The impact of the measurement unit of unit price on consumer preference and choice

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Usage-Based versus Measure-Based Unit Pricing: Is There a Better Index of Value?

In many product categories, unit prices facilitate price comparisons across brands and package sizes; this enables consumers to identify those products that provide the greatest value. However in other product categories, unit prices may be confusing. This is because there are two types of unit pricing, measure-based and usage-based. Measure-based unit prices are what the name implies; price is expressed in cents or dollars per unit of measure (e.g. ounce). Usage-based unit prices, on the other hand, are expressed in terms of cents or dollars per use (e.g., wash load or serving). The results of this study show that in two different product categories (i.e., laundry detergent and dry breakfast cereal), measure-based unit prices reduced consumers’ ability to identify higher value products, but when a usage-based unit price was provided, their ability to identify product value was increased. When provided with both a measure-based and a usage-based unit price, respondents did not perform as well as when they were provided only a usage-based unit price, additional evidence that the measure-based unit price hindered consumers’ comparisons. Finally, the presence of two potential moderators, education about the meaning of the two measures and having to rank order the options in the choice set in terms of value before choosing, did not eliminate these effects.

Análise técnica - económica da produção de energia em sistemas de abastecimento de água: caso do aproveitamento de fins múltiplos dos socorridos

Dissertação de mestrado integrado em Engenharia Civil

Sôbre uma fórmula para o cálculo da dose mais econômica de adubo

The authors discuss a formula for the determination of the most profitable level of fertilization (x*). This formula, presented by CAREY and ROBINSON (1953), can be written as: x*= (1/c) log cx u L10 + (1/c) log wu _______ ___ 1-10 x u t being c the growth factor in Mitscherlich's equation, x u a standard dressing of the nutrient, L 10 the Naeperian logarithm of 10, u the response to the standard dressing, w the unit price of the crop product, and i the unit price of the nutrient. This formula is a modification of one of the formulas of PIMENTEL GOMES (1953). One of its advantages is that is does not depend on A, the theoretical maximum harvest, which is not directly given by experimental data. But another advantage, proved in this. paper, is that the first term on the right hand side K= 1(/c) log cx u L 10 ____________ 1 - 10-cx u is practically independent of c, and approximately equivalent to (1/2) x u. So, we have approximately x* = (1/2) x u + (1/c) log wu . ____ x u t With experimental data we compute z = wu ____ x u t then using tables 1, 2 and 3, we may obtain Y - (1/c) log z and finally x* = (1/2) x u + Y. This is an easy way to determine the most profitable level of fertilization when experimental data on the response u to a dressing x u are available. Tables for the calculation of Y are included, for nitrogen, phosphorus, potash, and manure.

O problema técnico-econômico da adubação

The authors discuss from the economic point of view the use of a few functions intended to represent the yield y corresponding to a level xof the nutrient. They point out that under conditions of scarce capital what is actually most important is not to obtain the highest profit per hectare but the highest return per cruzeiro spent, so that we should maximize the function z = _R - C_ = _R_ - 1 , C C where R is the gross income and C the cost of production (fixed plus variable, both per hectare). Being C = M + rx, with r the unit price of the nutrient and Af the fixed cost of the crop, wo are led to the equation (M + rx)R' - rR = 0. With R = k + sx + tx², this gives a solution Xo = - Mt - √ M²t² - r t(Ms - Kr)- _____________________ rt on the other hand, with R = PyA [1 - 10-c(x + b)], x0 will be the root of equation (M + rx)cL 10 + r 10c(x + b) = 0 (12). Another solution, pointed out by PESEK and HEADY, is to maximize the function z = sx + tx² _________ m + rx where the numerator is the additional income due to the nutrient, and m is the fixed cost of fertilization. This leads to a solution x+ = - mt - √m²t² - mrst (13) _________________ rt However, we must have x+< _r_-_s_ I if we want to satisfy t _dy_ > r. dx This condition is satisfied only if we have m < _(s__-__r)² (14), - 4 t a restriction apparently not perceived by PESEK and HEADY. A similar reasoning using Mitscherlich's law leads to equation (mcL 10 + r) + cr(L 10)x - r 10cx = 0 (15), with a similar restriction. As an example, data of VIEGAS referring to fertilization of corn (maize) gave the equation y - 1534 + 22.99 x - 0. 1069 x², with x in kg/ha of the cereal. With the prices of Cr$ 5.00 per kilo of maize, Cr$ 26.00 per kilo of P2O3,. and M = Cr$ 5,000.00, we obtain x0 = 61 kg/ha of P(2)0(5). A similar reasoning using Mitscherlich's law leads to x0 = 53 kg/ha. Now, if we take in account only the fixed cost of fertilization m = Cr$ 600.00 per hectare, we obtain from (13) x+ = 51 kg/ha of P2O5, while (14) gives x+ - 41 kg/ha. Note that if m = Cr$ 5,000.00, we obtain by formula (13) x+ = 88 kg/ha of P2O5, a solution which is not valid, since condition (14) is not satisfied.

