Mergers in Durable Goods Industries

Revised 2008-11.-- Published as an article in: Journal of Economic Behavior & Organization, 2008, 68, pp. 691-701.

Non-Stationary Demand in a Durable Goods Monopoly

In a context where demand for the services of a durable good changes over time, and this change may be uncertain, the paper shows that social welfare may be higher when the monopolist seller can commit to any future price level she wishes than when she cannot. Moreover, the equilibrium under a monopolist with commitment power may Pareto-dominate the equilibrium under a monopolist without commitment ability. These results affect the desired regulation of a durable goods monopolist in this context.

Optimal overall emissions taxation in durable goods oligopoly

We analyze optimal second-best emission taxes in a durable good industry under imperfect competition. The analysis is performed for three different types of emissions and for situations where the good is rented, sold or simultaneously sold and rented. We show, for durable goods that may cause pollution in a period (or in periods) different from the production period, that the expected overall emission tax and the expected total marginal environmental damage per unit produced in each period are the relevant variables to consider in the analysis of overinternalization and in the comparison of optimal emission taxes for renting, selling and renting-selling firms. Our results allow to extend some previous results in the literature to these durable goods and provide an adequate perspective on some other results (in particular, we point out the limitations of focusing only, for those durable goods, on the level and effects of the optimal emission tax in the production period).

Essays on durable goods consumption and firm innovation

This dissertation comprises three individual chapters. Chapter Two examines how free riding across neighbors influenced the diffusion of color television sets in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors concerning its patent output. Chapter Four discusses how knowledge stocks influence a patenting firm’s later diversification. Chapter Two documents the existence of a type of network effects—free riding across neighbors—in the consumption of color television sets in rural China, which reduces the propensity of non-owners to purchase. I construct a model of the timing of the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors about its patent output by examining insider trading patterns and stock price changes in R&D intensive firms. It demonstrates that management has considerable information about its patent output beyond what is known to investors. It also shows that the predictive power of insider trading patterns on patent output comes from purchases rather than sales. Chapter Four discusses two sequential channels through which knowledge stocks may influence a firm’s later diversification. One is that firms with more knowledge are more likely to enter a new industry. The other is that firms’ businesses have a better chance of surviving, conditional on being formed. By examining U.S. public patenting firms in manufacturing sectors for 1984-1996, I find that knowledge stocks predict the likelihood of new industry entry when controlling for firm size. However, this predictive power is weakened when diversification effects are included. On the other hand, a survival study of newly established segments shows that initial knowledge stocks have significant positive effects on segment survival, whereas diversification effects are insignificant.

La elección de la marca del distribuidor en productos duraderos: factores de influencia

[ES] La apuesta de la distribución por la extensión de su marca a las categorías de productos duraderos, como electrodomésticos y productos electrónicos para el hogar, ha demostrado ser acertada, a pesar de las críticas en contra de esta estrategia. Posiblemente, la mayor familiaridad del consumidor con las marcas del distribuidor, el cambio de actitud favorable hacia éstas, la disponibilidad de la tecnología, y por qué no, la crisis económica internacional que afecta a las economías domésticas, pueden ser factores explicativos de este éxito.

Global Reuse and Optimal Waste Policy

Electronic waste generated from the consumption of durable goods in developed countries is often exported to underdeveloped countries for reuse, recycling and disposal with unfortunate environmental consequences. The lack of efficient disposal policies within developing nations coupled with global free trade agreements make it difficult for consumers to internalize these costs. This paper develops a two-country model, one economically developed and the other underdeveloped, to solve for optimal tax policies necessary to achieve the efficient allocation of economic resources in an economy with a durable good available for global reuse without policy measures in the underdeveloped country. A tax in the developed country on purchases of the new durable good combined with a waste tax set below the domestic external cost of disposal is sufficient for global efficiency. The implication of allowing free global trade in electronic waste is also examined, where optimal policy resembles a global deposit-refund system.

Current industrial reports.

Description based on: Jan. 1979; title from cover.

New method, which teaches how to make vegetable manure, by a course of high fermentation, in fifteen days, without cattle, as good and more durable than farm manure: to appropriate it to the nature of soils and families of plants, and with great economy: it further shows how to prepare vegetable and mineral composts, and contains various processes.

