Proof of nonparticipation in a price fixing conspiracy

When a group of firms colludes on price, the industry price will rise even when there are some firms that do not participate in the conspiracy. If the government or private parties file antitrust suits, the noncolluders face the problem of establishing their innocence since their prices rise along with those of the colluders. We propose a simple output test. Under various models of oligopoly pricing—Bertrand, Cournot, and Stackelberg—we show that the colluders restrict their output while the noncolluders take advantage of the higher price by expanding their outputs. Thus, distinguishing between colluders and noncolluders involves simply observing the output behavior of the industry members.The authors appreciate the support of the Public Policy Research Center at the University of Florida. We regret that B&R Associates is purely imaginary as is the industry.     

Exploring costs and benefits of compliance with HACCP regulation in the European meat and dairy sectors

A Hazard Analysis and Critical Control Point (HACCP) Program was introduced as a mandatory measure in the EU in the 1990s. Despite its impact on the food industry, only limited literature addresses the issue of cost and benefits of HACCP at the firm level in Europe. This paper illustrates the results of a pilot study on case studies in Italy, UK and The Netherlands, providing a first assessment of the order of magnitude of costs of compliance and a qualitative illustration of the main benefits perceived by producers.     

Collective Choice and Voluntary Provision of Public Goods*

Some public goods are provided entirely with private contributions, others with a mixture of public and private funding, and still others are entirely publicly funded. In order to study this variation, a model of dual provision is developed that endogenizes public and private funding. Households vote over an income tax that finances public supply of the good and on whether to permit private contributions. While permitting private contributions may lead to a reduction in total provision, a majority always favors permitting private contributions. Results are developed for small and large economies, and the relevance of nonexcludability and noncongestion are investigated.     

Drug‐related violence and the decline in the number of Mexican cross‐border workers

This study examines how variations in homicide rates in Mexico are associated with the likelihood of participating in cross‐border work, that is, living in Mexico but working in the U.S. Based on Mexican census data from 2000, 2010, and 2015, and information on homicides, a series of ordinary least squares models are estimated to analyze the relationship between cross‐border commuting and homicide rates at the individual level. Fixed effects models are also estimated to study this relationship at the municipal level. The results show that from 2000 to 2010 the increase in homicide rates in northern border municipalities in Mexico reduced the likelihood of being a cross‐border worker, while from 2010 to 2015 the decrease in the homicide rate increased the probability that workers engage in cross‐border work. The decline in the number of cross‐border workers is likely in part a result of the escalation in drug‐related violence that may have led them to change their country of residence.     

Accounting for Environmental Influences in Stochastic Frontier Models: With Application to International Airlines

The principal aim of this paper is to measure the efficiency of international airlines. We obtain measures of technical efficiency from stochastic frontier production functions which have been adjusted to account for environmental influences such as network conditions, geographical factors, etc. We observe that two alternative approaches to this problem have been proposed in the efficiency measurement literature. One assumes that the environmental factors influence the shape of the technology while the other assumes that they directly influence the degree of technical inefficiency. In this paper we compare the results obtained when using these two approaches. The two sets of results provide similar rankings of airlines but suggest differing degrees of technical inefficiency. Both sets of results also suggest that Asian/Oceanic airlines are technically more efficient than European and North American airlines but that the differences are essentially due to more favourable environmental conditions. Nevertheless, it is among Asian companies that the major improvements in managerial efficiency (technical efficiency with environmental factors netted out) took place over the sample period (1977–1990).     

Creative Problem Solving in GSS Groups: Do Creative Styles Matter?

Creative groups drive innovation and organizational change and collaborative systems can be used to pool creative team members across the globe. How individual creative preference impacts the group’s creative performance across different creative problem solving phases in a GSS environment is not well understood. The objective of this exploratory study was to understand if there are differences in group performance when groups with varying member creative styles interact solely via GSS. We conducted a quasi-experimental study that compared the performance of groups with two alternate member styles interacting only via group support systems during a creative problem solving process. Ideator and Evaluator groups were compared on their divergent and convergent phase performance. Significant differences were found between the Ideator groups and Evaluator groups on idea fluency, idea flexibility, idea novelty, idea elaboration and solution cost-effectiveness. No significant differences were found between the performance of the two groups on solution feasibility and novelty. Results indicate that member creative styles play an important role in determining the performance of technology-supported groups. These results aid researchers and practitioners by improving their understanding of the performance of creative teams interacting solely via collaborative support systems for creative problem solving tasks.     

Migration and inbound tourism: an Italian perspective

This paper investigates the impact of migration on Italian inbound tourism flows in a dynamic panel data framework. Arrivals, expenditure and nights from 65 countries are analysed for the period 2005–2011. The migration variable is defined at both origin and destination in order to assess the pushing and pulling forces. Estimates were performed using both aggregated flows and flows disaggregated to separate the visiting friends and relatives (VFRs) from two non-VFR categories, namely holiday and business. The results suggest the presence of a strong migration-tourism nexus, which clearly goes beyond VFRs. Moreover, the effects of the different determinants vary according to the way in which the tourism market is segmented and, within each segment, to the way in which tourism demand is measured.     

Contracts with Wishful Thinkers

In a setting with a wishful thinking agent and a realistic principal, the paper studies how incentive contracts should be designed to control for both moral hazard and self‐deception. The properties of the contract that reconcile the agent with reality depend on the weight the agent attaches to anticipatory utility. When this is small, principal and agent agree on full recollection. For intermediate values the principal bears an extra cost to make the agent recall bad news. For large weights, the principal gives up on inducing signal recollection. We also extend the analysis to the case in which the parameter of anticipatory utility is private information.     

Modelling Determinants of Participation,Number of Trips and Site Choice for Outdoor Recreation in Protected Areas

This is a study on demand for outdoor recreation in a national system of environmentally protected areas. The exercise is based on a nationwide survey carried out in 1996 from a stratified random sample of 5,574 Italian households. Data on socio‐economic characteristics and recreational choice behaviour of respondents were collected and this information was supplemented by a second data‐base containing information on 193 Italian EPAs in order to characterise the different outdoor destinations on the basis of their recreational attributes. These data sets are used here to model choices of outdoor recreation within environmentally protected areas, using a sequence of three different models: (i) a dichotomous choice logit model for the probability of participation conditional on household covariates; (ii) a count data Poisson model to estimate the household's expected number of trips per year; (iii) a conditional logit model to estimate the probability of site selection conditional on site attributes. We report the estimated per‐trip welfare changes derivable from an actual policy proposal which would extend the area under environmental protection by ten per cent.