Capital stock management during a recession that freezes credit markets

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2015
Volume: 116
Issue: C
Pages: 1-14

Authors (6)

Caulkins, Jonathan P. (not in RePEc) Feichtinger, Gustav (Technische Universität Wien) Grass, Dieter (not in RePEc) Hartl, Richard F. (not in RePEc) Kort, Peter M. (Universiteit van Tilburg) Seidl, Andrea (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 6 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper considers the problem of how to price a conspicuous product while maintaining liquidity during a recession which both reduces demand and freezes credit markets. Reducing price would help maintain cash flow, but low prices can erode brand image and, hence, long-term sales. The paper extends earlier work of the same authors by explicitly deriving a firm's optimal cash management behavior, taking into account that a too low cash level results in bankruptcy.

Technical Details

RePEc Handle
repec:eee:jeborg:v:116:y:2015:i:c:p:1-14
Journal Field
Theory
Author Count
6
Added to Database
2026-01-25