Free entry does not imply zero profits

Traditional economic wisdom says that free entry in a market will drive profits down to zero. This conclusion is usually drawn under the assumption of perfect information. We assumethat a priori there exists imperfect information about theprofitability of the market, but that potential entrants maylearn the demand curve perfectly at negligible cost byengaging in market research. Even if in equilibrium firmslearn the demand perfectly, profits may be strictly positivebecause of insufficient entry. The mere fact that it will notbecome common knowledge that every entrant has perfectinformation about demand causes this surprising result. Belief means doubt. Knowing means certainty. Introduction to the Kabalah.

Elaboração de um modelo de previsão de falência nas empresas cotadas na bolsa de valores em Cabo Verde-Estudo empírico de ano 2010-2011

Ser capaz de prever a solidez financeira de uma empresa, tem levado a muitos trabalhos de pesquisa. Rácios financeiros são indicadores chave de solidez financeira de um negócio e ferramentas para determinar a eficiência operacional & financeira de empresas e negócios. Existe um grande número de relações, proposto por vários autores. Altman desenvolveu um modelo de z-score utilizando rácios como sua fundação. Com a ajuda do modelo Z - Score, Altman conseguia prever a eficiência financeira /Falência até 2-3 anos de antecedência. O trabalho de pesquisa a seguir descreve em detalhes os estudos realizados por Altman para prever a falência de empresas. Altman fez mudanças regulares para obter a equação perfeita que poderia prever a falência. O trabalho de pesquisa a seguir resume a pesquisa de Altman para desenvolver o modelo de Pontuação de Altman Z, aplicadas as empresas cotadas na bolsa de valores de Cabo Verde. Pode-se seguramente dizer que o modelo de Z-score de Altman pode ser aplicado a economia moderna para prever a angústia e a falência, dois e três anos de antecedência.Businesses are enterprises which produce goods or render services for profit motive. To be able to predict the financial soundness of a business has led to many research works. Financial ratios are a key indicator of financial soundness of a business. Financial ratios are a tool to determine the operational & financial efficiency of business undertakings. There exist a large number of ratios propounded by various authors. Altman developed a z-score model using ratios as its foundation. With the help of the Z- Score model, Altman could predict financial efficiency /Bankruptcy up to 2-3 years in advance. The following research paper describes in detail the studies carried out by Altman to predict business bankruptcy. Altman made regular changes to achieve the perfect equation which could predict bankruptcy. The The following research paper summaries the research of Altman that have being made to develop the model of Altman Z score, applied to companies listed on stock exchanges in Cape Verde. One can safely say that the model of Altman Z-Score can be applied to modern model economics to predict distress and bankruptcy, two and three years advance.

Wage structures and family economies in the Catalan textile industry in an age of nascent capitalism

This paper deals with changes in managerial practices in Catalonia in anage of nascent capitalism (1830-1925) and adaptive family strategies inorder to face the absence of state welfare. During the 19 t h Century andin the absence of recorded labor contracts, human resources of the firmwere organized by means of implicit contracts and informal labor markets.With the advent of scientific organization of labor, wage per hour workedbegan to be recorded. This is why in the 1920s the perfect competitionmodel applies to our case. On the other hand, in the same period, and inthe absence of state welfare, ideas stemming from cooperative game theoryapply to the pattern of household income formation. Kin related networkswere used to improve the living standards of the household. In thisparticular direction we also show that there was a demonstration effectby means of which migrant s living standards were higher than those ofnatives.

Local volatility changes in the black-scholes model

In this paper we address a problem arising in risk management; namely the study of price variations of different contingent claims in the Black-Scholes model due to anticipating future events. The method we propose to use is an extension of the classical Vega index, i.e. the price derivative with respect to the constant volatility, in thesense that we perturb the volatility in different directions. Thisdirectional derivative, which we denote the local Vega index, will serve as the main object in the paper and one of the purposes is to relate it to the classical Vega index. We show that for all contingent claims studied in this paper the local Vega index can be expressed as a weighted average of the perturbation in volatility. In the particular case where the interest rate and the volatility are constant and the perturbation is deterministic, the local Vega index is an average of this perturbation multiplied by the classical Vega index. We also study the well-known goal problem of maximizing the probability of a perfect hedge and show that the speed of convergence is in fact dependent of the local Vega index.

Correspondence analysis of raw data

Correspondence analysis has found extensive use in ecology, archeology, linguisticsand the social sciences as a method for visualizing the patterns of association in a table offrequencies or nonnegative ratio-scale data. Inherent to the method is the expression of the datain each row or each column relative to their respective totals, and it is these sets of relativevalues (called profiles) that are visualized. This relativization of the data makes perfect sensewhen the margins of the table represent samples from sub-populations of inherently differentsizes. But in some ecological applications sampling is performed on equal areas or equalvolumes so that the absolute levels of the observed occurrences may be of relevance, in whichcase relativization may not be required. In this paper we define the correspondence analysis ofthe raw unrelativized data and discuss its properties, comparing this new method to regularcorrespondence analysis and to a related variant of non-symmetric correspondence analysis.

