Collusion and combines in Canada, 1880–1890

ABSTRACT

It is a little-known fact that Canada adopted its own antitrust law one year before the landmark Sherman Antitrust Act of 1890. The Anti-Combines Act of 1889 (‘the Act’) was adopted after a decade in which ‘combines’ (the Canadian equivalent of ‘trusts’) had grown more numerous. From the combines’ numbers, Canadian historians, legal scholars, and economists have inferred that consumer welfare was hindered. However, price and output evidence has never been marshalled to provide even a first step towards assessing the veracity of this inference. This paper undertakes that task. I highlight the fact that the output from industries accused of collusion increased faster than national output in the decade before the passage of the Act and that their prices accordingly fell faster than the national price index. I argue that these findings militate for the position that the origins of Canada's Anti-Combines Act were partially rooted in rent-seeking processes similar to those that American scholars have found driving the Sherman Antitrust Act of 1890.     

Measuring efficiency in Australian Schools: A preliminary analysis

In this paper, we apply a public sector Data Envelopment Analysis model to estimate the efficiency of Australian primary and secondary schools. Standard microeconomic production theory showing the transformation of inputs into outputs is extended to allow nondiscretionary environmental variables characteristic of educational production. Failure to properly control for the socioeconomic environment leads to inappropriate comparisons and biased efficiency estimates. We employ a conditional estimator that does not allow a school with a better environment to serve as a benchmark for a school with a worse environment. The results suggest that Australian schools are moderately inefficient and that efficiency increases for the quintile of schools with the most favorable environment. Further, efficiency gains are realized with increasing enrollment.     

Employee perceptions of market orientation in the banking industry: A case from a developing country

The importance of this study stems from the desire to measure the market orientation of banks in a developing country such as Ghana, where the concept of market orientation is still a new practice. Specifically, the study was meant to investigate employee perceptions of market orientation and how they differ in relation to employment status within a bank in a developing country. A slightly modified questionnaire based on Kohli, Jaworski and Kumar's market orientation scale (MARKOR) was used. The outcome of the study reveals that the MARKOR scale provides a good measure of market orientation in the Ghanaian banking environment. Although the general perception of market orientation is somewhat moderate, the findings further reveal that the management of the bank has a higher perception of market orientation than employees. Some recommendations have been provided for Ghanaian banks and their counterparts in other developing countries on the need for them to be market oriented.     

What explains the lagged-investment effect?

The best predictor of current investment at the firm level is lagged investment. This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment costs proposed by Christiano et al. (2005) predicts the presence of a lagged-investment effect and that a generalized version of their model is consistent with the behavior of firm-level data from Compustat.     

Financing agricultural R&D in rich countries: what's happening and why

Governments everywhere are trimming their support for agricultural R&D, giving greater scrutiny to the support that they do provide, and reforming the public agencies that fund, oversee, and carry out the research. This represents a break from previous patterns, which had consisted of expansion in the public funds for agricultural R&D. Private-sector spending on agricultural research has slowed along with the growth of public spending in recent years, but the balance continues to shift towards the private sector. This article presents a quantitative review of these funding trends and the considerable institutional changes that have accompanied them. We discuss new data for 22 OECD countries, providing institutional details for five of these countries, and conclude with an assessment of policy developments.     

Why Beautify the Plaza? Reproducing Community in Decentralized Neoliberal Peru

Peruvian development and government analysts criticize communities for irrationally using local development funds deriving from recently instituted political decentralization to beautify their villages rather than to improve infrastructural services, education and health, or to alleviate poverty. This paper challenges this critique by explaining why such cosmetic improvements are of interest to rural people. Using a case study of the peasant community of Allpachico, I argue that these projects encourage the return of pensioners and visits from migrants. Residents and migrants are mutually dependent as a result of livelihood strategies based on agriculture and the foreign‐controlled resource extraction sector over the past 80 years. The relative position of these two groups in the social reproduction of the vernacular community has changed with the Peruvian political economy. Currently, in the neoliberal resource extraction economy, residents pragmatically opt to maintain relations with those who have stable wage or pension incomes.     

Chefs’ perceptions of using convenience food products versus scratch cooking

The decision regarding when and to what extent to use convenience food products is a perennial issue in the hospitality industry. To explore this issue, a paper and pencil survey was administered to culinary managers in a large university dining setting. Respondents included 132 chefs representing 10 dining facilities/concepts. The results indicate that even though the time and labor cost savings brought about by the use of convenience food products are perceived as advantageous, the implied consistency of the final product and superior portion control are not as important. Furthermore, customer relationships, catering to special groups, and final products’ eye appeal appear to be better facilitated by nonconvenience foods. Even though it is easier to train culinary staff to use convenience food products rather than nonconvenience ones and these employees appear to be under less psychological pressure in their jobs, they will conversely be less motivated and worse paid.     

Advertising spending patterns and competitor impact

In most industries, brand managers do not advertise continuously. Instead, advertising is switched on and off systematically, a phenomenon often referred to as pulsing. Moreover, spending levels vary considerably across periods when brands do advertise. Surprisingly, this variety in advertising spending patterns as observed in practice, as well as competitor impact on these patterns and their sales outcomes, have received relatively little empirical attention. In this paper we focus on two core aspects of observed advertising patterns: incidence and magnitude. Insights are based on the analysis of advertising spending for 370 CPG brands in 71 product categories over a four-year period. We also collected feedback from practitioners dealing with advertising across a wide range of firms. We first empirically establish that pulsing is the dominant form of advertising scheduling. Observed patterns, in turn, are largely driven by television and print advertising. Next, we show that, after accounting for a wide range of other possible drivers, advertising in-sync with competitors is more common than out-of-sync. However, the results suggest that competitive reasoning plays only a relatively minor role in advertising decisions. Finally, we show that, across a wide range of real-world scenarios, investing in top-of-mind awareness through maintenance advertising insulates brands from competitors' actions and boosts sales.     

Some Dissatisfaction with Satisfaction: Universities, Values, and Quality

This article moves beyond the narrow discussion of the applicability of Total Quality Management to the university which has amounted to a debate over whether business has something to teach the university about customers and satisfaction. The article goes at the matter from a different direction as it investigates what business can learn from the university about quality.