Multiple Outlets in a Duopoly: A First Entry Paradox

The strategic advantages of being the first entrant into a market have been discussed extensively. This paper presents examples of markets in which there is no first entry advantage. Rather, the later entrant always has an advantage even when both deploy equal resources. The necessary conditions for the occurrence of this first entry paradox are presented.     

THE MEDIAN VOTER,VOTING, AND LOCAL GOVERNMENT EMPLOYMENT*

ABSTRACT This paper provides an explanation for the level of local government employment by developing a median voter model that allows for migration into and out of the city, a local government balanced-budget constraint, and voting behavior by public employees that reflects their role as both demanders and suppliers of local government goods. Unlike previous research, the model developed here explicitly considers voting (for the incumbent) probability density functions which furthermore need not be stationary. The main conclusions of the model are that, ceteris paribus, it is plausible that the level of local government employment varies inversely with the public employee wage demand and with the elasticity of the privately employed voting population with respect to the local tax rate but directly with the voter participation rate of public employees. Contrary to previous theoretical research, there is no determinate relationship between the level of local government employment and the voter participation rate of privately employed citizens. Inferences concerning the structure of local government are also discussed.     

Norfolk livestock farming 1250–1740: a comparative study of manorial accounts and probate inventories

This paper examines developments in Norfolk livestock husbandry over a period of five centuries. It breaks new ground by combining evidence from manorial accounts and probate inventories and the methodological difficulties of using the two sources are examined in some detail. Despite these difficulties the evidence of accounts and inventories reveals the continuity of developed and dynamic pastoral farming systems in Norfolk. From an early date the distinctive feature of livestock farming was its close integration with arable farming, producing mixed-farming systems of remarkable productivity. By substituting horses for oxen and cultivating fodder crops, Norfolk farmers succeeded in maximizing the ratio of non-working to working animals, thereby permitting the development of specialized sheep farming, cattle-based dairying, and later, fattening. Sheep farming was transformed from a peasant to a landlord activity and dairying shifted in its spatial focus, gradually giving way to fattening, rendering Norfolk farmers increasingly dependent upon the import of young stock from outside the county. The most difficult comparison between accounts and inventories yields the most remarkable finding: between the fourteenth and the seventeenth centuries stocking densities approximately doubled. This implies significant gains in pastoral output per unit area, reinforcing the view that developments in livestock husbandry may well have been of greater importance in increasing agricultural production than the more heavily studied arable sector.     

ANALYZING THE COST OF DEBT FOR SMALL BUSINESS

The available empirical evidence provides mixed views of small businesses' relative bankruptcy risk. The difference between Churchill and Lewis' findings and SBA's and Kirchhoffs' may well lie in the difference in definition of firm “size” used. Risk is not evenly spread; the smallest businesses seem to be less risky than the intermediate size businesses. Yet, Churchill and Lewis' actual loss evidence suggests that small business risk is only marginally greater than for large businesses, the loss rate is still equivalent to less than one half of one percent. The assumptions that lenders will adjust the amount of debt they allow small business clients rather than the interest rate is not rejected by this evidence. In fact, the much higher profitability of the small business department reported by Churchill and Lewis suggests that the bank's loan interest rates are more than high enough to cover loss risk and fixed costs, and borrowers provide profitable deposits. Thus, the logic of my utility theory hypothesis provides a reasonable explanation for the relatively higher debt levels of small firms compared to large firms. But, then the Kirchhoffs' findings cast some doubt on whether small firms actually have higher debt levels. None of these findings justify the 2.75 percent interest rate spread allowed by SBA.     

Single and Multiscale Models of Process Spatial Heterogeneity

Recent work in local spatial modeling has affirmed and broadened interest in multivariate local spatial analysis. Two broad approaches have emerged: Geographically Weighted Regression (GWR) which follows a frequentist perspective and Bayesian Spatially Varying Coefficients models. Although several comparisons between the two approaches exist, recent developments, particularly in GWR, mean that these are incomplete and missing some important axes of comparison. Consequently, there is a need for a more thorough comparison of the two families of local estimators, including recent developments in multiscale variants and their relative performance under controlled conditions. We find that while both types of local models generally perform similarly on a series of criteria, some interesting and important differences exist.