Price effects of spatial competition in retail fuel markets: the impact of a new rival nearby

2021 ◽  
Author(s):  
Leonardo C. B. Cardoso ◽  
Carlos Frederico A. Uchôa ◽  
Williams Huamani ◽  
David R. Just ◽  
Raúl V. Gomez
Keyword(s):  
Spatial Competition ◽  
Price Effects ◽  
The Impact

scholarly journals How price moderates assessments of coffee quality across profiles of gender and experience

2016 ◽  
Vol 47 (1) ◽  
pp. 49-60
Author(s):  
D. Priilaid ◽  
B. Horwitz
Keyword(s):  
Regression Models ◽  
Potential Cost ◽  
Ols Regression ◽  
Price Effects ◽  
Experienced Male ◽  
The Impact ◽  
Experienced Female ◽  
Method Show ◽  
Overlapping Bands

Proceeding from studies that identify the extrinsic price cue as a mediator between a product’s perceived and intrinsic merit, we report on a blind-versus-sighted coffee tasting experiment conducted to determine the impact of the price-cue across coffee-user categories of gender and relative experience. Seven instant coffees were tasted by 100 subjects producing 700 paired blind and sighted tastings. Aggregating the data, OLS regression models were run to estimate price-effects across discrete and overlapping bands of gender and self-confessed expertise (non-expert and expert). Our analysis reveals the extent to which price-effects demean a coffee’s intrinsic merit during sighted tastings, with experienced male coffee drinkers most especially susceptible to price persuasion, and less experienced female drinkers the least. Thus our paper introduces a cheap and affective means of testing for such cue-effects. Neuromarketing styles of testing are usually cumbersome, expensive and difficult to scale. The method show-cased here offers a meaningful alternative. These findings uphold the view that the price cue remains a critical tool in the marketing of coffee; most notably because of its potential cost-free contribution to the ramping of experienced pleasure without any augmentation of quality. Further implications are explored.

scholarly journals The Impact of Transportation Costs on Spatial Competition of Grain Buyers: An Iowa Case Study

2010 ◽  
Author(s):  
Miguel A. Carriquiry ◽  
Bruce A. Babcock
Keyword(s):  
Mississippi River ◽  
Spatial Competition ◽  
Transportation Cost ◽  
Transportation Costs ◽  
Lower Price ◽  
Classic Model ◽  
The North ◽  
Scott County ◽  
The Impact

Hotelling's classic model of spatial competition is adapted to estimate the impacts on grain price of the closure of one of three grain buyers on the Mississippi River in the vicinity of Scott County, Iowa. The customers of the buyer who is closing (River Gulf Grain Company) in Davenport, Iowa, are assumed to deliver their grain to a buyer in either Buffalo, Iowa, to the south or to a buyer in Clinton, Iowa, to the north. Calibration of Hotelling's framework to this situation leads to an estimated decline in grain bids of 1.5¢ per bushel for the buyer located in Clinton and by 2.5¢ per bushel for the buyer located in Buffalo. These estimates are based on an incremental transportation cost of 0.15¢ per mile between the seller's farm and the buyer. This price decline would reduce gross receipts of the farmers who currently deliver to Davenport by approximately $264,000 per year. The effect of lower price bids on gross receipts of all area farmers would be approximately $750,000 per year. Transportation costs would increase by an estimated $75,000 for those farmers who would have to haul their grain farther because of the closure.

Price effects of surface street traffic on residential property

2014 ◽  
Vol 7 (2) ◽  
pp. 189-203 ◽  
Author(s):  
James E. Larsen ◽  
John P. Blair
Keyword(s):  
Residential Property ◽  
Single Family ◽  
Content Type ◽  
Arterial Streets ◽  
Price Effects ◽  
Residential Properties ◽  
Negative Effect ◽  
Street Traffic ◽  
The Impact ◽  
Family House

