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Studies on price trends of seafood products in the medium run remain scarce. In this paper, we investigate changes in first-sale prices of fish sold in France over the last 25 years. Drawing on the...

In this paper, we assess the potential impact of walkability on commercial property sales prices in Omaha, Nebraska in the years during and following the “Great Recession.” Walkability was determin...

According to the regulations of the Chinese government, tenants of public rental housing (PRH) can purchase their dwellings after a certain amount of time. However, since different regulations are ...

This research investigates how the display locations of regular and sale prices in comparative price advertising impact perceived quality, deal attractiveness, and purchase intention. Based on the ...

In this research, potential of reusing bleach water bath was examined with respect to its effect on whiteness of the cotton fabric exposed to 50 g/h of ozone on pilot scale for 45 min with 3 kg of fabric charged fresh at each trial, along with the evaluation of the economic viability of this technology in terms of profit per batch as well as profit per unit product (fabric) computed by Cost of Goods Sold statement. Results have shown that water can be reused with insignificant change in whiteness, revolving around 54% and 60%, and that it harnesses a 7 Rupees profit per unit fabric or 21 Rupees profit per cycle, which seems quite acceptable at existing bleached fabric sale price.

In this paper, we reexamine a known disamenity to glean new insights into neighborhood spillovers. Employing a survival analysis and a difference-in-difference framework, we find that registered sex offenders have a large adverse impact on nearby home liquidity on average; and, this effect is largely driven by “surprises” of their moving in or out during the marketing period of nearby homes. However, for homes near offenders who reside nearby through the entire marketing period, sellers tend to steeply discount the initial list price and may actually sell their homes more quickly. These cases ultimately lead to lower sale prices for nearby properties on average, while the sale price effects are nosier for the surprise or temporally dynamic cases, providing initial evidence that more dynamic externalities manifest primarily in the liquidity of nearby homes.

As restaurants are the primary hospitality business represented on flash-sale sites, this study examined motivations of restaurant managers when choosing whether to utilize the promotional mediums of flash-sales. Interviews were administered as a measurement instrument. Results demonstrated restaurants which have employed flash-sales are weary of the likelihood of success and believe the flash-sales brought in established customers. Non-users indicated hesitation towards adoption of flash-sales related to low profit margins per item in their operation and the percentage split of the sale price between the firm and flash-sale provider. Findings provide keen foundational insight into the flashsale phenomenon.

Spatial amenities, along with structural characteristics, affect residential property values. Although the bundle of structural characteristics is typically the primary value determinant, studies have shown that externalities and risk factors can adversely affect property values. We use residential property sales data from 2010 to 2014 and sinkhole data from “sinkhole alley” in Florida to examine the effect of sinkhole presence, proximity, and density on the sale price of residential real estate. Using a spatial error regression model, the results show that sinkhole proximity and sinkhole exposure (density) create a negative externality and both have a significant negative effect on house prices. While the results show a negative effect of having a sinkhole on the property, those results are not statistically significant.

We investigate whether homeowners' association (HOA) fees are capitalized into condominium sales prices in San Diego, California. Prior work has found evidence that HOA fees are generally positively capitalized into housing prices, although the investigations have focused on single-family housing and have been conducted on the East Coast or the Midwest of the United States. Using sales of 1,087 condominiums in downtown San Diego, the results suggest that HOA fees do appear to have a marginally positive effect on sales price. We use a condominium data set to test whether the relative HOA fee (i.e., compared to other fees in the same condominium building) matters. We find that condominium units with below-average HOA fees sell at a premium relative to the average and units that pay above-average HOA fees sell at a discount relative to the average condominium. The differences are capitalized into sales prices using a capitalization rate of approximately 3.5%. These results suggest that buyers dislik...

