Calling circles: network competition with nonuniform calling patterns

We introduce a flexible model of telecommunications network competition with nonuniform calling patterns, accounting for the fact that customers tend to make most calls to a small set of similar people. Equilibrium call prices are distorted away from marginal cost, and competitive intensity is affected by the concentration of calling patterns. Contrary to previous predictions, jointly profit‐maximizing access charges are set above termination cost in order to dampen competition if calling patterns are sufficiently concentrated. We discuss implications for regulating access charges as well as on‐ and off‐net price discrimination.     

High School Economics: Problems and Prospects

Asserting that the basic problem in high school economics is that we have not identified “what high school economics ought to be,” Warmke proceeds to spell out some of the specific obstacles hindering the development of more and better secondary level courses. He then discusses some of the more encouraging trends in research, teaching, teacher-training, materials development, and the like, and makes some cautious projections for the future.     

Determinants of transfer pricing aggressiveness: Empirical evidence from Australian firms

This study examines the major determinants of transfer pricing aggressiveness. Based on a hand-collected sample of 183 publicly-listed Australian firms for the 2009 year, our regression results show that firm size, profitability, leverage, intangible assets, and multinationality are significantly positively associated with transfer pricing aggressiveness after controlling for industry-sector effects. Our additional regression results also indicate that firms augment their transfer pricing aggressiveness through the joint effects of intangible assets and multinationality.     

The Talmudic Doctrine of "The Benefit of a Pleasure": Psychological Well-Being in Talmudic Literature

A bstract .   In this article, we attempt to analyze the Talmudic notion of well-being in the light of modern hedonic psychology. First, we examine the thoughts of Hebrew "wisdom" and Greek " sophia " concerning the phenomenon of happiness. We then discuss the Talmudic doctrine of "optimality," a concept similar to that of the Pareto improvement. This is followed by a discourse deemed to be of extraordinary significance—the idea of "mutual benefit," which may be described as "super optimum." Thereafter, the doctrine of the "Benefit of a Pleasure" is demonstrated to be a "pleasure-measure" of reciprocal and nonreciprocal happiness. Finally, it is argued, that although Plato, according to Professor Lowry, detailed precise "trade-offs" between degrees of pleasure, pain, and time, it was applied to "moral values" only, whereas the Talmudists posited the existence of a "psychoeconomic" category, in which pleasure itself is equated with money.     

Productivity growth and biased technological change: Credit banks in Japan

This paper investigates the productivity change of Japanese credit banks with a Malmquist index and the input technological bias during 2000–2006. Our results indicate that the traditional growth accounting method, which assumes Hicks neutral technological change, is not appropriate for analyzing changes in productivity. Our analysis unambiguously shows that management of Shinkin banks has to be improved. These must be based on the improvement of technical efficiency and/or technological change, emulating the procedures of the best-practice banks, i.e., those banks with Malmquist productivity scores higher than one and simultaneously with technical efficiency and technological change higher than one.     

Efficiency in Banking: Empirical Evidence from the Czech Republic

The paper examines the cost efficiency of the Czech-banking system in the 1990s by applying the distribution free approach model. Reported results indicate that foreign banks were on average more efficient than the other banks, although their efficiency was comparable with the ‘good’ small banks’ efficiency in early years of their operation. Based on the estimated results it is argued that early privatisation of state-owned commercial banks and more liberal policy towards foreign banks in the early stage of transition would have enhanced the efficiency in the banking system. Anita Taci - The views and opinions are those of the author and not necessarily those of the EBRD.