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Purpose This paper aims to examine the behavior of “rational” residential developers, under game theory, for their pricing strategy in a competitive environment. Design/methodology/approach Results show that residential developers cooperate implicitly for long-term benefit, leading to a slow-down in sales. Developers are motivated to deviate from cooperating at the beginning and at the end of successive periods in a sub-market. Relatively high profits, earnable in the first few periods, provide an allowance to undercut prices and improve sales. For the last few periods, the punishment for any deviation from cooperating is insignificant or zero. Note that the first-mover advantage in a new market is evident. On the effect of uncertainty on the developer’s residential prices, results show that as uncertainty increases, prices decrease while price variability increases. Research limitations/implications This study highlights the merits of a uniquely simplified experimental research design for the strategic behavioral pricing of the private residential development market using a game theoretic approach. Practical implications This study enhances the understanding of the residential development strategy of developers in the residential development market. Originality/value There is limited research on pricing strategy for the private residential development market in Asia.

Contingent capital (CC), which aims to internalize the costs of too-big-to-fail in the capital structure of large banks, has been under intense debate by policy makers and academics. We show that CC with a market trigger, in which direct stakeholders are unable to choose optimal conversion policies, does not lead to a unique competitive equilibrium unless value transfer at conversion is not expected ex ante. The \"no value transfer\" restriction precludes penalizing bank managers for taking excessive risk. Multiplicity or absence of equilibrium introduces the potential for price uncertainty, market manipulation, inefficient capital allocation, and frequent conversion errors.

Models of consumer decision making commonly incorporate reference dependent preferences. In these models, the reference point is typically assumed to be known by the consumer. However, research on price recall and the reference formation process reveals that the reference price is often uncertain at the time of purchase. Reference price uncertainty creates ambiguity for the consumer about whether they are getting a good or bad deal. This paper develops a model of consumer choice in the presence of reference dependent preferences when the reference price is uncertain. Data from two empirical studies that vary the product category and order of the elicitation of reference prices show that the new model generally outperforms conventional discrete choice models that either ignore reference prices or treat reference prices as certain. The new model provides insights into the effect of reducing reference price uncertainty on consumer choice, and reveals that high uncertainty smoothes the kink in the demand curve that is present in traditional reference‐price demand models.

Emissions trading schemes have been widely implemented by many countries to enforce the “cap and trade” concept for mitigating CO2 emissions. Thus, the carbon price influences the manufacturing costs in all stages of production, recycling, and disposal. Consideration of the carbon price is especially important for the economic efficiency of the downstream manufacturing sectors, such as in plastic product manufacturing, to substantially reduce their costs through the design and management of networked supply chains, which results in purchasing feedstocks from different technological routes, as well as choosing plants, warehouses and various transportation modes with diverse CO2 emission intensities. Supporting the decision-making in such situations requires the integration of life cycle analysis and networked supply chain management methodologies with an analysis of the carbon-market uncertainties. Such approaches have not been sufficiently quantified in the existing literature. This study presents a stochastic mixed-integer linear programming model developed for polyvinyl chloride pipe manufacturing in China, which is used to evaluate the effects of the life cycle emissions of procurement on the whole supply chain under carbon market uncertainty. Our results illustrate that the carbon market uncertainty would not only significantly influence the carbon-intensive production sectors but also the downstream manufacturing sectors. The five scenarios with carbon price variation exhibit distinctively different choices in procurement and supply chain configurations, as well as in their performances regarding total emissions and associated costs.

This paper examines the asymmetric impact of economic policy uncertainty (EPU) and oil price uncertainty (OPU) on inflation by using a Nonlinear ARDL (NARDL) model, which is compared to a benchmark linear ARDL one. Using monthly data from the 1990s until August 2022 for a number of developed and emerging countries, we find that the estimated effects of both EPU and OPU shocks are larger when allowing for asymmetries in the context of the NARDL framework. Further, EPU shocks, especially negative ones, have a stronger impact on inflation than OPU ones and capture some of the monetary policy uncertainty, thereby reducing the direct effect of interest rate changes on inflation. Since EPU shocks reflect, at least to some extent, monetary policy uncertainty, greater transparency and more timely communications from monetary authorities to the public would be helpful to anchor inflation expectations.