Food trucks represent a temporary use of vacant or underutilised land. They have been assumed to increase the livability, vibrancy and attractiveness of a neighbourhood. However, no previous study has investigated whether this effect is reflected in property prices within the surrounding neighbourhood. We investigate the impact of a food truck pod on the values of single-family homes nearby. Using a quasi-experimental design, transaction data from Portland, Oregon and a difference-in-difference specification of a spatial regression model, we find that food trucks actually represent a negative externality, and that proximity of a home to food trucks is penalised by homebuyers. The closer a home is to the food trucks, the lower is the sales price. Explanations for this effect include increased parking shortages and trash issues in a neighbourhood due to food truck visitors.

Some property buyers consider green building features such as balconies as an important element in purchasing a residential property. We investigate if there is any effect of a balcony, as a green feature, on property price. We find that balconies exert a strong significant and positive effect on residential property price. Property buyers are willing to pay a significant sale price premium of 4% more for units with balconies. We also find that balconies with different views are valued differently by buyers: a larger premium of 6.9% on a unit with a sea view balcony and 1.5% on a unit with mountain view. However, units with building views are not appreciated by buyers. It implies that properly architecturally designed balconies would add more value to properties and enhance their competitiveness.

Based on the experience of Estonian railways, this article argues that the privatisation of monopolistic infrastructure is economically wasteful and politically divisive. In 2000–2001, Estonia sold the passenger carrier and a portion of the track to domestic businessmen posing as a British strategic investor, and the main freight carrier and most of the track to an American-led consortium. The passenger carrier continued to receive government subsidies but closed several rail lines, which led to protests by passengers. The freight carrier earned large profits from the transit of Russian oil to Europe, but invested its money in buying used American locomotives, rather than rebuilding the track. Both companies laid off about half of their workforce, provoking the first private-sector strike in Estonia since the collapse of Communism. In 2006, a new government bought back the freight services and track at more than twice the sale price, an expensive lesson in the perils of privatisation.

Access to and analysis of data, especially market-related data, remains central to professional valuation. This paper examines the ease of eliciting market data for valuation purposes by valuers in the residential property sector and the reaction to the dearth of data among valuers in the two south-western Nigerian cities of Ibadan and Abeokuta. A five-point Likert-type scale was used to measure respondents’ disposition towards alternative data sources with the results analysed using weighted mean score and logit regression. The study revealed that rental value and comparable sales price were most easily accessed with the greatest challenge being to access property yields and appropriate rates of depreciation. Given the difficulties in accessing data, it was found that valuers in the study area either make recourse to colleagues, shift to the next available method or adopt various alternative data-scooping measures, with years of practical experience, position in the firm and professional status e...

This empirical investigation applies a hedonic pricing model to estimate how much historic district designation has influenced the sales price of single-family houses in the oldest city in the United States, namely, St. Augustine, Florida. There were sufficient data in this context to study a total of 4017 single-family houses for a 6-year period from 2008 to 2013. The semi-log and piecewise regression estimations reveal that the natural log of the sales price of a single-family house in the city of St. Augustine was positively affected by designation as national historic district in six of the seven districts, with robust results obtained for five of the districts. Moreover, the estimated premiums for historic designation were larger than those found in other similar studies, most of which were conducted prior to the Great Recession. This study also derives several other conclusions about the effects of recession variables, as well as other exterior characteristics, interior characteristics and s...

In this study, we take a spatial approach to examine whether the ‘length-of-ownership effect’ asserting that duration of ownership will increase an owner's valuation of an item is dominated by the economic effects of constrained consumption when transaction costs are high. Two spatial procedures are employed to examine the impact housing duration has on house prices across levels of household mortgage participation. We confirm that the duration of ownership is reflected in the sales price, and that seller financial constraints tend to temporarily elevate reservation prices. We find evidence of a financially-constrained seller price premium over less constrained sellers.

This study investigates whether a relationship exists among sale price and green building status for multifamily properties located in Chicago, IL; New York, NY; Portland, OR; and Seattle, WA. It is hypothesized that Leadership in Energy and Environmental Design (LEED) certification will have a positive relationship with sale price when compared to non-green multifamily properties, ceteris paribus. Data are analyzed from Chicago, New York, Portland, and Seattle, primarily because these cities contain the greatest number of green multifamily properties within the CoStar database. The sample for this project is drawn from a collection of 25 green multifamily properties and 111 non-green multifamily properties. Using multiple regression techniques to examine the sample of 136 multifamily properties, results of the study indicate that there is not a significant positive relationship between LEED certification and sale price for multifamily properties in Chicago, New York, Portland, and Seattle.

