Average Variable Cost Research Articles

Rice Production in Rattaphum District, Songkhla Province, Thailand

Since the prices of agricultural products have decreased, especially rubber and rice which are the majorexported products of Thailand, farmers who have limited agricultural areas have had to make important decisionsregarding investing in farming for their self-living. This research is aimed at comparing the costs and returns of rubberand rice production in Rattaphum district, Songkhla province, Thailand. A three-stage random sampling technique wasemployed to obtain primary data from 50 farmers who work on rubber plantations and 50 farmers who grow rice, thetotal is 100 people with the aid of a well-structured questionnaire. The data were collected by conducting interviews withthe participants during the crop year in 2015-2016. The data were analyzed using descriptive and inferential statisticssuch as mean, frequency count, percentages and compare mean. The study revealed that most of the farmers ownedaround 6 Rai of agricultural land. Farming was done by them. The studied costs in this research consisted of, firstly, thecosts of rubber production. During 1-19 years of rubber trees, there were the average fixed costs of about 285.42 Bahtper Rai per year and the average variable costs of about 6,797.91 Baht per rai per year. The total costs were 7,083.33Baht per Rai per year. Then the revenue of the rubber production from selling the fresh latex, 51 Baht per kilogramon average, was about 12,510.61 Baht per Rai per year. Also the returns of the rubber productions were about 5,427.28Baht per Rai per year. Secondly, the costs of rice production were the average fixed costs of about 303.37 Baht per Raiand the average variable cost of about 4,623.04 Baht per Rai. The total costs were 4,926.41 Baht per Rai. Then therevenue of the rice production from selling the paddy, 7 Baht per kilogram on average, was about 3,163.16 Baht per Rai.The revenue of the rice productions from selling the rice, 35 Baht per kilogram on average, was about 11,071.06 Bahtper Rai. Also the returns of the rice productions were about -1763.25 Baht per Rai per year and 6,144.65 Baht per Rai,respectively. The comparison between the costs of rubber and rice productions revealed that the costs of rubber werehigher than the costs of rice. Also, the returns of the rubber productions were higher than the rice, for selling the paddy.In contrast, the returns of the rice productions were higher than the rubber, for selling the rice.

On the Incentive Effects of Sample Size in Monitoring Agents – A Theoretical and Experimental Analysis

AbstractWhen agents compete for a bonus and their productivity in each of several possible occasions depends stochastically on (constant) effort, the number of times this is checked to assign the bonus affects the level of uncertainty in the selection process. Uncertainty, in turn, is expected to increase the effort made by competing agents (Cowen and Glazer, 1996; Dubey and Haimanko, 2003; Dubey and Wu, 2001). Theoretical predictions are derived and experimental evidence is collected for two competing agents, with the bonus awarded to that agent who outperforms the other. Sampling occasions (1 or 3), cost of production (high or low), cost symmetry (asymmetric or symmetric), and piece-rate reward are manipulated factorially to test the robustness of the effects of uncertainty. For control, a single-agent case is included. Results indicate that, for tournaments, greater uncertainty does indeed lead to greater than expected effort and lower average variable costs.

Cost of milk production of beneficiary farmers of organized dairy (cooperative and private) in Lucknow region of Uttar Pradesh

Indian dairy industry emerged as an important sector for income and employment generation, and is contributing as well in the country’s economy besides improving the health standards. The output from dairy sector has increased at more than 4.0 % per annum since 2010-11. The changing economic scenario an entrepreneur has to be very alert and should always keep an eye on the cost and returns of the scarce resources of an entrepreneur in order to keep himself profitable. Dairying in our country dominated by the small holders. Now the producers are scaling up their capacity by incorporating newer technology. One hundred and sixty milk pourer farmers were selected randomly using probability proportional to size (PPS) from the list of producers who were supplying milk to organized dairy (cooperative or private) purely and exclusively from eight village level milk chilling units of Lucknow and Hardoi district purposively selected from Lucknow region. Average variable cost varies from 88.72 small, 88.95 medium, and 92.38 large farmers and rest 11.28, 11.05 and 7.62 were the fixed cost for small medium and large category farmers respectively. The cost of milk production was higher for Rs 18.02, Rs 16.30 and Rs 15.85 per liter for small medium and large farmers respectively. The average milk selling price was found to be almost at par for small Rs 27.77, Rs. 27.31 and Rs. 27.11 for small, medium and large category farmers. Whereas, the average income generated by investing one rupee was found lowest for small Rs. 1.56 followed by medium Rs.1.71 and large Rs. 1.75 farmers respectively. However, the farmers have generated average annual income of Rs 70334.21, Rs. 128671.1 and Rs.230510.8 by small medium and large category farmers respectively.

