Globalization: Alternative Pricing in a Peak-Load Pricing Model

Abstract

We discuss globalization and the current recession in manufacturing and construction. We present a theoretical model of globalization, of two countries, X and Y, each with open-market systems domestically and internationally. We compare two pricing policies in each country: short-run marginal cost, SRMC, versus prices fixed, P , over the business cycle. We present a proposition and proof. We give a detailed numerical example with graphs for each country. The main result is that P over the business cycle increases the volatility of Q demand over the cycle and increases consumer surplus in both countries under certain conditions. The numerical example shows a drawback of SRMC pricing under demand fluctuations-that the required price in high-demand times to balance accounts becomes extremely high. Consumers are better off with P , paying a small increase over SRMC in the off-peak, 6/7 th of the time, to avoid the extremely large required price of SRMC in the peak times, because it's only 1/7 of the time. The surprising point is that though peak times are infrequent, the prices and quantities at peak times determine which pricing arrangement is better for consumers.

Sistem Pendukung Harga Saham dengan Metode Linear Regression dan Simple Keputusan untuk Prediksi

“…Perkembangan yang sangat pesat mempengaruhi hampir dalam berbagai bidang khususnya pada bidang sistem informasi manajemen. Globalisasi dapat diartikan sebagai proses interaksi dan integrasi antara orangorang, perusahaan, dan pemerintah dari berbagai negara, tanpa adanya lagi batasan-batasan untuk dapat berkembang mengikuti era global [1].…”

“…Simple Moving Average merupakan salah satu indikator yang digunakan untuk menghitung harga, dan memiliki rumus [9], salah satunya dapat diterapkan pada pasar saham yang memiliki rumus seperti persamaan (1) .…”

Manufacturing and Production Economics Numerical Model Old Non-FMS versus Modern FMS Plants

“…See Chan et al[1] 4. Aranoff, Gerald, "Globalization: Alternative Pricing in a Peak-Load Pricing Model," Modern Economy, 8 July 2017[2].…”