Sample records for work setting prices

  1. Pricing and competition in the private dental market in Finland.

    PubMed

    Widström, E; Väisänen, A; Mikkola, H

    2011-06-01

    To investigate how the prices were set in private dental care, which factors determined prices and whether the recent National Dental Care Reform had increased competition in the dental care market in Finland. A questionnaire to all full time private dentists (n = 1,121) in the ten largest cities. Characteristics of the practice, prices charged, price setting, perceived competition and expectations for the practices were requested. The response rate was 59.6%. Correlation analysis (Pearson's) was used to study relationships between the prices of different treatment items. Linear regression analysis was used to study determinants of the price of a one surface filling. Most dentists' fee schedules were based on the price of a one surface filling and updated annually. Changes in practice costs calculated by the dentists' professional association and information on average prices charged on dental treatments in the country influenced pricing. High price levels were associated with specialisation, working in a group practice, working close to many other practices or in a town with a dental school. Less than half of the respondents had faced competition in dental services and price competition was insignificant. Price setting followed traditional patterns and private markets in dental services were not found to be very competitive.

  2. Homogeneity and Heterogeneity in Education: The "Psychological Price" Argument.

    ERIC Educational Resources Information Center

    Yehezkel, Dar; Resh, Nura

    This work explores whether a "psychological price" is indicated in the affective domain of the weaker student in abilty-mixed settings; whether this price differs for various dimensions of this domain; and whether it is related to academic achievement. Existing research in the fields of ability grouping, streaming, curriculum tracking,…

  3. 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.

  4. Stochastic arbitrage return and its implication for option pricing

    NASA Astrophysics Data System (ADS)

    Fedotov, Sergei; Panayides, Stephanos

    2005-01-01

    The purpose of this work is to explore the role that random arbitrage opportunities play in pricing financial derivatives. We use a non-equilibrium model to set up a stochastic portfolio, and for the random arbitrage return, we choose a stationary ergodic random process rapidly varying in time. We exploit the fact that option price and random arbitrage returns change on different time scales which allows us to develop an asymptotic pricing theory involving the central limit theorem for random processes. We restrict ourselves to finding pricing bands for options rather than exact prices. The resulting pricing bands are shown to be independent of the detailed statistical characteristics of the arbitrage return. We find that the volatility “smile” can also be explained in terms of random arbitrage opportunities.

  5. How Market Structure Drives Commodity Prices

    NASA Astrophysics Data System (ADS)

    Li, Bin; Wong, K. Y. Michael; Chan, Amos H. M.; So, Tsz Yan; Heimonen, Hermanni; Saad, David

    To understand how market structure drives commodity price trends with respect to resource availability we introduce an agent-based model, in which agents set their prices to maximize profit. At steady state the market self-organizes into three groups: excess producers, consumers and balanced agents. When resources are scarce prices rise sharply below a turning point marking the disappearance of excess producers. By introducing an elasticity parameter to mitigate noise and long-term changes in commodities data, we confirm the trend of rising prices, provide evidence for turning points, and indicate yield points for less essential commodities. This work is supported by Research Grants Council of Hong Kong (Grant Numbers 604512, 605813, and 16322616) and the Leverhulme Trust RPG-2013-48.

  6. Sequential Auctions with Partially Substitutable Goods

    NASA Astrophysics Data System (ADS)

    Vetsikas, Ioannis A.; Jennings, Nicholas R.

    In this paper, we examine a setting in which a number of partially substitutable goods are sold in sequential single unit auctions. Each bidder needs to buy exactly one of these goods. In previous work, this setting has been simplified by assuming that bidders do not know their valuations for all items a priori, but rather are informed of their true valuation for each item right before the corresponding auction takes place. This assumption simplifies the strategies of bidders, as the expected revenue from future auctions is the same for all bidders due to the complete lack of private information. In our analysis we don't make this assumption. This complicates the computation of the equilibrium strategies significantly. We examine this setting both for first and second-price auction variants, initially when the closing prices are not announced, for which we prove that sequential first and second-price auctions are revenue equivalent. Then we assume that the prices are announced; because of the asymmetry in the announced prices between the two auction variants, revenue equivalence does not hold in this case. We finish the paper, by giving some initial results about the case when free disposal is allowed, and therefore a bidder can purchase more than one item.

  7. Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments

    NASA Astrophysics Data System (ADS)

    Garmdare, Hamid Sattari; Lotfi, M. M.; Honarvar, Mahboobeh

    2018-03-01

    Usually, in make-to-order environments which work only in response to the customer's orders, manufacturers for maximizing the profits should offer the best price and delivery time for an order considering the existing capacity and the customer's sensitivity to both the factors. In this paper, an integrated approach for pricing, delivery time setting and scheduling of new arrival orders are proposed based on the existing capacity and accepted orders in system. In the problem, the acquired market demands dependent on the price and delivery time of both the manufacturer and its competitors. A mixed-integer non-linear programming model is presented for the problem. After converting to a pure non-linear model, it is validated through a case study. The efficiency of proposed model is confirmed by comparing it to both the literature and the current practice. Finally, sensitivity analysis for the key parameters is carried out.

  8. Calibration of short rate term structure models from bid-ask coupon bond prices

    NASA Astrophysics Data System (ADS)

    Gomes-Gonçalves, Erika; Gzyl, Henryk; Mayoral, Silvia

    2018-02-01

    In this work we use the method of maximum entropy in the mean to provide a model free, non-parametric methodology that uses only market data to provide the prices of the zero coupon bonds, and then, a term structure of the short rates. The data used consists of the prices of the bid-ask ranges of a few coupon bonds quoted in the market. The prices of the zero coupon bonds obtained in the first stage, are then used as input to solve a recursive set of equations to determine a binomial recombinant model of the short term structure of the interest rates.

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

    Liu, Jialin Frank; Martínez, Maria Gabriela; Anderson, C Lindsay

    This work presents a preliminary analysis considering impact of a grid-connected microgrid on network transmission of the power system. The locational marginal prices of the power system are used to strategically place the microgrid to avoid congestion problems. In addition, a Monte Carlo simulation approach is implemented to confirm that network congestion can be attenuated if appropriate price-based signals are set to define the import and export dynamic between the two systems.

  10. 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.

  11. Alternative Strategies for Pricing Home Work Time.

    ERIC Educational Resources Information Center

    Zick, Cathleen D.; Bryant, W. Keith

    1983-01-01

    Discusses techniques for measuring the value of home work time. Estimates obtained using the reservation wage technique are contrasted with market alternative estimates derived with the same data set. Findings suggest that the market alternative cost method understates the true value of a woman's home time to the household. (JOW)

  12. 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.

  13. Approximation Algorithms for the Highway Problem under the Coupon Model

    NASA Astrophysics Data System (ADS)

    Hamane, Ryoso; Itoh, Toshiya; Tomita, Kouhei

    When a store sells items to customers, the store wishes to decide the prices of 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 the 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 consider the line highway problem (in which each customer is interested in an interval on the line of the items) and the cycle highway problem (in which each customer is interested in an interval on the cycle of the items), and show approximation algorithms for the line highway problem and the cycle highway problem in which the smallest valuation is s and the largest valuation is l (this is called an [s, l]-valuation setting) or all valuations are identical (this is called a single valuation setting).

  14. 47 CFR 61.38 - Supporting information to be submitted with letters of transmittal.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... economic information to support the changed or new matter. (1) For a tariff change the carrier must submit... located in the respective zones, and receive approval of its proposed plan. (c) Working papers and... previously offered, the Chief, Pricing Policy Division must be provided two sets of working papers containing...

  15. Estimating local, organic, and other price premiums of shell eggs in Hawaii.

    PubMed

    Loke, Matthew K; Xu, Xun; Leung, PingSun

    2016-05-01

    Hedonic modeling and retail scanner data were utilized to investigate the influence of local, organic, nutrition benefits, and other attributes of shell eggs on retail price premium in Hawaii. Within a revealed preference framework, the analysis of local and organic attributes, simultaneously, under a single unified setting is important, as such work is highly deficient in the published literature. This paper finds high to moderate price premiums in four key attributes of shell eggs - organic (64%), local (40%), nutrition benefits claimed (33%), and brown shell (18.4%). Large and extra-large sized eggs also experience price premiums over medium sized eggs. With each larger packing size, the estimated coefficients were negative, indicating a price discount, relative to the baseline packing size. However, there is no evidence to support the overwhelming influence of "local" over "organic", as hypothesized in other research work. Overall, the findings in this paper suggest industry producers and retailers should highlight and market effusively the primary attributes of their shell eggs, including "local", to remain competitive in the marketplace. Effective communication channels are crucial to delivering the product information, capturing the attention of consumers, and securing retail sales. © 2016 Poultry Science Association Inc.

  16. Issues in the deregulation of the electric industry

    NASA Astrophysics Data System (ADS)

    Tyler, Cleve Brent

    The electric industry is undergoing a major restructuring which allows competition in the generation portion of the industry. This dissertation explores several pricing issues relevant to this restructuring. First, an extensive overview examines the industry's history, discusses major regulation theories, and relays the major issues of deregulation. Second, a literature review recounts major works in the economics literature on price discrimination, pricing efficiency, and cost estimation. Then, customer specific generation, transmission, distribution, and general and administration costs are estimated for each company. The customer classes are residential, general service, large general service, and large industrial, representing a finer division of customer classes than found in previous studies. Average prices are compiled and marginal prices are determined from a set of utility schedules. Average and marginal price/cost ratios are computed for each customer class. These ratios show that larger use customers face relative price discrimination but operate under more efficient price structures than small use consumers. Finally, issues in peak load pricing are discussed using a model which predicts inefficient capital choice by regulated utilities. Efficiency losses are estimated to be $620 million dollars a year from the lack of peak load prices under regulation. This result is based on the time-of-use pricing predictions from the Department of Energy.

  17. Estimating inpatient hospital prices from state administrative data and hospital financial reports.

    PubMed

    Levit, Katharine R; Friedman, Bernard; Wong, Herbert S

    2013-10-01

    To develop a tool for estimating hospital-specific inpatient prices for major payers. AHRQ Healthcare Cost and Utilization Project State Inpatient Databases and complete hospital financial reporting of revenues mandated in 10 states for 2006. Hospital discharge records and hospital financial information were merged to estimate revenue per stay by payer. Estimated prices were validated against other data sources. Hospital prices can be reasonably estimated for 10 geographically diverse states. All-payer price-to-charge ratios, an intermediate step in estimating prices, compare favorably to cost-to-charge ratios. Estimated prices also compare well with Medicare, MarketScan private insurance, and the Medical Expenditure Panel Survey prices for major payers, given limitations of each dataset. Public reporting of prices is a consumer resource in making decisions about health care treatment; for self-pay patients, they can provide leverage in negotiating discounts off of charges. Researchers can also use prices to increase understanding of the level and causes of price differentials among geographic areas. Prices by payer expand investigational tools available to study the interaction of inpatient hospital price setting among public and private payers--an important asset as the payer mix changes with the implementation of the Affordable Care Act. © Published 2013. This article is a U.S. Government work and is in the public domain in the USA.

  18. The Musharraf Paradox: The Failure of an Economic Success Story

    DTIC Science & Technology

    2008-01-01

    more basic set of issues pre- vailed: People were angry over the fact atta [ flour ] was not avail- able, that food prices were high, and due to this...prices of food items, combined with shortages of sugar, oil and flour , a looming power and gas crisis also worked to dampen the Musharraf economic...resources from the public and private sectors – often to the enrichment of senior officers, both on-duty and retired. The military has come to

  19. Pharmaceutical reference prices. How do they work in practice?

    PubMed

    Dickson, M; Redwood, H

    1998-11-01

    Reference pricing systems are reimbursement ceilings set by payers in an effort to constrain pharmaceutical expenditure for a private or public drug benefit. In recent years, many governments have adopted reference pricing either as a replacement or in addition to product specific price controls. Programme administrators should consider whether these policies are providing the intended benefits or whether there may be a more effective method. This article provides a review of reference pricing in Europe, North America and other countries. There are many similarities in the reference price policies but the markets to which they apply are more likely to be different. The European experience gives a 'once-for-all' lowering effect on pharmaceutical expenditure, often at the expense of compromises on prescribing. In Germany and The Netherlands, reference pricing has been relatively ineffective in lowering expenditure which has led to a succession of other interventions to achieve expenditure control goals. The US also has reference pricing, but it occurs in a very competitive market which may be responsible (at least in part) for the relatively modest growth in expenditure compared with European countries. The review of countries with reference pricing policies suggests that such policies are less effective than competitive markets in moderating pharmaceutical expenditure. Nonetheless, governments continue to pursue reference pricing strategies.

  20. Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions. OECD Economics Department Working Papers No. 486

    ERIC Educational Resources Information Center

    Bassanini, Andrea; Duval, Romain

    2006-01-01

    This paper explores the impact of policies and institutions on employment and unemployment of OECD countries in the past decades. Reduced-form unemployment equations, consistent with standard wage setting/price-setting models, are estimated using cross-country/time-series data from 21 OECD countries over the period 1982-2003. In the…

  1. Building your business--setting your fees: a cost-based approach.

    PubMed

    Duester, K J

    1997-10-01

    Business costs include salary, benefits, self-employment tax, and business and office expenses. Salable time does not include holidays, sick or personal days, and vacations. According to fee-setting experts, most self-employed people engage in revenue-generating activities 50% to 75% of their working hours. Fair prices reflect the cost of your business or service, including all your overhead.

  2. 77 FR 32716 - Price for the 2012 American Eagle San Francisco Two-Coin Silver Proof Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-06-01

    ... DEPARTMENT OF THE TREASURY United States Mint Price for the 2012 American Eagle San Francisco Two...: The United States Mint is announcing the price of the 2012 American Eagle San Francisco Two-Coin Silver Proof Set. The coin set will be offered for sale at a price of $149.95. FOR FURTHER INFORMATION...

  3. Price smarter on the Net.

    PubMed

    Baker, W; Marn, M; Zawada, C

    2001-02-01

    Companies generally have set prices on the Internet in two ways. Many start-ups have offered untenably low prices in a rush to capture first-mover advantage. Many incumbents have simply charged the same prices on-line as they do off-line. Either way, companies are missing a big opportunity. The fundamental value of the Internet lies not in lowering prices or making them consistent but in optimizing them. After all, if it's easy for customers to compare prices on the Internet, it's also easy for companies to track customers' behavior and adjust prices accordingly. The Net lets companies optimize prices in three ways. First, it lets them set and announce prices with greater precision. Different prices can be tested easily, and customers' responses can be collected instantly. Companies can set the most profitable prices, and they can tap into previously hidden customer demand. Second, because it's so easy to change prices on the Internet, companies can adjust prices in response to even small fluctuations in market conditions, customer demand, or competitors' behavior. Third, companies can use the clickstream data and purchase histories that it collects through the Internet to segment customers quickly. Then it can offer segment-specific prices or promotions immediately. By taking full advantage of the unique possibilities afforded by the Internet to set prices with precision, adapt to changing circumstances quickly, and segment customers accurately, companies can get their pricing right. It's one of the ultimate drivers of e-business success.

  4. 77 FR 54659 - Price for the 2012 Annual Uncirculated Dollar Coin Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-09-05

    ... DEPARTMENT OF THE TREASURY United States Mint Price for the 2012 Annual Uncirculated Dollar Coin Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing a price of $54.95 for the 2012 Annual Uncirculated Dollar Coin Set. This set...

  5. Modeling stock price dynamics by continuum percolation system and relevant complex systems analysis

    NASA Astrophysics Data System (ADS)

    Xiao, Di; Wang, Jun

    2012-10-01

    The continuum percolation system is developed to model a random stock price process in this work. Recent empirical research has demonstrated various statistical features of stock price changes, the financial model aiming at understanding price fluctuations needs to define a mechanism for the formation of the price, in an attempt to reproduce and explain this set of empirical facts. The continuum percolation model is usually referred to as a random coverage process or a Boolean model, the local interaction or influence among traders is constructed by the continuum percolation, and a cluster of continuum percolation is applied to define the cluster of traders sharing the same opinion about the market. We investigate and analyze the statistical behaviors of normalized returns of the price model by some analysis methods, including power-law tail distribution analysis, chaotic behavior analysis and Zipf analysis. Moreover, we consider the daily returns of Shanghai Stock Exchange Composite Index from January 1997 to July 2011, and the comparisons of return behaviors between the actual data and the simulation data are exhibited.

  6. 77 FR 3035 - Pricing for 2012 Annual Sets and America the Beautiful Quarters® Bags & Rolls

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-01-20

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2012 Annual Sets and America the...: Notice. SUMMARY: The United States Mint is announcing 2012 pricing for annual sets and the America the... States Mint Uncirculated Coin Set[supreg] 27.95 2012 United States Mint America the Beautiful Quarters...

  7. Managing change in health care institutions. The Austin experience 1973-1983.

    PubMed

    Price, I

    1984-01-01

    This article is written by Ian Price who was engaged as a consultant by the Austin Hospital in 1973 to conduct an organisation study. The result of his work was to establish a divisional organisation which integrated the University of Melbourne into the hospital management structure. His work set in train an extensive organisational development program which has become widely known and regarded in the hospital field. After an absence of nine years Ian Price has taken up an appointment with the Austin an Executive Assistant to the General Manager. This article summarises the process which he adopted and the rationale for the changes which were implemented. The article also presents a brief resume of these changes ten years on.

  8. 26 CFR 1.274-2 - Disallowance of deductions for certain expenses for entertainment, amusement, recreation, or travel.

    Code of Federal Regulations, 2012 CFR

    2012-04-01

    ... such as commuting to and from work. On the other hand, the providing of a hotel room or an automobile... considered to be in a clear business setting. Also, entertainment which has the principal effect of a price...

  9. 26 CFR 1.274-2 - Disallowance of deductions for certain expenses for entertainment, amusement, recreation, or travel.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... such as commuting to and from work. On the other hand, the providing of a hotel room or an automobile... considered to be in a clear business setting. Also, entertainment which has the principal effect of a price...

  10. 26 CFR 1.274-2 - Disallowance of deductions for certain expenses for entertainment, amusement, recreation, or travel.

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... such as commuting to and from work. On the other hand, the providing of a hotel room or an automobile... considered to be in a clear business setting. Also, entertainment which has the principal effect of a price...

  11. 26 CFR 1.274-2 - Disallowance of deductions for certain expenses for entertainment, amusement, recreation, or travel.

    Code of Federal Regulations, 2013 CFR

    2013-04-01

    ... such as commuting to and from work. On the other hand, the providing of a hotel room or an automobile... considered to be in a clear business setting. Also, entertainment which has the principal effect of a price...

  12. Comparing projected impacts of cigarette floor price and excise tax policies on socioeconomic disparities in smoking

    PubMed Central

    Golden, Shelley D; Farrelly, Matthew C; Luke, Douglas A; Ribisl, Kurt M

    2016-01-01

    Background About half of all US states have cigarette minimum price laws (MPLs) that require a per cent mark-up on prices, but research suggests they may not be very effective in raising prices. An alternative type of MPL sets a floor price below which packs cannot be sold, and may be more promising. This new type of MPL policy has only been implemented in 1 city, therefore its benefits relative to excise taxes is difficult to assess. Methods We constructed a set of possible state floor price MPL options, and matched them to possible state excise tax hikes designed to produce similar average price increases. Using self-reported price and cigarette consumption data from 23 521 participants in the 2010–2011 Tobacco Use Supplement of the Current Population Survey, we projected changes in pack prices and cigarette consumption following implementation of each paired MPL and tax option, for lower and higher income groups. Results We project that state MPLs set at the average reported pack price would raise prices by $0.33 and reduce cigarette consumption by about 4%; a tax with a similar average price effect would reduce consumption by 2.3%. MPLs and taxes that raise average prices by more than $2.00 would reduce consumption by 15.9% and 13.5%, respectively. In all models, we project that MPLs will reduce income-based smoking disparities more than their comparable excise taxes. Conclusions Floor price cigarette MPLs set at or above what consumers currently report paying could reduce both tobacco use and socioeconomic disparities in smoking. PMID:27697949

  13. 77 FR 69548 - Price for the 2012 Limited Edition Silver Proof SetTM

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-11-19

    ... DEPARTMENT OF THE TREASURY United States Mint Price for the 2012 Limited Edition Silver Proof Set TM AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing a price of $149.95 for the 2012 Limited Edition Silver Proof Set TM . FOR FURTHER...

  14. 76 FR 67799 - Pricing for the American Eagle 25th Anniversary Silver Coin Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2011-11-02

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for the American Eagle 25th Anniversary Silver Coin Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing the price of the American Eagle 25th Anniversary Silver Coin Set. The...

  15. 77 FR 42365 - Price for the Making American History Coin and Currency Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-07-18

    ... DEPARTMENT OF THE TREASURY United States Mint Price for the Making American History Coin and Currency Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing a price of $72.95 for the Making American History Coin and Currency Set. FOR...

  16. 78 FR 70414 - Pricing for the 2013 Coin and Chronicles Set-Theodore Roosevelt

    Federal Register 2010, 2011, 2012, 2013, 2014

    2013-11-25

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for the 2013 Coin and Chronicles Set--Theodore Roosevelt AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing a price of $57.95 for the 2013 Coin and Chronicles Set--Theodore...

  17. Creative pricing strategies for medical services.

    PubMed

    Tellis, G J

    1987-01-01

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

  18. Study on Comparison of Bidding and Pricing Behavior Distinction between Estimate Methods

    NASA Astrophysics Data System (ADS)

    Morimoto, Emi; Namerikawa, Susumu

    The most characteristic trend on bidding and pricing behavior distinction in recent years is the increasing number of bidders just above the criteria for low-price bidding investigations. The contractor's markup is the difference between the bidding price and the execution price. Therefore, the contractor's markup is the difference between criteria for low-price bidding investigations price and the execution price in the public works bid in Japan. Virtually, bidder's strategies and behavior have been controlled by public engineer's budgets. Estimation and bid are inseparably linked in the Japanese public works procurement system. The trial of the unit price-type estimation method begins in 2004. On another front, accumulated estimation method is one of the general methods in public works. So, there are two types of standard estimation methods in Japan. In this study, we did a statistical analysis on the bid information of civil engineering works for the Ministry of Land, Infrastructure, and Transportation in 2008. It presents several issues that bidding and pricing behavior is related to an estimation method (several estimation methods) for public works bid in Japan. The two types of standard estimation methods produce different results that number of bidders (decide on bid-no bid strategy) and distribution of bid price (decide on mark-up strategy).The comparison on the distribution of bid prices showed that the percentage of the bid concentrated on the criteria for low-price bidding investigations have had a tendency to get higher in the large-sized public works by the unit price-type estimation method, comparing with the accumulated estimation method. On one hand, the number of bidders who bids for public works estimated unit-price tends to increase significantly Public works estimated unit-price is likely to have been one of the factors for the construction companies to decide if they participate in the biddings.

  19. 78 FR 24816 - Pricing for the 2013 American Eagle West Point Two-Coin Silver Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2013-04-26

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for the 2013 American Eagle West Point Two-Coin Silver Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing the price of the 2013 American Eagle West Point Two-Coin Silver Set. The...

  20. 75 FR 17832 - Pricing for 2010 Lincoln One-Cent Coin Two-Roll Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-04-07

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2010 Lincoln One-Cent Coin Two-Roll Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing the price of the 2010 Lincoln One-Cent Coin Two-Roll Set. The 2010 Lincoln One-Cent...

  1. 75 FR 10345 - Pricing for 2010 United States Mint America the Beautiful Quarters Proof Set, etc.

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-03-05

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2010 United States Mint America the.... SUMMARY: The United States Mint is announcing the prices of the 2010 United States Mint America the Beautiful Quarters Proof Set; 2010 United States Mint America the Beautiful Quarters Silver Proof Set; 2010...

  2. Comparing projected impacts of cigarette floor price and excise tax policies on socioeconomic disparities in smoking.

    PubMed

    Golden, Shelley D; Farrelly, Matthew C; Luke, Douglas A; Ribisl, Kurt M

    2016-10-01

    About half of all US states have cigarette minimum price laws (MPLs) that require a per cent mark-up on prices, but research suggests they may not be very effective in raising prices. An alternative type of MPL sets a floor price below which packs cannot be sold, and may be more promising. This new type of MPL policy has only been implemented in 1 city, therefore its benefits relative to excise taxes is difficult to assess. We constructed a set of possible state floor price MPL options, and matched them to possible state excise tax hikes designed to produce similar average price increases. Using self-reported price and cigarette consumption data from 23 521 participants in the 2010-2011 Tobacco Use Supplement of the Current Population Survey, we projected changes in pack prices and cigarette consumption following implementation of each paired MPL and tax option, for lower and higher income groups. We project that state MPLs set at the average reported pack price would raise prices by $0.33 and reduce cigarette consumption by about 4%; a tax with a similar average price effect would reduce consumption by 2.3%. MPLs and taxes that raise average prices by more than $2.00 would reduce consumption by 15.9% and 13.5%, respectively. In all models, we project that MPLs will reduce income-based smoking disparities more than their comparable excise taxes. Floor price cigarette MPLs set at or above what consumers currently report paying could reduce both tobacco use and socioeconomic disparities in smoking. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

  3. The Questionable Economic Case for Value-Based Drug Pricing in Market Health Systems.

    PubMed

    Pauly, Mark V

    2017-02-01

    This article investigates the economic theory and interpretation of the concept of "value-based pricing" for new breakthrough drugs with no close substitutes in a context (such as the United States) in which a drug firm with market power sells its product to various buyers. The interpretation is different from that in a country that evaluates medicines for a single public health insurance plan or a set of heavily regulated plans. It is shown that there will not ordinarily be a single value-based price but rather a schedule of prices with different volumes of buyers at each price. Hence, it is incorrect to term a particular price the value-based price, or to argue that the profit-maximizing monopoly price is too high relative to some hypothesized value-based price. When effectiveness of treatment or value of health is heterogeneous, the profit-maximizing price can be higher than that associated with assumed values of quality-adjusted life-years. If the firm sets a price higher than the value-based price for a set of potential buyers, the optimal strategy of the buyers is to decline to purchase that drug. The profit-maximizing price will come closer to a unique value-based price if demand is less heterogeneous. Copyright © 2017 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

  4. Competitive pricing and the challenge of cost control in medicare.

    PubMed

    Coulam, Robert F; Feldman, Roger D; Dowd, Bryan E

    2011-08-01

    The Medicare program faces a serious challenge: it must find ways to control costs but must do so through a system of congressional oversight that necessarily limits its choices. We look at one approach to prudent purchasing - competitive pricing - that Medicare has attempted many times and in various ways since the beginning of the program, and in all but one case unsuccessfully due to the politics of provider opposition working through Congress and the courts. We look at some related efforts to change Medicare pricing to explore when the program has been successful in making dramatic changes in how it pays for health care. A set of recommendations emerges for ways to respond to the impediments of law and politics that have obstructed change to more efficient payment methods. Except in unusual cases, competitive pricing threatens too many stakeholders in too many ways for key political actors to support it. But an unusual case may arise in the coming Medicare fiscal crisis, a crisis related in part to the prices Medicare pays. At that point, competitive pricing may look less like a problem and more like a solution coming at a time when the system badly needs one.

  5. Joint decision of pricing and order quantity by considering product substitution in dual channel supply chain

    NASA Astrophysics Data System (ADS)

    Widodo, Erwin

    2017-11-01

    Dual channel supply chain (DCSC) has been attracting many researchers' attention. Their contributions mainly are in two folds, namely pricing problem and inventory policy. However, research to address both pricing and inventory problems simultaneously are still scarce. Meanwhile in recent competitive market, product substitution is an unavoidable practice in fulfilling customer demand when the main product is unavailable. Thus how to decide price and order quantity by considering product substitution under DCSC setting is an interesting topic to address. In this paper, corresponding mathematical model incorporating such problem is proposed. This model consists of objective function measuring sales revenue and inventory cost, and some constraints to assure positive profit margin, interplaying price between online and offline channel, and positive demand. Two pricing schemes, namely Vertical Nash and Stackelberg Leadership are evaluated. The result shows that in any situation of substitution level, Vertical Nash solution provides higher financial performance than that under Stackelberg Leadership. In addition, this work's results have also revealed that there exist some threshold values differentiating when it is better off to apply Vertical Nash scenario an, when Stackelberg Leadership scenario is preferable.

  6. Comparing gender discrimination and inequality in indie and traditional publishing.

    PubMed

    Weinberg, Dana B; Kapelner, Adam

    2018-01-01

    In traditional publishing, female authors' titles command nearly half (45%) the price of male authors' and are underrepresented in more prestigious genres, and books are published by publishing houses, which determined whose books get published, subject classification, and retail price. In the last decade, the growth of digital technologies and sales platforms have enabled unprecedented numbers of authors to bypass publishers to publish and sell books. The rise of indie publishing (aka self-publishing) reflects the growth of the "gig" economy, where the influence of firms has diminished and workers are exposed more directly to external markets. Encompassing the traditional and the gig economy, the book industry illuminates how the gig economy may disrupt, replicate, or transform the gender discrimination mechanisms and inequality found in the traditional economy. In a natural experiment spanning from 2002 to 2012 and including over two million book titles, we compare discrimination mechanisms and inequality in indie and traditional publishing. We find that indie publishing, though more egalitarian, largely replicates traditional publishing's gender discrimination patterns, showing an unequal distribution of male and female authors by genre (allocative discrimination), devaluation of genres written predominantly by female authors (valuative discrimination), and lower prices within genres for books by female authors (within-job discrimination). However, these discrimination mechanisms are associated with far less price inequality in indie, only 7%, in large part due to the smaller and lower range of prices in indie publishing compared to traditional publishing. We conclude that, with greater freedom, workers in the gig economy may be inclined to greater equality but will largely replicate existing labor market segmentation and the lower valuation of female-typical work and of female workers. Nonetheless, price setting for work may be more similar for workers in the gig economy due to market competition that will compress prices ranges.

  7. Cigarette Prices and Community Price Comparisons in US Military Retail Stores

    PubMed Central

    Poston, Walker S.C.; Haddock, Christopher K.; Jahnke, Sara A.; Smith, Elizabeth; Malone, Ruth E.; Jitnarin, Nattinee

    2016-01-01

    BACKGROUND Tobacco pricing impacts use, yet military retailers sell discounted cigarettes. No systematic research has examined how military retail stores use internal community comparisons to set prices. We analyzed data obtained through a Freedom of Information Act request on community price comparisons used by military retail to set cigarette prices. METHODS Data on cigarette prices were obtained directly from military retailers (exchanges) from January 2013–March 2014. Complete pricing data was provided from exchanges on 114 military installations. RESULTS The average price for a pack of Marlboro cigarettes in military exchanges was $5.51, which was similar to the average lowest community price ($5.45; Mean Difference=−0.06; p=0.104) and almost a $1.00 lower than the average highest price ($6.44). Military retail prices were 2.1%, 6.2%, and 13.7% higher than the lowest, average, and highest community comparisons and 18.2% of exchange prices violated pricing instructions. There was a negative correlation (r = −.21, p = 0.02) between the number of community stores surveyed and exchange cigarette prices. CONCLUSIONS There was no significant difference between prices for cigarettes on military installations and the lowest average community comparison, and in some locations the prices violated DoD policy. US Marine Corps exchanges had the lowest prices, which is of concern given that the Marines also have the highest rates of tobacco use in the DoD. Given the relationship between tobacco product prices and demand, a common minimum (or floor) shelf price for tobacco products should be set for all exchanges and discount coupon redemptions should be prohibited. PMID:27553357

  8. Simulated Models Suggest That Price per Calorie Is the Dominant Price Metric That Low-Income Individuals Use for Food Decision Making123

    PubMed Central

    2016-01-01

    Background: The price of food has long been considered one of the major factors that affects food choices. However, the price metric (e.g., the price of food per calorie or the price of food per gram) that individuals predominantly use when making food choices is unclear. Understanding which price metric is used is especially important for studying individuals with severe budget constraints because food price then becomes even more important in food choice. Objective: We assessed which price metric is used by low-income individuals in deciding what to eat. Methods: With the use of data from NHANES and the USDA Food and Nutrient Database for Dietary Studies, we created an agent-based model that simulated an environment representing the US population, wherein individuals were modeled as agents with a specific weight, age, and income. In our model, agents made dietary food choices while meeting their budget limits with the use of 1 of 3 different metrics for decision making: energy cost (price per calorie), unit price (price per gram), and serving price (price per serving). The food consumption patterns generated by our model were compared to 3 independent data sets. Results: The food choice behaviors observed in 2 of the data sets were found to be closest to the simulated dietary patterns generated by the price per calorie metric. The behaviors observed in the third data set were equidistant from the patterns generated by price per calorie and price per serving metrics, whereas results generated by the price per gram metric were further away. Conclusions: Our simulations suggest that dietary food choice based on price per calorie best matches actual consumption patterns and may therefore be the most salient price metric for low-income populations. PMID:27655757

  9. Simulated Models Suggest That Price per Calorie Is the Dominant Price Metric That Low-Income Individuals Use for Food Decision Making.

    PubMed

    Beheshti, Rahmatollah; Igusa, Takeru; Jones-Smith, Jessica

    2016-11-01

    The price of food has long been considered one of the major factors that affects food choices. However, the price metric (e.g., the price of food per calorie or the price of food per gram) that individuals predominantly use when making food choices is unclear. Understanding which price metric is used is especially important for studying individuals with severe budget constraints because food price then becomes even more important in food choice. We assessed which price metric is used by low-income individuals in deciding what to eat. With the use of data from NHANES and the USDA Food and Nutrient Database for Dietary Studies, we created an agent-based model that simulated an environment representing the US population, wherein individuals were modeled as agents with a specific weight, age, and income. In our model, agents made dietary food choices while meeting their budget limits with the use of 1 of 3 different metrics for decision making: energy cost (price per calorie), unit price (price per gram), and serving price (price per serving). The food consumption patterns generated by our model were compared to 3 independent data sets. The food choice behaviors observed in 2 of the data sets were found to be closest to the simulated dietary patterns generated by the price per calorie metric. The behaviors observed in the third data set were equidistant from the patterns generated by price per calorie and price per serving metrics, whereas results generated by the price per gram metric were further away. Our simulations suggest that dietary food choice based on price per calorie best matches actual consumption patterns and may therefore be the most salient price metric for low-income populations. © 2016 American Society for Nutrition.

  10. 76 FR 15047 - Pricing for 2010 United States Mint America the Beautiful Quarters Silver Proof SetTM

    Federal Register 2010, 2011, 2012, 2013, 2014

    2011-03-18

    ... Beautiful Quarters Silver Proof Set. In accordance with 31 U.S.C. 9701(b)(2)(B), the United States Mint is... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2010 United States Mint America the Beautiful Quarters Silver Proof Set\\TM\\, etc. ACTION: Pricing for 2010 United States Mint America the...

  11. 78 FR 38452 - Price for the 2013 Girl Scouts of the USA Young Collector Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2013-06-26

    ... DEPARTMENT OF THE TREASURY United States Mint Price for the 2013 Girl Scouts of the USA Young Collector Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing a price of $54.95 for the 2013 Girl Scouts of the USA Young Collector Set. FOR...

  12. 16 CFR 233.5 - Miscellaneous price comparisons.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ... 16 Commercial Practices 1 2010-01-01 2010-01-01 false Miscellaneous price comparisons. 233.5... DECEPTIVE PRICING § 233.5 Miscellaneous price comparisons. The practices covered in the provisions set forth... principles. For example, retailers should not advertise a retail price as a “wholesale” price. They should...

  13. Cigarette prices and community price comparisons in US military retail stores.

    PubMed

    Poston, Walker S C; Haddock, Christopher K; Jahnke, Sara A; Smith, Elizabeth; Malone, Ruth E; Jitnarin, Nattinee

    2016-09-01

    Tobacco pricing impacts use, yet military retailers sell discounted cigarettes. No systematic research has examined how military retail stores use internal community comparisons to set prices. We analysed data obtained through a Freedom of Information Act request on community price comparisons used by military retail to set cigarette prices. Data on cigarette prices were obtained directly from military retailers (exchanges) from January 2013 to March 2014. Complete pricing data were obtained from exchanges on 114 military installations. The average price for a pack of Marlboro cigarettes in military exchanges was US$5.51, which was similar to the average lowest community price (US$5.45; mean difference=-0.06; p=0.104) and almost a US$1.00 lower than the average highest price (US$6.44). Military retail prices were 2.1%, 6.2% and 13.7% higher than the lowest, average and highest community comparisons, respectively, and 18.2% of exchange prices violated pricing instructions. There was a negative correlation (r=-0.21, p=0.02) between the number of community stores surveyed and exchange cigarette prices. There was no significant difference between prices for cigarettes on military installations and the lowest average community comparison, and in some locations, the prices violated Department of Defense (DoD) policy. US Marine Corps exchanges had the lowest prices, which is of concern given that the Marines also have the highest rates of tobacco use in the DoD. Given the relationship between tobacco product prices and demand, a common minimum (or floor) shelf price for tobacco products should be set for all exchanges and discount coupon redemptions should be prohibited. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

  14. 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

    ... defective pricing or defective cost or pricing data. 1615.407-1 Section 1615.407-1 Federal Acquisition... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.407-1 Rate reduction for defective pricing or defective cost or pricing data. The clause set forth in section 1652.215-70...

  15. 48 CFR 1615.407-1 - Rate reduction for defective pricing or defective cost or pricing data.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... defective pricing or defective cost or pricing data. 1615.407-1 Section 1615.407-1 Federal Acquisition... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.407-1 Rate reduction for defective pricing or defective cost or pricing data. The clause set forth in section 1652.215-70...

  16. 48 CFR 1615.407-1 - Rate reduction for defective pricing or defective cost or pricing data.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... defective pricing or defective cost or pricing data. 1615.407-1 Section 1615.407-1 Federal Acquisition... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.407-1 Rate reduction for defective pricing or defective cost or pricing data. The clause set forth in section 1652.215-70...

  17. 48 CFR 1615.407-1 - Rate reduction for defective pricing or defective cost or pricing data.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... defective pricing or defective cost or pricing data. 1615.407-1 Section 1615.407-1 Federal Acquisition... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.407-1 Rate reduction for defective pricing or defective cost or pricing data. The clause set forth in section 1652.215-70...

  18. 78 FR 5245 - Pricing for New Product-America the Beautiful Quarters® Three-Roll Set

    Federal Register 2010, 2011, 2012, 2013, 2014

    2013-01-24

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for New Product--America the Beautiful Quarters[supreg] Three-Roll Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing pricing for a new product, the America the Beautiful...

  19. 48 CFR 219.202-5 - Data collection and reporting requirements.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... historically black college and university/minority institution set-asides, divide the difference between the fair market price and the award price by the fair market price. (2) For price evaluation adjustment...

  20. 48 CFR 219.202-5 - Data collection and reporting requirements.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... historically black college and university/minority institution set-asides, divide the difference between the fair market price and the award price by the fair market price. (2) For price evaluation adjustment...

  1. 48 CFR 219.202-5 - Data collection and reporting requirements.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... historically black college and university/minority institution set-asides, divide the difference between the fair market price and the award price by the fair market price. (2) For price evaluation adjustment...

  2. 48 CFR 219.202-5 - Data collection and reporting requirements.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... historically black college and university/minority institution set-asides, divide the difference between the fair market price and the award price by the fair market price. (2) For price evaluation adjustment...

  3. 48 CFR 219.202-5 - Data collection and reporting requirements.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... historically black college and university/minority institution set-asides, divide the difference between the fair market price and the award price by the fair market price. (2) For price evaluation adjustment...

  4. Pricing and reimbursement of pharmaceuticals in the Czech Republic and Sweden.

    PubMed

    Davidova, Jana; Praznovcova, Lenka; Lundborg, Cecilia Stålsby

    2008-01-01

    To describe and compare price regulation and reimbursement in the Czech Republic and Sweden. Legal documents, government reports, statutory information, annual reports and scientific articles were searched using the keywords: pharmaceutical market regulation, drug policy, drug pricing, drug reimbursement and patients' participation in costs concerning both countries. Approaches to regulation and regulatory steps concerning prices were compared between the countries. (i) Institutional responsibilities in pricing and reimbursement of pharmaceuticals; (ii) principles of patients' participation in costs on pharmaceuticals. Substantial differences were found in terms of pricing. In the Czech Republic, the Ministry of Finance sets maximal prices for pharmaceuticals whereas in Sweden there is a process of price regulation combined with reimbursement decisions taken by the Pharmaceutical Benefits Board. Together with a system of state-owned pharmacies, this ensures that drug prices in Sweden are fixed at the same level throughout the country. In the Czech Republic, prices may differ, since only maximal price levels are set. In both countries, decisions about reimbursement are taken at the national or state level whereas insurance funds or county councils are responsible for covering costs. The private share of pharmaceutical expenditures is substantially lower in the Czech Republic, even though there is no maximal level for patient's co-payment, as there is in Sweden. Differences in price setting and some other regulations of the pharmaceutical market were found. Both systems are designed to promote rational use of pharmaceuticals; and are based on social solidarity.

  5. CHAMPUS (Civilian Health and Medical Program of the Uniformed Services) Reform: Will It Work? An Analysis of the CHAMPUS Reform Initiative.

    DTIC Science & Technology

    1987-12-01

    eterinarians, optometrists, podiatrists, pharmacists , psycologists, nurse practitioners, rhvsician assistants, and others. In addition, over 146,000 enlisted...and the uti -lization data needed for ood resource C. CONTROL OF HEALTH CARE COSTS 1-,- la c ot- regional fixed-price contracts is set forth by the fram

  6. The Impact of Changing Affluence on Diet and Demand Patterns for Agricultural Commodities. World Bank Staff Working Papers Number 785.

    ERIC Educational Resources Information Center

    Chaudhri, Rajiv; Timmer, C. Peter

    Demand for agricultural commodities, particularly for basic food-stuffs, depends on a household's income, competitive prices, and a set of unique household characteristics which include tastes, location, education, family composition, and farm status. This monograph reviews disaggregated evidence at the national level on the relative contribution…

  7. Spatial competition and price formation

    NASA Astrophysics Data System (ADS)

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

    2000-12-01

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

  8. 13 CFR 125.19 - When may a contracting officer set-aside a procurement for SDVO SBCs?

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... made at fair market price. Effective Date Note: At 75 FR 62281, Oct. 7, 2010, § 125.19 was amended by... market prices. This requirement does not preclude a contracting officer from setting aside a contract... fair market prices. However, after conducting market research, the contracting officer shall first...

  9. 78 FR 70414 - Pricing for the 2013 United States Mint Limited Edition Silver Proof SetTM

    Federal Register 2010, 2011, 2012, 2013, 2014

    2013-11-25

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for the 2013 United States Mint Limited Edition Silver Proof Set TM AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing a price of $139.95 for the 2013 United States Mint Limited...

  10. 77 FR 14600 - Pricing for 2012 Kennedy Half-Dollar Bags and Rolls, Bronze Medals, the First Spouse Bronze Medal...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-03-12

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2012 Kennedy Half-Dollar Bags and Rolls, Bronze Medals, the First Spouse Bronze Medal Set and the Birth Set AGENCY: United States Mint, Department of the Treasury. ACTION: Notice. SUMMARY: The United States Mint is announcing 2012 pricing for...

  11. Can Payers Use Prices to Improve Quality? Evidence from English Hospitals.

    PubMed

    Allen, Thomas; Fichera, Eleonora; Sutton, Matt

    2016-01-01

    In most activity-based financing systems, payers set prices reactively based on historical averages of hospital reported costs. If hospitals respond to prices, payers might set prices proactively to affect the volume of particular treatments or clinical practice. We evaluate the effects of a unique initiative in England in which the price offered to hospitals for discharging patients on the same day as a particular procedure was increased by 24%, while the price for inpatient treatment remained unchanged. Using national hospital records for 205,784 patients admitted for the incentivised procedure and 838,369 patients admitted for a range of non-incentivised procedures between 1 December 2007 and 31 March 2011, we consider whether this price change had the intended effect and/or produced unintended effects. We find that the price change led to an almost six percentage point increase in the daycase rate and an 11 percentage point increase in the planned daycase rate. Patients benefited from a lower proportion of procedures reverted to open surgery during a planned laparoscopic procedure and from a reduction in long stays. There was no evidence that readmission and death rates were affected. The results suggest that payers can set prices proactively to incentivise hospitals to improve quality. Copyright © 2014 John Wiley & Sons, Ltd.

  12. Managing Disease Risks from Trade: Strategic Behavior with Many Choices and Price Effects.

    PubMed

    Chitchumnong, Piyayut; Horan, Richard D

    2018-03-16

    An individual's infectious disease risks, and hence the individual's incentives for risk mitigation, may be influenced by others' risk management choices. If so, then there will be strategic interactions among individuals, whereby each makes his or her own risk management decisions based, at least in part, on the expected decisions of others. Prior work has shown that multiple equilibria could arise in this setting, with one equilibrium being a coordination failure in which individuals make too few investments in protection. However, these results are largely based on simplified models involving a single management choice and fixed prices that may influence risk management incentives. Relaxing these assumptions, we find strategic interactions influence, and are influenced by, choices involving multiple management options and market price effects. In particular, we find these features can reduce or eliminate concerns about multiple equilibria and coordination failure. This has important policy implications relative to simpler models.

  13. 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…

  14. 75 FR 60843 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-10-01

    ... Effectiveness of a Proposed Rule Change Relating to FINRA Trade Reporting Notice on Price Validation and Price... (``Notice'') that explains the price validation protocol of the FINRA trade reporting facilities and sets... trades by comparing the submitted price against price validation parameters established by FINRA...

  15. Using a Second-Price Auction to set Military Retention Bonus Levels: An Application to the Australian Army

    DTIC Science & Technology

    2008-03-01

    and do not reflect the official policy or position of the Department of Defense or the U.S. Government. 12a. DISTRIBUTION / AVAILABILITY STATEMENT...auction is used to set salaries levels in a generic labor market scenario. The experimental results support the literature: a second-price auction...analyses an experiment where a sealed-bid, second-price auction is used to set salaries levels in a generic labor market scenario. The experimental

  16. Comparing gender discrimination and inequality in indie and traditional publishing

    PubMed Central

    Kapelner, Adam

    2018-01-01

    In traditional publishing, female authors’ titles command nearly half (45%) the price of male authors’ and are underrepresented in more prestigious genres, and books are published by publishing houses, which determined whose books get published, subject classification, and retail price. In the last decade, the growth of digital technologies and sales platforms have enabled unprecedented numbers of authors to bypass publishers to publish and sell books. The rise of indie publishing (aka self-publishing) reflects the growth of the “gig” economy, where the influence of firms has diminished and workers are exposed more directly to external markets. Encompassing the traditional and the gig economy, the book industry illuminates how the gig economy may disrupt, replicate, or transform the gender discrimination mechanisms and inequality found in the traditional economy. In a natural experiment spanning from 2002 to 2012 and including over two million book titles, we compare discrimination mechanisms and inequality in indie and traditional publishing. We find that indie publishing, though more egalitarian, largely replicates traditional publishing’s gender discrimination patterns, showing an unequal distribution of male and female authors by genre (allocative discrimination), devaluation of genres written predominantly by female authors (valuative discrimination), and lower prices within genres for books by female authors (within-job discrimination). However, these discrimination mechanisms are associated with far less price inequality in indie, only 7%, in large part due to the smaller and lower range of prices in indie publishing compared to traditional publishing. We conclude that, with greater freedom, workers in the gig economy may be inclined to greater equality but will largely replicate existing labor market segmentation and the lower valuation of female-typical work and of female workers. Nonetheless, price setting for work may be more similar for workers in the gig economy due to market competition that will compress prices ranges. PMID:29630619

  17. Pricing and Promotion Effects on Low-Fat Vending Snack Purchases: The CHIPS Study.

    ERIC Educational Resources Information Center

    French, Simone A.; Jeffery, Robert W.; Story, Mary; Breitlow, Kyle K.; Baxter, Judith S.; Hannan, Peter; Snyder, M. Patricia

    2001-01-01

    Examined the effects of pricing and promotion strategies on purchases of low-fat snacks from vending machines set up at secondary schools and worksites in Minnesota. Analysis of sales data indicated that reducing relative prices on low-fat snacks was very effective in promoting lower-fat snack purchases from vending machines in both settings. (SM)

  18. 48 CFR 252.216-7003 - Economic price adjustment-wage rates or material prices controlled by a foreign government.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Controlled by a Foreign Government (JUN 1997) (a) The Contractor represents that the prices set forth in this... revised by the government named in paragraph (a) of this clause, the Contracting Officer shall make an... set by the government named in paragraph (a) of this clause. The Contractor shall make available its...

  19. 48 CFR 252.216-7003 - Economic price adjustment-wage rates or material prices controlled by a foreign government.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... Controlled by a Foreign Government (JUN 1997) (a) The Contractor represents that the prices set forth in this... revised by the government named in paragraph (a) of this clause, the Contracting Officer shall make an... set by the government named in paragraph (a) of this clause. The Contractor shall make available its...

  20. An Adaptive Tradeoff Algorithm for Multi-issue SLA Negotiation

    NASA Astrophysics Data System (ADS)

    Son, Seokho; Sim, Kwang Mong

    Since participants in a Cloud may be independent bodies, mechanisms are necessary for resolving different preferences in leasing Cloud services. Whereas there are currently mechanisms that support service-level agreement negotiation, there is little or no negotiation support for concurrent price and timeslot for Cloud service reservations. For the concurrent price and timeslot negotiation, a tradeoff algorithm to generate and evaluate a proposal which consists of price and timeslot proposal is necessary. The contribution of this work is thus to design an adaptive tradeoff algorithm for multi-issue negotiation mechanism. The tradeoff algorithm referred to as "adaptive burst mode" is especially designed to increase negotiation speed and total utility and to reduce computational load by adaptively generating concurrent set of proposals. The empirical results obtained from simulations carried out using a testbed suggest that due to the concurrent price and timeslot negotiation mechanism with adaptive tradeoff algorithm: 1) both agents achieve the best performance in terms of negotiation speed and utility; 2) the number of evaluations of each proposal is comparatively lower than previous scheme (burst-N).

  1. 48 CFR 252.247-7001 - Price adjustment.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Price adjustment. 252.247... Clauses 252.247-7001 Price adjustment. As prescribed in 247.270-4(b), use the following clause: Price Adjustment (JAN 1997) (a) The Contractor warrants that the prices set forth in this contract— (1) Are based...

  2. 47 CFR 51.503 - General pricing standard.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... 47 Telecommunication 3 2010-10-01 2010-10-01 false General pricing standard. 51.503 Section 51.503... Pricing of Elements § 51.503 General pricing standard. (a) An incumbent LEC shall offer elements to... commission— (1) Pursuant to the forward-looking economic cost-based pricing methodology set forth in §§ 51...

  3. Assessing Tuition and Student Aid Strategies: Using Price-Response Measures to Simulate Pricing Alternatives.

    ERIC Educational Resources Information Center

    St. John, Edward P.

    1994-01-01

    A study used price-response measures from recent national studies to assess college and university pricing (tuition and student aid) alternatives in diverse institutional settings. It is concluded that such analyses are feasible. Analysis indicated limits to "Robin Hood" pricing patterns are predominant in private colleges. Consideration…

  4. Consumer food choices: the role of price and pricing strategies.

    PubMed

    Steenhuis, Ingrid H M; Waterlander, Wilma E; de Mul, Anika

    2011-12-01

    To study differences in the role of price and value in food choice between low-income and higher-income consumers and to study the perception of consumers about pricing strategies that are of relevance during grocery shopping. A cross-sectional study was conducted using structured, written questionnaires. Food choice motives as well as price perceptions and opinion on pricing strategies were measured. The study was carried out in point-of-purchase settings, i.e. supermarkets, fast-food restaurants and sports canteens. Adults (n 159) visiting a point-of-purchase setting were included. Price is an important factor in food choice, especially for low-income consumers. Low-income consumers were significantly more conscious of value and price than higher-income consumers. The most attractive strategies, according to the consumers, were discounting healthy food more often and applying a lower VAT (Value Added Tax) rate on healthy food. Low-income consumers differ in their preferences for pricing strategies. Since price is more important for low-income consumers we recommend mainly focusing on their preferences and needs.

  5. Pricing behaviour of nonprofit insurers in a weakly competitive social health insurance market.

    PubMed

    Douven, Rudy C H M; Schut, Frederik T

    2011-03-01

    In this paper we examine the pricing behaviour of nonprofit health insurers in the Dutch social health insurance market. Since for-profit insurers were not allowed in this market, potential spillover effects from the presence of for-profit insurers on the behaviour of nonprofit insurers were absent. Using a panel data set for all health insurers operating in the Dutch social health insurance market over the period 1996-2004, we estimate a premium model to determine which factors explain the price setting behaviour of nonprofit health insurers. We find that financial stability rather than profit maximisation offers the best explanation for health plan pricing behaviour. In the presence of weak price competition, health insurers did not set premiums to maximize profits. Nevertheless, our findings suggest that regulations on financial reserves are needed to restrict premiums. Copyright © 2011 Elsevier B.V. All rights reserved.

