Opportunity Cost Classification of Goods and Markets

Mance, Davor; Vretenar, Nenad; Katunar, Jana

doi:10.17573/ipar.2015.1.06

Cited by 3 publications

(5 citation statements)

References 36 publications

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“…Until the point of exercise, we may talk about the prospective sunk cost being a positive production cost that needs to be recovered. A thorough representation of types of goods and markets developed during more than 50 years of discussion by Musgrave [17,18], Samuelson [22], Buchanan [4,5,6,7], and ultimately Ostrom [19] is given by Mance et al [16].…”

Section: Theory and Literature Reviewmentioning

confidence: 99%

“…Once a cost is "sunk", from an opportunity cost perspective, it becomes irrelevant for business decision-making [2,3]. Extremely high "sunk costs" are a primary reason why roads and highways are either governmentally financed, or part of a concession agreement between government and road operator as irreversible "sunk costs" pose a source of bankruptcy risk for the provider [16]. Concession agreements are governmental warranties to the provider that risky "sunk costs" of the investment are not in any form to be expropriated by the government, and a further warranty against undue competition, thus creating a governmentally protected monopoly, although, this second aspect is important only to a lesser degree since large "sunk costs" of the investment are themselves a barrier to entry to competitors creating a natural monopoly.…”

Section: Cost Structure and Revenue Managementmentioning

confidence: 99%

“…The user pays principle is not an economic principle based on efficiency, but an ethical one. The "user pays" principle is primarily based on the notion that the underlying good or service is not a pure public good as commonly accepted in economics [12,16,17,18,19,22].…”

Section: Organisational Aspects Of Highway Operationmentioning

confidence: 99%

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Un-Vignetting vignettes

Mance

2017

Pomorstvo (Online)

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In the art of photography, the phenomenon of vignetting means blurring of an image at its periphery compared to its centre. Vignettes are a form of road pricing independent of travel distance. Their usage in Croatia was recently rejected while in Europe, the number of countries using them, is increasing. The economic question of using vignettes as a primary source of revenue for the financing of Croatian highways was blurred by economically peripheral but politically sensitive welfare transfer issues. There has been no visible attempt to push the discussion back into the field of economics by using purely economic criteria such as: opportunity cost of usage, “sunk costs”, marginal costs, and total costs recovery. The paper aims at un-vignetting (un-blurring) the issue and re-focusing it towards economic arguments. The approach taken is a deductive-nomological argument based on opportunity costs of usage. The conclusion is straightforward: the vignettes are Pareto efficient since they make the society in general and the consumers in particular ultimately better off even after taking into account compensations. The opportunity costs of usage of congestion-free roads are zero. The optimal quantity-dependent price is then also zero. Since zero price does not recover costs, a differential pricing scheme needs to be put in place: one that does not depend on distance travelled.

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Section: Theory and Literature Reviewmentioning

confidence: 99%

Section: Cost Structure and Revenue Managementmentioning

confidence: 99%

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Un-Vignetting vignettes

Mance

2017

Pomorstvo (Online)

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“…Public participation is the main step in the planning process of coastal management (Water Framework Directive; 2002/413/EC "Recommendation of the European Parliament and Concerning the Implementation of ICZM") and the Integrated Coastal Zone Management (ICZM) protocol represents a solid institutional foundation for the expression of the Barcelona convention impact onto coastal zone management. The most effective way to achieve sustainable development is to implement a participative stakeholder inclusive approach [12], [11], [5], [6] in governing of the commons [12], [11], [5], [6], [9]. An initial step for this undertaking would be to acquire the understanding of public attitudes and perceptions [17].…”

Section: Introductionmentioning

confidence: 99%

Users’ Perception as a Tool for an Integrated Coastal Management and Beach Quality Assessment

2018

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The aim of the paper is to show a brief review of social research methods used in beach user research and coastal zone management. It is argued that this approach may effectively be used from the perspective of Integrated Coastal Zone Management (ICZM). Beaches are one of the most important factors of the sun and sea tourism, and an area where the increased users` pressure is common with the rise of tourist activity. This expansion creates increased pressure on the coastal area, the marine eco systems and, potentially, leads to a degradation of the natural environment. Social research methods provide an invaluable insight into the processes incentivizing beach users in respect to physical, social, economic and natural aspects of beach uses as well as of other parts of the coast, through the concept of the user perception. The intended result is to provide a brief methodological overview of social science research methods applied to and found in literature that can be used to be better informed of the beach management decisions as an area of ICZM interest and, in this way, contributing to the overall sustainable development of the coastal zone and increasing the competitiveness of beach tourism.

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“…Market classification according to irreversibilities and cost subadditivitiesMance et al (2015) based onBaumol et al 1982. …”

mentioning

confidence: 99%

Comparison of European Union Public Health Systems

Mance¹,

Vretenar²,

Gojković³

2019

Third International Scientific Conference ITEMA Recent Advances in Information Technology, Tourism, Economics, Management and A

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This paper deals with public health systems of European Union Member States. We try to analyse and compare the public health budget allocation systems in existence in the EU. We analyse their differences and try to explain where the differences come from. We concentrate on the impact of differences in economic estimates in decision making on the allocation of scarce funds. We try to answer the question whether countries with lower income per capita compensate the lack of funds, lower capital endowment, and the impossibility to invest in equipment with larger labour endowment or improvement in human capital. On contraire, we find that some of the former transition countries experience a strong brain drain of medical personnel. Thus, former transition countries with relative stronger health personnel endowments tend to lose their qualified labour force to the more capital-endowed developed nations confirming the brain-drain hypothesis and refuting the hypothesis that labour is a relatively immobile production factor.

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Opportunity Cost Classification of Goods and Markets

Cited by 3 publications

References 36 publications

Un-Vignetting vignettes

Un-Vignetting vignettes

Users’ Perception as a Tool for an Integrated Coastal Management and Beach Quality Assessment

Comparison of European Union Public Health Systems

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