Dynamics and genetic structure of Argentine ant supercolonies in their native range.

Some introduced ant populations have an extraordinary social organization, called unicoloniality, whereby individuals mix freely within large supercolonies. We investigated whether this mode of social organization also exists in native populations of the Argentine ant Linepithema humile. Behavioral analyses revealed the presence of 11 supercolonies (width 1 to 515 m) over a 3-km transect. As in the introduced range, there was always strong aggression between but never within supercolonies. The genetic data were in perfect agreement with the behavioral tests, all nests being assigned to identical supercolonies with the different methods. There was strong genetic differentiation between supercolonies but no genetic differentiation among nests within supercolonies. We never found more than a single mitochondrial haplotype per supercolony, further supporting the view that supercolonies are closed breeding units. Genetic and chemical distances between supercolonies were positively correlated, but there were no other significant associations between geographic, genetic, chemical, and behavioral distances. A comparison of supercolonies sampled in 1999 and 2005 revealed a very high turnover, with about one-third of the supercolonies being replaced yearly. This dynamic is likely to involve strong competition between supercolonies and thus act as a potent selective force maintaining unicoloniality over evolutionary time.

O turismo e a percepção dos seus impactes pela comunidade local : o caso da Ilha do Sal, Cabo Verde

The traditional analysis of tourism, having in mind only its economic impacts has been shown to be reductive and insufficient to explain the numerous and versatile modifications these can and will stimulate in a society at many levels, e.g. socially, culturally, politically and in the environment. The complexity of touristic activities and the insufficient measuring instruments that can provide exact data about these, gives terrain to the emergence of myths and value judgments around the effects in countries where tourism is a reality. This study aims at understanding how the impacts of tourism are grasped by the local community in Sal island – Cape Verde – convinced as we are that a quality and sustainable touristic offer can only be done by trialing the population, and involving them in the planning, managing and monitoring processes. The analysis of the perception of the impacts of touristic activities by the population tells us a lot about the levels of satisfaction of such communities towards the way in which the touristic development has been carried out in their surroundings. This study has been made through the inquiry of 231 locals, by means of a questionnaire, that showed that the population in this island has a very clear conscience of the impacts of tourism in their day-to-day lives. Conclusions drawn are that the negative economic and social impacts are greater than the positive; the cultural and environmental impacts are not so significant, and that the people feel that their voice has not been heard in what planning touristic activities is concerned. Nevertheless, they have high expectations regarding tourism as a way of ameliorating their life conditions. The inexistence of a linear behavior of impacts of touristic activities in the receptive countries and a perfect and adjustable model for tourism development make these countries delineate new politics aiming at the sustainability and the creation of conditions that help them monitor and mitigate its negative impacts.

O turismo e a percepção dos seus impactes pela comunidade local: o caso da Ilha do Sal, Cabo Verde

A análise tradicional do turismo visando apenas a sua dimensão económica tem-se mostrado redutora e insuficiente para explicar as inúmeras e versáteis alterações que pode provocar a nível social, cultural, político e ambiental. A complexidade da actividade turística e a carência de instrumentos ajustados para avaliar e tornar mensuráveis os seus impactes constituem terreno fértil à emergência de mitos e de juízos de valor em torno dos efeitos por ele causado nos países receptores. A linha orientadora da investigação parte do pressuposto que a actividade turística só faz sentido e se torna viável se proporcionar uma experiência qualitativa aos principais agentes envolvidos: os turistas e os residentes. A tentativa de compreender a forma como os impactes do turismo são percepcionados pela comunidade receptora da ilha do Sal em Cabo Verde está intimamente associado à convicção que um turismo de qualidade e sustentável só é possível auscultando a população e envolvendo-a no planeamento, gestão e monitorização da actividade. A análise da percepção dos impactes da actividade turística por parte da comunidade desemboca indirectamente no conhecimento dos níveis de satisfação da comunidade em relação à forma como se tem realizado o desenvolvimento turístico na ilha. No âmbito do trabalho de investigação foram realizados duzentos e trinta e um questionários cujos resultados da investigação levam a acreditar que a comunidade local salense possui uma clara consciência dos impactes do turismo no seu quotidiano. Verifica-se que a percepção dos impactes económicos e sociais negativos reúnem maior consenso que os impactes positivos. Os impactes culturais e ambientais são ainda pouco perceptíveis por parte dos inquiridos. Por outro lado, os inquiridos na sua generalidade não se sentem envolvidos no planeamento da actividade turística, embora haja elevadas expectativas em relação à actividade como forma de melhoria das condições de vida da população. A inexistência de um comportamento linear dos impactes da actividade turística no destino e de um modelo de desenvolvimento turístico perfeito e ajustável a todas as realidades obriga a que sejam delineados por parte dos países receptores políticas de planeamento visando a sustentabilidade e condições para a monitorização e mitigação dos seus impactes.

