Competition and unitization in oil extraction : a tale of two tragedies

This paper compares two organizational modes for extracting oil from a common pool: unitization and competitive extraction. The analysis suggests that the general presumption that unitization is surplus enhancing relative to competitive extraction may not always be valid due to contractual incompleteness associated with unitization contracts. While competitive extraction suffers from the tragedy of the commons, unitization can be subject to the dual tragedy of the anticommons. This provides an explanation for the puzzle confronting the oil industry that firms are often reluctant to voluntarily enter unitization agreements.

Competition in mature software markets

A theoretical framework is built for capturing properties of competition in mature monopolistic digital product markets. Based on an empirical study of the market of accounting software for small and medium enterprises, a consumer choice model is suggested, where a rational consumer is already using a particular version of a software package and is considering to chose from the following three options: either to continue using it, or to upgrade to a newer version of the product, or to switch to a competitive product. Consumer decision is justified by software quality, and network effects, under the price and switching costs constrains. A modified consumer demand function is used for the model, and theoretical conditions are analysed for choosing from one of the three above-mentioned options. The results are applicable to a wide range of digital products.

Competition in the mature markets of professional versus final consumer information products

Factors are explored of decision making in regard to buying and/or upgrading information products. Mature information product markets are considered. Comparing two cases - professional and final consumer information products - the decision making process is considered on the choice of product variant. We distinguish three groups of users according to their ultimate decisions to either not to upgrade the existing system, or to upgrade it with the existing provider, or to switch to another provider. Consumer decision is based on multiple characteristics of information product quality, network effects, price and switching costs, whereas producers have to compete not only with their competitors, but also with the previous versions of the own products. Based on the considered cases, differences in consumer priorities are discussed in the markets of professional versus final consumer information products.

Competition and efficiency : overseas students and technical efficiency in Australian and New Zealand universities

Economic theory suggests that competitive pressures will impact on organisational efficiency. In recent years, universities in Australia and New Zealand have faced increased competition for students. The aim of this paper is to explore the efficiency of Australian and New Zealand public universities and to investigate the impact of competition for students from overseas on efficiency. Output distance functions are estimated using panel data for the period 1995-2002 for Australia and 1997-2003 for New Zealand. The results show that competition for overseas students has led to increased efficiency in Australian universities. However, competition for overseas students appears to have had no effect on efficiency in New Zealand.

Tissue distribution of lignans in rats in response to diet, dose−response, and competition with isoflavones

This paper investigates the occurrence and distribution of the lignan metabolites enterodiol (END) and enterolactone (ENL) and the isoflavone daidzein (DAID) in rat tissues by use of liquid chromatography−electrospray ionization mass spectrometry (LC−ESI/MSn) following a variety of dietary regimes. Furthermore, we examined the dose−response and distribution of END and ENL in liver, testes, prostate, and lung, and we investigated the effects of competition between lignans and isoflavones on metabolite distribution. In liver, testes, prostate, and lung tissue, dose-related increases in END concentration were observed. In the testes, coadministration of 60 mg/kg secoisolariciresinol diglycoside (SDG) with 60 mg/kg isoflavones produced alterations in the resulting metabolite profile, causing increased END concentration and decreased DAID concentration. Results indicate lignan accumulation in tissues occurs, and coadministration of lignans with isoflavones affects the metabolite profile, with effects dependent on tissue type.

High prices for generics in Australia : more competition might help

It is commonly believed that dispensed prices of medicines in Australia are substantially lower than those in other developed countries, particularly the US. This article reports the results of an analysis comparing dispensed prices for the most commonly prescribed and the highest cost items in Australia with dispensed prices in the US. Although a large majority of items are less expensive in Australia than in the US, Australian prices are higher for a substantial number of products, particularly generic drugs. This article examines various policies affecting the pricing of generics in Australia. It is postulated that the main cause for higher prices for a substantial number of generic products is the lack of price competition. This results from government policy which ensures that a price reduction by one company is communicated immediately to all competitors in that market along with an invitation to match the reduced price. The dominant strategy for all suppliers is to only reduce their price in response to a reduction in price by a competitor. The result is a lack of differentiation in pricing across brands of a medicine on the Schedule of Pharmaceutical Benefits. The government could improve the structure of the generics market and encourage greater competition by ceasing to disclose competitor firms’ offers to other competitors. The government could conduct pricing reviews of each generic product relatively infrequently (eg, only once annually or every 18 months). At the time of the pricing review, the government would request confidential offers on price for a generic from all players in the market. Brands should then all be listed under the Pharmaceutical Benefits Scheme (PBS) at the offered price. Prices offered by the individual supplier would apply until the next pricing review. The PBS would continue to subsidise up to the price of the lowest priced brand, with brand premiums applying to all brands priced higher than the benchmark price. Such an approach would provide opportunity for players in the market to capture market share by being thelowest priced brand.

Visual regulation during competition long jumps and run-throughs

Previous investigators have reported that the ability of long jumpers to visually regulate their stride pattern as they approach the take-off board is critical for success. The importance of visual regulation (VA) on long jump (LJ) distance was assessed in six national-class competitors during two simulated competitions. Linear regression analyses indicated that increased VR contributes to a high average approach velocity -a key predictor of LJ distance. Early VA enabled the athletes to make small systematic adjustments to stride length in order to strike the board in an optimal take-off position, without sacrificing approach velocity. Athletes practice their LJ approach by repeating the stride pattern of the approach, but without the take-off. The current study established that these 'run-throughs' (AT) don't accurately simulate the VR characteristics of a LJ approach. One strategy to increase the VA required during RT's may be to place additional targets across the runway for the athletes to negotiate whilst approaching the take-off board, without compromising approach velocity.