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Working Papers | 1991

A Market Share Approach to Pricing Commodity Exports

Naik Gopal and Asopa V N

In this paper a market share model is developed for formulating appropriate export strategies for commodities by exporting countries. Assuming individual consumer in an importing country makes discrete choice regarding the source of a commodity or product depending on his/her perception of quality of the commodity or product from each sources and their prices, the aggregate demand of the importing country for each source is obtained. Based on this a market share model is developed assuming logistic distribution for the utilities. This market share model can be used by an exporting country to examine whether there is a premium or discount for its product/commodity and its magnitude which will help in determining (i) the relationship between relative prices and market share (ii) the level of price at which the country can earn maximum foreign exchange. This would help in formulating appropriate policies to influence freight-on-board (fob) prices thereby aligning with the changing international trade scene so as to effectively compete in the preferred markets to retain or increase market share which would maximize export earnings. The applicability of the model is illustrated using fennel seed export from India as an example.

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Working Papers | 1991

Deterministic Lot-Size Inventory Model When Delay in Payments are Permissible for a System with Two Storage Facilities

Shah Nitin and Shah Y K

In this paper a mathematical model of the economic order quantity with two storage facilities for single item has been considered under the condition that when the fixed delay in payments are permissible by the supplier. In practice, however, supplier allows some fixed delay in settling the account after receiving goods, and no interest charges are payable on the out-standing as longs as the account is settled within the specified delay period. The inventory system under consideration does not have sufficient space to accommodate the on-hand inventory. In such situation W units are stored at Own Warehouse (OW), and excess inventory is required to be kept in Rented Warehouse (RW). The holding costs at RW are higher as compared to OW. In this paper an attempt is made to analyse: a) when the system has both the warehouses facilities to accommodate the order quantity; b) when the OW has large capacity to store the on-hand inventory; c) when one does not wish to take RW services and stores maximum of OW capacity; and d) when simple EOQ model of single storage systems. The system suggest that when to hire RW services for more profitability among the given four alternatives. An expression for optimal order quantity is derived for all the above cases with an example to illustrate the methodology.

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Working Papers | 1991

An Evaluation of Farmers Price Expectation Process

Naik Gopal and Babu K R

Most dynamic models involve expectation of one or more variables. Existence of several expectation hypotheses, none of them being preeminent for all situations, makes it difficult to choose an expectation process while building models. In this context it would be helpful if empirical validity of different hypotheses is available for broad categories or situations. This study is aimed at evaluating farmers expectation process in terms of different hypotheses available. Here, the land allocation to chilly crop is assumed to be primarily based on expectation of subsequent prices. The resultant model from different expectation hypotheses are fitted on the acreage under chilly crop. Also, four different types of price indices for the period 1948-50 to 1988-89 are used to estimate and test the models. The best fit model is selected based on R2, Amemiya Prediction Criteria (APC) and forecast accuracy measured by Root Mean Square Error (RMSE). The actual best fit model (ideal model) for price is also identified using the above criteria and compared with the best expectation model used by farmers to assess the accuracy of the expectation form used. The results indicates that the extrapolative model proposed by Turnovsky is the best model for explaining farmers' expectations. This model also seems to be the ideal model for forecasting prices, especially for the recent years.

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Working Papers | 1991

Metric Rationalization of Bargaining Solutions and Respect for Unanimity

Lahiri Somdeb

In this paper we represent bargaining solutions by means of a metric which is defined on games, whereby the solutions are precisely those payoffs which are closest to being unanimously highest. Subsequently we study the properties of “welfare optimal rules” and rationalizability of bargaining solutions by symmetric metrics. This latter condition leads to anonymous bargaining solutions which satisfy “metric respect for unanimity”.

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Working Papers | 1991

Two Characterizations of the Independence of Irrelevant Alternatives Assumption

Lahiri Somdeb

In this paper we propose alternative characterizations of the Independence of Irrelevant Alternatives (IIA) assumption, as conceived in bargaining theory. We provide two distinct characterizations, which, allows us to view both the deficiencies as well as the advantages of the IIA axiom from a new angle.

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Working Papers | 1991

Some Thoughts on our Trade Unions

Sheth N R

This paper was prepared as a script for the S.D. Punekar Memorial Lecture delivered at the Tata Institute of Social Sciences, Bombay. It contains an attempt to review the state of art in trade unionism in India in the background of the mounting concern within and outside trade unions about the relevance of trade unionism in its present form. This concern is a product of some significant changes in the approach to management of industrial relations and the growing economic complexity in business and industry. It is argued that the primary function of trade unions is to provide a countervailing power for employees in relation to management and the society at large within the framework of the basic values of social equality, justice, fairness and human dignity. The development of trade unionism among blue-collar, white-collar and other categories of workers is briefly examined in the context of this primary function. The various social and political forces within and outside trade unions affecting their performance are explained in the course of the paper. Finally, some observations are offered on the role of trade unions as a part of the changing society in the foreseeable future and the crucial issues trade unions are likely to face.

