Search

The Repeat-Sales (RS) model controls quality by using the prices of the same items in various time periods. However, this methodology suffers from sample selection bias. To address this issue, a Heckman two-stage procedure has been applied to a sample of Picasso paintings from 1990 to 2016. Contrary to the literature — which argues sample selection bias comes from buy-ins — in this paper, bias is modelled to capture information on items sold only once. The research field frequently uses the standard (RS) index, yet empirical evidence shows systematic differences between the standard RS index and the Heckman RS index. These differences are relevant when buyers make decisions on art investments.

We examine the role of information disclosure in the housing market, offering both theory and evidence for observed variability in disclosure strategies among property listings in a multiple listing service (MLS). Our initial empirical findings and the theoretical literature suggest a positive link between information disclosure (e.g., number of photos) and marketing outcomes (e.g., sale price, liquidity). While intuitive, it raises an interesting puzzle: why then do some agents disclose less information? Analytically, we show that it can be optimal to omit information in some circumstances, particularly when homes are more heterogeneous or have greater scope for taste-specific attributes. Empirically, the data support the prediction that less information disclosure is beneficial for a large subsample of properties (i.e., high-end homes). Our results also reveal scope for new principal-agent issues, as agents generally disclose less when they market their own homes, and even less for their higher-end homes when it is a more optimal strategy.

There are various factors affecting flat sales prices. Various characteristics of a flat play an important role in determining its sales price. In this study, a machine learning based Bayesian network was built by a restrictive structural learning algorithm using the data collected from 24 randomly selected cities in Turkey. The data consist of the sales prices and various characteristics of a flat such as number of bedrooms, building age, availability of balcony, net area, heating type, mortgageability, number of bathrooms, seller type, presence in a housing estate area and floor location. After the model validity check, a sensitivity analysis was performed for the estimated Bayesian network model and related results were provided. Some of these results indicate that sales prices of flats mostly change depending on the number of bathrooms available. Additionally, number of bedrooms, net area and floor location are also determinative about the sales prices. The lack of significant difference among the sales prices of flats that are sold by construction companies, housing estate agents or property owners is another result obtained.

This paper considers a two-level supply chain involving a supplier and a retailer. The retailer sells perishable products to consumers over a finite time horizon, and the demand is driven by a price-and-utility function. First, we study the noncooperative problem, which is formulated by a Stackelberg model. It is shown that the optimal pricing strategy of the retailer is to reduce a constant amount on the price at the beginning of each stage. Second, we examine the cooperative problem, in which the supplier and the retailer jointly price the product. Maximum selling cycle lengths of the two situations are obtained by analyzing the reasonability of the sales price. We demonstrate that the selling cycle length is extended by cooperation. Moreover, we show that they lower the sales price in the cooperative case so as to maximize the total profit. Meanwhile, an allocation method is provided based on the proportion.

There is a shift in livestock auction sales in consolidation of live markets and movement toward virtual marketplaces. We examine buyer preferences for nonracing stock-type horses sold through virtual auctions to better understand how animals are sold and their valuation. A shift towards online sales of equine has impacted the number of potential buyers through increased exposure to sale horses. Using data collected from online auctions, we estimate factors influencing propensity to sell as well as price determinants in this market platform. We find many factors contribute to the likelihood of a horse selling and to the final sale price.

Based on a review of the relevant literature, this paper uses data from 70 large and medium-sized cities to test whether the purchasing behaviours of Chinese urban residents are affected by air quality. Despite the indirectness of perceptions of air quality and the non-immediacy of the impact of air quality, buyers’ awareness of environmental factors plays an important role in their willingness to pay. This paper proposes that residents’ awareness strengthens the influence of air quality on commercial housing prices and conducts empirical tests to examine this proposition. To overcome the deviation caused by the heterogeneity of the samples, the paper also discusses whether the above relationship varies by region, development level and political level. The empirical results show that the average annual sales price of commercial housing decreases by 0.881 units for each unit of air pollution improvement. Comprehensive analysis finds that Chinese urban residents concern the air quality near commercial housing, but the degree of influence is weak. Residents’ level of awareness strengthens the influence of air quality on commercial housing prices, but the relationship varies by region, development level and political level.

