Defining Markets That Involve Multi-Sided Platform Businesses: An Empirical Framework With an Application to Google's Purchase of DoubleClick

A multi-sided platform (MSP) serves as an intermediary for two or more groups of customers who are linked by indirect network effects. Recent research has found that MSPs are significant in many industries and that some standard economic results, such as the Lerner Index, do not apply to them, in material ways, without some significant modification to take linkages between the multiple sides into account. This article extends several key tools used for the analysis of mergers to situations in which one or more of the suppliers are MSPs. It shows that the application of traditional tools to mergers involving MSPs results in biases the direction of which depends on the particular tool being used and other conditions. It also extends these tools to the analysis of the merger of MSPs. The techniques are illustrated with an application to an acquisition by Google in the online advertising industry.

Labor Productivity During the Great Depression

In a recent paper, Bemanke and Parkinson (1991) studied interwar U.S. manufacturing data with the objective of assessing competing theories of the business cycle. An important finding was that short-run increasing returns to Labor (SRIRL), or procyclical labor productivity, was at least as strong during the Great Depression as in the postwar period. The authors conclude that this information casts further doubt on the real business cycle explanation of economic fluctuations. The purpose of this note is to point out that, within the data set analyzed by Bemanke and Parkinson (20% of the manufacturing sector), labor productivity during the Great Depression (1928:III to 1933:1) was procyclical in some industries and countercyclical in others. Furthermore, our measure of labor productivity for the entire manufacturing sector during this period was countercyclical. We conclude that the evidence is not favorable toward the hypothesis that large, negative aggregate demand shocks pushed the 1929-33 economy down a static, neoclassical production function. Another possibility is that firms which typically hoarded labor during recessions chose not to do so during the 1929-33 period.

Hazards to golden-mantled ground squirrels and associated secondary hazard potential from strychnine baiting for forest pocket gophers

Radio telemetry and capture-recapture techniques were used to evaluate the hazards to golden-mantled ground squirrels (Spermophilus lateralis) from hand baiting with 0.5% strychnine-treated oats for western pocket gophers (Thomomys mazama) on conifer plantations in eastern Oregon. Toxicology data were collected on field-killed and caged ground squirrels and on caged mink (Mustela vison), great horned owls (Bubo virginianus), and red-tailed hawks (Buteo jamaicensis). Ground squirrel populations were reduced 50 to 75% following underground baiting for pocket gophers. Maximum amount of strychnine alkaloid found in cheek pouches and carcass of a field-killed golden-mantled ground squirrel was 2.88 mg. Mean amount of strychnine in carcasses was 0.35 mg; almost all occurred in the gut. The estimated LD50 for mink was 0.6 mg/kg. The lowest lethal dose for great horned owls and red-tailed hawks was 7.7 mg/kg and 10.2 mg/kg, respectively. The LD50 for owls and hawks was not determined. Long-term effects on golden-mantled ground squirrel populations and secondary hazard potential to owls and hawks were judged to be minimal. Wild mustelids as large as mink could be adversely affected by consuming the gut content of strychnine-killed golden-mantled ground squirrels

The use of a formal sensitivity analysis on epidemic models with immune protection from maternally acquired antibodies

This paper considers the outcome of a formal sensitivity analysis on a series of epidemic model structures developed to study the population level effects of maternal antibodies. The analysis is used to compare the potential influence of maternally acquired immunity on various age and time domain observations of infection and serology, with and without seasonality. The results of the analysis indicate that time series observations are largely insensitive to variations in the average duration of this protection, and that age related empirical data are likely to be most appropriate for estimating these characteristics

Genetic parameters for animal mortality in pasture-based, seasonal-calving dairy and beef herds

peer-reviewedIn the absence of informative health and welfare phenotypes, breeding for reduced animal mortality could improve overall health and welfare, provided genetic variability in animal mortality exists. The objective of the present study was to estimate genetic (and other) variance components for animal mortality in pasture-based, seasonal-calving dairy and beef herds across multiple life stages as well as to quantify the genetic relationship in mortality among life stages. National mortality records were available for all cattle born in the Republic of Ireland. Cattle were grouped into three life stages based on age (0 to 30 days, 31 to 365 days, 366 to 1095 days) whereas females with ≥1 calving event were also grouped into five life stages, based on parity number (1, 2, 3, 4, and 5), considering both the initial 60 days of lactation and a cow's entire lactation period, separately. The mean mortality prevalence ranged from 0.70 to 5.79% in young animals and from 0.53 to 3.86% in cows. Variance components and genetic correlations were estimated using linear mixed models using 21,637 to 100,993 records. Where heritability estimates were different from zero, direct heritability estimates for mortality in young animals (≤1095 days) ranged from 0.006 to 0.040, whereas the genetic standard deviation ranged from 0.015 to 0.034. The contribution of a maternal genetic effect to mortality in young animals was evident up to 30 days of age in dairy herds, but this was only the case in preliminary analysis of stillbirths in beef herds. Based on the estimated genetic standard deviation in the present study, the incidence of mortality in young animals could be reduced through breeding by up to 3.4 percentage units per generation. For cows, direct heritability estimates for mortality, where different from zero, ranged from 0.003 to 0.049. The genetic standard deviation for mortality in cows ranged from 0.005 to 0.016 during the initial 60 days of lactation and ranged from 0.011 to 0.032 during the cow's entire lactation. Genetic correlations among the age groups as well as between the age groups and cow parities had high standard errors. Genetic correlations among the cow parities were moderate to strongly positive (ranging from 0.66 to 0.99) and mostly different from zero. Results from the present study can be used to inform genetic evaluations for mortality in young animals and in cows as well as the potential genetic gain achievable

Money, sticky wages, and the Great Depression

This paper examines the ability of a simple stylized general equilibrium model that incorporates nominal wage rigidity to explain the magnitude and persistence of the Great Depression in the United States. The impulses to our analysis are money supply shocks. The Taylor contracts model is surprisingly successful in accounting for the behavior of major macroaggregates and real wages during the downturn phase of the Depression, i.e., from 1929:3 through mid-1933. Our analysis provides support for the hypothesis that a monetary contraction operating through a sticky wage channel played a significant role in accounting for the downturn, and also provides an interesting refinement to this explanation. In particular, both the absolute severity of the Depression's downturn and its relative severity compared to the 1920-21 recession are likely attributable to the price decline having a much larger unanticipated component during the Depression, as well as less flexible wage-setting practices during this latter period. Another finding casts doubt on explanations for the 1933-36 recovery that rely heavily on the substantial remonetization that began in 1933.Money supply ; Wages ; Depressions