Antitrust and Vertical Integration in “New Economy” Industries with Application to Broadband Access

Whether the firms that supply Internet hardware and software should face restrictions on the use of their property is an important and controversial policy issue. Advocates of “net neutrality”—including President Obama and the current FCC majority—believe that owners of broadband distribution systems (hardware used to distribute Internet and video services) and producers of certain “must-have” video content should be subject to prophylactic regulation that transcends present-day antitrust law enforcement. In the economic terms that are used in debates on competition policy, the concern is with vertical integration that may give firms both the opportunity (through denial of access or price discrimination) and incentive (increased profit) to restrict competition. This paper’s central point is that virtually every production process in the economy is vertically integrated, and economics predicts changes in the extent of vertical integration—that is, changes in the boundaries of the firm—in response to changes in relative prices, technology, or institutions. Both vertical integration and changes in the extent of vertical integration are benign characteristics of efficient, dynamic, competitive markets. While there is no shortage of theoretical models in which vertical integration may be harmful, most such models have restrictive assumptions and ambiguous welfare predictions—even when market power is assumed to be present. Empirical evidence that vertical integration or vertical restraints are harmful is weak, compared to evidence that vertical integration is beneficial—again, even in cases where market power appears to be present. Thus, it is reasonable to conclude that prophylactic regulation is not necessary, and may well reduce welfare. Sound policy is to wait for ex post evidence of harm to justify interventions in specific cases. Net neutrality, recently enacted by the FCC but subject to judicial review, is an unfortunate idea.     

Student response to an Internet-mediated industrial design studio course

The purpose of this study is to investigate student attitudes towards and perceptions of using the Internet and information technology to mediate a design studio course and to propose guidelines and suggestions for developing Internet-mediated design studio courses. Two classes of third-year undergraduate industrial design students in two collaborating universities in Taiwan—Chang Gung University and National Yunlin University of Science and Technology—participated in an experimental design studio course mediated with an online design learning environment. Surveys and focus group interviews were conducted at the end of the course to record students’ attitudes and perceptions. The students thought that the approach used had a positive influence on design teaching and learning and expressed acceptance of using the Internet to support design education. Finally, suggestions were proposed to help design educators in adopting, modifying, and developing systems for using the Internet to mediate design studio courses.     

Evolving project e-scape for national assessment

In the opening paper in this Special Edition I outlined the major issues that led to the establishment of project e-scape. The project was intended to develop systems and approaches that enabled learners to build real-time web-based portfolios of their performance (initially) in design & technology and additionally to build systems and approaches to facilitate the web-based assessment of those portfolios. The project was commissioned by the Qualifications and Curriculum Authority (QCA) with additional ‘buy-in’ from Awarding Bodies—who were seen by QCA as the leading beneficiaries of a successful project. The project was designed in three phases. I have outlined—in the Introduction to this Special Edition—the early exploratory work that we undertook within phase 1, the aim of which was to prove the viability of the concept. This was achieved, and QCA then commissioned phase 2 with a brief to build a working prototype system and run it through a national pilot-testing programme in 2006. Age 15 was the target age-group, aligning as closely as we could with the Awarding Body requirements for the General Certificate of Secondary Education (GCSE) that runs with age 16 learners. The successes of the phase 2 prototype—both as classroom activity and as reliable assessment—led QCA and Becta (the body responsible for funding ICT developments in schools) to commission phase 3 in which we explored the potential of the e-scape system for wider application. Specifically, we were required to demonstrate the transferability of the system to other curriculum areas beyond design & technology, and the scalability of the system if it were to be used for national assessment purposes, with hundreds of thousands of candidates. In this paper, I outline the approach that we adopted through the e-scape research; describe the major elements of the work both in terms of classroom/curriculum practice and in terms of new approaches to assessment; and analyse some of the key issues that arise from it.     