This paper examines the relationship between proximity to secondary schools and property values within three school enrollment zones in Auckland, New Zealand. Results indicate that, in the most sought-after school zone, house prices increase with proximity to school but decrease above 3.664 km. Moreover, we find that the nonlinear effects are most prominent at the lower quantile of the sales price distribution. In the other two school zones, proximity to school reduces house prices. These results demonstrate that distance to school still matters within each school enrollment zone.

Considering leading Australian Indigenous artists, we investigate the role of an artist’s gender in the valuation of artworks. Our analysis shows that male and female artists work in different media and mediums and that both sale price and clearance rate differ by artist’s gender. Building on a descriptive analysis, the statistical analysis of the data using sample selectivity models and a Blinder–Oaxaca decomposition shows clear differences between the prices of artwork. We find that, accounting for differences in the characteristics of artworks and artists, the price of artworks by male Australian Indigenous artists is lower than that by female artists.

In 2012, the City of Whitewater, WI, considered the “R-2A” zoning overlay. R-2A designation allows more than three unrelated individuals to reside in a single household, and was developed throughout 2012 and 2013, and approved in 2014 for a neighborhood near the University of Wisconsin-Whitewater. This inquiry uses the sample of all home sales in Whitewater for years 2000 to 2018, with hedonic analysis of sales price applied across different time periods to determine the impact of the overlay. The analysis finds the area had no unique financial value prior to the R-2A designation, with an overall 12% premium due to the R-2A designation. Some evidence suggests anticipatory over-bidding of up to 20% for 2012–2014. Other evidence suggesting an expanding R-2A effect over time, as a premium for R-2A homes close to the University emerged for 2014–2018, and another peak overall R-2A effect occurred in 2019 (19%). Additionally, sales within the R-2A overlay became concentrated near the University over time. In general, the evidence suggests the zoning change achieved the desired effects of expanding student housing near campus while enhancing home values.

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 ...

The used-car trade is characterized by information asymmetries between buyers and sellers leading to uncertainty and distrust, thus causing market inefficiencies. Prior research has shown that blockchain offers a solution: a transparent, trustworthy and verified car history that addresses these issues in the market for ‘lemons’. Yet, whether or not there really is a market for trusted car data remains an open question. In particular, it is unclear if trusted car data increases transparency in the market for lemons and how market participants value increased transparency. Hence, through a market game with 50 participants, we explored the effects of trusted car data on the sales price of the cars, and the relative revenue of buyers and sellers. Additionally, we conducted interviews with the participants to elicit the perceived customer value. The results show that blockchain enables an increase in transparency and creates value for both buyers and sellers.

We recover the value of curb appeal in residential housing by using photos obtained from Google Street View, a deep learning classification algorithm and a variety of hedonic controls. We show that own property curb appeal is worth about twice that of an across the street neighbor. Together, neighbor and own property curb appeal together may account for up to 7% of a house’s sale price. The curb appeal premium is more pronounced during times of housing market weakness and greater in neighborhoods with high average curb appeal. Results are robust to a variety of spatial controls and curb appeal specifications.

Housing matters but measuring housing prices is not straightforward. Using population-level datasets of listings and mortgage drawdowns for the Irish housing market 2006–2012, and a novel decomposition of the gap between the two, I examine whether listings accurately capture sale price trends, even in volatile market conditions. I find that, accounting for time-to-sell, an index based on listed prices is a very accurate barometer of, and lead indicator for, true transaction prices. With current and historical listings readily available online, the findings are very relevant for both academics and policymakers interested in measuring and understanding living costs and wealth trends.

Homestead exemptions typically produce a moderately progressive statutory incidence for the property tax in the US when progressivity is measured using the ratio of a household’s tax to the sale price of a home. However, the tax is levied on the assessed value of a home rather than the sale. A stylized fact from the assessment literature is that assessment rates tend be lower for higher-priced home. In this paper, we first document the pattern of assessment regressivity. Next, we show that this pattern of regressivity is capable of reversing the statutory progressivity incidence of the property tax, particularly for low-priced homes. We then use HMDA data to show that this pattern of assessment regressivity also leads to regressivity when measured as the ratio of taxes to household income.

This paper develops a simple method for measuring the residual house price volatility, namely, the house price variation which cannot be attributed to the heterogeneous nature of real estate goods. By creating a quality index of housing characteristics, the method is able to detect “anomalous” situations, in which the sale price does not reflect (in whole or in part) the attributes or qualities that are possessed by the property. In standard market situations, indeed, a higher (lower) price should identify a better (worse) set of housing characteristics. Therefore, we use the hedonic approach by considering that distinction. Furthermore, we estimate a hedonic model where the quality index of housing characteristics is used instead of the housing characteristics. Eventually, this method refines the estimates of marginal prices of housing characteristics and also provides an estimate of the residual house price volatility.