  6. Green power: A renewable energy resources marketing plan

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

    Barr, R.C.

    Green power is electricity generated from renewable energy sources such as power generated from the sun, the wind, the heat of the earth, and biomass. Green pricing is the marketing strategy to sell green power to customers who voluntarily pay a premium for it. Green pricing is evolving from the deregulation of the electric industry, the need for clean air, reflected in part as concern over global warming, and technology advances. The goal of the renewable energy marketing plan is to generate enough revenues for a utility to fund power purchase agreements (PPAs) with renewable energy developers or construct itsmore » own renewable facilities. Long-term, fixed price PPAs enable developers to obtain financing to construct new facilities, sometimes taking technological risks which a utility might not take otherwise. The marketing plan is built around different rate premiums for different categories of ratepayers, volunteer customer participation, customer participation recognition, and budget allocations between project costs and power marketing costs. Green prices are higher than those for conventional sources, particularly prices from natural gas fired plants. Natural gas is abundant relative to oil in price per British thermal unit (Btu). Green pricing can help bridge the gap between the current oversupply of gas and the time, not far off, when all petroleum prices will exceed those for renewable energy. The rapid implementation of green pricing is important. New marketing programs will bolster the growing demand for renewable energy evidenced in many national surveys thus decreasing the consumption of power now generated by burning hydrocarbons. This paper sets forth a framework to implement a green power marketing plan for renewable energy developers and utilities working together.« less

  7. Price elasticity of on- and off-premises demand for alcoholic drinks: A Tobit analysis.

    PubMed

    Jiang, Heng; Livingston, Michael; Room, Robin; Callinan, Sarah

    2016-06-01

    Understanding how price policies will affect alcohol consumption requires estimates of the impact of price on consumption among different types of drinkers and across different consumption settings. This study aims to estimate how changes in price could affect alcohol demand across different beverages, different settings (on-premise, e.g., bars, restaurants and off-premise, e.g., liquor stores, supermarkets), and different levels of drinking and income. Tobit analysis is employed to estimate own- and cross-price elasticities of alcohol demand among 11 subcategories of beverage based on beverage type and on- or off-premise supply, using cross-sectional data from the Australian arm of the International Alcohol Control Survey 2013. Further elasticity estimates were derived for sub-groups of drinkers based on their drinking and income levels. The results suggest that demand for nearly every subcategory of alcohol significantly responds to its own price change, except for on-premise spirits and ready-to-drink spirits. The estimated demand for off-premise beverages is more strongly affected by own price changes than the same beverages in on-premise settings. Demand for off-premise regular beer and off-premise cask wine is more price responsive than demand for other beverages. Harmful drinkers and lower income groups appear more price responsive than moderate drinkers and higher income groups. Our findings suggest that alcohol price policies, such as increasing alcohol taxes or introducing a minimum unit price, can reduce alcohol demand. Price appears to be particularly effective for reducing consumption and as well as alcohol-related harm among harmful drinkers and lower income drinkers. Copyright © 2016 Elsevier Ireland Ltd. All rights reserved.

  8. 78 FR 30398 - Re-pricing of the 2012 and 2013 United States America the Beautiful Quarters Silver Proof Set...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2013-05-22

    ...], and 2013 United States Mint Congratulations Set AGENCY: United States Mint, Department of the Treasury..., and the 2013 United States Mint Congratulations Set. 2012 and 2013 United States Mint America the... Silver Proof Set will be offered for sale at a price of $60.95. 2013 United States Mint Congratulations...

  9. Study on Market Stability and Price Limit of Chinese Stock Index Futures Market: An Agent-Based Modeling Perspective.

    PubMed

    Xiong, Xiong; Nan, Ding; Yang, Yang; Yongjie, Zhang

    2015-01-01

    This paper explores a method of managing the risk of the stock index futures market and the cross-market through analyzing the effectiveness of price limits on the Chinese Stock Index 300 futures market. We adopt a cross-market artificial financial market (include the stock market and the stock index futures market) as a platform on which to simulate the operation of the CSI 300 futures market by changing the settings of price limits. After comparing the market stability under different price limits by appropriate liquidity and volatility indicators, we find that enhancing price limits or removing price limits both play a negative impact on market stability. In contrast, a positive impact exists on market stability if the existing price limit is maintained (increase of limit by10%, down by 10%) or it is broadened to a proper extent. Our study provides reasonable advice for a price limit setting and risk management for CSI 300 futures.

  10. Study on Market Stability and Price Limit of Chinese Stock Index Futures Market: An Agent-Based Modeling Perspective

    PubMed Central

    2015-01-01

    This paper explores a method of managing the risk of the stock index futures market and the cross-market through analyzing the effectiveness of price limits on the Chinese Stock Index 300 futures market. We adopt a cross-market artificial financial market (include the stock market and the stock index futures market) as a platform on which to simulate the operation of the CSI 300 futures market by changing the settings of price limits. After comparing the market stability under different price limits by appropriate liquidity and volatility indicators, we find that enhancing price limits or removing price limits both play a negative impact on market stability. In contrast, a positive impact exists on market stability if the existing price limit is maintained (increase of limit by10%, down by 10%) or it is broadened to a proper extent. Our study provides reasonable advice for a price limit setting and risk management for CSI 300 futures. PMID:26571135

  11. Increasing energy efficiency level of building production based on applying modern mechanization facilities

    NASA Astrophysics Data System (ADS)

    Prokhorov, Sergey

    2017-10-01

    Building industry in a present day going through the hard times. Machine and mechanism exploitation cost, on a field of construction and installation works, takes a substantial part in total building construction expenses. There is a necessity to elaborate high efficient method, which allows not only to increase production, but also to reduce direct costs during machine fleet exploitation, and to increase its energy efficiency. In order to achieve the goal we plan to use modern methods of work production, hi-tech and energy saving machine tools and technologies, and use of optimal mechanization sets. As the optimization criteria there are exploitation prime cost and set efficiency. During actual task-solving process we made a conclusion, which shows that mechanization works, energy audit with production juxtaposition, prime prices and costs for energy resources allow to make complex machine fleet supply, improve ecological level and increase construction and installation work quality.

  12. Process simulation and techno economic analysis of renewable diesel production via catalytic decarboxylation of rubber seed oil - A case study in Malaysia.

    PubMed

    Cheah, Kin Wai; Yusup, Suzana; Gurdeep Singh, Haswin Kaur; Uemura, Yoshimitsu; Lam, Hon Loong

    2017-12-01

    This work describes the economic feasibility of hydroprocessed diesel fuel production via catalytic decarboxylation of rubber seed oil in Malaysia. A comprehensive techno-economic assessment is developed using Aspen HYSYS V8.0 software for process modelling and economic cost estimates. The profitability profile and minimum fuels selling price of this synthetic fuels production using rubber seed oil as biomass feedstock are assessed under a set of assumptions for what can be plausibly be achieved in 10-years framework. In this study, renewable diesel processing facility is modelled to be capable of processing 65,000 L of inedible oil per day and producing a total of 20 million litre of renewable diesel product per annual with assumed annual operational days of 347. With the forecasted renewable diesel retail price of 3.64 RM per kg, the pioneering renewable diesel project investment offers an assuring return of investment of 12.1% and net return as high as 1.35 million RM. Sensitivity analysis conducted showed that renewable diesel production cost is most sensitive to rubber seed oil price and hydrogen gas price, reflecting on the relative importance of feedstock prices in the overall profitability profile. Copyright © 2017 Elsevier Ltd. All rights reserved.

  13. Desirable role in a price-setting international mixed duopoly

    NASA Astrophysics Data System (ADS)

    Ferreira, Fernanda A.; Ferreira, Flávio

    2011-12-01

    In this paper, we study the order of moves in a mixed international duopoly for differentiated goods, where firms choose whether to set prices sequentially or simultaneously. We discuss the desirable role of the public firm by comparing welfare among three games. We find that, in the three possible roles, the domestic public firm put a lower price, and then produces more than the foreign private firm.

  14. 13 CFR 126.607 - When must a contracting officer set aside a requirement for qualified HUBZone SBCs?

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... fair market prices. This requirement does not preclude a contracting officer from setting aside a... will be made at fair market prices. However, after conducting market research, the contracting officer... to support the specific set-aside, including the type and extent of market research conducted. In...

  15. The economics of nuclear power

    NASA Astrophysics Data System (ADS)

    Horst, Ronald L.

    We extend economic analysis of the nuclear power industry by developing and employing three tools. They are (1) compilation and unification of operating and accounting data sets for plants and sites, (2) an abstract industry model with major economic agents and features, and (3) a model of nuclear power plant operators. We build a matched data set to combine dissimilar but mutually dependant bodies of information. We match detailed information on the activities and conditions of individual plants to slightly more aggregated financial data. Others have exploited the data separately, but we extend the sets and pool available data sets. The data reveal dramatic changes in the industry over the past thirty years. The 1980s proved unprofitable for the industry. This is evident both in the cost data and in the operator activity data. Productivity then improved dramatically while cost growth stabilized to the point of industry profitability. Relative electricity prices may be rising after nearly two decades of decline. Such demand side trends, together with supply side improvements, suggest a healthy industry. Our microeconomic model of nuclear power plant operators employs a forward-looking component to capture the information set available to decision makers and to model the decision-making process. Our model includes features often overlooked elsewhere, including electricity price equations and liability. Failure to account for changes in electricity price trends perhaps misled earlier scholars, and they attributed to other causes the effects on profits of changing price structures. The model includes potential losses resulting from catastrophic nuclear accidents. Applications include historical simulations and forecasts. Nuclear power involves risk, and accident costs are borne both by plant owners and the public. Authorities regulate the industry and balance conflicting desires for economic gain and safety. We construct an extensible model with regulators, plant operators, insurance companies, and consumers. The model possesses key attributes of the industry seldom found in combination elsewhere. We then add additional details to make the model truer to reality. The work extends and corrects existing literature on the definition, effects, and magnitudes of implicit subsidies resulting from liability limits.

  16. Price Discrimination: A Classroom Experiment

    ERIC Educational Resources Information Center

    Aguiló, Paula; Sard, Maria; Tugores, Maria

    2016-01-01

    In this article, the authors describe a classroom experiment aimed at familiarizing students with different types of price discrimination (first-, second-, and third-degree price discrimination). During the experiment, the students were asked to decide what tariffs to set as monopolists for each of the price discrimination scenarios under…

  17. Effects of Working Memory Capacity and Domain Knowledge on Recall for Grocery Prices.

    PubMed

    Bermingham, Douglas; Gardner, Michael K; Woltz, Dan J

    2016-01-01

    Hambrick and Engle (2002) proposed 3 models of how domain knowledge and working memory capacity may work together to influence episodic memory: a "rich-get-richer" model, a "building blocks" model, and a "compensatory" model. Their results supported the rich-get-richer model, although later work by Hambrick and Oswald (2005) found support for a building blocks model. We investigated the effects of domain knowledge and working memory on recall of studied grocery prices. Working memory was measured with 3 simple span tasks. A contrast of realistic versus fictitious foods in the episodic memory task served as our manipulation of domain knowledge, because participants could not have domain knowledge of fictitious food prices. There was a strong effect for domain knowledge (realistic food-price pairs were easier to remember) and a moderate effect for working memory capacity (higher working memory capacity produced better recall). Furthermore, the interaction between domain knowledge and working memory produced a small but significant interaction in 1 measure of price recall. This supported the compensatory model and stands in contrast to previous research.

  18. Proximity to natural amenities: A seemingly unrelated hedonic regression model with spatial durbin and spatial error processes

    Treesearch

    German M. Izon; Michael S. Hand; Daniel W. Mccollum; Jennifer A. Thacher; Robert P. Berrens

    2016-01-01

    The existing literature suggests that the presence of natural amenities, such as open spaces, can be highly valued and affect economic decisions about where people live and work. This article contributes to previous research by testing this hypothesis using a unique micro-level data set and by examining spatial variations in income levels and housing prices in the...

  19. Public resource pricing: an analysis of range policy.

    Treesearch

    Thomas M. Quigley; R. Garth Taylor; R. McGreggor Cawley

    1988-01-01

    Pricing represents an important step in the allocation of scarce resources. Markets, which set the price policy, are not restricted by a simple buyer-seller relation. The Federal grazing-fee policy is at the forefront of controversy surrounding the pricing of all uses of public lands. The pricing process of grazing fees has been cyclical. With few exceptions, the cycle...

  20. The price of a drink: the potential of alcohol minimum unit pricing as a public health measure in the UK.

    PubMed

    Rice, Peter; Drummond, Colin

    2012-09-01

    The UK has seen a dramatic increase in alcohol consumption and alcohol-related harm over the past 30 years. Alcohol taxation has long been considered a key method of controlling alcohol-related harm but a combination of factors has recently led to consideration of methods which affect the price of the cheapest alcohol as a means of improved targeting of alcohol control measures to curb the consumption of the heaviest drinkers. Although much of the evidence in favour of setting a minimum price of a unit of alcohol is based on complex econometric models rather than empirical data, all jurisdictions within the UK now intend to make selling alcohol below a set price illegal, which will provide a naturalistic experiment allowing assessment of the impact of minimum pricing.

  1. 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.

  2. Why Are Product Prices in Online Markets Not Converging?

    PubMed Central

    Mizuno, Takayuki; Watanabe, Tsutomu

    2013-01-01

    Why are product prices in online markets dispersed in spite of very small search costs? To address this question, we construct a unique dataset from a Japanese price comparison site, which records price quotes offered by e-retailers as well as customers’ clicks on products, which occur when they proceed to purchase the product. The novelty of our approach is that we seek to extract useful information on the source of price dispersion from the shape of price distributions rather than focusing merely on the standard deviation or the coefficient of variation of prices, as previous studies have done. We find that the distribution of prices retailers quote for a particular product at a particular point in time (divided by the lowest price) follows an exponential distribution, showing the presence of substantial price dispersion. For example, 20 percent of all retailers quote prices that are more than 50 percent higher than the lowest price. Next, comparing the probability that customers click on a retailer with a particular rank and the probability that retailers post prices at a particular rank, we show that both decline exponentially with price rank and that the exponents associated with the probabilities are quite close. This suggests that the reason why some retailers set prices at a level substantially higher than the lowest price is that they know that some customers will choose them even at that high price. Based on these findings, we hypothesize that price dispersion in online markets stems from heterogeneity in customers’ preferences over retailers; that is, customers choose a set of candidate retailers based on their preferences, which are heterogeneous across customers, and then pick a particular retailer among the candidates based on the price ranking. PMID:24015219

  3. Why are product prices in online markets not converging?

    PubMed

    Mizuno, Takayuki; Watanabe, Tsutomu

    2013-01-01

    Why are product prices in online markets dispersed in spite of very small search costs? To address this question, we construct a unique dataset from a Japanese price comparison site, which records price quotes offered by e-retailers as well as customers' clicks on products, which occur when they proceed to purchase the product. The novelty of our approach is that we seek to extract useful information on the source of price dispersion from the shape of price distributions rather than focusing merely on the standard deviation or the coefficient of variation of prices, as previous studies have done. We find that the distribution of prices retailers quote for a particular product at a particular point in time (divided by the lowest price) follows an exponential distribution, showing the presence of substantial price dispersion. For example, 20 percent of all retailers quote prices that are more than 50 percent higher than the lowest price. Next, comparing the probability that customers click on a retailer with a particular rank and the probability that retailers post prices at a particular rank, we show that both decline exponentially with price rank and that the exponents associated with the probabilities are quite close. This suggests that the reason why some retailers set prices at a level substantially higher than the lowest price is that they know that some customers will choose them even at that high price. Based on these findings, we hypothesize that price dispersion in online markets stems from heterogeneity in customers' preferences over retailers; that is, customers choose a set of candidate retailers based on their preferences, which are heterogeneous across customers, and then pick a particular retailer among the candidates based on the price ranking.

  4. Analysis of a decision model in the context of equilibrium pricing and order book pricing

    NASA Astrophysics Data System (ADS)

    Wagner, D. C.; Schmitt, T. A.; Schäfer, R.; Guhr, T.; Wolf, D. E.

    2014-12-01

    An agent-based model for financial markets has to incorporate two aspects: decision making and price formation. We introduce a simple decision model and consider its implications in two different pricing schemes. First, we study its parameter dependence within a supply-demand balance setting. We find realistic behavior in a wide parameter range. Second, we embed our decision model in an order book setting. Here, we observe interesting features which are not present in the equilibrium pricing scheme. In particular, we find a nontrivial behavior of the order book volumes which reminds of a trend switching phenomenon. Thus, the decision making model alone does not realistically represent the trading and the stylized facts. The order book mechanism is crucial.

  5. Capuchin monkeys do not show human-like pricing effects.

    PubMed

    Catapano, Rhia; Buttrick, Nicholas; Widness, Jane; Goldstein, Robin; Santos, Laurie R

    2014-01-01

    Recent work in judgment and decision-making has shown that a good's price can have irrational effects on people's preferences. People tend to prefer goods that cost more money and assume that such expensive goods will be more effective, even in cases where the price of the good is itself arbitrary. Although much work has documented the existence of these pricing effects, unfortunately little work has addressed where these price effects come from in the first place. Here we use a comparative approach to distinguish between different accounts of this bias and to explore the origins of these effects. Specifically, we test whether brown capuchin monkeys (Cebus apella) are also susceptible to pricing effects within the context of an experimentally trained token economy. Using a capuchin population previously trained in a token market, we explored whether monkeys used price as an indicator of value across four experiments. Although monkeys demonstrated an understanding of which goods had which prices (consistently shifting preferences to cheaper goods when prices were increased), we observed no evidence that such price information affected their valuation of different kinds of goods. These results suggest that human pricing effects may involve more sophisticated human-unique cognitive capacities, such as an understanding of market forces and signaling.

  6. Capuchin monkeys do not show human-like pricing effects

    PubMed Central

    Catapano, Rhia; Buttrick, Nicholas; Widness, Jane; Goldstein, Robin; Santos, Laurie R.

    2014-01-01

    Recent work in judgment and decision-making has shown that a good's price can have irrational effects on people's preferences. People tend to prefer goods that cost more money and assume that such expensive goods will be more effective, even in cases where the price of the good is itself arbitrary. Although much work has documented the existence of these pricing effects, unfortunately little work has addressed where these price effects come from in the first place. Here we use a comparative approach to distinguish between different accounts of this bias and to explore the origins of these effects. Specifically, we test whether brown capuchin monkeys (Cebus apella) are also susceptible to pricing effects within the context of an experimentally trained token economy. Using a capuchin population previously trained in a token market, we explored whether monkeys used price as an indicator of value across four experiments. Although monkeys demonstrated an understanding of which goods had which prices (consistently shifting preferences to cheaper goods when prices were increased), we observed no evidence that such price information affected their valuation of different kinds of goods. These results suggest that human pricing effects may involve more sophisticated human-unique cognitive capacities, such as an understanding of market forces and signaling. PMID:25520677

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

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

    Pless, Jacquelyn; Langheim, Ria; Machak, Christina

    The market for residential solar photovoltaic (PV) systems in the United States has experienced tremendous growth over the past decade, with installed capacity more than doubling between 2014 and 2016 alone (SEIA, 2016). As the residential market continues to grow, it prompts new questions about the nature of competition between solar installers and how this competition, or lack thereof, affects the prices consumers are paying. It is often assumed that more competition leads to lower prices, but this is not universally true. For example, some studies have shown that factors such as brand loyalty could lead to a negative relationshipmore » between concentration and price in imperfectly competitive markets (Borenstein, 1985; Holmes, 1989). As such, the relationship between prices and market concentration is an open empirical question since theory could predict either a positive or negative relationship. Determining a relationship between prices and market concentration is challenging for several reasons. Most significantly, prices and market structure are simultaneously determined by each other -- the amount of competition a seller faces influences the price they can command, and prices determine a seller's market share. Previous studies have examined recent PV pricing trends over time and between markets (Davidson et al., 2015a; Davidson and Margolis 2015b; Nemet et al., 2016; Gillingham et al., 2014; Barbose and Darghouth 2015). While these studies of solar PV pricing are able to determine correlations between prices and market factors, they have not satisfactorily proven causation. Thus, to the best of our knowledge, there is little work to date that focuses on identifying the causal relationship between market structure and the prices paid by consumers. We use a unique dataset on third-party owned contract terms for the residential solar PV market in the San Diego Gas and Electricity service territory to better understand this relationship. Surprisingly, we find that 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.« less

  8. Incentive pricing and cost recovery at the basin scale.

    PubMed

    Ward, Frank A; Pulido-Velazquez, Manuel

    2009-01-01

    Incentive pricing programs have potential to promote economically efficient water use patterns and provide a revenue source to compensate for environmental damages. However, incentive pricing may impose disproportionate costs and aggravate poverty where high prices are levied for basic human needs. This paper presents an analysis of a two-tiered water pricing system that sets a low price for subsistence needs, while charging a price equal to marginal cost, including environmental cost, for discretionary uses. This pricing arrangement can promote efficient and sustainable water use patterns, goals set by the European Water Framework Directive, while meeting subsistence needs of poor households. Using data from the Rio Grande Basin of North America, a dynamic nonlinear program, maximizes the basin's total net economic and environmental benefits subject to several hydrological and institutional constraints. Supply costs, environmental costs, and resource costs are integrated in a model of a river basin's hydrology, economics, and institutions. Three programs are compared: (1) Law of the River, in which water allocations and prices are determined by rules governing water transfers; (2) marginal cost pricing, in which households pay the full marginal cost of supplying treated water; (3) two-tiered pricing, in which households' subsistence water needs are priced cheaply, while discretionary uses are priced at efficient levels. Compared to the Law of the River and marginal cost pricing, two-tiered pricing performs well for efficiency and adequately for sustainability and equity. Findings provide a general framework for formulating water pricing programs that promote economically and environmentally efficient water use programs while also addressing other policy goals.

  9. The organization of sex work in low and high-priced venues with a focus on the experiences of ethnic minority women working in these venues

    PubMed Central

    Qian, Liu; Zhuang, Kongshao; Henderson, Gail E.; Shenglong, Quzhen; Fang, Jingwen; Yao, Huiqin; Qin, Jingxin; Yang, Yanzhen; Abler, Laurie

    2013-01-01

    Prior research on female sex workers (FSW) in China, and their risk for HIV and STI, neglects the nuanced experiences of ethnic minority FSW. We conducted participant observations and in-depth interviews with 33 FSW and six venue bosses to describe the experiences of FSW and management structures in high and low-priced sex work venues in Liuzhou, China. In low-priced venues, FSW had more autonomy and stronger relationships with their ethnic minority peers. Mid and high-priced venues had more formal management structures. Ethnic minority FSW working in higher priced venues experienced less support and kinship with their peers. HIV/STI prevention outreach activities occurred in all of the venues, but they were not tailored for different venue types or for ethnic minority FSW. Our findings provide guidance for tailoring public health programs that meet the needs of ethnic minority women working in different types of sex work venues. PMID:23912337

  10. The organization of sex work in low- and high-priced venues with a focus on the experiences of ethnic minority women working in these venues.

    PubMed

    Liu, Qian; Zhuang, Kongshao; Henderson, Gail E; Shenglong, Quzhen; Fang, Jingwen; Yao, Huiqin; Qin, Jingxin; Yang, Yanzhen; Abler, Laurie

    2014-02-01

    Prior research on female sex workers (FSW) in China, and their risk for HIV and STI, neglects the nuanced experiences of ethnic minority FSW. We conducted participant observations and in-depth interviews with 33 FSW and six venue bosses to describe the experiences of FSW and management structures in low and high-priced sex work venues in Liuzhou, China. In low-priced venues, FSW had more autonomy and stronger relationships with their ethnic minority peers. Mid- and high-priced venues had more formal management structures. Ethnic minority FSW working in higher priced venues experienced less support and kinship with their peers. HIV/STI prevention outreach activities occurred in all of the venues, but they were not tailored for different venue types or for ethnic minority FSW. Our findings provide guidance for tailoring public health programs that meet the needs of ethnic minority women working in different types of sex work venues.

  11. 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

    ... modifications under this contract, for price adjustments expected to exceed the threshold set forth at FAR 15.403-4 on the date of the agreement on price or the date of the award, whichever is later, the... the extent necessary to determine whether an exception should be granted, and whether the price is...

  12. Information-based models for finance and insurance

    NASA Astrophysics Data System (ADS)

    Hoyle, Edward

    2010-10-01

    In financial markets, the information that traders have about an asset is reflected in its price. The arrival of new information then leads to price changes. The `information-based framework' of Brody, Hughston and Macrina (BHM) isolates the emergence of information, and examines its role as a driver of price dynamics. This approach has led to the development of new models that capture a broad range of price behaviour. This thesis extends the work of BHM by introducing a wider class of processes for the generation of the market filtration. In the BHM framework, each asset is associated with a collection of random cash flows. The asset price is the sum of the discounted expectations of the cash flows. Expectations are taken with respect (i) an appropriate measure, and (ii) the filtration generated by a set of so-called information processes that carry noisy or imperfect market information about the cash flows. To model the flow of information, we introduce a class of processes termed Lévy random bridges (LRBs), generalising the Brownian and gamma information processes of BHM. Conditioned on its terminal value, an LRB is identical in law to a Lévy bridge. We consider in detail the case where the asset generates a single cash flow X_T at a fixed date T. The flow of information about X_T is modelled by an LRB with random terminal value X_T. An explicit expression for the price process is found by working out the discounted conditional expectation of X_T with respect to the natural filtration of the LRB. New models are constructed using information processes related to the Poisson process, the Cauchy process, the stable-1/2 subordinator, the variance-gamma process, and the normal inverse-Gaussian process. These are applied to the valuation of credit-risky bonds, vanilla and exotic options, and non-life insurance liabilities.

  13. [Economic perspectives of the research on advanced therapies].

    PubMed

    Pamo Larrauri, Jose María

    2014-11-03

    Since a new advanced therapy medicinal product is discovered until finally allowed its sale in the domestic market, it has to overcome a series of stages. Biomedical research is the first phase, currently its situation is encouraging to the increase in the number of clinical trials in Spain and in the rest of the world, despite the economic situation and the various difficulties that have faced the pharmaceutical laboratories. The next phase consists in obtaining the authorization of marketing of the European Medicines Agency. After authorization, will attempt to set a fair and moderate price for inclusion in the list of health provision of Social Security. A price for a drug that provides added value to health and society, a price that is generated profits for the pharmaceutical companies that hope to make up for the years of work and investment. Commitment to advanced therapy must be clear and forceful, to fund ongoing research projects and encouraging their creation with economic aid. Copyright AULA MEDICA EDICIONES 2014. Published by AULA MEDICA. All rights reserved.

  14. Reducing the Burden of Price.

    ERIC Educational Resources Information Center

    Hansen, Janet S.

    1984-01-01

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

  15. How do minimum cigarette price laws affect cigarette prices at the retail level?

    PubMed Central

    Feighery, E; Ribisl, K; Schleicher, N; Zellers, L; Wellington, N

    2005-01-01

    Objectives: Half of US states have minimum cigarette price laws that were originally passed to protect small independent retailers from unfair price competition with larger retailers. These laws prohibit cigarettes from being sold below a minimum price that is set by a formula. Many of these laws allow cigarette company promotional incentives offered to retailers, such as buydowns and master-type programmes, to be calculated into the formula. Allowing this provision has the potential to lower the allowable minimum price. This study assesses whether stores in states with minimum price laws have higher cigarette prices and lower rates of retailer participation in cigarette company promotional incentive programmes. Design: Retail cigarette prices and retailer participation in cigarette company incentive programmes in 2001 were compared in eight states with minimum price laws and seven states without them. New York State had the most stringent minimum price law at the time of the study because it excluded promotional incentive programmes in its price setting formula; cigarette prices in New York were compared to all other states included in the study. Results: Cigarette prices were not significantly different in our sample of US states with and without cigarette minimum price laws. Cigarette prices were significantly higher in New York stores than in the 14 other states combined. Conclusions: Most existing minimum cigarette price laws appear to have little impact on the retail price of cigarettes. This may be because they allow the use of promotional programmes, which are used by manufacturers to reduce cigarette prices. New York's strategy to disallow these types of incentive programmes may result in higher minimum cigarette prices, and should also be explored as a potential policy strategy to control cigarette company marketing practices in stores. Strict cigarette minimum price laws may have the potential to reduce cigarette consumption by decreasing demand through increased cigarette prices and reduced promotional activities at retail outlets. PMID:15791016

  16. How do minimum cigarette price laws affect cigarette prices at the retail level?

    PubMed

    Feighery, E C; Ribisl, K M; Schleicher, N C; Zellers, L; Wellington, N

    2005-04-01

    Half of US states have minimum cigarette price laws that were originally passed to protect small independent retailers from unfair price competition with larger retailers. These laws prohibit cigarettes from being sold below a minimum price that is set by a formula. Many of these laws allow cigarette company promotional incentives offered to retailers, such as buydowns and master-type programmes, to be calculated into the formula. Allowing this provision has the potential to lower the allowable minimum price. This study assesses whether stores in states with minimum price laws have higher cigarette prices and lower rates of retailer participation in cigarette company promotional incentive programmes. Retail cigarette prices and retailer participation in cigarette company incentive programmes in 2001 were compared in eight states with minimum price laws and seven states without them. New York State had the most stringent minimum price law at the time of the study because it excluded promotional incentive programmes in its price setting formula; cigarette prices in New York were compared to all other states included in the study. Cigarette prices were not significantly different in our sample of US states with and without cigarette minimum price laws. Cigarette prices were significantly higher in New York stores than in the 14 other states combined. Most existing minimum cigarette price laws appear to have little impact on the retail price of cigarettes. This may be because they allow the use of promotional programmes, which are used by manufacturers to reduce cigarette prices. New York's strategy to disallow these types of incentive programmes may result in higher minimum cigarette prices, and should also be explored as a potential policy strategy to control cigarette company marketing practices in stores. Strict cigarette minimum price laws may have the potential to reduce cigarette consumption by decreasing demand through increased cigarette prices and reduced promotional activities at retail outlets.

  17. An analysis of strategic price setting in retail gasoline markets

    NASA Astrophysics Data System (ADS)

    Jaureguiberry, Florencia

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

  18. Improved Approximation Algorithms for Item Pricing with Bounded Degree and Valuation

    NASA Astrophysics Data System (ADS)

    Hamane, Ryoso; Itoh, Toshiya

    When a store sells items to customers, the store wishes to decide the prices of the items to maximize its profit. 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. It would be hard for the store to decide the prices of items. Assume that a store has a set V of n items and there is a set C of m customers who wish to buy those items. The goal of the store is to decide the price of each item to maximize its profit. We refer to this maximization problem as an item pricing problem. We classify the item pricing problems according to how many items the store can sell or how the customers valuate the items. If the store can sell every item i with unlimited (resp. limited) amount, we refer to this as unlimited supply (resp. limited supply). We say that the item pricing problem is single-minded if each customer j∈C wishes to buy a set ej⊆V of items and assigns valuation w(ej)≥0. For the single-minded item pricing problems (in unlimited supply), Balcan and Blum regarded them as weighted k-hypergraphs and gave several approximation algorithms. In this paper, we focus on the (pseudo) degree of k-hypergraphs and the valuation ratio, i. e., the ratio between the smallest and the largest valuations. Then for the single-minded item pricing problems (in unlimited supply), we show improved approximation algorithms (for k-hypergraphs, general graphs, bipartite graphs, etc.) with respect to the maximum (pseudo) degree and the valuation ratio.

  19. Pricing Medicare's diagnosis-related groups: Charges versus estimated costs

    PubMed Central

    Price, Kurt F.

    1989-01-01

    Hospital payments under Medicare's prospective payment system (PPS) are based on prices established for 474 diagnosis-related groups (DRG's). Previous analyses using 1981 data demonstrated that DRG prices based on charges alone were not that different from prices calculated from estimated costs. Data for 1986 were used in this study to show that the differences between the two sets of DRG prices are much larger than previously reported. If DRG prices were once again based on estimated costs instead of the current charge-based prices, payments would be significantly redistributed. PMID:10313356

  20. Setting Physicians' Prices in FFS Medicare: An Economic Perspective

    PubMed Central

    Dowd, Bryan; Feldman, Roger; Nyman, John; Town, Bob

    2006-01-01

    Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model. Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets. An important objective in other policy settings is economically efficient distribution of services. We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it. PMID:17427848

  1. 75 FR 5373 - United States Mint

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-02-02

    ... DEPARTMENT OF THE TREASURY United States Mint ACTION: Notification of Pricing for 2010 United States Mint Presidential $1 Coin Proof Set. \\TM\\ SUMMARY: The United States Mint is announcing the price of the 2010 United States Mint Presidential $1 Coin Proof Set. The 2010 United States Mint...

  2. Preliminary Study on Bidding Price Ratio Pattern of Public Works in Taiwan - a Case Study of Bridges, Elevated Highways, Tunnels and Subways

    NASA Astrophysics Data System (ADS)

    Tseng, Paoshan; Wang, Hanhsiang; Chen, Pingfu; Yeh, Lihsu

    2018-01-01

    Commonly seen tender bid price information of the public works in Taiwan are the budget amount, floor price, awarding price and so on. The ratio of the awarding price to the floor price or budget price is the so-called bidding price ratio. This ratio is influenced by multifaceted factor interactions and is significant to decision making management in engineering projects. Low bidding price ratio may imply that the budget allocation by the tendering agency is inconsiderate or due to the improper market competition of low price bid rigging. High bidding price ratio in turn may indicate that the allocated budget is relatively low, bidder risks in increased contract execution uncertainty or even exclusive bidding scenario. Therefore, the correlation between the bidding price ratio and the aforementioned tender award information is the key issue of this study. This study gathered the tender information of the civil engineering projects in Taiwan within the past seven years. By performing statistical analysis and clustering the gathered data by bidding price ratio, this study investigated the influencing factors and regulations of bidding price ratio using data mining approach.

  3. 26 CFR 148.1-5 - Constructive sale price.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 26 Internal Revenue 17 2010-04-01 2010-04-01 false Constructive sale price. 148.1-5 Section 148.1... § 148.1-5 Constructive sale price. (a) Purpose of this section. The purpose of this section is to set forth temporary rules to be used in determining a constructive sale price under section 4216(b) of the...

  4. 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.

  5. 26 CFR 48.4216(b)-2 - Constructive sale price; basic rules.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... 26 Internal Revenue 16 2010-04-01 2010-04-01 true Constructive sale price; basic rules. 48.4216(b... to Manufacturers Taxes § 48.4216(b)-2 Constructive sale price; basic rules. (a) In general. Section 4216(b)(1) sets forth the conditions that require the Secretary to construct a sale price on which to...

  6. Book Discounts and Cost-Plus Pricing

    ERIC Educational Resources Information Center

    Andresen, David C.

    1974-01-01

    The adoption of cost-plus pricing by a major book jobber may have profound effects on the discounts that libraries receive. The article explains the pricing system and presents a set of graphs for libraries to use to determine its effects. (Author)

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

    PubMed Central

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

    2013-01-01

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

  8. Pricing and sales tax collection policies for e-cigarette starter kits and disposable products sold online.

    PubMed

    Cuomo, Raphael E; Miner, Angela; Mackey, Tim K

    2015-10-23

    Previous studies have examined marketing characteristics of e-cigarettes sold online and others have examined e-cigarettes pricing in retail (non-Internet) settings. This study expands on these findings by examining pricing and marketing characteristics of interest among e-cigarette online vendors. Structured web searches were conducted from August-September 2014 to identify popular e-cigarette Internet vendors. We then collected pricing data (e-cigarette starter kits and disposables), sales tax collection policies and other vendor marketing characteristics. Average price for each product category was then compared with marketing characteristics using linear regression for continuous variables and independent t-tests for binary variables. Our searches yielded 44 e-cigarette Internet vendors of which 77% (n = 34) sold a total of 238 starter kit offerings (Mprice = $55.89). Half (n = 22) sold disposable types of e-cigarettes (Mprice = $7.17 p/e-cigarette) at a price lower than reported elsewhere in retail settings. Average disposable e-cigarette prices were also significantly higher for vendors displaying more health warning notices (P = 0.001). Only 46% disclosed sales tax collection policies and only 39% collected sales tax in their state of business. This study expands on current understanding of e-cigarette pricing and availability online and finds variation in e-cigarette pricing may be influenced by type of product, use of online health warnings and vendor sales tax collection policies. It also finds that e-cigarette online access and availability may be impacted by a combination of pricing and marketing strategies uniquely different from e-cigarette retail settings that requires further study and targeted policy-making. [Cuomo RE, Miner A, Mackey TK. Pricing and sales tax collection policies for e-cigarette starter kits and disposable products sold online. Drug Alcohol Rev 2015]. © 2015 Australasian Professional Society on Alcohol and other Drugs.

  9. 24 CFR 92.254 - Qualification as affordable housing: Homeownership.

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... in the jurisdiction annually, as follows. The participating jurisdiction must set forth the price for... purchase price. (3) The housing must be acquired by a homebuyer whose family qualifies as a low-income... and set forth the requirements in its consolidated plan. HUD must determine that they are appropriate...

  10. Pricing medicines: theory and practice, challenges and opportunities.

    PubMed

    Gregson, Nigel; Sparrowhawk, Keiron; Mauskopf, Josephine; Paul, John

    2005-02-01

    The pricing of medicines has become one of the most hotly debated topics of recent times, with the pharmaceutical industry seemingly being attacked from all quarters. From a company perspective, determining the price for each new product is more crucial than ever, given the present dearth of new drug introductions. But how are pricing strategies developed in practice? What is value-based pricing and how are financial models of return on investment constructed? What are the challenges faced in setting the price for a particular product, and how will scientific and environmental trends provide future pricing challenges or opportunities?

  11. An Alternative to Net Price: Assessing the Influence of Prices and Subsidies on Within-Year Persistence.

    ERIC Educational Resources Information Center

    St. John, Edward P.; Starkey, Johnny B.

    1995-01-01

    This study reviews higher education assumptions of traditional net-price theory and an emerging approach considering a set of price and subsidies in enrollment and persistence decisions. Results suggest that within-year persistence decisions made by students from all income groups are more sensitive to tuition charges than to student aid.…

  12. The economic-engineering of smart-meter-enabled dynamic water pricing

    NASA Astrophysics Data System (ADS)

    Rougé, Charles; Harou, Julien

    2016-04-01

    The introduction of smart metering is set to revolutionize in many ways how water utilities conduct their business and interact with customers. Among those is the possibility of changing water prices during the day or seasonally. This work presents the engineering and economic implications of dynamic pricing implemented at two distinct timescales, 1) a seasonal scarcity tariff aimed at reducing consumption during drier period or droughts, and 2) time-of-day tariffs aimed at reducing peak-hour water use. Sophisticated dynamic pricing schemes are hard to understand for many users, and this reduces their social acceptability because it gives the impression that they help the water utility charge more for water. Therefore, we focus on simple pricing mechanisms, and estimating their short- and long-term benefits for communication with regulators and consumers. Seasonal scarcity tariffs are designed by adjusting prices such that the increased expenditure is commensurate with economic gains in other uses such as the environment and recreation. These tariffs could promote efficient use of limited supplies during relatively dry periods. In the long term, consistently reducing water consumption when it is scarce delays the need to invest in new sources of supply meant only for dry periods (e.g. desalination) which can bring down supply costs in the long-term. Reducing peak-hour use through time-of-day tariffs in the short run decreases peak-hour energy consumption and delays maintenance by reducing the likelihood of pipe burst. In the long run it delays capacity expansion of the distribution network. We develop and demonstrate a simple economic model of water supply to a generic city to demonstrate these concepts. This simple model is applied to London's water supply to better understand the scale of potential price changes and savings given London's environmental flow demands.

  13. Competition in the retail gasoline industry

    NASA Astrophysics Data System (ADS)

    Brewer, Jedidiah

    2007-05-01

    This dissertation examines competition in the retail gasoline industry. The first chapter highlights the importance of gasoline in modern society, introduces my work, and places it in the context of the existing academic literature. The second chapter details the institutional structure and profitability of the industry. The vast majority of retail gasoline stations are not directly owned and operated by major oil companies. Instead, most stations are set up under other contractual relationships: lessee-dealer, open-dealer, jobber-owned-and-operated, and independent. Gasoline retailers make relatively low profits, as is the case in many other retail industries, and are substantially less profitable than major oil companies. Gas stations also make less money when retail prices are climbing than when they are falling. As prices rise, total station profits are near zero or negative. When retail prices are constant or falling, retailers can make positive profits. The third chapter describes the entry of big-box stores into the retail gasoline industry over the last decade. The growth of such large retailers, in all markets, has led to a great deal of controversy as smaller competitors with long-term ties to the local community have become less common. I estimate the price impact that big-box stores have on traditional gasoline retailers using cross-sectional data in two geographically diverse cities. I also examine changes in pricing following the entry of The Home Depot into a local retail gasoline market. The results show that big-box stores place statistically and economically significant downward pressure on the prices of nearby gas stations, offering a measure of the impact of the entry of a big-box store. Chapter 4 examines the nature of price competition in markets where some competing retailers sell the same brand. The price effect of having more retailers selling the same brand is theoretically unclear. High brand diversity could give individual retailers market power, thereby leading to higher prices. Low brand diversity, though, could act to facilitate collusive behavior, leading to higher prices. I find that prices are higher in markets with high brand diversity. The final chapter of the dissertation summarizes the general findings.

  14. How state and federal policies as well as advances in genome science contribute to the high cost of cancer drugs.

    PubMed

    Ramsey, Scott D

    2015-04-01

    During a time when cancer drug prices are increasing at an unprecedented rate, a debate has emerged as to whether these drugs continue to provide good value. In this article I argue that this debate is irrelevant because under today's highly distorted market, prices will not be set with value considerations in mind. As an alternative, I suggest considering the "value" of three policy changes—Medicare's "average sales price plus 6 percent" payment program, laws that require insurance coverage of all new cancer drugs, and the Affordable Care Act—that are fueling manufacturers' willingness to set higher prices. More important than these issues, however, is the revolution that is occurring in molecular biology and its impact on scientists' ability to detect changes in the cancer genome. The lowered cost of discovery is driving more competitors into the market, which under distorted pricing paradoxically encourages drug makers to charge ever higher prices for their products. Project HOPE—The People-to-People Health Foundation, Inc.

  15. Model risk for European-style stock index options.

    PubMed

    Gençay, Ramazan; Gibson, Rajna

    2007-01-01

    In empirical modeling, there have been two strands for pricing in the options literature, namely the parametric and nonparametric models. Often, the support for the nonparametric methods is based on a benchmark such as the Black-Scholes (BS) model with constant volatility. In this paper, we study the stochastic volatility (SV) and stochastic volatility random jump (SVJ) models as parametric benchmarks against feedforward neural network (FNN) models, a class of neural network models. Our choice for FNN models is due to their well-studied universal approximation properties of an unknown function and its partial derivatives. Since the partial derivatives of an option pricing formula are risk pricing tools, an accurate estimation of the unknown option pricing function is essential for pricing and hedging. Our findings indicate that FNN models offer themselves as robust option pricing tools, over their sophisticated parametric counterparts in predictive settings. There are two routes to explain the superiority of FNN models over the parametric models in forecast settings. These are nonnormality of return distributions and adaptive learning.

  16. Price Analysis on Commercial Items Purchases Within the Department of Defense

    DTIC Science & Technology

    2014-04-30

    services. Introduction This research builds upon the work conducted in collaboration with the authors’ thesis students Andrew Redfern, Erick...Program Creating Synergy for informed change - 219 - market research and price analysis methods . Most contract pricing of acquisitions were...documenting price reasonableness? What price analysis methods are being used? Findings: The researchers found that all of the pricing memos documented

  17. 17 CFR 240.15c3-1f - Optional market and credit risk requirements for OTC derivatives dealers (Appendix F to 17 CFR...

    Code of Federal Regulations, 2013 CFR

    2013-04-01

    ... observations cannot be less than six months. Historical data sets must be updated at least every three months... quantitative aspects of the model which at a minimum must adhere to the criteria set forth in paragraph (e) of..., a description of how its own theoretical pricing model contains the minimum pricing factors set...

  18. 77 FR 18307 - Update to the January 6, 2012, Federal Register

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-03-27

    ... to announce that a Presidential $1 Four-Coin Set, priced at $9.95, will be offered instead of the $1... follows: Retail Product price Presidential $1 Four-Coin Set $9.95 Presidential $1 Coin & First Spouse... FURTHER INFORMATION CONTACT: B. B. Craig, Associate Director for Sales and Marketing, United States Mint...

  19. 13 CFR 126.607 - When must a contracting officer set aside a requirement for qualified HUBZone SBCs?

    Code of Federal Regulations, 2011 CFR

    2011-01-01

    ... and award will be made at fair market prices. However, after conducting market research, the... rationale used to support the specific set-aside, including the type and extent of market research conducted... market research, programmatic needs specific to the procuring agency, anticipated award price, and the...

  20. An Analysis of the Hidden Costs of Competition in the Procurement of Spare Parts at the Navy Ships Parts Control Center: A Framework for Process Improvement

    DTIC Science & Technology

    1992-03-01

    setting of sub- optimal goals and quotas, barriers between departments, and awarding contracts primarily on price are all anti-TQM practices that hinder...customer focus, the setting of sub- optimal goals and quotas, barriers between departments, and awarding contracts primarily on price are all anti-TQM/L...surveys are often required to determine if a lower competitive price could be achieved before exercising options. This requirement is a sub- optimal

  1. Determinants of price setting decisions on anti-malarial drugs at retail shops in Cambodia.

    PubMed

    Patouillard, Edith; Hanson, Kara; Kleinschmidt, Immo; Palafox, Benjamin; Tougher, Sarah; Pok, Sochea; O'Connell, Kate; Goodman, Catherine

    2015-05-30

    In many low-income countries, the private commercial sector plays an important role in the provision of malaria treatment. However, the quality of care it provides is often poor, with artemisinin combination therapy (ACT) generally being too costly for consumers. Decreasing ACT prices is critical for improving private sector treatment outcomes and reducing the spread of artemisinin resistance. Yet limited evidence exists on the factors influencing retailers' pricing decisions. This study investigates the determinants of price mark-ups on anti-malarial drugs in retail outlets in Cambodia. Taking an economics perspective, the study tests the hypothesis that the structure of the anti-malarial market determines the way providers set their prices. Providers facing weak competition are hypothesized to apply high mark-ups and set prices above the competitive level. To analyse the relationship between market competition and provider pricing, the study used cross-sectional data from retail outlets selling anti-malarial drugs, including outlet characteristics data (e.g. outlet type, anti-malarial sales volumes), range of anti-malarial drugs stocked (e.g. dosage form, brand status) and purchase and selling prices. Market concentration, a measure of the level of market competition, was estimated using sales volume data. Market accessibility was defined based on travel time to the closest main commercial area. Percent mark-ups were calculated using price data. The relationship between mark-ups and market concentration was explored using regression analysis. The anti-malarial market was on average highly concentrated, suggesting weak competition. Higher concentration was positively associated with higher mark-ups in moderately accessible markets only, with no significant relationship or a negative relationship in other markets. Other determinants of pricing included anti-malarial brand status and generic type, with higher mark-ups on cheaper products. The results indicate that provider pricing as well as other key elements of anti-malarial supply and demand may have played an important role in the limited access to appropriate malaria treatment in Cambodia. The potential for an ACT price subsidy at manufacturer level combined with effective communications directed at consumers and supportive private sector regulation should be explored to improve access to quality malaria treatment in Cambodia.

  2. Pricing European option with transaction costs under the fractional long memory stochastic volatility model

    NASA Astrophysics Data System (ADS)

    Wang, Xiao-Tian; Wu, Min; Zhou, Ze-Min; Jing, Wei-Shu

    2012-02-01

    This paper deals with the problem of discrete time option pricing using the fractional long memory stochastic volatility model with transaction costs. Through the 'anchoring and adjustment' argument in a discrete time setting, a European call option pricing formula is obtained.

  3. Incentives and technologies for improving irrigation water use efficiency

    NASA Astrophysics Data System (ADS)

    Bruggeman, Adriana; Djuma, Hakan; Giannakis, Elias; Eliades, Marinos

    2014-05-01

    The European Water Framework Directive requires Member States to set water prices that provide adequate incentives for users to use water resources efficiently. These new water pricing policies need to consider cost recovery of water services, including financial, environmental and resource cost. Prices were supposed to have been set by 2010. So far the record has been mixed. The European Commission has sent reasoned opinions to a number of countries (Austria, Belgium, Denmark, Estonia, Finland, Germany, Hungary, Netherlands, Sweden) requesting them to adjust their national legislation to include all water services. Unbalanced water pricing may negatively affect the agricultural sector, especially in the southern EU countries, which are more dependent on irrigation water for production. The European Commission is funding several projects that aim to reduce the burden of increasing water prices on farmers by developing innovative technologies and decision support systems that will save water and increase productivity. The FP7 ENORASIS project (grant 282949) has developed a new integrated irrigation management decision support platform, which include high-resolution, ensemble weather forecasting, a GIS widget for the location of fields and sensors and a comprehensive decision support and database management software package to optimize irrigation water management. The field component includes wireless, solar-powered soil moisture sensors, small weather stations, and remotely controlled irrigation valves. A mobile App and a web-package are providing user-friendly interfaces for farmers, water companies and environmental consultants. In Cyprus, agricultural water prices have been set to achieve a cost recovery rate of 54% (2010). The pricing policy takes in consideration the social importance and financial viability of the agricultural sector, an important flexibility provided by the Water Framework Directive. The new price was set at 0.24 euro per m3 for water supply from the government irrigation network, with an additional fixed fee of 66.10 euro per ha per season. This is a substantial increase from the 0.17 euro per3 and 17.10 euro per ha fixed fee. The price for individual abstractions has been set at 0.11 euro per m^3. However, these new prices have not yet been approved by the Parliament. Agriculture in Cyprus is highly fragmented. The average farm size is 3.5 ha, while each farm holds on average 5 parcels (agricultural census of 2003). Stakeholder interviews indicated that, in general, small farmers in Cyprus have not considered investments in advanced irrigation scheduling technologies to counter balance the loom of higher water prices. However, the picture is different for large producers. A large citrus producer was interested in testing the ENORASIS technology. The first season of measurements indicated that water can be used more efficiently and that the ENORASIS system provides an important tool for reducing on-farm irrigation water use.

  4. Pricing products: juxtaposing affordability with quality appeal.

    PubMed

    1984-01-01

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

  5. 17 CFR 240.15c3-1f - Optional market and credit risk requirements for OTC derivatives dealers (Appendix F to 17 CFR...

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... less than six months. Historical data sets must be updated at least every three months and reassessed... model which at a minimum must adhere to the criteria set forth in paragraph (e) of this Appendix F. The... theoretical pricing model contains the minimum pricing factors set forth in Appendix A (§ 240.15c3-1a). The...

  6. 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.

  7. 19 CFR 351.523 - Upstream subsidies.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... the input product and the producer of the subject merchandise are affiliated; (B) The price for the subsidized input product is lower than the price that the producer of the subject merchandise otherwise would... government sets the price of the input product so as to guarantee that the benefit provided with respect to...

  8. 48 CFR 514.270-7 - Guidelines for using the price list method.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... work anticipated to be performed during normal working hours. (3) List the unit prices for work to be performed during both normal working hours and outside of normal working hours. (4) Define “normal” in terms of hours and days of the week. (5) Advise bidders of the previous year's total expenditures or...

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

    PubMed

    Agee, Mark D; Gates, Zane

    2013-02-01

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

  10. Local Telephone Costs and the Design of Rate Structures,

    DTIC Science & Technology

    1981-05-01

    guide the setting of prices for the multi-product regulated firm. Economic effi- ciency can be increased by designing rate structures that incorporate the... basic principles developed from this theory. These principles call for provisionally pricing each of the firm’s outputs at its marginal cost, testing...rule--prices are increased above marginal costs in inverse proportion to the individual price elasticities of demand. This paper applies ratemaking

  11. The effect of pricing level to the loss of welfare costs (case study: Indonesia region II water company)

    NASA Astrophysics Data System (ADS)

    K, B. Rosalina E. W.; Gravitiani, E.; Raharjo, M.; Mulyaningsih, T.

    2018-03-01

    Climate change makes the water balance composition being unstable, both quality and quantity. As a company which responsible for water management, Regional Drinking Water Company (abbreviated as PDAM) is often unable to solve the problem. Welfare costs are indicators to evaluate the economic efficiency. This study aims to calculate the welfare cost of the people lost due to the price determination of PDAM Indonesia in region II with deadweight loss (DWL) approach, so it can provide information to pricing regulator, pricing decision makers and for coIDRorate management. DWL is a loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved, caused by monopoly pricing of artificial scarcity, an externality, a tax or subsidy, or a binding price ceiling or price floor such as a minimum wage. Results showed that the pricing rules set by PDAM yielded different DWL, depending on margin set by the company DWL PDAM ranges between IDR 260,485.66/M3 to IDR 127,486,709.86/M3 which is actually shared to improve the welfare of customers, other communities, and PDAM itself. Data analysis used PDAM performance in 2015 that have not Good CoIDRorate Governance Management and Efficiency.

