Regulation of the Canadian cable industry: A comparative analysis

The Canadian and US cable television industries have similar economic characteristics and market structures, yet each has a distinct mix of programme services and a different history of development. These differences are largely due to a different economic status in each country, cultural peculiarities and contrasting theories of regulation. The US regulatory environment is gradually moving toward a laissez-faire market approach while in Canada more traditional and formal rules still apply which constrict economic behaviour. This difference in regulatory philosophy is most evident in the treatment of pay television. Canadian regulatory policy has given rise to rules which are at variance with economic incentives and efficiency.     

ROBUSTNESS OF PRODUCTIVITY ESTIMATES*

Researchers interested in estimating productivity can choose from an array of methodologies, each with its strengths and weaknesses. We compare the robustness of five widely used techniques, two non‐parametric and three parametric: in order, (a) index numbers, (b) data envelopment analysis (DEA), (c) stochastic frontiers, (d) instrumental variables (GMM) and (e) semiparametric estimation. Using simulated samples of firms, we analyze the sensitivity of alternative methods to the way randomness is introduced in the data generating process. Three experiments are considered, introducing randomness via factor price heterogeneity, measurement error and differences in production technology respectively. When measurement error is small, index numbers are excellent for estimating productivity growth and are among the best for estimating productivity levels. DEA excels when technology is heterogeneous and returns to scale are not constant. When measurement or optimization errors are nonnegligible, parametric approaches are preferred. Ranked by the persistence of the productivity differentials between firms (in decreasing order), one should prefer the stochastic frontiers, GMM, or semiparametric estimation methods. The practical relevance of each experiment for applied researchers is discussed explicitly.     

Productive efficiency and firm exit in the food sector

This work examines the effects of productive efficiency on the survival of firms in the Greek food sector. Technical and scale efficiency scores are computed within a data envelopment analysis (DEA) framework and are used as explanatory variables in a parametric (Weibull) survival model. High technical efficiency increases the median survival time and lowers the hazard rate of exit. As the scale efficiency of a firm operating either at increasing or decreasing returns to scale approaches one (1), its theoretically maximum value, the expected median survival time, is maximized for all types of exits. Developments in biotechnology, the evolution of alternative food supply networks, innovations in the food sector and competition policy are likely to affect technical and scale efficiency of food manufacturing firms. Results unraveling the effects of technical and scale efficiency on the survival of firms in the food sector are of particular relevance to food policy makers.     

Evaluating the impact of individual fishing quotas (IFQs) on the technical efficiency and composition of the US Gulf of Mexico red snapper commercial fishing fleet

This study examines the impact of individual fishing quotas (IFQs) on the technical efficiency (TE) and composition of the Gulf of Mexico red snapper commercial fishing fleet. Employing a parametric stochastic distance frontier framework we find that IFQs improved the TE of the vertical line and bottom longline fleets. Our results suggest that the observed TE gains were mainly driven by the retirement of less efficient vessels and, to a lesser extent, by efficiency gains of the remaining vessels. We also document changes in output and input distance elasticities and in returns to scale following the introduction of IFQs. The paper also investigates the impact of regulations and weather on productivity and the effect of crowding on TE. Policy implications stemming from these results are also discussed.     

The stalemate of cable digital switchover: A study of competition effects and deregulation

This paper addresses the phenomenon of delayed cable digitization in Taiwan and reports the results of a longitudinal analysis, determining that (1) inter-platform competition, primarily from internet protocol television (IPTV), generates a strong and positive impact on the digitization of cable service after it acquires numerous customers; (2) the installed cable base induces economies of scale that increase its digital penetration; (3) the overbuild of the equivalent-size rivalry can increase digital adoption, whereas unequal-sized competition might reversely decrease it; and (4) the monthly flat fee charged to customers does not influence digital adoption. In addition, this paper presents a discussion on the policy instruments derived from econometric results. Although repealing the horizontal integration cap in the cable TV industry could generate economies of scale, doing so may encourage monopolization over several franchises. The efficacy of intra-platform competition is reserved only for certain cases. Combining the results of these analyses reveals that inter-platform competition most effectively stimulates cable operators’ digital conversion. Hence, regulators should create a level playing field among various TV platforms, such as equal programming access and open standards, to ensure a high degree of cable digitization     