In this paper, we consider inventory and pricing decisions for a system where the customer demand can be partitioned into two segments: a primary and a secondary market. These kinds of systems are observed, for instance, in technology intensive products or services where the primary market, being more loyal, is generally not too sensitive to the pricing of the product or service. While the primary market customer demand occurs right after the introduction of the product, the secondary market customer demand typically occurs after the product matures, and these customers are much more sensitive to changes in the sales price. The purchasing costs of technology intensive products very much depend on the spot currency exchange rate, and hence can be modelled as a stochastic process. Consequently, the sales price for the primary market customers can be assumed to be a mark-up of the spot purchasing cost of the product. On the other hand, as the secondary market customers are more sensitive to the sales price, a demand model, where the customer demand explicitly depends on the selling price would be more appropriate. We try to accomplish three objectives: (1) to model the described system, (2) to find the optimal initial quantity to stock, and (3) to determine the optimal sales price for the secondary market customers.

In this study, we examine the impact of the dominant enterprise’s fairness concern on decisions in e-supply chains. Considering that the network platform’s service level obviously influences product sales, an e-supply chain consisting of a single manufacturer and a single network platform is constructed. In this setting, four models of whether fairness concern is considered by the different dominant parties are investigated, and optimal decisions of the four models are compared and analyzed to study the impact of fairness concern. The findings show that when fairness concern is not taken into account, the profits when enterprises are dominating system are higher than when they are not dominating system. When fairness concern is considered, the dominant enterprise’s fairness concern is beneficial to increase the subordinate enterprise’s profit, but it will reduce its profit. And when the network platform dominates system and considers fairness concern, the sales price and the service level are the highest, indicating that consumers can get an enjoyable shopping experience. To sales price, it is negatively correlated with the fairness concern coefficient if manufacturer dominates the system, while it is positively correlated with the fairness concern coefficient if network platform dominates the system. Regardless of who has the fairness concern, fairness concern can improve the service level and increase consumer stickiness.

This paper examines potential property value impacts when a nuclear power plant closes and spent fuel remains on site. We confirm earlier research that fails to find an impact on property values of proximity to a nuclear power site. Another contribution of this paper is our finding that a one percentage point increase in property taxes is associated with a 4.31% decrease in the sale price of a home. These results provide evidence for a positive impact of operating nuclear facilities on surrounding communities in the form of reduced residential property taxes for a given level of public expenditures.

Retailers like to use different colors to present the sale price and original price when they are presenting a promotion price. How does the inconsistent color presentation of the prices influence consumers’ purchase likelihood? The extant research does not consider this question. This article will address this question. Drawing on incongruence theory and the persuasion knowledge model (PKM), this article proposes that when the color of the sale price is inconsistent (vs. consistent) with that of the original price, consumers show less preference for the sale price. The reason is that consumers perceive the price as being less trustworthy, which leads to a lower purchase likelihood. Furthermore, this effect is affected by the brand awareness of products. Specifically, when products are less-known brands, the inconsistent (vs. consistent) colors of the sale price and original price will lead to a lower purchase likelihood. In contrast, when products are well-known brands, the inconsistent (vs. consistent) colors of the sale price and original price will lead to a high purchase likelihood. In this article, four studies are used to verify these hypotheses, and implications of theory and practice of the present research are discussed.

Purpose This paper aims to study aggressive bidding strategies in real estate auctions – a structural equation modelling (SEM) approach. Design/methodology/approach The authors use two data sets to study aggressive bidding strategies. First, the results from a survey with 1,803 participants examining real estate auctions are used to identify bidding strategies and related motivations. Second, the authors apply SEM by using data from 1,078 exclusive auction journals from real estate sales in Norway to study both the direct and indirect price effects of the bidding strategies. Findings The authors define four aggressive bidding strategies: high opening bid, high bid increase (jump bids), short acceptance deadline and short response time. The authors find that all four strategies yield a higher sales price. Bidders can actively influence the behaviour of the other participants and cool the potential auction fever, thus reducing the final price premium. Originality/value This paper gives households, investors and policymakers a better understanding of how bidding strategies affect real estate auctions and the final price.

