Foreclosure in contests

We consider a contest where one firm has a cost advantage over rivals. Instead of taking the set of rivals as given, the favorite can transfer the source of its advantage wholly or partially to a subset of rival firms. Foreclosure of those firms that do not receive the cost reduction may result. We present conditions under which this transfer will occur and consider the welfare properties of exclusion. The expected payoff of the dominant firm is independent of the size of the cost reduction transferred to rivals. Applications include lobbying, patent races and access to essential infrastructure.     

MANAGING TRANSPORT INTEGRATION IN SOUTH AUSTRALIA

Abstract: By 1970 the transport portfolio in South Australia consisted of over a dozen government departments and statutory authorities of differing sizes and varying degrees of independence from the State Government. Each organization, by inclination or statutory requirement, tended to carry out its modal responsibilities without reference to the others, with the result that matters which did not fall clearly into the jurisdiction of one or another remained undone and transport problems remained unresolved. The development of area-wide land use planning in the 1960s and integrated economic planning in recent years were hindered by the inability of the transport portfolio to respond to such plans, or to enunciate a single transport policy for a given planning or developmental scenario. Since 1970 successive South Australian governments have pursued a policy of gradual integration of the transport portfolio. This paper reports on the progress achieved after ten years, problems confronted during this period, and prospects for further integration. Comparisons are made with other Australian States and the Commonwealth Government's transport administration.     

Book Reviews

Book reviewed in this article: The Legacy of Martin Luther King, Jr.: The Boundaries of Law, Politics and Religion by Lewis V. Baldwin. Against Us, But For Us: Martin Luther King, Jr. and the State by Michael G. Long. Macon.