Empirical Industrial Organization

36 7a NAME OF MONITORING ORGANIZATION Naval Postgraduate School ADDRESS {City, State, and ZIP Code) fonterev. California 93943-5000 7b. ADDRESS (C/ty. State, and ZIP Code) * These aircraft (as later versions) still active in the forces. °Arbitrary ground attack speed: aircraft capable of Mach 2 performance.

Italy ranked last in terms of manufacturing productivity growth according to OECD estimates over the last decade, with a flat, if not declining, trend. In this work we investigate the underlying firm-level dynamics of enterprises on the basis of a database developed by the Italian Statistical Office (ISTAT) covering the period 1989-2004 and containing information on more than 100,000 firms. Over this period not only have the indicators of the central tendency of the distribution of labor productivity not significantly changed, but also the whole sectoral distributions have remained relatively stable over time, with their support at least not shrinking, or even possibly widening, over time. This is even more surprising if one takes into consideration the ''Euro'' shock that occurred during the period investigated. On the contrary, we observe that inter-decile differences in productivity have been increasing. Further, heterogeneous firms' characteristics (i.e. export activity and innovation) seem to have contributed to boosting such intra-industry differences. Given such wide heterogeneities we resort to quantile regressions to identify the impact of a set of regressors at different levels of the conditional distribution of labor productivity. One phenomenon that we observe is what we call a tendency toward ''neo-dualism'' involving the co-existence of a small group of dynamic firms with a bigger ensemble of much less technologically progressive ones.

The global crisis has called to further reflection on the role of multinationals in host economies during crisis. The evidence on this matter is scarce and no definite conclusions were achieved. Using panel data analysis, this paper examines the link between foreign ownership, firm employment and turnover growth over twenty years and during economic downturns in particular. We analyse the determinants of firm employment and turnover growth and investigate whether there are significant differences in both variables among domestic and foreign firms when controlling for firm and industry specificities. Additionally we assess if the foreignness effect alters during economic downturns. After controlling for several firm and industry characteristics, we find no significant differences between domestic and foreign firms in what concerns employment growth. However, our results suggest that foreign ownership may affect positively firms' sales turnover growth during recessions.

We analyse the rate of formation, the characteristics, and the performance of different types of new firms in Sweden over a decade. Comparisons with Denmark, Brazil, and the United States suggest that the environment for new firm formation in Sweden is not markedly different than elsewhere. In line with previous studies, spin-offs of incumbents perform better than other types of new firms, particularly if their parent firm continues to operate. A novel finding is that the larger the size of their parent, the greater is the rate of employment growth of spin-offs. This contrasts sharply with findings for firms with a single owner.

The paper provides a static analysis of multimarket competition trying to extend classical models of oligopolistic competition including a multimarket effect in firms' decision problem. After a short definition of what are multimarket oligopolies, we define a multimarket effect as a relation between cross market variables that can be internalised by firms. In case of interrelated costs this will be seen as a sort of externality linked to joint production economies, while in case of independent costs and demands it is modelled as an expected rival cross market reaction. In both cases it modifies competitors'optimal behaviour.

The paper provides a static a nalysis of multimarket competition trying to extend classical models of oligopolistic competition including a multimarket effect in firms' decision problem. After a short definition of what are multimarket oligopolies, we define a multimarket effect as a relation between cross market variables that can be internalised by firms. In case of interrelated costs this will

