Should profit margins play a more decisive role in merger control? A rejonder to Jorge Padilla

In a recent article in this journal,1 Dr Jorge Padilla discusses a speech that one of us had given on the interrelation between merger control and profit margins.2 The speech had pointed out that, according to empirical research, recent decades have been characterised by a secular trend towards higher profit margins, in particular in the US. From an economic perspective, increased pricing power implies that future horizontal mergers involving firms with high margins are more likely to be problematic than would otherwise be the case. Merger control should therefore be more vigilant when facing an expansion of profit margins in specific sectors or in the economy at large. In his paper, Dr Padilla questions these conclusions. Although he acknowledges that profit margins have a useful role to play in merger analysis, he argues that mergers involving firms with high margins should not be viewed more critically than other transactions. According to his paper, subjecting mergers in industries with high margins to stricter controls would lead to systematic enforcement errors and cannot be justified economically. We welcome the opportunity to continue discussing this important topic and, in this rejoinder, we respond to his arguments. Section II first summarises the economic implications of increased profit margins for merger enforcement. Section III then responds to Dr Padilla’s criticism and the arguments he puts forward to support a cautious application of margin analysis in merger control. Section IV, finally, concludes

Mergers with differentiated products: where do we stand?

On the occasion of the 10th anniversary of the 2010 U.S. Horizontal Merger Guidelines, this article provides an overview of the state of economic analysis of unilateral effects in mergers with differentiated products. Drawing on our experience with merger enforcement in Europe, we discuss both static and dynamic competition, with a special emphasis on the calibration of competitive effects. We also discuss the role of market shares and structural presumptions in differentiated product markets

High-field magnetoresistance of Fe/GaAs/Fe tunnel junctions

We investigate transport through 6 to 10 nm thin epitaxial GaAs(001) barriers sandwiched between polycrystalline iron films. Apart from a pronounced tunneling magnetoresistance effect (TMR) at low magnetic fields we observe a distinct negative magnetoresistance (MR) at low and a positive MR at higher temperatures. We show that the negative MR contribution is only observed for the ferromagnetic iron contacts but is absent if iron is replaced by copper or gold electrodes. Possible explanations of the negative MR involve suppression of spin-flip scattering or Zeeman splitting of the tunneling barrier.Comment: 12 pages, 4 figures, submitted to Appl. Phys. Let

Microbiome diversity and composition varies across body areas in a freshwater turtle

There is increasing recognition that microbiomes are important for host health and ecology, and understanding host microbiomes is important for planning appropriate conservation strategies. However, microbiome data are lacking for many taxa, including turtles. To further our understanding of the interactions between aquatic microbiomes and their hosts, we used next generation sequencing technology to examine the microbiomes of the Krefft's river turtle (Emydura macquarii krefftii). We examined the microbiomes of the buccal (oral) cavity, skin on the head, parts of the shell with macroalgae and parts of the shell without macroalgae. Bacteria in the phyla Proteobacteria and Bacteroidetes were the most common in most samples (particularly buccal samples), but Cyanobacteria, Deinococcus-thermus and Chloroflexi were also common (particularly in external microbiomes). We found significant differences in community composition among each body area, as well as significant differences among individuals. The buccal cavity had lower bacterial richness and evenness than any of the external microbiomes, and it had many amplicon sequence variants (ASVs) with a low relative abundance compared to other body areas. Nevertheless, the buccal cavity also had the most unique ASVs. Parts of the shell with and without algae also had different microbiomes, with particularly obvious differences in the relative abundances of the families Methylomonaceae, Saprospiraceae and Nostocaceae. This study provides novel, baseline information about the external microbiomes of turtles and is a first step in understanding their ecological roles

Gene flow and genetic structure in Nile perch, Lates niloticus, from African freshwater rivers and lakes

Background Geological evolution of the African continent has been subject to complex processes including uplift, volcanism, desert formation and tectonic rifting. This complex geology has created substantial biogeographical barriers, and coupled with anthropogenic introductions of freshwater fishes, has influenced the genetic diversity, connectivity and sub-structuring of the teleost fauna. Nile perch, Lates niloticus, is an iconic fish in Africa and is of high commercial importance, both in the species' native range and where it has been translocated. However, the species is in decline and there is a need to understand its population genetic structure to facilitate sustainable management of the fishery and aquaculture development. Methodology Nile perch tissue samples were acquired from two West and four East (Lakes; Albert, Kyoga, Victoria and Turkana) African locations. Nineteen polymorphic microsatellite loci were used to study the genetic variation among populations across regions (West and East Africa), as well as between native and introduced environments within East Africa. Principal findings and their significance Results revealed strong and significant genetic structuring among populations across the sampled distribution (divergence across regions, FCT = 0.26, P = 0.000). STRUCTURE analysis at a broad scale revealed K = 2 clusters, the West African individuals were assigned to one cluster, while all individuals from the East African region, regardless of whether native or introduced, were assigned to another cluster. The distinct genetic clusters identified in the current study between the West and East African Nile perch, appear to have been maintained by presence of biogeographic barriers and restricted gene flow between the two regions. Therefore, any translocations of Nile perch should be carefully considered across the regions of West and East Africa. Further analysis at a regional scale revealed further structuring of up to K = 3 genetic clusters in East African Nile perch. Significantly (P < 0.05) lower genetic diversity based on analysis of allelic richness (AR) was obtained for the two translocated populations of Lake Kyoga (AR = 3.61) and Lake Victoria (AR = 3.52), compared to Nile perch populations from their putative origins of Lakes Albert (AR = 4.12) and Turkana (AR = 4.43). The lower genetic diversity in the translocated populations may be an indication of previous bottlenecks and may also indicate a difficulty for these populations to persist and adapt to climatic changes and anthropogenic pressures that are currently present in the East African region

