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This chapter examines the main methodological issues involved in the comprehension of the cost structure of the airport industry and suggests considerations for future airport cost analyses. Such understanding has become a crucial concern for policy makers, regional planners, and managers in order to deal with optimal market design (e.g., regulation and market configuration) and airport strategies (e.g., pricing, investments, and alliances). An in-depth analysis of the economics of cost functions is presented, together with a description of the relevant multi-output cost economies measures (average incremental costs, scale and scope economies, and cost complementarities). We also discuss the assumptions underlying estimates of total versus variable cost functions and the importance of estimating a sufficiently flexible functional form. Moreover, we provide a critical survey of the international empirical literature on the cost structure of the airport industry, which highlights how econometric estimates strongly depend on the sample choice and the empirical model considered. Indeed, while econometric studies on international samples based on long-run cost function estimates show that long-run scale economies are never exhausted, single country studies mostly estimate variable cost functions and find lower values for scale economies at median sample points that tend to decrease with size. We discuss why we believe that studies based on the estimation of short-run variable cost functions offer more reliable results, given the reasonable assumption of airport overcapitalization in the short run. We conclude our work by noting that underlying policy issues related to planning and regulation, as well as to the optimal market structure of the airport sector, need to take into account the role played by vertical relationships between airports and airlines.

This chapter explores the political economy of banking in Texas at the turn of the last century. The empirical work sheds light on why Texans voted to allow the chartering of banks by the state government. The evidence shows that county-level voting patterns for state-chartered banks were significantly related to business interests, consumer interests, agricultural activity, and the presence of existing national banks. The work also shows that the first counties to receive the new state banks were associated with higher agricultural activity, larger population size, and the presence of existing national banks. By examining the vote and the location of early entrants in state banking, this chapter contributes to the literature exploring the historical development of state-chartered banking and the dual-banking system in the US.

At the turn of the 20th-century railroad regulation was hotly debated in the United States. Railways were accused of abusing of their monopolistic position, in particular by discriminating rates. Public opinion’s pressure for tighter regulation led to the 1906 enactment of the Hepburn Act, which strengthened the powers of the Interstate Commerce Commission. American economists actively participated in the debate. While most of them sided with the pro-regulation camp, the best economic analysis came from those who used the logic of modern law and economics to demonstrate how most railroads’ practices, including rate discrimination, were simply rational, pro-efficiency behavior. However, as relatively unknown Chicago University economist Hugo R. Meyer would discover, proposing that logic in public events could at that time cost you your academic career.

This study aims to empirically examine the impact of the price structure of two-sided markets on transaction volume and market share (MS) in the context of the Korean credit card industry. The Korean credit card market differs from those in the United States (U.S.) or Europe in terms of transaction structure (i.e. a three-party system in Korea vs a four-party system in the U.S. or Europe) and government policy. In addition to the merchant discount rate and the cardholder annual membership fee rate, the authors included and analyzed exogenous variables to eliminate any endogeneity. Based on the analysis results, the authors found that credit card usage performance (i.e. transaction volume) increases with an increase in the relative price ratio (merchant discount rate ÷ cardholder membership fee rate) paid by merchants and cardholders, provided that the total price (merchant discount rate + cardholder membership fee rate) paid by merchants and cardholders remains constant. Therefore, this study is the first to confirm that the Korean credit card market operated as the theoretical mechanism of a two-sided market during the analysis period. This effect can only be observed in specific cases such as the launch of the so-called “Chief Executive Officer(CEO)-designed card.” When a new CEO takes office in a credit card company and launches a “CEO-designed card,” there is a significant increase in not only card usage performance but MS as well owing to the price structure changes caused by expanding the benefits that customers derive from card use.

This paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food companies in Australia (AU) and New Zealand (NZ). As such, positioning through credence attribute claims can be associated with product launch strategies, including brand-new products, expansion of product ranges, new packaging and relaunch, as a response to market demand.

Text analysis was used to investigate the descriptions of food claims using Structured Query Language, providing a word list of food claims and further filtered and categorised into groups of claims. Multinomial regression models were then employed to analyse the association between product launch strategies and food claims adopted by firms.

The results of this paper provide evidence that positioning via food claims play an important role in product launch strategies in both AU and NZ. Types of food claims matter differently to firms' product launch decisions in the two markets. The “green” and “ethical” attributes are found to be associated with new launches in NZ but not in AU. Claims that are seen as most important for consumers are more likely to be engendered for the more costly launch approach.

This study is amongst the first studies that addresses the role of positioning in product launch strategies of food companies. The results and findings provide insights into the different prevailing credence attributes from the firm side and help policymakers to regulate the delivery of information about credence attributes to consumers.

This study aims to understand New Zealand sheep farmers’ readiness toward sustainability transition by assessing their intentions of transition and adoption of sustainability tools, with information collection considered to mediate the intention–adoption relationship.

Based on the data collected from a survey of New Zealand sheep farmers in 2021, the empirical analysis was developed to investigate farmers’ perceptions of and attitudes toward readiness to move toward a sustainability transition. Structural equation modeling associated with principal component analysis was used to empirically test the theory of planned behavior constructs.

The results show that pressure from the public and the sheep industry, and the perceived controls of transition drive the intention of sustainability transition; farmers with higher intention of sustainability transition are found to be more likely to adopt sustainability tools. However, there is an attitude–behavior gap, wherein positive attitudes toward sustainability transition may not lead to a higher likelihood of adopting sustainability tools. There is no evidence of the mediating role of information collection on the intention–adoption relationship, while a positive effect was found in information collection on the adoption of sustainability tools.

