Are John M. Clark Business Cycles Insights Still Relevant Today? | Chapter 2 | An Overview on Business, Management and Economics Research Vol. 6

 The object concerning this study is to equate numerical results for a thought experiment of the commerce of business phases with pictorial demand and cost curves. This is a pure theoretical model stimulated by the manuscripts of John M. Clark (1884-1963). This study models a hypothetic cement industry, product Q. The plant property are assumed long-lasting, to last for 50 years, and distinguishing to manufacturing only one device, Q The model, with allure rigid acceptances, shows that industry composed of only up-to-date low established-cost Plants K will increase the amplitude of implausible story cycle, the range of industry outputs middle from two points peak and off-peak, versus an manufacturing composed of only traditional high fixed-cost Plants L. The model shows a certain aspect of established costs: that one can wish that industry with extreme fixed costs to have diminished amplitude of killing cycle. Some can find this a surprising result.

Author(s) Details:

Gerald Aranoff,
Ariel University, Ariel 40700, Israel.

Please see the link here: https://stm.bookpi.org/AOBMER-V6/article/view/12671

Business Cycles and Economic Convergence in the ECCAS Zone | Chapter 7 | Current Topics on Business, Economics and Finance Vol. 2

 This item is part of an investigation into trade cycles and the union of integrated economies. In contrast to the essay on business era synchronization in a monetary cause, we study the convergence of trade cycles in the Economic Community of Central African States (ECCAS), which is from monetary variety. More specifically, we extract GDP cycles utilizing the Baxter and King (1999) filter and therefore date them using the Bry and Boschan (BB, 1971) invention. In addition, two measures of convergence are secondhand: sigma-convergence, which measures the scope of convergence over period of the economies identified, and suspect-convergence, that evaluates their adjustment process to a reference advantage. The findings verbally recognize authority the asynchronous nature of trade cycles in the ECCAS district from 1990 to 2018. Also, a weak trend towards union has been noticed since 2001, both in supposed terms (swelling, basic budget balance, public debt rate) and in palpable terms (GDP/capita and GNI/capita).

Author(s) Details:

Ulrich Kevin Kamdoum Kamwa,
International Center for Research in Economics and Management for Development (ICREMD), OMAR BONGO University, Libreville, Gabon.

Please see the link here: https://stm.bookpi.org/CTBEF-V2/article/view/9795

Thought Experiment Transfer Pricing Alternatives: Supporting John M. Clark’s Workable Competition Pricing

 The object of this study is to analyze numerical results for a thought experiment comparing transfer pricing alternatives of a hypothetical corporation having a manufacturing division making a single product and a marketing division that sells that product. Each division seeks to maximize its own profits. The marketing division faces hypothetical fluctuating demand fluctuations, prosperity versus depression, for a final product that is semi-perishable costly to store such as cement. The manufacturing division has two alternate technologies, high fixed cost versus low fixed costs. The transfer pricing alternatives: A) short-run marginal cost pricing high price volatility over the business cycle versus B) John M. Clark’s workable competition pricing low price volatility over the business cycle. The manufacturing division plants have linear total cost functions with absolute capacity limits. In opposition to perfect competition theory, this study argues in support of John M. Clark (1884-1963) workable competition theory. The thought experiment shows a gain in consumer surplus and to corporate profits over the cycle with transfer pricing John M. Clark’s workable competition theory. This article offers reasons for this gain. This thought experiment should inspire other researchers to do similar hypothetical thought experi-ments.

Author(s) Details:

Gerald Aranoff,
Ariel University, Ariel 40700, Israel.

Please see the link here: https://stm.bookpi.org/CABEF-V9/article/view/9295

Thought Experiment Cement Industry Demand Fluctuations: Supporting John M. Clark's Workable Competition Pricing | Chapter 08 |New Innovations in Economics, Business and Management Vol. 7

 The purpose of this research is to compare numerical results for a hypothetical numerical model of a cement industry facing demand fluctuations, high versus low, with alternate technologies, high fixed cost versus low fixed cost, using marginal cost pricing versus John M. Clark's workable competition pricing, using marginal cost pricing versus John M. Clark's workable competition pricing. The article is an economics thought experiment that is only carried out in the mind. The article presents a detailed numerical model of a basic industry, cement manufacturing, with a large number of sellers, cement factories, and large numbers of buyers, the construction industry, all of whom work independently and are fully aware of supply and demand conditions. The model's cement plants have linear total cost functions and absolute capacity constraints. The article contrasts two technologies: 1) old plants with low fixed costs but high marginal costs, and 2) new plants with high fixed costs but low marginal costs. This study argues in favour of John M. Clark's (1884-1963) practicable competition theory, which is opposed to marginal cost competition theory. The study investigates the likely equilibrium conditions under two pricing systems: A) short-run marginal cost pricing and B) John M. Clark's practical competition concept. Workable competition raises prices above marginal costs in the off-peak period, but lowers prices in the peak period. The study assumes a 6/7 off period and 1/7 peak period frequency. Workable competition pricing, according to the paper, increases consumer surplus over time under the model's assumptions. Under the model's assumptions, the study claims that gains in consumer surplus from workable competition pricing in high-demand periods, though infrequent (1/7), will outweigh losses in consumer surplus from workable competition pricing in low-demand periods, which are more frequent (6/7).

