Price Discounts for Unlisted Equity Securities with Random or Indefinite Liquidity Horizons

2021 ◽  
Vol 30 (3) ◽  
pp. 92-107
Author(s):  
Stillian Ghaidarov
Author(s):  
Andriy Kolomiyets ◽  

The article presents an overview of methods for determining the effectiveness of advertising appeals of the enterprise in conditions of competition. It is shown that the sale of goods in large batches leads to a reduction in sales costs associated with the organization of sales, transportation and storage. Therefore, when providing a quantitative discount, their value should not exceed the amount of cost savings of the seller, which is caused by the sale of goods in large batches. Similar to the effects of real responses to advertising appeals, the effects of the price of the enterprise's products are distinguished: the current effect, the form effect, the competition effect and the transition effect. The process of modeling the effects of the promotion price and the control price is considered, and of interest is the temporary price for the buyer with a discount, which is actually provided by sales managers at the enterprise. Then there will be an effect of discounts on temporary base prices. The price discount is considered as a part of the price of the goods which can be introduced by the enterprises-manufacturers for the purpose of stimulation and interest of the enterprises-sellers to sell production. In the study of product sales, a problem was found related to sales of products in the area of the price discount offered by the price list, which represents the constant prices of the company for a certain period of time. The promotion price is defined as the discount on the products of the enterprise price according to the price list. It is determined that buyers, focusing on the system of discounts, avoid buying hardware in the approach to the transition of prices and increase the volume of purchases after the transition discount. A comparison of retail and base prices, and base and wholesale prices for hardware. It is proved that the company when approaching the price discount loses the profit that could be obtained, and this problem causes losses to both parties and the seller and buyer. It is shown that the policy of promoting price discounts of Metal-Holding encourages consumers to buy more hardware, which is not beneficial to the buyer, because it causes additional costs for storage of the balance. It is concluded that the problem at some weight interval when approaching the existing price discount on the left and right requires the establishment of a floating price discount on the company's products.


SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110241
Author(s):  
Ya-Ling Chiu ◽  
Yuan-Teng Hsu ◽  
Xiaoyu Mao ◽  
Jying-Nan Wang

When online retailers allow third-party sellers to place certain products on their platforms, these sellers become not only collaborators but also competitors. The purpose of this study is to compare the differences in price discounts between Third-Party Marketplace (3PM) sellers and Fulfilled by Walmart (FBW) sellers on Walmart.com over time. The results, based on data collected in the form of the daily prices of 54,162 products offered by Walmart during the holiday season, show that the average discount for 3PM sellers is significantly lower than that for FBW sellers. In addition, across product categories, FBW sellers had significantly higher average discounts than 3PM sellers in the electronics, housewares, and toys categories. Furthermore, the level of discount began to increase in early November and peaked around Christmas. Our findings may help retailers manage their dealings with these third-party sellers while also helping consumers to optimize their purchasing decisions.


2017 ◽  
Vol 45 (5) ◽  
pp. 757-772 ◽  
Author(s):  
Kikyoung Park ◽  
Gangseog Ryu ◽  
Youngjee Han

We investigated the combined effect on consumers of the perceptual fluency of price discounts and the two promotional cues of discount duration and frequency. We proposed that consumers' initial responses to price discounts would be maintained or modified depending on the processing fluency of discount information. Results from 2 experiments showed that when a promotional cue implied a short discount duration or low discount frequency and the discount information was difficult to process, participants perceived the duration as longer or the frequency as higher, and they evaluated the product less favorably if the discount information was difficult to process compared to if it was easy to process. On the contrary, when a cue implied a long discount duration or a high discount frequency, participants perceived the duration as shorter or the frequency as lower and evaluated the product more favorably if the discount information was difficult to process compared to if it was easy to process. We show conditions in which processing disfluency can be beneficial.


2021 ◽  
pp. 1-27
Author(s):  
Hanbali Hamza

Abstract This paper investigates the benefits of incorporating diversification effects into the pricing process of insurance policies from two different business lines. The paper shows that, for the same risk reduction, insurers pricing policies jointly can have a competitive advantage over those pricing them separately. However, the choice of competitiveness constrains the underwriting flexibility of joint pricers. The paper goes a step further by modelling explicitly the relationship between premiums and the number of customers in each line. Using the total collected premiums as a criterion to compare the competing strategies, the paper provides conditions for the optimal pricing decision based on policyholders’ sensitivity to price discounts. The results are illustrated for a portfolio of annuities and assurances. Further, using non-life data from the Brazilian insurance market, an empirical exploration shows that most pairs satisfy the condition for being priced jointly, even when pairwise correlations are high.


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