Optimal Concentration and Deadweight Losses in Canadian Manufacturing

When economies of scale are impontant, there may be too many firms in a market to effectively exploit these scale economies. Although more firms imply reduced market power, this may not offset the adverse impact of higher unit cost. We explore this trade-off by estimating for 107 Canadian industries optimal concentration, this being the concentration that maximizes, for given firm conduct, producers and consumers' surplus. We then calculate deadweight losses as the difference between total surplus at optimal concentration and total surplus at current concentration levels. Among the conclusions are that the majority of industries have concentration that is too low.     

Optimal productive size of hospital's intensive care units

Authors of past studies focusing on returns to scale in hospitals proffered mixed results. These seemingly contradictory findings have probably arisen due to different methodological approaches (parametric or non parametric), different aggregation levels of analysis (hospital/department/units), nature of data (quantity data or economic values) and also due to technological improvements operating in hospitals and case mix adjustment to account for the severity of patients' conditions.In this paper, we apply a new approach to determining returns to scale for single and multi-output homogenous technologies, which is different from traditional DEA models. Our approach is characterized by (1) a non parametric approach based on quantity data that allows us to avoid assumptions on cost minimization or profit maximization behavior of hospitals, on relevancy of economic values for hospitals (costs, revenues and prices) and on a priori specification of the health care production function, and (2) an analysis of optimal productivity size at both the disaggregated level of intensive care units and at the aggregated hospital level. The methodological advantage is that we can unambiguously define increasing returns to scale, which is lacking in more traditional non-parametric approaches because of the convexity assumption imposed earlier. We apply the methodology to intensive care units (cardiac care (CICU), medical/surgical care (MSICU), pediatric care (PCIU) and neonatal care (NICU), which are operating in 235 general short term hospitals of Florida state in 2005. We also consider the hospital level by analyzing the general activity of the hospitals in our population.To summarize our findings, we find that 60% of intensive care units are operating at increasing returns to scale, 10% are operating at optimal productive size and 30% are characterized by decreasing returns to scale. In average intensive care units operate 40% under the optimal size. The policy implication of this result should be an increase of the size of all types of intensive care units to meet productivity gains. The picture is completely reversed at the aggregate hospital level. Here decreasing returns to scale prevail for 65% of hospitals while only one fourth are operating at increasing returns to scale. In average hospitals' number of beds should decrease by 40% to reach the optimal productivity size. One policy solution may include reallocating resources from general beds to the more specialized beds.     

Will choice be extended by cable?

An article by Gareth Locksley in the June 1983 issue of Telecommunications Policy argued that a major benefit of cable TV for the UK viewer would be increased choice. In this response, Richard Collins questions wheather real choice will be extended by cable and examines the syllogism put forward by Locksley: cable = competition = efficiency = progress.     

Conceptualizing and measuring capabilities: methodology and empirical application

This paper attempts to operationalize and measure firm‐specific capabilities using an extant conceptualization in the resource‐based view (RBV) literature. Capabilities are conceived as the efficiency with which a firm employs a given set of resources (inputs) at its disposal to achieve certain objectives (outputs). We expand on extant theoretical literature on relative capabilities, by delineating the conditions that have to be met for relative capabilities to be measured non‐tautologically. We then proceed to suggest an estimation methodology, stochastic frontier estimation (SFE), that allows us to infer firm capabilities. We illustrate this technique with a sample of firms in the semiconductor industry. Our findings underscore the heterogeneity in R& D capability across firms in this industry, as well as the persistence in these capabilities over time. We also find that the market rewards high R& D capability firms, in that they show the highest average values of Tobin's q. Copyright © 2004 John Wiley & Sons, Ltd.     

