Bagging bundle benefits in broadband and media mergers: Lessons from Sky/Vodafone for antitrust analysis

The historic precedents in telecommunications antitrust findings have tended towards finding harm to competition when network operators integrate downstream and bundle the provision of applications and services. The reason for this is that market power in network provision is thought to be extended into the applications market(s). More recently however, proposed mergers have been between telecommunications and media distribution firms, both of whom have some degree of market power, already sell their own services in bundles, and who may or may not have been offering combined bundles already via contractual agreements. Examples include Sky/Vodafone in New Zealand, and Time Warner/AT&T in the United States as well as Vodafone/Unitymedia in Germany and Media Capital/Altice in Portugal. These complex proposed arrangements pose challenges to competition authorities, whose legal and procedural rules and precedents, especially those defining the relevant markets affected by the merger or vertical integration activity, have been developed from the analysis of simpler cases. These precedents may not be sufficient to analyse current cases, characterized by multiple products catering to heterogeneous consumer preferences, and consumers are not constrained to buying only one variant of the products in each of the upstream and downstream markets.We illustrate the challenges by way of a case study of the proposed merger between Sky and Vodafone, declined by the New Zealand Commerce Commission in February 2017. Limitations in existing market definition processes and the evaluation of market power where bundling already occurs risk overlooking complex demand-side interactions that influence the profitability and efficiency of various structural and contractual strategic choices. We propose that classic merger and antitrust analysis based on econometric cost-benefit analysis can be augmented by using simulation and numerical analysis of a range of bundle offers expected to be relevant in decision-making. We develop a simple model and use it to illustrate how it may be used to inform broadband and content mergers, and other complex antitrust cases, such the assessment of the effects of two-sided markets and firm pricing decisions.     

The equity impacts of bus rapid transit: A review of the evidence and implications for sustainable transport

The paper offers an analysis of empirical evidence on the equity impacts of operational Bus Rapid Transit (BRT) systems in the Global South. The focus is on vertical equity, i.e. whether BRT systems achieve progressive benefits for poorer segments of the population. Findings from Africa, Asia, and Latin America all suggest that BRT does offer significant benefits to low-income groups, in terms of travel time and cost savings, access enhancement, and safety and health benefits. However benefits are often skewed toward medium-income users and thus less progressive than they might be. Two primary reasons for this are insufficient spatial coverage and inappropriate fare policies. While many features of BRT potentially allow it to deliver pro-poor outcomes, such outcomes only materialize if BRT implementers pay specific and sustained attention to equity. The paper identifies key issues that need to be addressed to steer BRT implementation toward more socially sustainable outcomes—including better integration with other transit, paratransit, and nonmotorized transport services, and with the housing sector.     

Income and Price Elasticities of Demand in South Africa: An Application of the Linear Expenditure System

This paper investigates the expenditure patterns of South African households using detailed cross‐sectional expenditure and price data that varies across region and time. Linear expenditure system parameter estimates are used to calculate income and price elasticities for a number of product categories at different points of the income distribution. We find substantial variation in the price and income elasticities of demand for items across the income distribution, with the bottom quartile being extremely sensitive to increases in the price of food and clothing items, and the top quartile being as sensitive as households in developed countries.     

Socio-economic developmental strategies as retail performance indicators: A balanced scorecard approach

This research analyses the commitment to and use of ‘balanced scorecards’ by retailers in generating sustainable profitability, whilst contributing to socio-economic development in South Africa. An international literature review of scorecard frameworks, plans and reports by major retail companies and semi-structured dialogic interviews with a purposive sample of retail business stakeholders and government officials formed the methodology. By contrasting the literature and empirical insights, a summary of findings was generated, which conclude that most retailer scorecards (formal or informal) seek to balance financial with ‘cause-related marketing’ targets, but implementation differs according to factors such as company size, developmental maturity and managerial competence. Furthermore, collaboration between retailers and state institutions in scorecard management is not a reality, as has been achieved in other industries. It is therefore recommended that a Retail Charter scorecard framework be considered, to promote public/private-sector knowledge-sharing and socio-economic development.     

Entrepreneurial values,hybridity and entrepreneurial capital: Insights from Johannesburg's informal sector

This study explored entrepreneurial values in Johannesburg's informal sector. Using responses to open-ended questions in a survey of 359 informal traders, the author analysed the way Western and indigenous (African) values mix to form hybrid values. The resulting understanding of hybridity makes it apparent that these traders exhibit both kinds of value in varying forms. In this paper the implications of the emergence of hybrid values, as a form of entrepreneurial capital, are explored using Bourdieu's notion of embodied capital. On this basis it is proposed that hybrid values are of material benefit to traders through conversion into other forms of capital, such as financial capital. More research is required, however, to investigate further how hybrid values translate into material gain in practice.     

