Potential competition and the factors influencing banking concentration

Multiple regression analysis is used to study the factors influencing market concentration in urban banking markets. The results indicate that independentde novo entry and shifts in population from the central city to the suburbs can be important deconcentrating factors in urban banking markets. In terms of the potential competition doctrine, the results suggest that attractive banking markets are likely to attract enough actual and potential entrants to mitigate any problems associated with a leading bank acquisition by a potential entrant. On the other hand, potential competition is more likely to be an issue in less attractive banking markets where the probability of entry is low.     

A note on vertical market foreclosure

The judicial fear of vertical market foreclosure has been criticized severely in the academic literature. The focus of this criticism isnot that foreclosure is impossible; rather, it is that foreclosure is not a profitable business strategy. In this note, we show that this criticism is not valid under conditions of partial ownership. If effective vertical control can be achieved with partial ownership, vertical market foreclosure can be used to increase the partial owner's profits. We use theduPont (GM) litigation as a vehicle to explore this point.     

The influence of market structure on technological performance in the food-manufacturing industries

This paper tests the effect of firm and market structure variables on the rate of R&D investment by food processing firms. While the estimated relationship is consistent with the hypotheses of Schumpeter and Galbraith at small firm sizes and small-to-moderale concentration levels, above these critical values expected firm R&D increases at a decreasing rate with firm size and decreases with market concentration. The second part of this paper examines the origins of process patents closely related to six food industries. On average U.S. firms outside the industry, foreign firms, and individuals were each assigned more food-industry patents than were U.S. food processing firm. These findings place the public policy interpretation of observed relationships between market power and firm technological performance into a broader perspective. Even if a reduction in market concentrationn reduced R&D originating within a food industry, this decrease might bede minimus relative to technological changes, originating outside the industry.     

Discounting Indices Proposed for Capital Investment Evaluation: A Further Examination

A recent publication [2 Bernhard , Richard H. , “ A Comprehensive Comparison and Critique of Discounting Indices Proposed for Capital Investment Evaluation ,” The Engineering Economist , Volume 16 , Number 3 , Spring 1971 .[Taylor &; Francis Online] , [Google Scholar]] in this journal presented a comprehensive comparison and critique of discounting indices proposed for (i) the examination of whether a proposed independent project should be accepted and (ii) selection of a project from a set of mutually exclusive projects. The present paper examines procedures available in the literature of engineering and managerial economics and in practice for selecting projects from a given number of proposed capital investment projects, if a given capital constraint does not permit the undertaking of all proposed projects. It appears that the present state of the art is subject to much controversy and confusion. The ensuing presentation intends to rectify this situation. In addition, a procedure for the above selection problem is developed. Usage of this procedure is recommended for the many policy makers who are continually faced with the trade-off between elaborate methods on the one hand and cursory /approximations on the other.     

Perspectives of authenticity: implementation in technology education

To meet the intentions of the New Zealand Curriculum 2007 teachers must critically reflect on their role and their idea of what defines ‘best practice’ for teaching and learning in the twenty-first century. The teacher’s role has changed considerably over time. There is now, more than ever, a need for much greater transparency, accountability and collaborative practice within education. Famous philosophers and theorists including Plato, Rousseau and Dewey have expounded ideals of authenticity and authentic engagement, but it is only with the spread of constructivism that authenticity has gained more favour. The authors will investigate perspectives of authenticity, authentic learning, and authentic activities (Kreber et al. in Adult Educ Q Am Assoc Adult Contin Educ 58(1):22–43, 2007; Newmann in Authentic achievement: restructuring schools for intellectual quality, Jossey-Bass Publishers, San Fransisco, 1996; Newmann and Wehlage in Educ Leadersh 50(7):8–12, 1993; Reeves et al. in Quality conversations. Paper presented at the 25th HERDSA annual conference, 2002; Splitter in Stud Philos Educ 28(2):135–151, 2008). Through qualitative investigation they identify and summarise key viewpoints and demonstrate how these can be successfully implemented through programmes of technology education. A model of authentic technology for producing quality technological outcomes is presented. The authors show how an activity from an initial teacher education course in technology education uses identified aspects of authentic technological practice through the various dimensions of authenticity to develop enduring learning for students. They consider the role of context in developing learning and introduce some new ideas on successful student engagement in the field of conation (Riggs and Gholar in Strategies that promote student engagement, Corwin Press, California, 2009). Conation is defined as the will, drive and effort behind students’ engagement in learning and is increasingly seen as an integral part of authentic education.     

