We use laboratory experiments to examine the effect of firm size asymmetry on the emergence of price leadership in a price-setting
duopoly with capacity constraints. Independent of the level of size asymmetry, the unique subgame perfect equilibrium of our
timing game predicts that the large firm is the price leader. Experimental data show that price leadership by the large firm
is frequent, but simultaneous moves are also often observed. Profit outcomes in the previous period affect the subjects’ decisions
to announce or wait in a way that hampers convergence to the equilibrium. Furthermore, while both small and large firms display
a strong tendency to wait to announce their price when firm size asymmetry is low, they often set prices early when size asymmetry
is high. Prices are higher when price setting is sequential rather than simultaneous and when firm size asymmetry is high.
Hence, price leadership by either type of firm has an anti-competitive effect that is more pronounced when the size difference
between firms is large. 相似文献
This study uses 1989 Susenas household data to examine the impact of parental education on pre-school children's nutritional status, as measured by weight-for-age Z-scores. Reduced form regressions are estimated separately for boys and girls in rural and urban areas; explanatory variables include mother's and household head's education; per capita household expenditure; and aspects of the household sanitary environment. The analysis controls for influence of unobserved heterogeneity at village level, e.g. differences in prices and medical service provision. The estimates show a significant effect of parental schooling on child health status, varying between urban and rural areas, and by child gender and age. Mothers with secondary education typically have healthier boys than those with less schooling, while this effect is seen for girls only if the mother has more than secondary education. Maternal schooling significantly affects 2–5 year olds' health, but has little direct effect on that of younger children. 相似文献
Using environmental, social and governance scores compiled by Reuters Datastream for each company’s corporate social performance (CSP), we examine the relationship between CSP and corporate financial performance (CFP) of 314 UK listed companies over the period 2002–2015. We further evaluate the relationship between prior and subsequent CFP and prior and subsequent CSP. Based on the system-GMM estimation method, we provide direct evidence that suggests that while CFP and CSP can be linked linearly; however, when we examine the impact of CSP on CFP, the association is more non-linear (cubic) than linear. Our results suggest that firms periodically adjust their level of commitment to society, in order to meet their target CSP. The primary contributions of this paper are testing (1) the non-monotonous relationship between CSP and CFP, (2) the lagged relationship between the two and the optimality of CSP levels, and (3) the presence of a virtuous circle. Our results further suggest that CSP contributes to CFP better during post-crisis years. Our findings are robust to year-on-year changes in CFP and CSP, financial versus non-financial firms, and the intensity of corporate social responsibility (CSR) engagement across industries.
This study focuses on firms that are audited by a big auditor and examines the differentiation in the earnings management potential and the level of conservatism. It also investigates whether being audited by a big auditor would lead to lower agency costs and lower cost of equity. The study focuses on emerging common-law South Africa and code-law Brazil, and seeks to identify whether there are material differences given their dissimilar institutional characteristics. The study reports that even though firms may be audited by high quality auditors, their institutional differences influence significantly firms' earnings conservatism, agency costs and cost of equity. Client firms of big auditors in both common-law South Africa and code-law Brazil exhibit lower discretionary accruals. The study has found evidence of more conservative earnings for South Africa but insufficient levels for Brazil. For common-law South Africa, the presence of effective corporate governance mechanisms reduces agency costs. For code-law Brazil, the corporate governance mechanisms generally display an insignificant impact on reducing agency costs. For common-law South Africa, firm-level performance, growth and market determinants tend to lead to a lower cost of equity. For code-law Brazil, it is found that significant discretionary accruals, market beta and analyst forecast dispersion would result in higher uncertainty and would consequently raise the cost of equity. 相似文献
ABSTRACT This paper examines the internal and external challenges to the implementation of the code of conduct in the Ghana’s civil service using the Controller and Accountant Generals’ Department (CAGD) as a case study. The main internal challenges to the implementation of the civil service code of conduct at CAGD were found to be: the categories of staff affected by the code of conduct; ‘immunity’ from sanctions, nepotism; and limited checks on enforcement mechanisms. The key external challenges to the implementation of the civil service code of conduct at the CAGD are discussed in the paper and the authors make five important policy suggestions to enhance effectiveness of the implementation process. The suggestions will have value in countries with developing administrative systems. 相似文献
This paper adopts an alternative approach to the study of the impact of capital inflow on the real exchange rate by foremost, analysing the effect of FDI inflow on the ratio of tradables to nontradables, and then estimating the relationship between the tradable‐nontradable ratio and the real exchange rate, while accounting for the role of financial openness. Based on data for a group of developing countries, the findings show that an increase in FDI inflow is associated with a decrease in the tradable‐nontradable ratio, and that an increase in the tradable‐nontradable ratio leads to a depreciation of the real exchange rate; this effect being greater with an increase in financial openness. This suggests that an increase in FDI inflow could result in an expansion of the nontradable sector, which would be associated with a greater appreciation of the real exchange rate under a higher level of financial openness. 相似文献
ABSTRACTWe study the multiple style and type parallel asset replacement problem (MST-PRES), which determines an optimal policy for keeping or replacing a group of assets that operate in parallel under a limited budget. Operating assets generally suffer from deterioration, which results in high operation and maintenance (O&M) cost and decreased salvage value, and technological improvements make it possible for new assets to operate more efficiently at a lower cost. In order to address these issues, we formulate a multi-objective mixed-integer programming (MIP) model that minimizes fixed and variable costs of purchasing new assets, O&M cost, inventory cost, and penalty cost for unmet demand minus salvage values, while considering technological advances and deterioration as a gain and loss in capacity, respectively. We apply our model to a case study involving two different styles of assets: a full-body magnetic resonance imaging (MRI) machine and a smaller extremity magnetic resonance imaging (eMRI) machine. Each has two types: high-field and low-field. We perform computational experiments and analyses using key model parameters and illustrate optimal replacement strategies considering the impact of technological advances and deterioration. Results show that the proposed MIP model provides valuable insights and strategies for companies, decision makers, and government entities on the capital asset management. 相似文献
The article explores the role of a new determinant that accounts for driving consumer prices, i.e. rare earth prices. Rare earths are used for many advanced manufacturing and military technologies. Performing a number of panel methodological approaches, panel cointegration findings support the initial insight of the authors and illustrate a positive effect on consumer prices across all rare earths. 相似文献