Quality and Competition: An Empirical Analysis across Industries, March 2006

This paper empirically explores the link between quality and concentration in a cross-section of manufactured goods. Using concentration data and product quality indicators, an ordered probit estimation explores the impact of concentration on quality that is defined as an index of quality characteristics. The results demonstrate that market concentration and quality are positively correlated across different industries. When industry concentration increases, the likelihood of the product being higher quality increases and the likelihood of observing a lower quality decreases.

Nevera, mp3, mòbil... quin és el seu paper actual?

Des dels seus inicis, l’ésser humà ha tingut una sèrie de necessitats. Ha requerit d’aliment per sobreviure, d’un sostre on refugiar-se, de roba per vestirse, etc. Conforme han passat els anys, ha anat generant tècniques per a millorar la seva estància al planeta, des del descobriment del foc per escalfarse fins al desenvolupament de màquines complexes. És per això, que ha anat introduint invents a la seva vida que han cobert les necessitats sorgides al llarg del temps.El treball que desenvolupem a continuació es centra en un seguit d’aparells que han sorgit al llarg del segle XX i que han revolucionat la nostra vida. Concretament, els set aparells escollits com a objecte del nostre estudi són: la nevera, la rentadora, l’automòbil, la televisió, el reproductor d’àudio portàtil, el telèfon mòbil i l’ordinador.L’aparició d’electrodomèstics, com la nevera o la rentadora, no només ens ha permès dedicar menys esforç a les tasques domèstiques, sinó també estalviarnos temps a l’hora de realitzar-les. Aquest fet, que ara potser ni tan sols considerem, va ser del tot determinant a l’època que van sorgir, ja que va permetre alliberar mà d’obra domèstica promovent la inserció al mercat laboral d’un sector de la població com el del sexe femení.Per la seva banda, la introducció de l’automòbil també ha estat un gran avenç. Aquest, ha revolucionat la manera de desplaçar-nos, proporcionant-nos una autonomia fins aleshores impensable.Aquest mateix patró segueixen la resta d’altres aparells escollits; tots van provocar un canvi profund a la societat amb la seva aparició i, encara avui, segueixen mantenint un paper destacat al nostre dia a dia. La importància que tenen a les nostres vides ha estat la motivació que ens ha conduït a dur a terme un treball que els tingués com a protagonistes.El nostre treball consta de dues parts:A la primera, de caràcter teòric, ens hem proposat estudiar la història d’aquests aparells, és a dir, hem volgut donar resposta a una sèrie de preguntes com: quan van aparèixer, quins van ser els seus creadors i quines transformacions han anat experimentant al llarg del temps, entre d’altres.A la segona part, més pràctica, hem realitzat un treball de camp (les característiques del qual expliquem detalladament a l’apartat següent) amb l’objectiu d’analitzar la rellevància que tenen aquests aparells a la societat actual. És a dir, hem volgut saber quins aparells, dels escollits, són els més valorats per la població avui dia i quins són els que menys. Pensem que l’ús que els enquestats fan d’aquests béns serà un criteri clau a l’hora de puntuarlos, encara que no l’únic. Hem realitzat aquest anàlisi diferenciant els individus per franges d’edat i sexes. A més, també hem treballat altres qüestions comserien, entre d’altres, si el seu ús s’entén com una necessitat o va encaminat cap a l’oci; quant temps triguen els usuaris a renovar-los, quin és el motiu, etc. En relació amb aquesta segona part, hem formulat un seguit d’hipòtesis amb l’objectiu de contrastar-les posteriorment amb els resultats de les enquestes.Les hipòtesis són:- Avui dia, els individus donen més importància a aquells aparells que són més moderns, (entenent com a tals, aquells que han sorgit més recentment i estan lligats a les noves tecnologies i la innovació contínua), com poden ser l’ordinador i el telèfon mòbil, que els electrodomèstics més tradicionals com serien la nevera o la rentadora. Tot això, a més, considerant que pel que fa als primers, entenem que part del seu ús està destinat a l’oci; mentre que pels segons el seu ús està motivat per una necessitat, com seria l’alimentació en el cas de la nevera.- Pel que fa a les franges d’edat, les valoracions mostraran diferències importants en els diversos aparells. Entre la franja més jove (de 16 a 25 anys) i la de més edat (més de 60 anys), les valoracions seran més extremes, gairebé oposades.- Pel que fa als dos sexes, les valoracions que donin als aparells seran molt semblants.Hem considerat que per a dur a terme un bon anàlisi, el més adequat és presentar la informació de cada aparell per separat. És per això que cada bé constitueix un apartat independent que consta d’una primera part referent a la seva història, i una segona referent als resultats obtinguts de les enquestes.A continuació, hem procedit a ajuntar els resultats extrets dels diferents aparells i a presentant-los de forma conjunta per a comparar-los. Així, hem pogut contrastar les nostres hipòtesis inicials i hem raonat possibles causes que justificarien dels resultats obtinguts.

