Price rivalry in airline markets: A study of a successful strategy of a network carrier against a low-cost carrier

Competition in airline markets may be tough. In this context, network carriers have two alternative strategies to compete with low-cost carriers. First, they may establish a low-cost subsidiary. Second, they may try to reduce costs using the main brand. This paper examines a successful strategy of the first type implemented by Iberia in the Spanish domestic market. Our analysis of data and the estimation of a pricing equation show that Iberia has been able to charge lower prices than rivals with its low-cost subsidiary. The pricing policy of the Spanish network carrier has been particularly aggressive in less dense routes and shorter routes.

HouSI: Heuristic for delimitation of housing submarkets and price homogeneous areas

This paper seeks to address the problem of the empirical identification of housing market segmentation,once we assume that submarkets exist. The typical difficulty in identifying housing submarkets when dealing with many locations is the vast number of potential solutions and, in such cases, the use of the Chow test for hedonic functions is not a practical solution. Here, we solve this problem by undertaking an identification process with a heuristic for spatially constrained clustering, the"Housing Submarket Identifier" (HouSI). The solution is applied to the housing market in the city of Barcelona (Spain), where we estimate a hedonic model for fifty thousand dwellings aggregated into ten groups. In order to determine the utility of the procedure we seek to verify whether the final solution provided by the heuristic is comparable with the division of the city into ten administrative districts.

Lo camí de la fortuna i En Ricard Pobre : les dues versions catalanes de The Way to Wealth, de Benjamin Franklin

El propòsit d’aquest article és analitzar les dues traduccions catalanes del llibret de Benjamin Franklin The Way to Wealth (1758). Aquest text, que ha deixat una empremta important en l’imaginari de la societat nord-americana, conté més de cent aforismes que insten al treball honrat, a l’estalvi i a la frugalitat com a vies segures per accedir a la fortuna econòmica. La primera versió catalana ens arriba un segle més tard, quan Gaietà Vidal i de Valenciano en fa el 1868 un anostrament més semblant a una recreació que a una traducció. Rafael Patxot i Jubert va publicar el mateix text el 1909 a la Biblioteca de l’Avenç, amb una versió més propera a l’original.

La "imatge" de la caverna i la temptació constant de corregir Plató: Benjamin Jowett com a exemple

[cat] Les traduccions dels primers capítols del llibre VII de la República de Plató on apareix la famosa imatge de la caverna, εἰκών, presenten una sorprenent i intrigant varietat interpretativa: “al·legoria”, “mite”, “faula”, “paràbola”, “símil”, “comparació”... Aquest article, prenent com a exemple la notable fidelitat al text del traductor victorià de Plató, B. Jowett, i mitjançant una anàlisi rigorosa dels termes que acompanyen la imatge, manté la necessitat de no interpretar ni corregir en aquest cas el gran filòsof idealista o “ideocèntric”, assenyalant alhora, si el capteniment filològic és un altre, les contradiccions resultants i l’ús d’algun terme aliè al lèxic platònic com ara “al·legoria”.

Asymptotic analysis of stock price densities and implied volatilities in mixed stochastic models

In this paper, we obtain sharp asymptotic formulas with error estimates for the Mellin con- volution of functions de ned on (0;1), and use these formulas to characterize the asymptotic behavior of marginal distribution densities of stock price processes in mixed stochastic models. Special examples of mixed models are jump-di usion models and stochastic volatility models with jumps. We apply our general results to the Heston model with double exponential jumps, and make a detailed analysis of the asymptotic behavior of the stock price density, the call option pricing function, and the implied volatility in this model. We also obtain similar results for the Heston model with jumps distributed according to the NIG law.