Pricing Network Interconnection: Advantages Held by Integrated Telecom Carriers

A recurring telecommunications policy debate centers on whether incumbent, vertically integrated local exchange carriers have an incentive to discriminate in price against down-stage service rivals who interconnect to their network (a price squeeze). The concern is typically voiced in one of two claims: (1) there is an incentive for an incumbent to use a price squeeze when access prices are set above long-run incremental cost; or (2) prices set at that cost are preferred for interconnection because they eliminate incentives for a price squeeze. In principle, form (1) is generally true (Proposition 1), but form (2) is generally not (Proposition 2), The proof of these Propositions reveals why pricing access at long-run incremental cost coupled with appropriate price floors in the down-stage market does eliminate the incentive to squeeze.     

Consumer valuation of safety‐labeled free‐range chicken: results of a field experiment in Hanoi

This article presents results of a field experiment designed to assess willingness to pay for safely produced free‐range chicken in Hanoi, the capital of Vietnam. Improved safety of chicken production and trading is suggested as an important component of avian influenza control strategy, which aims to address the direct costs of avian influenza as well as the global public health externality. However, consumer demand for safely produced free‐range chicken is unknown. Products that have credible food labeling are not common in traditional markets where the majority of free‐range chicken is purchased. Valuing characteristics of products sold in informal markets is a major challenge that our experiment overcomes. As part of the experiment, we provided several vendors from these markets with safety‐labeled free‐range chicken. Consumer valuation of safety labeling was elicited through having experiment participants, who were representative of potential consumers, select between discount coupons for either safety‐labeled chicken or regular chicken. Results indicate that consumers will pay at least $0.50, or a 10–15% premium, per chicken purchase for safety labeling, which emphasizes safe production, processing, and transport conditions. This premium is smaller than the premium currently paid for traditional chicken varieties that are considered to be tastier. Consumers with more education have higher valuation of safety labeling. Hence, safety labeling for high‐quality free‐range chicken can play a role in controlling livestock disease and improving public health.     

Extremity in horizontal and vertical Likert scale format responses. Some evidence on how visual distance between response categories influences extreme responding

In four survey experiments we show that people generally answer more extremely to survey items presented in vertical versus horizontal Likert formats. Our findings suggest that this effect may be at least partly driven by differences in the visual range spanned by the response scale (i.e. the visual distance between endpoint response categories is larger in horizontal than in a vertical format). In addition, compared to traditional horizontal Likert data, vertical Likert data contain more variance, which is mainly non-substantive. As a result, data obtained with scale formats that have different distances between response categories (as is typically the case for vertical vs. horizontal formats) may lead to differences in measurement model parameter estimates like residual terms, and in some cases factor loadings and construct correlations. Based on these results, we provide recommendations on the use of response scale formats in online surveys, bearing in mind that several online survey tool providers promote the use of vertical Likert formats and even automatically change traditional horizontal formats of Likert-type items to vertical Likert formats when viewed on small screens (e.g., on mobile phones).     

ALICE: Composite leading indicators for euro area inflation cycles

This paper develops Area-wide Leading Inflation CyclE (ALICE) indicators with the aim to provide early signals for turning points in the euro area headline and core inflation cycles. The headline (core) ALICE leads the reference cycle by three (four) months and the lead times extend to five (nine) months based on longer-leading series. Both ALICE indicators signalled turning points in the inflation cycles ex post and also performed well in a simulated real-time exercise. Moreover, in particular the headline ALICE also appeared to be useful for quantitative forecasting of the direction and level of inflation.     

Geothermische Stromerzeugung in Deutschland — Stiefkind oder schlafender Riese?

This contribution analyses the development of power generation from geothermal energy in Germany. It considers research funding schemes, the support through the german Renewable Energy Sources Act (EEG) and the role of decisive actors as well as technical, economic and societal framework conditions. Compared to other renewable energy sources research funding for geothermal energy had played an inferior role in the past. After the potentials for geothermal power generation had been underlined by a study in 2003, geothermal power gained more political and institutional advocates. Subsequently it was equipped with a higher tariff in the EEG 2004 and led to realization of demonstration projects. Yet, the appliance of technologies for electrical power transformation, ORC and Kalina, are at the very beginning. Presently, the geothermal energy industry consists of a small amount of medium-sized businesses. Regional and nationwide energy providers, acting as operators and investors, do not exert much pressure in view of limited returns. Despite the compatibility with existing power supply systems, constraints to the expansion of geothermal energy use — above all exploration risks and high drilling costs- are likely to lead to a step-by step enhancement rather than a rush.     

‘Business as usual?’ Retail employee perceptions of organizational life following cross-border acquisition

The question of whether strong organizational cultures can be exported across borders has been continually debated in the management and business literature. With increased retail internationalization, the question arises in how far global retailers will be able to transpose their cultural values – which are regarded as key levers to business success – into other national contexts. A case study of the acquisition of a UK retailer reveals workforce compliance to behavioural norms and consent to company values at Schein's () second tier of organizational culture. However, the cultural integration espoused in the retailer's literature is not achieved, but differentiation and fragmentation (Martin, , ) prevail at store level, despite the probable existence of a strong sectoral culture (Ogbonna and Harris, ).     

Co-commissioning of public services and outcomes in the UK: Bringing co-production into the strategic commissioning cycle

Commissioning as a planning, resource mobilization and prioritization activity needs to harness user and community co-production of public services and outcomes. Based on a public value model, we map how commissioners can go beyond traditional consultation and participation processes to achieve co-commissioning with citizens. Moreover, we discuss how public sector organizations can use their strategic commissioning process to support and embed citizen voice and action in their problem prevention, treatment and rehabilitation strategies to achieve the quality of life outcomes desired by both citizens and public service commissioners.     

Catch me if I fall: Cross-national differences in willingness to take financial risks as a function of social and state ‘cushioning’

Knowledge about the existence and source of national differences in willingness to take risks plays a vital role in ensuring successful communication, collaboration, and understanding across countries, from the personal to the organizational and political/social domain. The current study investigates differences in financial risk-taking willingness between countries as a function of social and state ‘cushioning’, i.e. the extent of a person’s social support network and the state’s social-safety support network. The study compares large-scale household data and self-reports on willingness to take financial risks across three countries differing in their state support networks: Austria, Italy and the United States. Results show that personal social support network size influences risk-taking willingness (social cushioning). Furthermore, and most notably, we find evidence of an interactive relationship between social and state cushioning. High state cushioning renders the influence of social cushioning on financial risk-taking willingness less important. Contributions to management and business practice as well as theory on the influence of personal distance to financial support on risk-taking willingness are discussed.