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Presents an abstract of the report "Paper for Printing and Writing; Tentative Forecasts of Demand in 1955, 1960 and 1965," by the Intelligence Unit of the Economist. Presentation of the results in tables and descriptive texts for individual countries, regions, and continents; Rise expected in the total world demand for newsprint as well as other printing and writing paper; Significance of the absolute and relative variation in demand and in consumption between countries, regions, and continents.

The article presents abstracts for invited papers that are to published in the periodical. The article "An Experimental Test of the Bowley Bilateral Monopoly Model," by Laurence E. Fouraker and Sidney Siegel explains that scholar A.L. Bowley's price leadership models yield specific price-quantity solutions for the bilateral monopoly situation These solutions do not coincide with those derived from models of bilateral monopoly behavior conducted under different circumstances. An experimental representation of the Bowley conditions was developed. In another article "Bargaining "Face". Some Experiments in Bargaining Behavior," by Morton Deutsch the nature of bargaining situations is discussed. Two general propositions about conditions affecting the likelihood of a bargaining agreement are presented The role of "social face" in determining bargaining behavior is considered. The thesis is advanced that the latent content of much bargaining centers about "social face." The relationship between the use of threat and social face is analyzed. Results of some experimental studies of the effect of thread upon interpersonal bargaining are presented.

Suggestions are presented for research on the impact of governmental policies, programs, and regulations upon the functioning of the market system as a whole, and upon specific subsystems. The authors point out that intervention by government at all levels is one of the two most significant environmental forces affecting marketing. This paper is the first of four reports developed by the AMA Task Force on Research on Basic Problems in Marketing, chaired by Donald R. Longman. The other papers will be presented in subsequent issues of the JOURNAL OF MARKETING. Each paper will be accompanied by a review by Seymour Banks, in which the issues involved in each paper will be highlighted and the various papers related to one another. [ABSTRACT FROM AUTHOR]

A conference paper about marketing education at the college and university level is presented. According to the author, students should know the function of marketing in the U.S. economic structure. Other noted aspects that should be covered are, the channels of distribution, consumer behavior and issues surrounding competition.

In this paper the traditional capital asset pricing model is reformulated as a system of simultaneous equations in which returns on similar securities are treated as endogenous variables and in which pertinent financial data for particular firms and a market factor are treated as exogenous variables. Such a system is estimated, and serious questions are raised concerning the tenability of the simple linear model so often used to explain capital asset prices under uncertainty. This paper offers a robust test of the capital asset pricing model (e.g., Sharpe [12] and [13] and Fama [3]) assumption which asserts that all of the inter- dependencies among security returns are accounted for solely by the relationship between a single security and a common market index. Also, it examines the relationship of security returns and corporate operating data to determine the extent to which the beta of the capital asset pricing model is simply a summary, surrogate measure for them. The proposed test is based on a simultaneous equation model. Two goals are sought through this research which, first, serves as a direct test of important implications of the capital asset pricing model and which, second, will provide approximations of the magnitude and direction of any biases that may exist in estimates of beta obtained from single index models. [ABSTRACT FROM AUTHOR]

The present paper formally introduces corporate taxes and bankruptcy penalties into a single-period valuation model in a complete capital market. The firm's financing mix determines the states in which the firm will earn its debt obligation and receive the tax savings attributable to debt financing. The firm's financing mix also determines the states in which the firm is insolvent and incurs bankruptcy penalties. The problem of optimal capital structure is, therefore, formulated as the determination of that level of debt such that the resulting division of states (into those in which the firm is solvent and those in which it is insolvent) yields the maximum market value of the firm. It is shown that the total market value of the firm is not in general a concave function of financial leverage. [ABSTRACT FROM AUTHOR]

The paper discusses whether market-achieved city size is greater or less than optimum city size when externalities such as pollution are present. Optimally taxing or controlling pollution may or may not lead to a decline in production of polluting goods. Moreover, taxation reorders production and consumption patterns in the city so that the minimum net effect on welfare of city inhabitants is the decline in pollution. Since pollution taxation increases the welfare of city inhabitants, city size rises with immigration from the rest of the economy. [ABSTRACT FROM AUTHOR]

The article comments on the paper "Waiting and the Period of Production," by Robert Dofman in the August 1959 issue of the "Quarterly Journal of Economics." Just as postwar West Germany has been a leading example of a comparatively unregulated economy, so it has been a principal source of academic literature extolling the virtues of competitive markets and economic co-ordination via unregulated prices. A flood of crusading books, pamphlets and papers attests to the numbers and energies of economists whose social theories and policy recommendations differ radically from those for which their homeland was earlier famous. Neoliberal teachings do not constitute a completely standardized product; disagreement on matters of detail is common and that on more important questions is not rare. But, on the whole, agreement--and repetition--is impressive. The West German crusade is perhaps the outstanding example of non-socialist academicians banding together to fight for and against economic programs.

