AN OPTIMAL MIDDLEMAN FIRM PRICE ADJUSTMENT POLICY: THE "SHORT-RUN INVENTORY-BASED PRICING POLICY"

This paper examines the optimum pricing policies of middleman firms who carry an inventory of goods bought for resale. Each period the firm in the theoretical model is required to post a price before it observes its realized demand. In disequilibrium situations, the firm's profit-maximizing pricing policy is shown to be a "short-run inventory-based pricing policy" which requires the firm to post a price below the long-run equilibrium price upon observing its actual beginning inventory level above its optimum level, and to post a price above the long-run equilibrium price upon observing its actual inventory level below its optimum level. The final section suggests that the use of such policies by middleman firms will lead to market price adjustments which are both consistent with the "law of supply and demand" and which are based on explicit maximizing behavor.     

Race, Representation, and Trust: Changes in Attitudes After the Election of a Black Mayor

This article addresses the general proposition that changesin leadership images precipitate changes in public opinion.Specifically, the purpose of this research is to determine ifchanges in the levels of political trust expressed by blackand white city residents can be attributed to the election ofa city's first black mayor. The attitudes of black and whiteresidents of the City of Atlanta before and after the electionof a black mayor are compared, and changes occurring duringthe study period are compared to similar national data. Alternateexplanations for the changes observed are explored. The dataexamined suggest that increased identification with city governmentamong blacks is stimulated by the election of a black mayor.     

RATE BASE METHODS AND REALIZED RATES OF RETURN

Considerable regulatory energy and academic research has been devoted to examining the question of what constitutes the "correct" basis of valuation of the rate base for utility firms. This study compares utility earnings using data which adjust for differences among state jurisdictions concerning what is allowed in the rate base. The results show that there is no statistical difference in earnings of firms regulated by original cost, fair value, and reproduction cost jurisdictions. The results also show that regulation cannot generally explain the variance in earnings between states and rapid inflation does not seem to affect the results.     

GRADUATE EDUCATION AND PRIVATE RATES OF RETURN: A REVIEW OF THEORY AND EMPIRICISM

In this paper twelve recent studies regarding private rates of return for graduate education are reviewed and evaluated. Possible sources of error due to data base, methodology and interpretation of results are examined and compared. After this has been done, the authors calculate returns to graduate education with spatial distribution problems and job security incorporated in the model. The article concludes that the typical rate of return method has been pushed about as far as it can go and now is the time for the economic profession to develop more meaningful techniques which will allow us to come to grips with the policy issues regarding the level of support for education.