  12. Competition among Hospitals for HMO Business: Effect of Price and Nonprice Attributes

    PubMed Central

    Young, Gary J; Burgess, James F; Valley, Danielle

    2002-01-01

    Objective To investigate patterns of competition among hospitals for the business of health maintenance organizations (HMOs). The study focused on the relative importance of hospital price and nonprice attributes in the competition for HMO business. Data Sources/Study Setting The study capitalized on hospital cost reports from Florida that are unique in their inclusion of financial data regarding HMO business activity. The time frame was 1992 to 1997. Study Design The study was designed as an observational investigation of acute care hospitals. Principal Findings Results indicated that a hospital's share of HMO business was related to both its price and nonprice attributes. However, the importance of both price and nonprice attributes diminished as the number of HMOs in a market increased. Hospitals that were market share leaders in terms of HMO business (i.e., 30 percent or more market share) were superior, on average, to their competitors on both price and nonprice attributes. Conclusions Study results indicate that competition among hospitals for HMO business involves a complex set of price and nonprice attributes. The HMOs do not appear to focus on price alone. Hospitals likely to be the most attractive to HMOs are those that can differentiate themselves on the basis of nonprice attributes while being competitive on price as well. PMID:12479496

  13. Three studies of retail gasoline pricing dynamics

    NASA Astrophysics Data System (ADS)

    Atkinson, Benjamin James

    In many Canadian cities, retail gasoline prices appear to cycle, rising by large amounts in one or two days followed by several days of small consecutive price decreases. While many empirical studies examine such markets, certain questions cannot b e properly answered without high frequency, station-specific price data for an entire market. Thus, the first paper in this thesis uses bi-hourly price data collected for 27 stations in Guelph, Ontario, eight tunes per day for 103 days to examine several basic predictions of the Edgeworth cycle theory. The results are largely consistent with this theory. However, most independent firms do not tend to undercut their rivals' prices, contrary to previous findings. Furthermore, the tuning, sizes and leaders of price increases appear to be very predictable, and a specific pattern of price movements has been detected on days when prices increase. These findings suggest that leading a price increase might not be as risky as one may expect. The second paper uses these same data to examine the implications o f an informal theory of competitive gasoline pricing, as advanced by industry and government. Consistent with this theory, stations do tend to set prices to match (or set a small positive or negative differential with) a small number of other stations, which are not necessarily the closest stations. Also, while retailers frequently respond to price changes within two hours, many take considerably longer to respond than is predicted by the theory. Finally, while price decreases do ripple across the market like falling dominos, increases appear to propagate based more on geographic location and source of price control than proximity to the leaders. The third paper uses both these data and Guelph price data collected every 12 hours during the same 103 days from OntarioGasPrices.com to examine the sample selection biases that might exist in such Internet price data, as well as their implications for empirical research. It is found that the Internet data tend to accurately identify features of cycles that can be distinguished using company-operated, major brand station prices, while features that require individual independent station data or very high frequency data might not be well-identified.

  14. 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.

  15. 13 CFR 125.19 - When may a contracting officer set-aside a procurement for SDVO SBCs?

    Code of Federal Regulations, 2013 CFR

    2013-01-01

    ... be made at fair market prices. This requirement does not preclude a contracting officer from making... delivery and award will be made at fair market prices. However, after conducting market research, the... rationale used to support the specific set-aside, including the type and extent of market research conducted...

  16. Set the Wrong Tuition and You'll Pay a Price

    ERIC Educational Resources Information Center

    Strauss, David W.

    2006-01-01

    For all of the attention rising college costs continue to receive, it is striking how poorly informed many decision makers are when it comes to setting tuition and fees. And it's equally astounding that so many institutions are learning the consequences of pricing decisions undertaken solely by trial and error when a wrong judgment can affect…

  17. Differences in price elasticities of demand for health insurance: a systematic review.

    PubMed

    Pendzialek, Jonas B; Simic, Dusan; Stock, Stephanie

    2016-01-01

    Many health insurance systems apply managed competition principles to control costs and quality of health care. Besides other factors, managed competition relies on a sufficient price-elastic demand. This paper presents a systematic review of empirical studies on price elasticity of demand for health insurance. The objective was to identify the differing international ranges of price elasticity and to find socio-economic as well as setting-oriented factors that influence price elasticity. Relevant literature for the topic was identified through a two-step identification process including a systematic search in appropriate databases and further searches within the references of the results. A total of 45 studies from countries such as the USA, Germany, the Netherlands, and Switzerland were found. Clear differences in price elasticity by countries were identified. While empirical studies showed a range between -0.2 and -1.0 for optional primary health insurance in the US, higher price elasticities between -0.6 and -4.2 for Germany and around -2 for Switzerland were calculated for mandatory primary health insurance. Dutch studies found price elasticities below -0.5. In consideration of all relevant studies, age and poorer health status were identified to decrease price elasticity. Other socio-economic factors had an unclear impact or too limited evidence. Premium level, range of premiums, homogeneity of benefits/coverage and degree of forced decision were found to have a major influence on price elasticity in their settings. Further influence was found from supplementary insurance and premium-dependent employer contribution.

  18. The Daniel K. Inouye College of Pharmacy Scripts: Prescription Drug Pricing.

    PubMed

    Sumida, Wesley K; Taniguchi, Ronald; Juarez, Deborah Taira

    2016-01-01

    Prescription drugs have reduced morbidity and mortality and improved the quality of life of millions of Americans. Yet, concerns over drug price increases loom. Drug spending has risen relatively slowly over the past decade because many of the most popular brand-name medicines lost patent protection. In the near future, there will be fewer low-cost generics coming into the market to offset the rising prices of brand-name drugs. Drug expenditures are influenced by both volume and price. This article focuses on how drug prices are set in the United States and current trends. Drug prices are determined through an extremely complicated set of interactions between pharmaceutical manufacturers, wholesalers, retailers, insurers, pharmacy benefit managers (PBMs), managed care organizations, hospitals, chain stores, and consumers. The process differs depending on the type of drug and place of delivery. Rising drug prices have come under increased scrutiny due to increased cost inflation and because many price increases come as a result of mergers and acquisitions of generic drug companies or changes in ownership of brand name drug manufacturers. Other countries have reigned in drug prices by negotiating with or regulating pharmaceutical manufacturers. The best long-term solution to rising drug prices is yet to be determined but the United States will continue to debate this issue and the discussions will get more heated if drug expenditures continue to rise at a rapid rate (ie, increasing 13% in 2014 from the previous year).

  19. 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. Copyright © 2014 Elsevier Ireland Ltd. All rights reserved.

  20. Barriers and Facilitators to Stocking Healthy Food Options: Viewpoints of Baltimore City Small Storeowners

    PubMed Central

    Kim, Mhinjine; Budd, Nadine; Batorsky, Benjamin; Krubiner, Carleigh; Manchikanti, Swathi; Waldrop, Greer; Trude, Angela; Gittelsohn, Joel

    2017-01-01

    Receptivity to strategies to improve the food environment by increasing access to healthier foods in small food stores is underexplored. We conducted 20 in-depth interviews with small storeowners of different ethnic backgrounds, as part of a small store intervention trial. Storeowners perceived barriers and facilitators to purchase, stock and promote healthy foods. Barriers mentioned included customer preferences for higher fat and sweeter taste and for lower prices price, lower wholesaler availability of healthy food, and customers’ lack of interest in health. Most storeowners thought positively of taste tests, free samples and communication interventions. However, they varied in terms of their expectations of the impact these strategies on customers’ healthy food purchases. The findings reported add to the limited data on motivating and working with small store owners in low income urban settings. PMID:27841664

  1. 15 CFR 50.50 - Request for certification.

    Code of Federal Regulations, 2010 CFR

    2010-01-01

    ... expended) as well as the set cost of the data product (e.g., report or map) to be certified. Certification prices are shown in the following table: Price by Type of Certification Product Estimated price Estimated... 15 Commerce and Foreign Trade 1 2010-01-01 2010-01-01 false Request for certification. 50.50...

  2. 75 FR 10561 - Pricing for 2010 United States Mint America the Beautiful QuartersTM

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-03-08

    ... DEPARTMENT OF THE TREASURY United States Mint Pricing for 2010 United States Mint America the...: Notice. SUMMARY: The United States Mint is announcing the price of the 2010 United States Mint America the Beautiful Quarters Two-Roll Set and the 2010 United States Mint America the Beautiful Quarters 100...

  3. Implications of raising cigarette excise taxes in Peru.

    PubMed

    Gonzalez-Rozada, Martin; Ramos-Carbajales, Alejandro

    2016-10-01

    To assess how raising cigarette excise taxes in Peru might impact cigarette consumption, and to determine if higher taxes would be regressive. Total demand price elasticity was estimated by income groups using two datasets: quarterly time-series data from 1993 - 2012 and data from a cross-sectional survey of income and expenses conducted in 2008 - 2009 . A functional form of the cigarette demand in Peru was specified using the quarterly data set, and the demand price elasticity was estimated for the short and long run. Using the second data set and Deaton methodology, the implementation of elasticity estimation and by groups' elasticity was done in a two-step procedure. Demand price elasticity was -0.7, implying that a 10% price increase via a new tax would reduce consumption by 7%. Demand price elasticity estimations by income group suggested that poorer families are not more price sensitive than richer ones, which implies that increasing cigarette taxes could be regressive. Increasing cigarette taxes is the most efficient policy for inducing a reduction in smoking. However, in the case of Peru, an increase in cigarette taxes could be regressive.

  4. Universal portfolios generated by weakly stationary processes

    NASA Astrophysics Data System (ADS)

    Tan, Choon Peng; Pang, Sook Theng

    2014-12-01

    Recently, a universal portfolio generated by a set of independent Brownian motions where a finite number of past stock prices are weighted by the moments of the multivariate normal distribution is introduced and studied. The multivariate normal moments as polynomials in time consequently lead to a constant rebalanced portfolio depending on the drift coefficients of the Brownian motions. For a weakly stationary process, a different type of universal portfolio is proposed where the weights on the stock prices depend only on the time differences of the stock prices. An empirical study is conducted on the returns achieved by the universal portfolios generated by the Ornstein-Uhlenbeck process on selected stock-price data sets. Promising results are demonstrated for increasing the wealth of the investor by using the weakly-stationary-process-generated universal portfolios.

  5. Mitigating Distributed Denial of Service Attacks with Dynamic Resource Pricing

    DTIC Science & Technology

    2001-10-01

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

  6. Higher Prices, Fewer Choices: Shopping for Food in Rural America.

    ERIC Educational Resources Information Center

    Morris, Patricia McGrath

    The Food Stamp Program is the U.S. government's primary program to prevent the rural poor from going hungry. Food stamp allotments are set each year based on the cost of the "Thrifty Food Plan" (TFP), a minimally adequate diet defined by the U.S. Department of Agriculture (USDA), which sets costs by examining average food prices in urban…

  7. 13 CFR 125.19 - When may a contracting officer set-aside a procurement for SDVO SBCs?

    Code of Federal Regulations, 2012 CFR

    2012-01-01

    ... terms of quality and delivery and award will be made at fair market prices. This requirement does not... terms of quality and delivery and award will be made at fair market prices. However, after conducting market research, the contracting officer shall first consider a set-aside or sole source award (if the...

  8. Buyer and seller data from pay what you want and name your own price laboratory markets.

    PubMed

    Krämer, Florentin; Schmidt, Klaus M; Spann, Martin; Stich, Lucas

    2017-06-01

    Pay What You Want (PWYW) and Name Your Own Price (NYOP) are customer-driven pricing mechanisms that give customers (some) pricing power and that have been used in service industries with high fixed costs to price discriminate without setting a reference price. This paper describes buyer and seller data in a series of induced-value laboratory experiments that compare PWYW and NYOP in monopoly and competitive situations. Sellers are in a one-shot interaction with buyers. Sellers using customer-driven pricing mechanisms may exogenously or endogenously receive additional promotional benefits, for instance through word-of-mouth effects. The major findings based on the data presented here are reported in the paper "Delegating Pricing Power to Customers: Pay What You Want or Name Your Own Price?" (Krämer et al., 2017) [3].

  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. The Daniel K. Inouye College of Pharmacy Scripts

    PubMed Central

    Sumida, Wesley K; Taniguchi, Ronald; Juarez, Deborah Taira

    2016-01-01

    Prescription drugs have reduced morbidity and mortality and improved the quality of life of millions of Americans. Yet, concerns over drug price increases loom. Drug spending has risen relatively slowly over the past decade because many of the most popular brand-name medicines lost patent protection. In the near future, there will be fewer low-cost generics coming into the market to offset the rising prices of brand-name drugs. Drug expenditures are influenced by both volume and price. This article focuses on how drug prices are set in the United States and current trends. Drug prices are determined through an extremely complicated set of interactions between pharmaceutical manufacturers, wholesalers, retailers, insurers, pharmacy benefit managers (PBMs), managed care organizations, hospitals, chain stores, and consumers. The process differs depending on the type of drug and place of delivery. Rising drug prices have come under increased scrutiny due to increased cost inflation and because many price increases come as a result of mergers and acquisitions of generic drug companies or changes in ownership of brand name drug manufacturers. Other countries have reigned in drug prices by negotiating with or regulating pharmaceutical manufacturers. The best long-term solution to rising drug prices is yet to be determined but the United States will continue to debate this issue and the discussions will get more heated if drug expenditures continue to rise at a rapid rate (ie, increasing 13% in 2014 from the previous year). PMID:26870605

  11. Dynamic Pricing Criteria in Linear Programming

    DTIC Science & Technology

    1988-07-01

    DTICE’ECTE h QSEPO08 19880 Department of Operations Researchs Stanford University Stanford, CA 94305 Fl . dommd lum b dLvulbcjasa Im %ailmft@d.I &~ T...information about positive ones. 38 C- M .9 ~ ,~- - ~ fl .’ %’% ’ % % .,h.] However, this rule works extremely well on the PILOT set, achieving...34 .r " .:." ," "e .-r".’.€ .-,N., N REFERENCES [1] Adler, I., Resende, M.G. and Veiga , G. (1986). An implementation of Karmax- kar’s algorithm for

  12. Bulk Fuel Pricing: DOD Needs to Take Additional Actions to Establish a More Reliable Methodology

    DTIC Science & Technology

    2015-11-19

    Page 1 GAO-16-78R Bulk Fuel Pricing 441 G St. N.W. Washington, DC 20548 November 19, 2015 The Honorable Ashton Carter The Secretary of...Defense Bulk Fuel Pricing : DOD Needs to Take Additional Actions to Establish a More Reliable Methodology Dear Secretary Carter: Each fiscal...year, the Office of the Under Secretary of Defense (Comptroller), in coordination with the Defense Logistics Agency, sets a standard price per barrel

  13. Scaling and long-range dependence in option pricing V: Multiscaling hedging and implied volatility smiles under the fractional Black-Scholes model with transaction costs

    NASA Astrophysics Data System (ADS)

    Wang, Xiao-Tian

    2011-05-01

    This paper deals with the problem of discrete time option pricing using the fractional Black-Scholes model with transaction costs. Through the ‘anchoring and adjustment’ argument in a discrete time setting, a European call option pricing formula is obtained. The minimal price of an option under transaction costs is obtained. In addition, the relation between scaling and implied volatility smiles is discussed.

  14. Influence of natural amenities on residential property values in a rural setting.

    Treesearch

    E.M. White; L.A. Leefers

    2007-01-01

    Most hedonic pricing studies have been completed in suburban and urban communities rather than rural areas. The hedonic pricing study presented here includes developed residential parcel transactions occurring in a rural county in Michigan. We develop two hedonic pricing models using transactions data for two rural residential parcel types: developed parcels located in...

  15. 75 FR 13345 - Pricing for Certain United States Mint Products

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-03-19

    ... is announcing the price of First Spouse Bronze Medals and 2010 First Spouse Bronze Medal Series: Four... currently on sale, effective March 18, 2010. The 2010 First Spouse Bronze Medal Series: Four-Medal Set will be priced at $15.95 and will contain all four 2010 First Spouse Bronze Medals. The release date for...

  16. Online vs. On-Campus: An Analysis of Course Prices of U.S. Educational Institutions

    ERIC Educational Resources Information Center

    Wang, Shouhong

    2015-01-01

    Pricing online courses is an important issue for managing online education. This research note reports a statistical analysis of price differences between online courses and on-campus courses at 103 US educational institutions based on the data available on the Internet. The finding indicates that educational institutions set significantly lower…

  17. 76 FR 4292 - Certain Frozen Fish Fillets From the Socialist Republic of Vietnam: Preliminary Results of...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2011-01-25

    ... manufacturing priorities, and (3) there is a significant potential for manipulation of price or production. See... that there is a significant potential for the manipulation of price or production; (2) the level of... control over exports is based on whether the respondent: (1) Sets its own export prices independent of the...

  18. 75 FR 4598 - Self-Regulatory Organizations; NYSE Amex, Inc.; Order Approving Proposed Rule Change To Establish...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2010-01-28

    ... Exchange submits that the NYSE Realtime Reference Prices constitute ``non-core data;'' i.e., the Exchange... reasonably in setting market data fees for non-core products such as NYSE Amex Realtime Reference Prices. The... Realtime Reference Prices Service January 22, 2010. I. Introduction On November 30, 2009, the NYSE Amex...

  19. 48 CFR 1852.232-77 - Limitation of funds (fixed-price contract).

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... allotment of funds for the total price of said work except for rights and obligations then existing under...-price contract). 1852.232-77 Section 1852.232-77 Federal Acquisition Regulations System NATIONAL... Provisions and Clauses 1852.232-77 Limitation of funds (fixed-price contract). As prescribed in 1832.705-270...

  20. If it ain't broke, don't price fix it: the OFT and the PPRS.

    PubMed

    Towse, Adrian

    2007-07-01

    The Office of Fair Trading (OFT) Report on the UK Pharmaceutical Price Regulation Scheme (PPRS) recommends that when the current five-year PPRS expires in 2010 it be replaced with 'value-based pricing' which involves pre-launch centralised government price setting based on a cost-per-QALY threshold plus periodic ex post reviews. I examine the validity of the OFTs criticisms of the existing PPRS, review its proposals and propose an alternative way forward. I conclude that PPRS has performed well as a procurement bargain between industry and the UK government. It does not, however, incentivise efficient relative prices. That is not its job. I identify a number of problems with the OFT proposals. I recommend that key elements of a reformed UK pharmaceutical environment for 2010 should include an expanded role for HTA but with companies retaining freedom to set prices at launch; HTA use targeted via a contingent value of information approach; a retained backstop PPRS, perhaps moving to an RPI-X type control; the use of risk sharing and non-linear pricing arrangements; measures to ensure more effective therapeutic switching at local level; and measures to improve the take up of cost-effective treatments. Copyright (c) 2007 John Wiley & Sons, Ltd.

  1. Convergence of decision rules for value-based pricing of new innovative drugs.

    PubMed

    Gandjour, Afschin

    2015-04-01

    Given the high costs of innovative new drugs, most European countries have introduced policies for price control, in particular value-based pricing (VBP) and international reference pricing. The purpose of this study is to describe how profit-maximizing manufacturers would optimally adjust their launch sequence to these policies and how VBP countries may best respond. To decide about the launching sequence, a manufacturer must consider a tradeoff between price and sales volume in any given country as well as the effect of price in a VBP country on the price in international reference pricing countries. Based on the manufacturer's rationale, it is best for VBP countries in Europe to implicitly collude in the long term and set cost-effectiveness thresholds at the level of the lowest acceptable VBP country. This way, international reference pricing countries would also converge towards the lowest acceptable threshold in Europe.

  2. How have hospitals faced the pricing issues of the 1990's?

    PubMed

    Kleimenhagen, A; Naidu, G M; Pillari, G D

    1994-01-01

    National health care expenditures are rising rapidly, bringing on a health care financing crisis. For this reason, it is useful to see how hospitals are facing the price issues of the 1990's. This study examines the price strategies hospitals follow and analyzes their observations on price sensitivity and payer mix. The results clearly show that hospitals have not given much attention to the pricing variable. The study suggests that marketing and finance will have to work closely together in developing future pricing strategies.

  3. 47 CFR 69.151 - Applicability.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... Computation of Charges for Price Cap Local Exchange Carriers § 69.151 Applicability. This subpart shall apply only to telephone companies subject to the price cap regulations set forth in part 61 of this chapter. ...

  4. Dynamic Pricing in Electronic Commerce Using Neural Network

    NASA Astrophysics Data System (ADS)

    Ghose, Tapu Kumar; Tran, Thomas T.

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

  5. Ontario’s plunging price-caps on generics: deeper dives may drown some drugs

    PubMed Central

    Anis, Aslam; Harvard, Stephanie; Marra, Carlo

    2011-01-01

    In April 2010, the Ontario government announced another reduction in the maximum price of generic drugs permitted under the Ontario Drug Benefit (ODB) program, demanding that generic drugs now be sold for no more than 25% of the branded product’s price. Other provinces are following Ontario in setting unprecedentedly low price-caps to reduce the cost of generic drugs. Generic product substitution legislation is vital to reducing costs to provincial drug plans, yet lower and lower price-caps may undo some of the benefits of substitution legislation if generics find it difficult to survive. PMID:22046229

  6. Ontario's plunging price-caps on generics: deeper dives may drown some drugs.

    PubMed

    Anis, Aslam; Harvard, Stephanie; Marra, Carlo

    2011-01-01

    In April 2010, the Ontario government announced another reduction in the maximum price of generic drugs permitted under the Ontario Drug Benefit (ODB) program, demanding that generic drugs now be sold for no more than 25% of the branded product's price. Other provinces are following Ontario in setting unprecedentedly low price-caps to reduce the cost of generic drugs. Generic product substitution legislation is vital to reducing costs to provincial drug plans, yet lower and lower price-caps may undo some of the benefits of substitution legislation if generics find it difficult to survive.

  7. How can PPOs control prices without violating antitrust laws?

    PubMed

    Fried, J M

    1984-03-01

    Preferred provider organizations (PPOs) have caused concern because they raise the question whether providers can establish mechanisms to control the price of medical care without violating antitrust laws. The U.S. Supreme Court recently decided in Arizona v. Maricopa County Medical Society that the practices of a physicians' organization which set fee schedules by majority vote constituted price fixing because "independent competing entrepreneurs" made the agreements. The decision implies that PPOs must carefully structure collective efforts to set prices in order to avoid unlawful agreement among competitors. To avoid antitrust exposure, hospitals may independently determine prices and contract individually with providers, or they may act as brokers for individual physicians, establishing fees and claims-processing procedures and then contracting with physicians who agree to these requirements. Setting fees independently may be difficult, however, since hospitals need to know what payment physicians will accept. Thus some physician involvement is probably inevitable. No antitrust liability results, however, if individual physicians are sampled in an information-gathering process but do not collectively set fees. In addition, a PPO that is structured as a partnership or other joint arrangement involving true risk sharing should withstand antitrust challenge. In recent business review letters, the Department of Justice approved two different PPO structures: A Hospital Corporation of America subsidiary would contract (nonexclusively) with providers, hospitals, and third party payers to treat the third party payers' beneficiaries at discounted rates. The charges would be negotiated individually with each physician and hospital. A management consultant firm would act as an intermediary between providers and third party payers, negotiating patient discounts but not participating in fee setting. A PPO need not be structured in every respect like these programs. Individual situations vary, and with sound antitrust advice, PPOs can avoid legal pitfalls.

  8. Bigger is Better, but at What Cost? Estimating the Economic Value of Incremental Data Assets.

    PubMed

    Dalessandro, Brian; Perlich, Claudia; Raeder, Troy

    2014-06-01

    Many firms depend on third-party vendors to supply data for commercial predictive modeling applications. An issue that has received very little attention in the prior research literature is the estimation of a fair price for purchased data. In this work we present a methodology for estimating the economic value of adding incremental data to predictive modeling applications and present two cases studies. The methodology starts with estimating the effect that incremental data has on model performance in terms of common classification evaluation metrics. This effect is then translated into economic units, which gives an expected economic value that the firm might realize with the acquisition of a particular data asset. With this estimate a firm can then set a data acquisition price that targets a particular return on investment. This article presents the methodology in full detail and illustrates it in the context of two marketing case studies.

  9. Low carbon and clean energy scenarios for India: Analysis of targets approach

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

    Shukla, Priyadarshi R.; Chaturvedi, Vaibhav

    2012-12-01

    Low carbon energy technologies are gaining increasing importance in India for reducing emissions as well as diversifying its energy supply mix. The present paper presents and analyses a targeted approach for pushing solar, wind and nuclear technologies in the Indian energy market. Targets for these technologies have been constructed on the basis of Indian government documents, policy announcements and expert opinion. Different targets have been set for the reference scenario and the carbon price scenario. In the reference scenario it is found that in the long run all solar, wind and nuclear will achieve their targets without any subsidy push.more » In the short run however, nuclear and solar energy require significant subsidy push. Nuclear energy requires a much higher subsidy allocation as compared to solar because the targets assumed are also higher for nuclear energy. Under a carbon price scenario, the carbon price drives the penetration of these technologies significantly. Still subsidy is required especially in the short run when the carbon price is low. It is also found that pushing solar, wind and nuclear technologies might lead to decrease in share of CCS under the price scenario and biomass under both BAU and price scenario, which implies that one set of low carbon technologies is substituted by other set of low carbon technologies. Thus the objective of emission mitigation might not be achieved due to this substitution. Moreover sensitivity on nuclear energy cost was done to represent risk mitigation for this technology and it was found that higher cost can significantly decrease the share of this technology under both the BAU and carbon price scenario.« less

  10. Differential pricing of drugs: a role for cost-effectiveness analysis?

    PubMed

    Lopert, Ruth; Lang, Danielle L; Hill, Suzanne R; Henry, David A

    2002-06-15

    Internationally, the high costs of pharmaceutical products limit access to treatment. The principle of differential pricing is that drug prices should vary according to some measure of affordability. How differential prices should be determined is, however, unclear. Here we describe a method whereby differential prices for essential drugs could be derived in countries of variable national wealth, and, using angiotensin-converting enzyme inhibitors provide an example of how the process might work. Indicative prices for drugs can be derived by cost-effectiveness analysis that incorporates a measure of national wealth. Such prices could be used internationally as a basis of differential price negotiations.

  11. What price quitting? The price of cigarettes at which smokers say they would seriously consider trying to quit.

    PubMed

    Scollo, Michelle; Hayes, Linda; Wakefield, Melanie

    2013-07-13

    Deciding on an appropriate level for taxes on tobacco products is a critical issue in tobacco control. The aim of the present study was to describe the critical price points for packs for smokers of each pack size, to calculate what this would equate to in terms of price per stick, and to ascertain whether price points varied by age, socio-economic status and heaviness of smoking. In November 2011, 586 Victorian smokers of factory-made cigarettes were asked during a telephone survey about their usual brand, including the size and cost of their usual pack. They were also asked about use of illicit tobacco. Smokers estimated what price their preferred pack would need to reach before they would seriously consider quitting. Three-quarters of regular smokers of manufactured cigarettes could envisage their usual brand reaching a price at which they would seriously consider quitting. Analyses revealed that answers clustered around whole numbers, (AUD$15, $20, $25 and $30), with a median nominated price point of AUD$20 per pack. The median price point at which regular smokers would consider quitting was calculated to be 80 cents per stick, compared to the current median reported stick price of 60 cents.Of the smokers who nominated a price point, 60.1% indicated they would seriously consider quitting if the cost of their usual brand equated to 80 cents per stick or less; 87.5% would seriously consider quitting if sticks reached one dollar each. These results do suggest a potentially useful approach to setting taxes in Australia. If taxes can be set high enough to ensure that the cost of the smokers' preferred packs exceeds critical price points, then it seems likely that more people would seriously attempt to quit than if the price increased to a level even slightly below the price points. Our study suggests that a tax increase large enough to ensure that a typical pack of 25 cigarettes in Australia cost at least AUD$20 would prompt more than 60% of smokers able to nominate a price point to seriously think about quitting, with particularly strong effects among low-SES smokers.

  12. Transactional price of an expected child and its application in birth control.

    PubMed

    Li, X

    1993-01-01

    The theoretical presentation of the impact of the transactional price of an expected child (TPEC) on birth control led to the conclusion that successful birth control was a combination of birth utility theory and TPEC theory. In a hypothetical market, the assumption can be made that an expected price can be attached to a desired child or a transactional price can be attached for giving up the reproductive right to have an excess child. A consumer equilibrium model can characterize the changes in financial resources necessary in deciding on an appropriate number of children. In a general equilibrium model, couples would have to be compensated a certain amount as an inducement to forgo the right to have a second child. Prices of children can be determined by a distributional curve of this transactional price of expected excess children and the estimated marginal price for couples with two children. Under circumstances of limited resources, it would be cheaper to buy some couple's rights to forgo a child, and this price would vary with parity. The exact transactional price of each child by parity by each couple could be theoretically determined, if all couples told the truth about desired number of children. However, the complication is that this condition may not be possible, and couples may charge more for forgoing the right to a subsequent child that what they would actually accept. Also, the seller could ask one price and then charge more. A compromise would be to set prices only for lower parities and to set prices subject to the total funds available to the buyer. Very low prices would also decrease the effectiveness of birth control. The government could be a buyer or seller. Taxing couples for additional children would make the government a seller. When the government is the buyer, couples would be compensated for not having an additional child. Another possibility is a reward for having only a certain number of children and a tax for excess children, which would be a mixed transactional price. The transactional price must be contractual, and breach of contract would mean forfeiture of profit or required sterilization.

  13. A Review and Introduction to Higher Education Price Response Studies. Working Paper Series.

    ERIC Educational Resources Information Center

    Chisholm, Mark; Cohen, Bethaviva

    Background information needed to understand the literature on the impact of price on college attendance (i.e. price-response literature) is provided. After briefly introducing price theory and its use in demand studies in higher education, the major expository articles are reviewed, and major analytical methods used by researchers are examined.…

  14. Pricing and Fee Management.

    ERIC Educational Resources Information Center

    Fischer, Richard B.

    1986-01-01

    Defines key terms and discusses things to consider when setting fees for a continuing education program. These include (1) the organization's philosophy and mission, (2) certain key variables, (3) pricing strategy options, and (4) the test of reasonableness. (CH)

  15. Pharmaceutical pricing in Japan: market evidence for rheumatoid arthritis treatment.

    PubMed

    Mahlich, Jörg; Kamae, Isao; Sruamsiri, Rosarin

    2018-06-01

    Drug price setting is one of the key challenges faced by the Japanese health care system. This study aims to identify the determinants of drug price in Japan using the example of the rheumatoid arthritis (RA) treatment market. In order to compare prices across different products, we calculated prices per defined daily dose using WHO methodology. Price determinants were calculated both at launch and over time using IMS quarterly data on medicines approved for RA treatment in Japan from 2012 to 2015. Pharmaceutical pricing was modeled as a function of clinical and economic variables using regression analysis. For prices at the launch we found that differences in efficacy are not reflected in price differentials. We also report that the number of products within a molecule class had a negative effect on prices while originator drugs maintained higher prices. Although the existing pricing rules in Japan are very comprehensive they do not necessarily capture differences in product characteristics. The findings here support the notion that competitive forces are weak in highly regulated markets such as Japan.

  16. Pricing of medical devices under coverage uncertainty--a modelling approach.

    PubMed

    Girling, Alan J; Lilford, Richard J; Young, Terry P

    2012-12-01

    Product vendors and manufacturers are increasingly aware that purchasers of health care will fund new clinical treatments only if they are perceived to deliver value-for-money. This influences companies' internal commercial decisions, including the price they set for their products. Other things being equal, there is a price threshold, which is the maximum price at which the device will be funded and which, if its value were known, would play a central role in price determination. This paper examines the problem of pricing a medical device from the vendor's point of view in the presence of uncertainty about what the price threshold will be. A formal solution is obtained by maximising the expected value of the net revenue function, assuming a Bayesian prior distribution for the price threshold. A least admissible price is identified. The model can also be used as a tool for analysing proposed pricing policies when no formal prior specification of uncertainty is available. Copyright © 2011 John Wiley & Sons, Ltd.

  17. A NEW HEALTH TECHNOLOGY ASSESSMENT SYSTEM FOR JAPAN? SIMULATING THE POTENTIAL IMPACT ON THE PRICE OF SIMEPREVIR.

    PubMed

    Mahlich, Jörg; Kamae, Isao; Rossi, Bruno

    2017-01-01

    Japanese authorities have announced a plan to introduce a health technology assessment (HTA) system in 2016. This study assessed the potential impact of such a policy on the price of the antivirologic drug simeprevir. Taking the antivirologic drug simeprevir as an example, we compared the current Japanese price with hypothetical prices that might result if a U.K. (cost-utility) or German (efficiency frontier) style HTA assessment was in place. The simeprevir unit price under the current Japanese pricing scheme is 13,122 Japanese yen (equivalent to 109.35 U.S. dollars as of April 2015). Depending on the selection of comparators and the pricing method, and assuming that HTA will be used as a basis for price setting, the estimated prices of simeprevir vary up to four times higher than under the current Japanese pricing scheme. Although the analysis is based on only one drug, it cannot be taken for granted that a new HTA system would reduce public healthcare expenditure in Japan.

  18. Competition and the Reference Pricing Scheme for pharmaceuticals.

    PubMed

    Ghislandi, Simone

    2011-12-01

    By introducing n (>1) firms with infinite cross-price elasticity (i.e. generic drugs), we explore the effects of competition on the optimal pricing strategies under a Reference Pricing Scheme (RPS). A two-stage model repeated infinite number of times is presented. When stage 1 is competitive, the equilibrium in pure strategies exists and is efficient only if the reference price (R) does not depend on the price of the branded product. When generics collude, the way R is designed is crucial for both the stability of the cartel among generics and the collusive prices in equilibrium. An optimally designed RPS must set R as a function only of the infinitely elastic side of the market and should provide the right incentives for competition. Copyright © 2011 Elsevier B.V. All rights reserved.

  19. Short-Term Energy Outlook Model Documentation: Natural Gas Consumption and Prices

    EIA Publications

    2015-01-01

    The natural gas consumption and price modules of the Short-Term Energy Outlook (STEO) model are designed to provide consumption and end-use retail price forecasts for the residential, commercial, and industrial sectors in the nine Census districts and natural gas working inventories in three regions. Natural gas consumption shares and prices in each Census district are used to calculate an average U.S. retail price for each end-use sector.

  20. Value-based differential pricing: efficient prices for drugs in a global context.

    PubMed

    Danzon, Patricia; Towse, Adrian; Mestre-Ferrandiz, Jorge

    2015-03-01

    This paper analyzes pharmaceutical pricing between and within countries to achieve second-best static and dynamic efficiency. We distinguish countries with and without universal insurance, because insurance undermines patients' price sensitivity, potentially leading to prices above second-best efficient levels. In countries with universal insurance, if each payer unilaterally sets an incremental cost-effectiveness ratio (ICER) threshold based on its citizens' willingness-to-pay for health; manufacturers price to that ICER threshold; and payers limit reimbursement to patients for whom a drug is cost-effective at that price and ICER, then the resulting price levels and use within each country and price differentials across countries are roughly consistent with second-best static and dynamic efficiency. These value-based prices are expected to differ cross-nationally with per capita income and be broadly consistent with Ramsey optimal prices. Countries without comprehensive insurance avoid its distorting effects on prices but also lack financial protection and affordability for the poor. Improving pricing efficiency in these self-pay countries includes improving regulation and consumer information about product quality and enabling firms to price discriminate within and between countries. © 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.

  1. Drug affordability-potential tool for comparing illicit drug markets.

    PubMed

    Groshkova, Teodora; Cunningham, Andrew; Royuela, Luis; Singleton, Nicola; Saggers, Tony; Sedefov, Roumen

    2018-06-01

    The importance of illicit drug price data and making appropriate adjustments for purity has been repeatedly highlighted for understanding illicit drug markets. The European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) has been collecting retail price data for a number of drug types alongside drug-specific purity information for over 15 years. While these data are useful for a number of monitoring and analytical purposes, they are not without their limitations and there are circumstances where additional adjustment needs to be considered. This paper reviews some conceptual issues and measurement challenges relevant to the interpretation of price data. It also highlights the issues with between-country comparisons of drug prices and introduces the concept of affordability of drugs, going beyond purity-adjustment to account for varying national economies. Based on a 2015 European data set of price and purity data across the heroin and cocaine retail markets, the paper demonstrates a new model for drug market comparative analysis; calculation of drug affordability is achieved by applying to purity-adjusted prices 2015 Price Level Indices (PLI, Eurostat). Available data allowed retail heroin and cocaine market comparison for 27 European countries. The lowest and highest unadjusted prices per gram were observed for heroin: in Estonia, Belgium, Greece and Bulgaria (lowest) and Finland, Ireland, Sweden and Latvia (highest); for cocaine: the Netherlands, Belgium and the United Kingdom (lowest) and Turkey, Finland, Estonia and Romania (highest). The affordability per gram of heroin and cocaine when taking into account adjustment for both purity and economy demonstrates different patterns. It is argued that purity-adjusted price alone provides an incomplete comparison of retail price across countries. The proposed new method takes account of the differing economic conditions within European countries, thus providing a more sophisticated tool for cross-national comparisons of retail drug markets in Europe. Future work will need to examine other potential uses of the drug affordability tool. The limitations of this measure reflect primarily the limitations of the constituent data; in addition to issues inherent in collecting accurate data on illicit markets, analysis that relies on data collected from multiple countries is susceptible to discrepancies in data collection practices from country to country. Copyright © 2018 Elsevier B.V. All rights reserved.

  2. Associations between bride price stress and intimate partner violence amongst pregnant women in Timor-Leste.

    PubMed

    Rees, Susan; Mohsin, Mohammed; Tay, Alvin Kuowei; Soares, Elisa; Tam, Natalino; da Costa, Zelia; Tol, Wietse; Silove, Derrick

    2017-08-28

    Reducing violence against women is a global public health priority, particularly in low-income and conflict-affected societies. However, more needs to be known about the causes of intimate partner violence (IPV) in these settings, including the stress of bride price obligations. The representative study of women attending ante-natal clinics in Dili, Timor-Leste was conducted between June, 2013 and September, 2014 with 1672 pregnant women, a response rate of 96%. We applied contextually developed measures for the stress of bride price and poverty, and the World Health Organisation measure for intimate partner violence. Compared to those with no problems with bride price, women with moderate or serious problems with that custom reported higher rates of IPV (18.0% vs. 43.6%). Adjusting for socio-demographic factors, multivariate analysis revealed that ongoing poverty (OR = 1.75, 95% CI: 1.20-2.56) was significantly associated with IPV. Importantly, the strongest association with IPV was problems with bride price (OR = 2.73, 95% CI: 1.86-4.01). This is the first large consecutively sampled study to demonstrate a strong association between the stressors of bride price and poverty with IPV. Notably, bride price stress had the strongest association with IPV. Revealing this hitherto unrecognized factor of bride price stress may prove pivotal in guiding policy and interventions aimed at reducing IPV, and thereby improve the health and psychosocial status of women in low income and conflict-affected settings.

  3. Pricing of American style options with an adjoint process correction method

    NASA Astrophysics Data System (ADS)

    Jaekel, Uwe

    2005-07-01

    Pricing of American options is a more complicated problem than pricing of European options. In this work a formula is derived that allows the computation of the early exercise premium, i.e. the price difference between these two option types in terms of an adjoint process evolving in the reversed time direction of the original process determining the evolution of the European price. We show how this equation can be utilised to improve option price estimates from numerical schemes like finite difference or Monte Carlo methods.

  4. A Prescription for Drug Formulary Evaluation: An Application of Price Indexes

    PubMed Central

    Glazer, Jacob; Huskamp, Haiden A.; McGuire, Thomas G.

    2012-01-01

    Existing economic approaches to the design and evaluation of health insurance do not readily apply to coverage decisions in the multi-tiered drug formularies characterizing drug coverage in private health insurance and Medicare. This paper proposes a method for evaluating a change in the value of a formulary to covered members based on the economic theory of price indexes. A formulary is cast as a set of demand-side prices, and our measure approximates the compensation (positive or negative) that would need to be paid to consumers to accept the new set of prices. The measure also incorporates any effect of the formulary change on plan drug acquisition costs and “offset effects” on non-drug services covered by the plan. Data needed to calculate formulary value are known or can be forecast by a health plan. We illustrate the method with data from a move from a two- to a three-tier formulary. PMID:23372543

  5. Fair Package Assignment

    NASA Astrophysics Data System (ADS)

    Lahaie, Sébastien; Parkes, David C.

    We consider the problem of fair allocation in the package assignment model, where a set of indivisible items, held by single seller, must be efficiently allocated to agents with quasi-linear utilities. A fair assignment is one that is efficient and envy-free. We consider a model where bidders have superadditive valuations, meaning that items are pure complements. Our central result is that core outcomes are fair and even coalition-fair over this domain, while fair distributions may not even exist for general valuations. Of relevance to auction design, we also establish that the core is equivalent to the set of anonymous-price competitive equilibria, and that superadditive valuations are a maximal domain that guarantees the existence of anonymous-price competitive equilibrium. Our results are analogs of core equivalence results for linear prices in the standard assignment model, and for nonlinear, non-anonymous prices in the package assignment model with general valuations.

  6. Measuring Prices in Health Care Markets Using Commercial Claims Data.

    PubMed

    Neprash, Hannah T; Wallace, Jacob; Chernew, Michael E; McWilliams, J Michael

    2015-12-01

    To compare methods of price measurement in health care markets. Truven Health Analytics MarketScan commercial claims. We constructed medical prices indices using three approaches: (1) a "sentinel" service approach based on a single common service in a specific clinical domain, (2) a market basket approach, and (3) a spending decomposition approach. We constructed indices at the Metropolitan Statistical Area level and estimated correlations between and within them. Price indices using a spending decomposition approach were strongly and positively correlated with indices constructed from broad market baskets of common services (r > 0.95). Prices of single common services exhibited weak to moderate correlations with each other and other measures. Market-level price measures that reflect broad sets of services are likely to rank markets similarly. Price indices relying on individual sentinel services may be more appropriate for examining specialty- or service-specific drivers of prices. © Health Research and Educational Trust.

  7. Strategic wholesale pricing for an incumbent supplier facing with a competitive counterpart.

    PubMed

    Sun, Jianwu

    2014-01-01

    We introduce a wholesale pricing strategy for an incumbent supplier facing with a competitive counterpart. We propose a profit function which considers both the present loss and future loss from a wholesale price and then study the optimal wholesale prices for different objectives about this profit function for the incumbent supplier. First, we achieve an optimal wholesale price for the incumbent supplier to maximize his expected profit. Then, to reduce the risk originating from the fluctuation in the competitive supplier's wholesale price, we integrate the conditional value-at-risk (CVaR) measure in financial risk management into this study and derive an optimal wholesale price to maximize CVaR about profit for the incumbent supplier. Besides, the properties of the two optimal wholesale prices are discussed. Finally, some management insights are suggested for the incumbent supplier in a competitive setting.

  8. Strategic Wholesale Pricing for an Incumbent Supplier Facing with a Competitive Counterpart

    PubMed Central

    Sun, Jianwu

    2014-01-01

    We introduce a wholesale pricing strategy for an incumbent supplier facing with a competitive counterpart. We propose a profit function which considers both the present loss and future loss from a wholesale price and then study the optimal wholesale prices for different objectives about this profit function for the incumbent supplier. First, we achieve an optimal wholesale price for the incumbent supplier to maximize his expected profit. Then, to reduce the risk originating from the fluctuation in the competitive supplier's wholesale price, we integrate the conditional value-at-risk (CVaR) measure in financial risk management into this study and derive an optimal wholesale price to maximize CVaR about profit for the incumbent supplier. Besides, the properties of the two optimal wholesale prices are discussed. Finally, some management insights are suggested for the incumbent supplier in a competitive setting. PMID:25614891

  9. Study protocol: combining experimental methods, econometrics and simulation modelling to determine price elasticities for studying food taxes and subsidies (The Price ExaM Study).

    PubMed

    Waterlander, Wilma E; Blakely, Tony; Nghiem, Nhung; Cleghorn, Christine L; Eyles, Helen; Genc, Murat; Wilson, Nick; Jiang, Yannan; Swinburn, Boyd; Jacobi, Liana; Michie, Jo; Ni Mhurchu, Cliona

    2016-07-19

    There is a need for accurate and precise food price elasticities (PE, change in consumer demand in response to change in price) to better inform policy on health-related food taxes and subsidies. The Price Experiment and Modelling (Price ExaM) study aims to: I) derive accurate and precise food PE values; II) quantify the impact of price changes on quantity and quality of discrete food group purchases and; III) model the potential health and disease impacts of a range of food taxes and subsidies. To achieve this, we will use a novel method that includes a randomised Virtual Supermarket experiment and econometric methods. Findings will be applied in simulation models to estimate population health impact (quality-adjusted life-years [QALYs]) using a multi-state life-table model. The study will consist of four sequential steps: 1. We generate 5000 price sets with random price variation for all 1412 Virtual Supermarket food and beverage products. Then we add systematic price variation for foods to simulate five taxes and subsidies: a fruit and vegetable subsidy and taxes on sugar, saturated fat, salt, and sugar-sweetened beverages. 2. Using an experimental design, 1000 adult New Zealand shoppers complete five household grocery shops in the Virtual Supermarket where they are randomly assigned to one of the 5000 price sets each time. 3. Output data (i.e., multiple observations of price configurations and purchased amounts) are used as inputs to econometric models (using Bayesian methods) to estimate accurate PE values. 4. A disease simulation model will be run with the new PE values as inputs to estimate QALYs gained and health costs saved for the five policy interventions. The Price ExaM study has the potential to enhance public health and economic disciplines by introducing internationally novel scientific methods to estimate accurate and precise food PE values. These values will be used to model the potential health and disease impacts of various food pricing policy options. Findings will inform policy on health-related food taxes and subsidies. Australian New Zealand Clinical Trials Registry ACTRN12616000122459 (registered 3 February 2016).

  10. Southeast Asia Report.

    DTIC Science & Technology

    1987-04-27

    have imported these materials at prices higher than the material prices set by the state. The price of coconut oil in the southern provinces has...important source of exports. Here it is necessary to pay attention to developing the various kinds of food products: vegetables, beans, peanuts, oil ...short-term industrial crops, and must effectively develop such long-range industrial crops as coffee, tea, pepper, coconuts , etc., to fully utilize

  11. Biological and Economic Productivity of Mixed-Aged Loblolly Pine Stands in the South

    Treesearch

    Ronald Raunikar; Joseph Buongiorno; Jeffrey P. Prestemon; Karen Lee-Abt

    1999-01-01

    The financial performance of the 991 sample plots of uneven-aged loblolly-hardwood stands in the Central South FIA database examined in this report depend crucially on real price trends. Equivalent annual income (EAI) is the measure of economic performance. The regional market stumpage price data are from the Timber Mart-South database. For this set of prices, a...

  12. The estimation of time-varying risks in asset pricing modelling using B-Spline method

    NASA Astrophysics Data System (ADS)

    Nurjannah; Solimun; Rinaldo, Adji

    2017-12-01

    Asset pricing modelling has been extensively studied in the past few decades to explore the risk-return relationship. The asset pricing literature typically assumed a static risk-return relationship. However, several studies found few anomalies in the asset pricing modelling which captured the presence of the risk instability. The dynamic model is proposed to offer a better model. The main problem highlighted in the dynamic model literature is that the set of conditioning information is unobservable and therefore some assumptions have to be made. Hence, the estimation requires additional assumptions about the dynamics of risk. To overcome this problem, the nonparametric estimators can also be used as an alternative for estimating risk. The flexibility of the nonparametric setting avoids the problem of misspecification derived from selecting a functional form. This paper investigates the estimation of time-varying asset pricing model using B-Spline, as one of nonparametric approach. The advantages of spline method is its computational speed and simplicity, as well as the clarity of controlling curvature directly. The three popular asset pricing models will be investigated namely CAPM (Capital Asset Pricing Model), Fama-French 3-factors model and Carhart 4-factors model. The results suggest that the estimated risks are time-varying and not stable overtime which confirms the risk instability anomaly. The results is more pronounced in Carhart’s 4-factors model.

  13. Yield and turnover of illicit indoor cannabis (Cannabis spp.) plantations in Belgium.

    PubMed

    Vanhove, Wouter; Surmont, Tim; Van Damme, Patrick; De Ruyver, Brice

    2012-07-10

    In prosecution, Belgian judiciary currently uses outdated yield figures (28.1g per plant, sold at € 3/g at grower level) for fining illicit indoor cannabis plantations. Using state-of-the-art cultivation techniques, our growth experiments showed that yield is better expressed in g/m(2) cultivated surface area rather than in g per plant, and that yield varies significantly between different cannabis strains. It was found that the lower-bound of the one-sided 95% confidence interval of the yield of an indoor cannabis plantation can be set at 575 g/m(2). Prices and pricing mechanisms were investigated using interviews with respondents selected through snowball sampling. Results reveal that (i) the Belgian cannabis market chain is highly complex; (ii) unit prices are predominantly determined by transaction sizes; but also (iii) a set of product- and socially-related price-fixing mechanisms have an equally important role. At grower level, respondents reported prices for 1 g of dry cannabis buds to range € 3.00-4.25. Copyright © 2012 Elsevier Ireland Ltd. All rights reserved.

  14. The effects of retail concentration on retail dairy product prices in the United States.

    PubMed

    Hovhannisyan, V; Bozic, M

    2016-06-01

    This study provides an empirical investigation of the relationship between grocery retail concentration and retail dairy product prices in the United States. The analysis was performed based on a unique data set on store-level retail prices provided by the Information Resources Inc. Further, alternative measures of retail concentration were considered, which included revenue and store selling space-based Herfindahl-Hirschman Index that were computed based on a Nielsen TDLinx data set on store characteristics. Results from a reduced-form empirical framework estimated via panel data techniques indicated that grocery retail concentration had a positive statistically significant effect on retail dairy product prices in the analyzed locations during the analyzed period of time. Specifically, a 10% increase in concentration was found to lead to a 0.46% rise in retail dairy product prices. This central result was robust to the way in which retail concentration was measured and was consistent with broader empirical evidence in the literature on retail market power. Copyright © 2016 American Dairy Science Association. Published by Elsevier Inc. All rights reserved.

  15. What factors affect the prices of low-priced U.S. solar PV systems?

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

    Nemet, Gregory F.; O'Shaughnessy, Eric; Wiser, Ryan

    The price of solar PV systems has declined rapidly, yet there are some much lower-priced systems than others. This study explores the factors that determine prices in these low-priced (LP) systems. Using a data set of 42,611 residential-scale PV systems installed in the U.S. in 2013, we use quantile regressions to estimate the importance of factors affecting the installed prices for LP systems (those at the 10th percentile) in comparison to median-priced systems. We find that the value of solar to consumers-a variable that accounts for subsidies, electric rates, and PV generation levels-is associated with lower prices for LP systemsmore » but higher prices for median priced systems. Conversely, systems installed in new home construction are associated with lower prices at the median but higher prices for LP. Other variables have larger price-reducing effects on LP than on median priced systems: systems installed in Arizona and Florida, as well as commercial and thin film systems. In contrast, the following have a smaller effect on prices for LP systems than median priced systems: tracking systems, self-installations, systems installed in Massachusetts, the system size, and installer experience. Furthermore, these results highlight the complex factors at play that lead to LP systems and shed light into how such LP systems can come about.« less

  16. What factors affect the prices of low-priced U.S. solar PV systems?

    DOE PAGES

    Nemet, Gregory F.; O'Shaughnessy, Eric; Wiser, Ryan; ...

