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Consider a monopolist in one market that faces competition in a second market. Bundled loyalty discounts, in which customers receive a price break on the monopoly good in exchange for making all purchases from the monopolist, have ambiguous welfare effects. To analyze such discounts as predatory pricing is incorrect. In some settings, they act as tie-in sales. Existing tests for whether such discounts violate Section 2 of the Sherman Act do not track changes in consumer surplus or total surplus. We present a new test and use it in an illustrative example based on SmithKline that assumes the "tied" market is a homogeneous good. If the tied market is characterized by Hotelling competition, bundling by the monopolist causes the rival firm to reduce its price. In numerical examples, we find that this can deter entry or induce exit.
This book gathers the proceedings of the 7th International Conference, with the theme “Culture and Tourism in a Smart, Globalized and Sustainable World,” held on Hydra Island, Greece, on June 17–19, 2020, published with the support of the International Association of Cultural and Digital Tourism. Highlighting the contributions made by numerous writers to the advancement of tourism research, this book presents a critical academic discourse on sustainable practices in the smart tourism context, improving readers’ understanding of, and stimulating future debates in, this critical area. In addition to the knowledge economy and the concept of smart destinations, the book addresses new modes of tourism management and development, as well as emerging technologies, including location-based services, the Internet of things, smart cities, mobile services, gamification, digital collections and the virtual visitor, social media, social networking, and augmented reality.
This book provides the latest viewpoints of scientific research in the field of e-business. It is organized into three sections: “Higher Education and Digital Economy Development”, “Artificial Intelligence in E-Business”, and “Business Intelligence Applications”. Chapters focus on China’s higher education in e-commerce, digital economy development, natural language processing applications in business, Information Technology Governance, Risk and Compliance (IT GRC), business intelligence, and more.
The “middle-income trap” is the phenomenon of hitherto rapidly growing economies stagnating at middle-income levels and failing to graduate into the ranks of high-income countries. In this study we examine the middle-income trap as a special case of growth slowdowns, which are identified as large sudden and sustained deviations from the growth path predicted by a basic conditional convergence framework. We then examine their determinants by means of probit regressions, looking into the role of institutions, demography, infrastructure, the macroeconomic environment, output structure and trade structure. Two variants of Bayesian Model Averaging are used as robustness checks. The results—including some that indeed speak to the special status of middle-income countries—are then used to derive policy implications, with a particular focus on Asian economies.
This book analyzes the changes brought on to economic and business activities in Latin America due to the new scenarios, environments and social dynamics the world is facing as a result of the COVID-19 pandemic, at both micro- and macroeconomic levels. Recent changes to working environments has brought discussions on work-life balance to the forefront, and creating support mechanisms to attract and retain the next generation of workers has become a primary focus for talent managers. At an industry level, there are expectations that once the crisis passes, there will be massive capital inflows toward ESG investments in emerging markets driving the transformation of companies. Consequently, ESG business models will have a cascading effect in the whole supply chain (upstream, midstream and downstream) and will generate greater value for all stakeholders. At the same time, technologies of the fourth industrial revolution, such as Blockchain and Artificial Intelligence, have gradually been adopted by companies leading the charge in ESG business models. The financial sector has taken the lead in these two technologies, but the challenge generated by the COVID-19 pandemic forced other sectors to innovate rapidly in order to remain afloat. Using empirical and theoretical frameworks, the contributors in this book identify the most attractive alternatives to benefit consumers in an adverse environment like the one the world is facing as a result of the COVID-19 pandemic, which while posing a significant challenge for most industries, has also created new opportunities for innovation and ingenuity, analyzing case studies from the coffee and medical tourism sectors in particular.
øOne of the great successes of the law and economics movement has been the use of economic models to explain the structure and function of broad areas of law. The original contributions to this volume epitomize that tradition, offering state-of-the-art
We evaluate the direct employment effect of the public investment in key infrastructure—electricity, roads, schools and hospitals, and water and sanitation. Using rich firm-level panel data from 41 countries over 19 years, we estimate that US$1 million of public spending in infrastructure create 3–7 jobs in advanced economies, 10–17 jobs in emerging market economies, and 16–30 jobs in low-income developing countries. As a comparison, US$1 million public spending on R&D yields 5–11 jobs in R&D in OECD countries. Green investment and investment with a larger R&D component deliver higher employment effect. Overall, we estimate that one percent of global GDP in public investment can create more than seven million jobs worldwide through its direct employment effects alone.
This paper combines pre-pandemic face-to-face survey data with follow up phone surveys collected in April-May 2020 to quantify the overall and differential impacts of COVID-19 on household food security, labor market participation and local food prices in Nigeria. We exploit spatial variation in exposure to COVID-19 related infections and lockdown measures along with temporal differences in our outcomes of interest using a difference-in-difference approach. We find that those households exposed to higher COVID-19 cases or mobility lockdowns experience a significant increase in measures of food insecurity. Examining possible transmission channels for this effect, we find that COVID-19 significantly reduces labor market participation and increases food prices. We find that impacts differ by economic activities and households. For instance, lockdown measures increased households' experience of food insecurity by 12 percentage points and reduced the probability of participation in non-farm business activities by 13 percentage points. These lockdown measures have smaller impacts on wage-related activities and farming activities. In terms of food security, households relying on non-farm businesses, poorer households, those with school-aged children, and those living in remote and conflicted-affected zones have experienced relatively larger deteriorations in food insecurity. These findings can help inform immediate and medium-term policy responses, including social protection policies aiming at ameliorating the impacts of the pandemic, as well as guide targeting strategies of governments and international donor agencies by identifying the most impacted sub-populations.
Since his pioneering application of economic analysis to racial discrimination, Gary S. Becker has shown that an economic approach can provide a unified framework for understanding all human behavior. In a highly readable selection of essays Becker applies this approach to various aspects of human activity, including social interactions; crime and punishment; marriage, fertility, and the family; and "irrational" behavior. "Becker's highly regarded work in economics is most notable in the imaginative application of 'the economic approach' to a surprising breadth of human activity. Becker's essays over the years have inevitably inspired a surge of research activity in testimony to the richness of his insights into human activities lying 'outside' the traditionally conceived economic markets. Perhaps no economist in our time has contributed more to expanding the area of interest to economists than Becker, and a number of these thought-provoking essays are collected in this book."—Choice Gary Becker was awarded the Nobel Prize in Economic Science in 1992.
This open access book considers the development of the sharing and collaborative economy with a European focus, mapping across economic sectors, and country-specific case studies. It looks at the roles the sharing economy plays in sharing and redistribution of goods and services across the population in order to maximise their functionality, monetary exchange, and other aspects important to societies. It also looks at the place of the sharing economy among various policies and how the contexts of public policies, legislation, digital platforms, and other infrastructure interrelate with the development and function of the sharing economy. The book will help in understanding the future (sharing) economy models as well as to contribute in solving questions of better access to resources and sustainable innovation in the context of degrowth and growing inequalities within and between societies. It will also provide a useful source for solutions to the big challenges of our times such as climate change, the loss of biodiversity, and recently the coronavirus disease pandemic (COVID-19). This book will be of interest to academics and students in economics and business, organisational studies, sociology, media and communication and computer science.