Customer‐specific synergies and market convergence

We use an analytical model to study the effects of customer‐specific synergies, i.e., synergies that arise when firms sell multiple products to the same customers. At the firm level, we show that the profitability of a customer‐specific synergy depends upon cross‐market correlation of customer preferences, differs when the synergy is cost‐based versus differentiation‐based, and can even be negative when the synergy is kept proprietary to a single firm. We also show that returns to imitating such a synergy may decline as it strengthens. At the industry level, we find that exploiting customer‐specific synergies causes endogenous market convergence at a point that depends upon whether the synergy is cost‐based or differentiation‐based and whether it is imitated. Copyright © 2015 John Wiley & Sons, Ltd.     

Ulrich Sarcinelli 60 Jahre

Ohne Zusammenfassung     

Socio-Economic Impact of Super Typhoon Harurot in San Mariano, Isabela, the Philippines

This paper reports on the socio-economic effects and coping mechanisms of farm households affected by super typhoon Imbudo in San Mariano, Isabela, the Philippines. Estimations of economic losses are given based on 150 interviews among the rural population. The relative loss per crop as part of the annual household income for yellow corn, banana, and rice were 64%, 24%, and 27%, respectively. Unexpectedly, most farm households did not change their agricultural strategies and continued with “business as usual” (78%). The main explanation for this lack of adaptation is found in the cultural and societal structure of farm households and their traders. This paper concludes with a short-term and long-term vulnerability and resilience analysis for the households, the socio-agricultural system, and the ecological system.     

Dynamic Structure, Exogeneity, Phase Portraits, Growth Paths, and Scale and Substitution Elasticities

The paper studies autonomous dynamic systems that allow for the existence of economic growth per capita without dynamically generating explosive solutions. The implications of any degree of homogeneity, including increasing returns to scale in production, must be carefully examined in two and higher dimensions. The necessity of introducing some exogenous state variables is demonstrated within homogeneous dynamic systems. The authors solve and demonstrate the dynamic implications of scale and the substitution elasticities in various basic (two‐factor) and augmented (multifactor) aggregate growth models.     

Productivity Trends and the Sterling Real Exchange Rates*

This paper provides favorable econometric evidence for a productivity‐based model of the pound/euro real exchange rate. We find that a 1% increase in UK productivity is consistent with a 3.5% real depreciation of sterling. Likewise, a 1% increase in euro area productivity is compatible with a 5.16% real appreciation of sterling. The asymmetric response of UK and foreign productivity shocks corresponds well with our model if UK labor supply is more elastic than euro area labor supply. Estimates of equilibrium exchange rates suggest that sterling was not overvalued at its 2004Q3 level vis‐à‐vis the euro.     

Measuring Inefficiency Via Potential Improvements

In a recent paper Bogetoft and Hougaard (1999) suggest the use of a new potential improvements approach to efficiency evaluation which has the advantage of separating the issue of benchmark selection from the issue of efficiency measurement. In the present paper the potential improvements inefficiency index is reexamined and a DEA-like approach for its determination is suggested. The approach is called Multi-directional Efficiency Analysis (MEA). An empirical example on Danish dairy farms is used for illustrative purposes and comparisons with various versions of DEA.     

Rational Inefficiencies

In this paper, we suggest that inefficiency may be an indirect, on-the-job compensation to agents in an organization. We show how to use actual production data to reveal the trade-offs between different inefficiencies (slacks). Moreover, we discuss how to use this to improve productivity analysis as well as decision making and incentive provisions in organizations.