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Probabilistic Discrete Choice Models (PDCM) have been extensively used to interpret the behavior of heterogeneous decision makers that face discrete alternatives. The classification approach of Logical Analysis of Data (LAD) uses discrete optimization to generate patterns, which are logic formulas characterizing the different classes. Patterns can be seen as rules explaining the phenomenon under analysis. In this work we discuss how LAD can be used as the first phase of the specification of PDCM. Since in this task the number of patterns generated may be extremely large, and many of them may be nearly equivalent, additional processing is necessary to obtain practically meaningful information. Hence, we propose computationally viable techniques to obtain small sets of patterns that constitute meaningful representations of the phenomenon and allow to discover significant associations between subsets of explanatory variables and the output. We consider the complex socio-economic problem of the analysis of the utilization of the Internet in Italy, using real data gathered by the Italian National Institute of Statistics.

This paper proposes a self-contained reference for both policy makers and scholars who want to address the problem of efficiency and effectiveness of local public transport (LPT), with special emphasis on urban transit, in a sound empirical way. Framing economic efficiency studies into a transport planning perspective, it offers a critical discussion of the existing empirical studies, relating them to the main methodological approaches used. The connection between such perspectives and Operations Research studies dealing with scheduling and tactical design of public transport services is also developed. The comprehensive classification of selected relevant dimensions of the empirical literature, namely inputs, outputs, kind of data analysed, methods adopted and policy relevant questions addressed, and the systematic investigation of their interrelationships allows us to summarise the existing literature and to propose desirable developments and extensions for future studies in the field.

Parallel trade (PT) is a practice related to arbitrage operations in international trade. We provide a rationale for PT as an opportunistic behaviour by an international wholesaler who is privately informed about market demands in two countries where a multinational firm operates. This alternative theory of PT contributes to an explanation of why PT has gained considerable importance in various industries, and why it has not yet resulted in price convergence across relevant countries. Indeed, we find that asymmetric information enlarges the scope for PT, relative to complete information, and possibly increases crosscountry differences in prices. The European Commission supports PT as a means to achieve the integration of national markets, to the benefit of all citizens. However, under asymmetric information, consumers benefit from PT only with a high volume of parallel imports (e.g., when arbitrage costs are low); otherwise competition among wholesalers can be an effective substitute for PT. Furthermore, an important implication of PT is the transfer of profits from the manufacturer to the wholesaler. Therefore, in R&D-intensive industries, such as pharmaceuticals, policy makers should anticipate the likely consequences of PT under asymmetric information on the long-run incentives to innovate.