the indirect role of households in shaping us residential energy demand patterns abstract about a quarter of us energy demand is for domestic use yet an understanding of the processes determinants and consequences of household energy demand remains elusive conventional energy policy has overwhelmingly focused on improving energy efficiency of the buildings this research applies a non linear methodology and an interdisciplinary approach to household energy demand using data from the us residential sector 2009 residential energy consumption survey this research performs covariance structure analysis to isolate direct and indirect effects of household and housing characteristics on total annual domestic energy use outcomes uncover some of households indirect effects on energy demand which in this research mainly happen through household effects on building characteristics highlighting the indirect role of household choices in shaping residential energy demand patterns to maximize its efficiency in reducing energy demand and ghg emissions this paper suggests that in addition to investing in energy efficient technologies energy policy should incorporate indirect effects of household choices on the configuration of their future homes

reputation with equal discounting in repeated games with strictly conflicting interests we analyze reputation effects in two player repeated games of strictly conflicting interests in such games player 1 has a commitment action such that a best reply to it gives player 1 the highest individually rational payoff and player 2 the minmax payoff players have equal discount factors with positive probability player 1 is a type who chooses the commitment action after every history we show that player 1 s payoff converges to the maximally feasible payoff when the discount factor converges to one this contrasts with failures of reputation effects for equal discount factors that have been demonstrated in the literature journal of economic literature classification number c71

asymmetric promotion effects and brand positioning several studies have shown that promotions of national brands yield more effect than those of store brands e g allenby and rossi 1991 blattberg and wisniewski 1989 however the evolution of price quality data available from consumer reports over the last 15 years seems to reveal a reduction of the quality gap between store brands and national brands while price differences remain substantial simultaneously the share of private label brands has increased progressive grocer 1994 in this context we study whether we can maintain a view of the world where national brands may easily attract consumers from store brands through promotions whereas store brands are relatively ineffective in attracting consumers from national brands by such means we analyze consumer reactions to price discounts in a parsimonious preference model featuring loss aversion and reference dependence along dimensions of price and quality hardie johnson and fader 1993 tversky and kahneman 1991 the key result of our analysis is that given any two brands there is an asymmetric promotion effect in favor of the higher quality higher price brands if and only if the quality gap between the brands is sufficiently large in comparison with the price gap thus the direction of promotion asymmetry is not unconditional it depends uniquely on the value of the ratio of quality and price differences compared to a category specific criterion which we call if the ratio of quality and price differences is larger than this criterion the usual asymmetry prevails if such is not the case the lower quality lower price brands promote more effectively more precisely our model predicts that cross promotion effects depend on two components of brand positioning in the price quality quadrant first we define a variable termed positioning advantage that indicates whether relative to the standards achieved by another brand a given brand is underpriced positive advantage or overpriced negative advantage promotion effectiveness is increasing in this variable second cross promotion effects between two brands depend on their distance in the price quality quadrant this variable impacts promotion effectiveness negatively and symmetrically for any pair of brands positioning advantage and brand distance are orthogonal components of brand positioning irrespective of the degree of correlation between available price and quality levels in the market empirically we investigate the role of brand positioning in explaining cross promotion effects using panel data from the chilled orange juice and peanut butter categories we compute the independent positioning variables positioning advantage and brand distance from readily available data on price and quality positioning after obtaining our estimates of we next measure promotion effectiveness by estimating choice share changes in response to a price discount using a choice model that does not contain any information about quality price ratios finally we test the relation between the two positioning variables and the promotion effectiveness measures the data reveal that in the orange juice category lower quality lower price brands generally promote more effectively than higher quality higher price brands in the peanut butter data the opposite asymmetry holds in both cases inter brand promotion patterns are well explained by the positioning variables an attractive feature of our model is that in addition to the direction of promotion asymmetries it also explains the extent of those asymmetries a further interesting aspect of this approach is that we go beyond a categorization of brands into price tiers for instance lower tier brands in our data may promote more effectively than one national brand but less effectively than another consistent with our theoretical predictions the data presented here seem to confirm that such cases occur because the lower tier brand offers a favorable trade off of price and quality differences compared with one national brand and a less favorable trade off compared with the other the content of this paper is potentially relevant for brand managers or retailers concerned with predicting the impact of their promotions the paper is of particular interest to marketing scientists who study the performance of store brands versus national brands and may also appeal to those who wish to explore the marketing implications of behavioral decision theory finally our investigation does not reject blattberg and wisniewski s 1989 finding shared by allenby and rossi 1991 and hardie johnson and fader 1993 that national brands have a principle advantage in promotion effectiveness rather it formalizes when this principle advantage is overruled by positioning disadvantages of such brands

managing advertising and promotion for long run profitability in recent years manufacturers have become increasingly disposed toward the use of sales promotions often at the cost of advertising yet the long term implications of these changes for brand profitability remain unclear in this paper we seek to offer insights into this important issue we consider the questions of i whether it is more desirable to ad vertise or promote ii whether it is better to use frequent shallow promotions or infrequent deep promotions and iii how changes in regular prices affect sales relative to increases in price promotions additional insights regarding brand equity the relative magnitude of short and long term effects and the decomposition of advertising and promotion elasticities across choice and quantity decisions are obtained to address these points we develop a heteroscedastic varying parameter joint probit choice and regression quantity model our approach allows consumers responses to short term marketing activities to change in response to changes in marketing actions over the long term we also accommodate the possibility of competitive reactions to policy changes of a brand the model is estimated for a consumer packaged good category by using over eight years of panel data the resulting parameters enable us to assess the effects of changes in advertising and promotion policies on sales and profits our results show that in the long term advertising has a positive effect on brand equity while promotions have a negative effect furthermore we find price promotion elasticities to be larger than regular price elasticities in the short term but smaller than regular price elasticities when long term effects are considered consistent with previous research we also find that most of the effect of a price cut is manifested in consumers brand choice decisions in the short term but when long term effects are again considered this result no longer holds last we estimate that the long term effects of promotions on sales are negative overall and about two fifths the magnitude of the positive short term effects finally making reasonable cost and margin assumptions we conduct simulations to assess the relative profit impact of long term changes in pricing advertising or promotion policies our results show regular price decreases to have a generally negative effect on the long term profits of brands advertising to be profitable for two of the brands and increases in price promotions to be uniformly unprofitable

