ALBERT

Notes: Successful long-term wetland restoration efforts require consideration of hydrology and currounding land use during the site selection process. This article describes an approach to initial site selection in the San Luis Rey River watershed in southern California that uses watershed-level information on basin topography and land cover to rank the potential suitability of all sites within a watershed for either preservation of restoration. This approach requires the use of a geographic information system (GIS)to map relative wetness and land cover within a watershed. Relative potential wetness values were derived from U.S. Geological Survey (USGS) 30-m digital elevation models by calculating the flow that would potentially accumulate at all 30-m × 30-m pixels within the watershed. Land cover was derived from a Landsat scene covering the 1500 Km2 study area. We ranked sites (contiguous groups of pixels 〉 1 ha with similar land cover) in terms of their potential for restoration or preservation based on their wetness values (Iow, medium, and high), size, and proximity to existing riparian vegetation. Sites with medium or high wetness values and extant vegetation were identified as potential preservation sites. Agiricultural or barren sites with medium to high wetness were identified as potential restoration sites. Approximately 5500 ha (3.67% of the total watershed) were prioritized for preservation or resloration.

Notes: This historical and conceptual overview of riparian ecosystem restoration discusses how riparian ecosystems have been defined, describes the hydrologic, geomorphic, and biotic processes that create and maintain riparian ecosystems of the western USA, identifies the main types of anthropogenic desturbances occurring in these ecosystems, and provides an overview of restoration methods for each disturbance type. We suggest that riparian ecosystems consist of two zones: Zone I occupies the active floodplain and is frequently inundated and Zone II extends from the active floodplain to the valley wall. Successful restoration depends n understanding the physical and biological processes that influence natural riparian ecosystems and the types of disturbance that have degraded riparian areas. Thus we recommend adopting a process-based approach for riparian restoration. Disturbances to riparian ecosystems in the western USA result from streamflow modifications by dams, reservoirs, and diversions; stream channelization; direct modification of the riparian ecosystem; and watershed disturbances. Four topics should be addressed to advance the state of science for restoration of riparian ecosys-tems: (1) interdisciplinary approaches, (2) a unified framework, (3) a better understanding of fundamental riparian ecosystem processes, and (4) restoration po-tential more closely related to disturbance type. Three issues should be considered regarding the cause of the degraded environment: (1) the location of the causative disturbance with respect to the degraded riparian area, (2) whether the disturbance is ongoing or can be elim-inated, and (3) whether or not recovery will occur nat-urally if the disturbance is removed.

Notes: A two-stage system for selecting stream reaches and riparian communities for restoration was applied to the 80-km San Luis Rey River below the Lake Henshaw dam in southern California. In the first satge, data from topographic quadrangles and aerial photographs were analyzed to define and classiy reaches. These analyses concluded that (1) 28 km of the river and adjacent floodplain were suitable for second-stage evaluation of restoration needs and (2) 32 km met criteria for reference conditions at the stream reach scale and should be protected from further impacts. The remaining 20 km of the river and floodplain were considered unsuitable for restoration to reach-scale reference conditions; individual sites may be restored under existing regulatory review. Second-stage field sampling provided data on vegetation and floodplain landforms and substrate from more thatn 3000 plots within the 28 km of river and 1120 ha of floodplain selected for further Study. Classification of floristic samples stratified by landform/substrate class indicated six primary riparian communities on the floodplain, some associated with particular floodplain landform/substrate classes and others ubiquitous. Reference conditions for these communities were interpreted from the data. There were two major departures from reference conditions: tree-dominated communities were less extensive than historic levels and exotic plants had significantly invaded some landforms and communities, displacing natural com-munities. General goals would include restoration of tree communities and removal of exotics, with further consideration of site-specific objectives. The results included estimates of the areas by community type re-quiring restoration. The approach was developed for streams in the semi-arid western United States, but it may be adapted for use elsewhere.

Notes: This study compares the results of Olson and Harris (1997) and Russell et al. (1997) in their work to prioritize sites for riparian restoration in the San Luis Rey River watershed. Olson and Harris defined reaches of the mainstem and evaluated the relative potential for restoration and protection based on cover of natural vegetation, land use, and connectivity. Then they used data on geomorphic conditions, plant species composition, and community structure to prescribe strategies for restoration. Russell et al. used a modeling approach within a geographic information system to combine data on wetness and land use/land cover to identify areas with potential for protection and restoration. They prioritized the areas based on patch size and proximity to extant riparian habitat. The main-stem and associated floodplain defined by Olson and Harris was more than twice the size of the area defined by Russell et al., because Olson and Harris considered the entire valley floor, whereas Russell et al. used a wetness index to identify saturated zones within the floodplain. For seven of the twelve management units delineated along the mainstem, the two studies agreed on a strategy of restoration or protection. They differed on two. No comparison could be made of the three units for which Olson and Harris used project review, a unique category. Agreement of the results is due to the similarity of criteria used to identify and rank sites for protection and restoration; disagreement is due primarily to the level of resolution of the data. Both approaches have potential for use in watershed-level planning. The predictive power of the two approaches may be maximized when they are used in a complementary fashion.

Notes: We present a conceptual model for identifying restoration sites for riparian wetlands and discuss its application to reaches within the Upper Arkansas River basin in Colorado. The model utilizes a Geographic Information System (GIS) to analyze a variety of spatial data useful in characterizing geomorphology, hydrology, and vegetation of riparian wetland sites. The model focuses on three basic properties of riparian wetland sites: relative soil moisture, disturbance regime, and vegetative characteristics. A relative wetness index is used to define nominal soil moisture classes within the watershed. These classes generally coincide with uplands (low), channel margins (moderate), and channels or open water (high). Vegetative conditions are characterized using color infrared aerial photographs. Land cover types are grouped into five major land cover classes: riparian, moist herbaceous, bare ground, upland, and open water. Disturbance regime is characterized by a reach-based index of specific power (ω). Preliminary results indicate that reaches within the Upper Arkansas River basin can be classified as high energy (ω≥ 8 W/m2) or low energy (ω≤ 3W/m2), using discharge estimates that reflect the 10-year flood event. Field surveys of channel and floodplain conditions show that high-energy reaches (ω≥ 8 W/m2) are characterized by sites where the channel occupies a large proportion of the valley bottom. By contrast, low-energy reaches (ω≤ 3 W/m2) are characterized by meandering channels with wide alluvial valleys. Restoration potential is evaluated as a combination of nominal scores from wetness, land cover, and disturbance indices. Application of these methods to field sites within the Upper Arkansas River basin identifies a wide range of riparian wetland sites for preservation or restoration. Potential sites within identified reaches are prioritized using size and proximity criteria.

Notes: A major goal of population biologists involved in restoration work is to restore populations to a level that will allow them to persist over the long term within a dynamic landscape and include the ability to undergo adaptive evolutionary change. We discuss five research areas of particular importance to restoration biology that offer potentially unique opportunities to couple basic research with the practical needs of restorationists. The five research areas are: (1) the influence of numbers of individuals and genetic variation in the initial population on population colonization, establishment, growth, and evolutionary potential; (2) the role of local adaptation and life history traits in the success of restored populations; (3) the influence of the spatial arrangement of landscape elements on metapopulation dynamics and population processes such as migration; (4) the effects of genetic drift, gene flow, and selection on population persistence within an often accelerated, successional time frame; and (5) the influence of interspecific interactions on population dynamics and community development. We also provide a sample of practical problems faced by practitioners, each of which encompasses one or more of the research areas discussed, and that may be solved by addressing fundamental research questions.

Notes: Books reviewed in this article: Biotic Interactions and Global Change P. M. Kareiva, J. G., Kingsolver, and R. B. Huey, editors Defining Sustainable Forests G.H. Aplet, N. Johnson, J. T. Olson, and V. A. Sample, editors

Notes: Despite this nation's massive effort during the past 90 years to build levees throughout the upper Mississippi Basin, mean annual flood damage in the region has increased 140% during that time. These levees exacerbate the flood damage problem by increasing river stage and velocity. Thus, rather than continuing to rely on structural solutions for flood control, it is time to develop a comprehensive flood management strategy that includes using wetlands to intercept and hold precipitation where it falls and store flood waters where they occur. History testifies to the truth of this premise: it was the rampant drainage of wetlands in the nineteenth century that gave rise to many of today's water resources management problems. The 1993 flood verifies the need for additional wetlands: the amount of excess water that passed St. Louis during the 1993 flood would have covered a little more than 13 million acres —half of the wetland acreage drained since 1780 in the upper Mississippi Basin. By strategically placing at least 13 million acres of wetlands on hydric soils in the basin, we can solve the basin's flooding problems in an ecologically sound manner.