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Working Papers | 1991

European Economic Community Review of Literature Reactions in India: Part I: 1960-80

Gaikwad V R

This is our forth working paper (WP) on the EC. The first paper (WP 841, Jan.1990) analysed the basic motives underlying the formation of the EC as reflected in the writings of Jean Monnet-“The Father of the Common Market”. The paper discussed the gigantic changes of great historical significance taking place in Europe. Following the Common Market strategy EC is relentlessly moving towards its ultimate political objectives, i.e., a United States of Europe. Recent events in Eastern Europe and USSR are not spontaneous but result of the long-term strategy for uniting 'People of European Origin'. Gorbachov's perestroika and glanost are strategies to provide “freedom” to East Europeans and European (white) Russia to ultimately become members of a Unites States of Europe. Both Monnet's and Gorbachov's strategies have been and are being executed with great finesse, shrewdness and top level diplomacy to develop a sense of complacency among the non-European communities. Today, EC leaders talk about “a broader, Helsinki-type Europe, from San Francisco to Vladivostock”. Our analysis indicates that the driving force behind the 'Unity of Europe' and of “People of European Origin” is genetic-ethnic-racial. It indicates that Europe's march from nationalism to supra-nationalism leads to supra-Euracialism. EC-1992 is of great symbolic significance for non-European communities. It is exactly 500 years after Columbus reached North America in 11492; the beginning of ruthless exploitation of non-European communities since then. EC-1992 is a landmark, a symbol of consolidation of European power and Euracial fundamentalism. It can also be a prelude to War of Races. Against the United Europe and 'People of European Origin” where do non-European communities stand? Have they realised in time the long-term implications of European unification processes and taken timely steps so safeguard their future? Have they asked themselves the question, whether by cooperating with EC with an eye on short-term commercial gains, are they further strengthening Europe's drive towards its politico-racial objective? In our second paper (WP 854, Mar,1990) we have sought answers to these and related questions in the writings of western writers. In our third paper (WP872, July 1990) we have discussed twelve sets of questions which try to look at EC from our perspective, i.e., non-European perspective. In this paper we shall see whether Indian thinking on EC has been in any way different from that of the western writers. Did it go beyond the traditional, stereotype ways of looking a European Community? What basic issues and concerns dominated Indian thinking? What was their analysis of events and reading of the future? What strategies and actions they recommended? And so on. The paper reviews ICSSR's survey of research (trend reports) in various disciplines, especially, in Public Administration (Khilnani and Sinai, “Administration of External Affairs”), Macroeconomic (Manmohan Singh, “International Trade and Payments”), Management (C.P.Rao, “Marketing”), Political Science: International Studies (Prasad and Phadnis, “Area Studies”; Mahendra Kumar, “Foreign Policy”; K.Subrahmanyam. “Defence Policy and Analysis”). In addition, the paper reviews in detail the writings of eleven other Indian scholars from various disciplines. This review is an eye-opener. It tells us about our scholars', top political leaders' and bureaucrats' world view, their orientation towards EC, and their reading of the events and perceptions about the future. Readers can themselves check the validity of these writers' assumptions and conclusions and their perceptions against the current realities.

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Working Papers | 1991

Implementation of Large Computer-Communication Projects in a Developing Country - A Case Study

Rekha Jain and G. Raghuram

The implementation of geographically dispersed computer-communication projects involving large financial outlays is a complex task, more so in a developing country context. This paper is focused around a case study which highlights some of the issues in the context of Indian Railways decision to implement a large computer-communication network for the management of it's freight operations. The case study is followed by a case analysis which first analyses the causes of project delay; then issues specific to this being a computer communication project, as well as issues which are of general nature and which we believe will be applicable to high technology projects involving large investments in a developing country context are discussed.

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Working Papers | 1991

Computer Based Itinerary Planning on Transportation Systems

G. Raghuram and Shobana R

Customers seek to know the best way of getting from an origin to a destination on a transportation system. Knowing the best way, i.e., itinerary planning, becomes all the more important when there are varied choices depending on the desired starting day and time at the origin or a required arrival day and time at the destination. Other considerations like cost, number of connections, etc., also play a role in the planning of an itinerary. A computer based system could enhance a customer's ability to make better choices in itinerary planning. No such system exists in either the Airlines, Railways, or Road Transport Corporations in India. This paper describes an interactive PC – based computer system developed by the authors, for itinerary planning on airlines (Indian Airlines and Vayudoot). The paper is supplemented by four annexures to facilitate further development covering system flow charts, structure of the database for maintenance and the implementation of the shortest and the k-shortest path algorithms. A users manual for the package is also provided.

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Working Papers | 1991

The Nash-Bargaining Solution for Public Sector Pricing Problems

Lahiri Somdeb

In this paper e study some issues in positive second-best theory, specifically the theory of optimal pricing of private goods produced by public firms; that is, firms whose objective departs from profit maximization. The approach in this paper differs from earlier analysis of the so-called Ramsey pricing problem, in that we embed our problem in a bargaining theory framework.

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