O turismo e a percepção dos seus impactes pela comunidade local : o caso da Ilha do Sal, Cabo Verde

The traditional analysis of tourism, having in mind only its economic impacts has been shown to be reductive and insufficient to explain the numerous and versatile modifications these can and will stimulate in a society at many levels, e.g. socially, culturally, politically and in the environment. The complexity of touristic activities and the insufficient measuring instruments that can provide exact data about these, gives terrain to the emergence of myths and value judgments around the effects in countries where tourism is a reality. This study aims at understanding how the impacts of tourism are grasped by the local community in Sal island – Cape Verde – convinced as we are that a quality and sustainable touristic offer can only be done by trialing the population, and involving them in the planning, managing and monitoring processes. The analysis of the perception of the impacts of touristic activities by the population tells us a lot about the levels of satisfaction of such communities towards the way in which the touristic development has been carried out in their surroundings. This study has been made through the inquiry of 231 locals, by means of a questionnaire, that showed that the population in this island has a very clear conscience of the impacts of tourism in their day-to-day lives. Conclusions drawn are that the negative economic and social impacts are greater than the positive; the cultural and environmental impacts are not so significant, and that the people feel that their voice has not been heard in what planning touristic activities is concerned. Nevertheless, they have high expectations regarding tourism as a way of ameliorating their life conditions. The inexistence of a linear behavior of impacts of touristic activities in the receptive countries and a perfect and adjustable model for tourism development make these countries delineate new politics aiming at the sustainability and the creation of conditions that help them monitor and mitigate its negative impacts.

Peroxisome proliferator-activated receptors: finding the orphan a home.

The peroxisome proliferator-activated receptor (PPAR) is a member of the steroid hormone receptor superfamily and is activated by a variety of fibrate hypolipidaemic drugs and non-genotoxic rodent hepatocarcinogens that are collectively termed peroxisome proliferators. A key marker of peroxisome proliferator action is the peroxisomal enzyme acyl CoA oxidase, which is elevated about ten fold in the livers of treated rodents. Additional peroxisome proliferator responsive genes include other peroxisomal beta-oxidation enzymes and members of the cytochrome P450 IVA family. A peroxisome proliferator response element (PPRE), consisting of an almost perfect direct repeat of the sequence TGACCT spaced by a single base pair, has been identified in the upstream regulatory sequences of each of these genes. The retinoid X receptor (RXR) forms a heterodimer with PPAR and binds to the PPRE. Furthermore, the RXR ligand, 9-cis retinoic acid, enhances PPAR action. Retinoids may therefore modulate the action of peroxisome proliferators and PPAR may interfere with retinoid action, perhaps providing one mechanism to explain the toxicity of peroxisome proliferators. Interestingly, a variety of fatty acids can activate PPAR supporting the suggestion that fatty acids, or their acyl CoA derivatives, may be the natural ligands of PPAR and that the physiological role of PPAR is to regulate fatty acid homeostasis. Taken together, the discovery of PPAR has opened up new opportunities in understanding how lipid homeostasis is regulated, how the fibrate hypolipidaemic drugs may act and should lead to improvements in the assessment of human risk from peroxisome proliferators based upon a better understanding of their mechanism of action.

Mechanisms of Symptomatic Spinal Cord Ischemia After TEVAR: Insights From the European Registry of Endovascular Aortic Repair Complications (EuREC).