unveiling the heterogeneous effect of energy taxes and income on residential energy consumption abstract the paper investigates the effect of energy taxes in the european union eu across different levels of residential final energy consumption rfec in the period 2005 2016 the analysis is based on quantile panel regression models that directly and indirectly consider energy taxes more precisely the developed models provide a multivariate framework for evaluating their effects and at the same time for validating the existence of the energy environmental kuznets curve ekc across the selected quantiles the results unveil significant heterogeneity in the rfec responses across quantiles specifically in less energy consuming eu countries an increase in energy taxes and energy prices influences stronger rfec and the rebound effect of real income and tertiary education is greater than in their more energy consuming peers moreover in the former the energy ekc hypothesis holds while in the latter its existence is not clear as well as the rebound effect caused by highly educated people consequently eu energy policy aiming at achieving energy and environmental targets has to consider the heterogeneity in rfec since the outcomes might be different for different energy consuming groups of countries

reputation and experimentation in repeated games with two long run players this paper considers reputation effects in a repeated game between two long run players one of whom is relatively patient and may be committed to a fixed strategy which punishes the opponent for increasingly long periods whenever inappropriate actions are taken by following this commitment strategy the more patient player can induce a sufficiently patient opponent to experiment to see whether the commitment strategy is also being followed off the equilibrium path this can guarantee the more patient player in any nash equilibrium a payoff close to the highest feasible payoff consistent with the individual rationality of the other player for an arbitrary degree of patience of the less patient player a weaker result is established the more patient player is guaranteed an average equilibrium payoff close to the static stackelberg payoff this latter result generalizes that of schmidt 1993 who established the same result for the restricted class of games of conflicting interests

reputation and dynamic stackelberg leadership in infinitely repeated games abstract the paper studies a repeated game in which a long run player without discounting faces another long run player with strict discounting the game is perturbed so that there is uncertainty in the patient player s strategy choice she may be a rational player but she may also be one of many irrational types who are committed to various repeated game strategies the rational patient player s equilibrium payoff in this perturbed game is analyzed in particular it is shown that the lower bound on her payoff in the set of extensive form trembling hand perfect equilibria is given by her stackelberg payoff in a dynamics sense journal of economic literature classification numbers c72 d82

untangling the complexity of the direct and indirect determinants of the residential energy consumption in france quantitative analysis using a structural equation modeling approach abstract about a quarter of french energy demand is for residential use this study mobilises a multidisciplinary approach and a non linear modeling strategy to examine the total direct and indirect effects of households and housing units in designing french energy consumption based on micro level data from the new french 2012 phebus survey this research implements a structural equation model to tease out the effects of both dwelling characteristics household attributes climate and behaviours on the domestic energy use findings confirm that the direct effect of household related attributes on domestic energy demand is notably lower than the corresponding effect from the dwelling attributes nevertheless considering for the indirect effect of household factors on energy use across housing choices the total impact of household related attributes on the french domestic energy consumption is just slightly lower than that of dwelling characteristics therefore to highlight the spectrum of residential energy use this research calls to incorporate both direct and indirect effects of household attributes and choices this study suggests several key insights on how to incorporate housing policy into residential energy policy and reduce energy related greenhouse gas emissions

analysis of the residential location choice and household energy consumption behavior by incorporating multiple self selection effects abstract it is expected that the residential location choice and household energy consumption behavior might correlate with each other besides due to the existence of self selection effects the observed inter relationship between them might be the spurious result of the fact that some unobserved variables are causing both these concerns motivate us to 1 consider residential location choice and household energy consumption behavior for both in home appliances and out of home cars simultaneously and 2 explicitly control self selection effects so as to capture a relatively true effect of land use policy on household energy consumption behavior an integrated model termed as joint mixed multinomial logit multiple discrete continuous extreme value model is presented here to identify the sensitivity of household energy consumption to land use policy by considering multiple self selection effects the model results indicate that land use policy do play a great role in changing beijing residents energy consumption pattern while the self selection effects cannot be ignored when evaluating the effect of land use policy based on the policy scenario design it is found that increasing recreational facilities and bus lines in the neighborhood can greatly promote household s energy saving behavior additionally the importance of soft policy and package policy is also emphasized in the context of beijing

energy consumption and urban sprawl evidence for the spanish case residential electricity consumption constitutes one of the largest sources of spanish final energy demand to improve electricity savings policies oriented towards efficiency in residential consumption such as replacement of appliances or the construction of nearly zero energy buildings have been suggested and implemented however the potential relevance of urban structural characteristics such as the increase in detached houses in sprawling residential areas has not often been considered the aim of this research is to analyse the relevance of living in a detached house located in a dispersed urban area to household electricity consumption thus an electricity consumption model is estimated by using household socioeconomic variables and including urban characteristics as its determinants such us the level of urban agglomeration or whether families live in detached sprawling homes the model is estimated by using 2014 household budget survey hbs microdata and applying ordinary least squares ols as well as quantile regressions qr as econometric procedures endogeneity problems are corrected by means of instrumental variables the results confirm that living in a detached house significantly increases electricity consumption whereas urban agglomerations have the opposite effect sprawl is occurring rapidly in spanish cities and according to our results it could constitute a relevant source of increase in electricity demand in the following years

from frugal jane to wasteful john a quantile regression analysis of swiss households electricity demand abstract in this article we investigate the heterogeneity in the responsiveness of swiss household electricity demand to changes in prices and income we focus on segments of consumers with different intensities of electricity consumption by using a panel quantile regression approach this estimation strategy is applied to a rich micro level longitudinal data set of 3880 observations from more than 1400 households matched with a unique price data set extracted from the swiss electricity regulator s online sources while the findings show an inelastic electricity demand across all groups an interesting pattern of variation emerges between lower and upper quantiles of electricity demand respectively frugal and intensive users results show that households in the first conditional quartile and at the median react significantly to changes in prices while those at the lowest quantile and upper quantiles exhibit insignificant price elasticities the main policy implications of this work concern the design of price based measures for reducing electricity consumption in the residential sector and the possibility of accounting for individual responses in tailoring policies for specific consumer segments