When facing supply disruptions, the emergency procurement strategy and the optimal allocation procurement strategy are widely used strategies to manage supply risks. In this paper, buyers use these types of procurement strategies under the threat of supply disruption and engage in price competition. The structural properties of the procurement strategies are characterised by their reliability thresholds. We find that reliability thresholds play a critical role in buyer procurement strategy choices, which are related to the sales price, underage cost and differentials in unit procurement cost. A solution procedure is proposed to determine the equilibrium strategy profile. The effects of reliability levels and costs on the equilibrium prices, expected profits and equilibrium strategy profiles are explored. We extend the basic model to investigate the case of symmetric competition where buyers can freely choose their procurement strategy. The results show that in most cases, the competing buyers will choose ...

Advertising and dynamic pricing play key roles in maximizing profit of a firm. In this paper a joint dynamic pricing and advertising problem for perishable products is investigated, where the time-varying demand rate is decreasing in sales price and increasing in goodwill. A dynamic optimization model is proposed to maximize total profit by setting a joint pricing and advertising policy under the constraint of a limited advertising capacity. By solving the dynamic optimization problem on the basis of Pontryagin’s maximum principle, the analytical solutions of the optimal joint dynamic pricing and advertising policy are obtained. Additionally, to highlight the advantage of the joint dynamic strategy, the case of the optimal advertising with static pricing policy is considered. Numerical examples are presented to illustrate the validness of the theoretical results, and some managerial implications for the pricing and advertising of the perishable products are provided.

Hedonic modeling techniques and a difference-in-difference identification strategy were used in this study to examine the impact of an adequate public facilities ordinance (APFO) on the sale price of single-family housing in Cabarrus County, North Carolina. Plans to increase development fees collected as part of this land-use regulation were found to put upward pressure on existing housing prices in the 30 month period immediately following the announced policy change. The results suggest that policy-makers evaluating the merits of APFOs must consider their desires to manage growth and maintain housing affordability when using this regulatory tool. These considerations appear to be very important when municipalities intend to use development fees to finance needed infrastructure improvements during periods of robust housing market demand, such as the one that existed in Cabarrus County in the mid-2000s.

This article considers a warranty policy consisting of a renewable free-replacement period and a rebate period for products operating in discrete time. Under such a Hybrid Warranty Policy (HWP), if a product fails during the first N periods (from period 1 to period N), it is replaced with either a new or a repaired unit for free (or at the manufacturer's expense) and the policy is renewed; if it fails in the next W − N periods (from period N + 1 to period W), then the manufacturer refunds a pre-specified proportion of the sales price to the buyer. A pure rebate warranty policy and a pure renewable replacement policy can be considered as special cases of the HWP. With the HWP, customer service and warranty cost can be traded off. The conditions under which the HWP is more cost-effective are derived from the perspective of the manufacturer or seller. Some structural properties of the HWP are examined. Furthermore, how to choose between using new and repaired products to replace failed products is discussed....

An inventory system for perishable items with limited replenishment capacity is introduced in this paper. The demand rate depends on the stock quantity displayed in the store as well as the sales price. With the goal to realise profit maximisation, an optimisation problem is addressed to seek for the optimal joint dynamic pricing and replenishment policy which is obtained by solving the optimisation problem with Pontryagin’s maximum principle. A joint mixed policy, in which the sales price is a static decision variable and the replenishment rate remains to be a dynamic decision variable, is presented to compare with the joint dynamic policy. Numerical results demonstrate the advantages of the joint dynamic one, and further show the effects of different system parameters on the optimal joint dynamic policy and the maximal total profit.