Notes: Books reviewed in this article: Perspectives on Biodiversity: Case Studies of Genetic Resource Conservation and Development. Christopher S. Potter, foci 1. Cohen, and Dianne Janczewski, editors

Notes: To evaluate reclamation success on the Wooley Valley phosphate mine in southeastern Idaho, we compared vegetation structure and soil physical, chemical, and elemental properties of several different reclamation treatments with those of a nearby reference area (a native Artemisia tridentata vaseyana/Festuca idahoensis association) after 14 years. Vegetation data had been collected four years after reclamation, and we were able to compare differences in biomass and species composition between dates on the reclaimed area. Four years after reclamation there were no differences in total biomass between topsoil or spoil or between seed only, seed + mulch, or control treatments on the different soil types. Most treatments were dominated by seeded perennial grasses. Fourteen years after reclamation there were no differences in biomass or cover between spoil and topsoil plots, but on spoil plots the seeded and mulched treatment had higher total biomass and vegetation cover than on control or seed-only treatments. The seeded perennial legume Medicago sativa was codominant with the seeded forage grasses on all of the treatments. High initial fertilization rates probably facilitated the early establishment and dominance of the forage grasses; once nutrient levels, especially nitrogen, began to decline, the legume increased in abundance. Similarity between the reclaimed area and the reference or native area was low. Reclaimed treatments had higher biomass but lower species richness. The topsoil and spoil plots had similar soil texture, bulk density, pH, cation exchange capacity, electrical conductivity, and phosphorus. Differences in organic carbon, total nitrogen, carbon: nitrogen ratios, and available moisture were related more to treatments than to soil type. High biomass and, thus, litter input on the seed + mulch treatment on spoil plots resulted in both higher OC and TN than any on other soil/treatment combination. The reclaimed area had lower OC, TN, and available moisture than did the reference area on all but seed + mulch spoil plots. Bulk density was higher on reclaimed plots. The long-term differences observed between the reclaimed and reference areas parallel those obtained for other western reclamation sites. Although successional trajectories depend on the attribute measured, similarity to native reference areas depends on the initial reclamation methods. We discuss reclamation methods that would increase the structural and functional similarity of reclaimed and reference areas on the Wooley Valley phosphate mine.

Notes: In land restoration it is imperative to study the potential role of disturbances, biotic or abiotic, that may provide sites for colonization by specific plants. Disturbances can alter community composition by removing species or allowing others to become established. In communities where animal-generated disturbances open sites for seedling establishment, animals may have important indirect effects on several aspects of plant community structure. Animal disturbances in Quercus havardii communities of western Texas appear to open sites for colonization by herbaceous species. These animal disturbances vary in spatial distribution, density, and abiotic and biotic characteristics. The abundance of herbaceous plant seedlings is positively related to bare ground and the number of distinct disturbances. Thus, the density and the spatial distribution of these disturbances may be expected to have an important influence on the abundance and dispersion of plant species. Therefore, successful restoration efforts of sand shinnery oak communities and other similar habitats must consider the effects of animal disturbances and the role of plant-animal and plant-soil microbe interactions on plant community composition and the maintenance of plant species diversity.

Notes: The rates of seston elimination by zooplankton and primary production were measured in Funada-ike Pond, typical of human-made impoundments in Japan, from April to September in order to evaluate various treatments of the pond aimed at improving water quality by reducing seston abundance. The treatments included draining the pond water, dredging the bottom mud, eliminating the wastewater inflow, and biomanipulation through removal of all fish. After the treatment, seston abundance was reduced from more than 10 to 0.4–2.5 mg C/liter, and large daphnid species, Daphnia similis and D. magna, occurred and predominated in the zooplankton community. Seston abundance remained at a relatively low level from June to August but increased markedly in late August, while the biomass of zooplankton became high from June to mid-August and then decreased. A decrease in seston abundance was found when the elimination rate exceeded the primary production rate. The results indicate that the development of daphnid populations was effective in keeping seston abundance at a low level. The relationship between the rate of primary production and the zoo-plankton biomass required to offset this rate, however, suggests that biomanipulation aimed at increasing zooplankton biomass alone is less effective in a pond with a high primary production. The success in improving water quality in this pond seems to depend not only on the increase in biomass of large daphnid species that resulted mainly from the removal of fish, but also on the decrease in nutrient load that was realized by the other treatments.

Notes: Livestock have been excluded from riparian zones along many streams in western North America in an effort to restore aquatic and riparian habitat degraded by livestock grazing. Within these exclosures, channel adjustment to elimination of grazing pressure may lag behind plant recovery because of the time required to deposit sediment along the vegetated banks of the stream channel. Moreover, unless grazing is eliminated from the watershed, the channel within the exclosure must still accommodate increased runoff and sediment loads from upstream. This hydrologic regime may prevent a return to predisturbance channel morphology. Cross sections of the North Fork Cottonwood Creek in the White Mountains of California showed no significant difference in channel width within and downstream of a 24-year-old exclosure, despite a lush growth of stream bank vegetation that gives the impression of a narrower channel within the exclosure.

Notes: Many felids are threatened by loss of habitat, lack of genetic diversity, and over-exploitation. The reintroduction of bobcats (Felis rufus) to Cumberland Island, Georgia provided an opportunity to reintroduce a mid-sized felid without the concern for species survival that is paramount with endangered species. We captured bobcats from the coastal plain region of Georgia, briefly held them in captivity, and released them on Cumberland Island. We describe and evaluate the protocols and techniques used to accomplish the reintroduction. Future reintroductions of felids should consider the problem of post-release dispersal, although our island was relatively isolated and inhibited dispersal. Also, any reintroduction effort should invest effort and resources into post-release monitoring of the population. Empirical knowledge about the effects of spatial distribution, genetics, population dynamics, especially mechanisms of population regulation, behavior, and environmental conditions on the viability of populations is critical to the conservation of endangered species. Future research of the bobcats on Cumberland Island will be able to address aspects of the population and genetic dynamics of a small, insular felid population.

Notes: We studied the use of mineland wetlands by birds and the relationship between avian communities and wetland characteristics. Data were collected from 20 wetlands in Pike County, Indiana, and included wetland size, depth, water conductivity and salinity, aquatic macroinvertebrate abundance, vegetation, and bird use. Principal component analysis showed that physical variables could be explained by two principal component scores and that wetlands could be grouped on the basis of size and conductivity. Principal component analysis could not reduce vegetation variables to fewer principal component scores, meaning that wetland vegetation characteristics were independent of one another and did not show any trend. Most wetlands had low invertebrate density, and wetlands with higher invertebrate density had low invertebrate diversity. Wetlands with similar habitat characteristics (physical, vegetative, and invertebrate) did not necessarily show similarities in bird assemblages. Bird similarity index values ranged from 0 to 59%, implying that each wetland has its own bird community. Stepwise multiple regression analysis (α= 0.05) relating bird use and habitat characteristics showed that bird species richness increased with the species richness of submergent vegetation and was correlated negatively with the species richness of emergent vegetation. There was no significant relationship between bird species richness or bird species diversity and wetland size. The number of species within different avian guilds correlated with different habitat characteristics. The species richness of submergent plants was a factor that correlated positively with the number of species of several guilds (dabblers, wading birds, and plunge divers). Wetland age was not a factor that determined bird use.

Notes: Grass seeding is widely used for erosion control, but its consequences for soil and regeneration following fire have been measured only infrequently. This study investigates the effect of grass seeding on the type and extent of plant cover; soil moisture percentage; and moisture stress, survival, growth, and root-tip and mycorrhiza formation of Pinus lambertiana (sugar pine) seedlings in a clearcut intensely burned by wildfire. One-year-old containerized sugar pine seedlings were planted in seeded and nonseeded areas in Spring 1988 and 1989 in the Longwood Fire area of southwest Oregon. In 1988, tree seedlings in grass-seeded plots experienced intense competition from the grass, reduced root-tip and mycorrhiza formation, low levels of soil moisture to meet evapotranspirational demand, high levels of mortality, and reduced growth. In 1989, however, the opposite was true: tree seedlings in nonseeded plots experienced competition from invading native annuals and perennials, low levels of soil moisture in summer, and higher levels of mortality. The studies we report here further indicate that, in an area characterized by extended summer drought, annual ryegrass impeded regeneration of sugar pine during the first season following the fire. Native species cover and richness have been significantly reduced in the seeded area and may affect long-term soil stability, productivity, and conifer restoration. Seeding of annual ryegrass at high rates under these conditions would seem ill advised.

