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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.

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...

The purpose of the paper is to investigate the main causes of discount between list price and forced sale value in the Italian real estate auction segment, in favor of more comprehensive determination of the value of mortgage underlying guarantees; this would allow for an improvement of further valorization processes of assets intended to obtain a higher selling price.Starting from the results of existing literature, an ordinary least squares regression analysis was conducted in order to point out the main determinants of the discount between list price and forced sale value. It has been verified, when sampling 225 cases of forced residential property sales in the South of Italy, that the time constraint of the Italian regulatory framework is more relevant with reference to discount rather than the physical characteristics of assets.The influence of the duration of procedures is proof that even if recent government initiatives have led to positive results in terms of reducing the length of procedures, this is not yet satisfactory compared to other European contexts. This provides evidence of the need for further interventions aimed at improving the efficiency of the procedural system, also encouraging recourse to other options that lead to ease judicial burden.

Inventory level has a significant impact on the goodwill of products to customers, which seldom becomes the focus of previous studies. In this paper, joint dynamic pricing, advertising, and production decision-making problem is investigated, where the demand rate depends on sales price and goodwill. The inventory and backlog as well as advertisement are considered as goodwill-building factors. The optimal dynamic pricing, advertising, and production policies are derived by using Pontryagin’s maximum principle. Numerical examples are provided to demonstrate the obtained results, and sensitivity analysis of main system parameters is carried out to obtain some managerial insights. We find that when the initial goodwill is relatively high, the firm’s profit first decreases and then increases with respect to the impact intensity of inventory on goodwill; otherwise, the firm always benefits from a higher impact intensity of inventory on goodwill. Furthermore, the optimal production and advertising policies are complementary caused by the feature of inventory-dependent goodwill.

In order to explore the relationship between housing prices, per capita disposable income and real estate planning investment, this article uses the data of average sales price of Anhui Province from 2000 to 2018, per capita disposable income and real estate planning investment as samples to establish multiple linear regression. The model found a significant positive correlation between house prices and income. By using EVIEWS9.0 analysis software,three quantitative relationship between those who came to the conclusion functional relationship is: In Yt∧ = 5.1649 + 0.0803X1t∧ + 0.4266X2t∧.

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.

