Competitive Strategy of Firms’ Participation in the Global Value Chains and Labor Income Share

The division of labor in the global value chain (GVC) has reshaped the competitive advantage of enterprises participating in the international market and has a significant influence on the distribution of their factor income. Based on the perspective of market choice, this paper uses China’s industrial enterprises’ data, Customs Statistical Data on Import and Export, Word Input and Output Database (WIOD), and BACI database from 2000 to 2007 to analyze the effect of competitive strategy of a firm’s GVC participation on its labor income share. Herein, the competition strategy is depicted by the quality and price of export goods. The empirical results show the following. (1) Quality competition has a larger effect on labor income share than price competition. High-quality and high-price or high-quality and low-price strategies tend to have a significant negative effect on labor income share, while low-quality and low-price and low-quality and high-price strategies have a positive effect. (2) The higher the target market GVC status, the lower the labor income share of exporting firms, and the target market GVC status amplifies that the high-quality and high-price strategies on firms’ labor income share the negative effect of high-quality and low-price strategies on exporters’ labor income share. (3) High-quality and low-price strategies have a significant negative effect on exporters’ labor income share when competing with developing countries in developed country markets or with developed countries in developing country markets. However, the positive effect of low-quality and low-price strategies and low-quality and high-price strategies kept unchanged. The findings remain robust after controlling for endogeneity and accounting for the effects of firm heterogeneity, indicator measurement, and sample variation.

STRATEGI PENETAPAN HARGA DALAM MENINGKATKAN PROFITABILITAS USAHA KONVEKSI KEMBANG MAS

Pricing strategy is the most important decision in marketing activities. Because it will have a direct impact on the acceptance of a company's opinion, the profit obtained is one source because of the price offered to consumers. The partner who is the place of activity is a business engaged in the embroidery convection which is located in West Jakarta. PKM activities are carried out by looking at the problems of SMEs, especially in terms of price strategies offered to consumers, plus there are quite a lot of border businesses around partners, so partners need to have the right price strategy in dealing with competitors and increasing profits. The method offered to training/socialization partners is in the form of a zoom meeting, which includes an introduction to pricing strategies, pricing goals, and steps to determine the selling price that partners should use. The results of the activities carried out run well, partners gain knowledge about pricing strategies, to increase their profits. Strategi harga merupakan keputusan yang paling penting dalam kegiatan pemasaran karena akan berdampak secara langsung pada penerimaan pendapat suatu perusahan. Selanjutnya keuntungan yang diperoleh dapat menjadi salah satu sumber karena adanya harga yang ditawarkan ke konsumen. Mitra yang menjadi tempat kegiatan merupakan usaha yang bergerak di bidang konveksi bordir yang berlokasi di Jakarta Barat. Kegiatan PKM dilakukan dengan melihat permasalahan UKM terutama dalam hal strategi harga yang ditawarkan ke konsumen, ditambah lagi usaha bordir di sekitar mitra cukup banyak, sehingga mitra perlu memiliki strategi harga yang tepat dalam menghadapi pesaing dan meningkatkan keuntungan. Metode yang ditawarkan ke mitra pelatihan/sosialisasi secara online dalam bentuk zoom meeting. yang meliputi pengenalan tentang strategi harga, sasaran penetapan harga, dan langkah melakukan penetapan harga jual yang sebaiknya digunakan mitra. Hasil kegiatan yang dilakukan berjalan dengan lancar, mitra mendapatkan bekal pengetahuan tentang strategi harga, dalam upaya meningkatkan keuntungan .

The Economics of Platforms

Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.

Brokers’ list price setting in an auction context

Purpose The role of list price is often discussed in a narrative describing sellers’ preferences or sellers’ price expectations. This paper aims to investigate a set of list price strategies that real estate brokers have available to influence the outcome of the sale, which may be many times self-serving. Design/methodology/approach By analyzing real estate brokers’ arguments on the choice of the list price level, a couple of hypotheses are formulated with regard to different expected outcomes that depend on the list price. This study empirically tests two hypotheses for the underlying incentives in the choice of list price from the real estate broker’s perspective: lower list price compared to market value leads to the higher sales price, lower list price compared to market value leads to a quicker sale. To investigate the two hypotheses, this paper adopts different methodological frameworks: H1 is tested by running a classical hedonic model, while H2 is tested through a duration model. This study further tests the hypotheses by splitting the full sample into two different price segments: above and below the median list price. Findings The results show that H1 is rejected for the full sample and for the two sub-samples. That is, contrary to the common narrative among brokers that underpricing leads to a higher sales price, underpricing lower sales price. H2, however, receives support for the full sample and for the two sub-samples. The latter result points to that brokers may be tempted to recommend a list price significantly below the expected selling price to minimize their effort while showing a high turnover of apartments. Originality/value Although there are a large number of previous studies analyzing list price strategies in the housing market, this paper is one of the few empirical studies that address the effect of list price choice level on auction outcomes of non-distressed housing sales.

