The cost effect in third-degree price discrimination

In the presence of a non-constant marginal cost and demand uncertainty, we show that an output increase is no longer a necessary condition for welfare to increase following the introduction of third-degree price discrimination. We thus highlight the existence of an effect that might offset the well known output and misallocation effects of price discrimination. We propose a specific example where this is indeed the case.     

Integrating Decision-Making Support in Geocollaboration Tools

Collaborative spatial decision making (CSDM) involves multiple stakeholders making strategic decisions based on spatial data. Current CSDM tools have been exploring different ways to integrate spatial data with collaboration, distribution and mobility. Notably, decision-making support has not seen the same level of attention. This paper discusses the challenges raised by the integration of decision-making models in CSDM tools. We review a large collection of decision-making models using three different views: sequential, dynamic and continuous. From this review we derive a conceptual model and a set of functional requirements necessary to integrate decision-making support in CSDM tools. The conceptual model highlights the importance of several functions in decision-making processes: representing problems, finding alternatives and making choices (sequential view); classification and communication (dynamic view); and perception, comprehension and projection (continuous view). The paper also describes a prototype developed to validate the model. The paper provides two main research contributions: a unified view of decision-making support and an innovative CSDM tool blending spatial data with decision-making support.     

Assessing the impact of educational differences in HCI design practice

Human–computer interaction (HCI) design generally involves collaboration from professionals in different disciplines. Trained in different design education systems, these professionals can have different conceptual understandings about design. Recognizing and identifying these differences are key issues for establishing shared design practices within the educational community. Contributing to this understanding, we examined whether and how two different populations of students have different knowledge structures with respect to HCI design. We adopted the romantic, conservative and pragmatic dimensions, previously investigated in the related research, to elucidate those differences. This paper compares one specific type of design artefact—conceptual frameworks—created by groups of students with different educational backgrounds: Arts and Engineering. It was based on a set of 22 criteria divided by two main domains: scheme (addressing form) and realm (focusing on contents). The obtained results show that students with background in Engineering (1) focus more on the product of design; (2) rely less on conceptual frameworks to guide the design process; and (3) produce artefacts that are more constrained in terms of signal-to-noise ratio, definition of a symbolic system, and information organization and shaping. We suggest that conceptual frameworks serve to communicate and understand design practice. We note that Engineering students seem to be more susceptible to fixation than Arts students and suggest that an emphasis of reflection-in-action could help compensating this problem.     

Strategic alliances,organisational learning and new product development: the cases of Rover and Seat

The importance of the automotive industry in the global economy is widely recognised. The sector has undergone enormous changes in order to prepare for the fierce competition of the 21st century. Among these transformations, the most relevant are those technologies developed for the rapid evolution of activities linked to new designs, new products, and new manufacturing processes and systems. Innovative Japanese carmakers have stimulated international performance comparisons in these activities. International technology alliances may be one way of gaining access to new competitive technologies. Risks and costs associated with new product development can be shared among the partners and more effective use can be made of manufacturing facilities and production capabilities. Sometimes, an alliance agreement may lead to the deployment of new capabilities. However, in spite of this potential, the literature presents the success rate of alliances at less than 50%. Our study considers two examples of companies that developed international joint ventures (IJVs): Rover with Honda, and Seat with Volkswagen. Since these two European peripheral companies, Rover and Seat, no longer remain as independent firms, we are interested in identifying the reasons leading to the success or failure of these IJVs as regards the New Product Development (NPD) process. In particular, in both cases the paper looks at the problems of the weaker partner becoming increasingly dependent on the other partner and the need for a well-defined strategy to benefit from IJVs.     

Love,hate and murder: Commitment devices in violent relationships

Many violent relationships are characterized by a high degree of cyclicality: women who are the victims of domestic violence often leave and return multiple times. To explain this we develop a model of time inconsistent preferences in the context of domestic violence. This time inconsistency generates a demand for commitment. We present supporting evidence that women in violent relationships display time inconsistent preferences by examining their demand for commitment devices. We find that no-drop policies – which compel the prosecutor to continue with prosecution even if the victim expresses a desire to drop the charges – result in an increase in reporting. No-drop policies also result in a decrease in the number of men murdered by intimates suggesting that some women in violent relationships move away from an extreme type of commitment device when a less costly one is offered.     

Returns to education and wage equations

The paper shows why considering a number of education-dependent covariates in a wage equation decreases the coefficient of education in that equation. This result is illustrated empirically with a meta-analysis for Portugal. The education coefficient decreases when covariates are used that can be considered post-education decisions; on the other hand, it is independent of sample size, tenure and whether hourly or monthly wages are used. These results support the use of a simple specification of the Mincer equation for the study of the total returns to education.     

Expectational coordination in simple economic contexts

We consider an economic model that features (1) a continuum of agents and (2) an aggregate state of the world over which agents have an infinitesimal influence. We first review the connections between the ??eductive?? viewpoint on expectational stability and standard game-theoretical rationalizability concepts. The ??eductive?? reasoning selects different plausible beliefs that are a priori, and possibly a posteriori, ??diverse??. Such beliefs are associated with the sets of ??Cobweb tatonnement?? outcomes, ??Rationalizable States?? and ??Point-Rationalizable States?? (the latter two being shown to be convex). In the case where our model displays strategic complementarities, unsurprisingly, all our ??eductive?? criteria support similar conclusions, particularly when the equilibrium is unique. With strategic substitutabilities, the success of expectational coordination, in the case where a unique equilibrium does exists, relates with the absence of cycles of order 2 of the ??Cobweb?? mapping: in this case, full expectational coordination would be achieved. However, when cycles of order 2 do exist, our different criteria predict larger sets of outcomes, although all tied with cycles. Under differentiability assumptions, the Poincaré?CHopf method leads to other global stability results. At the local level, the different criteria under scrutiny can be adapted. They lead to the same expectational stability conclusions, only when there are local strategic complementarities or strategic substitutabilities. However, for the local stability analysis, it is demonstrated that the stochastic character of expectations can most often be forgotten.