    2017-08-09

    The price of solar PV systems has declined rapidly, yet there are some much lower-priced systems than others. This study explores the factors that determine prices in these low-priced (LP) systems. Using a data set of 42,611 residential-scale PV systems installed in the U.S. in 2013, we use quantile regressions to estimate the importance of factors affecting the installed prices for LP systems (those at the 10th percentile) in comparison to median-priced systems. We find that the value of solar to consumers-a variable that accounts for subsidies, electric rates, and PV generation levels-is associated with lower prices for LP systemsmore » but higher prices for median priced systems. Conversely, systems installed in new home construction are associated with lower prices at the median but higher prices for LP. Other variables have larger price-reducing effects on LP than on median priced systems: systems installed in Arizona and Florida, as well as commercial and thin film systems. In contrast, the following have a smaller effect on prices for LP systems than median priced systems: tracking systems, self-installations, systems installed in Massachusetts, the system size, and installer experience. Furthermore, these results highlight the complex factors at play that lead to LP systems and shed light into how such LP systems can come about.« less

  17. Drug Policy in the Czech Republic.

    PubMed

    Skoupá, Jana

    2017-09-01

    The legal background of the current pharmaceutical pricing and reimbursement (P&R) setting in the Czech Republic is based on Act 48/1997. Since 2008, the P&R process has been coordinated by the State Institute for Drug Control, which is the main stakeholder in the decision-making process; marketing authorization holders and insurance funds (IFs) also participate. To present a general overview of the current Czech health care system and its P&R principles. The study used publicly available sources concerning health care, mainly acts related to public health care and public health care insurance, public notices related to P&R setting, and statistical data. Regulation covers P&R. The official price represents the highest exfactory price, which cannot be exceeded. It is calculated as the mean of the three lowest prices in the European Union reference basket. Reimbursement is based on the lowest price per daily dose across the whole European Union. For reimbursement, products can be clustered into jumbo groups (mutually interchangeable), stated by law. In each group, reimbursement is set at the lowest price of any substance within the group. For highly innovative drugs a temporary reimbursement can be granted for a period of 3 years. During the administrative proceeding, efficacy, safety, cost-effectiveness, and budget impact are assessed. The cost-effectiveness principles are aligned with the guidelines of the National Institute for Health and Clinical Care Excellence, preferring cost-utility analyses. The willingness-to-pay threshold has been implicitly set at 3 times the gross domestic product per capita. Products exceeding this threshold are subject to further risk-sharing negotiations. Budget impact is becoming increasingly important mainly for IFs. The IFs have recently introduced their own methodology, which allows only products with a budget impact in the range of CZK16 to CZK48 million (CZK = Czech koruna; ∼€600,000 to €1.8 million) to enter the system. Products exceeding this budget impact have to negotiate risk-sharing schemes, mainly further discounts and/or budget caps. The Czech pricing and reimbursement system is rather complex, taking into account clinical evidence, cost-effectiveness and budget impact. The strict regulations are a result of financial scarcity. Copyright © 2017. Published by Elsevier Inc.

  18. An analysis of purchase price of legal and illicit cigarettes in urban retail environments in 14 low‐ and middle‐income countries

    PubMed Central

    Welding, Kevin; Cohen, Joanna E.; Cherukupalli, Rajeev; Washington, Carmen; Ferguson, Jacqueline; Clegg Smith, Katherine

    2017-01-01

    Abstract Background/Aims To estimate and compare price differences between legal and illicit cigarettes in 14 low‐ and middle‐income countries (LMIC). Design A cross‐sectional census of all packs available on the market was purchased. Setting Cigarette packs were purchased in formal retail settings in three major cities in each of 14 LMIC: Bangladesh, Brazil, China, Egypt, India, Indonesia, Mexico, Pakistan, the Philippines, Russia, Thailand, Turkey, Ukraine and Vietnam. Participants A total of 3240 packs were purchased (range = 58 packs in Egypt to 505 in Russia). Packs were categorized as ‘legal’ or ‘illicit’ based on the presence of a health warning label from the country of purchase and existence of a tax stamp; 2468 legal and 772 illicit packs were in the analysis. Measurements Descriptive statistics stratified by country, city and neighborhood socio‐economic status were used to explore the association between price and legal status of cigarettes. Findings The number of illicit cigarettes in the sample setting was small (n < 5) in five countries (Brazil, Egypt, Indonesia, Mexico, Russia) and excluded from analysis. In the remaining nine countries, the median purchase price of legal cigarettes ranged from US$0.32 in Pakistan (n = 72) to US$3.24 in Turkey (n = 242); median purchase price of illicit cigarettes ranged from US$0.80 in Ukraine (n = 14) to US$3.08 in India (n = 41). The difference in median price between legal and illicit packs as a percentage of the price of legal packs ranged from 32% in Philippines to 455% in Bangladesh. Median purchase price of illicit cigarette packs was higher than that of legal cigarette packs in six countries (Bangladesh, India, Pakistan, Philippines, Thailand, Vietnam). Median purchase price of illicit packs was lower than that of legal packs in Turkey, Ukraine and China. Conclusions The median purchase price of illicit cigarettes is higher than that of legal cigarette packs in Bangladesh, India, Pakistan, Philippines, Thailand, and Vietnam, Brazil, Egypt, Indonesia, Mexico, Russia appear to have few or no illicit cigarettes for purchase from formal, urban retailers. PMID:28556313

  19. House Price Growth When Children Are Teenagers: A Path to Higher Earnings? Working Paper No. 14-13

    ERIC Educational Resources Information Center

    Cooper, Daniel; Luengo-Prado, María José

    2014-01-01

    This paper examines whether a rise in house prices that occurs immediately prior to children entering college has an impact on their earnings as adults. Higher house prices provide homeowners with additional funds to invest in their children's human capital. The results show that a 1 percentage point increase in house prices, when children are 17…

  20. Price Analysis on Commercial Item Purchases Within the Department of Defense

    DTIC Science & Technology

    2013-10-02

    Department of Defense Introduction Background This research builds upon the work conducted in collaboration with the authors’ thesis students ...market research and price analysis methods . Most contract pricing of acquisitions was conducted using cost analysis before these reforms were added to...analysis methods are being used? b) Do market research reports refer to market information that improves the buyers’ understanding of pricing in the

  1. Offering A Price Transparency Tool Did Not Reduce Overall Spending Among California Public Employees And Retirees.

    PubMed

    Desai, Sunita; Hatfield, Laura A; Hicks, Andrew L; Sinaiko, Anna D; Chernew, Michael E; Cowling, David; Gautam, Santosh; Wu, Sze-Jung; Mehrotra, Ateev

    2017-08-01

    Insurers, employers, and states increasingly encourage price transparency so that patients can compare health care prices across providers. However, the evidence on whether price transparency tools encourage patients to receive lower-cost care and reduce overall spending remains limited and mixed. We examined the experience of a large insured population that was offered a price transparency tool, focusing on a set of "shoppable" services (lab tests, office visits, and advanced imaging services). Overall, offering the tool was not associated with lower shoppable services spending. Only 12 percent of employees who were offered the tool used it in the first fifteen months after it was introduced, and use of the tool was not associated with lower prices for lab tests or office visits. The average price paid for imaging services preceded by a price search was 14 percent lower than that paid for imaging services not preceded by a price search. However, only 1 percent of those who received advanced imaging conducted a price search. Simply offering a price transparency tool is not sufficient to meaningfully decrease health care prices or spending. Project HOPE—The People-to-People Health Foundation, Inc.

  2. Ecological Analysis of Parking Prices and Active Commuting in US Cities, 2009

    PubMed Central

    Wendel, Arthur M.; Auchincloss, Amy H.

    2016-01-01

    We conducted an ecological study to determine whether parking prices are associated with active commuting across US cities. We obtained parking prices for 107 US cities from the Drexel University Central Business District Public Parking Survey, obtained city prevalence of walking and bicycling to work from the American Community Survey, and used weighted least squares linear regression to explore associations between parking prices and active commuting. After adjusting for several covariates, walking to work was 3.1% higher for every additional dollar charged for off-street daily parking, but only among more densely populated cities, and no such association was detected for bicycling to work. These preliminary results hint at the potential for parking policies to influence commuting mode choice, a link that city planners and public health officials could consider when evaluating parking policies and active transportation behaviors. PMID:27609301

  3. What Factors Affect the Prices of Low-Priced U.S. Solar PV Systems?

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

    Nemet, Gregory F.; O'Shaughnessy, Eric; Wiser, Ryan

    The price of solar PV systems has declined rapidly, yet there are some much lower-priced systems than others. This study explores the factors leading some systems to be so much lower priced than others. Using a data set of 42,611 residential-scale PV systems installed in the U.S. in 2013, we use quantile regressions to estimate the importance of factors affecting the installed prices for low-priced (LP) systems (those at the 10th percentile) in comparison to median-priced systems. We find that the value of solar to consumers–a variable that accounts for subsidies, electric rates, and PV generation levels–is associated with lowermore » prices for LP systems but higher prices for median priced systems. Conversely, systems installed in new home construction are associated with lower prices at the median but higher prices for LP. Other variables have larger cost-reducing effects on LP than on median priced systems: systems installed in Arizona and Florida, as well as commercial and thin film systems. In contrast, the following have a smaller effect on prices for LP systems than median priced systems: tracking systems, self-installations, systems installed in Massachusetts, the system size, and installer experience. These results highlight the complex factors at play that lead to LP systems and shed light into how such LP systems can come about.« less

  4. 30 CFR 203.78 - Do I keep relief approved by MMS under §§ 203.60-203.77 for my lease, unit or project if prices...

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... Relief for Pre-Act Deep Water Leases and for Development and Expansion Projects § 203.78 Do I keep relief... the same development project or expansion project approved for royalty relief may have different price... your base gas price threshold set under paragraph (a) is $3.50 per million British thermal units (Btu...

  5. Hardwood timber sales on state forests in Indiana: characteristics influencing costs and prices

    Treesearch

    J. Michael Vasievich; W. L., Jr. Mills; Heidi R. Cherry

    1997-01-01

    Timber sales conducted on State-owned forests in INdiana from 1982 to 1994 were analyzed to determine changes in costs and prices and the effect of sale conditions on costs and prices. The data set included 445 sales that ranged in size from less than 1 acre to more than 500 acres. Sales were predominantly partial cuts in mature hardwood timber. Marked timber volume...

  6. On dynamic prices: a clash of beliefs?

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

    Hanser, Philip Q

    2010-07-15

    While insightful essays have been written regarding the moral appropriateness of dynamic pricing, they have an implicit underlying framework for determining justness and fairness that may not necessarily accord completely with the view promulgated in regard to utility rate setting generally. (author)

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

    PubMed

    Son, Seokho; Sim, Kwang Mong

    2012-06-01

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

  8. Does the Price Multiplier Effect also Hold for Stocks?

    NASA Astrophysics Data System (ADS)

    Maslov, Sergei; Roehner, Bertrand M.

    The price multiplier effect provides precious insight into the behavior of investors during episodes of speculative trading. It tells us that the higher the price of an asset (within a set of similar assets), the more its price is likely to increase during the upgoing phase of a speculative price peak. In short, instead of being risk averse, as is often assumed, investors rather seem to be "risk prone". While this effect is known to hold for several sorts of assets, it has not yet been possible to test it for stocks because the price of one share has no intrinsic significance, which means that one cannot say that stock A is more expensive than stock B on the basis of its price. In this paper we show that the price-dividend ratio gives a good basis for assessing the price of stocks in an intrinsic way. When this alternative measure is used instead, it turns out that the price multiplier effect also holds for stocks, at least if one concentrates on samples of companies which are sufficiently homogeneous.

  9. What price quitting? The price of cigarettes at which smokers say they would seriously consider trying to quit

    PubMed Central

    2013-01-01

    Background Deciding on an appropriate level for taxes on tobacco products is a critical issue in tobacco control. The aim of the present study was to describe the critical price points for packs for smokers of each pack size, to calculate what this would equate to in terms of price per stick, and to ascertain whether price points varied by age, socio-economic status and heaviness of smoking. Methods In November 2011, 586 Victorian smokers of factory-made cigarettes were asked during a telephone survey about their usual brand, including the size and cost of their usual pack. They were also asked about use of illicit tobacco. Smokers estimated what price their preferred pack would need to reach before they would seriously consider quitting. Results Three-quarters of regular smokers of manufactured cigarettes could envisage their usual brand reaching a price at which they would seriously consider quitting. Analyses revealed that answers clustered around whole numbers, (AUD$15, $20, $25 and $30), with a median nominated price point of AUD$20 per pack. The median price point at which regular smokers would consider quitting was calculated to be 80 cents per stick, compared to the current median reported stick price of 60 cents. Of the smokers who nominated a price point, 60.1% indicated they would seriously consider quitting if the cost of their usual brand equated to 80 cents per stick or less; 87.5% would seriously consider quitting if sticks reached one dollar each. Conclusions These results do suggest a potentially useful approach to setting taxes in Australia. If taxes can be set high enough to ensure that the cost of the smokers’ preferred packs exceeds critical price points, then it seems likely that more people would seriously attempt to quit than if the price increased to a level even slightly below the price points. Our study suggests that a tax increase large enough to ensure that a typical pack of 25 cigarettes in Australia cost at least AUD$20 would prompt more than 60% of smokers able to nominate a price point to seriously think about quitting, with particularly strong effects among low-SES smokers. PMID:23849300

  10. Performance of the reverse Helmbold universal portfolio

    NASA Astrophysics Data System (ADS)

    Tan, Choon Peng; Kuang, Kee Seng; Lee, Yap Jia

    2017-04-01

    The universal portfolio is an important investment strategy in a stock market where no stochastic model is assumed for the stock prices. The zero-gradient set of the objective function estimating the next-day portfolio which contains the reverse Kullback-Leibler order-alpha divergence is considered. From the zero-gradient set, the explicit, reverse Helmbold universal portfolio is obtained. The performance of the explicit, reverse Helmbold universal portfolio is studied by running them on some stock-price data sets from the local stock exchange. It is possible to increase the wealth of the investor by using these portfolios in investment.

  11. The Use of Economic Evidence to Inform Drug Pricing Decisions in Jordan.

    PubMed

    Hammad, Eman A

    2016-01-01

    Drug pricing is an example of a priority setting in a developing country with official requirements for the use of cost-effectiveness (CE) evidence. To describe the role of economic evidence in drug pricing decisions in Jordan. A prospective review of all applications submitted between November 2013 and May 2015 to the Jordan Food and Drug Association's drug pricing committee was carried out. All applications that involved requests for CE evidence were reviewed. Details on the type of study, the extent, and whether the evidence submitted was part of the formal deliberations were extracted and summarized. The committee reviewed a total of 1608 drug pricing applications over the period of the study. CE evidence was requested in only 11 applications. The submitted evidence was of limited use to the committee due to concerns about quality, relevance of studies, and lack of pharmacoeconomic expertise. There were also no clear rules describing how CE would inform pricing decisions. Limited local data and health economic experience were the main barriers to the use of economic evidence in drug pricing decisions in Jordan. In addition, there are no official rules describing the elements and process by which the CE evidence would inform drug pricing decisions. This study summarized accumulated observations for the current use of economic evaluations and evidence-based decision making in Jordan. Recommendations have been proposed to applicants and key decision makers to enhance the role of economic evidence in influencing health policies and evidence-based decision making across priority settings. Copyright © 2016 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

  12. Value analysis for advanced technology products

    NASA Astrophysics Data System (ADS)

    Soulliere, Mark

    2011-03-01

    Technology by itself can be wondrous, but buyers of technology factor in the price they have to pay along with performance in their decisions. As a result, the ``best'' technology may not always win in the marketplace when ``good enough'' can be had at a lower price. Technology vendors often set pricing by ``cost plus margin,'' or by competitors' offerings. What if the product is new (or has yet to be invented)? Value pricing is a methodology to price products based on the value generated (e.g. money saved) by using one product vs. the next best technical alternative. Value analysis can often clarify what product attributes generate the most value. It can also assist in identifying market forces outside of the control of the technology vendor that also influence pricing. These principles are illustrated with examples.

  13. A stochastic electricity market clearing formulation with consistent pricing properties

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

    Zavala, Victor M.; Kim, Kibaek; Anitescu, Mihai

    We argue that deterministic market clearing formulations introduce arbitrary distortions between day-ahead and expected real-time prices that bias economic incentives. We extend and analyze a previously proposed stochastic clearing formulation in which the social surplus function induces penalties between day-ahead and real-time quantities. We prove that the formulation yields price bounded price distortions, and we show that adding a similar penalty term to transmission flows and phase angles ensures boundedness throughout the network. We prove that when the price distortions are zero, day-ahead quantities equal a quantile of their real-time counterparts. The undesired effects of price distortions suggest that stochasticmore » settings provide significant benefits over deterministic ones that go beyond social surplus improvements. Finally, we propose additional metrics to evaluate these benefits.« less

  14. A stochastic electricity market clearing formulation with consistent pricing properties

    DOE PAGES

    Zavala, Victor M.; Kim, Kibaek; Anitescu, Mihai; ...

    2017-03-16

    We argue that deterministic market clearing formulations introduce arbitrary distortions between day-ahead and expected real-time prices that bias economic incentives. We extend and analyze a previously proposed stochastic clearing formulation in which the social surplus function induces penalties between day-ahead and real-time quantities. We prove that the formulation yields price bounded price distortions, and we show that adding a similar penalty term to transmission flows and phase angles ensures boundedness throughout the network. We prove that when the price distortions are zero, day-ahead quantities equal a quantile of their real-time counterparts. The undesired effects of price distortions suggest that stochasticmore » settings provide significant benefits over deterministic ones that go beyond social surplus improvements. Finally, we propose additional metrics to evaluate these benefits.« less

  15. Pricing policy for declining demand using item preservation technology.

    PubMed

    Khedlekar, Uttam Kumar; Shukla, Diwakar; Namdeo, Anubhav

    2016-01-01

    We have designed an inventory model for seasonal products in which deterioration can be controlled by item preservation technology investment. Demand for the product is considered price sensitive and decreases linearly. This study has shown that the profit is a concave function of optimal selling price, replenishment time and preservation cost parameter. We simultaneously determined the optimal selling price of the product, the replenishment cycle and the cost of item preservation technology. Additionally, this study has shown that there exists an optimal selling price and optimal preservation investment to maximize the profit for every business set-up. Finally, the model is illustrated by numerical examples and sensitive analysis of the optimal solution with respect to major parameters.

  16. The price elasticity of demand for heroin: matched longitudinal and experimental evidence#

    PubMed Central

    Olmstead, Todd A.; Alessi, Sheila M.; Kline, Brendan; Pacula, Rosalie Liccardo; Petry, Nancy M.

    2015-01-01

    This paper reports estimates of the price elasticity of demand for heroin based on a newly constructed dataset. The dataset has two matched components concerning the same sample of regular heroin users: longitudinal information about real-world heroin demand (actual price and actual quantity at daily intervals for each heroin user in the sample) and experimental information about laboratory heroin demand (elicited by presenting the same heroin users with scenarios in a laboratory setting). Two empirical strategies are used to estimate the price elasticity of demand for heroin. The first strategy exploits the idiosyncratic variation in the price experienced by a heroin user over time that occurs in markets for illegal drugs. The second strategy exploits the experimentally-induced variation in price experienced by a heroin user across experimental scenarios. Both empirical strategies result in the estimate that the conditional price elasticity of demand for heroin is approximately −0.80. PMID:25702687

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

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

    Hao, Jun; Gu, Yi; Zhang, Yingchen

    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 themore » pricing methodology.« less

  18. Price Analysis on Commercial Item Purchases Within the Department of the Navy

    DTIC Science & Technology

    2015-04-30

    has advised 20 students , seven of whom worked on acquisition and contracting-related projects. Dr. Gera’s research is in networks, publishing 32...commercial item procurements. The importance of market research and price analysis methods has increased because of this change (Gera & Maddox, 2013...require that pricing be discussed in the market research reports (p. 54). The FAR identifies market research as a method for determining price

  19. 33 CFR 211.146 - Price.

    Code of Federal Regulations, 2011 CFR

    2011-07-01

    ... Navigation and Navigable Waters CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, DEPARTMENT OF DEFENSE REAL ESTATE ACTIVITIES OF THE CORPS OF ENGINEERS IN CONNECTION WITH CIVIL WORKS PROJECTS Conveyances for Public Port Or Industrial Facilities § 211.146 Price. No conveyance shall be made for a price less than the fair market...

  20. 33 CFR 211.146 - Price.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... Navigation and Navigable Waters CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, DEPARTMENT OF DEFENSE REAL ESTATE ACTIVITIES OF THE CORPS OF ENGINEERS IN CONNECTION WITH CIVIL WORKS PROJECTS Conveyances for Public Port Or Industrial Facilities § 211.146 Price. No conveyance shall be made for a price less than the fair market...

  1. Pay What You Want! A Pilot Study on Neural Correlates of Voluntary Payments for Music

    PubMed Central

    Waskow, Simon; Markett, Sebastian; Montag, Christian; Weber, Bernd; Trautner, Peter; Kramarz, Volkmar; Reuter, Martin

    2016-01-01

    Pay-what-you-want (PWYW) is an alternative pricing mechanism for consumer goods. It describes an exchange situation in which the price for a given good is not set by the seller but freely chosen by the buyer. In recent years, many enterprises have made use of PWYW auctions. The somewhat contra-intuitive success of PWYW has sparked a great deal of behavioral work on economical decision making in PWYW contexts in the past. Empirical studies on the neural basis of PWYW decisions, however, are scarce. In the present paper, we present an experimental protocol to study PWYW decision making while simultaneously acquiring functional magnetic resonance imaging data. Participants have the possibility to buy music either under a traditional “fixed-price” (FP) condition or in a condition that allows them to freely decide on the price. The behavioral data from our experiment replicate previous results on the general feasibility of the PWYW mechanism. On the neural level, we observe distinct differences between the two conditions: In the FP-condition, neural activity in frontal areas during decision-making correlates positively with the participants’ willingness to pay. No such relationship was observed under PWYW conditions in any neural structure. Directly comparing neural activity during PWYW and the FP-condition we observed stronger activity of the lingual gyrus during PWYW decisions. Results demonstrate the usability of our experimental paradigm for future investigations into PWYW decision-making and provides first insights into neural mechanisms during self-determined pricing decisions. PMID:27458416

  2. Comparative assessment of medicine procurement prices in the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).

    PubMed

    Ewen, Margaret; Al Sakit, Maisa; Saadeh, Rawan; Laing, Richard; Vialle-Valentin, Catherine; Seita, Akihiro; Bunders, Joske

    2014-01-01

    The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), the main primary healthcare provider for 4.9 million Palestinian refugees, spent USD18.3 million on essential medicines dispensed free-of-charge through clinics in five areas of operation ('fields'): Gaza, Jordan, Lebanon, Syria, and the West Bank (2010). Faced with budget contraints and an increasing demand for medicines to treat chronic conditions, the objective of our study was to assess UNRWA's medicine procurement prices to see if savings could be possible. In July 2011, data was collected from UNRWA headquarters in Jordan. Price analyses focused on the top 80 medicines by value, accounting for 93% of pharmaceutical expenditure from the General Fund, with comparisons to international, regional and national references. Prices were also compared for the few medicines procured both through UNRWA's central tender (centrally) and by the fields directly (locally). Central procurement prices did not differ markedly from reference prices: median ratios of UNRWA prices to Management Sciences for Health's International Drug Price Indicator Guide, Jordan's Joint Procurement Department, Gulf Cooperation Council, and IDA Foundation bulk packs were 0.99, 1.00, 0.98 and 1.12 respectively. Applying the lowest comparator price to five comparatively higher priced medicines would yield savings of USD1.4 million. Local procurements were generally less cost-effective than central tender procurement, with notable differences across fields and medicines. Overall, UNRWA's procurement prices were competitive despite the relatively small quantities procured. Regular monitoring of procurement prices and quantities is needed in order to make informed decisions. Our evaluation also underscores the heavy burden of antidiabetic medicines and antimicrobials on UNRWA procurement expenditure.

  3. An empirical analysis of the multimarket contact theory in pharmaceutical markets.

    PubMed

    Coronado, Javier; Jiménez-Martín, Sergi; Marín, Pedro L

    2014-07-01

    Multimarket contact theory predicts that firms will optimally reduce prices in markets where collusive prices are sustainable and allocate the slack of the corresponding incentive compatibility to increase prices in markets where collusion is not sustainable. Binding price caps in collusive markets will have different effects over the multimarket contact mechanism depending on the severity of the cap. Setting a price cap close to the unregulated case will increase the size of the redistribution of market power whereas stronger regulation will even reduce prices in unregulated markets. Therefore, price regulations aiming at capping prices in a specific market will also affect markets that are not subject to specific mandatory price regulations. We find evidence of the theory predictions using information for nine OECD countries for pharmaceutical markets. Unregulated US markets are shown to respond to the redistribution effect; Canadian markets, known to be subject to soft price regulations, with respect to the former, are shown to be consistent with a stronger redistribution effect. EU markets and Japan are either consistent with the effect of a medium regulation or strong regulation. In this last case multimarket contact cannot explain prices, and these are expected to be lower compared to the unregulated benchmark.

  4. 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

  5. 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.

  6. Public attitudes towards pricing policies to change health-related behaviours: a UK focus group study

    PubMed Central

    Marteau, Theresa M.; Kinmonth, Ann Louise; Cohn, Simon

    2015-01-01

    Background: Evidence supports the use of pricing interventions in achieving healthier behaviour at population level. The public acceptability of this strategy continues to be debated throughout Europe, Australasia and USA. We examined public attitudes towards, and beliefs about the acceptability of pricing policies to change health-related behaviours in the UK. The study explores what underlies ideas of acceptability, and in particular those values and beliefs that potentially compete with the evidence presented by policy-makers. Methods: Twelve focus group discussions were held in the London area using a common protocol with visual and textual stimuli. Over 300 000 words of verbatim transcript were inductively coded and analyzed, and themes extracted using a constant comparative method. Results: Attitudes towards pricing policies to change three behaviours (smoking, and excessive consumption of alcohol and food) to improve health outcomes, were unfavourable and acceptability was low. Three sets of beliefs appeared to underpin these attitudes: (i) pricing makes no difference to behaviour; (ii) government raises prices to generate income, not to achieve healthier behaviour and (iii) government is not trustworthy. These beliefs were evident in discussions of all types of health-related behaviour. Conclusions: The low acceptability of pricing interventions to achieve healthier behaviours in populations was linked among these responders to a set of beliefs indicating low trust in government. Acceptability might be increased if evidence regarding effectiveness came from trusted sources seen as independent of government and was supported by public involvement and hypothecated taxation. PMID:25983329

  7. Prediction Markets: A Review with an Experimentally Based Recommendation for Navy Force-shaping Application

    DTIC Science & Technology

    2009-12-01

    participation problem in which rational traders have no further incentive or desire to trade once they already have hedged their bets (Hanson, 2003...traders who already have hedged their bets in other markets (Abramowicz, 2003, p. 24). A thin market generally leads to comparatively large price...prices. Contract prices should be set at a reasonable level to ensure there is not an overwhelming arbitrage opportunity when the market opens

  8. 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.

  9. Applying mobile and pervasive computer technology to enhance coordination of work in a surgical ward.

    PubMed

    Hansen, Thomas Riisgaard; Bardram, Jakob E

    2007-01-01

    Collaboration, coordination, and communication are crucial in maintaining an efficient and smooth flow of work in an operating ward. This coordination, however, often comes at a high price in terms of unsuccessfully trying to get hold of people, disturbing telephone calls, looking for people, and unnecessary stress. To accommodate this situation and to increase the quality of work in operating wards, we have designed a set of pervasive computer systems which supports what we call context-mediated communication and awareness. These systems use large interactive displays, video streaming from key locations, tracking systems, and mobile devices to support social awareness and different types of communication modalities relevant to the current context. In this paper we report qualitative data from a one-year deployment of the system in a local hospital. Overall, this study shows that 75% of the participants strongly agreed that these systems had made their work easier.

  10. Effects of the uncertainty of energy price and water availability forecasts on the operation of Alpine hydropower reservoir systems

    NASA Astrophysics Data System (ADS)

    Anghileri, D.; Castelletti, A.; Burlando, P.

    2016-12-01

    European energy markets have experienced dramatic changes in the last years because of the massive introduction of Variable Renewable Sources (VRSs), such as wind and solar power sources, in the generation portfolios in many countries. VRSs i) are intermittent, i.e., their production is highly variable and only partially predictable, ii) are characterized by no correlation between production and demand, iii) have negligible costs of production, and iv) have been largely subsidized. These features result in lower energy prices, but, at the same time, in increased price volatility, and in network stability issues, which pose a threat to traditional power sources because of smaller incomes and higher maintenance costs associated to a more flexible operation of power systems. Storage hydropower systems play an important role in compensating production peaks, both in term of excess and shortage of energy. Traditionally, most of the research effort in hydropower reservoir operation has focused on modeling and forecasting reservoir inflow as well as designing reservoir operation accordingly. Nowadays, price variability may be the largest source of uncertainty in the context of hydropower systems, especially when considering medium-to-large reservoirs, whose storage can easily buffer small inflow fluctuations. In this work, we compare the effects of uncertain inflow and energy price forecasts on hydropower production and profitability. By adding noise to historic inflow and price trajectories, we build a set of synthetic forecasts corresponding to different levels of predictability and assess their impact on reservoir operating policies and performances. The study is conducted on different hydropower systems, including storage systems and pumped-storage systems, with different characteristics, e.g., different inflow-capacity ratios. The analysis focuses on Alpine hydropower systems where the hydrological regime ranges from purely ice and snow-melt dominated to mixed snow-melt and rain-dominated regimes.

  11. 41 CFR 109-40.5100 - Scope of subpart.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ..., AND MOTOR VEHICLES 40-TRANSPORTATION AND TRAFFIC MANAGEMENT 40.51-Price-Anderson Coverage Certifications for Nuclear Shipments § 109-40.5100 Scope of subpart. This subpart sets forth the policy for issuance of certifications regarding Price-Anderson coverage of particular shipments of nuclear materials. ...

  12. Constant Price of Anarchy in Network Creation Games via Public Service Advertising

    NASA Astrophysics Data System (ADS)

    Demaine, Erik D.; Zadimoghaddam, Morteza

    Network creation games have been studied in many different settings recently. These games are motivated by social networks in which selfish agents want to construct a connection graph among themselves. Each node wants to minimize its average or maximum distance to the others, without paying much to construct the network. Many generalizations have been considered, including non-uniform interests between nodes, general graphs of allowable edges, bounded budget agents, etc. In all of these settings, there is no known constant bound on the price of anarchy. In fact, in many cases, the price of anarchy can be very large, namely, a constant power of the number of agents. This means that we have no control on the behavior of network when agents act selfishly. On the other hand, the price of stability in all these models is constant, which means that there is chance that agents act selfishly and we end up with a reasonable social cost.

  13. Evaluating big deal journal bundles

    PubMed Central

    Bergstrom, Theodore C.; Courant, Paul N.; McAfee, R. Preston; Williams, Michael A.

    2014-01-01

    Large commercial publishers sell bundled online subscriptions to their entire list of academic journals at prices significantly lower than the sum of their á la carte prices. Bundle prices differ drastically between institutions, but they are not publicly posted. The data that we have collected enable us to compare the bundle prices charged by commercial publishers with those of nonprofit societies and to examine the types of price discrimination practiced by commercial and nonprofit journal publishers. This information is of interest to economists who study monopolist pricing, librarians interested in making efficient use of library budgets, and scholars who are interested in the availability of the work that they publish. PMID:24979785

  14. Evaluating big deal journal bundles.

    PubMed

    Bergstrom, Theodore C; Courant, Paul N; McAfee, R Preston; Williams, Michael A

    2014-07-01

    Large commercial publishers sell bundled online subscriptions to their entire list of academic journals at prices significantly lower than the sum of their á la carte prices. Bundle prices differ drastically between institutions, but they are not publicly posted. The data that we have collected enable us to compare the bundle prices charged by commercial publishers with those of nonprofit societies and to examine the types of price discrimination practiced by commercial and nonprofit journal publishers. This information is of interest to economists who study monopolist pricing, librarians interested in making efficient use of library budgets, and scholars who are interested in the availability of the work that they publish.

  15. 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 access pricing with congestion and in which investments in infrastructure are lumpy. To fix ideas, the model is formulated in the context of airport infrastructure investments, which captures both the element of congestion and the lumpiness involved in infrastructure investments. The optimal investment program suggests how many units of capacity should be installed and at which times. Because time is continuous in the model, the discounted cost -- despite the lumpiness of capacity additions -- can be made to vary continuously by varying the time a capacity addition is made. The main results that emerge from the analysis can be described as follows: First, the global demand for air travel rises with time and experiences an upward jump whenever a capacity addition is made. Second, the access price is constant and stays at the basic level when the system is not congested. When the system is congested, a congestion surcharge is imposed on top of the basic level, and the congestion surcharge rises with the level of congestion until the next capacity addition is made at which time the access price takes a downward jump. Third, the individual demand for air travel is constant before congestion sets in and after the last capacity addition takes place. During a time interval in which congestion rises, the individual demand for travel is below the level that prevails when there is no congestion and declines as congestion worsens. The third essay contains a model of access pricing for natural gas transmission pipelines, both when pipeline operators are regulated and when they behave strategically. The high sunk costs involved in building a pipeline network constitute a serious barrier of entry, and competitive behaviour in the transmission pipeline sector cannot be expected. Most of the economic analyses of access pricing for natural gas transmission pipelines are carried out from the regulatory perspective, and the access price paid by shippers are cost-based. The model formalized is intended to capture some essential characteristics of networks in which components interact with one another when combined into an integrated system. The model shows how the topology of the network determines the access prices in different components of the network. The general results that emerge from the analysis can be summarized as follows. First, the monopoly power of a pipeline operator is reduced by the entry of a new pipeline supply connected in parallel to the same demand node. When the pipelines are connected in series, the one upstream enjoys a first-move advantage over the one downstream, and the toll set by the upstream pipeline operator after entry by the downstream pipeline operator will rise above the original monopoly level. The equilibrium prices of natural gas at the various nodes of the network are also discussed. (Abstract shortened by UMI.)

  16. Pharmaceutical policies in European countries.

    PubMed

    Barros, Pedro Pita

    2010-01-01

    Pharmaceutical expenditures have an important role in Europe. The attempts to control expenditure have used a wide range of policy measures. We reviewed the main measures adopted by the European Union countries, especially in countries where governments are the largest third-party payers. To complement a literature review on the topic, data was gathered from national reviews of health systems and direct inquiries to several government bodies. Almost all countries regulate prices of pharmaceutical products. Popular policy measures include international referencing to set prices (using as benchmark countries that have set lower prices), internal reference pricing systems to promote price competition in domestic markets, and positive lists for reimbursement to promote consumption of generics (including in some cases substitution by pharmacists of drugs prescribed by physicians). Despite the wide range of policy measures, it is not possible to identify a "silver bullet" to control pharmaceutical expenditures. We also identified two main policy challenges: policy coordination among countries within the European Union to maintain incentives for R&D at the global level, and the development of new relationships with the pharmaceutical industry; namely, the so-called risk-sharing agreements between the pharmaceutical industry and governments/regulators (or large third-party payers).

  17. How market structure drives commodity prices

    NASA Astrophysics Data System (ADS)

    Li, Bin; Wong, K. Y. Michael; Chan, Amos H. M.; So, Tsz Yan; Heimonen, Hermanni; Wei, Junyi; Saad, David

    2017-11-01

    We introduce an agent-based model, in which agents set their prices to maximize profit. At steady state the market self-organizes into three groups: excess producers, consumers and balanced agents, with prices determined by their own resource level and a couple of macroscopic parameters that emerge naturally from the analysis, akin to mean-field parameters in statistical mechanics. When resources are scarce prices rise sharply below a turning point that marks the disappearance of excess producers. To compare the model with real empirical data, we study the relationship between commodity prices and stock-to-use ratios in a range of commodities such as agricultural products and metals. By introducing an elasticity parameter to mitigate noise and long-term changes in commodities data, we confirm the trend of rising prices, provide evidence for turning points, and indicate yield points for less essential commodities.

  18. Price elasticity matrix of demand in power system considering demand response programs

    NASA Astrophysics Data System (ADS)

    Qu, Xinyao; Hui, Hongxun; Yang, Shengchun; Li, Yaping; Ding, Yi

    2018-02-01

    The increasing renewable energy power generations have brought more intermittency and volatility to the electric power system. Demand-side resources can improve the consumption of renewable energy by demand response (DR), which becomes one of the important means to improve the reliability of power system. In price-based DR, the sensitivity analysis of customer’s power demand to the changing electricity prices is pivotal for setting reasonable prices and forecasting loads of power system. This paper studies the price elasticity matrix of demand (PEMD). An improved PEMD model is proposed based on elasticity effect weight, which can unify the rigid loads and flexible loads. Moreover, the structure of PEMD, which is decided by price policies and load types, and the calculation method of PEMD are also proposed. Several cases are studied to prove the effectiveness of this method.

  19. Utilization of BIM for automation of quantity takeoffs and cost estimation in transport infrastructure construction projects in the Czech Republic

    NASA Astrophysics Data System (ADS)

    Vitásek, Stanislav; Matějka, Petr

    2017-09-01

    The article deals with problematic parts of automated processing of quantity takeoff (QTO) from data generated in BIM model. It focuses on models of road constructions, and uses volumes and dimensions of excavation work to create an estimate of construction costs. The article uses a case study and explorative methods to discuss possibilities and problems of data transfer from a model to a price system of construction production when such transfer is used for price estimates of construction works. Current QTOs and price tenders are made with 2D documents. This process is becoming obsolete because more modern tools can be used. The BIM phenomenon enables partial automation in processing volumes and dimensions of construction units and matching the data to units in a given price scheme. Therefore price of construction can be estimated and structured without lengthy and often imprecise manual calculations. The use of BIM for QTO is highly dependent on local market budgeting systems, therefore proper push/pull strategy is required. It also requires proper requirements specification, compatible pricing database and software.

  20. Impact of cross-reference pricing on pharmaceutical prices: manufacturers' pricing strategies and price regulation.

    PubMed

    Stargardt, Tom; Schreyögg, Jonas

    2006-01-01

    Several EU countries are determining reimbursement prices of pharmaceuticals by cross-referencing prices of foreign countries. Our objective is to quantify the theoretical cross-border spill-over effects of cross-reference pricing schemes on pharmaceutical prices in the former EU-15 countries. An analytical model was developed estimating the impact of pharmaceutical price changes in Germany on pharmaceutical prices in other countries in the former EU-15 using cross-reference pricing. We differentiated between the direct impact (from referencing to Germany directly) and the indirect impact (from referencing to other countries that conduct their own cross-reference pricing schemes). The relationship between the direct and indirect impact of a price change depends mainly on the method applied to set reimbursement prices. When applying cross-reference pricing, the reimbursement price is either determined by the lowest of foreign prices (e.g. Portugal), the average of foreign prices (e.g. Ireland) or a weighted average of foreign prices (e.g. Italy). If the respective drug is marketed in all referenced countries and prices are regularly updated, a price reduction of 1.00 euro in Germany will reduce maximum reimbursement prices in the former EU-15 countries from 0.15 euros in Austria to 0.36 euros in Italy. On one side, the cross-border spill-over effects of price reductions are undoubtedly welcomed by decision makers and may be favourable to the healthcare system in general. On the other side, these cross-border spill-over effects also provide strong incentives for strategic product launches, launch delays and lobbying activities, and can affect the effectiveness of regulation. To avoid the negative effects of cross-reference pricing, a weighted index of prices from as many countries as possible should be used to determine reimbursement prices in order to reduce the direct and indirect impact of individual countries.

  1. Design, fabrication, test, qualification and price analysis for third generation design solar cell modules

    NASA Technical Reports Server (NTRS)

    1980-01-01

    An updated program plan is presented showing the task descriptions depicting the work, progress, achievements, and the cause of any deviations from the original plan (SC-1), and how this impacted on the original schedule of the program. In addition there is an update documenting all design alterations made during the pre-production phase and a complete up to date set of engineering and manufacturing documentation (CM-1). The purpose of the work in the original plan was to explore, design, develop, test, and deliver 1000 watts of prototype flat plate, photovoltaic modules appropriate for use in applications in the 20 to 500 kilowatt range and which show potential for meeting the 1986 cost goals.

  2. On international cost-sharing of pharmaceutical R&D.

    PubMed

    Barros, Pedro Pita; Martinez-Giralt, Xavier

    2008-12-01

    Ramsey pricing has been proposed in the pharmaceutical industry as a principle to price discriminate among markets while allowing to recover the (fixed) R&D cost. However, such analyses neglect the presence of insurance or the fund raising costs for most of drug reimbursement. By incorporating these new elements, we aim at providing some building blocks towards an economic theory incorporating Ramsey pricing and insurance coverage. We show how coinsurance affects the optimal prices to pay for the R&D investment. We also show that under certain conditions, there is no strategic incentive by governments to set coinsurance rates in order to shift the financial burden of R&D. This will have important implications to the application of Ramsey pricing principles to pharmaceutical products across countries.

  3. Mixed integer nonlinear programming model of wireless pricing scheme with QoS attribute of bandwidth and end-to-end delay

    NASA Astrophysics Data System (ADS)

    Irmeilyana, Puspita, Fitri Maya; Indrawati

    2016-02-01

    The pricing for wireless networks is developed by considering linearity factors, elasticity price and price factors. Mixed Integer Nonlinear Programming of wireless pricing model is proposed as the nonlinear programming problem that can be solved optimally using LINGO 13.0. The solutions are expected to give some information about the connections between the acceptance factor and the price. Previous model worked on the model that focuses on bandwidth as the QoS attribute. The models attempt to maximize the total price for a connection based on QoS parameter. The QoS attributes used will be the bandwidth and the end to end delay that affect the traffic. The maximum goal to maximum price is achieved when the provider determine the requirement for the increment or decrement of price change due to QoS change and amount of QoS value.

  4. Pricing decisions from experience: the roles of information-acquisition and response modes.

    PubMed

    Golan, Hagai; Ert, Eyal

    2015-03-01

    While pricing decisions that are based on experience are quite common, e.g., setting a selling price for a used car, this type of decision has been surprisingly overlooked in psychology and decision research. Previous studies have focused on either choice decisions from experience, or pricing decisions from description. Those studies revealed that pricing involves cognitive mechanisms other than choice, while experience-based decisions involve mechanisms that differ from description-based ones. Thus, the mutual effect of pricing and experience on decision-making remains unclear. To test this effect, we experimentally compared real-money pricing decisions from experience with those from description, and with choices from experience. The results show that the mode of acquiring information affects pricing: the tendency to underprice high-probability prospects and overprice low-probability ones is diminished when pricing is based on experience rather than description. The findings further reveal attenuation of the tendency to underweight rare events, which underlies choices from experience, in pricing decisions from experience. The difference occurs because the response mode affects the search effort and decision strategy in decisions from experience. Copyright © 2014 Elsevier B.V. All rights reserved.

  5. A new perspective on Quantum Finance using the Black-Scholes pricing model

    NASA Astrophysics Data System (ADS)

    Dieng, Lamine

    2007-03-01

    Options are known to be divided into two types, the first type is called a call option and the second type is called a put option and these options are offered to stock holders in order to hedge their positions against risky fluctuations of the stock price. It is important to mention that due to fluctuations of the stock price, options can be found sometimes deep in the money, at the money and out of the money. A deep in the money option is described when the option's holder has a positive expected payoff, at the money option is when the option's holder has a zero expected payoff and an out of the money option is when the payoff is negative. In this work, we will assume the stock price to be described by the well known Black-Scholes model or sometimes called the multiplicative model. Using Ito calculus, Martingale and supermartingale theories, we investigated the Black-Scholes pricing equation at the money (X(stock price)= K (strike price)) when the expected payoff of the options holder is zero. We also hedged the Black-Scholes pricing equation in the limit when delta is zero to obtain the non-relativistic time independent Schroedinger equation in quantum mechanics. We compared the two equations and found the diffusion constant to be a function of the stock price in contrast to the Bachelier model we have worked on earlier. We solved the Schroedinger equation and found a dependence between interest rate, volatility and strike price at the money.

  6. An Extended Duopoly Game.

    ERIC Educational Resources Information Center

    Eckalbar, John C.

    2002-01-01

    Illustrates how principles and intermediate microeconomic students can gain an understanding for strategic price setting by playing a relatively large oligopoly game. Explains that the game extends to a continuous price space and outlines appropriate applications. Offers the Mathematica code to instructors so that the assumptions of the game can…

  7. 48 CFR 915.404-4-70-4 - Exceptions.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... unusual pricing situations where the weighted guidelines method has been determined by the DOE negotiating... the pricing situation meets any of the circumstances set forth in this section, other methods for... Section 915.404-4-70-4 Federal Acquisition Regulations System DEPARTMENT OF ENERGY CONTRACTING METHODS AND...

  8. Exploring the relationship between cigarette prices and smoking among adults: a cross-country study of low- and middle-income nations.

    PubMed

    Kostova, Deliana; Tesche, Jean; Perucic, Anne-Marie; Yurekli, Ayda; Asma, Samira

    2014-01-01

    Evidence on the relationship between cigarette prices and adult smoking in low- and middle-income countries (LMICs) is relatively limited. This study offers new descriptive evidence on this relationship using data from a set of 13 LMICs. We use Global Adult Tobacco Survey (GATS) cross-country data from approximately 200,000 participants aged 15 and older. Estimates on the relationship between prices and adult smoking were obtained from logit models of smoking participation and ordinary least squares models of conditional cigarette demand. Higher prices were associated with lower demand across countries, in terms of both smoking prevalence and daily number of cigarettes smoked among smokers. Our estimates suggest that the total price elasticity of cigarette demand in LMICs is approximately -0.53. We find that higher socioeconomic status (SES), represented through wealth and education effects is associated with lower chance of smoking overall, but among existing smokers, it may be associated with a larger number of cigarettes smoked. After controlling for a set of individual demographic and country characteristics, cigarette prices retain a significant role in shaping cigarette demand across LMICs. Because higher SES is associated with a reduced chance of smoking overall but also with increased daily consumption among current smokers, optimal tobacco tax policies in LMICs may face an added need to accommodate to shifting SES structures within the populations of these countries.

  9. Optimal Contractor Selection in Construction Industry: The Fuzzy Way

    NASA Astrophysics Data System (ADS)

    Krishna Rao, M. V.; Kumar, V. S. S.; Rathish Kumar, P.

    2018-02-01

    A purely price-based approach to contractor selection has been identified as the root cause for many serious project delivery problems. Therefore, the capability of the contractor to execute the project should be evaluated using a multiple set of selection criteria including reputation, past performance, performance potential, financial soundness and other project specific criteria. An industry-wide questionnaire survey was conducted with the objective of identifying the important criteria for adoption in the selection process. In this work, a fuzzy set based model was developed for contractor prequalification/evaluation, by using effective criteria obtained from the percept of construction professionals, taking subjective judgments of decision makers also into consideration. A case study consisting of four alternatives (contractors in the present case) solicited from a public works department of Pondicherry in India, is used to illustrate the effectiveness of the proposed approach. The final selection of contractor is made based on the integrated score or Overall Evaluation Score of the decision alternative in prequalification as well as bid evaluation stages.

  10. Generalized Nutrient Taxes Can Increase Consumer Welfare.

    PubMed

    Bishai, David

    2015-11-01

    Certain nutrients can stimulate appetite making them fattening in a way that is not fully conveyed by the calorie content on the label. For rational eaters, this information gap could be corrected by more labeling. As an alternative, this paper proposes a set of positive and negative taxes on the fattening and slimming nutrients in food rather than on the food itself. There are conditions under which this tax plus subsidy system could increase welfare by stopping unwanted weight gain while leaving the final retail price of food unchanged. A nutrient tax system could improve welfare if fattening nutrients, net of their effect on weight, are inferior goods and the fiscal cost of administering the tax is sufficiently low. More data on the price elasticity of demand for nutrients as well as data on how specific nutrients affect satiety and how total calorie intake would be necessary before one could be sure a nutrient tax would work in practice. Copyright © 2014 John Wiley & Sons, Ltd.

  11. 77 FR 4606 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-01-30

    ... regarding decisions to pause trading and continue to reduce the negative impacts of sudden, unanticipated price movements in NMS stocks. The Exchange believes that the Pilot is working well, that it has been... there are significant price movements. The Exchange believes that the Pilot is working well, that it has...

  12. The asymmetric effect of coal price on the China's macro economy using NARDL model

    NASA Astrophysics Data System (ADS)

    Hou, J. C.; Yang, M. C.

    2016-08-01

    The present work endeavors to explore the asymmetric effect of coal price on the China's macro economy by applying nonlinear autoregressive distributed lag (NARDL) model for the period of January 2005 to June 2015. The obtained results indicate that the coal price has a strong asymmetric effect on China's macro economy in the long-run. Namely one percent increase in coal price leads to 0.6194 percent of the China's macro economy increase; and while the coal price is reduces by 1 percent, the China's macro economy will decrease by 0.008 percent. These data indicate that when coal price rises, the effect on China's macro economy is far greater than the price decline. In the short-run, coal price fluctuation has a positive effect on the China's macro economy.

  13. Towards peak pricing in metropolitan areas : modeling network and activity impacts.

    DOT National Transportation Integrated Search

    2011-06-01

    Peak-load pricing has long been seen as a way to internalize externalities and, at the same time, as a set of incentives to shift some peak-hour trips to off-peak periods. The policy has also been viewed as a mechanism to generate revenues. But it is...

  14. Diversifying Fiscal Support by Pricing Public Library Services: A Policy Impact Analysis.

    ERIC Educational Resources Information Center

    Hicks, Donald A.

    1980-01-01

    Addresses the possibility of diversifying the resource base of public libraries dependent on property taxes for funding through the setting of fees for library services, and reports on a pricing policy adopted by the Dallas Public Library System. Twenty-seven references are cited. (FM)

  15. The Setting of Tuition in Public Higher Education

    ERIC Educational Resources Information Center

    Rusk, James J.; Leslie, Larry L.

    1978-01-01

    Determinants of tuition prices in major state universities are identified in this study. Twenty-two variables accounted for 89 percent of the variation in 1976-77 tuition levels. Primary determinants were related to competition--tuition prices at institutions within the state or region--and to shortfalls in institutional income. (Author/LBH)

  16. A Model of Price Search Behavior in Electronic Marketplace.

    ERIC Educational Resources Information Center

    Jiang, Pingjun

    2002-01-01

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

  17. Reference-based pricing: will other provinces follow the BC lead?

    PubMed

    Mullens, A

    1998-01-27

    REFERENCE-BASED PRICING has had a major impact on medical practice in British Columbia. Anne Mullens discusses the new system's first 2 years. She says physicians outside BC should pay attention, because RBP may be heading their way. It is set to land in Australia next month.

  18. 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…

  19. Energy efficiency standards and innovation

    NASA Astrophysics Data System (ADS)

    Morrison, Geoff

    2015-01-01

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

  20. Are energy-dense foods really cheaper? Reexamining the relation between food price and energy density.

    PubMed

    Lipsky, Leah M

    2009-11-01

    The inverse relation between energy density (kcal/g) and energy cost (price/kcal) has been interpreted to suggest that produce (fruit, vegetables) is more expensive than snacks (cookies, chips). The objective of this study was to show the methodologic weakness of comparing energy density with energy cost. The relation between energy density and energy cost was replicated in a random-number data set. Additionally, observational data were collected for produce and snacks from an online supermarket. Variables included total energy (kcal), total weight (g), total number of servings, serving size (g/serving), and energy density (kcal/g). Price measures included energy cost ($/kcal), total price ($), unit price ($/g), and serving price ($/serving). Two-tailed t tests were used to compare price measures by food category. Relations between energy density and price measures within food categories were examined with the use of Spearman rank correlation analysis. The relation between energy density and energy cost was shown to be driven by the algebraic properties of these variables. Food category was strongly correlated with both energy density and food price measures. Energy cost was higher for produce than for snacks. However, total price and unit price were lower for produce. Serving price and serving size were greater for produce than for snacks. Within food categories, energy density was uncorrelated with most measures of food price, except for a weak positive correlation with serving price within the produce category. The findings suggest the relation between energy density and food price is confounded by food category and depends on which measure of price is used.

  1. Public attitudes towards pricing policies to change health-related behaviours: a UK focus group study.

    PubMed

    Somerville, Claire; Marteau, Theresa M; Kinmonth, Ann Louise; Cohn, Simon

    2015-12-01

    Evidence supports the use of pricing interventions in achieving healthier behaviour at population level. The public acceptability of this strategy continues to be debated throughout Europe, Australasia and USA. We examined public attitudes towards, and beliefs about the acceptability of pricing policies to change health-related behaviours in the UK. The study explores what underlies ideas of acceptability, and in particular those values and beliefs that potentially compete with the evidence presented by policy-makers. Twelve focus group discussions were held in the London area using a common protocol with visual and textual stimuli. Over 300,000 words of verbatim transcript were inductively coded and analyzed, and themes extracted using a constant comparative method. Attitudes towards pricing policies to change three behaviours (smoking, and excessive consumption of alcohol and food) to improve health outcomes, were unfavourable and acceptability was low. Three sets of beliefs appeared to underpin these attitudes: (i) pricing makes no difference to behaviour; (ii) government raises prices to generate income, not to achieve healthier behaviour and (iii) government is not trustworthy. These beliefs were evident in discussions of all types of health-related behaviour. The low acceptability of pricing interventions to achieve healthier behaviours in populations was linked among these responders to a set of beliefs indicating low trust in government. Acceptability might be increased if evidence regarding effectiveness came from trusted sources seen as independent of government and was supported by public involvement and hypothecated taxation. © The Author 2015. Published by Oxford University Press on behalf of the European Public Health Association.

  2. 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.

  3. Regulated Medicare Advantage And Marketplace Individual Health Insurance Markets Rely On Insurer Competition.

    PubMed

    Frank, Richard G; McGuire, Thomas G

    2017-09-01

    Two important individual health insurance markets-Medicare Advantage and the Marketplaces-are tightly regulated but rely on competition among insurers to supply and price health insurance products. Many local health insurance markets have little competition, which increases prices to consumers. Furthermore, both markets are highly subsidized in ways that can exacerbate the impact of market power-that is, the ability to set price above cost-on health insurance prices. Policy makers need to foster robust competition in both sectors and avoid designing subsidies that make the market-power problem worse. Project HOPE—The People-to-People Health Foundation, Inc.

