Differential Pricing for Information Sharing Under Competition

We consider a two‐echelon supply chain with a manufacturer supplying to multiple downstream retailers engaged in differentiated Cournot competition. Each retailer has private information about uncertain demand. The manufacturer is the Stackelberg leader who sets the contract terms with the retailers, and benefits from retailers sharing their private information. When all retailers are given the same wholesale price, truthful information sharing is not an equilibrium outcome. We propose two variants of differential pricing mechanisms that induce truthful information sharing by all retailers. The first variant rewards a retailer for providing optimistic information and achieves truthful information sharing as a unique equilibrium. The differential pricing mechanism is optimal in the class of linear‐price, incentive‐compatible, direct mechanisms. The second variant, which incorporates provision for a fixed payment in addition to wholesale prices, preserves all the equilibrium properties of the first variant and additionally “nearly coordinates” the supply chain. Our analysis of differential pricing with a fixed payment provides interesting observations regarding the relationship between product substitutability, number of retailers, information precision, and market power. As products become closer substitutes and/or number of retailers increase, the manufacturer's market power increases, enabling her to extract a larger fraction of the supply chain surplus.     

Food subsidy,income transfer and the poor: A comparative analysis of the public distribution system in India's states

The Targeted Public Distribution System (TPDS) – the largest food subsidy program in India – has been a dismal failure in targeting the poor. The present paper examines its performance in three Indian states – Andhra Pradesh, Maharashtra and Rajasthan, based on primary data collected for this study. As real income transfers through food price subsidies are a tiny fraction of expenditure per person under this scheme, a contribution of the present study is to model determinants of real income transfers through subsidised wheat, rice and sugar. The analysis throws new light on how income transfers vary with economic status of a household, inequality in the distribution of land in a village, amount of food price subsidy, transaction costs of buying from ‘fair price shops’ (FPS), and supply shortages. The policy implications of these results are profound. Desperate measures such as a universal food subsidy enshrined in a proposed National Food Security Act are rejected on the grounds that the enormous leakages and wastage under the present TPDS would only get worse. Assertions that a universal food subsidy is the only option consistent with the right to food are rejected as mistaken. Instead, it is worthwhile to overhaul the PDS within the existing outlay.     

Turning the Car Inside Out: Transport, Equity and Environment

"Turning the car inside out" describes how the environmental damage and social exclusion inflicted by the car can only be seen from outside the car. It explains how car use has reshaped land, time use, social relations and economic patterns. It creates ever more pressures for increased car use, yet inevitably leaves the people temporarily or permanently excluded from cars having to negotiate car distances and times. The worst scenario of car saturation is rejected as untenable both because of the permanent social and environmental impact, but also the self-defeating nature of the quest for mobility.     

Bayes estimators of the average failure rates

In the present paper we have proposed a Bayesian approach for making inferences from accelerated life tests which do not require distributional assumptions     

Impact of Retailers with Knowledge of Supplier's Inventory on Supply Chain Performance

We model a supply chain consisting of a supplier and multiple retailers facing deterministic demand. We denote some retailers as strategic in the sense that given the supplier inventory information, they will implement the optimal stocking policy by incorporating such information. On the other hand, some retailers are denoted as naïve in the sense that they ignore supply information and resort to a simplistic ordering policy. Naïve retailers learn the optimal policy over time and adjust their orders accordingly. We study the dynamics of this game and investigate the impact of such strategic and naïve retailers on the cost, ordering pattern and stocking policies of all parties. We analyze the supply chain under two scenarios: the centralized supply chain where the objective is to minimize the total supply chain cost, and the decentralized supply chain where each self‐interested player minimizes its own cost in a Stackelberg game setting. We fully characterize the optimal policies under both centralized and decentralized scenarios and show that, surprisingly, the supply chain might be better off by virtue of naïve retailers. The result is driven by the fact that strategic and naïve players’ decisions shift the positioning of inventory in the supply chain with its final impact being determined by the relative costs of different retailer‐types. Our results also offer managerial insights into how access to supply information can improve supply chain performance.     

Habitat-wise distribution of the House Sparrow (<Emphasis Type=Italic>Passer domesticus</Emphasis>) in Delhi,India

Recently, there have been several reports from different parts of the World on the declining populations of the House Sparrow (Passer domesticus). In order to assess the population of this species in the National Capital Territory of Delhi-India, this study was conducted during June– August in 2007. Twenty-eight Fixed-Radius Point Count stations were established in five habitat types viz. High-density Urban Area, Medium-density Urban Area, Low-density Urban Area, Agriculture Area, and Forested Area, within the study area. The results show that the House Sparrow is still a dominant species in the agriculture area. However, its density is very low in the urban areas as compared to the other co-occurring common bird species viz. Rock Pigeon (Columba livia domestica), House Crow (Corvus splendens) and Common Myna (Acridotheres tristis). As, this study was conducted only over one season, the data is not sufficient to provide a clear picture of the population trend of the House Sparrow. Further studies are therefore required to investigate the relationship of the House Sparrow with other co-occurring common species, and to analyse the data on the type and quality of greenspaces and their relation with the House Sparrow in the study area. A long-term monitoring and conservation programme involving local people may be a good approach for maintaining the population of House Sparrow in the study area.     

Is Health Wealth? Results of a Panel Data Analysis

The objective of this paper is to determine whether health (measured by life expectancy at birth) contributes to economic growth and the functional form in which it influences per capita income. This links our study to the debate between neo-classical and endogenous growth theorists on whether investment in human capital can sustain growth indefinitely. Data on 216 countries for the period 1980–2009 has been obtained from World Development Indicators dataset. This enables us to focus on a period characterized by globalization and demographic transition manifested in the form of population graying. Our findings confirm the importance of investment in human capital. But, in contrast to conclusions of endogenous growth models, we find evidence that benefit from increasing longevity tapers off. We conclude by pointing out that it is necessary to extend this study further by incorporating other dimensions of health that are not captured by life expectancy.     

A test for the variance residual life

In this paper we develop a test based on the empirical distribution function for the alternative representing 'decreasing variance residual life1 property. The test is consistent with asymptotically normal test statistic and is shown to perform well in the Pitman's asymptotic relative efficiency sense.     

Environmental scanning in U.S. corporations.

Environmental scanning is a new activity among corporations, because of its importance, corporations need to progress by stages to achieve a structured and formal system of scanning, and this takes time. This paper is based on a study examining the evolution and state of environmental scanning among corporations, and finds that the essential difference between scanning at the corporate and at the product/market level is not observed by all companies. Ideally, there should be a close liaison between the two levels so that each may reinforce the scanning effort of the other.     

Artificial Neural Network Models for Pricing Initial Public Offerings

In recent times, managerial applications of neural networks, especially in the area of financial services, has received considerable attention. In this paper, neural network models are developed for a new application: the pricing of Initial Public Offerings (IPOs). Previous empirical studies provide consistent evidence of considerable inefficiency in the pricing of new issues. Neural network models using publicly available financial data as inputs are developed to price IPOs. The pricing performance and the economic benefits of the neural network models are evaluated. Significant economic gains are documented with neural networks. Several tests to establish generalizability and robustness of the results are conducted.