We aim to evaluate two different econometric screens for identifying anti-competitive behavior in the fuel retail market: (i) The Markov-Switching GARCH (MS-GARCH) Models; (ii) The Local Gaussian Correlation (LGC) approach. Using the gasoline cartel judged and condemned in Brasilia as a benchmark, our results indicate that the LGC model, based on the correlation of the resale price margin and price variability, may provide a biased likelihood as well as an incorrect identification of cartel behavior over time. The MSGARCH model, based only on the log deviation of the average gasoline sales price, showed better accuracy in cartel detection.

We investigate negotiations over real estate and find that men secure better prices than women when negotiating to buy and sell property. However, the gender difference declines substantially when improving controls for the property’s value; and is eliminated when controlling for unobserved heterogeneity in a sample of repeated sales. Rather than evidence of gender differences in negotiation, the initial difference in prices is evidence that men and women demand different properties. Consistently we find no gender difference in the sales price secured for property inherited from a deceased parent. Provided appropriate controls men and women fare equally well when negotiating over real estate. Our study demonstrates that inference on gender differences in negotiation relies critically on controlling for the value of the negotiated item.

Conveyance, i.e. the fact that an appliance purchased will be left in a dwelling when moving out, may lead homeowners to purchase appliances of lower quality or performance, because the extra costs are not entirely capitalized into the house sales price. Employing a discrete choice experiment with homeowners in the United States, this paper explores the effects of conveyance on homeowners' willingness-to-pay for various attributes of refrigerators. To account for the social nature of purchases when conveyance is likely to occur, it also tests the role of envy (elicited through an incentivized game). The findings provide evidence that conveyors are more likely than non-conveyors to purchase a smaller refrigerator, from a less well-known brand, and with lower customer ratings. In contrast, conveyance was not found to affect homeowners' choices when it comes to energy cost. In addition, envy was found to generally reinforce the negative effects of conveyance on homeowners' willingness-to-pay for several quality and performance attributes. While conveyance and its interaction with envy help explain why some homeowners choose certain quality/performance attributes of appliances, these factors do not appear to explain the energy efficiency paradox.

This paper couples a traditional hedonic model with architectural style classifications from human experts and machine learning (ML) enabled classifiers to estimate sales price premia over architectural styles, both at the building and the neighborhood-level. We find statistically and economically significant price differences for houses from distinct architectural styles across an array of specifications and modeling assumptions. Comparisons between classifications from ML models and human experts illustrate the conditions under which ML classifiers may perform at least as reliable as human experts in mass appraisal models. Hedonic estimates illustrate that the impact of architectural style on price is attenuated by properties with less well-defined styles and we find no evidence for differential price effects ofRevivalorContemporaryarchitecture for new construction.

Time-on-market is often interpreted as a negative signal of an asset’s quality. The lengthier the time-on-market, the greater the probability that past buyers arrived, observed some undesirable quality, and chose not to buy. In this paper, I propose a simple model of quality, price, and time-on-market. The model yields closed-form expressions for beliefs, prices, and rates of sale. To demonstrate the accessibility of the model, I work out simple comparative statics for time-on-market and sale price and extend the model by giving the seller a valuable outside option.

This paper aims to provide a feasible and practical tool for decision makers in the energy and electricity sectors, represented by EMRC, in order to calculate a reasonable selling price for electricity in Jordan. We propose an alternative approach using a fuzzy logic technique to help EMRC assign a fair and dynamic sale price for electricity, based on two categories of electricity consumption (low and high). Our experimental results, based on simulated data, show that the proposed method provides fair prices to both customer and service providers, allowing an easy and effective way to increase/decrease electricity prices.

This paper investigates several incentive mechanisms for collaborative product quality improvement in a buyer-driven supply chain, and the impacts of those mechanisms on supply chain performance. The buyer, the Stackelberg leader, determines the sales price of a product while the supplier is responsible for production and product quality determination. We develop analytical models incorporating two reward schemes to better understand how the buyer can facilitate the supplier’s quality improvement efforts. We offer managerial insights and practical guidelines for implementing quality management in the supply chain, derived from both an analytical comparison and numerical experiments.

