires submission of certified cost or pricing data not otherwise required by law...

  12. Do Medicare Advantage Plans Select Enrollees in Higher Margin Clinical Categories?

    PubMed Central

    Newhouse, Joseph P.; McWilliams, J. Michael; Price, Mary; Huang, Jie; Fireman, Bruce; Hsu, John

    2013-01-01

    The CMS-HCC risk adjustment system for Medicare Advantage (MA) plans calculates weights, which are effectively relative prices, for beneficiaries with different observable characteristics. To do so it uses the relative amounts spent per beneficiary with those characteristics in Traditional Medicare (TM). For multiple reasons one might expect relative amounts in MA to differ from TM, thereby making some beneficiaries more profitable to treat than others. Much of the difference comes from differences in how TM and MA treat different diseases or diagnoses. Using data on actual medical spending from two MA-HMO plans, we show that the weights calculated from MA costs do indeed differ from those calculated using TM spending. One of the two plans (Plan 1) is more typical of MA-HMO plans in that it contracts with independent community providers, while the other (Plan 2) is vertically integrated with care delivery. We calculate margins, or Average Revenue/Average Cost, for Medicare beneficiaries in the two plans who have one of 48 different combinations of medical conditions. The two plans’ margins for these 48 conditions are correlated (r=0.39, p<0.01). Both plans have margins that are more positive for persons with conditions that are managed by primary care physicians and where medical management can be effective. Conversely they have lower margins for persons with conditions that tend to be treated by specialists with greater market power than primary care physicians and for acute conditions where little medical management is possible. The two plan’s margins among beneficiaries with different observable characteristics vary over a range of 160 and 98 percentage points, respectively, and thus would appear to offer substantial incentive for selection by HCC. Nonetheless, we find no evidence of overrepresentation of beneficiaries in high margin HCC’s in either plan. Nor, using the margins from Plan 1, the more typical plan, do we find evidence of overrepresentation

  13. The End of the International Reference Pricing System?

    PubMed

    Persson, Ulf; Jönsson, Bengt

    2016-02-01

    All 28 EU member states except Sweden and the UK apply international reference pricing (IRP), international price comparison, external reference pricing or cross-reference pricing. The attractiveness of using prices of other countries as a benchmark for decisions within a national price control is obvious. Alternative models for price and reimbursement decision making such as value-based pricing (VBP), i.e. cost-effectiveness analyses, are more complicated. However, IRP provides incentives for stakeholders to take action not in line with optimal (welfare-maximizing) pricing. IRP is costly for two reasons. First, manufacturers are incentivised to limit or delay access to new innovative treatments in countries with small markets and/or a low income, which can be costly in terms of loss of health. Second, all countries also experience a loss of welfare (health) because IRP reduces the opportunities for differential pricing (Ramsey pricing), i.e. using the fact that the ability and willingness to pay differs between countries. Thus, IRP results in less sales revenue to finance research and development of new innovative drugs. We can now observe that payers and manufacturers are engaged in different types of risk-sharing schemes, price-volume negotiations, payback arrangements, confidential discounts, coverage with evidence developments, etc., all with the purpose of returning to the old model of price discrimination and Ramsey pricing. Shortly, real prices for use in IRP systems will cease to exist and, thus, we expect to soon see the end of IRP, a new system for price discrimination and an increasing demand for VBP.

  14. Rack gasoline and refining margins - wanted: a summer romance

    SciTech Connect

    Not Available

    1988-04-13

    For the first time since late 1987, apparent refining margins on the US benchmark crude oil (based on spot purchase prices) are virtually zero. This felicitous bit of news comes loaded with possibilities of positive (maybe even good.) margins in coming months, if the differential between crude buying prices and the value of the refined barrel continues to improve. What refiners in the US market are watching most closely right now are motorists. This issue also contains the following: (1) ED refining netback data for the US Gulf and Western Coasts, Rotterdam, and Singapore, prices for early April 1988; and (2) ED fuel price/tax series for countries of the Western Hemisphere, April 1988 edition. 5 figures, 5 tables.

  15. Soaring Food Prices Squeeze Dining Halls

    ERIC Educational Resources Information Center

    Hermes, JJ

    2008-01-01

    This article reports that students are likely to see a sharp increase in the cost of on-campus meal plans this fall, as rising food prices have sent some college food-service operations into deficits and have forced many to get creative with their fixed budgets. As the cost of food has soared, many dining halls have focused more on reducing…

  16. 76 FR 4395 - Postal Service Price Adjustment

    Federal Register 2010, 2011, 2012, 2013, 2014

    2011-01-25

    ... High Density/Saturation Letters 0.615 High Density/Saturation Flats & Parcels 0.403 Carrier Route... cost coverage. Id. at 18. The Notice also states that the Postal Service recently filed a... ``challenged'' cost coverage status, and states that the new prices are designed to balance the effect...

  17. Mathematical modeling and pharmaceutical pricing: analyses used to inform in-licensing and developmental go/No-Go decisions.

    PubMed

    Vernon, John A; Hughen, W Keener; Johnson, Scott J

    2005-05-01

    In the face of significant real healthcare cost inflation, pressured budgets, and ongoing launches of myriad technology of uncertain value, payers have formalized new valuation techniques that represent a barrier to entry for drugs. Cost-effectiveness analysis predominates among these methods, which involves differencing a new technological intervention's marginal costs and benefits with a comparator's, and comparing the resulting ratio to a payer's willingness-to-pay threshold. In this paper we describe how firms are able to model the feasible range of future product prices when making in-licensing and developmental Go/No-Go decisions by considering payers' use of the cost-effectiveness method. We illustrate this analytic method with a simple deterministic example and then incorporate stochastic assumptions using both analytic and simulation methods. Using this strategic approach, firms may reduce product development and in-licensing risk.

