Joint Private Safety Standards and Vertical Relationships in Food Retailing

In recent years, it has become common for downstream firms to impose Joint Private Standards (JPSs) on upstream producers. In this paper, we present an original model of a vertical relationship, explaining the incentives for and the effects of such JPSs with an example concerning food safety. The risk of a food crisis is endogenously determined. Using the concept of cartel stability ( d’Aspremont et al., 1983 ), it is shown that liability rules are crucial for JPSs to emerge, that a JPS can become a minimum quality standard, and that a more stringent JPS does not necessarily reduce the market risk.     

Transideological collaboration and East-West- South economic relations

The increasing participation of the CMEA countries of Eastern Europe in the international division of labor extends beyond simple trade relations to include a complex web of production arrangements, including tripartite industrial cooperation. The East is now treating its economic relations with the South in less ideological and political terms, and therefore has engaged in more pragmatic and profitable ventures. Socialist state enterprises have become more integrated into the world market as buyers, sellers and producers, and as such have begun to display characteristics that resemble those of Western firms.     

The monopoly v competition debate

Arguments for and against monopoly and competition in the provision of telecommunication services are considered from the perspective of a dominant telecommunications operator in a small European country, Sweden. The importance of provision of public services is stressed as well as the need for efficient international standardization. Finally, it is argued that there is a parallel between the position of dominant telecommunication operators in small and medium-sized countries and the INTELSAT system.     

Setting technical standards for improved communication flows

This article deals with telecommunications standardization in relation to world trade, needs of developing countries, and facilitating user access to worldwide communication. The author comments on the responsibility of ITU members to support standardization activities carried out in ITU forums.     

Cost-utility of albiglutide versus insulin lispro,insulin glargine,and sitagliptin for the treatment of type 2 diabetes in the US

Objective To compare the cost-utility of the glucagon-like peptide-1 receptor agonist albiglutide with those of insulin lispro (both in combination with insulin glargine), insulin glargine, and the dipeptidyl peptidase-4 inhibitor sitagliptin, representing treatments along the type 2 diabetes treatment continuum.

Methods The Centre for Outcomes Research and Effectiveness (CORE) Diabetes Model was used for the cost-utility analysis. Data from three Phase 3 clinical trials (HARMONY 6, HARMONY 4, and HARMONY 3) evaluating albiglutide for the treatment of patients with type 2 diabetes were used for the baseline characteristics and treatment effects. Utilities and costs were derived from published sources.

Results Albiglutide treatment was associated with an improvement in mean quality-adjusted life expectancy of 0.099, 0.033, and 0.101 years when compared with insulin lispro, insulin glargine, and sitagliptin, respectively. Over the 50-year time horizon, mean total costs in the albiglutide arm were $4332, $2597, and $2223 more than in the other respective treatments. These costs resulted in an incremental cost-utility ratio of $43,541, $79,166, and $22,094 per quality-adjusted life-year (QALY) gained for albiglutide vs insulin lispro, insulin glargine, and sitagliptin, respectively. At a willingness-to-pay threshold of $50,000 per QALY gained, there was a 53.0%, 41.5%, and 67.5% probability of albiglutide being cost-effective compared with the other respective treatments.

Limitations This analysis was an extrapolation over a 50-year time horizon based on relatively short-term data obtained during clinical trials. It does not take into account potential differences between the respective treatments in adherence and persistence that can influence both effects and costs.

Conclusions Albiglutide represents a reasonable treatment option for patients with type 2 diabetes based on its cost-utility, relative to insulin lispro, insulin glargine, and sitagliptin.     

Model stability and forecast performance of Beta-t-EGARCH

We show that the model stability of the recent QAR(1) plus Beta-t-EGARCH(1,1) is superior to that of the well-known ARMA(1,1) plus t-GARCH(1,1) because QAR plus Beta-t-EGARCH discounts extreme observations, while ARMA plus t-GARCH accentuates them. Model stability of QAR plus Beta-t-EGARCH is an elegant property; however, we show that the out-of-sample density forecast performance of ARMA plus t-GARCH is superior to that of QAR plus Beta-t-EGARCH. We study model stability and density forecast performance for a set of rolling data windows. We use data on the S&P 500 index for the period 1990–2015. For robustness analysis, we also study Monte Carlo simulations of asset returns for the stochastic volatility model.     

Quality upgrading in Ethiopian dairy value chains: dovetailing upstream and downstream perspectives

Abstract

In this article, we analyze opportunities and constraints for upgrading product quality in the dairy value chain in Ethiopia. Our analysis is based on an integrated understanding of supply chain performance both from producer and from consumer perspectives. We outline as main drivers for quality upgrading: (a) factors that influence producers’ willingness to invest toward intensification by smallholder dairy farmers and cooperatives and (b) factors that induce consumer’s willingness to pay for healthy and nutritious dairy products delivered at specific retail outlets. Since there are large gaps between upstream producers incentives and downstream consumers motives, possibilities for dairy quality upgrading remain fairly limited. Given this market structure, decisive policy support is required for better tailoring producer’s investments with consumer preferences.     

Food choices in Ethiopia: does nutritional information matter?

This article reports results from a framed market experiment conducted to examine whether milk choices are responsive to changes in the nutritional characteristics of milk products. Using a random‐effect Tobit model, we analyzed experimental data collected from 160 participants in urban Ethiopia. It shows that sensory properties play a key role in the acceptance of reduced‐fat milk while the provision of nutrition information has a mixed effect on a price premium. Further, a substantial percentage of participants were found to have a strong preference for whole milk while only 19% of them prefer reduced‐fat milk with 2.8% price premium. The study unveils a heterogeneous preference for the nutritional quality of milk products. Consumers’ health problems and socio‐demographic characteristics influence their preference for the nutritional quality of milk products. The result also shows a nutrition‐taste tradeoff, yet consumers place more value on sensory experience. Contrary to earlier studies, we found that prior belief about milk quality influences how consumers value sensory experience and nutrition information.     

Demand for environmentally friendly vehicles: A review and new evidence

Although the need for more environmentally friendly vehicles was recognized some decades ago, this new market has not yet established itself. Consumer behavior needs to be studied to ascertain when people will decide to purchase hybrid or electric vehicles rather than conventional ones. An in-depth review of the state-of-the-art has identified existing deficiencies and these are addressed in this paper, proposing a new approach that is applied to the case of Santander in Spain. Emphasis is placed on the role of citizens in researching the local market and their requirements with respect to such vehicles; our model assumes variability in user preferences, an utmost requirement as concluded from the literature review. Results suggest that the highest demand for cleaner vehicles would be achieved in two ways: firstly, by penalizing conventional vehicles in terms of costs/km; secondly, by providing incentives directed at lowering the purchasing price of hybrid and electric vehicles. Finally, as demand becomes more elastic, the preferred strategy should initially focus on hybrid vehicles.