Political culture and monopoly price determination

In this paper we study the endogenous determination of monopoly price. Our proposed game of endogenous monopoly-price setting extends the literature on monopoly-price, monopoly rent-seeking contests and monopoly rent-seeking rent-avoidance contests by (i) determining the monopoly price such that it maximizes a composite utility function that depends on two components: expected social welfare and lobbying efforts. The welfare component has a positive or no effect on the utility while the lobbying efforts have a positive, negative or no effect on the utility (ii) introducing the political culture of the government and clarifying its role in the endogenous determination of monopoly price. In the proposed model the single parameter representing political culture is the weight assigned to the enhancement of social welfare. Our main concern is with the study of the relationship between this parameter and the proposed monopoly price and, in turn, the rent-seeking rent-avoidance efforts of the potential monopoly and the consumers and their aggregate expected benefit. We are grateful to the referees for their constructive and helpful comments.     

Oligopolization in collective rent-seeking

In this paper we discuss the issue of when oligopolization in collective rent-seeking occurs, that is, when some groups retire from rent-seeking. A complete characterization of the pure-strategy Nash equilibrium in a collective rent-seeking game among m (≥2) heterogeneous groups is derived. The conditions of oligopolization are derived by using this result and related to the works of Nitzan [9, 10] and Hillman and Riley [3]. Also, the subgame perfect equilibrium of a simple two-stage collective rent-seeking game (Lee [7]) is fully characterized. In this game, it is confirmed that no group retires from the contest in the second stage and oligopolization never occurs. An example of the two-stage collective rent-seeking game with monitoring costs is devised to show the possibilities of oligopolization. Received: 21 September 1999/Accepted: 27 March 2001     

UNION POWER,COLLECTIVE BARGAINING,AND OPTIMAL MONETARY POLICY

We study Ramsey policies and optimal monetary policy rules in a dynamic New Keynesian model with unionized labor markets. Collective wage bargaining and unions' monopoly power amplify inefficient employment fluctuations. The optimal monetary policy must trade off between stabilizing inflation and reducing inefficient unemployment fluctuations induced by unions' monopoly power. In this context the monetary authority uses inflation as a tax on union rents and as a mean for indirect redistribution. Results are robust to the introduction of imperfect insurance on income shocks. The optimal monetary policy rule targets unemployment alongside inflation. (JEL E0, E4, E5, E6)     

POWER AND SOLIDARITY IN “INTERRUPTION”: A CRITIQUE OF THE SANTA BARBARA SCHOOL CONCEPTION AND ITS APPLICATION BY ORCUTT AND HARVEY (1985)

The simplistic conception of interruption employed in conversation analysis and survey research reports of male monopoly must be elaborated to include other social meanings in addition to violation of a speaker's rights if it is to account for conversational order or deviance. With no reason to suppose that the narrow, technical sense of interruption and the implacably negative evaluation conversation analysts make about interruption are generally shared throughout the rest of American culture, answers to questions in surveys about interruption cannot be assumed to refer to the category termed interruption in conversation analysis. Dissensus about coding instances of the category are reported and other situated meanings of interruption suggested.     

LEFT FOR DEAD: ANTI‐COMPETITIVE BEHAVIOR IN ORBITAL SPACE

In a dynamic investment framework with depreciation, we show incumbent satellite operators have incentives to “warehouse” a fraction of their assigned spectrum and orbital slots, keeping nonoperational assets in place, which reduces output, increases prices, and diminishes social welfare. Exploring three distinct market structures, we model firms' incentives to warehouse, and show conditions under which firms choose to warehouse rather than replace nonfunctioning satellites. We find a dominant firm with a competitive fringe produces more and longer duration warehousing relative to perfect competition or monopoly. Regulators could remediate warehousing by increasing a firm's marginal costs, or by increasing the probability of reallocating orbital slots that do not have a fully functioning satellite. (JEL L9, L5)     

