Avoiding the Pitfalls of Net Uniformity: Zero Rating and Nondiscrimination

The current debate over network neutrality has not fully appreciated how service differentiation can benefit consumers and promote Internet adoption. On the demand-side, service differentiation addresses the primary obstacle to adoption, which is the lack of perceived need for Internet service, and reflects the growing heterogeneity of consumer demand. On the supply-side, monopolistic competition has long underscored how product differentiation can create stable equilibria with multiple providers—notwithstanding the presence of unexhausted economies of scale—by allowing competitors to target subsegments of the overall market that place a higher value on particular services. Conversely, prohibiting service differentiation would restrict competition to price and network size, which are factors that favor the largest players. These dynamics are well illustrated by global enforcement patterns with respect to a practice known as “zero rating”, which permits subscribers to access certain content without having that traffic count against their data caps. Of the six countries that have brought enforcement actions against zero rating, only India has categorically banned the practice. The other five countries (the United States, Chile, Canada, Slovenia, and The Netherlands) have adopted a more nuanced approach. A case-by-case approach is consistent with the empirical literature on vertical integration and restraints and the well-established principles for determining when to impose per se illegality and when to apply the “rule of reason”. The U.S. Supreme Court’s antitrust jurisprudence also helps identify factors that militate against liability, such as the lack of market power, nonexclusivity, and nonproprietary services.     

The next stage of U.S. communications policy: The emerging embedded infosphere

The United States needs to reimagine the basic principles of its telecommunications and information policy to fit an emerging society in which networking and intelligence are embedded into an increasing number of everyday things which constantly monitor and measure our lives. This emerging environment is an always-on, ubiquitous, integrated system comprised of the Internet of Things, Big Data, Artificial Intelligence/Intelligent Systems and the Intercloud, which act together as a single system, referred to here as the “Embedded Infosphere” (EI). This development is driving the latest stage – the third – in the evolution of U.S. communications policy.Each of the components of the EI presents unique challenges, but the greater concern is all of them acting in concert. These developments bring into focus many topics that have been outside the traditional communications policy envelope, and exceed the portfolios of existing agencies and institutions. This article envisions a new “EI policy space,” grounded in established societal values, and built on the experience of the previous stages.There are appropriate policy responses to each of the challenges, but these responses need to be seen in a holistic perspective, as they are all interconnected. Many of the issues such as privacy, security, consumer protection, and data stewardship are common across several elements. The larger goal is to establish a framework for an integrated policy structure which can address unpredictable emergent conditions, while allowing markets to flourish without unduly burdensome regulations, restrictions or uncertainties.This articles suggests a high-level analytical framework of criteria against which proposed EI policies can be measured. While there may be no “perfect” policies, some may be better (or worse) than others. It also offers a political process designed to incorporate the concept of the EI into national policy thinking. This approach should be implemented through a series of steps and should provide flexibility for development. The initial step is a process by which the EI can be acknowledged, its development analyzed, and the national interests institutionalized. The U.S. Senate has already initiated this process with the pending “DIGIT” Act, designed to bring together the core federal stakeholders and open a policy discourse which will be expanded over time to other key stakeholders. This should lead to the development of a national EI strategy.Since the EI is progressively global, the article suggests how both the normative and regulatory dimensions can be approached in the global context. It raises the possibility of a restructured ICANN “Empowered Community” as a possible venue for developing policies and recommendations in this area. It notes that since global unanimity is unlikely, non-governmental regimes will likely develop to address the unresolved policy interstices.     

Supplier relations and management: A survey of Japanese,Japanese-transplant,and U.S. auto plants

This article presents the results of a questionnaire survey sent to a sample of automobile manufacturers in the United States and Japan (including Japanese-managed plants in the United States) during the spring of 1990. The data support observations that Japanese and U.S. practices tend to differ in key areas and Japanese suppliers perform better in dimensions such as quality (defects) and prices (meeting targets, reducing prices over time); and that Japanese-managed auto plants established in the United States have, in general, adopted Japanese practices and receive extremely high levels of quality from Japanese as well as U.S. suppliers. These findings provide evidence that Japanese practices and performance levels are transferable outside Japan and suggest that considerable improvements are possible for U.S. suppliers supplying U.S. auto plants. In addition, the survey indicates that U.S. firms have adopted at least some practices traditionally associated with Japanese firms, apparently reflecting some convergence toward Japanese practices and higher performance levels in supplier management.     

