I would walk 500 miles: using travel costs to analyse the market for popular music concerts

This article examines the market for live performances of superstar musical artists. Using data on 56 concerts featuring acts such as Steely Dan, Willie Nelson and Def Leppard, we find that concertgoers have a higher willingness to pay for an increase in the artists’ top-10 albums than for an additional chart-topping single.     

Revenue-sharing contracts across an extended supply chain

Revenue-sharing contracts have been heavily researched and promoted in the academic literature. However, despite some well-documented examples (e.g., the way Blockbuster and film studios were able to increase availability of the latest video releases in rental shops through a revenue-sharing contract), they seem to be much less prevalent in practice. A possible reason for this gap between theory and practice is that most academic research has focused on two-party contracts involving only one buyer and one supplier, while in reality, most supply chains consist of multiple stages. When there are several stages in the chain—as is the case for many extended, global supply chains—the traditional revenue-sharing contract is no longer optimal for the two contracting parties, as every other participant in the chain is able to leverage the revenue-sharing contract to its own advantage. Put another way, a revenue-sharing contract between only two parties is not incentive-compatible across all participants. Accordingly, we suggest that a revenue-sharing contract should involve all the supply chain partners, and propose a spanning revenue-sharing contract that accomplishes coordination and incentive-compatibility across the same.     

Product information as a safety provision. Editorial preface

Abstract

In the literature as well as in standards, guides and laws, the concept of product information and related terms is not always clearly and consistently defined and used. An attempt is made to clarify the confusing terminology with regard to product information by building a conceptual framework. It is suggested that one overall concept, product information, be used to depict all types of information, texts and images, that may accompany or be associated with specific consumer products. Different types of product information may be distinguished by their function and their location. The effects of product information on product safety are difficult to assess and probably limited. Ways to measure effectiveness are discussed and it is concluded that objective criteria and test methods still need to be developed. Effectiveness studies are essential in order to improve future labelling initiatives.     

Policy Options for China＇s Bio-ethanol Development and the Implications for Its Agricultural Economy

The present paper analyzes the potential impacts of bio-ethanol expansion on agricultural production, food prices and farmers＇ incomes in different regions of China. The results show that increase in demand for feedstock to produce bio-ethanol will lead to large increase in the prices of agricultural products. The increase in prices will trigger a significant rise in the production of feedstock at the cost of lower rice and wheat production. The study also reveals that the impacts of bio-ethanol on farmers＂ incomes vary largely among regions and farmer groups. Given the expected expansion of bio-ethanol production in the future, and the limited land resources for feedstock production in China, the viability of different crops as feedstock for bio-ethanol requires careful analysis before a large-scale expansion of China＇s bio-ethanol program. Bio-ethanol production in China should be relying more on the second generation of bio-ethanol technologies （i.e. using celluloses to produce bio-ethanol）, and China＇s government should increase research investment in this field.     

A labour-supply function for females in the Netherlands

Summary For the Netherlands there is a great deal of leeway to make up in empirically estimating laboursupply functions. In this article a macro supply function for females is estimated where, for the first time in the Netherlands, income data are used. A positive relation between labour force participation and income is found. As for the role of unemployment a significant discouraged worker effect is discovered. Testing timingversus persistence in labour force participation results in empirical evidence for the theory stressing persistence. The authors would like to thank Joop Hartog, Arie Kapteyn, Jacques Siegers and Peter Kooreman for their comments on an earlier version of this article.     

THE ADVERSE EFFECT OF GOVERNMENT SPENDING ON PRIVATE CONSUMPTION IN NEW KEYNESIAN MODELS

Empirical evidence shows that government spending crowds in private consumption, a Keynesian phenomenon. The current, state of the art, New Keynesian models based on optimizing households and firms are not able to predict such a result. In this paper, we critically analyse fiscal policy in these models using a graphical framework as well as a formal model. Extensions aimed at generating crowding in, like useful government spending or rule of thumb consumers, turn out to be inappropriate. We argue that introducing productivity enhancing government spending could potentially lead to crowding in.     

Trompe l'œil: architects,consumers, and the need to rediscover technical function for ecologically sustainable housing

One challenge facing the need for ecologically sustainable housing is that it must cope with change over time. However, the flexibility required for housing to cope with change needs to be limited, as frequent change may offset the economy of resource use provided by durable housing stock. We describe two distinctly different but crucial aspects of housing services – social and technical functions – and briefly discuss how consumers and architects, who influence what consumers value in housing, have shifted design practices away from technical function and towards enhancement and growth of social function. Specifically, psychological obsolescence, which began in consumer products, is now emerging in housing, potentially accelerating demand for change as a result of fashion trends (an approach to the social function of identity expression) in housing. Four potential approaches to inspire consumer recognition of technical function in pursuit of ecologically sustainable housing are briefly discussed. These include promoting a ‘green’ fashion trend and three approaches that aim to restore the balance between social and technical function within housing design: regulatory tools, internalization of unaccounted costs, and incentives to move consumers from assumed to explicit recognition of technical function. Because they address the core problem of missing technical function, not just the increased demand for social functions, only these latter three approaches, possibly in combination, appear likely to contribute to a paradigm of ecologically sustainable housing.