CREDIBLE SIGNALS OF THE RELEASE OF NEW VERSIONS

Prices can credibly signal whether a durable‐goods monopolist will offer an improved good in the future. When the future release of a new version is private information, a monopoly seller will reveal a failure to develop and market a new version with a lower price than he or she would charge in full information. A firm would be willing to pay more to innovate when consumers are uncertain than if they are informed ex ante because a failure to innovate is punished by a low equilibrium price. Consumers' uncertainty about innovation intensifies an unsuccessful innovator's Coasian problem and increases consumer welfare. (JEL D82, L12, L15)     

Children's perspectives on their economic activity—Diversity,motivations and parental awareness

This research investigates how children from an affluent city in the UK exercise agency to construct their economic worlds. A survey (n = 484) showed that children (ages 10 to 14 years) conduct a range of monetary and non‐monetary activities. A second study (n = 83) with diaries, self‐documentation, and parental questionnaires, showed that children's economic activity involves individual and social motivations, occurs in formal and informal contexts, and is often self‐regulated. Parents acknowledge children's monetary activities and neglect non‐monetary activities. The results suggest that children's agency unfolds in diverse economic activities shaped by contextual factors and interactions with peers and parents, thereby supporting a relational view of children's agency.     

How to Make the Law Work? Budgetary Implications of Domestic Violence Laws in Latin America,Central America,and the Caribbean

SUMMARY

This study focuses on budgetary implications of domestic violence (DV) laws in the Latin American, Central American, and Caribbean (LAC) region. It is based on a survey of literature and data on DV legislation, literature reviews on the social and economic costs of DV, and an analysis of policies on DV in the region based on a survey of nonprofits working on DV in the region. The study shows DV is not being mainstreamed into ministerial budget line items as would be expected following the passage of law. There is clearly a difference between what is ratified in laws and the implementation of activities that follows those decisions. Funding for DV programs is insufficient to reach the entire target population and address the magnitude of the problem. Even after laws were passed, major sources of funding for DV services have continued to be discretionary funds from the ministries' budgets and international donor funds.     

AN OPEN‐ECONOMY MODEL WITH MONEY,ENDOGENOUS SEARCH,AND HETEROGENEOUS FIRMS

This paper describes a new monetary open‐economy model where firms have market power due to search frictions in the goods market, and endogenous search effort by consumers mitigates this market power. The optimal inflation rate generally depends positively on the cost of search effort, the cost of firm entry, and the cost of trade. Higher inflation always improves a country's terms‐of‐trade against its trading partners. I also characterize a general class of matching processes which offer a novel approach to modeling firm sales. (JEL D43, E40, F12)     

LICENSING POLICY AND TECHNOLOGY ADOPTION IN STANDARD SETTING ORGANIZATIONS

The standard setting organizations' decisions on licensing policy and standard's technological specification, and the ensuing implications for social welfare are analyzed. The author finds the conditions under which a licensing rule that grants monopoly power to the licensors whose technology is adopted in the standard can be employed by the members of the consortium (ex‐post licensing). Moreover, it is shown that the adoption of ex‐post licensing might lead to the inefficient exclusion of an efficient stand‐alone licensor. Finally, the author discusses the conditions under which a policy of ex‐ante licensing can be less efficient than ex‐post licensing. (JEL K21, L15, L24, L42)     

Identity,Peer Relationships,and Adolescent Girls' Sexual Behavior: An Exploration of the Contemporary Double Standard

The idea of a sexual double standard emphasizes that men have more sexual freedom, whereas women are subject to social sanctions for the same behaviors. This research uses a sample of adolescent women to examine the social consequences of reporting a greater number of sex partners. The research explores whether there are broader social costs and feelings of low self-worth associated with a high number of sex partners, and also focuses on characteristics of the adolescents' close friends. The analyses of quantitative data (n = 600) provide support for the emphasis on the adolescents' immediate network of friends: Friends' attitudes and behaviors were significant predictors of respondents' own sexual experiences, while those reporting a higher number of sex partners did not report a lack of popularity, desire for more friends, or lower self-esteem. In-depth relationship history narratives collected from a subset of respondents (n = 46) provide additional context. Women often recognized the existence of a double standard on a societal or school level, but support or acceptance provided by the more immediate network of similarly situated friends serves as a buffer against such negative attributions. The findings suggest that programs targeting sexual behaviors should focus on how peer norms influence girls' sexual choices.     

