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Considering the Italian wine market, we investigate the relationship between product quality, on the one hand, and profits and profitability, on the other hand. Using data from 1052 wineries over the period 2006–2015, we find robust evidence of a positive relationship between product quality, measured by the wineries' reputation for quality, and profits, measured by the Earnings Before Interest, Depreciation and Amortization. By contrast, we observe no relationship between reputation and profitability, measured by the Return on Invested Capital. [ABSTRACT FROM AUTHOR]

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-8586.2009.00334.x Byline: Alessandro Fedele (*), Massimo Tognoni ([dagger]) Keywords: consumer surplus; entry deterrence; failing firm defence Abstract: ABSTRACT Under the principle of the failing firm defence a merger that would be blocked due to its harmful effect on competition could be nevertheless allowed when (i) the acquired firm is actually failing, (ii) there is no less anticompetitive alternative offer of purchase, (iii) absent the merger, the assets to be acquired would exit the market. We focus on potential anticompetitive effects of a myopic application of the requirement (iii) by studying consequences of a horizontal merger on entry in a Cournot oligopoly with a failing firm. Entry is deterred if the merger is cleared and, when the industry is highly concentrated, consumer welfare is higher under a prohibition because long-run gains due to augmented competition exceed short-run losses due to shortage of output. Author Affiliation: (*)Dipartimento di Scienze Economiche, Universita di Brescia, Italy ([dagger])Laboratory of Economics, Antitrust, and Regulation, Bruxelles, Belgium Article note: Correspondence: Alessandro Fedele, Dipartimento di Scienze Economiche, Universita di Brescia, Italy. Tel: +39 0302 988827; Fax: +39 0302 988837; Email: fedele@eco.unibs.it. We thank Giacomo Calzolari, Vittoria Cerasi, Fabio Massimo Esposito, Massimo Ferrero, Lars Persson, Pierluigi Sabbatini, Carlo Scarpa and the seminar audience at CIE-ITAM, Mexico City, and ASSET 2005 for useful comments and suggestions. The usual disclaimer applies.

Cybersecurity has gained prominence in the decision‐making of firms. Due to the increasing occurrences of threats in the cyberspace, investments in cybersecurity have become critical to mitigate the operational disruption of businesses. This paper surveys the theoretical literature on the firms' incentives to invest in cybersecurity. A taxonomy of the existing contributions is provided to frame them in a common reference scheme and a model is developed to encompass such contributions and discuss their main findings. Papers that investigate the investment problem of an isolated firm are distinguished from those that consider interdependent firms. In turn, interdependent cybersecurity is analyzed in three different contexts: (i) firms that operate their business via a common computer network, but are not competitors in the product market; (ii) firms that are competitors in the product market, but run their business using non‐interconnected computer systems; (iii) firms that are competitors and rely on a common computer network. Finally, promising avenues for future research and policy implications are discussed. [ABSTRACT FROM AUTHOR]

The coastline of the Gulf of Naples, Italy, is characterized by a series of infrastructures of strategic importance, including touristic and commercial ports between Pozzuoli to Sorrento, main roads, railways, and urban areas. Furthermore, the Gulf of Naples hosts an intense traffic of touristic and commercial maritime routes. The risk associated with extreme marine events is hence very significant over this marine and coastal area. On 28 December 2020, the Gulf of Naples was hit by an extreme sea storm, with severe consequences. This study focuses on the waterfront area of Via Partenope, where the waves overrun the roadway, causing massive damage on coastal seawall, road edges, and touristic structures (primarily restaurants). Based on the analysis of the meteorological evolution of the sea storm and its effects on the waterfront, we suggest that reflective processes induced on the sea waves by the tuff cliffs at the base of Castel dell'Ovo had an impact in enhancing the local-scale waves magnitude. This caused in turn severe flooding of the roadway and produced widespread damage along the coast. The analysis of the event of 28 December 2020, also suggests the need of an effective mitigation policy in the management of coastal issues induced by extreme sea storm events. Wind-based analysis and prediction of the sea wave conditions are currently discussed in the literature; however, critical information on wave height is often missing or not sufficient for reliable forecasting. In order to improve our ability to forecast the effects of sea storm events on the coastline, it is necessary to analyze all the components of the coastal wave system, including wave diffraction and reflection phenomena and the tidal change. Our results suggest in fact that only an integrated approach to the analysis of all the physical and anthropic components of coastal system may provide a correct base of information for the stakeholders to address coastal zone planning and protection. [ABSTRACT FROM AUTHOR]