Locating emergency services with priority rules: The priority queuing covering location problem

One of the assumptions of the Capacitated Facility Location Problem (CFLP) is thatdemand is known and fixed. Most often, this is not the case when managers take somestrategic decisions such as locating facilities and assigning demand points to thosefacilities. In this paper we consider demand as stochastic and we model each of thefacilities as an independent queue. Stochastic models of manufacturing systems anddeterministic location models are put together in order to obtain a formula for thebacklogging probability at a potential facility location.Several solution techniques have been proposed to solve the CFLP. One of the mostrecently proposed heuristics, a Reactive Greedy Adaptive Search Procedure, isimplemented in order to solve the model formulated. We present some computationalexperiments in order to evaluate the heuristics performance and to illustrate the use ofthis new formulation for the CFLP. The paper finishes with a simple simulationexercise.

Are Standards Always Protectionist?

We analyze the effects of a domestic standard that reduces an externality associated with the consumption of the good targeted by the standard, using a model in which foreign and domestic producers compete in the domestic good market. Producers can reduce expected damage associated with the externality by incurring a cost that varies by source of origin. Despite potential protectionism, the standard is useful in correcting the consumption externality in the domestic country. Protectionism occurs when the welfare-maximizing domestic standard is higher than the international standard maximizing welfare inclusive of foreign profits. The standard is actually anti-protectionist when foreign producers are much more efficient at addressing the externality than are domestic producers. Possible exclusion of domestic or foreign producers arises with large standards, which may alter the classification of a standard as protectionist or non-protectionist. The paper provides important implications for the estimation and use of tariff equivalents of nontariff barriers.

Solving two production scheduling problems with sequence-dependent set-up times

In today’s competitive markets, the importance of goodscheduling strategies in manufacturing companies lead to theneed of developing efficient methods to solve complexscheduling problems.In this paper, we studied two production scheduling problemswith sequence-dependent setups times. The setup times areone of the most common complications in scheduling problems,and are usually associated with cleaning operations andchanging tools and shapes in machines.The first problem considered is a single-machine schedulingwith release dates, sequence-dependent setup times anddelivery times. The performance measure is the maximumlateness.The second problem is a job-shop scheduling problem withsequence-dependent setup times where the objective is tominimize the makespan.We present several priority dispatching rules for bothproblems, followed by a study of their performance. Finally,conclusions and directions of future research are presented.

The wage effect of an indexation clause: Evidence from Spanish manufacturing firms

An endogenous switching model of ex-ante wage changes under indexed and non-indexed settlements is estimated for the Spanish manufacturing sector using collective bargaining firm data for the 1984-1991 period. The likelihood of indexing the settlement is higher for nationwide unions than for other union groups within the works council and increases with the expected level of inflation. For wage change equations, a common structure for indexed and non-indexed settlements is strongly rejected, showing a source of nominal rigidity. For indexed contracts, the expected ex-ante total inflation coverage is nearly complete. It is also shown that workers pay a significant ex-ante wage change premium (differential) to obtain a cost of living allowance clause. However, the realised contingent compensation exceeds such a premium for all industries. Finally, important spillover effects in wage setting and the decision to index the settlement have been detected.

Does foreign direct investment crowd out domestic entrepreneurship?

In analyzing firm entry and exit across Belgian manufacturing industries,this paper presents evidence that import competition and foreign directinvestment discourage entry and stimulate exit of domestic entrepreneurs.These results are in line with theoretical occupational choice modelsthat predict foreign direct investment would crowd out domesticentrepreneurs through their selections in product and labor markets.However, the empirical results also suggest that this crowding out effectmay be moderated or even reversed in the long-run due to the long termpositive effects of FDI on domestic entrpreneurship as a result oflearning, demonstration, networking and linkage effects between foreignand domestic firms.

Drivers and sources of supply flexibility: An exploratory study

Purpose - There has been much research on manufacturing flexibility, but supply chain flexibility is still an under-investigated area. This paper focuses on supply flexibility, the aspects of flexibility related to the upstream supply chain. Our purpose is to investigate why and how firms increase supply flexibility.Methodology/Approach An exploratory multiple case study was conducted. We analyzed seven Spanish manufacturers from different sectors (automotive, apparel, electronics and electrical equipment).Findings - The results show that there are some major reasons why firms need supply flexibility (manufacturing schedule fluctuations, JIT purchasing, manufacturing slack capacity, low level of parts commonality, demand volatility, demand seasonality and forecast accuracy), and that companies increase this type of flexibility by implementing two main strategies: to increase suppliers responsiveness capability and flexible sourcing . The results also suggest that the supply flexibility strategy selected depends on two factors: the supplier searching and switching costs and the type of uncertainty (mix, volume or delivery).Research limitations - This paper has some limitations common to all case studies, such as the subjectivity of the analysis, and the questionable generalizability of results (since the sample of firms is not statistically significant).Implications - Our study contributes to the existing literature by empirically investigating which are the main reasons for companies needing to increase supply flexibility, how they increase this flexibility, and suggesting some factors that could influence the selection of a particular supply flexibility strategy.