لقد اختار الله هذه الشريعة لتکون خاتمة الرسالات فهيأ لها أسباب البقاء، ووضع فيها من المبادئ العامة والأحکام ما يکون مردا لعلاج کل داء أو بلاء، وتلبية لرغبة کل واقع عند الاحتياج اليه. إن الرضا أساس کل علاقة تعاقدية وشرط جوازها - فيما أحل الله – لذا فإن العلم بالثمن والمثمن لا بد منه حتى يتحقق الرضا من هنا اجمع الفقهاء على ان من شروط صحة عقود المعاوضات أن يکون العوض معلوما للمتعاقدين حتى لا يدخل العقد جهل يضر بالعقود؛ لأنه يؤدي الى المنازعة المقضية الى فسادها وبطلانها. والجهالة المبطلة للعقود يتوافر لها شروط منها أن تکون الجهالة المقضية إلى نزاع جهالة تنافي العلم حتما وأن يعلم طرفي العلاقة التعاقدية کل ما يتعلق بإتمام العلاقة التعاقدية کعلم المشتري بالمعقود عليه وعلم البائع بالثمن ولا يتحقق العلم بمعرفة أحدهما دون الآخر وأن يکون العلم النافي للجهالة مصاحب للعقد غير متأخر عنه على رأي جمهور الفقهاء إلا أن البعض – ونحن معه - رأي جواز أن يتأخر العلم الي لا يؤدي الى مفسدة مثل صورة البيع بالرقم أو بما باع به فلان. ظهرت في الآونة الأخيرة ما يسمى بالمؤشرات المالية وهى في حقيقتها أدوات يتوصل بها إلى قياس التغيرات الحاصلة في السوق ، ولقد أنشأها النظام المالي لتسهيل التعاقد بين المستثمرين وهذا هو الغرض المخصص من إنشائها ويجوز شرعا استخدام المؤشرات للتعرف على حجم التغير في سوق معينة کما يجوز استخدام المؤشرات للحکم على أداء المديرين المحترفين بمقارنة العائد المحقق منهم بالمؤشرات باعتبارها قرائن معتبرة ، کما يمکن استخدامها لتکوين فکرة عن أداء ومخاطر کل ورقة مالية على حدة ، أو للتنبؤ بالحالة المستقبلية للسوق واکتشاف نمط التغيرات التي تطرأ عليه. والواقع الذي يربط بين المؤشرات المالية والبيع المؤجل بالثمن المتغير عبارة عن بيع بثمن مؤجل يتم تحديد ما يدفع منه من أقساط حسب مقدار المؤشر سواء کان الثمن محددا عند انشاء العقد أو غير محدد والحقيقة فان المصارف الإسلامية کانت تحتاط في تمويلاتها طويلة الآجل بوضع الحد الأعلى الذي تتوقع أن يصل إليه معدلات الأرباح أو ما يقاربه أثناء مدة العقد بأکملها ولکنها بذلک خسرت عملاءها لکون مقدار الربح الذي تطلبه أعلي بکثير من البنوک التقليدية بل إن الواقع يشهد انه في حالات کثيرة أبرم العملاء عقودا طويلة الاجل مع مصارف إسلامية حال ارتفاع معدلات ومؤشرات الأرباح والأثمان فلما انخفضت هذه المؤشرات رجع کثير منهم على المصرف يطلب فسخ العقد وبعض هذه الحالات کانت منشأ نزاع وخصومة مما أفقد المصارف الإسلامية شرائح کثيرة خاصة في هذه العقود طويلة الآجل والتي تقدر تعاملاتها بمئات الملايين. وللبيع الآجل بالثمن المتغير على المؤشر تطبيقات أولها حالة البيع الآجل بالثمن المتغير على المؤشر والثمن معلوم بداءة وثانيها حالة البيع الآجل بالثمن المتغير على المؤشر والثمن غير معلوم وثالثها حالة بيع العوائد المؤجلة بعضها ببعض ثابتا بمتغير أو متغيرا بمتغير من نقد واحد أو نقدين مختلفين. والتطبيق الأول صورته أن يکون الاستحقاق المؤجل (الثمن) في البيع معلوما عند انشاء العقد. والتطبيق الثاني البيع الآجل بالثمن المتغير على المؤشر والثمن غير معلوم عند إنشاء العقد. والتطبيق الثالث بيع العوائد ببعضها في البيع الاجل ثابتا بمتغير أو متغيرا بمتغير من نقد واحد أو نقدين مختلفين. وفي تقديري فإن هذه الصورة محرمة وذهب إلى ذلک العلماء المعاصرون. Allah has chosen this Sharia to be the conclusion of messages, so, He has adapted the causes of its survival and put in it general principles and provisions, which are treatments of any disease and answers for any question. Satisfaction is the base of every contractual relationship and the condition of its permissibility – as Allah makes lawful – so, knowledge of the price and the priced item is necessary to achieve satisfaction. Hence, jurists agree that the two parties' knowledge of compensation is one of the conditions of the validity of commutative contracts so that the contract cannot introduce ignorance that harms the contracts; because it leads to dispute rendering the contract invalid. The contract-invaliding ignorance has conditions, including that the ignorance leading to a dispute should absolutely contradict the knowledge and that the two parties must know all about the contractual relationship such as buyer's knowledge of the subject of the contract and seller's knowledge of the price and that due diligence knowledge must be concurrent with the contract according to the opinion of majority jurists. However, some jurists – whom we follow – said that knowledge may be delayed as long as it does not lead to any violation of the contract such as the concept of sale by number or by the same thing sold by another person. Recently, the so-called “financial indicators” have emerged, which are in fact tools of measuring changes in the market. They have been established by the financial system to facilitate contracting among investors and this is the purpose of their establishment. Indicators may be legitimately used to know how a specific market changes every day and to judge the performance of professional managers by comparing their outcomes to indicators as they are considered valid proofs. They can also be used to adapt an idea about the performance and risks of each banknote separately, or to predict the future state of the market and discover the pattern of changes that may occur. The real link between the financial indicators and the future sale at variable price is the sale at a deferred price, installments of which are paid according to the index, whether the price is fixed at the time of the contact or not. In fact, Islamic banks were cautious about long-term financing, setting the maximum or approximate limit of expected profits throughout the duration of the contract. Yet, they lost their clients because their requited expected profits are much more than the traditional banks. Moreover, in many cases, clients have actually concluded long-term contracts with Islamic banks in case of high profit rates and indicators and prices. Once these indicators declined, most of them resorted to the bank requesting to revoke the contract. Some of these cases brought disputes and controversies, which made Islamic banks lose many segments, especially in these long-term contracts, which are estimated at hundreds of millions. The future sale at variable price on the index has applications: firstly, the future sale at variable price on the index with a previously known price; secondly, the future sale at variable price on the index with unknown price; and thirdly, the sale of deferred returns to each other, fixed-to-variable or variable-to-variable, with one cash or two different cash. The first application is achieved by knowledge of the sale price at the time of contract. The second application is the future sale at variable price on the index with unknown price at the time of contract. The third application is the sale of exchanging returns at the future sale, fixed-to-variable or variable-to-variable by one cash or two different cash. In my account, this case is forbidden by Islam, which is supported by contemporary scholars.

