Firms do not operate in isolation. They are in constant strategic interaction with other firms, struggling for customers and market shares. While some firms have the luxury of operating in less competitive product markets, others face severe competition. This intense competition fundamentally affects the firms’ operating decisions and cash flows. While recent evidence supports the view that the intensity of competition has important implications for firms’ cash flows and stock returns (Gaspar and Massa, 2006; Hou and Robinson, 2006; Irvine and Pontiff, 2009; Hoberg and Phillips, 2010; Peress, 2010), the effect of competition on the pricing of debt has so far remained unclear.
Consumers in aquatic ecosystems can use two distinct sources of organic carbon for nutrition. They may feed on autochthonous carbon sources formed by within-lake primary producers and/or they may use allochthonous carbon sources from terrestrial inputs (Rosenfeld and Roff 1992, Bunn and Boon 1993, Karlsson et al. 2003). Numerous studies have investigated the relative importance of autochthonous and allochthonous carbon sources to aquatic food webs (Jones et al. 1998, Beaudoin et al. 2001, Grey et al. 2001) in an effort to elucidate the mechanisms that influence the variability in system reliance on internally and externally generated sources of carbon (Jones et al. 1998, Beaudoin et al. 2001). Research in European and North American lakes suggests that planktonic food webs are often primarily fuelled by allochthonous carbon sources, particularly in lakes with high dissolved organic carbon (DOC) loads (Jones et al. 1999, Jansson et al. 2000, Grey et al. 2001, Jonsson et al. 2001, Karlsson
et al. 2003).
Comparatively few assessments of the relative importance of allochthonous and autochthonous carbon sources to consumer diets have been conducted in lake littoral zones (but see Hecky and Hesslein 1995, James et al. 2000a, James et al. 2000b). Littoral zones are often more productive than pelagic zones in shallow oligotrophic lakes (Loeb et al. 1983), so the contribution of autochthonous carbon to consumers might be expected to be greater than that observed in pelagic planktonic food webs. However, littoral zones are also characterised by having high inputs of allochthonous carbon from fringing vegetation (France 1995b) and in many instances, a diverse shredder assemblage suggestive of a detrital, allochthonous-driven, food web (Havens 1993, Mancinelli et al. 2002). As a result, it is difficult to predict the likely contribution of allochthonous and autochthonous carbon sources to consumer diets in lake littoral zones (France 1995a, Hecky and Hesslein 1995, Havens et al. 1996, James et al. 2000b).
Intergenerational mobility is often seen as a measure of equality of opportunity: if a child from a poor background obtains a ‘good position’ when adult this may be because he/she was clever and that abilities pay. Traditionally the United States have been viewed as a highly mobile society and this contributes to the popular view of an ‘American Dream’. At the same time, this country has also the most unequal distribution of income among developed countries.
In that case, inequality may hamper mobility by deterring investment in human capital if credit markets are imperfect. This is where a case for public education can be made on ‘equality of opportunity’ and intergenerational mobility (IM) grounds. Most European countries have a large share of their education system publicly financed and centrally provided this translates by a more homogeneous distribution of income. Because in a publicly financed system, credit constraints should not hamper educational choices, it should be easier for poor families in Europe to invest in their child’s human capital. This is illustrated by the possibility of a relatively poor born child with above average ability being unable to afford much education in a private system while being able in a public system. Hence, most theoretical models posit a positive relationship between income equality and mobility (see Becker and Tomes 1986, 1979; Loury 1981, Owen and Weil 1998).
