Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market

This paper exploits the unique experiment of European market integration to investigate the relationship between integration and price convergence in international markets. Using a panel data set of car prices we examine how the process of integration has affected cross-country price dispersion in Europe. We find surprisingly strong evidence of convergence towards both the absolute and the relative versions of Purchasing Power Parity. Our analysis illuminates the main sources of segmentation in international markets and suggests the type of institutional changes that can successfully reduce it.

Intra- and inter-channel competition in local-service sectors.

Although economically very important, local-service sectors have received little attention in the extensive literature on competitive interactions. Detailed data gathering in these sectors is hard, not only because of the multitude of local players, but also because key service dimensions are hard to quantify. Using empirical entry models, we show how to infer information on these sectors' degree of intra- and inter-channel competition from the observed entry decisions in different local markets. The approach also controls for relevant socio-demographic characteristics of the trading area that may affect performance. We apply the proposed empirical entry model to the video-rental market. Additional entries of video stores are found to significantly increase the level of intra-channel competition. Unlike the predictions of many normative economic models, we find this increase to be larger when the entry occurs in a duopoly than in a monopoly, a pattern consistent with recent experimental research on collusive behavior in oligopolies. We also find evidence of inter-channel cannibalization from the upstream channel (movie theatres), but not from the downstream channel (premium cable). Finally, various socio-demographic characteristics of the trading zone, such as income and household size, are found to also have a significant impact on store performance.Competition; Sector; Channel competition; Characteristics; Oligopoly; Monopoly;

Intra- and Inter-Channel Competition in Local-Service Sectors

Although economically very important, local-service sectors have received little attention in the extensive literature on competitive interactions. Detailed data gathering in these sectors is hard, not only because of the multitude of local players, but also because key service dimensions are hard to quantify. Using empirical entry models, we show how to infer information on these sectors’ degree of intra- and inter-channel competition from the observed entry decisions in different local markets. The approach also controls for relevant socio-demographic characteristics of the trading area that may affect performance. We apply the proposed empirical entry model to the video-rental market. Additional entries of video stores are found to significantly increase the level of intra-channel competition. Unlike the predictions of many normative economic models, we find this increase to be larger when the entry occurs in a duopoly than in a monopoly, a pattern consistent with recent experimental research on collusive behavior in oligopolies. We also find evidence of inter-channel cannibalization from the upstream channel (movie theatres), but not from the downstream channel (premium cable). Finally, various socio-demographic characteristics of the trading zone, such as income and household size, are found to also have a significant impact on store performance

Experimental study of factors influencing the risk of drift from field sprayers Part 2: Spray application technique.

Recently, spray drift and its effects have become an important aspect of risk assessment in the registration process of pesticides in Belgium. In this regulation, drift reducing spray application techniques can be used to reduce buffer zones. The purpose of this research is to measure and compare the amount of drift sediment for different spray application techniques under field conditions. A drift prediction equation for the reference spraying was used to compare other spraying techniques with the reference spraying, under different weather conditions. Drift measurements were performed for several combinations of nozzle type (flat fan, low-drift, air injection) and size (ISO 02, 03, 04 and 06), spray pressure (2, 3 and 4 bar), driving speed (4, 6, 8 and 10 km.h-1) and spray boom height (0.3, 0.5 and 0.75 m). Nozzle type as well as spray pressure, driving speed and spray boom height, have an important effect on the amount of spray drift. Larger nozzle sizes, lower spray pressures and driving speeds and lower spray boom heights generally reduce spray drift. Concerning nozzle types, air injection nozzles have the highest drift reduction potential followed by the low-drift nozzles and the standard flat fan nozzles

Challenges for CFD modeling of drift from air assisted orchard sprayers

Plant protection products (PPP) play an important role in providing high crop yields by minimizing risks associated with the occurrence of pests. Some of the sprayed material may however move beyond the intended target and results in drift to non-target objects. Modeling approaches help to understand, characterize and minimize spray drift using computer simulations rather than fiel

Experimental study of factors influencing the risk of drift from field sprayers, Part 1: Meteorological conditions

Spray drift can be defined as the quantity of plant protection product that is carried out of the sprayed (treated) area by the action of air currents during the application process. This continues to be a major problem in applying agricultural pesticides. The purpose of this research is to measure and compare the amount of drift for different climatological conditions under field conditions. Sedimenting spray drift was determined by sampling in a defined downwind area at different positions in a flat meadow using horizontal drift collectors for a reference spraying. Meteorological conditions were monitored during each experiment. A drift prediction equation for the reference spraying was set up to predict the expected magnitude of sedimenting at various drift distances and atmospheric conditions. The measurements proved the important effect of weather conditions (temperature, relative humidity and wind speed) on the amount of spray drift. A lower wind speed or a higher relative humidity decreases the amount of spray drift. Taking into account the correlation between temperature and relative humidity, a lower temperature will also result in lower drift values due to the cumulative effect of relative humidity. This equation can be used to quantify the effect of meteorological conditions, to compare measurements using other spraying techniques under different weather conditions to the reference spraying and to perform spray drift risk assessments