Intelligent Order Matching Systems for Commodity Markets

Automatic order matching systems have emerged as an electronic alternative to traditional markets. In current automatic order matching systems, price and quantity are the only product dimensions used for the order matching. However, a single-commodity market is made up of many heterogeneous goods which are close to each other but different in qualities and delivery conditions. Price and quantity are important but represent only parts of product attributes that commodity traders want to take into account. This study aims to extend current automatic order matching systems by diversifying product dimensions. An intelligent order matching system not only maximizes the total transaction volume based on the price and quantity but also satisfies traders' qualitative preferences over attributes other than price and quantity. The intelligent order matching mechanism combines an economic model with a preference model to incorporate both quantitative and qualitative utility of market participants. Constraint logic programming is investigated as a new information technology to structure and implement the intelligent order matching system.     

An appreciation of our referees

Editorial

An appreciation of our referees     

Unlocking the potential of advanced manufacturing technologies

This research examines whether investments in advanced manufacturing technologies (AMTs) such as flexible manufacturing systems (FMS), computer aided design (CAD), computer aided manufacturing (CAM), robotics, etc., are more likely to lead to improved performance if they are supported by improvements in the manufacturing infrastructure of the company. This question is evaluated using data gathered from 202 manufacturing plants chosen from industries generally considered to have relatively high investments in technology.Multiple item scales are developed and adapted from sources in the literature to measure investments in technology, infrastructure, and the performance of the plant. Evidence supporting the reliability and validity of these scales is provided. Hierarchical regression is used to analyze the relationship between technology, infrastructure, and performance. The results suggest that there is an important interaction between the adoption of advanced manufacturing technologies and investments in infrastructure. Firms that invest in both AMTs and infrastructure perform better than firms which only invest in one or the other. Separate analyses on sub-samples of firms with the highest and lowest investments in AMTs show that infrastructural investments have a stronger relationship with performance in the high investment group. Thus, the data indicate that infrastructural investments provide a key to unlocking the potential of advanced manufacturing technologies.     

Identification and estimation of econometric models with group interactions,contextual factors and fixed effects

This paper considers identification and estimation of structural interaction effects in a social interaction model. The model allows unobservables in the group structure, which may be correlated with included regressors. We show that both the endogenous and exogenous interaction effects can be identified if there are sufficient variations in group sizes. We consider the estimation of the model by the conditional maximum likelihood and instrumental variables methods. For the case with large group sizes, the possible identification can be weak in the sense that the estimates converge in distribution at low rates.     

The Tax Man Cometh: Constitutional Principles for Tax Enforcement

Passage of an Internal Revenue Service (IRS) overhaul bill in 1998 reflects the depth of American taxpayer frustration with the agency. We bring a constitutional, or rules of the game, perspective to tax enforcement. We examine political costs and benefits and agency discretion as reasons why tax enforcement by the government might deviate from the preferences of a representative citizen. We also examine prospects for reform. Lasting reform must alter the rules for deciding tax enforcement policy or the political pressures which yield excessive enforcement today will reemerge in the future.     

A Note on Regulating Oligopolistic Industries: A Hierarchical Model

In a 1994 paper, extending the well-known incremental surplus subsidy scheme of Sappington and Sibley, Schwermer presented a non-Bayesian incentive scheme for regulating a Cournot oligopoly industry. This note designs an oligopolistic incentive scheme for a hierarchical Stackelberg model in which firms choose outputs sequentially.     

A duration analysis of privatization in the telecom sector

The paper attempts to identify the telecom-sector performance indicators, relevant economic variables, and institutional characteristics of a country that effect the process of privatization of state-owned telecom enterprises. Using standard duration analysis of a panel data, we demonstrate that the privatization incentives are not only shaped by the mobility of financial capital in a country but are also influenced by the degree of competitiveness of private sector participation in policy-making process. The empirical results also reveal the significant impact of productive efficiency in telecom service provision on its course to privatization. We thank an anonymous referee for helpful comments and suggestions. We are solely responsible for all mistakes.     

Taxation of Mobile Factors as Insurance under Uncertainty

This paper considers the effects of the taxation of mobile factors, i.e., capital, under uncertainty. The wages earned by residents of a jurisdiction are uncertain due to random shocks. Since the uncertain wages in a jurisdiction depend on the amount of mobile capital employed in the jurisdiction, and since taxation alters the quantity of capital employed, taxation affects the riskiness of uncertain wages. In particular, the taxation of capital moderates the fluctuation of uncertain wages, thereby providing insurance. For this reason, jurisdictions use distortionary capital taxation even if lump‐sum taxation is available. In addition, this insurance effect counteracts the tendency toward too low tax rates on capital arising from tax competition, and possibly improves the efficiency of tax competition.