This dissertation is composed of two essays, each covering an important topic related to consumer choice dynamics and their implications on the design of firm strategies: (1) consumer learning and their implications on the use and design of introductory coupons that apply to the first-time purchases of a new product to enhance its profits; (2) distinguishing between different sources of consumer choice dynamics in a non-tiered loyalty program and its implications on the design of a more profitable program. In Chapter 1, I propose that in the retailing business, when consumer behavior exhibits individually heterogeneous choice dynamics, coupons are a useful tool to implement intertemporal price discrimination and targeted pricing. I document a one-time own-product passive learning process in consumers' purchasing behavior in the Boston Greek Yogurt market, where four new products entered the market in the Summer of 2012. Using a sample of 428 consumers who purchased at least one Greek Yogurt product during 2012 and 2013, I develop and estimate a structural model of consumer demand for Greek Yogurt products that captures three primary features that are specific to consumers' purchasing behavior in this market: (1) a one-time own-product passive learning process, (2) the purchase of varieties, and (3) the purchase of quantities. By estimating the model, I quantify the individual heterogeneity in (1) the price sensitivity, (2) the demand changes driven by consumer learning, and (3) the timeline of learning about different products. The documented learning process and the individual heterogeneity in the above dimensions in this multi-new-product marketing environment motivate (1) the use of a one-time coupon that is applicable for the first-time purchase of a new product to enhance its profits by leveraging the learning-driven changes in consumer demand, (2) the use of a coupon expiration date to filter out any "late", unprofitable coupon redemption, and (3) coupon customization to target different consumer with different designs. First and foremost, I hope to express my sincerest gratitude and appreciation to Professor Aviv Nevo, my supervisor, for his constant care, guidance, mentorship, and time during all stages of my Ph.D. study. I want to thank him for helping me stay on track during the processes from writing my thirdyear paper to my job market paper, my job search, and this complete thesis. I also hope to thank him for teaching me about research, writing, and presentation, which are among the most valuable lessons for a Ph.D. student. I hope to express my sincerest appreciation to Professor Eric T. Bradlow, for his comprehensive feedback on my research, and his constant inspiration for my pursuit of Marketing. I have been learning many valuable things from Professor Bradlow, research-wise, work-wise, and in many other aspects, from the very first day we met. I hope to express my sincerest appreciation to Professor Katja Seim for her constant support and enormous encouragement. I benefited a great deal from her advice on my papers and job interviews. Also, I want to thank Professor Nevo, Professor Bradlow, and Professor Seim for always being there for me, and for believing in me. I am incredibly fortunate to have them as my advisors during my Ph.D. I want to thank all my teachers at Penn, and every staff member who has helped me during my Ph.D. I also want to thank the participating faculty members and fellow graduate students in Empirical Micro Lunch Seminars, IO seminars, and my job-search mock interviews from the Economics Department and the Marketing Department at Penn. Their feedback helped me improve my research and presentation. I would also like to thank my friends for their emotional support during this journey. ii I would like to acknowledge the following data sources and express my appreciation to my data providers for their generosity: In Chapter 1, the Nielsen Homescan Data from the Kilts Center at the University of Chicago's Booth Business School is provided by Wharton Research Computing and sponsored by Professor Aviv Nevo. In Chapter 2, the data on loyalty programs is provided by the Wharton Customer Analytics (WCA). The datasets have been an essential part of my research, and my dissertation would not have been made possible without their support. Finally, I want to extend my deep, sincere gratitude to my parents, for their endless and unparalleled love, ever since I was born.

The purpose of this paper is to explore the models’ life cycle in automobile demand, exploiting a newly-constructed data set. In particular, we analyze the characteristics of the cycle of models by means of non-parametric regressions of model shares on model ages (or time of permanence in the market). Then we test for the presence of price effects of the cycle, using techniques of the discrete-choice approach to demand estimation in differentiated product markets. Results show that own-price elasticities vary with age. Elasticities decrease after the introduction of the model and begin to increase when it has been marketed for three years.

We develop a conceptual model of entrepreneurial exit which includes exit through liquidation and firm sale for both firms in financial distress and firms performing well. This represents four distinct exit routes. In developing the model, we complement the prevailing theoretical framework of exit as a utility-maximizing problem among entrepreneurs with prospect theory and its recent applications in liquidation of investment decisions. We empirically test the model using two Swedish databases which follow 1,735 new ventures and their founders over eight years. We find that entrepreneurs exit from both firms in financial distress and firms performing well. In addition, commonly examined human capital factors (entrepreneurial experience, age, education) and failure-avoidance strategies (outside job, reinvestment) differ substantially across the four exit routes, explaining some of the discrepancies in earlier studies.

The Fourth Industrial Revolution (4IR) rapidly advanced at the beginning of the 21st century. Leaders within organisations need to adjust their visions, plans, organisational structures, and management with regard to the demands, challenges and opportunities of this development. This is in particular the case in higher educational institutions (HEIs), which have to adjust to the rapid changes and new demands of skills of university graduates. Leaders in HEIs must therefore be aware of the related challenges and opportunities and might have to adjust the learning and teaching environment, the skills development of students, graduates, and faculty, as well as the technological requirements to create advanced skill sets. This article is based on a qualitative research study which was conducted at a university in South Africa. In-depth, semi-structured interviews were used to explore the views of higher-education leaders at the selected university. Data were analysed through thematic an...

