Delivered versus Mill Nonlinear Pricing in Free Entry Markets

This paper discusses a model where consumers simultaneously differ according to one unobservable (preference for quality) and one observable characteristic (location). In these circumstances nonlinear prices arise in equilibrium. The main question addressed in this work is whether firms should be allowed to practise different nonlinear prices at each location (delivered nonlinear pricing) or should be forced to set an unique nonlinear contract (mill nonlinear pricing). Assuming that firms can costless relocate, we show that the free entry long-run number of firms may be either smaller, equal, or higher under delivered nonlinear pricing. In addition, we show that delivered nonlinear pricing yields in the long-run higher welfare and, consequently, our results support the view that discriminatory nonlinear pricing should not be prohibited.Delivered nonlinear pricing, Mill nonlinear pricing, Asymmetric information, Pricing regulation

Entry Decision and Pricing Policies

We extend the analysis of the impact of firms' pricing policies upon entry to a framework where price competition and differentiated products are present. We consider a model where an incumbent serves two distinct and independent geographical markets and an entrant may enter in one of the markets. Entry under discriminatory pricing is more likely than under uniform pricing when entry is profitable under discriminatory pricing but unprofitable under uniform pricing. Our results show entry under discriminatory pricing may be more, less or equally likely than under uniform pricing. We show that the degree of product substitutability affects the impact of pricing policies upon entry decision.Entry, Product Differentiation, Discriminatory Pricing, Uniform Pricing

Productivity of Nations: a Stochastic Frontier Approach to Tfp Decomposition

This Paper Tackles the Problem of Aggregate Tfp Measurement Using Stochastic Frontier Analysis (Sfa). Data From Penn World Table 6.1 are Used to Estimate a World Production Frontier For a Sample of 75 Countries Over a Long Period (1950-2000) Taking Advantage of the Model Offered By Battese and Coelli (1992). We Also Apply the Decomposition of Tfp Suggested By Bauer (1990) and Kumbhakar (2000) to a Smaller Sample of 36 Countries Over the Period 1970-2000 in Order to Evaluate the Effects of Changes in Efficiency (Technical and Allocative), Scale Effects and Technical Change. This Allows Us to Analyze the Role of Productivity and Its Components in Economic Growth of Developed and Developing Nations in Addition to the Importance of Factor Accumulation. Although not Much Explored in the Study of Economic Growth, Frontier Techniques Seem to Be of Particular Interest For That Purpose Since the Separation of Efficiency Effects and Technical Change Has a Direct Interpretation in Terms of the Catch-Up Debate. The Estimated Technical Efficiency Scores Reveal the Efficiency of Nations in the Production of Non Tradable Goods Since the Gdp Series Used is Ppp-Adjusted. We Also Provide a Second Set of Efficiency Scores Corrected in Order to Reveal Efficiency in the Production of Tradable Goods and Rank Them. When Compared to the Rankings of Productivity Indexes Offered By Non-Frontier Studies of Hall and Jones (1996) and Islam (1995) Our Ranking Shows a Somewhat More Intuitive Order of Countries. Rankings of the Technical Change and Scale Effects Components of Tfp Change are Also Very Intuitive. We Also Show That Productivity is Responsible For Virtually All the Differences of Performance Between Developed and Developing Countries in Terms of Rates of Growth of Income Per Worker. More Important, We Find That Changes in Allocative Efficiency Play a Crucial Role in Explaining Differences in the Productivity of Developed and Developing Nations, Even Larger Than the One Played By the Technology Gap