Impact of Palliative Care Screening and Consultation in the ICU: A Multihospital Quality Improvement Project

ContextThere are few multicenter studies that examine the impact of systematic screening for palliative care and specialty consultation in the intensive care unit (ICU). ObjectiveTo determine the outcomes of receiving palliative care consultation (PCC) for patients who screened positive on palliative care referral criteria. MethodsIn a prospective quality assurance intervention with a retrospective analysis, the covariate balancing propensity score method was used to estimate the conditional probability of receiving a PCC and to balance important covariates. For patients with and without PCCs, outcomes studied were as follows: 1) change to “do not resuscitate” (DNR), 2) discharge to hospice, 3) 30-day readmission, 4) hospital length of stay (LOS), 5) total direct hospital costs. ResultsIn 405 patients with positive screens, 161 (40%) who received a PCC were compared to 244 who did not. Patients receiving PCCs had higher rates of DNR—adjusted odds ratio (AOR) = 7.5; 95% CI 5.6–9.9) and hospice referrals—(AOR = 7.6; 95% CI 5.0–11.7). They had slightly lower 30-day readmissions—(AOR = 0.7; 95% CI 0.5–1.0); no overall difference in direct costs or LOS was found between the two groups. When patients receiving PCCs were stratified by time to PCC initiation, early consultation—by Day 4 of admission—was associated with reductions in LOS (1.7 days [95% CI −3.1, −1.2]) and average direct variable costs (−$1815 [95% CI −$3322, −$803]) compared to those who received no PCC. ConclusionReceiving a PCC in the ICUs was significantly associated with more frequent DNR code status and hospice referrals, but not 30-day readmissions or hospital utilization. Early PCC was associated with significant LOS and direct cost reductions. Providing PCC early in the ICU should be considered.

Shutdown Decision of Firms Based on Variable Costs and Demand

The forest products industry in Alabama, the second largest manufacturing sector of the state, has been experiencing a recession in production, number of establishments and employees since the mid-1990s. This study investigates the determinants of this decline in the industry, using a county-level panel dataset that spans the period between 1996 and 2012. Four sub-sectors were analyzed separately, including the logging, wood, paper, and furniture manufacturing sectors. Results suggest that increases in average variable cost, rather than decreases in demand, were more strongly associated with the recession as measured by the number of operating establishments. Decomposition analysis indicates that the cost of materials, rather than labor, contributes more to the decline in the number of forest sector establishments in the state. This could be because increases in labor costs, such as wage increases, are accompanied by increases in labor productivity.

Impact of National Health Insurance on Entry and Competition in Remote Areas, Evidence from Taiwan's Dental Market

AbstractThis paper assesses the change in the supply of dental clinics after the implementation of Taiwan's National Health Insurance (NHI). Even though the government has enforced lower prices of treatment since the implementation of NHI, the increase in use could actually result in higher revenue for dentists. The higher profit could prompt dentists to attempt to enter markets that were previously unprofitable. This paper tested if NHI increased the dental clinic supply in geographically isolated areas by investigating whether the required minimum market size was reduced. We found that following the implementation of NHI, the per‐dental clinic minimum market size significantly decreased. In addition, the decreased minimum market sizes were enabled by a corresponding increase in variable profits which is equal to the difference between price and average variable costs. This implies that the NHI‐enlarged health care demand compensates for the possible losses of dental clinics due to price regulation. Furthermore, the results also suggest that the post‐NHI dental market becomes more competitive when there is a second entrant in the market, and the level of competition approaches perfect competition when three and more dental clinics serve one market.

