Free Riding in Noncooperative Entry Deterrence with Differentiated Products

We examine free riding and underinvestment in noncooperative entry deterrence in the Gilbert and Vives (1986) model with differentiated products. Our analysis proves that for products that are differentiated enough, when both entry allowing and entry deterring equilibria coexist, the symmetric entry deterring equilibrium may Pareto dominate the entry equilibrium. Hence, “coordination failure” underinvestment in entry prevention can occur. However, as claimed, the overinvestment result of Gilbert and Vives remains robust to moderate amounts of product differentiation. We also show that coordination failure underinvestment arises in a wide variety of entry deterrence models and does not rely on assumptions regarding strategic substitutability or complementarity of precommitments.     

Implementing a corporate environmental strategy: establishing coordination and control within multinational companies

This article presents the results of an empirical study that investigated coordination and control within multinational companies over six key aspects of their environmental strategy. Specifically, it first examines the level of centralization of these key issues. Second, it investigates whether there is a positive relation between three variables associated with organizational complexity and the level of centralization of the environmental issues. Statistical analyses of the data obtained from a sample of 98 North American multinationals were conducted. The study's results revealed that most companies have adopted a global environmental standard to govern their worldwide business activities that is supported by strong central controls over both environmental performance evaluation of facilities and decisions regarding the development of environmental programs. Results also revealed that there are limited links between organizational complexity and most aspects of the environmental strategy. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

THE INCOME AND CONSUMPTION EXPERIENCES OF A SAMPLE OF FARM FAMILIES*

The way in which the consumption of farm families is adjusted to fluctuations in income has important implications at the national, regional and farm levels. In this paper, hypotheses about the consumption of farm families are examined using data from 16 families in a wheat-sheep region of New South Wales for the eight-year period 1968/69 to 1975/76. The results of the study indicate that lagged effects are important in explaining consumption by farm households. It was not possible to partition these lag effects between partial adjustment and normal income influences. Estimates of the short-run (one-year) marginal propensity to consume (mpc) were quite low, ranging from 0.13 to 0.16. The best estimates of the long-run mpc ranged from 0.19 to 0.25.     

Analyse de la libéralisation des échanges de quotas entre le Québec et l'Ontario dans le secteur laitier

L'objectif de cette étude est d'estimer les fonctions d'offre et de demande & quota de lait & transformation au Québec et en Ontario et d'évaluer les impacts potentiels d'un marché des quotas entre ces deux provinces. Les fonctions d'offre et de demande sont estimées par la méthode des moindres carrés à deux étapes et ce, pour quatre marchés, soit les marches des quotas produits et non produits dans chaque province.
Les résultats montrent que la flexibilityé de la demande est en général plus élévie en valeur absolue que celle de l'offre. Les résultats indiquent de plus que l'offre de quotas est élastique par rapport aux prix. Le modèle est utilisé pour simuler l'ouverture des marchés entre le Québec et l'Ontario. Les résultats indiquent que si un marché des quotas avait existé en 1992, le Québec aurait vu son quota de mise en marché augmenter de 3,4 % durant l'année, au détriment de l'Ontario qui aurait vu le sien diminuer d'environ 5,1%.     

Testing for rational bubbles in the presence of structural breaks: Evidence from nonstationary panels

This paper presents new results on the rational bubbles hypothesis for a panel of 18 OECD countries using the model developed by Campbell (2000). We provide an analysis of international data that exploits increased power deriving from the panel unit root and cointegration methodology, together with the flexibility of allowing explicitly for multiple endogenous structural breaks in the individual series. Differently from the time series methodology, the panel data approach allows for a global analysis of the financial crashes that are related to rational bubbles. We find strong evidence in favor of bubbles phenomena.     

Detailed cost estimating in the automotive industry: Data and information requirements

The automotive industry operates in a very competitive market which requires controlling product costs, improving the product quality and shortening the development lead time. Cost estimation requires quality data and information, therefore this research project identified several issues that hinder this activity, namely a lack of resources and information acquiring and validation difficulties. This research paper presents the various data and information requirements for detailed cost estimating in automotive industry. The research project has identified the common cost estimation process model within the identified industry sector. The study identified the types of data and information requirements for cost estimating. It has also constructed the relevant data infrastructure as the basis for a Web Portal, which is the physical presentation of the information infrastructure. Multiple sources of data collection techniques were employed to identify the types of data needed for detailed cost estimates within a manufacturing company. These techniques include participant observation, semi-structured interviews, process models and document analysis of six different UK based automotive companies. Methods of process modelling like IDEF3 and knowledge capture technique known as X-Pat (eXpert Process Knowledge Analysis Tool) were employed in this study.This study makes several contributions concerning both conceptual and practicable information issues that have long vexed detailed cost estimating practices in the automotive industry. The study conceptually defines the detailed bottom-up information (i.e., individual cost elements and the links between them) needed for an accurate estimate of cost, and shows why each element of information is needed and where it fits into the cost model. To respond to the practicable information vexations, the study shows where to find the necessary cost information and proposes a validation method. The research creates useful knowledge in the form of an improved understanding of information requirements for cost estimates. The benefits to the industry of better cost estimates based on this research at the conceptual design stage include improved cost control and enhanced ability to adjust to anticipated market trends.     

Normative Violence in Domestic Service: A Study of Exploitation,Status, and Grievability

Journal of Business Ethics - This paper contributes to business ethics by focusing on consumption that is characterized by normative violence. By drawing on the work of Judith Butler this study of...     

WHAT ATTRACTS FOREIGN DIRECT INVESTMENT: A CLOSER LOOK

It is rational to assume that minimal trade barriers (tariffs and quotas), a bigger trade sector, lower interest rate regulations, freer international capital market, lower credit and labour market regulations will make investment in a country more lucrative for foreign investors. We confirm this and show the prevalence of non-linearity in the relationships.     

Human capital,trade, and economic growth

Human Capital, Trade, and Economic Growth. — Human capital, because of its special role in innovative activity and technological progress, has formed the bedrock of the new theories of endogenous growth. However, it not only serves as an engine of growth but also as a productive input along with labor and physical capital. In this study, the authors find evidence of the importance of both roles of human capital. They also find that the relationship between growth and the external effects of human capital vary according to trade regime. When literacy rates are relatively high, open economies grow about 0.65 to 1.75 percentage points more than closed economies.