Chenavaz

Publications

Prices for cash and cash for prices? Theory and evidence on convenient pricingJournal articleBruno Karoubi et Régis Chenavaz, Applied Economics, Volume 47, Issue 38, pp. 4102-4115, 2015

A transaction between a seller and a buyer incurs a payment cost. The payment cost is borne by the seller, depending on the payment instrument the buyer chooses, cash or card. Card payment is more costly than cash payment, so the seller prefers that the buyer pays cash. In this article, we study the strategy of the seller setting a convenient price, which simplifies transactions and pushes the buyer to pay cash. The theoretical analysis, which models both the seller and the buyer in a game setting, derives two propositions: (1) the seller is more likely to set a more convenient price and (2) the buyer is more likely to pay cash a more convenient price. The empirical analysis supports both propositions. Thus, sellers adopt a convenience pricing strategy - prices for cash - and this strategy pushes buyers to pay cash - cash for prices.

Population distribution, effective area and economic growthJournal articleRégis Chenavaz et Octavio Escobar, Applied Economics, Volume 47, Issue 53, pp. 5776-5790, 2015

The usual measure for the factor land is the total area. But total area is a flawed measure because land is of unequal quality. To account for land quality, we use an alternative measure called effective area . Effective area is based on spatial population distribution which captures both natural conditions and human activity. Theoretically, effective area explains economic growth better than total area that biases the measure of total factor productivity (TFP) growth. Empirically on the basis of 40 years of panel data for the United States, an increase of 10% in effective area is associated with an economic growth of 5%, and the omission of effective area undervalues the growth of TFP by 8.1%.

Effective area as a measure of land factorJournal articleRégis Chenavaz et Octavio Escobar, Economics Bulletin, Volume 32, Issue 3, pp. 1962-1969, 2012

Empirical studies use the total area as a measure of land factor. This measure is flawed as it ignores the effectiveness of that total area. We develop an estimator of effective area based on spatial population distribution. The empirical application for the OECD countries highlights the advantages of the United States in land factor and shows that Eastern European countries have the highest proportion of effective area. The estimation also supports Helpman's view: if population density increases, population disperses.

Dynamic pricing, product and process innovationJournal articleRégis Chenavaz, European Journal of Operational Research, Volume 222, Issue 3, pp. 553-557, 2012

The question of simultaneous dynamic pricing, product and process investment policies is crucial for manufacturing and high-tech industries. This paper models these policies in an optimal control setting. On the supply side, the firm sets prices, product and process investment levels over time. On the demand side, current demand depends on price and quality. Under an additive separable demand function, dynamic pricing increases with quality and cost. Therefore, both product innovation and process innovation impact the pricing policy. Under a multiplicative separable demand function, dynamic pricing policy follows the dynamic of production cost and is independent of the evolution of product quality. Thus, process innovation is the main determinant of a firm's pricing policy over time and product innovation has no impact.

Dynamic pricing rule and R&DJournal articleRégis Chenavaz, Economics Bulletin, Volume 31, Issue 3, pp. 2229-2236, 2011

This article models the intertemporal behaviour of a firm that sets product prices and simultaneously invests in R&D. The model shows that the dynamic pricing rule follows the evolution of the production cost and is independent of the evolution of the product quality. Thus, process innovation, which reduces production cost, is the main determinant of a firm's pricing policy over time. Moreover, the firm invests more in process innovation over time at the expense of product innovation. Hence, the model explains the decrease in the cost of production and in the price of technological products throughout their life cycle.

Les déterminants de la politique de tarification dynamique sur un marché biface. Le cas des logiciels de type client-serveurJournal articleRégis Chenavaz et Benoît Leloup, Revue d'économie financière, Volume 135, Issue 3, pp. 89-114, 2011

This paper characterizes the determinants of the pricing policy of a firm that operates on a two-sided market. The application market is client-server software on the Internet. To study the research question, we draw some elements of the literatures on new product diffusion and on two-sided markets. We obtain analytical results and give simulations of dynamic pricing policies. We obtain two main results. (1) For an important class of demand functions, the impact on the pricing policy of the intermarket externality is as important as the intra market externality. (2) An alternative pricing policy for which the software client is free has very little impact on the intertemporal profit.

Dynamic Pricing in Management ScienceJournal articleRégis Chenavaz, Louis-Philippe Carrier, Lydie Etienne et Corina Paraschiv, Journal of Economics Studies and Research, Volume 2011, Issue Article ID 283281, pp. 1-16, 2011

This paper presents a review of the literature on dynamic pricing models in management science. We discuss monopolistic and competitive situations, with an emphasis on applications in different contexts. We also describe the main development perspectives of this literature.

Sellers' and Buyers' Reference Point Dynamics in the Housing MarketJournal articleCorina Paraschiv et Régis Chenavaz, Housing Studies, Volume 26, Issue 3, pp. 329-352, 2011

Building on behavioural research in economics, this paper examines reference points for sellers and for buyers in the housing market. Using experimental data, it is shown that, contrary to standard economic theory predictions, reference point dynamics can be influenced by market evolution and available information. More precisely, is it shown that the reference point depends on the seller/buyer role in the housing market, that past prices influence the reference point and that the reference point can be manipulated by information disclosure. The results are consistent with the theoretical implications of prospect theory and mental accounting.

Processus de rencontre sur Internet : une étude empirique de la perception du risqueJournal articleRégis Chenavaz et Corina Paraschiv, Management & Avenir, Issue 44, pp. 124-146, 2011

L’objectif de l’article est de comprendre le risque perçu des rencontres en ligne et les différences de perception du risque entre les rencontres en ligne et les rencontres traditionnelles en utilisant l’approche multidimensionnelle du risque perçu. Nous réalisons une étude empirique à partir de questionnaires postés sur des forums consacrés aux rencontres en ligne. Nous montrons tout d’abord que toutes les dimensions du risque perçu sont systématiquement plus fortes pour les rencontres en ligne que pour les rencontres traditionnelles. Ensuite, le classement de l’importance des différentes dimensions du risque est le même pour les rencontres en ligne et pour les rencontres traditionnelles. Enfin, nous mettons en évidence que le risque de performance et le risque de perte de temps sont les deux déterminants du risque perçu global des rencontres en ligne.

Évolution de Prix de Référence du Vendeur: une Étude Expérimentale sur le Marché Immobilier.Journal articleCorina Paraschiv et Régis Chenavaz, Revue Française du Marketing, Issue 221, pp. 31-45, 2009

Consumer decision-making models generally use a reference point for prices. In the context of real estate markets, we study sellers' reference point adaptation on a growing and a declining market. We show that (1). sellers' reference point adapts faster on a growing real estate market than on a declining real estate market ; (2). sellers accept prices lower than market prices on a growing real estate market while they ask for prices higher than market prices on a declining real estate market and (3) initial buying price of a apartment plays a more important role on a declining than on a growing real estate market. (English)