Firm Entry Deterrence Behaviour in the Cement Industry in Cambodia

The study empirically analyzes whether the existing firm in the cement industry in Cambodia exhibits entry deterrence behaviour and also whether this threat is credible. Basic game theory and pure strategy Nash equilibrium were deployed in analyzing the behaviour of both firms. The framework in this study considered the payoff between two firms which act in different ways. The new firm is considered as 'entrant' and the other firm already established in Cambodia as 'incumbent'. The study modeled the cost function to consist of fixed setup cost, constant cost per unit of capacity and constant average variable cost in estimating the total cost of production. The price of cement was estimated using the inverse demand function. The total revenue is estimated as the product of the price and the total supply of cement on the market. The payoff is the revenue less the total cost of production of each firm. The unique Nash equilibrium of the game, is, new investment, No new investment in both the short and long run by both firms. The study concludes that the threat of the incumbent in the cement market in Cambodia to deter the entrant is not credible.

Economic Analysis of Milk Production among Small holder Dairy Farmers in Punjab: A Case Study of Amritsar district

The present study analyzed economics of milk production among small holder dairy farmers in Punjab. Amritsar district was selected purposively because the average milk production was quiet high in the district than state average and has well developed milk cooperative societies. A sample of 80 dairy farmers consisting of 20 dairy farmers each from landless (LL), marginal (MR), small (SM) and other (OT) categories were selected from two blocks and four villages of Amritsar district. The average herd size was 6.35, 7.70, 9.40 and 10.05 dairy animals for LL, MR, SM and OT dairy farmers, respectively. The total variable cost was 145948.90, 170122.85, 200487.20 and 204122.60 for LL, MR, SM and OT dairy farmers, respectively. The average variable cost was to the tune of 180762.60. Feed and fodder cost was accounted for 83.84 per cent out of the total variable cost. The total fixed cost accounted was 32733.5, 37537.59, 42640.5 and 46723.75 for LL, MR, SM and OT dairy farmers, respectively. Gross income from dairying was accounted to be 306946.80 for LL, 397644.90 for MR farmers, 458120.60 for SM and 511401.50 for OT dairy farmers, respectively. The cost and income had direct relationship with herd size for different categories of dairy farmers. To estimate the resources use efficiency in milk production, Cobb Douglas Production Function was used. The variables included in regression model were green fodder, dry fodder, concentrates, labour hours and veterinary and insemination charges considered as independent variables and milk production per farm per day as dependent variable. The coefficient of multiple determination (R2) was 0.80 and indicating that about 80 per cent of total variations in milk productivity were explained by the variables included in the selected regression model. The coefficients of dry fodder and concentrates were positive and significant indicating increase in feed and fodder inputs will increase the milk productivity.

Firm Entry Deterrence Behaviour in the Cement Industry in Cambodia

The study empirically analyzes whether the existing firm in the cement industry in Cambodia exhibits entry deterrence behaviour and also whether this threat is credible. Basic game theory and pure strategy Nash equilibrium were deployed in analyzing the behaviour of both firms. The framework in this study considered the payoff between two firms which act in different ways. The new firm is considered as ?entrant? and the other firm already established in Cambodia as ?incumbent?. The study modeled the cost function to consist of fixed setup cost, constant cost per unit of capacity and constant average variable cost in estimating the total cost of production. The price of cement was estimated using the inverse demand function. The total revenue is estimated as the product of the price and the total supply of cement on the market. The payoff is the revenue less the total cost of production of each firm. The unique Nash equilibrium of the game, is, new investment, No new investment in both the short and long run by both firms. The study concludes that the threat of the incumbent in the cement market in Cambodia to deter the entrant is not credible.

A NOTE ON THRESHOLD FACTOR LEVEL(S) AND STONE-GEARY TECHNOLOGY

AbstractThis article proposes the parsimonious Stone-Geary utility function from consumer choice theory as a production function model. The viability of the threshold input idea is empirically demonstrated for irrigation water (and in the case of nitrogen, a “gratis” threshold) using two field trials from the famous Hexem-Heady data sets. The implications of the Stone-Geary model for tractable U-shaped average variable cost and for factor demand and product supply are explored.