  18. In the Right Ballpark? Assessing the Accuracy of Net Price Calculators

    ERIC Educational Resources Information Center

    Anthony, Aaron M.; Page, Lindsay C.; Seldin, Abigail

    2016-01-01

    Large differences often exist between a college's sticker price and net price after accounting for financial aid. Net price calculators (NPCs) were designed to help students more accurately estimate their actual costs to attend a given college. This study assesses the accuracy of information provided by net price calculators. Specifically, we…

  19. Evaluating Drug Prices, Availability, Affordability, and Price Components: Implications for Access to Drugs in Malaysia

    PubMed Central

    Babar, Zaheer Ud Din; Ibrahim, Mohamed Izham Mohamed; Singh, Harpal; Bukahri, Nadeem Irfan; Creese, Andrew

    2007-01-01

    Background Malaysia's stable health care system is facing challenges with increasing medicine costs. To investigate these issues a survey was carried out to evaluate medicine prices, availability, affordability, and the structure of price components. Methods and Findings The methodology developed by the World Health Organization (WHO) and Health Action International (HAI) was used. Price and availability data for 48 medicines was collected from 20 public sector facilities, 32 private sector retail pharmacies and 20 dispensing doctors in four geographical regions of West Malaysia. Medicine prices were compared with international reference prices (IRPs) to obtain a median price ratio. The daily wage of the lowest paid unskilled government worker was used to gauge the affordability of medicines. Price component data were collected throughout the supply chain, and markups, taxes, and other distribution costs were identified. In private pharmacies, innovator brand (IB) prices were 16 times higher than the IRPs, while generics were 6.6 times higher. In dispensing doctor clinics, the figures were 15 times higher for innovator brands and 7.5 for generics. Dispensing doctors applied high markups of 50%–76% for IBs, and up to 316% for generics. Retail pharmacy markups were also high—25%–38% and 100%–140% for IBs and generics, respectively. In the public sector, where medicines are free, availability was low even for medicines on the National Essential Drugs List. For a month's treatment for peptic ulcer disease and hypertension people have to pay about a week's wages in the private sector. Conclusions The free market by definition does not control medicine prices, necessitating price monitoring and control mechanisms. Markups for generic products are greater than for IBs. Reducing the base price without controlling markups may increase profits for retailers and dispensing doctors without reducing the price paid by end users. To increase access and affordability

  20. Understanding Higher Education Costs

    ERIC Educational Resources Information Center

    Middaugh, Michael F.

    2005-01-01

    Public discussion of higher education costs frequently confuses price with expenditure. This article examines factors associated with increases in the sticker price of a college education and the expenditures incurred by institutions in delivering that education. The discussion suggests that while growth in college tuition is real, access to…

  1. Price Strategies between a Dominant Retailer and Manufacturers

    NASA Astrophysics Data System (ADS)

    Cho, Hsun Jung; Mak, Hou Kit

    2009-08-01

    Supply chain-related game theoretical applications have been discussed for decades. This research accounts for the emergence of a dominant retailer, and the retailer Stackelberg pricing models of distribution channels. Research in the channel pricing game may use different definitions of pricing decision variables. In this research, we pay attentions to the retailer Stackelberg pricing game, and discuss the effects when choosing different decision variables. According the literature it was shown that the strategies between channel members depend critically on the form of the demand function. Two different demand forms—linear and non-linear—will be considered in our numerical example respectively. Our major finding is the outcomes are not relative to manufacturers' pricing decisions but to the retailer's pricing decision and choosing percentage margin as retailer's decision variable is the best strategy for the retailer but worst for manufacturers. The numerical results show that it is consistence between linear and non-linear demand form.

  2. Breakeven Prices for Photovoltaics on Supermarkets in the United States

    SciTech Connect

    Ong, S.; Clark, N.; Denholm, P.; Margolis, R.

    2013-03-01

    The photovoltaic (PV) breakeven price is the PV system price at which the cost of PV-generated electricity equals the cost of electricity purchased from the grid. This point is also called 'grid parity' and can be expressed as dollars per watt ($/W) of installed PV system capacity. Achieving the PV breakeven price depends on many factors, including the solar resource, local electricity prices, customer load profile, PV incentives, and financing. In the United States, where these factors vary substantially across regions, breakeven prices vary substantially across regions as well. In this study, we estimate current and future breakeven prices for PV systems installed on supermarkets in the United States. We also evaluate key drivers of current and future commercial PV breakeven prices by region. The results suggest that breakeven prices for PV systems installed on supermarkets vary significantly across the United States. Non-technical factors -- including electricity rates, rate structures, incentives, and the availability of system financing -- drive break-even prices more than technical factors like solar resource or system orientation. In 2020 (where we assume higher electricity prices and lower PV incentives), under base-case assumptions, we estimate that about 17% of supermarkets will be in utility territories where breakeven conditions exist at a PV system price of $3/W; this increases to 79% at $1.25/W (the DOE SunShot Initiative's commercial PV price target for 2020). These percentages increase to 26% and 91%, respectively, when rate structures favorable to PV are used.

  3. Determinants of branded prescription medicine prices in OECD countries.

    PubMed

    Kanavos, Panos G; Vandoros, Sotiris

    2011-07-01

    This paper investigates the determinants of the prices of branded prescription medicines across different regulatory settings and health care systems, taking into account their launch date, patent status, market dynamics and the regulatory context in which they diffuse. By using volume-weighted price indices, this paper analyzes price levels for a basket of prescription medicines and their differences in 15 OECD countries, including the United States and key European countries, the impact of distribution margins and generic entry on public prices and to what extent innovation, by means of introducing newer classes of medicines, contributes to price formation across countries. In doing so, the paper seeks to understand the factors that contribute to the existing differences in prices across countries, whether at an ex-factory or a retail level. The evidence shows that retail prices for branded prescription medicines in the United States are higher than those in key European and other OECD countries, but not as high as widely thought. Large differences in prices are mainly observed at an ex-factory level, but these are not the prices that consumers and payers pay. Cross-country differences in retail prices are actually not as high as expected and, when controlling for exchange rates, these differences can be even smaller. Product age has a significant effect on prices in all settings after having controlled for other factors. Price convergence is observed across countries for newer prescription medicines compared with older medicines. There is no evidence that originator brand prices fall after generic entry in the United States, a phenomenon known as the 'generics paradox'. Finally, distribution and taxes are important determinants of retail prices in several of the study countries. To the extent that remuneration of the distribution chain and taxation are directly and proportionately linked to product prices this is likely to persist over time.

  4. Shopping for price in medical care.

    PubMed

    Ginsburg, Paul B

    2007-01-01

    Insurers are well positioned to support their enrollees in shopping for care because of their ability to analyze complex data--reflecting both their negotiated discounts and the enrollee's benefit structure--should they decide to commit resources to this task. Government transparency initiatives can help those who are uninsured or want to use out-of-network providers with data on prices and all patients by gathering and disseminating data on quality. But clumsy requirements to disclose insurer-provider contracts could lead to higher prices. Greater price transparency might help curb rising costs, but many overstate the likely magnitude of its contribution.

  5. Simulating Price-Taking

    ERIC Educational Resources Information Center

    Engelhardt, Lucas M.