The 2008 crisis has called to further investigate the impact of global engagement on firm performance. We focus on the link between Italian firms' involvement in international activities and their heterogenous performance in terms of survival in the context of the recent crisis. This topic has been investigated in the literature comparing foreign and domestic firms, neglecting the behaviour of

In many economic environments, producers need to deal with intermediaries to supply their products on markets. Examples include grocery markets in which food manufacturers sell their products to retailers who have direct access to final consumers; pharmaceutical industries where manufacturers distribute their drugs on markets through drugstores; multichannel television industries where cable channels sell their programs to multichannel video program distributors who then charge fees to consumers; private healthcare sectors in which medical providers (e.g., hospitals) deal with insurers to have access to sick patients. One particular feature of such industries is that they are often characterized by a bilateral oligopolistic structure with a small number of firms operating on both sides of the market, resulting in complex vertical relationships. Contracting externalities are indeed intrinsic to such environments because the value generated by a transaction and shared between a manufa...

Secondo un'opinione assai diffusa, nel periodo della crisi economica di fine anni duemila si sarebbero notevolmente acuiti, nell'industria manifatturiera italiana, i processi di selezione di impresa già innescati dalla forte concorrenza internazionale degli anni recenti. Ciò ...

Blackburn e Neumark (1992) e Herrnstein e Murray (1994) sostengono che alcuni fattori non osservabili come il QI e il contesto sociale possono essere determinanti del livello salariale. Per tale motivo, le ricerche che hanno come obiettivo principale prevedere il livello dei salari degli individui possono incorrere in un problema di variabili omesse, che potrebbe creare un problema di distorsione nei parametri del modello violando l'ipotesi di esogeneità degli errori (,) ≠ 0. Questo potrebbe essere il caso della relazione tra il livello educativo e il QI. Il suddetto problema potrebbe essere risolto con un modello di dati panel, in quanto assumeremmo che il QI resti invariato nel tempo; tuttavia, non è sempre possibile applicare questa tecnica. Pertanto, il presente documento propone l'inclusione dell'istruzione del padre e della madre come variabile strumentale per eliminare il possibile problema di variabili omesse.

The present work examines the effects of parameters of the input distribution on the average time complexity of the singleton sort algorithm.. Previous work on this field has shown that for certain algorithms such as sorting, the parameters of the input distribution singularly as well as interactively are important factors, besides the size of the input which motivated us to study the parameterized complexity of the singleton sort algorithm.

This article provides an assessment of the causal effect of customer relationship management (CRM) applications on one-to-one marketing effectiveness. We use a potential outcomes based propensity score approach to assess this causal effect. We find that firms using CRM systems have greater levels of one-to-one marketing effectiveness. We discuss the strengths and challenges of using the propensity score approach to design and execute CRM related observational studies. We also discuss the applicability of the framework in this paper to study typical causal questions in business and electronic commerce research at the firm, individual and economy levels, and to clarify the assumptions that researchers must make to infer causality from observational data.

The article explains why regressions of price on HHI should not be used in merger review. Both price and HHI are equilibrium outcomes determined by demand, supply, and the factors that drive them. Thus, a regression of price on the HHI does not recover a causal effect that could inform the likely competitive effects of a merger. Nonetheless, economic theory is consistent with the legal presumption that a merger is likely to have adverse competitive effects if it occurs in a concentrated market and makes that market more concentrated.

Using data from Taiwanese manufacturing firms for the 2000-2015 period, the results of the system-generalized method of moments revealed the direction of causality from a firm's innovative activities to firm profitability. This study also revealed that the profitability of innovative firms surpassed that of noninnovative firms by employing propensity score matching. We further observed a short-term profit-enhancing effect of a firm obtaining a patent after controlling for firm heterogeneity and the endogeneity problem. Our results indicate that firms that invested in research and development successfully obtained patents, and the protection granted by government-issued patents improved their profitability. These findings have strong policy-related implications; innovation policymakers in the government should ensure a favourable industrial environment that focuses on giving firms incentives to improve performance.

