Book•
Intermediate microeconomics : A modern approach
01 Jan 2006-
TL;DR: The Varian approach as mentioned in this paper gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation, and is still the most modern presentation of the subject.
Abstract: This best-selling text is still the most modern presentation of the subject. The Varian approach gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation.
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TL;DR: In this paper, the authors investigated economies of scale in the US airline industry using annual data, from 1987 to 2009, on the largest airlines and found that the results from models based on the two definitions are remarkably similar except during rapid growth in output and that the largest US airlines operate under modest scale economies.
Abstract: This study investigates economies of scale in the US airline industry using annual data, from 1987 to 2009, on the largest airlines. The paper estimates both a translog and Cobb–Douglas model of both an economic and transportation definition of economies of scale. The study shows that the results from models based on the two definitions are remarkably similar except during rapid growth in output and that the largest US airlines operate under modest scale economies.
30 citations
TL;DR: A new agent-based simulation model to improve discrete choice analysis as well as to analyse the effects of a road user charging scheme for the Upper Derwent Valley in the Peak District National Park demonstrated that oversimplification in conventional discrete choiceAnalysis gave significant biases when real world problems were analysed.
Abstract: This paper develops a new agent-based simulation model to improve discrete choice analysis as well as to analyse the effects of a road user charging scheme for the Upper Derwent Valley in the Peak District National Park. The advantages of discrete choice analysis are well known. However, results with these conventional methods can be biased if interaction effects are significant. The combined approach of the Minority Game, in which agents try to choose the option of the minority side, and discrete choice analysis is appropriate to deal with the problem. The main data was collected by stated preference survey. The agent-based model has four sub-modules: (1) multinomial mixed logit model for mode choice, (2) binary logit model for parking location choice, (3) Markov queue model for parking network, and (4) the Minority Game for parking congestion and learning. The results show that the road user charging scheme reduces car demand in the Upper Derwent Valley. The model also shows that an exemption will increase the utility of elderly visitors. In conclusion, the simulation model demonstrated that oversimplification in conventional discrete choice analysis gave significant biases when real world problems were analysed.
29 citations
Posted Content•
TL;DR: In this article, the authors develop a new framework for modeling innovation networks which evolve over time, where nodes in the network represent firms, whereas the directed links represent unilateral interactions between the firms.
Abstract: We develop a new framework for modeling innovation networks which evolve over time. The nodes in the network represent firms, whereas the directed links represent unilateral interactions between the firms. Both nodes and links evolve according to their own dynamics and on different time scales. The model assumes that firms produce knowledge based on the knowledge exchange with other firms, which involves both costs and benefits for the participating firms. In order to increase their knowledge production, firms follow different strategies to create and/or to delete links with other firms. Dependent on the information firms take into account for their decision, we find the emergence of different network structures. We analyze the conditions for the existence of these structures within a mathematical approach and underpin our findings by extensive computer simulations which show the evolution of the networks and their equilibrium state. In the discussion of the results, particular attention is given to the emergence of direct and indirect reciprocity in knowledge exchange, which refers to the emergence of cycles in the network structure. In order to motivate our modeling framework, in the first part of the chapter we give a broad overview of existing literature from economics and physics. This shows that our framework bridges and extends two different lines of research, namely the study of equilibrium networks with simple topologies and the dynamic approach of hypercycle models.
29 citations
Cites background from "Intermediate microeconomics : A mod..."
...A utility function is a way of assigning a number to every possible choice such that more-preferred choices have a higher number than less-preferred ones (Varian, 1996)....
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TL;DR: In this paper, the authors proposed a probabilistic assessment of the structural performance, expressed in terms of the discrete structural limit state exceedance probabilities, and the life cycle cost taking into account the Italian seismic zonation and the seismic vulnerability of the existing life stock.
29 citations
TL;DR: Investigating farmers' attitudes towards the use of traditional market-based tools as well as other initiatives such as a pay-back mechanism under an Extended Producer Responsibility (EPR) to reduce plastic waste in agriculture suggests that the choice of each policy tool would be affected by the type of plastic waste generated.
29 citations