Can Producers’ Price War End Up in an Optimal Allocation?

The paper presents a theoretical framework for the phenomenon of the price war in the context of general equilibrium, with special attention to the production system. The natural question that arises is whether Nash-optimal production plans being the reactions to the changing prices can finally approximate a Nash-optimal production plan at the end of this war. To provide an answer, the production system is described as a parametric-multicriteria game. Referring to some results on the lower semicontinuty of the parametric weak-multicriteria Nash equilibria, we provide a positive answer for the stated problem.

Buddha Air: The Ace Airline of Nepal

This is a case study of a pioneering airlines company in the Nepalese aviation sector. The airlines came into full operation in 1997 by flying a brand new Beachcraft-1900D for a regular sightseeing to Mount Everest. When the airlines entered the field which was opened for the private sector by the government of Nepal in the early nineties, the country’s nascent aviation sector was in a state of take-off attracting a growing number of airline companies. Despite tough competition, the company expanded its fleet from a single aircraft to seven in number in 10 years of its operation. In 2008, the company purchased two ATR-42 aircrafts under the financial assistance of the International Finance Corporations (IFC/World Bank) and added a 70-seat ATR 72-212 in June 2010. With a range of aircrafts in its fleet, Buddha Air has today spread its wings to 13 destinations, including two international (1 seasonal and 1 charter flight) and 11 domestic destinations. After more than two decades of its service to the country’s civil aviation and tourism sector, Buddha Air was recognized as “the most successful airlines” for its sustained growth as well as for the safety and satisfaction of its customers. However, it had tackled with the price war in the face of higher cost of operations as a result of the increased number of airlines in this sector. Recalling the difficult situation due to the indiscriminate price competition, the Managing Director of the airlines, said that the pricing strategy was challenging and there was a strong urge for an unfair price competition from the rivals. “The low cost strategy as pursued by our competitors was not appropriate for our company as we had relatively higher cost of operation as we owned bigger aircrafts,” he said. While the price war remained a major hurdle in its operation, an attempt to venture into international flights was another challenge it encountered for the sustained growth of the airlines.

Proactively Facing Financial Crisis: A Case Study

It has been 21 years since the 21st century has started. Over this period of 21 years the world has faced 2 severely affecting financial crisis. This case study discusses 2 such examples where a major damage was experienced by most of the countries specifically talking about the financial and the economic condition. In addition, the reasons caused this crisis are discussed in detail. However, to all of these causes there is a remedy stated which states how a country be ready to face such a situation where a country falls completely, financially and economically. Keywords: Financial crisis 2007-08, COVID-19, Declaration of pandemic, Lockdowns, Russia-Saudi Arabia oil price war, Easy credit conditions, Increase debt burden or overleverage, case study.