Do Incumbents Improve Service Quality in Response to Entry? Evidence from Airlines’ On-Time Performance

We examine if and how incumbent firms respond to entry, and entry threats, using non-price modes of competition. Our analysis focuses on service quality within the airline industry. We find that incumbent on-time performance actually worsens in response to entry, and even entry threats, by Southwest Airlines. Given Southwest’s general superiority in on-time performance, this result is consistent with equilibria of theoretical models of quality and price competition, which generally predict differentiation along quality. We corroborate this intuition with further analysis, showing there is no notable response by incumbents when an airline with average on-time performance (Continental) threatens to enter or enters a route.

The Market For Audit Services In Germany

Many studies have been conducted on the market for audit services in the United States, the United Kingdom, Australia and other countries, but many countries, including Germany, have not been studied.  Since the German accounting environment differs significantly from most of the countries previously studied, this paper studies the audit services market in Germany to ascertain whether the determinants of audit fees differ in Germany.  The findings indicate broad similarities with some differences in the market for audit services in Germany and countries previously studied.  In particular, as in a majority of countries previously studied, there is a fee premium paid to large auditors

Accounting firms histories in teaching auditing and financial accounting

This article does not attempt to provide a complete remedy for the lack of historical awareness of accounting history by either students or professors. Instead it provides a few pedagogical examples of how the history of accounting can be incorporated into conventional lectures on financial accounting and auditing in a way that will both introduce students to a historical perspective on accounting and contribute to an improved understanding of the basic subject matter. A rich source of accounting history is found in the official or semi-official histories of large accounting firms. Beginning in 1951 and continuing until the early 1980s, several of the largest U.S. accounting firms (see references) published official histories of their firms. In addition, a managing partner of one firm, Arthur Andersen & Co., was interviewed extensively for a semi-official history of his firm (Spacek, 1985)

Is Dual Agency in Real Estate Transactions a Cause for Concern?

We study dual agency in residential real estate, where the same agent/agency represents both the buyer and seller. We assess the extent to which dual agency suffers from an inherent conflict of interest, where the dual agent furthers the interest of one client at the expense of the other client’s, as well as principal-agent incentive misalignment where the agent furthers her own interest at the expense of one or both clients. And, we examine how these incentive conflicts affect agent behavior and transaction outcomes. To do so, we analyze 10,891 residential real estate transactions in Long Island, NY, from 2004- 2007. Specifically, we (i) identify how dual agency is correlated with house prices and time-to-sale, (ii) describe and assess agent behaviors that could generate these correlations, and (iii) provide some intuition as to the economic effects of prohibiting dual agency in real estate transactions. We find that the incidence of dual agency is uncorrelated with sale price and negatively correlated with time-to-sale. However, on very fast deals, list prices and sale prices are significantly higher on houses sold via dual agency. These findings are consistent with first-resort selling (agents first showing houses to in-house buyer clients) and strategic pricing (agents inducing their seller clients to set a higher list price in anticipation of an internal client agreeing to it) on some deals, in conjunction with agents leaning on sellers to accept a lower sale price on other deals. First-resort selling is indicative of incentive misalignment, while the latter two behaviors reflect a conflict of interest: strategic pricing transfers surplus from the buyer to the seller, and leaning on the seller transfers surplus from the seller to the buyer. Further, our results indicate little difference between dual-agent (same agent) and within-agency (same agency, but different agent) deals. Our findings provide some evidence of distorted outcomes associated with dual agency, mainly on fast deals, but the evidence indicates mild overall effects, suggesting that prohibiting the practice is not likely to substantially increase welfare.

Majorana edge states in interacting one-dimensional systems

We show that one-dimensional electron systems in proximity of a superconductor that support Majorana edge states are extremely susceptible to electron-electron interactions. Strong interactions generically destroy the induced superconducting gap that stabilizes the Majorana edge states. For weak interactions, the renormalization of the gap is nonuniversal and allows for a regime, in which the Majorana edge states persist. We present strategies how this regime can be reached.Comment: 4.2 page, 1 figur

Where do uncertainties reside within environmental risk assessments? Expert opinion on uncertainty distributions for pesticide risks to surface water organisms