Airlines wanting to cooperatively set prices for their international air travel service must apply to the relevant authorities for antitrust immunity (ATI). Whether consumers, on net, benefit from a grant of ATI to partner airlines has caused much public debate. This paper investigates the impact of granting ATI to oneworld alliance members on their price, markup, and various measures of cost. The evidence suggests that implementation of the oneworld alliance without ATI did not have a statistically significant impact on the markup of products offered by the members, and there is no evidence that the subsequent grant of ATI to various members resulted in higher markups on their products. We find evidence suggesting that the grant of ATI facilitated a decrease in partner carriers' marginal and fixed costs. Furthermore, member carriers' price did not increase (decreased) in markets where their services do (do not) overlap, implying that consumers, on net, benefit from the grant of ATI in terms of price changes.

This paper addresses the following two questions: (i) Is there any evidence that firms, like human beings, prefer to partner with alike? (ii) Is there any relationship between the ex ante technological and product relatedness of merging parties and the postmerger performances? Using data of patent holdings and product portfolios of big pharmaceutical companies, I find that (i) merger deals are more likely to be signed between firms with related technologies and drug portfolios, and (ii) product relatedness and technology relatedness are positively and negatively correlated with postmerger performances, respectively. The analysis suggests that the negative effect of technology relatedness might be driven by a large human capital depreciation following consolidations. The results have important implications for competition policy, which are discussed in the concluding section.

The article explains why regressions of price on HHI should not be used in merger review. Both price and HHI are equilibrium outcomes determined by demand, supply, and the factors that drive them. Thus, a regression of price on the HHI does not recover a causal effect that could inform the likely competitive effects of a merger. Nonetheless, economic theory is consistent with the legal presumption that a merger is likely to have adverse competitive effects if it occurs in a concentrated market and makes that market more concentrated.

In this paper, we present an application of the estimation of a Spatial Covariance Function in determining the relevant geographic market for a merger. We applied this methodology on the case of a proposed marger between two competing supermarket chains in Brazil. During this application, we rst indicate the shortcomings of the analysis carried out by the Brazilian Antitrust System on its evaluation of the merger. This analysis decreed the geographic dimension of the relevant market to be separated on each of the municipalities on the shore of the Sao Paulo state. Our results, using the estimated spatial covariance function using data on 22 products in 43 supermarkets, indicate a single geographic market for all cities. Resumo: Neste artigo, apresentamos uma aplicação de estimativa de uma Função de Covariância Espacial para a determinação do mercado relevante geográco para uma fusão. Nós aplicamos esta metodologia para uma fusão proposta entre duas cadeias de supermercados no Brasil. Ao longo desta análise, nós inicialmente indicamos as limitações da análise realizada pelo Sistema Brasileiro de Defesa da Concorrência durante a sua avaliação da fusão, que indicava que a dimensão geográca do mercado se limitava a cada um dos municípios no litoral sul do Estado de São Paulo. Os nossos resultados, obtidos a partir da função de covariância espacial e utilizando dados de 22 produtos em 43 supermercados, indicam a existência de um único mercado relevante abrangendo todas as cidades.

Airlines wanting to cooperatively set prices for their international air travel service must apply to the relevant authorities for antitrust immunity (ATI). Whether consumers, on net, benefit from a grant of ATI to partner airlines has caused much public debate. This paper investigates the impact of granting ATI to oneworld alliance members on their price, markup, and various measures of cost. The evidence suggests that implementation of the oneworld alliance without ATI did not have a statistically significant impact on the markup of products offered by the members, and there is no evidence that the subsequent grant of ATI to various members resulted in higher markups on their products. We find evidence suggesting that the grant of ATI facilitated a decrease in partner carriers' marginal and fixed costs. Furthermore, member carriers' price did not increase (decreased) in markets where their services do (do not) overlap, implying that consumers, on net, benefit from the grant of ATI in terms of price changes.

