Demand uncertainty and price maintenance: markdowns as destructive competition

Article Abstract:

An analysis of pricing policy in lew of demand uncertainty reveals that markdowns constitute destructive competition as manufacturer profits and equilibrium inventories are higher under minimum resale price maintenance than under market-clearing. The higher the manufacturer inventory and profit is, the higher the consumer surplus and this translates to unrestrained retail competition or destructive competition among retailers.

Retail Trade, Competition (Economics), Demand functions (Economics), Demand functions, Markdowns

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An efficient ascending-bid auction for multiple objects

Article Abstract:

The efficacy of standard auction methods in multi-unit auctions is analyzed. It is observed that standard auction methods fail under such a situation. A new ascending-bid auction system for handling multiple unit demands is suggested for efficient outcomes.

Management dynamics, Management, Letting of contracts, Competitive bidding, Company business management

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Optimal pricing mechanisms with unknown demand

Article Abstract:

A new pricing mechanism to examine profitability of bidding mechanisms in relation to posted pricing under unknown demand distribution is proposed.

Elasticity (Economics), Product price

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