The Areeda–Turner Test for Exclusionary Pricing: A Critical Journal

Few scholarly articles have had the impact enjoyed by Areeda and Turner’s (Harv Law Rev 88(4):697–699, 1975) article on predatory pricing, which is elaborated in the Antitrust Law (Areeda and Hovenkamp in Antitrust law. Aspen Publishers, New York, 2015) treatise. Proof of predatory pricing under the Areeda–Turner Test requires two things: a market structure plausibly indicating the possibility of “recoupment,” and prices below a relevant measure of cost, which was presumptively average variable cost (AVC). That so many courts embraced the Areeda–Turner Test might seem surprising, given that contemporary assessments from economists were quite negative: They faulted the AVC test itself, the test’s inadequate consideration of fixed costs, and the exclusive focus on short-run (nonsustainable) strategies.

ECONOMICAL STUDY FOR PRODUCING AND MARKETING SOME ORGANIC MEDICINAL AND AROMATIC PLANT IN FAYOUM GOVERNORATE

the intensive use chemical fertilizers and pesticide- as one the methods,- to increase crop productivity, which leads to spread negative effects on the safety the environment and human health. So the Ministry Agriculture and related bodies interested in and encourage the production food crops to use organic farming. This research aims to shed light on the future organic farming and the development cultivated area in the Arab countries during the period (2008-2012), in addition to review some organic farming in the governorate Fayoum, which is one the most important one in Egypt applied these kind farming. Fayoum comes in the forefront in terms organic cultivated area medicinal and aromatic plant which represented about 27% the total cultivated area at the level the Republic, which is estimated at 23.41 thousand feddan. A purposive sample has been selected the largest district in the governorate namely; Fayoum and Ebshway, and then two villages each district were selected. A questionnaire forms was designed in the season 2013/2014 (the sample size are 80 farmers)distributed as follows: 40 farmers for organic farming, each district 20 farmers spread over two villages include 10 farmers per village, in the Fayoum district both Manshyet Sakran and Sheikh Fadel villages selected in Fayoum district, both Juncho and villages were chosen in Ebshway district, on the other hand a similar sample selected in the same villages for the same selected traditional crops.Fayoum district the first place in terms organic cultivated area which amounted to 3.024 thousand feddan represented 47.8% the total cultivated area at the governorate level, which amounted to 6.32 thousand feddan, both villages Manshyet Sakran and Sheikh Fadel were selected, their total area were about 180 and 230 feddan respectively in both summer and winter crops to the study villages for each peppermint and marjoram.The district of Ebshway occupies the second place with an area approximately 2.03 thousand feddan represent 32.2% the total cultivated area at the governorate level, both villages Abu Jncho and Tobhar has been selected which amounted to about 52 and 62 feddan for the cultivation summer and winter both peppermint and marjoram. The findings the economic indicators the crop study marjoram and peppermint for both organic and conventional agriculture, indicated that productivity marjoram decreased in organic farming by about 7.1% comparing to its counter pass in traditional agriculture, an increase by 101.5% have happened, with respect to both total return and net return perfeddan, they are growing by 213.3%, 283.8%, respectively, comparing to traditional agriculture, and this reflects the increase in the average farm gate price per ton for Organic Marjoram about 12.8 thousand tons, compared to 3.79 tons in traditional Marjoram with an increase represented 237.1%.As for productivity per feddan for organic peppermint, it has increased by about 2.56% comparing to traditional peppermint, while increasing the average variable costs in organic farming by about 1070 pounds, an increase 25.2% the average variable costs in conventional farming, there is also an increasing for each total return and net return per feddan by 64.1%, 81.7%, respectively rather than their counter pass in conventional farming, reflecting the increase in the average farm gate price per ton for organic peppermint to about 12 thousand pounds compared to 7 thousand pounds for traditional peppermint ,with an increase represented 71.4%.It is worth noting that farmers are facing several problems when they apply organic farming, which the most important is the effect chemicals residual, pesticides, which were suffered by about 85% the farmers in the study sample, followed by the problem the rise bio- composes prices by 72.5% the number farmers, then the problem low productivity per feddan represent 57.5% the farmers and also the problem the spread weeds, insects by 55% the sample farmers.With regard to the most important problems facing farmers in traditional farming, they are the high price inputs which represent about 52.5% the study sample size, as well as the limited number skilled labor and the infection diseases and fungi by 22.5%, 77.5%, respectively, and also lowering the average farm gate price per ton representing 72.5% the number farmers in the study sample.So, the research recommends the following:  To encourage the formation Non-governmental associations organic farming and to support them as its important role to spread organic farming in the countryside and then increase the net income farmers.  To Link the organic crops farmers with markets by contracting farming with organic farming associations and exporters with suitable tools.  Working on reach the marketing information with accessible manner for farmers and exporters to ensure the marketing their products at the right price and highly quality through the marketing information network.  To increase the organic cultivated area financing their farmers as a reason their highly production costs.