Microfilm. Ann Arbor, Mich., Xerox University Microfilms, 1974. 1 reel. 35 mm. (American Culture Series, reel 617.3)

Sustainability = Good Design

Sustainable design is fundamentally a subset of good design.The description of good design will eventually include criteria for the creation of a healthy environment and energy efficiency. These goals will be achieved by an emergent paradigm of design practice:integration.At every level design interests will come together to facilitate common goals for the creation of a rewarding present and a healthy future. Interdisciplinary design teams will flourish. Inter-accommodating and fluidly communicating political structures will grow. Coalescing social values and economic forces will propel integrated strategies. Unique and innovative solutions will increasingly become the objective. One eventual outcome of this integrated or sustainable design practice will be the development of buildings that produce more energy than they consume.

A good enough approach to setting planning obligations

In this paper we propose an alternative model of, what is often called, land value capture in the planning system. Based on development viability models, negotiations and policy formation regarding the level of planning obligations have taken place at the local level with little clear guidance on technique, approach and method. It is argued that current approaches are regressive and fail to reflect how the ability of sites to generate planning gain can vary over time and between sites. The alternative approach suggested here attempts to rationalise rather than replace the existing practice of development viability appraisal. It is based upon the assumption that schemes with similar development values should produce similar levels of return to the landowner, developer and other stakeholders in the development as well as similar levels of planning obligations in all parts of the country. Given the high level of input uncertainty in viability modelling, a simple viability model is ‘good enough’ to quantify the maximum level of planning obligations for a given level of development value. We have argued that such an approach can deliver a more durable, equitable, simpler, consistent and cheaper method for policy formation regarding planning obligations.

Factors Associated with Durable Response to Infliximab in Crohnʼs Disease 5 Years and Beyond: A Multicenter International Cohort

BACKGROUND: Infliximab (IFX) has been used for over a decade worldwide. Less is known about the natural history of IFX use beyond a few years and which patients are more likely to sustain benefits. METHODS: Patients with Crohn's disease (CD) exposed to IFX from Massachusetts General Hospital, Boston, Saint-Antoine Hospital, Paris, and the Swiss IBD Cohort Study were identified through retrospective and prospective data collection, complemented by chart abstraction of electronic medical records. We compared long-term users of IFX (>5 yr of treatment, long-term users of infliximab [LTUI]), with non-LTUI patients to identify prognostic factors. RESULTS: We pooled data on 1014 patients with CD from 3 different databases, of whom 250 were defined as LTUI. The comparison group comprised 290 patients with CD who discontinued IFX: 48 primary nonresponses, 95 loss of responses, and 147 adverse events. Factors associated with LTUI were colonic involvements and an earlier age at the start of IFX. The prevalence of active smokers and obese patients differed markedly, but inversely, between American and European centers but did not impact outcome. The discontinuation rate was stable around 3% to 6%, each year from years 3 to 10. CONCLUSIONS: Young age at start of IFX and colonic CD are factors associated with a beneficial long-term use of IFX. After 5 years of IFX, there is still a 3% to 5% discontinuation rate annually. Several factors associated with a good initial response such as nonsmoker and shorter disease duration at IFX initiation do not seem associated with a longer term response.

Influencia de la adición de nanosílice y microsílice en el comportamiento mecánico, microestructural y durable de un hormigón autocompactante

