Country size and ‘insulation’ from external disturbances

Summary This paper considers the relationship between economic size and vulnerability to external disturbances. In order to analyze this issue effectively a model comprising three different-sized economies is constructed. The issue of economic size and insulation is approached from this alternative perspectives depending upon the relative size of (a) the `recipient' country and (b) the transmitting country. The results of the analysis indicate that, contrary to popular belief, a small country under floating exchange rates is less severely affected by external economic events than a large economy regardless of the type of external disturbance and the degree of domestic wage indexation.This paper has been improved by the helpful comments of a referee. We alone are solely responsible for all remaining errors.     

Pricing Decisions in Dual-Channel Supply Chain Including Monopolistic Manufacturer and Duopolistic Retailers: A Game-Theoretic Approach

Emergence of the Internet as a new distribution channel has led to increasing attention by researchers to dual-channel supply chain in recent years. In this paper, pricing and ordering decisions are investigated on a dual-channel supply chain which consists of monopolistic manufacturer and duopolistic retailers. The market is assumed to be controlled by the manufacturer. Thus, the manufacturer becomes leader and the two retailers act as followers. Due to establishing this new structure, different game-theoretic models including Bertrand, Collusion, and Stackelberg are developed to analyze pricing strategies under the various interactions between the two retailers. Then, the equilibrium decisions are compared under the considered scenarios and valuable managerial insights are presented. We found that the various games do not have any effects on the manufacturer’s responses. The retail prices given by the Collusion game are higher than by the other games. In the Collusion model, demands in the retail channel are lower than in the other games. Moreover, the manufacturer and retailers receive respectively the lowest and the highest profits under the Collusion game.     

Modeling hazardous materials risks for different train make-up plans

This paper is concerned with the problem of how to place hazardous material cars in the train assembly process so that the overall derailment risk can be minimized. The approach considers both the probability of railway cars derailing en route by position as well as the risk associated with additional operations in the rail yard using recent US FRA data. The merits of this car placement model are illustrated through a case study of a railway corridor that connects Los Angeles (CA) to Chicago (IL). The case study demonstrates that the proposed risk minimization strategy could be implemented with minimal rail yard operation cost.     

Knowledge matching in the technology outsourcing context of online innovation intermediaries

This paper focuses on innovation matchmaking by online innovation intermediaries that operate as technology outsourcing services. These services connect employers wishing to commission individuals to complete technical activities to individuals with knowledge to undertake the project. We present three new metrics based on the statistical mechanics of complex networks to assess forms of knowledge matches between the knowledge required by employers’ projects and the knowledge offered by service providers. Based upon the results, we identify several challenges open innovation intermediaries, employers, and providers face: structuring knowledge to identify providers who can provide solutions beyond the immediate exigencies of the problem, choosing a provider among many potential matches, and choosing an online innovation intermediary when several suitable alternatives exist. The metrics provide insight into potential solutions to these challenges. We conclude with recommendations to improve the service offerings of online innovation intermediaries.     

Traceability in the Canadian Red Meat Sector: Do Consumers Care?

Increased traceability of food and food ingredients through the agri-food chain has featured in recent industry initiatives in the Canadian livestock sector and is an important facet of the new Canadian Agricultural Policy Framework (APF). While traceability is usually implicitly associated with ensuring food safety and delivering quality assurances, there has been very little economic analysis of the functions of traceability systems and the value that consumers place on traceability assurances. This paper examines the economic incentives for implementing traceability systems in the meat and livestock sector. Experimental auctions are used to assess the willingness to pay of Canadian consumers for a traceability assurance, a food safety assurance, and an on-farm production method assurance for beef and pork products. Results from these laboratory market experiments provide insights into the relative value for Canadian consumers of traceability and quality assurances. Traceability, in the absence of quality verification, is of limited value to individual consumers. Bundling traceability with quality assurances has the potential to deliver more value.     

Optimal Integrated Strategies to Control an Invasive Weed

Although there have been numerous studies on the economics of weed control in agriculture, relatively few studies have focused on weeds in natural ecosystems. A stochastic dynamic simulation model and a stochastic dynamic programming model are developed to: (A) identify the combination of control options that is optimal for blackberry (Rubus anglocandicans) in Australian natural ecosystems, (B) assess whether an integrated control strategy is superior to chemical‐only strategies, (C) evaluate the net benefits of biological control (a rust and grazing by goats), and (D) determine how changes in model parameters affect the optimal control strategy. The results indicate that, while an integrated strategy combining chemical and nonchemical control methods may be optimal in certain circumstances, it is not necessarily superior to a chemical‐dominant strategy in all cases. The results show that grazing goats for control of blackberry can be optimal despite uncertainty about its effectiveness. Policy makers need to be aware of the trade‐offs between choosing more effective control options that may impose environmental and health risks versus less effective control strategies that are safer to the environment and human health.     

Consumer Attitudes Toward Mandatory Traceability and Labeling Systems for Farmed Atlantic Salmon

The food incidence of polychlorinated biphenyls in farmed Atlantic salmon in Canada and its subsequent effects on the demand for farm-raised salmon has induced policymakers and stakeholders to develop new policies on food safety. This article analyzes consumer attitudes toward mandatory traceability and labeling systems for farmed Atlantic salmon in Newfoundland and Labrador. It identifies factors affecting consumers' decisions to purchase the product. Results show that consumers, on average, perceive the benefits of traceability and labeling systems on farm-raised Atlantic salmon in spite of its driving up the product price.     

The floating stock policy in fast moving consumer goods supply chains

The floating stock distribution concept exploits intermodal transport to deploy inventories in a supply chain in advance of retailer demand. In this way response times are reduced and storage costs can be reduced as well by having products in the pipeline. In this paper we present two mathematical models to analyse this policy with backlogging allowed. The first one tries to optimize the advanced shipping time of containers to intermodal terminal, and the second optimizes the total number of containers in pipeline and terminal. A comparison is made with the simulation outcomes of applying previously developed strategies, which shows that this concept has advantages in inventories over other strategies.