1,720,982 research outputs found
VCG Mechanism and Centrality Measures in Network Analisys
No full textIn this work we show that some centrality measures in network analysis are exactly an application of the principles underlying the well-known Vickrey-Clarke-Groves (VCG) mechanism. We then present an example relying on a transport framework which highlights how these centrality measures à la VCG can indeed provide valuable information to fairly assess the importance of the analyzed network elements
A network based model for traffic sensor location with implications on O/D matrix estimates
No full textIntercity bus and rail services: Competition and welfare effects
No full textWe study the effects of the deregulation of intercity bus services in Europe on intermodal competition in long-distance land passenger transport and on social welfare. We consider a bus company with a flexible (Internet-based) business model and a rail operator with a rigid cost structure due to indivisibilities. We adjust the standard location model of horizontal differentiation to account for quality differences between modes, and for a bus capacity limit. We show that deregulation may turn the former rail monopoly on a route into a bus monopoly, particularly if bus quality is high enough and/or bus marginal cost is low enough. Since the bus is capacity constrained, then social welfare may be improved through a lump-sum transfer from bus to rail to restore competition and increase the number of travelers. Instead, we show that intermodal competition may reduce welfare (compared to rail monopoly) if the bus is inefficient and/or of low quality, so that bus services should be restricted by imposing quotas or even entry bans. Finally, we relax some assumptions and calibrate the model with data from the Genoa-Milan route in Italy. Numerical simulations confirm theoretical predictions and estimate annual welfare gains on the route under the compensation scheme
Data-Driven Health Innovation and Privacy Regulation
No full textData-driven health innovation may lead to develop targeted treatments using health data. We consider privacy-sensitive patients who may decide to share personal health data if compensated. Each patient does not internalize the impact of sharing data on drug innovation. We show that investment incentives in targeted treatments are too weak as long as such innovation has a public good nature so that patients can free ride on sharing health data. Then, privacy protection measures reducing data sharing risks can promote pharmaceutical R&D and social welfar
Optimal pricing and investment for resources with alternative uses and capacity limits
Full text linkAirport runways, radio spectrum, and hospital beds are resources with capacity limits used to provide multiple services with specific capacity requirements in separate markets, which contribute to recover capacity investment costs. A welfare-maximizing and (possibly) budget-constrained firm, whose operating costs significantly increase as total capacity use presses against capacity, chooses prices and capacity. When the equilibrium capacity is reached, second-best Ramsey prices must be adjusted, and mark-ups on marginal costs may be higher for services with higher demand elasticities, if they intensively use capacity. Moreover, for a given output vector, the firm invests more than in first best. Instead, the equilibrium capacity may be first best when there is excess capacity to reduce operating costs and thus improve welfare. Our model can be used as a benchmark to evaluate the efficiency of market mechanisms for resource allocation and pricing, or when market mechanisms are not adopted
Uniform pricing and product innovation
No full textWe consider the rationale for imposing uniform pricing (UP) on a monopolist in a two-market model with endogenous quality. In contrast to the literature, we find that UP may yield higher quality than third-degree price discrimination (PD). This occurs when the demand dispersion between markets is sufficiently decreasing with quality. A simple test for a higher quality under UP is to check whether an increase in quality reduces the price differential between markets under PD. In this case, a higher quality under UP is an effective substitute for PD to extract consumer surplus. When the demand dispersion is small enough, a higher quality under UP increases social welfare relative to PD
External effects evaluation and environmental impacts reduction in freight transportation
No full textProbabilistic model for interactive decision-making
No full textA probabilistic reasoning model is defined where the decision maker (d.m.) is engaged in a sequential information-gathering process facing the trade-off between the reliability of the achieved solution and the associated observation cost. The d.m. is directly involved in the proposed flexible control strategy, which is based on information-theoretic principles. The devised strategy works on a Bayesian belief network that allows the efficient representation and manipulation of the knowledge base relevant to the problem domain. It is shown that this strategy guarantees a constant factor approximate solution with respect to the optimum of the decision problem. Some application examples are also discussed. (C) 1999 Elsevier Science B.V. All rights reserved
Operating costs and market organization in railway services. The case of Italy, 1980-1995.
No full textWe estimate a transcendental logarithmic (translog) short-run variable cost function for the Italian railway company, Ferrovie dello Stato (FS), using data on the years 1980-1995. Within the study period, we show that: (a) the translog function represents a good approximation of the underlying technology of FS; (b) all production factor demands are inelastic; (c) FS has a limited ability to substitute between inputs; (d) FS operates with diseconomies of density. A major implication of these findings is that the rail network is not used optimally, so that either a cut in the frequency of trains or a rise in capital investments seems to be indicated. Since the estimated cost function is super-additive at the relevant output levels, we derive that rail service provision in Italy would not behave as a natural monopoly in the absence of regulation. Indeed, allocative efficiency indicates that there is enough room for a duopolistic industry where joint or specialized production of passenger and freight carryings would be pursued, mainly depending on firm size
Reducing information asymmetries in market entry decisions
No full textA Bayesian belief network is adopted to structure and manage an entry decision problem, where a potential entrant has to evaluate the profitability of a given market, depending on an established firm's unknown and unobservable multidimensional type. A multiperiod multisignal model is defined to take account of strategic interaction processes between the incumbent and the potential competitor. Since significant theoretical and computational issues prevent us from finding optimal strategies, a myopic policy is discussed that leads to a reasonable outcome. An application example of the proposed solution procedure is also presented
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