Analysis of the Properties of Current Penalty Schemes for Violations of Antitrust Law

The main feature of the penalty schemes described in current sentencing guidelines is that the fine is based on the accumulated gains from cartel or price-fixing activities for the firm.These gains are usually difficult to estimate, but they can be approximated by a fraction of the turnover.The regulations thus suggest modeling the penalty as an increasing function of the accumulated illegal gains from price-fixing to the firm, so that the history of the violation is taken into account.We incorporate these features of the penalty scheme into an optimal control model of a profit-maximizing firm under antitrust enforcement.In order to determine the effect of taking into account "the history of the violation", we compare the outcome of this model with a model where the penalty is fixed.The main result of the analysis of the later model is that complete deterrence can be achieved only at the cost of shutting down the firm. The proportional scheme improves upon the fixed penalty since it can ensure complete deterrence in the long run, even when penalties are moderate. Phase-diagram analysis shows that the higher the probability and severity of punishment, the sooner cartel formation is blocked.Further, a sensitivity analysis is provided to show which strategies are most successful in reducing the degree of price-fixing.It turns out that, when the penalties are already high, the antitrust policy aiming at a further increase in the severity of punishment is less efficient than the policy that increases the probability of punishment.antitrust;law;policy

Analysis of Current Penalty Schemes for Violations of Antitrust Laws

The main feature of the penalty schemes described in current sentencing guidelines is that the fine is based on the accumulated gains from cartel activities or price-fixing activities for the firm. The regulations suggest modeling the penalty as an increasing function of the accumulated illegal gains from price fixing to the firm, so that the history of the violation is taken into account. We incorporate these features of the penalty scheme into an optimal control model of a profit-maximizing firm under antitrust enforcement. To determine the effect of taking into account the history of the violation, we compare the outcome of this model with a model where the penalty is fixed. The analysis of the latter model implies that complete deterrence can be achieved only at the cost of shutting down the firm. The proportional scheme improves upon the fixed penalty, since it can ensure complete deterrence in the long run, even when penalties are moderate. Phase-diagram analysis shows that, the higher the probability and severity of punishment, the sooner cartel formation is blocked. Further, a sensitivity analysis is provided to show which strategies are most successful in reducing the degree of price fixing. It turns out that, when the penalties are already high, the antitrust policy aiming at a further increase in the severity of punishment is less efficient than the policy that increases the probability of punishment.Optimal Control; Dynamic Analysis; Antitrust Policy; Antitrust Laws

Public and private benefits from Shelterbelt Centre activities

Non-Peer ReviewedThe Agriculture and Agri-Food Canada – Prairie Farm Rehabilitation Administration (AAFC–PFRA) Shelterbelt Centre was established at Indian Head in 1901 and since then has been a major source of tree seedlings to prairie farmers and to other eligible interested agencies. The Centre has distributed over 576 million tree seedlings. On farms, these shelterbelts have become an important resource, both to the producers as well as to the society as a whole. A survey of producers attending the Shelterbelt Centre Field Day in 2003, indicated that shelterbelts lived up to their expectations and that both society and producers derive benefits from them. They affect the producers and society in a variety of ways – some directly and others indirectly through ecosystem functions. Based on the study, this value to the society (other than land owners) of the shelterbelts established since 1981 could exceed $150 million, and can even be as high as$940 million. Major benefits accrue from carbon sequestration, wildlife habitats and related activities, and from energy conservation. These benefits, although apparent to most of us, are difficult to estimate precisely, and require better data and an interdisciplinary approach

Silvopasture principles and potential in Saskatchewan

Non-Peer ReviewedSilvopasture is a concept in which woody species are intentionally combined with forage crops and livestock in a production system that optimizes the productivity or the economic benefits of the trees and the animals in a sustainable way. A review is presented of silvopasture research relevant to Saskatchewan conditions. In particular, silvopasture principles, as they apply to the co-management of animals with planted or natural forest stands will be explored. Silvopasture practices that are more or less commonly found in Canada include: the use of livestock to control weeds in new plantations; the planting or management of trees and shrubs as livestock windbreaks or for shade; and livestock grazing in natural deciduous, conifer or mixed forests

