Meng-Hua Ye

Price discrimination and economics journals

An analysis of pricing by economics journal publishers shows that most publishers initially charge libraries and individual subscribers the same price. Over time, however, almost all eventually engage in price discrimination. The few publishers that never price-discriminate seem to be purchasing an explicit non-profit-maximizing pricing strategy. Once discrimination occurs, library prices rise faster than individual subscriber prices. These results are consistent with theoretical predictions.

Dynamic allocation in a labor-managed firm☆

Abstract An optimal control approach yields improved insights into investment and employment decisions of internally financed labor-managed firms. The optimal path to the steady state is solved and comparative statics on the steady state are compared with results on the internally financed profit-maximizing twin. A tradeoff between current and future utility is stressed. Together, these studies provide new perspectives on the controversial Illyrian allocational responses, as well as new dynamic results.

Optimal internal investment in a labor-managed firm with heterogeneous membership: an overlapping generations approach

Abstract This paper examines the investment behavior of the internally financed labor-managed firm with an investment gestation lag by employing an overlapping generations model. We show that a retirement income will be paid equal to the current value of investment made by members while working less any income benefits already realized. The internally financed LMF may overinvest as well as underinvest compared to a conventional firm that has capital market access, though the conditions for this to obtain are found to be somewhat stringent. The existence conditions for the steady state are examined, providing further insights into the LMFs investment behavior.

Repeated stochastic tree problems

Abstract This letter extends the non-repeated stochastic tree problem. An approach to find the optimal time to cut down a mature tree is developed. A series of analytical results are reported.

Collective choice of price caps and freight absorption: A spatial approach to regulation

Abstract Regulated firms are often required to absorb most costs of delivering products or services to consumers. The economic effects of mandated freight absorption are developed here, including the interaction of freight absorption with price cap regulations. Spatial models of regulated firms produce several counterintuitive results, including the finding that a falling price cap can cause profits and delivered prices to rise. A voting model in which consumers select regulations to minimize delivered prices shows why uniform price regulations are popular. Collective choice outcomes do not maximize profits, welfare, or even the aggregate surplus of voters.

(s,S) Pricing policy when adjustment costs affect demand

Abstract Adjustment costs in a typical (s,S) pricing policy model are respecified so that price stability affects revenues rather than costs. The (s,S) pricing result holds even when menu costs are removed.

Economic efficiency and social stability: A stylized short-run price reform model

Abstract A stylized model is developed to focus on evaluating the economic efficiency and social stability issues related to price reform in the short run from a policymakers point of view. Different interesting special cases are studied. Comparative static results show when the pace of the price reform should be faster or slower and when the subsidy should be larger, smaller, or zero.