The empirical evidence indicates that policymakers need to help increase the awareness of sustainable production and help farmers overcome barriers to achieving sustainable production by finding ways to turn intentions into adoption.

Being the first attempt to empirically assess farmers’ readiness toward sustainability transition, the study fills the gap of limited understanding of the link between sustainability transition intention and sustainable tools adoption in sustainability transition.

This paper aims to assess the topography of financial regulation, supervisory styles and performance of banking systems across the world.

The author gains insights by comparing regulatory and supervisory practices and their impact on banking system performance before and after the global crisis. The study illustrates the differences in regulation/supervision among crisis, non-crisis and BRICS countries. Even as capital ratios increased, bank governance and supervision regimes were strengthened, the private sector incentives to monitor banks deteriorated.

The results show that the crisis-countries had weaker regulatory and supervisory frameworks than those in emerging countries during the crisis period. BRICS countries as a distinct block have demonstrated uniqueness in their regulatory/supervisory styles that are similar neither to those in the crisis-countries nor to those in the non-crisis countries.

The originality of this study lies in its unique approach to assessing the bank regulation and supervision styles around the world and their impact on banking system profitability, as it uses a robust database. Further, this study provides not only a general assessment but also a comparative analysis of the BRICS and emerging economies. Regulatory agencies around the world would greatly benefit from systematic evidence on the relationship between bank performance and regulatory/supervisory systems.

This paper aims to examine the impact of deregulation on the European transport industry in the form of privatization, on the managerial efficiency of a panel of deregulated transport companies.

This research examines a data set of 25 deregulated transport companies from a sample of 12 EU nations from 1988 to 2015. Some studies have analyzed deregulation by using non-parametric models. However, only a limited number of studies focus on the impact of deregulation on the managerial efficiency. This study answers two questions: whether deregulation, in the form of privatization, in the transport sector has any effect on the managerial efficiency, on the profitability and on the investment decisions of the firm, and whether this premise is robust enough across the European transport industry. This study formulates a multivariate regression framework utilizing data from major privatized European transport companies. The final panel includes 25 companies, from 12 EU - Member States for the period 1988-2015, equaling 375 firm-year observations based on a rigorous selection methodology.

The study confirms that transport companies, post-privatization, are more efficient regarding operating efficiency and profitability. The authors find no evidence that deregulation improves investment efficiency.

The study addresses the regulators’ dilemma, whether to deregulate, by focusing on analyzing the improvement of the managerial efficiency.

This study contributes to the transport industry management literature in three ways. First, the authors update the literature of the economic theory of regulation with an empirical examination which covers the latest years across the EU Member States. Second, the authors introduce a comparison of the effects of deregulation on different components of the managerial efficiency, namely, investment, profitability and operating efficiency of the incumbents in the EU transport industry. Third, they examine deregulation by using two approaches: a traditional one where deregulation is a dummy variable assessing the overall effect on incumbents’ efficiency performance; and a novel approach where the Organisation for Economic Co-operation and Development’s deregulation index is used to measure the regulation intensity, accounting also for industry-wide impact assessment. This two-sided approach increases the robustness of the results.

This study aims to investigate the coordinated impact of regulations on the predicted probability of a banking crisis in Africa.

The study used the dynamic panel instrumental variable probit regression model of 52 African economies over the period 2006 to 2018.

The authors observe that banking crisis is persistent for few years but dissipates in the long run. The results show that board mechanism and ownership control are important in reducing the likelihood of banking crisis. The authors found a negative impact of regulatory capital and monetary policy on the predicted probability of a banking crisis while regulatory quality was not strong in reducing the likelihood of banking crisis. There was also evidence to support that regulatory capital and monetary policy augment the negative impact of board mechanism and ownership control on the predicted probability of a banking crisis.

The limitation of the study is that it did not explore all measures of regulatory framework and how they impact banking crisis. However, it has an advantage of using alternative measures of regulations in a banking crisis probability model. Therefore, future studies should include other macro-prudential regulations, regulatory environments and supervision and observe how they are coordinated to reduce possible crisis in a robust methodological framework.

The research has policy implications for monetary authorities and policymakers to set coordinated regulations through internal banking mechanisms that are relevant in sustaining banking system stability goals. Countries in Africa should strengthen their quality of regulation in such a way that it can play a strong and complementary role to a robust internal control mechanisms, so as to maintain stability in the banking system. In general, regulators and policymakers should design greater coordination of external and internal regulations through a single regulatory framework and a common resolution mechanism that make the banking system more robust in curbing possible crisis.

The policy implication of the study is to build banking confidence in the society.

This study analyses the interactions of different components of internal and external regulatory framework in helping to reduce the probability of a banking crisis in Africa.

This paper aims to examine the dynamic nexus between corporate governance (CG) and firm performance in hybrid model countries. It also investigates the effect of horizontal agency conflicts on CG adherence.

This research uses vector autoregression methods and dynamic panels to examine the cross-sectional and longitudinal association between CG and performance, using three CG adherence indexes of transparency, management and board governance. The data set includes annual market and firm performance data from a sample of 93 companies trading in the Mexican stock market for the period 2010–2016.

This study finds evidence of dynamic interdependence between CG and firm performance, as well as weak effects of CG adherence on firms’ performance. The adverse effect of increasing return on equity and return on assets (ROE-ROA) gaps on CG adherence, which results from agency conflicts and insider ownership, is likely behind the weak association between CG and firm performance.

The findings in this study provide evidence that hybrid systems weaken the nexus between CG and firm performance. The propensity to prefer banking and bond debt to issuing stocks, as indicated by a greater ROE-ROA gap, points to favorable provisions for majority shareholders, adverse normative environments for minority shareholders and a low level of compliance with CG measures, among other problems.