Traditional approach to analyze the determinants of Chonsei deposit to housing sales price ratio is based on asset market equilibrium condition. However, this approach does not fully account for complexity involved in Korean rental housing market, where Chonsei, Monthly-rent-with-variable deposit, and pure monthly rental contracts coexist. In this paper, we utilize each rental type’s different rate of return structure and examine the determinants of Chonsei deposit to housing sales price ratio based on rental housing market equilibrium condition. We further incorporate housing price volatility into the analysis as a critical variable related to housing investment risks, which has been ignored in previous studies. Our empirical analysis using a sample of the apartment sales price and rent in Seoul confirm our theoretical predictions: Chonsei deposit to housing sales price ratio is positively linked to the rent-to-price ratio and housing price volatility, and the ratio is negatively affected by the expected housing price appreciation rate. The relationship between the Chonsei deposit to housing sales price ratio and housing price volatility was robust to different measures of housing price volatility. The long-run elasticity of Chonsei deposit to housing sales price ratio with respect to rentto- price ratio was estimated to be 1.04~1.22 and the long-run elasticity of the ratio with respect to housing price volatility was estimated to be 0.15~0.53. which is about 50 to 100 percent of the long-run elasticity with respect to expected housing price appreciation rate. These results show that previously ignored housing price volatility is one of important variables to affect Chonsei deposit to housing sales price ratio and risk factors are needed to be considered to better understand Korean housing market.

Estimates of loss aversion in housing sales prices may be biased because expected losses correlate with housing and borrower unobservables. We provide new evidence of loss aversion in sales price by differencing loss aversion estimates between sellers who exhibit focal point bias in their initial mortgage amount and those who do not. Although focal point bias and loss aversion are associated with different families of behaviors, recent evidence suggests links between these biases. Revisiting experimental data, subjects with high levels of loss aversion were more likely to use round numbers. Using housing data, estimates of loss aversion are 10 percentage points higher for sellers with round number mortgage amounts as a share of expected loss. Differences in expected loss are balanced over both housing and mortgage attributes, are stable as additional of controls are added, and are robust to using a discontinuity style regression centered on mortgage amounts of round numbers. On the other hand, traditional estimates of loss aversion fall by as much as 73 percent as additional controls are added. This study provides unique evidence that loss aversion and focal point bias are found together, and presents new, more robust evidence that loss aversion influences housing sales prices.

This review article evaluates housing price models and their configurations across 21 housing projects in different parts of the world that have a transit project being in close vicinity. These projects try to explain the impact of transit projects on the housing prices. The housing projects and their respective hedonic price models are studied to compile all the dependent and explanatory variables used in them. The explanatory variables are then classified into six categories, namely (i) Proximity variables, (ii) Proximity premium, (iii) Land/Structural variables, (iv) Neighborhood variables, (v) Accessibility variables, and (vi) Temporal variables. In most of these studies, the dependent variable is a variation of price (rent price, sale price, land price, etc.). The differences in the dependent variables are noted and highlighted in the evaluation. The comparison of different functional form of HPM is done to establish the difference in results and the applicability of them in appropriate models.

