Technical efficiency in the retail food industry: the influence of inventory investment, wage levels, and age of the firm

The objective of this paper is to estimate technical efficiency in retailing; and the influence of inventory investment, wage levels, and firm age on this efficiency. We use the output supermarket chains’ sales volume, calculated isolating the retailer price effect on its sales revenue. This output allows us to estimate a strictly technical concept of efficiency. The methodology is based on the estimation of a stochastic parametric function. The empirical analyses applied to panel data on a sample of 42 supermarket chains between 2000 and 2002 show that inventory investment and wage level have an impact on technical efficiency. In comparison, the effect of these factors on efficiency calculated through a monetary output (sales revenue) shows some differences that could be due to aspects related to product prices.

The impact of the internet on the pricing strategies of the European low cost airlines

This study seeks to analyse the price determination of low cost airlines in Europe and the effect that Internet has on this strategy. The outcomes obtained reveal that both users and companies benefit from the use of ICTs in the purchase and sale of airline tickets: the Internet allows consumers to increase their bargaining power comparing different airlines and choosing the most competitive flight, while companies can easily check the behaviour of users to adapt their pricing strategies using internal information. More than 2500 flights of the largest European low cost airlines have been used to carry out the study. The study revealed that the most significant variables for understanding pricing strategies were the number of rivals, the behaviour of the demand and the associated costs. The results indicated that consumers should buy their tickets before 25 days prior to departure.

The European response to the challenge of the Japanese steel industry (1950–1980)

Between 1950 and 1980, the European delay with respect to Japan and the relative loss of competitiveness in the integrated steel industry was due to an institutional, geographical and economic logic based largely on historical factors. Europe had a long steel-making history that was closely related to its sources of raw materials. The new technological paradigm turned this former advantage into a clear disadvantage, while the large investments made in the Thomas and open hearth processes and the affordable price of scrap delayed the adoption of the Basic Oxygen Furnace (BOF) until its superiority had been clearly demonstrated. The European steel industry was not at the forefront of the transformation, but merely adapting to the changes, pushed by the threat of a new uncomfortable competitor.