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1 – 10 of over 91000Richard E. Just and Gordon C. Rausser
The lens used by the courts and much of the antitrust literature on predatory selling and/or buying is based on partial equilibrium methodology. We demonstrate that such…
Abstract
The lens used by the courts and much of the antitrust literature on predatory selling and/or buying is based on partial equilibrium methodology. We demonstrate that such methodology is unreliable for assessments of predatory monopoly or monopsony conduct. In contrast to the typical two-stage dynamic analysis involving a predation period followed by a recoupment period, we advance a general equilibrium analysis that demonstrates the critical role of related industries and markets. Substitutability versus complementarity of both inputs and outputs is critical. With either monopolistic or monopsonistic market power (but not both), neither predatory overselling nor predatory overbuying is profitably sustainable. Two-stage predation/recoupment is profitable only with irreversibility in production and cost functions, unlike typical estimated forms from the production economic literature. However, when the market structure admits both monopolistic and monopsonistic behavior, predatory overbuying can be profitably sustainable while overselling cannot. Useful distinctions are drawn between contract versus non-contract markets for input markets.
One of the several claims that Seligman makes for Rooke is that he should be accorded priority in the discovery of the correct, that is Ricardian, doctrine of rent:there seems…
Abstract
One of the several claims that Seligman makes for Rooke is that he should be accorded priority in the discovery of the correct, that is Ricardian, doctrine of rent:there seems little doubt that the doctrine of rent was developed practically simultaneously by Malthus, West, Torrens and Rooke in 1814, but so far as the priority of actual publication is concerned, the above list should be reversed. And in the interests of historical accuracy, Rooke and Torrens must hereafter be accorded the position which they deserve. (Seligman, 1903, p. 512)1
Amit Sinha, William P. Millhiser and Yuanjie He
The field of supply chain management (SCM) evolves dramatically due to factors of globalization, innovation, sustainability, and technology. These changes raise challenges not…
Abstract
Purpose
The field of supply chain management (SCM) evolves dramatically due to factors of globalization, innovation, sustainability, and technology. These changes raise challenges not only to higher education institutions, but also to students, employing organizations, and third parties like SCM-related professional bodies. To understand the challenge, the purpose of this paper is to examine the gap between demand and supply of SCM-related knowledge areas, answer-related design questions, and make recommendations to close the gaps.
Design/methodology/approach
To compare the demand and supply of SCM-related knowledge areas, demand data is collected from a professional career website and supply data is gathered from operations management (OM) and SCM course syllabi from AACSB-accredited business schools in the USA. Cluster analysis identifies how supply and demand are matched on the data collected.
Findings
First, gaps exist between SCM talent requirements from industry and the knowledge/skill training by US business schools. This paper identifies matching, under-supplying, and over-supplying knowledge areas. Under-supply in emerging areas such as SCM information technology and certain logistics management topics are found. Some traditional OM topics are over-supplied due to out-of-date industry applications and should be revised to reflect the field’s transition from an OM to SCM view. Last, this paper makes recommendations to different stakeholders in this matching supply with demand process.
Originality/value
This study contributes to the literature in two ways. First, it provides an up-to-date understanding on demand and supply of SCM talent in USA. Second, it provides insights and recommendations not only to educators on curriculum design, but also to potential candidates interested in SCM careers, to companies’ job recruiters, and to professional organizations (such as APICS and Council of Supply Chain Management Professionals) to reduce the gaps between demand and supply.
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Gabriel Brondino and Andres Lazzarini
The present essay re-examines the scope of Sraffa’s critique of Marshall’s supply curves that the former developed in his 1925 and 1926 articles showing that neoclassical supply…
Abstract
The present essay re-examines the scope of Sraffa’s critique of Marshall’s supply curves that the former developed in his 1925 and 1926 articles showing that neoclassical supply curves derived from non-proportional returns are not robust both in the short and in the long run. After examining what a short-run and a long-run equilibrium means both for the original Sraffa’s articles and for Marshall’s pioneer contribution, the chapter discusses the common procedure in conventional economics to introduce the limitations to the growth of the firm. The argument of the chapter will be based on the 1920s articles as well as on the ‘Lectures on Advanced Theory of Value’ delivered in 1928–1931 by Sraffa at Cambridge University, now publicly available online by the Wren library, Trinity College, Cambridge. For short-run analysis, it must be assumed that the number of firms is fixed. This assumption entails serious problems with regards to the notions of competition and competitive behaviour. For long-run analysis, the sources of increasing costs are problems of management and control. However, this idea is untenable both on logical and empirical grounds. We argue that contemporary mainstream microeconomic treatment of costs and supply in the context of perfect competition still presents several problems. These problems, rather than being superficial, lie at the root of the supply and demand approach of value and distribution.
