• Environmental and Resource Economics Review
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• v.22 no.4
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• pp.613-641
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• 2013

This paper uses the error correction model to analyse dynamic gasoline price adjustments of the four refiners. Unlike the existing studies, this model allows a refiner's asymmetric adjustment to changes in the other refiners' prices as well as in its own price and costs. With the estimation results, we can obtain the following findings. First, there are the asymmetric price adjustments to changes in exchange rate and international gasoline price, but showing opposing directions. Second, for most of the refiners, the prices respond immediately to the lagged deviation from the long run equilibrium price, but asymmetrically respond for a few refiners. Third, there are some refiners that adjust their price to the other refiners' price deviation from the long run equilibrium. For some refiners, there are competitive price adjustments to the others' price deviations. These findings imply that a refiner faces inelastic demand, intends to maintain implicitly a relative level of its own price to others, and tends to respond competitively to the others' price deviation from the equilibrium.

• The Journal of Society for e-Business Studies
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• v.19 no.3
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• pp.143-158
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• 2014

Making decisions on prices must be an important task for sellers to stay competitive in on-line markets. Because the emergence of price-comparison web sites led buyers to be more sensitive to the prices, adjusting prices became very important to on-line sellers. This study collected and analyzed the data of prices on computing peripheral devices posted at a popular web site that enabled buyers to compare the prices on the same products. By analyzing the timings of price adjustments among different sellers using Monte Carlo simulation, we explored the possibility of price coordinations among those sellers. The results indicated that online sellers adjusted their prices on a daily basis rather than a weekly basis and the tacit coordination on the price changes was identified.

• Asia pacific journal of information systems
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• v.17 no.4
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• pp.113-132
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• 2007

Price rigidity involves prices that do not change with the regularity predicted by standard economic theory. It is of long-standing interest for firms, industries and the economy as a whole. However, due to the difficulty of measuring price rigidity and price adjustments directly, only a few studies have attempted to provide empirical evidence for explanatory theories from Economics and Marketing. This paper proposes and validates a research model to examine different theories of price rigidity and to predict what variables can explain the observed empirical regularities and variations in price adjustment patterns of Internet-based retailers. I specify and test a model using more than 3 million daily observations on 385 books, 118 DVDs and 154 CDs, sold by 22 Internet-based retailers that were collected over a 676-day period from March 2003 to February 2005. I obtained a number of interesting findings from the estimation of our logit model. First, quality seems to play a role-I find that both price levels as proxies for store quality, and information on the quality of a product consumers have, affect online price rigidity. Second, greater competition(i.e., less industry concentration) leads to less price rigidity(i.e., more price changes) on the Internet. I also find that Internet-based sellers more frequently change the prices of popular products, and the sellers with broader product coverage change prices less frequently, which seem due to economic forces faced by these Internet-based sellers. To the best of my knowledge, this research is the first to empirically assess price rigidity patterns for multiple industries in Internet-based retailing, and attempt to explain the variation in these patterns. I found that price changes are more likely to be driven by quality, competitive and economic considerations. These results speak to both the IS and economics literatures. To the IS literature these results suggest we take economic considerations into account in more sophisticated ways. The existence and variation in price rigidity argue that simplistic assumptions about frictionless and completely flexible digital prices do not capture the richness of pricing behavior on the Internet. The quality, competitive and economic forces identified in this model suggest promising directions for future theoretical and empirical work on their role in these technologically changing markets. To the economics literature these results offer new evidence on the sources of price rigidity, which can then be incorporated into the development of models of pricing at the firm, industry and even macro-economic level of analysis. It also suggests that there is much to be learned through interdisciplinary research between the IS, economics and related business disciplines.

• The Journal of Fisheries Business Administration
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• v.49 no.2
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• pp.37-48
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• 2018

This study analyzed the impact of FTA tariff elimination on the export prices for Norwegian fresh and chilled salmon, of which Korean import has significantly increased since the Korea-EFTA FTA implementation. Korea's fresh and chilled salmon market is almost monopolized by Norway, and Korea's price level is higher than other countries, so it is highly likely that price discrimination occurs. This study theoretically explained that exporters could adjust their prices by market power when tariffs are eliminated in imperfectly competitive markets. And the empirical analysis provided evidence that the exporters have made price adjustments since the FTA took effect, and similar results were found in the relative price comparison with trade statistics and Nasdaq Salmon Index. Therefore, in order to increase consumer welfare in Korean salmon market, it is required to transform the monopolistic market structure into a competitive one.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.2
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• pp.387-396
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• 2018

This study examined the instability factor of real income and net profits of Chung-yang Green Pepper Farm through an analysis of the operating costs. Furthermore, this paper suggests a plan for stabilizing the price by shipment adjustments resulting from an analysis of the price elasticity by A Linear Approximated Inverse Almost Ideal Demand System (LA/IAIDS). The income instability factor of the farm based on an analysis of the operating costs was attributed to the unexpected loading of utility expenses and collapse of the price due to oversupply at a specific point in time. On the other hand, this is insufficient to completely explain the income instability factor of Chung-yang Green Pepper Farm because a price collapse does not include the monthly price changes. An analysis of the price and scale flexibility of Chung-yang Green Pepper Farm by monthly data showed that annual farm net yield increases by 1.21% due to a 2.21% increase in price if the shipment quantity is reduced to 1% a year. In summary, a plan that supports the farm price received through declining shipments in winter is effective in stabilizing the income of farms. Because Chung-yang Green Pepper in Gyeongnam region has an especially high market share of 82.5%, the prices and income of Gyeongnam Chung-yang Green Pepper farms can be stabilized effectively if they form an association of producers around the Gyeongnam region and adjust the shipment.

