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This paper identifies a monetary policy channel through the risk pricing of bank debt in the market for jumbo certificates of deposit (jumbo CDs). Adverse policy shocks increase debt holder perceptions of bank default, increasing the risk premia for some banks, thereby decreasing their external funding of loans. The results show that contractionary policy increases the sensitivity of jumbo-CD spreads to leverage and asset risk for small banks, and to leverage for large banks. The results also show a distributional and aggregate effect on banking system jumbo CDs and total loans, producing a risk-pricing (or market discipline) channel. This channel has implications for monetary and regulatory policies, and financial stability.

In the two-sided market, the digital products vendors have dual available distribution channels: pipeline channel and platform channel, and then the pricing and development problems become more complex, especially they are also impacted by the network externality effect that is a significant economic characteristic of digital products. The current work presents the utility models of consumers adopting the digital products from the pipeline and platform channel basing on the classic Hotelling model, moreover, the utility models take into account the network externality. Deriving from the utility models, the optimization models in the context of pipeline and platform channel are developed. The optimization models take prices as the decision variables to maximize the firm's profit in each type of channel. The models are solved through the backward deduction method and the closed-form solutions show that the network externality would positively (negatively) impacts the products' price and the firm's profit if the differences between the pipeline and platform channel are small (large). In addition, the current work explores the trade-off between the Compatible and Incompatible strategy adopted by the digital products firms in the platform channel. The current work investigates the network externality effect on the pricing and development problem faced by the digital products firms, and then enlarges the knowledge on the issue of pricing and developing digital products when the firms face the emerging platform economy.

With the vigorous rise of online third-party recycling platforms, dual-channel recycling has become the primary recycling mode in the reverse supply chain (RSC). However, as the main body of recycling, consumers have a significant impact on the recycling process, and their behavioral preferences are rarely considered in the pricing decision of the reverse recycling supply chain. Based on the dual-channel RSC, this paper considers the competition among channels. It introduces the loss aversion behavior preference of consumers to establish a dual-channel RSC composed of remanufacturers and online and offline recyclers. This study aims to analyze the impact of consumers’ loss aversion behavior on the recycling pricing and profit of each node in the green RSC and discuss the decision of recyclers under consumers’ loss aversion behavior. The results show that the deeper consumers’ aversion to the loss of recycling price, the lower the recycling price of dual-channel recyclers will be, which will be more conducive to the increase in the profit of online recyclers. However, the profit of remanufacturers will be reduced, and the total amount of recycling will decline. This paper considers the impact of consumer loss aversion behavior on dual-channel reverse supply chain pricing decisions based on prospect theory. It provides references for chain members to set recycling prices to increase people’s enthusiasm for recycling and the amount of recycled scrap, contributes to the cause of resource conservation and environmental protection, and improves the economic efficiency of recycling enterprises.

IntroductionDigital traceability is essential to ensure the transparency of the agricultural supply chain. However, manufacturers face a key strategic dilemma: the high initial investment cost hinders the investment in traceability, and multi-channel pricing further increases the complexity of strategic choice. Although subsidies are widely used to encourage technology adoption, their design whether offsetting initial investment or rewarding verifiable output will produce different economic signals, making the optimal policy and operational decisions unclear.MethodTo solve this dilemma, this study constructs a decision analysis framework based on Stackelberg game model. The framework jointly optimizes the level of digital traceability and pricing decisions of online and offline multi-channel under three policy mechanisms: (1) no subsidy; (2) Investment cost subsidy; (3) Production based subsidies. Through equilibrium analysis, the economic and operational results under different mechanisms are compared.ResultEquilibrium analysis reveals a core policy trade-off: investment cost subsidies can accelerate the adoption of digital technology faster, but will raise wholesale prices and consumer prices; In contrast, output based subsidies can reduce prices, stimulate demand and improve the profits of the entire supply chain, although its direct incentive effect on investment in the early stage is weak.DiscussionThese findings provide feasible insights for policy makers and supply chain managers. They illustrate how subsidy design directly affects the strategic trade-off between “accelerating technology deployment” and “maximizing long-term economic benefits”. This study contributes to the literature in the field of technology adoption decision support, and provides a structured analysis tool for designing targeted incentives in a digitally coordinated supply chain.