technology invention and diffusion in residential energy consumption a stochastic frontier approach traditional large appliances absorb a large share of residential electricity consumption and represent important targets of energy policy strategies aimed at achieving energy security despite being characterized by rather mature technologies this group of appliances still offers large potential in terms of efficiency gains due to their pervasive diffusion in this paper we analyse the electricity consumption of a set of four traditional white goods in a panel of ten eu countries observed over 21 years 1990 2010 with the aim of disentangling the amount of technical efficiency from the overall energy saving the technical efficiency trend is modelled through a set of technology components representing both the invention and adoption process by the means of specific patents weighted by production and bilateral import flows which allows to overcome the rigid stochastic frontier framework in modelling the effect of technical change our results show that the derived energy demand and inefficiency trends are both related to changes in the amount of available technology embodied in energy efficient appliances the effect is significant both in its domestic and international components and suggests an active role of innovation and trade policies for achieving efficiency targets which directly impact the amount of electricity consumed by households

reputation and perfection in repeated common interest games abstract we consider a wide class of repeated common interest games perturbed with one sided incomplete information one player the informed player might be a commitment type playing the pareto dominant action as discounting which is assumed to be symmetric and the prior probability of the commitment type go to zero it is shown that the informed player can be held close to her minmax payoff even when perfection is imposed on the equilibrium journal of economic literature classification numbers c73 d83

asymmetric and neighborhood cross price effects some empirical generalizations this paper provides some empirical generalizations regarding how the relative prices of competing brands affect the cross price effects among them particular focus is on the asymmetric price effect and the neighborhood price effect the asymmetric price effect states that a price promotion by a higher priced brand affects the market share of a lower priced brand more so than the reverse the neighborhood price effect states that brands that are closer to each other in price have larger cross price effects than brands that are priced farther apart the main objective of this paper is to test if these two effects are generalizable across product categories and to assess which of these two effects is stronger while the neighborhood price effect has not been rigorously tested in past research the asymmetric price effect has been validated by several researchers however these tests of asymmetric price effect have predominantly used elasticity as the measure of cross price effect the cross price elasticity measures the percentage change in market share or sales of a brand for 1 change in price of a competing brand we show that asymmetries in cross price elasticities tend to favor the higher priced brand simply because of scaling effects due to considering percentage changes furthermore several researchers have used logit models to infer asymmetric patterns we also show that inferring asymmetries from conventional logit models is incorrect to account for potential scaling effects we consider the absolute cross price effect defined as the change in market share percentage points of a target brand when a competing brand s price changes by one percent of the product category price the advantage of this measure is that it is dimensionless hence comparable across categories and it avoids scaling effects we show that in the logit model with arbitrary heterogeneity in brand preferences and price sensitivities the absolute cross price effect is symmetric we develop an econometric model for simultaneously estimating the asymmetric and neighborhood price effects and assess their relative strengths we also estimate two alternate models that address the following questions i if i were managing the ith highest priced brand which brand do i impact the most by discounting and which brand hurts me the most through price discounts ii who hurts whom in national brand vs store brand competition based on a meta analysis of 1 060 cross price effects on 280 brands from 19 different grocery product categories we provide the following empirical generalizations 1 the asymmetric price effect holds with cross price elasticities but tends to disappear with absolute cross price effects 2 the neighborhood price effect holds with both cross price elasticities and absolute cross price effects and is significantly stronger than the asymmetric price effect on both measures of cross price effects 3 a brand is affected the most by discounts of its immediately higher priced brand followed closely by discounts of its immediately lower priced brand 4 national brands impact store brands more so than the reverse when the cross effect is measured in elasticities but the asymmetric effect does not hold with absolute effects store brands hurt and are in turn hurt the most by the lower priced national brands that are adjacent in price to the store brands 5 cross price effects are greater when there are fewer competing brands in the product category and among brands in nonfood household products than among brands in food products the implications of these findings are discussed

reputation in long run relationships we model a long run relationship as an infinitely repeated game played by two equally patient agents in each period the agents play an extensive form stage game of perfect information with either locally non conflicting interests or strictly conflicting interests there is incomplete information about the type of player 1 while player 2 s type is commonly known we show that a sufficiently patient player 1 can leverage player 2 s uncertainty about his type to secure his highest pay off compatible with player 2 s individual rationality in any perfect bayesian equilibrium of the repeated game copyright 2012 oxford university press

price elasticity block tariffs and equity of natural gas demand in china investigation based on household level survey data abstract on the basis of a newly established database from the chinese residential energy consumption survey this paper estimates the price elasticity of natural gas demand for the households and investigates the factors that affect residential natural gas consumption in china to address the endogeneity problems the non residential natural gas price has been adopted as the instrumental variable for residential natural gas price results demonstrate that the natural gas demand of chinese households respond significantly to price change with an overall price elasticity coefficient of 0 898 in the meanwhile 1 increase in family members would cause 0 159 rise in natural gas demand and household in the south consumes 28 8 more natural gas than that in the north recognizing the heterogeneity of residential natural gas price elasticity for different households quantile regression technique has further been applied to analyze the distributional effect of natural gas consumption the simulation suggests that the gini coefficient drops from 0 49 to 0 40 after introducing an increasing block tariff scheme to replace the original flat tariff system confirming a price reform has potential to improve the energy equity situation by reshaping the energy consumption pattern

is 75 of the sales promotion bump due to brand switching no only 33 is abstract several researchers have decomposed sales promotion elasticities based on household scanner panel data a key result is that the majority of the sales promotion elasticity approximately 74 on average is attributed to secondary demand effects brand switching and the remainder is attributed to primary demand effects timing acceleration and quantity increases the authors demonstrate that this result does not imply that if a brand gains 100 units in sales during a promotion the other brands in the category lose 74 units the authors offer a complementary decomposition measure based on unit sales the measure shows the ratio of the current cross brand unit sales loss to the current own brand unit sales gain during promotion the authors report empirical results for this measure they also derive analytical expressions that transform the elasticity decomposition into a decomposition of unit sales effects these expressions show the nature of the difference between the two decompositions to ga

