Bundling and Menus of Two-Part Tariffs

Inducing self-selection among different segments of consumers is an important issue in pricing. Some firms induce self-selection by offering a menu of two-part tariffs (e.g., different rate plans) and letting consumers select the tariff and quantity they prefer. Other firms induce self-selection by offering a menu of price-quantity bundles (e.g., different package sizes) and letting consumers select only from among these bundles. We show that bundling is more profitable absent cost considerations. Social welfare may be higher or lower with bundling.     

Duopoly conjectures

This paper embodies the views of the author and does not necessarily represent the views of the Federal Reserve Bank of Philadelphia or of the Federal Reserve System.     

The Financial and Operational Impacts of FERC Order 636 on the Interstate Natural Gas Pipeline Industry

The Federal Energy Regulatory Commission's Order 636 fundamentally altered the regulatory and operational environment of the natural gas industry in 1992, as the culmination of several directives aimed at relaxing regulation and fostering competition. We hypothesize that gas pipeline firms subsequently changed their operational and financial behavior in ways consistent with reduced balkanization, increased competition, and reduced expense preference behavior. Our results indicate that these firms have become more homogeneous financially but less so operationally. We find evidence that the marginal profitability of various pipeline activities has responded more to financial market conditions than to the regulatory environment.     

Local and National Impacts from Landing North Sea Gas in Western Norway

A bstract . A simple framework is presented for the analysis of the local employment, income, sales , and local government impacts of landing North Sea gas at either of two Norwegian kommunes (municipalities). These impacts indicate the different forms of economic change arising from a major economic development event. The average annual net change in these economic measures is estimated for the operational phase of a gas terminal. The analysis indicated substantial differences in local and regional net gains. Both sites yielded positive neteconomic gains, which means noneconomic and national considerations become key decision determinates. These national issues provide the setting to judge the local/regional net gains. The unresolved questions include the national benefits and costs of the landing decision given the small scale of the Norwegian economy, potential future gas finds, and a fully employed economy.     

Disaggregating operating and financial activities: implications for forecasts of profitability

Researchers, practitioners, and standard setters emphasize the importance of disaggregating financial statements into operating and financial activities. However, there is a lack of research demonstrating that this disaggregation improves forecasts of profitability. In this study, we consider whether and when the operating/financial disaggregation improves forecasts of profitability. Contrary to the use of an aggregate forecasting approach by most related prior research, we first show that the operating/financial disaggregation only provides forecast improvement over a benchmark model incorporating aggregate information when the components forecasting approach is used. We also compare the operating/financial disaggregation to the unusual/infrequent disaggregation required by US GAAP. We find that the operating/financial disaggregation yields less accurate forecasts than the unusual/infrequent disaggregation. However, when using the components forecasting approach, we find that the combination of both disaggregations improves forecasts of profitability. Finally, we document that the incremental usefulness of the operating/financial disaggregation relative to a benchmark model incorporating aggregate information is a function of growth and accounting conservatism. Overall, our study provides timely evidence concerning how analysts and investors might best use the operating/financial disaggregation for forecasting profitability.     

快速启动"完美团队"

搭建组织的人才舰队，并不一定需要眼光向外、重金挖角，其实从公司内部着手，最大限度地利用现有的人才，不仅见效更快，而且也许可以为公司带来超乎想象的巨大价值。     

Profiling emerging contractors for effective transformation in the South African construction sector

South Africa's construction industry is transforming. Its economy requires a wider base of contracting entities. Much of this growth is expected to be delivered by ‘emerging’ contractors. Yet these companies face significant obstacles. Targeted interventions that foster companies need a better picture of these firms and their core members. A survey of the civil engineering sector, targeting emerging contractors, showed that the owners of these companies lack training and experience, and that there are gender-related differences. Classifications according to company turnover, contract sizes or employee numbers alone do not reflect circumstances. Combining these data with the core members' backgrounds gives a clearer picture. Most companies hover between the ‘Existence’ and ‘Survival’ stages of business development. Development initiatives that assume companies require knowledge must accommodate large cognitive distances between sender and receiver. Initiatives thus need to focus on the owners, considering the status and background of their companies.     

Monopoly rationing revisited

This paper establishes that, whenever a simple pricing strategy fails to attain to the rationing outcome, a more complex pure price strategy may yet do so. It is also shown that rising marginal cost with uncertain demand may make rationing beneficial.     

The Winner''s Curse in Banking

Theoretical studies have noted that loan applicants rejected by one bank can apply at another bank, systematically worsening the pool of applicants faced by all banks. This study presents the first empirical evidence of this effect and explores some additional ramifications, including the role of common filters—such as commercially available credit scoring models—in mitigating this adverse selection; implications forde novobanks; implications for banks' incentives to comply with fair lending laws; and macroeconomic effects. The evidence supports the simple theory regarding loan loss rates but indicates a positive association between bank structure and income growth.Journal of Economic LiteratureClassification Numbers: G21, D80, L10.