The cost effect in third-degree price discrimination

In the presence of a non-constant marginal cost and demand uncertainty, we show that an output increase is no longer a necessary condition for welfare to increase following the introduction of third-degree price discrimination. We thus highlight the existence of an effect that might offset the well known output and misallocation effects of price discrimination. We propose a specific example where this is indeed the case.     

Examples of unit tax superiority for a price-discriminating monopolist

This paper compares the welfare effects of per-unit and ad valorem taxes in four pervasive price discrimination schemes: quantity discounts, two-part tariffs, bundling, and package size price discrimination. The paper shows by example that per-unit taxes may welfare dominate ad valorem tariffs in a market with a monopoly that maximizes profits by engaging in second-degree price discrimination.     

Consumer surplus bias and the welfare effects of price discrimination

Journal of Regulatory Economics - This paper examines the incentives for efficient pricing mechanism in markets with non-convexities. The wholesale electricity market is a prominent example....     

Seasonality,price discrimination,and welfare

We discuss a potential limitation to a widely accepted result, namely that an output increase is a necessary condition for welfare to increase with price discrimination. We use a theoretical model to show that the existence of seasonal demand fluctuations may allow for a simultaneous reduction in average output and increase in average welfare. We also discuss a number of extensions of our basic model.     

Effect of low-cost airlines on tourism in Spain. A dynamic panel data model

This article estimates the impact of low-cost airlines on Spanish tourism during the first decade of the 21st century looking tourist traffic from the principal EU-15 member states using a dynamic panel data. The expansion in low-cost airline activity has had significant, positive direct and indirect effects on the Spanish economy. The study also looks at some of the key elasticities of demand that have influenced this.     

Excessive entry and the integer constraint with many firms: a note

This paper studies the excessive entry bias in a market with many firms. We show that the integer constraint may be relevant regardless of the number of firms. A more sensible interpretation of one of the assumptions proposed by Mankiw and Whinston (RAND J Econ 17(1):48–58, 1986) plays a major role in the importance of the integer constraint. Consequently, we reach different policy conclusions.     

Understanding factors influencing consumer attitudes toward cause‐related marketing

• Cause‐related marketing (CRM) has proliferated as a marketing strategy and is being employed by numerous brands across product categories. Despite its widespread popularity, not much is known about the factors that influence consumer attitudes toward CRM. In this study, we investigate the antecedents of consumer attitudes toward CRM, specifically sociodemographic characteristics, consumer susceptibility to interpersonal influence, and mediating role of consumer values. We test causal relationships employing a partial least squares‐based structural equation model. The data are collected via a structured questionnaire resulting in 456 valid responses. Our study demonstrates that attitudes toward CRM are influenced by sociodemographic characteristics with personal values acting as mediator. In addition, our findings show that consumer susceptibility to interpersonal influence affects the importance given to values, which in turn influences attitudes toward CRM. Our study makes theoretical contributions in the domain of CRM, specifically regarding the role of personal values, interpersonal influences, and sociodemographic factors in influencing attitudes toward CRM. In addition, the findings have relevance for managers responsible for their CRM campaigns.

Copyright © 2014 John Wiley & Sons, Ltd.     

The Role of Fair Value Accounting in Promoting Government Accountability

A key factor to improve the financial accountability of governments is the existence of a set of generally accepted financial reporting of standards, such as IPSAS issued by the IFAC, which seek to enhance information transparency. This paper examines the capability of fair value accounting to improve, through financial transparency, government accountability, analysing the possible effect of the implementation of this measurement basis on understandability, comparability and timeliness—three qualitative characteristics linked to the relevance of financial reporting. This paper further considers whether the difficulties involved in achieving FV estimations could affect government financial accountability. The findings indicate that FVA implementation could enhance accountability by improving understandability, comparability and timeliness in governmental financial reporting, although the use of objective measures to estimate the FV of assets is fundamental. In addition, the type of assets and the existence of an active market are crucial to improving the comparability of financial statements under FVA, whereas improving timeliness could be limited by the possibility of estimating FV measures in‐house.     

Identifying barriers to the application of standardized performance indicators in local government

Abstract

Local governments in many countries are implementing administrative reforms within the framework of New Public Management (NPM) in order to improve the quality and productivity of public services. The use of performance indicators and benchmarking facilitates evaluation of efficiency regarding the provision of such services and favours the acquisition of better practices. The problems that may arise in the introduction of performance indicators in local government mainly concern the consensual design and standardization of indicators for various entities, the method to be used for calculations and the selection of analytical criteria to be applied to the values obtained. In this article, we identify obstacles that may be encountered in achieving a standardized definition of performance indicators within local government and, on the basis of learning from the practical experience of several large city councils in Spain, formulate strategies to resolve these problems, taking note of the viability and real efficacy of the solutions adopted.