Theoretical And Experimental Analysis Of Auctions With Negative Externalities,
2012
Southwestern University of Finance and Economics
Theoretical And Experimental Analysis Of Auctions With Negative Externalities, Youxin Hu, John Kagel, Xiaoshu Xu, Lixin Ye
Youxin Hu
We investigate a private value auction in which a single “entrant” on winning imposes a negative externality on two “regular” bidders. In an English auction, when all bidders are active “regulars” free ride, exiting before price reaches their value. In a first-price sealed-bid auction incentives for free riding and aggressive bidding coexist, limiting free riding. We find substantial, though incomplete, free riding in the clock auction. In first-price auctions, regular bidders bid more aggressively than the “entrant” and both bid higher than in auctions with no externality. Predictions regarding revenue, efficiency, and successful entry between the two auctions are satisfied.
Production And Financial Linkages In Inter-Firm Networks: Structural Variety, Risk-Sharing And Resilience,
2012
University of Bologna
Production And Financial Linkages In Inter-Firm Networks: Structural Variety, Risk-Sharing And Resilience, Sandro Montresor, Giulio Cainelli, Giuseppe Vittucci Marzetti
Sandro Montresor
The paper analyzes how (production and financial) inter-firm networks can affect firms’ default probabilities and observed default rates. A simple theoretical model of shock transfer is built to investigate some stylized facts on how firm-idiosyncratic shocks are allocated in the network, and how this allocation changes firm default probabilities. The model shows that the network works as a perfect “risk-pooling” mechanism, when it is both strongly connected and symmetric. But the “risk-sharing” does not necessarily reduce default rates, unless the shock firms face is lower on average than their financial capacity. Conceived as cases of symmetric inter-firm networks, industrial districts …
Agency Problems And Reputation In Expert Services: Evidence From Auto Repair,
2012
Cornell University
Agency Problems And Reputation In Expert Services: Evidence From Auto Repair, Henry S. Schneider
Henry S Schneider
Using a field experiment involving undercover visits to auto repair garages with a test vehicle, I first examine how asymmetric information between mechanics and motorists over auto repair service quality affects outcomes. I then examine whether reputation mitigates these problems via a matched-pair treatment in which undercover researchers appeared as either one-time or repeat-business customers. The results indicate that under and overtreatment are widespread, and that reputation via a repeat business mechanism does not improve outcomes significantly.
Harnessing Complementarities In The Education Production Function,
2012
University of Chicago
Harnessing Complementarities In The Education Production Function, John A. List, Jeffrey A. Livingston, Susanne Neckermann
Jeffrey A Livingston
Studies which seek to estimate components of the education production function, especially those that employ the “value-added” approach, almost universally assume that the production function is linear and additively separable in its inputs. This strict functional form assumes that there are no complementarities between inputs, though there are compelling intuitive reasons to think they might exist. This study conducts a randomized field experiment to evaluate whether complementarities between students, their parents, and tutors who aid the students in specific subjects can be harnessed using financial incentives. No evidence emerges in support of this hypothesis. The results suggests that a given …
Price Discrimination Through Refund Contracts In Airlines,
2012
University of Texas - Pan American
Price Discrimination Through Refund Contracts In Airlines, Diego Escobari, Paan Jindapon
Paan Jindapon
This paper shows how an airline monopoly uses refundable and non-refundable tickets to screen consumers who are uncertain about their travel. Our theoretical model predicts that the difference between these two fares diminishes as individual demand uncertainty is resolved. Using an original data set from U.S. airline markets, we find strong evidence supporting our model. Price-discrimination opportunities through refund contracts decline as the departure date nears and individuals learn about their demand.
Who Is Your Company? Where To Locate To Compete In Emerging Markets,
2012
University of Hong Kong
Who Is Your Company? Where To Locate To Compete In Emerging Markets, Bryane Michael
Bryane Michael (bryane.michael@stcatz.ox.ac.uk)
Who’s your city? For companies in the developing world, this question determines their market sizes, access to innovative ideas, regulatory environment and proximity to innovative staff. In this brief, we identify the most attractive metropolitan areas to locate in to sell in emerging markets. Taipei, Istanbul, Johannesburg, Santiago, Buenos Aires, Sao Paulo, St. Petersburg, Moscow, Shanghai and Beijing comprise our top 10 list. Close runners-up include Bangkok, Kuala Lumpur, Mumbai, Cairo and others. We describe how companies can work with local governments to provide a more attractive business environment in these emerging metropoli. Some ways including providing resources for airport …
A Spatial Econometric Analysis Of The Effect Of Vertical Restraints And Branding On Retail Gasoline Pricing,
2012
Hanqing Institute, Renimin University of China, Beijing
A Spatial Econometric Analysis Of The Effect Of Vertical Restraints And Branding On Retail Gasoline Pricing, Stuart Mcdonald
Stuart McDonald
This paper builds an econometric model of retail gas competition to explain the pricing decisions of retail outlets in terms of vertical management structures, input costs and the characteristics of the local market they operate within. The model is estimated using price data from retail outlets from the South-Eastern Queensland region in Australia, but the generic nature of the model means that the results will be of general interest. The results indicate that when the cost of crude oil and demographic variations across different localities are accounted for, branding (i.e. whether the retail outlet is affiliated with one of the …
Love Thy Neighbor, Love Thy Kin: Strategy And Bias In The Eurovision Song Contest,
2012
University of Cyprus
Love Thy Neighbor, Love Thy Kin: Strategy And Bias In The Eurovision Song Contest, Sofronis Clerides, Thanasis Stengos
Sofronis Clerides
The annual Eurovision Song Contest provides a setting where Europeans can express their sentiments about other countries without regard to political sensitivities. Analyzing voting data from the 25 contests between 1981-2005, we find strong evidence for the existence of clusters of countries that systematically exchange votes regardless of the quality of their entries. Cultural, geographic, economic and political factors are important determinants of point exchanges. Factors such as order of appearance, language and gender are also important. There is also a substantial host country effect. We find some evidence of reciprocity but no evidence of strategic voting.