    2015-01-01

    In this article, the author presents a price-takers' market simulation geared toward principles-level students. This simulation demonstrates that price-taking behavior is a natural result of the conditions that create perfect competition. In trials, there is a significant degree of price convergence in just three or four rounds. Students find this…

  6. Evaluation of the Super ESPC Program: Level 2 -- Recalculated Cost Savings

    SciTech Connect

    Shonder, John A; Hughes, Patrick

    2009-04-01

    criteria, is described in Shonder and Florita (2003) and Shonder and Hughes (2005). To address the first objective of the Level 2 analysis, we first assembled all the necessary information, and then repeated the ESCOs' calculations of reported annual cost savings. Only minor errors were encountered, the most common being the use of incorrect escalation rates to calculate utility prices or O&M savings. Altogether, our corrected calculations of the ESCO's reported cost savings were within 0.6% of the ESCOs' reported cost savings, and errors found were as likely to favor the government as they were the ESCO. To address the second objective, we gathered data on utility use and cost from central databases maintained by the Department of Defense and the General Services Administration, and directly from some of the sites, to determine the prices of natural gas and electricity actually paid at the sites during the periods addressed by the annual reports. We used these data to compare the actual utility costs at the sites to the contract utility prices. For natural gas, as expected, we found that prices had risen much faster than had been anticipated in the contracts. In 17 of the 18 projects for which the comparison was possible, contract gas prices were found to be lower than the average actual prices being paid. We conclude that overall in the program, the estimates of gas prices and gas price escalation rates used in the Super ESPC projects have been conservative. For electricity, it was possible to compare contract prices with the actual (estimated) marginal prices of electricity in 20 projects. In 14 of these projects, the overall contract electricity price was found to be lower than the marginal price of electricity paid to the serving utility. Thus it appears that conservative estimates of electricity prices and escalation rates have been used in the program as well. Finally we calculated the value of the reported energy savings using the prices of utilities actually paid

  7. Impact of gasoline price on transit ridership in Fort Worth, Texas

    SciTech Connect

    Wolff, G.J.; Clark, D.M.

    1982-07-01

    The impact of gasoline price, gasoline supply, automobile ownerships costs, and automobile operating costs on transit ridership is examined. Monthly data on transit ridership, gasoline supply, gasoline price, and consumer price indexes for automobile repair and maintenance, automobile insurance rates, motor oil, used cars, and automobile finance charges are all plotted to compare monthly, seasonal and yearly trends.

  8. 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.

  9. [Prudent use price controls in Chinese medicines market: based on statistical data analysis].

    PubMed

    Yang, Guang; Wang, Nuo; Huang, Lu-Qi; Qiu, Hong-Yan; Guo, Lan-Ping

    2014-01-01

    A dispute about the decreasing-price problem of traditional Chinese medicine (TCM) has recently arisen. This article analyzes the statistical data of 1995-2011 in China, the results showed that the main responsibility of expensive health care has no direct relationship with the drug price. The price index of TCM rose significantly slower than the medicine prices, the production margins of TCM affected by the material prices has been diminishing since 1995, continuous price reduction will further depress profits of the TCM industry. Considering the pros and cons of raw materials vary greatly in price, decreasing medicine price behavior will force enterprises to use inferior materials in order to maintain corporate profits. The results have the guiding meaning to medicine price management.

  10. [Marginalization and health. Introduction].

    PubMed

    Yunes, J

    1992-06-01

    The relationship between marginalization and health is clear. In Mexico, for example, life expectancy is 53 years for the poorest population sectors and 20 years more for the wealthiest. Infant mortality in poor Colombian families is twice that of wealthier families, and one-third of developing countries the rural population is only half as likely as the urban to have access to health services. Women in the Southern hemisphere are 12 times likelier than those in the Northern to die of maternal causes. The most important step in arriving at a solution to the inequity may be to analyze in depth the relationship between marginality and health. Marginality may be defined as the lack of participation of individuals or groups in certain key phases of societal life, such as production, consumption, or political decision making. Marginality came to be viewed as a social problem only with recognition of the rights of all individuals to participate in available social goods. Marginality is always relative, and marginal groups exist because central groups determine the criteria for inclusion in the marginal and central groups. Marginality thus always refers to a concrete society at a specific historical moment. Marginal groups may be of various types. At present, marginal groups include women, rural populations, people with AIDS or mental illness or certain other health conditions, refugees, ethnic or religious groups, homosexuals, and the poor, who are the largest group of marginal persons in the world. Even in developed countries, 100-200 million persons live below the poverty line. Latin America is struggling to emerge from its marginal status in the world. The economic crisis of the 1980s increased poverty in the region, and 40% are not considered impoverished. Latin America is a clear example of the relationship between marginality and health. Its epidemiologic profile is intimately related to nutrition, availability of potable water, housing, and environmental

  11. Price-Shopping in Consumer-Directed Health Plans.

    PubMed

    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.

  12. The LBNL Water Heater Retail Price Database

    SciTech Connect

    Lekov, Alex; Glover, Julie; Lutz, Jim

    2000-10-01

    Lawrence Berkeley National Laboratory developed the LBNL Water Heater Price Database to compile and organize information used in the revision of U.S. energy efficiency standards for water heaters. The Database contains all major components that contribute to the consumer cost of water heaters, including basic retail prices, sales taxes, installation costs, and any associated fees. In addition, the Database provides manufacturing data on the features and design characteristics of more than 1100 different water heater models. Data contained in the Database was collected over a two-year period from 1997 to 1999.

  13. Price Analysis on Commercial Item Purchases Within the Department of the Navy

    DTIC Science & Technology

    2015-05-01

    contracting specialists needed to have a greater knowledge of market conditions, industry trends, and market prices – So, instead of analyzing cost...proposals, Contract Specialists are now using market forces to determine reasonable prices 4. Thus, the increase of both market research and...type of price analysis used in pricing formulation? • Do pricing memos refer to market research information or to IGCE information? • Do

  14. The Value of Renewable Energy as a Hedge Against Fuel Price Risk: Analytic Contributions from Economic and Finance Theory

