Do Incumbents Improve Service Quality in Response to Entry? Evidence from Airlines’ On-Time Performance

We examine if and how incumbent firms respond to entry, and entry threats, using non-price modes of competition. Our analysis focuses on service quality within the airline industry. We find that incumbent on-time performance actually worsens in response to entry, and even entry threats, by Southwest Airlines. Given Southwest’s general superiority in on-time performance, this result is consistent with equilibria of theoretical models of quality and price competition, which generally predict differentiation along quality. We corroborate this intuition with further analysis, showing there is no notable response by incumbents when an airline with average on-time performance (Continental) threatens to enter or enters a route.

The Competitive Causes and Consequences of Customer Satisfaction

We conduct two studies to test three hypotheses: (1) Competition increases a firm's customer satisfaction; (2) Rivals' customer satisfaction increases a firm's customer satisfaction; (3) Rivals' customer satisfaction reduces a firm's sales. First, we use store-level customer satisfaction data from a supermarket chain. Next, we consider a range of industries, using brand-level customer satisfaction ratings from the American Customer Satisfaction Index. Results from both studies provide support for the latter two hypotheses, while we only find support for the first hypothesis in the second study.Customer Satisfaction, Food retailing, Competitive Strategy, Consumer/Household Economics,

Gender Bias in Power Relationships: Evidence from Police Traffic Stops

[Excerpt] We test for the existence of gender bias in power relationships. Specifically, we examine whether police officers are less likely to issue traffic tickets to men or to women during traffic stops. Whereas the conventional wisdom, which we document with surveys, is that women are less likely to receive tickets, our analysis shows otherwise. Examination of a pooled sample of traffic stops from five locations reveals no gender bias, but does show significant regional variation in the likelihood of citations. Analysis by location shows that women are more likely to receive citations in three of the five locations. Men are more likely to receive citations in the other two locations. To our knowledge, this study is the first to test for gender bias in traffic stops, and clearly refutes the conventional wisdom that police are more lenient towards women

Is Dual Agency in Real Estate Transactions a Cause for Concern?

We study dual agency in residential real estate, where the same agent/agency represents both the buyer and seller. We assess the extent to which dual agency suffers from an inherent conflict of interest, where the dual agent furthers the interest of one client at the expense of the other client’s, as well as principal-agent incentive misalignment where the agent furthers her own interest at the expense of one or both clients. And, we examine how these incentive conflicts affect agent behavior and transaction outcomes. To do so, we analyze 10,891 residential real estate transactions in Long Island, NY, from 2004- 2007. Specifically, we (i) identify how dual agency is correlated with house prices and time-to-sale, (ii) describe and assess agent behaviors that could generate these correlations, and (iii) provide some intuition as to the economic effects of prohibiting dual agency in real estate transactions. We find that the incidence of dual agency is uncorrelated with sale price and negatively correlated with time-to-sale. However, on very fast deals, list prices and sale prices are significantly higher on houses sold via dual agency. These findings are consistent with first-resort selling (agents first showing houses to in-house buyer clients) and strategic pricing (agents inducing their seller clients to set a higher list price in anticipation of an internal client agreeing to it) on some deals, in conjunction with agents leaning on sellers to accept a lower sale price on other deals. First-resort selling is indicative of incentive misalignment, while the latter two behaviors reflect a conflict of interest: strategic pricing transfers surplus from the buyer to the seller, and leaning on the seller transfers surplus from the seller to the buyer. Further, our results indicate little difference between dual-agent (same agent) and within-agency (same agency, but different agent) deals. Our findings provide some evidence of distorted outcomes associated with dual agency, mainly on fast deals, but the evidence indicates mild overall effects, suggesting that prohibiting the practice is not likely to substantially increase welfare.

Do the Best Companies to Work for Provide Better Customer Satisfaction?