Incorporation of marketing strategy in production planning can reduce overall costs and significantly increase profits. In this paper a solution procedure similar to the traditional Holt, Modigliani, Muth, and Simon production smoothing model is used to find a combined marketing and production plan in which advertising promotion is utilised to avoid peak-load production costs by shifting seasonal demand for a product. The solution procedure is applicable to a wide variety of market characterizations, and the technique may also be readily adapted to analyse impacts of various aspects of market behavior on the optimal production schedule. [ABSTRACT FROM AUTHOR]

This article presents a list of books related to operations research. Names of these books include "Computer Simulation of Competitive Market Response," by Arnold E. Amstutz; "Production Control: A Quantitative Approach," by John E. Biegel; "Designing Social Service Systems," by Jack C. Bloedorn, Elizabeth B. Maclatchie and J.M. Wedemeyer; "Network Analysis for Planning and Scheduling," by Albert Battersby; "Optimization," by A.O. Converse; "An Introduction to Probability, Decision, and Interference," by Irving H. Lavalle.

This paper attempts to do two things: one is to give a precise analysis of the relationships between public goods and externalities; the other is to provide a formulation of a model involving public goods which covers the so-called mixed cases, i.e. those goods which lie somewhere between the extremes of the pure private good and the pure public good.
There has been a tendency in the literature on external economies to ignore the public good aspect of externalities and a tendency in the literature on public goods to identify the two concepts with each other. The view taken here is that they are two distinct concepts, but that many externally produced commodities have the character of public goods. A theory of external economies must therefore take this feature into account. This paper attempts to show how this can be done by using the original Samuelson formulation [11][2] of a public good.
It has been conceded by Samuelson himself [12] that many goods commonly termed public goods do not strictly fit his definition. There are some goods which seem to have a mixture of the characteristics of a public good and a private good. This paper attempts to resolve the confusion that has arisen in discussing these mixed goods by showing how a simple extension of the Samuelson model can accommodate them. It also demonstrates the effect that their presence has on the necessary conditions for Pareto-optimality. [ABSTRACT FROM AUTHOR]

The article presents comments of Paul T. David on the paper related to competition in air transport written by Kent T. Healy. According to David, the first half of Healy's paper is an analysis in terms of input-output factors, while the second is concerned mainly with geographic patterns, homogeneity of markets geographically, and the question of the optimum number of competing carriers in a single market. This order of analysis might possibly have been reversed with some advantage, since the input-output factors acquire competitive importance mainly within the framework of geographic relationships. Commenting on professor Healy's paper, he says that he found it most stimulating. He was particularly glad to see the emphasis upon the need for a sufficient number of air transport enterprises to provide full scope for innovation and fresh talent. The tendency abroad has been in the opposite direction. For this and other reasons, the problem of establishing workable conditions of competition on the international air routes is full of special complexities and will continue to present major difficulties.

The article presents the abstracts of several papers on economics published in the November 1965 issue of the "Scottish Journal of Political Economy." The first paper of the journal "The Need for Regional Policy in a Common Market," by Richard Bird, analyses the causes of regional differences. It opines that the increased economic interdependence and awareness resulting from an economic union will in general tend to accentuate regional differences within member countries. The second paper of "Direct Overseas Investment in Nigeria, 1953-63," by Ranald S. May, examines the constitution of direct business investment in Nigeria between 1953 and 1963 with the object of assessing the contribution to Nigerian economic development. The third paper "Economics and the Problem of Method: An Eighteenth Century View," by Andrew Stewart Skinner, argues that James Steuart sought to confirm economics in its character of a distinct branch of social science; one which is amenable to scientific treatment.

The article presents information on the beginning of credit finance on the China coast. The volume and area of the Chinese trade in private hands expanded as the English East India Company abandoned its Indian trade monopoly in 1813 and its China trade monopoly in 1834. The market for Chinese goods in the United States also developed, at first on the initiative of the American houses on the Atlantic seaboard and then with the connivance of English agency houses. Western finance on the Chinese Coast at the time was confined almost exclusively to the entrepreneurial context of trade, hence it was from the extension of trade that advances were made in methods of finance. The eastward expansion of the China trade to the Atlantic seaboard of the United States brought China traders into the financial orbit of Philadelphia (in the twenties) and New York. The crisis of 1812-1815 forced the China houses to experiment with private bills and, after the crisis, to develop their use. It also illustrated the main elements upon which the earlier China trade was based, and the weaknesses of large scale and expanding trade operations entirely based upon bullion movements.