influencing factors on electricity demand in chinese nonmetallic mineral products industry a quantile perspective abstract chinese nonmetallic mineral products industry is one of the largest electricity consumer in china and has a large impact on overall electricity consumption in china this paper examines the impact of economic variables on the demand for electricity in chinese nonmetallic mineral products industry where economic growth sectoral value added per worker sectoral r d intensity and energy price were utilized to analyze sectoral electricity consumption with an application of quantile model the paper s estimates unveiled the varying effects of economic variables across the spectrum of sectoral electricity consumption where the coefficient of economic growth was positive and significant across all quantiles while sectoral value added per worker had both positive and negative significant coefficients an increase in income level and sectoral value added per worker will increase the electricity consumed by the industry however the latter will also enhance a decreasing trend in few regions across china and did not influence high energy efficiency but rather enhanced the production of additional outputs while sectoral r d intensity and energy price will ensure a substantial decrease in sectoral electricity consumption with the latter having a greater impact increase in investment for sectoral r d intensity will boost technological advancement and is recommended as a cornerstone to ensuring decline in sectoral energy consumption that will buttress sectoral value added per worker coupled with a robust energy price

the dynamic effect of discounting on sales empirical analysis and normative pricing implications baseline sales measure what retail sales would be in the absence of a promotion abraham and lodish 1993 and models that measure baseline sales are widely used by managers to assess the profitability of promotions bucklin and gupta 1999 this issue estimates of baseline sales and promotional response are typically independent of past promotional activity even though there is evidence to suggest that increased discounting reduces off promotion sales and increases the percentage of purchases made on deal e g krishna 1994 as a result models that do not consider dynamic promotional effects can mislead managers to overpromote given the widespread use of static models to evaluate the efficacy of promotions it is particularly desirable to calibrate a dynamic brand sales model and use it to establish an optimal course of action accordingly we develop a descriptive dynamic brand sales model and use it to determine normative price promotion strategies our descriptive approach consists of estimating a varying parameter sales response model letting model parameters vary with past discounting activity accommodates the possibility that market response changes with firms discounting policies in the normative model we use the estimates obtained in the descriptive model to determine optimal retailer and manufacturer prices over time the results of the descriptive model indicate that promotions have positive contemporaneous effects on sales accompanied by negative future effects on baseline sales the results of the normative model suggest that the higher share brands in our data tend to overpromote while the lower share brands do not promote frequently enough we project that the use of our model could improve manufacturers profits by as much as 7 to 31 more generally the normative results indicate that i if deals become more effective in the current period i e if consumers are more price sensitive promotions should be used more frequently and ii as the negative dynamic effect of discounts on sales increases the optimal level of discounting should go down without our approach it would be difficult to make this trade off exact finally we demonstrate that these dynamic effects provide another perspective to the marketing literature regarding the existence of promotions

price promotions limiting competitive encroachment in this paper we explore equilibrium pricing strategies in an infinite horizon repeated game for an oligopoly we model the interactions between three firms in a market of switchers and loyals our analysis shows that if there are sufficiently large number of switchers in the market the demand parameter is within an acceptable range and the firms have a sufficiently low discount rate alternating promotions between national firms can be an outcome of a perfect nash equilibrium between competing firms this equilibrium results in an implicit collusion between national firms and therefore suggests that price promotions can be interpreted as a long run strategy pursued by national firms to defend their market shares from possible encroachments of a third firm in this way we attempt to provide an explanation for the patterns of promotion observed in some industries and in particular the beverage industry

heterogeneity in german residential electricity consumption a quantile regression approach abstract in the absence of sufficient coverage of metering data on the electricity consumption of individual devices this paper estimates the contribution of individual appliances to overall household electricity consumption drawing on the most recent wave of the german residential energy consumption survey grecs moving beyond the standard focus of estimating mean effects we combine the conditional demand approach with quantile regression methods to capture the heterogeneity in electricity consumption rates of individual appliances our results indicate substantial differences in these rates as well as the end use shares across households originating from the opposite tails of the electricity consumption distribution this outcome highlights the added value of applying quantile regression methods in estimating consumption rates of electric appliances and indicates some scope for realizing conservation potentials

the folk theorem with imperfect public information the authors study repeated games in which players observe a public outcome that imperfectly signals the actions played they provide conditions guaranteeing that any feasible individually rational payoff vector of the stage game can arise as a perfect equilibrium of the repeated game with sufficiently little discounting the central condition requires that there exist action profiles with the property that for any two players no two deviations one by either player give rise to the same probability distribution over public outcomes the results apply to principal agent partnership oligopoly and mechanism design models and to one shot games with transferable utilities copyright 1994 by the econometric society

maintaining a reputation against a long lived opponent we consider a game between a patient player 1 and a nonmyopic but less patient opponent player 2 as usual in reputation models we suppose that the patient player s type is private information and that he may be a commitment type who is locked into playing a particular strategy we investigate the extent to which an uncommitted or normal type of patient player can exploit his less patient opponent s uncertainty to maintain a reputation for playing like a commitment type

price induced patterns of competition this research focuses on how price changes influence the observed pattern of brand competition the paper begins with a basic utility model formulation and examines the implications of three major classes of preference distributions on the expected patterns of competition a price tier model is proposed to operationalize the theory and to allow predictive testing the price tier model is estimated on 28 brands across four product categories the results show a specific asymmetric pattern of price competition higher price higher quality brands steal share from other brands in the same price quality tier as well as from brands in the tier below however lower price lower quality brands take sales from their own tier and the tier below brands but do not steal significant share from the tiers above the results are consistent with a bimodal preference distribution with the regular price indifference point being located toward the lower quality end of the preference distribution for the categories analyzed

