Foundations of Business Economics: Markets and Prices
... Doe (2017) expressed third party cost as some negative externalities in the sense that the offender has to bear extra cost to the third parties affected by his actions. Townsend (1995) identified externalities as those cost that differentiates private cost from social cost (cited by Giziakis, 1998). Before, the OPA 90, the tendency for judgement on the third-party claims has been only for compensation against economic losses, except when there is physical harm on the complainant directly. ...
ABSTRACT
The continuous growth of the maritime sector in Nigeria, indicate an increase in shipping activities and tonnage. The prosperity of the sector helps in boosting the National economy. But then the occurrences of marine accidents and its implications tend to pull back this progression every now and then.
The results of the marine accidents that occur on the inland and coastal waters of Nigeria affects the economy in such a way that it broods economic loss and impacts the finances of the shipping companies involved, who tend to pay out a lot of money subsequent to these marine accidents.
This paper aims at discussing the impacts these accidents have on the economy by way of damages to natural resources through pollution; then loss of lives and creation of wrecks litters. Secondly, it accesses the cost of marine accidents and the extent of monetary pay out by companies involved in the accidents. This assessment will be done through the secondary data as well as primary data gotten from shipping companies by way of responses to the questionnaire used.
However, these frequent marine accidents resulting to economic losses tend to point that there is a gap in the implementation and execution of the safety regulations, since Nigeria is signatory to many safety regulations and conventions.
... Sixth, let us consider the observation that social enterprises avoid both targeting only profitable market segments and charging higher prices (Battilana et al., 2012). According to the theory of the firm, this is equivalent to engaging in a purposeful, socially minded form of third-degree price discrimination (Townsend, 1995;Griffiths and Wall, 2005;Baumol and Blinder, 2010;Baye, 2010;). It requires charging different prices to different groups of customers for the same product or service, differentiating customers according to their level of income. ...
Had we had the vantage point of centuries of experimentation with social enterprises, separating the wheat (i.e., successful social enterprises) from the chaff, empirical social enterprise research could be on the verge of making a contribution. But since social enterprises as a mass phenomenon are relatively new, the output of empirical research must be taken very carefully because it may actually support doomed business models. It is thus submitted that a design thinking approach to social enterprise research that involves a solution-focused strategy of knowledge production is needed. The latter consists of addressing the internal inconsistencies of a well-established general theory when trying to account for social enterprises, similarly to how a designer addresses the shortcomings of an original chair design to come up with something more suitable. It is argued that a solution-focused strategy of knowledge production will make scientific breakthroughs in the field of social enterprises possible.
... 3 Contrary to textbooks' conventional wisdom, the upward sloping MC curve rules out a perfectly competitive firm's everywhere-linear-homogeneous production function (Boland, 1992). Thus, Figure 2 illustrates a firm with a degree of market power made possible by quasi-rents (Townsend, 1995). ...
This article's purpose is to set out the economic rationale that underpins social businesses, engaging in a research agenda's conceptual development on hybrid firm ecosystems. A different form of business is needed to prevent dividend-distributing companies from abusing the market power
allowed by barriers that keep competitors away at the expense of the poor. Thus, bottomup development strategies have limits if solely based on dividend-distributing companies. An alternative is offered by social businesses, but these are difficult to theorise within the constraints of Pareto
optimality (Pareto, 1971). In exploring alternatives to the latter, this article posits that, despite shortcomings, there are neoclassical contributions that provide a basis for researching social businesses, which can be understood and modelled as companies maximising worst off customers'
well-being.
... Apparently, the roles of market players and the impact on price and demand are expounded through the theory of competition market types, wherein the structure of an industry is related to behavior within an industry. The references are integrated from Boone (2005), Townsend (1995) and Brumfitt (2001). ...
