EBINA TAKESHI
Department Undergraduate School , School of Commerce Position Professor |
|
Language | English |
Publication Date | 2012/09 |
Type | International Conference |
Peer Review | Peer reviewed |
Title | "Estimation of the Demand Function and Calculation of Optimal Prices Taking Externalities into Consideration: An Analysis of Book Market in Japan", Frontiers in Artificial Intelligence and Applications |
Contribution Type | Co-authored (other than first author) |
Journal | Frontiers in Artificial Intelligence and Applications |
Journal Type | Another Country |
Publisher | IOS Press |
Volume, Issue, Page | 243,pp.2090-2098 |
Author and coauthor | Keita Kinjo and Takeshi Ebina |
Details | The purpose of this study is to investigate the effects of consumption externalities with macro reference groups on firms' optimal prices and profits. Our analysis consists of the following three steps: First, using a conjoint analysis data, we construct a hierarchical Bayesian model and derive an individual utility function. Second, we estimate the demand functions when the externalities are present or not. Last, we calculate the profit functions and derive the optimal prices with and without externalities. Applying our method to the book market of Japan, it is found that the optimal price is lower when externality is present than when absent. This is why pricing low and selling a large number of books from an early stage increase the externality effect, yielding the higher profit. |
URL for researchmap | https://researchmap.jp/ebinatakeshi2010/ |