Symbiotic production: The case of telecommunication pricing

In this paper we analyze a generalization of vertical monopolies in which monopoly suppliers trade essential inputs with one another. The most obvious applications of the model, which we call symbiotic production, are to postal and telecommunications services. We show how producers can use per-unit tariffs to achieve cooperative outcomes without colluding directly over consumer prices. We then show the firms have an incentive to collude in the setting of tariffs but that suchcollusion will lower consumer prices. This assumes that the suppliers are otherwise unfettered. In contrast, if the constituent monopolies are regulated, we show that collusion enables the firms to completely undo the restraints of regulation. The model has important policy implications for the international telecommunications market.     

A psychometric analysis of residential location

Traditional housing needs studies focus on the trade-off between location and housing amenities. In most models, mode choice is viewed as conditional behavior in a given setting. New movers, however, select a new environment which includes a house, neighbourhood and transportation system. By using psychometric techniques, the attitudes and preferences of new movers to the suburbs of a large northeast city were analyzed to determine the relative importance in their selection process of the transportation characteristics of the new location. It was found that local and regional transportation and public transit played little role in selecting an apartment. There was no evidence of tradeoffs between travel time and living space postulated by urban economics. Most important to the choice process of these residents were internal characteristics of the apartment and pricing issues. This supports the idea that suburbanites chose to be captive auto users even when equivalent housing opportunities with transport alternatives are available. Implications for public transit and land use planning alternatives for the suburbs are discussed.     

Two-sided Markets,Competitive Bottlenecks and Exclusive Contracts

We provide a framework for analyzing two-sided markets that allows for different degrees of product differentiation on each side of the market. When platforms are viewed as homogenous by sellers but heterogeneous by buyers, we show that “competitive bottlenecks” arise endogenously. In equilibrium, platforms do not compete directly for sellers, instead choosing to compete indirectly by subsidizing buyers to join. Sellers are left with none of the gains from trade. Despite this, it is sellers who choose to purchase from multiple platforms (multihome). Finally, the role of exclusive contracts to prevent multihoming is explored. We are very grateful to Jose Miguel Abito for research assistance, and to the editor and a referee for helpful comments.     

A Stage Model of International Brand Development: The perspectives of manufacturers from two newly industrialized economies—South Korea and Taiwan

A review of the literature has revealed that insufficient attention has been paid to the international branding process. Following in-depth interviews with eight manufacturers from South Korea and Taiwan, a stage model of international brand development is therefore proposed. This model is a composite of three extant literatures, i.e., international branding, the Small Business Growth Stage Model, and the Internationalization Process model. The model highlights four successive and progressive stages underpinning international brand development: Pre-international, Lead Market Carrying Capacity, International Branding and Market Succession, and Local Climax. According to the proposed model, firms begin with the development of a strong brand in home markets, then, utilize OEM brands to expand and become familiar with international markets. A gradual decrease in OEM contracts and more concentration on international branding in the three global lead markets (i.e., the USA, Japan, and the EU) follow. The stage model ends with brand development deploying localization in the Third World countries. The article concludes by providing research implications as well as future research directions.     

Access Pricing under Competition: An Application to Cellular Networks

A new class of access pricing problems is analyzed in which upstream firms compete for customers and access to these customers is required by downstream markets. Using fixed–to–cellular calls as an example, a model is presented which shows that the determination of cellular termination charges is quite different to standard access pricing problems. Competition between cellular firms leads to access prices being set either at, or above, the monopoly level. Applications are given for other market settings, including the termination of long–distance calls on competing local exchange networks and the setting of interchange fees in payment systems.     

Innovation in multinational corporations: control and communication patterns in international R&D operations

This paper addresses issues of global innovation in multinational corporations by examining the patterns of communication and control in international R&D operations. Using a sample of 110 international R&D units from 15 multinational corporations, we identify three types of R&D unit role (local adaptor, international adaptor, international creator). We show that: (1) each type of R&D unit is managed primarily through a different mode of control; (2) local and international adaptors both focus their communication on their internal corporate network; and (3) international creators have strong internally and externally oriented networks of relationships. The implications for the management of global innovation are discussed. © 1998 John Wiley & Sons, Ltd.     

Social and Political Risks: Factors Affecting FDI in China's Mining Sector

Political risk can be defined as the potential for uncertainty and harm to business/economic operations that arise from political (governmental and other) behavior and events. These risks typically stem from factors such as economic structures, government institutions, policies, and societal characteristics, and are becoming more of a concern to prospective investors in a changing global political economy. This article seeks to expand upon the framework of political risk analysis by looking at “softer,” nonquantifiable risk factors. Through the analysis of foreign business experiences in China, we aim to demonstrate, via a qualitative case study of foreign direct investment (FDI) in the Chinese mining sector, that in addition to typical financial, operational, and geological factors, firms should be better aware of the particular sociopolitical and cultural risks that can harm their investments in a given industry. This study draws on primary fieldwork, focuses on micropolitical risks to the industry, and stresses that multinational corporations (MNCs) could be more cognizant of the many societal factors that can influence an investment success. © 2016 Wiley Periodicals, Inc.     

British Managers' Attitudes and Behaviour in Industrial Relations: A Twenty-Year Study

A unique longitudinal study of Britain's managers conducted in 1980, 1990 and 2000 permits comparisons of managerial attitudes and behaviour in industrial relations over twenty years. We find clear evidence of the relationship between macro‐level political and economic movements of the period from 1980 up until the late 1990s on managerial attitudes, the impact of changes in power relations and the ‘lag effect’ of institutions. The most unexpected findings are the modest rise of managerial unionism in the 1990s and the limited evidence of the replacement of collective bargaining by either individual or group involvement or by employee financial participation.