Introduction to the Special Issue on “The Intersection Between Industrial Organization and Healthcare Economics”

This article introduces the special issue on the intersection between industrial organization and healthcare economics. This intersection has received increasing research interest, growing from 2% of the industrial-organization literature in 1991 to 6% in 2016. We describe the nine included articles, which cover a range of healthcare markets that include hospital services, insurance, and pharmaceuticals.     

Economies as an Antitrust Defense: The Welfare Tradeoffs—Introduction to the Special Issue

Review of Industrial Organization - This special issue is occasioned by the 50th anniversary of the publication of Williamson’s (Am Econ Rev 58:18–36, 1968a) seminal analysis of the...     

Are EU Leading Firms Returning to Core Business? Evidence on Refocusing and Relatedness in a Period of Market Integration

This paper tests, for 108 diversified EU manufacturing leaders faced by the EU integration shock (1987–1997), if firms responded to increased competitive pressure by readjusting their industry-mix around a core of related activities. Our results show that, in spite of limited reduction in diversification, firms pursued strategies of related constrained diversification by expanding the output of industries related to the core. We also find that complementarity amongst the firm’s operations – i.e., sharing common intermediary products or common output markets – drives the refocusing. The effect is stronger for highly diversified firms. Our findings suggest that EU leaders are moving toward a more efficient use of their resources.     

Union Immobility? Trade Unions and the Freedoms of Movement in the Enlarged EU

East–West union co‐operation in Europe is discussed as the most serious test to cross‐border union solidarity, in the light of new frameworks capable to make sense of transnational trade union activity and alternative to theoretical nationalism. The empirical assessment of trade union chances reviews the activities of trade unions in the UK, Germany, Austria and Poland on foreign investment, migration and movement of services. Secondary evidence and case studies show that the strength of transnational union action does not depend on the country, but rather on its form. ‘Structural’ Europeanization remains weak (e.g. in most European Works Councils), while network‐based action is displaying strong developments, especially on migration, but least on the movement of services.     

Enhancing the EU’s Energy Supply Security—An Evaluation of the Nabucco Project and an Introduction to Its Open Season Capacity Allocation Process

The Russian dominance of the European Union (EU)’s natural gas supplies has put the independence of the EU at risk. This paper presents an evaluation of the Nabucco gas pipeline project—considered by some to be the most economical link to new natural gas sources—to determine whether it would help the EU to diversify its gas supplies in a cost-effective way, thus improving its energy supply security in future years. Furthermore, an introduction to the Nabucco Open Season Capacity Allocation Process is given. Applying empirical methods and competitive pipeline benchmarking analysis, three hypotheses related to the Nabucco natural experiment are evaluated: while hypothesis (1) focuses on the strength of demand for the Nabucco pipeline transportation capacities, hypotheses (2) and (3) examine fair usage rights and overall cost effectiveness of this project. Empirical results show that, due to the EU’s increasing long-term gas demand and decreasing indigenous production, there is a strong demand for the Nabucco gas pipeline by gas shippers. Furthermore, the empirical survey reveals that Nabucco provides a fair capacity allocation of fifty percent to third party shippers. Finally, competitive benchmarking shows Nabucco is indeed a cost-effective new pipeline and a link to fresh natural gas sources for Europe. Based on these results, it is anticipated that “Nabucco” will not only remain the name of a famous opera, but will also become the term associated with one of the most successful energy projects in Europe.     

Development Targets of China''''s Textile Machinery Manufacturing in the next 5 Years

During the 10th Five-Year, the development of textile machinery will be focused on the general targets of our domestic textile industry-industrial restructuring, technical progress, products upgrading, quality improvement of apparel fabric, replace imported fabric with domestic fabric, and expansion of export. For the benefits of apparel quality, great efforts will be made to improve the technologies in the production process of fiber manufacturing, yarn spinning, fabric weaving, dyeing-printing and finishing, and to encourage the manufacturers to compete both in domestic market and in international market.     

Britain and BrExit: Is the UK more attractive to supervisors? An analysis of the wage premium to supervision across the EU

We studied which European Union (EU) economy was more attractive prior to Brexit for employees in supervisory positions. We estimate the extra wage that supervisors earn relative to their subordinates—the wage premium to supervision (WPS)—at different quantiles of distribution of wages for 26 European economies. We find that the UK rewards supervisors more than other EU economies. Moreover, the WPS increases with wage and so increases wage inequality. Over 10% of the WPS depends on the national economic context. We discuss the implications for immigration and policymakers in relation to the post-Brexit process.     

