The effects of mergers on price and output: Two case studies from the airline industry

The literature on industrial organization contains very little direct evidence on the effects of actual mergers. This study estimates the effects of two recent airline mergers approved by the Department of Transportation over the objection of the Department of Justice. The merger of TWA and Ozark appears to have caused a slight increase in fares and a far greater reduction in service on city pairs out of St Louis. The merger of Northwest and Republic appears to have caused a significant increase in fares and a significant reduction in overall service on city pairs out of Minneapolis-St Paul.     

THE LOCATION OF NONMETROPOLITAN HIGH-TECH INDUSTRIES: A Comparison of Regional Determinants

A study of the location of three classifications of high-tech industries in rural areas was undertaken using ordinary least squares, Tobit, and a two-step estimation procedure suggested by Heckman (1976). The results indicate that the location decision for high tech firms is influenced primarily by the county population, adjacency to an SMSA, and the expenditures on public infrastructure (exclusive of education expenditures). However, location near interstate highways was generally not a significant factor. Results were similar between branch and unit (single ownership) plants. Some differences in signs of orders of magnitude occurred among the estimation procedures. Making a choice between Tobit and Heckman approaches depends upon the goal of the research.     

Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research

Optimal investment rules are developed for a producer agency investing in domestic-market generic advertising, export market promotion, and cost-of-production-reducing research. These rules are derived assuming either maximization of producers' surplus or social surplus. The form of the optimality rules differs according to which objective is pursued. Fixed producer agency budgets are also allowed by incorporating a constraint limiting total expenditure on the three activities. Addition of such a constraint substantially alters the structure of the optimal investment rules. Differences in these rules highlight the importance of accounting for the financing mechanism when modeling optimal checkoff fund investment decisions. Optimality rules are simulated using data for the Canadian beef sector. Results suggest historic underinvestment in domestic-market generic advertising but overinvestment in export market promotion. Sensitivity of simulation results underscores the difficulty in assessing optimality of historic producer investment in cost-of-production-reducing research.     

Non-point sources and the waste discharge charge system.

The development of a waste discharge charge system (WDCS) in South Africa has been proposed to promote waste reduction and water conservation. The WDCS is based on the polluter pays principle and is designed such that the management of waste discharges achieves resource quality objectives (RQOs) at the minimum total cost to the catchment. Two charges are distinguished: first a charge for optimising use of the resource (incentive charge); and secondly, a charge for development and operation of mitigation measures in the resource (mitigation charge). The WDCS is applied to both point sources and non-point sources (NPS) of contamination. In the inclusion of NPS, the charge system distinguishes between registered and non-registered NPS, with the charge applied to the former group only, in the first instance. This paper introduces the WDCS by describing the principles and the theoretical basis of the WDCS, highlighting the link to RQOs as the benchmark of acceptable externalities. The paper explores the inclusion of NPS in the WDCS, describing: first, the principles of NPS inclusion in the WDCS; secondly, the types of NPS included in the present version of the WDCS; thirdly, the methodology for charge estimation; and finally, non-registered NPS and their potential inclusion in future editions of the WDCS. The paper concludes with remarks and challenges facing the first edition of the WDCS.     

Flood risk mapping at European scale.

The aim of this article is to illustrate a framework for flood risk mapping at pan-European scale produced by the Weather-Driven Natural Hazards (WDNH) action of the EC-JRC-IES. Early results are presented in the form of flood risk index maps. We assess several flood risk factors that contribute to the occurrence of flood disasters. Among the causal factors of a flood disaster one is triggering a natural event in the form of extreme precipitation and consequently extreme river discharge and extreme flood water levels. The threatening natural event represents the hazard component in our assessment. Furthermore exposure and vulnerability are anthropogenic factors that contribute also to flood risk. In the proposed approach, flood risk is considered on the light of exposure, vulnerability and hazard. We use a methodology with a marked territorial approach for the assessment of the flood risk. Hence, based on mathematical calculations, risk is the product of hazard, exposure and vulnerability. Improvements on datasets availability and spatial scale are foreseen in the next phases of this study. This study is also a contribution to the discussion about the need for communication tools between the natural hazard scientific community and the political and decision making players in this field.     