Evaluation of the MIT-Scan-T2 for Non-Destructive PCC Pavement Thickness Determination Final Report, July 2008

The MIT-Scan-T2 device is marketed as a non-destructive way to determine pavement thickness on both HMA and PCC pavements. PCC pavement thickness determination is an important incentivedisincentive measurement for the Iowa DOT and contractors. The thickness incentive can be as much as 3% of the concrete contact unit price and the disincentive can be as severe as remove and replace. This study evaluated the potential of the MIT device for PCC pavement thickness quality assurance. The limited testing indicates the unit is sufficiently repeatable and accurate enough to replace core drilling as the thickness measurement method. Further study is needed to statistically establish the single user and multi-user/device precision as well as establish an appropriate sampling protocol and PWL specification.

Standard Specifications for Highway and Bridge Construction, 2012

When referenced, the 2012 edition of the Iowa Department of Transportation’s (Iowa DOT) Standard Specifications for Highway and Bridge Construction shall be used for contract work awarded by the Iowa DOT. They may also be incorporated by reference in other contract work on secondary, urban, local systems, or other contract work in which the Iowa DOT has an interest. As modified by the General Supplemental Specifications, these Standard Specifications represent the minimum requirements and may be modified by Supplemental Specifications, Developmental Specifications, and Special Provisions on specific contracts. These Standard Specifications have been written so the Contractor’s responsibilities are indicated by plain language using the Imperative Mood and Active Voice form. Sentences are of the form: Construct isolation joints at all points where driveways meet other walks, curbs, or fixtures in the surface. Ensure finished members are true to detailed dimensions and free from twists, bends, open joints, or other defects resulting from faulty fabrication or defective work. Personnel preparing the JMF shall be Iowa DOT certified in bituminous mix design. The Contracting Authority’s responsibilities are (with some exceptions) indicated by the use of the modal verb “will”. Sentences are of the form: The Engineer will obtain and test density samples for each lot according to Materials I.M. 204. Payment will be the contract unit price for Fabric Reinforcement per square yard (square meter). These standard specifications contain dual units of measure: the United States Standard measure (English units) and the International System of Units (SI or “metric” units). The English units are expressed first then followed by the metric units in parentheses. The measurements expressed in the two systems are not necessarily equal. In some cases the measurements in metric units is a “hard” conversion of the English measurement; i.e. the metric unit has been approximated with a rounded, rationalized metric measurement that is easy to work with and remember. The proposal form will identify whether the work was designed and shall be constructed in English or metric units.

Opetustoimen valtionosuuden laskennallisten yksikköhintojen soveltuvuus taloudellisuuden mittaamiseen ja arvioimiseen - Case toimiala, Imatran kaupungin koulutoimi

