Hiring and leasing with nonlinear prices
Article Abstract:
The problem of ascertaining the optimal rate of price discount is investigated. This problem involves uncertainty over the time of arrival of the next customer and over this next customer's type as demonstrated by this person's utility function or demand curve. This problem assumes that a monopolist sets a fixed hire price schedule where consumers self-select their own hire period dependent on this schedule, their payment for the period of hiring being received immediately after taking the hire. This problem involves a perishable product, discrimination between consumer types and capacity. Pricing policy is mainly determined by the customer arrival distribution. The solution is generally insensitive to fluctuations in the time rate of discount though the rate of price discount tends to rise with increases in the time discount rate.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1995
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Accounting for endogeneity when assessing strategy performance: does entry mode choice affect FDI survival
Article Abstract:
A study was conducted to show that estimates of strategy performance from empirical frameworks that do not support self-selection are misleading because companies select their strategies, and to characterize how and when firm strategy self-selection makes complex the empirical estimation of strategy performance. Survival was utilized as a performance measure to correlate investment values with an investing firm's control for five years after entry. A number of variables that influences foreign direct investment survival was also considered, including control for industry growth after investment and the four-firm concentration ratio. Foreign direct investment performance was significantly affected by entry mode choices indicating that companies with stronger sources of competitive advantage preferred new plants versus acquisitions.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1998
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