Business Commons^™

Dynamic Competition With Network Externalities: Why History Matters, Hanna Halaburda, Bruno Jullien, Yaron Yehezkel

Hanna Halaburda

Investor Valuations Of Japan's Adoption Of A Territorial Tax Regime: Quantifying The Direct And Competitive Effects Of International Tax Reform, Sebastien J. Bradley, Estelle Dauchy, Makoto Hasegawa

Sebastien J Bradley

Competing By Restricting Choice: The Case Of Search Platforms, Hanna Halaburda, Mikolaj Jan Piskorski, Pinar Yildirim

Hanna Halaburda

Inattention To Deferred Increases In Tax Bases: How Michigan Homebuyers Are Paying For Assessment Limits, Sebastien J. Bradley

Sebastien J Bradley

"Immigrants And Mortgage Delinquency", Zhenguo Lin, Yingchun Liu, Jia Xie

Jia Xie

No abstract provided.

The Role Of Coordination Bias In Platform Competition, Hanna Halaburda, Yaron Yehezkel

Hanna Halaburda

Analysis Of Low-Cost Carriers In The Post-Soviet States, Tamilla Curtis, Dawna Rhoades

Dr. Tamilla Curtis

The research paper provides an overview of low-cost carrier (LCC) development in the post- Soviet states with the analysis of the largest aviation market in Russia. The LCC model seeks to achieve a competitive advantage through the reduction of operating costs below the traditional airline model. Since the post-Soviet states are emerging economies, airlines face a high level of uncertainty and experience a number of unique problems. While the global community enjoys the benefits offered by LCCs, the question remains why this model has not been successful in the 15 newly formed countries, with the exception of the Hungarian low-cost …

Alienated Politics: Labour Insurgency And The Paternalistic State In China, Eli Friedman

Eli D Friedman

Is there a labour movement in China? This contribution argues that China does not have a labour movement, but that contestation between workers, state and capital is best characterized as a form of ‘alienated politics’. Widespread worker resistance is highly effective at the level of the firm be-cause of its ability to inflict losses on capital and disrupt public order. But authoritarian politics in China prevent workers from formulating political demands. Despite the spectacular repressive capacity of the state, the central government has in fact responded to highly localized resistance by passing generally pro-labour legislation over the past decade. The …

Comment On 'Impacts, Costs, And Techniques For Mitigation Of Contaminated Groundwater: A Review' By M. Sharefkin, M. Shechter, And A.V. Kneese, Robert Main

Robert S. Main

Published response to 'Impacts, Costs, and Techniques for Mitigation of Contaminated Groundwater: A Review' by M. Sharefkin, M. Shechter, and A.V. Kneese, Water Resources Research, Volume 20, Issue 12.

A New Approach To Peak Load Pricing, Robert Main

Robert S. Main

This paper explores an alternative method of ‘solving’ the problem of recurring time variable demands in a public utility context. It views the utility's load curve as a series of horizontal layers or ‘slices’ of varying lengths, rather than as a series of vertical slices as in the traditional approach. Several cases are examined, and traditional time-of-day pricing is shown to be inefficient or inapplicable in some of them, while ‘demand-layer’ pricing, based on horizontal slicing, is efficient. In still other cases, neither method of pricing is efficient.

The Impact Of Marginal Business Taxes On State Manufacturing, Richard Funderburg, Timothy Bartik, Alan Peters, Peter Fisher

Timothy J. Bartik

No abstract provided.

The Effects Of State And Local Taxes On Economic Development: A Review Of Recent Research, Timothy Bartik

Timothy J. Bartik

No abstract provided.

