Product differentiation, cost‐reducing mergers, and consumer welfare

Abstract.  Cost synergies are an explicitly recognized justification for a two‐firm merger, and empirical techniques are now widely used to assess the impact of cost‐reducing mergers on prices and welfare in the post‐merger market. We show that if the merger occurs in a vertically product differentiated market, then the merger will lead to a reduction in product offerings that limits the usefulness of pre‐merger empirical estimates. Indeed, we further show that in such markets, two‐firm mergers will typically lead to higher prices regardless of the merger's cost savings. JEL classification: L10, L41     

MRP II (material requirements planning): one year later

This article addresses the continued need for the behavior change process that must be managed long after materiel requirements planning (MRP II) implementation. Mason & Hanger, Pantex Plant is the final assembly and dismantlement facility for all United States nuclear weapons. On October 1, 1990, Mason & Hanger implemented a full production cutover to MRP II. One year later, following class A certification, the MRP II implementation team is still actively managing the change process through education and training programs and overall continuous improvement initiatives. Actual behavior change problems are identified together with the proven solutions implemented in a government-owned, contractor-operated facility environment. Performance measurements ranging from senior management planning to shop floor accomplishments and cost variance reports are shown as normal management tools used to identify target improvement areas.     

The Roles of Innovators and Labor in a Schumpeterian Factor Endowments Based Model of Intra‐industry Trade

This paper builds a model of Schumpeterian innovation and trade that emphasizes endowments of innovators and labor as a key factor in determining the pattern of trade. The model suggests a strong complementarity between intra‐industry and inter‐industry trade. The pattern of inter‐industry vs intra‐industry trade is analyzed using the Grubel–Lloyd index. The theoretical model predicts that the prominence of intra‐industry trade is a nonlinear function of the ratio of the proportion of world knowledge domestically generated to the domestic share of the world labor supply. Strong empirical evidence for this key result is presented and implications are discussed.     

The Redistributive Effects of a Minimum Wage Increase in New Zealand: A Microsimulation Analysis

This paper examines the potential effects on inequality and poverty of a minimum wage increase, based on a microsimulation model that captures the details of household composition and the income tax and welfare benefit system and allows for labour supply responses. Results suggest that, largely due to the composition of household incomes, a policy of increasing the minimum wage has a relatively small effect on the inequality of income per adult equivalent person, and a money metric utility measure, using several inequality indices. Hence, the minimum wage policy does not appear to be particularly well targeted, largely due to many low wage earners being secondary earners in higher income households, while many low income households have no wage earners at all. These results are reinforced when allowing for wage spillovers further up the wage distribution. Nevertheless, a minimum wage increase can have a more substantial effect on some poverty measures for sole parents in employment.     

LearnSmart,adaptive teaching,and student learning effectiveness: An empirical investigation

Facing the growing number of digital natives entering the classroom, business professors look for innovative ways to enhance the student learning experience. The authors focus on the online interactive learning tool LearnSmart (McGraw-Hill, New York, NY), and examine its impact on student learning effectiveness by testing the direct and indirect relationships among perceived competence, perceived challenge, instructors, perceived value, and satisfaction with LearnSmart. Constructionism served as the theoretical foundation for this study. About 215 students at a public university in the United States took the survey and 197 valid responses were received. Regression analysis results showed that the use of LearnSmart improved students' perceived competency, thus increasing their perceived value of using LearnSmart, as well as their satisfaction with LearnSmart. Perceived value was also found to mediate the impact of perceived competency on satisfaction with LearnSmart, and the instructor played a significant role in facilitating and improving student learning. Perceived challenge impacted student's perceived value of using LearnSmart, but it did not influence satisfaction with LearnSmart.     

Bundling attractions for rural tourism development

Tourism is often regarded as a viable solution to economic crisis, especially for remote areas without many development options. While many tourism destinations have strong cultural or heritage assets, not all destinations have primary attractions that can bring visitors to the region. Rather than developing special interest “themes”, rural areas that do not have enough of any one type of tourism resource to act as a primary draw may consider bundling different attraction types to increase visitation. The purpose of this study is to investigate the preferences of visitors to secondary heritage sites and explore the relationship between heritage tourism and alternative, non-heritage activities in rural areas. Findings revealed that motivation to visit small-scale heritage sites consisted of two dimensions: learning and recreation. The two motivational dimensions influenced visitors’ interest in different heritage attractions and likelihood of visiting heritage tourism “scenarios”. As for alternative activities, there was a cluster of “popular” activities that were enjoyed by both learning-oriented and recreation-oriented respondents, but recreation-oriented visitors were more interested in nature-based activities and sport-related activities than learning-oriented visitors. Findings can help rural communities improve secondary attractions and diversify their tourism product by bundling heritage attractions with non-heritage activities.