Lessons to Learn? Rückblick auf 10 Jahre „Schiefergasrevolution“ in den USA und Bestandsaufnahme für Europa

A decade ago, the “shale gas revolution” started in the United States. An increased natural gas production turned the U.S. from a highly import depending gas economy to an exporter of gas. This supply increase led to decreasing gas prices, which were followed by decreasing electricity prices. In contrast to Europe, this price development was the driver for an increased industrial production in the U.S.. This development was enabled by technical progress, namely the advanced usage of hydraulic fracturing, the so-called “fracking”. However, this gas production method could cause significant environmental impacts, such as ground water pollution or earthquakes. Most European governments are driven by environmental concerns, so that it is rather unlikely that a similar “shale gas revolution” will occur in Europe.     

From the Drive System to the Capital-Labor Accord: Econometric Tests for the Transition between Productivity Regimes

This article explores the emergence and consolidation of a new system of labor relations and productivity “regimes” in the United States in the 1930s and 1940s. Was there a clearly identifiable transition in the U.S. between the “drive system,” which had structured labor relations after the turn of the century, and the “capital-labor accord” that came to dominate the organization of production after World War II? This article begins with a review of comparative international data. The U.S. economy achieved a major surge in relative productivity growth rates between the late 1930s and early 1950s, not attributable exclusively to wartime production itself. The hypothesis that U.S. productivity growth accelerated beginning in the late 1930s as a result of the institutionalization of a new set of production relations, the capital-labor accord, which formed one of the principal buttresses of the postwar social structure of accumulation (SSA), is formally tested. The econometric analysis supports the conclusion that this new set of production relations first took hold during the 1930s and 1940s, and that it can be distinguished clearly from the drive system prevailing from the turn of the century through the 1920s. It thus provides a formal econometric basis for tracing the transition between productivity regimes.     

The evolving 5G case study in spectrum management and industrial policy

Even before the International Telecommunication Union (“ITU”) reaches consensus on spectrum allocations for fifth generation wireless technologies (“5G”), commercial ventures scramble to offer new equipment and services. Expediting 5G wireless service can benefit consumers and businesses at the risk of stressing the traditional process of spectrum planning that combines study, dialogue and consensus building at ITU conferences.This paper explains why most nations refused to endorse key United States 5G spectrum allocation proposals at the ITU’s, 2015 World Radio Conference. U.S. representatives underestimated the time needed for consensus building, despite increasing demand for wireless video and the evolving Internet of Things. Other contributing factors include U.S. support for treating spectrum like property, use of “incentive auctions” to clear broadcast television spectrum with unprecedented speed and enough existing wireless spectrum allocations in most nations.The paper concludes that the U.S. cannot expect faster frequency reallocations, particularly when it and other nations pursue matters having little to do with spectrum optimization. The paper offers recommendations on best practices for improving the consensus building process.     

Speaking of forgetting: Analysis of possible non-EU responses to the right to be forgotten and speech exception

The right to be forgotten is contentious partly because it highlights the difference between U.S. and E.U. prioritization of information privacy and freedom of expression. Recently, a moderate amount of research has been undertaken to explore the conceptual issues underlying the right to be forgotten and how the right conflicts with the U.S. first amendment, but little has been written about its impending implementation and interoperability issues. While this is an E.U. Data Protection Regulation proposing to grant rights only to E.U. citizens, the world has a stake in this right for a number of reasons. This article will analyze the options for non-E.U. countries and data controllers, namely the U.S., to react to the establishment of such a right, now called “The Right to Erasure”. These options are the following: (1) adopt the same right to erasure for themselves, (2) ignore right to erasure claims, (3) comply with erasure take down requests, or (4) seek to establish a modified version of the right to erasure. In assessing these options, the article will first address the reality of a right to erasure under U.S. law. Second, it will discuss compliance and jurisdictional issues if the right is ignored. Third, the article will look at the impact of full acceptance of the take-down regime, focusing on the potential chilling effects and abuse. Finally, it will propose that non-E.U. countries encourage a right to erasure that is less disruptive: a right to erasure that allows data subjects to directly request removal of data held privately by data controllers and a right to oblivion for publicly available information that is enforced similarly to defamation claims, requiring a court order.     