Purpose-To provide students and academia with an opportunity to gain an understanding of recent trends and issues regarding the application service providers (ASP) market. Design/methodology/approach-A range of recently published (1999-2003) works, which provide practical issues, is reviewed to explore the existing pricing models, selecting an ASP and risk/rewards associated with ASPs. Findings-Provides guidance to businesses in selecting an ASP in terms of key questions to be asked and discusses the importance of selecting reliable ASPs. It also recognizes key areas academia should emphasize in teaching students outsourcing of IT. Research limitations/implications-It is not an extensive study of the issues and trends of ASPs. The paper does not review in detail the impact of outsourcing on organizational participants, which perhaps limits its usefulness in a complex business world. Practical implications-A very useful source of information for businesses making outsourcing decisions. The paper provides impartial advice for students and academia and for those who want to conduct research on outsourcing evaluation. Originality/value-This paper provides important insights on recent trends and issues of ASPs, especially in evaluating the performance of ASPs.

PurposeTo provide students and academia with an opportunity to gain an understanding of recent trends and issues regarding the application service providers (ASP) market.Design/methodology/approachA range of recently published (1999‐2003) works, which provide practical issues, is reviewed to explore the existing pricing models, selecting an ASP and risk/rewards associated with ASPs.FindingsProvides guidance to businesses in selecting an ASP in terms of key questions to be asked and discusses the importance of selecting reliable ASPs. It also recognizes key areas academia should emphasize in teaching students outsourcing of IT.Research limitations/implicationsIt is not an extensive study of the issues and trends of ASPs. The paper does not review in detail the impact of outsourcing on organizational participants, which perhaps limits its usefulness in a complex business world.Practical implicationsA very useful source of information for businesses making outsourcing decisions. The pa...

The public hearing on the seventh round of Brazilian airport concessions gave rise to debates on the multi-airport system and its coordinated modelling. Considering that the airport sector is an important source of both passenger and cargo traffic in a country the size of a continent such as Brazil, this article reviews the evolution of Brazilian airport concessions and outlines their perspectives and opportunities in Brazilian multi-airport systems, particularly the Rio de Janeiro multi-airport system.

This research presents, more than words, the Portuguese labor market reality in numbers and predicates that the market must engage in socially responsible behavior with regard to different organizational contexts. Firms, public entities and other organizations do not operate without workers. Additionally, the labor market is associated with greater demands from individuals seeking more efficiency and adequate measures to improve resource mobilization and to target problematic challenges, such as education, training and qualification, fiscal, industry and wage policies, as well as the social protection of the population. Indeed, the Portuguese government has adopted a proactive approach regarding its labor policy, specifically many new laws and changes related to the labor market have been approved, as a result of the European Union impositions. But, as Portugal's experience shows, these constant changes should be prevented, because each of them generates a new challenge with positive effects aiming to improve the economic, social and political contexts. Furthermore, since work is often a result of voluntary initiatives undertaken by individuals, the interventions undertaken by policymakers that promote social welfare and poverty eradication for a large majority of the population, can result in a disincentive for socially responsible behavior that demands certain values, ethics and behaviors from individuals, firms in particular, and the society, in general.

This paper takes a new look at the e¤ects of mergers on innovation by analysing the relationship between ex-ante technological (and product) relatedness of acquirers and targets and post-merger performances. The analysis is conducted using data on consolidations in the pharmaceutical industry for the period 1988-2004. Empirical results show that merger deals are more likely to be signed between …rms with related technologies and drug portfolio. I …nd that merged companies have on average, worst performances than the group of non-merging …rms and that, contrary to what may be the common wisdom, higher levels of technological relatedness are associated with poorer performances. Finally, consolidations between large pharmaceutical companies seem to have a detrimental impact on the incentives of competitors to undertake research in those therapeutic areas where both acquirer and target are active players.

The aims of this paper are to study the e¤ects of mergers on the R&D activity of consolidated …rms and to explore the relationship between ex-ante relatedness of merging parties and their ex-post performances. The analysis is conducted using data of the pharmaceutical industry for the period 1988-2004. The empirical results suggest that merged companies have on average, worst performances than the group of non-merging …rms. This result is con…rmed when I account for the endogeneous formation of mergers using the propensity score method and when I control for technological relatedness in selecting the control group. Finally, I …nd that higher levels of technological relatedness are not associated with better R&D outcomes.