PurposeThis study examines the impact of oil price volatility on firm profitability. As Shariah-compliant firms operate under restrictions, the study also explores whether oil price volatility affects Shariah-compliant firms differently from their non-Shariah-compliant counterparts.Design/methodology/approachThe study sample includes all non-financial firms listed on Gulf Cooperation Council stock exchanges from 2005 to 2019. In evaluating the oil price volatility–profitability relationship, static (panel fixed effects) and dynamic (system generalised method of moments) models were used.FindingsOil price volatility significantly depresses firm profitability. In addition, Shariah-compliant firms are more significantly affected by oil price volatility than their non-Shariah-compliant peers. The results suggest that high oil price volatility exposes Shariah-compliant firms to higher bankruptcy risk than non-Shariah-compliant firms and that positive and negative oil price shocks have asymmetric effects on firm performance.Research limitations/implicationsThe findings of the paper call for more economic diversification by supporting non-oil sectors in the region and raise the need for more development of Islam-compliant products that compete with traditional instruments to help Shariah-compliant firms cope with uncertainty. Moreover, managers need to prepare quick alert and response procedures to reduce the negative impacts of oil price volatility on profitability.Originality/valueTo the best of the authors’ knowledge, this study is the first to explore the relationship between oil price volatility and profitability of non-financial firms. Further, the study extends prior Islamic corporate finance literature by enhancing the understanding of how Islamic corporate decisions affect firm performance during instability.

This paper investigates the relationship between the price of oil and real output in the United States in the context of a Markov regime switching, identified, structural GARCH-in-Mean VAR model with copulas. We use the copula method to investigate the nonlinear dependence structure, as well as (upper and lower) tail dependence, between the price of oil and real output growth, and Markov regime switching to account for changing oil price dynamics over the sample period. We find an asymmetric negative dependence structure between oil price and output growth shocks and that oil price uncertainty has a negative and statistically significant effect on real output growth.

Purpose This paper aims to examine the factors leading to and resulting from procrastination under high price uncertainty and provide recommendations for how managers can reduce consumer procrastination, thus decreasing consumer regret, anger and retaliatory behaviors. Design/methodology/approach Hypothesized relationships were tested through two scenario-based experiments using student samples. Data was analyzed using general linear model, path analysis and Wald chi-square test. Findings Long time limits, price uncertainty and price consciousness, all increase the likelihood of procrastination. Prestige seeking reduces procrastination, but only when time limits are short. When one delays a purchase and later the price of the item gets increased or one makes a purchase and later the price gets further reduced, procrastination and purchase decision both equally can lead to anger, which then increases the probability of exit, voice or word of mouth (WOM); however, procrastination has a much stronger impact than deciding to purchase on self-responsibility and regret, which in turn increases negative WOM. Research limitations/implications This paper provides a greater understanding of antecedents and consequences of procrastination as well as the drivers of retaliatory behavior. Further, the findings highlight differential consequences of consumer regret and anger on consumption behaviors. Practical implications This paper provides practical suggestions for reducing consumers’ procrastination through leveraging the effects of purchase time limit and price uncertainty in general, and more specifically, for prestige-seeker and price conscious consumers. The findings provide evidence for a silent path from procrastination to retaliation and highlight the importance of possible remedies or interventions by the companies to mitigate consumer emotions resulting from procrastination. Originality/value To the best of the authors’ knowledge, this research is the first to apply temporal motivation theory in the context of consumer behavior under price uncertainty, and examine consequences of consumer procrastination in terms of thoughts, feelings and retaliatory behavior.

Despite being richly endowed with array of non-renewable and renewable energy resources, including oil, coal, gas, solar, wind, and water, Nigeria still faces severe energy crises and weak economic growth. This study explores the impact of energy infrastructure and human capital on economic growth, incorporating the moderating effect of oil price uncertainty. Using annual time series data from 1996 to 2022, the analysis employs Fully Modified Ordinary Least Squares (FMOLS) and Canonical Cointegration Regression (CCR) techniques. The findings from both models indicate that energy infrastructure and human capital have a positive and statistically significant influence on economic growth. Additionally, the FMOLS results reveal a negative and statistically significant coefficient for oil price uncertainty. However, the inclusion of the interaction term yields a positive and significant coefficient across the models, indicating that energy infrastructure investment can partially offset the negative impact of oil price volatility. These findings are confirmed by the results of dynamic Autoregressive Distributed Lag (ARDL). The study therefore recommends the diversification of the energy sector by increasing the share of renewable energy in the total energy mix and improving the quality of education and health, as well as upgrading the work force.