Wettbewerbspolitik in der digitalen Wirtschaft

Digital content and services providers like Alphabet (formerly Google) or Facebook have become an indispensable part of our everyday lives and are among the highest valued firms in the economy as a whole. Most digital markets are characterized by direct and indirect network effects and therefore also by so-called two-sided platforms. To date it is not clear to how much market power these firms actually possess, which is a prerequisite for a possible policy intervention. The authors discuss measuring market power within the existing European legal framework and propose new legal rules in the field of digital markets. As the limitations of current instruments such as the SSNIP test point out, new approaches for the analysis of markets in the context of Internet-based platforms are necessary. The authors prefer modifying competition law to sector-specific regulations of internet-based businesses. They also discuss the implications that the use of big data has on competition policy. The author Günter Knieps focusses on the network evolution of the future all-IP Internet, which should neither be disturbed by regulatory technology policy nor by network neutrality regulation.     

Knowledge translation and exchange in the Canadian microbial food safety system: A quantitative assessment of researcher awareness,attitude, and activities with government policymakers

Knowledge translation and exchange (KTE) is a process through which research evidence can more effectively inform decision making in policy and practice environments. A telephone survey of Canadian microbial food safety researchers was conducted in 2009 to examine aspects of researcher KTE activities with government policymakers. Overall, researcher awareness of and engagement in KTE activities was high, although engagement was mainly through end-of-research dissemination activities rather than throughout the research process (integrated knowledge translation) and engagement in some high-quality KTE activities was low. Government researchers were significantly more likely to engage in KTE activities with federal policymakers and did so with greater frequency than non-government researchers.     

The role of operational flexibility in the expansion of international production networks

Volatile factor cost developments urge manufacturing firms to increase production efficiency by building up facilities in multiple countries. Differing from previous work that examines the quality of individual locations for investment, the study evaluates the net present value, the growth option value, and the operational flexibility value of the existing production network to predict the establishment of a new site. The results on a sample of 352 German manufacturing firms suggest that the direction, uncertainty, and diversity of labor cost movements in the extant locations influence the propensity to set up a new production subsidiary. Analyzing the international production network after the expansion shows that the new location increases the value of the network regarding these dimensions. Copyright © 2012 John Wiley & Sons, Ltd.     

Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration

Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration.     

Bringing science to the art of strategy

Many managers feel doomed to trade off the futile rigor of ordinary strategic planning for the hit-or-miss creativity of the alternatives. In fact, the two can be reconciled to produce novel but realistic strategies. The key is to recognize that conventional strategic planning, for all its analysis, is not actually scientific-it lacks the careful generation and testing of hypotheses that are at the heart of the scientific method. The authors outline a strategy-making process that combines rigor and creativity. A team begins by formulating options, or possibilities, and asks what must be true for each to succeed. Once it has listed all the conditions, it assesses their likelihood and thereby identifies the barriers to each choice. The team then tests the key barrier conditions to see which hold true. From here, choosing a strategy is simple: The group need only review the test results and choose the possibility with the fewest serious barriers. This is the path P&G took in the late 1990s, when it was looking to become a major global player in skin care. After testing the barrier conditions for several possibilities, it opted for a bold strategy that might never have surfaced in the traditional process: reinventing Olay as a prestigelike product also sold to mass consumers. The new Olay succeeded beyond expectations-showing what can happen when teams shift from asking "What is the right answer" and focus instead on figuring out "What are the right questions?".     

Optimal Capital Allocation Principles

This article develops a unifying framework for allocating the aggregate capital of a financial firm to its business units. The approach relies on an optimization argument, requiring that the weighted sum of measures for the deviations of the business unit's losses from their respective allocated capitals be minimized. The approach is fair insofar as it requires capital to be close to the risk that necessitates holding it. The approach is additionally very flexible in the sense that different forms of the objective function can reflect alternative definitions of corporate risk tolerance. Owing to this flexibility, the general framework reproduces several capital allocation methods that appear in the literature and allows for alternative interpretations and possible extensions.     

Why newly listed firms become acquisition targets

We study the operating, financial, and ownership structure characteristics of newly listed firms which become acquisition targets shortly after their initial public offerings. We examine whether such firms get acquired because of their successful performance or as an alternative to delisting. We find that firms, which do relatively well in terms of operating as well as stock performance and attract institutional investor interest, draw the attention of acquirers. Furthermore, we observe that investments made by newly listed target firms do not destroy shareholder value and have comparable profitability to investments made by newly listed firms which grow by acquisitions. Overall, firms acquired shortly after listing are on a growth trajectory similar to that of surviving firms.     

The applicability of the Tampa Scale of Kinesiophobia for patients with sub-acute neck pain: a qualitative study

The purpose of this study was to qualitatively evaluate patients understanding and interpretation of the wording used in test items of the Tampa Scale of Kinesiophobia (TSK). The TSK was developed to measure fear of movement in patients suffering from low back pain. The TSK is being increasingly used for other pain conditions. Patients with sub-acute neck pain experience problems while completing this questionnaire. The aim of this study was to elicit these problems. The study was conducted within the framework of a randomised controlled trial. The Three-Step Test Interview (TSTI) was used to collect data on the thoughts or considerations of respondents while completing the TSK. In the analysis, each transcribed interview was divided into three segments. The thoughts and considerations were then analysed and categorised per item. During the TSTI two problems were identified. One concerned the meaning of specific words used, like “dangerous” and “injury”. The other problem was that several implicit assumptions within some items make it difficult for respondents to answer these items. It was concluded that in the development and validation of questionnaires like the TSK, not only quantitative psychometric properties are important, but also qualitative research has an important contribution to enhance applicability.     

Edgeworth expansions and normalizing transforms for inequality measures

Finite sample distributions of studentized inequality measures differ substantially from their asymptotic normal distribution in terms of location and skewness. We study these aspects formally by deriving the second-order expansion of the first and third cumulant of the studentized inequality measure. We state distribution-free expressions for the bias and skewness coefficients. In the second part we improve over first-order theory by deriving Edgeworth expansions and normalizing transforms. These normalizing transforms are designed to eliminate the second-order term in the distributional expansion of the studentized transform and converge to the Gaussian limit at rate O(n⁻¹)$O\left(n^{-1}\right)$. This leads to improved confidence intervals and applying a subsequent bootstrap leads to a further improvement to order O(n^−3/2)$O\left(n^{-3/2}\right)$. We illustrate our procedure with an application to regional inequality measurement in Côte d’Ivoire.     

Marx,Finance and Political Economy

ABSTRACT

Shortly after the publication of Volume I of Capital, the financial requirements of capitalist enterprise forced the financial innovation of bond and stock finance for joint stock companies. Marx intended to re-write Capital in order to incorporate this change. He did not achieve this. The economic analysis of capitalism with long-term finance was undertaken by Hilferding in his Finance Capital. Thereafter, a strand of economic analysis of production and distribution emerged in the work of the Austro-Marxists, Veblen, Keynes, Kalecki, Steindl and Sweezy, and the Italian Kaleckians, Joseph Halevi and Riccardo Bellofiore, which incorporated the change made to the structure and dynamics of capitalism by long-term finance. However, this shift in capitalist financing has largely been ignored in economic theory, while much of the heterodox analysis that seeks to challenge the role of finance in contemporary capitalism has not integrated finance consistently. The change from the classic capitalism to finance capital raises important questions about the meaning and relevance of Marx’s work today.