The optimal pricing model of online knowledge payment goods in C2C sharing economy

Purpose The purpose of this paper is to research the price strategies of online knowledge payment product by considering network externality in the C2C sharing economy. Design/methodology/approach Considering the characteristics of online knowledge goods and the social network externality of consumers, this study establishes a consumer utility function. On this basis, a multistage game pricing model of online knowledge products is established based on three kinds of network price strategies under a completely competitive market structure. It also analyzes the influence of consumer social network structure and consumer utility on online knowledge product pricing and producer profit, as well as the influence of consumer quantity and discount rate on pricing strategy. Findings The consumer social network and consumer utility affect the pricing of online knowledge product under different price strategies. In the growth period of the platform, adopting the price discrimination strategy, the profit of producers is significantly higher than that of other price strategies, and producers should choose effective price strategies for reasonable pricing in combination with their own sales objectives. Originality/value This study enriches the literature on the pricing model of online knowledge payment product and owns a practical significance to guide the knowledge producers’ marketing strategies to increase profit.

Non-monetary price perceived in e-peer-to peer accommodation. Airbnb guests’ perspective

Price is considered as a key variable in predicting buying behavior. However, few studies have focused on how non-monetary price is affected and can affect other components of the consumer endogenous variables. This paper seeks (1) to analyze the effects of antecedents of behavioural price (past experience, the benefits and risks of peer to peer accommodation services) on the guest perceived price, and (2) to determine the effect of this price and past experience on guest intentions. With a sample of 136 Airbnb guests and the use of SEM, results show that past experience, financial risk, and time risk influence the non-monetary perceived price. This price and past experience affect guest intentions. This paper tries to bridge certain gaps detected in the literature: (1) we propose to extend the two main factors underlined, considering non-monetary costs, (2) this paper focuses on peer consumers because there is a lack of specification in previous studies due to authors have not differentiated users into host or guest when they analyse intentions, (3) previous literature has research in Airbnb prices but not in the factors that affect price, not in behavioural price strategies, and (4) much of the work to date has been qualitative in nature, whereas this study takes a quantitative approach.

Die Systematisierung von Rechtfertigungsgründen im preisbezogenen Behinderungsmissbrauch nach Art. 102 AEUV

Low-price strategies of undertakings with a dominant market position are often subject to an inadequate abuse-analysis evaluation for the individual case. Thus, a systematic integration of grounds of justification in the examination according to Art. 102 TFEU seems overdue. In an interdisciplinary discourse, after a brief dogmatic classification, efficiency- and competition-specific anchor points are explored, which basically allow individual grounds of justification to be categorized according to application. This is followed by a differentiation in structure and content. The integration of reliable economic knowledge is of particular importance.

Price Strategies of Exporters in Conditions of Crisis Caused by Pandemia

Price is the most important tool of company behavior on market, whose changes are caught immediately by customers, competitors and state structures. Adequate pricing can bring profit to the company and raise its competitiveness and stability on market. Unfortunately, rather often price decisions of home exporters working on non-raw material markets are only a response to competitors’ steps and they aim at reaching tactical, momentary but not strategic goals. Companies usually try to use the same price strategies on foreign markets as they use on national market. In conditions of the global crisis, uneven introduction of isolation regime and border closing by countries, breaking supply chains, bankruptcy or closure of national companies Russian exporters face the loss of distribution channels developed earlier. On the other hand, in these conditions they get an opportunity not only to settle on developed markets nut to penetrate new overseas markets in such segments, where the work of local companies was cut or shut down. In any case home exporters should think over their price strategy on foreign market and research changes in customer preferences, in their perception of company product value. The author gives recommendations aimed at improving exporters’ pricing in conditions of 2020 crisis on the basis of analyzing customers in view of their contribution to the company profit.