Economics Insights @ CBS

Notwithstanding the apparent differences between convex games and minimum cost spanning tree (m.c.s.t.) games, we show that there is a close relationship between these two types of games. This close relationship is realized with the introduction of the group of permutationally convex (p.c.) games. It is shown that a p.c. game has a nonempty core and that both convex games and m.c.s.t, games are permutationally convex.

Suppose n facilities are to be located on a fine segment so as to minimize cost function. One might expect that the facilities' optimal locations have the following interleaving property: if one of the n facilities is removed and if the locations of the others are shifted by reoptimizing, each remaining facility's location shifts toward the location of the one removed, but not farther toward it than the original location of the adjacent facility. This paper presents two models whose solutions have this interleaving property and four examples of such models.

The recent appearance and growth of new delivery systems for dental services is examined from a marketing perspective. Analysis reveals that the growth of low priced, high throughput operations is consistent not only with marketing principles, but with the development of American retail institutions in general. Options for independent dentists in the face of this new competitive environment are discussed.