Sales induced through price promotions depend heavily on discount depth, so firms create mechanisms to influence perceptions of discount depth. Typically, consumers compute discount depth as the difference between the sale price and the original price, with this difference compared against the original price. But thus far, no research has examined the effect of reframing this difference by comparing the discount depth against the sale price. Multiple studies, including a field study across four grocery stores, show that framing the discount depth by comparing it against the sale price increases consumers’ discount depth perceptions and thus increases purchase intentions. As evidence of the underlying process, the authors identify boundary conditions related to both individual differences (numeracy) and managerially relevant factors (discount depth size). In addition to contributing to research on price promotions, behavioral pricing, and numeric processing, the article offers implications for both practitioners and policy makers focused on consumer welfare.

Using property-level data (1987Q1–2015Q4) from the National Council of Real Estate Investment Fiduciaries, this study examines the determinants of transaction frequency of institutional commercial timberland properties in the United States. Controlling for both macro- and microlevel factors in a logit regression, the overall financial return of the timberland market, the discrepancy between anticipated sale price and last appraisal value, the superior performance of individual timberland properties over the market average, and geographic locations are found to significantly influence timberland transaction frequency. Aggregate market outlook and growth rate of the national economy are also found to have material impacts on the likelihood of timberland sales.

Resumo : Sera que empresas que oferecem nivel de servico logistico mais elevado alcancam mesmo maiores receitas e incorrem em custos maiores, como prega a teoria? Nesta pesquisa teve-se como objetivo testar a relacao entre nivel de servico, preco de venda e alguns indicadores de desempenho das empresas gerenciadas por participantes de um Jogo de Logistica. Para testar a questao de pesquisa foram realizadas sete analises de correlacao. O principal resultado foi a constatacao do impacto do nivel de servico nos custos e na receita e do preco de venda na receita e no resultado total. Esses achados empiricos foram comparados as conclusoes teoricas encontradas na literatura. Foi possivel concluir que as discordâncias com a teoria nao caracterizam, necessariamente, que os resultados experimentais estao refutando os teoricos, apenas indica que os participantes do Jogo nao estao, de maneira geral, atendendo as sugestoes da teoria. Palavras-chave : Jogos de Empresas. Logistica. Laboratorio de Logistica. Nivel de Servico Logistico. Preco. Testing the relationship between service level and price through the Logistics Laboratory Abstract : Do companies that offer higher level of logistics service achieve higher revenues and have to deal with higher costs, as the theory says? This research aimed to test the relationship among service level, sales price and some performance indicators of companies managed by participants of a Logistics Business Game. To test the research question, seven correlation analyzes were performed. The main results were the verification of the impact of the service level on costs and revenue and the impact of the sale price on revenue and total result. These empirical findings were compared to the theoretical conclusions found in the literature. It was possible to conclude that the disagreements with theory do not imply that the experimental results are refuting the theoretical ones; they only indicate that the participants of the Game are not, in general, attending to the suggestions of the theory. Keywords : Business Games. Logistics. Logistics Laboratory. Logistical Service Level. 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.

We examine the effect of firms’ market powers on the optimal strategies and profits of partners and make comparisons under different structures in a dual†channel supply chain, where the manufacturer provide a value†added service to differentiate the product for the customer to some extent. We consider centralised decision and decentralised decision cases where supply chain partners have different market power structures, including the Manufacturer†Stackelberg, Retailer†Stackelberg and Nash Game. We find that the direct sale price and added value are unchanged under different power structures. However, dominating power structures always lead to inefficiency for the whole dual†channel supply chain. The more power one of the channel partners has, the larger profit loss the whole supply chain will suffer.

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.

The paper addresses the links between planning uncertainty and land values, from theoretical and empirical perspective. We investigated land prices in a western part of Krakow (Poland) using a sample of 419 property sales from 2002 to 2014. We used spatial hedonic models to explore the relations between planning and building decisions, development density and land values. We found that administrative decisions (development and building permits) are capitalized in sales prices. Land with valid Decision on Development Conditions sold for 27-29% more than comparable properties. The implicit value of Building Permit was even higher as it increased the sale price by 47-50%. Additionally, we observed that potential density of development has a positive impact on land prices, but the effect is stronger for institutional investors.