maintaining a reputation when strategies are imperfectly observed this paper studies reputation effects in games with a single long run player whose choice of stage game strategy is imperfectly observed by his opponents we obtain lower and upper bounds on the long run player s payoff in any nash equilibrium of the game if the long run player s stage game strategy is statistically identified by the observed outcomes then for generic payoffs the upper and lower bounds both converge as the discount factor tends to 1 to the long run player s stackelberg payoff which is the most he could obtain by publicly committing himself to any strategy

residential energy use abstract the energy information administration recently published data they collected from the national interim energy consumption survey niecs niecs includes detailed information on 4081 individual households demographic characteristics energy related features of the structure heating equipment and appliances therein recent conservation actions taken by the household and fuel consumption and costs for the april 1978 march 1979 one year period this data set provides a new and valuable resource for analysis we summarized and analysed the niecs data on household energy consumption total energy use electricity use and use of the primary space heating fuel the regression equations constructed explain roughly half the variation in energy use among households these equations contain 10 or fewer independent variables the most important of which are fuel price year house was built floor area and heating degree days

moderating factors of immediate gross and net cross brand effects of price promotions this article examines cross price promotional effects in a dynamic context among other things we investigate whether previously established findings hold when consumer and competitive dynamics are taken into account five main influential effects asymmetric price effect neighborhood price effect asymmetric share effect neighborhood share effect and private label versus national brand asymmetry appear jointly in the second layer of a pooled hb vec varx model together with brand and category specific variables this study tests the relative importance of these key factors across three scenarios with no market dynamics when only consumer dynamics are considered and when competitive reactions are also taken into account the results confirm all five influential effects even if they are jointly estimated and consumer and competitive dynamics are taken into account national brand private label asymmetry has the strongest influence on the cross price promotional effects and becomes significantly stronger when consumer and competitive dynamics are taken into account dynamic consumer responses and competitive reactions both affect cross brand price elasticities and contrary to expectations competitive reactions accumulate rather than diminish cross price elasticities preemptive switching does occur i e a brand s promotion in period t hurts a competitor s sales in subsequent periods our findings are based on an extensive data set to attain generalizable results we analyze 33 categories in five stores that is 165 store category combinations

a bibliometric review energy consumption and greenhouse gas emissions in the residential sector residential sector has been one key sector for reducing its greenhouse gas emissions due to its significant contribution to global warming researchers in different countries have studied household energy consumption patterns and greenhouse gas emissions in order to promote low carbon lifestyles however few review papers have been published in this regard leading to a lack of systematic understanding on the related research achievements hence by using a bibliometric approach this paper aims to review the existing literature and examine the evolution of such a field so that the research trends can be uncovered including popular research methods citation analysis is performed to assess the influence of most productive journals countries territories and authors network analysis is also conducted to evaluate the relationship among different countries territories authors and keywords research outcomes of this paper present a comprehensive research picture on residential energy consumption and corresponding greenhouse gas emissions ree related papers published from 1997 to 2016 the most productive journals countries territories authors are also analyzed based on citation analysis and network analysis in addition results also revealed that behavioral analysis input output analysis life cycle assessment and cost benefit analysis are the most commonly used methods in this field results obtained from this study can provide valuable information for researchers interested in the ree related field

understanding store brand purchase behavior across categories this paper investigates whether the tendency to buy store brand is category specific or an enduring consumer trait we develop a multicategory brand choice model with a factor analytic structure on the covariance matrix of the coefficients the methodology allows us to elicit the basic latent tendency for a household to buy store brands while controlling for other causes such as price sensitivity the model is applied to a set of ten food and nonfood product categories we find strong evidence of correlations in household preferences for store brands across categories using a two dimensional factor structure we find that one of the factors explains a substantial amount of variation in store brand preference while the other factor explains price sensitivity consistently across categories the presence of these factors in all categories indicates that there are unobservable household level traits that are non category specific i e stable across product categories using data from five holdout categories we find that household estimates of these latent factors are very useful in predicting demand for store brands in new categories other potential applications for store managers are discussed

a hierarchical bayes error correction model to explain dynamic effects of price changes abstract the authors put forth a sales response model to explain the differences in immediate and dynamic effects of promotional prices and regular prices on sales the model consists of a vector autoregression that is rewritten in error correction format which allows the authors to disentangle the immediate effects from the dynamic effects in a second level of the model the immediate price elasticities the cumulative promotional price elasticity and the long term regular price elasticity are correlated with various brand specific and category specific characteristics the model is applied to seven years of data on weekly sales of 100 different brands in 25 product categories the authors find many significant moderating effects on the elasticity of price promotions brands in categories that are characterized by high price differentiation and that constitute a lower share of budget are less sensitive to price discounts deep price discounts increase the immediate price sensitivity of customers the

reputation and equilibrium characterization in repeated games with conflicting interests a two person game is of conflicting interests if the strategy to which player one would most like to commit herself holds player two down to his minimax payoff suppose there is a positive prior probability that player one is a commitme nt type who will always play this strategy then player one will get a t least her commitment payoff in any nash equilibrium of the repeated game if her discount factor approaches one this result is robust against further perturbations of the informational structure and in striking contrast to the message of the folk theorem for games with incomplete information copyright 1993 by the econometric society

the asymmetric share effect an empirical generalization on cross price effects abstract prior empirical literature states that asymmetry in cross price effect favors the high share brand that is when high share brands discount they have a greater impact on low share brands than the reverse this conclusion is based on consideration of cross price elasticities the authors point out that focusing on cross price elasticities for assessing asymmetry is inappropriate for determining the incremental profitability from price promotions instead asymmetries should be investigated in absolute cross price effects that is change in market share of a competing brand for a unit price change of the focal brand the authors theoretically and empirically demonstrate that asymmetry reverses when absolute cross price effect is considered that is the absolute cross price effect of a price reduction of a low share brand on the market share or sales of a high share brand is greater than the reverse the authors discuss the implications of the findings and future research directions

