STRATEGIC VERTICAL INTEGRATION WITHOUT FORECLOSURE*

We determine the endogenous degree of vertical integration in a model of successive oligopoly that captures both efficiency gains and strategic effects. Foreclosure effects are purposely left aside. The profitability of integration originates in the greater ability of integrated firms to adopt a specific type of technologies. We show that vertical merger waves can stop by themselves before integration is complete because of strategic substitutability in vertical integration. This is in contrast to the strategic complementarity result in McLaren [2000] that leads to either complete integration or complete separation.     

S. Budge. Vom theoretischen Nominalismus,Jahrbücher für National Oekonomie und Statistik” December 1919

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S. Budge. Vom theoretischen Nominalismus, Jahrbücher für National Oekonomie und Statistik December 1919Waren- oder Anweisungstheorie des Geldes. Archiv für Sozialwissenschaft und Sozialpolitik Band 46, Heft 3

     

On building better construct measures: Implications of a general hierarchical model

Four problems occur in the scale development process: (a) defining the construct, (b) drawing items from multiple domains, (c) identifying dimensions, and (d) showing nomological validity. In order to minimize these problems, the authors propose a general hierarchical model (GHM) that provides an organizational structure for placing many of the individual difference constructs used in marketing and consumer behavior. Three principles, which were derived from the GHM, add to the current scale development paradigm: (a) Define and test the construct within a hierarchical network that includes antecedents and consequences, (b) define and test the construct's dimensionality, and (c) match the construct's items to its level in the hierarchical system. By using these steps in scale development, researchers can build more precise measures possessing higher levels of validity and reliability. © 2008 Wiley Periodicals, Inc.     

Arthur McIvor and Ronald Johnston. Miners' Lung: A History of Dust Disease in British Coal Mining

Over the course of the past two decades, historians have begunto pay serious and sustained attention to the history of occupationalhealth, much of it analyzing the role of social, economic, andpolitical factors in the medical recognition of industrial disease.Although much has been published about the British coal industry,this is the first book to address the issue of health and safetyin this critically important sector of the British economy.Miners’ Lung, building on the work done by Jo     

Predicting workload requirements for scheduled health care services, with an application to radiology departments.

A model is developed for predicting workload requirements for scheduled health care services. The model is then applied to an actual planning problem for a radiology department. The probability distribution of future workload is represented by the convolution of two families of random variables such that a compound Poisson process adequately describes workload requirements. The model developed herein can be applied to a wide assortment of capacity-expansion problems that are characterized by discrete demands (e.g. number of jobs) occurring in a given period of time, where the amount of time needed to complete each job is a continuous random variable.     

Know-how transfer: the role of social,economic/competitive,and firm boundary factors

Using policy capture methodology, this study examines the effect of different contextual cues upon the know-how transfer efforts reported by 79 biotechnology R&D scientists. Theoretically, these different cues are believed to affect the scientists' expectation of reciprocity, and thus their know-how transfer behavior. Three types of contextual cues between the know-how source and recipient were studied: competitiveness, social relationship, and within or across firm boundaries. We find these cues are associated, in the expected directions, with know-how transfer effort. The findings support a general theory of reciprocity whereby social, competitive, and firm boundary cues have a summative effect upon the expectation of reciprocity and know-how transfer. This is the first study to examine how these cues taken together influence the know-how transfer decision. Copyright © 2008 John Wiley & Sons, Ltd.     

Proof of nonparticipation in a price fixing conspiracy

When a group of firms colludes on price, the industry price will rise even when there are some firms that do not participate in the conspiracy. If the government or private parties file antitrust suits, the noncolluders face the problem of establishing their innocence since their prices rise along with those of the colluders. We propose a simple output test. Under various models of oligopoly pricing—Bertrand, Cournot, and Stackelberg—we show that the colluders restrict their output while the noncolluders take advantage of the higher price by expanding their outputs. Thus, distinguishing between colluders and noncolluders involves simply observing the output behavior of the industry members.The authors appreciate the support of the Public Policy Research Center at the University of Florida. We regret that B&R Associates is purely imaginary as is the industry.     

Industrial relations in Canada: a search for accommodation

Here the author reviews recent trends and the emerging issues in Canadian industrial relations. The focus is on union organization, the changing economic, labour market and public policy environment, and the key issues facing unions and management. He argues that both unions and management must continue to seek accommodation to survive in the competitive world of the 1990s.     

Classificatory income smoothing: The impact of a change in regime of reporting financial performance

Financial Reporting Standard No. 3 (FRS3) regulated the reporting of financial performance by UK firms from 1993 until the adoption of International Financial Reporting Standards in 2005. FRS3 outlawed extraordinary items, but allowed a clearer distinction between recurring and transitory income by giving firms discretion over the classifications of unusual (i.e. exceptional) items and the option to disclose alternative EPS. Through these provisions FRS3 increased the scope for classificatory choices as a means to highlight persistent profitability. We examine the impact of FRS3 on classificatory smoothing by UK firms and document a significant rise in this practice post-FRS3. We find that this increase is due mainly to deviations of net income from expected earnings inducing a significantly higher level of classificatory smoothing post-FRS3. Additional analysis shows that earnings are substantially more persistent at the pre-exceptional level post-FRS3. Overall, our results suggest greater use of classificatory choices to highlight sustainable profitability after the change in performance reporting regime.