Productivity,scale economies and technical progress in the Canadian life insurance industry

The purpose of this paper is to examine the productivity performance of the Canadian life insurance industry. We construct a measure of total factor productivity for life insurance companies and then attempt to determine the main sources of improved productivity during the period 1961–1977 by pooling time-series and cross-section data from 31 firms. We conclude that for the industry as a whole technical progress was by far the most important source of productivity growth, while scale economies, on balance, had a marginally negative impact.     

Efficiency and Firm Ownership: Some New Evidence

The paper investigates the effect of state ownership on efficiency of firmsusing an econometric model that allows for the separation of technical from allocative efficiency in adynamic setting. The estimation results, based on a sample of international airlines, suggest that state ownershipis associated with lower technical and allocative efficiency. State ownership's effect on technical efficiencyis mainly a dynamic one – lowering the rate of cost decline, whereas its effect on allocativeefficiency is static – raising the level of costs. Thus lower technical, rather than allocative, efficiency isthe main reason for state-owned firms to be less efficient than their private counterparts.     

Estimating scale economies of the wireless telecommunications industry using EVA data

This paper proposes a new estimation method of total cost and average cost curves and applies it to the telecommunications industry. The method is more flexible and entails less hassle for data collection than traditional methods. The results show that the long-run average cost (LRAC) curve is downward sloping, revealing the presence of economies of scale in production. The two largest Korean mobile network operators are realizing full economies of scale, while the smallest operator is not. Finally, the paper recommends three policy alternatives that the Ministry of Information and Communication of Korea can draw on to increase efficiency in the Korean mobile telecommunications market.     

The Moderating Effect of Environmental Uncertainty on New Product Development and Time Efficiency*

This empirical study examines the influence of environmental uncertainty on industrial product innovation. The present study addresses what is believed to be a shortcoming in the new product development literature and explores potential effects of environmental uncertainty on the development process, project organization, and on project timeliness with a sample of development projects in two countries, Canada and Australia. When looking at the combined sample of 182 completed projects, this study finds that the perceived market‐related project environment has a direct and positive impact on time efficiency. Further, this research finds that a higher degree of technological uncertainty moderates the relationship between development process, project organization and time efficiency. Consequently, innovating companies may benefit by adapting some of their development approaches to different environmental conditions and to varying degrees of uncertainty. However, when examining country‐specific effects, the results change quite significantly. In particular, the findings indicate that environmental uncertainty in the Canadian sample neither directly impacts time efficiency, nor does it have any moderating effect. Instead, technical proficiency in the development process, project team organization, and process compression appear to be viable strategies to increase time‐efficient development. In contrast, the results of the Australian study suggest that perceived market and technological uncertainty impact time efficiency. In particular, under conditions of technological unpredictability, project team organization increases time efficiency, whereas process compression appears to decrease time‐efficient product development. However, process compression seems to be a viable strategy in environments characterized by lower technological uncertainty. The results also point to the importance of disaggregating data when studying product development processes across countries.     

低碳经济下黄金行业的发展战略研究

随 着各国政府纷纷采取不同的政策措施来发展低碳经济,低碳经济已经逐渐成为我国适应国际趋势的战略选择。黄金作为一种稀缺贵金属,具有很好的抗腐蚀性、延展性和稳定性。其冶炼和加工都需要较高的工艺和技术,同时也会产生大量的污染物。为了顺应我国低碳经济发展的要求,黄金行业应该寻求一条有效的“低碳”之路。     

基于VRS包络模型的工业企业对标实证研究

以中国汽车制造业32 家上市企业为例, 本文将产出为导向的可变规模收益作为回归假设，利用VRS 径向DEA 模型确定无效企业应当依照“投入- 产出”矩阵中对标的效率企业。研究表明：（1）在研究样本中，15 家企业能够成为参考标杆的效率企业。（2）在规模效率方面，10 家汽车企业规模收益不变（CRS），19 家企业规模收益递增（IRS），3 家企业处于规模收益递减（DRS）；（3）通过分析32 家上市企业投入和产出的松弛变量，明确17 家无效企业各指标的效率的改进空间。本研究为上市企业效率评级提供了一种方法，也为中国资本市场的并购提供一个框架。     

