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The Theory of Industrial Organization

This book explores whether the world economy is breaking up into regional trading and currency blocs centred on the European Community, Japan and the United States. Frankel uses trade, investment and financial data to assess this issue. He concludes with an analysis of how trends in regional economic integration can be used as building blocks for a stronger multilateral system.

Regional Trading Blocs in the world economic system, reseñado por Antonio Ortiz-Mena L.N.

This book opens a fresh chapter in the debate on local enterprise clusters and their strategies for upgrading in the global economy. The authors employ a novel conceptual framework in their research on industrial clusters in Europe, Latin America and Asia and provide new perspectives and insights for researchers and policymakers alike.

Governance in global value chains

Despite the importance of decision-making (DM) techniques for construction of effective decision models for supplier selection, there is a lack of a systematic literature review for it. This paper provides a systematic literature review on articles published from 2008 to 2012 on the application of DM techniques for supplier selection. By using a methodological decision analysis in four aspects including decision problems, decision makers, decision environments, and decision approaches, we finally selected and reviewed 123 journal articles. To examine the research trend on uncertain supplier selection, these articles are roughly classified into seven categories according to different uncertainties. Under such classification framework, 26 DM techniques are identified from three perspectives: (1) Multicriteria decision making (MCDM) techniques, (2) Mathematical programming (MP) techniques, and (3) Artificial intelligence (AI) techniques. We reviewed each of the 26 techniques and analyzed the means of integrating these techniques for supplier selection. Our survey provides the recommendation for future research and facilitates knowledge accumulation and creation concerning the application of DM techniques in supplier selection.

Application of decision-making techniques in supplier selection: A systematic review of literature

Review of ranking methods in the data envelopment analysis context

Government and company contracts: The effect on service and prices in international airline markets

A response to 'Understanding the complexities and challenges of airport performance benchmarking'

Research Summary
A long-standing void in international business literature is understanding whether and how the internalization choices of competing multinational enterprises (MNEs) affect each other. This paper presents a game-theoretic, location-allocation mathematical model that predicts the organizational boundaries of competing MNEs. Given multiple players in the market, the game analyzes the competition between MNEs with respect to market share, yielding Nash equilibria that determine how many MNEs will be left in the market, and whether their production and marketing sites are internalized or outsourced. Results of computational experiments suggest that the internalization choices of profit maximizing MNEs that compete with each other, sharply deviate from the internalization choices ignoring such competition.

Managerial Summary
We present a game theory model of the effect of competition between multinational enterprises (MNEs) on their decisions whether to outsource or internalize production and marketing activities. Our model predicts that, at the presence of even modest knowledge transfer costs, such competition likely results in a monopoly outcome. The monopolistic MNE outsources production and builds on the resources that are freed due to this outsourcing to establish more R&D units and internalize marketing units. In addition, our model shows that when knowledge transfer costs are negligible, entry barrier reduce and more competitors arises. These competing MNEs will split markets between them in order to avoid direct competition, will have a greater propensity to outsource their marketing sites, and will need fewer marketing sites to control worldwide sales.

Internalization choices under competition: A game theoretic approach

Within the field of data envelopment analysis is a sub-group of papers in which many researchers have sought to improve the differential capabilities of DEA and to fully rank both efficient, as well as inefficient, decision-making units. We have divided the ranking concepts into seven general areas based on the following concepts: super-efficiency, benchmarking, cross-efficiency, common set of weights, multivariate statistics, multi-criteria decision-making and inefficiency dominance. After describing the approaches, we compare and contrast them using an illustration drawn from a set of universities. It is apparent that the approaches succeed in strengthening the results of the non-parametric data envelopment analysis models and frequently enable an almost complete ranking of decision-making units. However, the results may diverge substantially between the different models, suggesting that the choice of framework must be context dependent and chosen with great care.

Ranking Methods Within Data Envelopment Analysis

The purpose of this chapter is to present data envelopment analysis (DEA) as a two-dimensional plot that permits an easy, graphical explanation of the results. Due to the multiple dimensions of the problem, graphical presentation of DEA results has proven somewhat elusive up to now. Co-Plot, a variant of multidimensional scaling, places each decision-making unit in a two-dimensional space in which the location of each observation is determined by all variables simultaneously. The graphical display technique exhibits observations as points and variables (ratios) as arrows, relative to the same center-of-gravity. Observations are mapped such that similar decision-making units are closely located on the plot, signifying that they belong to a group possessing comparable characteristics and behavior. In this chapter, we will analyze 19 Finnish Forestry Boards using Co-Plot to examine the original data and then to present the results of various weight-constrained DEA models, including that of PCA-DEA.

Nicole Adler

Papers

Government and company contracts: The effect on service and prices in international airline markets

A response to 'Understanding the complexities and challenges of airport performance benchmarking'

Internalization choices under competition: A game theoretic approach

Ranking Methods Within Data Envelopment Analysis

DEA Presented Graphically Using Multi-Dimensional Scaling