Productivity of Nations: a stochastic frontier approach to TFP decomposition

This paper tackles the problem of aggregate TFP measurement using stochastic frontier analysis (SFA). Data from Penn World Table 6.1 are used to estimate a world production frontier for a sample of 75 countries over a long period (1950-2000) taking advantage of the model offered by Battese & Coelli (1992). We also apply the decomposition of TFP suggested by Bauer (1990) and Kumbhakar (2000) to a smaller sample of 36 countries over the period 1970-2000 in order to evaluate the effects of changes in efficiency (technical and allocative), scale effects and technical change. This allows us to analyze the role of productivity and its components in economic growth of developed and developing nations in addition to the importance of factor accumulation. Although not much explored in the study of economic growth, frontier techniques seem to be of particular interest for that purpose since the separation of efficiency effects and technical change has a direct interpretation in terms of the catch-up debate. The estimated technical efficiency scores reveal the efficiency of nations in the production of non tradable goods since the GDP series used is PPP-adjusted. We also provide a second set of efficiency scores corrected in order to reveal efficiency in the production of tradable goods and rank them. When compared to the rankings of productivity indexes offered by non-frontier studies of Hall & Jones (1996) and Islam (1995) our ranking shows a somewhat more intuitive order of countries. Rankings of the technical change and scale effects components of TFP change are also very intuitive. We also show that productivity is responsible for virtually all the differences of performance between developed and developing countries in terms of rates of growth of income per worker. More important, we find that changes in allocative efficiency play an important role in explaining differences in the productivity of developed and developing nations, even larger than the one played by the technology gap.Total factor productivity, stochastic frontiers, technical change, technical efficiency, allocative efficiency, scale efficiency, convergence

Delivered versus Mill Nonlinear Pricing in Free Entry Markets

This paper discusses a model where consumers simultaneously differ according to one unobservable (preference for quality) and one observable characteristic (location). In these circumstances nonlinear prices arise in equilibrium. The main question addressed in this work is whether firms should be allowed to practise different nonlinear prices at each location (delivered nonlinear pricing) or should be forced to set an unique nonlinear contract (mill nonlinear pricing). Assuming that firms can costless relocate, we show that the free entry long-run number of firms may be either smaller, equal, or higher under delivered nonlinear pricing. In addition, we show that delivered nonlinear pricing yields in the long-run higher welfare and, consequently, our results support the view that discriminatory nonlinear pricing should not be prohibited.Delivered nonlinear pricing, Mill nonlinear pricing, Asymmetric information, Pricing regulation

Delivered versus Mill Nonlinear Pricing in Free Entry Markets

This paper discusses a model where consumers simultaneously differ according to one unobservable (preference for quality) and one observable characteristic (location). In these circumstances nonlinear prices arise in equilibrium. The main question addressed in this work is whether firms should be allowed to practise different nonlinear prices at each location (delivered nonlinear pricing) or should be forced to set an unique nonlinear contract (mill nonlinear pricing). Assuming that firms can costless relocate, we show that the free entry long-run number of firms may be either smaller, equal, or higher under delivered nonlinear pricing. In addition, we show that delivered nonlinear pricing yields in the long-run higher welfare and, consequently, our results support the view that discriminatory nonlinear pricing should not be prohibited.

ISO 9001 Quality Management Systems: Critical Analysis of Literature Review

Purpose and Methodology/Approach: This paper follows a previous one focused on a bibliographic review of motivations, benefits and difficulties in implementing quality management systems (QMS) based on ISO 9001 standard (Saraiva et al, 2017). Controversial, conflicting and even contradictory, and/or non-consensual findings in same or different countries have suggested other dimensions were lacking. So, a further and critical analysis was deepened in order to identify possible flaws in dimensions of analysis and in methodological issues, which is the scope of this paper. Findings: Many research works were based on perceptions/opinions (eg. motivations, benefits, difficulties) and tangible results were missing, being conclusions built only on qualitative data. Quantitative data were not used to objectivize and validated qualitative findings. Physical or economic indicators rarely were presented. Researchers may not have asked for quantitative data or even ignore these aspects of organizational reality, or the organizations also do not have this type of data. It is hard to corroborate statements (from company’s managers) or findings (from researchers) without other objective evidences (examples are: motivations influence the QMS performance; cost reduction is a benefit; the biggest difficulties in implementation/certification of QMS are the excessive and complex (bureaucratic) documentation, the weak commitment to quality by management and staff, the high cost/scarce resources and the time spent with the additional tasks for the implementation process; organizations operating an ISO 9001 QMS show a better performance). Another matters such as the relative size of the certification phenomenon in each country or region and their economic and social development were generally unknown or were not taken into account. These contextual factors can distort findings. The scientific affiliation of researchers (eg. Industrial engineering, Management, Sociology, Organizational psychology) may also have implications for the research perspective and aspects that are privileged in analysis and conclusions. Research Limitation/implication: Additionally, other methodological issues can also be related to data collection instruments (eg. questionnaires to collect perceptions/opinions) are not the most appropriate for achieving some desired information or data processing does not validate conclusions. Thus, we will take into account in our future research these limitations we have identified in this one and strongly recommend to other researchers our conclusions. Originality/Value of paper:These reflections and findings suggest further and deeper work for research in QMS and other related topics, looking for those dimensions already identified as missing, and/or considering more dimensions, bearing in mind concerns that quality movement is losing popularity, because it does not appear to managers consistently with quantitative data proving contributions of quality to increase productivity and competitiveness. Finally, we raise methodological questions about research on these topics, and other dimensions of analysis are recommended

