Domestic Rivalry and Export Performances: Theory and Evidence from International Airline Markets

The much-studied relationship between domestic rivalry and export performance consists of those supporting a national-champion rationale, and those supporting a rivalry rationale. While the empirical literature generally supports the positive effects of domestic rivalry, the national-champion rationale actually rests on firmer theoretical ground. We address this inconsistency by providing a theoretical framework that illustrates three paths via which domestic rivalry translates into enhanced international exports. Furthermore, empirical tests on the world airline industry elicit the existence of one particular path - an enhanced firm performance effect - that connects domestic rivalry with improved international exports. ZUSAMMENFASSUNG - Der Zusammenhang zwischen Wettbewerb auf dem heimischen Markt und der Exportleistung spaltet die Wissenschaft: Die eine Argumentationslinie bevorzugt nationale Marktvorherrschaft als Determinante eines guten Exportergebnisses, während andere auf nationalen Wettbewerb als vorteilhafte Grundlage verweisen. Obwohl in der empirischen Literatur positive Wirkungen von Wettbewerb auf heimischen Märkten gezeigt werden konnten, stützt sich der Ansatz der nationalen Marktvorherrschaft auf stabileren theoretischen Hintergrund. Zur Klärung dieser Unstimmigkeit bieten wir einen theoretischen Rahmen an, der drei Möglichkeiten der Übertragung von heimischem Wettbewerb zu gesteigerten Exporterfolgen aufzeigt. Empirische Untersuchungen an international agierenden Luftfahrtunternehmen legen insbesondere einen Übertragungsmechanismus nahe: Ein Leistungsfähigkeitseffekt ist dafür verantwortlich, dass wettbewerbsgeprüfte Unternehmen eine verbesserte Exportleistung aufweisen.National champion, rivalry, hypothesis, exports, airlines

Airline Emission Charges: Effects on Airfares, Service Quality, and Aircraft Design

This paper explores the effect of airline emissions charges on airfares, airline service quality, aircraft design features, and network structure, using a detailed and realistic theoretical model of competing duopoly airlines. These impacts are derived by analyzing the effects of an increase in the effective price of fuel, which is the path by which emissions charges will alter airline choices. The results show that emission charges will raise fares, reduce flight frequency, increase load factors, and raise aircraft fuel efficiency, while having no effect on aircraft size. Given that these adjustments occur in response to the treatment of an emissions externality that is currently unaddressed, they represent efficient changes that move society closer to a social optimum.emissions, airlines

Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets

The much-studied relationship between domestic rivalry and export performance consists of those supporting a national-champion rationale, and those supporting a rivalry rationale. While the empirical literature generally supports the positive effects of domestic rivalry, the national-champion rationale actually rests on firmer theoretical ground. We address this inconsistency by providing a theoretical framework that illustrates three paths via which domestic rivalry translates into enhanced international exports. Furthermore, empirical tests on the world airline industry elicit the existence of one particular path - an enhanced firm performance effect - that connects domestic rivalry with improved international exports.

Export Orientation and Domestic Merger Policy: Theory and Some Empirical Evidence