Antitrust in High-Tech Industries

Recent economic growth has been led by high-technology industries (See Jorgenson, Ho & Stiroh (2005) for a summary of the research on the recent acceleration of productivity growth). Many firms in these industries have achieved a dominant market position, thereby attracting the attention of competition authorities, often resulting in major monopolization cases. Unfortunately, this attention has not resulted in improved market outcomes. In this paper, we evaluate the effect of Section 2 Sherman Act cases brought against IBM, AT&T, and Microsoft. We conclude that these cases had limited effect on consumer welfare because they did not stimulate entry or innovation. In these industries, competition authorities cannot expect to promote simply an expansion of output and lower commodity prices; rather they should focus their remedies on promoting innovation—new products that replace or compete with the dominant firm’s products.     

A ‘Knowledge Trading Game’ for collaborative design learning in an architectural design studio

Knowledge-sharing and resource exchange are the key to the success of collaborative design learning. In an architectural design studio, design knowledge entails learning efforts that need to accumulate and recombine dispersed and complementary pieces of knowledge. In this research, firstly, ‘Knowledge Trading Game’ is proposed to be a way for promoting students’ design knowledge exchange, dissemination and refinement. Twelve students are randomly chosen as experimental participants. And secondly, ‘virtual value’ is used for students to trade their design knowledge. In this game, students buy others’ design knowledge to extend their design problem space; students decrease their design solution space through their sold design knowledge. Finally, ‘protocol analysis’ is adapted as the research methodology to examine the results of implementation. A positive outcome is identified that Knowledge Trading Game encourages collaborative design learning.     

How do Brands’ “Own Generics” Affect Pharmaceutical Prices?

This paper examines the price effects of generic drugs that are produced by brand-name drug firms and that are labeled, priced, and marketed to compete against independent generics. The strategy of introducing such “pseudo-generics” – also known as “authorized generics” – has raised some antitrust concerns. One defense of this strategy has been that the additional competition created by pseudo-generics should lead to lower prices. This paper develops a simple model to show that pseudo-generics can be expected to have exactly the opposite effect. It then examines empirical evidence on this point from the Canadian pharmaceutical market, showing that there appears to be a positive relationship between drug prices and the share of generic sales made by the brand’s own pseudo-generic.     

Promoting student-led science and technology projects in elementary teacher education: entry into core pedagogical practices through technological design

Future elementary school teachers often lack self-efficacy for teaching science and technology. They are particularly anxious about encouraging children to carry-out student-directed, open-ended scientific inquiry and/or technological design projects. Moreover, because this often also is the case with practising elementary school teachers, it is difficult for student–teachers to gain practical experience facilitating student-led project work during practicum sessions. To provide student–teachers with expertise and motivation for promoting student-directed, open-ended project work, therefore, a group of future elementary teachers were taken through a constructivism-informed ‘apprenticeship’ during their university-based teaching methods course and then invited to make project work the subject of the action research that they were required to complete during their practicum. In this paper, successes that one student–teacher (out of 78 studied) experienced in promoting student-directed, open-ended technological design projects are reported. Although she judged children’s designs to be modestly successful, data indicate that her self-efficacy for promoting project work increased significantly. Analyses of qualitative data collected during the methods course and practicum also indicate that aspects of the curriculum, teachers, students and milieu appeared to contribute to this success. Such findings suggest that teacher educators should focus on helping future elementary teachers to develop expertise and motivation that would enable and encourage children to conduct technological design projects before conducting scientific inquiries. Such a tack may be the most pragmatic—and, arguably, epistemologically-sound—approach for helping ‘science- and technology-phobic’ student–teachers to move from the periphery to the core of practices in science and technology education.     