The article presents discussions by economists on various papers published in the May 1, 1970 issue of the journal "American Economic Review." It discusses effects of tax policy measures when consumers behave rationally and markets function, as they should, in a model embodying conditions of a full and general equilibrium. It states that in the analysis of tax policy, the most important effects to consider are long-term effects. They are what the economy has to live with indefinitely. "Announcement effects" are instantaneous and for that reason evanescent, the transition between announcement and the longer-term equilibrium is by definition transitory. The long run is precisely what economist Lauritis R. Christensen focused on in his paper. Christensen noted that saving is likely to be insensitive to the rate of return and produced two cases, one in which the counterpart of the reduction in revenue caused by the tax incentives was added borrowing from the household sector and the other in which the counterpart was reduced government investment, which resulted in opposite directions of movement of private investment.

A conference paper concerning efficiency within the marketing structure is presented. According to the author, efficiency measurements pertaining to the physical aspects of marketing include time and motion studies, choosing channels of distribution and distribution costs. Also noted are aspects of efficiency pertaining to the contact between buyers and sellers.

This article examines wage differences in the U.S. newspaper industry. This industry is composed of separated markets but homogeneous in most other characteristics. In his analysis, the author utilizes an intra-industry test. The article finds that lower wage levels in the industry are associated with market concentration. The article also finds that the influence of monopoly power in the product market is outweighed by monopsony in the labor market although product-market structure may also affect wage-rate levels.

Publication of "The Report of Special Study of Securities Markets of the Securities and Exchange Commission" in the Summer of 1963 was both a statement of confidence in the basic structure of the securities markets of this country and a well documented analysis of such weaknesses as remained within the system. Since publication of the Study, many changes have been made in operational procedures within the securities markets. It is the purpose of this paper to review those changes which have affected the operations of members of the New York Stock Exchange. Particular attention is given to new procedures for floor trading, specialist activities, and odd-lot operations. [ABSTRACT FROM AUTHOR]

Ten years ago, I addressed this association's membership on the subject of postwar developments in the consumer credit market. My conclusion, then as now, was that this market which was born in the early 1900's, grew up in the 1920's, and matured in the 1930's, was a sturdy enough adult to handle the postwar growth of credit without basic structural changes. In the past decade we have seen many innovations come into the consumer credit market. Credit cards, charge account banking, and check credit plans have become commonplace among commercial banks which are offering diversified plans to meet their customers' entire credit needs. Savings institutions now make some consumer loans and look longingly upon further extension of their activities now denied them under many state laws. If one disregarded the current statistics and measured the market by criteria other than the amount of credit outstanding, there would be a stronger impression of structural changes than the data imply. [ABSTRACT FROM AUTHOR]

This article focuses on economist Frederick T. Sparrow's paper. Mr. Sparrow's paper on the determinants of volume in a probabilistic market is the second of two papers, the first of which deals with expected price and the second with expected quantity flow. This bisection is highly artificial and ideally should be remedied before their publication. Mr. Sparrow has formulated a probability model of basic supply, demand, and price adjustment relationships as a means of improving the insight into the role of uncertainty in the operation of competitive markets. By the use of queuing theory and numerical methods, he has succeeded in obtaining the stochastic equilibria of a number of quantitative models. As an approach to the formulation and solution of theoretical problems in this area, Mr. Sparrow's paper merits high praise. Mr. Sparrow has made an important contribution in showing the relevance of queuing concepts to market phenomena, and particularly in pointing up the identification problem that can occur when supply and demand interact stochastically. A great deal more needs to be done along the lines that Mr. Sparrow has pursued but increasing stress should be laid on the empirical base underlying such theoretical analyses.

This paper has taken the mixed product, examined its components, and, on the basis of private-public characteristics, defined four categories. These four categories of products have been analyzed through the use of an altered version of the Cicchetti and Smith graphical device. Through this analysis the effects of changes in the various demand components have been isolated. Thus, revised market equilibria have been determined giving indications of social cost or benefit and private cost/benefit. The analytical tool posited here may prove to be useful in isolating the source of externalities. Of course only one side of the market has been analyzed--supply has been passive. But, by now the interested reader should be able to make further adjustments for himself and thereby test the model's reaction to other combinations of change. Policy implications of the analysis have only been alluded to in passing. Thus, there is another work to be done in relating taxes, subsidies, charges, quotas, and property rights to the analysis here. In any event it is hoped that this analysis offers something for the world which is not all "bad" and for the world which is. [ABSTRACT FROM AUTHOR]