The evolving 5G case study in United States unilateral spectrum planning and policy

This paper tracks increasingly aggressive initiatives by the United States government to reallocate spectrum on an expedited and unilateral basis well before conclusion of inter-governmental coordination. Rather than embrace the customary commitment to achieve consensus on global spectrum allocations at the International Telecommunication Union (“ITU”), the Federal Communications Commission (“FCC”) has auctioned off large blocks of frequencies for the next generation (“5G”) of wireless services.The FCC might have framed its first 5G auction, reassigning Ultra High Frequency (“UHF”) spectrum, as a one-time deviation from compliance with long standing, intergovernmental coordination procedures. These frequencies have ideal signal propagation characteristics and the Commission could use financial incentives—unavailable in most nations—to expedite “repacking” by incumbent broadcasters willing to move, share or abandon spectrum in exchange for ample financial compensation. However, the FCC has continued to auction off 5G spectrum on grounds that it must find ways to abate an acute shortage of wireless bandwidth and doing so will regain or maintain global leadership in wireless technologies. This paper offers a critical rebuke to unilateral spectrum management, because the short-term benefits expected by the U. S. government likely will be offset by countervailing harms to 5G manufacturers, carriers and consumers. The paper tracks fractious preparation for the ITU's 2019 World Radio Conference by the U.S. delegation and the mixed record achieved there. Additionally, the paper explains how injecting trade, industrial policy and national security issues at the ITU can trigger more delays and disputes, including possible retaliation by nations displeased with U.S. efforts to subvert traditional technology optimization goals.A worst case scenario has the ITU deadlocked and unable to reach closure on “mission critical” spectrum planning issues at World Radio Conferences, convened every four years. The paper concludes that costs and likely challenges to the efficacy and legitimacy of the ITU will reduce the benefits accruing from the FCC's unilateral, spectrum planning campaign.     

Willingness-to-pay for natural,organic, and conventional foods: The effects of information and meaningful labels

Vague food labels and distorted product claims have persisted in the “natural” food industry, while organic claims can be certified by the U.S. Department of Agriculture (USDA). Using experimental methods and a sample of randomly selected subjects, we test food label and information treatment effects on subjects' willingness-to-pay (WTP) for organic, “natural,” and conventional foods. Random nth-price auctions are used to elicit WTP after subjects received one of five randomly assigned information treatments. We find large information effects, including asymmetric cross-market effects for natural and organic foods. Perhaps surprising is that organic premiums increase in response to subjects seeing the “natural” foods industry's perspective on its products. Demographics effects are also important. The results have practical implications for natural and organic food marketing and valuing products where there are vague claims about their attributes.     

出口企业反倾销中非市场经济地位问题应对策略

2009年,欧美等国对我国进行多起反倾销、反补贴调查,严重影响我国出口企业经济恢复和发展。非市场经济地位问题是影响反倾销诉讼成败的关键因素之一。本方试阐述我国被认定为非市场经济国家法律依据;挖掘反倾销中非市场经济地位理论缺欠;提出解决非市场经济地位问题措施和建议。     

Forecasting business needs in the telephone market

The last decade has seen substantial changes in the environment in which U.S. telephone companies operate. As regulated monopolies, telephone companies are experiencing effective competition in several areas of their operations. Additionally the consumerist movement has made regulatory agencies more aware of the requirements of the numerous markets served by the utilities. With “good” telephone service available at reasonable cost throughout the United States, users and telephone companies are more aware of secondary product attributes such as style (decorator sets) and auxiliary features (the ability to place one caller on hold and answer another call). These changes reflect the evolution of the marketing function within the telephone companies and the increasing use of marketing research for product line expansion and sales forecasting. What has caused this shifting perspective on the function of marketing? How have the utilities responded? The following discussion deals with these questions as well as the ways in which marketing research has aided the telephone company in forecasting sales to business customers.     

Managing in the New World of Manufacturing

It is widely accepted that over two-thirds of the average annual increase in per capita wealth of the United States is attributable to technological change as it becomes embodied in new products, new capital equipment and new production methods. Technological change is the result of research and development (R&;D) carried out by the scientific and engineering communities. Surprisingly, since the first issue of The Engineering Economist appeared in 1966, only one article has addressed R&;D as a public policy issue. Our profession distinguishes itself from that of conventional economists in that we are both economists and technologists. Apropos “going to the next level,” it is time to take a broader view of our professional role. Technology policy is defined as the government's decisions of how and whether to intervene in private R&;D and its provision of funds for public R&;D. This article addresses one instrument of technology policy: the research and experimentation (R&;E) tax credit. Using a traditional engineering economics framework, we evaluate the potential effectiveness of the tax credit in stimulating R&;D. Our general conclusion is that the R&;E tax credit is a weak incentive for stimulating R&;D.     

