Product Quality and Market Size

Recent literature notes that when quality is produced with fixed costs, a high quality firm can undercut its rival's prices and may find it profitable to invest more in quality as market size grows large. As a result, a market can remain concentrated even as it grows large. When quality is produced with variable costs, by contrast, a wide range of product qualities can coexist in the market because they are offered at different prices. Larger markets will fragment and offer products with a wider range of qualities. Using US urban areas as markets, we examine the relationships between market size and product quality - and between market size and product concentration - for two industries that differ in their quality production process. We document that in the restaurants industry, where quality is produced largely with variable costs, the range of qualities on offer increases in market size, with each product maintaining a small market share. In daily newspapers, where quality is produced with fixed costs, the average quality of products increases with market size, and the market does not fragment as it grows large.

Modeling multiple time scales during glass formation with phase-field crystals

The dynamics of glass formation in monatomic and binary liquids are studied numerically using a microscopic field theory for the evolution of the time-averaged atomic number density. A stochastic framework combining phase field crystal free energies and dynamic density functional theory is shown to successfully describe several aspects of glass formation over multiple time scales. Agreement with mode coupling theory is demonstrated for underdamped liquids at moderate supercoolings, and a rapidly growing dynamic correlation length is found to be associated with fragile behavior.Comment: 4+ pages, 4 figures, to appear in Physical Review Letter

Mergers, Station Entry, and Programming Variety in Radio Broadcasting

Free entry into markets with decreasing average costs and differentiated products can result in an inefficient number of firms and suboptimal product variety. Because new firms and products draw their customers in part from existing products, concentration can affect incentives to enter as well as how to position products. This paper examines how product variety in the radio industry is affected by changes in ownership structure. While it is in general difficult to measure the effect of concentration on other factors such as the number of products and the extent of product variety, the 1996 Telecommunications Act substantially relaxed local radio ownership restrictions, giving rise to a major and exogenous consolidation wave. Between 1993 and 1997 the average Herfindahl index in major US media markets increased by almost 65 percent. Using a panel data set on 243 U.S. radio broadcast markets in 1993 and 1997, we find that concentration reduces entry and increases product variety. Our results are consistent with spatial preemption. Jointly owned stations broadcasting from the same market are more likely than unrelated stations - and more likely than jointly owned stations in different markets - to broadcast in similar formats.

Public Radio in the United States: Does It Correct Market Failure or Cannibalize Commercial Stations?

Radio signals are pure public goods whose total value to society is the sum of their value to advertisers and listeners. Because broadcasters can capture only part of the value of their product as revenue, there is the potential for a classic problem of underprovision. Small markets have much less commercial program variety than larger markets, suggesting a possible underprovision problem. Public funding of radio broadcasting targets programming in three formats - news, classical music, and jazz - with at least some commercial competition. Whether public support corrects a market failure depends on whether the market would have provided similar services in the absence of public broadcasting. To examine this we ask whether public and commercial classical stations compete for listening share and revenue. We then directly examine whether public stations crowd out commercial stations. We find evidence consistent with the view that public broadcasting crowds out commercial programming in large markets, particularly in classical music and to a lesser extent in jazz. Although the majority of government subsidies to radio broadcasting are allocated to stations without commercial competition in their format (thereby possibly correcting inefficient market underprovision), roughly a quarter of subsidies support direct competition with existing commercial stations.

The Logistics Considerations of the Landing Ship Tank and its Evolution as an Auxiliary Repair Ship in World War II

This study reveals how the US Navy’s Landing Ship Tank (LST) of World War II functioned in logistics support roles from the outset of its wartime participation and to a greater degree than many military planners ever envisioned. The ship’s simple design proved so versatile that, within one year of the first LST, the Navy began converting dozens of the ships to Landing Craft Repair Ships (ARL) and other auxiliary classes supporting myriad naval logistics tasks. Both the standard LST and the ARL made significant logistics contributions to the war effort well beyond amphibious assaults

Optimal Product Variety in Radio Markets

A vast theoretical literature shows that inefficient market structures may arise in free entry equilibria. Previous empirical work demonstrated that excessive entry may obtain in local radio markets. Our paper extends that literature by relaxing the assumption that stations are symmetric, allowing instead for endogenous station differentiation along both (observed) horizontal and (unobserved) vertical dimensions. We find that, in most broadcasting formats, a social planner who takes into account the welfare of market participants (stations and advertisers) would eliminate 50%–60% of the stations observed in equilibrium. In 80%–94.9% of markets that have high quality stations in the observed equilibrium, welfare could be unambiguously improved by converting one such station into low quality broadcasting. In contrast, it is never unambiguously welfare-enhancing to convert an observed low quality station into a high quality one. This suggests local over-provision of quality in the observed equilibrium, in addition to the finding of excessive entry

Experimental Performance Evaluation of a Hyper-Branched Polymer Electrolyte for Rechargeable Li-Air Batteries

A hyper-branched polymer (HBP) electrolyte is synthesized for rechargeable lithium-air (Li-air) battery cell and experimentally evaluated its performance in actual battery cell environment. Several real-world battery cells were fabricated with synthesized HBP electrolyte, pure lithium metal as anode and an oxygen permeable air cathode to evaluate reproducibility of the rechargeable Li-air battery cell. The effect of various conditions such as various HBP based electrolytes, discharge current −0.1~0.5 mA, cathode preparation processes and carbon contents on the battery cell performance were experimentally evaluated using the fabricated battery cells under dry air condition. Detailed HBP electrolyte synthesis procedures and experimental performance evaluation of Li-air battery cell for various conditions are presented. The experimental results showed that different conditions and processes significantly affect the Li-air battery performance. Upon taking into account the effect of different conditions and processes, optimized HBP electrolyte materials, cathode process and conditions were determined. Several Li-air battery cells were fabricated with optimized conditions and optimized battery cell materials to determine the reproducibility and performance consistency. Experimental results showed that over 55–65 h of discharge occurred over 2.5 V terminal cell voltage with all three optimized Li-air battery cells. It implied that the optimized Li-air battery cells were reproducible and were able to hold charge over 2.5 V for more than 2 days. Experimental results of the Li-air battery cell with further refined optimized materials revealed that the battery cell can discharge more than 10 days (i.e., more than 250 h) at or above 2.0 V. The experimental results also showed that the Li-air battery discharge time got shorter as the discharge-charge cycle increases due to increase in internal resistances of battery cell materials. The experimental results confirmed that the lithium-air battery cell can be reproduced without loss of performance and can hold charge more than 10 days at or over 2.0 V. The investigation results obtained may usher a pathway to manufacture a long-life rechargeable Li-air battery cell in the near future