Regulation of network infrastructure investments: an experimental evaluation

This paper reports the results of an experiment evaluating three regulatory schemes for network infrastructure, in terms of their ability to generate efficient levels of capacity investment. We compare the performance of (1) price cap regulation, (2) a regulatory holiday for new capacity, and (3) price cap regulation with long term contracts combined with a secondary market. The setting is one in which network users can benefit from acting strategically, and are better informed than the network operator about demand growth. We find that the regulatory holiday creates an incentive to underinvest relative to optimal levels. Long term contracts also fail to improve on single price-cap regulation, and may reduce investment by providing noisier signals about future demand.     

Willingness to consume and produce transgenic bananas in Costa Rica

An exploratory study of the willingness to produce and consume transgenic bananas was carried out in Costa Rica. Transgenic crops are plants with novel genes incorporated into their genome through the use of genetic engineering techniques. Farm managers’ opinions were gathered using faxed questionnaires while final consumers’ opinions were obtained through personal intercept interviews. Consumers expressed a lack of knowledge about transgenic crops and had received non‐favour but also non‐negative information through the media about their adoption. The results of a probit regression model show that, other things being equal, younger, wealthier consumers, with higher levels of education, with smaller households are more likely to consume transgenic bananas. All producers included in the study consider they would adopt a new transgenic variety. Producers’ willingness to pay for such a variety would depend on its capacity to reduce pest management costs and is estimated to range between $500 and $999 per hectare. This study stresses the potential for development and adoption of a new transgenic variety that would alleviate the current issues faced by banana farmers. On the other hand, final consumers should be better informed on the nature of such products, their benefits and risks.     

VOLATILITY TRANSMISSION AND PATTERNS IN BUND FUTURES

We analyze intraday volatility behavior for the Bund futures contract that is traded simultaneously at two competing exchanges. We investigate the transmission of volatility between the exchanges. We find that the lead/lag relations are restricted to a few minutes and do not reveal a dominant leader. We then analyze patterns in intraday volatility. We find that volatility behaves similarly at both exchanges; i.e., it decreases from the opening until early afternoon and increases thereafter. The same pattern is detected in explanatory variables such as traded volume and time-between-trades.     

Computer-based adaptive testing in 1991

Tests, questionnaires, and inventories can advantageously be administered by computer. The use of item response theory (IRT) is described, and its application to making the instruments adaptive. Practical aspects of adaptive tests are discussed, including timing and safeguarding. Adjustments can be made for mastery tests. More elaborate partial-credit models are needed for items with more than two response alternatives.     

Using physical distribution strategy for better channel management

Physical Distribution (PD) while given a great deal of attention in the marketing literature during the past decade, has not been examined explicitly in terms of how it interfaces with channel management. Yet an understanding of PD-channel management interfaces is necessary if the marketer is to play a role in shaping the firm's PD strategy so that it is more likely to foster channel member cooperation rather than conflict. PD interfaces with channel management in at least four areas: (1) defining channel member service standards, (2) making sure a proposed PD program meets these standards, (3) the selling of the program to the channel members, and (4) monitoring the program once instituted to determine if it contributes to fostering channel member cooperation. Regardless of how the manufacturer treats the PD function from the stand-point of his own internal organization structure, there is no escaping these PD-channel management interfaces. Consequently, the marketer who is concerned with the channels aspects of the manufacturer's overall marketing strategy has an important role to play in influencing the firm's PD strategy so that it helps to enhance channel member cooperation.     

Exact relations between Luenberger productivity indicators and Malmquist productivity indexes

In this note we derive an exact relation between Luenberger productivity indicators and Malmquist productivity indexes. The authors are grateful for referee comments which substantially improved the paper.