Metaphor and pedagogy in the design practicum

This paper discusses the ways in which the long-established tradition of the design ‘practicum’ continues to structure teaching and learning in undergraduate programmes. It draws on an in-depth empirical study of one degree course in graphic design and accompanying research in a small number of professional graphic design studios; this dual focus enables identification of shared practices and discourses across the two contexts. Examination of its distinctive modes of teaching and learning indicates the effectiveness of practicum pedagogy in promoting design understanding and the professional preparation of students. The study’s insights into the design classroom are illuminated by situated theories of learning, particularly the idea that knowing equates to participation in the specialist knowledge community of graphic design. A key feature of the learning situation is identified as the practicum discourse shared by tutors and learners, which is characterized as metaphor-based rather than analytical and abstract. The strengths and limitations of this practice-oriented discourse are discussed in the light of the recognized difficulties in articulating art and design knowledge, and its consequent problematic status in the academy. The paper’s focus on metaphorical discourse offers a different view of design pedagogy, and suggests a means of researching it that may also be relevant to other practice-oriented domains.     

Practical modelling and hypothesis testing in primary design and technology education

This article explores relationships between designing and making in the work of children within the age range 5–11 when engaged in practical modelling tasks. The notion of the model is explored from the perspective of concrete representations. It is suggested that concrete models may be used as hypotheses from which to test ideas about the nature of the world. From this perspective, models may be seen to provide crucial platforms for learning. A wide range of sources has informed the article, and these embrace ideas on Hypothesis Theory drawn from linguistic research, as well as historical sources which trace the evolution and development of stimuli for model-making activity. A creative basis for modelling is explored such that a conclusion is reached in which design is seen as an expression of the modelling of possibilities.     

Implementing the Project-Based Learning Approach in an Academic Engineering Course

This paper presents perceptions and attitudes of freshmen students that have participated in an introductory Project-Based Learning (PBL) course in engineering. The course, `A creative introduction to mechanical engineering', was developed and is taught in the Faculty of Mechanical Engineering at the Technion. In this course, teams of students carry out mini-projects that require the design and construction of devices that perform pre-defined tasks. The qualitative paradigm was found to be suitable for studying the process undergone by the students, mainly because the study focused on the human aspect — the students' emotions, thoughts, behavior, and difficulties. Data was collected by means of semi-structured interviews with the students, the teacher, and the teaching-assistant, by observations in the classroom, and by analyzing students' reports. The paper presents the students' perceptions of: the aim of the course; the instructor's role in a PBL environment; characteristics of PBL course; advantages of the PBL from the students' point of view; PBL as a learning environment for future engineers, and implications of learning in teams. This revised version was published online in July 2006 with corrections to the Cover Date.     

Research on Basic Design Education: An International Survey

This paper reports on the results of a survey and qualitative analysis on the teaching of ‘Basic Design’ in schools of design and architecture located in 22 countries. In the context of this research work, Basic Design means the teaching and learning of design fundamentals that may also be commonly referred to as the Principles of Two- and Three-dimensional Design. The body of knowledge associated with Basic Design may be regarded as part of the general theory of teaching and learning design as practiced in many design schools and which has its origins in the classical design schools such as the Bauhaus. In the author’s perception and practice, the pedagogy of Basic Design promotes a holistic, creative and experimental methodology that develops the learning style and cognitive abilities of students with respect to the fundamental principles of design. This includes an understanding of the elements of shape, colour, texture, light, and rhythm in a manner complementary but usually unrelated to the common design methods teaching approach. As is well known among design practitioners, including architects and industrial designers, a deep understanding of the purpose of these fundamental design elements and principles is still relevant to contemporary design practice. The main objective of the research described in this paper was to determine the status and development of Basic Design pedagogy in a significant number of contemporary design schools. On the basis of the results of two surveys conducted in 2001–2002, this paper will identify and illustrate interesting aspects concerning the programmes and organisation of courses delivered by teachers of ‘Basic Design’. This work will also survey the viewpoints of Basic Design teachers in elementary years of design courses and of those teaching design through projects during the subsequent years of the same courses. Interestingly, the design project teachers surveyed in this research expressed a desire to be more involved in the teaching of Basic Design fundamentals which indicates strongly that Basic Design principles are still relevant in contemporary design education terms as they have ever been and that more research is needed in order to better understand and apply the related pedagogy.     

