<p>This study provides an empirical and strategic contribution to the revenue management literature by investigating the transition from static cost-plus pricing to a dynamic, elasticity-based framework within state-owned extractive industries (SOEs). While dynamic pricing is extensively studied in flexible, data-rich private markets, its application in structurally rigid SOEs within transitional economies remains a critical research gap. Drawing on primary fiscal and production data from the 2024 fiscal year of the General Company for Mining Industries (SCMI), we developed a mathematical model to determine optimal pricing (<InlineEquation ID="IEq1"> <EquationSource Format="TEX">\({{\varvec{P}}}_{\boldsymbol{*}}\)</EquationSource> </InlineEquation>) based on marginal cost principles and demand elasticity. The findings demonstrate that replacing rigid accounting routines with flexible pricing mechanisms significantly enhances resilience against market volatility. Specifically, the application of this model reactivated 70% of previously idle production capacity, generating a 79.5% increase in total revenue and a 35% rise in net income. These results suggest that "soft reforms"—focused on modernizing managerial accounting tools rather than capital-intensive investment—offer a viable pathway for policymakers to restore the competitiveness of state-owned industrial firms in emerging markets.</p>

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Economic sustainability in state-owned extractive industries: a dynamic pricing framework for the Iraqi mining sector

  • Suhaib Yahya Sadeq,
  • Ghazi Maan Faisal

摘要

This study provides an empirical and strategic contribution to the revenue management literature by investigating the transition from static cost-plus pricing to a dynamic, elasticity-based framework within state-owned extractive industries (SOEs). While dynamic pricing is extensively studied in flexible, data-rich private markets, its application in structurally rigid SOEs within transitional economies remains a critical research gap. Drawing on primary fiscal and production data from the 2024 fiscal year of the General Company for Mining Industries (SCMI), we developed a mathematical model to determine optimal pricing ( \({{\varvec{P}}}_{\boldsymbol{*}}\) ) based on marginal cost principles and demand elasticity. The findings demonstrate that replacing rigid accounting routines with flexible pricing mechanisms significantly enhances resilience against market volatility. Specifically, the application of this model reactivated 70% of previously idle production capacity, generating a 79.5% increase in total revenue and a 35% rise in net income. These results suggest that "soft reforms"—focused on modernizing managerial accounting tools rather than capital-intensive investment—offer a viable pathway for policymakers to restore the competitiveness of state-owned industrial firms in emerging markets.