Multi-period vendor managed inventory systems

In this paper we develop two models for an inventory system in which the distributormanages the inventory at the retailers location. These type of systems correspondto the Vendor Managed Inventory (VMI) systems described ib the literature. Thesesystems are very common in many different types of industries, such as retailingand manufacturing, although assuming different characteristics.The objective of our model is to minimize total inventory cost for the distributorin a multi-period multi-retailer setting. The inventory system includes holdingand stock-out costs and we study the case whre an additional fixed setup cost ischarged per delivery.We construct a numerical experiment to analyze the model bahavior and observe theimpact of the characteristics of the model on the solutions.

Entrepreneurial structure of the mercantile company in pre-industrial Catalonia

The mercantile company was the basic form of enterprise in pre-industrial Catalonia. The aim of this paper is to study the formation and development of the mercantile companies in Barcelona whose end was the wholesale and retail sale of textiles in the botigues de teles (textile retail shops) throughout the eighteenth century. These firms were officially registered before a notary and their deeds reveal how these establishments were administered and managed.The study covers a sample of 121 mercantile companies, and the articles and documentation that were put into effect by 32 notaries who were active in Barcelona in the 18th century have been consulted in their entirety. From an initial selection of documentation, a total of 228 deeds registering companies have been found, 107 of which (47%) relate to the creation of companies whose various activities were centred in taverns, textile manufacturing, braiding.... While the 121 companies, which make up our sample and which account for 53% of the deeds registered with the notaries mentioned above, focused exclusively on the management of textile retail shops located in the commercial heart of the city. Thus one point of interest that the documentation reveals is that the majority of the mercantile companies registered by Barcelona notaries throughout the 18th century were establishments which traded in textiles. The first part of the article focuses on the structural characteristics of these enterprises, the number and socio-professional status of the partners and the extent of each partner s involvement in the administration and management. The second part of the article examines the capital investment made by each partner, their rights and obligations agreed on, the sharing out of profits and possible losses and the duration of the companies. The final aim of the paper is to highlight the evolution of these companies through one specific case.

Foreign ownership and productivity dynamics

In analyzing the distinctive contribution of foreign subsidiaries anddomestic firms to productivity growth in aggregate Belgian manufacturing,this paper shows that foreign ownership is an important source of firmheterogeneity affecting productivity dynamics. Foreign firms havecontributed disproportionately large to aggregate productivity growth,but more importantly reallocation processes differ significantly betweenthe groups of foreign subsidiaries and domestic firms.

Entrepreneurial risk, investment and innovation

In this paper I develop a general equilibrium model with risk averse entrepreneurialfirms and with public firms. The model predicts that an increase in uncertainty reducesthe propensity of entrepreneurial firms to innovate, while it does not affect thepropensity of public firms to innovate. Furthermore, it predicts that the negativeeffect of uncertainty on innovation is stronger for the less diversified entrepreneurialfirms, and is stronger in the absence of financing frictions in the economy. In thesecond part of the paper I test these predictions on a dataset of small and mediumItalian manufacturing firms.

Endogeneizing know-how flows through the nature of R&D investments

In this paper we carefully link knowledge flows to and from a firm s innovation process with this firm s investment decisions. Three types of investments are considered: investments in applied research, investments in basic research, and investments in intellectual property protection. Only when basic research is performed, can the firm effectively access incoming knowledge flows and these incoming spillovers serve to increase the efficiency of own applied research. The firm can at the same time influence outgoing knowledge flows, improving appropriability of its innovations, by investing in protection. Our results indicate that firms with small budgets for innovation will not invest in basic research. This occurs in the short run, when the budget for know-how creation is restricted, or in the long-run, when market opportunities are low, when legal protection is not very important, or, when the pool of accessible and relevant external know-how is limited. The ratio of basic to applied research is non-decreasing in the size of the pool of accessible external know-how, the size and opportunity of the market, and, the effectiveness of intellectual property rights protection. This indicates the existence of economies of scale in basic research due to external market related factors. Empirical evidence from a sample of innovative manufacturing firms in Belgium confirms the economies of scale in basic research as a consequence of the firm s capacity to access external knowledge flows and to protectintellectual property, as well as the complementarity between legal and strategic investments.