Actual and perceived consumer vigilance in the retail grocery industry

Economic theory suggests that price competition is in part driven by actively searching buyers. An exploratory study in a major midwestern grocery market revealed that executives responsible for pricing decisions overestimate the size of the price-driven shopping segment. The reasons behind this perception and its impact on pricing decisions are examined.     

D-optimal weighing designs for six objects

For all integers m≥6, we determine the maximum value of det X ^T X, where X is an m×6 (0, 1)-matrix, and exhibit (D-optimal) matrices X for which the maximum occurs. For D-optimal matrices X, the uniqueness of the Gram matrix X ^T X is discussed. Received: May 2000     

Urban population distribution,family income,and social prejudice: I. The long,narrow city

We present an idealized model of a one-dimensional “city”, characterized by interactions between the costs of social prejudice, transportation, and housing.Using variational techniques, we show that under rather simple assumptions the model leads to a “suburban-urban” dichotomy, and also to a “segregated” neighborhood structure.In this abstract city, optimal “social policies” result in Pareto-efficient population distributions.     

The tradeoff between risk sharing and information production in financial markets

The production of information in financial markets is limited by the extent of risk sharing. The wider a stock's investor base, the smaller the risk borne by each shareholder and the less valuable information. A firm which expands its investor base without raising capital affects its information environment through three channels: (i) it induces incumbent shareholders to reduce their research effort as a result of improved risk sharing, (ii) it attracts potentially informed investors, and (iii) it may modify the composition of the base in terms of risk tolerance or liquidity trading. Implications for individual firms and the market as a whole are derived.     

The Law and Economics of Costly Contracting

In most of the contract theory literature, contracting costsare assumed either to be high enough to preclude certain formsof contracting or low enough to permit any contract to be written.Similarly researchers usually treat renegotiation as eithercostless or prohibitively costly. This article addresses themiddle ground between these extremes, in which the costs ofcontracting and renegotiation can take intermediate values andthe contracting parties can themselves influence these costs.The context for our analysis is the canonical problem of inducingefficient relation-specific investment and efficient ex posttrade. Among our principle results are: (i) The efficiency andcomplexity of the initial contract are decreasing in the costto create a contract. Hence the best mechanism design contractscan be too costly to write. (ii) When parties use the simplercontract forms, they require renegotiation to capture ex postsurplus and to create efficient investment incentives. In somecases, parties want low renegotiation costs. More interestingis that, in other cases, parties have a strict preference formoderate renegotiation costs. (iii) The effect of contract lawon contract form is significant but has been overlooked. Inparticular, the law's interpretive rules raise the cost of enforcingcomplex contracts, and thus induce parties to use simple contracts.Worse, the law also lowers renegotiation costs, which furtherundermines complex contracts and is also inappropriate for someof the simpler contracts.     

Financial Market Turmoil： Implications for Monetary Policy Transmission in China

The recent financial market turmoil has initiated another search for insightful understanding of the interactions between the financial market and monetary policy. This paper explores these interactions in terms of the transmission mechanism of monetary policy in China. We argue that evolving financial development, enhanced by the expansion of the financial market, has altered the conventional channel for monetary transmission in China. Analyzing marked changes in the financial landscape and taking into account policy regime shifts in China, the paper provides clear evidence showing that the financial market has become a new and important channel for transmission of monetary policy in China.     

FROM THE WAR ON POVERTY TO WELFARE REFORM: HOW THE AMERICAN UNDERSTANDING OF THE CAUSES OF POVERTY CHANGED

The American understanding of the causes of poverty has changed significantly since the War on Poverty was launched in 1964. It was then commonly believed that jobs were unavailable to the poor and that poverty should be reduced by doles. Today most observers contend that jobs are available for the poor, and that poverty stems from self-defeating behaviours that doles exacerbate.     

Injury-related hospitalizations in 2002 and 2012 in a Mexican rural hospital: differences between indigenous and non-indigenous inpatients

Data are lacking on the extent and distribution of injuries in rural areas. This study aimed at comparing injury-related hospitalizations between 2002 and 2012 at a rural hospital of northern Mexico focusing on differences between indigenous (IP) and non-indigenous patients (NIP). A retrospective design based on the review of records of patients hospitalized with injury diagnoses was used. Information extracted included ethnicity, sex, age, hospital duration, surgical procedures, complications and discharge outcome. Injury data comprised of main diagnosis, mechanism and body part affected. Patterns were stratified by year and ethnicity. Logistic regression was used to determine the probability of being hospitalized for >1 day. Injury-related mortality increased from 0.4% in 2002 to 3.1% in 2012. The proportion of non-indigenous patients hospitalized also increased by 4.5%. Men accounted for two-thirds of all inpatients. Weapon involvement doubled from 16.6% to 33.6%. Almost half of the patients in 2012 were victims of interpersonal violence. Indigenous patients had a 2.7 higher adjusted odds ratios of being hospitalized for >1 day in 2002 (95% CI 1.2–5.7), though the gap was reduced to 1.9 (1.1–3.5) in 2012. While indigenous patients continue to be more disadvantaged than the non-indigenous, the gaps closed in 2012; the reasons behind these disparities need to be further investigated.