Information exchange through non-binding advance price announcements: an antitrust analysis

We study the welfare effects of non-binding advance price announcements. Applying a simulation-based approach in a differentiated Bertrand model with horizontal products and asymmetric information, we find that such announcements can help firms to gain information on each other thereby allowing them to achieve higher profits. However, our results also show that the overall welfare effects of such announcements in a context of heterogeneous products are not as clear-cut as previous research in a homogeneous products framework has suggested. We conclude that—although non-binding advance price announcements may raise competition concerns—in many settings, their positive effects are likely to outweigh the potential detrimental effects on welfare.     

Electoral Reform – Cui Bono? Attitudes of Romanian MPs to the Electoral System Change

Drawing on an original parliamentary survey, an analysis is undertaken of what motivates MPs elected in a closed proportional representation (PR) setting to consider changing this electoral system. Moves in this direction are quite rare and for this reason a case study of Romanian parliamentarians is proposed. Bivariate and multivariate statistical techniques are used to assess the impact of both power maximisation incentives and values. The main findings indicate that MPs were willing to replace the closed-list PR with a single member district alternative only when they perceived clear benefits for them (that is, re-election) or their party (that is, a positive impact, either at intra-party level or within the party system). These self-interested motivations are prioritised over nomination-related reasons and the possibility of a constituency-centred focus of representation.     

Book reviews

Mike Marqusee, REDEMPTION SONG: MUHAMMAD ALI AND THE SPIRIT OF THE SIXTIES (Verso Books, 1999)

Marilyn Buck, David Gilbert, and Laura Whitehorn, ENEMIES OF THE STATE, (Brooklyn, N.Y.: Resistance in Brooklyn Publication, 1998). Meyer, c/o WRL, 339 Lafayette Street, NY 10012 or mmmsrnb@igc.org.

Viviane Forrester, THE ECONOMIC HORROR (Cambridge, UK: The Polity Press [in association with Oxford, UK, and Maiden, Mass.: Blackwell Publishers], 1999).

Peter Roman, PEOPLE'S POWER: CUBA'S EXPERIENCE WITH REPRESENTATIVE GOVERNMENT (Boulder: Westview Press, 1999).

Stanislao G. Pugliese, CARLO ROSSELLI: SOCIALIST HERETIC AND ANTIFASCIST EXILE (Cambridge, Mass.: Harvard University Press, 1999).     

Do African Manufacturing Firms Learn from Exporting?

We use firm-level panel data for the manufacturing sector in four African countries to investigate whether exporting impacts on efficiency, and whether efficient firms self-select into the export market. Based on simultaneous estimation of a production function and an export regression, our preferred results indicate significant efficiency gains from exporting, which can be interpreted as learning by exporting. We show that modelling unobserved heterogeneity by a flexible approach is important for deriving this conclusion. A policy implication of our results is that Africa would gain from orientating its manufacturing sector towards exporting.     

The Effects of Competition Policy on Development – Cross-Country Evidence Using Four New Indicators

Over the last two decades, many developing countries have introduced competition policies. This paper introduces four new indicators on various aspects of competition laws and competition agencies to make competition policies comparable. These indicators are used to estimate the effects of competition policies and all four contribute at least marginally to explaining differences in total factor productivity. This is also true if developing countries are analysed separately. In addition to the direct effects of competition policy on total factor productivity, an indirect effect is identified: countries scoring high with regard to competition policy suffer less from corruption.     

Changing Living Standards in Southern Indian Villages 1975–2006: Revisiting the ICRISAT Village Level Studies

We study changes in living conditions using longitudinal data covering 30 years in six villages in Andhra Pradesh and Maharashtra, initially surveyed during 1975–1984, and resurveyed in recent years, as part of the ICRISAT Village Level Studies. Monetary welfare indicators (such as incomes, assets, consumption and poverty) and non-monetary indicators of well-being (such as basic literacy, education, health and subjective well-being) have improved considerably. Consumption growth is linked to literacy and education at baseline. Other assets, such as land, have a neglible impact, suggesting that labour and human capital have been instrumental for growth in these villages.Change involved a large increase in various off-farm activities.     

The Making and Remaking of Agro-Industries in Africa

This article introduces the special section on the making and remaking of agro-industries in Africa. It examines what the contributions tell us about how agro-industries work, but also why national industries work the way they do, how they came to be that way and what factors and forces drive or hinder their dynamism.     

Post-Hospital Medical Respite Care and Hospital Readmission of Homeless Persons

Medical respite programs offer medical, nursing, and other care as well as accommodation for homeless persons discharged from acute hospital stays. They represent a community-based adaptation of urban health systems to the specific needs of homeless persons. This article examines whether post-hospital discharge to a homeless medical respite program was associated with a reduced chance of 90-day readmission compared to other disposition options. Adjusting for imbalances in patient characteristics using propensity scores, respite patients were the only group that was significantly less likely to be readmitted within 90 days compared to those released to Own Care. Respite programs merit attention as a potentially efficacious service for homeless persons leaving the hospital.