No Child Left Behind: Flowers don’t grow in the desert

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Explicit Evidence on an Implicit Contract

We offer the first direct evidence of an implicit contract in a goods market. The evidence we offer comes from the market for Coca-Cola. We demonstrate that the Coca-Cola Company left a substantial amount of written evidence of its implicit contract with its consumers—a very explicit form of an implicit contract. The contract represented the promise of a five cent (nominal) price and adherence to the “Secret Formula”. In general, the implicit nature of such contracts makes observation difficult. To overcome this difficulty, we adopt a narrative approach. Based on the analysis of a large number of historical documents obtained from the Coca-Cola Archives and other sources, we offer evidence of the Coca-Cola Company both acknowledging and acting on this implicit contract. We also make another unique contribution by exploring quality as a margin of adjustment available to Coca-Cola. The implicit contract included a promise not only of a constant nominal price but also a constant quality (i.e., 6.5 oz. of the Secret Formula). During a period of over 70 years, we find evidence of only a single case of true quality change. By studying the margin of adjustment the Coca-Cola Company chose in response to changes in market conditions, we demonstrate that the perceived costs of breaking the implicit contract were large. We argue that one piece of direct evidence on the magnitude of these costs is the aftermath “New Coke’s” introduction in 1985.Implicit Contract, Explicit Contract, Invisible Handshake, Customer Market, Long- Term Relationship, Price Rigidity, Nickel Coke, Coca-Cola

"The Real Thing:" Nominal Price Rigidity of the Nickel Coke, 1886-1959

We report that the price of a 6.5oz Coke was 5¢ from 1886 until 1959. Thus, we are documenting a nominal price rigidity that lasted more than 70 years! The case of Coca-Cola is particularly interesting because during the 70-year period there were substantial changes in the soft drink industry as well as two World Wars, the Great Depression, and numerous regulatory interventions and lawsuits, which led to substantial changes in the Coca-Cola market conditions. The nickel price of Coke, nevertheless, remained unchanged. We find that this unusual rigidity is best explained by (1) a contract between the Company and its parent bottlers that encouraged retail price maintenance, (2) a single-coin vending machine technology, which limited the Company's price adjustment options due to limited availability and unreliability of the existing flexible price adjustment technologies, and (3) a single-coin monetary transaction technology, which limited the Company's price adjustment options due to the customer "inconvenience cost." We show that these price adjustment costs are of a different nature than the standard menu cost, and their estimates exceed the existing estimates by an order of magnitude. A possible broader relevance of the nickel Coke phenomenon is discussed in the context of Nickel and Dime Stores, which were popular in the US in the late 1800s and the early 1900s.Sticky Prices, Cost of Adjustment, Menu Cost, Retail Price Maintenance, Single-Coin Vending Machine, Customer Inconvenience Cost, Coca-Cola, Coke, Nickel Coke, Pepsi, Nickel and Dime Stores

Generation of a dynamo magnetic field in a protoplanetary accretion disk

A new computational technique is developed that allows realistic calculations of dynamo magnetic field generation in disk geometries corresponding to protoplanetary and protostellar accretion disks. The approach is of sufficient generality to allow, in the future, a wide class of accretion disk problems to be solved. Here, basic modes of a disk dynamo are calculated. Spatially localized oscillatory states are found to occur in Keplerain disks. A physical interpretation is given that argues that spatially localized fields of the type found in these calculations constitute the basic modes of a Keplerian disk dynamo

Multi-feed cone Cassegrain antenna Patent

Design and operation of multi-feed cone Cassegrain antenn

Applying Bag of System Calls for Anomalous Behavior Detection of Applications in Linux Containers

In this paper, we present the results of using bags of system calls for learning the behavior of Linux containers for use in anomaly-detection based intrusion detection system. By using system calls of the containers monitored from the host kernel for anomaly detection, the system does not require any prior knowledge of the container nature, neither does it require altering the container or the host kernel.Comment: Published version available on IEEE Xplore (http://ieeexplore.ieee.org/document/7414047/) arXiv admin note: substantial text overlap with arXiv:1611.0305

Giant shot noise from Majorana zero modes in topological trijunctions

The clear-cut experimental identification of Majorana bound states in transport measurements still poses experimental challenges. We here show that the zero-energy Majorana state formed at a junction of three topological superconductor wires is directly responsible for giant shot noise amplitudes, in particular at low voltages and for small contact transparency. The only intrinsic noise limitation comes from the current-induced dephasing rate due to multiple Andreev reflection processes

AdS-Carroll Branes

Coset methods are used to determine the action of a co-dimension one brane (domain wall) embedded in (d+1)-dimensional AdS space in the Carroll limit in which the speed of light goes to zero. The action is invariant under the non-linearly realized symmetries of the AdS-Carroll spacetime. The Nambu-Goldstone field exhibits a static spatial distribution for the brane with a time varying momentum density related to the brane's spatial shape as well as the AdS-C geometry. The AdS-C vector field dual theory is obtained.Comment: 47 page

Heterogeneous Convergence

We use U.S. county-level data containing 3,058 cross-sectional observations and 41 conditioning variables to study economic growth and explore possible heterogeneity in growth determination across 32 individual states. Using a 3SLS-IV estimation method, we find that all statistically significant convergence rates (for 32 individual states) are above 2 percent, with an average of 8.1 percent. For 7 states the convergence rate can be rejected as identical to at least one other state’s convergence rate with 95 percent confidence. Convergence rates are negatively correlated with initial income. The size of government at all levels of decentralization is either unproductive or negatively correlated with growth. Educational attainment has a non-linear relationship with growth. The size of the finance, insurance and real estate, and entertainment industries are positively correlated with growth, while the size of the education industry is negatively correlated with growth. Heterogeneity in the effects of balanced growth path determinants across individual states is harder to detect than in convergence rates.Economic Growth, Conditional Convergence, County Level Data