Standards vs. labels with imperfect competition and asymmetric information

I demonstrate that providing information about product quality is not necessarily the best way to address asymmetric information problems when markets are imperfectly competitive. In a vertical dierentiation model I show that a Minimum Quality Standard, which retains asymmetric information, generates more welfare than a label, which provides full information.minimum quality standard; label; asymmetric information; vertical differentiation; product quality

Leaf Optical Responses to Light and Soil Nutrient Availability in Temperature Deciduous Trees

Leaf optical parameters influence light availability at the cellular, leaf, and canopy scale of integration. While recent studies have focused on leaf optical responses to acute plant stress, the effects of changes in plant resources on leaf optics remain poorly characterized. We examined leaf optical and anatomical responses of five temperate deciduous tree species to moderate changes in nutrient and light availability. Spectral reflectance in the visible waveband generally increased at high light, but decreased with increased nutrient availability. Patterns of both spectral reflectance and absorptance were primarily determined by chlorophyll concentration although carotenoid concentration was also influential. While most anatomical features did not explain residual variation in reflectance, cuticle thickness was significantly related to reflectance at complementary angles compared to the angle of incidence. Absorptance did not change with light environment; however, absorption efficiency per unit biomass increased by approximately 40% under low light, due to reduced leaf mass per area. We conclude that changes in resource availability differentially influence leaf optical properties and that such changes are driven primarily by changes in pigment concentrations. The magnitude of leaf optical responses to moderate changes in resource availability was comparable to those of acute stress responses and varied among species

Look How Little I’m Advertising!

This paper studies the role of advertising and prices as signals of quality in a purely static setting, where repeat purchases are suppressed altogether, but where advertising affects demand directly. We first show, under standard regularity assumptions, that the high-quality firm will distort its price upwards and its level of advertising downwards compared to the complete-information case. We then show, under relatively mild additional conditions, that the high-quality firm will choose a level of advertising below that of the low-quality firm, even if the high-quality firm advertises most under complete information. Hence, empirically, a high price and a modest advertising budget may well signal high quality.quality; signaling; pricing; advertising

Pre-Auction Offers in Asymmetric First-Price and Second-Price Auctions

We consider “must-sell” auctions with asymmetric buyers. First, we study auctions with two asymmetric buyers, where the distribution of valuations of the strong buyer is “stretched” relative to that of the weak buyer. Then, it is known that inefficient first-price auctions are more profitable for the seller than efficient second-price auctions. This is because the former favor the weak buyer. However, we show that the seller can do one better by augmenting the first-price auction by a pre-auction offer made exclusively to the strong buyer. Should the strong buyer reject the offer, the object is simply sold in an ordinary first-price auction. The result is driven by the fact that the unmodified first-price auction is too favorable to the weak buyer, and that the pre-auction offer allows some correction of this to the benefit of the seller. Secondly, we show quite generally that pre-auction offers never increase the profitability of second-price auctions, since they introduce the wrong kind of favoritism from the perspective of seller profits.first-price and second-price auctions; asymmetric bidders; pre-auction offers

Influence of topography and moisture and nutrient availability on green alder function on the low arctic tundra, NT

The Arctic has warmed by at least 3°C over the past 50 years and this rapid warming is expected to continue. Climate warming is driving the proliferation of shrubs across the tundra biome with implications for energy balance, climate, hydrology, nutrient cycling, and biodiversity. Changes in tundra plant water use attributable to shrub expansion are predicted to increase evapotranspirative water loss which may amplify local warming and reduce run-off. However, little is known about the extent to which shrubs will enhance evapotranspirative water loss in these systems. Direct measures of shrub water use are needed to accurately predict evapotranspiration rates and the associated hydrological and energetic impacts. In addition, it is crucial that we understand the abiotic factors that drive shrub distribution and physiological function to forecast further changes in tundra ecosystem function. Shrubs are expanding in areas that have a higher potential of accumulating moisture, such as drainage channels and hill slopes. Shrub expansion may be limited by variation in water and nutrient availability across topographic gradients. Nevertheless, the associations between shrub function and abiotic limitations remain understudied. To address these knowledge gaps, we measured sap flow, stem water potential, and a range of functional traits of green alder (Alnus viridis) shrubs and quantified water and nutrient availability in shrub patches on the low arctic tundra of the Northwest Territories. Frost table depth was a significant negative driver of sap flow and underlies decreased surface water availability with thaw. This was further supported through significantly lower stem water potential values as the growing season progressed. Shrubs in upslope locations had significantly lower water potentials relative to shrubs in downslope locations, demonstrating topographic variation in shrub water status. Shrubs in channels and at the tops of patch slopes significantly differed in leaf functional traits representing leaf investment, productivity, and water use efficiency. Channel shrubs reflected traits associated with higher resource availability and productivity whereas shrubs at the tops of patches reflected the opposite. This work provides insight into the abiotic drivers of tall shrub water use and productivity, both of which will be essential for predicting ecosystem function

