Comparing spatial concentration and assessing relative market structure in air traffic

Traffic distributions of air traffic and their concentration have been measured through Gini, an index that contrasts in many ways with other more established ones, such as Herfindahl's. This research is extended in the sense that it perceives spatial concentration in air transport as an aggregate of complex networks that are subject to multiple constraints, such as geopolitics or technology. We propose a multi-layered analytic approach where network operators are economic agents that behave in strategic ways. It allows for comparing air traffic between airports in Europe with that of the US and, in particular, introduces a normative component by isolating patterns in airlines' strategies that coincide with more or less welfare-oriented degrees of spatial concentration in light of the above constraints.     

Contradictions of interactive data analysis

Up to now, interactive statistics seems to have bloomed on a creative mess of contradictions and conflicts. But I believe that if we want to advance beyond the present stage, we must try to overcome those. I shall attempt to identify a few of the more crucial ones, ranging from the basics of interactivity and data graphics to issues of large data and data base management, and to distill specific challenges from them.     

Estimating temporal trends in preferences measured by graded paired comparisons

A sizable marketing research literature on preference measurement, prediction, and explanation has thus far been more concerned with point estimates of preference than with consistent changes over time. Such temporal trends can be estimated using data collected from graded paired comparisons. An appropriate technique for deriving individual and group trend parameters is first described and then illustrated using data from an experiment dealing with aesthetic preferences. Suggestions are offered concerning its advantages and limitations for applications in marketing.     

Second-Best Pollution Taxes: an Analytical Framework and Some New Results

This paper compares the second-best optimal tax on polluting consumption goods with the Pigovian tax, which would internalize marginal environmental damage at a second-best optimum. It is shown that the relationship between the optimal tax on polluting consumption and the Pigovian tax is determined by the substitutability between labour and polluting consumption or clean and polluting consumption, depending on whether a wage tax system or a commodity tax system is being considered. The key factor determining the relationship between the two taxes is gross substitutability between the two taxed goods. As long as there is gross substitutability, the optimal dirt tax exceeds the Pigovian tax. The opposite can occur if and only if the two goods are gross complements.     

A Middle Class Image of Society

We studied undercoverage and nonresponse in a telephone survey among the population of the City ofGroningen, the Netherlands. The original sample, drawn from the municipal population register,contained 7000 individuals. For 37 percent of them, the telephone company was unable to produce a validtelephone number. Of those with a known telephone number, 49 percent did not answer the telephone orrefused to cooperate. As a result, the final respondents comprised merely 32 percent of the originalsample. To study distributional bias, we used individual-level data compiled from municipal records asour benchmark. Bivariate as well as multivariate analyses showed the undercoverage to be stronglyrelated to all sociodemographic variables studied, except gender. Nonresponse was related to age, countryof origin, marital status, and household size and composition, but not to gender, unemployment, socialassistance benefit, and education. Both undercoverage and nonresponse contributed to a strong middleclass bias in the final data set: middle-aged and older, economically secure people, of Dutch origin andliving with others in a household are overrepresented, while persons in disadvantaged and marginalpositions, such as the young, people of foreign stock, the unemployed, persons depending on publicincome support and singles are underrepresented.     

Value Creation in the Insurance Industry

Using the insights of current research in corporate finance and financial institutions, the authors briefly present a consistent economic framework for looking at insurance. Shareholders of insurance companies provide risk capital that is invested in financial assets and therefore earns the market return of the assets it is invested in. However, due to the legal and fiscal environment insurance companies are in, they have a competitive disadvantage at investing, and this gives rise to frictional capital costs. The core competence of insurers is in managing the size of these frictional capital costs. Insurers must ensure that they can sell insurance for a price in excess of what they need to produce the cover they sell and compensate the incurred frictional costs on risk capital. It is through the ability to do so that insurers create shareholder value.     

Reinforcement versus balance response in sequential choice

Psychologists often explore the impact of one act on a subsequent related act. With an eye to the marketing literature, this paper explores two properties of sequential choices that involve the resolution of competing goals. Reinforcement occurs when the goals driving the first choice are made stronger by that choice and result in a congruent subsequent choice. Balance occurs when the first choice satisfies or extinguishes the goals that led to the original decision, producing an incongruent subsequent choice. This review examines a number of psychological frameworks that account for reinforcement or balance responses in sequential choice and identifies theoretically relevant moderating variables that lead to either response.