scholarly journals Price discrimination in two-sided markets

2016 ◽  
Vol 19 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Kai Zhang ◽  
Weiqi Liu
Keyword(s):  
Discount Rate ◽  
Price Discrimination ◽  
Market Value ◽  
Discrimination Threshold ◽  
Lower Price ◽  
Time Increase ◽  
Exogenous Variables ◽  
Market Shares ◽  
Good For ◽  
Two Sided Markets

The use of a price discrimination strategy is an important tool in competition. It can hurt firms and benefit consumers in a one-sided market. However, in two-sided markets, its primary goal is to attract more agents or increase profits. Here, the performance of a second-degree price discrimination strategy in the context of duopoly two-sided platforms is analysed. Two exogenous variables, which include the discount rate and the price discrimination threshold, are used in order to examine whether the price discrimination strategy could help two-sided platforms achieve their objective, which is to maximise their market value. Three cases are considered, and we demonstrate that the price discrimination strategy cannot attract more agents and at the same time increase the profits; a lower price discrimination threshold cannot ensure larger markets shares; a higher discount rate is detrimental to the profit of a platform. However, this is good for its market shares. Moreover, discriminative pricing increases the competition.

Determining the discount rate when evaluating trade organizations: Some features

2020 ◽  
Vol 13 (1) ◽  
pp. 71-84
Author(s):  
E.A. Grigor'eva ◽  
A.S. Buzhikeeva
Keyword(s):  
Discount Rate ◽  
Economic Activity ◽  
Systems Approach ◽  
Market Value ◽  
Additional Risk ◽  
Evaluation Procedures ◽  
Analytical Research ◽  
Definition Of ◽  
Traditional Approaches

Subject. This article deals with the issues of determining the market value of the trading business, taking into account a number of characteristics. Objectives. The article aims to develop certain provisions of the methodology and practice of evaluating the business of trading organizations, namely, taking into account the additional risk of inventory feasibility when calculating the discount rate. Methods. For the study, we used a systems approach, and the cognition, and economic and analytical research methods. Results. The article presents a three-tiered classification of stocks and a definition of risk based on the criteria for dividing stocks by purpose, degree of implementation, and shelf life in accordance with the scale. Based on the classification, the article offers certain recommendations for determining the discount rate when evaluating trading organizations, aimed at taking into account additional risk. Conclusions. Various evaluation procedures within the framework of traditional approaches and methods in relation to trading organizations do not take into account risk specific to this type of economic activity. The proposed methodology for calculating the discount rate for trade organizations takes into account the features of their functioning.

The Valuation Relevance of Reversing Deferred Tax Liabilities

2004 ◽  
Vol 79 (2) ◽  
pp. 437-451 ◽  
Author(s):  
David A. Guenther ◽  
Richard C. Sansing
Keyword(s):  
Discount Rate ◽  
Firm Value ◽  
Market Value ◽  
Present Value ◽  
Depreciation Rate ◽  
The Future ◽  
Deferred Tax Liabilities ◽  
Deferred Tax ◽  
Tax Depreciation ◽  
Depreciation Methods

This paper compares two attributes of a deferred tax liability (DTL) that arise from differences in book and tax depreciation methods. The first attribute is the effect of the DTL on the market value of the firm. The second is the length of time between when the asset is placed into service and when the DTL associated with that asset begins to reverse. The paper shows that a decrease in the time it takes for the DTL to begin to reverse is neither necessary nor sufficient for the value of the DTL to increase. It also shows that the value of the DTL is not equal to the present value of the future deferred tax expense. The effect of one dollar of DTL on firm value depends only on the tax depreciation rate and the discount rate.

scholarly journals The Features of Market Value Assessment of the Objects of Intellectual Property When Conducting Forensic Expertise

2019 ◽  
Vol 14 (2) ◽  
pp. 128-135
Author(s):  
K. H. Mamikonyan
Keyword(s):  
Intellectual Property ◽  
Discount Rate ◽  
Initial Conditions ◽  
Traditional Approach ◽  
Weighted Average ◽  
Market Value ◽  
Assessment Method ◽  
Value Assessment ◽  
Debt Capital ◽  
Investment Capital