Does banning price discrimination promote entry and increase welfare? A model of differentiated-product duopoly with asymmetric markets

In this paper we investigate the impact of firms’ pricing policies upon entry and welfare under duopoly price competition and product differentiation. We consider a model where an incumbent serves two distinct and independent geographical markets and an entrant may enter in one of the markets. Our results show that discriminatory pricing may be either more, less or equally favorable to entry than uniform pricing. The welfare effect of banning price discrimination is also ambiguous. However, the case for banning price discrimination is much weaker than under monopoly. Interestingly, discriminatory pricing may yield higher welfare even when entry occurs only under uniform pricing

Delivered versus mill nonlinear pricing with endogenous market structure

This paper discusses a model where consumers differ according to one unobservable (preference for quality) and one observable characteristic (location), with nonlinear prices arising in equilibrium. The main question addressed is whether firms should be allowed to practice different nonlinear prices at each location (delivered nonlinear pricing) or should be forced to set a unique nonlinear contract (mill nonlinear pricing). Assuming that firms can costless relocate, we show that the free entry long-run number of firms may be smaller, equal, or higher under delivered nonlinear pricing. Moreover, delivered nonlinear pricing yields higher long-run welfare when (i) fixed costs are low and when (ii) fixed costs are intermediate and consumer types are not very similar

Shipping and sustainability liquefied natural gas as an alternative fuel : evidence from Portugal