    SciTech Connect

    Bolinger, Mark A; Wiser, Ryan

    2008-09-15

    For better or worse, natural gas has become the fuel of choice for new power plants being built across the United States. According to the Energy Information Administration (EIA), natural gas-fired units account for nearly 90% of the total generating capacity added in the U.S. between 1999 and 2005 (EIA 2006b), bringing the nationwide market share of gas-fired generation to 19%. Looking ahead over the next decade, the EIA expects this trend to continue, increasing the market share of gas-fired generation to 22% by 2015 (EIA 2007a). Though these numbers are specific to the US, natural gas-fired generation is making similar advances in many other countries as well. A large percentage of the total cost of gas-fired generation is attributable to fuel costs--i.e., natural gas prices. For example, at current spot prices of around $7/MMBtu, fuel costs account for more than 75% of the levelized cost of energy from a new combined cycle gas turbine, and more than 90% of its operating costs (EIA 2007a). Furthermore, given that gas-fired plants are often the marginal supply units that set the market-clearing price for all generators in a competitive wholesale market, there is a direct link between natural gas prices and wholesale electricity prices. In this light, the dramatic increase in natural gas prices since the 1990s should be a cause for ratepayer concern. Figure 1 shows the daily price history of the 'first-nearby' (i.e., closest to expiration) NYMEX natural gas futures contract (black line) at Henry Hub, along with the futures strip (i.e., the full series of futures contracts) from August 22, 2007 (red line). First, nearby prices, which closely track spot prices, have recently been trading within a $7-9/MMBtu range in the United States and, as shown by the futures strip, are expected to remain there through 2012. These price levels are $6/MMBtu higher than the $1-3/MMBtu range seen throughout most of the 1990s, demonstrating significant price escalation for natural

  15. 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.

  16. Pricing the Services in Dynamic Environment: Agent Pricing Model

    NASA Astrophysics Data System (ADS)

    Žagar, Drago; Rupčić, Slavko; Rimac-Drlje, Snježana

    New Internet applications and services as well as new user demands open many new issues concerning dynamic management of quality of service and price for received service, respectively. The main goals of Internet service providers are to maximize profit and maintain a negotiated quality of service. From the users' perspective the main goal is to maximize ratio of received QoS and costs of service. However, achieving these objectives could become very complex if we know that Internet service users might during the session become highly dynamic and proactive. This connotes changes in user profile or network provider/s profile caused by high level of user mobility or variable level of user demands. This paper proposes a new agent based pricing architecture for serving the highly dynamic customers in context of dynamic user/network environment. The proposed architecture comprises main aspects and basic parameters that will enable objective and transparent assessment of the costs for the service those Internet users receive while dynamically change QoS demands and cost profile.

  17. Estimating Prices of Products

    NASA Technical Reports Server (NTRS)

    Aster, R. W.; Chamberlain, R. G.; Zendejas, S. C.; Lee, T. S.; Malhotra, S.

    1986-01-01

    Company-wide or process-wide production simulated. Price Estimation Guidelines (IPEG) program provides simple, accurate estimates of prices of manufactured products. Simplification of SAMIS allows analyst with limited time and computing resources to perform greater number of sensitivity studies. Although developed for photovoltaic industry, readily adaptable to standard assembly-line type of manufacturing industry. IPEG program estimates annual production price per unit. IPEG/PC program written in TURBO PASCAL.

  18. Food price volatility

    PubMed Central

    Gilbert, C. L.; Morgan, C. W.

    2010-01-01

    The high food prices experienced over recent years have led to the widespread view that food price volatility has increased. However, volatility has generally been lower over the two most recent decades than previously. Variability over the most recent period has been high but, with the important exception of rice, not out of line with historical experience. There is weak evidence that grains price volatility more generally may be increasing but it is too early to say. PMID:20713400

  19. Comparison of AEO 2006 Natural Gas Price Forecast to NYMEX FuturesPrices

    SciTech Connect

    Bolinger, Mark; Wiser, Ryan

    2005-12-19

    On December 12, 2005, the reference case projections from ''Annual Energy Outlook 2006'' (AEO 2006) were posted on the Energy Information Administration's (EIA) web site. We at LBNL have in the past compared the EIA's reference case long-term natural gas price forecasts from the AEO series to contemporaneous natural gas prices that can be locked in through the forward market, with the goal of better understanding fuel price risk and the role that renewables play in mitigating such risk (see, for example, http://eetd.lbl.gov/ea/EMS/reports/53587.pdf or http://eetd.lbl.gov/ea/ems/reports/54751.pdf). As such, we were curious to see how the latest AEO gas price forecast compares to the NYMEX natural gas futures strip. This brief memo presents our findings. As a refresher, our past work in this area has found that over the past five years, forward natural gas contracts (with prices that can be locked in--e.g., gas futures, swaps, and physical supply) have traded at a premium relative to contemporaneous long-term reference case gas price forecasts from the EIA. As such, we have concluded that, over the past five years at least, levelized cost comparisons of fixed-price renewable generation with variable price gas-fired generation that have been based on AEO natural gas price forecasts (rather than forward prices) have yielded results that are ''biased'' in favor of gas-fired generation, presuming that long-term price stability is valued. In this memo we simply update our past analysis to include the latest long-term gas price forecast from the EIA, as contained in AEO 2006. For the sake of brevity, we do not rehash information (on methodology, potential explanations for the premiums, etc.) contained in our earlier reports on this topic; readers interested in such information are encouraged to download that work from http://eetd.lbl.gov/ea/EMS/reports/53587.pdf or http://eetd.lbl.gov/ea/ems/reports/54751.pdf. As was the case in the past five AEO releases (AEO 2001-AEO

  20. Comparison of AEO 2007 Natural Gas Price Forecast to NYMEX FuturesPrices

    SciTech Connect

    Bolinger, Mark; Wiser, Ryan

    2006-12-06

    On December 5, 2006, the reference case projections from 'Annual Energy Outlook 2007' (AEO 2007) were posted on the Energy Information Administration's (EIA) web site. We at LBNL have, in the past, compared the EIA's reference case long-term natural gas price forecasts from the AEO series to contemporaneous natural gas prices that can be locked in through the forward market, with the goal of better understanding fuel price risk and the role that renewables play in mitigating such risk (see, for example, http://eetd.lbl.gov/ea/EMS/reports/53587.pdf or http://eetd.lbl.gov/ea/ems/reports/54751.pdf). As such, we were curious to see how the latest AEO gas price forecast compares to the NYMEX natural gas futures strip. This brief memo presents our findings. As a refresher, our past work in this area has found that over the past six years, forward natural gas contracts (with prices that can be locked in--e.g., gas futures, swaps, and physical supply) have traded at a premium relative to contemporaneous long-term reference case gas price forecasts from the EIA. As such, we have concluded that, over the past six years at least, levelized cost comparisons of fixed-price renewable generation with variable-price gas-fired generation that have been based on AEO natural gas price forecasts (rather than forward prices) have yielded results that are 'biased' in favor of gas-fired generation, presuming that long-term price stability is valued. In this memo we simply update our past analysis to include the latest long-term gas price forecast from the EIA, as contained in AEO 2007. For the sake of brevity, we do not rehash information (on methodology, potential explanations for the premiums, etc.) contained in our earlier reports on this topic; readers interested in such information are encouraged to download that work from http://eetd.lbl.gov/ea/EMS/reports/53587.pdf or http://eetd.lbl.gov/ea/ems/reports/54751.pdf. As was the case in the past six AEO releases (AEO 2001-AEO 2006), we

