Sealed bid auctions versus ascending bid auctions: an experimental study

This paper considers two multi-item auction formats (ascending and sealed bid) which both identify the minimum Walrasian equilibrium prices and where truthful preference revelation constitutes an equilibrium. Even though these auction formats share many theoretical properties, there are behavioral aspects that are not easily captured. To explore this issue in more detail, this paper experimentally investigates what role the design of the auction format has for its outcome. The results suggest that the sealed bid mechanism performs weakly better in all of the investigated measures (consistent reporting, efficiency etc.). In addition, we find that the performance of the ascending auction is increasing over time, whereas the sealed bid auction shows no such tendency.     

Estimating first-price auctions with an unknown number of bidders: A misclassification approach

In this paper, we consider nonparametric identification and estimation of first-price auction models when N^∗$N^{\ast }$, the number of potential bidders, is unknown to the researcher, but observed by bidders. Exploiting results from the recent econometric literature on models with misclassification error, we develop a nonparametric procedure for recovering the distribution of bids conditional on the unknown N^∗$N^{\ast }$. Monte Carlo results illustrate that the procedure works well in practice. We present illustrative evidence from a dataset of procurement auctions, which shows that accounting for the unobservability of N^∗$N^{\ast }$ can lead to economically meaningful differences in the estimates of bidders’ profit margins.     

Selling goods and services by charities: a clearer view of an emerging picture

The role of voluntary organisations in society and the way such organisations are able to gain finance to support their role, is a continuing source of interest. Charities appear to be becoming more commercial in their selling of goods and services to augment their traditional sources of income. Such trading activity raises sensitive issues of topical interest; notably the way in which charities' income is taxed and the perception of competition between charities and private traders. The research, commissioned by the National Council for Voluntary Organisations (NCVO), throws light on these issues by revealing the nature and extent of trading by charities using authoritative data and a statistically sound sample of charities engaged in trading. Because of legal and taxation constraints on charities, much trading is carried out by subsidiaries rather than by the charities themselves. This study is the first to examine specifically the use of subsidiary companies and to focus on competitive issues. Copyright © 1999 Henry Stewart Publications     

Marketing Channels and the Durable Goods Monopolist: Renting versus Selling Reconsidered

Research on durable goods has shown that because of a time inconsistency problem, a monopolist manufacturer prefers to rent rather than sell its product. We reexamine the relative profitability of renting versus selling from a marketing perspective. In particular, using a simple linear demand formulation, we assume a durable goods monopolist has to use downstream intermediaries to market its product. In contrast to the case of an integrated monopolist, we find that when the monopolist has to rely on intermediaries, then it prefers to go through an intermediary that sells rather than one that rents its product. Similarly, the intermediary that sells the product is more profitable than the intermediary that rents the product. However, if the monopolist can commit to a set of prices, then the intermediary that rents is more profitable than the intermediary that sells.     

Long-term work contracts versus sequential spot markets: experimental evidence on firm-specific investment

The length of work contracts may be irrelevant for firm-specific investment if rational behavior generates endogenous job security. In an experiment, we implement such a situation and study actual investment behavior. In contrast to the game-theoretic prediction, we find reduced investment in case of short-term contracting compared to long-term contracting. This is due to nonequilibrium behavior that generates a substantial risk of unemployment if contracts are short-term. Since the effect of nonequilibrium behavior differs between institutions, the length of contract is in fact relevant for firm-specific investment.     