From Experience Dreams to Market: Crafting a Culture of Innovation

Do certain common principles guide uncommonly innovative companies down the risk-riddled road to value creation? Or do successful innovators break boldly through the barriers to new product development along pathways of their own unique making? Karen Anne Zien and Sheldon Buckler discern a strikingly consistent model of how companies craft and sustain cultures in which innovation is nurtured, rewarded, even demanded. An article by the authors in the September 1996 issue of JPIM recounts seminal tales from the cultures of innovation consciously nourished by 12 leading-edge corporations in the United States, Europe, and Japan. Gathered through an extensive series of interviews with key personnel in the management, technical, manufacturing, and marketing divisions of each firm, the stories revealed seven traits widely shared from one company to the next, irrespective of business focus, geography, or nationality. These traits, as discussed in this article, not only serve to reconcile the culturally contradictory demands of the three critical stages of innovation—the “fuzzy front end,” the product development process, and marketplace operations—but also condition the company as a whole to sustain its innovative capacity over time. The principles at work in highly innovative companies encompass corporate as well as individual attitudes and behaviors. On the one hand, company leaders demonstrate in every decision, action, and communication that innovation propels profitability. So, for the CD project at Sony, the R&D general manager heeded “a voice from above that does not question the possibilities and absolutely believes” in the potential of the enterprise. On the other hand, actively helping individuals create a linkage between their “work life” and longer term “life work” is a crucial step in generating an environment where innovation and high productivity flourish together. Thus, a divisional chief executive at ICI/Imperial Chemicals Industries recognizes the need to “create an environment where people will work at what they are best at doing and what they like doing best.” Although the trail to successful innovation inevitably follows the unique contours of any company's environment, some universal guideposts point the way.     

中美经贸关系的政治因素分析

文章从政治角度对近年来的中美经贸摩擦进行了分析。美国社会占主导地位的观点认为,中国必然走向超级大国,美国必须遏制中国的经济发展。在此背景下,美国通过将中美经贸问题政治化并通过外交施压等政治手段,以达到减少美中贸易逆差、降低高失业率和逼迫人民币升值的目的。在政治手段不奏效的情况下,又采取了反倾销和动用＂301条款＂等经济手段逼中国就范。这些问题仍将是2009年中美经贸关系的热点。只要美中贸易逆差存在,美国就会不断使用政治、经济手段对中国施压。中国应从政治和经济两方面做好有针对性的长期准备。     

Eigentumsentflechtung,deep-ISO,der dritte Weg — wohin führt die Reise der Europäischen Energiemärkte?

This paper discusses vertical unbundling of networks from the commercial businesses in the European energy markets. The current status quo in the political field in Brussels is to implement a choice between three options: ownership unbundling, the “deep-ISO”, the “third way”. The “third way” is the strengthening of the current unbundling regulations, but will change hardly anything in the industry structure. The “deep-ISO” requires the separation of system operations into an independent entity, whereas transmission ownership does not change hands and thus possibly remains in one hand with the power plants. If the ISO decides and orders network investment, we speak of a “deep-ISO”. The more controversial proposal is ownership unbundling. A social-cost-benefit-analysis of the German transmission system operators (Brunekreeft, 2008) suggests that the likely overall effect for social welfare is slightly positive, but effects are small.     

Technical Note: New Depreciation Rules from the Job Creation and Worker Assistance Act of 2002 and their Impact on Capital Investment

United States President George W. Bush recently signed an economic stimulus bill into law entitled the Job Creation and Worker Assistance Act. The law issues a number of directives aimed at increasing corporate capital expenditures in hopes of revitalizing a sagging economy. In this article, we focus on the increased amount of depreciation allowed in the first year following a qualifying capital investment. Specifically, an “additional” 30% of depreciation is allowed in the first year for ail personal property assets (20-year asset classes or less). This is clearly a significant change. Here, we derive “new” depreciation tables for personal property classes with the adjusted rule, both for MACRS and AMACRS, and illustrate the impact on capital investment decisions.     