La Valutazione Antitrust Degli Sconti Fedeltà Nel Diritto Della Concorrenza Europeo: Alla Ricerca Di Un Approccio Economico E Di Una Teoria Del Danno Per Il Consumatore,
2012
SelectedWorks
La Valutazione Antitrust Degli Sconti Fedeltà Nel Diritto Della Concorrenza Europeo: Alla Ricerca Di Un Approccio Economico E Di Una Teoria Del Danno Per Il Consumatore, Danilo Samà
Dr. Danilo Samà
La valutazione antitrust degli sconti fedeltà nel diritto della concorrenza europeo: alla ricerca di un approccio economico e di una teoria del danno per il consumatore
Author:Dr Danilo Samà (LUISS “Guido Carli” University, Law & Economics LAB)
Abstract:L’articolo si propone di comprendere in base a quali condizioni sconti fedeltà adottati da un’impresa dominante comportino effetti anticoncorrenziali. Gli schemi fidelizzanti, infatti, sebbene estremamente frequenti nelle transazioni di mercato, qualora applicati da un’impresa dominante, rischiano di essere giudicati illeciti per sé, come comprovato dalla casistica giurisprudenziale finora emersa a livello europeo e dal severo scrutinio riservato delle autorità nazionali della …
The Antitrust Treatment Of Loyalty Discounts And Rebates In The Eu Competition Law: In Search Of An Economic Approach And A Theory Of Consumer Harm,
2012
LUISS "Guido Carli" University of Rome (Italy)
The Antitrust Treatment Of Loyalty Discounts And Rebates In The Eu Competition Law: In Search Of An Economic Approach And A Theory Of Consumer Harm, Danilo Samà
Dr. Danilo Samà
The antitrust treatment of loyalty discounts and rebates in the EU competition law: in search of an economic approach and a theory of consumer harm
Author:Dr Danilo Samà (LUISS “Guido Carli” University, Law & Economics LAB)
Abstract:In the paper, the fundamental question is under what conditions loyalty discounts and rebates adopted by a dominant firm cause anti-competitive effects. Fidelity schemes, although extremely frequent in the market, if applied by a dominant firm, are likely to be judged as illegal per se, as demonstrated by the EU case-law delivered so far and the severe scrutiny reserved by the national …
The Influence Of Industry Mix On Regional New Firm Entry,
2012
University of Massachusetts - Amherst
The Influence Of Industry Mix On Regional New Firm Entry, Henry C. Renski
Henry C Renski
Per capita rates of entry are commonly used to measure regional entrepreneurial climate. Yet entry rates vary widely by industry and tend to mirror existing regional specializations. Without controlling for industry mix, factors associated with regional differences in entry may describe the industry base rather than entrepreneurial climate. This study finds that while industry mix explains a potentially large portion regional variation in entry, it does not radically alter the relative standing of the most highly ranked regions. Most of the factors commonly associated with the regional entrepreneurial climate remain significant after purging the data of industry mix effects. However, …
The Gettysburg Economic Review, Volume 6, Spring 2012,
2012
Gettysburg College
The Gettysburg Economic Review, Volume 6, Spring 2012
Gettysburg Economic Review
No abstract provided.
The Rise Of American Industrial And Financial Corporations,
2012
Gettysburg College
The Rise Of American Industrial And Financial Corporations, Elizabeth A. Laughlin
Gettysburg Economic Review
This paper identifies and analyzes the steps the United States took in its progression to an industrial nation. Launched by the merger movement in the late nineteenth century, vertical and horizontal integration lead to trusts and monopolies in a number of industries. Simultaneously, the labor market was undergoing a number of reforms with the deskilling of workers. The rise of big business was made possible through the growth of the financial sectors and companies such as J.P Morgan. The case study of The Standard Oil Co. highlights the wealth and power that robber barons such as J.D. Rockefeller held during …
Are All R&D Dollars Created Equal?: A Look At The Effect Of Federal Investment On Patent Success,
2012
Pepperdine University
Are All R&D Dollars Created Equal?: A Look At The Effect Of Federal Investment On Patent Success, Casey J. O'Neil
Pepperdine Policy Review
No abstract provided.