Notes: Books reviewed in this article: Reintegrating Fragmented Landscapes towards Sustainable Production and Nature Conservation. R. J. Hobbs and D. A. Saunders. editors Restoring Acid Waters: Loch Fleet 1984–1990. G. Howels, and T.R.K. Dalziel, editors

Notes: In prairie restoration, use of seeds from nonlocal sources has been of concern to restorationists. We examined the specificity between vesicular-arbuscular mycorrhizal fungi obtained from a single location and little bluestem obtained from three localities. Seed was obtained from three sources: (1) a commercial seed supplier in Nebraska, (2) Sand Ridge State Forest (SRSF), Mason County, Illinois, the site from which the experimental soil containing the mycorrhizal inoculum was obtained, and (3) Sand Prairie Scrub Oak Nature Preserve (SPSO), 32 km southwest of SRSF. Plants were grown in three substrates: (1) autoclaved soil, (2) autoclaved soil to which a mycorrhizal fungal-free sieving of nonautoclaved soil was added, and (3) nonautoclaved soil. All plants grown in nonautoclaved soil were colonized by mycorrhizal fungi, whereas none of those grown in other substrates were colonized. Plants grown from SRSF seeds produced significantly (p 〈 0.05) more biomass than those grown from Nebraska seeds (X̄± SE, SRSF = 0.54 ± 0.04 g, SPSO = 0.49 ± 0.03 g, Nebraska = 0.37 ± 0.03 g). Plants grown in nonautoclaved soil, regardless of seed source, produced less biomass (0.27 ± 0.02 g) than plants grown in autoclaved soil (0.58 ± 0.03 g) or autoclaved soil plus sievings (0.59 ± 0.03 g).The results provide no clear indication of a host-endophyte specificity. However, the data suggest that the local genotypes of S. scoparium are better adapted to their native soil environment than are genotypes from other localities.

Notes: This essay reviews the recent attempts by the Northwest Power Planning and Conservation Council (NPPC) to conserve and restore wild salmon lost to hydroelectric development along the Columbia River and its tributaries. The restoration of the wild salmon is predicated on cooperation between myriad stakeholders in a planning process that includes the NPPC, 11 state and federal agencies, 13 Indian tribes, 8 utilities, and numerous interest groups. The two goals of the essay are (1) to review the recent amendments to the NPPC's fish and wildlife program, and (2) to describe the political barriers to restoration versus restocking of wild salmon in the Columbia River. The failure of political and administrative entities to deal with the problem of restoring wild salmon may result in drastic requirements being imposed by the imperatives of the Endangered Species Act.

Notes: An environmental revolution is urgently needed that will lead to a post-industrial symbiosis between man and nature. This can be realized only if the present unrestrained biological impoverishment and neotechnological landscape degradation are replaced by the creation of healthy and attractive landscapes. Restorationists can fulfill a vital role in this process. They must broaden their scales from biodiversity restoration in small, protected nature islands to the large-scale restoration of natural and cultural landscapes. To achieve this they must restore not only the patterns of vegetation but also the processes that create these patterns, including human land uses. Their goal should be to restore the total biological, ecological, and cultural landscape diversity, or “ecodiversity,” and its intrinsic and instrumental values of highly valuable, endangered seminatural, agricultural and rural landscapes. For this purpose it is essential to maintain and restore the dynamic flow equilibrium between biodiversity, ecological, and cultural landscape heterogeneity, as influenced by human land uses, which occur at different spatial and temporal scales and intensities. Recent advances in landscape ecology should be utilized for broader assessment of ecodiversity, including proposed indices of ecodiversity, new techniques such as Intelligent Geographical Information Systems (IGIS), and Green Books for the holistic conservation and restoration of valuable endangered landscapes. Restoration ecology can make an important contribution to an urgently needed environmental revolution. This revolution should lead to a new symbiosis between man and nature by broadening the goal of vegetation restoration to ecological and cultural landscape restoration, and thereby to total landscape ecodiversity.

Notes: Physiological and vegetative performances of three prairie grasses were investigated to assess their adaptation to soil conditions at two strip mine sites and a nearby railroad prairie. Additionally, rhizomes of the species were transplanted to a pot experiment and grown in both field soil and greenhouse potting medium to investigate the extent to which plants are limited under field conditions. Field measurements of photosynthetic rate and stomatal conductance to water vapor were made on the three species monthly from May to late August. Gas exchange measurements on potted plants were made biweekly from early May to mid-July. In September, vegetative and flowering characteristics were measured on both field and potted plants. Field gas exchange rates were highest at one of the mines. Sorghastrum nutans had the highest rates at the mine sites, whereas Panicum virgatum had the highest rates at the prairie site. Potted plants from the prairie site usually exhibited the highest gas exchange rates, and Sorghastrum nutans had higher rates than Panicum virgatum and Andropogon gerardii. Potted plants in field soil generally had higher gas-exchange rates than plants growing in greenhouse potting medium, and potted plants had higher gas-exchange rates than field-grown plants. Vegetative and reproductive performance of field plants was highest at one of the mine sites. Potted plants in greenhouse medium had up to twice the vegetative and reproductive output as potted plants in field soil or plants growing in the field. The physiological and vegetative performance of these species indicates that they are well adapted to the soil conditions at these strip mine sites, and that they are a viable alternative to nonnative plantings for restoration.

Notes: This paper describes a practical technique, tested experimentally, for rehabilitating degraded semiarid landscapes in Australia. This rehabilitation technique is based on the ecological principle that semiarid landscapes are spatially organized as patchy, source-sink systems; this patchy organization functions to conserve limited water and nutrients within the system. The aim was to rebuild vegetation patchiness, lost through decades of utilization of these landscapes as rangelands. Patches were reconstructed from large tree branches and shrubs obtained locally and placed in elongated piles along contours. These piles of branches were very effective in recreating productive soil patches within the landscape, as described in part I of this study. These new patchy habitats promoted the establishment and growth of perennial grasses. Although the foliage cover of these grasses declined into a drought, which started before the end of the experiment, plant survivorship remained high. This suggests that patches also function as refugia for organisms during droughts. The patches of branches remained robust and functional, even under grazing impacts, although plant growth and survival were significantly higher within an ungrazed paddock than in a grazed paddock.

Notes: A study of spider (Araneae) communities was conducted in rehabilitated bauxite mines at the Jarrahdale mine site of Alcoa of Australia Ltd. and in the nearby native jarrah (Eucalyptus marginata) forest in southwest Western Australia. The study was conducted from March to August 1993 in five rehabilitated sites of different age and method of rehabilitation and in two forest sites. A variety of collection methods was used, including pitfall trapping, litter sampling, sweep netting, tree beating, and visual searching. These methods were the same as those carried out in a previous study of some of these areas in 1983. We collected 151 spider species belonging to 102 genera and 34 families. We examined the relationship between various habitat features, including the age and method of rehabilitation, of the spider communities present. It was found that leaf litter depth and cover and vegetation density had a significant positive influence on recolonization by the various spider guilds. The age and method of rehabilitation were found to influence different vegetational and habitat features; these, in turn, influenced the spider communities. Thus, the older a rehabilitated site the greater the species richness of both plants and spiders. We compared these results with those of the 1983 study to determine the spider succession of the aging rehabilitation. The spider communities and guild composition were found to change as the vegetation matured, from a dominance of pioneer species to a community of species requiring less harsh conditions. By comparison with the pre-1983 rehabilitation, the latest method of rehabilitation increased the rate of recolonization by both plants and spiders.

Notes: Peak flowering activity among woody species in the tropical dry forests of St. John, U.S. Virgin Islands, coincided with the brief spring rainy season but continued at moderate levels for six months, abating with the autumn rains. Fruit maturation showed a major peak in the long winter dry season and a minor crest during the summer dry season. Seeds of wind-dispersed species disseminated mainly during the winter dry season, while animal dispersal of seeds (74% of all woody species) followed the bimodal pattern (for wet and dry seasons) described for the community as a whole. Under shadehouse conditions, most dry forest tree species germinated well (〉 80%) and emerged promptly (within four weeks of planting) and synchronously (90% emergence within a four-week interval). Nine of 29 species tested in the shadehouse manifested dormancy of at least six weeks. Seed germinability varied among tree species, and the viability of most species began to decline following six months of dry storage. Few species retained high germinability after nine months of dry storage. The species composition of soil seed banks did not correspond closely with above-ground communities on three forested sites of varying stand age. In the youngest stand (35 years old), dominated by the weedy, arborescent legume Leucaena leucocephala, the soil seed bank was also dominated by this species, but no seeds of any other tree species were found in the soil samples. Seeds of native trees were scarcely encountered (only one indigenous species) in soil seed bank samples of three forest sites. Local seed rain from less disturbed forest may not be sufficient for prompt recovery of the dry forest community on degraded sites.

Notes: Glasshouse trials, using trickle irrigation and increasing levels of NaOH-induced alkalinity, identified species that could be expected to tolerate the high-pH conditions of bauxite processing waste residue sites. Of 29 taxa tested, the most tolerant were Casuarina obesa, Melaleuca lanceolata, M. armillaris, M. nesophila, Eucalyptus loxophleba, E. halophila, E. platypus, Tamarix aphylla, and a particular clone of E. camaldulensis; E. spathulata, E. tetragona, E. preissiana, E. gomphocephala, E. diptera, and E. occidentalis proved to be relatively sensitive to severe alkaline conditions. Tolerance appeared to relate to an ability to maintain root membrane function, nutrient uptake balance, and ultimately root tissue structure while under increasing levels of alkalinity stress. Species normally inhabiting alkaline soils tended to have increased growth rates in nutrient irrigation conditions between pH 8 and 10 compared with control plants irrigated with nutrient solutions of pH values near 7.4. However, once the irrigation solutions reached pH 12 and the buffering capacity of the soil appeared to be exceeded, the condition of susceptible plants rapidly declined and death followed. Sensitive plants initially showed symptoms related to nutrient deficiency, followed by wilting and death as the root systems failed. Field trial conditions in the bauxite residue impoundments at Kwinana, Western Australia, include soils with pH values as high as 11.00. In general, the relative survival and growth of seedlings after eight months were predicted by the response under glasshouse trial conditions. Appropriately designed stress trials can be important ecological techniques in choosing species most capable of surviving difficult environmental conditions in the rehabilitation of damaged landscapes.