How does pay affect the quality of politicians? This paper addresses the question by considering a three‐period citizen candidate model where potential candidates vary in skills and in public service motivation. First, potential candidates observe the level of pay in politics and simultaneously decide whether or not to run for office. Second, an election takes place and only one candidate is elected. Finally, the successful candidate provides a public good, while the others work in the market sector. In a benchmark model where potential candidates differ only in skills, the quality of the elected politician is shown to increase with pay. If public service motivation is also considered, then an inverted U‐shaped relationship is found. [ABSTRACT FROM AUTHOR]

Large calderas are among the Earth's major volcanic features. They are associated with large magma reservoirs and elevated geothermal gradients. Caldera-forming eruptions result from the withdrawal and collapse of the magma chambers and produce large-volume pyroclastic deposits and later-stage deformation related to post-caldera resurgence and volcanism. Unrest episodes are not always followed by an eruption; however, every eruption is preceded by unrest. The Campi Flegrei caldera (CFc), located along the eastern Tyrrhenian coastline in southern Italy, is close to the densely populated area of Naples. It is one of the most dangerous volcanoes on Earth and represents a key example of an active, resurgent caldera. It has been traditionally interpreted as a nested caldera formed by collapses during the 100–200 km 3 Campanian Ignimbrite (CI) eruption at ∼39 ka and the 40 km 3 eruption of the Neapolitan Yellow Tuff (NYT) at ∼15 ka. Recent studies have suggested that the CI may instead have been fed by a fissure eruption from the Campanian Plain, north of Campi Flegrei. A MagellanPlus workshop was held in Naples, Italy, on 25–28 February 2017 to explore the potential of the CFc as target for an amphibious drilling project within the International Ocean Discovery Program (IODP) and the International Continental Drilling Program (ICDP). It was agreed that Campi Flegrei is an ideal site to investigate the mechanisms of caldera formation and associated post-caldera dynamics and to analyze the still poorly understood interplay between hydrothermal and magmatic processes. A coordinated onshore–offshore drilling strategy has been developed to reconstruct the structure and evolution of Campi Flegrei and to investigate volcanic precursors by examining (a) the succession of volcanic and hydrothermal products and related processes, (b) the inner structure of the caldera resurgence, (c) the physical, chemical, and biological characteristics of the hydrothermal system and offshore sediments, and (d) the geological expression of the phreatic and hydromagmatic eruptions, hydrothermal degassing, sedimentary structures, and other records of these phenomena. The deployment of a multiparametric in situ monitoring system at depth will enable near-real-time tracking of changes in the magma reservoir and hydrothermal system. [ABSTRACT FROM AUTHOR]

Some recent articles suggest that increasing wage in the nursing market with the aim of reducing shortage can negatively impact on the average ability and motivation of applicants attracted and, in turn, on the average quality of care. This finding is at odds with empirical evidence and has been criticized on the grounds that nurses' motivation is modeled in an overly simplistic way. This paper provides a novel theoretical framework where the orientation of nurses' motivation-intrinsic versus extrinsic-is taken into account, and the precise distinction between intrinsic and extrinsic motivation is delineated on the basis of self-determination and person-environment fit theories. Conditions are derived under which high wages attract able and motivated individuals, thus maximizing the average quality of care. [ABSTRACT FROM AUTHOR]

