40 research outputs found
On our Knowledge of Markets for Knowledge ― A Survey
At the Lisbon Summit 2000 the EU set herself the goal of transforming the European Union by 2010 into “the most competitive and dynamic knowledge based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion”. I take this statement as a starting point for this paper for two reasons: On the one hand it acknowledges the crucial role of knowledge in an advanced economy. On the other hand, it raises the question what needs to be done in order to achieve this ambitious goal. In particular, since the EU is also committed to a market economy and the maintenance of competition the question arises how well markets function with respect to the creation and distribution of knowledge, and what measures may be required, either to support the market mechanism or to replace it by some other institutions. This article deals with the ?rst question and offers a survey of the problems encountered in markets dealing with knowledge. In the next section I discuss briefly the role of knowledge and information in economics. After that I point out a few difficulties with finding a precise and generally accepted definition of knowledge. Section 4 is the core of the article and discusses various types of market failures which might occur when the commodity produced and traded is knowledge. I conclude with a few suggestions for further research
Locational choice and price competition: Some empirical results for the Austrian retail gasoline market
Using data from the Austrian retail gasoline market we test the following two hypotheses derived from spatial economics: (i) Retail shops are more densely located in areas with a higher population density. (ii) Spatial competition equilibrium prices are decreasing in the density of seller locations. Both hypotheses are well supported by the data. Population density explains more than 95% of the cross-district variation in the density of gasoline stations. With respect to the relationship between prices and gas station density the coefficient has the predicted sign and is significant at the 5% level or better in all specifications. Estimation as simultaneous equations does not alter our conclusions, and suggests causality running from station density to price.
Identity Creating Goods and Free Trade
Identity creating or cultural goods are characterized by a positive consumption network externality and increased utility because of doing what the reference group expects. Different countries have different cultural goods. It is shown that moving from autarky to free trade a country may suffer a welfare reduction if consumption of its own cultural good is reduced in favor of a foreign cultural good, regardless of comparative advantage. On the other hand, welfare may be increased even if the domestic cultural good disappears altogether
Acknowledgments
The Harvard Environmental Economics Program (HEEP) develops innovative answers to today’s complex environmental issues, by providing a venue to bring together faculty and graduate students from across Harvard University engaged in research, teaching, and outreach in environmental and natural resource economics and related public policy. The program sponsors research projects, convenes workshops, and supports graduate education to further understanding of critical issues in environmental, natural resource, and energy economics and policy around the world
Optimal Price-Cap Regulation.
The author considers the problem of a regulator who cannot observe the R&D expenditures of a firm devoted to reductions in the costs of production. It is shown, for a finite horizon model, that price-cap regulation does not only provide stronger incentives for cost reductions than does rate of return regulation, but that it is also capable of achieving a higher social welfare level, even if the costs of reviewing the current production costs are negligible. These conclusions are reinforced in an infinite horizon model. Copyright 1991 by Blackwell Publishing Ltd.