Illicit use of intellectual property violates the rights of the person/company that owns it. The expertise of intellectual property in many ways helps to restore justice in cases of rights violation. To conduct such expertise the knowledge of not only the intellectual property rights is required, but also of the activity to which the disputed intellectual property belongs. The article discusses some approaches to assessment of the market value of intellectual property, for instance it is assumed that when calculating the discount rate of intellectual property (for example, a brand), a company’s weighted average cost of capital (WACC) can be used. A hypothesis is substantiated that the methodology for determining discount rates using the “traditional” approach, when the discount rate takes all risks into account and is applied to the most probable values of the income measure, is based on the direct observations on the capital value market for a business. It is noted that the discount rate for intangible assets not necessarily should differ from that for a business. Thus, WACC assessment method is a discount rate for the invested capital. The method of estimating the discount rate based on WACC, shows the rate of return to be paid for the use of investment capital. The latter may consist of two sources of financing: own capital and debt capital. The article provides a thorough and detailed analysis of the WACC and notes that it can be used in both financial and investment analysis to assess future returns on investments, considering the initial conditions for profitability of investment capital.

scholarly journals PRICE DETERMINANTS OF BRED COWS

2017 ◽  
Vol 50 (1) ◽  
pp. 64-80 ◽  
Author(s):  
JAMES L. MITCHELL ◽  
DERRELL S. PEEL ◽  
B. WADE BRORSEN
Keyword(s):  
Market Value ◽  
Lower Price ◽  
High Quality ◽  
Agricultural Marketing ◽  
Price Premiums ◽  
Hedonic Modeling ◽  
Price Determinants ◽  
Marketing Service ◽  
Service Data

AbstractHedonic modeling of Oklahoma cow auction data is used to determine the market value of bred cow characteristics. We use Agricultural Marketing Service data that let us consider more years and more lots of cattle than is typical for a cattle hedonic study. The greatest price premiums were for black, late-gestating cows, categorized as high quality by market reporters and weighing between 1,600 and 1,700 lb. Previous research on optimal cow size finds much smaller-size cows are optimal, and our research finds that larger cows receive a lower price per pound but still receive a substantially higher price per head.

scholarly journals Discounting pension liabilities: funding versus value

2016 ◽  
Vol 15 (3) ◽  
pp. 254-284 ◽  
Author(s):  
JEFFREY R. BROWN ◽  
GEORGE G. PENNACCHI
Keyword(s):  
Discount Rate ◽  
Default Risk ◽  
Market Value ◽  
Public Pensions ◽  
Discount Rates ◽  
Cost Of Living ◽  
Pension Benefits ◽  
Pension Liabilities

AbstractWe argue that the appropriate discount rate for pension liabilities depends on the objective. In particular, if the objective is to measure pension under- or overfunding, a default-free discount rate should always be used, even if the liabilities are themselves not default-free. If, instead, the objective is to determine the market value of pension benefits, then it is appropriate that discount rates incorporate default risk. We also discuss the choice of a default-free discount rate. Finally, we show how cost-of-living adjustments that are common in public pensions can be accounted for and valued in this framework.

scholarly journals PARALLEL IMPORTS, INNOVATIONS AND NATIONAL WELFARE: THE ROLE OF THE SIZES OF INCOME CLASSES AND NATIONAL MARKETS FOR HEALTH CARE

2008 ◽  
Vol 53 (01) ◽  
pp. 57-79 ◽  
Author(s):  
RAJAT ACHARYYA ◽  
MARÍA D.C. GARCÍA-ALONSO
Keyword(s):  
Health Care ◽  
Price Discrimination ◽  
Third World ◽  
Lower Price ◽  
Parallel Imports ◽  
The Third ◽  
National Welfare ◽  
The Third World ◽  
Health Care Innovation

This paper shows that regardless of any intra-country income differences, parallel imports result in a lower level of health-care innovation but, contrary to popular as well as conventional theoretical wisdom, a lower price in the Third World compared to market-based discrimination. Despite such a lower price, however, parallel imports unambiguously make all buyers in the Third World worse off when intra-country income disparity exists. On the other hand, even discarding the MNC's profit, there will be cases in which the richer country prefers price discrimination as well. That is, in those cases, no countries will have any incentive under the welfare criterion to undo price discrimination, contrary to Richardson (2002).

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