Diagrammatic Approach to Capacity-Constrained Price Discrimination

This paper presents a diagrammatic solution to the firm's profit-maximizing price discrimination problem in the face of capacity constraints. Airlines, hotels, and other firms practice yield management, allocating fixed capacity to customer groups paying different prices. In these cases, the firm's short-run problem is not a decision about production levels, but it is one of allocating a fixed number of output units among customers. Our diagram shows that the conditions for profit-maximizing price discrimination are very different under these circumstances than in the standard model in which the firm is not constrained by capacity.     

The "Sect Effect" in Charitable Giving: Distinctive Realities of Exclusively Religious Charitable Givers

A bstract .   An examination of the charitable giving behavior of 16,442 households reveals intriguing patterns consistent with the club-theoretic approach to religious sect affiliation. The club-theoretic model suggests that individuals with lower socioeconomic standing will rationally be more likely to align themselves with exclusivistic sects. Because sect affiliation is also associated with more obligatory religious contributions, this approach generates novel predictions not anticipated by standard economic models of charitable behavior. Traditional analysis of charitable giving can mask the "sect effect" phenomenon, as low-income giving is dwarfed by the giving of the wealthy. However, the application of a two-stage econometric model—separating the participation decision from the subsequent decision regarding the level of gifting—provides unique insights. Basic socioeconomic factors have significant and opposite associations with different categories of giving, calling into question the treatment of charitable giving as a homogenous activity and supporting the understanding of sect affiliation, and potentially religious extremism, as rational choice phenomena.     

Share contracts and macroeconomic externalities

Weitzman's analysis of the share economy contrasts fixed-wage and fixed-share contracts; this paper notes that neither is an optimal labor contract, rendering the comparison suspect. Given this comparison, though, share contracts may be superior to wage contracts in an economy characterized by a “macroeconomic externality,” whereby firm-level employment decisions affect the demand for other firms' goods.     

The Effect of Hysteresis on Fluctuations in Unemployment and Inflation when Inflation Expectations are Adaptive

The recent level of unemployment may affect the natural rate of unemployment. The implications of such an hysteresis effect for macroeconomic fluctuations is analyzed using a stochastic dynamic model. The greater the importance of an hysteresis effect, the more pronounced are fluctuations in unemployment and inflation. Complete hysteresis causes the economy to be unstable.     

Automobile Safety Regulation and the Incentive to Drive Recklessly: Evidence from NASCAR

When safety regulation makes automobiles safer, drivers may drive more recklessly, partially or completely offsetting effects on the overall level of safety. Evidence of these offsetting effects has been hard to find, however, primarily because of the aggregate nature of accident data. In this paper we explore how changes in the safety of automobiles used in the National Association for Stock Car Auto Racing (NASCAR) has altered the incentive of drivers to drive recklessly. This unique data set allows more accurate and objective measurement of the necessary variables to test for these effects at a microlevel. Our results strongly support the presence of these offsetting behavioral effects.     

Unplanned buying and in-store stimuli in supermarkets

Manufacturers and retailers in industrialized countries spend large sums on advertising and/or in-store promotion in the hope of increasing sales of their merchandise through ‘impulse’ buying. Results are reported in this paper of the unplanned buying behaviour of 450 consumers in 15 major supermarkets in South Africa compared with similar studies in the United States and the United Kingdom. The findings indicate that unplanned buying is higher in the United States than in South Africa, but that the importance of in-store stimuli holds true across cultures. Analysis of other variables such as brand loyalty, specific outlet, and presence of a shopping list is also reported on a cross-cultural basis.     

Virtual schools

Virtual schools have already made their appearance. This paper examines the factors which promote or slow the spread of virtual schools. Technological change, economic rationalism, and the suitability of conventional schools for the information age are identified as reasons for the continued growth of virtual schools. Conversely, the identification of an appropriate pedagogy, the lack of required teaching skills, concerns for the reshaping of human values, socialisation, and the continued need for student supervision are seen as reasons why virtual schools will not rapidly overtake conventional ones. It is concluded that virtual schools will continue to increase in the 21st century, and that appropriate planning must be made for their impact.     

Using Leading Indicators to Forecast U.S. Home Sales in a Bayesian Vector Autoregressive Framework

This article uses Bayesian vector autoregressive models to examine the usefulness of leading indicators in predicting U.S. home sales. The benchmark Bayesian model includes home sales, price of homes, mortgage rate, real personal disposable income, and unemployment rate. We evaluate the forecasting performance of six alternative leading indicators by adding each, in turn, to the benchmark model. Out-of-sample forecast performance over three periods shows that the model that includes building permits authorized consistently produces the most accurate forecasts. Thus, the intention to build in the future provides good information with which to predict U.S. home sales. Another finding suggests that leading indicators with longer leads outperform the short-leading indicators.     

挖掘汽车分销潜力的成功要素

为了自身的利益，美国的经销商和制造商能够而且必须联合起来。