We test whether the major earthquakes in Christchurch (Canterbury, New Zealand) affected prices of earthquake-prone commercial buildings in Wellington, a city that was directly unaffected by the disaster. Specifically, we test whether official declaration of a Wellington building as earthquake-prone (with a requirement for remediation to minimum earthquake code standards) had an effect on sale price relative to similarly earthquake-prone (but yet-to-be-declared) buildings. We find that the price discount accompanying an earthquake-prone declaration in the CBD averages 45% whereas there is no observable discount on buildings yet-to-be-declared as earthquake-prone. Sale prices of currently-declared earthquake-prone commercial buildings in the suburbs also fell, but not as markedly. The sale probability of officially declared earthquake-prone buildings in Wellington rose markedly after the Christchurch earthquakes unlike the sale probability of yet-to-be-declared earthquake-prone buildings which fell slightly, reflecting buyer caution about such buildings. This pattern is indicative of forced sale of buildings following an official earthquake-prone declaration.

Evidence continues to emerge that green-labelled buildings achieve a higher financial return than conventional buildings, both in terms of rent and sale price (referred to as the green premium in the literature). Consequently, the green premium is considered as a potential driver of investment in labelled buildings. However, it is not clear to what extent investors’ expectation of a green premium can help to stimulate the development of green buildings in the developing countries. This study, therefore, assesses the available evidence, as well as trends of property development in the UK and US, as countries with significant concentrations of green-labelled office buildings. The study raises issues that should be considered in adopting the existing empirical findings and presents recommendations for the development of a viable green property market in developing countries.

Should marketers make the last digit of a sale price consistent with that of its original price? Across multiple studies, including field studies and studies using student and non-student samples and various product categories, this research shows that price perception and purchase intention are related to consistency between the sale price and original price. The price perception of the deduction is moderated by the consistency between the final digit in the prices. First, consumers perceive sale prices as cheaper and have a higher purchase intention when the rightmost digit in a sale price is the same as in the original price—a phenomenon this study refers to as the “consistent ending price effect.” Second, the consistent ending price effect occurs when prices are at least three digits long, but not for two-digit prices. Finally, the study demonstrates the mediating role of processing fluency in the link between consistent ending price and price perception.

In this paper, we investigate the impacts of regulatory pressure and consumer pressure on manufacturer emissions in a supply chain. The manufacturer generates emissions as a byproduct of production activities and determines abatement efforts, while the retailer sets the sales price. The government imposes emission penalties, and consumer demand decreases in sales price and manufacturer emissions. Our results suggest that, while regulatory pressure serves as an effective pollution-curbing measure, consumer pressure can backfire in a supply chain when the manufacturer has a relatively low unit margin. This adverse environmental effect of consumer pressure does not appear in the centralized chain, which means that supply chain interaction causes the counterintuitive effect. We also investigate a policy initiative to impose a fraction of the penalties on the retailer to make the retailer responsible for manufacturer emissions and find that this initiative can curb the manufacturer emissions under a price-sensitive market. Finally, we show that while regulatory and consumer pressures generally exhibit a substitute relationship in curbing emissions, retailer responsibility may have a complementary relationship with both regulatory pressure and consumer pressure.

In this paper, I introduce a framework of price promotions by firms that preschedule their sale dates. I set up a dynamic model of demand accumulation in which high- and low-valuation consumers enter the market every period. The high-valuation consumers buy immediately and leave the market; the low-valuation consumers accumulate while waiting for the sale price. The firms schedule the dates of their promotions in advance. I find that often they use mixed strategies, choosing the future promotion period according to a probability distribution function. If the firms can cancel their prescheduled sales, typically they can wait longer until holding sales by shifting the probability distribution towards later periods. Scheduling promotions in advance increases the firms’ profits in comparison to the case when the promotion decision is made in the period when the promotion is offered. Data and the online appendix are available at https://doi.org/10.1287/mksc.2017.1052 .

Purpose This paper aims to investigate the influence of advertised reference price (ARP) and sales price (SP) as anchor points on the latitude of expected price, and subsequently on purchase intention (PI). The research involves the theoretical lens of selective anchoring mechanism, which allows investigation of the influence of ARP and SP in a situation where price estimation task is a “non-thoughtful processes”. Design/methodology/approach On the basis of quasi-experimental design, the study involves intercept survey of 142 shoppers. Findings The study finds that due to anchoring effect, the highest and the lowest expected prices shift toward ARP and SP, respectively. Consequently, it influences the latitude of expected price, which in turn influences purchase intention. In addition, the study proposes and tests a method to forecast expansion and contraction of the latitude of expected price. Research limitations/implications It suggests a new mechanism to understand the simultaneous influence of ARP and SP, provides a mechanism to understand shifts in price latitude’s end-points and investigates a phenomenon with two externally provided anchors. Practical implications The study highlights the role of the latitude of expected price in understanding consumers’ response. Results suggest that a plausible ARP, when joined with an above-expectation SP, can fetch better consumer responses. Originality/value The study uniquely investigates a problem with two anchor points and two estimation targets, and proposes a construct of internal price uncertainty (IPU).

