Spatial Price Discrimination: The Use of Parking Coupons by Downtown Retailers

Price discrimination in monopolistically competitive markets affects firms' joint profits through several pecuniary and nonpecuniary externalities. Discrimination is a public good if the net effect is positive. Using a random utility shopping destination choice model we investigate the effect of a downtown parking coupon program that discriminates in favor of suburban consumers and against consumers based downtown. The program appears profitable for downtown stores collectively, but in the noncooperative Nash equilibrium stores do not participate. Participation is thus subject to free-riding. As the subsidy rate required to induce participation rises, profits fall. Whatever the subsidy rate, social surplus declines.     

Bayesian learning in social networks

We extend the standard model of social learning in two ways. First, we introduce a social network and assume that agents can only observe the actions of agents to whom they are connected by this network. Secondly, we allow agents to choose a different action at each date. If the network satisfies a connectedness assumption, the initial diversity resulting from diverse private information is eventually replaced by uniformity of actions, though not necessarily of beliefs, in finite time with probability one. We look at particular networks to illustrate the impact of network architecture on speed of convergence and the optimality of absorbing states. Convergence is remarkably rapid, so that asymptotic results are a good approximation even in the medium run.     

Fertilizer in Indonesian Agriculture: the Subsidy Issue

Indonesia began subsidizing fertilizer in 1971 to encourage its use as a complement to the new, high-yielding rice varieties that were becoming available. While providing considerable assistance to encouraging farmers to utilize these new HYVs and the associated package of inputs, the subsidy for fertilizer has attracted considerable attention in the light of the increasing budget limitations in Indonesia. The high levels of fertilizer and HYV use, the rapidly changing elasticities and cross elasticities among the major food crops, and the growing intersectoral linkages in the Indonesian economy suggest reasons for re-assessment of the subsidy for fertilizer. The operation of the subsidy is explained, followed by a discussion of changes in the relevant elasticities for demand and supply of commodities and fertilizer. A static welfare analysis of the fertilizer subsidy is presented, showing that the economic subsidy is worth only 42% of the financial subsidy and that farmers are receiving only 7% of the financial subsidy. A simulation of the effects on the food crop sector of removing the subsidy follows the welfare analysis. The paper concludes with an exploration of the policy issues stemming from the results.     

Preference mapping of conjoint-based profiles: An INDSCAL approach

This article describes an approach in which conjoint methodology and multidimensional scaling can be fruitfully applied, in tandem, to the measurement and representation of preference data for factorially designed profiles. The approach is described and applied to an illustrative data set. We conclude the article with a brief discussion of possible extensions of the approach and additional research needs. AT&T Bell Laboratories     

Implementing the concept of transformational advertising

The concept of the transformational effects of advertising is described and refined to provide a definition possibly more useful in empirically studying the construct. Methodological difficulties in testing and using the concept are discussed before proposing projective techniques as an approach which might overcome some of the problems. Finally, a study is reported that illustrates how projective techniques may be used to study transformational advertising.     

bring back the poll tax

Councillor Douglas Mason, the originator of the Community Charge, argues for its return and explains how the Council Tax could be easily reformed to recapture the best features of the Poll Tax.     

Effect of time on a marketing strategy

A firm that had enjoyed considerable success in the marketplace during the early stages of the product life cycle found itself losing market share. The firm and its competitors had not changed their marketing strategies since the introduction of the product. This article describes the results of research examining possible causes for the market reversal. It Was discovered that the nature of the organizational buyer and his buyer behavior changed in a predictable manner since product introduction progressed. These changes made the competitors' marketing strategy more effective and probably caused the market reversal. The implications for this firm and for firms marketing innovative products in general are discussed.     

Real Estate Investment Analysis: New Developments in Traditional Leverage Concepts

The advantages of utilizing leverage in real estate investments has received much attention in the past, but little guidance has been offered that shows the investor the most opportune leverage position for a given investment alternative. Traditional leverage concepts are explored in this article, prior to developing a financial indifference point model and a continuous-function degree of financial leverage (DFL) formula. The indifference point and DFL as shown here are relatively simple to calculate and provide additional insights into risk, return and leverage concepts for real estate investments.     

Financing telecommunications for rural development

Evidence shows that there has been serious underinvestment in telecommunications facilities in developing countries (DCs). This article analyses the reasons for this neglect, and demonstrates that a major restrictive factor in the development of telecommunications facilities in DCs — particularly in rural areas — has been the absence of adequate foreign exchange financing. Through an analysis of three major mechanisms for financing investment — supplier credits, multilateral lending and bilateral lending — and of the policies of the major institutions involved, the article identifies those policies that will stimulate the expansion of rural telecommunications in DCs.