Price Effects on Compound Commodities

We examine the effect of simultaneous price changes on the total demand for a group of goods, which we call a compound commodity. Specifically, we consider unit and proportional cost components (e.g., taxes, transportation costs) imposed on compound commodities. If the unit cost is positive, then the proportional cost raises the relative price of the more expensive good, and thus induces substitution towards the less expensive good within this group. Then, the substitution effect of the proportional cost for a compound commodity is non‐negative if and only if the compound commodity and the other goods are, on average, not strongly substitutable.     

Counterfeit, imitation, reverse engineering and learning: reflections from Chinese manufacturing firms

In a previous paper, we developed an alternative perspective on product imitation and innovation. In this paper, we explore some of our research questions using empirical data gathered in China. While we do not condone counterfeit activities, we explore the role of counterfeiting, imitation and learning from the perspective of Chinese manufacturers and provide insight from a small number of key informants about the motives and incentives for non-consensual acquisition of technology and their views on what Western firms should be doing to counteract the threat to their technological advantage. In this paper, we argue that where companies use the technology property of others to develop their own technology capability without the consent of the other party (non-consensual acquisition of technology), firms should consider whether there are opportunities for collaboration before resorting immediately to the legal tools at their disposal to enforce intellectual property rights and seek financial recompense from infringers without due consideration of the learning, new product development and innovation context. We believe that the findings from our case studies can make a significant contribution towards a better understanding of non-consensual acquisition of technology in an innovation context. In particular, the information gained from the key informants provides their perspective on the causes of non-consensual acquisition of technology and their views and recommendations of how companies affected by this behaviour might be able to better handle this problem.     

On Giffen-like goods

This paper provides, as a counter example to the Alchian-Allen theorem, a theory of Giffen-like goods: a per unit charge to two similar goods raises the relative price of the lower quality good and yet increases the (relative) demand of the good.     

A note on the global stability condition of price adjustment processes on the plane

In Mukherji [Global stability condition on the plane: a general law of demand, J. Econ. Theory 134 (2007) 583-592], a set of sufficient conditions for global stability of price adjustment processes on the plane is identified. The aim of this note is to point out that one of the conditions can be dropped.