Notes: In ecological restoration, nonindigenous species can pose a major problem because they are often aggressive and can overwhelm native species, thus altering ecosystem structure. This article identifies the circumstances in which prospects for use of restoration technology in controlling invaders are favorable or unfavorable, the factors that make certain species good colonizers, and the characteristics that make ecosystems susceptible to invasion. It discusses prospects for using restoration technology in controlling nonindigenous species by influencing hydroperiod, photo-period, thermoperiod, edaphic conditions, and availability of biological control agents so as to produce ecological conditions that are inhospitable to invaders. The limitations of restoration are discussed, as well as specific ecological situations in which it is likely to be the method of choice for control of nonindigenous species. Use of fire, flooding, manual removal, shading, substrate removal, and herbicide application as control techniques in conjunction with restoration efforts are considered. Specific examples, including the techniques employed, indicate the potential for controlling nonindigenous species in the process of ecosystem restoration.

Notes: Adequately evaluating the success of coastal tidal marsh restoration has lagged behind the actual practice of restoring tidally restricted salt marshes. A Spartina-dominated valley marsh at Barn Island Wildlife Management Area, Stonington, Connecticut, was tidally restricted in 1946 and consequently converted mostly to Typha angustifolia. With the re-introduction of tidal flooding in 1978, much of the marsh has reverted to Spartina alterniflora. Using a geographical information system (GIS), this study measures restoration success by the extent of geographical similarity between the vegetation of the restored marsh and the pre-impounded marsh. Based on geographical comparisons among different hydrologic states, pre-impounded (1946), impounded (1976), and restored (1988) tidal marsh restoration is a convergent process. Although salt marsh species currently dominate the restored system, the magnitude of actual agreement between the pre-impounded vegetation and that of the restored marsh is only moderate. Further restoration of the salt marsh vegetation may be limited by continued tidal restriction, marsh surface subsidence, and reduced accretion rates. General trends of recovery are identified using a gradient approach and the geographic pattern’ of vegetation change. In the strictest sense, if restoration refers only to vegetation types that geographically replicate preexisting types, then only 28% of the marsh has been restored. Restoration in a broader sense, however, representing the original salt marsh vegetation regardless of spatial position, amounts to 63% restored. Unrestored marsh, dominated by Typha angustifolia and Phragmites australis, remains at 37%. By emphasizing trends during vegetation recovery, this evaluation technique aims to understand the restoration process, direct future research goals, and ultimately aid in future restoration projects.

Notes: Books reviewed in this article: The Earth in Transition: Patterns and Processes of Biotic Impoverishment. A collection of papers from a symposium held in Woods Hole, Massachusetts, October 1986. George M. Woodwell, editor Restoration of Aquatic Ecosystems: Science, Technology, and Public Policy. National Research Council.

Notes: Results are presented using vegetative shoots and bryophyte sods to restore floristically impoverished high arctic wet sedge-moss meadows that had suffered intense damage from vehicle activity during the period 1960–1967. Clonal transplants of Carex aquatilis var. stans, a native sedge, were planted with and without bryophyte sods in vehicle ruts in 1972. After nearly two decades, there was less Carex cover in the planted ruts with flowing water than in the contiguous controls. This pattern was slightly reversed in planted plots with standing water. Reinvasion of Eriophorum angustifolium occurred in treated ruts, but cover was less in both treatments than in controls in 1990. The unexpected recruitment of Eriophorum scheuchzeri from the seed bank in moss-sodded plots is discussed in terms of its local and regional importance. Total plant cover in restored ruts was nearly equal to that of controls, but biomass was somewhat less than that in control plots. Plots with bryophytes were environmentally distinct, due primarily to increases in organic mat depth relative to controls. After 18 years, restoration efforts resulted in increased plant cover in treated ruts compared to naturally recovering ruts.〈blockFixed type="quotation"〉The composition of no two patches of vegetation is precisely the same [and] neither are the seed banks. Successsion on different patches of disturebed ground in the same locality frequently proceeds quite differently because of such differences.—J. Miles, Vegetation Dynamics, 1979

Notes: In markets, in which exchange requires costly search for trading partners, intermediaries can help to reduce the trading frictions. This intuition is modeled in a framework with heterogeneous agents, who have the choice between intermediated exchange and search accompanied by some bargaining procedure. The equilibria of such a game are characterized. In the case of a monopolistic intermediary, the tradeoff between the bid-ask spread and the costs of delay during private search determine the intermediary's clientele. In equilibrium the monopolist charges a positive spread. Traders with large gains from trade prefer to deal with him, whereas traders with relatively low gains from trade engage in search. In case of competition among intermediaries, the classical Bertrand result obtains, and bid and ask prices converge to the (unique) Walrasian equilibrium price. Thus, in the confines of the model, the Walrasian auctioneer of the market under consideration can be replaced by competing intermediaries. In addition a multiplicity of subgame perfect Nash equilibria emphasizes the coordination problems inherent in models of intermediation.

Notes: In this paper we analyze the properties of price equilibria in a duopoly market where firms sell vertically differentiated products, consumers being uncertain about which firm sells which quality. Both existence and properties of price equilibria are characterized by the beliefs of the consumers' population about the distribution of quality between firms.

Notes: The survey classifies economic theories of the firm into four categories based on the level of aggregation in economic models: (1) neoclassical, (2) industrial organization, (3) contractual, and (4) organizational incentive. Economic theories of the firm are evaluated on the basis of their potential application to problems of management decision making. The survey suggests that a management perspective can be useful in developing an integrated theoretical analysis of the firm that addresses both competitive strategy and organizational design.

Notes: Commitment: The Dynamic of Strategy, by Pankaj Ghemawat.Ghemawat's Commitment makes recent results in game-theoretic industrial organization accessible and useful to practitioners in the field of strategic management. This book contributes to the management strategy literature on two levels. On a conceptual level, Ghemawat strives to isolate “commitment” as the sole explanation of persistent differences in firm performance. On a more pragmatic level, he provides a framework intended to aid managers in making commitment-intensive decisions. It is with respect to how well he achieves these two distinct goals that I evaluate Ghemawat's contribution. In addition, I review briefly the book's content, and I compare Ghemawat's approach to some alternative approaches familiar to scholars and practitioners of strategic management.

Notes: In the present paper, we relate the extent of job security offered to incumbent managers to the extent of competition among firms in the product market, where the extent of job security is measured by the probability that an incumbent manager continues to be employed by his current firm and the extent of competition is measured by the degree of differentiation between competing brands. We demonstrate that when competition between firms intensifies and “on-the-job training” is relatively more conducive to reducing the variable costs of production, firms tend to offer reduced (increased) job security to incumbent managers, provided that the degree of differentiation between competing products is sufficiently large (small), respectively. If “on-the-job training” is relatively more conducive to reducing the fixed costs of production, however, the previous result is reversed.

Notes: This paper presents a model of strategic product choice when consumer preferences combine features of both horizontal and vertical product differentiation. Consumers disagree on what amount of a “special” characteristic makes for a better product, but those who prefer more of this attribute are willing to pay more for it. Within this demand structure, I examine the advantages of first-mover firms. I find that such firms typically do best in markets where the maximum degree of product differentiation is limited by preferences rather than technology. These are “niche markets”. Follower firms do better in markets in which the range of preferences is broad relative to the span of feasible goods.

Notes: This paper reexamines Grossman and Hart's (1980) insight into how the free-rider problem excludes an external raider from capturing the increase in value it brings to R firm The inability of the raider to capture any of the surplus depends critically on the assumption of equal and indivisible shareholdings–the one-share-per-shareholder model In contrast, we show that once shareholdings are large and potentially unequal, a raider may capture a significant part of the increase in value Specifically, the free-rider problem does not prevent the takeover process when shareholdings are divisible.

Notes: Many long-term contracts incorporate a termination clause. This paper argues that when agents have hidden information, such a clause has a beneficial incentive effect—it enables a principal to screen agents' private information at a lower cost. In a two-period model, this paper characterizes the optimal long-term contract with a termination clause, which specifies that the principal will switch agents in the second period when the first-period cost is high. The analysis delineates how the optimality of this clause depends on the intertemporal cost correlation structure, on the limits to agents' liability, and on the principal's degree of commitment.

Notes: Takeovers give raiders the opportunity of breaking implicit contracts inside the firm. If implicit contracts are adopted by workers and management to reach more efficient outcomes, then the possibility of takeovers may cause a welfare loss. We show that, under some conditions, this argument can go through even if the firm and the workers can write explicit and complete contracts. The crucial assumption is that the profitability of the firm is linked to its financial situation, in the sense that a firm which has a high probability of bankruptcy will face fewer opportunities than a financially solid firm. In this framework, the possibility of takeovers imposes constraints on the set of feasible employment contracts, leading to inefficient outcomes.