Development of an empirical mathematical model for describing and optimizing the hygiene potential of a thermophilic anaerobic bioreactor treating faeces.

Poor sanitation and insufficient disposal of sewage and faeces are primarily responsible for water associated health problems in developing countries. Domestic sewage and faeces are prevalently discharged into surface waters which are used by the inhabitants as a source for drinking water. This paper presents a decentralized anaerobic process technique for handling of such domestic organic waste. Such an efficient and compact system for treating faeces and food waste may be of great benefit for developing countries. Besides a stable biogas production for energy generation, the reduction of bacterial pathogens is of particular importance. In our research we investigated the removal capacity of the reactor concerning pathogens, which has been operated under thermophilic conditions. Faecal coliforms and intestinal enterococci have been detected as indicator organisms for bacterial pathogens. By the multiple regression analysis technique an empirical mathematical model has been developed. The model shows a high correlation between removal efficiency and both, hydraulic retention time (HRT) and temperature. By this model an optimized HRT for defined bacterial pathogens effluent standards can be easily calculated. Thus, hygiene potential can be evaluated along with economic aspects. In this paper not only results for describing the hygiene potential of a thermophilic anaerobic bioreactor are presented, but also an exemplary method to draw the right conclusions out of biological tests with the aid of mathematical tools.     

Construction of transmission lines above valuable standing timber

Problems with the construction of transmission lines above a forest are examined. Construction of lines above standing timber makes it possible to shorten the length of the route, eliminate the clearing of a continuous swath along the line, and reduce the volume of in-service work. To implement this solution, it is necessary to introduce changes and supplements to existing regulatory technical documents. __________ Translated from élektricheskie Stantsii, No. 10, October 2007, pp. 48–51.     

Multivariate statistical analysis of a high rate biofilm process treating kraft mill bleach plant effluent.

This study reports on a multivariate analysis of the moving bed biofilm reactor (MBBR) wastewater treatment system at a Canadian pulp mill. The modelling approach involved a data overview by principal component analysis (PCA) followed by partial least squares (PLS) modelling with the objective of explaining and predicting changes in the BOD output of the reactor. Over two years of data with 87 process measurements were used to build the models. Variables were collected from the MBBR control scheme as well as upstream in the bleach plant and in digestion. To account for process dynamics, a variable lagging approach was used for variables with significant temporal correlations. It was found that wood type pulped at the mill was a significant variable governing reactor performance. Other important variables included flow parameters, faults in the temperature or pH control of the reactor, and some potential indirect indicators of biomass activity (residual nitrogen and pH out). The most predictive model was found to have an RMSEP value of 606 kgBOD/d, representing a 14.5% average error. This was a good fit, given the measurement error of the BOD test. Overall, the statistical approach was effective in describing and predicting MBBR treatment performance.     

A new design of flocculation tank: the Turbomix applied to weighted flocculation.

As far as flocculation is concerned, the agglomeration of suspended particles into flocs is highly linked to the hydraulic behaviour of the agitation. The Turbomix is a special design of mixing tank; its design was developed to better control the flow during the flocculation stage. It enables a significant decrease in footprint of the process. The combination of the Turbomix and ballasted flocculation has been studied during pilot trials in terms of treatment efficiency. Its controlled hydraulic behaviour explains the efficiency of the process as proved by CFD investigation.     

Aqua-Biomant: integrated biological and electrochemical oxidation for industrial wastewater treatment.

An innovative technology for industrial wastewater treatment has been developed. The main focus of the new system is a transformation of persistent organic compounds (biorecalcitrant COD) into a biodegradable fraction, followed by high efficient biological elimination using specialised bacteria's. To fulfill these targets the Aqua-Biomant process integrates two treatment steps: an aerated biological upflow filter and a electrochemical oxidation technique using boron doped-diamond electrodes. The advantages of the process are high efficient COD removal with reduced energy consumption combined with low total residence time.