  4. Measuring hospital input price increases: The rebased hospital market basket

    PubMed Central

    Freeland, Mark S.; Chulis, George S.; Brown, Aaron P.; Skellan, David; Maple, Brenda T.; Singer, Naphtale; Lemieux, Jeffrey; Arnett, Ross H.

    1991-01-01

    The input prices indexes used in part to set payment rates for Medicare inpatient hospital services in both prospective payment system (PPS) and PPS-excluded hospitals were rebased from 1982 to 1987 beginning with payments for fiscal year 1991. In this article, the issues and evidence used to determine the composition of the revised hospital input price indexes are discussed. One issue is the need for a separate market basket for PPS-excluded hospitals. Also, the payment implications of using hospital-industry versus economywide measures of wage rates as price proxies for the growth in hospital wage rates are addressed. PMID:10113610

  5. Improving health care costing with resource consumption accounting.

    PubMed

    Ozyapici, Hasan; Tanis, Veyis Naci

    2016-07-11

    Purpose - The purpose of this paper is to explore the differences between a traditional costing system (TCS) and resource consumption accounting (RCA) based on a case study carried out in a hospital. Design/methodology/approach - A descriptive case study was first carried out to identify the current costing system of the case hospital. An exploratory case study was then conducted to reveal how implementing RCA within the case hospital assigns costs differently to gallbladder surgeries than the current costing system (i.e. a TCS). Findings - The study showed that, in contrast to a TCS, RCA considers the unused capacity, which is the difference between the work that can be performed based on current resources and the work that is actually being performed. Therefore, it assigns lower total costs to open and laparoscopic gallbladder surgeries. The study also showed that by separating costs into fixed and variable RCA allows managers to benefit from a pricing strategy based on the difference between the service's selling price and variable costs incurred in providing that service. Research limitations/implications - The limitation of this study is that, because of time constraints, the implementation was performed in the general surgery department only. However, since RCA is an advanced system that has the same application procedures for any department inside in a hospital, managers need only time gaps to implement this system to all parts of the hospital. Practical implications - This study concluded that RCA is better than a TCS for use in health care settings that have high overhead costs because it accurately assigns overhead costs to services by considering unused capacities incurred by a hospital. Consequently, this study provides insight into both measuring and managing unused capacities within the health care sector. This study also concluded that RCA helps health care administrators increase their competitive advantage by allowing them to determine the lowest service price. Originality/value - Since the literature review found no study comparing RCA with TCS in a real-life health care setting, little is known about differences arising from applying these systems in this context. Thus, the current study fills this gap in the literature by comparing RCA with TCS for both open and laparoscopic gallbladder surgeries.

  6. Gluten-Free Foods in Rural Maritime Provinces: Limited Availability, High Price, and Low Iron Content.

    PubMed

    Jamieson, Jennifer A; Gougeon, Laura

    2017-12-01

    We investigated the price difference between gluten-free (GF) and gluten-containing (GC) foods available in rural Maritime stores. GF foods and comparable GC items were sampled through random visits to 21 grocery stores in nonurban areas of Nova Scotia, New Brunswick, and Prince Edward Island, Canada. Wilcoxon rank tests were conducted on price per 100 g of product, and on the price relative to iron content; 2226 GF foods (27.2% staple items, defined as breads, cereals, flours, and pastas) and 1625 GC foods were sampled, with an average ± SD of 66 ± 2.7 GF items per store in rural areas and 331 ± 12 in towns. The median price of GF items ($1.76/100 g) was more expensive than GC counterparts ($1.05/100 g) and iron density was approximately 50% less. GF staple foods were priced 5% higher in rural stores than in town stores. Although the variety of GF products available to consumers has improved, higher cost and lower nutrient density remain issues in nonurban Maritime regions. Dietitians working in nonurban areas should consider the relative high price, difficult access, and low iron density of key GF items, and work together with clients to find alternatives and enhance their food literacy.

  7. The Effects of Market Concentration on Residential Solar PV Prices: Competition, Installer Scale, and Soft Costs

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

    OShaughnessy, Eric J

    Competition among residential solar photovoltaic (PV) installers may reduce PV price markups and yield lower prices. At the same time, competition may reduce installer experience and opportunities for cost reductions through learning-by-doing and economies of scale. These dynamics suggest that PV non-hardware or 'soft' costs and installed prices depend on the distribution of market shares among installers, also known as market concentration. This study leverages a rich data set of 226,769 residential PV systems to examine the relationship between market concentration, soft costs, and PV prices. The results show that PV prices are lower, on average, in more concentrated markets,more » i.e., markets with fewer installers or where few installers hold high market share. The study provides evidence that this relationship is non-linear, such that prices are minimized in markets with an optimal balance of the benefits of market concentration and the benefits of competition.« less

  8. The price elasticity of demand for heroin: Matched longitudinal and experimental evidence.

    PubMed

    Olmstead, Todd A; Alessi, Sheila M; Kline, Brendan; Pacula, Rosalie Liccardo; Petry, Nancy M

    2015-05-01

    This paper reports estimates of the price elasticity of demand for heroin based on a newly constructed dataset. The dataset has two matched components concerning the same sample of regular heroin users: longitudinal information about real-world heroin demand (actual price and actual quantity at daily intervals for each heroin user in the sample) and experimental information about laboratory heroin demand (elicited by presenting the same heroin users with scenarios in a laboratory setting). Two empirical strategies are used to estimate the price elasticity of demand for heroin. The first strategy exploits the idiosyncratic variation in the price experienced by a heroin user over time that occurs in markets for illegal drugs. The second strategy exploits the experimentally induced variation in price experienced by a heroin user across experimental scenarios. Both empirical strategies result in the estimate that the conditional price elasticity of demand for heroin is approximately -0.80. Copyright © 2015 Elsevier B.V. All rights reserved.

  9. Pricing and Availability Intervention in Vending Machines at Four Bus Garages

    PubMed Central

    Hannan, Peter J; Harnack, Lisa J; Mitchell, Nathan R; Toomey, Traci L; Gerlach, Anne

    2009-01-01

    Objective To evaluate the effects of lowering prices and increasing availability on sales of healthy foods and beverages from 33 vending machines in four bus garages as part of a multi-component worksite obesity prevention intervention. Methods Availability of healthy items was increased to 50% and prices were lowered at least 10% in the vending machines in two metropolitan bus garages for an 18-month period. Two control garages offered vending choices at usual availability and prices. Sales data were collected monthly from each of the vending machines at the four garages. Results Increases in availability to 50% and price reductions of an average of 31% resulted in 10-42% higher sales of the healthy items. Employees were most price-responsive for snack purchases. Conclusions Greater availability and lower prices on targeted food and beverage items from vending machines was associated with greater purchases of these items over an eighteen-month period. Efforts to promote healthful food purchases in worksite settings should incorporate these two strategies. PMID:20061884

  10. Pricing and availability intervention in vending machines at four bus garages.

    PubMed

    French, Simone A; Hannan, Peter J; Harnack, Lisa J; Mitchell, Nathan R; Toomey, Traci L; Gerlach, Anne

    2010-01-01

    To evaluate the effects of lowering prices and increasing availability on sales of healthy foods and beverages from 33 vending machines in 4 bus garages as part of a multicomponent worksite obesity prevention intervention. Availability of healthy items was increased to 50% and prices were lowered at least 10% in the vending machines in two metropolitan bus garages for an 18-month period. Two control garages offered vending choices at usual availability and prices. Sales data were collected monthly from each of the vending machines at the four garages. Increases in availability to 50% and price reductions of an average of 31% resulted in 10% to 42% higher sales of the healthy items. Employees were mostly price responsive for snack purchases. Greater availability and lower prices on targeted food and beverage items from vending machines was associated with greater purchases of these items over an 18-month period. Efforts to promote healthful food purchases in worksite settings should incorporate these two strategies.

  11. Multi-factor energy price models and exotic derivatives pricing

    NASA Astrophysics Data System (ADS)

    Hikspoors, Samuel

    The high pace at which many of the world's energy markets have gradually been opened to competition have generated a significant amount of new financial activity. Both academicians and practitioners alike recently started to develop the tools of energy derivatives pricing/hedging as a quantitative topic of its own. The energy contract structures as well as their underlying asset properties set the energy risk management industry apart from its more standard equity and fixed income counterparts. This thesis naturally contributes to these broad market developments in participating to the advances of the mathematical tools aiming at a better theory of energy contingent claim pricing/hedging. We propose many realistic two-factor and three-factor models for spot and forward price processes that generalize some well known and standard modeling assumptions. We develop the associated pricing methodologies and propose stable calibration algorithms that motivate the application of the relevant modeling schemes.

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

    PubMed

    Harvey, P D

    1994-01-01

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

  13. Accounting-Induced Distortion in Public Enterprise Pricing

    NASA Astrophysics Data System (ADS)

    Moncur, James E. T.; Pollock, Richard L.

    1996-11-01

    Municipal water utilities commonly aim to set prices at average cost. Because of various omissions and owing to inflation, unadjusted accounting data understate the economic costs of fixed assets and thus generate inefficiently low prices and high consumption rates for the output of these enterprises. We investigate the nature and extent of undercosting and underpricing for a group of large urban water utilities in the United States. Economic costs appear to be significantly greater than the corresponding accounting measures for the cases studied.

  14. The impact of a federal cigarette minimum pack price policy on cigarette use in the USA.

    PubMed

    Doogan, Nathan J; Wewers, Mary Ellen; Berman, Micah

    2018-03-01

    Increasing cigarette prices reduce cigarette use. The US Food and Drug Administration has the authority to regulate the sale and promotion-and therefore the price-of tobacco products. To examine the potential effect of federal minimum price regulation on the sales of cigarettes in the USA. We used yearly state-level data from the Tax Burden on Tobacco and other sources to model per capita cigarette sales as a function of price. We used the fitted model to compare the status quo sales with counterfactual scenarios in which a federal minimum price was set. The minimum price scenarios ranged from $0 to $12. The estimated price effect in our model was comparable with that found in the literature. Our counterfactual analyses suggested that the impact of a minimum price requirement could range from a minimal effect at the $4 level to a reduction of 5.7 billion packs sold per year and 10 million smokers at the $10 level. A federal minimum price policy has the potential to greatly benefit tobacco control and public health by uniformly increasing the price of cigarettes and by eliminating many price-reducing strategies currently available to both sellers and consumers. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

  15. The effect of information on household water and energy use

    NASA Astrophysics Data System (ADS)

    Hans, Liesel

    Water and Energy Utilities are faced with growing demand at a time when supply expansion is increasingly costly, inconsistent and taxing on the environment. Given that supply expansion is limited, to meet future needs utilities need demand-side management policies to result in more reliable and consistent consumer responsiveness. Currently, most households do not have access to the level or type of information needed to respond to price signals in a reliable and effective way. Advanced information technology solutions exist and are being increasingly adopted, but we need to know more about how the informational setting affects decision-making, consumption levels and price responsiveness. This research analyzes the effect of information on household water and energy consumption, which is a decision-making environment characterized by uncertainty and imperfect information. This study also analyzes additional complexities stemming from infrequent billing, non-linear pricing structures, and combined utility bills, each of which may dampen price signals. I first develop a theoretical model of decision-making under uncertainty. I use this model to illustrate the effect of more frequent information, which eliminates uncertainty about past decisions, on remaining decisions within the billing period. The model emphasizes the role of risk preferences and the realization of the uncertain quantity. On average, risk averse consumers will increase consumption when uncertainty is reduced; risk seeking consumers will do the opposite. Introduction of a non-linear rate structure induces behavior that makes individuals appear as if they are risk averse or risk seeking, despite their actual risk preferences. This model highlights the importance of modeling multiple decisions within a billing period and accounting for a spectrum of risk preferences. In Chapter 3, I create a computerized laboratory experiment designed to generate data used to test some of the hypotheses formulated in the theoretical model presented in Chapter 2. Results from the experiment show that, on average, individuals consume more when provided with more frequent information that resolves uncertainty about past decisions made within a single billing period. This result is driven by the fact that the majority of participants are risk averse or risk neutral. Risk seeking participants instead reduce use when facing less uncertainty. Also as predicted by the theoretical model in Chapter 2, combining behavior driven by risk preferences with the presence of an increasing block rate structure results in behavior that looks like consumers are targeting the block boundary. This experiment shows that providing more information may not lead to reduced use without other incentives, goal-setting, or mechanisms designed to help individuals process the information. In Chapter 4, I empirically analyze a ten-year household-level panel data set of monthly utility bills. A single utility provides electricity, natural gas and water services to its customers and therefore bills through a single utility bill. I first show that price responsiveness varies by the number and combination of services subscribed to by a given household. Second, through a price salience model I show that households are more responsive to the price of water when the water portion of the total bill is greater. When multiple services are contained on a single bill, the salience of any individual price signal is dampened. This study confirms that households are inelastic though not unresponsive to water prices. In order to make pricing policies more effective, utilities need to acknowledge that households may be responding to total utility costs (i.e., may respond to a high utility bill by reducing electricity use despite the true driver of the high bill) and will need to find ways to make quantity and price information more salient to their customers. Chapter 5 concludes this dissertation by summarizing the contributions of the research and possible extensions for future work. By improving the informational environment surrounding household water and energy use, there will be great capacity for households to use water and energy more efficiently and ultimately make choices that reduce residential water/energy consumption and yield benefits for customers, utilities, and the environment.

  16. Effects of different contractual arrangements: the case of retail gasoline markets

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

    Barron, J.M.; Umbeck, J.R.

    The change in the contractual arrangement at a gasoline station from a refiner-controlled to a franchise operation implies different incentives for the individual who sets prices and determines hours, but reflects no change in the product nor the market environment. The outcome can lead to higher prices and reduced hours at the station affected. The divorcement experience in Maryland illustrates how change can be imposed by the legal system. Average self-service and full-serve prices rose, and hours of operation fell relative to those of competitors even though refiner operations that were forced to franchise had previously had prices below themore » competition. The evidence of an effect on the prices and hours of competitors is less convincing. 16 references, 2 tables.« less

  17. Tick size reduction and price clustering in a FX order book

    NASA Astrophysics Data System (ADS)

    Lallouache, Mehdi; Abergel, Frédéric

    2014-12-01

    We investigate the statistical properties of the EBS order book for the EUR/USD and USD/JPY currency pairs and the impact of a ten-fold tick size reduction on its dynamics. A large fraction of limit orders are still placed right at or halfway between the old allowed prices. This generates price barriers where the best quotes lie for much of the time, which causes the emergence of distinct peaks in the average shape of the book at round distances. Furthermore, we argue that this clustering is mainly due to manual traders who remained set to the old price resolution. Automatic traders easily take price priority by submitting limit orders one tick ahead of clusters, as shown by the prominence of buy (sell) limit orders posted with rightmost digit one (nine).

  18. Comment on the implications of external price referencing of pharmaceuticals in Middle East countries.

    PubMed

    Carapinha, João L

    2016-01-01

    External Price Referencing (EPR) is frequently used by countries to control pharmaceutical prices but studies to substantiate its use in the Middle East (ME) is lacking. The paper by Kalo et al set-out to fill this lacuna through three objectives: i) to document the use of EPR in 7 ME countries, ii) to assess whether pharmaceutical EPR resulted in a narrow price corridor for patented pharmaceuticals, and iii) to analyse factors influencing pharmaceutical prices. This comment discusses why the paper fell short of achieving these objectives and over-stated the results. Despite a thought-provoking contribution, objective 1 presented few new insights on EPR mechanisms, objective 2 deployed an inappropriate research design, and the policy implications of objective 3 are voided given the choice of explanatory variables.

  19. The evolving price of household LED lamps: Recent trends and historical comparisons for the US market

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

    Gerke, Brian F.; Ngo, Allison T.; Alstone, Andrea L.

    2014-10-14

    In recent years, household LED light bulbs (LED A lamps) have undergone a dramatic price decline. Since late 2011, we have been collecting data, on a weekly basis, for retail offerings of LED A lamps on the Internet. The resulting data set allows us to track the recent price decline in detail. LED A lamp prices declined roughly exponentially with time in 2011-2014, with decline rates of 28percent to 44percent per year depending on lumen output, and with higher-lumen lamps exhibiting more rapid price declines. By combining the Internet price data with publicly available lamp shipments indices for the USmore » market, it is also possible to correlate LED A lamp prices against cumulative production, yielding an experience curve for LED A lamps. In 2012-2013, LED A lamp prices declined by 20-25percent for each doubling in cumulative shipments. Similar analysis of historical data for other lighting technologies reveals that LED prices have fallen significantly more rapidly with cumulative production than did their technological predecessors, which exhibited a historical decline of 14-15percent per doubling of production.« less

  20. Effect of Worldwide Oil Price Fluctuations on Biomass Fuel Use and Child Respiratory Health: Evidence from Guatemala

    PubMed Central

    Fried, Brian J.

    2011-01-01

    Objectives. We examined the effect of worldwide oil price fluctuations on household fuel use and child respiratory health in Guatemala. Methods. We regressed measures of household fuel use and child respiratory health on the average worldwide oil price and a rich set of covariates. We leveraged variation in oil prices over the 6-month period of the survey to identify associations between fuel prices, fuel choice, and child respiratory outcomes. Results. A $1 (3.4% point) increase in worldwide fuel prices was associated with a 2.8% point decrease in liquid propane gasoline use (P < .05), a 0.75% point increase in wood use (P < .05), and a 1.5% point increase in the likelihood of the child reporting a respiratory symptom (P < .1). The association between oil prices and the fuel choice indicators was largest for households in the middle of the income distribution. Conclusions. Fluctuations in worldwide fuel prices affected household fuel use and, consequently, child health. Policies to help households tide over fuel price shocks or reduce pollution from biomass sources would confer positive health benefits. Such policies would be most effective if they targeted both poor and middle-income households. PMID:21778480

  1. Patients' views on price shopping and price transparency.

    PubMed

    Semigran, Hannah L; Gourevitch, Rebecca; Sinaiko, Anna D; Cowling, David; Mehrotra, Ateev

    2017-06-01

    Driven by the growth of high deductibles and price transparency initiatives, patients are being encouraged to search for prices before seeking care, yet few do so. To understand why this is the case, we interviewed individuals who were offered access to a widely used price transparency website through their employer. Qualitative interviews. We interviewed individuals enrolled in a preferred provider organization product through their health plan about their experience using the price transparency tool (if they had done so), their past medical experiences, and their opinions on shopping for care. All interviews were transcribed and manually coded using a thematic coding guide. In general, respondents expressed frustration with healthcare costs and had a positive opinion of the idea of price shopping in theory, but 2 sets of barriers limited their ability to do so in reality. The first was the salience of searching for price information. For example, respondents recognized that due to their health plan benefits design, they would not save money by switching to a lower-cost provider. Second, other factors were more important than price for respondents when choosing a provider, including quality and loyalty to current providers. We found a disconnect between respondents' enthusiasm for price shopping and their reported use of a price transparency tool to shop for care. However, many did find the tool useful for other purposes, including checking their claims history. Addressing the barriers to price shopping identified by respondents can help inform ongoing and future price transparency initiatives.

  2. An Analysis of the Air Force Working Capital Fund’s Performance and the Pricing Strategy of the Materiel Support Division

    DTIC Science & Technology

    2003-03-25

    Leland G. “ Defense Business Operations Fund (DBOF): Problems and Promise,” Public Budgeting & Finance, 15: 38-57 (Winter 1995). 80 Kotler , Philip ...knows if they will reach their desired rate-of return or profit level ( Kotler , 2000: 466). Market-Based Pricing The strength of market-based pricing

  3. Costing and competition.

    PubMed

    Bates, K; Brignall, S

    1994-01-01

    Working for patients established a new system of contracts between providers and purchasers of healthcare, with prices based on full costs, avoiding cross-subsidization. The new regime necessitates greatly improved costing systems, to improve the efficiency of service provision by creating price competition between providers. Ken Bates and Stan Brignall argue that non-price competition also occurs, with providers 'differentiating' on quality of service/product, flexibility or innovation.

  4. A Retrospective Analysis of the Benefits and Impacts of U.S. Renewable Portfolio Standards

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

    Wiser, Ryan H.; Barbose, Galen; Heeter, Jenny

    This report, the second in the series, analyzes historical benefits and impacts of all state RPS policies, in aggregate, employing a consistent and well-vetted set of methods and data sets. The analysis focuses on three specific benefits: greenhouse gas emissions, air pollution, and water use. It also analyzes three other impacts: gross job additions, wholesale electricity market price suppression, and natural gas price suppression. These are an important subset, but by no means a comprehensive set, of all possible effects associated with RPS policies. These benefits and impacts are also subject to many uncertainties, which are described and, to themore » extent possible, quantified within the report.« less

  5. Decentralized supply chain network design: monopoly, duopoly and oligopoly competitions under uncertainty

    NASA Astrophysics Data System (ADS)

    Seyedhosseini, Seyed Mohammad; Fahimi, Kaveh; Makui, Ahmad

    2017-12-01

    This paper presents the competitive supply chain network design problem in which n decentralized supply chains simultaneously enter the market with no existing rival chain, shape their networks and set wholesale and retail prices in competitive mode. The customer demand is elastic and price dependent, customer utility function is based on the Hoteling model and the chains produce identical or highly substitutable products. We construct a solution algorithm based on bi-level programming and possibility theory. In the proposed bi-level model, the inner part sets the prices based on simultaneous extra- and Stackleberg intra- chains competitions, and the outer part shapes the networks in cooperative competitions. Finally, we use a real-word study to discuss the effect of the different structures of the competitors on the equilibrium solution. Moreover, sensitivity analyses are conducted and managerial insights are offered.

  6. 77 FR 4084 - Prices for 2012 Infantry Soldier Silver Dollar and 2012 Star-Spangled Banner Commemorative Coin...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-01-26

    ... 2012 Star- Spangled Banner Commemorative Coin Program Products AGENCY: United States Mint, Department... Infantry Soldier Silver Dollar and 2012 Star-Spangled Banner Commemorative Coin Program products. Prices.... Silver Dollar. 2012 Infantry Soldier Silver Dollar N/A $61.95. Defenders of Freedom Set. 2012 Star...

  7. The Rising Cost of Private Higher Education. AIR Forum 1981 Paper.

    ERIC Educational Resources Information Center

    Suttle, J. Lloyd

    The basis on which Yale University and other private institutions set annual tuition levels and long-term pricing policies is considered. The rising cost of private higher education is examined in relation to historical trends, economic data (price and income inflation), the financial condition of the institution, comparative cost data from other…

  8. Over a Barrel: The High Costs of Rising Tuitions.

    ERIC Educational Resources Information Center

    Yanikowski, Richard A.

    1986-01-01

    Participants in the tuition-setting process lean toward "aggressive" pricing strategies because they want to maintain or improve quality, assure continued vitality, and keep the campus in good repair. Recent trends in tuition pricing are reviewed and some elements of budgetary strategies predicted on tuition increases above inflation are examined.…

  9. Does a More Centralized Urban Form Raise Housing Prices?

    ERIC Educational Resources Information Center

    Wassmer, Robert W.; Baass, Michelle C.

    2006-01-01

    This paper examines the relationship between various quantitative measures of urban centralization and urban housing prices through the use of a 2000 data set from the 452 Census designated urbanized areas in the United States. An empirical study of this type is necessary because: (1) the theoretical influence of creating more centralized urban…

  10. 32 CFR 3.9 - Follow-on production contracts.

    Code of Federal Regulations, 2010 CFR

    2010-07-01

    ... proposed quantity and target prices for the follow-on production units as part of that competition. (3... used; (ii) How the production quantities and target prices were evaluated in the competition; (iii) The... condition set forth in law that requires non-Federal parties to the OT agreement to provide at least one...

  11. One fish, two fish, red fish, blue fish: effects of price frames, brand names, and choice set size on Medicare Part D insurance plan decisions.

    PubMed

    Barnes, Andrew J; Hanoch, Yaniv; Wood, Stacey; Liu, Pi-Ju; Rice, Thomas

    2012-08-01

    Because many seniors choose Medicare Part D plans offering poorer coverage at greater cost, the authors examined the effect of price frames, brand names, and choice set size on participants' ability to choose the lowest cost plan. A 2×2×2 within-subjects design was used with 126 participants aged 18 to 91 years old. Mouselab, a web-based program, allowed participants to choose drug plans across eight trials that varied using numeric or symbolic prices, real or fictitious drug plan names, and three or nine drug plan options. Results from the multilevel models suggest numeric versus symbolic prices decreased the likelihood of choosing the lowest cost plan (-8.0 percentage points, 95% confidence interval=-14.7 to -0.9). The likelihood of choosing the lowest cost plan decreased as the amount of information increased suggesting that decision cues operated independently and collectively when selecting a drug plan. Redesigning the current Medicare Part D plan decision environment could improve seniors' drug plan choices.

  12. 4% Yield Increase (HH4), All Energy Crops scenario of the 2016 Billion Ton Report

    DOE Data Explorer

    Davis, Maggie R. [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000181319328); Hellwinkel, Chad [University of Tennessee] (ORCID:0000000173085058); Eaton, Laurence [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000312709626); Langholtz, Matthew H [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000281537154); Turhollow, Anthony [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000228159350); Brandt, Craig [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000214707379); Myers, Aaron [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000320373827)

    2016-07-13

    Scientific reason for data generation: to serve as an alternate high-yield scenario for the BT16 volume 1 agricultural scenarios to compare these projections of potential biomass supplies against a reference case (agricultural baseline 10.11578/1337885). The simulation runs from 2015 through 2040; a starting year of 2014 is used but not reported. Date the data set was last modified: 02/02/2016. How each parameter was produced (methods), format, and relationship to other data in the data set: This exogenous price simulations (also referred to as “specified-price” simulations) introduces a farmgate price, and POLYSYS solves for biomass supplies that may be brought to market in response to these prices. In specified-price scenarios, a specified farmgate price is offered constantly in all counties over all years of the simulation. This simulation begins in 2015 with an offered farmgate price for primary crop residues only between 2015 and 2018 and long-term contracts for dedicated crops beginning in 2019. Expected mature energy crop yield grows at a compounding rate of 4% beginning in 2016. The yield growth assumptions are fixed after crops are planted such that yield gains do not apply. Instruments used: Policy Analysis System –POLYSYS (version POLYS2015_V10_alt_JAN22B), an agricultural policy modeling system of U.S. agriculture (crops and livestock), supplied by the University of Tennessee Institute of Agriculture, Agricultural Policy Analysis Center.

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

    PubMed

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

    2013-07-01

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

  14. Differences in liquor prices between control state-operated and license-state retail outlets in the U.S.

    PubMed Central

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

    2012-01-01

    Aims This study aims to compare the average price of liquor in the United States between retail alcohol outlets in states that have a monopoly ('control' states) with those that do not ('licence' states). Design A cross-sectional study of brand-specific alcohol prices in the United States. Setting We determined the average prices in February 2012 of 74 brands of liquor among the 13 control states that maintain a monopoly on liquor sales at the retail level and among a sample of 50 license-state liquor stores, using their online-available prices. Measurements We calculated average prices for 74 brands of liquor by control vs. license state. We used a random effects regression model to estimate differences between control and license state prices – overall and by alcoholic beverage type. We also compared prices between the 13 control states. Findings The overall mean price for the 74 brands was $27.79 in the license states (95% confidence interval [CI], $25.26–$30.32) and $29.82 in the control states (95% CI, $26.98–$32.66). Based on the random effects linear regression model, the average liquor price was approximately two dollars lower (6.9% lower) in license states. Conclusions In the United States monopoly of alcohol retail outlets appears to be associated with slightly higher liquor prices. PMID:22934914

  15. OSTEOPOROSIS DRUGS MARKETED IN THE UNITED STATES: GENERIC COMPETITION, PRICING STRUCTURE, AND DISPERSION AMONG PAYERS.

    PubMed

    Balkhi, Bander; Seoane-Vazquez, Enrique; Rodriguez-Monguio, Rosa

    2016-01-01

    Despite the cost of pharmaceuticals, studies assessing prices of osteoporosis drugs are lacking. This study examined trends in prices of osteoporosis drugs in the United States in the period 1988-2014, assessed pricing structure of osteoporosis drugs, and evaluated price trends before and after generic drugs market entry. Data were derived from the U.S. Food and Drug Administration, the RedBook, the Centers for Medicare & Medicaid Services, and the Federal Supply Schedule (FSS). Descriptive statistics and segmented linear regression analyses were performed. In the period 1988-2014, osteoporosis drug prices increased faster than the inflation. The average wholesale price (AWP) of generic products at market entry represented 90 percent of the AWP for the corresponding brand. Prices of brand products continued to increase after generic entry. Drug prices showed a significant variation when compared with the brand AWP. The brand wholesale acquisition cost (WAC) was typically set at 83.3 percent of the AWP. Community pharmacies acquired osteoporosis brand drugs at a median of 80.5 percent of the brand AWP. Significant reductions in brand AWP were observed for Medicare Part B (78.5 percent of the brand AWP), generic National Average Drug Acquisition Cost (33.7 percent), and FSS (22.5 percent). There are significant differences in the manufacturer prices, pharmacy acquisition costs and reimbursement rates of osteoporosis drugs. Pharmaceutical companies listed prices are higher than the pharmacy actual estimated acquisitions costs, and the prices used for reimbursement to providers. Generic drugs entry significantly drives down prices; still, prices of branded drugs facing generic competition continued to increase after generic market entry.

  16. A pricing policy towards the sourcing of cheaper drugs in Cyprus.

    PubMed

    Merkur, Sherry; Mossialos, Elias

    2007-05-01

    In contrast to other EU countries, Cyprus lacks comprehensive health care coverage for its population, thus a significant portion of the population lacks insurance for medicines. Due to the small size of the country and small indigenous pharmaceutical industry, pharmaceuticals are mainly imported. Prices in the private sector are determined based on the ex-factory price from the country of origin. Distribution margins are calculated as a percentage of the import price, which creates perverse incentives for wholesalers to import products from high price countries, or import very expensive products, to maximize their income. In this article, we compare pharmaceutical prices in Cyprus to other EU counties with higher or similar GDP per capita and found Cyprus to be a high price country. We then propose a new pricing system to change wholesaler incentives, which would encourage them to shop around for the best buy in Europe. Prices can be set based on average prices from a basket of European countries, and adjusted to reflect the GDP per capita level in Cyprus. This will establish the wholesale price that the government will accept, and wholesalers can procure products from any country at a lower rate. Thus, wholesalers would be encouraged to go for the lowest prices and the authorities would be indifferent to the actual price they obtain, so long as the necessary criteria (good manufacturing practice, safety, effectiveness and efficacy) are met. Our proposal has implications for low and middle income countries where this system of pharmaceutical pricing and wholesaler incentives can be used.

  17. Price and distribution policies in healthcare marketing in Romania.

    PubMed

    Coculescu, B I; Coculescu, E C; Purcărea, V L

    2017-01-01

    There is a principle similar to the theory of exchange in the marketing of health services, meaning that what is delivered to the target market (i.e. the beneficiaries) must be equal to or greater than what is to be received (i.e. the price). The price level in the marketing mix is influenced by how the consumer perceives the respective medical service and is quantified in the profit and the turnover of the organization respectively. The cost of the medical act as a whole is the value of all the tangible and intangible variables associated with it, and the planning, distribution and promotion of the product must be taken into account in the price setting.

  18. Price and distribution policies in healthcare marketing in Romania

    PubMed Central

    Coculescu, BI; Coculescu, EC; Purcărea, VL

    2017-01-01

    There is a principle similar to the theory of exchange in the marketing of health services, meaning that what is delivered to the target market (i.e. the beneficiaries) must be equal to or greater than what is to be received (i.e. the price). The price level in the marketing mix is influenced by how the consumer perceives the respective medical service and is quantified in the profit and the turnover of the organization respectively. The cost of the medical act as a whole is the value of all the tangible and intangible variables associated with it, and the planning, distribution and promotion of the product must be taken into account in the price setting. PMID:28616091

  19. Cheaper by the Dozen: Using Sibling Discounts at Catholic Schools to Estimate the Price Elasticity of Private School Attendance. NBER Working Paper No. 15461

    ERIC Educational Resources Information Center

    Dynarski, Susan; Gruber, Jonathan; Li, Danielle

    2009-01-01

    The effect of vouchers on sorting between private and public schools depends upon the price elasticity of demand for private schooling. Estimating this elasticity is empirically challenging because prices and quantities are jointly determined in the market for private schooling. We exploit a unique and previously undocumented source of variation…

  20. Factors determining the choice of hunting and trading bushmeat in the Kilombero Valley, Tanzania.

    PubMed

    Nielsen, Martin Reinhardt; Jacobsen, Jette Bredahl; Thorsen, Bo Jellesmark

    2014-04-01

    Regulation of illegal bushmeat trade is a major conservation challenge in Africa. We investigated what factors are most likely to induce actors in the bushmeat trade to shift to an alternative occupation by conducting a choice experiment with 325 actors in the bushmeat trade in the Kilombero Valley, Tanzania. Specifically, we asked respondents to choose between hunting or trading bushmeat and alternative salary-paying work, in a set of hypothetical scenarios where the attributes of these alternatives were varied and included measures of command and control, price of substitute meat, daily salary in the work option, and whether or not cows were donated to the respondent. We modeled the choice contingent on socioeconomic characteristics. The magnitude of fines and patrolling frequency had a significant but very low negative effect on the probability of choosing to engage in hunting or trading bushmeat compared with the salary of an alternative occupation. Donation of livestock and the price of substitute meats in the local market both affected the choice significantly in a negative and a positive direction, respectively. The wealthier a household was the more likely the respondent was to choose to continue hunting or trading bushmeat. On the margin, our results suggest that given current conditions in the Kilombero Valley on any given day 90% of the respondents would choose salary work at US$3.37/day over their activities in the bushmeat trade, all else equal. © 2013 Society for Conservation Biology.

  1. Treating Osteoarthritis of the Knee Popular: Supplements Don't Work

    MedlinePlus

    ... Strollers Cars New & Used Cars Research Car Buying & Pricing Maintenance & Repair Tires Electronics Cameras Laptops Printers TVs ... SUVs More Ready to Shop All Car Buying & Pricing Advice Best New Car Deals Build & Buy Car ...

  2. Toward economics as a new complex system

    NASA Astrophysics Data System (ADS)

    Kaizoji, Taisei

    2016-12-01

    The 2015 Nobel Prize in Economic Sciences was awarded to Eugene Fama, Lars Peter Hansen and Robert Shiller for their contributions to the empirical analysis of asset prices. Eugene Fama [J. Finance 25(2), 383 (1970)] is an advocate of the efficient market hypothesis. The efficient market hypothesis assumes that asset price is determined by using all available information and only reacts to new information not incorporated into the fundamentals. Thus, the movement of stock prices is unpredictable. Robert Shiller [ Irrational Exuberance (Princeton Univ. Press, 2015)] has been studying the existence of irrational bubbles, which are defined as the long term deviations of asset price from the fundamentals. This drives us to the unsettled question of how the market actually works. In this paper, I look back at the development of economics and consider the direction in which we should move in order to truly understand the workings of an economic society.

  3. A viability analysis for a stock/price model

    NASA Astrophysics Data System (ADS)

    Jerry, Chakib; Raissi, Nadia

    2012-09-01

    We examine the conditions for the sustainability of a stock/price system based on the use of a marine renewable resource. Instead of studying the environmental and economic interactions in terms of optimal control, we focus on the viability of the system. These viability/crisis situations are defined by a set of economic state constraints. This constraints combine a guaranteed consumption and a minimum income for fishermen. Using the mathematical concept of viability kernel, we reveal that with only economics constraints we guarantee a perennial stock/price system.

  4. Residential heating costs: A comparison of geothermal solar and conventional resources

    NASA Astrophysics Data System (ADS)

    Bloomster, C. H.; Garrett-Price, B. A.; Fassbender, L. L.

    1980-08-01

    The costs of residential heating throughout the United States using conventional, solar, and geothermal energy were determined under current and projected conditions. These costs are very sensitive to location, being dependent on the local prices of conventional energy supplies, local solar insolation, climate, and the proximity and temperature of potential geothermal resources. The sharp price increases in imported fuels during 1979 and the planned decontrol of domestic oil and natural gas prices have set the stage for geothermal and solar market penetration in the 1980's.

  5. The Researches on Cycle-Changeable Generation Settlement Method

    NASA Astrophysics Data System (ADS)

    XU, Jun; LONG, Suyan; LV, Jianhu

    2018-03-01

    Through the analysis of the business characteristics and problems of price adjustment, a cycle-changeable generation settlement method is proposed to support any time cycle settlement, and put forward a complete set of solutions, including the creation of settlement tasks, time power dismantle, generating fixed cycle of electricity, net energy split. At the same time, the overall design flow of cycle-changeable settlement is given. This method supports multiple price adjustments during the month, and also is an effective solution to the cost reduction of month-after price adjustment.

  6. [The French medecine pricing committee].

    PubMed

    Giorgi, D

    2017-09-01

    The French medicine pricing committee (CEPS) has to reconcile several major constraints, including optimal patient access to medicines and a good control of expenditures on reimbursable medicines. From 2013 to 2015, drug price decreases and discounts obtained by CEPS contributed more than € 5 billion to the balance of the health insurance accounts. As for price setting, there is a significant drop in the prices of medicines in France once they are registered for reimbursement. France is affected by a limited, but costly, flow of innovative medicines, whose prices are higher than those of previous generations, a reflection of an international gradient to which France is obviously subject, despite prices that remain at the low end of the range in Western Europe. The provision of innovative medicines for all patients who need them has been ensured in France over the last fifteen years at a controlled cost. But with the arrival of new expensive products, a resolute policy of control of expenditures must take over from the fall in prices, and original financing channels will have to be explored. Copyright © 2017 Académie Nationale de Pharmacie. Published by Elsevier Masson SAS. All rights reserved.

  7. Designing an agricultural vegetative waste-management system under uncertain prices of treatment-technology output products.

    PubMed

    Broitman, D; Raviv, O; Ayalon, O; Kan, I

    2018-05-01

    Setting up a sustainable agricultural vegetative waste-management system is a challenging investment task, particularly when markets for output products of waste-treatment technologies are not well established. We conduct an economic analysis of possible investments in treatment technologies of agricultural vegetative waste, while accounting for fluctuating output prices. Under a risk-neutral approach, we find the range of output-product prices within which each considered technology becomes most profitable, using average final prices as the exclusive factor. Under a risk-averse perspective, we rank the treatment technologies based on their computed certainty-equivalent profits as functions of the coefficient of variation of the technologies' output prices. We find the ranking of treatment technologies based on average prices to be robust to output-price fluctuations provided that the coefficient of variation of the output prices is below about 0.4, that is, approximately twice as high as that of well-established recycled-material markets such as glass, paper and plastic. We discuss some policy implications that arise from our analysis regarding vegetative waste management and its associated risks. Copyright © 2018 Elsevier Ltd. All rights reserved.

  8. Determinants of the Price of High-Tech Metals: An Event Study

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

    Wanner, Markus, E-mail: markus.wanner@mrm.uni-augsburg.de; Gaugler, Tobias; Gleich, Benedikt

    The growing demand for high-tech products has resulted in strong growth in demand for certain minor metals. In combination with production concentrated in China, this caused strong and unpredicted price movements in recent years. As a result, manufacturing companies have to cope with additional risks. However, the detailed reasons for the price development are only partially understood. Therefore, we analyzed empirically which determinants can be assigned to price movements and performed an event study on the high-tech metals neodymium, indium, and gallium. Based on our dataset of news items, we were able to find coinciding events to almost 90% ofmore » all price jumps (recall). We showed that if any information about these events occurred with a probability of over 50% there would also be a price jump within 10 days (precision). However, the classical set of price determinants has to be extended for these specific markets, as we found unorthodox factors like holidays or weather that may be indicators for price movements. Therefore, we hope that our study supports industry for instance in performing more informed short-term planning of metals purchasing based on information about specific events.« less

  9. Competition among hospitals for HMO business: effect of price and nonprice attributes.

    PubMed

    Young, Gary J; Burgess, James E; Valley, Danielle

    2002-10-01

    To investigate patterns of competition among hospitals for the business of health maintenance organizations (HMOs). The study focused on the relative importance of hospital price and nonprice attributes in the competition for HMO business. The study capitalized on hospital cost reports from Florida that are unique in their inclusion of financial data regarding HMO business activity. The time frame was 1992 to 1997. The study was designed as an observational investigation of acute care hospitals. Results indicated that a hospital's share of HMO business was related to both its price and nonprice attributes. However, the importance of both price and nonprice attributes diminished as the number of HMOs in a market increased. Hospitals that were market share leaders in terms of HMO business (i.e., 30 percent or more market share) were superior, on average, to their competitors on both price and nonprice attributes. Study results indicate that competition among hospitals for HMO business involves a complex set of price and nonprice attributes. The HMOs do not appear to focus on price alone. Hospitals likely to be the most attractive to HMOs are those that can differentiate themselves on the basis of nonprice attributes while being competitive on price as well.

  10. Dynamic pricing of network goods with boundedly rational consumers.

    PubMed

    Radner, Roy; Radunskaya, Ami; Sundararajan, Arun

    2014-01-07

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

  11. Multi-attribute Regret-Based Dynamic Pricing

    NASA Astrophysics Data System (ADS)

    Jumadinova, Janyl; Dasgupta, Prithviraj

    In this paper, we consider the problem of dynamic pricing by a set of competing sellers in an information economy where buyers differentiate products along multiple attributes, and buyer preferences can change temporally. Previous research in this area has either focused on dynamic pricing along a limited number of (e.g. binary) attributes, or, assumes that each seller has access to private information such as preference distribution of buyers, and profit/price information of other sellers. However, in real information markets, private information about buyers and sellers cannot be assumed to be available a priori. Moreover, due to the competition between sellers, each seller faces a tradeoff between accuracy and rapidity of the pricing mechanism. In this paper, we describe a multi-attribute dynamic pricing algorithm based on minimax regret that can be used by a seller's agent called a pricebot, to maximize the seller's utility. Our simulation results show that the minimax regret based dynamic pricing algorithm performs significantly better than other algorithms for rapidly and dynamically tracking consumer attributes without using any private information from either buyers or sellers.

  12. Dynamic pricing of network goods with boundedly rational consumers

    PubMed Central

    Radner, Roy; Radunskaya, Ami; Sundararajan, Arun

    2014-01-01

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

  13. As Food Prices Rise, Setting Menus Is Cause of Heartburn for Schools

    ERIC Educational Resources Information Center

    Samuels, Christina A.

    2008-01-01

    With food and fuel prices increasing sharply, food and nutrition directors in school districts around the country are finding themselves facing some uncomfortable choices. In some districts, school lunch menus are being pared down to fewer selections, instead of the array of healthy options districts would like to offer. In other areas, canned and…

  14. 17 CFR 155.2 - Trading standards for floor brokers.

    Code of Federal Regulations, 2010 CFR

    2010-04-01

    ... TRADING STANDARDS § 155.2 Trading standards for floor brokers. Each contract market shall adopt and submit..., a set of rules which shall, at a minimum, with respect to each member of the contract market acting... the market price or at the price at which such purchase or sale can be made for the member's own...

  15. 17 CFR 155.2 - Trading standards for floor brokers.

    Code of Federal Regulations, 2011 CFR

    2011-04-01

    ... TRADING STANDARDS § 155.2 Trading standards for floor brokers. Each contract market shall adopt and submit..., a set of rules which shall, at a minimum, with respect to each member of the contract market acting... the market price or at the price at which such purchase or sale can be made for the member's own...

  16. 17 CFR 155.2 - Trading standards for floor brokers.

    Code of Federal Regulations, 2012 CFR

    2012-04-01

    ... TRADING STANDARDS § 155.2 Trading standards for floor brokers. Each contract market shall adopt and submit..., a set of rules which shall, at a minimum, with respect to each member of the contract market acting... the market price or at the price at which such purchase or sale can be made for the member's own...

  17. Prices and Values: A Perspective on Adult and Community Education

    ERIC Educational Resources Information Center

    Wells, Graeme

    2007-01-01

    Government-provided services are caught in the jaws of a "cost-tax vice". On the cost side, the long-term trend of rising relative prices of services, including education, seems set to continue. The other jaw of the vice is the high efficiency cost of raising additional taxes. Recent research making the case for public provision of…

  18. Based on BP Neural Network Stock Prediction

    ERIC Educational Resources Information Center

    Liu, Xiangwei; Ma, Xin

    2012-01-01

    The stock market has a high profit and high risk features, on the stock market analysis and prediction research has been paid attention to by people. Stock price trend is a complex nonlinear function, so the price has certain predictability. This article mainly with improved BP neural network (BPNN) to set up the stock market prediction model, and…

  19. Natural Gas Prices Forecast Comparison--AEO vs. Natural Gas Markets

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

    Wong-Parodi, Gabrielle; Lekov, Alex; Dale, Larry

    This paper evaluates the accuracy of two methods to forecast natural gas prices: using the Energy Information Administration's ''Annual Energy Outlook'' forecasted price (AEO) and the ''Henry Hub'' compared to U.S. Wellhead futures price. A statistical analysis is performed to determine the relative accuracy of the two measures in the recent past. A statistical analysis suggests that the Henry Hub futures price provides a more accurate average forecast of natural gas prices than the AEO. For example, the Henry Hub futures price underestimated the natural gas price by 35 cents per thousand cubic feet (11.5 percent) between 1996 and 2003more » and the AEO underestimated by 71 cents per thousand cubic feet (23.4 percent). Upon closer inspection, a liner regression analysis reveals that two distinct time periods exist, the period between 1996 to 1999 and the period between 2000 to 2003. For the time period between 1996 to 1999, AEO showed a weak negative correlation (R-square = 0.19) between forecast price by actual U.S. Wellhead natural gas price versus the Henry Hub with a weak positive correlation (R-square = 0.20) between forecasted price and U.S. Wellhead natural gas price. During the time period between 2000 to 2003, AEO shows a moderate positive correlation (R-square = 0.37) between forecasted natural gas price and U.S. Wellhead natural gas price versus the Henry Hub that show a moderate positive correlation (R-square = 0.36) between forecast price and U.S. Wellhead natural gas price. These results suggest that agencies forecasting natural gas prices should consider incorporating the Henry Hub natural gas futures price into their forecasting models along with the AEO forecast. Our analysis is very preliminary and is based on a very small data set. Naturally the results of the analysis may change, as more data is made available.« less

  20. Modelling energy costs for different operational strategies of a large water resource recovery facility.

    PubMed

    Póvoa, P; Oehmen, A; Inocêncio, P; Matos, J S; Frazão, A

    2017-05-01

    The main objective of this paper is to demonstrate the importance of applying dynamic modelling and real energy prices on a full scale water resource recovery facility (WRRF) for the evaluation of control strategies in terms of energy costs with aeration. The Activated Sludge Model No. 1 (ASM1) was coupled with real energy pricing and a power consumption model and applied as a dynamic simulation case study. The model calibration is based on the STOWA protocol. The case study investigates the importance of providing real energy pricing comparing (i) real energy pricing, (ii) weighted arithmetic mean energy pricing and (iii) arithmetic mean energy pricing. The operational strategies evaluated were (i) old versus new air diffusers, (ii) different DO set-points and (iii) implementation of a carbon removal controller based on nitrate sensor readings. The application in a full scale WRRF of the ASM1 model coupled with real energy costs was successful. Dynamic modelling with real energy pricing instead of constant energy pricing enables the wastewater utility to optimize energy consumption according to the real energy price structure. Specific energy cost allows the identification of time periods with potential for linking WRRF with the electric grid to optimize the treatment costs, satisfying operational goals.

  1. Pharmaceutical pricing: an empirical study of market competition in Chinese hospitals.

    PubMed

    Wu, Jing; Xu, Judy; Liu, Gordon; Wu, Jiuhong

    2014-03-01

    High pharmaceutical prices and over-prescribing of high-priced pharmaceuticals in Chinese hospitals has long been criticized. Although policy makers have tried to address these issues, they have not yet found an effective balance between government regulation and market forces. Our objective was to explore the impact of market competition on pharmaceutical pricing under Chinese government regulation. Data from 11 public tertiary hospitals in three cities in China from 2002 to 2005 were used to explore the effect of generic and therapeutic competition on prices of antibiotics and cardiovascular products. A quasi-hedonic regression model was employed to estimate the impact of competition. The inputs to our model were specific attributes of the products and manufacturers, with the exception of competition variables. Our results suggest that pharmaceutical prices are inversely related to the number of generic and therapeutic competitors, but positively related to the number of therapeutic classes. In addition, the product prices of leading local manufacturers are not only significantly lower than those of global manufacturers, but are also lower than their non-leading counterparts when other product attributes are controlled for. Under the highly price-regulated market in China, competition from generic and therapeutic competitors did decrease pharmaceutical prices. Further research is needed to explore whether this competition increases consumer welfare in China's healthcare setting.

  2. Price performance following stock's IPO in different price limit systems

    NASA Astrophysics Data System (ADS)

    Wu, Ting; Wang, Yue; Li, Ming-Xia

    2018-01-01

    An IPO burst occurred in China's stock markets in 2015, while price limit trading rules usually help to reduce the short-term trading mania on individual stocks. It is interesting to make clear the function of the price limits after IPOs. We firstly make a statistical analysis based on all the IPO stocks listed from 1990 to 2015. A high dependency exists between the activities in stock's IPO and various market environment. We also focus on the price dynamics in the first 40 trading days after the stock listed. We find that price limit system will delay the price movement, especially for the up-trend movements, which may lead to longer continuous price limit hits. Similar to our previous work, many results such as ;W; shape can be also observed in the future daily return after the price limit open. At last, we find most IPO measures show evident correlations with the following price limit hits. IPO stocks with lower first-day turnover and earning per share will be followed with a longer continuous price limit hits and lower future daily return under the newest trading rules, which give us a good way to estimate the occurrence of price limit hits and the following price dynamics. Our analysis provides a better understanding of the price dynamics after IPO events and offers potential practical values for investors.

  3. Price elasticities in the German Statutory Health Insurance market before and after the health care reform of 2009.

    PubMed

    Pendzialek, Jonas B; Danner, Marion; Simic, Dusan; Stock, Stephanie

    2015-05-01

    This paper investigates the change in price elasticity of health insurance choice in Germany after a reform of health insurance contributions. Using a comprehensive data set of all sickness funds between 2004 and 2013, price elasticities are calculated both before and after the reform for the entire market. The general price elasticity is found to be increased more than 4-fold from -0.81 prior to the reform to -3.53 after the reform. By introducing a new kind of health insurance contribution the reform seemingly increased the price elasticity of insured individuals to a more appropriate level under the given market parameters. However, further unintended consequences of the new contribution scheme were massive losses of market share for the more expensive sickness funds and therefore an undivided focus on pricing as the primary competitive element to the detriment of quality. Copyright © 2015 Elsevier Ireland Ltd. All rights reserved.

  4. A hybrid credibility-based fuzzy multiple objective optimisation to differential pricing and inventory policies with arbitrage consideration

    NASA Astrophysics Data System (ADS)

    Ghasemy Yaghin, R.; Fatemi Ghomi, S. M. T.; Torabi, S. A.

    2015-10-01

    In most markets, price differentiation mechanisms enable manufacturers to offer different prices for their products or services in different customer segments; however, the perfect price discrimination is usually impossible for manufacturers. The importance of accounting for uncertainty in such environments spurs an interest to develop appropriate decision-making tools to deal with uncertain and ill-defined parameters in joint pricing and lot-sizing problems. This paper proposes a hybrid bi-objective credibility-based fuzzy optimisation model including both quantitative and qualitative objectives to cope with these issues. Taking marketing and lot-sizing decisions into account simultaneously, the model aims to maximise the total profit of manufacturer and to improve service aspects of retailing simultaneously to set different prices with arbitrage consideration. After applying appropriate strategies to defuzzify the original model, the resulting non-linear multi-objective crisp model is then solved by a fuzzy goal programming method. An efficient stochastic search procedure using particle swarm optimisation is also proposed to solve the non-linear crisp model.

  5. The menu-setting problem and subsidized prices: drug formulary illustration.

    PubMed

    Olmstead, T; Zeckhauser, R

    1999-10-01

    The menu-setting problem (MSP) determines the goods and services an institution offers and the prices charged. It appears widely in health care, from choosing the services an insurance arrangement offers, to selecting the health plans an employer proffers. The challenge arises because purchases are subsidized, and consumers (or their physician agents) may make cost-ineffective choices. The intuitively comprehensible MSP model--readily solved by computer using actual data--helps structure thinking and support decision making about such problems. The analysis uses drug formularies--lists of approved drugs in a plan or institution--to illustrate the framework.

  6. 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.