In this paper, we study the impact of strategic customers' disappointment aversion and decreasing valuation on strategic customer behavior and the effectiveness of two alleviation policies: pricing commitment and most-favored-customer protection. Consider a two-period model in which a seller makes the decisions of order quantity and sale price at the beginning of the first period. Customers will pay full price if they buy the product in the first period and the discounted price if they buy the product in the second period but their valuation decrease. However, the customers might not get the product when they decide to buy the product in the second period. Customers who can't get the product in the second period will feel disappointed. We show that strategic customers will decrease the order quantity, price and total profit. Furthermore, we study the effect of the price commitment policy to alleviate the strategic customer behavior, and identify the conditions under which the policy is effective. In addition, we compare the performance of the price commitment policy with that of the most-favored-customer protection policy and show that the latter is more beneficial to the seller. But both the two policies can't eliminate fully the strategic customer behavior.

This study explores the major reasons for Chinese small dairy farms to accept the new organization structure, dairy complex (DC), and the discrepancies between the actual effect and farmers’ perceptions. Our results show that the frequency of milk refusal, herd scale and farmers’ age contribute to farmers’ decision in accepting DCs, while sale price and disease prevention do not have significant influence. Independent farmers’ perceived effects and the actual effects of DCs in improving raw milk safety and price are consistent, but there exists misperception of DCs’ effect in disease prevention.

The term “overcapitalized” is frequently used to describe the condition of various fisheries, and to explain why a fishery is in poor condition from a stock status perspective. Often, the concept of overcapitalization is associated with the number of active vessels in a fishery. Although vessel counts are important, they do not fully capture investment or disinvestment in a fishery, and only serve as a crude proxy for a richer concept of fishing capital. A better measure to judge whether overcapitalization is occurring would be the change in capital value for vessels operating, or permitted in a fishery, relative to a benchmark value. Unfortunately, data do not always exist to measure vessel value and associated changes through time. This study presents a method for calculating vessel capital value using a distance function, publicly available vessel sale price data, and non-parametric programming methods. Estimates of value for vessel attributes returned by the distance function are then used to estimate a total value for currently permitted vessels in the northeast region of the United States, and to construct a capital value index for vessels active in the squid, mackerel and butterfish (SMB) fishery between 1996 and 2016. Findings show that the total value of commercially permitted vessels in the northeast region is estimated to be between $606.6 and $769.7 million ($2016). Based on the constructed capital value index, the SMB fishery has undergone a period of disinvestment marked by both declining vessel numbers and capital value.

In this paper we examine the effect of light rail transit on the residential real estate market in Hampton Roads, Virginia. Norfolk's Tide light rail began operations in August of 2011 and has experienced disappointing levels of ridership compared to other light rail systems. We estimate the effect of the Tide using a difference-in-differences model and consider several outcome variables for the residential housing market, including sale price, sale-list price spread and the time-on-market. Our identification strategy exploits a proposed rail line in neighboring Virginia Beach, Virginia that was rejected by a referendum in 1999. Overall, the results show negative consequences from the constructed light rail line. Properties within 1500 meters experienced a decline in sale price of nearly 8%, while the sale-list price spread declined by approximately 2%. Our results highlight the potential negative effects of light rail when potential accessibility benefits do not out weigh apparent local costs.

PurposeThis paper aims to investigate the stigma effect on property valuation/sale price for remediated residential leaky buildings constructed in New Zealand during the 1990s and 2000s. In particular, the authors want to know whether meeting the regulatory standards for remediation work will totally eliminate the negative stigma effect on remediated properties.Design/methodology/approachProperty transaction data for remediated leaky homes are often limited and not well recorded. Thus, it is very difficult or even impossible to identify those remediated properties in a standard property transaction data set. Moreover, a vast amount of information regarding the nature of property defects, remediation process and method is very difficult to obtain. In this study, members of the Property Institute of New Zealand (PINZ) and the Real Estate Institute of New Zealand were invited to participate in an online website survey. The results were then analysed using the principal component analysis, ordinary least squares and multinomial logit regressions.FindingsThis study indicates that for monolithic-clad dwellings, the price discount due to leaky building stigma is significant. Depending on the severity of the leaking problems, this is about 11 per cent on average for general market stigma and an additional 5-10 per cent for post-remediation stigma. The results highlight that meeting the regulatory standards for remediation work cannot totally eliminate the negative stigma effect on remediated properties. The findings are in line with the lemon theory introduced by Akerlof (1970) and robust to individual characteristics of the survey respondent.Originality/valueGeneral market stigma has been widely researched and documented in the literature. In contrast, there is a lack of research as to whether remediation will eliminate stigma, particularly in the presence of general market stigma. The authors are the first to show that post-remediation stigma can cause value loss in addition to general market stigma based on the lemon theory proposed by Akerlof (1970).