ABSTRACT Over the past few decades, social enterprises have grown remarkably. This paper investigates how social enterprises affect access to social services (e.g., education and health-care) and utilitarian welfare. To this end, two economic systems are compared: a market economy system, where all firms are profit maximizers, and a mixed economy system, where both for-profit businesses and social enterprises are present. Findings show that individuals are more likely to have access to social services within mixed economy. Moreover, conditions are derived under which utilitarian welfare is larger within mixed economy. Public policies in support of social enterprises (e.g., subsidies) are shown to result in the following trade-off: access to social services is further enhanced but utilitarian welfare is more likely to be lower than that within market economy. [ABSTRACT FROM AUTHOR]

We study self-selection into politics and effort once in office of citizens with different abilities and motivations in a framework where moonlighting is allowed. We find that high-ability motivated (public-fit) politicians exert higher effort in politics than high-ability non-motivated (market-fit) politicians, and that high-ability citizens, both public-fit and market-fit, may decide to enter politics. We test our predictions using a database of Italian parliamentarians for the period 1996-2006. We find evidence of advantageous selection of both market-fit and public-fit parliamentarians. We also show that public-fit parliamentarians have higher voting attendance and that only voting attendance of market-fit parliamentarians is negatively affected by income opportunities. [ABSTRACT FROM AUTHOR]

This paper tackles the issue of unverifiable quality of after-sales insurance services, such as a prompt reimbursement of damages. A dynamic model is introduced in order to allow reputation to emerge as a means of disciplining insurance firms to deliver high quality. The equilibrium of a repeated Bertrand game among the insurers is analysed and conditions are derived under which more concentration in the insurance industry can lead to greater equilibrium consumer welfare. [ABSTRACT FROM AUTHOR]

The economics models of reputation and quality in markets can be classified in three categories. (i) Pure hidden action, where only one type of seller is present who can provide goods of different quality. (ii) Pure hidden information, where sellers of different types have no control over product quality. (iii) Mixed frameworks, which include both hidden action and hidden information. In this paper we develop a pure hidden action model of reputation and Bertrand competition, where consumers and firms interact repeatedly in a market with free entry. The price of the good produced by the firms is contractible, whilst the quality is noncontractible, hence it is promised by the firms when a contract is signed. Consumers infer future quality from all available information, i.e., both from what they know about past quality and from current prices. According to early contributions, competition should make reputation unable to induce the production of high-quality goods. We provide a simple solution to this problem by showing that high quality levels are sustained as an outcome of a stationary symmetric equilibrium. [ABSTRACT FROM AUTHOR]

. In this paper, we apply a real-option model to study the effects of tax-rate uncertainty on a firm's decision. In doing so, we depart from the relevant literature, which focuses on fully equity-financed investment projects. By letting a representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially mitigate the effect of tax-rate uncertainty on investment timing. [ABSTRACT FROM AUTHOR]

We develop a theoretical framework, based on a moneylender-firm relationship with moral hazard, to investigate whether enterprise capital structure differs between for-profit and nonprofit sectors. The nondistribution constraint of the nonprofit organizations increases the fraction of own capital on total investment: according to our theoretical predictions, this reduces leverage, defined as the amount borrowed over the total investment. By contrast, the intrinsically high commitment of nonprofit entrepreneurs weakens the moral hazard problem: this augments leverage. We then analyze a longitudinal data set of balance sheets of 504 firms operating in the social residential sector in Italy. Our empirical analysis shows that once controlled for observable characteristics, for-profit companies have a leverage 6% higher than nonprofit enterprises, even if the latter face lower credit costs. We explain this finding by arguing that the effect of the nondistribution constraint prevails over the effect of the social entrepreneurs' intrinsic motivation. [ABSTRACT FROM AUTHOR]