  7. Measuring demand for flat water recreation using a two-stage/disequilibrium travel cost model with adjustment for overdispersion and self-selection

    NASA Astrophysics Data System (ADS)

    McKean, John R.; Johnson, Donn; Taylor, R. Garth

    2003-04-01

    An alternate travel cost model is applied to an on-site sample to estimate the value of flat water recreation on the impounded lower Snake River. Four contiguous reservoirs would be eliminated if the dams are breached to protect endangered Pacific salmon and steelhead trout. The empirical method applies truncated negative binomial regression with adjustment for endogenous stratification. The two-stage decision model assumes that recreationists allocate their time among work and leisure prior to deciding among consumer goods. The allocation of time and money among goods in the second stage is conditional on the predetermined work time and income. The second stage is a disequilibrium labor market which also applies if employers set work hours or if recreationists are not in the labor force. When work time is either predetermined, fixed by contract, or nonexistent, recreationists must consider separate prices and budgets for time and money.

  8. Marketing and social change: the parallels.

    PubMed

    Da Cunha, G

    1995-01-01

    Social marketing became respectable only in the late 1970s in places like Indonesia, Brazil, Egypt, Honduras, and Gambia. In practice social change and marketing are both about modifying group behavior. Social change provides opportunities for marketing, which is the process that identifies the unmet consumer need and satisfies it at a profit. Social research and production technologies are involved in market segmentation, target group selection, pricing, distribution, selling, and promotion. The crucial, people-centered and community-based characteristic of marketing is its social relevance. Marketing is a neutral methodology and social marketing is its adaptation to social imperatives. Among a set of underlying ideas related to marketing is the primacy of the consumer in all marketing decisions. Marketing clusters are a way of analyzing a situation, making a product, and pricing and distributing it. Demand is the driving force behind marketing with the components of price, performance, and decision. The benefit obtained from the product must justify the price. Advertising is commercial mass persuasion, the centerpiece of promotion; it is also needed for marketing communications. Promotional tools include special price offers, merchandizing, and dealer incentive schemes. Straightforward information rarely causes lasting behavioral changes. In a Bangladeshi community, 90% of women could have correct knowledge about oral rehydration salts, yet only 8% of them might actually use them correctly. Information that is resisted does not work, yet huge amounts of money go into producing manuals, leaflets, radio programs, and posters. The issues of distribution and competition are often neglected in social marketing programs. Other deficiencies are failure to monitor, evaluate, and innovate. To be successful, social marketing must aim at a 100% conversion of the market actors. Some successes of the social marketing approach include: a nutrition education and behavior change project in Indonesia, a diarrhea management program in Egypt, and breast-feeding promotion in Brazil.

  9. The effect of proportional v. value pricing on fountain drink purchases: results from a field experiment.

    PubMed

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

    2018-05-15

    Reducing sugar-sweetened beverage consumption is a public health priority, yet finding an effective and acceptable policy intervention is challenging. One strategy is to use proportional pricing (a consistent price per fluid ounce) instead of the typical value-priced approach where large beverages offer better value. The purpose of the present study was to evaluate whether proportional pricing affects the purchasing of fountain beverages at a university cinema concession stand. Four price strategies for beverages were evaluated over ten weekends of film screenings. We manipulated two factors: the price structure (value pricing v. proportional pricing) and the provision of information about the price per fluid ounce (labels v. no labels). The key outcomes were the number and size of beverages purchased. We analysed data using regression analyses, with standard errors clustered by film and controlling for the day and time of purchase. A university cinema concession stand in Minnesota, USA, in spring 2015. University students. Over the study period (360 beverages purchased) there were no significant effects of the proportional pricing treatment. Pairing a label with the standard value pricing increased the likelihood of purchasing large drinks but the label did not affect purchasing when paired with proportional pricing. Proportional prices did not significantly affect the size of beverages purchased by students at a university cinema, but adding a price-per-ounce label increased large drink purchases when drinks were value-priced. More work is needed to address whether pricing and labelling strategies might promote healthier beverage purchases.

  10. Do state minimum markup/price laws work? Evidence from retail scanner data and TUS-CPS

    PubMed Central

    Huang, Jidong; Chriqui, Jamie F; DeLong, Hillary; Mirza, Maryam; Diaz, Megan C; Chaloupka, Frank J

    2016-01-01

    Background Minimum markup/price laws (MPLs) have been proposed as an alternative non-tax pricing strategy to reduce tobacco use and access. However, the empirical evidence on the effectiveness of MPLs in increasing cigarette prices is very limited. This study aims to fill this critical gap by examining the association between MPLs and cigarette prices. Methods State MPLs were compiled from primary legal research databases and were linked to cigarette prices constructed from the Nielsen retail scanner data and the self-reported cigarette prices from the Tobacco Use Supplement to the Current Population Survey. Multivariate regression analyses were conducted to examine the association between MPLs and the major components of MPLs and cigarette prices. Results The presence of MPLs was associated with higher cigarette prices. In addition, cigarette prices were higher, above and beyond the higher prices resulting from MPLs, in states that prohibit below-cost combination sales; do not allow any distributing party to use trade discounts to reduce the base cost of cigarettes; prohibit distributing parties from meeting the price of a competitor, and prohibit distributing below-cost coupons to the consumer. Moreover, states that had total markup rates >24% were associated with significantly higher cigarette prices. Conclusions MPLs are an effective way to increase cigarette prices. The impact of MPLs can be further strengthened by imposing greater markup rates and by prohibiting coupon distribution, competitor price matching, and use of below-cost combination sales and trade discounts. PMID:27697948

  11. Economic epidemiology of avian influenza on smallholder poultry farms☆

    PubMed Central

    Boni, Maciej F.; Galvani, Alison P.; Wickelgren, Abraham L.; Malani, Anup

    2013-01-01

    Highly pathogenic avian influenza (HPAI) is often controlled through culling of poultry. Compensating farmers for culled chickens or ducks facilitates effective culling and control of HPAI. However, ensuing price shifts can create incentives that alter the disease dynamics of HPAI. Farmers control certain aspects of the dynamics by setting a farm size, implementing infection control measures, and determining the age at which poultry are sent to market. Their decisions can be influenced by the market price of poultry which can, in turn, be set by policy makers during an HPAI outbreak. Here, we integrate these economic considerations into an epidemiological model in which epidemiological parameters are determined by an outside agent (the farmer) to maximize profit from poultry sales. Our model exhibits a diversity of behaviors which are sensitive to (i) the ability to identify infected poultry, (ii) the average price of infected poultry, (iii) the basic reproductive number of avian influenza, (iv) the effect of culling on the market price of poultry, (v) the effect of market price on farm size, and (vi) the effect of poultry density on disease transmission. We find that under certain market and epidemiological conditions, culling can increase farm size and the total number of HPAI infections. Our model helps to inform the optimization of public health outcomes that best weigh the balance between public health risk and beneficial economic outcomes for farmers. PMID:24161559

  12. Policies and availability of orphan medicines in outpatient care in 24 European countries.

    PubMed

    Sarnola, Kati; Ahonen, Riitta; Martikainen, Jaana E; Timonen, Johanna

    2018-04-09

    To assess pricing and reimbursement policies specific to orphan medicines and the availability and distribution settings of ten recently authorised medicinal products suitable for outpatient care with orphan status and centralised marketing authorisation in Europe, and whether patients receive these products free of charge or have to pay some or all of the costs themselves. Web survey to authorities and representatives of third party payers in the Pharmaceutical Pricing and Reimbursement Information (PPRI) network in April 2016. In most of the 24 countries, special policies were not implemented in the assessment of reimbursement status (22 countries) or in the pricing (20 countries) of orphan medicines. An average of five of the ten recently authorised products per country were available for outpatient care. Products were dispensed from community pharmacies in eight countries and from health care units in five countries. In four countries, both distribution settings were used. When products were dispensed from community pharmacies, patients typically paid some of the price themselves. Products dispensed from health care units were often free of charge for patients. Most European countries had not implemented pricing and reimbursement policies specific to orphan medicines. The availability of orphan products varied between countries. It is important to discuss whether orphan medicines should be considered as a separate group in the reimbursement regulations in order to secure patient access to these medicines.

  13. 3% Yield Increase (HH3), All Energy Crops scenario of the 2016 Billion Ton Report

    DOE Data Explorer

    Davis, Maggie R. [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000181319328); Hellwinkel, Chad [University of Tennessee] (ORCID:0000000173085058); Eaton, Laurence [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000312709626); Langholtz, Matthew H. [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000281537154); Turhollow, Anthony [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000228159350); Brandt, Craig [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)] (ORCID:0000000214707379); Myers, Aaron (ORCID:0000000320373827)

    2016-07-13

    Scientific reason for data generation: to serve as an alternate high-yield scenario for the BT16 volume 1 agricultural scenarios to compare these projections of potential biomass supplies against a reference case (agricultural baseline 10.11578/1337885). The simulation runs from 2015 through 2040; a starting year of 2014 is used but not reported. Date the data set was last modified: 02/02/2016 How each parameter was produced (methods), format, and relationship to other data in the data set: This exogenous price simulations (also referred to as “specified-price” simulations) introduces a farmgate price, and POLYSYS solves for biomass supplies that may be brought to market in response to these prices. In specified-price scenarios, a specified farmgate price is offered constantly in all counties over all years of the simulation. This simulation begins in 2015 with an offered farmgate price for primary crop residues only between 2015 and 2018 and long-term contracts for dedicated crops beginning in 2019. Expected mature energy crop yield grows at a compounding rate of 3% beginning in 2016. The yield growth assumptions are fixed after crops are planted such that yield gains do not apply to crops already planted, but new plantings do take advantage of the gains in expected yield growth. Instruments used: Policy Analysis System –POLYSYS (version POLYS2015_V10_alt_JAN22B), an agricultural policy modeling system of U.S. agriculture (crops and livestock), supplied by the University of Tennessee Institute of Agriculture, Agricultural Policy Analysis Center.

  14. 2% Yield Increase (HH2), All Energy Crops scenario of the 2016 Billion Ton Report

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

    Davis, Maggie R.; Hellwinkel, Chad; Eaton, Laurence

    Scientific reason for data generation: to serve as an alternate high-yield scenario for the BT16 volume 1 agricultural scenarios to compare these projections of potential biomass supplies against a reference case (agricultural baseline 10.11578/1337885). The simulation runs from 2015 through 2040; a starting year of 2014 is used but not reported. Date the data set was last modified: 02/02/2016 How each parameter was produced (methods), format, and relationship to other data in the data set: This exogenous price simulations (also referred to as “specified-price” simulations) introduces a farmgate price, and POLYSYS solves for biomass supplies that may be brought tomore » market in response to these prices. In specified-price scenarios, a specified farmgate price is offered constantly in all counties over all years of the simulation. This simulation begins in 2015 with an offered farmgate price for primary crop residues only between 2015 and 2018 and long-term contracts for dedicated crops beginning in 2019. Expected mature energy crop yield grows at a compounding rate of 2% beginning in 2016. The yield growth assumptions are fixed after crops are planted such that yield gains do not apply to crops already planted, but new plantings do take advantage of the gains in expected yield growth. Instruments used: Policy Analysis System –POLYSYS (version POLYS2015_V10_alt_JAN22B), an agricultural policy modeling system of U.S. agriculture (crops and livestock), supplied by the University of Tennessee Institute of Agriculture, Agricultural Policy Analysis Center.« less

  15. Pricing and reimbursement of pharmaceuticals in Norway.

    PubMed

    Hågå, A; Sverre, J M

    2002-01-01

    Although not a member of the EU, Norway participates in the European-wide regulatory framework for granting marketing authorization to pharmaceutical products. Maximum prices for prescription medicines are determined by the Norwegian Medicines Agency that sets pharmacy purchase prices (based on prices in other Northern European countries) and the Ministry of Health that sets pharmacy margins. A "discount sharing model" encourages pharmacies to perform parallel import and generic switching by allowing them to keep up to 50% of the difference between maximum price and actual price. The costs of pharmaceuticals in Norway are covered in part by the public budget and in part directly by the patient. Over one-half of pharmaceutical costs are borne by the Norwegian National Insurance Administration through the reimbursement scheme; membership in this program is mandatory, and costs are covered through taxes from employers and employees. Over 90% of reimbursed drug sales are accounted for by the established product list for general reimbursement, but supplementary reimbursement can be granted on the basis of individual patient applications and also to ensure that all patients with serious communicable diseases are given adequate treatment without costs to the patient (e.g., HIV/AIDS, tuberculosis). Patient copayment currently amounts to 36% of the total amount of prescriptions; the maximum per prescription is 48 euros, and total within a single calendar year is 180 euros. Copayments for physician visits, radiology examinations, and laboratory tests, can be included in this amount. The overall system is now undergoing reevaluation, as it has been criticized for being complicated and difficult to comprehend for the users.

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

    PubMed

    Puig-Junoy, Jaume

    2010-01-01

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

  17. 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 choice data set, and find that model selection is invariant to prior specification, while model derivatives like willingness-to-pay are notably sensitive to model choice. I also find that the Laplace approximation is remarkably accurate in spite of the potential for nested logit models to have irregular likelihood surfaces.

  18. Predictability of machine learning techniques to forecast the trends of market index prices: Hypothesis testing for the Korean stock markets.

    PubMed

    Pyo, Sujin; Lee, Jaewook; Cha, Mincheol; Jang, Huisu

    2017-01-01

    The prediction of the trends of stocks and index prices is one of the important issues to market participants. Investors have set trading or fiscal strategies based on the trends, and considerable research in various academic fields has been studied to forecast financial markets. This study predicts the trends of the Korea Composite Stock Price Index 200 (KOSPI 200) prices using nonparametric machine learning models: artificial neural network, support vector machines with polynomial and radial basis function kernels. In addition, this study states controversial issues and tests hypotheses about the issues. Accordingly, our results are inconsistent with those of the precedent research, which are generally considered to have high prediction performance. Moreover, Google Trends proved that they are not effective factors in predicting the KOSPI 200 index prices in our frameworks. Furthermore, the ensemble methods did not improve the accuracy of the prediction.

  19. Economic grand rounds: the price is right? Changes in the quantity of services used and prices paid in response to parity.

    PubMed

    Goldman, Howard H; Barry, Colleen L; Normand, Sharon-Lise T; Azzone, Vanessa; Busch, Alisa B; Huskamp, Haiden A

    2012-02-01

    The impact of parity coverage on the quantity of behavioral health services used by enrollees and on the prices of these services was examined in a set of Federal Employees Health Benefit (FEHB) Program plans. After parity implementation, the quantity of services used in the FEHB plans declined in five service categories, compared with plans that did not have parity coverage. The decline was significant for all service types except inpatient care. Because a previous study of the FEHB Program found that total spending on behavioral health services did not increase after parity implementation, it can be inferred that average prices must have increased over the period. The finding of a decline in service use and increase in prices provides an empirical window on what might be expected after implementation of the federal parity law and the parity requirement under the health care reform law.

  20. Predictability of machine learning techniques to forecast the trends of market index prices: Hypothesis testing for the Korean stock markets

    PubMed Central

    Pyo, Sujin; Lee, Jaewook; Cha, Mincheol

    2017-01-01

    The prediction of the trends of stocks and index prices is one of the important issues to market participants. Investors have set trading or fiscal strategies based on the trends, and considerable research in various academic fields has been studied to forecast financial markets. This study predicts the trends of the Korea Composite Stock Price Index 200 (KOSPI 200) prices using nonparametric machine learning models: artificial neural network, support vector machines with polynomial and radial basis function kernels. In addition, this study states controversial issues and tests hypotheses about the issues. Accordingly, our results are inconsistent with those of the precedent research, which are generally considered to have high prediction performance. Moreover, Google Trends proved that they are not effective factors in predicting the KOSPI 200 index prices in our frameworks. Furthermore, the ensemble methods did not improve the accuracy of the prediction. PMID:29136004

  1. Feasibility and attractiveness of indication value-based pricing in key EU countries.

    PubMed

    Flume, Mathias; Bardou, Marc; Capri, Stefano; Sola-Morales, Oriol; Cunningham, David; Levin, Lars-Ake; Touchot, Nicolas

    2016-01-01

    Indication value-based pricing (IBP) has been proposed in the United States as a tool to capture the differential value of drugs across indications or patient groups and is in the early phases of implementation. In Europe, no major country has experimented with IBP or is seriously discussing its use. We assessed how the reimbursement and pricing environment allows for IBP in seven European countries, evaluating both incentives and hurdles. In price setting countries such as France and Germany, the Health Technology Assessment and pricing process already accounts for differences of value across indications. In countries where differential value drives coverage decisions such as the United Kingdom and Sweden, IBP is likely to be used, at least partially, but not in the short-term. Italy is already achieving some form of differential value through managed entry agreements, whereas in Spain the electronic prescription system provides the infrastructure necessary for IBP but other hurdles exist.

  2. Economic impacts of a transition to higher oil prices

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

    Tessmer, Jr, R. G.; Carhart, S. C.; Marcuse, W.

    1978-06-01

    Economic impacts of sharply higher oil and gas prices in the eighties are estimated using a combination of optimization and input-output models. A 1985 Base Case is compared with a High Case in which crude oil and crude natural gas are, respectively, 2.1 and 1.4 times as expensive as in the Base Case. Impacts examined include delivered energy prices and demands, resource consumption, emission levels and costs, aggregate and compositional changes in gross national product, balance of payments, output, employment, and sectoral prices. Methodology is developed for linking models in both quantity and price space for energy service--specific fuel demands.more » A set of energy demand elasticities is derived which is consistent between alternative 1985 cases and between the 1985 cases and an historical year (1967). A framework and methodology are also presented for allocating portions of the DOE Conservation budget according to broad policy objectives and allocation rules.« less

  3. Impact of cigarette minimum price laws on the retail price of cigarettes in the USA.

    PubMed

    Tynan, Michael A; Ribisl, Kurt M; Loomis, Brett R

    2013-05-01

    Cigarette price increases prevent youth initiation, reduce cigarette consumption and increase the number of smokers who quit. Cigarette minimum price laws (MPLs), which typically require cigarette wholesalers and retailers to charge a minimum percentage mark-up for cigarette sales, have been identified as an intervention that can potentially increase cigarette prices. 24 states and the District of Columbia have cigarette MPLs. Using data extracted from SCANTRACK retail scanner data from the Nielsen company, average cigarette prices were calculated for designated market areas in states with and without MPLs in three retail channels: grocery stores, drug stores and convenience stores. Regression models were estimated using the average cigarette pack price in each designated market area and calendar quarter in 2009 as the outcome variable. The average difference in cigarette pack prices are 46 cents in the grocery channel, 29 cents in the drug channel and 13 cents in the convenience channel, with prices being lower in states with MPLs for all three channels. The findings that MPLs do not raise cigarette prices could be the result of a lack of compliance and enforcement by the state or could be attributed to the minimum state mark-up being lower than the free-market mark-up for cigarettes. Rather than require a minimum mark-up, which can be nullified by promotional incentives and discounts, states and countries could strengthen MPLs by setting a simple 'floor price' that is the true minimum price for all cigarettes or could prohibit discounts to consumers and retailers.

  4. How Can Pricing and Reimbursement Policies Improve Affordable Access to Medicines? Lessons Learned from European Countries.

    PubMed

    Vogler, Sabine; Paris, Valérie; Ferrario, Alessandra; Wirtz, Veronika J; de Joncheere, Kees; Schneider, Peter; Pedersen, Hanne Bak; Dedet, Guillaume; Babar, Zaheer-Ud-Din

    2017-06-01

    This article discusses pharmaceutical pricing and reimbursement policies in European countries with regard to their ability to ensure affordable access to medicines. A frequently applied pricing policy is external price referencing. While it provides some benchmark for policy-makers and has been shown to be able to generate savings, it may also contribute to delay in product launch in countries where medicine prices are low. Value-based pricing has been proposed as a policy that promotes access while rewarding useful innovation; however, implementing it has proven quite challenging. For high-priced medicines, managed-entry agreements are increasingly used. These agreements allow policy-makers to manage uncertainty and obtain lower prices. They can also facilitate earlier market access in case of limited evidence about added therapeutic value of the medicine. However, these agreements raise transparency concerns due to the confidentiality clause. Tendering as used in the hospital and offpatent outpatient sectors has been proven to reduce medicine prices but it requires a robust framework and appropriate design with clear strategic goals in order to prevent shortages. These pricing and reimbursement policies are supplemented by the widespread use of Health Technology Assessment to inform decision-making, and by strategies to improve the uptake of generics, and also biosimilars. While European countries have been implementing a set of policy options, there is a lack of thorough impact assessments of several pricing and reimbursement policies on affordable access. Increased cooperation between authorities, experience sharing and improving transparency on price information, including the disclosure of confidential discounts, are opportunities to address current challenges.

  5. Support vector machine for day ahead electricity price forecasting

    NASA Astrophysics Data System (ADS)

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

    2015-05-01

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

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

    PubMed

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

    2010-02-01

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

  7. The Value of Renewable Energy as a Hedge Against Fuel Price Risk: Analytic Contributions from Economic and Finance Theory

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

    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 makingmore » 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 gas in the United States over a relatively brief period. Perhaps of most concern is that this dramatic price increase was largely unforeseen. Figure 2 compares the EIA's natural gas wellhead price forecast from each year's Annual Energy Outlook (AEO) going back to 1985 against the average US wellhead price that actually transpired. As shown, our forecasting abilities have proven rather dismal over time, as over-forecasts made in the late 1980's eventually yielded to under-forecasts that have persisted to this day. This historical experience demonstrates that little weight should be placed on any one forecast of future natural gas prices, and that a broad range of future price conditions ought to be considered in planning and investment decisions. Against this backdrop of high, volatile, and unpredictable natural gas prices, increasing the market penetration of renewable generation such as wind, solar, and geothermal power may provide economic benefits to ratepayers by displacing gas-fired generation. These benefits may manifest themselves in several ways. First, the displacement of natural gas-fired generation by increased renewable generation reduces ratepayer exposure to natural gas price risk--i.e., the risk that future gas prices (and by extension future electricity prices) may end up markedly different than expected. Second, this displacement reduces demand for natural gas among gas-fired generators, which, all else equal, will put downward pressure on natural gas prices. Lower natural gas prices in turn benefit both electric ratepayers and other end-users of natural gas. Using analytic approaches that build upon, yet differ from, the past work of others, including Awerbuch (1993, 1994, 2003), Kahn and Stoft (1993), and Humphreys and McClain (1998), this chapter explores each of these two potential 'hedging' benefits of renewable electricity. Though we do not seek to judge whether these two specific benefits outweigh any incremental cost of renewable energy (relative to conventional fuels), we do seek to quantify the magnitude of these two individual benefits. We also note that these benefits are not unique to renewable electricity: other generation (or demand-side) resources whose costs are not tied to natural gas would provide similar benefits.« less

  8. Influence of provider mix and regulation on primary care services supplied to US patients.

    PubMed

    Richards, Michael R; Polsky, Daniel

    2016-04-01

    Access to medical care and how it differs for various patients remain key policy issues. While existing work has examined clinic structure's influence on productivity, less research has explored the link between provider mix and access for different patient types - which also correspond to different service prices. We exploit experimental data from a large field study spanning 10 US states where trained audit callers were randomly assigned an insurance status and then contacted primary care physician practices seeking new patient appointments. We find clinics with more non-physician clinicians are associated with better access for Medicaid patients and lower prices for office visits; however, these relationships are only found in states granting full practice autonomy to these providers. Substituting more non-physician labor in primary care settings may facilitate greater appointment availability for Medicaid patients, but this likely rests on a favorable policy environment. Relaxing regulations for non-physicians may be an important initiative as US health reforms continue and also relevant to other countries coping with greater demands for medical care and related financial strain.

  9. Single Pricing for Major Items in FMS (Foreign Military Sales).

    DTIC Science & Technology

    1984-01-01

    PERFORMING ORGANIZATION NAME AND ADDRESS 10. PROGRAM ELEMENT. PROJECT. TASK Director, US Army Materiel Systems Analysis AREA& WORK UNIT NUMBERS Activity...study it was found that, though price estimates were believed to be low and imprecise, no work had been done by any of the organizations involved in FMS...other support equipment, ground forces support materiel C medical - dental materiel H aircraft - air materiel K tactical and support vehicles -combat and

  10. Health care prices, the federal budget, and economic growth.

    PubMed

    Monaco, R M; Phelps, J H

    1995-01-01

    Rising health care spending, led by rising prices, has had an enormous impact on the economy, especially on the federal budget. Our work shows that if rapid growth in health care prices continues, under current institutional arrangements, real economic growth and employment will be lower during the next two decades than if health price inflation were somehow reduced. How big the losses are and which sectors bear the brunt of the costs vary depending on how society chooses to fund the federal budget deficit that stems from the rising cost of federal health care programs.

  11. 13 CFR 125.19 - When may a contracting officer set-aside a procurement for SDVO SBCs?

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ... award will be made at fair market prices. This requirement does not preclude a contracting officer from making an award to a small business under the 8(a) BD, HUBZone, SDVO SBC or WOSB Programs. (2... delivery and award will be made at fair market prices. However, after conducting market research, the...

  12. Characteristics of the Romanian energy market

    NASA Astrophysics Data System (ADS)

    Stet, M.

    2017-05-01

    This paper highlights the main characteristics of the energy market in Romania. Starting from the mode of organization and operation of the electricity market, there are revealed prices and tariffs for electricity for different categories of customers and their evolution in time. There are pointed also ways of setting electricity prices and tariffs, taking into account the expenditures actually recorded by economic operators.

  13. Adapting Child Care Market Price Surveys to Support State Quality Initiatives. White Paper

    ERIC Educational Resources Information Center

    Branscome, Kenley

    2016-01-01

    Recent changes to the Child Care and Development Fund (CCDF) require a state's child care market price survey to: (1) be statistically valid and reliable and (2) reflect variations in the cost of child care services by geographic area, type of provider, and age of child. States may use an alternative methodology for setting payment rates--such as…

  14. 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…

  15. 77 FR 76135 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-12-26

    ... 500 Index option series in the pilot: (1) A time series analysis of open interest; and (2) an analysis... issue's total market share value, which is the share price times the number of shares outstanding. These... other series. Strike price intervals would be set no less than 5 points apart. Consistent with existing...

  16. 77 FR 29397 - Order Granting Application of BOX Options Exchange, LLC for a Limited Exemption From Exchange Act...

    Federal Register 2010, 2011, 2012, 2013, 2014

    2012-05-17

    ... for strict price-time priority execution (``Trading System'').\\2\\ The BOX Book and the Exchange Rules...'') as set forth in Exchange Rule 7150 are an exception to the strict price-time priority execution that... in the Application, BOX will operate a fully automated electronic book (``BOX Book'') for orders to...

  17. A fuzzy multi-objective model for capacity allocation and pricing policy of provider in data communication service with different QoS levels

    NASA Astrophysics Data System (ADS)

    Pan, Wei; Wang, Xianjia; Zhong, Yong-guang; Yu, Lean; Jie, Cao; Ran, Lun; Qiao, Han; Wang, Shouyang; Xu, Xianhao

    2012-06-01

    Data communication service has an important influence on e-commerce. The key challenge for the users is, ultimately, to select a suitable provider. However, in this article, we do not focus on this aspect but the viewpoint and decision-making of providers for order allocation and pricing policy when orders exceed service capacity. It is a multiple criteria decision-making problem such as profit and cancellation ratio. Meanwhile, we know realistic situations in which much of the input information is uncertain. Thus, it becomes very complex in a real-life environment. In this situation, fuzzy sets theory is the best tool for solving this problem. Our fuzzy model is formulated in such a way as to simultaneously consider the imprecision of information, price sensitive demand, stochastic variables, cancellation fee and the general membership function. For solving the problem, a new fuzzy programming is developed. Finally, a numerical example is presented to illustrate the proposed method. The results show that it is effective for determining the suitable order set and pricing policy of provider in data communication service with different quality of service (QoS) levels.

  18. A real options approach to clinical faculty salary structure.

    PubMed

    Kahn, Marc J; Long, Hugh W

    2012-01-01

    One can use the option theory model originally developed to price financial opportunities in security markets to analyze many other economic arrangements such as the salary structures of clinical faculty in an academic medical center practice plan. If one views the underlying asset to be the portion (labeled "salary") of the economic value of the collections made for the care provided patients by the physician, then a salary guarantee can be considered a put option provided the physician, the guarantee having value to the physician only when the actual salary earned is less than the salary guarantee. Similarly, within an incentive plan, a salary cap can be thought of as a call option provided to the practice plan since a salary cap only has value to the practice plan when a physician's earnings exceed the cap. Further, based on analysis of prior earnings, the Black-Scholes options pricing model can be used both to price each option and to determine a financially neutral balance between a salary guarantee and a salary cap by equating the prices of the implied put and call options. We suggest that such analysis is superior to empirical methods for setting clinical faculty salary structure in the academic practice plan setting.

  19. Cancer Drugs: An International Comparison of Postlicensing Price Inflation.

    PubMed

    Savage, Philip; Mahmoud, Sarah; Patel, Yogin; Kantarjian, Hagop

    2017-06-01

    The cost of cancer drugs forms a rising proportion of health care budgets worldwide. A number of studies have examined international comparisons of initial cost, but there is little work on postlicensing price increases. To examine this, we compared cancer drug prices at initial sale and subsequent price inflation in the United States and United Kingdom and also reviewed relevant price control mechanisms. The 10 top-selling cancer drugs were selected, and their prices at initial launch and in 2015 were compared. Standard nondiscounted prices were obtained from the relevant annual copies of the RED BOOK and the British National Formulary. At initial marketing, prices were on average 42% higher in the United States than in the United Kingdom. After licensing in the United States, all 10 drugs had price rises averaging an overall annual 8.8% (range, 1.4% to 24.1%) increase. In comparison, in the United Kingdom, six drugs had unchanged prices, two had decreased prices, and two had modest price increases. The overall annual increase in the United Kingdom was 0.24%. Cancer drug prices are rising substantially, both at their initial marketing price and, in the United States, at postlicensing prices. In the United Kingdom, the Pharmaceutical Price Regulation Scheme, an agreement between the government and the pharmaceutical industry, controls health care costs while allowing a return on investment and funds for research. The increasing costs of cancer drugs are approaching the limits of sustainability, and a similar government-industry agreement may allow stability for both health care provision and the pharmaceutical industry in the United States.

  20. Essays in Energy Economics

    NASA Astrophysics Data System (ADS)

    Myers, Erica Catherine

    This dissertation combines research on three topics in applied energy economics. The first two papers investigate whether consumers are informed about and pay attention to energy costs in residential housing. The first paper explores this issue in the rental housing market, while the second paper focuses on housing purchases. The third paper, based on joint work with AJ Bostian and Harrison Fell, uses a laboratory experiment to test the effects of positive versus negative cost shocks on mulit-unit procurement auction performance. The first paper explores whether there are energy cost information asymmetries between landlords and tenants. If tenants are uninformed about energy costs, landlords cannot capitalize energy efficiency investments into higher rents, leading to under-investment. I exploit variation in energy costs in the form of relative heating fuel price changes in the northeastern United States where some apartment units heat with oil and some units heat with natural gas. I develop a search model to describe the matching of landlords and tenants, and derive predictions about the incidence of relative fuel price changes, tenant turnover, and efficiency investments under both symmetric and asymmetric information. My model predicts that, under symmetric full information, these outcomes will not differ depending on whether landlords or tenants pay for energy. In contrast, under asymmetric information, the demand of uninformed tenants for units that heat with oil rather than gas will not shift when oil prices rise relative to gas prices. In a search model, this leads to different market outcomes when landlords, rather than tenants, pay for energy. I find that the capitalization of energy prices into rents, turnover rates, and energy efficiency investments differ between the two payment regimes in ways that are consistent with asymmetric information. The second paper explores whether home buyers are myopic about future energy costs. I exploit variation in energy costs in the form of fuel price changes in Massachusetts where there is an even distribution of homes that heat with oil and homes that heat with natural gas. I find that relative fuel price shifts cause relative changes in housing transaction prices that are consistent with full capitalization of the present value of future energy cost differences under low discount rates. These findings are consistent with home buyers being attentive to energy costs at point of sale and are not consistent with myopia. The third paper uses a laboratory experiment to test the effects of positive versus negative costs shocks on multi-unit procurement auction performance. Output prices tend to respond more quickly to increases in input prices than to decreases in input prices. While standard economic theory would not predict this pattern, it is found in many market settings. We compare outcomes in uniform price and discriminatory (pay-as-bid) auctions for two different kinds of costs shocks. First we look at ''industry wide'' cost shocks where the cost of a common input changes uniformly for all bidders. We also look at idiosyncratic cost shocks, where bidders' individual costs are changing, but the expected Walrasian price remains fixed. We find evidence for a new explanation of asymmetric passthrough in multi-unit procurement auctions related to the bidding incentives in discriminatory auctions. Discriminatory auctions may be worse than uniform at ''tracking'' shifts in underlying costs, leading to price adjustment asymmetries and production inefficiencies.

  1. Neighbourhood variation in the price of soda relative to milk and its association with neighbourhood socio-economic status and race.

    PubMed

    Kern, David M; Auchincloss, Amy H; Ballester, Lance S; Robinson, Lucy F

    2016-12-01

    Soda consumption is high in the USA, especially among minorities and individuals of lower socio-economic status (SES); this may be due to its affordable price in relation to healthier alternatives. The objective of the present study was to examine geospatial variation in price of milk and soda, and the price of milk relative to soda, by neighbourhood SES and proportion of Hispanic and black individuals. Retailer soda and milk prices (n 2987; Information Resources, Inc. Academic Data Set 2004-2011) were linked to census block group sociodemographic characteristics (American Community Survey 2005-2009). Linear hierarchical regression models were used to adjust for confounders. Large chain supermarkets and superstores (n 1743) in forty-one states and 1694 block groups (USA). For equivalent fluid ounces, price of soda on average was 62 % lower than milk ($US 0·23 v. $US 0·63 per serving) and there was high dispersion in milk price across geographic areas. After adjustment for confounding, neighbourhoods with a higher concentration of black and Hispanic individuals tended to have lower soda prices and higher milk prices (-$US 0·001 and +$US 0·007 in price per serving, respectively, for a one quintile increase in black/Hispanic population), while soda and milk both became less expensive as SES decreased (-$US 0·002 and -$US 0·015 in serving price per one sd decrease in SES index, respectively). Neighbourhoods with a higher concentration of blacks and Hispanics may be at greater risk of higher soda consumption due to more affordable prices, in absolute terms and relative to the price of milk.

  2. Real or perceived impediments to minimum pricing of alcohol in Australia: public opinion, the industry and the law.

    PubMed

    Chalmers, Jenny; Carragher, Natacha; Davoren, Sondra; O'Brien, Paula

    2013-11-01

    A burgeoning body of empirical evidence demonstrates that increases in the price of alcohol can reduce per capita alcohol consumption and harmful drinking. Taxes on alcohol can be raised to increase prices, but this strategy can be undermined if the industry absorbs the tax increase and cross-subsidises the price of one alcoholic beverage with other products. Such loss-leading strategies are not possible with minimum pricing. We argue that a minimum (or floor) price for alcohol should be used as a complement to alcohol taxation. Several jurisdictions have already introduced minimum pricing (e.g., Canada, Ukraine) and others are currently investigating pathways to introduce a floor price (e.g., Scotland). Tasked by the Australian government to examine the public interest case for a minimum price, Australia's peak preventative health agency recommended against setting one at the present time. The agency was concerned that there was insufficient Australian specific modelling evidence to make robust estimates of the net benefits. Nonetheless, its initial judgement was that it would be difficult for a minimum price to produce benefits for Australia at the national level. Whilst modelling evidence is certainly warranted to support the introduction of the policy, the development and uptake of policy is influenced by more than just empirical evidence. This article considers three potential impediments to minimum pricing: public opinion and misunderstandings or misgivings about the operation of a minimum price; the strength of alcohol industry objections and measures to undercut the minimum price through discounts and promotions; and legal obstacles including competition and trade law. The analysis of these factors is situated in an Australian context, but has salience internationally. Copyright © 2013 Elsevier B.V. All rights reserved.

  3. Price-Based Acquisition. Issues and Challenges for Defense Department Procurement of Weapon Systems

    DTIC Science & Technology

    2005-01-01

    government without excess non- value -added work. Again, however, the central issue is how can DoD determine whether the price is fair and reasonable without a...document THE ARTS CHILD POLICY CIVIL JUSTICE EDUCATION ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE INTERNATIONAL AFFAIRS NATIONAL SECURITY POPULATION AND...contracting and to providing incentives for contractors so as to achieve the best value in defense procurement. iv Price-Based Acquisition This

  4. Survey of DoD Profit Policy and Further Analysis of the Estimation Theory

    DTIC Science & Technology

    1999-12-01

    CAPITAL ASSET PRICING MODEL 21 E. APPLICATION OF THE CAPM TO WEIGHTED TO THE WEIGHTED GUIDLELINES POLICY 24 1. Pure...Working Capital Employed : 9 4. Facilities Capital 11 C. EFFECTIVENESS OF POLICY 12 III. CAPTIAL ASSET PRICING MODEL OF DOD PROFIT 19 A. OVERVIEW 19...and Rogerson’s approach to the weighted guidelines policy using a capital asset pricing model approach. Both models are examined in the

  5. Possible space weather influence on the Earth wheat prices

    NASA Astrophysics Data System (ADS)

    Pustil'Nik, L.; Yom Din, G.; Dorman, L.

    We present development of our study of possible influence of space weather modulated by cycle of solar activity on the price bursts in the Earth markets In our previous works 1 2 we showed that correspondent response may have place in the specific locations characterized by a high sensitivity of the weather cloudiness in particular to cosmic ray variation b risk zone agriculture c isolated wheat market with limited external supply of agriculture production We showed that in this situation we may wait specific price burst reaction on unfavorable phase of solar activity and space weather what lead to corresponding abnormalities in the local weather and next crop failure We showed that main types of manifestation of this connection are a Distribution of intervals between price bursts must be like to the distribution of intervals between correspondent extremes of solar activity minimums or maximums b price asymmetry between opposite states of solar activity price in the one type of activity state is systematically higher then in the opposite one We showed in our previous publications that this influence in interval distribution is detected with high reliability in Mediaeval England 1250-1700 both for wheat prices and price of consumables basket We showed that for period of Maunder Minimum price asymmetry of wheat prices observed all prices in minimum state of solar activity was higher the prices in the next maximum state We showed later that this price asymmetry had place in 20-th century in USA durum prices too In

  6. An analysis of purchase price of legal and illicit cigarettes in urban retail environments in 14 low- and middle-income countries.

    PubMed

    Brown, Jennifer; Welding, Kevin; Cohen, Joanna E; Cherukupalli, Rajeev; Washington, Carmen; Ferguson, Jacqueline; Clegg Smith, Katherine

    2017-10-01

    To estimate and compare price differences between legal and illicit cigarettes in 14 low- and middle-income countries (LMIC). A cross-sectional census of all packs available on the market was purchased. Cigarette packs were purchased in formal retail settings in three major cities in each of 14 LMIC: Bangladesh, Brazil, China, Egypt, India, Indonesia, Mexico, Pakistan, the Philippines, Russia, Thailand, Turkey, Ukraine and Vietnam. A total of 3240 packs were purchased (range = 58 packs in Egypt to 505 in Russia). Packs were categorized as 'legal' or 'illicit' based on the presence of a health warning label from the country of purchase and existence of a tax stamp; 2468 legal and 772 illicit packs were in the analysis. Descriptive statistics stratified by country, city and neighborhood socio-economic status were used to explore the association between price and legal status of cigarettes. The number of illicit cigarettes in the sample setting was small (n < 5) in five countries (Brazil, Egypt, Indonesia, Mexico, Russia) and excluded from analysis. In the remaining nine countries, the median purchase price of legal cigarettes ranged from US$0.32 in Pakistan (n = 72) to US$3.24 in Turkey (n = 242); median purchase price of illicit cigarettes ranged from US$0.80 in Ukraine (n = 14) to US$3.08 in India (n = 41). The difference in median price between legal and illicit packs as a percentage of the price of legal packs ranged from 32% in Philippines to 455% in Bangladesh. Median purchase price of illicit cigarette packs was higher than that of legal cigarette packs in six countries (Bangladesh, India, Pakistan, Philippines, Thailand, Vietnam). Median purchase price of illicit packs was lower than that of legal packs in Turkey, Ukraine and China. The median purchase price of illicit cigarettes is higher than that of legal cigarette packs in Bangladesh, India, Pakistan, Philippines, Thailand, and Vietnam, Brazil, Egypt, Indonesia, Mexico, Russia appear to have few or no illicit cigarettes for purchase from formal, urban retailers. © 2017 The Authors. Addiction published by John Wiley & Sons Ltd on behalf of Society for the Study of Addiction.

  7. Pricing end-of-life components

    NASA Astrophysics Data System (ADS)

    Vadde, Srikanth; Kamarthi, Sagar V.; Gupta, Surendra M.

    2005-11-01

    The main objective of a product recovery facility (PRF) is to disassemble end-of-life (EOL) products and sell the reclaimed components for reuse and recovered materials in second-hand markets. Variability in the inflow of EOL products and fluctuation in demand for reusable components contribute to the volatility in inventory levels. To stay profitable the PRFs ought to manage their inventory by regulating the price appropriately to minimize holding costs. This work presents two deterministic pricing models for a PRF bounded by environmental regulations. In the first model, the demand is price dependent and in the second, the demand is both price and time dependent. The models are valid for single component with no inventory replenishment sale during the selling horizon . Numerical examples are presented to illustrate the models.

  8. Antiretroviral purchasing and prescription practices in Mexico: constraints, challenges and opportunities.

    PubMed

    Chaumont, Claire; Bautista-Arredondo, Sergio; Calva, Juan José; Bahena-González, Roberto Isaac; Sánchez-Juárez, Gerda Hitz; González de Araujo-Muriel, Arturo; Magis-Rodríguez, Carlos; Hernández-Ávila, Mauricio

    2015-01-01

    This study examines the antiretroviral (ARV) market characteristics for drugs procured and prescribed to Mexico's Social Protection System in Health beneficiaries between 2008 and 2013, and compares them with international data. Procurement information from the National Center for the Prevention and the Control of HIV/AIDS was analyzed to estimate volumes and prices of key ARV. Annual costs were compared with data from the World Health Organization's Global Price Reporting Mechanism for similar countries. Finally, regimens reported in the ARV Drug Management, Logistics and Surveillance System database were reviewed to identify prescription trends and model ARV expenditures until 2018. Results show that the first-line ARV market is concentrated among a small number of patented treatments, in which prescription is clinically adequate, but which prices are higher than those paid by similar countries. The current set of legal and structural options available to policy makers to bring prices down is extremely limited. Different negotiation policies were not successful to decrease ARV high prices in the public health market. The closed list approach had a good impact on prescription quality but was ineffective in reducing prices. The Coordinating Commission for Negotiating the Price of Medicines and other Health Supplies also failed to obtain adequate prices. To maximize purchase efficiency, policy makers should focus on finding long-term legal and political safeguards to counter the high prices imposed by pharmaceutical companies.

  9. Market Share Matters: Evidence Of Insurer And Provider Bargaining Over Prices.

    PubMed

    Roberts, Eric T; Chernew, Michael E; McWilliams, J Michael

    2017-01-01

    Proposed mergers among large US health insurers and growing consolidation among providers have renewed concerns about the effects of market concentration on commercial health care prices. Using multipayer claims for physician services provided in office settings, we estimated that-within the same provider groups-insurers with market shares of 15 percent or more (average: 24.5 percent), for example, negotiated prices for office visits that were 21 percent lower than prices negotiated by insurers with shares of less than 5 percent. Analyses stratified by provider market share suggested that insurers require greater market shares to negotiate lower prices from large provider groups than they do when negotiating with smaller provider groups. For example, office visit prices for small practices were $88, $72, and $70, for insurers with market shares of <5 percent, ≥5 to <15 percent, and ≥15 percent, respectively, whereas prices for large provider groups were $97, $86, and $76, exhibiting a continued decrease across higher insurer-market-share categories. These results suggest that mergers of health insurers could lower the prices paid to providers, particularly providers large enough to obtain higher prices from insurers with modest market shares. Continued monitoring will be important for determining the net effects of the countervailing trends of insurer and provider consolidation on the affordability of health care. Project HOPE—The People-to-People Health Foundation, Inc.

  10. Nonlinear Pricing in Drug Benefits and Medication Use: The Case of Statin Compliance in Medicare Part D

    PubMed Central

    Jung, Kyoungrae; Feldman, Roger; McBean, A Marshall

    2014-01-01

    Objective To examine how enrollees' statin compliance responds to expected prices in Medicare Part D, which features a nonlinear price schedule due to a coverage gap. Data Sources/Study Setting Prescription Drug Event data for a 5 percent random sample of Medicare Advantage Prescription Drug Plan enrollees in 2008 who did not receive a low-income subsidy. Study Design We analyze statin compliance prior to the coverage gap, where the “effective price” is higher than the actual copayment for drugs because consumers anticipate that more spending will make them more likely to reach the gap. We construct each enrollee's effective price as her expected price at the end of the year, which is the weighted average between pre-gap and in-gap copayments with the weight being the predicted probability of hitting the gap. Compliance is defined as at least 80 percent of days covered. Principal Findings Part D enrollees' pre-gap statin compliance decreases by 3.7–4.7 percentage points for a $10 increase in the effective price. Conclusion The presence of a coverage gap decreases statin compliance prior to the gap, suggesting that incorporating expected future prices is important to assess the full impact of cost sharing on drug compliance under nonlinear price schedules. PMID:24354765

  11. How firms set prices for medical materials: a multi-country study.

    PubMed

    Ide, Hiroo; Mollahaliloglu, Salih

    2009-09-01

    This study presents a comparison of medical material prices, discusses why differences exist, and examines methods for comparing prices. Market prices for drug-eluting stents (DES), non-drug-eluting stents (non-DES), and percutaneous transluminal coronary angioplasty (PTCA) catheters were collected from five countries: the United States, Japan, Korea, Turkey, and Thailand. To compare prices, three adjustment methods were used: currency exchange rates, purchasing power parity (PPP), and gross domestic product (GDP) per capita. The ratios of medical material prices compared with those in the United States were higher in Japan (from 1.4 for DES to 5.0 for PTCA catheters) and Korea (from 1.2 for DES to 4.0 for PTCA catheters), and lower in Turkey (from 0.8 for non-DES to 1.4 for DES) and Thailand (from 0.5 for non-DES to 1.3 for PTCA catheters). The PPP-adjusted ratios changed slightly for Japan, Korea, and Turkey. When the prices were adjusted by GDP per capita, the ratios were much higher. Comparing prices using currency exchange rates or PPP is applicable only between countries with stable economic relations; adjustment by GDP per capita reflects the actual burden. Further study is needed to fully elucidate the factors influencing the global medical material market.

  12. New Local, National and Regional Cereal Price Indices for Improved Identification of Food Insecurity

    NASA Technical Reports Server (NTRS)

    Brown, Molly E.; Tondel, Fabien; Thorne, Jennifer A.; Essam, Timothy; Mann, Bristol F.; Stabler, Blake; Eilerts, Gary

    2011-01-01

    Large price increases over a short time period can be indicative of a deteriorating food security situation. Food price indices developed by the United Nations Food and Agriculture Organization (FAO) are used to monitor food price trends at a global level, but largely reflect supply and demand conditions in export markets. However, reporting by the United States Agency for International Development (USAID)'s Famine Early Warning Systems Network (FEWS NET) indicates that staple cereal prices in many markets of the developing world, especially in surplus-producing areas, often have a delayed and variable response to international export market price trends. Here we present new price indices compiled for improved food security monitoring and assessment, and specifically for monitoring conditions of food access across diverse food insecure regions. We found that cereal price indices constructed using market prices within a food insecure region showed significant differences from the international cereals price, and had a variable price dispersion across markets within each marketshed. Using satellite-derived remote sensing information that estimates local production and the FAO Cereals Index as predictors, we were able to forecast movements of the local or national price indices in the remote, arid and semi-arid countries of the 38 countries examined. This work supports the need for improved decision-making about targeted aid and humanitarian relief, by providing earlier early warning of food security crises.

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

    PubMed

    Rizzo, John A; Zeckhauser, Richard

    2009-09-01

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

  14. The house of the future

    ScienceCinema

    None

    2017-12-09

    Learn what it will take to create tomorrow's net-zero energy home as scientists reveal the secrets of cool roofs, smart windows, and computer-driven energy control systems. The net-zero energy home: Scientists are working to make tomorrow's homes more than just energy efficient -- they want them to be zero energy. Iain Walker, a scientist in the Lab's Energy Performance of Buildings Group, will discuss what it takes to develop net-zero energy houses that generate as much energy as they use through highly aggressive energy efficiency and on-site renewable energy generation. Talking back to the grid: Imagine programming your house to use less energy if the electricity grid is full or price are high. Mary Ann Piette, deputy director of Berkeley Lab's building technology department and director of the Lab's Demand Response Research Center, will discuss how new technologies are enabling buildings to listen to the grid and automatically change their thermostat settings or lighting loads, among other demands, in response to fluctuating electricity prices. The networked (and energy efficient) house: In the future, your home's lights, climate control devices, computers, windows, and appliances could be controlled via a sophisticated digital network. If it's plugged in, it'll be connected. Bruce Nordman, an energy scientist in Berkeley Lab's Energy End-Use Forecasting group, will discuss how he and other scientists are working to ensure these networks help homeowners save energy.

  15. The house of the future

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

    None

    Learn what it will take to create tomorrow's net-zero energy home as scientists reveal the secrets of cool roofs, smart windows, and computer-driven energy control systems. The net-zero energy home: Scientists are working to make tomorrow's homes more than just energy efficient -- they want them to be zero energy. Iain Walker, a scientist in the Lab's Energy Performance of Buildings Group, will discuss what it takes to develop net-zero energy houses that generate as much energy as they use through highly aggressive energy efficiency and on-site renewable energy generation. Talking back to the grid: Imagine programming your house tomore » use less energy if the electricity grid is full or price are high. Mary Ann Piette, deputy director of Berkeley Lab's building technology department and director of the Lab's Demand Response Research Center, will discuss how new technologies are enabling buildings to listen to the grid and automatically change their thermostat settings or lighting loads, among other demands, in response to fluctuating electricity prices. The networked (and energy efficient) house: In the future, your home's lights, climate control devices, computers, windows, and appliances could be controlled via a sophisticated digital network. If it's plugged in, it'll be connected. Bruce Nordman, an energy scientist in Berkeley Lab's Energy End-Use Forecasting group, will discuss how he and other scientists are working to ensure these networks help homeowners save energy.« less

  16. Accurate market price formation model with both supply-demand and trend-following for global food prices providing policy recommendations

    PubMed Central

    Lagi, Marco; Bar-Yam, Yavni; Bertrand, Karla Z.; Bar-Yam, Yaneer

    2015-01-01

    Recent increases in basic food prices are severely affecting vulnerable populations worldwide. Proposed causes such as shortages of grain due to adverse weather, increasing meat consumption in China and India, conversion of corn to ethanol in the United States, and investor speculation on commodity markets lead to widely differing implications for policy. A lack of clarity about which factors are responsible reinforces policy inaction. Here, for the first time to our knowledge, we construct a dynamic model that quantitatively agrees with food prices. The results show that the dominant causes of price increases are investor speculation and ethanol conversion. Models that just treat supply and demand are not consistent with the actual price dynamics. The two sharp peaks in 2007/2008 and 2010/2011 are specifically due to investor speculation, whereas an underlying upward trend is due to increasing demand from ethanol conversion. The model includes investor trend following as well as shifting between commodities, equities, and bonds to take advantage of increased expected returns. Claims that speculators cannot influence grain prices are shown to be invalid by direct analysis of price-setting practices of granaries. Both causes of price increase, speculative investment and ethanol conversion, are promoted by recent regulatory changes—deregulation of the commodity markets, and policies promoting the conversion of corn to ethanol. Rapid action is needed to reduce the impacts of the price increases on global hunger. PMID:26504216

  17. Accurate market price formation model with both supply-demand and trend-following for global food prices providing policy recommendations.

    PubMed

    Lagi, Marco; Bar-Yam, Yavni; Bertrand, Karla Z; Bar-Yam, Yaneer

    2015-11-10

    Recent increases in basic food prices are severely affecting vulnerable populations worldwide. Proposed causes such as shortages of grain due to adverse weather, increasing meat consumption in China and India, conversion of corn to ethanol in the United States, and investor speculation on commodity markets lead to widely differing implications for policy. A lack of clarity about which factors are responsible reinforces policy inaction. Here, for the first time to our knowledge, we construct a dynamic model that quantitatively agrees with food prices. The results show that the dominant causes of price increases are investor speculation and ethanol conversion. Models that just treat supply and demand are not consistent with the actual price dynamics. The two sharp peaks in 2007/2008 and 2010/2011 are specifically due to investor speculation, whereas an underlying upward trend is due to increasing demand from ethanol conversion. The model includes investor trend following as well as shifting between commodities, equities, and bonds to take advantage of increased expected returns. Claims that speculators cannot influence grain prices are shown to be invalid by direct analysis of price-setting practices of granaries. Both causes of price increase, speculative investment and ethanol conversion, are promoted by recent regulatory changes-deregulation of the commodity markets, and policies promoting the conversion of corn to ethanol. Rapid action is needed to reduce the impacts of the price increases on global hunger.