Family Wages: The Roles Of Wives And Mothers In U.S. Working-Class Survival Strategies, 1880-1930, Ileen Devault

Ileen A DeVault

The common image of a female wage earner in the U.S. in the decades around the turn of the 20th century is that of a young, single woman: the daughter of her family. However, the wives and mothers of these families also made important economic contributions to their families' economies. This paper argues that we need to rethink our evaluation of the economic roles played by ever-married women in working-class families. Using a range of government reports as well as IPUMS, I document three ways in which working-class wives and mothers strove to bring cash into their family units: through …

All-Units Discounts As A Partial Foreclosure Device, Yong Chao, Guofu Tan

Yong Chao

All-units discounts (AUD) are pricing schemes that lower a buyer’s marginal price on every unit purchased when the buyer’s purchase exceeds or is equal to a pre-specified threshold. The AUD and related conditional rebates are commonly used in both final-goods and intermediate-goods markets. Although the existing literature has thus far focused on interpreting the AUD as a price discrimination tool, investment incentive program, or rent-shifting instrument, the antitrust concerns on the AUD and related conditional rebates are often their plausible exclusionary effects.

In this article, we investigate strategic effects of volume-threshold based AUD used by a dominant firm in the …

Teleinvestmentevangelists: Celebrity, Ritual And Religion And The Quest To “Beat The Market”, E. Douglas, Mary Keller, Elton Mcgoun

Mary L Keller

Purpose – This paper aims to offer a cultural understanding of investor faith in stock picking despite overwhelming evidence questioning its efficacy. Why, in the face of very widely communicated findings calling into question the advice and assistance offered by financial professionals to help them pick stocks or manage their mutual funds, do so many people persist in these practices? The authors believe that the best way to understand investor faith in the efficacy of stock picking is through teleinvestmentevangelists such as Jim Cramer, whose fusion of celebrity and religion taps into the ritualistic elements of investment that usually lie …

Pay-What-You-Want Pricing: Can It Be Profitable?, Yong Chao, Jose Fernandez, Babu Nahata

Yong Chao

Using a game theoretic framework, we show that not only can pay-what-you-want (PWYW) pricing generate positive profits, but it can also be more profitable than charging a fixed price to all consumers. Further, whenever it is more profitable, it is also Pareto-improving. We derive conditions in terms of two parameters, namely the marginal cost of production and the psychological cost of the consumer for paying too little compared to her reference price.

The paper makes the following contributions to the existing literature. First, we endogenize the choice of pricing strategies—PWYW vs. fixed price. Thus rather than solely focusing on the …

Vertical Probabilistic Selling: The Role Of Consumer Anticipated Regret, Yong Chao, Lin Liu, Dongyuan Zhan

Yong Chao

This paper studies vertical probabilistic selling (mixing products with different qualities) when firms compete, and consumers have different abilities to anticipate the potential post-purchase regret raised by the possibility of obtaining the inferior products. We show that, when consumers have either no or full ability to anticipate the regret, probabilistic selling emerges only when the product differentiation between firms is intermediate. However, when consumers have partial ability to anticipate the regret, probabilistic selling will arise more often and yield higher profit compared with the previous two cases. This is due to the “reverse quality discrimination”: the perceived quality of the …

"Dual Agent Distortions In Real Estate Transactions", Ken Johnson, Zhenguo Lin, Jia Xie

Jia Xie

The Relationship Between Import Penetration And Operation Of The U.S. Textile And Apparel Industries From 2002 To 2008, Sheng Lu, Kitty Dickerson

Sheng Lu

The U.S. textile and apparel (T&A) industries have respectively adopted various restructuring strategies in recent years which fundamentally changed the way the two industries operate and the shifting relationship of each sector with imports. This study empirically tests the relationship between import penetration and the operation of the U.S. T&A industries based on data at 4-digit North American Industrial Classification System (NAICS) code level from 2002-2008. Results from the panel data model show that overall the U.S. textile industry formed a weak cooperative relationship with import penetration level in the U.S. market and a neutral relationship was suggested for the …

The Relation Between Variance And Information Rents In Auctions, Brett Katzman, Julian Reif, Jesse Schwartz

Jesse A. Schwartz

This paper examines the conventional wisdom, expressed in McAfee and McMillan's (1987) widely cited survey paper on auctions, that links increased variance of bidder values to increased information rent. We find that although the conventional wisdom does indeed hold in their (1986) model of a linear contract auction, this relationship is an artifact of that particular model and cannot be generalized. Using Samuelson's (1987) model, which is similar but allows for unobservable costs, we show that increased variance does not always imply increased information rent. Finally, we give the appropriate measure of dispersion (different from variance) that provides the link …