  1. Information-time based futures pricing

    NASA Astrophysics Data System (ADS)

    Yen, Simon; Wang, Jai Jen

    2009-09-01

    This study follows Clark [P.K. Clark, A subordinated stochastic process model with finite variance for speculative prices, Econometrica 41 (1973) 135-155] and Chang, Chang and Lim [C.W. Chang, S.K. Chang, K.G. Lim, Information-time option pricing: Theory and empirical evidence, Journal of Financial Economics 48 (1998) 211-242] to subordinate an information-time based directing process into calendar-time based parent processes. A closed-form futures pricing formula is derived after taking into account the information-time setting and the stochasticity of the spot price, interest rate, and convenience yield. According to the empirical results on the TAIEX and TFETX data from 1998/7/21 to 2003/12/31, the information-time based model performs better than its calendar-time based counterpart and the cost of carry model, especially when the information arrival intensity estimates become larger.

  2. The impact of wind power on electricity prices

    SciTech Connect

    Brancucci Martinez-Anido, Carlo; Brinkman, Greg; Hodge, Bri-Mathias

    2016-08-01

    This paper investigates the impact of wind power on electricity prices using a production cost model of the Independent System Operator - New England power system. Different scenarios in terms of wind penetration, wind forecasts, and wind curtailment are modeled in order to analyze the impact of wind power on electricity prices for different wind penetration levels and for different levels of wind power visibility and controllability. The analysis concludes that electricity price volatility increases even as electricity prices decrease with increasing wind penetration levels. The impact of wind power on price volatility is larger in the shorter term (5-min compared to hour-to-hour). The results presented show that over-forecasting wind power increases electricity prices while under-forecasting wind power reduces them. The modeling results also show that controlling wind power by allowing curtailment increases electricity prices, and for higher wind penetrations it also reduces their volatility.

  3. Higher Education Prices and Price Indexes: 1981 Update.

    ERIC Educational Resources Information Center

    Research Associates of Washington, DC.

    Higher Education prices and price indexes for fiscal years 1979-1981 are presented, with narrative explanation. A price index series measures the effects of price change on a fixed group of items. The change in price index values from year to year may be interpreted as the change in dollars required to offset the effects of inflation in buying the…

  4. Crowdsourcing Black Market Prices For Prescription Opioids

    PubMed Central

    Freifeld, Clark; Brownstein, John S; Menone, Christopher Mark; Surratt, Hilary L; Poppish, Luke; Green, Jody L; Lavonas, Eric J; Dart, Richard C

    2013-01-01

    Background Prescription opioid diversion and abuse are major public health issues in the United States and internationally. Street prices of diverted prescription opioids can provide an indicator of drug availability, demand, and abuse potential, but these data can be difficult to collect. Crowdsourcing is a rapid and cost-effective way to gather information about sales transactions. We sought to determine whether crowdsourcing can provide accurate measurements of the street price of diverted prescription opioid medications. Objective To assess the possibility of crowdsourcing black market drug price data by cross-validation with law enforcement officer reports. Methods Using a crowdsourcing research website (StreetRx), we solicited data about the price that site visitors paid for diverted prescription opioid analgesics during the first half of 2012. These results were compared with a survey of law enforcement officers in the Researched Abuse, Diversion, and Addiction-Related Surveillance (RADARS) System, and actual transaction prices on a “dark Internet” marketplace (Silk Road). Geometric means and 95% confidence intervals were calculated for comparing prices per milligram of drug in US dollars. In a secondary analysis, we compared prices per milligram of morphine equivalent using standard equianalgesic dosing conversions. Results A total of 954 price reports were obtained from crowdsourcing, 737 from law enforcement, and 147 from the online marketplace. Correlations between the 3 data sources were highly linear, with Spearman rho of 0.93 (P<.001) between crowdsourced and law enforcement, and 0.98 (P<.001) between crowdsourced and online marketplace. On StreetRx, the mean prices per milligram were US$3.29 hydromorphone, US$2.13 buprenorphine, US$1.57 oxymorphone, US$0.97 oxycodone, US$0.96 methadone, US$0.81 hydrocodone, US$0.52 morphine, and US$0.05 tramadol. The only significant difference between data sources was morphine, with a Drug Diversion price of US

  5. Flying Lessons: Learning from Ryanair's Cost Reduction Culture

    NASA Technical Reports Server (NTRS)

    Lawton, Thomas C.

    2000-01-01

    Through radically improving the value equation for airline customers, Ryanair has served to shake-up established norms and practices in European aviation. Underpinning its price leadership and market success is a vigorous and relentless cost reduction ethos and resultant low break-even load factor. Ryanair has lowered European airline cost structures considerably, shattering existing cost floors. Few competitors are able to follow, either because they do not know how or they are unable due to social settlement obligations or service commitments. At the same time, the company has maintained high average load factors on its flights. Taken in conjunction with its low break-even load factor, this results in consistently high overall profit margins. On this basis, Ryanair is likely to remain a significant competitor and increase its market presence and success across Europe.

  6. Ocean margins workshop

    SciTech Connect

    1990-12-31

    The Department of Energy (DOE) is announcing the refocusing of its marine research program to emphasize the study of ocean margins and their role in modulating, controlling, and driving Global Change phenomena. This is a proposal to conduct a workshop that will establish priorities and an implementation plan for a new research initiative by the Department of Energy on the ocean margins. The workshop will be attended by about 70 scientists who specialize in ocean margin research. The workshop will be held in the Norfolk, Virginia area in late June 1990.

  7. Price Discrimination in Academic Journals.

    ERIC Educational Resources Information Center

    Joyce, Patrick; Merz, Thomas E.

    1985-01-01

    Analysis of price discrimination (charging different prices to different customers for same product) for 89 academic journals in 6 disciplines reveals: incidence of price discrimination rose between 1974 and 1984, increase in mean institutional (library) subscription price exceeded increase in mean individual subscription price. Journal list…

  8. Perspectives on Pricing.

    ERIC Educational Resources Information Center

    Litten, Larry H.