This article presents new evidence based on unpublished buyer surveys and real estate agent and broker surveys supporting the consensus in the published literature that real estate markets are informationally efficient. This evidence is drawn from expert reports submitted in litigation involving claims that contamination caused property value diminution, and presents a new hedonic regression model of residential sales prices that includes as an independent variable the state of knowledge of the buyer regarding a contamination event. In this model the state of knowledge of the buyer has no statistically significant effect on the sales price. The article also discusses standards for the use of buyer and agent/broker surveys in litigation.

This paper examines the effect of credit constraints on the sale price expectations of homeowners. We extend the results of Genesove and Mayer (1997) by using a sample of mover and non-mover families living in the Netherlands-a country without formal down-payment requirements. We find that homeowners who are more credit constrained expect to sell their house for a higher price. Homeowners already seem to compensate for credit constraints at the very first stages of the transaction process. These results imply that the findings of Genesove and Mayer (1997) are much more generally applicable than previously considered. © 2014 © 2014 Taylor & Francis.

We use hedonic analysis to show that water clarity has a significant effect on lakefront property values in the Near North Ontario, Canada. In this study, water clarity is measured by Secchi disc reading. Based on two different dependent variables; sales price and sales price per square foot, and the estimation of linear, log–linear and log–log models, we find that water clarity does matter to lakefront property buyers in the Near North, Ontario. In particular, our results indicate that buyers are willing to pay about 2% more for each 1-foot increase in water clarity or Secchi depth. This finding is consistent across all of our specifications.

In contrast to the existing studies that analyzed the asymmetry of sales price and cost price of gasoline, in this study, we analyzed how the profit margins of oil refineries and gas stations are adjusted for gasoline price fluctuations. According to the study, the profit margin decreases (increases) when the cost of both gas stations and oil companies increases (decreases). First, we estimated that both short- and long-term changes in the profit margins of refineries due to fluctuations in the international price of gasoline are symmetric. In contrast, while the profit margin of the gas stations adjusted symmetrically with the long-term fluctuations in refinery gasoline price, it adjust asymmetrically for the short term, as the proportion of decrease in refinery profit margin to the increase in refinery gasoline price is greater than that of refinery profit margin increase to refinery gasoline price decrease.

The main purpose of this paper is to investigate the optimal replenishment lot size of supplier and optimal production rate of manufacturer under three levels of trade credit policy for supplier–manufacturer–retailer supply chain. The supplier provides a fixed credit period to settle the accounts to the manufacturer, while the manufacturer gives a fixed credit period to settle the account to the retailer and the retailer, in turn, also offers a credit period to each of its customers to settle the accounts. We assume that the supplier supplies the raw material to the manufacturer and sends back the defective raw materials to the outside supplier after completion of inspection at one lot with a sales price. The system always produces good items in the model. Also, we consider the idle times of supplier and manufacturer. Finally, numerical examples are provided to illustrate the behaviour and application of the model with graphical simulation.

This study is the first to examine dual agency sales over the listing contract between seller and listing agent. We test hypotheses about the timing of dual agency and its effects on sales price and time on market. Probit results indicate that dual agency sales are more likely to occur near the beginning or the end of a listing contract. Three stage least squares results demonstrate that dual agency affects sales price in both periods and that dual agency sales have shorter marketing times. Results support the conclusion that dual agency sales result from both incentives and informational efficiencies. In the residential real estate market, buyers and sellers both rely greatly on

The correlation between time on the market (TOM) and offer price or transaction price has been analyzed in a number of studies. Unlike previous studies, this paper focuses on atypical property (non-performing assets (NPAs)) and adopts a two-stage least squares regression (2SLS) model to test whether value enhancement strategies would enhance the disposal price in Kaohsiung city. The empirical results show that investors can’t profit just from increasing the time on the market (TOM). Investors have to adopt an enhancement strategy to increase NPA value as well. This is the important finding from the comparison of auction and value enhancement strategy in this paper. The Taiwanese experience reported in this paper shows that value increment can be achieved via the combination of longer TOM and value enhancement strategy.