how dynamic consumer response competitor response company support and company inertia shape long term marketing effectiveness long term marketing effectiveness is a high priority research topic for managers and emerges from the complex interplay among dynamic reactions of several market players this paper introduces restricted policy simulations to distinguish four dynamic forces consumer response competitor response company inertia and company support a rich marketing dataset allows the analysis of price display feature advertising and product line extensions the first finding is that consumer response differs significantly from the net effectiveness of product line extensions price feature and advertising in particular net sales effects are up to five times stronger and longer lasting than consumer response second this difference is not due to competitor response but to company action for tactical actions price and feature it takes the form of inertia as promotions last for several weeks for strategic actions advertising and product line extensions support by other marketing instruments greatly enhances dynamic consumer response this company action negates the postpromotion dip in consumer response and enhances the long term sales benefits of product line extensions feature and advertising therefore managers are urged to evaluate company decision rules for inertia and support when assessing long term marketing effectiveness

a quantile approach to assess the effectiveness of the subsidy policy for energy efficient home appliances evidence from rizhao china abstract a one year subsidy program for energy efficient home appliances has been implemented in china we construct a dataset consisting of participant and non participant households in both urban and rural areas of rizhao city by applying a quantile regression and counterfactual analysis this study disentangles the impact of this subsidy program and inherent household attributes on per capita residential electricity consumption first contrary to the mean regression the elasticity of electricity consumption to household s income age education and energy saving awareness varies markedly across the electricity consumption distribution and shows discrepancy between urban and rural areas second while inherent household attributes are identified as a primary determinant to the changes in residential electricity consumption the effect induced by the subsidy incentive is more significant at the middle of the electricity consumption distribution than at the tails third there are significant rebound effects that lead to overall increase in household electricity consumption our results suggest that the disparity between urban and rural regions and targeted consumer behavior changes should be taken into account to ensure the effectiveness of a future energy efficient subsidy program

is more information always better a case in credit markets this paper studies the impact of behavioral and non behavioral information contained in consumer credit reports on the credit market a repeated game of incomplete information between a borrower and a sequence of lenders is considered lenders beliefs regarding the borrower s type depend on the borrower s historical loan performance and other informative signals it is established that for low beliefs strategic defaults occur in equilibrium as the borrower defaults on his loans despite having the ability to repay them further as the ancillary signals become increasingly informative of the borrower s type the range of beliefs over which strategic defaults occur expands this increase in strategic defaults highlights an unintended negative effect of allowing informative signals to influence beliefs on the upside the informative signals allow lenders to learn the borrower s type more quickly

the long term effects of price promotions on category incidence brand choice and purchase quantity abstract to what extent do price promotions have a long term effect on the components of brand sales namely category incidence brand choice and purchase quantity the authors answer this question by using persistence modeling on weekly sales data of a perishable and a storable product derived from a scanner panel their analysis reveals first that permanent promotion effects are virtually absent for each sales component next the authors develop and apply an impulse response approach to estimate the promotional adjustment period and the total dynamic effects of a price promotion specifically they calculate the long term equivalent of gupta s 1988 14 84 2 breakdown of promotional effects because of positive adjustment effects for incidence but negative adjustment effects for choice the authors find a reversal of the importance of category incidence and brand choice 66 11 23 for the storable product and 58 39 3 for the perishable product the authors discuss the implications of the findings an

building and household x factors and energy consumption at the residential sector a structural equation analysis of the effects of household and building characteristics on the annual energy consumption of us residential buildings abstract energy use in residential buildings is one of the major sources of greenhouse gas emission production from cities using microdata from the 2009 residential energy consumption survey recs this study applies structural equation modeling to analyze the direct indirect and total impacts of household and building characteristics on residential energy consumption results demonstrate that the direct impact of household characteristics on residential energy consumption is significantly smaller than the corresponding impact from the buildings however accounting for the indirect impact of household characteristics on energy consumption through choice of the housing unit characteristics the total impact of households on energy consumption is just slightly smaller than that of buildings outcomes of this paper call for smart policies to incorporate housing choice processes in managing residential energy consumption

understanding the spectrum of domestic energy consumption empirical evidence from france abstract this article focuses on residential energy consumption in france using a bottom up statistical approach this analysis explores determinants of household energy consumption using data from the most recent national housing survey the primary objective is to tease out the impacts of various factors on the domestic energy consumption spectrum across different population groups the aim of this approach is to neutralize conventional factors affecting energy consumption age of house total area etc to finely analyze the impact of other determinants including those relating to household characteristics and other control variables first we define homogeneous consumption groups of households by using multivariate statistical techniques namely the multiple correspondence analysis and ascending hierarchical classification second we use standard ols regression to explore the effects of various factors on domestic energy consumption among homogeneous groups of households this multivariate analysis exercise has led us to identify four main consumption typologies results revealed that energy prices were the most important factors determining domestic energy consumption in addition this study showed that occupant characteristics significantly affect domestic energy use results of this research call for combine all efforts multiple strategies and smart policies to incorporate household and consumption behaviors in managing domestic energy consumption

quality perceptions and asymmetric switching between brands rotating indifference curves are used to induce an income effect that favors superior brands at the expense of inferior brands in a discrete choice model when calibrated on scanner panel data the model yields an objective measure of brand quality which is related to the rate of rotation the model also leads to asymmetric responses to price promotions where switching up to high quality brands is more likely than switching down the model is capable of nesting the standard logit model and is similar to a nested logit model when there exists clusters of brands of like quality the model is used to explore a product line pricing decision where profits are maximized subject to the constraint that consumer utility is maintained

models of technology diffusion abstract the literature on new technology diffusion is vast and it spills over many conventional disciplinary boundaries this paper surveys the literature by focusing on alternative explanations of the dominant stylized fact that the usage of new technologies over time typically follows an s curve the most commonly found model which is used to account for this model is the so called epidemic model which builds on the premise that what limits the speed of usage is the lack of information available about the new technology how to use it and what it does the leading alternate model is often called the probit model which follows from the premise that different firms with different goals and abilities are likely to want to adopt the new technology at different times in this model diffusion occurs as firms of different types gradually adopt it there are actually many ways to generate an s curve and the third class of models which we examine are models of density dependence popularized by population ecologists in these models the twin forces of legitimation and competition help to establish new technologies and then ultimately limit their take up finally we look at models in which the initial choice between different variants of the new technology affect the subsequent diffusion speed of the chosen technology such models often rely on information cascades which drive herd like adoption behaviour when a particular variant is finally selected