Purpose The purpose of this study is to empirically analyze the role of sukuk in the monetary policy transmission mechanism through the asset price and exchange rate channels in the Indonesian economy. Design/methodology/approach Using the monthly data from January 2003 to November 2017, this study uses a multivariate vector error correction model causality framework. To examine the role of sukuk in the monetary policy transmission mechanism through the asset price channel, this study uses the variables of consumption, inflation, interest rates, economic growth and the composite stock price index. Meanwhile, to examine the role of sukuk in the monetary policy transmission mechanism through the exchange rate channel, this study used variables of inflation, interest rates, economic growth, foreign investment and exchange rate. Findings This study documented that sukuk has no causal relationship with inflation through asset price and exchange rate channels. Nevertheless, sukuk has a bidirectional causal relationship with economic growth through asset price and exchange rate channels. Sukuk is also documented to have a causal relationship with monetary policy variables of interest rate and stock prices through asset price and exchange rate channels. Finally, a unidirectional causality is recorded running from the exchange rate to sukuk in the exchange rate channel. Research limitations/implications The finding of independence of the sukuk market from interest rates provides evidence that the trading of the sukuk in Indonesia has been in harmony with the Islamic tenets. Practical implications The relevant Indonesian authorities need to enhance both domestic and global sukuk markets as part of efforts to promote the sustainability of Islamic capital market development in Indonesia. Originality/value To the best of the authors’ knowledge, this study is among the first attempts to empirically investigate the role of sukuk in monetary policy transmission through asset price and exchange rate channels in the context of the Indonesian economy.

Resale price maintenance (RPM) is a channel pricing strategy that restricts the price below which a reseller may sell a manufacturer’s product. More than $300 billion in U.S. sales are affected annually by RPM agreements. Adopting a marketing perspective and analyzing trends in distribution arrangements and marketing channel systems, the authors offer predictions regarding the antitrust treatment of RPM following the Supreme Court’s decision in Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007). This research furthers the understanding of the role of the prior Colgate doctrine in establishing the existence of an RPM agreement and the impact of the new Leegin factors for assessing the competitive effects of RPM. Implications for stakeholders affected by RPM and related unilateral price policies are discussed.

This paper discusses optimal dual-channel dynamic pricing of a retailer who sells perishable products in a finite horizon. The type of product which is equipped with different attenuation coefficients of demands on different sales channels is considered. Novel demand functions for the two channels are proposed according to attenuation coefficients of demands, and then a decision model is constructed, which can be handled stage-by-stage. It is shown that the sales price and the sales quantity of the channel which possesses more market shares are both higher than the ones of the other channel at each sales stage. More importantly, by analyzing the reasonability of the obtained solution, a necessary and sufficient condition is proposed to guarantee that both of the two channels will not stop selling through the entire period. We also propose an approach by the elimination method to deal with cases in which some channel stops selling. Further, we demonstrate that the channel which possesses more market shares is the optimal option when only one channel runs. Finally, numerical examples are presented to investigate the change of sales prices of the two channels under different market potential demands.

Asymmetric pricing or asymmetric price adjustment is the phenomenon where prices rise more readily than they fall. We offer and provide empirical support for a new theory of asymmetric pricing in wholesale prices. Wholesale prices may adjust asymmetrically in the small but symmetrically in the large, when retailers face cost of price adjustment. Such retailers will not adjust prices for small changes in their costs. Manufacturers then see a region of inelastic demand where small wholesale price changes do not translate into commensurate retail price changes. The implication is asymmetric—a small wholesale price increase is more profitable because manufacturers will not lose customers from higher retail prices; yet, a small decrease is less profitable, because it will not lower retail prices; hence, there is no extra revenue from greater sales. For larger changes, this asymmetry in the behavior of wholesale price vanishes as the price adjustment cost is compensated by the increase in retailers’ revenue resulting from correspondingly large retail price changes. We present a formal economic model of a channel with forward-looking retailers and cost of price adjustment, test the derived propositions on the behavior of manufacturer prices using a large supermarket scanner data set, and find that the results are consistent with the predictions of our theory. We then discuss the implications for asymmetric pricing, channels, and cost of price adjustment literatures, as well as public policy.

Advancement in information technology has opened new avenues for traditional retailers to expand their operations. Pricing, which has been a critical issue, is more important than ever before as traditional retailers pursue multi-channel sales. In this paper the author studies the pricing problem of a retailer selling a seasonal product simultaneously in a ‘brick and mortar’ store as well as online. Optimal prices are derived and different product-market conditions are determined under which different combinations of channel adoptions are profitable for the retailer. Impact of various factors such as consumers channel preference, seasonality of the product and additional off-line holding and displaying costs on the optimal prices and profits are examined to provide critical managerial insights. Their results indicate that more “seasonal” a product more is the relative efficiency of the online channel. The author also finds that even if the market strongly favors the ‘bricks and mortar’ store, the profits for the retailer are boosted if the online shopping preference for the customer population are positively influenced. The author’s analysis also demonstrates that inter-channel and inter-temporal discounts increase as the seasonality of the product increases.

We present a general equilibrium model in which behaviorally motivated shifts in expectations play an important role in determining asset prices. In particular, fluctuations in investors' confidence about expected growth lead to variation in risk premia and asset price jumps. We directly measure confidence from the cross-section of forecasts from the Survey of Professional Forecasters. We show that there are frequent large moves in the confidence measure in the data. Moreover, in the data, these large moves are contemporaneously highly correlated with large moves in asset returns, highlighting the importance of confidence risk for asset prices. Exploiting the fluctuations in confidence risks, we show that the model can capture short and long horizon predictability by price to dividend ratio. Further, large moves in the confidence measure lead to large declines (negative jumps) in asset prices, though there are no large moves in consumption.