Tampereen ammattikorkeakoulu Tampere University of Applied Sciences Degree Programme in International Business Option of Financial Management NGUYEN TOAN THU NHA The Business Potential for Vietnamese Coffee in Scandinavian Market Bachelor's thesis 55 pages, appendices 2 pages June 2012 The purpose of this paper is to illuminate light on the international trade between Vi-etnam and Nordic Countries in the Coffee market. This paper evaluates the position in both domestic and global markets, in perspective of Vietnamese Coffee in Exporting and Nordic Coffee in Importing. Apparently, the general impact from the Global market is studied in terms of: Global Value Chain and Market structures impacts on prices and demand. Using value chain and five forces analysis as its primary methodology, this research identifies links in the value chain in Vietnam and the competitive market structure in Nordic countries. That have been developed in their respective coffee industries in order to help the new entrant Vietnamese Coffee improve its competitiveness, increase sus-tainability and respond to market demands. Furthermore it identifies current patterns of cooperation and competition threats among the other leading producers in production and quality of coffee. The fact is that Vietnam produces mainly Robusta, and the Scan-dinavian markets prefer Arabica from Colombia, Brazil and some African Countries, as long as their tradition drinking. Because of different types of coffee imported, the com-petition between Vietnam and the others does not seem to be very intense.
... But a flexible-price policy means offering the same product and quantities at different prices (Berkowitz et al., 1986;Perreault and McCarthy 1999). Price discrimination consists of "charging different prices for different units of production although costs are identical for all units" (Townsend, 1995). ...
This paper explores the impact of price discrimination on behaviour intention of hotel guests. The researcher tested seven hypotheses to identify the effect of socioeconomic attributes, price importance, and understanding of hotel pricing process on perceived fairness, then on word-of-mouth, intention to complain, and intention to return. The research collected 233 usable responses, used SPSS V. 15.0 to analyze data, and it included descriptive analysis, Pearson's correlation coefficient, T-test, analysis of variance, and multiple regression analysis. Empirical findings showed that age had a significant contribution in predicting price importance for respondents, marital status, occupation, monthly income, and age had a significant contribution in predicting perceived fairness. The researcher found that there was a significant contribution of Understanding of hotel pricing process, price importance, and perceived fairness in predicting intention to complain, and there was a significant contribution of price importance in predicting intention to return.
... The doctrine of competition has been central to the development of NPM. While perfect competition rarely exists in reality, governments have sought to pursue activity to stimulate competition rather than replicate pure markets (Townsend 1995 ). Public choice advocates have been vocal in calling for the discipline of competition to be imposed on public sector operations as a means of improving efficiency: One of the most fundamental determinants of the efficiency of any arrangement is competition ; that is, the degree of competition that an arrangement permits will, to a significant degree, determine how efficiently that arrangement will supply a service . . . ...
Both practitioners and scholars are increasingly interested in the idea of public value as a way of understanding government activity, informing policy-making and constructing service delivery. In part this represents a response to the concerns about ‘new public management’, but it also provides an interesting way of viewing what public sector organisations and public managers actually do. The purpose of this article is to examine this emerging approach by reviewing new public management and contrasting this with a public value paradigm. This provides the basis for a conceptual discussion of differences in approach, but also for pointing to some practical implications for both public sector management and public sector managers.
... The discipline of economics itself certainly started hundreds, if not thousands of years ago. 2 However, 'business economics', that blend of the two, is a relatively new subject, and essentially twentieth century in origins. To judge by recent texts and monographs on the subject, like Townsend (1995), Nellis and Parker (1992) and Kay (1996), the subject matter of business economics is the microeconomic analysis of real business practices, and its scope ranges from firms, markets and industries to the aims of business and types of competition. To amplify, the analytical heart of business economics includes resource allocation, opportunity cost, diminishing returns, marginal analysis, business objectives, dynamics and externalities. ...
The theme of this paper is developed in three parts. The first is concerned with methodology. The case is argued for a 'grounded' approach to the analysis of business economics. The second is concerned with intellectual history. It argues that the great economists, such as Smith, used this method, and that the best business economists have followed this lead. The third is concerned with displaying how the method espoused and justified is applied to the theme of 'new business, new life'. It appeals to an empirical model of small firm survival, emphasising the complex of decisions undertaken by the entrepreneur.
Attempts to determine the main economic principles that should underline the policies towards safety of ships, cargoes and persons. They applied a model from welfare economics through which they established an “acceptable” or “optimum” level of marine accidents at a point where marginal cost of preventing marine accidents equals the marginal costs of fewer marine accidents. Using mainly graphical analysis they tested whether the Oil Pollution Act is a policy measure in the right direction or not. Similar insights were made for the International Safety Code of IMO which tries to establish quality in shipping through reducing marine accidents (and preventing pollution). This application, to the best of the authors’ knowledge, was performed for the first time.
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