Tämän tutkimuksen päätavoitteena oli arvioida, voidaanko opetusministeriön vahvistamia opetustoimen yksikköhintoja pitää taloudellisuuden mittarina. Tutkimukseni kohdistui peruskoulun ja lukion valtionosuuden oppilaskohtaisiin laskennallisiin yksikköhintoihin ja musiikkiopiston muun koulutuksen ja työväenopiston opetustuntikohtaisiin laskennallisiin yksikköhintoihin. Julkinen talous pyrkii toiminnassaan myös mahdollisimman tehokkaisiin ja taloudellisiin ratkaisuihin. Toiminnan taloudellisuuden määrittämiseen tarvitaan mittareita ja vertailutietoa analysointia varten. Tutkimuksen tavoitteisiin pyrittiin toiminta-analyyttisellä tutkimusotteella, mutta siinä on nähtävissä myös käsiteanalyyttisiä piirteitä. Opetustoimen valtion rahoituksen muuttuessa laskennalliseksi, valtionhallinto kumosi vanhoja sääntöjä, puhuttiin ´normipurusta´. Aikaisempi valtionosuus perustui toteutuneisiin kustannuksiin. Uudistuksella haluttiin korostaa kuntien itsenäisyyttä, taloudellista omavastuisuutta ja tehokkuutta palvelujen järjestämisessä. Lisäksi kustannuksissa oletettiin syntyvän säätöjä, joiden oli määrä koitua kuntien hyväksi, kun valtionosuus ei määräytynyt hyväksyttyjen menojen mukaan. Taloudellisuus merkitsee yksikkökustannusten tunnistamista ja analysointia. Kunnan taloustavoitteita on pyrittävä mittaamaan tunnusluvuilla. Niille on asetettava hyväksyttävät tavoitearvot. Tunnuslukujen arvot eivät sellaisenaan kerro, miten hyvä tai huono toiminnan tulos on. Vasta niiden vertailu ja analysointi antavat kuvan tästä. Kuntien oppilaskohtainen yksikköhinta soveltuu hyvin peruskoulun ja lukion taloudellisuuden mittariksi. Samoin opetustuntikohtainen yksikköhinta musiikkiopiston ja kansalaisopiston taloudellisuuden mittariksi. Kuntien keskinäinen kustannusvertailu ja analysointi antavat hyvän pohjan löytää kustannusten taloudellisuuden taso.

Stress testing and risk evaluation of new capacity payment algorithm proposed by Market Council

In the Russian Wholesale Market, electricity and capacity are traded separately. Capacity is a special good, the sale of which obliges suppliers to keep their generating equipment ready to produce the quantity of electricity indicated by the System Operator. The purpose of the formation of capacity trading was the maintenance of reliable and uninterrupted delivery of electricity in the wholesale market. The price of capacity reflects constant investments in construction, modernization and maintenance of power plants. So, the capacity sale creates favorable conditions to attract investments in the energy sector because it guarantees the investor that his investments will be returned.

Compras públicas X compras privadas: o que os dados da aquisição de medicamentos nos dizem?

Essa dissertação analisa as compras de medicamentos registradas no Banco de Preços em Saúde do Ministério da Saúde com o objetivo de avaliar o quão diferentes são os preços pagos pelo setor público e pelo setor privado quando estes adquirem o mesmo bem. Adicionalmente, são testados se a experiência formação de consórcios municipais de saúde afetam os preços pagos pela aquisição de medicamentos por parte de instituições municipais e se as compras originadas em demandas judiciais têm efeito sobre o preço unitário. A análise aponta, respectivamente, para evidências de que as compras públicas são mais caras, que as instituições municipais são mais eficientes e que as compras originadas por demandas judiciais são mais caras.

Alterações qualitativas em contratos de obra pública e a teoria econômica dos contratos incompletos : é possível construir um avião em pleno voo?

Não é de hoje que o país assiste à descoberta de incontáveis casos de desvios de recursos públicos ou mesmo à má gestão de contratos de obra pública que ocasionam, além de grave prejuízo ao Erário, danos à sociedade, muitas vezes desprovida da utilidade que seria proporcionada pelo pactuado. Essas condutas normalmente são ensejadas por projetos de engenharia que podem ser considerados meras peças de ficção, pois não representam o esforço correto para a execução do bem que se deseja construir. A Lei nº 8.666/93 permite a licitação com base em projeto básico, o que, segundo a atual onda de pensamento brasileira, seja da doutrina, dos órgãos de controle, do Poder Legislativo e até mesmo da mídia, é, de fato, um sério problema a ser enfrentado, pois a sua contratação dá margem a aditivos, entendidos como os grandes vilões das obras públicas. Por isso, o Tribunal de Contas da União vem decidindo no sentido de fortemente restringir a possibilidade de alteração contratual e, além disso, tem capitaneado projetos no Congresso Nacional que visam praticamente à extinção da empreitada por preço unitário, espécie contratual na qual o risco do projeto, ainda sem as definições necessárias, acaba por ser assumido pela Administração contratante, responsável pela elaboração, e não pelo seu executor. Contudo, no caso de obras complexas de infraestrutura, deve-se perquirir se essa postura, que pretende acabar com a margem decisória do gestor público quanto à extensão da incompletude do projeto básico - e, portanto, do objeto do contrato -, merece ser repensada, não com vistas a possibilitar os recorrentes danos, mas no caminho de uma melhor programação das ações estatais. Isso porque nessas hipóteses, a busca por todas as informações necessárias para a confecção do projeto a ser ao final executado, no momento da elaboração do edital, ou é muito custosa ou simplesmente não é possível. Assim, seria mais eficiente a contratação integrada, prevista na Lei do Regime Diferenciado de Contratação, na qual o risco do projeto pode se alocado ao contratado. Ocorre que, como existem restrições, nem sempre é viável esse caminho. Nessa ordem de ideias, deve-se encontrar uma solução para que o tradicional contrato de obra pública supere os seus graves problemas de incentivos. A proposta do presente trabalho é a introdução de um procedimento de tomada de decisão transparente, que confira segurança jurídica e amplo conhecimento da sociedade, além de livre acesso aos órgãos de controle, a partir de critérios não apenas jurídicos, mas econômicos e técnicos.