Resource allocation for open and hidden learning in learning alliances

A satisfying relationship between alliance members is important for the success of learning alliances, especially those in the Asia Pacific region. While learning alliances create conditions for firms to leverage each other’s knowledge, firms may be opportunistic and appropriate each other’s knowledge, and firms face a tradeoff because appropriation affects the relationship between alliance members. After reviewing previous studies on knowledge sharing in learning alliances, we differentiate firms’ learning into open and hidden learning, and argue that open learning contributes to competence trust, while hidden learning reduces goodwill trust, which consequently affects open learning. Learning uncertainty, introduced in this study, and learning benefits determine expected payoffs of open and hidden learning, which influence firms’ resource investment in them. This study also finds that behavior and output control are important moderators of the relationships between expected payoffs of open and hidden learning and the resources invested in them. Thus, this study advances our understanding of the tension between cooperation and competition and the learning dynamics in learning alliances. The solution to solving the knowledge sharing dilemma in learning alliances is to promote partners’ open learning and to restrain their hidden learning. Therefore, this study argues that, with open and hidden learning, implementing proper control measures and influencing partners’ learning benefits and uncertainties can settle this dilemma. Furthermore, this study classifies the relationships of learning alliances into four types and gives an explanation of why horizontal learning alliances are usually more competitive than vertical ones.     

Using the DEPTH model to facilitate learning in an integrated Science and Technology pre-service primary teacher course

The paper describes the development of an Integrated Curriculum Science and Technology subject offering as part of the Bachelor of Education (Teaching) degree for primary pre-service teachers at Massey University in New Zealand. The paper discusses some of the difficulties and concerns which arise when pursuing this type of endeavour. This paper also highlights differences from earlier studies carried out at the same institution using the DEPTH framework. The concept of teaching/learning via a project is not new. The innovation here is the integration of Problem Based Learning (PBL) and the DEPTH approach. The previous study (O’Sullivan, Proceedings of Second International Primary Design and Technology Conference—Quality in the Making, Birmingham, 2001) highlighted the usefulness of the DEPTH framework as an evaluation tool to focus students’ responses to critiquing school teaching practice experience and also informing their own personal constructs. This study again found the framework useful but as a diagnostic tool.     

'Technoscience' Education: Empowering Citizens Against the Tyranny of School Science

The status quo for school science and technology is unacceptable. While the former often is required for admission to university engineering, as well as to science programmes, the latter is deemed most appropriate for less able, concrete thinkers. This situation persists, despite the fact school science tends to generate large groups of citizens who are relatively scientifically and technologically illiterate, largely as a result of its preoccupation with identifying and training potential scientists and engineers. This practice is tyrannical. It must be abandoned forthwith. A realistic alternative is a combined technology and science programme – perhaps called 'technoscience' education – that would treat science and technology as equals. Such courses may, as well, be more democratic in the sense that technological problem solving often is more natural to everyday situations that everyone may find useful, not just future scientists or engineers. A framework for combined technology and science courses is described and defended here. Originally developed through collaborative action research amongst practising teachers of science, the approach appears to be feasible, under certain – perhaps ideal – conditions. A number of changes to science and technology education may be necessary for broader implementation, not the least of which is a general retrenchment in expectations for pre-determined learning, along with adjustments to teacher education. Nevertheless, the approach is recommended because of its emphasis on: personalization, inclusion, problematization, explicitness, apprenticeship, authenticity, contextualization and freedom. This revised version was published online in July 2006 with corrections to the Cover Date.     