Occupational choice: Teacher quality versus teacher quantity

This article examines the relationship between skill-biased technological changes and the decline in both teacher quality and pupil–teacher ratio—called the “quality–quantity trade-off”—in the United States and other advanced economies during the past several decades. The study presents a theory of educational production that emphasizes teachers’ occupational choices. A key assumption is that talented agents have a comparative advantage in learning. The model endogenously generates a teachers sector with intermediate abilities between two types of skilled workers with tertiary education: highly skilled workers and vocational workers. This unique feature helps specify which technological changes may lead to quality–quantity trade-offs. In particular, a crucial element is that the ratio of incomes and thus the income inequality rises within the skilled sector. In this case, the most talented teachers depart from the teachers sector to join the highly skilled sector, and as such, teacher quality declines. In other cases, both teacher quality and teacher quantity may increase. The results are consistent with the observed patterns of technology, educational attainment, educational expenditure, and wage inequality in advanced economies. Finally, another potential cause for the quality–quantity trade-off is a reduction in teacher certification requirement unless the reduction is implemented exclusively on high-ability workers.     

Individual versus group spot price forecasting in the international petroleum market: A case study

This paper utilizes the conventional statistical tests associated with the rational expectations hypothesis so as to compare the relative accuracy of individual versus group forecasting within the organization. In order to maintain comparability between forecasting regimens the study employs like information sets for the two prediction methods. Using the rational expectations tests as criteria, the statistical results show group forecasts inferior to individually produced predictions These findings imply that group-produced forecasting accuracy may be hampered by the psychological interaction associated with consensus behavior. Conversely, we find forecasting accuracy improves when predictions are elicited from individuals in an isolated laboratory-like setting.     

一汽丰田“红地毯”式营销

一汽丰田销售公司彻底改变了通过经销商接触消费者的营销模式,将销售管理链条从经销商延伸到了终端消费者,并把经销商卖给消费者的终端销售数字作为考核销售业绩的惟一标准     

Spot and forward exchange rates as predictors of future spot rates: trends in exchange market value and the contribution of new information

This study investigates whether or not new information affects the predictive capability of forward and spot foreign exchange rates symmetrically during periods of rising as opposed to falling currency values. Statistically significant different intercept and slope coefficients are found between the periods of U.S. dollar appreciation and U.S. dollar depreciation. Further, the predictive ability of the two models differs between opposite trends in foreign exchange values.     

Causes of cross-autocorrelation in security returns: Transaction costs versus information quality

We examine empirically the role of transaction costs and information quality as causes of cross-autocorrelations in security returns. Nonsynchronous trading influences are addressed by forming weekly returns based on averages of closing inside bid and ask quotations for NMS securities. Stock return volatility scaled by the bid-ask spread is employed as a proxy for transaction costs and trading volume is used as a measure of information quality. We find evidence that both transaction costs and information quality may contribute to cross-autocorrelations, but that information quality dominates transaction costs in explaining cross-autocorrelations after controlling for autocorrelation influences.     

Institutional quality and environmental pollution: MENA countries versus the rest of the world

Using data for over 100 nations over the years 2004–2007, this study examines the effect, of institutional quality on environmental pollution, focusing primarily on influences of corruption, and the shadow economy, and paying special attention to MENA countries. Controlling for a, number of factors, results show that both more corrupt nations and nations with large shadow sectors have qualitatively and quantitatively similar effects in yielding fewer (recorded) emissions; however, MENA nations have higher pollution rates. Policy implications are noted.     

地利共享:土地财政的制度合法性

土地财政作为地方政府财政收入的重要来源,成为地方政府提供基础设施建设和社会公共服务的物质基础。在城市化的快速发展中,土地财政成为必不可少的动力。随着城市化进程的加速,土地管理法的修订,土地财政的合法性颇受争议。从合法性的制度视角看,地利共享是土地制度合法性源泉,体现在规制性、规范性和认知性三方面。但是,土地财政的地利共享合法性也面临着规制上的多变和复杂,规范上的迷离和离散,认知上的背离与缺失三方面的危机。化解土地财政的合法性危机,需要对土地财政地利共享的合法性进行重塑:规制层面上,完善土地管理法律体系,坚持土地使用的宪法底线;规范层面上,坚持土地改革的局部试点,谨慎推行全局式的土地改革策略;认知层面上,完善土地财政使用渠道,探索更加多样的土地增值分配方式。     

