Self-financing Roads

Mohring and Harwitz (1962) showed that, under certain conditions, an optimally designed and priced road would generate user toll revenues just sufficient to cover its capital costs. Several scholars subsequently explored the robustness of that finding. This paper briefly summarizes further research on the relationship between congestion-toll revenues and road costs. Despite its transparency, the self-financing theorem can lead to erroneous interpretations. The paper’s second part discusses three such possible fallacies. It uses a simple numerical model to investigate them. The model shows that the naïve interpretation of the Mohring-Harwitz rule may lead to substantial welfare losses. These losses are particularly prominent when the difference between capital and investment cost is confused and when balanced-budget constraints are imposed under second-best network conditions. In contrast, losses from imposing a balanced-budget constraint when economies or diseconomies of scale exist are surprisingly small

Generating global brand equity through corporate social responsibility to key stakeholders

In this paper we argue that corporate social responsibility (CSR) to various stakeholders (customers, shareholders, employees, suppliers, and community) has a positive effect on global brand equity (BE). In addition, policies aimed at satisfying community interests help reinforce credibility to social responsible polices with other stakeholders. We test these theoretical contentions using panel data comprised of 57 global brands originating from 10 countries (USA, Japan, South Korea, France, UK, Italy, Germany, Finland, Switzerland and the Netherlands) for the period 2002 to 2008. Our findings show that CSR to each of the stakeholder groups has a positive impact on global BE. In addition, global brands that follow local social responsibility policies over communities obtain strong positive benefits in terms of the generation of BE, as it enhances the positive effects of CSR to other stakeholders, particularly to customers. Therefore, for managers of global brands it is particularly productive for generating brand value to combine global strategies with the satisfaction of the interests of local communitiesGlobal Brands, Brand Equity, Corporate Social Responsibility, Stakeholders

Generating global brand equity through corporate social responsibility to key stakeholders

In this paper we argue that corporate social responsibility (CSR) to various stakeholders (customers, shareholders, employees, suppliers, and community) has a positive effect on global brand equity (BE). In addition, policies aimed at satisfying community interests help reinforce credibility to social responsible polices with other stakeholders. We test these theoretical contentions using panel data comprised of 57 global brands originating from 10 countries (USA, Japan, South Korea, France, UK, Italy, Germany, Finland, Switzerland and the Netherlands) for the period 2002 to 2008. Our findings show that CSR to each of the stakeholder groups has a positive impact on global BE. In addition, global brands that follow local social responsibility policies over communities obtain strong positive benefits in terms of the generation of BE, as it enhances the positive effects of CSR to other stakeholders, particularly to customers. Therefore, for managers of global brands it is particularly productive for generating brand value to combine global strategies with the satisfaction of the interests of local communities.Global Brands, Brand Equity, Corporate Social Responsibility, Stakeholders.

Identifying the challenges of creating an optimal dissemination geography for census

The importance of census data in government and private-sector planning cannot be underestimated. However, the geographic level at which it is made available for different users, is a highly debateable issue. It is crucial that census data is disseminated in such a way that it satisfies most user needs as far as possible, to ensure that there is optimum use of the information and that maximum value for money is provided. In the past, Statistics South Africa disseminated data at the same geographic level created for data collection. This causes problems for data users and calls for the creation of a separate output geography rather than using the original collection geography.The research was done on two levels: first, an overview of output geographies, as well as examples of developed and successfully used tools to generate these areas within a geographical information system. Some of these could be used in the South African milieu. Secondly the paper discuss aspects such as the population size variation of EAs, in order to inform the criteria for the creation of the ideal small area (SA) layer to satisfy the majority of user needs. Lastly the paper describes briefly the challenges faced to create the 2011 output geography. The results indicate a strong resemblance between the two EA population size patterns of 2001 and 2011, influenced by the EA demarcation rules. The challenges identified in the process of creating the SAL as a census output geography need to be taken into consideration to enable a more useful and user-friendly output

Strategic interactions of bilateral monopoly on a private highway

This paper investigates strategic interactions between a private highway operator anda private transit operator who uses the same highway for its services. Heterogeneity oftravellers is taken into account by considering a continuous distribution of values of time.Demand elasticity arises from the inclusion of an outside virtual mode. Game theory is appliedto model the possible moves taken by the operators in their interactions. Four games areformulated, representing different decision making processes, including Nash and Stackelberg(leader-follower) games. The different timings of long-run and short-run decisions are alsomodeled in a two-stage game. Our results indicate that the market equilibria in the four gamesformulated are quite different as a result of the different sequences of moves. The highwayoperator is considered to be in a better position in terms of profit making in most cases,while for the transit operator it will generally be more advantag!eous to be the follower rather than in the leader position

Second best toll and capacity optimisation in network: solution algorithm and policy implications

This paper looks at the first and second-best jointly optimal toll and road capacity investment problems from both policy and technical oriented perspectives. On the technical side, the paper investigates the applicability of the constraint cutting algorithm for solving the second-best problem under elastic demand which is formulated as a bilevel programming problem. The approach is shown to perform well despite several problems encountered by our previous work in Shepherd and Sumalee (2004). The paper then applies the algorithm to a small sized network to investigate the policy implications of the first and second-best cases. This policy analysis demonstrates that the joint first best structure is to invest in the most direct routes while reducing capacities elsewhere. Whilst unrealistic this acts as a useful benchmark. The results also show that certain second best policies can achieve a high proportion of the first best benefits while in general generating a revenue surplus. We also show that unless costs of capacity are known to be low then second best tolls will be affected and so should be analysed in conjunction with investments in the network