Notes: This paper deals with the strategic role of the temporal dimension of contracts in a duopoly market. Is it better for a firm to sign long-term incentive contracts with managers or short-term contracts? For the linear case, with strategic substitutes (complements) in the product market, the incentive variables are also strategic substitutes (complements). It is shown that a long-term contract makes a firm a leader in incentives, while a short-term contract makes it a follower. We find that, under Bertrand competition, in equilibrium one firm signs a long-term contract and the other firm short-term incentive contracts; however, under Cournot competition, the dominant strategy is to sign long-term incentive contracts.

Notes: Why is it so common for the seller to provide guarantees that say “Satisfaction guaranteed or your money back” along with the sale of a product? Newly introduced goods and mail-ordered products are usually sold with such guarantees. In honoring money-back guarantees, why is it a common business practice to pay back exactly the purchase price rather than a portion of it? In this paper we study the informational role and optimality of the common business practice of money-back guarantees in a signaling model with quality uncertainty and risk-neutral buyers. We find that money-back guarantees and price together completely reveal a monopoly firm's private information about product quality, Moreover, the private information is revealed at no signaling cost. Furthermore, we show that in terms of the level of monetary compensation specified by a guarantee, price is the profit-maximizing level of monetary payback in case of product failure.

Notes: Manufacturers may intentionally damage a portion of their goods in order to price discriminate. Many instances of this phenomenon are observed. It may result in a Pareto improvement.

Notes: It is generally believed that industries with greater product differentiation have higher rates of return. This paper shows that this effect breaks down in the presence of firm-specific cost shocks. Greater substitutability in products generates two opposing effects: (1) it allows a larger increase in demand when a firm has a favorable cost shock, which more than compensates for the reduction in demand when it has an unfavorable cost shock, and (2) it results in more intense price competition. These two countervailing forces result in industry profit being highest in markets with a moderate degree of product differentiation.

Notes: We present a model of industry evolution where the dynamics are driven by a process of endogenous innovations followed by subsequent embodiments in physical capital. Traditionally, the only distinction between R&D and physical investment was one of labeling: the first process accumulates an intangible stock, knowledge, while the second accumulates physical capital. Both stocks affect output in a symmetric fashion. We argue that the story is not that simple, and that there is more to it than differences in the object of accumulation. Our model stresses the causal relationship between past R&D expenditures and current investments in machinery and equipment. This causality pattern, which is supported by the data, also explains the observed higher volatility of physical investment relative to that of R&D expenditures.

Notes: We examine the question of whether a regulated firm that makes a long-term investment in infrastructure can credibly signal its private information regarding the future demand for its output to the capital market. We show that necessary conditions for a separating equilibrium in which the magnitude of investment signals high future demand may include a low degree of managerial myopia, large variability of future demand, a lenient regulatory climate, and low sunk cost. Our model suggests that in estimating valuation models of regulated firms it is important to separate firms into two groups: firms for which a separating equilibrium is likely to obtain and firms for which the equilibrium is likely to be pooling. The market value of a firm in the first group is positively correlated with its level of investment, but uncorrelated with the level of actual demand, whereas for the second group the opposite holds.

Notes: This paper develops the hypothesis that firms possess a stock of well-established brands, a stock termed brand capital. The firm with the greatest capital is able to introduce new products in response to new information about consumer tastes before rivals. The results using data from the ready-to-eat cereal industry not only support this hypothesis, but also distinguish brand capital from other sources of firm heterogeneity.

Notes: This paper attacks the problem of developing strategies for a firm to deal with technological change. We show that the product market strategies of the firm—including pricing, product positioning, and rent preemption strategies—can play a role in the efficient search for technology-related information when information search is costly and there are adaptation costs due to the presence of agency. We utilize a dynamic model of spatial competition with uncertain technological innovations in which firms can learn from each other about technological developments. Private information and agency conflicts are shown to increase the effective information search costs of incumbents, who then use interfirm learning to their advantage in equilibrium. This viewpoint also allows us to see the role of mergers and acquisitions, subsidiary formation, and internal R&D labs in a new light. The more general point is that organizational structures and, in particular, the differential distribution of information within the organization impose constraints on the information-search and adaptation strategies of the firm, and the formulation of product-market and R&D strategies serves to relax these constraints.

Notes: We consider the general problem of price discrimination with nonlinear pricing in an oligopoly setting where firms are spatially differentiated. We characterize the nature of optimal pricing schedules, which in turn depends importantly upon the type of private information the customer possesses–either horizontal uncertainty regarding brand preference or vertical uncertainty regarding quality preference. We show that as competition increases, the resulting quality distortions decrease, as well as price and quality dispersions. Additionally, we indicate conditions under which price discrimination may raise social welfare by increasing consumer surplus through encouraging greater entry.

Notes: We model an internal labor market in which employee behavior and compensation are affected by the firm's financial position and the threat of hostile takeover or other exercise of shareholder “voice.” We show how good past performance can result in excessively generous promotion and pay decisions. While the threat of shareholder activism will remove this “slack,” activists optimally face a positive cost barrier, which in turn varies across firms. The cost barrier is higher when cooperation or “helping” between employees is more important, and is lower when employees receive efficiency wages due to an inability to “pay” for their jobs. Since the importance of helping is associated with pay compression and “flat” pay ladders, such firms should also exhibit a greater degree of management entrenchment.

Notes: The literature on the incentives for R & D cooperation with spillovers typically deals only with the factors affecting cooperative profits. This paper focuses on the incentives to cheat and the stability of such cooperative agreements in a repeated game framework. It is shown that the stability of cooperation is influenced by the nature and magnitude of spillovers, relative to the nature and degree of product market competition. While cooperative profits are higher with large positive (exogenous, unintended) know-how spillovers, such as in fundamental research, our anslysis shows that it may be easier to sustain cooperation in areas with lower spillovers, such as applied research, because of the smaller incenfives to cheat on the initial agreement, at least when firms produce substitutes. Alternatively, the possibility of technology sharing (i.e., intended or endogenous spillovers), besides R&D coordination, not only increases cooperative profits but also reduces the incentives to defect from a cooperative equilibrium.

Notes: In a moral hazard setting, we model the fact that the agent may get private signals about the final outcome of his effort before the public realization of this outcome. Actions affect both the distribution of the outcome and the quality of the agent's private information. We compare simple contracts, based on output only, with revelation contracts, based on output and messages about signals. Revelation contracts give the agent some discretionary power during the course of the relationship; they are optimal if and only if lowering effort does not increase the quality of private information in the sense of Blackwell (1953). In the context of managerial compensation schemes, the revelation contracts we analyze can be viewed as allowing the agent to exercise an option on the final profits before the realization of these profits. The theory thus provides an alternative justification of the widespread use of stock options in managerial compensation schemes, as opposed to compensation schemes that rely only on salary, bonus, and (restricted) stock plans.

Notes: We analyze the implementation problem faced by firms when trying to collude in the face of asymmetric information about costs. Assuming that transfer payments are possible, we examine the incentive compatibility and individual rationality constraints that must be satisfied by any cartel agreement. Two scenarios are considered. Firms may or may not withdraw from the agreement after each firm's costs become known. If no withdrawal is possible, we find that the monopoly rule is implementable when weak types of individual rationality constraints are required. This contrasts with some results in the literature. If withdrawal is possible, we find a potential conflict between different forms of individual rationality constraints, in particular, between interim and ex post constraints. This conflict disappears in industries with a large number of firms.

Notes: This paper offers a general characterization of the optimal product line prices for a monopolist whose quality of products is initially unknown to consumers. In the focal equilibrium, a monopolist signals a high-quality product line by pricing as if quality were known to be high, but costs of production were higher than they truly are. In a rich set of environments, this characterization implies that the prices of all products are initially distorted upward, with the price distortion being largest for products with the most inelastic demands and/or quality-sensitive production costs. These implications yield predictions for the time path of prices flint are broadly consistent with evidence from the marketing literature. The multidimensional signaling problem is made tractable by the satisfaction of a very simple and powerful single crossing property.

Notes: Managerial behavior that is rational and profit-maximizing sometimes will seem to be overly conservative. If the valuation of innovations contains white noise and the status quo would be preferred to random innovation, then any innovation that does not appear substantially better than the status quo should be rejected, for reasons arising from regression toward the mean. The more successful the firm, the higher is the optimal acceptance threshold and conservative bias. Other things equal, more successful firms will spend less on research, adopt fewer innovations, and be less likely to advance the industry's best practice.

Notes: I present an integrated survey of management strategy, which examines organizational design, competitive strategy, and public policy considerations. In addition, 1 offer suggestions on how economic analysis can be applied in unifying and developing management strategy as a field of study.