The Impact of Proposed Changes in Liver Allocation Policy on Cold Ischemia Times and Organ Transportation Costs

Changes to the liver allocation system have been proposed to decrease regional variation in access to liver transplant. It is unclear what impact these changes will have on cold ischemia times (CITs) and donor transportation costs. Therefore, we performed a retrospective single center study (2008-2012) measuring liver procurement CIT and transportation costs. Four groups were defined: Local-within driving distance (Local-D, n = 262), Local-flight (Local-F, n = 105), Regional-flight <3 h (Regional <3 h, n = 61) and Regional-Flight >3 h (Regional >3 h, n = 53). The median travel distance increased in each group, varying from zero miles (Local-D), 196 miles (Local-F), 384 miles (Regional <3 h), to 1647 miles (Regional >3 h). Increasing travel distances did not significantly increase CIT until the flight time was >3 h. The average CIT ranged from 5.0 to 6.0 h for Local-D, Local-F and Regional <3 h, but increased to 10 h for Regional >3 h (p < 0.0001). Transportation costs increased with greater distance traveled: Local-D $101, Local-F $1993, Regional <3 h $8324 and Regional >3 h $27 810 (p < 0.0001). With proposed redistricting, local financial modeling suggests that the average liver donor procurement transportation variable direct costs will increase from $2415 to $7547/liver donor, an increase of 313%. These findings suggest that further discussion among transplant centers and insurance providers is needed prior to policy implementation.

Abstract 14210: Standardized Protocol to Optimize Management of Patients with Post-operative Atrial Fibrillation Reduces Length of Stay and Hospital Costs

BACKGROUND: Post-operative atrial fibrillation (POAF) develops in approximately 30-40% of patients undergoing cardiovascular (CV) surgery and increases major adverse events, length of stay (LOS) and hospitalization costs. A standardized protocol may optimize POAF management and decrease LOS, hospital costs and adverse events including post-operative stroke. METHODS: In March 2013, an AF inpatient protocol was implemented in our CV surgery center’s post-operative care units. The protocol incorporates a consensus driven decision support algorithm based on blood pressure, heart rate and duration of AF to guide beta-blocker, antiarrhythmic and anticoagulation therapy recommendations in real-time. Using a shared electronic medical record we reviewed all coronary artery bypass graft (CABG) and valve surgery cases from March 1, 2013 to April 30, 2014 and compared LOS, intensive care unit (ICU) duration and post-operative stroke in POAF patients with and without the protocol. Based on actual CV surgery volume and average total variable cost per hospital day, we estimated the protocol’s impact post-implementation and at 50% annual use. RESULTS: Among 492 CABG and valve surgery cases, 176 (35.8%) developed POAF. Among patients with POAF, 55 (31.3%) used the AF protocol and 121 (68.7%) did not. In patients with POAF, median LOS was significantly shorter in cases with the protocol (6.9 [6.0, 9.1] days vs. 8.2 [6.1, 11.9] days; p=0.016). There was no difference in ICU duration or post-operative stroke (Table). Among 151 annual cases of POAF, average total variable cost was $2,374 per hospital day. Post-implementation, 71.5 hospital days and $169,741 have been saved. Achieving 50% protocol use, we estimate 98.0 hospital days and $232,652 could be saved annually. CONCLUSIONS: A standardized decision support protocol for POAF patients is associated with shorter LOS and provides a significant reduction in hospital days and total variable cost.