Theoretical models of the house selling process have shown the number of bidders involved to be an important factor in explaining sales price; however, empirical models have not included specific variables capturing the dynamic process that occurs during time on the market (TOM). This paper addresses this gap by including explicit bidding variables, as well as TOM in a hedonic pricing model. The results confirm the importance of the number of bidders in understanding the direction of the relationship between price and TOM, identifying that the outcome of multiple bidder sales are more predictable than properties sold with a single bidder.

Conservation development (CD) is an approach to the site design of a development property that combines residential development and land conservation. CD has been heralded as an environmentally-friendly development alternative and a means to finance land conservation. We employ a Box-Cox hedonic methodology using transaction data for all CD subdivisions in five Colorado counties, as well as a unique sample of homes in comparable nearby rural non-CD subdivisions to assess the value of the CD amenity to homeowners. Our research demonstrates significant sales price premiums for homes located in regulated and unregulated CDs relative to comparable non-CDs.

Housing affordability is arguably the most significant and debated aspect of Australia's urban environment. Increasingly, state and local government fees, charges and infrastructure levies have been identified as a central driver for the increasing cost of housing across Australia. Industry organisations claim that these fees are added on to the sales price of land and/or dwellings, making purchase increasingly difficult. Drawing on a series of detailed case studies, this article delves beneath these ambit industry views to explore the specific perspectives and experiences of a sample of 18 developers in relation to 26 projects across New South Wales, Victoria and Queensland.

This paper offers the first empirical investigation of the impact of marketing time on house sale price in Auckland, New Zealand. Using residential sales data and life table analysis, the impact of market cycle on the hazard of sale was tested. It was found that properties in a booming market sold more quickly than properties sold in a declining market. In addition, the relationship between time-on-market and price is tested using a two stage least square estimation. The results show that prolonged time-on-market reduces sale price. However, this impact is not uniform with variations observed due to changes in market conditions.

According to previous studies, residential foreclosures reduce the value of neighboring residential units and the initial negative effects decay over time and space. This study attempts to investigate the temporal path of the initial effects by following cohorts of single-family housing distressed sales (foreclosures and real estate owned sales) over time. A hedonic model estimation of single-family housing sales in Saint Louis County, Missouri, produced larger marginal impacts for new distressed sales in the year 2000 compared with the marginal impact of new distressed sales in 2007, that is, the marginal impact of new distressed sales is declining in at least one housing market. This result holds true for the distressed sale neighborhood impact, the effect of distress on the same unit's future sales price, and the discount on a distressed unit's current “liquidation sale” price.

A hedonic study of residential house sales in Rawlins, Wyoming, was conducted to estimate the impact of an environmental shock from a new point source upon adjacent residential property values. We use a unique data base of house sale prices and associated house attributes, including structural and neighbourhood characteristics and geographic distances and directions from the source of the shock, atmospheric emissions from a new crematory. Our data spans 27 months of house sales: 7 months before, and 20 months after the startup of crematory operations. Results indicate that proximity, measured both in terms of direction and distance from the crematory, imparts a statistically significant negative impact on average house sale prices–an increase of 0.3 to 3.6% of average sale price for every one-tenth mile increase up to one-half mile in distance away from the crematory, but depending on direction from the crematory. This distance benefit increases somewhat with calendar time only for houses located west of ...

The United States enforces its antidumping laws differently from other countries. The United States, but not other countries, uses “zeroing” to determine whether imports are being sold in the US at less than “normal” value. Rather than simply comparing the “normal” value with the average sale price in the US, the US truncates the observations of US sales transactions, so that transactions at prices above “normal” value are counted as if they occurred at the “normal” value. This procedure, which has been challenged at least six times by the World Trade Organization, may cost the US $46–112 million/year.

Offers by sellers to pay closing costs on behalf of buyers that are contingent on the buyers' use of preferred ancillary service providers are a relatively new but increasing phenomenon. These cont...

The restriction of short-sale prices, which states that short-sale prices must not be lower than the closing price of the previous trading day, no longer applies to the constituent stocks of the Taiwan Top 50 Index. This study investigates the impact of restriction lifting on the trading activities and volatilities of those component stocks. The empirical results show that while the trading activities of those component stocks do not change, their volatilities increase significantly. Moreover, stocks with a lower percentage of margin transactions experience higher volatility.