Notes: Under prospective pricing, payers for health care essentially use price regulation of hospitals as a way of indirectly regulating the provision of treatment intensity. This paper presents a theory of how a nonprofit hospital selects treatment intensities for its products given the payer's choice of prices and then determines how the payer should select prices in light of this theory. The main result is that, in equilibrium, the ratio of price to marginal cost will vary across products inversely with the elasticity of demand with respect to treatment intensity. This means that, generally, the hospital will earn positive (negative) accounting profit on products with low-(high-) intensity elasticities of demand.

Notes: Legislation to create optional no-fault insurance (ONFL) programs has recently been enacted in Florida and Virginia. ONFI programs provide compensation to patients when certain medical complications arise, provided the patient agrees not to sue the doctor for additional damages. The optimal design of ONFI programs is explored in this paper, focusing on the incentive effects of ONFI programs. The question of whether ONFI programs should be funded entirely by participating doctors, or whether social subsidies are optimal, is examined.

Notes: A number of recent Canadian and U.S. antitrust cases have involved allegations that manufacturers of durable products have refused to supply parts to independent service organizations, apparently to monopolize the market for repairs of their products. This paper provides a theory of these strategies and considers the welfare implications of judicial orders to supply. The refusals here are seen as necessary to protect manufacturers' program of price discrimination: Expensive repairs represent a way to select high-intensity, high-value users and charge them more. In addition to the usual ambiguity associated with the welfare effects of prohibitions of price discrimination, forcing competition in repairs can have the further damaging effect of reducing social welfare by inducing manufacturers to lower product quality.

Notes: The litigation crisis in this country is a subject of great importance to the chief executive officers of public uccounting firms. 1 will first address the problem's magnitude and its source and then speculate on the developments we might expect in the future. Like all forecasts, mine will certainly be wrung. I hope that my degree of error on the pessimistic side will be considerable.

Notes: Research and development (R&D) competition among firms has recently been extended to R&D competition involving research joint ventures. It was previously shown that in an industry conducting cost-reducing R&D followed by competition in the product market, if all firms both fully share R&D information and coordinate investments to maximize pint profits, final products prices are lower, and firms' profits are higher than with information shriving alone, joint profit maximization alone, or no cooperation. In this paper we question whether a single research joint venture (RJV) cartel is the best form of industry R&D coordination. We show that there are circumstances in which splitting a single RJV cartel into several competing ones yields lower product prices. Moreover, we show that in these circumstances, splitting the industry into exactly two competing RJV cartels would be best.

Notes: This paper studies the order of adoption of a process innovation, thin-slab casting, by U.S. steel makers. A game-theoretic model of technology adoption with capacity constraints indicates that incumbents are likely to trail entrants in adopting process technologies that reduce the minimal scale required to compete. Evidence from the case study also indicates, however, that the sorts of interactive effects emphasized by game-theoretic models may be dominated by the effects of competitors' heterogeneous precommitments.

Notes: Identical cases of wine are often auctioned one immediately after another. Ashenfelter (1989) reports that on average, the later lots fetch less. Such a systematic price difference seems anomalous, the more so because it is shown here that rational expectations imply not equal, but rising, prices. Risk aversion is an obvious way of reconciling the evidence with rational behavior. There is an alternative explanation. The auctions observed by Ashenfelter involved a buyer's option, whereby the first-round winner could purchase further cases at the same price. It is shown that this feature may both account for the observed price trajectory and raise seller revenue.

Notes: This paper examines the incentives for integration when the market for consumer durables (hardware) is oligopolistic and the market for complementary services (software) is monopolistically competitive. We find that the equilibrium industry structure will depend on the magnitude of the fixed costs of software development. If the software development costs are relatively large, the equilibrium industry structure is unintegrated, that is, neither hardware firm integrates; if the software development costs are relatively small, the equilibrium industry structure is integrated, that is, both hardware firms integrate. Under the integrated industry structure, hardware profits are lower, less varieties are provided, and hardware prices are lower than under the unintegrated industry structure. The game has a prisoners' dilemma structure when the software development costs are relatively small because of a foreclosure effect. Strategically increasing the number of software varieties provides an avenue for an integrated hardware firm to increase its market share and profits by reducing the number of software varieties available for an unintegrated rival technology. Although consumer surplus is higher under an integrated industry structure, the total surplus associated with the unintegrated industry structure exceeds that of the integrated industry structure.

Notes: Price setting by firms and search by customers is analyzed, relaxing two basic attributes of most search models: price precommitment and agent heterogeneity. Customers are characterized by individual demand functions for a homogeneous good and can choose to employ a threat to search. Firms noncooperatively make pricing decisions by using the individual demand curves under conditions of constant marginal cost. Firms adopt pricing rules that optimally respond to customer search histories. Bargaining power is endogenously assigned. Firms know their common marginal cost; customers, the cost distribution. The unique separating equilibrium is characterized by a lumpy distribution of prices and by heterogeneous shopping behavior by customers giving rise to “shoppers” and “nonshoppers”

Notes: Most research on product positioning supports the idea of differentiation. Product standardization (i.e., minimum differentiation) occurs only under very limiting assumptions. Yet, similar products are often observed in the marketplace. We attempt to restore the case for standardization by using more realistic assumptions than in previous work. We assume that consumers consider not only observable attributes in brand choice, but also attributes that are unobservable by the firms. We find that standardization is an equilibrium when consumers exhibit sufficient heterogeneity along the unobservable attributes under both positioning with exogenously given prices and price competition, We also show that, under insufficient heterogeneity along the unobservable attribute, our results coincide with past research that argues in favor of differentiation.

Notes: This paper proposes an empirical methodology for studying various (implicit or explicit) collusive behaviors on two strategic variables, which are price and advertising, in a differentiated market dominated by a duopoly. In addition to Nash or Stackelberg behaviors, we consider collusion on both variables, collusion on one variable and competition on the other, etc. Using data on the Coca-Cola and Pepsi-Cola markets from 1968 to 1986, full information maximum likelihood estimation of cost and demand functions are obtained allowing for various collusive behaviors. The collusive hypothesis is not rejected, and the best form of collusive behavior is selected via nonnested testing procedures. Using the best model, Lerner indices are computed for both duopolists to provide summary measures of market power. Finally, our approach is contrasted with the conjectural variation approach and is shown to give superior results.

Notes: Analysis of seven wholesale and retail markets for long-distance telephone services since the AT & T divestiture indicates that service provider concentration declined in the later 1980s and then stabilized in the 2990–1993 period. In addition to this stability in market shares, a number of other conditions established since 1990 have been conducive to the development of market sharing rather than significant price competition. The most important of these conditions has been the tarifing process of the Federal Communications Commission by which MCI and Sprint replicate ATGT's price announcements. As market shares stabilized and became more equal, and as regulation formalized the price-setting process, the price-cost margins of the three large carriers increased and became more nearly identical. These results are consistent not with price competition but rather with emerging tacit collusion among AT&T, MCI, and Sprint.

Notes: The Federal Communications Commission held its first auction of radio spectrum at the Nationwide Narrowband PCS Auction in July 1994. The simultaneous multiple-round auction, which lasted five days, was an ascending bid auction in which all licenses were offered simultaneously. This paper describes the auction rules and how bidders prepared for the auction. The full history of bidding is presented. Several questions for auction theory are discussed. In the end, the government collected $617 million for ten licenses. The auction was viewed by all as a huge success an excellent example of bringing economic theory to bear on practical problems of allocating scarce resources.

Notes: This study examines the investment patterns of all large local exchange telephone companies in the United States over time. It identifies how different regulatoy environments have influenced the recent historical pattern of investment in modern infrastructure equipment. It focuses exclusively on the postdivestiture experience of local telephone exchange companies (LECs). It examines the growth of fiber-optic deployment and of complementary equipment associated with the modernization of today's information infrastructure. The study estimates the influence of different regulatory structures on infrastructure deployment by LECs. The study is unique in that if relates individual LEC investment patterns to LEC-specific regulatory, demographic, and economic characteristics. Thus, it isolates the contribution of state regulatory policies from that of other demographic and economic factors in the determination of infrastructure deployment at the state LEC rather than at the corporate level. Its main findings are as follows: First, price regulation (and, in particular, price caps) is a more potent regulatory mechanism than the standard earnings sharing scheme. Second, when associated with an earnings sharing scheme, price regulation is less effective in triggering infrastructure deployment than when it is implemented by itself. These results raise questions about the effectiveness of a popular regulatory instrument-earnings sharing schemes-and highlight the effectiveness of generic price-cap regulation. These results have implications for the design of regulatory policy at both the state and federal levels. In particular, given the importance currently being placed on the development of the information superhighway, regulatory emphasis should be focused more on price regulation than on regulating profits.

Notes: The House and Senate of the United States Congress recently passed legislation that directs the FCC to establish a system for using auctions to allocate the use of radio spectrum for personal communications services. There is a unique and unprecedented set of issues that arise in this context, which are of interest to economists, industry analysts, regulators, and policymakers. We discuss these issues and evaluate their likely impact on the outcome of the spectrum auctions. In addition, we argue that there may be pitfalls in the auction procedure adopted by the FCC, and we discuss possible alternative procedures.