A Strategic Model For Ingo Accountability Systems,
2012
Portland State University
A Strategic Model For Ingo Accountability Systems, Sarah Elizabeth Wardwell
Dissertations and Theses
This thesis reconstructs the concept of International Non-Governmental Organization (INGO) accountability to beneficiaries through the development of a strategic model for INGO accountability to beneficiaries. It works through the history and arguments surrounding the rise of the debate around whether INGOs should be held accountable to their beneficiary populations. Unique definitions are developed for the terms and concepts related to this topic and a framework for understanding the strategic model for INGO accountability to beneficiaries is outlined: Accountable to whom? Accountable for what? Accountable how? A practical example of an internal assessment for measuring an INGO's accountability to beneficiaries is …
The Evolution Of The Music Industry In The Post-Internet Era,
2012
Claremont McKenna College
The Evolution Of The Music Industry In The Post-Internet Era, Ashraf El Gamal
CMC Senior Theses
The rise in the prevalence of the Internet has had a wide range of implications in nearly every industry. Within the music business, the turn of the millennium came with a unique, and difficult, set of challenges. While the majority of academic literature in the area focuses specifically on the aspect of file sharing within the Internet as it negatively impacts sales within the recording sector, this study aims to assess the Internet’s wider impacts on the broader music industry. In the same time that record sales have plummeted, the live music sector has thrived, potentially presenting alternative business models …
Economic Design Of Acceptance Sampling Plans In A Two-Stage Supply Chain,
2012
CUNY Bernard M Baruch College
Economic Design Of Acceptance Sampling Plans In A Two-Stage Supply Chain, Lie-Fern Hsu, Jia-Tzer Hsu
Publications and Research
Supply Chain Management, which is concerned with material and information flows between facilities and the final customers, has been considered the most popular operations strategy for improving organizational competitiveness nowadays. With the advanced development of computer technology, it is getting easier to derive an acceptance sampling plan satisfying both the producer’s and consumer’s quality and risk requirements. However, all the available QC tables and computer software determine the sampling plan on a noneconomic basis. In this paper, we design an economic model to determine the optimal sampling plan in a two-stage supply chain that minimizes the producer’s and the consumer’s …
A Bass Diffusion Model Analysis: Understanding Alternative Fuel Vehicle Sales,
2012
Claremont McKenna College
A Bass Diffusion Model Analysis: Understanding Alternative Fuel Vehicle Sales, Michael H. Shoemaker
CMC Senior Theses
Frank M. Bass developed the Bass Diffusion Model to predict how innovative consumer durable products diffuse through consumer markets. This thesis will use data from 1999-2011 to examine the applicability of the Bass Diffusion Model to the introduction of alternative fuel vehicles (AFVs) in the automobile market. The findings in this thesis indicate the Bass Diffusion Model fit the diffusion pattern exhibited by AFVs well, but failed to accurately forecast diffusion patterns outside a given range of data. This thesis investigates potential reasons for the inaccurate 'Out of Sample Forecast', and gives recommendations for directions of future research on AFV …
A Historical Review Of Five Of The Top Fast Food Restaurant Chains To Determine The Secrets Of Their Success,
2012
Claremont McKenna College
A Historical Review Of Five Of The Top Fast Food Restaurant Chains To Determine The Secrets Of Their Success, Alex Leon Lichtenberg
CMC Senior Theses
The primary goal of this paper is to critically examine five of the top nine US fast food chains to look at their history and to determine what factors have lead to their massive success. The companies that will be analyzed include: McDonald's, Taco Bell, Kentucky Fried Chicken, Domino's Pizza, and Subway. Similarities and differences of these companies are compared and contrasted throughout the paper and clearly demonstrate how each company has managed to capture and maintain major market share in their respective food categories. Areas that are examined range from product quality to to business models to consumer psychology. …
The Effect Of Executive Compensation On Firm Performance Through The Dot-Com Bubble,
2012
Claremont McKenna College
The Effect Of Executive Compensation On Firm Performance Through The Dot-Com Bubble, Maxwell J. Chambers
CMC Senior Theses
This thesis examines firm performance through the dot-com bubble through the lens of executive compensation. Hypotheses based on the theoretical literature of Bolton, Scheinkman and Xiong (2006) as well as Bertrand and Mullainathan (2001) in regards to management compensation in a speculative bubble motivate three regression models with differing market-cap-growth based dependent variables and specific compensation variables. Regression analyses test the models using public compensation and security data from S&P's Execucomp and Compustat databases. Synthesizing regression results show that stock option vesting schedules and executives' status on the board of directors may significantly affect firm performance through the dot-com bubble, …