the impact of a product harm crisis on marketing effectiveness product harm crises are among a firm s worst nightmares a firm may experience i a loss in baseline sales ii a reduced own effectiveness for its marketing instruments iii an increased cross sensitivity to rival firms marketing mix activities and iv a decreased cross impact of its marketing mix instruments on the sales of competing unaffected brands we find that this quadruple jeopardy materialized in a case study of an australian product harm crisis faced by kraft peanut butter we arrive at this conclusion by using a time varying error correction model that quantifies the consequences of this crisis on base sales and on own and cross brand short and long term effectiveness the proposed modeling approach allows managers to make more informed decisions on how to regain the brands pre crisis performance levels

commercial use of upc scanner data industry and academic perspectives the authors report the findings from an exploratory investigation of the use of upc scanner data in the consumer packaged goods industry in the u s the study examines the practitioner community s view of the use of scanner data and compares these views with academic research forty one executives from ten data suppliers packaged goods manufacturers and consulting firms participated in wide ranging in person interviews conducted by the authors the interviews sought to uncover key questions practitioners would like to answer with scanner data how scanner data is applied to these questions and the industry s perspective regarding the success that the use of scanner data has had in each area the authors then compare and contrast practitioners views regarding the resolution of each issue with academic research this produces a 2 2 classification of each question as resolved or unresolved from the perspectives of industry and academia along the diagonal of the 2 2 issues viewed as unresolved by both groups are important topics for future research issues deemed resolved by both groups are correspondingly of lower priority in the off diagonal cells industry and academics disagree these topics should be given priority for discussion information exchange and possible further research practitioners reported that scanner data analysis has had the most success and been most widely adopted for decision making in consumer promotions i e coupons trade promotions and pricing for example logit and regression models applied to scanner data have revealed very low average consumer response to coupons which has directly led to reduced couponing activity managers also reported high levels of comfort with and impact from analyses of trade promotions and price elasticities while industry views most of the issues in these areas to be resolved academic research raises concerns about a number of practices in common commercial use these include price threshold analysis and trade promotion evaluation using baseline and incremental sales in product strategy advertising and distribution management practitioners reported that the use of scanner data has had more limited development success and impact in the case of new product decisions scanner data use has been slow to develop due to the inherent limitations of historicaldata for these decisions and a heavy reliance on traditional primary research methods in advertising scanner data is widely analyzed with models but confusion among practitioners is very high due to controversies about methods e g what level of data aggregation is best and conflicting results in distribution and retail management scanner data use has tremendous potential but a mixed track record to date thus practitioners view the use of scanner data as unresolved for most issues in product strategy advertising and distribution this view is largely though not entirely consistent with academic research which has only begun to address many of the key questions raised by practitioners in light of the large number of unresolved issues and mixed record of scanner data use to date the authors offer aseries of specific recommendations for immediate and long term research priorities that are likely to have the greatest impact on commercial utilization of upc scanner data topics of immediate priority include price thresholds and gaps baseline and incremental sales base price elasticity competitive reactions measurement of advertising effects management of brand equity rationalization of product assortments and category management long term priorities include a greater emphasis on profitability versus sales or market share developing prescriptive models versus descriptive models and the need for industry standards

the determinants of domestic energy consumption in france energy modes habitat households and life cycles this article explores the question of domestic energy consumption it concentrates on the example of france and using micro data from the 2002 and 2006 national housing surveys conducted by insee national institute of statistics and economic studies the empirical analysis is divided into three stages the first verifies the correspondences between modes of energy consumption household profiles and housing profiles in order to classify consumer mode types the second looks at the stabilities and variations over time of each of these types the last seeks to identify the causes of these changes the findings reveal sharp divergences between the factors affecting global consumption consumption per m2 and per person these variations can be explained by the impact of the demographic characteristics of households residential mobility and life cycles therefore these findings demonstrate the flexibility over time of domestic energy consumption which is still too often approached as a static variable solely associated with building characteristics they need to be taken further through a longitudinal and multidisciplinary approach to energy consumption patterns

reputation and equilibrium selection in games with a patient player a single long run player plays a simultaneous move stage game against a sequence of opponents who play only once but observe all previous play let the stackelberg strategy be the pure strategy to which the long run player would most like to commit himself if there is positive prior probability that the long run player will always play the stackelberg strategy then his payoff in any nash equilibrium exceeds a bound that converges to the stackelberg payoff as his discount factor approaches one when the stage game is not simultaneous move this result must be modified to account for the possibility that distinct strategies of the long run player are observationally equivalent

pricing and promotions in asymmetric duopolies this paper develops a modeling framework for making promotions decisions in contrast to some of the prior research the framework explicitly models promotions its central feature is the view of promotions competition as a multistage game in which regular prices are chosen first followed by the choice of promotion depths and frequencies it is used to illustrate the nature of competition between a national brand and private label in equilibrium the national brand promotes to ensure that the private label does not try to attract consumers away from the national brand moreover the private label does not promote this equilibrium is also contrasted with varian s framework used by other researchers in which mixed strategy equilibrium prices are interpreted as promotions

reputation in the long run with imperfect monitoring abstract we study an infinitely repeated game where two players with equal discount factors play a simultaneous move stage game player one monitors the stage game actions of player two imperfectly while player two monitors the pure stage game actions of player one perfectly player one s type is private information and he may be a commitment type drawn from a countable set of commitment types who is locked into playing a particular strategy under a full support assumption on the monitoring structure we prove a reputation result for stage games with a strong stackelberg action if there is positive probability that player one is a particular type whose commitment payoff is equal to player one s highest payoff consistent with the players individual rationality then a patient player one secures this type s commitment payoff in any bayes nash equilibrium of the repeated game in contrast if the type s commitment payoff is strictly less than player one s highest payoff consistent with the players individual rationality then the worst perfect bayesian equilibrium payoff for a patient player one is equal to his minimax payoff