Sparking self-sustained learning: report on a design experiment to build technological fluency and bridge divides

In this article we report assessment results from two studies in an ongoing design experiment intended to provide a single school system with a sequence of secondary school level (ages 14–18) computer technology courses. In our first study, we share data on students’ learning as a function of the required introductory course and their pre-course history of technological experience. In order to go beyond traditional assessments of learning we assessed two aspects of students’ “learning ecologies”: their use of a variety of learning resources and the extent to which they share their knowledge about technology with others. In our second study we present patterns of course taking by male and female students who have almost completed their secondary schooling. In addition, we share case studies of students who elected to take more technology classes and leveraged their course experiences for internships, further education, and jobs. The quantitative and qualitative data are consistent with our hypothesis that students would become more technologically fluent and that their learning ecologies would diversify as a result of their project-based experiences.     

Disaggregating the group effect: Vertical and horizontal <Emphasis Type="Italic">keiretsu</Emphasis> in changing economic times

This paper examines the evolution of keiretsu group affiliation among members of horizontal and vertical keiretsu in Japan over two time periods: 1992–1997, and 1997–2002. We found that ties were more stable in the later time period and therefore restricted our empirical analysis to the 1992–1997 period. We also found differences in the response of vertically and horizontally linked groups to economic downturn and capital market change—vertically linked groups weakened their ties while horizontally linked groups showed more stability.     

Self-confidence does not come isolated from the environment

A smart way to build confidence is to gain the most success within the constraints of the environment. Trying things that the infrastructures fail to support may bring more frustration than confidence. Out of this consideration, Asian researchers might have concentrated on “original equipment manufacturing” type of research—exporting their research to the larger, Western market—in the past due to limited resources and colonial governance. However, with the change in environment, Asian researchers have to undo their old beliefs and participate in building infrastructures that facilitate original and advanced research in management.

Technological literacy: a multliteracies approach for democracy

Throughout history various grand narratives have impacted on technology education. In the current post modern era of globalization, technology education continues to struggle for relevance and definition, and takes various forms in different countries, but none seem resoundingly successful. The current development of what some have termed a digital democracy (Web 2.0)—the explosion of a new type of information technology which has become an integral characteristic of young people’s lives, is the starting point for this paper. Mainstream literacy theory was reconceptualised in the 1990’s with the foresight of anticipating the significance of a range of literacies. Broad conceptions of Technological Literacy have always accommodated multiple literacies, but must now essentially do so in a dynamic way through the pre-existing pedagogy of design.     

The social agenda of education for sustainable development within design & technology: the case of the Sustainable Design Award

The paper explores the adoption of the social dimensions of sustainability in technological design tasks. It uses a lens which contrasts education for sustainability as ‘a frame of mind’ with an attempt to bridge a ‘value-action gap’. This lens is used to analyse the effectiveness of the Sustainable Design Award, an intervention in post-16 technology education in three countries to encourage students and teachers to strengthen design for sustainability in their work. In each country, the intervention project provided varying combinations of teacher professional development, provision of learning resources, in school student support, lobbying of key curriculum policy makers and a student Award. Three types of teacher are identified by reference to their motivation for introducing sustainability into their teaching of design. These teacher types are linked to a hierarchy of teachers’ understanding of the social dimension of sustainability. The consequences for continuous professional development are examined. The findings are then used to critique the value of the lens.     

Do non‐competition agreements lead firms to pursue risky R&D projects?

This study investigates the impact of non‐competition agreements on the type of R&D activity undertaken by companies. Non‐competition agreements, by reducing outbound mobility and knowledge leakages to competitors, make high‐risk R&D projects relatively more valuable than low‐risk ones. Thus, they induce companies to choose riskier R&D projects, such that corporate inventions are more likely to lie in the tails of the inventions' value distribution (as breakthroughs or failures) and be in novel technological areas. This study uses data about U.S. patent applications from 1990 to 2000 and considers longitudinal variation in the enforcement of non‐compete clauses. The results indicate that in states with stricter enforcement, companies undertake riskier R&D paths than in states that do not enforce non‐compete agreements as strictly. Copyright © 2013 John Wiley & Sons, Ltd.