A transaction cost explanation of vertical control in international markets

The author applies a model based on transaction cost analysis to explain the vertical control selections made by a sample of exporters. The model, which obtains significant support, suggests that an important contingency when deciding on the desired level of vertical control in a particular instance, is the ability of the market to limit the opportunistic tendencies of outside intermediaries. In effect, the market’s ability to enforce contractual arrangements is often limited. When such enforcement cannot be relied upon, greater control represents a necessary alternative.     

No arbitrage and closure results for trading cones with transaction costs

In this paper, we consider trading with proportional transaction costs as in Schachermayer’s paper (Schachermayer in Math. Finance 14:19–48, 2004). We give a necessary and sufficient condition for , the cone of claims attainable from zero endowment, to be closed. Then we show how to define a revised set of trading prices in such a way that, firstly, the corresponding cone of claims attainable for zero endowment, , does obey the fundamental theorem of asset pricing and, secondly, if is arbitrage-free then it is the closure of . We then conclude by showing how to represent claims.      

Peter Drucker and the Denial of Business Ethics

This paper speculates upon the reasons for Peter Drucker's ongoing and vigorous denial of the relevance of business ethics. It contemplates whether Drucker consciously, or even perhaps subconsciously, associates the aims of business ethics with the aims of those associated with the Arbeitsfreude movement in Germany prior to the outbreak of the second world war. If this is the case the paper questions whether Drucker's distaste for some of the more notorious outcomes of that movement in Germany are reflected in his hostility to business ethics. Drucker's reflections regarding the social responsibilities of business are discussed, as are the limitations which he imposes upon such corporate social responsibility. Drucker's distinction between societal ethics and individual ethics are also discussed.     

Visitation at capacity-constrained tourism destinations: Exploring revenue management at a national park

This study explores issues related to the introduction of revenue management principles in the mechanism of allocating permits to visitors. Specifically, the study looks at ways in which backcountry hikers in Grand Canyon National Park, a World Heritage Site listed among America’s most visited tourism attractions, value a particular allocation mechanism for a permit application. From a stratified random sampling scheme with a 76% response rate, over 1400 overnight backcountry hikers reported the potential for considerable increased revenues. At the same time the findings indicate that certain demographics and user groups will not participate in the modifications, and thus, may be less likely to get a permit when they apply for one. Any policy implementation from such an analysis needs to consider the implications of privileging those who are both willing and able to pay more for access, and effectively excluding others from the same opportunity.     

Economics at the FCC, 2011–2012: Spectrum Incentive Auctions, Universal Service and Intercarrier Compensation Reform, and Mergers

The past year in economics at the Federal Communications Commission covered a broad range of topics in telecommunications policy. This paper highlights the economic issues that are addressed in the following key areas: spectrum management, universal service and intercarrier compensation reform, and merger review. In spectrum management, the FCC received congressional authority to implement an ??incentive auction?? to repurpose television broadcasting spectrum into flexible-use licenses that will be suitable for mobile wireless service providers. We discuss some important issues in designing the auction. We next address some aspects of the FCC??s comprehensive reforms of intercarrier compensation, which mainly involves call termination rates, and of universal service. Finally, we discuss the economic analysis of two major mergers: AT&T-T-Mobile, which the FCC staff recommended should be referred to an administrative hearing, and Level 3/Global Crossing, which was cleared with no conditions.     

Cooperation patterns of incubator firms and the impact of incubator specialization: Empirical evidence from Germany

The article examines cooperation patterns of 150 firms located in German business incubators (BIs). More specifically, this study distinguishes between networking within the tenant portfolio and the academic–industry linkages of the tenant firms. We further contribute to the relevant literature by explicitly considering differences in cooperation patterns between firms located on diversified and specialized incubator facilities. Empirical results do not support the common assumption that specialized incubation strategies increase the effectiveness of incubator-internal networking compared to diversified BIs. Also, incubator specialization is not superior to diversified incubators with respect to the promotion of linkages of their tenants with academic institutions. For academic linkages, industry effects matter more than incubator characteristics.