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The purpose of this paper is to re‐examine the structural origins of international crude oil price fluctuation.
Abstract
Purpose
The purpose of this paper is to re‐examine the structural origins of international crude oil price fluctuation.
Design/methodology/approach
The paper establishes a structural vector autoregression model based on the generalized supply and demand analysis of crude oil price fluctuation and performance the structural decomposition of price shocks with impulse response analysis of those factors.
Findings
It is found that four kinds of structural shocks derived from the generalized supply and demand analysis are the essential determinants of crude oil prices fluctuation. On one hand, similar to Kilian's results, the supply side shocks – both the exogenous geopolitical ones and other oil supply shocks have little influence. Whereas, the demand side shocks – both the aggregate demand shock and the oil market specific demand shock have prominent effects. On the other hand, with the expanded sample range, it is found that the dynamic characteristic of the impulse response of oil price to demand side factors is not only incompatible with the basic economic theory, but also clashes with Kilian's statement based upon his research. It is conjured that the incompatibility comes from the ignorance of the finer decomposition of demand side factors. To decompose those demand side factors further, the US dollar liquidity was added into the model. The results show that the impact of US dollar liquidity on the fluctuation of oil prices cannot be ignored. The argument that ascribes the soaring international crude oil price to China's economic growth lacks theoretical and empirical evidence.
Originality/value
The paper contributes marginally to the research on the structural origins of international crude oil price fluctuation and sheds light on the possibility of finer decomposition of demand side oil shocks.
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Peiyu Wang, Qian Zhang, Zhimin Li, Fang Wang and Ying Shi
The study aims to devise a comprehensive evaluation model (CEM) for evaluating spatial equity in the layout of elderly service facilities (ESFs) to address the inequity in the…
Abstract
Purpose
The study aims to devise a comprehensive evaluation model (CEM) for evaluating spatial equity in the layout of elderly service facilities (ESFs) to address the inequity in the layout of ESFs within city center communities characterized by limited land resources and a dense elderly population.
Design/methodology/approach
The CEM incorporates a suite of analytical tools, including accessibility assessment, Lorenz curve and Gini coefficient evaluations and spatial autocorrelation analysis. Utilizing this model, the study scrutinized the distributional equity of three distinct categories of ESFs in the city center of Xi’an and proposed targeted optimization strategies.
Findings
The findings reveal that (1) there are disparities in ESFs’ accessibility among different categories and communities, manifesting a distinct center (high) and periphery (low) distribution pattern; (2) there exists inequality in ESFs distribution, with nearly 50% of older adults accessing only 18% of elderly services, and these inequalities are more pronounced in urban areas with lower accessibility, and (3) approximately 14.7% of communities experience a supply-demand disequilibrium, with demand surpassing supply as a predominant issue in the ongoing development of ESFs.
Originality/value
The CEM formulated in this study offers policymakers, urban planners and service providers a scientific foundation and guidance for decision-making or policy amendment by promptly assessing and pinpointing areas of spatial inequity in ESFs and identifying deficiencies in their development.
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Rob Docters, Bert Schefers, Tracy Korman and Christine Durman
This paper lays out the uses of demand curves, both for profit optimization, strategy, tiering and list price setting. This tool is also useful in public policy, such as extending…
Abstract
Purpose
This paper lays out the uses of demand curves, both for profit optimization, strategy, tiering and list price setting. This tool is also useful in public policy, such as extending health‐care coverage. It describes how to build a demand curve, and draw useful conclusions.
Design/methodology/approach
This paper provides examples of actual demand curves, and how they have been used for new product development, and in out‐maneuvering competitors. Examples are drawn from a number of industries, such as telecom, information services, insurance and electronics, and show how supply and demand are not static, but are highly interactive.
Findings
Companies and legislators are not familiar with the demand curves, despite its long history of use in academia. As a result of unfamiliarity with this tool, companies often make costly mistakes in estimates of new product uptake and volumes. If instead of demand curves they rely on price elasticities, companies deprive their senior management of a tool that suggests strategic responses to competitive situations. Surprisingly, many companies have never actually developed a demand curve for their markets.
Originality/value
This article allows managers have not actually seen a real demand curve to see one, and understand what this tool could do for them. It gives examples of new product development and tiering to address multi‐price level markets. In addition, it suggests how public policy makers should focus on shaping supply and demand, rather than imposing floors or ceilings on prices for health‐care coverage. Price ceilings today are responsible for widespread gaps in health care coverage. Finally, the literature on demand curves fails to show how supply and demand are highly interactive.