Purpose – The purpose of this study is to gauge and compare the impact of surface street traffic externalities on residential properties. Limited previous research indicates that negative externalities dominate for single-family houses. Our objective is to verify that this result applies to our sample, and to determine if the same result extends to multi-unit rental properties. Design/methodology/approach – Hedonic regression is used to analyze data from 9,680 single-family house transactions and 455 multi-unit rental properties to measure the influence of surface street traffic on the price of the two property types. Findings – Houses located adjacent to an arterial street sold at a 7.8 per cent discount, on average, compared to similar houses located on collector streets. Limiting the analysis to houses adjacent to an arterial street (where traffic counts were available), price and traffic count are negatively related. The results for multi-unit rental dwellings are dramatically different. Multi-unit properties adjacent to an arterial street sold at a 13.75 per cent premium compared to similar properties on collector streets, and when limiting the analysis to properties on arterial streets, no significant relationship was detected between price and traffic volume. Originality/value – This is the first empirical study of the influence of surface street traffic on both single-family houses and multi-unit rental residential property. Evidence is provided that traffic externalities impact the two types of properties quite differently. To the extent that this result applies to other locations, the authors suggest planners may be able to use such information to reduce the negative effect of traffic externalities on residential property associated with changes that will increase traffic flow.

An Empirical Analysis of the Effect of Sub-Divisions of American Viticultural Areas on Wine Prices: A Hedonic Study of Napa Valley

2020 ◽  
Vol 15 (3) ◽  
pp. 312-329
Author(s):  
Grant Bartlett Keating
Keyword(s):  
Hedonic Pricing ◽  
Pricing Model ◽  
Price Effect ◽  
Wine Grapes ◽  
Hedonic Pricing Model ◽  
Napa Valley ◽  
Price Effects ◽  
The Individual ◽  
The Impact ◽  
Unique Dataset

AbstractAmerican Viticultural Areas (AVAs) are descriptors of where wine grapes are grown that are designed to capture qualities unique to the wine and to influence its price. Sub-AVAs are sub-divisions of well-known AVAs designed to have the same effect. In this paper, I study the impact of the Napa Valley Sub-AVA system on the pricing and rating of Napa Valley wines. The analysis utilizes a primary hedonic pricing model to isolate both the individual Sub-AVA's price effect and the system's cumulative price effect. This study uses a unique dataset of 5,017 Napa Valley wines reviewed by the Connoisseurs’ Guide to California Wine over the 10-year period from 2004–2013. Estimated price effects persist even after controlling for rating differences, implying that consumers value the wines of sub-AVA's independently of critics’ ratings. These results indicate that Sub-AVAs deliver a more substantial price effect than previous literature has suggested. (JEL Classifications: C01, L10, L66, O13)

The Impact of Advertising Positioning Strategies on Consumer Price Sensitivity

1998 ◽  
Vol 35 (2) ◽  
pp. 210-224 ◽  
Author(s):  
Ajay Kalra ◽  
Ronald C. Goodstein
Keyword(s):  
Brand Equity ◽  
Advertising Effectiveness ◽  
Price Sensitivity ◽  
Product Categories ◽  
Positioning Strategy ◽  
Price Effects ◽  
The Impact

The authors examine the link between advertising and price effects and propose that this relationship depends on the specific advertising positioning strategy employed by an advertiser. The authors note that advertising has different goals, depending on the competitive context of the brand, with some advertisers positioned to differentiate between brands and others positioned to narrow the perceived difference between brands. The authors identify specific types of nonprice advertising positioning that increase brand equity and category price sensitivity, those that decrease both, and those that increase brand equity while increasing category price sensitivity. The hypotheses are tested in two experiments across different product categories. The results imply that tests of advertising effectiveness must extend beyond brand attitudinal measures.

scholarly journals Machine Learning, Architectural Styles and Property Values

2021 ◽  
Author(s):  
Thies Lindenthal ◽  
Erik B. Johnson
Keyword(s):  
Machine Learning ◽  
Property Values ◽  
Hedonic Model ◽  
Architectural Style ◽  
Architectural Styles ◽  
Price Effects ◽  
New Construction ◽  
Price Differences ◽  
The Impact ◽  
Neighborhood Level