The Rationality of U.S. Regulation of the Broadcast Spectrum in the 1934 Communications Act

The Federal Radio Commission regulated radio broadcasting, 1927–1934. With the passage of the Communications Act of 1934, the 1927 Radio Act (enabling the Commission) was re-enacted in whole. This congressional endorsement yields key evidence as to what policy outcomes were intended, differentiating competing theories for the origins of spectrum allocation law: Coase (J Law Econ 2(1):1–40, 1959), emphasizing policy error; Hazlett (J Law Econ 33:133–175, 1990), focusing on “franchise rents” in a public choice framework; and the “public interest” hypothesis, reconstructed by Moss and Fein (J Policy Hist 15(4):389–416, 2003). Congress’ revealed preferences prove consistent with the franchise rents theory, while contradicting the other two.     

A review of: “APPLIED ECONOMIC ANALYSIS FOR TECHNOLOGISTS,ENGINEERS, AND MANAGERS ” BY MICHAEL S. BOWMAN Prentice-Hall,Inc., Upper Saddle River,New Jersey, 1999, xii + 561 pp., ISBN: 0-13-375932-6, List: $76.75.

In their recent paper Tang and Tang (2003 Tang, S. L. and Tang, H. J. 2003. The variable financial indicator IRR and the constant economic indicator NPV.. The Engineering Economist, Vol. 48(No. 1): pp. 69–78. [Taylor &; Francis Online] , [Google Scholar], pp. 69–78) revive a longstanding controversy—net present value (NPV) versus internal rate of return (IRR)—by characterizing the NPV as an economic indicator and the IRR as a financial one. The paper implies that this distinction justifies ranking financial alternatives by ranking their IRRs. In the current article, it is argued that the direct IRR ranking does not necessarily provide the same evaluation environment—and therefore a fair comparison—for each alternative involved, and that the incremental ranking approach is needed to remedy this shortcoming. The article also points out that Tang and Tang's numerical examples of simple projects with one sign change in their cash flow patterns do not address the problem of multiple IRRs, which consequently renders Tang and Tang's ranking approach dysfunctional. It is demonstrated that the concept of a true rate of return, substituting for the non-performing IRR and applied in conjunction with the incremental approach, provides an adequate tool for ranking mutually exclusive projects or a project's technical or financial alternatives.     

MICROCOMPUTER SOFTWARE COSTING LESS THAN $1000 FOR ECONOMIC AND MULTI-ATTRIBUTE DECISION ANALYSIS∗

Commodity price simulation is useful in many engineering economics applications, yet discrete approximations of the continuous stochastic processes used in modeling commodity prices are not always straightforward. This article describes the exact solution for discretely simulating the Schwartz and Smith (2000 Schwartz, E. and Smith, J. E. 2000. Short-term variations and long-term dynamics in commodity prices. Management Science, 46(7): 893–911. [Crossref], [Web of Science ®] , [Google Scholar]) two-factor model of commodity prices.     

A review of: “ENGINEERING ECONOMY, 4th. Ed.” By E. Paul DeGarmo The Macmillan Company 1967 532 pp. $10.95.