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 study the effect of an increase in capital requirements for residential mortgages on mortgage rates and house prices. We exploit a unique quasi-experiment in which affected banks faced an increase in risk weights of five percentage points. Using a difference-in-differences estimator, we find that treated banks increase their mortgage rates by 19 basis points. Houses near affected banks have a 2.38% lower sale price after the increase in capital requirements. Our results imply a semi-elasticity of house prices to changes in mortgage rates of 12.3, in line with predictions from a user cost model.

Since pricing is recognized as one of the most important tools for profit optimization, price competition is one of the major issues facing companies. Determining the appropriate inventory control policy and optimal selling price of various products is a major subject of scientific and industrial research in recent years. On the other hand, today, some of the products on the market have the potential to become obsolete, which means that their demand is reduced at once with the development of new technology. Therefore, determining the optimal price and inventory policies for these types of products is very crucial. In this research, an inventory control model for a retailer is formulated to optimize the inventory and pricing decisions for profit maximization simultaneously. According to the problem assumptions, demand is price-dependent, the time that product becomes obsolete has an exponential distribution, the type of product obsolescence is also sudden, and the retailer determines the optimum price and order quantity of replenishment. The proposed model has a nonlinear profit function, in which the partial derivatives of the objective function are used to reach the optimal value. Finally, the effects of various parameters such as the speed of obsolescence, the holding cost of each item unit, the cost of selling obsolete items, and the purchasing price were studied on the total profit. For this purpose, a numerical example is solved along with a sensitivity analysis to evaluate the validity of the model and investigate the effect of parameters on the optimal solution. The key achievement of this study was the development of a new model and providing a solution to determine the optimal values of product sales price and retailer order quantity with maximum profit.

This paper presents an optimization model to determine optimal dynamic sale prices and optimal energy procurement decisions of a load-serving entity (LSE) in the presence of solar energy for consumer’s elastic demand. LSE determines these decisions to maximize its profit at a given level of risk. Consumer’s elastic demand is considered by its price elasticity, and price uncertainty is modeled using the mean-variance approach. Optimal decisions of risk-neutral and risk-averse LSE are illustrated through a case study. Results indicate that LSE builds consumer demand by lowering sale prices during solar energy availability hours to utilize it optimally.

This paper investigates the housing market bubbles and the predictive nature of returns in Turkey by employing the Fully Modified OLS and the Dynamic OLS on time series data from January 2010-January 2019.The study provides new evidence on the long run boom in Turkish house prices. The drivers behind changes in house prises are discussed, ranging from accommodation services, construction and business tendency to changes in rent for housing. The results reveal a positive relationship between accommodation services and house prices at a significance level of 1%. Accordingly, a positive association exists amid construction and business tendency with house sales price. On a final note, average housing rents show a negative and insignificant response to changes in house sale prices in Turkey.

The income of a producer is determined by the prices received for his products: the sales price.

Numerous ML pricing models (Zillow’s Zestimate, Redfin Estimate) have been deployed to make house sale price predictions. They appears to be independent and unbiased signal to resolve pricing friction in the housing market. These ML models – learn from live sale prices and influence the same sales simultaneously. This creates a Feedback Loop where the ML model is confounded by its own previous version. We theoretically show how this Feedback Loop creates a self fulfilling prophecy where ML over estimates its own prediction accuracy and market participants over rely on ML predictions. We use data from Zillow’s Zestimate to establish necessary primitives for the theoretical Feedback Loop phenomenon. We also structurally estimate seller payoffs under current and counterfactual ML regimes. We show that ML pricing, instead of alleviating, may widen payoff disparity in favor of sellers with greatest ability to price. This happens because ML lowers pricing Disagreement but adds pricing Bias, with both effects amplified under strong Feedback and high capacity ML.

The purpose of this chapter is to demonstrate the law of supply in perfectly competitive conditions; this law states that when the sale price of a good increases, the quantity produced and supplied of that good increases as well. To this end, after having clarified what perfect competition is, we will derive the equilibrium conditions of such a market in the short and long run. We will then define social well-being in a single market, and lastly focus attention on the “political” meaning of the notion of competition.

We study a stylized vertical distribution channel where a representative manufacturer sells a single kind of good to a representative retailer. The control of the manufacturer is the price discounts, while the control of the retailer is pass-through. In the classical setting, the arising problem is quadratic with respect to wholesale price discount and pass-through. Thus, the optimal sale price is continuous. It seems elegant mathematically but not adequate economically. Therefore we assume that the controls are constant or piece-wise constant. This way, the optimal control problem reduces to the mathematical programming problem where the profit of the manufacturer is quadratic with respect to price discount level(s), while the profit of the retailer is quadratic with respect to pass-through level(s). We study the concavity property of the profits. This allows getting the optimal behavior strategies of the manufacturer and the retailer.