The recent 'open-economy industrial organization' literature generally finds export-orientation to enhance the weight of post-merger international competitive gains; thereby, favoring lenient domestic merger policy. We observe, however, that mergers seldom generate the ‘significant synergies’ that are supportive of international competitive gains. Further, we explore a joint-economies of production effect which suggests that domestic mergers tend to generate international competitive losses (not gains). Accordingly, we contend that export-orientation favors strict (not lenient) domestic merger policy. In order to support this contention, we develop a model illustrative of how non-synergistic domestic mergers in the presence of international sales might reduce national welfare and incur stringent merger-reviews. Further, using a panel data set composed of U.S. merger policy by manufacturing sector over the 1990-2001 period, we empirically support export-orientation leading to strict merger policy. ZUSAMMENFASSUNG - (Exportorientierung und nationale Fusionspolitik: Theorie und empirische Belege) In der neueren Literatur zur Industrieökonomie in offenen Volkswirtschaften wird allgemein herausgestellt, dass die Zunahme internationaler Wettbewerbs-vorteile durch eine Fusion umso stärker ins Gewicht fällt, je höher die Exportorientierung der Volkswirtschaft ist. Mithin wird eine nachsichtige nationale Fusionskontrolle befürwortet. Im Gegensatz dazu stellen wir fest, dass Unternehmenszusammenschlüsse oft nicht die beabsichtigten signifi-kanten Synergieeffekte haben, die die internationale Wettbewerbsfähigkeit des Unternehmens tatsächlich stärken würden. Stattdessen führen Fusionen eher zu internationalen Wettbewerbsnachteilen. Eine Ursache dafür finden wir im "joint economies of production - Effekt", den wir hier näher untersuchen. Entsprechend kommen wir zu der Auffassung, dass die Exportorientierung einer Volkswirtschaft statt für eine nachsichtige eher für eine strenge Fusions-kontrolle spricht. Das von uns entwickelte Modell veranschaulicht, wie Fusionen von Unter-nehmen, bei denen der Synergieeffekt ausbleibt, in einer offenen Volkswirt-schaft die Wohlfahrt des Landes reduzieren, und lässt erkennen, dass diese Auswirkungen strengere Fusionsprüfungen nahe legen. Auch empirisch belegen wir unsere These über den Zusammenhang von Exportorientierung und strengerer Fusionspolitik anhand von Paneldaten der Jahre 1990-2001, in denen die US-amerikanischen Fusionsentscheidungen nach den Sektoren des produzierenden Gewerbes geordnet zusammengefasst sind.open-economy, merger-policy, export-orientation, antitrust

Airline Emission Charges: Effects on Airfares, Service Quality, and Aircraft Design

This paper explores the effect of airline emissions charges on airfares, airline service quality, aircraft design features, and network structure, using a detailed and realistic theoretical model of competing duopoly airlines. These impacts are derived by analyzing the effects of an increase in the effective price of fuel, which is the path by which emissions charges will alter airline choices. The results show that emission charges will raise fares, reduce flight frequency, increase load factors, and raise aircraft fuel efficiency, while having no effect on aircraft size. Given that these adjustments occur in response to the treatment of an emissions externality that is currently unaddressed, they represent efficient changes that move society closer to a social optimum.Emissions; Global warming; Airlines

Effect of pre-quenching and pre-normalization on microstructures and mechanical properties of 40Cr steel after zero-time-holding quenching

Pre-quenchingand pre-normalization are selected as pre-treatment processes. Microstructures, the tensile strengthand hardness of zero-time-holding quenched 40Cr steel with differentpre-treatment are investigated. The results show that the zero-time-holding40Cr steel quenched by pre-quenching is fine martensite and exhibits highertensile strength and hardness than that with pre-normalization. The mechanical properties of the zero-time-holding 40Cr steel quenched by pre-quenching are better than that with pre-normalization. The effect of pre-treatment on the mechanical properties of zero-time-holding quenched 40Cr steel becomes prominent when the zero-time-holding quenching temperature decreases. The mechanical properties of zero-time-holding 40Cr steel quenched at 860-890℃ can be improved with austenite inverse transformation

Modifying microstructure and property of 30CrMnSi steel by subcritical austenite reverse transformation quenching

Subcritical austenite reverse transformation quenching was used to improve the mechanical properties of 30CrMnSi steel, and the microstructure and mechanical properties of the samples were analyzed by subcritical austenite reverse transformation quenching. Experimental results show that subcritical reverse transformation quenching can refine the austenite grains of the 30CrMnSi steel. Lath-shaped martensite can be obtained after quenching. Ferrite is exited in the martensite lath when quenching temperature is low. When quenching temperature is higher than 840℃, ferrite disappears and only lath-shaped martensite can be observed. The subcritical austenite reverse transformation quenching at 840℃ can effectively improve the strength and hardness, which is higher than that of the sample by conventional quenching at 870 ℃