Notes: Royalty payments from a franchisee to a franchisor serve as incentive for the franchisor to provide appropriate levels of quality and brand, name investment. However, since they also distort the service provided by the franchisee, we should expect relatively lower royalty rates in franchises that are primarily service-oriented. Casual examination of royalty rates across product-oriented and service-oriented franchises shows that the opposite is true, with service-type franchises enjoying higher royalty rates. We resolve this apparent puzzle. The basic argument we put forth is that in product-type franchises, a franchisor can charge a wholesale price on goods transferred to the franchisee, thus using an alternative instrument that also serves as an incentive for the franchisor. Moreover, in general, a franchisor will use both wholesale price and royalty to minimize distortions in retail price and service at the retail level. We then test the predictions of our model on different industries and find confirmation for the same.

Notes: Cool smoke treatments were applied to unmined Eucalyptus marginata (jarrah) forest soils, rehabilitated bauxite mine soils, and broadcast seed to determine if enhancement in germination could be effected with a view toward maximizng the establishment of species in bauxite mines in Western Australia.Forest sites showed a 48-fold increase in total germinants from the soil seed bank when treated with aerosol smoke. Newly returned bauxite mine soils showed a greater than threefold increase in total germinants after the same treatment. There were also significant increases in the number of species germinating in response to the aerosol smoke treatment in both the forest and the mined soils. Similarly, application of smoked water to the soil seed bank in previously mined sites elicited a significant positive germination response, increasing total germinants and species numbers by 56 and 33%, respectively.Treatment of mixed seed lots with aerosol smoke before broadcast resulted in highly significant improvement in germination when compared to untreated seed. Both total number of germinants, and number of species emerging from mined sites were positively influenced (85% and 34% increases, respectively).Ten target species were used to determine the relative effectiveness of different methods of smoke treatment on the germination of broadcast seed. Nine of the species involved displayed a promotive effect with at least two of the treatments. Generally, however, aerosol smoking of seed before broadcast proved to be the more effective approach. As a result of these findings, all broadcast seed for use in Alcoa's bauxite mined areas in the southwest of Western Australia is now routinely smoke treated before application.

Notes: Understanding Cladium jamaicense (sawgrass) seedling establishment is an important component of an Everglades restoration program because the degree of sawgrass recovery and concurrent Typha domingensis (cattail) decline will be used to evaluate restoration success. To understand sawgrass recovery at locations with increased soil nutrients, we tested the effects of transplanting sawgrass seedlings to pots at different densities and investigated how nutrient additions affect seedling growth. Survivorship of seedlings transplanted into moist commercial potting soil at three densities ranged from 61% to 95%. After 6 months, maximum survivorship (90%) occurred at medium densities (2–4 seedlings per pot 16 cm in diameter). Nutrient additions, totaling 6.5 N g/m2, 9.8 P g/m2, 6.5 g/m2, were applied approximately 4 months after seedlings were transplanted. The biomass of the plants receiving nutrient additions (pulsed) was significantly higher (by over 30%) than plants with no nutrient addition (control). Photosynthetic rates for nutrient-enriched plants (measured 6-weeks after the nutrient additions) were significantly greater (by 32–45%) than for control plants. Instantaneous leaf water use efficiency increased significantly (by more than 20%) in pulsed plants. The results suggest that preventing root damage is crucial for the success of trans planted sawgrass seedlings and that nutrient additions enhanced seedling growth.

Notes: I evaluated responses by 16 native woody species to differential soil compaction and density of ground cover. The trees and shrubs studied represent sites in southern Illinois that commonly have restrictions to root growth from soil or drainage conditions. The study site was a restored surface coal mine in southern Illinois with a rooting medium compacted by grading and a dense ground cover of pasture species. Soil compaction was alleviated in half the study area before tree planting by mechanically ripping the soil to a depth of 1.2 m. Roots of half the trees and shrubs were dipped in a Terra® slurry before planting, and the ground cover around all planting spots was afterwards sprayed with herbicide. In year 2 after planting the ground cover in half of the unripped and half of the ripped area was further controlled by repeated application of herbicides. Ripping significantly increased height growth of all trees combined and all species individually in each year of the study. Second-year control of ground cover increased height growth of all trees combined and of seven species individually. Some species were damaged by herbicides. Terra® had little evident effect on species performance. Animal damage reduced early survival and growth, especially of Acer (maple) and Cornus (dogwood) species, and later growth of Quercus rubra (red oak). Removal of ground cover with herbicides tended to increase deer browse. Soil ripping, herbicide application, and choosing tree species unattractive to deer can be recommended to increase success in planting trees for forest restoration.

Notes: Woodlands dominated by Eucalyptus spp. in temperate southeastern and southwestern Australia have been extensively cleared for agriculture and are often badly degraded by livestock grazing. This has resulted in the loss of biodiversity and widespread land degradation. The continuing decline of these woodlands has become a concern for the conservation of biodiversity, and there is a growing interest among farmers, land managers, and researchers in developing techniques for restoring them. Currently few scientific guidelines exist for undertaking woodland restoration programs. We use a state and transition model to develop hypotheses on restoration strategies for salmon gum (Eucalyptus salmonophloia) woodlands. We consider that this approach provides a suitable framework for organizing knowledge and identifying areas where further information is needed, and hence provides a useful starting point for a restoration program. The model has the potential to provide a tool for land managers with which they can assess the action and effort needed to undertake woodland restoration in agricultural landscapes.

Notes: Most of the world's forest has been cleared, cultivated, and then often abandoned. In many instances these areas have changed to successionally arrested grasslands, shrublands, or fernlands maintained by frequent fires and high herbivore populations. Many studies have shown that various herbaceous, nitrogen-fixing legumes can protect soil surfaces, retain soil moisture, improve soil fertility, and retard ground fires. Our objective was to ascertain if some of these species can potentially inhibit herbivory and satisfactorily establish in these arrested grassland areas to serve as sites for reforestation. We evaluated the potential for four species of nitrogen-fixing legumes (Calapogonium mucunoides, Centrosema pubescens, Desmodium ovalifolium, and Pueraria phaseoloides) to establish on exposed soil within successionally arrested grasslands of Panicum maximum and Cymbopogon nardus in the central hills of Sri Lanka. Four different sites within rectangular grassland areas were cleared of graminoids and sown with seed of each legume. Half of each clearing was protected from browsing rabbits and porcupines, and half was not protected. After 6 months, certain plots were destructively sampled to determine dry biomass gain for each species and treatment. Analyses of variance were performed to test for differences among sites, treatments, and species. All three factors revealed differences, indicating that species must be matched to site. On sites with high amounts of herbivory, D. ovalifolium had the greatest dry biomass gain after 6 months of growth, possibly because of its relatively low nitrogen and moisture content. Where herbivory was absent, P. phaseoloides and C. muconoides had the greatest dry biomass gain. Dry biomass gain of all four legume ground covers was low on sites with lowest pH and nutrient concentrations. Under conditions of low relative fertility and low pH, establishment of the tested legumes failed. Though soil moisture availability was not measured, we speculate that these low fertility sites were also prone to drought. Findings support the site-specific establishment of legume species for purposes of reforestation and watershed protection in central Sri Lanka. This work is applicable to other regions particularly dominated by successionally arrested grasslands with similar circumstances in other parts of south and southeast Asia.

Notes: Oyster cultch was added to the lower intertidal fringe of three created Spartina alterniflora marshes to examine its value in protecting the marsh from erosion. Twelve 5-m-wide plots were established at each site, with six randomly selected plots unaltered (non-cultched) and cultch added to the remaining (cultched) plots. Within each cultched plot, cultch was placed along the low tide fringe of the marsh during July 1992, in a band 1.5 m wide by 0.25 m deep. Marsh-edge vegetation stability and sediment erosion were measured for each plot from September 1992 to April 1994. Significant differences (p 〈 0.05) in marsh-edge vegetation change were detected at the only south-facing site after a major southwester storm. Significantly different rates of sediment erosion and accretion also were observed at this same site. Areas upland of the marsh edge in the cultched areas showed an average accretion of 6.3 cm, while noncultched treatment areas showed an average loss of 3.2 cm. A second site, with a northern orientation, also experienced differential sediment accretion and erosion between treatment type, caused instead by boat wakes that were magnified by the abutment of a dredge effluent pipe across the entire front fringe of the site. During this period we observed significant differences in sediment accumulation, with the areas upland of the marsh edge in the cultched treatment having an average accretion of 2.9 cm and the noncultched an average loss of 1.3 cm.