Marketers frequently compare a product’s sale price against its regular price to accentuate perceptions of value. The effectiveness of these price comparisons is predicated on consumers sufficiently processing the deal’s depth (i.e., the regular price − sale price differential). Although research indicates consumers can generally make such assessments, we document an exception when price comparisons are presented in a format that aligns with the vertical orientation of consumers. The correspondence between vertical price comparisons and the mindsets of individuals who value social hierarchies (i.e., who are vertically oriented) induces a sense of “fit” that reduces processing and leads to similar responses to the offer regardless of deal depth. This effect manifests regardless of whether vertical orientations are measured as a chronic state or temporarily primed. Supporting our theorizing, vertically oriented participants report paying less attention and being less motivated to process price comparisons. Theoretical implications of these findings are discussed as are suggestions for future research examining how social views may shape consumer processing of product attribute and point-of-purchase information.

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.

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.

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.

Investors who seek to profit from depreciating currencies may invest in put options. Upon option exercise, the currency is sold at a high price, and then purchased at the lower future currency value, resulting in a gain for the put buyer. A series of such transactions yields a stream of income for the put investor. Alternatively, the investor could short sell the currency, reaping gains from the difference between the high short sale price and the low future purchase price. This paper derives the theoretical formulations for combined short sale and puts purchase strategies for the US dollar, the Euro, the Australian dollar and the New Zealand dollar, and the Mexican peso. Utility functions are based upon an assumption of declining risk aversio with negative rescale factors and positive threshold factors in a hyperbolic cosine distribution. This distribution intersects with the cosine distribution of short sale prices on the U. S. dollar, the lognormal distribution of short sale prices on the Euro, the Weiner process for shorts on the Australian dollar and the New Zealand dollar, and the Laplace currency distribution for peso shorts. Similar utility functions intersect with Levy-Khintchine jump processes to provide put option prices for each type of foreign currency.

This study examined the price spillover effect of housing submarkets in cities in the Seoul metropolitan area in South Korea by using the Granger causality test and vector autoregressive model (VAR). We found that housing prices showed a higher spillover effect within regions with similar housing market characteristics. Additionally, the spatial spillover of housing prices revealed a difference between sales price and jeonse price. The spillover of jeonse price was characterized by mutual influence among neighboring cities, while that of sales price was characterized by the influence being transferred in one direction hierarchically. Furthermore, the effects of housing price indicated a slight difference between sales price and jeonse price. Although jeonse price was mainly affected by a neighboring area (geographic boundary), sales price was more influenced by the city with the highest housing prices. Lastly, the housing price spillover tended to be expansive around the city with the highest price. These results suggest that housing price policies targeting specific regions or areas in Korea must be differentiated according to the type of occupancy (jeonse or sales), and it is essential to consider the externalities when promoting policies in the housing market wherein externalities may be significant.

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.

Merging capacity for a remanufacturing system is studied in this paper. In the system under study, there are two streams for returns and each stream has its dedicated processing line. However, the storage space is merged between the streams. Two strategies are investigated and compared in this paper. The first strategy is to divide the storage space between the two streams in the way that each type of return has its predetermined space in the storage area (divided capacity). In the second strategy, storage space is not split between the two streams and each unit of return, independent of its type, is admitted if there is vacant space (merged capacity). In both strategies, the value of remanufactured products decreases over time by a known factor called the decay rate. Mathematical models to maximize the total profit in each strategy is presented and also verified by a simulation model. From a practical point of view, selecting the correct strategy is an important decision for the remanufacturers because choosing the wrong policy leads to lost profits. Numerical experiments reveal that neither of the scenarios is always preferred to the other one and the choice of the optimal strategy depends on the parameters' values and product types. For instance, increasing the remanufacturing cost of the superior product, or increasing the sale price of the inferior product make the merged storage strategy more desirable. On the contrary, increasing the remanufacturing cost of the inferior product, or increasing the sale price of the superior product make the divided storage policy more appealing.

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).

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.