O transporte marítimo é um elo vital do comércio mundial graças à sua capacidade, confiabilidade e relação custo-eficácia no transporte de grande quantidade de bens; nenhum outro modo de transporte consegue alcançar tais economias de escala. Mas este argumento subestima os custos reais. A frota marítima internacional, excluindo barcos de pesca e navios militares, produziu em 2012 cerca de 796 milhões de toneladas (Mt) de dióxido de carbono (CO2) e 816 Mt de dióxido de carbono equivalente (CO2e) de gases de efeito de estufa (GEE) combinando dióxido de carbono (CO2), metano (CH4) e óxido nitroso (N2O) correspondendo a cerca de 3,1% das emissões globais (IMO-International Maritime Organization, 2015; Rahman e Mashud, 2015) e é um dos setores de mais rápido crescimento em termos de emissões de GEE (Gilbert, Bows e Starkey, 2010; Bows-Larkin, 2014) previstas aumentar entre 102% a 193% em relação aos níveis de 2000 até 2050 (Bows-Larkin, 2014), crescendo a uma taxa mais elevada do que a taxa média de todos os outros sectores, com excepção da aviação. Como as emissões marítimas são produzidas, em grande parte, em mar aberto e por navios registados em países de bandeira de conveniência, foram excluídas dos compromissos nacionais no âmbito do Protocolo de Quioto de 1997, que cedeu o controlo à IMO o organismo da ONU responsável pelo sector1. De acordo com o Maritime Knowledge Centre da IMO, a frota mercante mundial de navios com pelo menos 100 gross tonnage (tonelagem bruta) era composta por 93.161 navios no final do ano de 2016. Espera-se que um número crescente de navios mercantes entre em operação nas próximas décadas, nomeadamente navios porta-contentores de grande capacidade, navios metaneiros e outros adstritos a actividades diversificadas como produção, armazenamento e descarga de gás natural e de petróleo (em inglês Floating Production Storage and Offloading - FPSOs). Os combustíveis marítimos tradicionais também produzem emissões de óxido de enxofre (SOx), óxidos de azoto (NOx) e micropartículas e o impacto sobre o ambiente dos poluentes primários e secundários resultantes da combustão do fuelóleo pesado (HFO) tem contribui para a acidificação, eutrofização e formação de ozono (O3) fotoquímico (Bengtsson, 2011). Um efeito particularmente pernicioso na saúde das populações expostas é a mortalidade prematura relacionada com micropartículas inaláveis associadas com o aumento do cancro de pulmão e problemas cardiorrespiratórios (Corbett et al., 2007) e, embora os efeitos nocivos mais graves sejam particularmente sentidos nas zonas costeiras e em áreas próximas das atividades portuárias, estes efeitos também ocorrem no interior dos países devido às condições predominantes dos ventos (Corbett, Fischbeck and Pandis, 1999) incluindo efeitos transfronteiriços (Nore, 2011). Em Portugal e de acordo com o World Resources Institute, as emissões de CO2 com origem nos combustíveis marítimos cresceram 24,5%, entre 2003 e 2012, em linha com o crescimento mundial (de 26,8%) no mesmo período de dez anos (World Resources Institute, 2015). Nesta tese, para efeitos de monetarização das emissões produzidas pela frota mercante nacional serão utilizados os dados do Inventário Nacional de Emissões, dados de 2014, os quais revelam que, embora o contributo do sector para o registo nacional seja mínimo – devido nomeadamente à exiguidade da frota – o potencial de danos causados não é de todo despiciente. Técnicas para aumentar a eficiência energética e tecnologias de mitigação dos efeitos nocivos - scrubbers, (depuradores) e dispositivos catalíticos - têm sido desenvolvidas e implementadas -, no entanto, embora o seu contributo para a descarbonização do sector deva ser levado em conta, estas tecnologias não correspondem à alteração pretendida do paradigma energético e podem constituir um incentivo ao business-as-usual. Por outro lado, o recurso a combustíveis com menor conteúdo de enxofre como o diesel marítimo é contraproducente uma vez que as emissões dos motores a diesel foram recentemente classificadas como cancerígenas pelo Centro Internacional de Investigação do Cancro (Oeder et al, 2015). O que isto significa é que embora o diesel corresponda ao exigido futuramente pelo Regulamento Tier III emitido pela IMO, na realidade não respeita suficientemente as preocupações com a saúde humana. De qualquer modo as refinarias não teriam provavelmente capacidade suficiente de fornecer todo o diesel necessário para abastecer a frota mundial. Por outro lado, as medidas de redução de poluentes emitidas pela IMO poderão ver seus efeitos reduzidos pelo crescimento esperado da atividade marítima nas próximas décadas e são destinadas a ser adoptadas lentamente ao longo de um largo período de tempo e mostram um progresso muito lento no contexto de evitar um aumento de temperatura superior a 2ºC acima dos níveis pré-industriais (Gilbert, 2013; Bows-Larkin, 2014), daí a necessidade urgente de investir em novas tecnologias e em novos tipos de combustíveis.The objective of this Ph.D. thesis is to provide important inputs for the decarbonisation of marine transport and climate change mitigation policies concerning liquefied natural gas (LNG) as a substitute fuel. Real-world results show efficiency gains from LNG compared with traditional fossil fuels burned on-board vessel’s engines even when equipped with mitigation technologies. Yet, this is a necessary but not a sufficient condition to LNG be elected as a substitute fuel. For a fuel switch of such order of magnitude to occur within a major end-use sector, other requirements are to be fulfilled: the government intervention in the public interest, and, to justify such policy intervention, the degree of social acceptability. This is accomplished by developing a social cost-benefit analysis (SCBA) performed at a regional basis after the assessment of the trade-off between the provision level of the good and Portuguese nationals’ disposable income had been examined. SCBA attaches money prices - a metric of everything that everyone can recognise - to as many costs and benefits as possible in order to uniformly weigh the policy objectives. As a result, these prices reflect the value a society ascribe to the paradigm change enabling the decision maker to form an opinion about the net social welfare effects. Empirically, emissions from the Portuguese merchant fleet weighted by their contribution for the National Inventory were used to quantify and monetise externalities compared with benefits from LNG as a substitute marine fuel. Benefits from the policy implementation are those related with the reduction of negative externalities. Costs are those determined from the price nationals are hypothetically willing-to-pay for. Conclusions show that benefits are largely superior to the costs, so action must be taken instead of a doing nothing scenario. Apart from the social ex-ante evaluation, this thesis also imprints the first step for developing furthermore complete studies in this aspect and it can help fill policy makers’ knowledge gap to what concerns to strategic energy options vis-à-vis sustainability stakeholders engagement. Although it addresses Portuguese particularities, this methodology should be applied elsewhere