Optimal pricing of a two-sided monopoly platform with a one-sided congestion effect

This paper studies the optimal pricing of a two-sided monopoly platform when one side is affected by congestion. We show that the divide-and-conquer pricing strategy (or skewed pricing) depends not only on the relative magnitude of the sides’ price elasticities of demand but it also depends on the marginal congestion cost that an agent imposes on the others. Compared with the no-congestion case, this pricing strategy gives rise to some interesting features that violate the results of Rochet and Tirole (J Eur Econ Assoc 1:990–1029 in 2003, Rand J Econ 37:645–667 in 2006). In the case of equal price elasticities of demand, the no-congested side is charged the highest price. On the other hand, in the case of different price elasticities, the platform congestion pricing depends on a certain threshold of the marginal congestion cost. We show, under some conditions, that the divide-and-conquer pricing strategy is reversed. In the social context, the Rochet and Tirole’s (J Eur Econ Assoc 1:990–1029 in 2003) cost allocation condition is modified by the congestion cost. We show that the congestion does not only affect the buyers’ contribution to the sellers’ surplus, but it also affects the sellers’ contribution to the buyers’.     

Does Choosing a Section of the Stock Exchange Matter in the IPO of SMEs? The French Case

The empirical study presented in this article is localized in between two major fields of research in finance: underpricing of Initial Public Offerings (IPOs) and financial markets integration or segmentation.This empirical work proves that the institutional and political intention, translated in a segmentation of financial markets dedicated to Small and Medium-sized Enterprises has an impact on the financial environment of SMEs and consequently on the level with which IPOs are underpriced. The differences between companies listed on both parts devoted to SMEs correspond to the ambition of the French Stock Exchange. And these differences result in surprising pricing: a lower profile in risk does not mean a better valuation. At least, our study on IPOs of SMEs could help managers to choose the appropriate section for their firm.     

The Challenge of the Global Business Revolution

This paper looks closely at a key hypothesis of Stephen Hymer,namely that a small number of giant corporations would soondominate each sector of the global economy. The article showsthat, although the nature of the large corporation has changedprofoundly, Hymer's basic insight has proven correct.     

Risk,learning, and technology adoption

This article explores how decision makers learn and use information, with an application to the adoption of biotechnology in agriculture. The empirical analysis relies on experimental and survey data measuring risk preferences, learning processes, and the adoption of genetically modified (GM) seeds among U.S. grain farmers. While controlling for risk aversion, we link individual learning rules with the cognitive abilities of each decision maker and their actual GM adoption decisions. We find evidence that very few individuals are Bayesian learners, and that the population of farmers is quite heterogeneous in terms of learning rules. This suggests that Bayesian learning (as commonly assumed in the analysis of agricultural technology adoption) is not an appropriate characterization. In addition, we do not find a strong relationship between observed learning styles and the timing of GM seed adoption. To the extent that learning is a key part of the process of technology adoption, this suggests the presence of much unobserved heterogeneity in learning among farmers.     

The performance effects of major workforce reductions: longitudinal evidence from North America

This paper investigates the performance effects of major job cuts.1 1 Like Wayhan and Werner (2000 Wayhan, V. and Werner, S. 2000. The Impact of Workforce Reductions on Financial Performance: A Longitudinal Perspective. Journal of Management, 26: 341–63. [Crossref] , [Google Scholar]), we interchangeably use the expressions ‘workforce reduction’ and ‘job cuts’ instead of the broad concept of ‘downsizing’ which is subject to multiple confusing definitions (DeWitt, 1998 DeWitt, R.L. 1998. Firm Industry and Strategy Influences on Choice of Downsizing Approach. Strategic Management Journal, 19: 59–79.  [Google Scholar]). Using data from Compustat S&P database, we examined the longitudinal impact of workforce reductions on labour productivity and operational indebtedness of 239 US and Canadian companies. Repeated measures analysis showed that firms that substantially cut jobs failed to improve their labour productivity and their operational indebtedness. Then, taken a step further, statistical analysis surprisingly revealed that firms that cut the highest proportions of their workforce had a significant deterioration of their operational indebtedness and a non-significant change of their labour productivity. These results call into question the economic legitimacy of major workforce reductions increasingly institutionalized to the detriment of the strategic approach of HRM.     

Worker Information and Firm Disclosure Analysis on French Linked Employer–Employee Data

Information disclosure requirements significantly increased in French listed companies in the early 2000s, converging toward the U.S./U.K. stock market standards. We investigate the consequences of this process regarding worker information: does more information for shareholders mean more information for workers? Our empirical analysis takes advantage of a French establishment survey that generates linked “employer–employee” data at two points in time, 1998 and 2004. Our results show that worker information has improved in listed companies as an externality of the financialization process. We find, however, that this extra information is only partially correlated with greater employee satisfaction.     

The economics of the smart card industry: Towards coopetitive strategies

This article uses an explorative case study of the smart card industry where ‘coopetition’ is to be found. We show that the nature of interaction between smart card actors, dealing with industry and market conditions that create a very complex competitive landscape, constitutes a mix of competition and cooperation. Here, we assume that the paradoxical aspect of competition and cooperation [Quinn, R.E. and Cameron, K.S. (1988) Paradox and Transformation. Cambridge, MA: Ballinger] can be juxtaposed in order to understand the strategic phenomena characterizing actors' interactions. Actors cooperate in some activities and compete on other ones. Such strategic behaviour is called coopetitive strategy, which is increasingly adopted by high-tech industry players.     

Endogenous growth and environmental policy: are the processes of growth and tertiarization in developed economies reversible?

The starting point for this article is the idea put forward by Gadrey (2008, 2010) that environmental problems and a policy of addressing them by introducing an environmental tax could trigger economic contraction and downscaling and a shrinking of the service sector in developed economies. The purpose of this article is to test these hypotheses using an evolutionary simulation model. To this end, we use a model of endogenous growth and structural change into which an environmental dimension is incorporated. The results of our simulations certainly reveal structural change within service industries but no change in the distribution of employment between services and manufacturing. Furthermore, we show that the environmentally desirable stagnation of labor productivity in the capital goods sector is compatible with a largely positive growth trend in the economy as a whole, with the development of knowledge-intensive business services apparently able partially to offset the stagnation of productivity in the capital goods sector. We conclude by emphasizing the need for environmental innovation in service activities and cast doubt on the long-term effectiveness of an environmental tax in the fight against pollution.     

Measuring innovation in a ‘low-tech’ service industry: the case of the Dutch hospitality industry

This article presents the findings of a survey among 613 firms in the Dutch hospitality industry adopting a demarcation perspective. The paper illustrates that innovation in this service industry is much higher and more varied than regularly reported. It further indicates that innovation activities in ‘low-tech industries’ can be in place with less formalized forms of (service) innovation management. Finally, it is shown that a higher innovation intensity is associated with better firm performance. Based on this, some implications for managing innovation in the hospitality industry are discussed. Finally, some fundamental issues in the measurement of service innovation are raised.