AbstractThis paper couples a traditional hedonic model with architectural style classifications from human experts and machine learning (ML) enabled classifiers to estimate sales price premia over architectural styles, both at the building and the neighborhood-level. We find statistically and economically significant price differences for houses from distinct architectural styles across an array of specifications and modeling assumptions. Comparisons between classifications from ML models and human experts illustrate the conditions under which ML classifiers may perform at least as reliable as human experts in mass appraisal models. Hedonic estimates illustrate that the impact of architectural style on price is attenuated by properties with less well-defined styles and we find no evidence for differential price effects of Revival or Contemporary architecture for new construction.

scholarly journals The impact of the spatial heterogeneity of resistant cells and fibroblasts on treatment response

2021 ◽  
Author(s):  
Masud M.A ◽  
Jae-Young Kim ◽  
Cheol-Ho Pan ◽  
Eunjung Kim
Keyword(s):  
Cancer Cell ◽  
Spatial Competition ◽  
Adaptive Strategy ◽  
Maximum Tolerated Dose ◽  
Resistant Cell ◽  
Drug Resistant ◽  
Continuous Therapy ◽  
The Impact ◽  
Adaptive Therapy ◽  
Resistant Cells

A long-standing practice in the treatment of cancer is that of hitting hard with the maximum tolerated dose to eradicate tumors. This continuous therapy, however, selects for resistant cells, leading to the failure of the treatment. A different type of treatment strategy, adaptive therapy, has recently been shown to have a degree of success in both preclinical xenograft experiments and clinical trials. Adaptive therapy is used to maintain a tumor's volume by exploiting the competition between drug-sensitive and drug-resistant cells with minimum effective drug doses or timed drug holidays. To further understand the role of competition in the outcomes of adaptive therapy, we developed a 2D on-lattice agent-based model. Our simulations show that the superiority of the adaptive strategy over continuous therapy depends on the local competition shaped by the spatial distribution of resistant cells. Cancer cell migration and increased carrying capacity accelerate the progression of the tumor under both types of treatments by reducing the spatial competition. Intratumor competition can also be affected by fibroblasts, which produce microenvironmental factors that promote cancer cell growth. Our simulations show that the spatial architecture of fibroblasts modulates the benefits of adaptive therapy. Finally, as a proof of concept, we simulated the outcomes of adaptive therapy in multiple metastatic sites composed of different spatial distributions of fibroblasts and drug-resistant cell populations.

scholarly journals Measuring The Impact Of Branded Alcohol Advertising And Price On Brand Versus Segment Consumption

2014 ◽  
Vol 13 (6) ◽  
pp. 1515
Author(s):  
Marlize Terblanche-Smit ◽  
Ronel Du Preez ◽  
Tiaan Van der Spuy
Keyword(s):  
Time Series ◽  
Data Analysis ◽  
Market Share ◽  
Marketing Mix ◽  
Series Data ◽  
Selling Price ◽  
Advertising Expenditure ◽  
Alcohol Advertising ◽  
Price Effects ◽  
The Impact

Branded advertising, a foundation of brand-building efforts, seek to persuade consumers to select a specific brand over a competitor brand. The objective of this study was to examine the effectiveness of branded advertising in the alcoholic beverage industry of South Africa, particularly with regard to the relationship between alcohol advertising, price effects and alcohol consumption (brand and segment). A causal research design was used, which included secondary data analysis (SDA) and quantitative time series data analysis spanning a 32 months period. Variables included brand advertising expenditure; -sales volume; -market share; -retail selling price (RSP); and segment volume. Tests for stationarity, co-integration and regression were applied to assess associations between constructs. The findings indicate that branded alcohol advertising had little or no effect on brand- and segment consumption, or brand market share whereas price effects were significant. Limitations include the scope of the time series of data and the exclusion of below-the-line advertising expenditure. Notwithstanding, this paper provides evidence to support the imperative of the integrated marketing mix and optimal combination of marketing mix elements.

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