Efficiency in Pari-Mutuel Betting Markets across Wagering Pools in the Simulcast Era

Simulcast wagering, where bets from across the country are taken at tracks, off-track betting facilities, casinos, by phone or online and incorporated into the same mutuel pool, has contributed to a large increase in betting volume on American horse races since the mid-1990s. This article investigates betting-market efficiency in the simulcast era focusing on whether the interrelated betting markets comprised of win, place (finishing in the top two), and show (finishing in the top three) wagering are efficiently priced. We find that the increased accessibility and betting volume associated with simulcasting has reduced, but not eliminated, the inefficiencies seen in prior studies. Despite the inefficiencies in these markets, arbitrage is not profitable because market closing prices are unknown when bets are placed.     

United States concessions in the Kennedy Round and short-run labor adjustment costs

This paper reports on an econometric analysis of the exemptions awarded to United States industries from the across-the-board 50 percent tariff cut imposed in the Kennedy Round. It is shown that as much as 50 percent of the inter-industry variation in reductions in nominal tariff and non-tariff rates may be accounted for by variables that proxy labor adjustment costs. In particular, certain industrial characteristics are significantly related to the Kennedy Round reductions: declining industries, and industries with a high proportion of unskilled or old workers, are associated with low reductions.     

The liability to consumers of manufacturers of defective goods — An Australian perspective

There is an increasing tendency for consumers to regard the manufacturer as being primarily responsible for the safety and quality of consumer goods, even though in many if not most legal systems the common assumption by the consumer that the manufacturer rather than the retailer bears the primary liability for defective goods is not in fact correct. The legal position of the consumer in Australia under the general law of contract and tort is outlined as a background to the reforms made in 1978 by an important amendment to the Federal Trade Practices Act. A manufacturer (or importer) of consumer goods now is bound by statutory obligations, enforceable by the consumer, in respect of the quality of his goods. He is also bound by any express warranty given by him, and is liable where the goods require to be repaired or where replacement parts are required, but repair facilities or spare parts are not reasonably available. Except in the case of the obligations relating to the provision of spare parts and repair facilities, the manufacturer's statutory obligations cannot be excluded or limited. The Act also contains provisions limiting the time during which a consumer can commence an action against a manufacturer.Although the author considers that there are some defects in the legislation, he concludes that it represents a significant advance in the legal protection of the consumer's economic interests. There is a need for the expansion of existing mechanisms for the informal resolution of consumer claims, but the author also believes that the existence of the new legislative code setting out reasonably clearly defined rights will often in practice greatly strengthen the position of government agencies and others in attempting to negotiate a settlement on behalf of a consumer. Damages recoverable by a consumer from a manufacturer extend to consequential losses, including death or personal injury. As a result, a measure of strict liability for personal injury caused by defective products has been imposed on manufacturers. The legislation does not, however, offer a comprehensive regime of strict liability for personal injury and many anomalous situations will arise. The author considers that there is therefore a need in Australia for a review of the whole question of strict liability for personal injury caused by defective products, although even were this to occur there would still exist a strong need for a scheme such as that discussed in the article to govern the claim of a consumer for economic losses caused by the supply of defective or inferior products.

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Die Haftung des Warenherstellers bei Mängeln der Sache — eine australische Position zum Verbraucherschutz

Zusammenfassung Konsumenten gehen in immer stärkerem Maße davon aus, daß primär der Hersteller für die Güte und Sicherheit von Bedarfsgegenständen verantwortlich ist. Dem steht bislang die Rechtstradition der meisten Länder entgegen, wonach der Verkäufer und nicht der Hersteller primär für Fehler und Mängel verantwortlich ist.Der Aufsatz stellt die rechtliche Stellung des Konsumenten in Australien vor dem Hintergrund allgemeiner vertrags- und deliktsrechtlicher Regelungen dar. 1978 ist durch eine Novelle des Federal Trade Practices Act eine wichtige Reform eingeführt worden. Der Hersteller oder Importeur von Verbrauchsgütern (consumer goods) ist jetzt kraft Gesetzes, das vom Verbraucher im Klagewege durchgesetzt werden kann, einstandspflichtig für die Qualität seiner Waren. Er ist gleichermaßen unter einer Garantieerklärung haftbar. Er hat auch dafür einzustehen, daß Güter, die Wartung, Reparatur oder Ersatzteile benötigen, ordnungsgemäß und zu vernünftigen Bedingungen gewartet werden können. Die Pflichten des Herstellers können durch vertragliche Abrede nicht ausgeschlossen oder eingeschränkt werden, mit der Ausnahme der Wartungsverpflichtung. Die Novelle enthält schließlich Bestimmungen über Ausschluß- und Verjährungsfristen für die Ansprüche des Verbrauchers, wobei sie sich an den EG-Richtlinienentwurf zur Produkthaftung anlehnt.Auch wenn der Autor einige Vorschriften der Novelle kritisch würdigt, so geht er davon aus, daß sie einen wichtigen Fortschritt im rechtlichen Schutz der wirtschaftlichen Interessen des Verbrauchers darstellt. Daneben besteht weiterhin ein Bedarf zur Verbesserung der Rechtsdurchsetzung, aber die Existenz der Novelle und der dort enthaltenen klar definierten Pflichten des Herstellers erleichtert staatlichen Behörden und anderen den Schutz der Rechte des Konsumenten. Die vom Hersteller zu liquidierenden Schäden betreffen auch Folgeschäden einschließlich Tod und Personenschäden. Im Ergebnis haftet der Hersteller ohne Verschulden für Produktfehler. Allerdings ist die Gesetzeslage nicht vollständig befriedigend; es fehlt ein umfassendes System der Gefährdungshaftung für Produktfehler, etwa gegenüber Dritten, die das fehlerhafte Produkt lediglich benutzen, ohne es selbst gekauft zu haben. Nach Auffassung des Autors muß deshalb in Australien die Produkthaftung für Personenschäden neu überdacht werden. Daneben bleibt die — durch die Novelle befriedigte — Notwendigkeit, den Verbraucher gegenüber Vermögensschäden bei Lieferung eines mangelhaften Produktes dadurch zu schützen, daß man ihm einen Direktanspruch gegen den Hersteller zuerkennt.

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David Harland is Professor of Law, University of Sydney Law School, 173–175 Phillip Street, Sydney, N.S.W. 2000, Australia.     

Prospects for the international oil market

The OPEC price conference in Geneva on May 25–26, 1981 did not resolve the disagreement among OPEC member countries over official prices. As a result of this stalemate, Saudi Arabia with its intention to moderate prices will in the foreseeable future probably not be prepared to make substantial reductions in its high volume of production with which it puts pressure on prices. What short- and medium-term perspectives for the international oil market arise from this situation?     

AN ECONOMIC RESPONSE MODEL OF HERBICIDE APPLICATION FOR WEED CONTROL

A biologically realistic model of crop yield response to herbicide application is presented. It includes functions for weed mortality from herbicide application and yield loss due to surviving weeds. The optimal herbicide rate and two types of decision thresholds are derived theoretically and illustrated with empirical examples. Responses of the various decision criteria to changes in parameters are also examined theoretically and empirically. A multidimensional threshold for weeds based on weed density and weed-free yield is presented. The issue of farmers using other than officially recommended herbicide rates is discussed.