infonet-economy

Opportunities and risks must undergo careful assessments in order to survive in the world of globalization. This applies not only to the private but also to the public sector, including governmental, political and educational institutions. New control mechanisms must be developed and implemented to measure and monitor the performance of political programs. These tools primarily…

This paper analyzes the efficiency of three simple cost-based pricing heuristics in a twoperiod capacity planning model with uncertain demand. All policies start with full cost introductory prices but differ in second-period pricing. Under “adaptive full-cost pricing”, the firm updates second-period prices on the basis of current demand conditions and full unit costs. Under “wait-and…

This paper analyzes acquisitions resulting in a product line expansion of a firm. When the firm faces a non-stationary and stochastic demand in both the current and the new product line, switching between the production facilities may give diversification advantages. Switching between production facilities is similar to holding an inventory for both products. A case in the beverages…