    1986-01-01

    The most provocative perspectives on pricing for colleges and universities have come from the introduction of marketing into higher education. A brief review of these developments is offered to serve as an orientation for the consideration of pricing issues per se. (Author/MLW)

  9. 16 CFR 233.1 - Former price comparisons.

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... based on a fictitious former price. John Doe is a retailer of Brand X fountain pens, which cost him $5... subsequently to offer an unusual “bargain”, Doe begins offering Brand X at $10 per pen. He realizes that he will be able to sell no, or very few, pens at this inflated price. But he doesn't care, for...

  10. Beyond Fees and Charges: The Need for a Pricing Strategy.

    ERIC Educational Resources Information Center

    Tugman, Sarah Jones

    1985-01-01

    As citizens demand governmental accountability, recreation agencies must devote attention to determining the cost of programs and to justifying the fee structure assigned to each program. This article addresses the need for proper pricing and offers a plan for establishing a pricing strategy. (MT)

  11. 48 CFR 52.215-14 - Integrity of Unit Prices.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 48 Federal Acquisition Regulations System 2 2010-10-01 2010-10-01 false Integrity of Unit Prices. 52.215-14 Section 52.215-14 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION... supplies shall distribute costs within contracts on a basis that ensures that unit prices are in...

  12. Using business intelligence to manage supply costs.

    PubMed

    Bunata, Ernest

    2013-08-01

    Business intelligence tools can help materials managers and managers in the operating room and procedural areas track purchasing costs more precisely and determine the root causes of cost increases. Data can be shared with physicians to increase their awareness of the cost of physician preference items. Proper use of business intelligence goes beyond price benchmarking to manage price performance over time.

  13. 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…

  14. Crude oil price dynamics: A study on effects of market expectation and strategic supply on price movements

    NASA Astrophysics Data System (ADS)

    Jin, Xin

    Recent years have seen dramatic fluctuations in crude oil prices. This dissertation attempts to better understand price behavior. The first chapter studies the behavior of crude oil spot and futures prices. Oil prices, particularly spot and short-term futures prices, appear to have switched from I(0) to I(1) in early 2000s. To better understand this apparent change in persistence, a factor model of oil prices is proposed, where the prices are decomposed into long-term and short-term components. The change in the persistence behavior can be explained by changes in the relative volatility of the underlying components. Fitting the model to weekly data on WTI prices, the volatility of the persistent shocks increased substantially relative to other shocks. In addition, the risk premiums in futures prices have changed their signs and become more volatile. The estimated net marginal convenience yield using the model also shows changes in its behavior. These observations suggest that a dramatic fundamental change occurred in the period from 2002 to 2004 in the dynamics of the crude oil market. The second chapter explores the short-run price-inventory dynamics in the presence of different shocks. Classical competitive storage model states that inventory decision considers both current and future market condition, and thus interacts with spot and expected future spot prices. We study competitive storage holding in an equilibrium framework, focusing on the dynamic response of price and inventory to different shocks. We show that news shock generates response profile different from traditional contemporaneous shocks in price and inventory. The model is applied to world crude oil market, where the market expectation is estimated to experience a sharp change in early 2000s, together with a persisting constrained supply relative to demand. The expectation change has limited effect on crude oil spot price though. The world oil market structure has been studied extensively but no

  15. Management of busbar costs and spending tradeoffs for the transition to competitive markets in electricity

    SciTech Connect

    Corio, M.R.; Boyd, G.

    1995-09-01

    Competition is changing the fundamental basis for doing business in the electricity generation market. As the market moves toward competitive market conditions, electricity will be viewed increasingly as a commodity--not only supplied to customers within a utility`s service area, but brokered and marketed outside its area as well. With movement toward retail wheeling being considered in California, Michigan, and New York, it may soon become a reality as well. This means that a utility can no longer feel secure as the monopoly supplier of electricity within its own franchise area. To remain the main supplier in its current service area and compete for customers in other service areas, utilities will need to understand and examine all the components of ``busbar costs`` at its generating units. As competition drives the market to marginal costs, generating units with costs exceeding the market clearing price for electricity may soon have a limited role in the generation market. As the industry evolves, competition in the marketplace will force uneconomic plants to reduce costs or go out of business. This paper discusses results of studies addressing the evaluation of cost effectiveness, benchmarking of cost-efficiency, and development of marginal cost curves for busbar costs based on the development and aggregation of the three key measures which determine the cost and level of output (generation): (1) reliability; (2) heat rate; and (3) planned outage factor.

  16. 7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS Class Prices § 1000.50 Class prices, component prices, and advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent...

  17. 7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ... 7 Agriculture 9 2014-01-01 2013-01-01 true Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued... CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.50 Class prices, component...

  18. 7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued... CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.50 Class prices, component...

  19. 7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... 7 Agriculture 9 2012-01-01 2012-01-01 false Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued... CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.50 Class prices, component...

  20. 7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2013 CFR

    2013-01-01

    ... 7 Agriculture 9 2013-01-01 2013-01-01 false Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued... CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.50 Class prices, component...

  1. 7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... 7 Agriculture 9 2011-01-01 2011-01-01 false Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued... CENTRAL MARKETING AREA Order Regulating Handling Class Prices § 1032.50 Class prices, component...

  2. 7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS Class Prices § 1000.50 Class prices, component prices, and advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent...

  3. 7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ...) AGRICULTURAL MARKETING SERVICE (MARKETING AGREEMENTS AND ORDERS; MILK), DEPARTMENT OF AGRICULTURE GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS Class Prices § 1000.50 Class prices, component prices, and advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent...

  4. 7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2013 CFR

    2013-01-01

    ...) AGRICULTURAL MARKETING SERVICE (MARKETING AGREEMENTS AND ORDERS; MILK), DEPARTMENT OF AGRICULTURE GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS Class Prices § 1000.50 Class prices, component prices, and advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent...

  5. 7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ...) AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; Milk), DEPARTMENT OF AGRICULTURE GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS Class Prices § 1000.50 Class prices, component prices, and advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent...

  6. 17 CFR 242.612 - Minimum pricing increment.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... 17 Commodity and Securities Exchanges 3 2011-04-01 2011-04-01 false Minimum pricing increment. 242.612 Section 242.612 Commodity and Securities Exchanges SECURITIES AND EXCHANGE COMMISSION (CONTINUED) REGULATIONS M, SHO, ATS, AC, AND NMS AND CUSTOMER MARGIN REQUIREMENTS FOR SECURITY FUTURES Regulation...