Author(S) Details

Gerald Aranoff
Ariel University, Ariel 40700 Israel.

View Book:- https://stm.bookpi.org/NIEBM-V7/article/view/6393

A Numerical Example Illustrating Globalization: Focus should be on Supply for the Peaks | Chapter 1 | Insights into Economics and Management Vol. 1

 

We are talking about globalisation and the recent manufacturing and construction slowdown. We present a novel globalisation model consisting of two countries, X and Y, each with domestic and foreign open-market systems. In each nation, we compare two pricing policies: short-run marginal cost, SRMC, versus fixed prices, P, over the business cycle. We are presenting a proposition and proof. With graphs for each country, we give a detailed numerical example. The key consequence is that P increases the volatility of Q demand over the cycle during the business cycle and increases market surplus in both countries under certain conditions. The numerical example shows a drawback of SRMC pricing under demand fluctuations—that the required price in high-demand times to balance accounts becomes extremely high. Consumers are better off with P , paying a small increase over SRMC in the off-peak, 6/7th of the time, to avoid the extremely large required price of SRMC in the peak times, because it’s only 1/7 of the time. The surprising point is that though peak times are infrequent, the prices and quantities at peak times, determine which pricing arrangement is better for consumers. The significance of my mathematical proof is to urge social focus on increasing and prolonging cyclical peaks.

Author(s) Details

Gerald Aranoff
Professor of Accounting, Ariel University, Ariel 40700 Israel.

View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/276

Scientific Approach on Radical Uncertainty, Dynamic Competition and a Model of the Business Cycle: The Implications of a Measure and an Explanation of What Is Supposed Non-Measurable and Non-Explainable | Chapter 4 | Current Strategies in Economics and Management Vol. 4

The influence of radical uncertainty and expectations on economic behaviour is indisputable, whether on entrepreneurship, innovation, investment, or the behaviour that contributes to the business cycle. It is rather surprising, therefore, to see widespread ambiguities in accounts of this crucial aspect of business life and indeed, human existence. In particular, the frequent assumption ex hypothesis that radical uncertainty is non-measurable and non-explainable constitutes a major misunderstanding that obstructs the analysis of economic growth and development and more generally, the study of economic dynamics. This essay first of all underlines the conceptual difference between uncertainty and expectations. It then establishes the possibility and delineates a method of measuring true or radical uncertainty by means of the monthly EU business tendency surveys. This method allows the derivation from these surveys of both more and better information than they at present provide and also some indicators that are relevant mainly in an evolutionary perspective. In order to obtain a deeper understanding of such procedures, some applications have been carried out. A model of dynamic competition and the business cycle centred on the relation between innovation and uncertainty is then specified and tested using a FIML estimator. 

Author (s) Details

Angelo Fusari
 Institute of Economic Programming (ISPE), Institute of Studies and Economic Analyses (ISAE), Italy.

View  Book :-  http://bp.bookpi.org/index.php/bpi/catalog/book/198

A Mathematical Perspective: Focus during Weekdays should be on Supply for the Sabbath a Support for Workable Competition | Chapter 6 | Current Strategies in Economics and Management Vol. 2

This paper proves mathematically in an original theoretical model the common sense and intuitive proposition that consumers are better off when they have more food for the Sabbath at the expense of having less food for the other six days of the week. I prove the conditions of shifting consumption from off peak to peak times will necessarily add to consumer surplus. Like the manna that fell from heaven for forty years in the desert — an omer to a person, Sunday through Friday with double portions on Friday — my model assumes that consumers buy standardized semi-perishable food baskets, one basket per person per day, Sunday through Friday with extra baskets for the Sabbath. In my model I analyze benefits to consumers according to two alternative pricing schemes, whereby consumer expenditures and weekly food consumed are the same. I prove that consumers are better off according to the pricing scheme that allows for more food for the Sabbath day. The significance of my proof is to urge social focus on increasing and prolonging cyclical peaks. My proof supports John M. Clark’s workable competition thesis.

Author(s) Details

Gerald Aranoff
Professor of Accounting, Bnei Brak, Israel.

View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/185

A Model of Manufacturers and Buyers of Cars Over the Business Cycle Illustrating Competitive Manufacturing: Advanced Study | Chapter 3 | Current Strategies in Economics and Management Vol. 2

I illustrate competitive manufacturing with a simple numerical model of manufacturers and buyers of carsoverabusinesscyclewithoff-peakandpeakdemandperiods. Mymodelhastwotypesofplants manufacturing cars, plantK and plantL, each having linear total costs with absolute capacity limits. PlantK operates with low VC and high FC. PlantK, because of its low VC, produces continuously at capacity in off-peak and in peak periods. PlantL, because of its high VC, shut-downs in off-peak periods and produces at capacity in peak periods. I show results under perfect competition SRMC pricing. I prove mathematically two propositions with this model. Proposition I shows mathematically the conditions of investor indifference to choose between PlantsK and PlantsL. The significance is to show a positive aspect of PlantsL, its output-rate flexibility, that some may overlook. Proposition II shows mathematically the conditions that shifting consumption of car purchases from off-peak to peak necessarily adds to consumer surplus. The significance is to show the importance of increasing consumer purchases in peak periods. These two propositions are intuitive and common sense.

Author(s) Details

Gerald Aranoff
Professor of Accounting, Bnei Brak, Israel.

View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/185