Strategic partnerships in Canadian advanced materials

The analysis of technical (R&D) collaborations in Canadian advanced materials industries show strong interactions between producers, users, government laboratories and universities. Management patterns show the predominance of flexible governance structures: long-term agreements instead of joint ventures, two-member partnerships, and collective management. Most of the alliances involve two or three partners, usually a producer, a user and/or a university or government laboratory. Advantages (gaining complementary assets, accelerated innovation, financing and R&D economies of scale among others) outnumber difficulties, thus bringing some evidence against the usefulness of the transaction cost approach to the study of technical alliances in advanced materials. The vast majority of the partnerships were entirely domestic (i.e. did not include foreign partners). The study was conducted on a sample of 30 Canadian private firms (both producers and users) and 6 government corporations and public research laboratories.     

电缆X射线检测设备小型化研究

提出用一种小型化的X射线检测设备对电力电缆进行检测的方法,以解决传统X射线设备效率低下的问题。为了验证这种方法的可行性,研究了小型X射线机的辐射剂量,利用小型X射线机和IP板的组合对电缆进行了X射线透射能力和成像质量的试验,并利用小型化X射线检测设备对被模拟破坏的电缆进行透照试验。结果表明:小型化脉冲X射线检测设备辐射剂量比较小,成像效果比较理想,可以在适当的现场用其提高工作效率。     

Performance of French intensive care units: A directional distance function approach at the patient level

By using a novel adaptation of the free-disposable hull analysis of productivity, we assess the medical and technical efficiency of patient care in 25 Parisian intensive care units (ICUs) during 2000. The robust free disposable hull (RFDH) as defined by [Cazals et al., 2002. Nonparametric frontier estimation: a robust approach. Journal of Econometrics 106, 1–25] reduces the impact outliers may have on findings by employing Monte-Carlo techniques and repeated sample selection. Among our key findings, there was no overall significant correlation between medical and technical efficiencies for all the ICUs, therefore performing well in one does not guarantee good performance in the other. We also found that over 80% of inefficiency is concentrated in less than 20% of the sampled patients.     

Regulatory options for cable TV in the UK

In this article the alternative methods of regulating the cable TV industry are compared in terms of efficiency and consumer welfare. The effectiveness of each regulatory option in limiting any market power that cable operators may be able to exercise is considered in a framework which recognizes that both the market and government regulations are imperfect, costly and often do not operate in the public interest.     

Synergistic valuations and efficiency in spectrum auctions

In spectrum auctions, bidders typically have synergistic values for combinations of licenses. This has been the key argument for the use of combinatorial auctions in the recent years. Considering synergistic valuations turns the allocation problem into a computationally hard optimization problem that generally cannot be approximated to a constant factor in polynomial time. Ascending auction designs such as the Simultaneous Multiple Round Auction (SMRA) and the single-stage or two-stage Combinatorial Clock Auction (CCA) can be seen as simple heuristic algorithms to solve this problem. Such heuristics do not necessarily compute the optimal solution, even if bidders are truthful. We study the average efficiency loss that can be attributed to the simplicity of the auction algorithm with different levels of synergies. Our simulations are based on realistic instances of bidder valuations we inferred from bid data from the 2014 Canadian 700 MHz auction. The goal of the paper is not to reproduce the results of the Canadian auction but rather to perform “out-of-sample” counterfactuals comparing SMRA and CCA under different synergy conditions when bidders maximize payoff in each round. With “linear” synergies, a bidder's marginal value for a license grows linearly with the total number of licenses won, while with the “extreme national” synergies, this marginal value is independent of the number of licenses won unless the bidder wins all licenses in a national package. We find that with the extreme national synergy model, the CCA is indeed more efficient than SMRA. However, for the more realistic case of linear synergies, SMRA outperforms various versions of CCA that have been implemented in the field including the one used in the Canadian 700 MHz auction. Overall, the efficiency loss of all ascending auction algorithms is small even with high synergies, which is remarkable given the simplicity of the algorithms.