  18. Why Are Diabetes Medications So Expensive and What Can Be Done to Control Their Cost?

    PubMed

    McEwen, Laura N; Casagrande, Sarah Stark; Kuo, Shihchen; Herman, William H

    2017-09-01

    The purposes of this study were to describe how medication prices are established, to explain why antihyperglycemic medications have become so expensive, to show trends in expenditures for antihyperglycemic medications, and to highlight strategies to control expenditures in the USA. In the U.S., pharmaceutical manufacturers set the prices for new products. Between 2002 and 2012, expenditures for antihyperglycemic medications increased from $10 billion to $22 billion. This increase was primarily driven by expenditures for insulin which increased sixfold. The increase in insulin expenditures may be attributed to several factors: the shift from inexpensive beef and pork insulins to more expensive genetically engineered human insulins and insulin analogs, dramatic price increases for the available insulins, physician prescribing practices, policies that limit payers' abilities to negotiate prices, and nontransparent negotiation of rebates and discounts. The costs of antihyperglycemic medications, especially insulin, have become a barrier to diabetes treatment. While clinical interventions to shift physician prescribing practices towards lower cost drugs may provide some relief, we will ultimately need policy interventions such as more stringent requirements for patent exclusivity, greater transparency in medication pricing, greater opportunities for price negotiation, and outcomes-based pricing models to control the costs of antihyperglycemic medications.

  19. An equation of state for the financial markets: connecting order flow to price formation.

    NASA Astrophysics Data System (ADS)

    Gerig, Austin; Mike, Szabolcs; Doyne Farmer, J.

    2006-03-01

    Many of the peculiarities of price formation in the financial marketplace can be understood as the result of a few regularities in the placement and removal of trading orders. Based on a large data set from the London Stock Exchange we show that the distribution of prices where people place orders to buy or sell follows a surprisingly simple functional form that depends on the current best prices. In addition, whether or not an order is to buy or sell is described by a long-memory process, and the cancellation of orders can be described by a few simple rules. When these results are combined, simply by following the rules of the continuous double auction, the resulting simulation model produces good predictions for the distribution of price changes and transaction costs without any adjustment of parameters. We use the model to empirically derive equations of state relating order flow and the statistical properties of prices. In contrast to previous conjectures, our results demonstrate that these distributions are not universal, but rather depend on parameters of individual markets. They also show that factors other than supply and demand play an important role in price formation.

  20. [Competition between branded and generic drugs in Austria: evidence from the market for ACE inhibitors].

    PubMed

    Mahlich, J C; Stadler, I

    2012-01-01

    The market for pharmaceuticals in Austria is highly regulated and manufacturers cannot set prices freely after patent expiration of the pioneer drug. We wanted to examine the effect of price regulation on price competition between branded and generic drugs in Austria. We examined the Austrian market for ACE inhibitors and describe competitive dynamics by means of 6 indices. We compared our results with those of Grabowski and Vernon who studied the US market. According to our analysis the competition amongst the producers of generic drugs is not great and consequently, compared to the USA, over time the prices for generic products decrease less and their market share increases less. This is due to a market-oriented system in the USA which waives most regulatory provisions. Our conclusions are in line with the findings by Danzon und Chao (2000) who argue that in a price-regulated market competitive dynamics are less strongly developed. From a politico-economic view, the necessity of price regulations in the pharmaceutical market seems questionable, as price regulations generally also cause other negative effects, such as distorted economic incentives for research and development investments. © Georg Thieme Verlag KG Stuttgart · New York.

  1. 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 on the pharmaceutical industry's investments.

  2. Prices and mark-ups on antimalarials: evidence from nationally representative studies in six malaria-endemic countries

    PubMed Central

    Palafox, Benjamin; Patouillard, Edith; Tougher, Sarah; Goodman, Catherine; Hanson, Kara; Kleinschmidt, Immo; Torres Rueda, Sergio; Kiefer, Sabine; O’Connell, Kate; Zinsou, Cyprien; Phok, Sochea; Akulayi, Louis; Arogundade, Ekundayo; Buyungo, Peter; Mpasela, Felton; Poyer, Stephen; Chavasse, Desmond

    2016-01-01

    The private for-profit sector is an important source of treatment for malaria. However, private patients face high prices for the recommended treatment for uncomplicated malaria, artemisinin combination therapies (ACTs), which makes them more likely to receive cheaper, less effective non-artemisinin therapies (nATs). This study seeks to better understand consumer antimalarial prices by documenting and exploring the pricing behaviour of retailers and wholesalers. Using data collected in 2009–10, we present survey estimates of antimalarial retail prices, and wholesale- and retail-level price mark-ups from six countries (Benin, Cambodia, the Democratic Republic of Congo, Nigeria, Uganda and Zambia), along with qualitative findings on factors affecting pricing decisions. Retail prices were lowest for nATs, followed by ACTs and artemisinin monotherapies (AMTs). Retailers applied the highest percentage mark-ups on nATs (range: 40% in Nigeria to 100% in Cambodia and Zambia), whereas mark-ups on ACTs (range: 22% in Nigeria to 71% in Zambia) and AMTs (range: 22% in Nigeria to 50% in Uganda) were similar in magnitude, but lower than those applied to nATs. Wholesale mark-ups were generally lower than those at retail level, and were similar across antimalarial categories in most countries. When setting prices wholesalers and retailers commonly considered supplier prices, prevailing market prices, product availability, product characteristics and the costs related to transporting goods, staff salaries and maintaining a property. Price discounts were regularly used to encourage sales and were sometimes used by wholesalers to reward long-term customers. Pricing constraints existed only in Benin where wholesaler and retailer mark-ups are regulated; however, unlicensed drug vendors based in open-air markets did not adhere to the pricing regime. These findings indicate that mark-ups on antimalarials are reasonable. Therefore, improving ACT affordability would be most readily achieved by interventions that reduce commodity prices for retailers, such as ACT subsidies, pooled purchasing mechanisms and cost-effective strategies to increase the distribution coverage area of wholesalers. PMID:25944705

  3. Returns on equity for not-for-profit hospitals.

    PubMed

    Pauly, M V

    1986-04-01

    This study examines the circumstances in which a large third-party payer or regulator might want to set hospital prices to yield a positive rate of return on equity capital. The level of return is shown to depend on the willingness of donors to make funds available in the community relative to the (derived) demand for capital to produce output. It is shown that the appropriate price might well be set to yield a zero or below-market return, and that the return to not-for-profit firms should generally be less than that to for-profit firms, if for-profit firms are to be active in the market.

  4. Returns on equity for not-for-profit hospitals.

    PubMed Central

    Pauly, M V

    1986-01-01

    This study examines the circumstances in which a large third-party payer or regulator might want to set hospital prices to yield a positive rate of return on equity capital. The level of return is shown to depend on the willingness of donors to make funds available in the community relative to the (derived) demand for capital to produce output. It is shown that the appropriate price might well be set to yield a zero or below-market return, and that the return to not-for-profit firms should generally be less than that to for-profit firms, if for-profit firms are to be active in the market. PMID:3086256

  5. Economics of regulation: externalities and institutional issues

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

    Kahn, A.E.

    In two previous articles, ''Can An Economist Find Happiness Setting Public Utility Rates'' and ''Applications of Economics to Public Utility Rate Structures'', appearing in Public Utilities Fortnightly January 5 and January 19, 1978, respectively, the author summarized his experiences in applying elementary economic principles to the regulation of public utilities in New York state, specifically to setting utility rates. In this article, Mr. Kahn discusses second-best considerations and externalities. He points out that opponents of marginal-cost pricing--particularly of electricity--have in recent years become enthusiastic exponents of the theory of second best. What is required, he feels, is an examination ofmore » how other, most directly pertinent prices in the economy do actually stand relative to their marginal costs. These would be the prices of goods and services for which electricity is a substitute; with which electricity is used as a complement; in whose supply electricity is an input; and which themselves constitute inputs in the production and delivery of electricity. Oil and gas are more complicated cases. External costs, such as abatement requirements, are considered when setting rates. The author points out other regulatory issues to be considered in decision making to conclude this series of articles. (MCW)« less

  6. Engineering and Design: Civil Works Cost Engineering

    DTIC Science & Technology

    1994-03-31

    labor cost requirements are broken into tasks of work. Each task is usually performd by a labor crew. Crews may vary in size and mix of skills. The...requested in advance of the expected purchase date. Suppliers are reluctant to guarantee future pricw and ofien will only quote current prices. It may be...unit cost is the overhead cost for the item. g. Sources for Pricing. The Cost Engineer must rely on judgement, historical data, and current labor market

  7. Gas-kinetic theory and Boltzmann equation of share price within an equilibrium market hypothesis and ad hoc strategy

    NASA Astrophysics Data System (ADS)

    Ausloos, M.

    2000-09-01

    Recent observations have indicated that the traditional equilibrium market hypothesis (EMH; also known as Efficient Market Hypothesis) is unrealistic. It is shown here that it is the analog of a Boltzmann equation in physics, thus having some bad properties of mean-field approximations like a Gaussian distribution of price fluctuations. A kinetic theory for prices can be simply derived, considering in a first approach that market actors have all identical relaxation times, and solved within a Chapman-Enskog like formalism. In closing the set of equations, (i) an equation of state with a pressure and (ii) the equilibrium (isothermal) equation for the price (taken as the order parameter) of a stock as a function of the volume of money available are obtained.

  8. [The French medecine pricing committee and the medicine economic policy: Rules and competences].

    PubMed

    Giorgi, D

    2017-09-01

    The French medicine pricing committee (CEPS), a governmental and inter-institutional body exercises essential competences for the regulation of the economy of the reimbursable drugs in France. It provides a good example of administered price regulation. It also supervises the proper use of products (control of promotion, conventional control of sales volumes). Finally, it regulates the annual envelope of drug expenditures by means of discounts paid by pharmaceutical companies. The article presents the legal criteria and the doctrine of price setting used in France. It details the types of market access contracts concluded by the CEPS. It specifies the conditions governing the annual envelope of expenditures on reimbursable medicines. Copyright © 2017 Académie Nationale de Pharmacie. Published by Elsevier Masson SAS. All rights reserved.

  9. Correlation analysis of the Korean stock market: Revisited to consider the influence of foreign exchange rate

    NASA Astrophysics Data System (ADS)

    Jo, Sang Kyun; Kim, Min Jae; Lim, Kyuseong; Kim, Soo Yong

    2018-02-01

    We investigated the effect of foreign exchange rate in a correlation analysis of the Korean stock market using both random matrix theory and minimum spanning tree. We collected data sets which were divided into two types of stock price, the original stock price in Korean Won and the price converted into US dollars at contemporary foreign exchange rates. Comparing the random matrix theory based on the two different prices, a few particular sectors exhibited substantial differences while other sectors changed little. The particular sectors were closely related to economic circumstances and the influence of foreign financial markets during that period. The method introduced in this paper offers a way to pinpoint the effect of exchange rate on an emerging stock market.

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

    DTIC Science & Technology

    1979-09-01

    barriers to entry into the weapons production indistry. This practice also reduces the scope of price-compcLtive reprocurement. The implicit tying of R&D... removaL . ’For the serrinal work in this area see H. Leibenstein, "Allocative Efficiency vs. ,h-Efficiency," American Econcmic Review (June 1966). I1 3...If the use of price competition to assign production removes any extra-normal returns earned under sole-source pro- curement policies, firms will no

  11. 47 CFR 69.123 - Density pricing zones for special access and switched transport.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ..., calculated pursuant to the methodology set forth in § 69.725. (2) Such a system of pricing zones shall be....3(e)(7), in study areas in which a telephone company offers a cross-connect, as described in § 69... one of the locations between which the service is offered. (d) Notwithstanding § 69.3(e)(7), in study...

  12. 47 CFR 69.123 - Density pricing zones for special access and switched transport.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ..., calculated pursuant to the methodology set forth in § 69.725. (2) Such a system of pricing zones shall be....3(e)(7), in study areas in which a telephone company offers a cross-connect, as described in § 69... one of the locations between which the service is offered. (d) Notwithstanding § 69.3(e)(7), in study...

  13. 47 CFR 69.123 - Density pricing zones for special access and switched transport.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ..., calculated pursuant to the methodology set forth in § 69.725. (2) Such a system of pricing zones shall be....3(e)(7), in study areas in which a telephone company offers a cross-connect, as described in § 69... one of the locations between which the service is offered. (d) Notwithstanding § 69.3(e)(7), in study...

  14. 13 CFR 126.607 - When must a contracting officer set aside a requirement for qualified HUBZone SBCs?

    Code of Federal Regulations, 2014 CFR

    2014-01-01

    ... quality and delivery and award will be made at fair market prices. This requirement does not preclude a contracting officer from making an award to a small business under the 8(a) BD, HUBZone, SDVO SBC or WOSB... terms of quality and delivery and award will be made at fair market prices. However, after conducting...

  15. 13 CFR 126.607 - When must a contracting officer set aside a requirement for qualified HUBZone SBCs?

    Code of Federal Regulations, 2013 CFR

    2013-01-01

    ... quality and delivery and award will be made at fair market prices. This requirement does not preclude a contracting officer from making an award to a small business under the 8(a) BD, HUBZone, SDVO SBC or WOSB... terms of quality and delivery and award will be made at fair market prices. However, after conducting...

  16. Challenges of Implementing Free and Open Source Software (FOSS): Evidence from the Indian Educational Setting

    ERIC Educational Resources Information Center

    Thankachan, Briju; Moore, David Richard

    2017-01-01

    The use of Free and Open Source Software (FOSS), a subset of Information and Communication Technology (ICT), can reduce the cost of purchasing software. Despite the benefit in the initial purchase price of software, deploying software requires total cost that goes beyond the initial purchase price. Total cost is a silent issue of FOSS and can only…

  17. Are stock prices too volatile to be justified by the dividend discount model?

    NASA Astrophysics Data System (ADS)

    Akdeniz, Levent; Salih, Aslıhan Altay; Ok, Süleyman Tuluğ

    2007-03-01

    This study investigates excess stock price volatility using the variance bound framework of LeRoy and Porter [The present-value relation: tests based on implied variance bounds, Econometrica 49 (1981) 555-574] and of Shiller [Do stock prices move too much to be justified by subsequent changes in dividends? Am. Econ. Rev. 71 (1981) 421-436.]. The conditional variance bound relationship is examined using cross-sectional data simulated from the general equilibrium asset pricing model of Brock [Asset prices in a production economy, in: J.J. McCall (Ed.), The Economics of Information and Uncertainty, University of Chicago Press, Chicago (for N.B.E.R.), 1982]. Results show that the conditional variance bounds hold, hence, our hypothesis of the validity of the dividend discount model cannot be rejected. Moreover, in our setting, markets are efficient and stock prices are neither affected by herd psychology nor by the outcome of noise trading by naive investors; thus, we are able to control for market efficiency. Consequently, we show that one cannot infer any conclusions about market efficiency from the unconditional variance bounds tests.

  18. 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

  19. Value based pricing, research and development, and patient access schemes. Will the United Kingdom get it right or wrong?

    PubMed Central

    Towse, Adrian

    2010-01-01

    The National Health Service (NHS) should reward innovation it values. This will enable the NHS and the United Kingdom (UK) economy to benefit and impact positively on the Research and Development (R&D) decision making of companies. The National Institute for Health and Clinical Excellence (NICE) currently seeks to do this on behalf of the NHS. Yet the Office of Fair Trading proposals for Value Based Pricing add price setting powers – initially for the Department of Health (DH) and then for NICE. This introduces an additional substantial uncertainty that will impact on R&D and, conditional on R&D proceeding, on launch (or not) in the UK. Instead of adding to uncertainty the institutional arrangements for assessing value should seek to be predictable and science based, building on NICE's current arrangements. The real challenge is to increase understanding of the underlying cost-effectiveness of the technology itself by collecting evidence alongside use. The 2009 Pharmaceutical Price Regulation Scheme sought to help do this with Flexible Pricing (FP) and Patient Access Schemes (PASs). The PASs to date have increased access to medicines, but no schemes proposed to date have yet helped to tackle outcomes uncertainty. The 2010 Innovation Pass can also be seen as a form of ‘coverage with evidence development.’ The NHS is understandably concerned about the costs of running such evidence collection schemes. Enabling the NHS to deliver on such schemes will impact favourably on R&D decisions. Increasing the uncertainty in the UK NHS market through government price setting will reduce incentives for R&D and for early UK launch. PMID:20716236

  20. Value based pricing, research and development, and patient access schemes. Will the United Kingdom get it right or wrong?

    PubMed

    Towse, Adrian

    2010-09-01

    The National Health Service (NHS) should reward innovation it values. This will enable the NHS and the United Kingdom (UK) economy to benefit and impact positively on the Research and Development (R&D) decision making of companies. The National Institute for Health and Clinical Excellence (NICE) currently seeks to do this on behalf of the NHS. Yet the Office of Fair Trading proposals for Value Based Pricing add price setting powers--initially for the Department of Health (DH) and then for NICE. This introduces an additional substantial uncertainty that will impact on R&D and, conditional on R&D proceeding, on launch (or not) in the UK. Instead of adding to uncertainty the institutional arrangements for assessing value should seek to be predictable and science based, building on NICE's current arrangements. The real challenge is to increase understanding of the underlying cost-effectiveness of the technology itself by collecting evidence alongside use. The 2009 Pharmaceutical Price Regulation Scheme sought to help do this with Flexible Pricing (FP) and Patient Access Schemes (PASs). The PASs to date have increased access to medicines, but no schemes proposed to date have yet helped to tackle outcomes uncertainty. The 2010 Innovation Pass can also be seen as a form of 'coverage with evidence development.' The NHS is understandably concerned about the costs of running such evidence collection schemes. Enabling the NHS to deliver on such schemes will impact favourably on R&D decisions. Increasing the uncertainty in the UK NHS market through government price setting will reduce incentives for R&D and for early UK launch.

  1. Cryptocurrency price drivers: Wavelet coherence analysis revisited

    PubMed Central

    2018-01-01

    Cryptocurrencies have experienced recent surges in interest and price. It has been discovered that there are time intervals where cryptocurrency prices and certain online and social media factors appear related. In addition it has been noted that cryptocurrencies are prone to experience intervals of bubble-like price growth. The hypothesis investigated here is that relationships between online factors and price are dependent on market regime. In this paper, wavelet coherence is used to study co-movement between a cryptocurrency price and its related factors, for a number of examples. This is used alongside a well-known test for financial asset bubbles to explore whether relationships change dependent on regime. The primary finding of this work is that medium-term positive correlations between online factors and price strengthen significantly during bubble-like regimes of the price series; this explains why these relationships have previously been seen to appear and disappear over time. A secondary finding is that short-term relationships between the chosen factors and price appear to be caused by particular market events (such as hacks / security breaches), and are not consistent from one time interval to another in the effect of the factor upon the price. In addition, for the first time, wavelet coherence is used to explore the relationships between different cryptocurrencies. PMID:29668765

  2. Cryptocurrency price drivers: Wavelet coherence analysis revisited.

    PubMed

    Phillips, Ross C; Gorse, Denise

    2018-01-01

    Cryptocurrencies have experienced recent surges in interest and price. It has been discovered that there are time intervals where cryptocurrency prices and certain online and social media factors appear related. In addition it has been noted that cryptocurrencies are prone to experience intervals of bubble-like price growth. The hypothesis investigated here is that relationships between online factors and price are dependent on market regime. In this paper, wavelet coherence is used to study co-movement between a cryptocurrency price and its related factors, for a number of examples. This is used alongside a well-known test for financial asset bubbles to explore whether relationships change dependent on regime. The primary finding of this work is that medium-term positive correlations between online factors and price strengthen significantly during bubble-like regimes of the price series; this explains why these relationships have previously been seen to appear and disappear over time. A secondary finding is that short-term relationships between the chosen factors and price appear to be caused by particular market events (such as hacks / security breaches), and are not consistent from one time interval to another in the effect of the factor upon the price. In addition, for the first time, wavelet coherence is used to explore the relationships between different cryptocurrencies.

  3. An exotic long-term pattern in stock price dynamics.

    PubMed

    Wei, Jianrong; Huang, Jiping

    2012-01-01

    To accurately predict the movement of stock prices is always of both academic importance and practical value. So far, a lot of research has been reported to help understand the behavior of stock prices. However, some of the existing theories tend to render us the belief that the time series of stock prices are unpredictable on a long-term timescale. The question arises whether the long-term predictability exists in stock price dynamics. In this work, we analyze the price reversals in the US stock market and the Chinese stock market on the basis of a renormalization method. The price reversals are divided into two types: retracements (the downward trends after upward trends) and rebounds (the upward trends after downward trends), of which the intensities are described by dimensionless quantities, R(t) and R(b), respectively. We reveal that for both mature and emerging markets, the distribution of either retracements R(t) or rebounds R(b) shows two characteristic values, 0.335 and 0.665, both of which are robust over the long term. The methodology presented here provides a way to quantify the stock price reversals. Our findings strongly support the existence of the long-term predictability in stock price dynamics, and may offer a hint on how to predict the long-term movement of stock prices.

  4. Assessing the economic impacts of drought from the perspective of profit loss rate: a case study of the sugar industry in China

    NASA Astrophysics Data System (ADS)

    Wang, Y.; Lin, L.; Chen, H.

    2015-07-01

    Natural disasters have enormous impacts on human society, especially on the development of the economy. To support decision-making in mitigation and adaption to natural disasters, assessment of economic impacts is fundamental and of great significance. Based on a review of the literature on economic impact evaluation, this paper proposes a new assessment model of the economic impacts of droughts by using the sugar industry in China as a case study, which focuses on the generation and transfer of economic impacts along a simple value chain involving only sugarcane growers and a sugar-producing company. A perspective of profit loss rate is applied to scale economic impact. By using "with and without" analysis, profit loss is defined as the difference in profits between disaster-hit and disaster-free scenarios. To calculate profit, analysis of a time series of sugar price is applied. With the support of a linear regression model, an endogenous trend in sugar price is identified and the time series of sugar price "without" disaster is obtained, using an autoregressive error model to separate impact of disasters from the internal trend in sugar price. Unlike the settings in other assessment models, representative sugar prices, which represent value level in disaster-free conditions and disaster-hit conditions, are integrated from a long time series that covers the whole period of drought. As a result, it is found that in a rigid farming contract, sugarcane growers suffer far more than the sugar company when impacted by severe drought, which may promote reflections among various economic bodies on economic equality related to the occurrence of natural disasters. Further, sensitivity analysis of the model built reveals that sugarcane purchase price has a significant influence on profit loss rate, which implies that setting a proper sugarcane purchase price would be an effective way of realizing economic equality in future practice of contract farming.

  5. Long-range correlations and asymmetry in the Bitcoin market

    NASA Astrophysics Data System (ADS)

    Alvarez-Ramirez, J.; Rodriguez, E.; Ibarra-Valdez, C.

    2018-02-01

    This work studies long-range correlations and informational efficiency of the Bitcoin market for the period from June 30, 2013 to June 3rd, 2017. To this end, the detrended fluctuation analysis (DFA) was implemented over sliding windows to estimate long-range correlations for price returns. It was found that the Bitcoin market exhibits periods of efficiency alternating with periods where the price dynamics are driven by anti-persistence. The pattern is replicated by prices samples at day, hour and second frequencies. The Bitcoin market also presents asymmetric correlations with respect to increasing and decreasing price trending, with the former trend linked to anti-persistence of returns dynamics.

  6. The capital-asset-pricing model and arbitrage pricing theory: A unification

    PubMed Central

    Khan, M. Ali; Sun, Yeneng

    1997-01-01

    We present a model of a financial market in which naive diversification, based simply on portfolio size and obtained as a consequence of the law of large numbers, is distinguished from efficient diversification, based on mean-variance analysis. This distinction yields a valuation formula involving only the essential risk embodied in an asset’s return, where the overall risk can be decomposed into a systematic and an unsystematic part, as in the arbitrage pricing theory; and the systematic component further decomposed into an essential and an inessential part, as in the capital-asset-pricing model. The two theories are thus unified, and their individual asset-pricing formulas shown to be equivalent to the pervasive economic principle of no arbitrage. The factors in the model are endogenously chosen by a procedure analogous to the Karhunen–Loéve expansion of continuous time stochastic processes; it has an optimality property justifying the use of a relatively small number of them to describe the underlying correlational structures. Our idealized limit model is based on a continuum of assets indexed by a hyperfinite Loeb measure space, and it is asymptotically implementable in a setting with a large but finite number of assets. Because the difficulties in the formulation of the law of large numbers with a standard continuum of random variables are well known, the model uncovers some basic phenomena not amenable to classical methods, and whose approximate counterparts are not already, or even readily, apparent in the asymptotic setting. PMID:11038614

  7. The capital-asset-pricing model and arbitrage pricing theory: a unification.

    PubMed

    Ali Khan, M; Sun, Y

    1997-04-15

    We present a model of a financial market in which naive diversification, based simply on portfolio size and obtained as a consequence of the law of large numbers, is distinguished from efficient diversification, based on mean-variance analysis. This distinction yields a valuation formula involving only the essential risk embodied in an asset's return, where the overall risk can be decomposed into a systematic and an unsystematic part, as in the arbitrage pricing theory; and the systematic component further decomposed into an essential and an inessential part, as in the capital-asset-pricing model. The two theories are thus unified, and their individual asset-pricing formulas shown to be equivalent to the pervasive economic principle of no arbitrage. The factors in the model are endogenously chosen by a procedure analogous to the Karhunen-Loéve expansion of continuous time stochastic processes; it has an optimality property justifying the use of a relatively small number of them to describe the underlying correlational structures. Our idealized limit model is based on a continuum of assets indexed by a hyperfinite Loeb measure space, and it is asymptotically implementable in a setting with a large but finite number of assets. Because the difficulties in the formulation of the law of large numbers with a standard continuum of random variables are well known, the model uncovers some basic phenomena not amenable to classical methods, and whose approximate counterparts are not already, or even readily, apparent in the asymptotic setting.

  8. Irrational exuberance and neural crash warning signals during endogenous experimental market bubbles

    PubMed Central

    Smith, Alec; Lohrenz, Terry; King, Justin; Montague, P. Read; Camerer, Colin F.

    2014-01-01

    Groups of humans routinely misassign value to complex future events, especially in settings involving the exchange of resources. If properly structured, experimental markets can act as excellent probes of human group-level valuation mechanisms during pathological overvaluations—price bubbles. The connection between the behavioral and neural underpinnings of such phenomena has been absent, in part due to a lack of enabling technology. We used a multisubject functional MRI paradigm to measure neural activity in human subjects participating in experimental asset markets in which endogenous price bubbles formed and crashed. Although many ideas exist about how and why such bubbles may form and how to identify them, our experiment provided a window on the connection between neural responses and behavioral acts (buying and selling) that created the bubbles. We show that aggregate neural activity in the nucleus accumbens (NAcc) tracks the price bubble and that NAcc activity aggregated within a market predicts future price changes and crashes. Furthermore, the lowest-earning subjects express a stronger tendency to buy as a function of measured NAcc activity. Conversely, we report a signal in the anterior insular cortex in the highest earners that precedes the impending price peak, is associated with a higher propensity to sell in high earners, and that may represent a neural early warning signal in these subjects. Such markets could be a model system to understand neural and behavior mechanisms in other settings where emergent group-level activity exhibits mistaken belief or valuation. PMID:25002476

  9. Irrational exuberance and neural crash warning signals during endogenous experimental market bubbles.

    PubMed

    Smith, Alec; Lohrenz, Terry; King, Justin; Montague, P Read; Camerer, Colin F

    2014-07-22

    Groups of humans routinely misassign value to complex future events, especially in settings involving the exchange of resources. If properly structured, experimental markets can act as excellent probes of human group-level valuation mechanisms during pathological overvaluations--price bubbles. The connection between the behavioral and neural underpinnings of such phenomena has been absent, in part due to a lack of enabling technology. We used a multisubject functional MRI paradigm to measure neural activity in human subjects participating in experimental asset markets in which endogenous price bubbles formed and crashed. Although many ideas exist about how and why such bubbles may form and how to identify them, our experiment provided a window on the connection between neural responses and behavioral acts (buying and selling) that created the bubbles. We show that aggregate neural activity in the nucleus accumbens (NAcc) tracks the price bubble and that NAcc activity aggregated within a market predicts future price changes and crashes. Furthermore, the lowest-earning subjects express a stronger tendency to buy as a function of measured NAcc activity. Conversely, we report a signal in the anterior insular cortex in the highest earners that precedes the impending price peak, is associated with a higher propensity to sell in high earners, and that may represent a neural early warning signal in these subjects. Such markets could be a model system to understand neural and behavior mechanisms in other settings where emergent group-level activity exhibits mistaken belief or valuation.

  10. Apples to Apples: Equivalent-Reliability Power Systems Across Diverse Resource Mix Scenarios

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

    Stephen, Gordon W; Frew, Bethany A; Sigler, Devon

    Electricity market research is highly price sensitive, and prices are strongly influenced by balance of supply and demand. This work looks at how to combine capacity expansion models and reliability assessment tools to assess equivalent-reliability power systems across diverse resource mix scenarios.

  11. Developing Strategies for Affordable Bandwidth.

    ERIC Educational Resources Information Center

    Educause Quarterly, 2000

    2000-01-01

    Written by Educause's Net@EDU Broadband Pricing Working Group, this article discusses what institutions of higher education can do to develop good partnerships with broadband vendors in order to negotiate affordable pricing for increased bandwidth. Describes problems with the marketplace, examples from a few universities, and points to remember…

  12. Hospital and Health Insurance Markets Concentration and Inpatient Hospital Transaction Prices in the U.S. Health Care Market.

    PubMed

    Dauda, Seidu

    2018-04-01

    To examine the effects of hospital and insurer markets concentration on transaction prices for inpatient hospital services. Measures of hospital and insurer markets concentration derived from American Hospital Association and HealthLeaders-InterStudy data are linked to 2005-2008 inpatient administrative data from Truven Health MarketScan Databases. Uses a reduced-form price equation, controlling for cost and demand shifters and accounting for possible endogeneity of market concentration using instrumental variables (IV) technique. The findings suggest that greater hospital concentration raises prices, whereas greater insurer concentration depresses prices. A hypothetical merger between two of five equally sized hospitals is estimated to increase hospital prices by about 9 percent (p < .001). A similar merger of insurers would depress prices by about 15.3 percent (p < .001). Over the 2003-2008 periods, the estimates imply that hospital consolidation likely raised prices by about 2.6 percent, while insurer consolidation depressed prices by about 10.8 percent. Additional analysis using longer panel data and applying hospital fixed effects confirms the impact of hospital concentration on prices. The findings provide support for strong antitrust enforcement to curb rising hospital service prices and health care costs. © Published 2017. This article is a U.S. Government work and is in the public domain in the USA.

  13. Can you refuse these discounts? An evaluation of the use and price discount impact of price-related promotions among US adult smokers by cigarette manufacturers

    PubMed Central

    Caraballo, Ralph S; Wang, Xu; Xu, Xin

    2014-01-01

    Objectives The raising unit price of cigarette has been shown to be one of the most effective ways of reducing cigarette consumption and increasing rates of successful quitting. However, researchers have shown that price-sensitive smokers have used a variety of strategies to mitigate the effect of the rising price of cigarettes on their smoking habits. In particular, 23–34% of adult smokers in the US use cheaper brands, and 18–55% use coupons or promotions. Little is known about the discount use by type of brands. As such, the main purpose of this analysis is to evaluate the uses and price discount effects of these price-related discounts by manufacturers and major brands. Setting An analysis based on the cross-sectional 2009–2010 National Adult Tobacco Survey (NATS). Participants 11 766 current smokers aged 18 or above in the USA. Primary outcome measures Price-related discount was defined as smokers who used coupons, rebates, buy-one-get-one-free, two-for-one or any other special promotions for their last cigarettes purchase. Results The use of price-related discounts and associated price impact vary widely by cigarette manufacturer and brand. Approximately one of three Camel, one of four Marlboro and one of eight Newport smokers used price-related discounts on their latest cigarette purchases. The average price reductions of discounts offered by Philip Morris (PM) or R.J. Reynolds (RJR) were around 29 cents per pack while that of Lorillard (Newport only) was 24 cents per pack. Cigarette brands that provided significant per pack price reductions include: PM Marlboro (28 cents), RJR brand Camel (41 cents), Doral (50 cents), Kool (73 cents) and Salem (80 cents), and Lorillard Newport (24 cents). Conclusions Policies that decrease price-minimisation strategies will benefit public health. PMID:24898086

  14. The price of alcohol: a consideration of contextual factors.

    PubMed

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

    2006-10-01

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

  15. Smart building temperature control using occupant feedback

    NASA Astrophysics Data System (ADS)

    Gupta, Santosh K.

    This work was motivated by the problem of computing optimal commonly-agreeable thermal settings in spaces with multiple occupants. In this work we propose algorithms that take into account each occupant's preferences along with the thermal correlations between different zones in a building, to arrive at optimal thermal settings for all zones of the building in a coordinated manner. In the first part of this work we incorporate active occupant feedback to minimize aggregate user discomfort and total energy cost. User feedback is used to estimate the users comfort range, taking into account possible inaccuracies in the feedback. The control algorithm takes the energy cost into account, trading it off optimally with the aggregate user discomfort. A lumped heat transfer model based on thermal resistance and capacitance is used to model a multi-zone building. We provide a stability analysis and establish convergence of the proposed solution to a desired temperature that minimizes the sum of energy cost and aggregate user discomfort. However, for convergence to the optimal, sufficient separation between the user feedback frequency and the dynamics of the system is necessary; otherwise, the user feedback provided do not correctly reflect the effect of current control input value on user discomfort. The algorithm is further extended using singular perturbation theory to determine the minimum time between successive user feedback solicitations. Under sufficient time scale separation, we establish convergence of the proposed solution. Simulation study and experimental runs on the Watervliet based test facility demonstrates performance of the algorithm. In the second part we develop a consensus algorithm for attaining a common temperature set-point that is agreeable to all occupants of a zone in a typical multi-occupant space. The information on the comfort range functions is indeed held privately by each occupant. Using occupant differentiated dynamically adjusted prices as feedback signals, we propose a distributed solution, which ensures that a consensus is attained among all occupants upon convergence, irrespective of their temperature preferences being in coherence or conflicting. Occupants are only assumed to be rational, in that they choose their own temperature set-points so as to minimize their individual energy cost plus discomfort. We use Alternating Direction Method of Multipliers ( ADMM) to solve our consensus problem. We further establish the convergence of the proposed algorithm to the optimal thermal set point values that minimize the sum of the energy cost and the aggregate discomfort of all occupants in a multi-zone building. For simulating our consensus algorithm we use realistic building parameters based on the Watervliet test facility. The simulation study based on real world building parameters establish the validity of our theoretical model and provide insights on the dynamics of the system with a mobile user population. In the third part we present a game-theoretic (auction) mechanism, that requires occupants to "purchase" their individualized comfort levels beyond what is provided by default by the building operator. The comfort pricing policy, derived as an extension of Vickrey-Clarke-Groves (VCG) pricing, ensures incentive-compatibility of the mechanism, i.e., an occupant acting in self-interest cannot benefit from declaring their comfort function untruthfully, irrespective of the choices made by other occupants. The declared (or estimated) occupant comfort ranges (functions) are then utilized by the building operator---along with the energy cost information---to set the environment controls to optimally balance the aggregate discomfort of the occupants and the energy cost of the building operator. We use realistic building model and parameters based on our test facility to demonstrate the convergence of the actual temperatures in different zones to the desired temperatures, and provide insight to the pricing structure necessary for truthful comfort feedback from the occupants. Finally, we present an end-to-end framework designed for enabling occupant feedback collection and incorporating the feedback data towards energy efficient operation of a building. We have designed a mobile application that occupants can use on their smart phones to provide their thermal preference feedback. When relaying the occupant feedback to the central server the mobile application also uses indoor localization techniques to tie the occupant preference to their current thermal zone. Texas Instruments sensortags are used for real time zonal temperature readings. The mobile application relays the occupant preference along with the location to a central server that also hosts our learning algorithm to learn the environment and using occupant feedback calculates the optimal temperature set point. The entire process is triggered upon change of occupancy, environmental conditions, and or occupant preference. The learning algorithm is scheduled to run at regular intervals to respond dynamically to environmental and occupancy changes. We describe results from experimental studies in two different settings: a single family residential home setting and in a university based laboratory space setting. (Abstract shortened by UMI.).

  16. Financial Symmetry and Moods in the Market

    PubMed Central

    Savona, Roberto; Soumare, Maxence; Andersen, Jørgen Vitting

    2015-01-01

    This paper studies how certain speculative transitions in financial markets can be ascribed to a symmetry break that happens in the collective decision making. Investors are assumed to be bounded rational, using a limited set of information including past price history and expectation on future dividends. Investment strategies are dynamically changed based on realized returns within a game theoretical scheme with Nash equilibria. In such a setting, markets behave as complex systems whose payoff reflect an intrinsic financial symmetry that guarantees equilibrium in price dynamics (fundamentalist state) until the symmetry is broken leading to bubble or anti-bubble scenarios (speculative state). We model such two-phase transition in a micro-to-macro scheme through a Ginzburg-Landau-based power expansion leading to a market temperature parameter which modulates the state transitions in the market. Via simulations we prove that transitions in the market price dynamics can be phenomenologically explained by the number of traders, the number of strategies and amount of information used by agents, all included in our market temperature parameter. PMID:25856392

  17. Financial symmetry and moods in the market.

    PubMed

    Savona, Roberto; Soumare, Maxence; Andersen, Jørgen Vitting

    2015-01-01

    This paper studies how certain speculative transitions in financial markets can be ascribed to a symmetry break that happens in the collective decision making. Investors are assumed to be bounded rational, using a limited set of information including past price history and expectation on future dividends. Investment strategies are dynamically changed based on realized returns within a game theoretical scheme with Nash equilibria. In such a setting, markets behave as complex systems whose payoff reflect an intrinsic financial symmetry that guarantees equilibrium in price dynamics (fundamentalist state) until the symmetry is broken leading to bubble or anti-bubble scenarios (speculative state). We model such two-phase transition in a micro-to-macro scheme through a Ginzburg-Landau-based power expansion leading to a market temperature parameter which modulates the state transitions in the market. Via simulations we prove that transitions in the market price dynamics can be phenomenologically explained by the number of traders, the number of strategies and amount of information used by agents, all included in our market temperature parameter.

  18. Real estate value prediction using multivariate regression models

    NASA Astrophysics Data System (ADS)

    Manjula, R.; Jain, Shubham; Srivastava, Sharad; Rajiv Kher, Pranav

    2017-11-01

    The real estate market is one of the most competitive in terms of pricing and the same tends to vary significantly based on a lot of factors, hence it becomes one of the prime fields to apply the concepts of machine learning to optimize and predict the prices with high accuracy. Therefore in this paper, we present various important features to use while predicting housing prices with good accuracy. We have described regression models, using various features to have lower Residual Sum of Squares error. While using features in a regression model some feature engineering is required for better prediction. Often a set of features (multiple regressions) or polynomial regression (applying a various set of powers in the features) is used for making better model fit. For these models are expected to be susceptible towards over fitting ridge regression is used to reduce it. This paper thus directs to the best application of regression models in addition to other techniques to optimize the result.

  19. Novel approaches for road congestion mitigation.

    DOT National Transportation Integrated Search

    2012-07-02

    Transportation planning is usually aiming to solve two problems: the traffic assignment and the toll pricing problems. The latter one utilizes information from the first one, in order to find the optimal set of tolls that is the set of tolls that lea...

  20. Novel approaches for road congestion minimization.

    DOT National Transportation Integrated Search

    2012-07-01

    Transportation planning is usually aiming to solve two problems: the traffic assignment and the toll pricing problems. The latter one utilizes information from the first one, in order to find the optimal set of tolls that is the set of tolls that lea...

  1. Determinants of orphan drugs prices in France: a regression analysis.

    PubMed

    Korchagina, Daria; Millier, Aurelie; Vataire, Anne-Lise; Aballea, Samuel; Falissard, Bruno; Toumi, Mondher

    2017-04-21

    The introduction of the orphan drug legislation led to the increase in the number of available orphan drugs, but the access to them is often limited due to the high price. Social preferences regarding funding orphan drugs as well as the criteria taken into consideration while setting the price remain unclear. The study aimed at identifying the determinant of orphan drug prices in France using a regression analysis. All drugs with a valid orphan designation at the moment of launch for which the price was available in France were included in the analysis. The selection of covariates was based on a literature review and included drug characteristics (Anatomical Therapeutic Chemical (ATC) class, treatment line, age of target population), diseases characteristics (severity, prevalence, availability of alternative therapeutic options), health technology assessment (HTA) details (actual benefit (AB) and improvement in actual benefit (IAB) scores, delay between the HTA and commercialisation), and study characteristics (type of study, comparator, type of endpoint). The main data sources were European public assessment reports, HTA reports, summaries of opinion on orphan designation of the European Medicines Agency, and the French insurance database of drugs and tariffs. A generalized regression model was developed to test the association between the annual treatment cost and selected covariates. A total of 68 drugs were included. The mean annual treatment cost was €96,518. In the univariate analysis, the ATC class (p = 0.01), availability of alternative treatment options (p = 0.02) and the prevalence (p = 0.02) showed a significant correlation with the annual cost. The multivariate analysis demonstrated significant association between the annual cost and availability of alternative treatment options, ATC class, IAB score, type of comparator in the pivotal clinical trial, as well as commercialisation date and delay between the HTA and commercialisation. The orphan drug pricing is a multivariate phenomenon. The complex association between drug prices and the studied attributes and shows that payers integrate multiple variables in decision making when setting orphan drug prices. The interpretation of the study results is limited by the small sample size and the complex data structure.

  2. Do state minimum markup/price laws work? Evidence from retail scanner data and TUS-CPS.

    PubMed

    Huang, Jidong; Chriqui, Jamie F; DeLong, Hillary; Mirza, Maryam; Diaz, Megan C; Chaloupka, Frank J

    2016-10-01

    Minimum markup/price laws (MPLs) have been proposed as an alternative non-tax pricing strategy to reduce tobacco use and access. However, the empirical evidence on the effectiveness of MPLs in increasing cigarette prices is very limited. This study aims to fill this critical gap by examining the association between MPLs and cigarette prices. State MPLs were compiled from primary legal research databases and were linked to cigarette prices constructed from the Nielsen retail scanner data and the self-reported cigarette prices from the Tobacco Use Supplement to the Current Population Survey. Multivariate regression analyses were conducted to examine the association between MPLs and the major components of MPLs and cigarette prices. The presence of MPLs was associated with higher cigarette prices. In addition, cigarette prices were higher, above and beyond the higher prices resulting from MPLs, in states that prohibit below-cost combination sales; do not allow any distributing party to use trade discounts to reduce the base cost of cigarettes; prohibit distributing parties from meeting the price of a competitor, and prohibit distributing below-cost coupons to the consumer. Moreover, states that had total markup rates >24% were associated with significantly higher cigarette prices. MPLs are an effective way to increase cigarette prices. The impact of MPLs can be further strengthened by imposing greater markup rates and by prohibiting coupon distribution, competitor price matching, and use of below-cost combination sales and trade discounts. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

  3. Feasibility of Using Alternate Fuels in the U.S. Antarctic Program: Initial Assessment

    DTIC Science & Technology

    2017-09-01

    Figures 1 Platts’ Jet A fuel prices per gallons from 1990 to 2013. Platts’ pricing is a real time market process for determining the cost of fossil ... fossil fuels. This process takes into account supply, demand, and current events. Since 1909, Platts has been reporting these real time prices and...refinery to upload NSF’s fuel to the day it arrives at a destination where it will per- form work for a different customer). Over the past decade, day

  4. A pricing rule for affiliate transactions: Room for consensus

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

    Costello, K.W.

    1998-12-01

    Because it conforms to politically acceptable notions of fairness, state and federal regulators have relied heavily on the concept of fully distributed cost to govern affiliate transactions. This should be leavened by alternative transfer-pricing measures to balance the goals of economic efficiency and fairness. This discussion, particularly the principles set down, although focusing on products or services, is also relevant to the outright sale of assets by a utility to an affiliate or vice versa. The author also proposes language for the pricing of affiliate transactions that attempts to accommodate the widely divergent positions currently being debated in the regulatorymore » arena.« less

  5. Lead-free hunting rifle ammunition: product availability, price, effectiveness, and role in global wildlife conservation.

    PubMed

    Thomas, Vernon George

    2013-10-01

    Proposals to end the use of lead hunting ammunition because of the established risks of lead exposure to wildlife and humans are impeded by concerns about the availability, price, and effectiveness of substitutes. The product availability and retail prices of different calibers of lead-free bullets and center-fire rifle ammunition were assessed for ammunition sold in the USA and Europe. Lead-free bullets are made in 35 calibers and 51 rifle cartridge designations. Thirty-seven companies distribute internationally ammunition made with lead-free bullets. There is no major difference in the retail price of equivalent lead-free and lead-core ammunition for most popular calibers. Lead-free ammunition has set bench-mark standards for accuracy, lethality, and safety. Given the demonstrated wide product availability, comparable prices, and the effectiveness of high-quality lead-free ammunition, it is possible to phase out the use of lead hunting ammunition world-wide, based on progressive policy and enforceable legislation.

  6. Effects of food price shocks on child malnutrition: The Mozambican experience 2008/2009.

    PubMed

    Arndt, Channing; Hussain, M Azhar; Salvucci, Vincenzo; Østerdal, Lars Peter

    2016-09-01

    A propitiously timed household survey carried out in Mozambique over the period 2008/2009 permits us to study the relationship between shifts in food prices and child nutrition status in a low income setting. We focus on weight-for-height and weight-for-age in different survey quarters characterized by very different food price inflation rates. Using propensity score matching techniques, we find that these nutrition measures, which are sensitive in the short run, improve significantly in the fourth quarter of the survey, when the inflation rate for basic food products is low, compared to the first semester or three quarters, when food price inflation was generally high. The prevalence of underweight, in particular, falls by about 40 percent. We conclude that the best available evidence points to food penury, driven by the food and fuel price crisis combined with a short agricultural production year, as substantially increasing malnutrition amongst under-five children in Mozambique. Copyright © 2016 The Authors. Published by Elsevier B.V. All rights reserved.

  7. Building a panel data set on fuel stations located in the Spanish regional areas of Madrid and Barcelona

    PubMed Central

    Balaguer, Jacint; Ripollés, Jordi

    2016-01-01

    The data described in this article were collected daily over the period June 10, 2010, to November 25, 2012, from the website of the Spanish Ministry of Industry, Energy and Tourism. The database includes information about fuel stations regarding to their prices (both gross and net of taxes), brand, location (latitude and longitude), and postal code in the Spanish provinces of Madrid and Barcelona. Moreover, obtaining the postal codes has allowed us to select those stations that are operating within the metropolitan areas of Madrid and Barcelona. By considering those fuel stations that uninterruptedly provided prices during the entire period, the data can be especially useful to explore the dynamics of prices in fuel markets. This is the case of Balaguer and Ripollés (2016), “Asymmetric fuel price responses under heterogeneity” [1], who, taking into account the presence of the potential heterogeneity of the behaviour of fuel stations, used this statistical information to perform an analysis on asymmetric fuel price responses. PMID:26933671

  8. [Toward a conditional price for medicine?].

    PubMed

    Baseilhac, E

    2013-09-01

    For the first time, and as an exceptional option, the 2012 LEEM-CEPS framework agreement introduces the notion of conditional prices in conventional practice. The contractualization of drug price according to changes in its value that could occur in "real world" enables the Payer and the Company to settle, in a predictable manner, the "bet" represented by first registration price setting. Its systematization is based on the ability to standardize the implementation and assessment of observational studies, whereas the analysis and sharing of the risk of value changes (depreciation, appreciation) are structuring elements of the contractualization. Ethical from both the payer's and patient's point of view, drug price conditionality on its value is impeded by compliance with legal and economic constraints for the company, that should be taken into account by legalising this latter's ability to influence it through observance or therapeutic education and by guaranteeing a sufficiently long period of revenues for the company. Copyright © 2013 Elsevier Masson SAS. All rights reserved.

  9. Building a panel data set on fuel stations located in the Spanish regional areas of Madrid and Barcelona.

    PubMed

    Balaguer, Jacint; Ripollés, Jordi

    2016-06-01

    The data described in this article were collected daily over the period June 10, 2010, to November 25, 2012, from the website of the Spanish Ministry of Industry, Energy and Tourism. The database includes information about fuel stations regarding to their prices (both gross and net of taxes), brand, location (latitude and longitude), and postal code in the Spanish provinces of Madrid and Barcelona. Moreover, obtaining the postal codes has allowed us to select those stations that are operating within the metropolitan areas of Madrid and Barcelona. By considering those fuel stations that uninterruptedly provided prices during the entire period, the data can be especially useful to explore the dynamics of prices in fuel markets. This is the case of Balaguer and Ripollés (2016), "Asymmetric fuel price responses under heterogeneity" [1], who, taking into account the presence of the potential heterogeneity of the behaviour of fuel stations, used this statistical information to perform an analysis on asymmetric fuel price responses.

  10. Price dynamics and market power in an agent-based power exchange

    NASA Astrophysics Data System (ADS)

    Cincotti, Silvano; Guerci, Eric; Raberto, Marco

    2005-05-01

    This paper presents an agent-based model of a power exchange. Supply of electric power is provided by competing generating companies, whereas demand is assumed to be inelastic with respect to price and is constant over time. The transmission network topology is assumed to be a fully connected graph and no transmission constraints are taken into account. The price formation process follows a common scheme for real power exchanges: a clearing house mechanism with uniform price, i.e., with price set equal across all matched buyer-seller pairs. A single class of generating companies is considered, characterized by linear cost function for each technology. Generating companies compete for the sale of electricity through repeated rounds of the uniform auction and determine their supply functions according to production costs. However, an individual reinforcement learning algorithm characterizes generating companies behaviors in order to attain the expected maximum possible profit in each auction round. The paper investigates how the market competitive equilibrium is affected by market microstructure and production costs.

  11. 48 CFR 36.214 - Special procedures for price negotiation in construction contracting.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... price negotiation in construction contracting. 36.214 Section 36.214 Federal Acquisition Regulations... negotiation in construction contracting. (a) Agencies shall follow the policies and procedures in part 15 when... scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be...

  12. 48 CFR 36.214 - Special procedures for price negotiation in construction contracting.

    Code of Federal Regulations, 2011 CFR

    2011-10-01

    ... price negotiation in construction contracting. 36.214 Section 36.214 Federal Acquisition Regulations... negotiation in construction contracting. (a) Agencies shall follow the policies and procedures in part 15 when... scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be...

  13. 48 CFR 36.214 - Special procedures for price negotiation in construction contracting.

    Code of Federal Regulations, 2012 CFR

    2012-10-01

    ... price negotiation in construction contracting. 36.214 Section 36.214 Federal Acquisition Regulations... negotiation in construction contracting. (a) Agencies shall follow the policies and procedures in part 15 when... scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be...

  14. 48 CFR 36.214 - Special procedures for price negotiation in construction contracting.

    Code of Federal Regulations, 2014 CFR

    2014-10-01

    ... price negotiation in construction contracting. 36.214 Section 36.214 Federal Acquisition Regulations... negotiation in construction contracting. (a) Agencies shall follow the policies and procedures in part 15 when... scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be...

  15. 48 CFR 36.214 - Special procedures for price negotiation in construction contracting.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... price negotiation in construction contracting. 36.214 Section 36.214 Federal Acquisition Regulations... negotiation in construction contracting. (a) Agencies shall follow the policies and procedures in part 15 when... scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be...

  16. 48 CFR 1852.243-72 - Equitable adjustments.

    Code of Federal Regulations, 2010 CFR

    2010-10-01

    ... assistants, incidental job burdens, small tools, and general overhead allocations. “Commission” is defined as... according to the nature, extent, and complexity of the work involved, but in no case shall they exceed the... basis of the price being determined at the earliest practicable date. In such a case, the price shall...

  17. An integrated system model for evaluating the impact of the dynamic ICC toll policy on the regional network mobility.

    DOT National Transportation Integrated Search

    2011-12-01

    Road pricing has been advocated as an efficient travel demand management to alleviate congestion since the : seminal work by Pigou (1920) and Knight (1924) (see Lindsey, 2006, for recent reviews). More specifically, dynamic : toll pricing has receive...

  18. Impacts of High Variable Renewable Energy Futures on Wholesale Electricity Prices, and on Electric-Sector Decision Making

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

    Seel, Joachim; Mills, Andrew D.; Wiser, Ryan H.