The purpose of this article is to focus on the role of the legal structure of ventures for the event of the entrepreneurial exit. Specifically, this study is to reveal the different effects of incorporated and non-incorporated legal structures of ventures on diverse exit routes. Using the Kauffman Firm Survey, this study investigated the relationship between the legal structure of ventures and their exit routes with a sample of 901 single-founder start-ups that were founded in 2004 and exited during 2005 to 2011 period. The finding of this study confirmed that ventures with an incorporated legal structure were less likely to exit by sale than ventures with a non-incorporated legal structure. While little research has considered the legal structure of ventures as a predictor of different exit routes, this study empirically suggests the importance of considering the forms of the legal status of ventures in studying entrepreneurial exit routes.

The paper explored whether Education 4.0 is a sufficient innovative, and disruptive educational trend to promote sustainable open education for higher education institutions (HEIs). To investigate whether this is the case, the paper reviewed published journal articles that provide real-world, empirical applications of Education 4.0 in the higher education (HE) sector that are intended to promote and realize the United Nations' (UN) sustainable development goals (SDGs). In particular, the paper focused on aspects of SDGs related to education (or to sustainable open education), and which had relevance to the HE sector. Three of the findings of this review study are worth mentioning. First, real-world Education 4.0 is confined to certain countries, and is more concentrated to a few countries and to a few HEIs. Second, ten sets of Education 4.0 technologies were classified as disruptive, scalable, and sustainable, and as holding the prospect to promote sustainable open higher education in accord with the UN's SDGs. Thirdly, most of the soft-skill affordances cited (especially the twenty-first century skills cited), lend themselves well as stylized facts as they predate Education 4.0 and are, thus, not exclusive to it.

Exit is an important part of the entrepreneurial lifecycle. In contrast to numerous previous studies on entry, however, little attention has been paid to entrepreneurial exit, and much less on exit modes thus far. Using a recent original survey data on small business owners in New Zealand, where a large majority of them prefer selling their firms when they exit, we empirically investigate the determinants of intended entrepreneurial exit modes: selling out, succession, or closure. Estimation results of multinomial logit analysis suggest that the intention to sell the business is significantly affected by the size and performance of the firm, the involvement of family and how the owner entered the business. Moreover, we find that the intention to liquidate the business is significantly affected by the size and performance of the firm and partly by family involvement in the business.

El derecho de la competencia desempeña un papel fundamental en la promoción de mercados eficientes maximizando el excedente de los consumidores. En este sentido, el análisis económico se ha convertido en una herramienta crucial para evaluar la conducta de las empresas y los posibles efectos anticompetitivos de sus acciones, tanto en los mercados como en el bienestar del consumidor. Este ensayo examinará la importancia del análisis económico en el derecho de la competencia, destacando su relevancia en la detección y evaluación de prácticas anticompetitivas, así como en la toma de decisiones en materia de políticas y regulaciones.

El presente documento utiliza técnicas de simulación para intentar replicar el comportamiento del mercado, bajo diversas condiciones asociadas a su estructura competitiva y la posible existencia de  barreras de entrada, con el objetivo de asociar dichas simulaciones con resultados teóricos y empíricos identificados en la literatura.
Los resultados indican, que la dinámica individual de cada empresa tiende a generar diferencias históricas en el nivel de concentración de los mercados, convergiendo usualmente a ganar consolidación a través del tiempo. No obstante, en la medida en que aumentan las probabilidades de entrada, los mercados tienden a estar menos
concentrados, especialmente cuando no existe una empresa con alto nivel de participación. Estando este efecto sobre la competencia, condicionado a la persistencia en el nivel de participación de las empresas líderes, pues se identifica que el efecto de mayor probabilidad de entrada sobre el nivel de concentración de los mercados es menor en aquellos donde la empresa líder tiene mayor persistencia en su participación, así como en los mercados donde existe más probabilidad de salida.

We investigate for the individual and relative accuracy of two major market power tests: the Herfindahl Hirschman Index (HHI), and the merger simulation model of unilateral effects. We propose a methodology to compare the predictive and screening power of both tests by implementing them in a hypothetical economy. We find that when a structural econometric approach is missed (substantive test) the concentration approach (dominance test) is biased upwards. We also find that the substantive test is influenced by the market size or more precisely the market size of the outside good. In particular, when it is large, a decision based on the HHI test would have nothing to do with a decision based on the unilateral effects test. Still, in the overall, the substantive test performs better in capturing the true situation of the market compared to the dominance test of concentration.