A risk measure, expected opportunity loss (EOL), is introduced to quantify the potential loss of making an incorrect choice in risk-based decision making. Different from Savage's (1951 Savage, L. J. 1951. The theory of statistical decision. Journal of the American Statistical Association, 46(253): 55–67. [Taylor &; Francis Online], [Web of Science ®] , [Google Scholar]) minimax regret principle, EOL can account for the unbounded continuous random outcomes of alternatives and decision makers’ acceptable risk. This article studies the effects of the forms of loss function, correlation among outcomes, and the acceptable risk on the ranking results by considering the loss function in the power form. The results show that the loss functions and the outcomes correlations can significantly influence the rankings of alternatives in risk-based decision making.     

Applying Target Costing in the Development of Marketable and Environmentally Friendly Products from Swine Waste

Management of swine waste generated in the United States is a challenging problem facing engineers, farmers, scientists, regulators, and policy-makers. Technologies for processing and storing swine waste have not been fully developed and refined in a manner acceptable to the public and environmental regulators. The primary concerns with improperly disposed swine waste are the effects on human and livestock health, surface and groundwater quality, air quality, and conservation of nitrogen fertilizers (Hagenstein 2003 Hagenstein, P. R. 2003. Air Emissions from Animal Feeding Operations: Current Knowledge, Future Needs, Washington, D. C.: National Research Council, National Academy Press.  [Google Scholar]).

The purpose of this study is to demonstrate the concept of target costing by applying it to a very specific example: the production of biomethanol from swine manure. This study summarizes the analyses that outline a design and calculate a preliminary cost estimate for a proposed system for producing biomethanol from swine manure (initial process). In this study the target costing process is demonstrated with calculation of a target cost. This article also demonstrates an application of value engineering as a systematic, interdisciplinary examination of factors affecting the cost of a product so as to find means to fulfill the product's specified purpose at the required standards of quality and reliability and at an acceptable cost.

The article is organized as follows. First, the purpose of applying target costing methodology to the development of marketable by-products from swine manure is outlined. Next, target cost is calculated for biomethanol made from swine manure based on current methanol prices and currently available subsidies for biomethanol made from swine manure. A system for producing biomethanol from swine manure is described. The current cost is calculated for producing biomethanol. Concepts of value engineering are employed to reduce a significant cost component of the initial process resulting in Process II. Finally, value engineering is employed the second time to further reduce the cost of Process II yielding Process III.     

Who Invented the Lerner Index? Luigi Amoroso, the Dominant Firm Model, and the Measurement of Market Power

The invention of the price/cost margin (P-MC)/P as an index of market power is usually credited to Lerner (Rev Econ Stud 1(3):157?C175, 1934). Landes and Posner (Harv Law Rev 94(5):937?C996, 1981) is similarly often considered the main reference for the generalized version of the index in the case of a dominant firm that shares the market with price-taking rivals. From the viewpoint of the history of industrial economics both claims are incorrect. It was not Lerner who invented the price/cost margin index and the generalized version was fully derived before WWII. In both cases, priority should be given to Luigi Amoroso, the leading Italian mathematical economist in the interwar decades. In the latter case the names of Heinrich von Stackelberg and George Stigler also deserve credit.     

An economic-statistical design of double sampling control chart

The double sampling (DS) chart can reduce the sample size when monitoring the process mean. In this study, Duncan's cost model was modified by adding the statistical constraints to develop the design model of DS chart for the optimization of design parameters—sample size, control limit coefficient, warning limit coefficient and sampling interval. A numerical example was provided to illustrate the use of this model. A sensitivity analysis of the effects of model parameters and statistical constraints on the optimal design of DS chart was also performed.     

Localisation of Japanese subsidiaries in Southeast Asia

The success story of Japanese firms, both in their home country and their overseas subsidiaries, has been the focus of comparative management research in the 1970s and early 1980s. Several scholars attributed the impressive productivity gains in Japanese industries to the basic principles of Japanese management. Further, they advocated the adoption of these principles by American and European businesses to solve employee morale and productivity problems. However, in recent years, the validity of the “happy worker” hypothesis in explaining the effectiveness of Japanese management has been seriously questioned. In fact, the results of several empirical studies indicate that Japanese firms are facing manpower management problems both at home and in their overseas subsidiaries. The main purpose of this article is to identify and discuss the Japanese management problems of overseas subsidiaries, based on several empirical studies of Japanese overseas subsidiaries undertaken by the authors of this article and other scholars during the last 17 years (1968 to 1985). These studies are:

Localisation Problems of Japanese Subsidiaries Overseas: A Comparative Study in Southeast-Asian Countries.