The Use of Brands in Food Marketing - Results from a Survey of Danish Food Industry Firms

The paper tests a number of hypotheses concerning branding behaviour of the food industry found in the literature. Based on a survey of 109 Danish food industry firms conducted in 2004, three aspects of branding strategies are analysed, i) the number of brands owned by the firm, ii) the number of brands introduced by the firm during the past year and iii) the percentage of sales obtained from production under private labels. Firms' branding behaviour is related to structural variables including firm size, degree of vertical integration, value added as well as firms' views on food chain organisation and competitiveness.Brands, Private labels, Food industry, Survey, Marketing, Q13,

Parallel Simulations for Analysing Portfolios of Catastrophic Event Risk

At the heart of the analytical pipeline of a modern quantitative insurance/reinsurance company is a stochastic simulation technique for portfolio risk analysis and pricing process referred to as Aggregate Analysis. Support for the computation of risk measures including Probable Maximum Loss (PML) and the Tail Value at Risk (TVAR) for a variety of types of complex property catastrophe insurance contracts including Cat eXcess of Loss (XL), or Per-Occurrence XL, and Aggregate XL, and contracts that combine these measures is obtained in Aggregate Analysis. In this paper, we explore parallel methods for aggregate risk analysis. A parallel aggregate risk analysis algorithm and an engine based on the algorithm is proposed. This engine is implemented in C and OpenMP for multi-core CPUs and in C and CUDA for many-core GPUs. Performance analysis of the algorithm indicates that GPUs offer an alternative HPC solution for aggregate risk analysis that is cost effective. The optimised algorithm on the GPU performs a 1 million trial aggregate simulation with 1000 catastrophic events per trial on a typical exposure set and contract structure in just over 20 seconds which is approximately 15x times faster than the sequential counterpart. This can sufficiently support the real-time pricing scenario in which an underwriter analyses different contractual terms and pricing while discussing a deal with a client over the phone.Comment: Proceedings of the Workshop at the International Conference for High Performance Computing, Networking, Storage and Analysis (SC), 2012, 8 page

Information Exchange, Market Transparency and Dynamic Oligopoly

In the economics literature, various views on the likely (efficiency) effects of information exchange, communication between firms and market transparency present themselves. Often these views on information flows are highly conflicting. On the one hand, it is argued that increased information dissemination improves firm planning to the benefit of society (including customers) and/or allows potential customers to make the right decisions given their preferences. On the other hand, the literature also suggests that increased information dissemination can have significant coordinating or collusive potential to the benefit of firms but at the expense of society at large (mainly, potential customers). In this chapter, we try to make sense of these views, with the aim of presenting some simple lessons for antitrust practice. In addition, the chapter presents some cases, from both sides of the Atlantic, where informational issues have played a significant role.

Electronic structure of C60 / graphite

We report temperature-dependent photoelectron spectra for a monolayer of C_60 adsorbed on HOPG, as well as C 1s x-ray absorption. This extends a previous report which showed the close similarity between the spectrum of the HOMO for the two-dimensional overlayer and that of C_60 in the gas phase. The present work shows that intermolecular and molecule-substrate vibrations contribute strongly to the spectral lineshape at room temperature. Thus, vibrational effects are shown to be crucial for the proper understanding of photoelectron spectra, and thus the charge transport properties, for C_60 in contact with graphite and graphite-like materials.Comment: Proc. of the XV. Int. Winterschool on Electronic Properties of Novel Materials, Kirchberg/Tirol, Austria, 200