This paper describes the application of a mixed-integer program to the problem of providing strategic decisions for the selection and timing of a set of proposed facilities to serve distinct geographic regions. Solutions to this selection-timing process are obtained by the system presented so as to maximize the ratio of total net revenues to total assets. In addition, a series of optimal integer solutions to a large-scale problem is included with discussion and analysis. [ABSTRACT FROM AUTHOR]

The article presents information on monopoly power and price rigidities. The term monopoly power is used in a broader sense. By this is meant the power of the seller to exercise control over supply and price, regardless of whether he is enabled to do so as the result of a monopoly position or because of a condition of duopoly, oligopoly or monopolisitic competition in the industry. In short the term refers to the power traditionally associated with monopoly, whatever the means of exercising that power. The rigid prices with which this paper is concerned are prices which underwent infrequent changes or changes of small amplitude, or both, in the years following 1929. At the same time the decrease in demand, which these industries encountered in common with others, was manifested in a sharp decrease in output. It is the thesis of this paper that such a movement in prices and production can occur only under conditions of monopoly power. The term rigidities has become intrenched in both lay and professional vocabulary and to most it signifies a condition of acute distress in the price system.

The article presents discussions by economists on some papers that are published in the May 1, 1970 issue of the journal "American Economic Review." The author states that economist Harry Magdoff's paper, published in the present issue of the journal, reminds its readers that neoclassical economics deals with market relations and not with power relations. The study of imperialism, in contrast, is mainly concerned with the level of coordination above that of the market where state power is used to manipulate the economic framework within which supply and demand interplay. The analytical focus is the way one-country exercises power over another and how this affects trade, development and the distribution of income. According to the author, the first point to be stressed is that the neoclassical model, which includes market equations and excludes political equations is misspecified and yields biased estimates and wrong predictions. The comfortable assumption that one can concentrate on economic relations and leave the analysis of power to other disciplines is not tenable when one admits the crucial role of the state in shaping the economy through its policies on infrastructure, education, production and other things.

The crude oil industry in the U.S. has been characterized by wasteful production practices. Many members of the industry, who are normally among the most outspoken advocates of freely competitive markets, as well as many disinterested observers, agree on the desirability of a public conservation policy. The purpose of this paper is to provide a complete model of the domestic crude oil industry. This model casts light on the short-run question of the optimum level of production from existing facilities, as well as on the long-run question of incentives to add capacity by exploring presently nonproductive oil lands. The paper uses a short-run model, which takes stock of production facilities as given. Under this assumption it is possible to show why the free competitive market improperly allocates oil production over time. It is also possible to derive simple economic criteria, which can be used to formulate a public policy, which will assure the optimum output of crude oil through time. The paper also deals with the longer-run question of the incentives to increase capacity by exploring presently nonproductive oil land. It is this long-run view, which is relevant for the appraisal of the desirability of granting a tax concession in the form of percentage depletion to the crude oil industry. The major conclusion of this section is that percentage depletion primarily increases the income of landowners rather than encouraging exploration of non-producing oil lands.

This article presents a discussion on the research paper "Foreign Trade and Balanced Growth: The Historical Framework," by J.R.T. Hughes, a professor at Purdue University, Indiana and "Balanced Economic Growth in History," by Goran Ohlin of Stanford University, California published in the May 1959 issue of the journal "American Economic Review." Hughes has used somewhat different concepts of "balanced growth" and therefore some clarification of terminology seems warranted. For some people balanced growth may suggest some kind of a master plan. This master plan would be in the nature of an input-output matrix calling for balance not only in the composition of final goods but also for balance vertically in the different stages of production. Just how complete such balances would have to be to deserve the approbation of balanced growth would be a matter of judgment and tolerance. The second concept of balanced growth by Ohlin is a more modest one. It focuses mainly on the possible mutual sustaining expansion of a number of final goods markets. However, both Hughes and Ohlin are critical for different reasons of the concept of balanced growth and hold that it is not likely to explain much about the historical processes of economic development.

The article presents a discussion by the author on two papers by Richard B. Heflebower and Richard Ruggles about price and market theory. According to the author Ruggles has given a lucid appraisal of the limitation to orthodox value theory concepts for purposes of empirical analysis while Heflebower has pointed toward an inductive theory derived from observations on the real world. Each is an appropriate complement to the other. Unfortunately, throughout his analysis Heflebower mostly disregards the analytical tools of orthodox value theory and appears to rely heavily upon something bearing close resemblance to the principle of cost-plus pricing. Heflebower's analysis must be appraised against the objective sought to attain and the principal conclusion to which it led. Ruggles' paper raises significant questions about the very heart of economic theory, namely, value theory and its usefulness. Value theory, historically considered, has been concerned with the relative importance of goods and services.