Desde mediados de la década de los 80 se está investigando sobre el hormigón autocompactante. Cada día, su uso en el mundo de la construcción es más común debido a sus numerosas ventajas como su excelente fluidez ya que puede fluir bajo su propio peso y llenar encofrados con formas complicadas y muy armados sin necesidad de compactaciones internas o externas. Por otra parte, la búsqueda de materiales más resistentes y duraderos, ha dado lugar a la incorporación de adiciones en materiales a base de cemento. En las últimas dos décadas, los ensayos con los nanomateriales, ha experimentado un gran aumento. Los resultados hasta ahora obtenidos pueden asumir no sólo un aumento en la resistencia de estos materiales, pero un cambio es su funcionalidad. Estas nanopartículas, concretamente la nanosílice, no sólo mejoran sus propiedades mecánicas y especialmente sus propiedades durables, sino que pueden implicar un cambio sustancial en las condiciones de uso y en su ciclo de vida. Este trabajo tiene como principal objetivo el estudio de las propiedades mecánicas, características microestructurales y durables de un hormigón autocompactante cuando se le agrega como adición nanosílice, microsílice y mezcla binarias de ambas, como adición al cemento. Para ello se han realizado 10 mezclas de hormigón. Se utilizó como referencia un hormigón autocompactante obtenido con cemento, caliza, árido, aditivo modificador de viscosidad Se han fabricado tres hormigones con la misma dosificación pero con diferentes contenidos de nanosílice. 2,5%, 5% y 7,5% Tres dosificaciones con adición de microsílice 2,5%, 5% y 7,5% y las tres restantes con mezclas binarias de nanosílice y microsílice con respectivamente2,5%-2,5%, 5%-2,5% y 2,5%-5%, sobre el peso del cemento. El contenido de superplastificante se modificó para conseguir las características de autocompactabilidad. Para observar los efectos de las adiciones añadidas al hormigón, se realiza una extensa campaña experimental. En ella se evaluaron en primer lugar, las características de autocompactabilidad del material en estado fresco, mediante los ensayos prescritos en la Instrucción Española del hormigón estructural EHE 08. Las propiedades mecánicas fueron evaluadas con ensayos de resistencia a compresión, resistencia a tracción indirecta y módulo de elasticidad. Las características microestructurales fueron analizadas mediante porosimetría por intrusión de mercurio, el análisis termogravimétrico y la microscopía electrónica de barrido. Para el estudio de la capacidad durable de las mezclas se realizaron ensayos de resistividad eléctrica, migración de cloruros, difusión de cloruros, carbonatación acelerada, absorción capilar y resistencia al hielo-deshielo. Los resultados ponen de manifiesto que la acción de las adiciones genera mejoras en las propiedades resistentes del material. Así, la adición de nanosílice proporciona mayores resistencias a compresión que la microsílice, sin embargo las mezclas binarias con bajas proporciones de adición producen mayores resistencias. Por otra parte, se observó mediante la determinación de las relaciones de gel/portlandita, que las mezclas que contienen nanosílice tienen una mayor actividad puzolánica que las que contienen microsílice. En las mezclas binarias se obtuvo como resultado que mientras mayor es el contenido de nanosílice en la mezcla mayor es la actividad puzolánica. Unido a lo anteriormente expuesto, el estudio de la porosidad da como resultado que la adición de nanosílice genera un refinamiento del tamaño de los poros mientras que la adición de microsílice disminuye la cantidad de los mismos sin variar el tamaño de poro medio. Por su parte, en las micrografías, se visualizó la formación de cristales procedentes de la hidratación del cemento. En ellas, se pudo observar, que al adicionar nanosílice, la velocidad de hidratación aumenta al aumentar la formación de monosulfoaluminatos con escasa presencia de etringita. Mientras que en las mezclas con adición de microsílice se observan mayor cantidad de cristales de etringita, lo que confirma que la velocidad de hidratación en estos últimos fue menor. Mediante el estudio de los resultados de las pruebas de durabilidad, se observó que no hay diferencias significativas entre el coeficiente de migración de cloruros y el coeficiente de difusión de cloruros en hormigones con adición de nano o microsílice. Aunque este coeficiente es ligeramente menor en mezclas con adición de microsílice. Sin embargo, en las mezclas binarias de ambas adiciones se obtuvo valores de los coeficientes de difusión o migración de cloruros inferiores a los obtenidos en mezclas con una única adición. Esto se evidencia en los resultados de las pruebas de resistividad eléctrica, de difusión de cloruros y de migración de cloruros. Esto puede ser debido a la suma de los efectos que producen el nano y micro adiciones en la porosidad. El resultado mostró que nanosílice tiene un papel importante en la reducción de los poros y la microsílice disminuye el volumen total de ellos. Esto permite definir la vida útil de estos hormigones a valores muy superiores a los exigidos por la EHE-08, por lo que es posible reducir, de forma notable, el recubrimiento exigido en ambiente de alta agresividad asegurando un buen comportamiento en servicio. Por otra parte, la pérdida de masa debido a los ciclos de congelación-descongelación es significativamente menor en los hormigones que contienen nanosílice que los que contienen microsílice. Este resultado está de acuerdo con el ensayo de absorción capilar. De manera general, se puede concluir que son las mezclas binarias y más concretamente la mezcla con un 5% de nanosílice y 2,5% de microsílice la que presenta los mejores resultados tanto en su comportamiento resistente con en su comportamiento durable. Esto puede ser debido a que en estas mezclas la nanosílice se comporta como un núcleo de activación de las reacciones puzolánicas rodeado de partículas de mayor tamaño. Además, el