Essays in Industrial Organization

This dissertation comprises four essays on the topic of industrial organization and environmental economics. The first essay investigates the profitability of horizontal mergers of firms with price adjustments. We take a differential game approach and both the open-loop as well as the closed-loop equlibria are considered. In the second essay, using the same approach as the first one, we study the profitability of horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. The third essay studies the profitability of exogenous output constraint in a differential game model with price dynamics under the feedback strategies. The fourth essay investigates a second-best trade agreement between two countries when pollution spillovers are asymmetric to examine the strategic behavior of governments in using pollution taxes and tariffs under trade liberalization.

Essays in Industrial Organization and Information Technology

Chapter 1 studies how consumers’ switching costs affect the pricing and profits of firms competing in two-sided markets such as Apple and Google in the smartphone market. When two-sided markets are dynamic – rather than merely static – I show that switching costs lower the first-period price if network externalities are strong, which is in contrast to what has been found in one-sided markets. By contrast, switching costs soften price competition in the initial period if network externalities are weak and consumers are more patient than the platforms. Moreover, an increase in switching costs on one side decreases the first-period price on the other side. Chapter 2 examines firms’ incentives to invest in local and flexible resources when demand is uncertain and correlated. I find that market power of the monopolist providing flexible resources distorts investment incentives, while competition mitigates them. The extent of improvement depends critically on demand correlation and the cost of capacity: under social optimum and monopoly, if the flexible resource is cheap, the relationship between investment and correlation is positive, and if it is costly, the relationship becomes negative; under duopoly, the relationship is positive. The analysis also sheds light on some policy discussions in markets such as cloud computing. Chapter 3 develops a theory of sequential investments in cybersecurity. The regulator can use safety standards and liability rules to increase security. I show that the joint use of an optimal standard and a full liability rule leads to underinvestment ex ante and overinvestment ex post. Instead, switching to a partial liability rule can correct the inefficiencies. This suggests that to improve security, the regulator should encourage not only firms, but also consumers to invest in security.

Outdoor production of Isochrysis galbana (T-iso) in industrial scale photobioreactors and modelling of its photosynthesis and respiration rate

Isochrysis galbana is a widely-used strain in aquaculture in spite of its low productivity. To maximize the productivity of processes based on this microalgae strain, a model was developed considering the influence of irradiance, temperature, pH and dissolved oxygen concentration on the photosynthesis and respiration rate. Results demonstrate that this strain tolerates temperatures up to 35ºC but it is highly sensitive to irradiances higher than 500 µE·m-2·s-1 and dissolved oxygen concentrations higher than 11 mg·l-1. With the researcher group of the “Universidad de Almeria”, the developed model was validated using data from an industrial-scale outdoor tubular photobioreactor demonstrating that inadequate temperature and dissolved oxygen concentrations reduce productivity to half that which is maximal, according to light availability under real outdoor conditions. The developed model is a useful tool for managing working processes, especially in the development of new processes based on this strain and to take decisions regarding optimal control strategies. Also the outdoor production of Isochrysis galbana T-iso in industrial size tubular photobioreactors (3.0 m3) has been studied. Experiments were performed modifying the dilution rate and evaluating the biomass productivity and quality, in addition to the overall performance of the system. Results confirmed that T-iso can be produced outdoor at commercial scale in continuous mode, productivities up to 20 g·m-2·day-1 of biomass rich in proteins (45%) and lipids (25%) being obtained. The utilization of this type of photobioreactors allows controlling the contamination and pH of the cultures, but daily variation of solar radiation imposes the existence of inadequate dissolved oxygen concentration and temperature at which the cells are exposed to inside the reactor. Excessive dissolved oxygen reduced the biomass productivity to 68% of maximal, whereas inadequate temperature reduces to 63% of maximal. Thus, optimally controlling these parameters the biomass productivity can be duplicated. These results confirm the potential to produce this valuable strain at commercial scale in optimally designed/operated tubular photobioreactors as a biotechnological industry.

Prevalence, motivations, and adverse effects of vaginal practices in Africa and Asia: findings from a multicountry household survey

Background: Women worldwide use various vaginal practices to clean or modify their vulva and vagina. Additional population-level information is needed on prevalence and motivations for these practices, characteristics of users, and their adverse effects. Methods: This was a household survey using multistage cluster sampling in Tete, Mozambique; KwaZulu-Natal, South Africa; Yogyakarta, Indonesia; and Chonburi, Thailand. In 2006–2007, vaginal practices and their motivations were examined using structured interviews with women 18–60 years of age (n=3610). Results: Prevalence, frequency, and motivations varied markedly. Two thirds of women in Yogyakarta and Chonburi reported one or more practices. In Yogyakarta, nearly half ingest substances with vaginal effects, and in Chonburi, external washing and application predominate. In Tete, half reported three or four current practices, and a quarter reported five or more practices. Labial elongation was near universal, and 92% of those surveyed cleanse internally. Two third's in KwaZulu-Natal practiced internal cleansing. Insertion of traditional solid products was rare in Chonburi and Yogyakarta, but one tenth of women in KwaZulu-Natal and nearly two thirds of women in Tete do so. Multivariate analysis of the most common practice in each site showed these were more common among less educated women in Africa and young urban women in Asia. Explicit sexual motivations were frequent in KwaZulu-Natal and Tete, intended for pleasure and maintaining partner commitment. Practices in Chonburi and Yogyakarta were largely motivated by femininity and health. Genital irritation was common at African sites. Conclusions: Vaginal practices are not as rare, exotic, or benign as sometimes assumed. Limited evidence of their biomedical consequences remains a concern; further investigation of their safety and sexual health implications is warranted.