Collusive Bidding In The Fcc Spectrum Auctions, Peter Cramton, Jesse Schwartz

Jesse A. Schwartz

This paper describes the bid signaling that occurred in many of the FCC spectrum auctions. Bidders in these auctions bid on numerous spectrum licenses simultaneously, with bidding remaining open on all licenses until no bidder is willing to raise the bid on any license. Simultaneous open bidding allows bidders to send messages to their rivals, telling them on which licenses to bid and which to avoid. This “code bidding” occurs when one bidder tags the last few digits of its bid with the market number of a related license. We examine how extensively bidders signaled each other with retaliating bids …

Information And Two-Sided Platform Profits

Hanna Halaburda

Corrigendum To "Improving Bid Efficiency For Humanitarian Food Aid Procurement": [Int. J. Production Economics 134 (2011) 238–245], Aniruddha Bagchi, Jomon Aliyas Paul, Michael Maloni

Jomon Aliyas Paul

Correction: Few of the equations and formulas in the above mentioned article has been produced incorrectly. The correct equations as per the original source are provided.

Location-Allocation Planning Of Stockpiles For Effective Disaster Mitigation, Jomon Aliyas Paul, Govind Hariharan

Jomon Aliyas Paul

In the existing framework for receiving and allocating Strategic National Stockpile (SNS) assistance, there are three noticeable delays: the delay by the state in requesting federal assets, the delay in the federal process which releases assets only upon the declaration of a disaster and lastly the time it takes to reach supplies rapidly from the SNS stockpile to where it is needed. The most efficient disaster preparedness plan is one that addresses all three delays taking into account the unique nature of each disaster. In this paper, we propose appropriate changes to the existing framework to address the first two …

Modeling The Effects Of Port Disasters, Jomon Aliyas Paul, Michael Maloni

Jomon Aliyas Paul

Weather or terrorism-related disasters at seaports can lead to significant economic losses from vessel and cargo delays. In times of such disasters, port capacities and optimal shipment routings would change rapidly, requiring near real-time analyses for planning response operations. To address this challenge, we offer a decision support system to help port networks analyze disaster response scenarios. As part of the model, an algorithm routes arriving ships to ports to optimize the use of network capacity with respect to ocean and inland transportation, port and inventory capital costs. To reflect changing port congestion conditions, port capacities are dynamically updated in …

Technology Licensing In A Differentiated Oligopoly, Aniruddha Bagchi, Arijit Mukherjee

Aniruddha Bagchi

When Does A Platform Create Value By Limiting Choice?, Ramon Casadesus-Masanell, Hanna Halaburda

Hanna Halaburda

Behavioural Responses To Beach Erosion And Climate Change, David Anning, Michael Raybould, Dan Ware, Neil Lazarow

Michael Raybould

No abstract provided.

Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao

Yong Chao

The distinct element of a three-part tariff, compared with linear pricing or a two-part tariff, is its quantity target within which the marginal price is zero. This quantity target instrument enriches the firm's strategy set in dictating the competition to a specific level, even in the absence of usual price discrimination motive. With general differentiated linear demand system, the competitive effect of a three-part tariff in contrast to linear pricing depends on the degree of substitutability between products: competition is intensified when two products are more differentiated, yet softened when two products are more substitutable.

Labor Market Data Needs Relating To Antidiscrimination Activity: Comment, Ronald Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Barbara Bergmann's background paper divides data needs in the antidiscrimination area into data that would be useful in the formulation of national policy and data that would be useful as an aid in enforcing the laws and executive orders against discrimination. Although the former are likely to be of greatest concern to the commission, she has performed a valuable service by discussing these interrelated needs in one place. I find much to agree with, and very little to disagree with or question, in her paper. The presentation is, in the main, an objective one and she tempers her desire …