The role of accounting and the accountancy profession in economic development: A research agenda

A widely held view in the accountancy profession and the donor community is that accounting and the accountancy profession play an essential role in economic development. However, our review of the academic literature finds limited empirical research evidence on the relation between accounting and the accountancy profession and economic development, including specifically whether any such relation is causal, and if so, the direction of the causality. Entities, including those comprising the donor community, policymakers, and professional accountancy organizations (PAOs), need evidence on the question of whether and how the accountancy profession contributes to economic development. Such research could assist donors in evaluating the outcomes of interventions aimed at building the capacity of PAOs in emerging and developing economies and inform future interventions. We summarize the limited academic research addressing the relation between PAOs and economic development and present insights from two roundtables facilitated by the International Association for Accounting Education and Research. We identify research opportunities and research design considerations. We hope our paper will stimulate accounting researchers to advance this literature.     

Reliability and relevance of fair values: private equity investments and investee fundamentals

Review of Accounting Studies - We directly test the reliability and relevance of investee fair values reported by listed private equity funds (LPEs). In our setting, disaggregated fair value...     

New bases for non-cancellable sickness insurance in Sweden

Abstract

Non-cancellable sickness and disability insurance—in Sweden known as long-term sickness insurance—has been carried on in Sweden since the beginning of the twentieth century; first by Eir since 1911, then by Valkyrian from 1912, and by Salus, a special company for physicians, since 1929. An account of the technical methods employed by Eir in sickness insurance is given in a paper which was read before the Ninth International Congress of Actuaries in 1930.1 In several important respects a new epoch has been established as regards sickness insurance in Sweden. On 1 January 1955 compulsory sickness insurance was introduced; and thus an essential part of the demand for sickness insurance was covered. At the same time three of the life assurance companies, Thule, Svenska Liv, and Städernas Liv have also begun to carryon the type of sickness insurance which had previously been effected only by the three companies mentioned above, and whose activities are restricted to sickness insurance. The apprehensions that might have been felt respecting the possible glut of the market were not confirmed; on the contrary, the interest in long-term sickness insurance appears to be increasing.     

Consumers' perceptions of food packaging: an exploratory investigation in Potchefstroom,South Africa

Consumers form perceptions of various food products through their comprehension of the visual stimuli on food packaging that attract their attention. These perceptions directly affect their purchasing decision at the point of purchase, which emphasizes the importance of attention‐capturing packaging attributes. However, little research is available regarding consumers' perceptions of food packaging, especially in the South African context. This study aimed to explore a sample of South African consumers' perceptions of food packaging and how these perceptions were formed through the perceptual process. A qualitative, exploratory study was conducted by means of 25 semi‐structured interviews and through the use of ambiguous mock packaging as a projective technique. Participants were questioned regarding their general perceptions of food packaging. The attention‐capturing ability of packaging as well as consumers' interpretation of this packaging after exposure to the mock packaging was also discussed. Findings from the study indicated that participants mainly based their perception of food packaging on its functional (being purposive, recyclable and informative) and physical attributes (being attractive, of high quality and hygienic). This study also indicated that information and visual attributes of packaging are important to gain consumers' attention in‐store. Participants' comprehension of packaging included general associations of specific food products with certain types of packaging, such as associations with quality and shelf life. Negative associations with packaging mostly entailed difficulty to handle the product, poor quality of the product and environmental problems. This study identifies those product attributes that participants regarded as the most important stimuli for forming positive perceptions regarding food packaging. It is important for manufacturers to pay attention to the information on perceptions that was gained in this study, as it might help them to create packaging that better fulfil consumer needs. These findings could also be applied in a larger study of a quantitative nature, which will ultimately result in more positive consumer shopping experiences and consumer satisfaction regarding food packaging.     

New instruments – old practices? The implications of environmental management systems and extended producer responsibility for design for the environment

As the focus of environmental policy and management is shifting from cleaner production at the process level towards greener products, there is a need for new kinds of policy instruments and initiatives. Environmental management systems (EMSs) and extended producer responsibility (EPR) systems are efforts to overcome the limitations of the traditional regulatory approach. In this paper, I illustrate how EMSs and EPR systems have influenced the emergence of greener products in three case companies. These case studies are complemented by results from a survey on design for the environment in the electrical and electronics industry. Both the case studies and the survey indicate that the linkage between EMSs and product development is weak or completely missing. Therefore, the mere existence of an EMS can hardly be used as a convincing indicator of the implementation of an environmentally friendly design process. The results regarding the EPR systems are more positive. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.