WHEN DO VERTICAL RESTRAINTS HARM COMPETITION? THE ECONOMICS‐BASED APPROACH AND ITS APPLICATION IN THE BATSA CASE

An “effects‐based” or “economics‐based” approach to competition policy requires a theory of harm that causally links a business practice and its allegedly anti‐competitive effects and also weighs anti competitive effects against the pro‐competitive effects of the practice. This implies a shift away from per se prohibitions of certain practices towards case‐by‐case analysis – a move that has been hotly debated, especially in Europe. Using a case study of the recently concluded British American Tobacco case, we study the core features of an effects‐based approach to vertical restraints. We find the approach followed in the British American Tobacco South Africa case generally consistent with an effects‐based analysis, but highlight some limitations.     

THE PROPERTIES OF CYCLES IN SOUTH AFRICAN FINANCIAL VARIABLES AND THEIR RELATION TO THE BUSINESS CYCLE

The paper describes cyclicality in a range of local and international financial variables and their relation to cyclical behaviour in the South African real economy. Cycles are derived using a dating algorithm similar to that used to determine business cycle turning points and falls within the Burns‐Mitchell tradition of business cycle analysis. Co‐movement between phases in financial variables and similar phases in the business cycle are described using the concordance statistic, instead of the correlation statistic (which requires stationarity). This is a preliminary step in identifying financial variables that can act as leading indicators of economic activity.     

The Dimensions of Service Quality: The Original European Perspective Revisited

The early pioneers of services marketing in Europe, especially the Nordic School, argued that service quality consists of two or three underlying dimensions. Lehtinen and Lehtinen [1985] referred to physical and interactive quality while Christian Grönroos [1984] identified a technical dimension, a functional dimension and the firm's image as a third dimension. In later years, Parasuraman, Zeithaml and Berry [1988] published empirical evidence from five service industries which suggested that five dimensions more appropriately capture the perceived service quality construct. This study uses an exploratory factor analysis approach to investigate the empirical factor structure of the SERVQUAL instrument developed by Parasuraman et al. [1988] to measure perceived service quality. Based on the results of five exploratory analyses performed on five SERVQUAL data sets, a model for SERVQUAL is proposed. It suggests that the SERVQUAL difference scores are measures of two factors termed ‘intrinsic’ and ‘extrinsic’ service quality. The model is then fitted to the SERVQUAL data obtained from five samples of clients who evaluated the services of five service industries or companies by means of confirmatory factor analysis. The results of this study provide empirical support for the European authors who, in the early 1980s, argued that service quality perceptions are largely determined by two (rather than five) dimensions.