Raising rivals' fixed costs

This paper analyses the strategic use of fixed costs to deter entry or monopolize a market in a standard Cournot framework. First of all a general case shows how the presence of fixed costs can affect the possible equilibria to the Cournot game. It is shown that the presence of a firm with a first-mover advantage can have important implications if fixed costs are raised. In addition the forward induction process becomes important in determining plausible equilibria. The use of firstly regulation and secondly ‘nuisance’ law-suits are considered as strategies to increase fixed costs

The vulnerability of the Australian beef industry to impacts of the cattle tick (Boophilus microplus) under climate change

An integrated assessment is presented of the potential impacts of the cattle tick (Boophilus microplus Canestrini) on the Australian beef industry under climate change. The project was carried out as a case study to test an impact assessment approach that was designed to integrate biological, production and socio-economic impacts on managed and natural systems. A climate-driven, tick population model was run for European, zebu and crossbred cattle breeds having different levels of resistance to cattle ticks. A geographical information system (GIS) was used to organise spatial data on climate scenarios and industry statistics and to undertake regional analyses. A comparison was made of the two available approaches to conducting impact assessments, namely a bottom-up approach using sensitivity analysis and a top-down approach using climate change scenarios from a global circulation model (GCM) (CSIRO, 1996). The output, in terms of the abundance of tick populations and reductions in cattle productivity for each breed showed significant expansions in potential geographical impacts. In the absence of any adaptation measures, the results indicated changes in the losses in live weight gain of cattle tick ranging from 7780 tonnes per year by 2030 to 21637 tonnes per year by 2100, in comparison with estimates for current losses of 6594 tonnes per year. The principal adaptation options available to the beef industry are to switch to breeds that are more resistant to cattle ticks, or to increase the frequency of treatments with various tick control products. In this paper we focus on switching breeds as an adaptive measure when appropriate damage thresholds are triggered under the climate change scenarios. When adaptation measures were put in place, the losses ranged from 4962 tonnes in 2030 to 5619 tonnes in 2100 compared with 2636 tonnes at present if all producers adopted the optimal breed structure. Optimal breed structure was defined as one that would prevent tick numbers per animal exceeding 100 ticks per animal for European and 700 ticks per animal for crossbred breeds of cattle in any week of the year under a tick control strategy that was suitable for present climatic conditions. The lower threshold for European breeds reflects their vulnerability to explosive increases in numbers because of their low resistance to ticks. The results of the analyses using the GCM scenarios were used in an economic model to calculate costs of lost live-weight gain for 2030, 2070 and 2100. The greatest increases in costs were incurred in the southern parts of the current distribution in Queensland and potentially in northern New South Wales if the present quarantine barrier failed. Given the great uncertainty of the nature of possible regional changes in climate, analyses of the sensitivity of losses in live weight gain to changes in climatic variables were also undertaken. The analyses included a measure of likely impacts of cattle tick on the beef cattle industry, in the absence of adaptation measures, as a baseline measure of sensitivity. The likely impacts on crossbred cattle were insensitive to the climatic variables. When adaptive breed changes were allowed, the economic impacts on the industry were insensitive to the GCM scenarios. This suggests that, at least in this instance, reducing the uncertainties in climate change scenarios is not a priority if the adaptation strategies can be implemented in a cost-effective manner. Finally we made a qualitative assessment of the sustainability and robustness of alternative approaches to adaptation and assessed regional vulnerability to cattle tick under climate change. The conclusions were so strongly dependent on assumptions about the future of other global changes, in particular the ability to maintain quarantine barriers and to retain effective acaricides at comparable costs to the present, that we strongly recommend that risk assessments of climate change extend to all relevant variables in involved in global change where possible

Way Out West: Mapping Western Australia

Western Australia, like Tasmania, can slip too easily off the map, a periphery on the periphery, its significance occluded by the hegemony of the eastern states of Australia. Yet Western Australia is core to Australia's economy, not least through mining, and through its proximity to Asia. The West is itself connected more closely to region, in both the local and transnational senses. Its tradition of secessionist thinking indicates a kind of exceptionalist culture. This is a difference which begs for explanation. This essay introduces some motifs and themes of this special issue of Thesis Eleven, entitled 'Way Out West: Mapping Western Australia'. It locates the West in some recent historical, geographical and narrative context. It gestures toward the biography of its editors, Jon Stratton and Peter Beilharz, and their locations spread across the west and east of the continent. It calls for further scrutiny of these, and other antipodes. © Thesis Eleven Pty, Ltd., SAGE Publications.

Incorporating Resilience in the Assessment of Inclusive Wealth: An Example from South East Australia

Inclusive wealth, Resilience, Shadow prices, Sustainable development,

Finding Ivan Vladislavić - Writing the city

The work of Ivan Vladislavić is well established in his native South Africa, and increasingly recognized on the larger world stage of writing, editing and publishing. If his work nevertheless eludes scrutiny in some quarters, this may also have to do with its nature, and not only with its origin. The works differ and vary; there is no formula or project which proceeds neatly by sequence. No single work can be second-guessed from any other. This is a project full of surprises, connecting variously to art, photography, architecture and to urban studies, setting to work images and practices at once realist and surreal, absurdist and layering, and given to time and place and the universal. How then do we read it, and how does he write? For the purposes of this paper, we explain and locate our enthusiasm with reference to two works, The Restless Supermarket (2001) and Portrait with Keys (2006). We seek to identify some key tropes about place and place-writing and cities and city-writing with reference to Johannesburg and the way in which Vladislavic plays his subjects and his readers, placing not only fiction (or realism) under question but placing writing itself closer to the editor's deletion mark. This may be, we suggest, a kind of writing sideways. © Thesis Eleven Pty, Ltd., SAGE Publications