REGULATED AND UNREGULATED SUBSTITUTES: AVERSION EFFECTS OF AN ETHANOL MANDATE

One approach for handling more aggressive goals under an ethanol mandate is to use a “dual blend” mandate in which both the preferred new ethanol blend and the old (possibly ethanol‐free) blend of gasoline coexist. Highlighting the case of New South Wales, Australia, we show the dual nature of such a mandate can potentially lead to significant costs when consumers are averse. We show consumers en masse rejected the new blend and paid 43 cents per gallon more to avoid it. Not even the second of the mandate's four targets could be reached, and the consumer cost was substantial. (JEL L51, Q41, Q42, Q51)     

A Longitudinal Examination of Support,Self‐Esteem,and Mexican‐Origin Adolescent Mothers' Parenting Efficacy

Guided by a risk and resilience framework, this study used a prospective longitudinal, multiple‐reporter design to examine how social support from a mother figure during pregnancy interacted with Mexican‐origin adolescent mothers' self‐esteem to inform their parenting efficacy when their children were 10 months old. Using reports of perceived social support by adolescent mothers (M_age = 16.24, SD = 0.99) and their mother figures (M_age = 40.84, SD = 7.04) in 205 dyads, and controlling for demographic factors (i.e., adolescent age, adolescent nativity, family income, mothers' educational attainment, adolescent – mother coresidence) and adolescents' social support from a significant other, the findings indicated that social support during pregnancy was positively associated with adolescent mothers' future parenting efficacy when adolescent mothers had relatively lower self‐esteem. The findings were consistent for adolescents' and mothers' reports and emphasize the value of social support from a mother figure among adolescent mothers with lower self‐esteem. Implications for interventions are presented.     

HAPPINESS,GROWTH, AND PUBLIC POLICY†

If society's goal is to increase people's feelings of well‐being, economic growth in itself will not do the job. Full employment and a generous and comprehensive social safety net do increase happiness. Such policies are arguably affordable not only in higher income nations but also in countries that account for most of the population of the less‐developed world. These conclusions are suggested by an analysis of a wide range of evidence on happiness in countries throughout the world. (JEL I31, I38, O21, F20, D60, E60)     

Markets,Networks, and Risk: An Analysis of Labor Remuneration in the Lake Victoria Fishing Industry

This study applies concepts from Habermas' Theory of Communicative Action to the problem of identifying the circumstances under which networks replace markets as the primary governance mechanism for economic activities. The suggestion derived from this theory is that markets govern economic activities tied to material phenomena; whereas networks control such activities when they are tied to social relationships. This suggestion is subjected to an empirical test. Labor transactions in the Lake Victoria fishing industry are used to test the hypothesis that risk factors arising from natural contingencies will distribute according to a risk market model, whereas those arising from social relationships will be distributed through a logic of social power tied to networks and identities. The hypothesis is generally supported by data on the effects of kinship and, more strongly, ethnicity.     

Home of the Brave,Frantz Fanon and cultural pluralism

Abstract

This article examines Mark Robson's Home of the Brave (1949, USA), a Hollywood social problem drama about anti-black racism, and the brief but vivid response to the film presented in Frantz Fanon's Black Skin, White Masks (1952). Fanon enables a rethinking of some of the film's most central assumptions and the discourses upon which the story relies. At the same time, Fanon's response conveys information about his own biography and his perspectives on cultural representation generally. The article examines the film as a document that reveals competing claims about anti-black racism and, through Fanon's commentary, revisits the relationship between cultural pluralism and racial ideologies in the mid-20th century USA. The article explores the nature of Fanon's anti-racist commentary on the film as a form of 'cultural studies' that offers transnational historical insight and simultaneously provides ways of re-examining the national specificity of race thinking.     