Abstract Purpose: To test the hypothesis that simultaneous closure of at least 2 independent vascular territories supplying the spinal cord and/or prolonged hypotension may be associated with symptomatic spinal cord ischemia (SCI) after thoracic endovascular aortic repair (TEVAR). Methods: A pattern matching algorithm was used to develop a risk model for symptomatic SCI using a prospective 63-patient single-center cohort to test the positive predictive value (PPV) of prolonged intraoperative hypotension and/or simultaneous closure of at least 2 of 4 the vascular territories supplying the spinal cord (left subclavian, intercostal, lumbar, and hypogastric arteries). This risk model was then applied to data extracted from the multicenter European Registry on Endovascular Aortic Repair Complications (EuREC). Between 2002 and 2010, the 19 centers participating in EuREC reported 38 (1.7%) cases of symptomatic spinal cord ischemia among the 2235 patients in the database. Results: In the single-center cohort, direct correlations were seen between the occurrence of symptomatic SCI and both prolonged intraoperative hypotension (PPV 1.00, 95% CI 0.22 to 1.00, p = 0.04) and simultaneous closure of at least 2 independent spinal cord vascular territories (PPV 0.67, 95% CI 0.24 to 0.91, p = 0.005). Previous closure of a single vascular territory was not associated with an increased risk of symptomatic spinal cord ischemia (PPV 0.07, 95% CI 0.01 to 0.16, p = 0.56). The combination of prolonged hypotension and simultaneous closure of at least 2 territories exhibited the strongest association (PPV 0.75, 95% CI 0.38 to 0.75, p<0.0001). Applying the model to the entire EuREC cohort found an almost perfect agreement between the predicted and observed risk factors (kappa 0.77, 95% CI 0.65 to 0.90). Conclusion: Extensive coverage of intercostal arteries alone by a thoracic stent-graft is not associated with symptomatic SCI; however, simultaneous closure of at least 2 vascular territories supplying the spinal cord is highly relevant, especially in combination with prolonged intraoperative hypotension. As such, these results further emphasize the need to preserve the left subclavian artery during TEVAR.

Children's work in Spanish textiles during the 19th and 20th Centuries

This essay deals with the reasons explaining children s work in 19th century textile factories and their removal during the first part of the 20th century. The inadequacy of the structure of incomes and expenditures of the household and the very low economic incentives to educate children can explain why children were in the factories and not in the school. Moreover, the marginal economic contribution to the economy of the household of a child was the same as that of his mother. This normally implied that women and children were perfect substitutes. When the family had a child at working age this allowed to replace the paid work input of the mother. With the beginnings of the 20th century a set of changes leading to the increase of women s productivity and hourly real wages, switched the situation and involved the new incorporation of women into paid work and the investment in children s human capital.

Long run relationships and price rigidity

I study a repeated buyer-seller relationship for the exchange of a givengood. Asymmetric information over the buyer's reservation price, which issubject to random shocks, may lead the seller to use a rigid pricing policydespite the possibility of making higher profits through price discriminationacross the different satates of the buyer's reservation price. The existence of a flexible price subgame perfect equilibrium is shown for the buyerssufficiently locked-in. When the seller faces a population of buyers whose degree of involvmentin the relatioship is unknown, the flexible price equilibrium is notnecessarily optimal. Thus tipically the seller will prefer to use therigid price strategy. A learning process allowing the seller to screenthe population of buyers is derived abd the existence of a switching pointbetween the two regimes (i.e. price rigidity and price felxibility) isshown.

Effects of uncertain lifetime and annuity insurance on capital accumulation and growth

This paper studies the effects of uncertain lifetime on capitalaccumulation and growth and also the sensitivity of thoseeffects to the existence of a perfect annuities market. Themodel is an overlapping generations model with uncertainlifetimes. The technology is convex and such that the marginalproduct of capital is bounded away from zero. A contribution ofthis paper is to show that the existence of accidental bequestsmay lead the economy to an equilibrium that exhibits asymptoticgrowth, which is impossible in an economy with a perfect annuitiesmarket or with certain lifetimes. This paper also shows that ifindividuals face a positive probability of surviving in everyperiod, they may be willing to save at any age. This effect ofuncertain lifetime on savings may also lead the economy to anequilibrium exhibiting asymptotic growth even if there exists aperfect annuities market.

On bounds for network revenue management

The Network Revenue Management problem can be formulated as a stochastic dynamic programming problem (DP or the\optimal" solution V *) whose exact solution is computationally intractable. Consequently, a number of heuristics have been proposed in the literature, the most popular of which are the deterministic linear programming (DLP) model, and a simulation based method, the randomized linear programming (RLP) model. Both methods give upper bounds on the optimal solution value (DLP and PHLP respectively). These bounds are used to provide control values that can be used in practice to make accept/deny decisions for booking requests. Recently Adelman [1] and Topaloglu [18] have proposed alternate upper bounds, the affine relaxation (AR) bound and the Lagrangian relaxation (LR) bound respectively, and showed that their bounds are tighter than the DLP bound. Tight bounds are of great interest as it appears from empirical studies and practical experience that models that give tighter bounds also lead to better controls (better in the sense that they lead to more revenue). In this paper we give tightened versions of three bounds, calling themsAR (strong Affine Relaxation), sLR (strong Lagrangian Relaxation) and sPHLP (strong Perfect Hindsight LP), and show relations between them. Speciffically, we show that the sPHLP bound is tighter than sLR bound and sAR bound is tighter than the LR bound. The techniques for deriving the sLR and sPHLP bounds can potentially be applied to other instances of weakly-coupled dynamic programming.