Defense Technical Information Center (DTIC) · 2004
The Defense Commissary Agency (DeCA) engaged the joint project team of Dove Consulting (Boston, MA) and Willard Bishop Consulting (Barrington, IL) to evaluate the practicality of using a variable pricing system within DeCA to maintain an average of 30 percent customer savings and lower appropriated fund costs. This study was commissioned on January 12, 2004 with a 45 day performance period. This document describes the objectives, methodology, analysis and conclusions of the DeCA Variable Pricing Feasibility Study.
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DOVE CONSULTING BOSTON · 2004
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Abdou Kélani, François Quittard‐Pinon · 2014
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Durbin Rl · PubMed · 1965
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McCarthy, Kevin E. (Kevin Edward), 1954- · State Elections Enforcement Commission (State of Connecticut)
"November 21, 2011."; Discusses why the Public Utilities Regulatory Authority (PURA), formerly the Dept. of Public Utility Control (DPUC) changed how prices are set under Connecticut Light & Power's (CL&P) variable peak pricing program (docket 03-07-02 RE11).; Harvested from the web on 11/25/11
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Marques, Catarina Neto · University of Lisbon Repository (University of Lisbon) · 2017
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Krayzler, Mikhail · mediaTUM – the media and publications repository of the Technical University Munich (Technical University Munich) · 2017
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Didier Youmbi, riccardo pagnani · SSRN Electronic Journal · 2023
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Frank M. Bass, Ernan Haruvy, Ashutosh Prasad · The Journal of Business · 2006
Behavioral research has found that consumers respond to variability in prices in addition to price levels. We show that this finding can explain why some firms vary their prices more frequently than others. We examine pricing strategies composed of an average price and price variability and employ logit market share models to analyze equilibrium pricing strategies in an oligopoly. Two competing logit specifications termed price sensitivity and payoff sensitivity are considered and are shown to yield contradictory implications for pricing policy. From three empirical studies on restaurant choice, we find that the price sensitivity model is the better model.
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2020
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Junkee Jeon, Minsuk Kwak · Journal of Computational and Applied Mathematics · 2021
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Shelby Brooke Woods, Aaron K. Korthas · 1999
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Daniel A. Rascher, Chad D. McEvoy, Mark S. Nagel et al. · RePEc: Research Papers in Economics
Sport teams have historically been reluctant to change ticket prices during the season. Recently, however, numerous sport organizations have implemented variable ticket pricing in an effort to maximize revenues. In Major League Baseball, variable pricing results in ticket price increases or decreases depending on factors such as quality of the opponent, day of the week, month of the year, and for special events such as opening day, Memorial Day and Independence Day (July 4). Using censored regression and elasticity analysis, this paper demonstrates that variable pricing would have yielded approximately $590, 000 per year in additional ticket revenue for each Major League team in 1996, ceteris paribus. Accounting for capacity constraints, this amounts to only about a 2.8% increase above what occurs when prices are not varied. For the 1996 season, the largest revenue gain would have been the Cleveland Indians, who would have generated an extra $1.4 million in revenue. The largest percentage revenue gain would have been the San Francisco Giants. The Giants would have seen an estimated 6.7% increase in revenue had they used optimal variable pricing.
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Korthas, Aaron K., Woods, Shelby Brooke · Digital WPI · 1999
By simulating hypothetical Medallion Variable Life Insurance policies, appropriate premiums are determined to guarantee a death benefit for various lengths of time under various investment scenarios. With these premiums there is an estimated high probability of having an adequate account balance by the end of the guarantee periods. As with any guarantee, John Hancock will lose money on policies that fail. Additional fees are calculated to offset the expected losses of failed policies.
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Ankit Bansal, Desai Mayura Manohar, S. Shantani · IGI Global eBooks · 2011
This chapter proposes different variable pricing strategies that can be implemented in IDM marketplaces to increase revenues and consumption of IDM content. Adverse reaction of consumers to price discrimination, where they consider it unfair, is the greatest hindrance to successful application of variable pricing schemes.
