Empirical economics acknowledges the cooperation of

Empirical economics acknowledges the cooperation of     

Full price competition and Dupuit's defense of the long-and-short-haul “discrimination”

Condemnation of the long-and-short-haul discrimination has been nearly ubiquitous in the literature on economic theory and transportation. However, the French economist Dupuit developed a case against all transport regulation by relating it to a defense of the practice of place discrimination before the middle of the nineteenth century. He did so, moreover, within an early elaboration of a full price explanation of competitive functioning. This paper analyzes the idea in Dupuit's context and argues that this so-called form of price discrimination is actually an efficient and necessary form of the competitive process.     

Firm/interruptible gas pricing patterns in a regulated environment

Conclusion This study provides empirical tests for the effects of rate base regulation, curtailment priorities, fuel clauses, and elected commissioners on firm/interruptible gas pricing patterns. These regulations do alter observed pricing patterns with curtailment priorities, fuel clauses, and elected commissioners all producing net social gains. Rate of return regulation imposes social costs resulting in a net decrease in social welfare. Ignoring the political influences upon regulators, regulation generally encourages consumption at the peak relative to the off-peak. Nonetheless, overall social welfare is improved if all four types of regulatory characteristics are present, since most rates are reduced from their monopoly levels.     

Contradictions of the Climate-Friendly City: New Perspectives on Eco-Gentrification and Housing Justice

As local governments and corporations promote ‘climate friendliness’, and a low-carbon lifestyle becomes increasingly desirable, more middle- and upper-income urban residents are choosing to live near public transit, on bike- and pedestrian-friendly streets, and in higher-density mixed-use areas. This rejection of classical forms of suburbanization has, in part, increased property values in neighborhoods offering these amenities, displacing lower-income, often non-white, residents. Increased prevalence of creative and technology workers appears to accelerate this trend. We argue that a significant and understudied socio-environmental contradiction also occurs where the actual environmental outcomes of neighborhood transformation may not be what we expect. New research on greenhouse gas emissions shows that more affluent residents have much larger carbon footprints because of their consumption, even when reductions in transportation or building energy emissions are included. We describe an area in Seattle, Washington, the location of Amazon's headquarters, experiencing this contradiction and show a distinct convergence of city investments in low-carbon infrastructure, significant rises in housing prices and decreases in lower-income and non-white residents. We conclude with a discussion of a range of issues that require more attention by scholars interested in housing justice and/or urban sustainability.     

REPORTING GUIDELINES FOR META-ANALYSIS IN ECONOMICS

Meta-analysis has become the conventional approach to synthesizing the results of empirical economics research. To further improve the transparency and replicability of the reported results and to raise the quality of meta-analyses, the Meta-Analysis of Economics Research Network has updated the reporting guidelines that were published by this Journal in 2013. Future meta-analyses in economics will be expected to follow these updated guidelines or give valid reasons why a meta-analysis should deviate from them.     

The Emergence of Proto-Institutions in the New Normal Business Landscape: Dialectic Institutional Work and the Dutch Drone Industry

In the current business landscape, in which technology-enabled entrepreneurship is part of the New Normal, regulatory institutional structures are in constant flux. Previous studies have framed the challenges facing entrepreneurs in mature organizational fields as avoiding the power of overbearing regulators long enough to establish the legitimacy of their ventures. In fields typified by New Normal conditions, however, regulatory frameworks for evaluating new technology-enabled ventures are often still lacking. Regulators may choose to actively reach out to entrepreneurs to arrive at a better understanding of the radical technological changes and high-frequency entrepreneurial behavioural adaptations that occur in these settings. To grasp how novel regulatory institutional structures come about in the New Normal business landscape, we conducted a processual study of the emergence of a new technology that is the Dutch remotely piloted aircraft systems (drone) industry between 2000 and 2018. Our findings show that regulatory proto-institutions result from dialectic institutional work in the form of structured interactions between entrepreneurs and regulators. Specifically, we present a process model that reveals how new regulatory structures evolve in contexts where high levels of technological and behavioural change induce systemic uncertainty, and enlarge the interdependence between entrepreneurs and regulators. We suggest that our process theory of proto-institutional emergence generalizes towards other organizational fields in which technology-enabled entrepreneurship has become the main driver of growth. Theoretically, our findings speak to the literatures on institutional work, proto-institutional emergence, and the New Normal business landscape.     

Corporate diversification and innovation: Managerial myopia or inefficient internal capital markets?

Which is more innovative: the decentralized, diversified firm, or the centralized, more narrowly focused firm? The economics and finance literatures argue that diversified firms have innovation advantages as their operating units have access to an internal capital market. In contrast, the strategy and entrepreneurship literatures argue that managers of these firms suffer from “managerial myopia,” discouraging them from investing in projects with long-term, uncertain payoffs. We take a fresh look at the relationship between innovation and diversification using a comprehensive sample of diversified and nondiversified firms and a novel approach that teases out the mechanisms influencing the relationship between diversification and innovation. Consistent with conceptual and empirical work in strategy, we find a robust negative correlation between diversification and R&D intensity, suggesting that diversification reduces innovation by discouraging investment. However, our analysis suggests that internal capital market inefficiencies, rather than managerial myopia, is responsible for this observed negative relationship.