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Scholarly knowledge of organizational founding in the nonprofit sector has grown not from macro-level analyses but rather from the aggregation of in-depth and focused studies of…
Abstract
Scholarly knowledge of organizational founding in the nonprofit sector has grown not from macro-level analyses but rather from the aggregation of in-depth and focused studies of particular geographical regions or service fields. Employing logistic regression techniques, this paper examines the formation of nonprofits in one key but overlooked site of the voluntary sector: workplace charity. Testing competing theories, the paper analyzes the effect of demand-side, supply-side, and community-level characteristics on the presence of rival federated fundraisers in the largest 123 MSAs in 2000. The results indicate that these nonprofit organizations are formed in large cities with a sizeable and stable nonprofit sector, regardless of ease of access to charitable contributions and the level of available funding.
Monika Csesko and Richard Reed
This paper aims to provide an invaluable insight into long‐term forecasting of demand for aged care facilities. This will ensure the provision of adequate supply by government…
Abstract
Purpose
This paper aims to provide an invaluable insight into long‐term forecasting of demand for aged care facilities. This will ensure the provision of adequate supply by government bodies, stakeholders and developers in order to meet the anticipated level of demand, without creating an over‐supply or an under‐supply scenario.
Design/methodology/approach
Using an innovative approach, different data sources were collectively used to forecast separate individual supply and demand levels, which were then examined together in order to measure the difference between the two variables between 2009‐2020. A case study approach was used for Victoria, Australia.
Findings
The paper finds that, although there is excess supply between 2009‐2010 and 2019‐2020, the period between 2010 and 2019 will experience an under‐supply period which cannot be easily rectified over the short term.
Research limitations/implications
The case study was limited to residential care facilities in Victoria, Australia, although some countries have substantially different age profiles and accommodation supply for older residents. Forecasts are based on information sources from various data suppliers and collectively analysed.
Practical implications
The results are also of direct interest to place managers and planning authorities who are charged with providing medium‐ and long‐term visions and plans for specific locations. This type of research is essential when planning for the eventual aging of the population, where the methodology can be replicated in different areas. Most importantly, this research approach provides a solid basis for decisions regarding the supply of residential aged care facilities as opposed to a simple estimate.
Originality/value
The study adopted a unique approach to analysing the individual supply and demand components for aged care facilities over the long term. This approach is able to accurately determine when there will be an under‐supply or over‐supply situation and thus provide the opportunity to address the difference before it occurs. This will allow informed decisions about planning aged care facilities in the future to be made as required.
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Syed Ali Naqi, Syed Jamil Hassan Kazmi and Jeong C. Seong
Natural gas makes up about 50 per cent of Pakistan's energy consumption, which is decreasing at an alarming pace, making Karachi – the largest city of Pakistan – one of the major…
Abstract
Purpose
Natural gas makes up about 50 per cent of Pakistan's energy consumption, which is decreasing at an alarming pace, making Karachi – the largest city of Pakistan – one of the major victims of natural gas shortfall. The purpose of this paper is to model natural gas demand and supply using geographic information systems.
Design/methodology/approach
Sui Southern Gas Company datasets were used to derive annual per capita gas usages and to analyze the capacity of gas supplies. Union Council is taken as a smallest and basic analytical administrative spatial unit for appraisal of badly affected, with insufficient, low and better gas supply regions.
Findings
Results show that the per capita demand for natural gas is higher in high class residential areas while supply is lowest for upper middle and lower middle class residential area populations. Only 19 per cent of the total residential areas are expected to be free from gas shortfalls. About 53 per cent of residential areas are facing the problem of low gas availability; and 3 per cent and 11 per cent areas are under stress of badly affected and insufficient gas supply, respectively.
Originality/value
This research shows an example of constructing a Geographic Information System (GIS)‐based gas demand and supply model that can be used for building strategic guidelines for top‐level planners, engineers and decision makers at the micro‐level. This is not a “deep” paper, but it works in identifying a problem and presenting a quantitative way forward. This paper will have significant impact both on society and academia, as this innovative technology and its implementation on gas utility has happened for the first time in Pakistan. Furthermore, in the international literature this has also been in infancy and will open new avenues of research, especially in developing countries. The work would certainly be applicable for other consumer‐based utilities such as electricity, telecommunication, sewerage and municipal water and they would all benefit from it substantially.
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