A comparative study of American, Japanese and local firms in Taiwan.

A comparative study of American, European and Japanese multinationals' subsidiaries in Brazil, Peru, India, Malaysia, Singapore, and Thailand.

A comparative study of American, German, and Japanese multinations in the United States, Western European countries, Australia, and Japan.

A comparative study of upper-level Japanese and American managers of subsidiaries of Japanese firms in the United States.

A comparative study of subsidiaries of American and Japanese multinationals in Singapore.

An intensive case study of a Japanese subsidiary in Australia.

     

Countervailing Power and Chain Stores

The countervailing power of large buyers subdues the market power of sellers, but price concessions won by large buyers in upstream markets may or may not translate into lower prices downstream as Galbraith (American capitalism: The concept of countervailing power. Houghton Mifflin, Boston, 1952, Am Econ Rev 44:1–6, 1954) once contended. This paper presents a model that formalizes certain previously neglected elements of Galbraith’s argument, and shows that upstream price concessions may lead to lower downstream prices. In this model, a large retail chain store with countervailing power plays one large supplier off against another to win lower prices. An indirect effect of these interactions is that small retailers also pay lower prices, although not as low as the chain. Finally, competition among the retailers drives retail prices lower. The retail-price-restraining effect of the chain is stronger than the effect that is produced by the entry of an additional supplier.     

Vergleichende Analyse der technisch-wirtschaftlichen Bedingungen von PV-Anlagen Mit Süd- und Ost-West-Ausrichtung

PV power plants with east-west-orientation have a lower energy production per installed kW_p due to their orientation than those facing to south. Thus they need a reduction of costs to compensate the lack of energy production and to have the same cost effectiveness as PV plants with south-orientation. This paper tries to show, how and if PV plants with east-west-orientation can be more profitable than PV plants with south-orientation. Therefore, the energy production was simulated for PV plants with an orientation to east-west and to south with different inclinations in a place with high irradiation (Freiburg) and a place with low irradiation (Hamburg). A calculation of profitability was made for each PV plant including energy production as well as ascertained costs. This are the main outcomes:

The profitability of PV plants with east-west-orientation is not better than the profitability of PV plants with south-orientation.

The profitability of PV plants with east-west-orientation is better than the one of PV plants with south-orientation when the costs of mounting systems are much lower for east-west mounting-systems than for mounting-systems with south-orientation and the costs of grid-connection and rent are high too.

The profitability of PV plants with east-west-orientation is higher in regions with low irradiation.

     

Exploring perceptions and attitudes towards teaching and learning manual technical drawing in a digital age

This paper examines the place of manual technical drawing in the 21st century by discussing the perceived value and relevance of teaching school students how to draw using traditional instruments, in a world of computer aided drafting (CAD). Views were obtained through an e-survey, questionnaires and structured interviews. The sample groups represent professional CAD users (e.g., engineers, architects); university lecturers; Technology Education teachers and student teachers; and school students taking Scottish Qualification Authority (SQA) Graphic Communication courses. An analysis of these personal views and attitudes indicates some common values between the various groups canvassed of what instruction in traditional manual technical drafting contributes towards learning. Themes emerge such as problem solving, visualisation, accuracy, co-ordination, use of standard conventions, personal discipline and artistry. In contrast to the assumptions of Prensky’s thesis [(2001a) Digital natives, digital immigrants. On the Horizon 9, 5. NCB University Press Retrieved Oct 2006 from http://www.marcprensky.com/writing/Prensky%20-%20Digital%20Natives,%20Digital%20Immigrants%20-%20Part1.pdf; (2001b) Digital natives digital immigrants, Part 2: Do they really think differently? On the Horizon 9, 6. NCB University Press retrieved Oct 2006 from http://www.marcprensky.com/writing/Prensky%20%20Digital%20Natives,%20Digital%20Immigrants%20-%20Part2.pdf] of digital natives, the study reported in this paper indicates that the school students apparently appreciate the experience of traditional drafting. In conclusion, the paper illustrates the perceived value of such learning in terms of transferable skills, personal achievement and enjoyment.     