extraordinario comportamiento durable puede deberse también a la continuidad en la curva granulométrica por la existencia de la microsílice, el filler calizo, el cemento, la arena y la gravilla con tamaños de partículas que garantice mezclas muy compactas que presentan elevadas prestaciones. Since the middle of the decade of the 80 is being investigated about self-consolidating concrete. Every day, its use in the world of construction is more common due to their numerous advantages as its excellent fluidity such that it can flow under its own weight and fill formworks with complicated shapes and congested reinforcement without need for internal or external compactions. Moreover, the search for more resistant and durable materials, has led to the incorporation of additions to cement-based materials. In the last two decades, trials with nanomaterials, has experienced a large increase. The results so far obtained can assume not only an increase in the resistance of these materials but a change is its functionality. These nano particles, particularly the nano silica, not only improve their mechanical properties and especially its durable properties, but that may imply a substantial change in the conditions of use and in their life cycle. This work has as its main objective the study of the mechanical properties, the microstructural characteristics and durability capacity in one self-compacting concrete, when added as addition to cement: nano silica, micro silica o binary mixtures of both. To this effect, 10 concrete mixes have been made. As reference one with a certain amount of cement, limestone filler, viscosity modifying additive and water/binder relation. Furthermore they were manufactured with the same dosage three mix with addition of 2.5%, 5% and 7.5% of nano silica by weight of cement. Other three with 2.5%, 5% and 7.5% of micro silica and the remaining three with binary mixtures of 2.5%-2.5%, 5%-2.5% and 2.5%-5% of silica nano-micro silica respectively, b weight of cement, varying only the amount of superplasticizer to obtain concrete with characteristics of self-compactability. To observe the effects of the additions added to the concrete, an extensive experimental campaign was performed. It assessed, first, the characteristics of self-compactability of fresh material through the tests prescribed in the Spanish Structural Instruction Concrete EHE 08. The mechanical properties were evaluated by compression strength tests, indirect tensile strength and modulus of elasticity. The microstructural properties were analyzed by mercury intrusion porosimetry, thermogravimetric analysis and scanning electron microscopy. To study the durability, were performed electrical resistivity tests, migration and diffusion of chlorides, accelerated carbonation, capillary suction and resistance to freeze-thaw cycles. The results show that the action of the additions generates improvements in the strength properties of the material. Specifically, the addition of nano silica provides greater resistance to compression that the mix with micro silica, however binary mixtures with low addition rates generate higher strengths. Moreover, it was observed by determining relationships gel/portlandite, that the pozzolanic activity in the mixtures with nano silica was higher than in the mixtures with micro silica. In binary mixtures it was found that the highest content of nano silica in the mix is the one with the highest pozzolanic activity. Together with the foregoing, the study of the porosity results in the mixture with addition of nano silica generates a refinement of pore size while adding micro silica decreases the amount thereof without changing the average pore size. On the other hand, in the micrographs, the formation of crystals of cement hydration was visualized. In them, it was observed that by adding nano silica, the speed of hydration increases with increasing formation monosulfoaluminatos with scarce presence of ettringite. While in mixtures with addition of micro silica, ettringite crystals are observed, confirming that the hydration speed was lower in these mixtures. By studying the results of durability testing, it observed that no significant differences between the coefficient of migration of chlorides and coefficient of diffusion of chlorides in concretes with addition of nano or micro silica. Although this coefficient is slightly lower in mixtures with addition of micro silica. However, in binary mixtures of both additions was obtained values of coefficients of difusion o migration of chlorides lower than those obtained in mixtures with one of the additions. This is evidenced by the results of the tests electrical resistivity, diffusion of chlorides and migration of chlorides. This may be due to the sum of the effects that produced the nano and micro additions in the porosity. The result showed that nano silica has an important role in the pores refining and the micro silica decreases the total volume of them. This allows defining the life of these concretes in values to far exceed those required by the EHE-08, making it possible to reduce, significantly, the coating required in highly aggressive environment and to guarantee good behavior in service. Moreover, the mass loss due to freeze-thaw cycles is significantly lower in concretes containing nano silica than those containing micro silica. This result agrees with the capillary absorption test. In general, one can conclude that the binary mixture and more specifically the mixture with 5% of nano silica and 2.5% silica fume is which presents the best results in its durable behavior. This may be because in these mixtures, the nano silica behaves as cores activation of pozzolanic reactions. In addition, the durable extraordinary behavior may also be due to the continuity of the grading curve due to existence of micro silica, limestone filler, cement, sand and gravel with particle sizes that guarantees very compact mixtures which have high performance.