[Excerpt] Using data from both the American Customer Satisfaction Index (ACSI) and Fortune Magazine’s lists of Best Companies, we examine the relationship between making the “Best 100” list and customer satisfaction. Based on a subset of the Best 100 in each year from 1994 to 2002, we find strong evidence that firms on the list earn higher customer satisfaction ratings than firms not on the list. This result is stronger for firms in the service sector than for those in the manufacturing sector. Our analysis also suggests that the increase in customer satisfaction resulting from Best Company status yields about a 1.6 percent increase in return on assets

Quantized conductance and its correlation to the supercurrent in a nanowire connected to superconductors

We report conductance and supercurrent of InAs nanowires coupled to Al-superconducting electrodes with short channel lengths and good Ohmic contacts. The nanowires are suspended 15\,nm above a local gate electrode. The charge density in the nanowires can be controlled by a small change in the gate voltage. For large negative gate voltages, the number of conducting channels is reduced gradually and we observe a stepwise decrease of both conductance and critical current before the conductance vanishes completely

Subspace confinement : how good is your qubit?

The basic operating element of standard quantum computation is the qubit, an isolated two-level system that can be accurately controlled, initialized and measured. However, the majority of proposed physical architectures for quantum computation are built from systems that contain much more complicated Hilbert space structures. Hence, defining a qubit requires the identification of an appropriate controllable two-dimensional sub-system. This prompts the obvious question of how well a qubit, thus defined, is confined to this subspace, and whether we can experimentally quantify the potential leakage into states outside the qubit subspace. We demonstrate how subspace leakage can be characterized using minimal theoretical assumptions by examining the Fourier spectrum of the oscillation experiment

Nucleotide sequence of the luxA gene of Vibrio harveyi and the complete amino acid sequence of the alpha subunit of bacterial luciferase

The nucleotide sequence of the 1.85-kilobase EcoRI fragment from Vibrio harveyi that was cloned using a mixed-sequence synthetic oligonucleotide probe (Cohn, D. H., Ogden, R. C., Abelson, J. N., Baldwin, T. O., Nealson, K. H., Simon, M. I., and Mileham, A. J. (1983) Proc. Natl. Acad. Sci. U.S.A. 80, 120-123) has been determined. The alpha subunit-coding region (luxA) was found to begin at base number 707 and end at base number 1771. The alpha subunit has a calculated molecular weight of 40,108 and comprises a total of 355 amino acid residues. There are 34 base pairs separating the start of the alpha subunit structural gene and a 669-base open reading frame extending from the proximal EcoRI site. At the 3' end of the luxA coding region there are 26 bases between the end of the structural gene and the start of the luxB structural gene. Approximately two-thirds of the alpha subunit was sequenced by protein chemical techniques. The amino acid sequence implied by the DNA sequence, with few exceptions, confirmed the chemically determined sequence. Regions of the alpha subunit thought to comprise the active center were found to reside in two discrete and relatively basic regions, one from around residues 100-115 and the second from around residues 280-295

On the Cutoff Dependence of the Quark Mass Parameter in Angular Ordered Parton Showers

We show that the presence of an infrared cutoff $Q_0$ in the parton shower (PS) evolution for massive quarks implies that the generator quark mass corresponds to a $Q_0$-dependent short-distance mass scheme and is therefore not the pole mass. Our analysis considers an angular ordered parton shower based on the coherent branching formalism for quasi-collinear stable heavy quarks and splitting functions at next-to-leading logarithmic (NLL) order, and it is based on the analysis of the peak of hemisphere jet mass distributions. We show that NLL shower evolution is sufficient to describe the peak jet mass at full next-to-leading order (NLO). We determine the relation of this short-distance mass to the pole mass at NLO. We also show that the shower cut $Q_0$ affects soft radiation in a universal way for massless and quasi-collinear massive quark production. The basis of our analysis is (i) an analytic solution of the PS evolution based on the coherent branching formalism, (ii) an implementation of the infrared cut $Q_0$ of the angular ordered shower into factorized analytic calculations in the framework of Soft-Collinear-Effective-Theory (SCET) and (iii) the dependence of the peak of the jet mass distribution on the shower cut. Numerical comparisons to simulations with the HERWIG 7 event generator confirm our findings. Our analysis provides an important step towards a full understanding concerning the interpretation of top quark mass measurements based on direct reconstruction.Comment: 110 pages, 23 figures; v2: improved version, references updated, typos eliminate