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Loehman · OpenSIUC (Southern Illinois University Carbondale) · 2004
Water pricing by water utilities and public water management agencies is becoming increasingly contentious as water scarcity increases.Increasing Block Rate pricing has been developed to address needs to conserve water.The use of IBR is increasing among utilities.For example, from a survey of 119 utilities in the Southwest Florida Water Management District: 11.8% used IBR in 1991 and 29.4% used IBR in 1997; the number of utilities with decreasing block and uniform rates decreased over this period..Because there is no set prescription for setting the blocks, rate setting with IBR is fairly ad hoc (in contrast to average cost pricing).At the same time, many utilities are suffering revenue insufficiency as water users respond to both price and educational efforts by reducing use.This paper introduces a new method of pricing -Variable Unit Pricing.This method addresses both cost recovery and conservation simultaneously.It also is designed to satisfy economic efficiency -an aspect often ignored by utility rate-making procedures.Economic efficiency means maximization of aggregate net benefits from water utilization and supply methods.It requires that the last water unit consumed by each water user should have the same marginal benefit for each user.There is also a requirement regarding the relation between marginal benefit for each user and marginal cost of supply: if there are no user specific costs, marginal benefit should equal marginal cost of supply.The reason for these conditions is that -if they do not hold -then net benefits for the system could be increased, either by shifting from some uses of water to others, or by changing supply methods.VUP produces a quadratic total bill schedule, i.e. the price for all water units consumed increases with increasing consumption (assuming increasing marginal and average costs).Therefore, DRP is expected to be more effective for conservation needs than IBR in which only the marginal units are affected by the "marginal price."
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National Bureau of Economic Research · 2018
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Christophette Blanchet‐Scalliet, Etienne Chevalier, Idris Kharroubi et al. · International Journal of Theoretical and Applied Finance · 2015
In this paper, we study the valuation of variable annuities for an insurer. We concentrate on two types of these contracts, namely guaranteed minimum death benefits and guaranteed minimum living benefits that allow the insured to withdraw money from the associated account. Here, the price of variable annuities corresponds to a fee, fixed at the beginning of the contract, that is continuously taken from the associated account. We use a utility indifference approach to determine the indifference fee rate. We focus on the worst case for the insurer, assuming that the insured makes the withdrawals that minimize the expected utility of the insurer. To compute this indifference fee rate, we link the utility maximization in the worst case for the insurer to a sequence of maximization and minimization problems that can be computed recursively. This allows to provide an optimal investment strategy for the insurer when the insured follows the worst withdrawal strategy and to compute the indifference fee. We finally explain how to approximate these quantities via the previous results and give numerical illustrations of parameter sensitivity.
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Ramsauer, Franz (FIM) · mediaTUM (Technical University of Munich) · 2013
This master's thesis studies the pricing of variable annuity contracts. In particular, we are focussing on certain unit-linked life insurance products offering guaranteed minimum benefits at maturity, in case of surrender as well as in case of an insured's death. Contrary to miscellaneous approaches that have already been introduced in the past and that are (partially) still in use nowadays, our pricing scheme shall not be based on simulation. Instead of that, we make appropriate assumptions allowing us to derive closed-form approximations. As the considered contracts offer surrender options to their policyholders, the mentioned approximations have to explicitly capture the surrender behavior of the assured. Hence, we have to solve the duality consisting of a simple approximation and a detailed surrender modeling.
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Nathan Engelman Lado, Richard J. Chen, Saurabh Amin · ArXiv.org · 2025
Time-varying electricity pricing better reflects the varying cost of electricity compared to flat-rate pricing. Variations between peak and off-peak costs are increasing due to weather variation, renewable intermittency, and increasing electrification of demand. Empirical and theoretical studies suggest that variable pricing can lower electricity supply costs and reduce grid stress. However, the distributional impacts, particularly on low-income consumers, remain understudied. This paper develops a theoretical framework to analyze how consume heterogeneity affects welfare outcomes when electricity markets transition from flat-rate to time-varying pricing, considering realistic assumptions about heterogeneous consumer demand, supply costs, and utility losses from unmet consumption. We derive sufficient conditions for identifying when consumers lose utility from pricing reforms and compare welfare effects across consumer types. Our findings reveal that consumer vulnerability depends on the interaction of consumption timing, demand flexibility capabilities, and price sensitivity levels. Consumers with high peak-period consumption and inflexible demand, characteristics often associated with low-income households, are most vulnerable to welfare losses. Critically, we demonstrate that demand flexibility provides welfare protection only when coincident with large price changes. Our equilibrium analysis reveals that aggregate flexibility patterns generate spillover effects through pricing mechanisms, with peak periods experiencing greater price changes when they have less aggregate flexibility, potentially concentrating larger price increases among vulnerable populations that have a limited ability to respond. These findings suggest that variable pricing policies should be accompanied by targeted policies ensuring equitable access to demand response capabilities and pricing benefits.
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