    Increasing penetrations of variable renewable energy (VRE) can affect wholesale electricity price patterns and make them meaningfully different from past, traditional price patterns. Many long-lasting decisions for supply- and demand-side electricity infrastructure and programs are based on historical observations or assume a business-as-usual future with low shares of VRE. Our motivating question is whether certain electric-sector decisions that are made based on assumptions reflecting low VRE levels will still achieve their intended objective in a high VRE future. We qualitatively describe how various decisions may change with higher shares of VRE and outline an analytical framework for quantitatively evaluating themore » impacts of VRE on long-lasting decisions. We then present results from detailed electricity market simulations with capacity expansion and unit commitment models for multiple regions of the U.S. for low and high VRE futures. We find a general decrease in average annual hourly wholesale energy prices with more VRE penetration, increased price volatility and frequency of very low-priced hours, and changing diurnal price patterns. Ancillary service prices rise substantially and peak net-load hours with high capacity value are shifted increasingly into the evening, particularly for high solar futures. While in this report we only highlight qualitatively the possible impact of these altered price patterns on other demand- and supply-side electric sector decisions, the core set of electricity market prices derived here provides a foundation for later planned quantitative evaluations of these decisions in low and high VRE futures.« less

  19. Statistical properties and pre-hit dynamics of price limit hits in the Chinese stock markets.

    PubMed

    Wan, Yu-Lei; Xie, Wen-Jie; Gu, Gao-Feng; Jiang, Zhi-Qiang; Chen, Wei; Xiong, Xiong; Zhang, Wei; Zhou, Wei-Xing

    2015-01-01

    Price limit trading rules are adopted in some stock markets (especially emerging markets) trying to cool off traders' short-term trading mania on individual stocks and increase market efficiency. Under such a microstructure, stocks may hit their up-limits and down-limits from time to time. However, the behaviors of price limit hits are not well studied partially due to the fact that main stock markets such as the US markets and most European markets do not set price limits. Here, we perform detailed analyses of the high-frequency data of all A-share common stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2000 to 2011 to investigate the statistical properties of price limit hits and the dynamical evolution of several important financial variables before stock price hits its limits. We compare the properties of up-limit hits and down-limit hits. We also divide the whole period into three bullish periods and three bearish periods to unveil possible differences during bullish and bearish market states. To uncover the impacts of stock capitalization on price limit hits, we partition all stocks into six portfolios according to their capitalizations on different trading days. We find that the price limit trading rule has a cooling-off effect (object to the magnet effect), indicating that the rule takes effect in the Chinese stock markets. We find that price continuation is much more likely to occur than price reversal on the next trading day after a limit-hitting day, especially for down-limit hits, which has potential practical values for market practitioners.

  20. Shining a light in the black box of orphan drug pricing

    PubMed Central

    2014-01-01

    Background The pricing mechanism of orphan drugs appears arbitrary and has been referred to as a “black box”. Therefore, the aim of this study is to investigate how drug- and disease-specific variables relate to orphan drug prices. Additionally, we aim to explore if certain country-specific pricing and reimbursement policies affect the price level of orphan drugs. Methods Annual treatment costs per indication per patient were calculated for 59 orphan drugs with a publicly available price in Belgium, the Netherlands, Czech Republic, France, Italy and the United Kingdom. A multiple linear regression model was built with 14 drug- and disease-specific variables. A Mann-Whitney U test was used to explore whether there is a correlation between annual treatment costs of orphan drugs across countries with different pricing and reimbursement policies. Results Repurposed orphan drugs, orally administered orphan drugs or orphan drugs for which an alternative treatment is available are associated with lower annual treatment costs. Orphan drugs with multiple orphan indications, for chronic treatments or for which an improvement in overall survival or quality-of-life has been demonstrated, are associated with higher annual treatment costs. No association was found between annual treatments cost of orphan drugs across countries and the different pricing and reimbursement systems. Conclusions This study has shown that prices of orphan drugs are influenced by factors such as the availability of an alternative drug treatment, repurposing, etc. Current debate about the affordability of orphan drugs highlights the need for more transparency in orphan drug price setting. PMID:24767472

  1. Price-related promotions for tobacco products on Twitter.

    PubMed

    Jo, Catherine L; Kornfield, Rachel; Kim, Yoonsang; Emery, Sherry; Ribisl, Kurt M

    2016-07-01

    This cross-sectional study examined price-related promotions for tobacco products on Twitter. Through the Twitter Firehose, we obtained access to all public tweets posted between 6 December 2012 and 20 June 2013 that contained a keyword suggesting a tobacco-related product or behaviour (eg, cigarette, vaping) in addition to a keyword suggesting a price promotion (eg, coupon, discount). From this data set of 155 249 tweets, we constructed a stratified sampling frame based on the price-related keywords and randomly sampled 5000 tweets (3.2%). Tweets were coded for product type and promotion type. Non-English tweets and tweets unrelated to a tobacco or cessation price promotion were excluded, leaving an analytic sample of 2847 tweets. The majority of tweets (97.0%) mentioned tobacco products while 3% mentioned tobacco cessation products. E-cigarettes were the most frequently mentioned product (90.1%), followed by cigarettes (5.4%). The most common type of price promotion mentioned across all products was a discount. About a third of all e-cigarette-related tweets included a discount code. Banned or restricted price promotions comprised about 3% of cigarette-related tweets. This study demonstrates that the vast majority of tweets offering price promotions focus on e-cigarettes. Future studies should examine the extent to which Twitter users, particularly youth, notice or engage with these price promotion tweets. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/

  2. Is Every Smoker Interested in Price Promotions? An Evaluation of Price-Related Discounts by Cigarette Brands

    PubMed Central

    Xu, Xin; Wang, Xu; Caraballo, Ralph S.

    2015-01-01

    Context Raising unit price is one of the most effective ways of reducing cigarette consumption. A large proportion of US adult smokers use generic brands or price discounts in response to higher prices, which may mitigate the public health impacts of raising unit price. Objective The main purpose of this study was to evaluate the retail price impact and the determinants of price-related discount use among US adult smokers by their most commonly used cigarette brand types. Methods Data from the 2009–2010 National Adult Tobacco Survey, a telephone survey of US adults 18 years or older, was used to assess price-related discount use by cigarette brands. Price-related discounts included coupons, rebates, buy 1 get 1 free, 2 for 1, or any other special promotions. Multivariate logistic regression was used to assess sociodemographic and tobacco use determinants of discount use by cigarette brands. Results Discount use was most common among premium brand users (22.1%), followed by generic (13.3%) and other brand (10.8%) users. Among premium brand users, those who smoked 10 to 20 cigarettes per day were more likely to use discounts, whereas elderly smokers, non-Hispanic blacks, those with greater annual household income, dual users of cigarettes and other combustible tobacco products, and those who had no quit intentions were less likely to do so. Among generic brand users, those who had no quit intentions and those who smoked first cigarette within 60 minutes after waking were more likely to use discounts. Conclusions Frequent use of discounts varies between smokers of premium and generic cigarette brands. Setting a high minimum price, together with limiting the use of coupons and promotions, may uphold the effect of cigarette excise taxes to reduce smoking prevalence. PMID:26598952

  3. Is Every Smoker Interested in Price Promotions? An Evaluation of Price-Related Discounts by Cigarette Brands.

    PubMed

    Xu, Xin; Wang, Xu; Caraballo, Ralph S

    2016-01-01

    Raising unit price is one of the most effective ways of reducing cigarette consumption. A large proportion of US adult smokers use generic brands or price discounts in response to higher prices, which may mitigate the public health impacts of raising unit price. The main purpose of this study was to evaluate the retail price impact and the determinants of price-related discount use among US adult smokers by their most commonly used cigarette brand types. Data from the 2009-2010 National Adult Tobacco Survey, a telephone survey of US adults 18 years or older, was used to assess price-related discount use by cigarette brands. Price-related discounts included coupons, rebates, buy 1 get 1 free, 2 for 1, or any other special promotions. Multivariate logistic regression was used to assess sociodemographic and tobacco use determinants of discount use by cigarette brands. Discount use was most common among premium brand users (22.1%), followed by generic (13.3%) and other brand (10.8%) users. Among premium brand users, those who smoked 10 to 20 cigarettes per day were more likely to use discounts, whereas elderly smokers, non-Hispanic blacks, those with greater annual household income, dual users of cigarettes and other combustible tobacco products, and those who had no quit intentions were less likely to do so. Among generic brand users, those who had no quit intentions and those who smoked first cigarette within 60 minutes after waking were more likely to use discounts. Frequent use of discounts varies between smokers of premium and generic cigarette brands. Setting a high minimum price, together with limiting the use of coupons and promotions, may uphold the effect of cigarette excise taxes to reduce smoking prevalence.

  4. 26 CFR 1.6662-6 - Transactions between persons described in section 482 and net section 482 transfer price...

    Code of Federal Regulations, 2013 CFR

    2013-04-01

    ... tax return for year 1 reported a loss of three million dollars, which was carried to taxpayer's year 2...)(2)(iii)(B)(6) of this section to earlier taxable years in accordance with the rules set forth in § 1... section 482 and net section 482 transfer price adjustments. 1.6662-6 Section 1.6662-6 Internal Revenue...

  5. 26 CFR 1.6662-6 - Transactions between persons described in section 482 and net section 482 transfer price...

    Code of Federal Regulations, 2012 CFR

    2012-04-01

    ... tax return for year 1 reported a loss of three million dollars, which was carried to taxpayer's year 2...)(2)(iii)(B)(6) of this section to earlier taxable years in accordance with the rules set forth in § 1... section 482 and net section 482 transfer price adjustments. 1.6662-6 Section 1.6662-6 Internal Revenue...

  6. 26 CFR 1.6662-6 - Transactions between persons described in section 482 and net section 482 transfer price...

    Code of Federal Regulations, 2014 CFR

    2014-04-01

    ... tax return for year 1 reported a loss of three million dollars, which was carried to taxpayer's year 2...)(2)(iii)(B)(6) of this section to earlier taxable years in accordance with the rules set forth in § 1... section 482 and net section 482 transfer price adjustments. 1.6662-6 Section 1.6662-6 Internal Revenue...

  7. Near East/South Asia Report No. 2766.

    DTIC Science & Technology

    1983-06-09

    of the political leadership to see the whole of the national territory enjoy the fruits of development. This will is reflected, moreover, in the...from supermarkets and grocery stores throughout the kingdom. That price does not affect the selling price of one undivided sack which is set for the...firmly against such activities, without affecting the citizens of their re- spective countries. 3. Despite the persistent animosity shown by the

  8. Hybrid Simulation Modeling to Estimate U.S. Energy Elasticities

    NASA Astrophysics Data System (ADS)

    Baylin-Stern, Adam C.

    This paper demonstrates how an U.S. application of CIMS, a technologically explicit and behaviourally realistic energy-economy simulation model which includes macro-economic feedbacks, can be used to derive estimates of elasticity of substitution (ESUB) and autonomous energy efficiency index (AEEI) parameters. The ability of economies to reduce greenhouse gas emissions depends on the potential for households and industry to decrease overall energy usage, and move from higher to lower emissions fuels. Energy economists commonly refer to ESUB estimates to understand the degree of responsiveness of various sectors of an economy, and use estimates to inform computable general equilibrium models used to study climate policies. Using CIMS, I have generated a set of future, 'pseudo-data' based on a series of simulations in which I vary energy and capital input prices over a wide range. I then used this data set to estimate the parameters for transcendental logarithmic production functions using regression techniques. From the production function parameter estimates, I calculated an array of elasticity of substitution values between input pairs. Additionally, this paper demonstrates how CIMS can be used to calculate price-independent changes in energy-efficiency in the form of the AEEI, by comparing energy consumption between technologically frozen and 'business as usual' simulations. The paper concludes with some ideas for model and methodological improvement, and how these might figure into future work in the estimation of ESUBs from CIMS. Keywords: Elasticity of substitution; hybrid energy-economy model; translog; autonomous energy efficiency index; rebound effect; fuel switching.

  9. Hazard Analysis and Safety Requirements for Small Drone Operations: To What Extent Do Popular Drones Embed Safety?

    PubMed

    Plioutsias, Anastasios; Karanikas, Nektarios; Chatzimihailidou, Maria Mikela

    2018-03-01

    Currently, published risk analyses for drones refer mainly to commercial systems, use data from civil aviation, and are based on probabilistic approaches without suggesting an inclusive list of hazards and respective requirements. Within this context, this article presents: (1) a set of safety requirements generated from the application of the systems theoretic process analysis (STPA) technique on a generic small drone system; (2) a gap analysis between the set of safety requirements and the ones met by 19 popular drone models; (3) the extent of the differences between those models, their manufacturers, and the countries of origin; and (4) the association of drone prices with the extent they meet the requirements derived by STPA. The application of STPA resulted in 70 safety requirements distributed across the authority, manufacturer, end user, or drone automation levels. A gap analysis showed high dissimilarities regarding the extent to which the 19 drones meet the same safety requirements. Statistical results suggested a positive correlation between drone prices and the extent that the 19 drones studied herein met the safety requirements generated by STPA, and significant differences were identified among the manufacturers. This work complements the existing risk assessment frameworks for small drones, and contributes to the establishment of a commonly endorsed international risk analysis framework. Such a framework will support the development of a holistic and methodologically justified standardization scheme for small drone flights. © 2017 Society for Risk Analysis.

  10. The role of economic evaluation in the pricing and reimbursement of medicines.

    PubMed

    Drummond, M; Jönsson, B; Rutten, F

    1997-06-01

    In most countries, governments or health insurers have taken initiatives to influence the price and utilization of medicines. One stated objective of these schemes is to encourage efficiency, or cost-effectiveness. In principle, economic evaluation should to be relevant to decisions about the pricing and reimbursement of health technologies, since it offers a way of estimating the additional value to society of a new intervention (e.g. medicine) relative to current therapy. However, the application of economic evaluation in drug pricing and reimbursement schemes is variable. Therefore, this paper reviews the actual and potential role of economic evaluation in different drug pricing and reimbursement schemes, such as 'free pricing' systems (United Kingdom, United States), two-stage administered systems (France), reference pricing systems (Germany, Netherlands, Sweden) and economic evaluation systems (Australia, Canada). It is concluded that, other than in the case of Australia and Canada, the potential role of economic evaluation could be greatly developed, especially in the case of new medicines, for which there is no close substitute. Comments are also given on the practical problems of using this approach. However, it is noted that economic evaluation alone cannot set a price for a medicine, since a decision has to be made about the proportion of added value going to society and the proportion going to the pharmaceutical company as a reward for innovation.

  11. Pricing hospital care: Global budgets and marginal pricing strategies.

    PubMed

    Sutherland, Jason M

    2015-08-01

    The Canadian province of British Columbia (BC) is adding financial incentives to increase the volume of surgeries provided by hospitals using a marginal pricing approach. The objective of this study is to calculate marginal costs of surgeries based on assumptions regarding hospitals' availability of labor and equipment. This study is based on observational clinical, administrative and financial data generated by hospitals. Hospital inpatient and outpatient discharge summaries from the province are linked with detailed activity-based costing information, stratified by assigned case mix categorizations. To reflect a range of operating constraints governing hospitals' ability to increase their volume of surgeries, a number of scenarios are proposed. Under these scenarios, estimated marginal costs are calculated and compared to prices being offered as incentives to hospitals. Existing data can be used to support alternative strategies for pricing hospital care. Prices for inpatient surgeries do not generate positive margins under a range of operating scenarios. Hip and knee surgeries generate surpluses for hospitals even under the most costly labor conditions and are expected to generate additional volume. In health systems that wish to fine-tune financial incentives, setting prices that create incentives for additional volume should reflect knowledge of hospitals' underlying cost structures. Possible implications of mis-pricing include no response to the incentives or uneven increases in supply. Copyright © 2015 The Authors. Published by Elsevier Ireland Ltd.. All rights reserved.

  12. Ensuring the Reliable Operation of the Power Grid: State-Based and Distributed Approaches to Scheduling Energy and Contingency Reserves

    NASA Astrophysics Data System (ADS)

    Prada, Jose Fernando

    Keeping a contingency reserve in power systems is necessary to preserve the security of real-time operations. This work studies two different approaches to the optimal allocation of energy and reserves in the day-ahead generation scheduling process. Part I presents a stochastic security-constrained unit commitment model to co-optimize energy and the locational reserves required to respond to a set of uncertain generation contingencies, using a novel state-based formulation. The model is applied in an offer-based electricity market to allocate contingency reserves throughout the power grid, in order to comply with the N-1 security criterion under transmission congestion. The objective is to minimize expected dispatch and reserve costs, together with post contingency corrective redispatch costs, modeling the probability of generation failure and associated post contingency states. The characteristics of the scheduling problem are exploited to formulate a computationally efficient method, consistent with established operational practices. We simulated the distribution of locational contingency reserves on the IEEE RTS96 system and compared the results with the conventional deterministic method. We found that assigning locational spinning reserves can guarantee an N-1 secure dispatch accounting for transmission congestion at a reasonable extra cost. The simulations also showed little value of allocating downward reserves but sizable operating savings from co-optimizing locational nonspinning reserves. Overall, the results indicate the computational tractability of the proposed method. Part II presents a distributed generation scheduling model to optimally allocate energy and spinning reserves among competing generators in a day-ahead market. The model is based on the coordination between individual generators and a market entity. The proposed method uses forecasting, augmented pricing and locational signals to induce efficient commitment of generators based on firm posted prices. It is price-based but does not rely on multiple iterations, minimizes information exchange and simplifies the market clearing process. Simulations of the distributed method performed on a six-bus test system showed that, using an appropriate set of prices, it is possible to emulate the results of a conventional centralized solution, without need of providing make-whole payments to generators. Likewise, they showed that the distributed method can accommodate transactions with different products and complex security constraints.

  13. Manufacture and use of home made ophthalmoscopes: a 150th anniversary tribute to Helmholtz

    PubMed Central

    Armour, Roger H

    2000-01-01

    Objective To produce a simple, effective, and inexpensive training ophthalmoscope. Design Case study. Setting A coffee table in a sitting room and an eye clinic. Participants 10 friends and relatives, several patients, and a cooperative Persian cat. Interventions Direct ophthalmoscopy with instrument made with easily available material and tools from art and office equipment shops. Main outcome measures Efficiency, clarity of view, and price of ophthalmoscope. Results The instrument was readily made; of the 50 manufactured two thirds gave a good view; and each cost less than £1 to make. Conclusion The ophthalmoscope is fun to make, works well, and anyone can make one. PMID:11124172

  14. The distribution of cigarette prices under different tax structures: findings from the International Tobacco Control Policy Evaluation (ITC) Project

    PubMed Central

    Shang, Ce; Chaloupka, Frank J; Zahra, Nahleen; Fong, Geoffrey T

    2013-01-01

    Background The distribution of cigarette prices has rarely been studied and compared under different tax structures. Descriptive evidence on price distributions by countries can shed light on opportunities for tax avoidance and brand switching under different tobacco tax structures, which could impact the effectiveness of increased taxation in reducing smoking. Objective This paper aims to describe the distribution of cigarette prices by countries and to compare these distributions based on the tobacco tax structure in these countries. Methods We employed data for 16 countries taken from the International Tobacco Control Policy Evaluation Project to construct survey-derived cigarette prices for each country. Self-reported prices were weighted by cigarette consumption and described using a comprehensive set of statistics. We then compared these statistics for cigarette prices under different tax structures. In particular, countries of similar income levels and countries that impose similar total excise taxes using different tax structures were paired and compared in mean and variance using a two-sample comparison test. Findings Our investigation illustrates that, compared with specific uniform taxation, other tax structures, such as ad valorem uniform taxation, mixed (a tax system using ad valorem and specific taxes) uniform taxation, and tiered tax structures of specific, ad valorem and mixed taxation tend to have price distributions with greater variability. Countries that rely heavily on ad valorem and tiered taxes also tend to have greater price variability around the median. Among mixed taxation systems, countries that rely more heavily on the ad valorem component tend to have greater price variability than countries that rely more heavily on the specific component. In countries with tiered tax systems, cigarette prices are skewed more towards lower prices than are prices under uniform tax systems. The analyses presented here demonstrate that more opportunities exist for tax avoidance and brand switching when the tax structure departs from a uniform specific tax. PMID:23792324

  15. The distribution of cigarette prices under different tax structures: findings from the International Tobacco Control Policy Evaluation (ITC) Project.

    PubMed

    Shang, Ce; Chaloupka, Frank J; Zahra, Nahleen; Fong, Geoffrey T

    2014-03-01

    The distribution of cigarette prices has rarely been studied and compared under different tax structures. Descriptive evidence on price distributions by countries can shed light on opportunities for tax avoidance and brand switching under different tobacco tax structures, which could impact the effectiveness of increased taxation in reducing smoking. This paper aims to describe the distribution of cigarette prices by countries and to compare these distributions based on the tobacco tax structure in these countries. We employed data for 16 countries taken from the International Tobacco Control Policy Evaluation Project to construct survey-derived cigarette prices for each country. Self-reported prices were weighted by cigarette consumption and described using a comprehensive set of statistics. We then compared these statistics for cigarette prices under different tax structures. In particular, countries of similar income levels and countries that impose similar total excise taxes using different tax structures were paired and compared in mean and variance using a two-sample comparison test. Our investigation illustrates that, compared with specific uniform taxation, other tax structures, such as ad valorem uniform taxation, mixed (a tax system using ad valorem and specific taxes) uniform taxation, and tiered tax structures of specific, ad valorem and mixed taxation tend to have price distributions with greater variability. Countries that rely heavily on ad valorem and tiered taxes also tend to have greater price variability around the median. Among mixed taxation systems, countries that rely more heavily on the ad valorem component tend to have greater price variability than countries that rely more heavily on the specific component. In countries with tiered tax systems, cigarette prices are skewed more towards lower prices than are prices under uniform tax systems. The analyses presented here demonstrate that more opportunities exist for tax avoidance and brand switching when the tax structure departs from a uniform specific tax.

  16. Examining the influence of price and accessibility on willingness to shop at farmers’ markets among low-income eastern North Carolina women

    PubMed Central

    McGuirt, Jared T.; Jilcott Pitts, Stephanie B.; Ward, Rachel; Crawford, Thomas W.; Keyserling, Thomas C.; Ammerman, Alice S.

    2013-01-01

    Objective: To examine the influence of farmers’ market pricing and accessibility on willingness to shop at farmers’ markets, among low-income women. Design: Qualitative interviews using scenarios with quantitative assessment of willingness to shop at farmers’ market given certain pricing and accessibility scenarios. Setting: Eastern North Carolina. Participants: Thirty seven low-income women of child-bearing age (18-44 years) receiving family planning services at the health department. Phenomenon of Interest: Willingness to shop at a farmers’ market. Analysis: Fisher’s exact test was used to examine associations between willingness to shop at farmers’ markets by urban/rural residence, race, and employment status. Direct quotations relevant to participants' use of farmers' markets were extracted based upon a positive deviance framework. Results: Participants were increasingly willing to shop at the farmers’ market when price savings increased and when the market was incrementally closer to their residence. Willingness was highest when there was at least a 20% price savings. Participants seemed to be influenced more by a visual representation of a greater quantity of produce received with the price savings rather than the quantitative representation of the money saved by the reduced price. Conclusions and Implications: Future farmers’ market interventions should take into account these consumer level preferences. PMID:24201077

  17. Auctions with Dynamic Populations: Efficiency and Revenue Maximization

    NASA Astrophysics Data System (ADS)

    Said, Maher

    We study a stochastic sequential allocation problem with a dynamic population of privately-informed buyers. We characterize the set of efficient allocation rules and show that a dynamic VCG mechanism is both efficient and periodic ex post incentive compatible; we also show that the revenue-maximizing direct mechanism is a pivot mechanism with a reserve price. We then consider sequential ascending auctions in this setting, both with and without a reserve price. We construct equilibrium bidding strategies in this indirect mechanism where bidders reveal their private information in every period, yielding the same outcomes as the direct mechanisms. Thus, the sequential ascending auction is a natural institution for achieving either efficient or optimal outcomes.

  18. Design of a pulse oximeter for price sensitive emerging markets.

    PubMed

    Jones, Z; Woods, E; Nielson, D; Mahadevan, S V

    2010-01-01

    While the global market for medical devices is located primarily in developed countries, price sensitive emerging markets comprise an attractive, underserved segment in which products need a unique set of value propositions to be competitive. A pulse oximeter was designed expressly for emerging markets, and a novel feature set was implemented to reduce the cost of ownership and improve the usability of the device. Innovations included the ability of the device to generate its own electricity, a built in sensor which cuts down on operating costs, and a graphical, symbolic user interface. These features yield an average reduction of over 75% in the device cost of ownership versus comparable pulse oximeters already on the market.

  19. Lack of training threatening drilling talent supply

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

    Von Flatern, R.

    When oil prices crashed in the mid-1980s, the industry tightened budgets. Among the austerity measures taken to survive the consequences of low product prices was an end to expensive, long-term investment training of drilling engineers. In the absence of traditional sources of trained drilling talent, forward-looking contractors are creating their own training programs. The paper describes the activities of some companies who are setting up their own training programs, and an alliance being set up by Chevron and Amoco for training. The paper also discusses training drilling managers, third-party trainers, and the consequences for the industry that does not renewmore » its inventory of people.« less

  20. Compulsory licensing often did not produce lower prices for antiretrovirals compared to international procurement.

    PubMed

    Beall, Reed F; Kuhn, Randall; Attaran, Amir

    2015-03-01

    Compulsory licensing has been widely suggested as a legal mechanism for bypassing patents to introduce lower-cost generic antiretrovirals for HIV/AIDS in developing countries. Previous studies found that compulsory licensing can reduce procurement prices for drugs, but it is unknown how the resulting prices compare to procurements through the Global Fund to Fight AIDS, Tuberculosis, and Malaria; UNICEF; and other international channels. For this study we systematically constructed a case-study database of compulsory licensing activity for antiretrovirals and compared compulsory license prices to those in the World Health Organization's (WHO's) Global Price Reporting Mechanism and the Global Fund's Price and Quality Reporting Tool. Thirty compulsory license cases were analyzed with 673 comparable procurements from WHO and Global Fund data. Compulsory license prices exceeded the median international procurement prices in nineteen of the thirty case studies, often with a price gap of more than 25 percent. Compulsory licensing often delivered suboptimal value when compared to the alternative of international procurement, especially when used by low-income countries to manufacture medicines locally. There is an ongoing need for multilateral and charitable actors to work collectively with governments and medicine suppliers on policy options. Project HOPE—The People-to-People Health Foundation, Inc.

  1. The market and environmental effects of alternative biofuel policies

    NASA Astrophysics Data System (ADS)

    Drabik, Dusan

    This dissertation analyzes market and environmental effects of alternative U.S. and Brazilian biofuel policies. Although we focus on corn- and sugarcane-ethanol, the advanced analytical framework can easily be extended to other biofuels and biofuel feedstocks, such as biodiesel and soybean. The dissertation consists of three chapters. The first chapter develops an analytical framework to assess the market effects of a set of biofuel policies (including subsidies to feedstocks). U.S. corn-ethanol policies are used as an example to study the effects of biofuel policies on corn prices. We determine the 'no policy' ethanol price, analyze the implications for the 'no policy' corn price and resulting 'water' in the ethanol price premium due to the policy, and generalize the surprising interaction effects between mandates and tax credits to include ethanol and corn production subsidies. The effect of an ethanol price premium depends on the value of the ethanol co-product, the value of production subsidies, and how the world ethanol price is determined. U.S. corn-ethanol policies are shown to be a major reason for recent rises in corn prices. The ethanol policy-induced increase in corn prices is estimated to be 33 -- 46.5 percent in the period 2008 -- 2011. The second chapter seeks to answer the question of what caused the significant increase in ethanol, sugar, and sugarcane prices in Brazil in the period 2010/11 to 2011/12. We develop a general economic model of the Brazilian fuel-ethanol-sugar complex. Unlike biofuel mandates and tax exemptions elsewhere, Brazil's fuel-ethanol-sugar markets and fuel policies are unique in that each policy, in this setting, theoretically has an ambiguous impact on the market price of ethanol and hence on sugarcane and sugar prices. Our empirical analysis shows that there are two policies that seemingly help the ethanol industry but do otherwise in reality: a low gasoline tax and a high anhydrous tax exemption result in lower ethanol prices. On the other hand, as expected, higher mandates, gasoline prices, and tax exemptions for hydrous ethanol lead to higher ethanol and sugar prices. Eliminating Brazilian ethanol tax exemptions and mandates reduces ethanol prices by 21 percent in 2010-11, which is very similar to the estimated effects of U.S. ethanol policies in the same time period. However, the marginal changes in Brazilian policies on ethanol prices between 2010-11 and 2011-12 are small both individually and collectively. The observed market changes can only be explained by outward shifts in fuel transportation and sugar export demand curves, and reduced sugarcane supply due to bad weather. In the third chapter, we investigate whether U.S. corn ethanol saves greenhouse gas emissions relative to the gasoline it is assumed to replace one-to-one (on an energy equivalent basis). This chapter shows that ethanol policies generate far greater carbon leakage in the fuel market than in the agricultural market, where leakage occurs in the form of land use change. Carbon leakage in the fuel market due to a tax credit is always greater than that of a mandate, while the combination of a mandate and subsidy generates greater leakage than a mandate alone. We show that corn-ethanol does not meet the U.S. EPA's sustainability threshold, regardless of the biofuel policy and whether one includes emissions from land use change. This result makes the controversy over how to measure land use change inconsequential.

  2. 48 CFR 19.503 - Setting aside a class of acquisitions for small business.

    Code of Federal Regulations, 2013 CFR

    2013-10-01

    ... only to the (named) contracting office(s) making the determination; and (4) Provide that the set-aside... competitive market conditions that have occurred since the initial approval of the class small business set... a fair market price by the Government or in a change in the capability of small business concerns to...

  3. Housing demand or money supply? A new Keynesian dynamic stochastic general equilibrium model on China's housing market fluctuations

    NASA Astrophysics Data System (ADS)

    Wen, Xing-Chun; He, Ling-Yun

    2015-08-01

    There is a bitter controversy over what drives the housing price in China in the existing literature. In this paper, we investigate the underlying driving force behind housing price fluctuations in China, especially focusing on the role of housing demand shock with that of money supply shock in explaining housing price movements, by a new Keynesian dynamic stochastic general equilibrium model. Empirical results suggest that it is housing demand, instead of money supply, that mainly drives China's housing price movements. Relevant policy implication is further discussed, namely, whether to consider the housing price fluctuations in the conduct of monetary policy. By means of the policy simulations, we find that a real house price-augmented money supply rule is a better monetary policy for China's economy stabilization. 1. Investment refers to fixed capital investment. 2. Housing price refers to national average housing price. Quarterly data on housing price during the period of our work are not directly available. However, monthly data of the value of sales on housing and sale volume on housing can be directly obtained from National Bureau of Statistics of China. We add up the monthly data and calculate one quarter's housing price by dividing the value of housing sales by its sale volume in one quarter. 3. M2 means the broad money supply in China.

  4. The principles of quality-associated costing: derivation from clinical transfusion practice.

    PubMed

    Trenchard, P M; Dixon, R

    1997-01-01

    As clinical transfusion practice works towards achieving cost-effectiveness, prescribers of blood and its derivatives must be certain that the prices of such products are based on real manufacturing costs and not market forces. Using clinical cost-benefit analysis as the context for the costing and pricing of blood products, this article identifies the following two principles: (1) the product price must equal the product cost (the "price = cost" rule) and (2) the product cost must equal the real cost of product manufacture. In addition, the article describes a new method of blood product costing, quality-associated costing (QAC), that will enable valid cost-benefit analysis of blood products.

  5. Boosting Learning Algorithm for Stock Price Forecasting

    NASA Astrophysics Data System (ADS)

    Wang, Chengzhang; Bai, Xiaoming

    2018-03-01

    To tackle complexity and uncertainty of stock market behavior, more studies have introduced machine learning algorithms to forecast stock price. ANN (artificial neural network) is one of the most successful and promising applications. We propose a boosting-ANN model in this paper to predict the stock close price. On the basis of boosting theory, multiple weak predicting machines, i.e. ANNs, are assembled to build a stronger predictor, i.e. boosting-ANN model. New error criteria of the weak studying machine and rules of weights updating are adopted in this study. We select technical factors from financial markets as forecasting input variables. Final results demonstrate the boosting-ANN model works better than other ones for stock price forecasting.

  6. Research on WNN Modeling for Gold Price Forecasting Based on Improved Artificial Bee Colony Algorithm

    PubMed Central

    2014-01-01

    Gold price forecasting has been a hot issue in economics recently. In this work, wavelet neural network (WNN) combined with a novel artificial bee colony (ABC) algorithm is proposed for this gold price forecasting issue. In this improved algorithm, the conventional roulette selection strategy is discarded. Besides, the convergence statuses in a previous cycle of iteration are fully utilized as feedback messages to manipulate the searching intensity in a subsequent cycle. Experimental results confirm that this new algorithm converges faster than the conventional ABC when tested on some classical benchmark functions and is effective to improve modeling capacity of WNN regarding the gold price forecasting scheme. PMID:24744773

  7. The impact of competition on quality and prices in the English care homes market

    PubMed Central

    Forder, Julien; Allan, Stephen

    2014-01-01

    This study assesses the impact of competition on quality and price in the English care/nursing homes market. Considering the key institutional features, we use a theoretical model to assess the conditions under which further competition could increase or reduce quality. A dataset comprising the population of 10,000 care homes was used. We constructed distance/travel-time weighted competition measures. Instrumental variable estimations, used to account for the endogeneity of competition, showed quality and price were reduced by greater competition. Further analyses suggested that the negative quality effect worked through the effect on price – higher competition reduces revenue which pushes down quality. PMID:24487075

  8. The impact of competition on quality and prices in the English care homes market.

    PubMed

    Forder, Julien; Allan, Stephen

    2014-03-01

    This study assesses the impact of competition on quality and price in the English care/nursing homes market. Considering the key institutional features, we use a theoretical model to assess the conditions under which further competition could increase or reduce quality. A dataset comprising the population of 10,000 care homes was used. We constructed distance/travel-time weighted competition measures. Instrumental variable estimations, used to account for the endogeneity of competition, showed quality and price were reduced by greater competition. Further analyses suggested that the negative quality effect worked through the effect on price - higher competition reduces revenue which pushes down quality. Copyright © 2013 Elsevier B.V. All rights reserved.

  9. Charge Master: Friend or Foe?

    PubMed

    Wan, Wenshuai; Itri, Jason

    2016-01-01

    Prices charged for imaging services can be found in the charge master, a catalog of retail list prices for medical goods and services. This article reviews the evolution of reimbursement in the United States and provides a balanced discussion of the factors that influence charge master prices. Reduced payments to hospitals have pressured hospitals to generate additional revenue by increasing charge master prices. An unfortunate consequence is that those least able to pay for health care, the uninsured, are subjected to the highest charges. Yet, differences in pricing also represent an opportunity for radiology practices, which provide imaging services that are larger in scope or superior in quality to promote product differentiation. Physicians, hospital executives, and policy makers need to work together to improve the existing reimbursement system to promote high-quality, low-cost imaging. Copyright © 2016 Mosby, Inc. All rights reserved.

  10. The Big Drink Debate: perceptions of the impact of price on alcohol consumption from a large scale cross-sectional convenience survey in north west England.

    PubMed

    Cook, Penny A; Phillips-Howard, Penelope A; Morleo, Michela; Harkins, Corinne; Briant, Linford; Bellis, Mark A

    2011-08-23

    A large-scale survey was conducted in 2008 in north west England, a region with high levels of alcohol-related harm, during a regional 'Big Drink Debate' campaign. The aim of this paper is to explore perceptions of how alcohol consumption would change if alcohol prices were to increase or decrease. A convenience survey of residents (≥ 18 years) of north west England measured demographics, income, alcohol consumption in previous week, and opinions on drinking behaviour under two pricing conditions: low prices and discounts and increased alcohol prices (either 'decrease', 'no change' or 'increase'). Multinomial logistic regression used three outcomes: 'completely elastic' (consider that lower prices increase drinking and higher prices decrease drinking); 'lower price elastic' (lower prices increase drinking, higher prices have no effect); and 'price inelastic' (no change for either). Of 22,780 drinkers surveyed, 80.3% considered lower alcohol prices and discounts would increase alcohol consumption, while 22.1% thought raising prices would decrease consumption, making lower price elasticity only (i.e. lower prices increase drinking, higher prices have no effect) the most common outcome (62%). Compared to a high income/high drinking category, the lightest drinkers with a low income (adjusted odds ratio AOR = 1.78, 95% confidence intervals CI 1.38-2.30) or medium income (AOR = 1.88, CI 1.47-2.41) were most likely to be lower price elastic. Females were more likely than males to be lower price elastic (65% vs 57%) while the reverse was true for complete elasticity (20% vs 26%, P < 0.001). Lower pricing increases alcohol consumption, and the alcohol industry's continued focus on discounting sales encourages higher drinking levels. International evidence suggests increasing the price of alcohol reduces consumption, and one in five of the surveyed population agreed; more work is required to increase this agreement to achieve public support for policy change. Such policy should also recognise that alcohol is an addictive drug, and the population may be prepared to pay more to drink the amount they now feel they need.

  11. The Big Drink Debate: perceptions of the impact of price on alcohol consumption from a large scale cross-sectional convenience survey in north west England

    PubMed Central

    2011-01-01

    Background A large-scale survey was conducted in 2008 in north west England, a region with high levels of alcohol-related harm, during a regional 'Big Drink Debate' campaign. The aim of this paper is to explore perceptions of how alcohol consumption would change if alcohol prices were to increase or decrease. Methods A convenience survey of residents (≥ 18 years) of north west England measured demographics, income, alcohol consumption in previous week, and opinions on drinking behaviour under two pricing conditions: low prices and discounts and increased alcohol prices (either 'decrease', 'no change' or 'increase'). Multinomial logistic regression used three outcomes: 'completely elastic' (consider that lower prices increase drinking and higher prices decrease drinking); 'lower price elastic' (lower prices increase drinking, higher prices have no effect); and 'price inelastic' (no change for either). Results Of 22,780 drinkers surveyed, 80.3% considered lower alcohol prices and discounts would increase alcohol consumption, while 22.1% thought raising prices would decrease consumption, making lower price elasticity only (i.e. lower prices increase drinking, higher prices have no effect) the most common outcome (62%). Compared to a high income/high drinking category, the lightest drinkers with a low income (adjusted odds ratio AOR = 1.78, 95% confidence intervals CI 1.38-2.30) or medium income (AOR = 1.88, CI 1.47-2.41) were most likely to be lower price elastic. Females were more likely than males to be lower price elastic (65% vs 57%) while the reverse was true for complete elasticity (20% vs 26%, P < 0.001). Conclusions Lower pricing increases alcohol consumption, and the alcohol industry's continued focus on discounting sales encourages higher drinking levels. International evidence suggests increasing the price of alcohol reduces consumption, and one in five of the surveyed population agreed; more work is required to increase this agreement to achieve public support for policy change. Such policy should also recognise that alcohol is an addictive drug, and the population may be prepared to pay more to drink the amount they now feel they need. PMID:21861905

  12. Prices and mark-ups on antimalarials: evidence from nationally representative studies in six malaria-endemic countries.

    PubMed

    Palafox, Benjamin; Patouillard, Edith; Tougher, Sarah; Goodman, Catherine; Hanson, Kara; Kleinschmidt, Immo; Torres Rueda, Sergio; Kiefer, Sabine; O'Connell, Kate; Zinsou, Cyprien; Phok, Sochea; Akulayi, Louis; Arogundade, Ekundayo; Buyungo, Peter; Mpasela, Felton; Poyer, Stephen; Chavasse, Desmond

    2016-03-01

    The private for-profit sector is an important source of treatment for malaria. However, private patients face high prices for the recommended treatment for uncomplicated malaria, artemisinin combination therapies (ACTs), which makes them more likely to receive cheaper, less effective non-artemisinin therapies (nATs). This study seeks to better understand consumer antimalarial prices by documenting and exploring the pricing behaviour of retailers and wholesalers. Using data collected in 2009-10, we present survey estimates of antimalarial retail prices, and wholesale- and retail-level price mark-ups from six countries (Benin, Cambodia, the Democratic Republic of Congo, Nigeria, Uganda and Zambia), along with qualitative findings on factors affecting pricing decisions. Retail prices were lowest for nATs, followed by ACTs and artemisinin monotherapies (AMTs). Retailers applied the highest percentage mark-ups on nATs (range: 40% in Nigeria to 100% in Cambodia and Zambia), whereas mark-ups on ACTs (range: 22% in Nigeria to 71% in Zambia) and AMTs (range: 22% in Nigeria to 50% in Uganda) were similar in magnitude, but lower than those applied to nATs. Wholesale mark-ups were generally lower than those at retail level, and were similar across antimalarial categories in most countries. When setting prices wholesalers and retailers commonly considered supplier prices, prevailing market prices, product availability, product characteristics and the costs related to transporting goods, staff salaries and maintaining a property. Price discounts were regularly used to encourage sales and were sometimes used by wholesalers to reward long-term customers. Pricing constraints existed only in Benin where wholesaler and retailer mark-ups are regulated; however, unlicensed drug vendors based in open-air markets did not adhere to the pricing regime. These findings indicate that mark-ups on antimalarials are reasonable. Therefore, improving ACT affordability would be most readily achieved by interventions that reduce commodity prices for retailers, such as ACT subsidies, pooled purchasing mechanisms and cost-effective strategies to increase the distribution coverage area of wholesalers. © The Author 2015. Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine.

  13. Medicaid: Methods for Setting Nursing Home Rates Should be Improved.

    DTIC Science & Technology

    1986-05-01

    care facility SNF skilled nursing facility Page 7 GAO/HRJD.W626 Medicaid Nursing Home Rate Setting A,, I-?A -WI...consumer price index GNP Gross National Product HCFA Health Care Financing Administration HHS Department of Health and Human Services ICF intermediate

  14. Managing risks of market price uncertainty for a microgrid operation

    NASA Astrophysics Data System (ADS)

    Raghavan, Sriram

    After deregulation of electricity in the United States, the day-ahead and real-time markets allow load serving entities and generation companies to bid and purchase/sell energy under the supervision of the independent system operator (ISO). The electricity market prices are inherently uncertain, and can be highly volatile. The main objective of this thesis is to hedge against the risk from the uncertainty of the market prices when purchasing/selling energy from/to the market. The energy manager can also schedule distributed generators (DGs) and storage of the microgrid to meet the demand, in addition to energy transactions from the market. The risk measure used in this work is the variance of the uncertain market purchase/sale cost/revenue, assuming the price following a Gaussian distribution. Using Markowitz optimization, the risk is minimized to find the optimal mix of purchase from the markets. The problem is formulated as a mixed integer quadratic program. The microgrid at Illinois Institute of Technology (IIT) in Chicago, IL was used as a case study. The result of this work reveals the tradeoff faced by the microgrid energy manager between minimizing the risk and minimizing the mean of the total operating cost (TOC) of the microgrid. With this information, the microgrid energy manager can make decisions in the day-ahead and real-time markets according to their risk aversion preference. The assumption of market prices following Gaussian distribution is also verified to be reasonable for the purpose of hedging against their risks. This is done by comparing the result of the proposed formulation with that obtained from the sample market prices randomly generated using the distribution of actual historic market price data.

  15. Operationalizing value-based pricing of medicines : a taxonomy of approaches.

    PubMed

    Sussex, Jon; Towse, Adrian; Devlin, Nancy

    2013-01-01

    The UK Government is proposing a novel form of price regulation for branded medicines, which it has dubbed 'value-based pricing' (VBP). The specifics of how VBP will work are unclear. We provide an account of the possible means by which VBP of medicines might be operationalized, and a taxonomy to describe and categorize the various approaches. We begin with a brief discussion of the UK Government's proposal for VBP and proceed to define a taxonomy of approaches to VBP. The taxonomy has five main dimensions: (1) what is identified as being of value, (2) how each element is measured, (3) how it is valued, (4) how the different elements of value are aggregated, and (5) how the result is then used to determine the price of a medicine. We take as our starting point that VBP will include a measure of health gain and that, as proposed by the UK Government, this will be built on the QALY. Our principal interest is in the way criteria other than QALYs are taken into account, including severity of illness, the extent of unmet need, and wider societal considerations such as impacts on carers. We set out to: (1) identify and describe the full range of alternative means by which 'value' might be measured and valued, (2) identify and describe the options available for aggregating the different components of value to establish a maximum price, and (3) note the challenges and relative advantages associated with these approaches. We review the means by which aspects of VBP are currently operationalized in a selection of countries and place these, and proposals for the UK, in the context of our taxonomy. Finally, we give an initial assessment of the challenges, pros and cons of each approach. We conclude that identifying where VBP should lie on each of the five dimensions entails value judgements: there are no simple 'right or wrong' solutions. If a wider definition of value than incremental QALYs gained is adopted, as is desirable, then a pragmatic way to aggregate the different elements of value, including both QALYs and benefits unrelated to QALYs, is to use a multi-criteria decision analysis (MCDA) approach. All approaches to VBP ultimately require the conversion of value, however assessed, into a monetary price. This requires assessment of the marginal values of all types of benefit, not just of QALYs. All stages of the VBP process are subject to uncertainty and margins of error. Consequently, the assessment of overall value can provide bounds to a price negotiation but cannot be expected to identify a precise value-based price.

  16. Baseline assessment of WHO's target for both availability and affordability of essential medicines to treat non-communicable diseases.

    PubMed

    Ewen, Margaret; Zweekhorst, Marjolein; Regeer, Barbara; Laing, Richard

    2017-01-01

    WHO has set a voluntary target of 80% availability of affordable essential medicines, including generics, to treat major non-communicable diseases (NCDs), in the public and private sectors of countries by 2025. We undertook a secondary analysis of data from 30 surveys in low- and middle-income countries, conducted from 2008-2015 using the World Health Organization (WHO)/Health Action International (HAI) medicine availability and price survey methodology, to establish a baseline for this target. Data for 49 medicines (lowest priced generics and originator brands) to treat cardiovascular diseases (CVD), diabetes, chronic obstructive pulmonary diseases (COPD) and central nervous system (CNS) conditions were analysed to determine their availability in healthcare facilities and pharmacies, their affordability for those on low incomes (based on median patient prices of each medicine), and the percentage of medicines that were both available and affordable. Affordability was expressed as the number of days' wages of the lowest-paid unskilled government worker needed to purchase 30 days' supply using standard treatment regimens. Paying more than 1 days' wages was considered unaffordable. In low-income countries, 15.2% and 18.9% of lowest-priced generics met WHO's target in the public and private sectors, respectively, and 2.6% and 5.2% of originator brands. In lower-middle income countries, 23.8% and 23.2% of lowest priced generics, and 0.8% and 1.4% of originator brands, met the target in the public and private sectors, respectively. In upper-middle income countries, the situation was better for generics but still suboptimal as 36.0% and 39.4% met the target in public and private sectors, respectively. For originator brands in upper-middle income countries, none reached the target in the public sector and 13.7% in the private sector. Across the therapeutic groups for lowest priced generics, CVD medicines in low-income countries (11.9%), and CNS medicines in lower-middle (10.2%) and upper-middle income countries (33.3%), were least available and affordable in the public sector. In the private sector for lowest priced generics, CNS medicines were least available and affordable in all three country income groups (11.4%, 5.8% and 29.3% in low-, lower-middle and upper-middle income countries respectively). This data, which can act as a baseline for the WHO target, shows low availability and/or poor affordability is resulting in few essential NCD medicines meeting the target in low- and middle-income countries. In the era of Sustainable Development Goals, and as countries work to achieve Universal Health Coverage, increased commitments are needed by governments to improve the situation through the development of evidence-informed, nationally-contextualised interventions, with regular monitoring of NCD medicine availability, patient prices and affordability.

  17. Tobacco Pricing in Military Stores: Views of Military Policy Leaders

    PubMed Central

    Jahnke, Sara A.; Poston, Walker S.C.; Malone, Ruth E.; Haddock, Christopher K.

    2016-01-01

    Introduction: Higher tobacco taxes reduce tobacco use. On military installations, cigarettes and other tobacco products are sold tax-free, keeping prices artificially low. Pricing regulations in the military specify that tobacco should be within 5% of the local most competitive price, but prices still average almost 13% lower than those at local Walmarts. Methods: To gain insight into policy leaders’ ideas and positions on military tobacco pricing, we interviewed members of the Department of Defense (DoD) Addictive Substances Misuse Advisory Committee and the Advisory Committee on Tobacco about tobacco pricing policies (n = 12). Results: Participants frequently lacked specific knowledge of details of military pricing policy, and the impact higher prices might have on military tobacco use. Most participants thought tobacco should not be sold at military stores, but many also felt that this policy change was unlikely due to tobacco industry pressure, and DoD reliance on tobacco profits to support Morale, Welfare, and Recreation funds. Conclusions: Achieving a tobacco-free military will require changing pricing policy, but this study suggests that for effective implementation, military leadership must also understand and articulate more clearly the rationale for doing so. Implications: Previous work has found that adherence to military tobacco pricing policy is inconsistent at best. This study suggests that lack of knowledge about the policy and conflicting pressures resulting from the funding stream tobacco sales represent extend to high level military policy leaders. Without clearer information and direction, these leaders are unlikely to be able to establish and implement better tobacco pricing policy. PMID:27146639

  18. Impacts of Base-Case and Post-Contingency Constraint Relaxations on Static and Dynamic Operational Security

    NASA Astrophysics Data System (ADS)

    Salloum, Ahmed

    Constraint relaxation by definition means that certain security, operational, or financial constraints are allowed to be violated in the energy market model for a predetermined penalty price. System operators utilize this mechanism in an effort to impose a price-cap on shadow prices throughout the market. In addition, constraint relaxations can serve as corrective approximations that help in reducing the occurrence of infeasible or extreme solutions in the day-ahead markets. This work aims to capture the impact constraint relaxations have on system operational security. Moreover, this analysis also provides a better understanding of the correlation between DC market models and AC real-time systems and analyzes how relaxations in market models propagate to real-time systems. This information can be used not only to assess the criticality of constraint relaxations, but also as a basis for determining penalty prices more accurately. Constraint relaxations practice was replicated in this work using a test case and a real-life large-scale system, while capturing both energy market aspects and AC real-time system performance. System performance investigation included static and dynamic security analysis for base-case and post-contingency operating conditions. PJM peak hour loads were dynamically modeled in order to capture delayed voltage recovery and sustained depressed voltage profiles as a result of reactive power deficiency caused by constraint relaxations. Moreover, impacts of constraint relaxations on operational system security were investigated when risk based penalty prices are used. Transmission lines in the PJM system were categorized according to their risk index and each category was as-signed a different penalty price accordingly in order to avoid real-time overloads on high risk lines. This work also extends the investigation of constraint relaxations to post-contingency relaxations, where emergency limits are allowed to be relaxed in energy market models. Various scenarios were investigated to capture and compare between the impacts of base-case and post-contingency relaxations on real-time system performance, including the presence of both relaxations simultaneously. The effect of penalty prices on the number and magnitude of relaxations was investigated as well.

  19. International best practices for negotiating 'reimbursement contracts' with price rebates from pharmaceutical companies.

    PubMed

    Morgan, Steven; Daw, Jamie; Thomson, Paige

    2013-04-01

    Reimbursement contracts, in which health insurers receive rebates from drug manufacturers instead of paying the transparent list price, are becoming increasingly common worldwide. Through interviews with policy makers in nine high-income countries, we describe the use of these contracts around the globe and identify related policy challenges and best practices. Of the nine countries surveyed, the majority routinely use confidential reimbursement contracts. This alternative to drug coverage at list prices offers benefits but is not without challenges. Payers face increased administrative costs, difficulties enforcing contracts, and reduced information about prices paid by others. Among the best practices identified, policy makers recommend establishing clear and consistent processes for negotiating contracts with relatively simple rebate structures and transparency to the public about the existence, purpose, and type of reimbursement contracts in place. Policy makers should also work to address undesirable price disparities within their countries and internationally, which may occur as a result of this new pricing paradigm.

  20. European perspective on the costs and cost-effectiveness of cancer therapies.

    PubMed

    Drummond, Michael F; Mason, Anne R

    2007-01-10

    In Europe, the vast majority of the costs of cancer therapy fall on third-party payers, normally the government, or sickness funds. Therefore, the main focus of cost-effectiveness studies is to assist payers in deciding whether new therapies are worthwhile, despite their high cost. Drug budgets are regulated in most European countries. The main form of central control is price setting, with some form of reference pricing being the most common approach. This sets the price of drugs, either to an international standard, or to a common price for drugs in the same group or cluster. At the hospital level, the main control over cancer drugs is the hospital formulary. Studies have shown a wide variation among European countries in access to cancer drugs. Explanations for these variations include differences in research funding, the drug approval process, the role of health economics in decision making, and budgetary issues. Several countries in Europe now require economic data in making decisions about the reimbursement of new drugs. An examination of decisions made by the National Institute for Health and Clinical Excellence in the United Kingdom suggests that cancer drugs have fared quite well, with most recommendations being positive. This could be because of the seriousness of the health condition and the lack of alternative therapies for some cancer patients. If the policy of requesting cost-effectiveness evidence for pricing and reimbursement decisions becomes more popular, a major implication for the pharmaceutical industry is that studies should be conducted during phase III of clinical development to generate the required data.

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