The literature, aimed at understanding the income-price elasticity of air passenger demand, bases its analysis on airport movement. The diversity of studies regarding the casualty between air transportation and economic growth are examples. Some studies covering this link, estimate the income-price relationship with the demand considering international traffic. Considering a domestic setting, where this traffic is significant in Brazil, studies related to remote regions are scarce, and the existing ones focus on governmental policies and subsidies. In addition, empirical studies on the theme consenter themselves in developed regions, such as Europe, North America, and Australia. For Brazil, where we find the Amazon region, there is no empirical research. This paper analyses the price-income elasticity of the demand regarding domestic passengers in air links from remote cities of the Brazilian Amazon. This study uses panel data regression analysis method on a database of domestic scheduled flights of Brazil´s National Civil Aviation Agency. The results show that air passengers involving remote region flights present a lower sensitivity regarding local income and an airline´s price variations than those in flights among capitals. The higher difference is in the income elasticity of the remote city of origin, which is lower than that of the air traffic among capitals.

Over the centuries, man has tried to capture what he sees, either by scratching on cave walls with stone equipments, or by flicking out his Camera or iPhone. Technology has made photography so drastically popular thanks to ease in consuming this technology that anyone with urge to capture the moment can do it within the blink of an eye. Consumer electronics are basically made use of in communication, entertainment and office efficiency. The purpose of the research was to study the behavior of customers who purchased Digital Cameras in Satara. The primary objective of this study was to find the attitude on buying behavior of Digital Cameras. Hence, the researcher attempted to explore buying behavior of Individuals, taking into cognizance impact of demographic factors like age, sex, occupation, education and monthly income. Descriptive research design was used for the study and data was collected using inferential approach. Convenience sampling method had been employed. The study was based on the sample size of 100 respondents. Chi-square statistics and cross tabulation was used for analysis. The researcher prioritized the preference towards choosing their Digital Camera and the reasons for changing their Digital Camera by analyzing the data acquired through the schedule. Study concluded that educational qualification had an impact while selecting the camera brand while rest demographic factors showed no significant impact.

In this paper authors examine the effects of ownership status and exporting activity on the likelihood of survival for firms operating in the Italian manufacturing during the recent economic crisis. In particular, they aim to answer the following two main questions: What is the direct impact of being an exporter or a multinational enterprise (both domestic and foreign) on the likelihood of Italian firm survival? Do globally engaged firms react to the severity of the economic crisis differently from national-non exporter firms? Using an original database for the period 2002-2010 and estimating a conditional Probit model based on a wide range of relevant variables, we find strong evidence that during the recent global crisis exporting firms exhibit lower exiting rates than non exporting ones, while domestic multinationals have higher exit risks than those of domestic firms. Also, affiliates of foreign firms do not behave differently from national firms.

This article investigates if reforms of financial markets in Costa Rica have reduced the concentration of the financial industry and the interest-rate spread, two desirable outcomes of financial reforms. Our investigation shows that the concentration of the financial industry, measured by the Herfindhal-Hirschman index, fell notably after the conclusion of the reforms, suggesting an Management Review: An International Journal, 14(2): 71-90 (December 31, 2019) 72 increased competition among financial institutions. Our research, however, does not support the view that the fall in concentration led to a reduction in the interest-rate spread. We provide explanations for the results and suggest avenues for future research.

Any opinions expressed here are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to enco...

The aim of the present paper is to assess the effect of competition on innovation (patent applications) and on productivity (Total Factor Productivity and Labour Productivity), using data from 654 Portuguese firms, according to 208 NACE 4-digits sectors, and over the period 2007 to 2015. For this purpose, two different methodological approaches were used, a Poisson regression model for the patent function and a log-log fixed effect model for the productivity function. The results reveal that, on average, competition has a negative, U-shaped form effect on innovation in the short term, and a positive effect in the medium-long term. Nevertheless, the model focusing only on manufacturing sectors shows some differences from the model considering all economic activities, namely a linear positive effect of competition on innovation. Concerning the effect of competition on productivity, a positive effect on Total Factor Productivity emerged from the analysis, while for labour productivity ...