Analyzing Cost Structures for Determining Possible Predatory Pricing

By using a case study of a fictional corporation, Central European Railways, Plc, this paper shows the application of current analytical tests applied within the EU competition policy in order to examine and identify possible predatory pricing. Predatory prices are set in such a way that excludes rivals from competition which potentially leads to the weakening of the price mechanism and redistribution of wealth away from consumers to the dominant competitor. Therefore, predatory pricing cannot be interpreted equally with excessive prices, which only leads to enrichment of the dominant competitor at the expense of consumers. The European Court of Justice uses a set of procedures based on a modified Areeda-Turner test (Russo et al., European Commission Decisions on Competition: Economic Perspectives on Landmark Antitrust and Merger Cases, 2011) to evaluate possible predatory pricing: the first and second AKZO test. The first AKZO test uses the criteria of marginal costs, which in practice are most often approximated by using average variable costs. The second AKZO test applies special price bands defined by average variable costs and average total costs. Prices below average total cost – which is the sum of the fixed and variable costs – but above average variable costs are regarded as abusive if there is a plan to eliminate a competitor. In addition to these economic parameters, there is an element of subjectivity which refers directly to the postulated competitive strategy of the dominant competitor. Production at prices below average variable costs of each unit sold generates a loss totaling all fixed costs and at least a part of variable costs. It is assumed that if the dominant competitor carries out production for such prices, there is no other interest Int Adv Econ Res (2014) 20:467–468 DOI 10.1007/s11294-014-9486-8

Analisis Kelayakan Industri Rumah Tangga Keripik Singkong di Desa Kasarangan Kecamatan Labuan Amas Utara

Integrated processing of cassava in the household scale cassava chips industry is an effort to optimize each stage of cassava processing and the utilization of by-products arising from the industry to increase the added value of cassava. Cassava is one of the commodities that are often found in rural areas such as in Kasarangan Village, this study aims to determine the size (i) of production costs (ii) revenue (iii) benefits and (iv) business feasibility of cassava chips household business in Kasarangan Village, Labuan Amas District, North, Hulu Sungai Tengah Regency. The results of this study indicate that the business of home industries of cassava chips that were cultivated by entrepreneurs / respondents in this study, the average total cost reached Rp. 22,820,286.00. Average fixed costs reach Rp. 2,228,649.00 / month and the average variable cost reaches Rp. 20,591,636.00 / month. The average revenue is Rp. 54,000,000.00 / month, with an average profit reaching Rp. 31,179,714.00 / month. Based on the data presented, the cassava chips household industry in Kasarangan Village, Labuan Amas District, Hulu Sungai Tengah Regency. With the average RCR value of the business reaching 2.37, it is worth trying

The effect of an educational intervention on alcohol consumption, at-risk drinking, and health care utilization in older adults: the Project SHARE study.

The purpose of this study was to examine the effectiveness of a patient-provider educational intervention in reducing at-risk drinking among older adults. This was a cluster-randomized controlled trial of 31 primary care providers and their patients ages 60 years and older at a community-based practice with seven clinics. Recruitment occurred from July 2005 to August 2007. Eligibility was determined by telephone and a baseline mailed survey. A total of 1,186 at-risk drinkers were identified by the Comorbidity Alcohol Risk Evaluation Tool. Follow-up patient surveys were administered at 3, 6, and 12 months after baseline. Study physicians and their patients were randomly assigned to usual care (n = 640 patients) versus the Project SHARE (Senior Health and Alcohol Risk Education) intervention (n = 546 patients), which included personalized reports, educational materials, drinking diaries, physician advice during office visits, and telephone counseling delivered by a health educator. Main outcomes were alcohol consumption, at-risk drinking (overall and by type), alcohol discussions with physicians, health care utilization, and screening and intervention costs. At 12 months, the intervention was significantly associated with an increase in alcohol-related discussions with physicians (23% vs. 13%; p ≤ .01) and reductions in at-risk drinking (56% vs. 67%; p ≤ .01), alcohol consumption (-2.19 drinks per week; p ≤ .01), physician visits (-1.14 visits; p = .03), emergency department visits (16% vs. 25%; p ≤ .01), and nonprofessional caregiving visits (12% vs. 17%; p ≤ .01). Average variable costs per patient were $31 for screening and $79 for intervention. The intervention reduced alcohol consumption and at-risk drinking among older adults. Effects were sustained over a year and may have been associated with lower health care utilization, offsetting screening and intervention costs.

Abstract W P77: In-Depth Comparison of Short-Term Total Hospital Costs and Current Primary Cost Drivers of Coiling vs Clipping for Unruptured Intracranial Aneurysms.

