Articles

Racele Joy R. Lacorte

3RD YEAR BSBA-MM

Article 1.

Effective pricing strategies for charging service providers (CSPs) are required due to the intricate interdependence between power systems and integrating electric vehicles (EVs) into transportation networks. These strategies must balance supply and demand to guarantee system efficiency and stability.

?Key strategies include incentive-based pricing, which promotes beneficial user behavior, and cost-reflective pricing, aligned with electricity costs. And dynamic pricing, which reflects real-time conditions. Regulatory and market mechanisms guarantee equitable and competitive practices, while predictive analytics can forecast demand patterns.

Challenges include regulatory compliance, user acceptability, technological infrastructure, and data integration. To overcome these challenges, a collaborative approach among stakeholders is necessary to optimize the efficacy and sustainability of coupled power and transportation networks.?

References: Ye, Y., Wang, H., Cui, T., Yang, X., Yang, S., & Zhang, M. (2023). Identifying generalizable equilibrium pricing strategies for charging service providers in coupled power and transportation networks. Advances in Applied Energy, 12, 100151.?https://doi.org/10.1016/j.adapen.2023.100151

Article 2.

Price skimming, which involves introducing a product at a high price and subsequent gradual reduction, is a prevalent marketing approach for technology products. This method optimizes early revenue, assists in recovering R&D expenses, improves brand recognition, and organically segments the market. Nevertheless, it may not be appropriate for short-lifecycle products, frustrate early consumers, make the product vulnerable to competitors, and limit market reach.?

Alternative approaches consist of:

Penetration Pricing: Establishing a low initial price to attract a large customer base and discourage competitors rapidly.

Value-Based Pricing: Pricing is determined by the consumer's perceived value.

"Freemium" is a business model that involves providing a fundamental product for free and charging for premium features.

The optimal strategy is contingent upon the product lifecycle, cost structure, customer segmentation, product differentiation, and market conditions. A comprehensive examination of these factors can assist in determining whether skimming or an alternative strategy will optimize market success and profitability.

?References: Lotfi, A., Naoum-Sawaya, J., Lotfi, A., & Jiang, Z. (2024b). To Skim or Not to Skim: Studying the Optimal Pricing Strategy for Technology Products. Omega, 103079. https://doi.org/10.1016/j.omega.2024.103079

?Article 3.

Innovation and competition are significantly impeded by incumbents' exclusive data access to provide personalized pricing. Consolidating market power, entry barriers, consumer exploitation, and restricted choice are among the challenges. Access to data can offer various benefits, such as the improvement of market efficiency, the empowerment of consumers, the stimulus of innovation, and the leveling of the playing field. Nevertheless, to effectively implement data transparency, it is imperative to address privacy concerns, establish standardized data formats, establish legislative frameworks, and surmount opposition from existing stakeholders. The potential of data openness to foster innovation and facilitate competition is underscored by real-world examples. Some examples are initiatives in the telecommunications industry and Open Banking.

References: Esteves, R., & Carballo-Cruz, F. (2023). Can data openness unlock competition when an incumbent has exclusive data access for personalized pricing? Information Economics and Policy, 64, 101046. https://doi.org/10.1016/j.infoecopol.2023.101046

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