Price-level stabilization rules in a Wicksellian model of the cumulative process

Article Abstract:

Knut Wicksell's cumulative process analysis prescribes two feedback rules for central bankers to stabilize prices. One calls for a halts inflation or deflation by directing policymakers to adjust the market rate of interest in the same way the prices are moving. The other calls for oscillating prices around a target level by directing the bank rates to return to a fixed target level. Analysis shows that a combination of these two rules into a single feedback response function would render the Wicksellian model capable of restoring prices to target and dynamically stable.

Models, Analysis, Economic policy

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Product differentiation, competition and regulation of new drugs: the case of statins in four European countries

Article Abstract:

Competition of statins in Germany, Netherlands, France and United Kingdom during 1991 to 2002, a time when there were no generic subsitutes for these drugs, is analyzed. Results showed that entry of pravastatin and simvastatin demonstrated some price differentiation, and the competition improved as the market matured, where brand reputation became more significant. The effects of introduction of subsequent statins on prices and market share of older ones are evaluated.

Europe, Product introduction, Commodity & service prices, New Products/Services, Market share, Prices and rates, Company market share, Company pricing policy, Statins, Report

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Bertrand price competition in a social environment

Article Abstract:

Research is presented on price competition between firms that interact locally in a social environment, according to the behavioural rule, 'Win Cooperate, Lose Defect.' The development of price dispersion, collusive behaviour, and brief local price wars is looked at within the context of an evolutionary game-theory model.

Social aspects, Competition (Economics), Economic aspects, Prices, Interpersonal relations, Price fixing, Social interaction, Local finance

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