A reliable characterisation of uncertainties can aid uncertainty identification during environmental risk assessments (ERAs). However, typologies can be implemented inconsistently, causing uncertainties to go unidentified. We present an approach based on nine structured elicitations, in which subject-matter experts, for pesticide risks to surface water organisms, validate and assess three dimensions of uncertainty: its level (the severity of uncertainty, ranging from determinism to ignorance); nature (whether the uncertainty is epistemic or aleatory); and location (the data source or area in which the uncertainty arises). Risk characterisation contains the highest median levels of uncertainty, associated with estimating, aggregating and evaluating the magnitude of risks. Regarding the locations in which uncertainty is manifest, data uncertainty is dominant in problem formulation, exposure assessment and effects assessment. The comprehensive description of uncertainty described will enable risk analysts to prioritise the required phases, groups of tasks, or individual tasks within a risk analysis according to the highest levels of uncertainty, the potential for uncertainty to be reduced or quantified, or the types of location-based uncertainty, thus aiding uncertainty prioritisation during environmental risk assessments. In turn, it is expected to inform investment in uncertainty reduction or targeted risk management action

Combined visible and near-infrared OPA for wavelength scaling experiments in strong-field physics

We report the operation of an optical parametric amplifier (OPA) capable of producing gigawatt peak-power laser pulses with tunable wavelength in either the visible or near-infrared spectrum. The OPA has two distinct operation modes (i) generation of >350 uJ, sub 100 fs pulses, tunable between 1250 - 1550 nm; (ii) generation of >190 uJ, sub 150 fs pulses tunable between 490 - 530 nm. We have recorded high-order harmonic spectra over a wide range of driving wavelengths. This flexible source of femtosecond pulses presents a useful tool for exploring the wavelength-dependence of strong-field phenomena, in both the multi-photon and tunnel ionization regimes.Comment: 14 pages, 9 figures, This paper was published in Proceedings of SPIE 10088, Nonlinear Frequency Generation and Conversion: Materials and Devices XVI, doi 10.1117/12.225077

Diaphragm Force and Mitochondrial Function Ex Vivo Following GSNOR Inhibition In Vivo Preceding Mechanical Ventilation

During mechanical ventilation (MV), force developed by the diaphragm is decreased over time much faster than locomotor muscles. This is known as ventilator-induced diaphragm dysfunction (VIDD), and VIDD may be accelerated by intramyofiber oxidative stress. An important free radical used for the treatment of acute respiratory distress syndrome (ARDS) is nitric oxide (NO) which can diffuse to diaphragm myofibers during treatment. However, little is known whether NO or NO by-products such as S-nitrosothiols (RSNO), can accelerate or prevent VIDD. PURPOSE: To investigate whether inhibiting S-nitrosoglutathione reductase (GSNORi) during MV could affect ex vivo diaphragm force and mitochondrial respiration. METHODS: Male (C57BL6J) mice (n=27) were anesthetized and subjected to MV for 2, 4, or 6h, and non-MV mice (0 h) were used as controls. Alternatively, mice were treated with PBS/10% DMSO (n=6) or 25 µg SPL-334 (GSNORi, n=6) or 25 µg SPL-334 + 1.7 mg isosorbide dinitrate (ISDN; n=6), and then subjected to MV for 2 h. After MV, mice were euthanized, and diaphragm strips were used for force or for mitochondrial oxidative phosphorylation and reactive oxygen species generation measurements. RESULTS: Peak tetanic force was decreased by MV starting at 4 h (30 ± 2 N/cm2 vs 26 ± 1 N/cm2 vs 23 ± 2 N/cm2 vs 18 ± 4 N/cm2, for 0 vs 2 vs 4 vs 6h MV, P=0.0097 one-way ANOVA). Peak force was not different between DMSO vs GSNORi (P=0.3834). Leak respiration (Mann-Whitney p=0.26; CI95 7, 45 vs 10, 68 pmol/s/mg), coupled-phosphorylating mitochondrial respiration (Mann-Whitney p=0.91; CI95 121, 180 vs 107, 215 pmol/s/mg), and H2O2 flux in any of the respiratory states (e.g. coupled-phosphorylating Mann-Whitney p=0.26; CI95 30, 245 vs 4, 543 fmol/s/mg), were not different between DMSO vs GSNORi. CONCLUSION: VIDD was developed at 4 hours MV, but GSNORi treatment for 2 h did not produce any changes to VIDD and to mitochondrial function. These data suggest that if exogenous NO is not provided, inhibiting GSNOR in vivo alone does not affect diaphragm function ex vivo. Support: SDSU 2023 SEED Grant (to L.N.