Harmonizing regulatory regimes for the governance of patient-generated health data

Patient-generated health data (PGHD), created and captured from patients via wearable devices and mobile apps, are proliferating outside of clinical settings. Examples include sleep trackers, fitness trackers, continuous glucose monitors, and RFID-enabled implants, with many additional biometric or health surveillance applications in development or envisioned. These data are included in growing stockpiles of personal health data (PHI) being mined for insight by health economists, policy analysts, researchers, and health system organizations. Dominant narratives position these highly personal data as valuable resources to transform healthcare, stimulate innovation in medical research, and engage individuals in their health and healthcare. Large tech companies are also increasingly implicated in these areas, through mobile health application sales and data acquisitions. Given the many possible uses and users for PGHD, ensuring privacy, security, and equity of benefits from PGHD will be challenging. This is due in part to disparate regulatory policies and practices across technology firms, health system organizations, and health researchers. Rapid developments with PGHD technologies and the lack of harmonization between regulatory regimes may render existing safeguards to preserve patient privacy and control over their PGHD ineffective, while also failing to guide PGHD-related innovation in socially desirable directions. Using a policy regime lens to explore these challenges, we examine three existing data protection regimes relevant to PGHD in the United States that are currently in tension with one another: federal and state health-sector laws, regulations on data use and reuse for research and innovation, and industry self-regulation of consumer privacy by large tech companies. We argue that harmonization of these regimes is necessary to meet the challenges of PGHD data governance. We next examine emerging governing instruments, identifying three types of structures (organizational, regulatory, technological/algorithmic), which synergistically could help enact needed regulatory oversight while limiting the friction and economic costs of regulation that may hinder innovation. This policy analysis provides a starting point for further discussions and negotiations among stakeholders and regulators to do so.     

DETERMINATION OF ECONOMIC VALUE ADDED FOR A PROPOSED INVESTMENT IN NEW MANUFACTURING

This paper discusses a measure for estimating the wealth creation potential of capital investments in manufacturing. The measure, called “Economic Value Added,” has recently become popular in the United States and can be derived from an after-tax analysis of cash flows generated by a capital investment. A proposed investment in manufacturing capacity is analyzed to illustrate the after-tax cash flow calculations required to determine its EVA potential.     

Total and per capita value of food loss in the United States – Comments

There seems to be high interest in the question of food loss and food waste. The comments take up the article in Food Policy on “Total and per capita value of food loss in the United States”. It is argued that the methodology of calculating the food loss is questionable. Consequently, the estimates are highly inflated; therefore the authors do not provide accurate information for policy makers as intended.     

Evaluating Wisconsin dairy producer compliance and potential eligibility for international markets under existing European Union and United States Grade “A” bulk tank somatic cell count compliance criteria

A proposal to lower the bulk tank Somatic Cell Count (SCC) maximum for United States of America (US) Grade “A” milk producers was not adopted by the National Conference on Interstate Milk Shipments in 2011 or 2013. The proposal would have made the US Grade “A” limit consistent with many other international standards, including that of the European Union (EU). Some US states, however, have proactively adopted their own SCC limit to mirror the EU limit. The purpose of this study was to analyze the impacts on Wisconsin dairy producers if Wisconsin should adopt the current EU limit and compliance criterion. Analyses were done on SCC results for Wisconsin Grade “A” and Grade “B” dairy producers reported each month to the Wisconsin Department of Agriculture, Trade and Consumer Protection (WDATCP) during January 1, 2009–December 31, 2012. Results were evaluated against the current US Grade “A” and EU compliance criteria for SCC and the percentage of (producer × month) combinations in compliance was determined. If the current EU SCC compliance criterion was in place, 86.7–94.3 and 64.3–77.3% of Wisconsin Grade “A” and “Grade “B” (producer × month) combinations, respectively, would have been in compliance for the years 2009–2012. Compliance of Wisconsin Grade “A” and Grade “B” producers with the existing US SCC compliance criterion during the same period was 99.3–99.7% and 87.9–93.9% (producer × month combinations) respectively. An analysis of a subset of Wisconsin Grade “A” producers indicated that smaller-volume producers were less likely than larger-volume producers to meet the EU criterion.