We present a structural model to investigate the effects of horizontal cooperation on investment in the context of telecommunication networks. More specifically, we estimate the effect of network sharing in the mobile telecommunications... more
We present a structural model to investigate the effects of horizontal cooperation on investment in the context of telecommunication networks. More specifically, we estimate the effect of network sharing in the mobile telecommunications industry on prices, network quality and consumer welfare. The presented framework allows estimating the effects of different types of sharing agreements including common ownership of shared assets in a joint venture company or collaboration via geographical separation (geo-split principle). The proposed identification strategy relies on differences in the costs of network deployment of shared versus non-shared network infrastructure, with different costs affecting operators’ optimal choice of price and network quality. We apply the structural model to estimate the effects of a network sharing agreement in the Czech Republic, using a combination of unique datasets on prices, network quality measured as average download speed and operator’s costs of ne...
The British Navy in the age of sail was the most successful bureaucracy of its time. Its organization and incentive structures differed importantly from contemporaneous private sailing ventures, but closely resembled those of today’s... more
The British Navy in the age of sail was the most successful bureaucracy of its time. Its organization and incentive structures differed importantly from contemporaneous private sailing ventures, but closely resembled those of today’s large corporations. To induce efficient effort, the navy used a hierarchical tournament, in which sailors competed for higher pay that came with promotions based on relative performance. Promotion probabilities, the option value of future promotions, and the higher effort required of men in higher ranks and on larger vessels, combined to yield a highly skewed pay structure.
The Royal Navy was the most successful naval force in the world from the end of the 17th to the early 20th century, success that cannot be explained by technology, resource endowments, or even luck.1 Instead, it appears that a crucial... more
The Royal Navy was the most successful naval force in the world from the end of the 17th to the early 20th century, success that cannot be explained by technology, resource endowments, or even luck.1 Instead, it appears that a crucial factor in this success was the simple fact that the officers and men of the Royal Navy exerted more effort than their foes: they fought harder and they fought smarter. But this does not answer the fundamental question: why? The answer lies in that most basic of economic propositions: Incentives matter. The great genius of the British Navy lay in a financial incentive system that supplied its officers and men with the extraordinary motivation needed to outperform their foes. Financial incentives were the Royal Navy's solution, not its problem, and it was incentive-driven superior performance that produced the consistent success of the Royal Navy.
Between 1660 and 1815 the combat fatality rate among British navy captains fell by 98 percent, even as the combat success of the British Navy rose dramatically. Both developments can be explained as a result of learning by doing among... more
Between 1660 and 1815 the combat fatality rate among British navy captains fell by 98 percent, even as the combat success of the British Navy rose dramatically. Both developments can be explained as a result of learning by doing among British commanders. This learning was importantly driven by the extensive wartime experience accumulated over this period, combined with the unparalleled financial incentives for combat success offered to British commanders.
Prize money from the capture of enemy vessels was a crucial component of compensation in the British Navy in the age of sail. Using a large random sample of prizes taken during the Great Wars of 1793-1815, I provide estimates of prize... more
Prize money from the capture of enemy vessels was a crucial component of compensation in the British Navy in the age of sail. Using a large random sample of prizes taken during the Great Wars of 1793-1815, I provide estimates of prize earnings across rates of ships and ranks of men in the Navy. The two types of ships on which most men served were also the most lucrative postings. The importance of prize money diminished sharply down the ranks, but was substantial for almost all crew members. Prize earnings remained important until near the end of the war.
Using new survey data, we test the hypothesis that individuals' perceptions of health and safety risks are unbiased. While we find that respondents' estimates of those risks are sensitive to the information they are given to... more
Using new survey data, we test the hypothesis that individuals' perceptions of health and safety risks are unbiased. While we find that respondents' estimates of those risks are sensitive to the information they are given to anchor their responses, we find no evidence to support the ...
Background— The impact of early surgery on mortality in patients with native valve endocarditis (NVE) is unresolved. This study sought to evaluate valve surgery compared with medical therapy for NVE and to identify characteristics of... more
Background— The impact of early surgery on mortality in patients with native valve endocarditis (NVE) is unresolved. This study sought to evaluate valve surgery compared with medical therapy for NVE and to identify characteristics of patients who are most likely to benefit from early surgery. Methods and Results— Using a prospective, multinational cohort of patients with definite NVE, the effect of early surgery on in-hospital mortality was assessed by propensity-based matching adjustment for survivor bias and by instrumental variable analysis. Patients were stratified by propensity quintile, paravalvular complications, valve perforation, systemic embolization, stroke, Staphylococcus aureus infection, and congestive heart failure. Of the 1552 patients with NVE, 720 (46%) underwent early surgery and 832 (54%) were treated with medical therapy. Compared with medical therapy, early surgery was associated with a significant reduction in mortality in the overall cohort (12.1% [87/720] ve...