Antitrust enforcement agencies and courts use net effect on price as a touchstone for the legality of mergers. This paper derives a simple condition for implementing that standard when industry equilibrium is static Nash in quantities (Cournot), and that condition is robust to different specifications of demand and cost.

We analyze the bias from predicting merger effects using structural models of price competition when firms actually compete using both price and promotion. We extend the standard merger simulation framework to allow for competition over both price and promotion and ask what happens if we ignore promotional competition. This model is applied to the super-premium ice cream industry, where a merger between Nestlé and Dreyer's was challenged by the Federal Trade Commission. We find that ignoring promotional competition significantly biases the predicted price effects of a merger to monopoly (5% instead of 12%). About three-fourths of the difference can be attributed to estimation bias (estimated demand is too elastic), with the remainder due to extrapolation bias from assuming post-merger promotional activity stays constant (instead it declines by 31%).

The Fourth Industrial Revolution (4IR) rapidly advanced at the beginning of the 21st century. Leaders within organisations need to adjust their visions, plans, organisational structures, and management with regard to the demands, challenges and opportunities of this development. This is in particular the case in higher educational institutions (HEIs), which have to adjust to the rapid changes and new demands of skills of university graduates. Leaders in HEIs must therefore be aware of the related challenges and opportunities and might have to adjust the learning and teaching environment, the skills development of students, graduates, and faculty, as well as the technological requirements to create advanced skill sets. This article is based on a qualitative research study which was conducted at a university in South Africa. In-depth, semi-structured interviews were used to explore the views of higher-education leaders at the selected university. Data were analysed through thematic analysis. It was found that leaders in HEIs need to be aware of their leadership and preferences in times of transition toward a more technologised learning environment, as well as the needs, demands, challenges and opportunities of the new workplaces, and new skill sets needed in the 4IR. The researchers made some recommendations.

We are a group of economists with extensive experience working on antitrust issues, including horizontal mergers. We applaud the Federal Trade Commission and the Department of Justice for inviting comments from the public on the proposed Horizontal Merger Guidelines (HMGs). The proposed HMGs represent a substantial advance over the existing guidelines by better explaining the methodologies actually employed at the Department of Justice and Federal Trade Commission in their evaluations of mergers. We ...

A code share agreement can be defined as more than one airline using the same plane for different flight numbers. It has been in use for some time by airlines all over the world. The practice has become ever more important as it has been used by large alliances between airlines (Star Alliance, Sky One, etc). Although it may have some advantages it is prejudicial to the competition between carriers. In this work an empirical study is presented covering the main code share agreement used in Brazil. Its consequences both for the companies but mainly for passengers are studied here. The case study for this work is the code share agreement between VARIG and TAM for most of their domestic flights for quite some time. Data for the study were collected at Rio de Janeiro international airport. The assembled data show how passengers can be misled. Airborne traffic data during and after termination of the agreement are also shown.

This paper discusses the scholarly work of Arnold C. Cooper. He was an influential pioneer in the study of entrepreneurship, strategic management, and technology management, and his work provided an important foundation for subsequent development in those fields. Many of his contributions are a result of methodological approaches to gathering data, enabling him to draw insights from systematic empiricism of phenomena. Many of his most influential works are discussed and linked to subsequent work, including work emanating from this journal. Future research opportunities tied to his work are also elaborated.

The Spanish economy was the most hit by the Great Recession. It suffered a greater decrease in the gross domestic product (GDP) (affecting especially internal demand). However, it suffered a greater increase in exports (the so-called Spanish “miracle”). Particularly, Spanish SMEs incorporation into exports has been spectacular since 2008. Further, this has coincided with a huge increase in unemployment. Therefore, our main objective is to investigate the moderating role of exports in job destruction associated with recessive contexts of domestic demand using Spanish manufacturing SMEs as a case study. We obtain for SMEs that export participation helps compensate for the decrease in the number of workers generated by a (domestic) downturn, also increasing their survival. Otherwise, SMEs’ survival is negatively affected by financial constraints, production costs, and a recessive demand. This compensatory effect of exports on employment works in favor of permanent workers, meaning that...