Teaching the nature of technology: determining and supporting student learning of the philosophy of technology

This paper reports on findings related to the Nature of Technology from Stage Two of the Technological Knowledge and Nature of Technology: Implications for teaching and learning (TKNoT: Imps) research project undertaken in 2009. A key focus in Stage Two was the trialing of different teaching strategies to determine how learning related to the components Characteristics of Technology (CoT) and Characteristics of Technological Outcomes (COTO) could be supported. These components fall within the Nature of Technology (NoT) strand of technology in the New Zealand Curriculum (NZC) (Ministry of Education, 2007) and as such, reflect a philosophical understanding of technology as a discipline. During this stage of the research further exploration was undertaken to determine how student understanding of these two components of technology education progressed from level 1 to level 8 of the NZC (Ministry of Education, 2007). Common misconceptions and partial understandings related to these components are identified and explained and four case studies are presented to illustrate strategies employed by teachers and their impact on student learning related to these two components. The Stage Two outcomes resulted in the revision of the Indicators of Progression for CoT and CoTO in order to clarify the progression expected of students in each component and provide increased teacher guidance to support such progression.     

Teaching Technological Knowledge: determining and supporting student learning of technological concepts

This paper reports on findings related to Technological Knowledge from Stage Two of the Technological Knowledge and Nature of Technology: Implications for teaching and learning (TKNoT: Imps) research project undertaken in 2009. A key focus in Stage Two was the trialing of different teaching strategies to determine how learning related to the components Technological Modelling (TM), Technological Products (TP) and Technological Systems (TS) could be supported. These components fall within the Technological Knowledge (TK) strand of technology in the New Zealand Curriculum (NZC) (Ministry of Education, 2007) and as such, reflect the key generic concepts or ‘big ideas’ of technology. During this stage of the research further exploration was also undertaken to determine how student understanding of these three components of technology education progressed from level 1 to 8 of the NZC (Ministry of Education, 2007). This resulted in a significant review of the Indicators of Progression for TM, TP and TS, providing clarification of the nature of the progression expected of students in each component as well as increased teacher guidance to support such progression. Common misconceptions, partial understandings and alternative concepts related to these components were confirmed and explained and five case studies were developed to illustrate strategies employed by teachers and their impact on student learning related to these three components.     

Exploring pupils’ beliefs about designers and designing

The purpose of this paper is to report on an investigation into pupil beliefs about designers and designing conducted as part of a research project focussing on Designerly Activity in Secondary Design and Technology which builds upon a pilot study (Barlex and Trebell in Int J Technol Design Educ, 2007). Four research questions drove this element of the study: (a) What do pupils believe designers do? (b) What do pupils believe about the knowledge and skills designers must possess? (c) What do pupils believe designers are like? (d) What do pupils believe about the design decisions made by the designer of a given product? This paper compliments the work of Welch et al. (Designing the future: The design and technology association international research conference 2006, University of Wolverhampton, Telford, 2006) relating to student beliefs about designers and designing by drawing on some elements of the research design to inform this study. Pupil responses to questions relating to the role of the designer, what designers are like and what designers need to know are in line with the findings of Welch et al. (Designing the future: The design and technology association international research conference 2006, University of Wolverhampton, Telford, 2006) in their study of elementary students beliefs about designers and designing with both studies concluding that the qualities ascribed to the designer are positive and non-stereotypical—they can be young or old, female or male.