Dynamic Pricing in the Airline Industry R. Preston McAfee and Vera te Velde California Institute of Technology Abstract: Dynamic price discrimination adjusts prices based on the option value of future sales‚ which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination‚ and confronts the theories with new data from airline pricing behavior. Correspondence to: R. Preston McAfee‚ 100 Baxter Hall‚ California Institute of Technology‚
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Transfer pricing is a profit allocation method (the other being formulary apportionment) used to attribute a multinational corporation’s net profit (or loss) before tax to countries where it does business. Since countries impose different corporation tax rates‚ the corporation’s goal is to allocate more of the worldwide profit to lower tax countries‚ thereby minimizing the overall taxes paid. Many countries impose penalties on corporations if they consider that they are being deprived of taxable
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Pricing Strategy Today’s Agenda • Announcements • Chapters 9 & 11 May 6‚ 2015 Refresher • Branding • New product development (NPD) – NPD process • Product life cycle (PLC) – Product development‚ introduction‚ growth‚ maturity‚ decline – Dealing with declining products – Extending the PLC Review Questions A few review questions from chapters 8 & 9 Annie is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most
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Case: LEVI STRAUSS CANADA HOLDING AN EMBER: THE GWG@BRAND I.Executive Summary The goal of GWG would be double the selling volume in 2003. To reach this goal the current places are too limited to expend the sales. By resolve this impediment‚ to withdraw the license and expend the distribution channel would the main solution to take. II. Goal and goal defense The goal is to double the GWG selling volume to 440‚000 units in 2003. The selling volume of 220‚000 which in 2001 would be kept with
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MARKET STRUCTURE AND PRICING DECISIONS BY ONIKOYI O. OLUWATOBI M.sc. Marketing A Presentation submitted to the department of business Administration and marketing Management and Social Sciences. In partial Fulfilment on ECONS 801 (MANAGERIAL ECONOMICS) Taught by Associate Prof. Didia P. O November‚ 2011 Introduction In order to maximize profits or shareholder wealth‚ managers must use the information that they have relating to demand and costs in order to determine strategy regarding price and
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Managerial Economics Unit 10 Unit 10 Pricing under Imperfect Competition Structure: 10.1 Introduction Case Let Objectives 10.2 Monopoly 10.3 Price Discrimination under Monopoly 10.4 Bilateral Monopoly 10.5 Monopolistic Competition 10.6 Oligopoly 10.7 Collusive Oligopoly and Price Leadership 10.8 Duopoly 10.9 Industry Analysis 10.10 Summary 10.11 Glossary 10.12 Terminal Questions 10.13 Answers 10.14 Case Study Reference/E-Reference 10.1 Introduction In the previous
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Exercises in Pricing Question 1: Wheeler Feed Mills Wheeler Feed Mills Ltd. has a production capacity of 10 MT per hour. The cattlefeed is packed in 50 kg jute gunny bags. During the last three years‚ the company had seen a growth as follows: Year 1997‐8 1998‐9 1999‐0 Sales in MT 26208 32236 39972 % over Prev.Yr 18% 23% 24% The company operates three shifts a day on all days. Sunday is earmarked for weekly maintenance. The product’s price is Rs.1.25 per kg including sales tax of 10%
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TABLE OF CONTENTS Levi’s Background 3 Levi’s Global Branding and Marketing Strategy 7 Americas 13 Europe 13 Asia Pacific 14 Levis Innovative Marketing Strategies 14 Levi’s® Builds Brand Online‚ Reaching Coveted Youth Market 14 Hardware‚ Ready to Wear 16 Jackets lined with cell phones and MP3 players are just the beginning. 16 Warmth‚ Music‚ and Conversation 16 Levi’s releases iPod-compatible jeans 17 Levi’s in India 19 Chapter 4: Current Branding and market segmentation 25 .Chapter
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Dichotomous Asset Pricing Model Evidence from the UK market 1. Introduction Ever since its introduction by Sharpe-Lintner-Black‚ the Capital Asset Pricing Model (CAPM) has been subject to criticism‚ appraisal and continuous efforts for improvement‚ such as the Reward Beta approach (Bornholt‚ 2007)‚ conditional CAPM or the consumption CAPM. The Dichotomous Asset Pricing Model (DAPM)‚ introduced by Professor Liang Zou at the Universiteit van Amsterdam‚ brings a fresh approach to asset pricing and contributes
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Solution to the Case Study: “Levi Strauss’s Goes Global” Book: Organizational Theory‚ Design‚ and Change Fifth Edition Page 235 Gareth R. Jones Discussion Question 1 and 2 1. How does Levi Strauss take advantage of the global environment? 2. What structure does Levi Strauss use to implement its strategy? This case demonstrates how a company can pursue a transnational strategy and which organizational structure supports this strategy. “Levi Strauss”‚ the company under discussion
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