Notes: Books reviewed in this article: The Significance and Regulation of Soil Biodiversity. Harold P. Collins, G. Philip Robertson, and Michael J. Klug, editors

Notes: Aggressive growth by legumes may restrict the diversity of species-rich meadows recreated on sites restored after mineral extraction. We investigated the ability of mineral nitrogen (N) applications and spring grazing to control the legume component of such meadows. The use of N suppressed Trifolium repens but had no effect on other legume species or on the species richness, diversity, or equitability of the meadow community. Spring grazing significantly reduced the yield from the legume component of the meadow. This was accompanied by an increase in the equitability index of the community, suggesting that the aggressive nature of the legumes had been checked. Spring grazing may therefore provide a means of controlling aggressive legume growth and may maintain the diversity of species-rich meadows established on restored sites.

Notes: Dogway Fork, West Virginia, is a second–order stream affected by acid precipitation. One goal of the Acid Precipitation Mitigation Program was to determine if the composition or population levels of benthic macroinvertebrates were affected by limestone neutralization of the acidic waters (pH 4.5). Two techniques were used to determine any effects: seasonal Surber samples and in situ bioassays with selected genera. Prior to treatment, macroinvertebrate densities were low but represented a diverse group of acidtolerant taxa. During treatment, fewer macroinvertebrates were collected in the treated segment than in the untreated control. This appears to be a result of a number of factors, including substrate, flows, drift, fish predation, accumulation of limestone fines, and changes in water chemistry. Bioassays suggest that the limestone fines were not directly detrimental to the organisms but may have limited available habitat in the mixing zone. Limestone treatment affected the species composition of Dogway Fork. During four years of treatment, several new acid-sensitive taxa were collected in the treated segment. Data suggest that, with continued treatment, populations of these taxa can be expected to increase.

Notes: Thrush Lake, Minnesota, was treated with limestone in 1988 to evaluate the efficacy of protective base addition against the loss of sport fisheries in a sensitive, mildly acidic lake. Prior to treatment, the lake was stressed (pH 6.46, ANC 64 μeq/L) but not severely degraded by acidic deposition and had a macrophyte community typical of lakes in northeastern Minnesota with low acid-neutralizing capacity (ANC). This paper describes the changes observed in aquatic plant communities during the 5 years after treatment, as pH and ANC slowly returned to pretreatment levels. Sphagnum platyphyllum, intolerant of non-acid conditions, was completely eliminated from the lake. The charo-phyte, Nitella, that originally shared dominance in the deep littoral zone with S. platyphyllum, decreased in importance during the first 2 years after treatment. Two vascular plants, Potamogeton pusillus and Najas flexilis, were first found in the lake the year after treatment and were abundant for 2 years after liming, probably in response to a combination of more neutral pH and reduced cover of Nitella. As the ANC and pH slowly returned to pretreatment conditions, Nitella again increased in coverage and depth range, with a concomitant decrease in P. pusillus and N. flexilis. The moss, S. platyphyllum, had not reinvaded the lake by 1993, 2 years after its dramatic decline.

Notes: This paper reviews the events leading to the channelization of the Kissimmee River, the physical, hydrologic, and biological effects of channelization, and the restoration movement. Between 1962 and 1971, in order to provide flood control for central and southern Florida, the 166 km-long meandering Kissimmee River was transformed into a 90 km-long, 10 meter-deep, 100 meter-wide canal. Channelization and transformation of the Kissimmee River system into a series of impoundments resulted in the loss of 12,000–14,000 ha of wetland habitat, eliminated historic water level fluctuations, and greatly modified flow characteristics. As a result, the biological communities of the river and floodplain system (vegetation, invertebrate, fish, wading bird, and waterfowl) were severely damaged. Following completion of the canal, the U.S. Geological Survey released a report documenting the environmental concerns associated with channelization of the river. This action led to the 1971 Governor's Conference on Water Management in South Florida that produced a consensus to request that steps be taken to restore the fish and wildlife resources and habitat of the Kissimmee basin. In 1976, the Florida Legislature passed the Kissimmee River Restoration Act. As a result, three major restoration and planning studies (first federal feasibility study [1978–1985], the Pool B Demonstration Project [1984–1990], and the second federal feasibility study [1990-present] were initiated (1) to evaluate measures and provide recommendations for restoring flood-plain wetlands and improving water quality within the Kissimmee basin, (2) to assess the feasibility of the recommended dechannelization plan, and (3) to evaluate implementation of the dechannelization plan. The recommended plan calls for the backfilling of over 35 km of C-38, recarving of 14 km of river channel, and removal of two water-control structures and associated levees. Restoration of the Kissimmee River ecosystem will result in the reestablishment of 104 km2 of river-floodplain ecosystem, including 70 km of river channel and 11,000 ha of wetland habitat, which is expected to benefit over 320 species of fish and wildlife.

Notes: Two groups of waterbirds have been chosen to assist in measuring the success of restoration of the traditional channel configuration, hydrologic regimes, and floodplain wetlands of the Kissimmee River: waterfowl (Anseriformes) and waders (Ciconiiformes). Waterfowl are dominant, swimming omnivores that use seeds, foliage, and invertebrates; waders are mainly walking predators that eat fish of various sizes. Both can be censused by well-established air and ground techniques, and both can be used to compare post-restoration with channelized or pre-channelization population data (waterfowl) or bird use of channelized versus restored wetlands (waders). In addition to use of population data, species richness and regularity of occurrence should provide a basis for assessing restoration of biological integrity. Conceptual models of avian habitat use for nesting and feeding demonstrate patterns of segregation that will aid assessments for some species. Other species show high overlap in foods and habitats and will require additional measures of response. To understand these patterns and reasons underlying waterbird use, measurements of habitat type, vegetation structure, and food resources will be essential. Integration of these high trophic-level guilds with evaluations of other system components will ensure an ecosystem perspective. Predicted responses to restoration suggest an increase in species richness and number of individuals of many species.

Notes: Survival and height growth of tree seedlings and rooted cuttings introduced into artificially shaded and unshaded plots in a degraded dry forest were measured at intervals for nine months. Ten tree species were selected to represent a range of ecological characteristics of the dry–forest plant community on St. John, U.S. Virgin Islands. Of three propagule types – seeds, seedlings, and rooted cuttings – introduced to field plots, seedlings survived best (52%) over the initial nine-month period. Cuttings of six species rooted successfully in a shadehouse, but only two of these species survived the nine–month field experiment. Seed germination was low, under 11% for eight of ten species tested, and four species did not germinate. Subsequent mortality of seedling recruits was moderately high. Plumeria alba was the only species for which seedling height growth was not significantly greater than cutting height growth. Shading treatment (25% of full sun) significantly increased seedling survivorship (p= 0.03) but suppressed growth slightly for some species. Shading enhanced survival of seedlings produced from broadcast seeds, but not seed germination. Mortality occurred during dry periods, apparently from drought stress. Results suggest (1) that seedling introductions are the preferred propagule type (over seeding or rooted cuttings) for ecological restoration of degraded tropical dry forests, and (2) that some level of shading is required to increase the survivorship of many dry-forest species or to avert complete mortality of some species. This study suggests that early secondary dry forest may be best restored by underplanting within the existing vegetation. Sufficient shading suitable for growth of native dry-forest trees may be attained using a nurse crop of fast-growing leguminous trees.

Notes: Fire is a common but poorly understood disturbance in the forested ecosystems of the Sierra Madre Occidental of Mexico. In this study, fire history, forest structure (density, species composition, regeneration, forest floor fuels, herbaceous cover, and age of pines), and the dendrochronological tree-ring record were measured at two unharvested 70-ha pine-oak sites near Ojito de Camellones, Durango, Mexico. Study sites were matched in slope, aspect, elevation, slope position, and plant composition, but they differed in fire history since 1945 and in forest structure. The long-term mean fire intervals (MFI) for all fires at both sites up to 1945 were similar—4.0 years at Site 1 (1744–1945) and 4.1 years at Site 2 (1815–1945)—but Site 1 burned only three times at the site margins since 1945 while Site 2 had 9 fires that scarred two or more sample trees and 15 total fires since 1945. Density measurements and age and diameter distributions showed that Site 1 was dominated by numerous, younger, smaller trees (mean total basal area of 23.4 m2/ha and 2730 trees/ha), while Site 2 had fewer, older, larger trees (basal area of 37.2 m2/ha, 647 trees/ha). Large, rotten fuel loading and duff depth were also greater at Site 1. Because regeneration averaged 6200 stems/ha at Site 1 and 8730 stems/ha at Site 2 (no significant difference), forest density at Site 2 was not limited by regeneration capability. The distributions of overstory diameter and pine age at both sites indicate that tree establishment occurred in pulses, with the largest cohort of trees establishing at Site 1 following the 1945 fire. The dense regeneration and heavy fuel accumulation at Site 1 are likely to support a switch from the former low-intensity fire regime to a high-intensity, stand-replacing fire across the site when the next suitable combination of ignition and weather occurs. Baseline quantitative information on fire frequency and ecological effects is essential to guide conservation or restoration of Madrean forests and may prove valuable for restoration of related fire-dependent ecosystems that have experienced extended fire exclusion elsewhere in North America.

Notes: Books reviewed in this article: Directing Ecological Succession. James O. Luken Soil Restoration: Advances in Soil Science, vol. 17. Rattan Lai and B. A. Stewart, editors