Path dependencies versus efficiencies in regulation: Evidence from “old” and “new” broadband markets in the EU

This paper examines the determinants of sector-specific regulation imposed on broadband markets related both to efficiency objectives of regulators and to those of narrowly defined interest groups. We test hypotheses derived from the normative and positive theoretical literature employing recent panel data on 27 European Union member states taking into account endogeneity of the underlying regulation and market structure variables. Our empirical specification employs three different estimators based on instrumental variables in order to identify causal effects. We find evidence supporting both regulators pursuing normative objectives and inefficiencies related to regulatory path dependence, bureaucracy goals and an inadequate consideration of competition from mobile broadband networks. Our results call for adjustments in the institutional design of the decision-making process under the current European Union regulatory framework.     

Lenzing Group：Ongoing Difficult Market Situation in the First Half of 2014

The business development of the Lenzing Group in the first half of 2014 was impacted by the ongoing difficult market conditions featuring considerably loweR average fiber selling prices.The cost reduction program excelLENZ successfully initiated in 2013 was onlv able to partially offset the decline in sales and earnings in the first six months of 2014.     

The Solar Shakeout – Capital Market Reactions to Bankruptcy Announcements in the German Solar Industry

This paper investigates how bankruptcy announcements in the German solar industry affect the stock market returns of announcing firms and their competitors. We show that German solar firms experience negative capital market reactions to their own bankruptcy announcements and to the announcements of their competitors. Cross-sectional analysis reveals that these negative information externalities are magnified by higher leverage. Further analysis also indicates that these negative information externalities are valuable predictors in short-term default probability models.     

Policy Implications of the Effects of Concentration and Multimarket Contact in China’s Airline Market

Unlike many other mergers in developed countries, which might have been assessed and their effects estimated by antitrust authorities before being granted antitrust immunity, the airline mergers that swept China’s airline industry in 2002 occurred with no antitrust challenge. These mergers provide the opportunity to study important market power issues in China’s airline markets. Given that increased concentration and multimarket contact are the main legacies of an airline merger, the effects of mergers on these variables can raise the potential for the exercise of market power. However, an examination of the period 2002–2004 during which the Chinese airline mergers occurred shows that the resulting increased concentration and enhanced multimarket contact did not have important consequences for airfares in Chinese city-pair markets. The presence of Hainan Airlines appears to have played an important role in suppressing the airfares charged by China Eastern and China Southern.     

Willingness to pay for the “Green Food” in China

With use of payment card survey data of willingness to pay (WTP) for the “Green Food”, a unique food certification in China, this study finds that age and income are important for the WTP for the Green Food in China. There are structural differences in consumer preference for Green Food between the large city and the small county. Consumers in China, on average, are willing to pay 47% more for Green vegetables and 40% more for Green meat than for their conventional counterparts. Compared with the real markets and the previous studies, our results are very consistent and reliable.     

Privatization of agricultural extension services in the EU: Towards a lack of adequate knowledge for small-scale farms?

Small-scale farming involves millions of households in the EU and plays an important role in the rural economy. A significant percentage of these farms produce commodities for the market. This productive dimension is often overlooked, however, as is the technical support needed by these farms. The privatization of national farm advisory systems (NFAS) has an impact on small-scale farming that should be better assessed. This paper, which looks at the characteristics of intangible services, helps demonstrate how the privatization of advisory services may have unexpected adverse effects on small farms. The dismantling of coordinating authorities has made these farms less visible as a target client. Less direct interaction with advisors makes it more difficult to co-produce knowledge that is relevant to their needs. In addition, back office activities such as scientific monitoring, building and updating databases and scientific experiments have been restructured in a way which does not support their interests.     

Do Homeowners Mark to Market? A Comparison of Self‐Reported and Estimated Market Home Values During the Housing Boom and Bust

This article examines homeowners’ self‐reported values in the American Housing Survey and the Health and Retirement Study from the start of the recent housing price run‐ups through recent price declines. We compare ZIP‐Code‐level market‐based estimates of housing prices to those derived from homeowners’ self‐reported values. We show that there are systematic differences which vary with market conditions and the amount of equity owners hold in their homes. When prices have fallen, homeowners systematically state that their homes are worth more than market estimates suggest, and homeowners with little or no equity in their homes state values above the market estimates to a greater degree. Over time, homeowners appear to adjust their assessments to be more in line with past market trends, but only slowly. Our results suggest that underwater borrowers are likely to understate their losses and either may not be aware that their mortgages are underwater or underestimate the degree to which they are.