Contestability of the urban land market: an event study of Hong Kong land auctions

The traditional theory of urban land markets assumes perfect contestability—the absolute freedom of market entry—that compels developers to bid up the land rent to equal the economic profit from land use. This assumption, however, is empirically untested due to the difficulties in measuring the ex ante economic profit of land acquisition. We overcome these difficulties by applying the event-study methodology to Hong Kong government land auctions. When a developer acquires a site at a price below its fair market value, the rationality of the stock market entails a positive abnormal return on the developer’s stock. Our analysis shows evidence of positive expected abnormal returns, indicating an imperfectly contestable land market. We further show that the expected abnormal return increases with the site value and the government land disposal level but decreases with the property market liquidity.     

Charity auctions as assets: Theory and simulations of fundraising risk management in mean-variance space

This paper demonstrates how the risk over auction revenue at fundraising events can be managed with modern portfolio theory. Within the independent private values (IPV) framework, it is shown that auction mechanisms offer charities an inherent mean-variance tradeoff over revenue when contributions produce a public good benefit among bidders. This allows the fundraiser to construct a “portfolio” of auction mechanisms for their event so as to manage auction revenue outcomes according to the charity's risk preferences. Simulations provide support for the empirical prominence of the second-price winner-pay (i.e. English) auction, as this is often the portfolio's most heavily weighted mechanism under reasonable risk preferences.     

Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods

We model firms as competing for socially responsible consumers by linking the provision of a public good (environmentally friendly or socially responsible activities) to sales of their private goods. In many cases, too little of the public good is provided, but under certain conditions, competition leads to excessive provision. Further, there is generally a trade-off between more efficient provision of the private and the public good. Our results indicate that the level of private provision of the public good varies inversely with the competitiveness of the private-good market and that the types of public goods provided are biased toward those for which consumers have high participation value.     

孙京生把晋商精神发扬光大

见到孙京生，是在他的天天渔港大酒店搬迁之后重新开张的开业典礼上，笔挺的西服把一米八左右的孙京生衬托得更加挺拔帅气。初次见到孙京生，给人一种坚毅和儒雅的感觉。装饰一新的酒店门口人潮涌动，准备剪彩的孙京生不时地和来客打着招呼。看得出来，很多人都是他的老朋友，都是来为天天渔港大酒店的重新开业捧场的。而在剪彩嘉宾里有一位嘉宾引起了记者的注意，     

Target-oriented use of strategic sourcing tools: A critical analysis creating process awareness for electronic reverse auctions

The success of an electronic reverse auction (eRA) does not manifest just in price reductions but also in the reduction of transaction costs and costs of the purchasing organization. A dynamic process view allows a better understanding of these dimensions. We illustrate that using the Total Cost of Ownership (TCO) concept. The goal of our study is to determine the impacts of eRAs on Total Cost of the Purchasing Function (TCPF). Therefore we analyze the impacts on three different levels: the process step, the transaction, and the tool integration level, enabling process awareness of firms using eRAs.     

Dynamic voluntary provision of public goods with uncertainty: a stochastic differential game model

Fershtman and Nitzan (Eur. Econ. Rev. 35:1057–1067, 1991) presented a continuous dynamic public good game and solved the model for feedback Nash equilibria. Wirl (Eur. J. Polit. Econ. 12:555–560, 1996) extended the model and considered nonlinear strategies. Both models do not include uncertainty and hence neglect an important factor in the theory of public goods. We extend the framework of Nitzan and Fershtman and include a diffusion term. We consider two cases. In the first case, the volatility of the diffusion term is dependent on the current level of the public good. This set-up will in principle lead to the same type of feedback strategies computed under certainty. In the second case, the volatility is dependent on the current rate of public good provision by the agents. The results are qualitatively different. We provide a detailed discussion as well as numerical examples. In particular, we show that in both cases uncertainty signifies the free rider effect.