  7. 17 CFR 242.612 - Minimum pricing increment.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 17 Commodity and Securities Exchanges 3 2010-04-01 2010-04-01 false Minimum pricing increment. 242.612 Section 242.612 Commodity and Securities Exchanges SECURITIES AND EXCHANGE COMMISSION (CONTINUED) REGULATIONS M, SHO, ATS, AC, AND NMS AND CUSTOMER MARGIN REQUIREMENTS FOR SECURITY FUTURES Regulation...

  8. 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.

  9. Refining margin update: the light at the end of the tunnel

    SciTech Connect

    Not Available

    1987-01-28

    US refining margins seem now poised for gradual and sustained improvement - if product price increases continue to exceed crude oil price strengthening. Whereas 1986 margins bounced between poor to worse, fueling the debate about US dependency on imported petroleum, improved 1987 margins could comfort struggling refiners and conceivably soothe some that have been fearful of the effects of lower-priced foreign oil. This issue also contains the following: (1) ED refining netback data for the US Gulf and West Coasts, Rotterdam, and Singapore for late January 1987; and (2) ED fuel price/tax series in US dollars for countries of both the Eastern and Western Hemispheres, January 1987 editions. 3 figures, 6 tables.

  10. 48 CFR 1852.236-72 - Bids with unit prices.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... by the Government. If there is variation between the unit price and any extended amounts, the unit... provides for a lump-sum adjustment to the total estimated cost is submitted, the application of the...

  11. 48 CFR 52.216-5 - Price Redetermination-Prospective.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... recent cost experience (taking into account the Contractor's accounting system), but early enough to... Contractor's accounting system. ... 48 Federal Acquisition Regulations System 2 2010-10-01 2010-10-01 false Price...

  12. Pricing irrigation water for drought adaptation in Iran

    NASA Astrophysics Data System (ADS)

    Nikouei, Alireza; Ward, Frank A.

    2013-10-01

    This paper examines alternative water pricing arrangements that better manage and more accurately reflect conditions of increased water scarcity experienced during drought in Iran. A comprehensive water balance and crop use model compares the existing below cost water pricing model with an alternative two-tiered pricing approach. The tiers reflect two uses of irrigation water. The uses are (1) subsistence level crop production from farm household production of crops for food security and (2) discretionary cropping. Results of the study offer evidence for a reform of Iranian water pricing principles, subject to caveats described by the authors.

  13. Norwegian physicians' knowledge of the prices of pharmaceuticals: a survey.

    PubMed

    Eriksen, Ida Iren; Melberg, Hans Olav; Bringedal, Berit

    2013-01-01

    The objectives of this study are to measure physicians' knowledge of the prices of pharmaceuticals, and investigate whether there are differences in knowledge of prices between groups of physicians. This article reports on a survey study of physicians' knowledge of the prices of pharmaceuticals conducted on a representative sample of Norwegian physicians in the autumn of 2010. The importance of physicians' knowledge of costs derives from their influence on total spending and allocation of limited health-care resources. Physicians are important drivers in the effort to contain costs in health care, but only if they have the knowledge needed to choose the most cost-effective treatment options. A survey was sent to 1543 Norwegian physicians, asking them for price estimates and their opinions on the importance of considering the cost of treatment to society as a decision factor when treating their patients. This article deals with a subsection in which the physicians were asked to estimate the price of five pharmaceuticals: simvastatin, alendronate (Fosamax), infliximab (Remicade), natalizumab (Tysabri) and escitalopram (Cipralex). The response rate was 65%. For all the five pharmaceuticals, more than 50% and as many as 83% gave responses that differed more than 50% from the actual drug price. The price of more expensive pharmaceuticals was underestimated, while the opposite was the case for less expensive medicines. The data show that physicians in general have poor knowledge of the prices of the pharmaceuticals they offer their patients. However, the physicians who frequently deal with a drug have better knowledge of its price than those who do not handle a medication as often. The data also suggest that those physicians who agree that cost of care to society is an important decision factor have better knowledge of drug prices.

  14. Electricity pricing policy: A neo-institutional, developmental and cross-national policy design map

    NASA Astrophysics Data System (ADS)

    Koundinya, Sridarshan Umesh

    This dissertation explores the role of ideas and ideology in the mental policy design maps of regulators in the US and in India. The research approach is to describe the regulatory design process in the history of the US electric industry from a neo-institutional and developmental perspective. And then to use the insights of such a study to suggest policy options to a sample of Indian experts. A regulatory process model explores the interactions among normative values, regulatory instruments and historical phases in policy design. A spectrum of seven regulatory instruments--subsidized rates, average cost pricing, marginal cost pricing, time-of-use pricing, ramsey pricing, incentive regulation and spot pricing is examined. A neo-institutional perspective characterizes the process of institutionalizing these regulatory instruments as a design process that infuses them with values beyond mere technical requirements. The process model includes normative values such as efficiency, fairness, free choice and political feasibility. These values arise from an analytical classification of various market metaphors debated in the history of economic thought. The theory of development and co-evolution applied to the history of electricity regulation yields a typology of evolutionary phases in the US. The typology describes hierarchically emergent relationships between supply and demand and among the normative values. The theory hypothesizes technologically contingent relationships between pricing policies and normative values in the historical phases of dependence (or rural), independence (or urban) and interdependence (or informational). The contents of this model are represented as related elements in a policy design map that simplifies the process of designing regulatory instruments in the US. This neo-institutional, developmental policy design map was used to design a survey instrument. The survey was conducted among electricity experts in India to test the hypothesized

  15. Testing the Limits of the Price Elasticity of Potential Students at Colleges and Universities: Has the Increased Direct Cost to the Student Begun to Drive down Higher Education Enrolment?

    ERIC Educational Resources Information Center

    Fincher, Mark; Katsinas, Stephen

    2017-01-01

    Higher education enrolment has long been known to rise and fall counter to the current economic situation. This counter-cyclical enrolment response represents an economic principle where a price-elastic consumer is more likely make a consumption choice when another valuable use of resources is not available. Higher unemployment has historically…

  16. Approximate option pricing

    SciTech Connect

    Chalasani, P.; Saias, I.; Jha, S.