Objective: The goal of our study is to perform an in-depth cost comparison between index hospitalizations of patients with unruptured intracranial aneurysms (UIA’s) treated with either endovascular coil embolization or surgical clipping to identify the current primary drivers of costs of either management approach. Methods: We obtained detailed breakdowns of index hospitalization costs associated with 125 cases of UIA’s treated with either endovascular coil embolization or surgical clipping from 2010 to 2012 at University Hospitals Case Medical Center. We obtained patient demographics and aneurysm characteristics from our clinical database. We performed cost comparisons that were stratified based on patient age, patient gender, aneurysm size, and aneurysm location. Using multiple linear regressions, we also identified clinical parameters that significantly contribute to total hospital costs. Results: Of the 125 cases we identified, 69 were treated with surgical clipping and 56 were treated with coil embolization. Average total hospital costs for clipping was lower than coiling (p = 0.003). Average fixed direct costs and fixed indirect costs for clipping were higher than coiling (p &lt; 0.001, p &lt; 0.001 respectively). Average variable direct costs for clipping were significantly lower than coiling (p &lt; 0.001). The average proportions of total hospital costs accounted for by variable direct costs for clipping and coiling were 50.5% and 68.6% respectively (p &lt; 0.001). Average length of stay for clipping was longer than coiling (p &lt; 0.001). Our regression results demonstrate that for surgical clipping, patient length of stay (p &lt; 0.001), aneurysm size (p = 0.01), and patient age (p = 0.02) were significant contributors to total hospital costs. For coil embolization, only length of stay (p &lt; 0.001) was a significant contributor to total hospital costs. Conclusion: Although surgical clipping of UIA’s is associated with longer hospitalizations, the total index hospitalization costs associated with clipping are lower than those associated with coiling. Length of stay, patient age, and aneurysm size were all significant drivers of total costs for clipping. Variable direct cost is the main driver of total costs for coiling.

English

This paper econometrically analyzed the factors affecting competitive advantage of broiler agribusinesses in Ghana, using multiple regression analysis. Through a multi-stage random sampling technique, structured questionnaire was used to collect farm level data from 441 small-scale commercial broiler agribusinesses in the Greater Accra, Ashanti and Brong Ahafo Regions of Ghana. The average variable cost of producing a broiler at an average market age of 57 days was GH¢8.48 (US$5.93). Of this cost, feed and one day-old chick costs together constitute about 72%. Results of the econometric regression analysis show that feed and day-old chick costs, broiler market age and capacity utilization are the main factors that significantly affect competitive advantage of broiler agribusinesses in the study area. Feed cost, one day-old chick cost and market age of broilers positively and significantly affect cost of broiler agribusinesses while production capacity utilization negatively and significantly affect cost. This suggests that reducing feed and day-old chick costs, market age of broilers and increasing capacity utilization will reduce production cost to promote competitive advantage of broiler agribusinesses. Broiler agribusinesses should be encouraged to adopt better feed management practices and also feed broilers with nutritious feed for the right market weight to be gained by week eight to reduce expenditure on feed. Policies that will encourage broiler producers to increase production capacity should also be encouraged. Key words: Competitive advantage, broiler, agribusiness, econometric, Ghana.

Areeda-Turner in Two-Sided Markets

Areeda and Turner (1975) were the first to argue that a price below marginal costs should be considered a sign of predation. Recognizing that marginal cost data were typically unavailable, the authors concluded that a price below average variable cost should be presumed unlawful. This socalled Areeda-Turner Rule has become the standard to assess claims of predation. We first show that in two-sided markets price cost margins on the two-sides of the market are interrelated and that a monopolist, even in the absence of actual or potential competition, may find it optimal to charge a price below marginal cost on one side of the market. As a result, showing that the price is below average variable cost on one side of the market cannot be considered a sign of predation in such markets. This is in contrast to a recent decision of the Commercial Court of Paris that sanctioned Google for giving away for free its online mapping services. We thus extend the Areeda-Turner rule to two-sided markets. We argue that one should apply the rule by taking into account revenues and costs from both sides of the market. As applications, we analyse three alleged cases of predatory behaviour in the market for daily newspapers. Our examples highlight that applying a one-sided Areeda-Turner rule may lead to assess a perfectly legitimate profit maximizing pricing policy as a predatory attempt.