Mitigation against natural hazards often involves long‐lived, immobile investments. Home owners must be able to capture the present value of future benefits to equate the private and societal return on mitigation. The capitalization of mitigation into home prices thus is crucial for home owners to have a proper incentive for mitigation. We investigate the existence of a premium for tornado shelters using home sales in Oklahoma City, where the deadly tornado outbreak of 3 May 1999 and the Oklahoma Saferoom Initiative increased public awareness of tornado shelters. We find that a shelter increases the sale price of a home by 3.5% to 4% or approximately $4200 given the mean price of homes sold in 2005. The magnitude of the premium is plausible given that shelters retail for $2500–$3000 installed.

The success of a new product depends on both engineering decisions (product reliability) and marketing decisions (price, warranty). A higher reliability results in a higher manufacturing cost and higher sale price. Consumers are willing to pay a higher price only if they can be assured about product reliability. Product warranty is one such tool to signal reliability with a longer warranty period indicating better reliability. Better warranty terms result in increased sales and also higher expected warranty servicing costs. Warranty costs are reduced by improvements in product reliability. Learning effects result in the unit manufacturing cost decreasing with total sales volume and this in turn impacts on the sale price. As such, reliability, price and warranty decisions need to be considered jointly. The paper develops a model to determine the optimal product reliability, price and warranty strategy that achieve the biggest total integrated profit for a general repairable product sold under a free replac...

This study uses a sample of houses sold in 2005 in the Belfast metropolitan area (UK) to test the accuracy of single-family residence valuations and whether the valuation for tax purposes is significantly different than market value as evidenced by sale price. This study examines how accurately the assessed values reflect market value, whether there are differences across statistical distributions and whether differences between assessed value and market value can be attributed to particular property characteristics. The results indicate that there is a tendency to over-value lower priced properties and under-value higher priced property demonstrating regressive vertical tax inequity. In addition, the net economic effect of valuation inaccuracy is shown to be a modest gain in revenue but one that is unequally distributed across house owners.

Impact fees raise the price of new homes, which pay the fee directly, and existing homes, which serve as substitutes for new homes. I argue that such fees are excessive because the net economic benefit of additional homes is not included in the calculation and because more efficient financing tools exist. An impact fee actually pushes prices higher than the fee because it is paid when construction begins but collected at the time of sale. Costs are increased by construction period interest and other costs determined as a percentage of the sale price. Local governments calculate impact fees incorrectly by not including the indirect and positive impacts from construction and occupancy. If these added net benefits were also considered, the fiscal impact would be less and little or no fee would be required. Moreover, other methods for financing infrastructure are available in most states, so impact fees are unnecessary.

I read a review of the care sector by a leading agent recently which, not surprisingly, linked rising prices to a scarcity of available homes. No arguments with that conclusion, but it did get me thinking about whether the strict rules of supply and demand are really sufficient to fully appreciate the care home investment market. Does price necessarily represent value? The selling agents, quite rightly, will say that a rising selling price is a current reflection of the market’s desire to buy and the lack of stock available to buy. So the sale price is a simple result of that relationship. But, price should not be confused with value. Most of us will have paid the requested price for something, only to discover too late that it does not represent value for money. I started to think of an analogous situation to the current lopsided market conditions and early America came to mind. Thousands of settlers risking everything to stake their claim on a dusty patch of land, fighting to get their hands on the gold which would undoubtedly be found in the rocks and streams. There was not enough land to satisfy the demand and the price rose rapidly as prospectors became increasingly desperate. Of course, not every piece of land yielded a gold mine (or even some decent crops) and excitement over a few scattered nuggets soon turned to disappointment as the source of fortune dried up. The point of my analogy is to illustrate the potential gap between the purchase price and its ultimate value. The price is set by demand, the value by the long-term return on that price. In recent years, the price of most care homes has risen sharply, as local and national markets have swung out of balance and investors have discovered the excellent returns possible. The fees charged by care homes have risen significantly in recent years, as the ratio of supply to demand has been re-ordered by rapid concentration of

