ba 511 pricing
Post on 03-Jan-2016
18 Views
Preview:
DESCRIPTION
TRANSCRIPT
General Economic Influences Demand: Price, Income,
Price/availability of substitutes and complements, Market size (pop), Quality attributes, …
Supply: Price, Price of Inputs (materials, …), Technology, Competitive/Strategic Influences…
Supply: OPEC
Supply: Oil exploration+Tech
Demand: China-India
Gas Buddy Map
coefficient p-valueIntercept -0.5 0.01Oil Price ($) 3.7 0.01State Tax (cents) 0.7 0.01Pop (mil) -0.9 0.45
Pop2 0.3 0.03pop density 6e-3 0.01
(popdensity)2 4e-7 0.01
Distance Production (mi) 2e-2 0.01Distance Pipeline (mi) 8e-5 0.17Refinery 5 0.03BG 5 0.15KY 4 0.05
Crude oil $10 increase 3.7 cent gas
State Tax $10 cent increase 7 cent gas
Production 100 miles increase 2 cent gas
Kentucky 4 cent increase BG not sig different from zero
Omitted Variables: Distribution network complexities; strategic pricing; …
Nakamura Studies: Only 16% price changes fundamentals driven (higher with raw materials key)
Consumer Preferences & Transactions Costs Golden Gate Bridge; Disney; SW Bell (price as
product attribute) NYSE; Supermarkets (smoothing v. inventory)
Fixed Costs Pharmaceutical Drugs v. Supermarkets Cable Bundling (+ price discrimination)
Uncertainty Long Run: MLB, Apple Short Run: Selling Bagels
NYSE SpecialistSupermarkets
top related