an analysis of monthly household energy consumption among single family residences in texas 2010 demographic socioeconomic and housing characteristics influence variation in household energy consumption by combining household level utility public and proprietary data we examine predictors of household energy consumption in a texas urban area using quantile regression this analysis assesses the relationship between energy consumption and predictors at the middle and both ends of the distribution 10th and 90th percentiles results indicate potential opportunities to lower consumption among the highest energy consuming households including those with pools with non central cooling with people working from home those built on pier post foundation and those that are renter occupied these findings suggest significant opportunities to reduce consumption and demand as in the study area almost 10 of housing units are renter occupied 18 percent are without central cooling and 7 have pools capturing a significant portion of these homes for retrofit conservation efforts through marketing has potential to produce substantial results producing a better understanding of determinants of household energy consumption using the methods presented has potential to assist development and implementation of strategies to reduce consumption and increase efficiency

the decomposition of promotional response an empirical generalization price promotions are used extensively in marketing for one simple reason consumers respond the sales increase for a brand on promotion could be due to consumers accelerating their purchases i e buying earlier than usual and or buying more than usual and or consumers switching their choice from other brands purchase acceleration and brand switching relate to the primary demand and secondary demand effects of a promotion gupta 1988 captures these effects in a single model and decomposes a brand s total price elasticity into these components he reports for the coffee product category that the main impact of a price promotion is on brand choice 84 and that there is a smaller impact on purchase incidence 14 and stockpiling 2 in other words the majority of the effect of a promotion is at the secondary level 84 and there is a relatively small primary demand effect 16 this paper reports the decomposition of total price elasticity for 173 brands across 13 different product categories on average we find that 25 of the elasticity is due to primary demand expansion i e purchase acceleration and 75 to secondary demand effects or brand switching thus while gupta s finding that the majority of promotional response stems from brand switching is supported the average magnitude of the effect appears to be smaller than first thought more important there is ample evidence that promotions have a significant primary demand effect the relative emphasis on purchase acceleration and brand switching varies systematically across categories and the second goal of the paper is to explain this variation as a function of exogeneous covariates in doing this we recognize that promotional response is the consumer s reaction to a price promotion and therefore develop a framework for understanding variability in promotional response that is based on the consumer s perspective of the benefits from a price promotion these benefits are posited to be a function of i category specific factors ii brand specific factors and iii consumer characteristics the framework is formalized as a generalized least squares meta analysis in which the brand s price elasticity is the dependent variable several interesting results emerge from this analysis category specific factors brand specific factors and consumer demographics explain a significant amount of the variance in promotional response for a brand at both the primary and secondary demand levels category specific factors have greater influence on variability in promotional response and its decomposition than do brand specific factors there are several instances where exogenous variables do not affect total elasticities yet significantly affect individual components of total elasticity in fact the lack of a significant relationship between the variables and total elasticity is often due to offsetting effects within two or more of the three behavioral components of elasticity this is particularly true for brand specific factors which typically have no effect on total elasticity yet have important effects on the individual behaviors there is some evidence to suggest that not all promotion related increases in primary demand are due to forward buying in some cases promotions appear to increase consumption we use these results to illustrate how category and brand specific factors work to drive primary and secondary demand elasticities in different directions in short this paper offers an empirical generalization of a key finding on promotional response how elasticities decompose across brand choice purchase incidence and stockpiling and new insights into factors that explain variance in promotional response these findings are likely to be of interest to researchers who are concerned with theory development and the generalizability of marketing phenomena and to managers who plan promotion campaigns

lifestyle factors in u s residential electricity consumption abstract a multivariate statistical approach to lifestyle analysis of residential electricity consumption is described and illustrated factor analysis of selected variables from the 2005 u s residential energy consumption survey recs identified five lifestyle factors reflecting social and behavioral patterns associated with air conditioning laundry usage personal computer usage climate zone of residence and tv use these factors were also estimated for 2001 recs data multiple regression analysis using the lifestyle factors yields solutions accounting for approximately 40 of the variance in electricity consumption for both years by adding the household and market characteristics of income local electricity price and access to natural gas variance accounted for is increased to approximately 54 income contributed 1 unique variance to the models indicating that lifestyle factors reflecting social and behavioral patterns better account for consumption differences than income geographic segmentation of factor scores shows distinct clusters of consumption and lifestyle factors particularly in suburban locations the implications for tailored policy and planning interventions are discussed in relation to lifestyle issues

game theory and empirical generalizations concerning competitive promotions this paper offers the generalization that competitive promotions are mixed strategies first an empirical regularity is established that promotions are independent across competitors this regularity is then elaborated on in the context of a promotion game the promotion game is linked to observable outcomes and a classification of possible situations is developed in particular the classification includes the prisoners dilemma battle of the sexes and marketing models of promotion competition the evidence for the generalization comes from a variety of product markets spanning trade promotions retail price reductions and retail promotions such as advertised specials the product markets include coffee baby diapers toilet tissue saltines dishwashing fluid ketchup and detergents among others the data in some cases were from cooperating grocery chains and in others from iri scanner panels the evidence from extant research and from new analyses is presented each situation is identified as be

understanding the spectrum of residential energy consumption a quantile regression approach abstract residential energy consumption accounts for 22 of the total energy consumption in the us however the impacts of local planning policies such as increasing density and changing the housing type mix on residential energy consumption are not well understood using residential energy consumption survey data from the energy information administration quantile regression analysis was used to tease out the effects of various factors on entire distribution on the energy consumption spectrum instead of focusing on the conditional average results show that while housing size matters for space conditioning housing type has a more nuanced impact self reported neighborhood density does not seem to have any impact on energy use furthermore the effects of these factors at the tails of the energy use distribution are substantially different than the average in some cases differing by a factor of six some not all types of multifamily housing offer almost as much savings as reduction in housing area by 100 m 2 compared to single family houses