Toward a Global Organic Culture: Ethnographic Perspectives on Wwoofing Practices in Peru and New Zealand

In this thesis, I explore the meaning behind sustainable living among organic farmers and their families in two countries. It is based on original, ethnographic research that I conducted in New Zealand in fall 2012 and Peru in summer 2012 with support from the Department of Sociology and Anthropology Meerwarth Undergraduate Research Fund. In carrying out my research I relied on participant-observation, semi-structured interviews, focus groups, and writing ethnographic fieldnotes. Drawing on contemporary scholarship in the anthropology of food and the environment, my thesis contributes to cross-culturally understandings of sustainability and local and global foodways. Specifically, I will interpret the meaning and significance of my informants’ decision to live sustainably through their participation in wwoofing. The global network of wwoofing aims to connect volunteers interested in learning about organic farming techniques with farmers looking for labor assistance. Volunteers exchange work for food, accommodation, knowledge, and experience. As a method of farming and a subjective ideological orientation, this global movement allows travelers from all over the world to experience organic lifestyles worldwide. In my thesis, I connect my experiences of organic living in Peru and New Zealand. In comparing wwoofing practices in these two field sites, I argue that despite observable differences in organic practices, a global organic culture is emerging. Here I highlight some shared features of this global organic culture, such as food authenticity, sustainability of the earth, and a personal connection of individuals to the land. The global organic culture emphasizes a conscious awareness of what is going into one’s body and why. Using food as an expression of values and beliefs, organic farmers reconnect to the land and their food in attempts to construct an alternative identity. By focusing on food authenticity, my informants develop vast relationships with the land, which shapes their identity and creates new forms of self-enhancement.

Assessment of soil erosion and soil conservation practices in Angereb watershed, Ethiopia: Technological and land user context

Soil conservation technologies that fit well to local scale and are acceptable to land users are increasingly needed. To achieve this at small-holder farm level, there is a need for an understanding of specific erosion processes and indicators, the land users’ knowledge and their willingness, ability and possibilities to respond to the respective problems to decide on control options. This study was carried out to assess local erosion and performance of earlier introduced conservation terraces from both technological and land users’ points of view. The study was conducted during July to August 2008 at Angereb watershed on 58 farm plots from three selected case-study catchments. Participatory erosion assessment and evaluation were implemented along with direct field measurement procedures. Our focus was to involve the land users in the action research to explore with them the effectiveness of existing conservation measures against the erosion hazard. Terrace characteristics measured and evaluated against the terrace implementation guideline of Hurni (1986). The long-term consequences of seasonal erosion indicators had often not been known and noticed by farmers. The cause and effect relationships of the erosion indicators and conservation measures have shown the limitations and gaps to be addressed towards sustainable erosion control strategies. Less effective erosion control has been observed and participants have believed the gaps are to be the result of lack of landusers’ genuine participation. The results of both local erosion observation and assessment of conservation efficacy using different aspects show the need to promote approaches for erosion evaluation and planning of interventions by the farmers themselves. This paper describes the importance of human factor involving in the empirical erosion assessment methods towards sustainable soil conservation.

The Increasing Importance of Administrative Practices in the Shaping of the Welfare State

Dans cet article, nous analysons les changements de l' Etat-providence suédois a l' exemple des services municipaux de soins pour personnes agées. On montre qu'il est possible de tracer des processus de transformation à trois niveaux. Analysées comme phénomènes complèmentaires cela montre à quelle envergure les pratiques administratives sont devenues le lieu primordial de la mise en forme de l' Etat-providence. L'incorporation du managérialisme, comme mode prévalent de gouvernance et d'organisation de services et des politiques sociales mène a la conclusion qu'on devient temoin d'une transformation d' un regime (d Etat-providence) moral et politique à un regime administratif. Dans le dernier paragraphe, nous argumentons que cette transformation affaiblit la citoyenneté sociale et transfère les valeurs et principes de la politique sociale a la sphère administrative. Nous argumentons dès lors que cette perspective analytique a des implications plus larges pour la charactérization des “Welfare regimes” et pour l'analyse des différences transnationales.

Prescription patterns of antimicrobials in veterinary practices in Switzerland

OBJECTIVES The objective of this study was to analyse antimicrobial prescriptions by veterinarians and to evaluate the appropriateness of use compared with prudent use guidelines. PRACTICES AND METHODS: Computerized records of prescriptions and treatments from eight mixed veterinary practices were analysed over a period of 2 years. A total of 61 212 antimicrobial treatments were recorded. Treatments were classified according to animal species treated, indication for treatment, route of administration and antimicrobial class used. For each treatment and antimicrobial substance, the prescribed dose was calculated. Dosage, antimicrobial classes and combinations of different classes used for different indications were compared with published recommendations. RESULTS From the total amount of 1590 kg of active antimicrobial substance, sulphonamides (594 kg), tetracyclines (335 kg), and penicillins and cephalosporins (290 kg) were the classes of which the largest quantity was prescribed. Penicillins and cephalosporins were most frequently prescribed (37% of treatments), followed by aminoglycosides (18%), tetracyclines (14%) and sulphonamides (11%). Sixty-one per cent of the amount of antimicrobials prescribed was used for the treatment of groups of animals via feed or water. Antimicrobial classes classified as highest priority for human medicine by an international group of experts were used in 9% of the prescriptions. The dosage corresponded to the manufacturer's recommendation in 45% of the analysed prescriptions. CONCLUSIONS Most prescriptions corresponded well to guidelines on prudent use of antimicrobials. Nevertheless, the large variation of prescriptions among different veterinarians indicates that the usage of critical antimicrobial substances and the amount of antimicrobials used for group medication without a specific indication could be further reduced.