Poor local information networks and weak social sanctions in urban settings make joint liability unable to guarantee high repayment rates to microlenders. Yet, microcredit programmes in Western Europe report good performance even if the majority of them require no collateral. We collected data from three Italian microcredit institutions which operate in urban areas, granting individual loans without collateral to single entrepreneurs and teams (associations and cooperatives). We found that teams repay with higher probability. On this basis we developed a microlending instrument which, like joint liability implemented in rural economies, mitigates informational problems but, unlike joint liability, fits the urban context in that it reproduces a cohesion among entrepreneurs based on profit-maximizing behaviour and not on social capital. [ABSTRACT FROM AUTHOR]

Unconventional geothermal resource development can contribute to increase power generation from renewable energy sources in countries without conventional hydrothermal reservoirs, which are usually associated with magmatic activity and extensional faulting, as well as to expand the generation in those regions where conventional resources are already used. Three recent drilling experiences focused on the characterization of unconventional resources are described and compared: the Campi Flegrei Deep Drilling Project (CFDDP) in Italy, the United Downs Deep Geothermal Power (UDDGP) project in the United Kingdom, and the DEEP Earth Energy Production in Canada. The main aspects of each project are described (geology, drilling, data collection, communication strategies) and compared to discuss challenges encountered at the tree sites considered, including a scientific drilling project (CFDDP) and two industrial ones (UDDGP and DEEP). The first project, at the first stage of pilot hole, although not reaching deep supercritical targets, showed extremely high, very rare thermal gradients even at shallow depths. Although each project has its own history, as well as social and economic context, the lessons learned at each drilling site can be used to further facilitate geothermal energy development. [ABSTRACT FROM AUTHOR]

The utility of new imaging technologies to better understand hazardous geological environments cannot be overstated. The combined use of unmanned aerial vehicles (UAV) and digital photogrammetry (DP) represents a rapidly evolving technique that permits geoscientists to obtain detailed spatial data. This can aid in rapid mapping and analyses of dynamic processes that are modifying contemporary landscapes, particularly through the creation of a time series of digital data to help monitor the geomorphological evolution of volcanic structures. Our study comprises a short-term (in geological terms) monitoring program of the dynamic and diffuse Pisciarelli degassing structure caused by the interplay between intensive rainfall and hydrothermal activity. This area, an unstable fumarole field located several hundred meters east of the Solfatara Crater of the Campi Flegrei caldera (southern Italy), is characterized by consistent soil degassing, fluid emission from ephemeral vents, and hot mud pools. This degassing activity is episodically accompanied by seismic swarms and macroscopic morphology changes such as the appearance of vigorously degassing vents, collapsing landslides, and bubbling mud. In late-2019 and 2020, we performed repeated photogrammetric UAV surveys using the Structure from Motion (SfM) technique. This approach allowed us to create dense 3D point clouds and digital orthophotos spanning one year of surveys. The results highlight the benefits of photogrammetry data using UAV for the accurate remote monitoring and mapping of active volcanoes and craters in harsh and dangerous environments. [ABSTRACT FROM AUTHOR]

Monitoring volcanic phenomena is a key question, for both volcanological research and for civil protection purposes. This is particularly true in densely populated volcanic areas, like the Campi Flegrei caldera, which includes part of the large city of Naples (Italy). Borehole monitoring of volcanoes is the most promising way to improve classical methods of surface monitoring, although not commonly applied yet. Fiber optics technology is the most practical and suitable way to operate in such high temperature and aggressive environmental conditions. In this paper, we describe a fiber optics Distributed Temperature Sensing (DTS) sensor, which has been designed to continuously measure temperature all along a 500 m. deep well drilled in the west side of Naples (Bagnoli area), lying in the Campi Flegrei volcanic area. It has then been installed as part of the international 'Campi Flegrei Deep Drilling Project', and is continuously operating, giving insight on the time variation of temperature along the whole borehole depth. Such continuous monitoring of temperature can in turn indicate volcanic processes linked to magma dynamics and/or to changes in the hydrothermal system. The developed monitoring system, working at bottom temperatures higher than 100 °C, demonstrates the feasibility and effectiveness of using DTS for borehole volcanic monitoring. [ABSTRACT FROM AUTHOR]