• Asia-Pacific Journal of Business
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• v.10 no.4
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• pp.197-204
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• 2019

The transfer pricing mechanism is a tool commonly used to transfer the tax base from countries with high taxation in countries with low taxation. In many countries, this financial operations generate significant tax revenue losses. In an attempt to limit tax revenue losses, many public authorities have introduced regulations on transfer pricing, but the effectiveness of these rules has proved limited, and they contributed to the increasing complexity of tax laws and to the appearance of additional costs for companies. Historically, transfer pricing (TP) was not a substantial issue in Mongolia. The tax legislation contains basic TP rules, but there is limited guidance and enforcement in practice. At the moment, Mongolian tax authorities are not conducting specific transfer pricing audits. Nevertheless, tax authorities are starting to pay more attention to transactions between related parties and potential transfer pricing adjustments. This study examines a transfer pricing regulations of Mongolia.

• Management & Information Systems Review
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• v.37 no.3
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• pp.65-81
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• 2018

This study estimated the long-run and the short-run price and income elasticity of crude oil demand by using the ARDL model in Korea. First, the long-run cointegration relationship existed between crude oil demand and price or income in the ARDL-bounds tests. Second, the long-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL. Third, there was autocorrelation of the residuals, but no misspecification errors and heteroscedasticity, and then the residuals showed a normal distribution. And the CUSUM & CUSUMSQ tests showed that the coefficients were stable. Fourth, the short-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL-RECM. The ECM with the short-run dynamics showed rapid adjustments in the long-run equilibrium of oil demand after the economic crisis. In the short-run, the sensitivity of crude oil demand to price and income changes has moved in the same direction as the long-run case. Korea, depending too much on foreign crude oil, is vulnerable to the shocks of oil prices, so rising oil prices can certainly have a negative impact on Korea's trade balance. And the elasticity of long-run oil prices may help to control and manage Korea's oil demand. The government needs to strengthen monitoring of the country's policies and market trends related to crude oil, establish strategies to customize national policies and market conditions, and strengthen active market dominance efforts through pioneering new market and diversification.

• Environmental and Resource Economics Review
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• v.24 no.4
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• pp.657-677
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• 2015

We employ a 3 regime-threshold vector error correction models (TVECM) to investigate the nonlinear dynamic adjustments of three marker crude oil prices such as WTI (West Texas Intermediate), Brent and Dubai. Especially we deal with 3 combinations of oil prices including WTI-Brent, WTI-Dubai and Brent-Dubai in order to analyze the dynamic adjustments of the prices based on the effects of the price spreads among these crude oil prices. Our daily spot prices data run from 2001.1.3 to 2014.12.31. We found that each combination is cointegrated over the period. WTI had dropped significantly in 2010 which had affected the movements of the spreads. To accomodate this fact, we divide the period into two sub-periods: 2000.1.3-2009.12.31 and 2010.1.1-2014.12.31. It is found that each combination is cointegrated in both sub-periods. Moroever, in the first sub-period, all three oil prices are shown to follow nonlinear dynamic adjustments. In the second sub-period, however, TVECM is better than VECM(vector error correction model) for WTI-Dubai and Brent-Dubai while VECM performs better for WTI-Brent. The transaction costs are estimated to be reduced for the second sub-period for WTI-Dubai and Brent-Dubai compared to the first sub-period.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.33 no.2
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• pp.771-780
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• 2013

Inspection system which was performed in the past selected the final winning bidder by separating Pre-Qualification, the basic design evaluation and price evaluation. However, turnkey and alternative bidding construction has selected way to determine the successful bidder as the best design and the most low cost method, comprehensive evaluation method (bid price adjustment, design score adjustments, weights standard), the best design and the fixed amount method from january 1, 2010 to the present. Due to these institutional problems, orders institutions were often a way to determine the successful bidder to apply differently for identical or similar construction. Therefore this study winning bidder selection criteria through analysis of construction the number and construction order performance, order performance by work division and institutional orders, the weights bidder order performance and orders status of turnkey alternative tendering construction to civil part performed in domestic.

• Environmental and Resource Economics Review
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• v.24 no.3
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• pp.523-549
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• 2015

This paper investigates an oil refiner's asymmetric behavior in the adjustments of gasoline and diesel prices to changes in his own price and his rivals' prices as well as input costs. An asymmetric error correction model which allows a firm's pricing behavior to the deviation of other firms' prices from their long-run equilibrium level is employed for estimation using weekly data for the period April 2009 to January 2015. Evidence is found that there is a significant degree of asymmetry in the adjustment of wholesale prices to changes in crude oil price. A similar result in regard to the exchange rate is also found by the data. The estimation results for firm's response to changes in other firms' prices indicates that implicit collusion could be more easily exploited in the wholesale petroleum market as results of firms' interaction with each other and anticipation of rivals' pricing behavior. A few refiners show competitive price adjustment in response to the upward deviation of the others' prices from their equilibrium level.