Auctions for Universal Service Subsidies

The Telecommunications Act of 1996 requires that telephone service be available in high-cost areas at rates that are affordable and reasonably comparable to those charged in low-cost areas. It also requires that carriers serving high-cost areas at below-cost rates be compensated with explicit and sufficient subsidies. This paper analyzes an auction mechanism for the allocation of such subsidies. It shows that in a wide range of circumstances auctions are more efficient than traditional subsidy schemes. It also shows, however, that auction designs aimed at stimulating competition among several subsidized carriers may be particularly vulnerable to collusion.     

Perceptions and trends related to the consumption of honey: A case study of North‐West Romania

The present research investigated tendencies related to the purchasing and consumption of honey and to how it is perceived by consumers. Although Romania is a traditional honey‐producing area, paradoxically, there is not a culture of consumption for this product, honey consumption being lower than in other European countries. The research objectives were achieved by investigating a representative sample of subjects from the North‐West region of Romania. The research instrument used was a questionnaire, which included questions about honey consumption, questions related to perceptions of honey, together with socio‐demographic questions. Honey is perceived to be a delicious product, delightful to consume and is considered beneficial for health by most of the respondents. A number of factors (education, occupation and age) significantly influence the perception that the respondent had of the value of honey. The most popular types of honey were acacia honey, polyfloral honey and linden honey. Respondents preferred to buy honey from a local producer, and had more confidence in domestic honey than in imported honey. Although the frequency of consumption is quite high, the quantity consumed per capita is low (on average 3 kg/year). Local honey producers should be aware that the revival of the beekeeping sector in Romania could be promoted by stimulating domestic consumption. Educating consumers to adopt a healthy lifestyle could significantly contribute to an increase in honey consumption. The paper emphasizes the need to conduct research that provides useful information about the quantitative and quality indicators of honey consumption, in order to improve marketing strategies.