    1996-04-08

    As increasingly large volumes of sophisticated options (called derivative securities) are traded in world financial markets, determining a fair price for these options has become an important and difficult computational problem. Many valuation codes use the binomial pricing model, in which the stock price is driven by a random walk. In this model, the value of an n-period option on a stock is the expected time-discounted value of the future cash flow on an n-period stock price path. Path-dependent options are particularly difficult to value since the future cash flow depends on the entire stock price path rather than on just the final stock price. Currently such options are approximately priced by Monte carlo methods with error bounds that hold only with high probability and which are reduced by increasing the number of simulation runs. In this paper the authors show that pricing an arbitrary path-dependent option is {number_sign}-P hard. They show that certain types f path-dependent options can be valued exactly in polynomial time. Asian options are path-dependent options that are particularly hard to price, and for these they design deterministic polynomial-time approximate algorithms. They show that the value of a perpetual American put option (which can be computed in constant time) is in many cases a good approximation to the value of an otherwise identical n-period American put option. In contrast to Monte Carlo methods, the algorithms have guaranteed error bounds that are polynormally small (and in some cases exponentially small) in the maturity n. For the error analysis they derive large-deviation results for random walks that may be of independent interest.

  17. Approximation Preserving Reductions among Item Pricing Problems

    NASA Astrophysics Data System (ADS)

    Hamane, Ryoso; Itoh, Toshiya; Tomita, Kouhei

    When a store sells items to customers, the store wishes to determine the prices of the items to maximize its profit. Intuitively, if the store sells the items with low (resp. high) prices, the customers buy more (resp. less) items, which provides less profit to the store. So it would be hard for the store to decide the prices of items. Assume that the store has a set V of n items and there is a set E of m customers who wish to buy those items, and also assume that each item i ∈ V has the production cost di and each customer ej ∈ E has the valuation vj on the bundle ej ⊆ V of items. When the store sells an item i ∈ V at the price ri, the profit for the item i is pi = ri - di. The goal of the store is to decide the price of each item to maximize its total profit. We refer to this maximization problem as the item pricing problem. In most of the previous works, the item pricing problem was considered under the assumption that pi ≥ 0 for each i ∈ V, however, Balcan, et al. [In Proc. of WINE, LNCS 4858, 2007] introduced the notion of “loss-leader, ” and showed that the seller can get more total profit in the case that pi < 0 is allowed than in the case that pi < 0 is not allowed. In this paper, we derive approximation preserving reductions among several item pricing problems and show that all of them have algorithms with good approximation ratio.

  18. Strategic Provider Behavior Under Global Budget Payment with Price Adjustment in Taiwan.

    PubMed

    Chen, Bradley; Fan, Victoria Y

    2015-11-01

    Global budget payment is one of the most effective strategies for cost containment, but its impacts on provider behavior have not been explored in detail. This study examines the theoretical and empirical role of global budget payment on provider behavior. The study proposes that global budget payment with price adjustment is a form of common-pool resources. A two-product game theoretic model is derived, and simulations demonstrate that hospitals are expected to expand service volumes, with an emphasis on products with higher price-marginal cost ratios. Next, the study examines the early effects of Taiwan's global budget payment system using a difference-in-difference strategy and finds that Taiwanese hospitals exhibited such behavior, where the pursuit of individual interests led to an increase in treatment intensities. Furthermore, hospitals significantly increased inpatient service volume for regional hospitals and medical centers. In contrast, local hospitals, particularly for those without teaching status designation, faced a negative impact on service volume, as larger hospitals were better positioned to induce demand and pulled volume away from their smaller counterparts through more profitable services and products such as radiology and pharmaceuticals.

  19. Studies on price indexes and innovation

    NASA Astrophysics Data System (ADS)

    Carreon-Rodriguez, Victor G.

    This thesis develops two studies on price indexes and innovation. The first one analyzes the problems on the computation of price indexes when there are improvements in the goods' quality. These problems arise because we use price indexes that measure the prices of the goods that consumers buy rather than the prices of the services that consumers enjoy. In order to see this, I compute a true price for gasoline that is based on the services that it provides. We ask for the cost of moving one ton at a speed of 40 mph for a distance of 100 miles. This true price is compared with the official price for gasoline. The average annual bias (the rise in the official price relative to the true price) is 3.2% per year. We also compute the hours of work required to cover that cost. We find that in 1925 there were needed almost 1.5 hours of work, while by 1992 there were just needed about 8 minutes to move one ton as specified above. The second one develops a model of Cournot competition in innovation. This model introduces two new features. First, firm's investment in research and development is divided into two pieces, expenditures in human capital and expenditures in all other inputs (called R&D for simplicity). Second, the government also allocates resources to research and development, which affect the stock of knowledge available to the firms. Some interesting results arise from this model. First, investments in human capital and in R&D are increasing in the past government's investment. Second, investments per firm are decreasing in the number of firms in the industry, but the totals are larger if some conditions on the elasticities are satisfied. Third, the welfare analysis tells us that if there are entry barriers, each firm is overinvesting in both inputs. On the other hand, if there is free entry, there are too many firms engaged in the innovative race. Finally, we perform an empirical analysis and we find that there are lagged effects of the government's investment

  20. The effect of price and production risks on optimal farm plans in Swiss dairy production considering 2 different milk quota systems.

    PubMed

    Briner, S; Finger, R

    2013-04-01

    The amount of milk produced on Swiss dairy farms is restricted by contracts between the farmers and their marketing agent. In the past, these contracts have been calculated on a yearly base. Due to a switch in agricultural policy, these yearly contracts are currently more and more replaced by contracts calculated on a monthly base. These new contracts are assumed to restrict the flexibility of farmers to react on changes in milk price as well as on changes in fodder availability. Thus, the contract design is expected to influence farmers' ability to cope with risks and, thus, to influence the farm's gross margin variability. Applying a bioeconomic whole-farm model, the effects of price and weather risk as well as different risk-management strategies on the gross margin and the variability of the gross margin in Swiss dairy production are assessed under the 2 contract designs. We consider both risk-neutral and risk-averse behavior of farmers in our study. Results show that gross margin is slightly higher under the yearly than under the monthly contract. Variability of gross margin is also higher under the yearly than under the monthly contract. If the farmer is assumed to be risk averse, under both contracts he can reduce the coefficient of variation of the gross margin by almost 20% at opportunity costs below 1% of the gross margin. To reduce variability of gross margin under both contracts the size of the feedstock needs to be increased. This increase, however, must be considerably higher under the monthly contract than under the yearly contract. An additional risk-management strategy under a monthly contract is an increase in the area used as intensive pasture to ensure fodder availability in years with unfavorable weather. Under the yearly contract, an increase in the area used as extensive pasture is shown to be more favorable because it increases the amount of direct payments the farmer will receive. Additional restrictions in farm management due to a monthly