NONLINEAR PRICING STRATEGIES AND COMPETITIVE CONDITIONS IN THE AIRLINE INDUSTRY

This paper empirically examines the effect of competitive conditions on nonlinear pricing strategies in the airline industry. We use a unique data set to analyze the impact of concentration and the competitive pressures generated by Southwest and other low cost carriers on the relative prices within a menu of fares. The menu orders tickets by quality based upon cabin and ticket restrictions. We analyze the ratio of fares charged for various qualities within the menu to the fares charged for the lowest quality nonrefundable, restricted tickets. We observe a fare compression for only the highest fares on only the most concentrated (i.e., monopoly) routes. This result is something of a puzzle given a monopolist's market power. We find, however, that actual and potential competition from Southwest reduces low end fares and generally leads to substantial fare compression throughout the fare menu. (JEL L11, L93)     

Parental Migration and Education of Left‐Behind Children: A Comparison of Two Settings

The out‐migration of parents has become a common childhood experience worldwide. It can confer both economic benefits and social costs on children. Despite a growing literature, the circumstances under which children benefit or suffer from parental out‐migration are not well understood. The present study examined how the relationship between parental out‐migration and children's education varies across migration streams (internal vs. international) and across 2 societies. Data are from the Mexican Family Life Survey (N = 5,719) and the Indonesian Family Life Survey (N = 2,938). The results showed that children left behind by international migrant parents are worse off in educational attainment than those living with both parents. Internal migration of parents plays a negative role in some cases, though often to a lesser degree than international migration. In addition, how the overall relationship between parental migration and education balances out varies by context: It is negative in Mexico but generally small in Indonesia.     

Social capital and aspirations for educational attainment: a cross-national comparison of Australia and Germany

With the emergence of ‘knowledge economies’ across the industrialised world, transitions from school to work have generally become more complex and uncertain. Nonetheless, such developments vary between countries, as young people form aspirations which align with their individual preferences, academic abilities and the economic, cultural and social capital to which they have access. Previous research emphasises the positive influence social capital received from parents and school networks has on young people's developing aspirations. Meanwhile, the social capital young people generate for themselves through ‘out-of-school’ activities is often construed as either irrelevant or problematic. In this paper, we examine the relationship between this latter dimension of social capital and the educational aspirations of young people in Australia (aged 14/15; n = 3586) and Germany (aged 14/15; n = 2517). Both countries have distinct institutional settings with varied school-to-work transition regimes. Our results show that youth-derived social capital, generated through participation in out-of school extra-curricular activities, mediates the association between parental background and educational aspirations in both countries. We suggest that, by exposing young people to broader sets of values, skills and resources not accessible within the family and the school context, such involvement may be important for promoting educational aspirations and attainment.     

WAGES,RENTS, AND HETEROGENEOUS MOVING COSTS

The model of compensating differentials in regional labor and land markets was formalized by Roback (1982) . The model interprets regional differences in constant quality wages and rents as compensating firms and residents for inter‐regional differences in amenities. This paper extends the Roback model to allow for moving costs which vary among a city's residents and businesses. This modification of the model generates new interpretations of regional differences in rents and wages. The theoretical results suggest that the interpretation of inter‐city rent and wage differentials as compensating is misguided, that such differentials are inappropriate as weights in Quality of Life (QOL) comparisons, and stresses the importance of local housing market parameters in the determination of these differentials. The importance of amenities is retained, but housing supply becomes the main other determinant of regional rents. Housing supply was ignored in the literature following on Roback's initial insight. We show that interactions between amenities and housing supply will bias QOL rankings. Finally, we support the empirical importance of heterogeneous moving costs by demonstrating the effects of exogenous supply constraints on local housing prices. (JEL R31)