Cogeneration in a solid-wastes power-station: a case-study

Nowadays, natural gas is viewed as the solution to the problem of energy supply for Latin America, Europe and North America for the next few decades; Brazil is increasingly becoming dependent upon the Bolivian natural-gas supply - many industries and some entrepreneurs are deciding to construct industrial cogeneration systems and new thermal power-stations burning natural gas because of its low environmental impact and attractive price. However, natural gas is a finite resource: this will cause, in the future, an increase of its unit price. This paper details questions involved in the energy generation and presents solid-waste burning as a possible alternative fuel for the future, especially in the context of cogeneration practice in which the thermal and electric energy are used primarily for the industries located in an industrial district. Two cogeneration schemes are proposed for the burning of municipal solid wastes, associated or not with natural gas, and their technical and economic feasibilities are examined. (C) 1999 Elsevier B.V. Ltd. All rights reserved.

East Asia's Economic Development cum Trade "Divergence"

This paper addresses some salient features of how some of "successful" East Asian economies have been faring in terms of enhancing their export competitiveness. That export becomes more divergent in terms of its unit price as more technology-enhancing economic activity is undertaken within an economy, is the primary message that this study conveys. This is indeed what Schumpeter had addressed in conjunction with his "creative destruction" thesis. From this perspective, East Asia's export-led industrialization has been attained through a particular policy focus upon high "trade divergence" sectors underpinned by a generally high level of manufacturing flexibility. The experience of Malaysia's development serves as the strong case in point. As an East Asia-wide FTA is expected to facilitate "divergent" export-led industrialization through enhanced knowledge interaction, this dynamic or "divergent" impact that knowledge creation could exert should come to the fore of relevant policy arguments, together with static consideration of trade creation and diversion. A formal statistical test of the "divergence hypothesis" above is called for with a view to building upon this preliminary study.

New aspects of intra-industry trade in EU countries

Using the HS eight-digit product level trade data of EU countries for the period 1988 – 2010, we analyse Intra-industry trade within EU countries as well as with Eastern European countries and with China. We find the Eastern European countries’ rise up the quality ladder, and by contrast the substantially lower prices of China’s exports to EU countries vis-à-vis China’s imports from them. The contrast between EU trade with the Eastern European countries and with China is present even in very recent years.

Product quality and intra-industry trade

In this study, we argue that the conventional intra-industry trade (IIT) index does not address the quality issue directly and propose a methodology to make full use of unit-price gap information to deduce quality differences between simultaneously exported and imported products. By applying this measure to German trade data at the eight-digit level, we study the quality improvement of Chinese export goods in its IIT with Germany. We compare the case of China with those of Eastern European countries, which are also major trading partners of Germany. Our results show that the unit-value difference in IIT between Germany and Eastern European countries is clearly narrowing. However, China's export prices to Germany are much lower than Germany's export prices to China, and this gap has not narrowed over the last 23 years. This is at odds with the common perception that China's product quality has improved, as documented by Rodrik (2006) and Schott (2008). Our results support Xu (2010), which argued that incorporating the quality aspect of the exported goods weakens or even eliminates the evidence of the sophistication of Chinese export goods in Rodrik (2006).