PurposeCanterbury, New Zealand, experienced two significant earthquakes in 2010 and 2011 with a devastating impact on both houses and land. Negative media attention to the potential financial risks of living near or on the new Technical Category 3 (TC3) land or on land in a flood zone has fuelled the perception of uncertainty over the negative property price impacts. This research aims to determine if residents’ perceptions of the risks associated with various types of land zones (e.g. TC1, TC2 and TC3) are reflected in property prices.Design/methodology/approachThis research analyses sale price patterns and the relationship between sale prices and house characteristics before and after both earthquakes. A three-step approach was taken by applying: an average trend analysis, Geographic Information Systems’ (GIS) hotspot analysis to identify possible spatial differentiations between the before and after-effects of the earthquakes and hedonic modelling to quantify the effect of house characteristics on sale price while controlling for and comparing three land zones (TC1 to TC3).FindingsThe data suggest that average sale prices increased after both quakes in TC1 and TC2 in contrast to TC3 zones, while close to 8,000 structures were demolished in red zones from 2010-2013 (supply was reduced). The econometric modelling suggests that higher sale prices are achieved by: newer houses across all land zones and more recent sale agreements only in TC1 and TC2 zones. Other observations include the effect of certain exterior façade materials on sale prices on the overall data set and in the individual TC1 and TC3 zones. In conclusion, the results suggest that although caution might exist for the TC3 zone, the quality of the house can override the stigma attached to the TC3 zones.Research limitations/implicationsA confounding factor in the research was that approximately 7,800 homes were rezoned red and/or demolished between 2010 and 2013 changing the supply and demand balance. Further, banks and other lenders updated their requirements for new lending on properties in the Canterbury region, requiring a number of reports from professionals such as structural engineers, geotechnical engineers and valuers before any new lending would be approved. Additionally, immediately after the September and February earthquakes, there was a 21-day stand-down period for earthquake-cover in Canterbury and without adequate insurance cover banks would not advance mortgage money, causing a short-term slowdown in the residential property market.Practical/implicationsThe outcomes of this research will be of interest to government agencies tasked with assessing compensation for affected property owners. For example, the Earthquake Commission (EQC) developed aDiminution of Value Methodology for Increased Flooding Vulnerabilitythat formed the basis of a High Court declaratory judgment decision in December 2014 that cleared the way for the EQC to start settling properties with increased flooding vulnerability. The EQC methodology was informed by the results of similar studies to this one, from around the world. Homeowners and rating valuers will also be interested in the results to understand how house prices have been affected by market perceptions towards earthquake damage, particularly in the worst-affected areas.Originality/valueThis study fills a research void regarding the price impacts of residents’ perceptions of the risks associated with various types of land zones that reflect the expected future liquefaction performance of the land.

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.

This study aims to provide a clear understanding of the interaction between forward and reverse processes in a closed-loop supply chain based on a comprehensive model, which determines the sales prices of new and refurbished items, incorporating the channel conflict issues between the first and second markets. A three-echelon supply chain consisting of a manufacturer, a seller, and a refurbisher is examined. Then, we introduce five models with different supply chain structures considering possible combinations of processes. The comparison among five models reveals that the supply chain structure can differentiate not only the sales prices of new and refurbished items but also the overall performances. Specifically, the manufacturer's integration of the selling process induces the lowest sales price of a new item, and the sales price of a refurbished item is highest when a third-party refurbisher handles the refurbished item. The first-market sales are maximized when the manufacturer directly sells the new item, while second-market sales are maximized when the seller deals with both new and refurbished items. The combination of supply chain processes also plays an important role in enhancing the profit of each supply chain player and overall supply chain.