The central problem in the theory of price formation under conditions of oligopoly is the problem of how the "implicit bargain" among the oligopolistic rivals is made. The classical theories of oligopoly failed to recognize this as a problem. This omission was the essential weak point in all these theories, which tried to derive price results from market demand curves and the cost conditions of the individual producer alone, a weakness which has been elegantly exposed in the historical review of these theories. The bulk of researcher W.J. Feliner's study is devoted to the analysis of all factors which condition the implicit bargain. They are examined in sequence and their total effect on the outcome in the market is considered. But Feilner does not present an explicit mechanism which shows how particular values of the relevant factors interact to determine a particular bargain, or quasi agreement, among the oligopolistic rivals. It is the purpose of this paper to present, schematically and in simple form, outlines of such a mechanism. It is appropriate to emphasize, at the outset of this paper, the limited claims that are advanced for the scheme here presented, it is only a mechanism, it does not, in itself, pretend to add much in a substantive way to insights into the behavior of oligopolists provided by Feilner's analysis, but only to organize some of them into a more wieldy formal apparatus which can be applied, perhaps, to other problems than the extremely simplified schematic one examined in what

The purpose of this paper is to generate discount rates and implicit prices by applying theorems of Frobenius and Bellman to non-negative matrices. The model which is developed may be useful in situations in which management decisions must be made regarding the replacement of aging and obsolescing equipment for some specified period of time. One version of the model allows choices among alternatives and another version leads to a deterministic form. The discount rate which is derived is the reciprocal of the maximal growth rate which is obtained as the largest (positive) root of the non-negative matrix introduced in the first version of the model, while the implicit prices arise from an associated eigenvector. The model may be particularly useful in situations where market rates and market prices do not properly reflect values as is the case for some public goods. [ABSTRACT FROM AUTHOR]

A relationship between money supply and stock prices is fairly well recognized in the literature. More recently the studies of Hamburger and Kochin [7], Modigliani [12], Keran [9], and Home and Jaffee [8] have attempted to specify the short- and long-run nature and the direct and indirect nature of these relationships. Also, these studies have focused on determining the transition variables through which the money-supply effect is transmitted to stock prices. A more pragmatic approach is that of Sprinkel [17 and 18] and Palmer [14] who have attempted to analyze the money-supply and stock-market relationships to see if the former can be a predictor of the latter. More reliable forecasts of future market movements, if available, could be extremely useful for individual and institutional investors. At one extreme, information could be used to time the investment in and out of the market portfolio.! Alternatively, the investor could more profitably use the β information on market volatility of stocks available from the capital-asset pricing model, relating expected rate of return on a security, E(R[sub i]), with that on the market portfolio, E(R[sub m]. Accordingly, the prediction of the market would indicate when to shift the composition of the portfolio from relatively low to high or from relatively high to low β stocks and cash. An investment-timing strategy designed around more accurate forecasts of future market movements would conceivably yield the investor higher expected profits than are normally available. This, however, implies no contradictions of the efficient market hypothesis. Granger and Morgenstern [6] and Fama [5] observe that nothing in the discussion of the random-walk efficient market hypothesis rules out abnormal profits to sophisticated analysts who can more quickly and better evaluate the effects of important events as they affect intrinsic values. The studies by Scholes [15] and Niederhoffer and Osborne [13] contain empirical... [ABSTRACT FROM AUTHOR]

This paper is concerned with the organizational problems associated with housing maintenance in the public sector. It is based on a number of studies carried out by the Unit in Government and Local Authority Organizations.
The main problem areas investigated so far include: (a) The fragmentation of responsibility between the different people in housing maintenance systems. (b) The variable obligations of occupants for the initiation of and participation in maintenance work. (c) The nature of the supervisor's role and the job satisfaction of operatives. As a result of these studies, two types of goals have been isolated which can be used to determine the characteristics of maintenance systems: 1. The Demand Goal--The degree of occupant influence on the type of work provided. 2. The Supply Goal--The speed of response of the organization to maintenance demands. It is suggested that the way in which these two goals are reconciled allow four 'ideal types' of system to be identified: (a) An occupant based system. (b) An insurance based system. (c) An owner based system. (d) A work force based system.
The separate interest groups discernable in a system tend to prefer different 'ideal types' and, where any one of these is developed to a pathological extent, the overall satisfaction and standard of maintenance tends to decline. A case study is used to illustrate some of these problems in detail.
Finally, the possibilities of stimulating change in the organizational behaviour of maintenance systems are discussed. [ABSTRACT FROM AUTHOR]