Citizen Volunteers in Prison: Bringing the Outside in, Taking the Inside out

The United States correctional system relies heavily on citizen volunteers, but there is little contemporary research on prison volunteers, which is further limited by sample and geographic region. The purpose of this project was to explore the role of citizen volunteers, including investigating why they volunteer and what their experiences with inmates and prison staff are like. Semi-structured interviews were conducted with citizen volunteers in the penal system of a Midwestern state. Volunteers had altruistic or faith-based motivations, viewing themselves as ‘seed planters’ but not saviors, and placing priority on building relationships. They described how volunteering transformed their views on inmates and the prison system. Volunteers appeared to gain awareness of and appreciation for the problems associated with both serving time and reentry. Additional research on the role of citizen volunteers is needed to improve recruiting and retention of volunteers, and to better evaluate and develop programs for current and reentering inmates

Calcium-binding capacity of organic and inorganic ortho- and polyphosphates

The aim of this research was to determine the calcium-binding capacity of inorganic and organic ortho- and polyphosphates. This calcium-binding capacity can be used to influence the stability of, for example, casein micelles in dairy systems. Four phosphates were selected: disodium uridine monophosphate (Na2UMP, organic orthophosphate), disodium hydrogen phosphate (Na2HPO4, inorganic orthophosphate), sodium phytate (SP, organic polyphosphate), and sodium hexametaphosphate (SHMP, inorganic polyphosphate). Concentrations of up to 100 mmolL-1 phosphate were added to a 50 mmolL-1 CaCl2 solution. The samples were prepared at pH 8.0 and were analyzed before and after sterilization for calcium-ion activity, conductivity, pH, sediment, and turbidity. Both SHMP and SP are strong chelators, as calcium ions bind to these phosphates in the ratio of 3:1 and 6:1, respectively. Calcium ions also strongly bind to Na2HPO4, but in a ratio of 3:2 with insoluble Ca3(PO4)2 complexes as result. The equilibrium position of Na2UMP is not strong towards the chelated complex, and significant levels of free calcium and free phosphate can exist. An equilibrium constant of Lmol-1 was determined for calcium uridine monophosphate (CaUMP) complexes. Both calculation of the equilibrium constant and analysis on the CaUMP precipitate confirmed a reactivity of 1:1 between calcium and Na2UMP. The CaUMP complexes are well soluble at ambient temperature, and insoluble complexes appear after sterilization, because the solubility of CaUMP decreases during heating. Finally, we concluded that the structure of phosphate molecules determines their calcium-binding capacity rather than organic or inorganic origin of phosphate

Probiotic Fermented Foods:A scalable approach to promote gut health and improve nutrition

Locally produced probiotic fermented foods can be suitable for a range of appropriate, cost-effective, scalable, and sustainable approaches implemented at the household, community, and market levels

Evaluating Cropland N2O Emissions and Fertilizer Plant Greenhouse Gas Emissions With Airborne Observations

Agricultural activity is a significant source of greenhouse gas emissions. The fertilizer production process emits N2O, CO2, and CH4, and fertilized croplands emit N2O. We present continuous airborne observations of these trace gases in the Lower Mississippi River Basin to quantify emissions from both fertilizer plants and croplands during the early growing season. Observed hourly emission rates from two fertilizer plants are compared with reported inventory values, showing agreement for N2O and CO2 emissions but large underestimation in reported CH4 emissions by up to a factor of 100. These CH4 emissions are consistent with loss rates of 0.6–1.2%. We quantify regional emission fluxes (100 km) of N2O using the airborne mass balance technique, a first application for N2O, and explore linkages to controlling processes. Finally, we demonstrate the ability to use airborne measurements to distinguish N2O emission differences between neighboring fields, determining we can distinguish different emission behaviors of regions on the order of 2.5 km2 with emissions differences of approximately 0.026 μmol m−2 s−1. This suggests airborne approaches such as outlined here could be used to evaluate the impact of different agricultural practices at critical field‐size spatial scales.Key PointsReported N2O and CO2 emissions from fertilizer plants agree with observations, but CH4 is underestimated by orders of magnitudeWe demonstrate mass balance quantification of N2O emissions from agriculture at 10–100 km scalesAirborne measurements can observe and quantify N2O emission differences between agricultural fields of ∼2.5 km2Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/156438/3/jgrd56401.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/156438/2/jgrd5640-sup-0001-Figure_SI-S01.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/156438/1/jgrd56401_am.pd