This study forecasts the impact of fuel price policy on the diesel car demand after the permission of domestic sales, using a conjoint analysis based on the stated preference survey from 500 respondents in Seoul and 324 respondents in Ulsan, Korea. The estimation results show that the fuel price elasticity is -0.631 and -0.645 for diesel cars in Seoul and Ulsan, respectively and the elasticity of purchase price are -1.332 and -1.058 for diesel cars in Seoul and Ulsan, respectively. The estimates of the diesel price elasticity indicate that the government planned fuel policy increasing diesel price from the current 70% to 85% of petrol price will decrease the demand for diesel cars by 13.8% to 23.4% when the petrol price is kept at the current price. The estimate of the purchase price elasticity denotes that the obligation of pollutantreducing equipment on diesel cars (about 10% of the sales price) will reduce the demand for diesel cars by 13.3% to 14.7%.

This research provides a significant step towards understanding the relationship between house vintage and value. This study analyses residential sales transactions in New Zealand using hedonic pricing models and uncovers evidence that a home’s vintage is a commodity that commands price premiums or discounts. Vintage is found to have a nonlinear influence on sales price and this relationship differs from market to market. In particular, wealthier markets witness a greater vintage effect, with turn-of-the-century homes realising 15% price premiums over new homes. In contrast, less wealthy markets tend to apply discounts of 20% to 40% to houses of the same vintage.

This paper investigates the impact on both sales price and marketing time of offering a bonus to the selling broker of property. Recognizing and controlling for the different incentives inherent in...

Assessed values are widely reported in US property markets and are often used by the public as a proxy for a property's value. The results of this study indicated that an assessed value treatment did influence market value judgments by nonappraisers. However, despite the nonappraiser findings and the strong anchoring tendencies found in prior studies, expert US appraisers did not depart from normative theory and training and did not exhibit anchoring behaviours on an assessed value reference point. These results seem to indicate that expert appraisers need some content validity before using a reference point as a valuation anchor and make distinctions among unsanctioned anchors that are plausibly informative (such as a pending sale price or expert valuation opinion of another) and unsanctioned anchors that are fundamentally inappropriate. Although the usual caveats of clinical studies apply, this present study extends understanding of reference point usage on valuation judgment.

Since privately financed infrastructure (PFI) projects are usually natural monopolies, their tariffs should be regulated to ensure socially desirable outcomes. In reality, the regulation is usually realized through tariff adjustment mechanisms. There are four basic tariff adjustment frameworks for PFI projects - adjustment based on sale price, revenue, operating income and profit after tax. They have different risk exposures and incentives. The adjustment based on the sale price provides the project company with the highest potential to increase profit but exposes it to the highest risk, while the adjustment based on the guaranteed ROR exposes the project company to the lowest risk but provides the least potential for increasing profit. Adjustments based on the revenue or the operating income are somewhere in between. In practice, a hybrid of two or more adjustment frameworks may be adopted to adapt to specific project environments. A well-designed tariff adjustment framework can create a ‘win-win’ soluti...

This article aims to analyse the objectives and the techniques of privatization and the valuation methods applied in the state-owned company privatization processes in order to determine the coherence between the formal privatization objectives stated by governments and the techniques and the valuation methods chosen to carry out the sale of state-owned companies. From the results of an international survey carried out by the International Organization of Supreme Audit Institutions (INTOSAI), we study the privatization practices in three groups of countries: the most developed OECD countries, Eastern European countries and developing countries. While the reasons that have motivated state-owned company privatizations all over the world are quite similar, the techniques of privatization used by these three groups are different with regard to the purpose of the privatization, the ways of carrying it out and the methods of fixing the sale price.

Most previous works applied differential calculus to derive optimal solutions for economic ordering policy. The formulations are suggested in this short note to show that optimal solutions can be derived algebraically without using differential calculus to treat the EOQ model with a temporary sale price.