A scientific method for startups: Comparing lean and the theory-based view

Recent scholarship has sought to develop a “scientific method” for startups. In this paper we contrast two approaches: lean startup and the theory-based view of startups. The lean startup movement has served an important function in calling for a normative and scientific approach to startups and venture creation. The theory-based view shares this agenda. But there are differences in the underlying theoretical mechanisms and practical prescriptions suggested by each approach. We highlight these differences and their implications for both research and practice. For example, we contrast lean startup’s emphasis on bounded rationality and entrepreneur–customer information asymmetry with the theory-based view’s emphasis on generative rationality and belief asymmetry. The theory-based view focuses on contrarian beliefs, associated problem formulation, and the development of a startup-specific causal logic for experimentation, resource acquisition, and problem solving. The right mix of entrepreneurial actions is contingent and startup-specific—guided by a startup’s unique theory. After pointing out differences between the lean and theory-based view of startups, we discuss opportunities for partial reconciliation, as well as opportunities for empirically comparing perspectives. Overall, we emphasize that a scientific method for startups needs to recognize the importance of contingent, discriminating alignment between entrepreneurial theories and the actions they prescribe (including different types of experimentation and validation, search, and forms of organization)

Metallicity determination in gas-rich galaxies with semiempirical methods

A study of the precision of the semiempirical methods used in the determination of the chemical abundances in gas-rich galaxies is carried out. In order to do this the oxygen abundances of a total of 438 galaxies were determined using the electronic temperature, the $R_{23}$ and the P methods. The new calibration of the P method gives the smaller dispersion for the low and high metallicity regions, while the best numbers in the turnaround region are given by the $R_{23}$ method. We also found that the dispersion correlates with the metallicity. Finally, it can be said that all the semiempirical methods studied here are quite insensitive to metallicity with a value of $8.0\pm0.2$ dex for more than 50% of the total sample. \keywords{ISM: abundances; (ISM): H {\sc ii} regions}Comment: 26 pages, 9 figures and 2 tables. To appear at AJ, January 200

The interplay of fungal and bacterial microbiomes on rainforest frogs following a disease outbreak

Emerging infectious diseases are a serious threat to wildlife populations, and there is growing evidence that host microbiomes play important roles in infection dynamics, possibly even mitigating diseases. Nevertheless, most research on this topic has focused only on bacterial microbiomes, while fungal microbiomes have been largely neglected. To help fill this gap in our knowledge, we examined both the bacterial and fungal microbiomes of four sympatric Australian frog species, which had different population-level responses to the emergence of chytridiomycosis, a widespread disease caused by the fungal pathogen Batrachochytrium dendrobatidis (Bd). We sequenced 16,884 fungal amplicon sequence variants (ASVs) and 41,774 bacterial ASVs. Bacterial communities had higher richness and were less variable within frog species than were fungal communities. Nevertheless, both communities were correlated for both ASV richness and beta diversity (i.e., frogs with similar bacterial richness and community composition tended to also have similar fungal richness and community composition). This suggests that either one microbial community was having a large impact on the other or that they were both being driven by similar environmental factors. For both microbial taxa, we found little evidence of associations between Bd (prevalence or intensity) and either individuals' ASVs or beta diversity. However, there was mixed evidence of associations between richness (both bacterial and fungal) and Bd, with high richness potentially providing a protective effect. Surprisingly, the relative abundance of bacteria that have previously been shown to inhibit Bd was also positively associated with Bd infection intensity, suggesting that a high relative abundance of those bacteria provides poor protection against infection

The interplay of fungal and bacterial microbiomes on rainforest frogs following a disease outbreak

Emerging infectious diseases are a serious threat to wildlife populations, and there is growing evidence that host microbiomes play important roles in infection dynamics, possibly even mitigating diseases. Nevertheless, most research on this topic has focused only on bacterial microbiomes, while fungal microbiomes have been largely neglected. To help fill this gap in our knowledge, we examined both the bacterial and fungal microbiomes of four sympatric Australian frog species, which had different population-level responses to the emergence of chytridiomycosis, a widespread disease caused by the fungal pathogen Batrachochytrium dendrobatidis (Bd). We sequenced 16,884 fungal amplicon sequence variants (ASVs) and 41,774 bacterial ASVs. Bacterial communities had higher richness and were less variable within frog species than were fungal communities. Nevertheless, both communities were correlated for both ASV richness and beta diversity (i.e., frogs with similar bacterial richness and community composition tended to also have similar fungal richness and community composition). This suggests that either one microbial community was having a large impact on the other or that they were both being driven by similar environmental factors. For both microbial taxa, we found little evidence of associations between Bd (prevalence or intensity) and either individuals' ASVs or beta diversity. However, there was mixed evidence of associations between richness (both bacterial and fungal) and Bd, with high richness potentially providing a protective effect. Surprisingly, the relative abundance of bacteria that have previously been shown to inhibit Bd was also positively associated with Bd infection intensity, suggesting that a high relative abundance of those bacteria provides poor protection against infection